2001 Pro Forma ,
 Guys, in addition please incorporate in each teams package - their Direct 
Expense/Headcount ratio to plan average, Productivity ratio to plan average 
and team ROCE to plan average and any variances from 2000 to 2001 for 
income/expenses taking into account our most latest 2000 forecasts by group.

Wes, I assume that you will be putting together a final 2000 i/s package for 
me in the next couple of days.

Thanks
Delainey
---------------------- Forwarded by David W Delainey/HOU/ECT on 01/02/2001 
02:08 AM ---------------------------


David W Delainey
01/02/2001 02:15 AM
To: Wes Colwell/HOU/ECT@ECT, Faith Killen/HOU/ECT@ECT
cc:  
Subject: 2001 Pro Forma

Guys, attached you will find a completed 2001 Pro Forma budget needing Lavo's 
review and then detailed review with each team.

This workbook has a number of worksheets including:
 a) pkrs o&m - this details the o&m costs for the sold peakers assuming we 
own throught Q2 - charged to the OOC;
 b) driftPrepay - shows the detail as provided netting drift and pre-pay 
expenses - not all that relevant if you assume that increasing drift will be 
offset by larger monetizations;
 c) Summary - overall completed income statement - note that non-external 
capital charges are added back to reach EBIT;
 d) commercial income - guts of the commercial budget;
 e) group expenses - shows the detail on ENA net groups expenses, EIS/ENW/IT 
non-allocable, corporate charges not allocated to specific commercial groups 
and bonus/other comp;
 f) HP&L - takes a cut at HP&L income statement and balance sheet in 2001 
assuming a sale by the end of Q2 - this needs some sit down work with Redmond;
 g) Balance Sheet Allocations - this defines by group the capital employed, 
assets to be sold and new capital expenditures expected in 2001 - then 
calculates a net capital and depreciation charge;
 h) Balance Sheet - this defines the existing balance sheet with no 
anticipated sales or increases by vehicle (ie) Enserco, JEDI, etc - merchant 
investments are charged @ a blended rate of 15% and strategic investments are 
charged @ a blended rate of 9%.

Two action items:
 a) Print out for John - Commercial Income  & Summary worksheets for his 
comment and review &
 b) Start putting completed commercial packages together for 
distribution/further comment by the business units in the next couple of 
weeks - include detailed income statement, headcount, balance sheet 
(including expected increases,decreases, capital charge and depreciation), 
leave pages open for goals & objectives and target customer list.  I would 
like to review format and detail for each group before distribution.



Regards
Delainey
wes.colwell@enron.com, faith.killen@enron.com