HR Organizational Changes ,
 In the past few months, Enron has received numerous requests from other=20
companies to share some of the processes and systems that we have developed=
=20
within HR.  Also, several new businesses have been created recently by=20
consulting companies to pursue what some financial analysts believe is a hu=
ge=20
untapped market in aggregating HR services.  Recently, we completed an=20
internal review to consider what role Enron could play in this arena and ha=
ve=20
decided to explore some very specific external opportunities.  Due to the=
=20
time commitment required to pursue these opportunities, we are assigning=20
dedicated resources to this effort.  Effective immediately, the HR communit=
y=20
will have three major areas of focus that will be working together in order=
=20
to optimize HR transformation and commercialization.  Taking the lead roles=
=20
will be myself, Mary Joyce and David Oxley (see below and attached chart).

? I will lead this new effort in addition to continuing to lead those areas=
=20
of HR that are our prime candidates for commercial opportunities.  Reportin=
g=20
to me on this commercialization effort will be:  Brad Coleman with the=20
overall lead; Andrea Yowman who will focus on software applications such as=
=20
PEP, Expertfinder and Global Compensation; Sarah Davis who will focus on=20
Worklife; Elyse Kalmans who will focus on Community Relations; Cynthia Barr=
ow=20
who will focus on Benefits and Wellness; and Yevgeny Frolov and Dan Brown w=
ho=20
will focus on E-learning and Talent Management.  I will continue to report =
to=20
Steve Kean.

? David Oxley will take the overall lead for HR across all business units=
=20
focusing on continuing to increase the value HR brings internally to Enron.=
 =20
The networked recruiting, Organization Development and Training and Busines=
s=20
Unit Compensation consulting functions, the Global PEP team, as well as the=
=20
generalist consulting responsibilities for all Corp. groups, will report=20
directly to David. The HR leads for EWS, EES, EBS, ETS and EGAS will report=
=20
jointly to their business unit OTC=01,s and to David from a functional HR=
=20
perspective. In this regard David will now report to Steve Kean.

? Mary Joyce will add Global Information Management, Corporate Compensation=
=20
services and Reporting/ Analysis, to her current Executive Compensation=20
responsibilities.  Kathy Schultea, Felecia Acevedo, Cindy Ward and Suzanne=
=20
Brown will report into Mary=01,s organization. Mary will continue to report=
 to=20
Steve Kean.

? With Drew Lynch=01,s promotion to COO Metals and David=01,s increased=20
responsibilities, Robert Jones will take the HR lead for EWS Americas. Robe=
rt=20
will report to the EWS OTC. Jon Chapman has been appointed head of HR for=
=20
EEL, based in London, and will report to the EEL OTC. Both Robert and Jon=
=20
will report to David from a functional HR perspective.

Additional realignment of resources will enable our team to further improve=
=20
daily employee services, partner with Business Unit initiatives and maximiz=
e=20
opportunities for commercialization.  These modifications are as follows: =
=20

? Scott Gilchrist will lead HR for the newly formed EGAS.  As such he will=
=20
focus his attention on the asset positions in South America, Latin and=20
Central America, the Middle East and Asia.  The European assets will contin=
ue=20
to be a part of EEL.  Scott will also work closely with Rebecca McDonald an=
d=20
Sandip Mallick in relation to our assets in India.  Scott will report to th=
e=20
EGAS OTC, Rebecca McDonald and David as above.

? Michelle Cash has agreed to take the lead of the Corporate OLER function=
=20
for an interim period to determine how it should operate and be organized. =
=20
She will report to me for this particular function, but of course will rema=
in=20
primarily a part of the EWS legal function reporting to Mark Haedicke. =20

? Sheila Walton will lead the HR Generalist activities for all Corp=20
functions.  Jo Ann Hill, and all of the corporate generalist functions=20
currently under Jo Ann, will report to Sheila Walton.  Sheila will continue=
=20
to report to David.

? Sarah Davis will add the Click at Home program to her current=20
responsibilities, and will continue to report to me.
all.worldwide@enron.com