ena org changes enron americas - office of the chairman
from : david delainey and john lavorato @ enron on 12 / 21 / 2000 02 : 02 am
sent by : enron announcements @ enron
to : ena employees
cc : joe kishkill / sa / enron @ enron , orlando gonzalez / sa / enron @ enron , brett r
wiggs / sa / enron @ enron , remi collonges / sa / enron @ enron , jeffrey a
shankman / hou / ect @ ect , mike mcconnell / hou / ect @ ect , jeffrey
mcmahon / hou / ect @ ect , raymond bowen / hou / ect @ ect , louise kitchen / hou / ect @ ect ,
philippe a bibi / hou / ect @ ect , rebecca
mcdonald / enron _ development @ enron _ development , james a
hughes / enron _ development @ enron _ development , mark frevert / na / enron @ enron , greg
whalley / hou / ect @ ect , richard shapiro / na / enron @ enron , steven j
kean / na / enron @ enron , james d steffes / na / enron @ enron , ben f
glisan / hou / ect @ ect , mark koenig / corp / enron @ enron , rick buy / hou / ect @ ect , john
sherriff / lon / ect @ ect , jeff skilling / corp / enron @ enron , kenneth
lay / corp / enron @ enron , cliff baxter / hou / ect @ ect , michael r brown / lon / ect @ ect ,
mark palmer / corp / enron @ enron
subject : re - alignment
thanks to all of you , enron north america has had an outstanding year in
2000 . some of the more notable accomplishments include :
a ) 100 % plus increase in ebit from 1999 actuals to 2000 forecast ;
b ) significant rationalization of the balance sheet including the sale of the
( i ) wind river / powder river gathering assets , ( ii ) east coast power
generating assets , ( iii ) hpl and ( iv ) five of the six eastern peakers ;
c ) ena is the leading energy merchant by a factor of two ;
d ) physical electricity volume grew by 34 % ytd 1999 to ytd 2000 forecast ;
e ) natural gas volumes grew by 82 % ytd 1999 to ytd 2000 forecast ;
f ) 500 % growth in daily transactions from november 1999 to november 2000 due
to the highly successful enron online distribution channel ; and
g ) ena reaching its 25 % roce target .
these are truly outstanding accomplishments and our expectations for growth
and opportunity in enron north america for 2001 are consistent with that
success . in order to reach these goals , we felt it necessary to re - align a
number of our organizations . a number of these changes are completed . the
goals of such re - alignment include :
a ) increase overall productivity with the goal to ensure that every employee
is in a position to contribute regardless of skill set ;
b ) increase overall market coverage , deal flow and information generation
with the goal to increase bid / offer income , increase the velocity of deal
flow , improve customer coverage and promote quality information transfer to
our trading organization ;
c ) increase deal quality and earnings quality with the goal to ( i ) allocate
our resources towards the best transactions and ( ii ) significantly increase
our 
d ) promote real time decision making and a closer tie between our trading and
origination ( mid - market and structured ) organizations in order to better
align those functions to reduce the amount of un - productive internal focus ;
e ) increase the overall velocity of the capital being utilized consistent
with our goal of a 25 % plus return on capital employed ; and
f ) identify and recognize a host of new leaders in the organization that are
critical to meeting our goals next year .
