Re: Reviews Plus

Dan, sounds like we are moving backwards - but these guys tend to jump the
gun at times. If it is not possible for these orgs to work together lets not
try and force them (ie) we will manage our own business and contract with
NEPCO when and if it makes sense.

Regards
Delainey
---------------------- Forwarded by David W Delainey/HOU/ECT on 02/01/2001
08:22 AM ---------------------------

Brian Redmond
01/31/2001 05:56 PM
To: David W Delainey/HOU/ECT@ECT
cc:
Subject: Re: Reviews Plus

Dave,

Yes, I've got these set up.

On a separate topic, I received a visit from D. Liebert (working for Dan L.
on EE&CC) to discuss the memo I sent out on the Tech Services Group.
During the discussion we identified several areas where EES' view diverges
from the view in my memo that ENA will manage its own technical risk and will
be supported by EE&CC. Currently, EES is headed in the following
direction:

1. EE&CC will manage all technical risk in Enron as part of a consolidated
technical risk book.
2. EE&CC will be the sign off on all DASH's with respect to technical risk.
3. EE&CC is still trying to work out how their services will be charged to
the business units - not sure what "cost" is.

This central decision is (1.) above. If EES is going to manage ENA's
technical risk then the balance between managing engineering cost and
managing technical risk will be eliminated. Essentially we will be back to a
ENA (origination) vs. EE&CC (construction) relationship where we argue about
how much money they are spending and the amount of overhead that is included
in their "cost". Your thoughts on this?

We didn't draw any lines and agreed to keep discussing to make this work. I
would suggest that either I can meet with Dan L. to understand his views or
that we have another joint meeting with you and Dan's team to resolve.

Regards,
Brian

David W Delainey
01/31/2001 03:11 PM
To: Brian Redmond/HOU/ECT@ECT
cc:
Subject: Reviews

Brian, I assume that you are doing the review for Bob Virgo, Wayne Mays, Jean
Mrha and Julie Gomez.

Regards
Delainey