Dear Sally,

After the meeting with Rick & Rick, Beth, David and I discussed how best to perform the 4Q 2001 London Doorsteps and have implemented the following:

- Before any doorstep takes place, the doorsteppers must work directly with EAS to determine what has been done in regards to control reviews.  To date, what we have obtained from London are the self assessments prepared by Operations and will receive copies of EAS/AA reports upon their completion (expected end-Nov).  

- Each doorstepping team has had a conference call with EAS to ensure the doorstep team fully understands what has been done to date around the trading controls and where possible issues lie. We are using the reports noted above as a background for these discussions.

- The doorstep teams are all planning to use AA/EAS's deal test results (the only exception to this is Essen, where we feel that additional sampling should be done).  

- With the exception of metals (recycling & London) & EOTT, RAC will take on a consulting only role.

- As far as the video conference idea was concerned we felt that if the doorstep team was willing to travel that would be the best way to perform the doorstep.  This is because we feel that there is really no substitute for being in the location to hear side comments, feel what morale is like etc.
 
Lastly, we have talked to EAS about adding some procedures on to the testing AA is performing, however, they feel they can not take on any additional work.  This is primarily because AA got a late start this year and is feeling challenged to complete their work.

 

Best regards

Shona




 -----Original Message-----
From: 	Beck, Sally  
Sent:	Friday, October 26, 2001 12:08 PM
To:	Wilson, Shona
Cc:	Apollo, Beth
Subject:	FW: UK & Continental Power Doorstep

Please see exchange below.  Can you send me current plans - who, when, where and what - for London reviews?  I would put a several day moratorium on contacting London regarding upcoming Doorstep review plans until I get back with you.  Thanks.  --Sally 

I know that in our meeting with Rick and Rick we talked about being creative on London reviews and leveraging what is being done by EAS - maybe directing them on additional activities and doing some leg work by video conference.  What happened to that effort?  Sounds as if from the London e-mails that we stepped right back to flying people around the world.  

 -----Original Message-----
From: 	Beck, Sally  
Sent:	Friday, October  26, 2001 12:05 PM
To:	Dyson, Fernley
Cc:	New, James; Jordan, Mike; Apollo, Beth; Brown, Michael - COO London
Subject:	RE: UK & Continental Power Doorstep

In an October 3 update meeting with Rick Buy and Rick Causey on Doorstep reviews, both were very supportive of the efforts to date this year.  Since we were in the midst of the budgeting process, we wanted their view on the continuation of Doorstep Reviews, and they resoundingly agreed that the effort is valuable to Enron and that they wanted to be certain that the effort continues.  

In reviewing the plans for 4th quarter, one of our issues was the willingness of key staff members to travel long distances in light of the September 11th terrorists attacks.  We were in agreement on postponing some of the planned 4th quarter reviews until early 2002.  Planned reviews for the Metals business and certain other EEL lines of business were reaffirmed by Buy and Causey for completion in the 4th quarter.   

Certainly life on October 26 feels different today at Enron than it did on October 3.  I understand multiple demands on staff members currently and the additional demands of the budgeting process, and in your case, the voluntary redundancy program.  In the next few days I will again review the 4th quarter plans for Doorstep reviews with Buy and Causey, sharing with them your concerns.  I will let you know the outcome of those conversations.  If there is still a strong desire to complete these reviews this year, we will work creatively to leverage work that is being done through the EAS process and minimize both travel and time involved.  -Sally 

 -----Original Message-----
From: 	Dyson, Fernley  
Sent:	Friday, October  26, 2001 2:24 AM
To:	New, James; Jordan, Mike
Cc:	Beck, Sally; Apollo, Beth; Brown, Michael - COO London
Subject:	RE: UK & Continental Power Doorstep

The EAS work takes priority over Doorstep - we need the AA opinion.

I'm afraid that Doorstep is way down my list of priorities at this time - I certainly do not want other things to suffer.

Thanks

Fernley

 -----Original Message-----
From: 	New, James  
Sent:	25 October 2001 20:38
To:	Dyson, Fernley; Evans, Coralie; D'arcy, Paul; Jordan, Mike
Cc:	Yeo, Robert
Subject:	FW: UK & Continental Power Doorstep

It's official, we are being door stepped. The Houston plan is to do all of Power and all of the Structures (although when I spoke to Stacey she seemed a little unsure of her plan for structures). Also from what Stacey said the Gas door step will be following shortly.

Stacey and Kristin Albrecht aim to be here for the whole week starting first thing on Monday the 5th. EAS here are already in the loop as they have been various conversations. Obviously with all the additional work we are being asked to do at the moment something will have to give. I aim to speak to Paul Bromley to agree whether the EAS or doorstep work takes priority and to get him to clearly explain which areas will be covered by the doorstep and which by the EAS process since I will be very unhappy if we fail to avoid duplication. In addition, we will also need to make commercial aware of a reduced capacity to perform analytical tasks as well as model review and gap analysis work etc.

James


 -----Original Message-----
From: 	White, Stacey W.  
Sent:	25 October 2001 19:59
To:	New, James
Subject:	RE: UK & Continental Power Doorstep

We will not be there next week so that should be fine.  Are the complex derivatives group and 'structured book' run by Paul Darcy the same thing?  If yes, then we are planning on reviewing that area.  Should I contact Paul Darcy directly?  If no, what is the complex derivatives group?

Thanks,
Stacey

 -----Original Message-----
From: 	New, James  
Sent:	Thursday, October 25, 2001 12:45 PM
To:	White, Stacey W.
Subject:	RE: UK & Continental Power Doorstep

Also in addition can you please confirm that you are not doing the complex derivatives group which is run totally separately in both personnel and risk terms ?

Thanks



 -----Original Message-----
From: 	New, James  
Sent:	25 October 2001 18:03
To:	White, Stacey W.
Subject:	RE: UK & Continental Power Doorstep

Are you here next week then because I am due to be away for some of that time ?



 -----Original Message-----
From: 	White, Stacey W.  
Sent:	25 October 2001 17:47
To:	New, James
Subject:	UK & Continental Power Doorstep

James,

Just a quick note and request regarding our UK & Continental Power Doorstep review we will be performing.  Please provide a list of books, curves and deal types used for UK & Continental Power.  In addition, please send information on any large, structured, out of the norm transactions and any transactions that are calculated outside of the core trading system.

Please provide this information early next week.  Look forward to seeing you.

Stacey