with these objectives in mind , patterned after the successful business models
in calgary and portland , effective immediately the following changes are
being implemented :
a ) east power  ) a single east power team incorporating trading , mid - market
and origination will be formed under the co - leadership of kevin presto and
janet dietrich who will report to the enron americas - office of the chairman
( ea ooc ) . this team will have one income statement , one book and a joint
accountability . however , a clear delineation of responsibilities inside these
teams will continue to exist in which the trading organization will manage
the risk , income statement and product development aspects of the
partnership . the originators will have the primary responsibility to generate
origination income , provide coverage , deal flow , lead strategy formulation ,
provide information and generate strategic positions . overall , the team will
be rewarded based upon increasing the value of the book , meeting
coverage / deal flow targets and meeting its strategic / growth goals in the
eastern power markets . the team will be responsible for covering the iou  , s ,
muni  , s / co - ops , industrials and ipp  , s and will utilize all ena  , s product
capabilities including the power commodity , assets and capital . the team will
further be broken down into several key strategic regions and business units
including :
( i ) ercot  ) managed by doug gilbert smith and bruce sukaly ;
( ii ) ne  ) managed by dana davis and jeff ader ;
( iii ) midwest  ) managed by fletch sturm and ed baughman ;
( iv ) se  ) managed by rogers herndon and ozzie pagan ;
( v ) east power development  ) managed by ben jacoby ;
( vi ) east power structuring - managed by bernie aucoin ; and
( vii ) east power fundamentals and the 
east gas  ) a single east gas team incorporating trading , mid - market and
origination will be formed under the co - leadership of scott neal and frank
vickers who will be returning from portland to join this team .
west gas  ) in a similar manner , a west gas team will be formed co - managed by
phillip allen and barry tycholiz , who will be joining us in houston from the
canadian team . the denver office under mark whitt will be integrated under
this team .
central gas  ) in a similar manner , a central gas team will be formed
co - managed by hunter shively and laura luce . the chicago office will be
integrated into this team .
texas gas  ) the texas gas team will be managed by tom martin . this team will
continue to manage the gas trading business around hpl until the pending sale
is concluded in q 2 2001 . after the sale of hpl , this team will build a texas
gas business without ownership of the hpl assets .
financial  ) this group will continue to be managed by john arnold with no
significant changes .
derivatives  ) this group , lead by fred lagrasta , will offer derivative and
financial mid - market products and services to the natural gas market
specifically targeting cfo  , s and treasury departments . fred will continue to
maintain certain existing mid - market accounts with a number of producer and
industrial accounts where relationships are well formed . otherwise ,
mid - market coverage will gravitate to the regions . the new york office gas
marketing efforts will continue to be managed by fred .
upstream products  ) this group , lead by jean mrha , will develop several
distinct product offerings for the upstream segment of the gas market . this
group will develop and market the product in conjunction with the regions .
this is consistent with our desire to have a broader product offering and
greater market penetration in the upstream segment . these products include
producer outsourcing , similar to our successful petro - canada and suncor
relationships in canada , physical storage re - engineering , compressor
services , wellhead liquidity products and offshore asset and capital
products . in addition , jean will manage our bridgeline joint venture with
texaco .
gas structuring  ) this group will be lead by ed mcmichael , reporting to frank
vickers , will provide structuring and deal support to all the gas teams .
gas fundamentals  ) this group will be lead by chris gaskill , reporting to
hunter shively , will provide fundamentals to all the gas teams .
julie gomez will continue to support the gas floor through several identified
projects including long - term supply / demand analysis and , natural gas
transportation capacity trading opportunities .
there is an expectation of some customer overlap between the gas and power
groups ; for example , the combination utilities and the ipp  , s . the teams will
coordinate with regard to the combination utilities like con . edison or
pg & e . with regard to the ipp  , s , to the extent that the product offering
involves an underlying power position , the power teams will manage . we have
asked janet dietrich to coordinate such overlaps between the two
organizations in houston .
e ) technical / restructuring - in the effort to consolidate and centralize our
technical resources ( engineering , development , operations , pipeline ) to
ensure that this skill base is available to all ena groups and utilized
productively across the organization , brian redmond will form and manage the
technical services group . this group will manage ena  , s technical risks and
will provide , on a cost basis , technical services for the entire ena
organization . this group will manage the interface with ee therefore , eliminating the need to change legal entities et al .
if you are currently a commercial employee of ena or esa you will continue to
conduct business in that company .
we look forward to another exciting year in the north american energy
market . this is certainly a company unrivaled in the marketplace with the
most talented employees . the opportunities are endless . we wish you and
your family a very happy and safe holiday season .
