Message-ID: <2850054.1075842497529.JavaMail.evans@thyme> Date: Mon, 10 Apr 2000 06:13:00 -0700 (PDT) From: drew.fossum@enron.com To: maria.pavlou@enron.com Subject: 1999 NNG & TW Audited Financial Statements Mime-Version: 1.0 Content-Type: text/plain; charset=us-ascii Content-Transfer-Encoding: 7bit X-From: Drew Fossum X-To: Maria Pavlou X-cc: X-bcc: X-Folder: \Drew_Fossum_Dec2000_June2001_1\Notes Folders\Sent X-Origin: FOSSUM-D X-FileName: dfossum.nsf Re: your comment on this today. Unbelievable!!! What a ton of _____. Lets talk. DF )by the way, whats a PAJE? DF ---------------------- Forwarded by Drew Fossum/ET&S/Enron on 04/10/2000 01:11 PM --------------------------- From: Bob Chandler 04/10/2000 10:05 AM To: Rod Hayslett/FGT/Enron@Enron cc: Allison Millan/ET&S/Enron@ENRON, Harry Walters/ET&S/Enron@Enron, Mary Kay Miller/ET&S/Enron@ENRON, Drew Fossum/ET&S/Enron@ENRON Subject: 1999 NNG & TW Audited Financial Statements Heather Mueck (AA) advised me this morning that in spite of our recent letter order from the FAO by Jim Guest, AA still does not believe we have enough evidence (other than our own opinion) to justify regulatory asset treatment for the Y2K costs. While this position is consistent with what they had told us before we made the filing, they had given us no clue last week when they were providing their comments on our browncover drafts that they still had a problem with the Y2K assets--even when they were relaying Roger Willard's comments. The bottom line is that they will have a PAJE on Northern for the amount of the asset (aproximately $3.6MM), but the amount on TW (less than $.5MM) is so small they will pass on it. As I understand it, that won't preclude a clean opinion on NNG this year, but the PAJE will continue in future years' audits until the asset is approved for recovery in Northern's next general rate case. Therefore, if we have additional Northern PAJE's in future years, the combined effect would be used to determine whether or not a clean opinion would be appropriate in those years. I assume we will suffer the scarlet letter of the multi-year PAJE, rather than write off the reg asset in the 1999 Brown Cover and be required to flow the write-off through consolidated earnings (and internal scorekeeping) in the year 2000.