FYI
---------------------- Forwarded by Rod Hayslett/FGT/Enron on 11/15/2000 
09:33 AM ---------------------------

Rod Hayslett

11/15/2000 06:45 AM
To: Mark E Lindsey/GPGFIN/Enron@ENRON
cc: Kevin Hughes/HOU/EES@EES 

Subject: Reorganization of Houston and Omaha Facilities Management 
Responsibilities

What does this mean to our budgets?     Is there a contract with EES that 
allows them to make an "intercompany profit" on this business?     The reason 
for my concern is 1) EES is a marketing affiliate and 2) profits paid to 
affiliates are not allowed under several of our joint venture agreements and 
will come under intense scrutiny at the FERC.     I will need to understand 
in detail what I am going to be billed from EES.

---------------------- Forwarded by Rod Hayslett/FGT/Enron on 11/15/2000 
06:42 AM ---------------------------
   
	
	
	From:  Steve Kean & Bill Donovan                           11/14/2000 06:36 PM
	

Sent by: Enron Announcements
To: All Enron Houston
cc:  

Subject: Reorganization of Houston and Omaha Facilities Management 
Responsibilities


Responsibility  for daily operations of building support services in the 
Enron Building, Houston leased offices, and Two Pacific Place (Omaha) will be 
transitioning from Corporate to Enron Energy Services (EES) by year-end.  The 
areas affected include facility operations and maintenance of mechanical, 
electrical, and air-conditioning systems; mail delivery;  housekeeping;  
food, copier, and records services.

This transition of services, as presently managed by Enron Property and 
Services Corp. (EPSC), is designed to optimize value to Enron,s Business 
Units by leveraging facility management businesses now offered by EES to 
their commercial customers.  EPSC staff having administrative responsibility 
for these services will report to Enron Facility Services, a subsidiary of 
EES,s Global Energy Services group led by Daniel Leff, President and CEO.

EPSC is responsible for Enron,s internal real estate and office development 
needs, including leasing, space allocations and facility planning, project 
and construction management, furniture systems, and office relocation.  EPSC, 
in its development role, remains a part of Enron Corporate Administration 
Services (ECAS) along with Corporate Security and the Aviation Department, 
reporting to Bill Donovan, Vice President, Corporate Administrative Services.

This alignment of responsibilities offers the opportunity for EPSC to focus 
resources on effective utilization of our existing office space assets and 
managing the development of Houston,s new Enron Center Campus project.