Dear Vince & Ozzie:

For the Research support of the EAM organization, we were planning till recently for a team of 4 to 5 people for 2002. Over the last four to five months, requests for our support have gone up, primarily for consumption risk, physical options and value-at-risk. 

However, given the challenges we are facing now, I would like to reduce the Research staff for EAM to a core team of 3 people with a budget allocation of roughly $750,000. Please note that this includes not only the salaries and bonuses, but also the overhead and other expenses as well. The breakdown of the support levels for individual groups (with agreement from the group heads) is as follows:

EAM Fundamentals (Steve Meyers)	0.4 FTE
		Curve and Model Development Group (Mauricio Quintana)
		Project Valuation Group (Steve Kromer)
DSM Desk	0.6 FTE
		Pricing and Risk Premiums (Ravi Duggirala)
DSM VAR and risk controls (Vladi Gorny)	0.5 FTE
Consumption/SiteProfile Desk (Mallik AVS)	1.25FTE
		Consumption Premium Models 
		Support for SiteProfile Issues (load shaping, asset profiling, etc.)
	Other Short Term Requests	0.25FTE
	(Examples from last year: Insurance Model for Rick Jones, Business Assurance data analysis, etc.)

I would really appreciate if both of you can approve or provide your feedback on this. 

Thanks,
Krishna
x3-5485.