Message-ID: <16148852.1075860085191.JavaMail.evans@thyme>
Date: Mon, 24 May 1999 05:13:00 -0700 (PDT)
From: louise.kitchen@enron.com
To: mark.taylor@enron.com
Subject: Latest Update
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X-From: Louise Kitchen
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Louise Kitchen
20/05/99 20:43
To: Philippe A Bibi/HOU/ECT@ECT, John Sherriff/LON/ECT@ECT, Greg 
Whalley/HOU/ECT
cc: Jay Webb/HOU/ECT@ECT, David Port/LON/ECT@ECT, Paul Goddard/LON/ECT, Elena 
Kapralova/LON/ECT, Arfan Aziz/LON/ECT@ECT, Paul H Racicot/HOU/ECT@ECT 
Subject: On-Line Project Update

A successful week.  The contractor has been selected and the Letter of Intent 
has been signed.  We have until the end of next week to sign the full 
contract.  The delivery of the project will be 18th September although the 
contract heavily incentivizes the company to complete within 14 weeks of now.

1. Agency.com
The discovery process has commenced.  During this period we are bringing 
together a large number of the team to ensure that the work to be carried out 
is in line with our requirements.  Members of the team will be commuting to 
the Agency.com office in Dallas over the next week these include Jay Webb, 
Marcello Romano, Pat Gogerty,  Chris Dodds and Tilak (for two days).

Going forward, Paul Goddard will be the main commercial contact with 
Agency.com and he will be responsible for accessing the correct information / 
individuals within Enron as and when required for the Agency.com work.  For 
the next week Paul will be replaced by Marcello as the interface during 
discovery whilst Paul ensures that the contract is completed between 
ourselves and Agency.com.  We are pushing very hard for contract completion 
early/mid next week.

The main commercial terms of the contract include incentives and penalties 
which hopefully will increase their potential to deliver early:  
Delivery of application   19th September 
Estimate of costs   $1.2 million +$100,000 for JE 
Incentives   $100,000/week earlier than week 14
Penalties   5% of costs/week
Exclusivity   18 months (on energy commodities)

Documents attached for information:
 



Back up up service provider
Anthony has told I-Cube that at the current time they are our number two 
choice and should we fail to reach agreement on the actual term of the 
agreement with Agency.com next week, then we will be contacting them to 
continue negotiations. 

2. Trading Team Co-ordination

Europe Elena Kapralova
Elena has produced initial product descriptions working with the individual 
trading groups.

US   Paul Racicot 
Paul is working with the North American trader representatives on raising the 
awareness of the project, he aims to have details on the products by the end 
of this week.  He has also worked on highlighting the requirements such as 
staffing and space which need to be pushed in people's minds early in this 
project to prepare for launch.

Both of the above will be co-ordinating feeback sessions with the trader 
groups on the prototype in approximately 4-5 weeks.

3.  Business Process
We now have a fairly substantial team in place for the Business Process side 
of the project.

Europe  David Port      Process Leader
  Bryan Seyfried/David Weekes   Control / Credit 
  Janine Juggins     Tax
US  David Mally      Process Leader
  Bill Bradford     Control / Credit
  Tax      TBA

David Port is leading the way with scoping out the Business Process side of 
the project and plans to have completed substantial documentation by the end 
of this week.  He will be co-ordinating with Dave Mally and a roundtable 
meeting on the Business Process implementation will be held in the next two 
weeks in the Houston office.

From the OnLine team itself the Business Process is being helped by Arfan 
Aziz who is currently tasked with creating a counterparty database to 
facilitate the process of enabling counterparties to trade on the system.

4. PR

The approach to developing the site has been agreed with Mark  Palmer.  We 
have instructed the agency that they are to abide by the guidelines for the 
Enron Logo and get a feel for the Enron style through the intranet pages, 
although allowing them fairly free rein with the site initially (up to 
prototype and under Paul's watch) to use their creative approach to creating 
the site.

Out of interest I spent time with the Design Director this afternoon and the 
actual sites they have produced are pretty impressive, here are some examples 
if you are interested.

www.british-airways.com
www.sprint.com
www.benetton.com

Another site which I think offers some of the appeal we would need is 
www.vw.com .

Apart from Mark's involvement in the project he has also asked George Tzinas 
and Marge Nadasky from his team to assist in this project.

5.  Legal and Regulatory

US Legal
Meeting held with Sullivan & Cromwell.  They are happy with the overall 
structure of the site conceptually and offered several methods of tightening 
the process of binding a customer to the transaction on the Click and 
minimising the risks to Enron.  These are captured within their first draft 
of the agreements.  These are in first draft format only and have yet to be 
reviewed by Enron.  The concept we are working with currently for the US 
market are generic language formats to override current Masters.  The current 
format which is under review is the idea of an enabling agreement (ie the 
piece of paper they sign to register) and then a text book on screen to clock 
on when they enter the site.  I am thinking that we should work towards one 
document which is much simpler althoughslightly longer.


US Regulatory - We will be involving Steve Kean and Cynthia Santer from his 
group in order to ensure that they remain up to speed with the project.   

European Regulatory
Work has kicked off on compiling the jurisdictional issues with regard to 
Europe.  We are facing an issue in that each commodity has one GTC and this 
is difficult (for example German Power would be under German Law for German 
counterparties and English Law for English counterparties) and we really need 
to have a default.
approximately 5 weeks.

6. Admin

The RC number for this project is 2509.

My movements - Still one week in Houston one week in London at present.







To: Louise Kitchen/LON/ECT@ECT
cc:  
Subject: fyi