Subject: Re: Asset Divestiture Approval
From: [email-masked]
To: [email-masked]
Cc: [email-masked], [email-masked], [email-masked]
Date: Wed, 22 Nov 2000 01:22:00 -0800 (PST)

Rod,

Legal is reviewing the contract at this time and hopes to finish next week.  
Yesterday I was notified that the guaranteed revenues from the transportation 
agreement may be raised by $5,000 to $10,000 due to revised sizing 
requirements of  the TBS as requested by NSP.  

We have had several meetings with operations to ensure that the facilities 
that are included in the sale are correct.  Also, the O&M savings are the 
estimates given by the field.  Based on average costs for similar facilities 
the expected O&M savings would be between $6K and $8k. The field has 
indicated however because of the encroachment that they receive a large 
number of line locate requests each year for these branchlines which drives 
up the O&M costs.  My expectations are that we would save closer to $10k in 
O&M costs rather than the $20k.

In addition, regulatory reminded me today that there is still a farm tap 
issue that has to be cleared up before the sale.  All farm taps receiving 
service from these branchlines must be disconnected and service provided by 
another utility prior to the sale.  The latest estimate that I received was 
that this would be completed by the end of the year.

David