ena org changes
enron americas - office of the chairman
from : david delainey and john lavorato @ enron on 12 / 21 / 2000 02 : 02 am
sent by : enron announcements @ enron
to : ena employees
cc : joe kishkill / sa / enron @ enron , orlando gonzalez / sa / enron @ enron , brett r
wiggs / sa / enron @ enron , remi collonges / sa / enron @ enron , jeffrey a
shankman / hou / ect @ ect , mike mcconnell / hou / ect @ ect , jeffrey
mcmahon / hou / ect @ ect , raymond bowen / hou / ect @ ect , louise kitchen / hou / ect @ ect ,
philippe a bibi / hou / ect @ ect , rebecca
mcdonald / enron _ development @ enron _ development , james a
hughes / enron _ development @ enron _ development , mark frevert / na / enron @ enron , greg
whalley / hou / ect @ ect , richard shapiro / na / enron @ enron , steven j
kean / na / enron @ enron , james d steffes / na / enron @ enron , ben f
glisan / hou / ect @ ect , mark koenig / corp / enron @ enron , rick buy / hou / ect @ ect , john
sherriff / lon / ect @ ect , jeff skilling / corp / enron @ enron , kenneth
lay / corp / enron @ enron , cliff baxter / hou / ect @ ect , michael r brown / lon / ect @ ect ,
mark palmer / corp / enron @ enron
subject : re - alignment
thanks to all of you , enron north america has had an outstanding year in
2000 . some of the more notable accomplishments include :
a ) 100 % plus increase in ebit from 1999 actuals to 2000 forecast ;
b ) significant rationalization of the balance sheet including the sale of the
( i ) wind river / powder river gathering assets , ( ii ) east coast power
generating assets , ( iii ) hpl and ( iv ) five of the six eastern peakers ;
c ) ena is the leading energy merchant by a factor of two ;
d ) physical electricity volume grew by 34 % ytd 1999 to ytd 2000 forecast ;
e ) natural gas volumes grew by 82 % ytd 1999 to ytd 2000 forecast ;
f ) 500 % growth in daily transactions from november 1999 to november 2000 due
to the highly successful enron online distribution channel ; and
g ) ena reaching its 25 % roce target .
these are truly outstanding accomplishments and our expectations for growth
and opportunity in enron north america for 2001 are consistent with that
success . in order to reach these goals , we felt it necessary to re - align a
number of our organizations . a number of these changes are completed . the
goals of such re - alignment include :
a ) increase overall productivity with the goal to ensure that every employee
is in a position to contribute regardless of skill set ;
b ) increase overall market coverage , deal flow and information generation
with the goal to increase bid / offer income , increase the velocity of deal
flow , improve customer coverage and promote quality information transfer to
our trading organization ;
c ) increase deal quality and earnings quality with the goal to ( i ) allocate
our resources towards the best transactions and ( ii ) significantly increase
our 
d ) promote real time decision making and a closer tie between our trading and
origination ( mid - market and structured ) organizations in order to better
align those functions to reduce the amount of un - productive internal focus ;
e ) increase the overall velocity of the capital being utilized consistent
with our goal of a 25 % plus return on capital employed ; and
f ) identify and recognize a host of new leaders in the organization that are
critical to meeting our goals next year .
