Did you talk to Dynegy about buying the engine behind EnronOnline?

I know Andy is going to work for Arnold in the next 4 to 6 weeks, but he is 
getting a team geared up around selling some EnronOnline licenses to various 
markets like Agriculture, crude/petchems, energy, etc.  We would not support 
software behind someone else's firewall, but these would be dedicated 
environments we set up and license and possibly support (what you and I 
talked about last week).  We have some traction with some companies like Dow 
and GM on an application license as well as renting them a row or rows on 
EnronOnline, but those sales have some cultural issues associated with them 
as well.  

I think you and I could actually originate some license deals on our own with 
Dynegy, Calpine, Duke and El Paso.  I briefly brought it up with Posoli (in 
addition to mid/back office outsourcing which we will pitch to him the first 
week in June) and he said he doesn't want to create CalpineOnline.com, but he 
said that just being able to wire together his gas and power traders on the 
back end would be great.  Clearly, Lavo needs to agree that he is comfortable 
with others in this space having these tools.  I think I know the commercial 
lead at El Paso, you and I know some people at Duke, you know Dynegy and and 
I know Posoli too well.  You probably have other contacts I am not aware of 
as well.

I think if we got serious traction on 4 or 5 licenses, then the application 
companies would be real strong bids for the business later if we want to let 
someone else build it from 5 to 100 licenses.  The whole issue is that we are 
stuck in the starting block at zero license sales and the 
application/software companies we have talked to love the application but are 
nervous, despite our reputation as the great company that gets technology and 
has the best site/system in the world, about taking huge risk on code that is 
proven in a single enterprise situation, Enron.

We will continue to see if Reuters, CommerceOne, Sungard, TibCo, i2, etc. are 
interested in owning all or part of the intellectual property, but they 
currently seem to be a low bid for raw source code with no proven customers 
other than Enron in an environment where they have been beat up and are 
reluctant to print stock or deplete cash.  However, some of them have yet to 
show their bid so we will let that process continue.

On mid and back office, I am met with Vickers and Tycholiz and am seeing 
Mrha, Luce and Duran this week.  They all get the basic premise.  Sally is on 
board and focused on operations/pricing.  I think the reorg we just had will 
work.  We should have a draft of an agreement with SLAs soon for physical 
gas, physical power and financial.  It would be used for you and others.  We 
should be hitting the market with the tier 2 and 3 customers in a few weeks.  
I gave Tom six new people who would focus on selling these services, working 
with EA folks and have experience in Sally's shop.

You and I could also talk to the shops above about at least having ProcessCo 
for all energy OTC deals as we discussed.

Your thoughts on selling licenses to companies so close to our core product 
line?

GP