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Enron Mail |
Louise Kitchen
20/05/99 20:43 To: Philippe A Bibi/HOU/ECT@ECT, John Sherriff/LON/ECT@ECT, Greg Whalley/HOU/ECT cc: Jay Webb/HOU/ECT@ECT, David Port/LON/ECT@ECT, Paul Goddard/LON/ECT, Elena Kapralova/LON/ECT, Arfan Aziz/LON/ECT@ECT, Paul H Racicot/HOU/ECT@ECT Subject: On-Line Project Update A successful week. The contractor has been selected and the Letter of Intent has been signed. We have until the end of next week to sign the full contract. The delivery of the project will be 18th September although the contract heavily incentivizes the company to complete within 14 weeks of now. 1. Agency.com The discovery process has commenced. During this period we are bringing together a large number of the team to ensure that the work to be carried out is in line with our requirements. Members of the team will be commuting to the Agency.com office in Dallas over the next week these include Jay Webb, Marcello Romano, Pat Gogerty, Chris Dodds and Tilak (for two days). Going forward, Paul Goddard will be the main commercial contact with Agency.com and he will be responsible for accessing the correct information / individuals within Enron as and when required for the Agency.com work. For the next week Paul will be replaced by Marcello as the interface during discovery whilst Paul ensures that the contract is completed between ourselves and Agency.com. We are pushing very hard for contract completion early/mid next week. The main commercial terms of the contract include incentives and penalties which hopefully will increase their potential to deliver early: Delivery of application 19th September Estimate of costs $1.2 million +$100,000 for JE Incentives $100,000/week earlier than week 14 Penalties 5% of costs/week Exclusivity 18 months (on energy commodities) Documents attached for information: Back up up service provider Anthony has told I-Cube that at the current time they are our number two choice and should we fail to reach agreement on the actual term of the agreement with Agency.com next week, then we will be contacting them to continue negotiations. 2. Trading Team Co-ordination Europe Elena Kapralova Elena has produced initial product descriptions working with the individual trading groups. US Paul Racicot Paul is working with the North American trader representatives on raising the awareness of the project, he aims to have details on the products by the end of this week. He has also worked on highlighting the requirements such as staffing and space which need to be pushed in people's minds early in this project to prepare for launch. Both of the above will be co-ordinating feeback sessions with the trader groups on the prototype in approximately 4-5 weeks. 3. Business Process We now have a fairly substantial team in place for the Business Process side of the project. Europe David Port Process Leader Bryan Seyfried/David Weekes Control / Credit Janine Juggins Tax US David Mally Process Leader Bill Bradford Control / Credit Tax TBA David Port is leading the way with scoping out the Business Process side of the project and plans to have completed substantial documentation by the end of this week. He will be co-ordinating with Dave Mally and a roundtable meeting on the Business Process implementation will be held in the next two weeks in the Houston office. From the OnLine team itself the Business Process is being helped by Arfan Aziz who is currently tasked with creating a counterparty database to facilitate the process of enabling counterparties to trade on the system. 4. PR The approach to developing the site has been agreed with Mark Palmer. We have instructed the agency that they are to abide by the guidelines for the Enron Logo and get a feel for the Enron style through the intranet pages, although allowing them fairly free rein with the site initially (up to prototype and under Paul's watch) to use their creative approach to creating the site. Out of interest I spent time with the Design Director this afternoon and the actual sites they have produced are pretty impressive, here are some examples if you are interested. www.british-airways.com www.sprint.com www.benetton.com Another site which I think offers some of the appeal we would need is www.vw.com . Apart from Mark's involvement in the project he has also asked George Tzinas and Marge Nadasky from his team to assist in this project. 5. Legal and Regulatory US Legal Meeting held with Sullivan & Cromwell. They are happy with the overall structure of the site conceptually and offered several methods of tightening the process of binding a customer to the transaction on the Click and minimising the risks to Enron. These are captured within their first draft of the agreements. These are in first draft format only and have yet to be reviewed by Enron. The concept we are working with currently for the US market are generic language formats to override current Masters. The current format which is under review is the idea of an enabling agreement (ie the piece of paper they sign to register) and then a text book on screen to clock on when they enter the site. I am thinking that we should work towards one document which is much simpler althoughslightly longer. US Regulatory - We will be involving Steve Kean and Cynthia Santer from his group in order to ensure that they remain up to speed with the project. European Regulatory Work has kicked off on compiling the jurisdictional issues with regard to Europe. We are facing an issue in that each commodity has one GTC and this is difficult (for example German Power would be under German Law for German counterparties and English Law for English counterparties) and we really need to have a default. approximately 5 weeks. 6. Admin The RC number for this project is 2509. My movements - Still one week in Houston one week in London at present. To: Louise Kitchen/LON/ECT@ECT cc: Subject: fyi
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