with these objectives in mind , patterned after the successful business models
in calgary and portland , effective immediately the following changes are
being implemented :
a ) east power  ) a single east power team incorporating trading , mid - market
and origination will be formed under the co - leadership of kevin presto and
janet dietrich who will report to the enron americas - office of the chairman
( ea ooc ) . this team will have one income statement , one book and a joint
accountability . however , a clear delineation of responsibilities inside these
teams will continue to exist in which the trading organization will manage
the risk , income statement and product development aspects of the
partnership . the originators will have the primary responsibility to generate
origination income , provide coverage , deal flow , lead strategy formulation ,
provide information and generate strategic positions . overall , the team will
be rewarded based upon increasing the value of the book , meeting
coverage / deal flow targets and meeting its strategic / growth goals in the
eastern power markets . the team will be responsible for covering the iou  , s ,
muni  , s / co - ops , industrials and ipp  , s and will utilize all ena  , s product
capabilities including the power commodity , assets and capital . the team will
further be broken down into several key strategic regions and business units
including :
( i ) ercot  ) managed by doug gilbert smith and bruce sukaly ;
( ii ) ne  ) managed by dana davis and jeff ader ;
( iii ) midwest  ) managed by fletch sturm and ed baughman ;
( iv ) se  ) managed by rogers herndon and ozzie pagan ;
( v ) east power development  ) managed by ben jacoby ;
( vi ) east power structuring - managed by bernie aucoin ; and
( vii ) east power fundamentals and the 
east gas  ) a single east gas team incorporating trading , mid - market and
origination will be formed under the co - leadership of scott neal and frank
vickers who will be returning from portland to join this team .
west gas  ) in a similar manner , a west gas team will be formed co - managed by
phillip allen and barry tycholiz , who will be joining us in houston from the
canadian team . the denver office under mark whitt will be integrated under
this team .
central gas  ) in a similar manner , a central gas team will be formed
co - managed by hunter shively and laura luce . the chicago office will be
integrated into this team .
texas gas  ) the texas gas team will be managed by tom martin . this team will
continue to manage the gas trading business around hpl until the pending sale
is concluded in q 2 2001 . after the sale of hpl , this team will build a texas
gas business without ownership of the hpl assets .
financial  ) this group will continue to be managed by john arnold with no
significant changes .
derivatives  ) this group , lead by fred lagrasta , will offer derivative and
financial mid - market products and services to the natural gas market
specifically targeting cfo  , s and treasury departments . fred will continue to
maintain certain existing mid - market accounts with a number of producer and
industrial accounts where relationships are well formed . otherwise ,
mid - market coverage will gravitate to the regions . the new york office gas
marketing efforts will continue to be managed by fred .
upstream products  ) this group , lead by jean mrha , will develop several
distinct product offerings for the upstream segment of the gas market . this
group will develop and market the product in conjunction with the regions .
this is consistent with our desire to have a broader product offering and
greater market penetration in the upstream segment . these products include
producer outsourcing , similar to our successful petro - canada and suncor
relationships in canada , physical storage re - engineering , compressor
services , wellhead liquidity products and offshore asset and capital
products . in addition , jean will manage our bridgeline joint venture with
texaco .
gas structuring  ) this group will be lead by ed mcmichael , reporting to frank
vickers , will provide structuring and deal support to all the gas teams .
gas fundamentals  ) this group will be lead by chris gaskill , reporting to
hunter shively , will provide fundamentals to all the gas teams .
julie gomez will continue to support the gas floor through several identified
projects including long - term supply / demand analysis and , natural gas
transportation capacity trading opportunities .
there is an expectation of some customer overlap between the gas and power
groups ; for example , the combination utilities and the ipp  , s . the teams will
coordinate with regard to the combination utilities like con . edison or
pg & e . with regard to the ipp  , s , to the extent that the product offering
involves an underlying power position , the power teams will manage . we have
asked janet dietrich to coordinate such overlaps between the two
organizations in houston .
e ) technical / restructuring - in the effort to consolidate and centralize our
technical resources ( engineering , development , operations , pipeline ) to
ensure that this skill base is available to all ena groups and utilized
productively across the organization , brian redmond will form and manage the
technical services group . this group will manage ena  , s technical risks and
will provide , on a cost basis , technical services for the entire ena
organization . this group will manage the interface with ee therefore , eliminating the need to change legal entities et al .
if you are currently a commercial employee of ena or esa you will continue to
conduct business in that company .
we look forward to another exciting year in the north american energy
market . this is certainly a company unrivaled in the marketplace with the
most talented employees . the opportunities are endless . we wish you and
your family a very happy and safe holiday season .