Subject: Depreciation
From: [email-masked]
To: [email-masked]
Cc: [email-masked]
Date: Tue, 28 Aug 2001 08:51:18 -0700 (PDT)

Attached is a file showing depreciation for NNG Commercial after excluding depreciation for the capital dollars associated with rate case settlement (lines 13-16).  The 2002 depreciation is calculated to be $4.379 million.  

I think philosophically it s a good idea to track capital projects within NNG Commercial based on the life of the contracts used to justify the project.  I don't think Neubauer is quite there yet.  

My concern is that we have developed an IBIT  target for 2002 by using a 2001 number that does not include depreciation.  It seems that we ought to offset the 01 starting point by the amount of the 02 depreciation.  Lets talk further with Rod.