2001 IT Allocations ,
 The 2001 Global Technology costs have been finalized.  As communicated in 
mid-October, IT operating and development costs have increased relative to 
2000 due to Enron's tremendous growth, e-commerce strategies, and expanded IT 
services.  Please find below a summary of the charges specific to your 
business unit for IT Infrastructure, IT Development, and IT e-Commerce 
initiatives:


   2001 Plan
IT Infrastructure  $ 6,594
IT Development $
IT e-Commerce  $              
                  $ 6,594

Attached please find the supporting detail for each of the major IT areas.  
You will note the allocations include current year operating costs, as well 
as, depreciation for prior IT capital expenditures.







IT Infrastructure includes services provided by the following groups:
Application Integration
Change Management
Enterprise Command Center
Enterprise Server 
Market Data
Remote Systems
Messaging
Security
Data Center Facilities
Data Communications
Voice Communications
Desktop Support
Executive Support
Hardware Support
Remote Support
Trader Support
Resolution Center
Architecture

The costs associated with these groups will be billed based on the provided 
plan amounts, with the exception of specific voice and data services which 
will be billed based on actual usage.  Adjustments for variances to plan will 
be made as applicable.  The actual usage services include WAN links, long 
distance, and market data feeds.  An estimate has been provided for these 
services; however, as these are costs which are controllable at the BU level, 
each BU should review for reasonableness.

IT Development includes services provided by the following groups:
Front Office System Development/enhancement
Corporate System Development
Energy Operations System Development/enhancement
Intranet/Extranet Development
Market Intelligence

The costs associated with these groups will be billed based on the provided 
plan amounts, with the exception of specific new development activity which 
will be billed based on actual costs.  Adjustment for variances to plan will 
be made as applicable.

IT e-Commerce includes services for the development, operation and 
enhancement of Enron's web-based trading platforms.  The costs associated 
with these groups will be billed based on actual costs allocated in 
accordance with applicable service agreements.

Please contact Mike Patrick or Elise Clark if you have questions.

Thank you !
rod.hayslett@enron.com, tracy.geaccone@enron.com