Message-ID: <4363115.1075859037111.JavaMail.evans@thyme> Date: Thu, 4 Oct 2001 13:44:51 -0700 (PDT) From: tracy.geaccone@enron.com To: rod.hayslett@enron.com Subject: FW: NNG & TW Ad Valorem Tax Accrual - 2002 Plan vs. 2001 Forecast Mime-Version: 1.0 Content-Type: text/plain; charset=us-ascii Content-Transfer-Encoding: 7bit X-From: Geaccone, Tracy X-To: Hayslett, Rod X-cc: X-bcc: X-Folder: \TGEACCO (Non-Privileged)\Geaccone, Tracy\Sent Items X-Origin: Geaccone-T X-FileName: TGEACCO (Non-Privileged).pst What do you think? -----Original Message----- From: Tilotta, Robert W Sent: Thursday, October 04, 2001 2:51 PM To: Kleb, Steve Cc: Geaccone, Tracy; Schick, Warren Subject: RE: NNG & TW Ad Valorem Tax Accrual - 2002 Plan vs. 2001 Forecast Property tax liability, in a given tax year i.e. 2002, is directly related to the level of income and asset cost of the prior calendar year i.e. 2001. As in the case of NNG & TW, income and asset cost are increasing. Therefore, property taxes also will increase. In order to keep the property tax liability flat, three strategies are available (1) book any gain on the sale of an asset below the line (N.U.O.I.), (2) assets there are no longer in service should be retired from the books of records, and (3) items that can be expensed should be expensed and not capitalized to plant, property, & equipment. If you have any other questions or comments, please advise. Robert W. Tilotta Enron Corp. 1400 Smith Street Property Tax Department Suite 3AC-1462 Houston, Texas 77002-7361 Telephone: (713) 853-7995 FAX: (713) 646-3456 e-mail: Robert.Tilotta@enron.com -----Original Message----- From: Kleb, Steve Sent: Thursday, October 04, 2001 6:33 AM To: Tilotta, Robert W Cc: Geaccone, Tracy; Schick, Warren Subject: NNG & TW Ad Valorem Tax Accrual - 2002 Plan vs. 2001 Forecast The 2002 Plan reflects an annual property tax accrual increase for both companies of approximately $1.0 MM (NNG $.3 MM and TW $.7 MM) above what is presently being accrued on each company this year. Would you please respond to Tracy on the reasons for the increase between years and also provide a possible strategy for keeping the accrual flat. She will need your response by Friday to cover any question/concerns Stan may have after his review this weekend. Thanks in advance for your cooperation and support.