Subject: delainey discussions
From: [email-masked]
To: [email-masked]
Cc: [email-masked]
Date: Thu, 31 May 2001 07:32:25 -0700 (PDT)

highlights of my discussion with dave:
he wants an "opportunity" to originate out of the ees positions.  for example, the harrah's deal generated approximately $16 million relative to the mid, of which $4 went to ees.  he wants a chance to back this deal with his sourcing group.
he was unable to offer any definition around what the word "opportunity" means.  one interpretation of "opportunity" is that they get a head start, say three months to back a deal where neither west mm or west orig works on that deal for three months.  another interpretation is that west mm and west orig aren't allowed to talk to certain wholesale customers, for example the generators.  both of these are bad ideas.
i asked him why enron would want to keep its most talented origination resources on the sidelines for any period of time in order to let the kid brother (ees) have a "fair" chance at winning a deal.  i also asked him if he thought his crack squad could compete with the capabilities that we have developed in the west.  his answer was no.
i told dave that as the manager of the retail risk book i don't care who originates out of the transaction.  my thinking is that i give a copy of the harrah's contract to calger, foster, and delainey.  whoever gets us out first gets paid orig.  if people want to coordinate then that's fine.  if they want to compete head to head then that's fine.  speaking for portland, i would expect that west mm and orig would coordinate.
dave then said that he "gave" us the risk function and insinuated that we owed him something in return.  i indicated that i was willing to give it back and return to my simple life managing the west wholesale trading desk if that's what he wanted.  i think he took offense to that comment.
we hung up with no resolution.  dave called me back and proposed that we let anyone originate out of the position.  however, the origination dollars would go to ees profit center with the west mm or origination person getting the credit for that.  he talked about ees and the stock price and the billion dollar business.  my guys (i'm not speaking for chris here) don't care where the origination dollars go to so long as they get paid for bringing value.
i suggested that he work it out with you and that i would be looking for direction from you.

i'm pretty sure that dave will characterize our conversation as though we are in a agreement and that we are ready to move forward.  i would say that we agree that we need to get the best people originating out of these deals.  i would rather that the money for orig stay with whoever originated it.  i can live with a variety of outcomes.  i'll sit tight and wait for direction from you.

 -----Original Message-----
From: 	Lavorato, John  
Sent:	Thursday, May 31, 2001 5:44 AM
To:	Vickers, Frank W.; Lagrasta, Fred; Tycholiz, Barry; Luce, Laura; Duran, W. David; Calger, Christopher F.; Wolfe, Greg; Foster, Chris H.; Wolfe, Greg; Belden, Tim; Presto, Kevin M.; Mrha, Jean; Baughman, Edward D.
Cc:	Kitchen, Louise
Subject:	

Delainey and I started initial discussions reguarding EES and the customers and products they plan to market.  These were initial discussions.   Dave is writing something up to send to me.  Before I agree on anything I will talk to all of you.  Some of the meeting that are happening may be a little premature.

John