Subject: Enron Net Works - Cost Savings
From: [email-masked]
To: [email-masked]
Cc: [email-masked], [email-masked]
Date: Sun, 11 Nov 2001 12:47:23 -0800 (PST)

We are prepared to get with you as soon as you would like after your return from New York to review projected cost savings from ENW.  For each business unit that we support (EA, EGM, EIM, EES, EBS), we have prepared cost savings on expense and capital based on the three scenarios below.  

	Scenario 1:	Enron exits the line of business, with immediate headcount reductions and cost savings quantified;
			skeleton staff remains for orderly exit of business; then final headcount reductions and cost
			savings quantified (Lights Out)

	Scenario 2:	Enron retains and maintains line of business, but does not invest for growth; assumes no further systems 
			enhancements; support is scaled back from current level and is minimal (Lights On - But Dim)

	Scenario 3:	Enron retains line of business and invests modestly to accommodate known market changes; service levels 
			are scaled back from current level and are a step above minimal (Lights On - Brighter) 

Cost savings in all three scenarios have been quantified at the following level of detail by commodity for EGM and EIM:

	EGM:	Freight Markets					EIM:	Forest Products
		FX/IR/Equity						Steel
		Domestic Crude & Products
		International Crude & Products
		Domestic Coal
		International Coal

Cost savings have been identified for ENW's unallocated expense and capital as well.  We have worked with HR to adjust cost savings for anticipated severance costs.  

--Sally 

713-853-5926
[email-masked]

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