Louise,

Attached is the original email from Dave Delainey and John Lavorato. In my opinion, utilities and municipalities do not fall within the EES target market of being "less energy intensive and less sophisticated in their management of energy" (see below). Neither would aggregators fall into this category.

I am also concerned about the principle of EES approaching utilities to encourage them to act as an EES sales agent. I believe this ultimately results in little more than aggregation of load into wholesale levels - and in any case, results in multiple representatives from Enron pitching products which achieve similar results from the customer's perspective.

In addition, providing EES load management solutions may jeopordize other ENA projects which require that load (services deals, plant construction, etc. in addition to the usual wholesale product suite). I am concerned about the risk (however slight) posed by the EES activity as ENA actively tries to develop relationships with these customers and to close substantial wholesale transactions.

I'll wait for your thoughts on Monday before I go to EES with these concerns.

Thanks,

Dave


 -----Original Message-----
From: 	Enron Announcements/Corp/Enron@ENRON [mailto:IMCEANOTES-Enron+20Announcements_Corp_Enron+40ENRON@ENRON.com]  On Behalf Of John Lavorato & Dave Delainey@ENRON
Sent:	Friday, June 22, 2001 3:05 PM
To:	ENA Employees@ENRON; EES_Employees@EES
Subject:	ENA and EES Industrial SIC Codes


INTEROFFICE MEMO

From: John Lavorato & Dave Delainey

To: All of ENA and EES

Re: ENA and EES Industrial SIC Codes

As Enron continues to build its origination and customer business in the US, it is becoming increasingly important that both ENA and EES target the appropriate industries and customers with our respective value propositions.  Double coverage and duplication waste resources and damages Enron's reputation in the market place.  It is also important that the right product, solution and sales technique are utilized to ensure the maximum benefit for our customers and Enron.

Consistent with the past, EES will be focused on those SIC codes or industries that are less energy intensive and are less sophisticated in their management of energy.  ENA shall continue to target and cover those industries and customers that are very energy intensive and employ significant process load.  We ask that both organizations respect the boundary.  In those few cases where this policy is not appropriate, please over communicate to ensure close coordination between ENA and EES before customer contact. 

Effective immediately in the US and regardless of total energy consumption or number of sites, the following SIC codes have coverage responsibility in ENA.  All other industrial and commercial SIC codes and activity will be managed by EES.

ENA SIC Codes:

Primary Metals Mining and Extraction 
Oil and Gas Extraction
Paper and Forest Products
Chemicals - except for pharmaceutical, biotech and small specialty chemical that will be EES customers
Refining
Petroleum and Coal Manufacturing
Plastics and Rubber Manufacturing
Fertilizer
Rail
Auto - restricted to the Big Three - Ford, GM and Daimler-Chrysler
Cement
Aerospace - restricted to Boeing, Raytheon, GE Aircraft, Allied Signal, Hamilton-Sundstrom
Large Agricultural Processing