Message-ID: <22669426.1075842435187.JavaMail.evans@thyme> Date: Thu, 12 Oct 2000 05:44:00 -0700 (PDT) From: drew.fossum@enron.com To: michael.moran@enron.com, louis.soldano@enron.com Subject: Proposed Revisions to 2001 Plan O&M Mime-Version: 1.0 Content-Type: text/plain; charset=us-ascii Content-Transfer-Encoding: 7bit X-From: Drew Fossum X-To: Michael Moran, Louis Soldano X-cc: X-bcc: X-Folder: \Drew_Fossum_Dec2000_June2001_1\Notes Folders\All documents X-Origin: FOSSUM-D X-FileName: dfossum.nsf FYI: more O&M gymnastics, but so far no impact on law. DF ---------------------- Forwarded by Drew Fossum/ET&S/Enron on 10/12/2000 12:43 PM --------------------------- Elaine Concklin 10/11/2000 07:13 PM To: Danny McCarty/ET&S/Enron@Enron, Dave Neubauer/ET&S/Enron@ENRON, Steven Harris/ET&S/Enron@ENRON, Drew Fossum/ET&S/Enron@ENRON, Kent Miller/ET&S/Enron@ENRON, Mary Kay Miller/ET&S/Enron@ENRON, Steve Gilbert/ET&S/Enron@ENRON, Julia White/ET&S/Enron@ENRON, Steve Hotte/Corp/Enron@ENRON, Phil Lowry/OTS/Enron@ENRON, Rod Hayslett/FGT/Enron@ENRON, Louis Soldano/ET&S/Enron@ENRON, Michel Nelson/ET&S/Enron@ENRON cc: Tracy Geaccone/GPGFIN/Enron@ENRON, Vera Apodaca/ET&S/Enron@ENRON, Sophie Patel/ET&S/Enron@ENRON Subject: Proposed Revisions to 2001 Plan O&M In order to reduce net O&M by $7.9MM on NNG and $3.8MM on TW, I propose the following additions to overhead. Per Rod, we will leave Gross O&M where it is and increase the overhead allocations. These dollars will be added to the Capital Budget via an increased overhead rate. Once finalized, I will calculate the new overhead rate and send it to you so we can add these dollars to the construction projects. Please review this proposal and let me know by Friday if we need to make adjustments. There is still a hole of $1.2MM on TW that we need to fill in order to cover the Environmental Remediation/PCB costs without reducing them. NORTHERN NATURAL GAS: Direct: 0.5 - Marketing (brings net flat to 3CE) 2.7 - Operations (brings net flat to 3CE) 2.0 - IT (brings captalized portion of total IT back up to 3CE levels) 5.2 - Total Direct 1.6 - ETS Operations (brings captalized portion back up to 3CE levels @ 35%) 0.3 - ETS Executive (5%) 0.5 - ETS IT (brings captalized portion of total IT back up to 3CE levels) 0.3 - Corporate Direct (4%) 2.7 - Total ETS/Corporate 7.9 - Total Decrease in Net O&M / Increase in Overhead TRANSWESTERN: Direct: ? - Marketing (already below 3CE) 1.2 - Operations (brings net flat to 3CE) 1.2 - ??? (Operations?? - need to cover increased PG&E PCB of 1.0 & Env. Rem. of 1.4) 0.8 - IT (brings captalized portion back up to 3CE levels) 3.2 - Total Direct 0.3 - ETS Operations (35%) 0.1 - ETS Executive (5%) 0.1 - ETS IT (20%) 0.1 - Corporate Direct (5%) 0.6 - Total ETS/Corporate 3.8 - Total Decrease in Net O&M / Increase in Overhead Thanks, Elaine