ENA Power and Gas Suggested Reg Strategy for

ENA Power and Gas Suggested Reg. Strategy for New CN role– Commercial • Meet with Louise Kitchen and John Lavorato • Meet with Philip Allen -- West Gas and _____ -- East Gas • Send memo to Elizabeth Sager, Sheila Tweed, Barbara Gray, Jeff Hodge; Tim Belden and West Origination; Ozzie Pagan and Ed Baughman; and Berney Aucoin and Chip Schneider; as well as our Gov’t Affairs group

Suggested Strategy -- Gov’t Affairs • Discussion with Gov’t Affairs Gas and Power teams to obtain buy-in -- Jim focusing on EES, with continued responsibility for ENA -- CN to be additional source of coordination for ENA (Somewhat define CN role: In order to be able to carry out new responsibility, need some level of authority -- Coordinator? Lead? Dotted line to reg. power/gas people? )

Benefits • Additional focus on guidance/coordination for ENA • Provide broader assistance for: -- “Triage” (Cal, NY, etc. ) -- Deal support -- RTOs -- Creating new value/deals/contacts • Need to meet Enron’s new goals: 20% volume growth; make substantial progress toward open access in wholesale North American power markets; develop new generation sites • Focus on providing superior regulatory legal and RTO/other services

Initial Proposed Action Plan • Obtain brief email of activities from all gas/power people (unless the activity database is current) • Obtain “hot list” or equivalent and identify big deals: – Ft. Pierce repowering – Florida plants – TX MX • Hire Susan or other attorney for East desk • Identify any issues that require attention since Mary left (Ray to review weekly electric report/email FERC notices for West Desk? )

Continued. . • Assist in Imr’s initiative? • Send memo to group: Jim/CN need to briefly review all FERC/PUC, etc. filings that affect wholesale gas/power (except Cal. ? —are you continuing this oversight? ) Provide opportunities for training as needed • Possibly ask for brief (bullet point) bi-weekly email updates from each reg person identifying current activities and identifying issues that need to be discussed on the RTO or West conference call (provides information and may eliminate the need for weekly/biweekly calls over time) • Encourage reg people to send emails that contain their opinion on the issue (if applicable)