In order to better align our engineering and operations capabilities with the commercial businesses they support, we are pleased to announce the following organizational change will be effective immediately.  A new business unit, Enron Engineering and Operational Services (EEOS), is being formed which will include our existing operations in Enron Engineering and Construction Company (EE&CC), Operational Energy Corporation (OEC), and National Energy Production Corporation (NEPCO).

Brian Stanley, as President and Chief Executive Officer, and Keith Dodson, as Chief Operating Officer will provide the leadership for this new organization, reporting to the Office of the Chairman of Enron Wholesale Services.  NEPCO will continue to operate as a stand-alone business under John Gillis, President.

With the majority of EE&CC and OEC's activities focused on assets and projects which are in Wholesale Services, this will better align the efforts of EEOS with the commercial businesses it supports.  While EEOS will be a stand-alone unit within Enron Wholesale Services it will work very closely with and have direct accountability to the business units it supports.

This realignment also centralizes our engineering and operations capabilities in a single business segment and should ensure that innovation and best practices are shared and implemented across our many operations and will also allow for better identification of priorities and more effective allocation of resources to these projects.  Consistent with this approach, Development Engineering will have dual reporting to both EEOS and the business units which they support.  

With an extensive and varied portfolio of assets around the world and a wide variety of new development opportunities available to Enron, it is critical that we continue to maintain the best in class capability to design, construct, commission, and effectively manage and operate Enron's assets on a global basis.

This new global business unit should insure that we will continue to enhance these demonstrated capabilities and provide us with a sustainable advantage as we advance our business strategy around the world.

Please join us in congratulating Brian and Keith on their new assignments.

Mark Frevert & Dave Delainey