Sally, as per your request here is Global Outsourcing's current status in 
regard to EES:

 GLOBAL  COUNTERPARTY - 

  Priority #1 Counterparties (EES Counterparties that have $100,000 or more 
AR or AP exposure)  -    506
         Counterparties entered in GCP  506  -  100% complete
  These Priority #1 CP's were completed in 55 days.

  Priority #2 Counterparties (EES Counterparties that have $75,000 or more AR 
or AP exposure)  -      703
         Counterparties entered in GCP to date -     35  -  5% complete
  All Priority # 2 CP's will be completed within 45 days ( March 23, 2001).

EES has approximately 14,000 counterparties to be entered into the GCP 
Database.  We have been dealing with EES' Karin Williams and  Scott Mills on 
the GCP set up.

We have quoted EES a rate of $20.00 per counterparty entered into the GCP 
Database.  We currently have 4 people working full time on the research, 
calling and entering of EES's CP's.  Beginning in January 2002, we anticipate 
utilizing a mutually agreed upon monthly fee.

Jason Moore and I are the designated Global contacts for EES in regard to GCP.



 GLOBAL  CONTRACTS  AND  GLOBAL  FACILITIES - 
 
In a February 16th meeting with Wanda Curry, Scott Mills, Mark Evans, and 
other EES personnel, EES indicated that they were leaning towards utilizing 
the Global Contracts Database.  We briefly discussed the Global Facilities 
Database, but we all have agreed to concentrate on the feasibility of the 
Contracts Database first and leave the Facilities implementation question for 
a later date.
  
As a result of the above mentioned meeting, we have an EES Demo set up for 
tomorrow morning from 9 A.M. - 12 P.M. in order to give EES personnel a 
"hands on" demonstration of the functionality of Global Contracts.  A  
portion of EES's contracts include multiple commodities and staggering 
agreement terms that Global Contracts is now unable to capture.  Therefore, 
we will need to institute numerous system enhancements, with the co-operation 
of Global IT, in order to process EES' contracts.  The timing and IT manpower 
needs of these system enhancements will be discussed at our Demo by Global IT 
personnel.

If EES does agree to utilize Global Contracts and Facilities we will need to 
set up a separate EES maintenance group within Global.  

EES has informed us that they would like to do all of their Contracts Data 
input.  Therefore, we anticipate the use of 3 Global Contracts personnel for 
the training of EES'  personnel.  Two Global employees would be assigned to 
work directly with EES's personnel on a daily basis.  The remaining Global 
Contracts person would act as a "Help Desk" here on 37 to answer any Global 
Contracts questions. 

In regard to billing EES for the Global Contracts Database assistance, we are 
proposing the use of a "flat rate"  monthly fee structure, similar to the one 
utilized  for Bridgeline Gas Pipeline.   We would also include a "start up" 
fee to cover the cost of the initial  IT system enhancements.

Donna Consemiu and I will be the designated Global contacts for EES in regard 
to Global Contracts and Facilities.