Message-ID: <18425746.1075854498570.JavaMail.evans@thyme> Date: Mon, 1 Jan 2001 11:00:00 -0800 (PST) From: david.delainey@enron.com To: janet.dietrich@enron.com Subject: Keyspan Cc: laura.luce@enron.com, frank.vickers@enron.com Mime-Version: 1.0 Content-Type: text/plain; charset=us-ascii Content-Transfer-Encoding: 7bit Bcc: laura.luce@enron.com, frank.vickers@enron.com X-From: David W Delainey X-To: Janet R Dietrich X-cc: Laura Luce, Frank W Vickers X-bcc: X-Folder: \David_Delainey_Jun2001\Notes Folders\All documents X-Origin: Delainey-D X-FileName: ddelain.nsf 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.