After defaulting on multiple contracts last July during a periodof extreme power prices and taking huge losses to make up for theproblem, Cinergy considered getting out of trading entirely.However, it ended up scaling back its national operations to aregional focus and it brought in a large new team of moreexperienced players.

The reorganization adds “new scope, scale and expertise,” thecompany said. “Over the past few months, we have recruited newtalent to all areas of the marketing and trading organization,attracting what we believe are franchise players in the energybusiness,” said Michael J. Cyrus, president of the energycommodities business unit. “The new personnel completes asubstantial phase of our reorganization started in the second halfof 1999, when we announced new top management for marketing andtrading.”

The new personnel include Robert C. McCarthy, chief risk officerwho previously held a similar position with Tennessee ValleyAuthority; Mike A. Abdalla, vice president of Midwest marketing whopreviously was a vice president with Williams Energy Marketing andTrading; Timothy B. Ferguson, managing director of power tradingand operations who was senior director of power trading at Dynegy;Dennis Flaherty, managing director of commercial operations whopreviously was senior director of transmission trading anddevelopment at Dynegy; John S. Daly, managing director of financialtrading who was director of risk management for Valero Energy; andPaul Drexelius, managing director of transportation and storage whowas manager of asset optimization for Columbia Energy Services.Other additions to the Cinergy trading staff include: Brad E.Banky, Michael Whalen, Kenneth J. King, Charles R. Whitlock, ReneeM. Marko, and Jeffery L. Robertson

Last year, several senior management changes were implemented.Timothy J. McCabe joined the company as vice president trading andoperations, and Joseph W. Toussaint was hired as vice president,marketing. Art Vivar was promoted to vice president, businessdevelopment, and Douglas F. Esamann was promoted to vice presidentand chief financial officer of the energy commodities businessunit.

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