Subject: Keyspan
From: [email-masked]
To: [email-masked]
Cc: [email-masked], [email-masked]
Date: Mon, 1 Jan 2001 11:00:00 -0800 (PST)

Janet, between you, Laura and Frank/Gil you should  be able to field a one 
Enron team on this one.  I am at your disposal otherwise.

Laura/Frank - this is an important one for the team - please work together 
constructively.  Gil should continue in his current role as main relationship 
manager unless you guys change your mind.

Regards
Delainey

---------------------- Forwarded by David W Delainey/HOU/ECT on 01/01/2001 
06:47 PM ---------------------------

Janet R Dietrich
12/29/2000 01:36 PM
To: David W Delainey/HOU/ECT@ECT
cc:  
Subject: Keyspan 

Quick update on Keyspan:  Gil Muhl flew to New York yesterday to spend the 
afternoon with Chuck Devario. It sounds like their meeting went very well as 
they spent a few hours discussing Keyspan's situation in the Northeast market 
and how an Enron/Keyspan "JV" would work. They actually outlined a lot of 
ideas on the white board and it basically sounds like Chuck is very 
interested in pursuing this JV that would focus on optimizing Keyspan's gas, 
power, and fuel oil portfolios. Chuck is now planning to come to Houston in 
mid-January to sit down with us and further these discussions. If the Houston 
visit goes well we will then plan to take him to Chicago to show him 
first-hand the Enron/People's JV (trading floor, office set-up, discussion of 
general contractual arrangements between the reg. utility and unreg. 
affiliate, etc.). Chuck knows Tom Patrick and it would be a great way to show 
him how well our Chicago JV has worked for both People's and Enron. Obviously 
this visit and meeting will need to be tightly finessed but I'm confident 
that with Laura Luce/Bill Morrow and Gil, Chuck, and myself, it will work.

We may want to consider getting out with Keyspan and People's together in a 
more social setting sometime in March (maybe the Master's would work). I 
think Keyspan has the ability to get out of the Coral relationship early if 
they really wanted to (it currently goes through April, 2002) although I 
think it will probably take the better part of next year to formulate the 
entire structure around this JV. I think the potential is to have a 
commercial structure in place and effective going into next winter or 
coinciding with the termination of the Keyspan/Coral relationship in April 
2002.

Okay, now the players needed to make this happen....Gil needs to be 
intimately involved. His knowledge of that market and company and his 
relationship with Devario, Anderson, Fazio, the operational folks, etc. is 
extremely good. If you decide that you do not want to have Gil involved in 
this (not a good decision) you need to move him out of his current role. 
Given the fact that we are using the People's JV as a showcase, Laura Luce 
can be very closely connected to Gil and Keyspan in a very natural and 
genuine way. Gil will need to lean on Laura's expertise in how she set up the 
Chicago JV throughout the process. I plan to insert Michael Brown into the 
deal team to focus on the power and fuel oil components. Michael has 
excellent relationships with all the folks at Keyspan and his knowledge of 
Keyspan's power portfolio and that power market will be critical. Ed 
McMichael will lead all the structuring effort (gas and maybe power too), and 
we'll need Bob Superty from the  operational side. 

Although it is still unclear as to whether Keyspan will decide to request 
proposals from several players, it is clear that with our overall 
capabilities and genuine desire to be flexible on the commercial structure in 
what we put together with them, Chuck Devario is very interested in pursuing 
more detailed discussions in the very near future.
 
I'd like you to be available to spend some time with Chuck and I when he 
comes to Houston in January ( maybe  a late morning meeting and lunch) and 
I'll coordinate with Kay on that.

Let me know if you want to talk about this ahead of time. I'll be here all 
next week.