Changes in Enron's business require us to reevaluate how we approach the 
engineering and construction function within Enron.  Specifically,  Enron 
Energy Services' (EES) business has grown dramatically and that requires 
considerable additional engineering and construction resources both to 
develop solutions for customers and to deliver those solutions to customers.  
Additionally, in light of Enron's continued emphasis on increasing our return 
on invested capital, we have been engaged in fewer large scale construction 
projects around the world.  Historically, these projects have been a primary 
focus of EECC's activities.  Consequently we are making the following 
organizational changes concerning EECC:

EECC's pipeline construction group, led by Jerry Martin, will become part of 
Enron Transportation Services.  
NEPCO will continue to operate as a stand alone entity focused on power plant 
construction services to Enron entities and third parties.
The remainder of EECC will become part of EES.  Larry Izzo will report to the 
EES Office of the Chairman.
 
 These changes will better align our intellectual capital with the growth 
opportunities within Enron and provide new and exciting opportunities for our 
employees.  Please join us in supporting and implementing these changes.