Subject: Re: Forecast for 2001
From: [email-masked]
To: [email-masked]
Cc: [email-masked], [email-masked]
Date: Wed, 4 Apr 2001 16:38:00 -0700 (PDT)

Got your note.  It's a little premature to forecast now - we will have a better idea by April 15 - our timeline for completing our look at a revenue model.  Can we delay until then?  We do have a monthly fee of $16,000 that we are receiving from Bridgeline that, while small, you could include in our revenue line to date.  I am not sure why it is not showing up as income.  Probably because we have been considered a cost center to date.  I suspect that the income is simply being recorded as an offset to one of our cost centers.  By copy of this memo to Brian Heinrich, could you and he figure out where that income is and classify it appropriately so that it shows as revenue?  Since our costs are fully allocated to business units, this should be pure margin.  Hey, you have to start somewhere!  

I have a lunch meeting scheduled with Greg Piper on Friday this week. One of the items that I want to discuss with him is how we want to treat expenses that we are incurring while researching the feasibility of this business.  I don't have an answer for you today on what if any costs will not be allocated to the business units.  Next week I can give you more info on that.  

From:	Kerry Roper/ENRON@enronXgate on 04/03/2001 01:55 PM
To:	Sally Beck/HOU/ECT@ECT
cc:	 
Subject:	Forecast for 2001

Sally,
One of the things that Greg Piper has asked me to do is to take a look at the rest of the year and get each of the VP's to assess their margins and EBIT for the remainder of 2001.  For Energy Operations, that is usually very easy since there has been no revenues, and all of the costs are allocated out, so there should be zero EBIT if nothing changed.  Given your present direction, however, you may be generating some margin in 2001.  Do you have a feel for an amount I can put into our analysis and will 100% of your costs continue to be billed out or will some be applied to this new activity? I am hoping to put something together next week, so if you or a designate could let me know in a few days I would appreciate it. 

Kerry Roper (x5-4895)