fyi- don't forward to anyone. Rick

 -----Original Message-----
From: 	Delainey, David  
Sent:	Monday, October 22, 2001 12:34 PM
To:	Kevin Garland/Enron Communications@ENRON
Cc:	Rick Buy/HOU/ECT@ENRON
Subject:	ServiceCo

Kevin, given the track record of mis-behaviour, I don't fault you with the premise of guilt before understanding.  But I would like to assure you that despite the high valuations externally, which I probably agree are fantasy, The Facility Services Group has a clear vision/market; it has a quality management team; it will be under my thumb and it is conservatively valued in the books.  It is much more that a Blockbuster or other like structure.  If you would like to discuss in detail do not hesitate to give me a call and I will take you through it - both overall strategy and tactics.  Even though it has been a confluence of events which has caused our problems, the fundamental root of most issues is an inactive management team which hasn't managed the detail as well as we would like.  New Power in my view would not have been as big a loser if we had kept it private and managed it closely as a key part of the business.  Instead we took it public and let it run amok.  I think you can see parallels across the company.  Initially well intentioned and thought out strategies fall apart when not managed appropriately.

Regards
Delainey