Message-ID: <18698688.1075854623561.JavaMail.evans@thyme>
Date: Mon, 3 Apr 2000 10:57:00 -0700 (PDT)
From: eric.bass@enron.com
To: bryan.hull@enron.com, david.baumbach@enron.com, michael.walters@enron.com
Subject: FINAL DECISION ON ACCRUAL VALUE
Cc: brenda.herod@enron.com
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Tom has come to a decision on what to do with the ubiquitous accrual value.  
60% of this value should be credited to Greg's Transport expense on a monthly 
basis.  Tom, in turn, will cover Ed on this portion of the expense.

For example:

Accrual Value comes out to be $300,000 for the month of April.

This means that:

Greg's portion of this value is 60% of $300,000 = $180,000
Tom's portion of this value is 40% of $300,000 = $120,000

Greg's Transport Expense is ($700,000)
So, Tom will cover                      $180,000 of this expense
Greg's adjusted Expense is   ($520,000)

Greg's P&L is net better off by the $180,000 of accrual value
Tom's P&L is net better off by $120,000  of accrual value which had not been 
previously recognized.
Ed's P&L is net unchanged from all of the above.


Call with questions.

Eric
x3-0977