Message-ID: <14399032.1075844210414.JavaMail.evans@thyme>
Date: Wed, 23 May 2001 10:18:00 -0700 (PDT)
From: peter.styles@enron.com
To: richard.shapiro@enron.com
Subject: Re. German speaking territories regulatory effort.
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FYI in confidence for now, if you wouldn't mind. (For some reason Baumerich 
did not want to copy Paul H.) I can give you the background when we next 
speak. (Nailia, Bruno, Teun, Brendan and I are working on some interesting 
appointments/ events/ visits for you w/c 4 June.)

---------------------- Forwarded by Peter Styles/LON/ECT on 05/23/2001 05:03 
PM ---------------------------


John Thompson
05/22/2001 08:02 AM
To: Gregor Baumerich/LON/ECT@ECT
cc: Eric Shaw/ENRON@EUEnronXGate, Peter Styles/LON/ECT@ECT 

Subject: Re: REGULATORY AFFAIRS - BOY ARE WE IN TROUBLE  

Gregor, as discussed, I will call after my meeting with Rabensteiner this 
morning to discuss.  In general my assumptions and thoughts are as follows....

a) Medium term, we need to move in the direction of having local nationals - 
instead of AngloSaxons - as our
 lead face deep in the Germanic regulatory arena.  Styles & Hennemeyer will, 
no doubt, continue to have
 significant leadership roles; but, there is no substitute for locals.
b) As the markets get more liquid, especially as clearer national and 
regulatory bodies become established, the
 opportunity for RegAffairs value add increases - not decreases.  Greater 
liquidity and transparency will 
 increase the relative importance of transmission conditions.
c) Market concentration is a big problem and will get much bigger.  This will 
occupy a lot of time over the next few
 years.
d) Inevitably, some of the people we hire will go commercial, others will not 
work-out and others will leave Enron.
 If we try for 6 to 8, we will be lucky to get 3 or 4 by year end.  Of that, 
we will be lucky if 2 or 3 are successful
 RegAffairs people 2 years later.  It takes 2 years to grow our own top 
quality professional.  We are behind.
e) The gas market has only begun to move.  After a two year fight in that 
market we will then have to content with
 gas/power convergence which will introduce yet a new set of concentration 
and transmission and plant siting
 issues.
f) Historically, our RegAffairs people have been our most effective 
communicators in the public arena including
 the media.  As liquidity increases, the pressure to do deals will grow 
exponentially on commercial leads with
 the result that they will step further and further away from the public 
communicatioins arena.  But, particularly
 in Europe, we will continue for a long time to need to maintain a certain 
level of public profile.  Best done by
 a RegAffairs person rather than someone who should be out doing a deal.

I will call later this morning.  Thanks. John T.
f) 



Gregor Baumerich
21/05/2001 14:58
To: John Thompson/LON/ECT@ECT
cc: Eric Shaw/LON/ECT, Peter Styles/LON/ECT@ECT 

Subject: Re: REGULATORY AFFAIRS - BOY ARE WE IN TROUBLE  

I don't think we should make such an effort. Let's discuss.