RE: Standard Type Economics for Phase VI

Just catch Cheryl up then on the changes.
-----Original Message-----
From: Rosenberg, David E.
Sent: Monday, November 05, 2001 6:52 AM
To: Hayslett, Rod
Subject: RE: Standard Type Economics for Phase VI

The original send-out went to everyone. Long ago and far away, since engineering took so long to do the Level B's. We reviewed briefly at one of the Commercial meetings when you were absent. I made changes to the CB assumptions as a result of suggestions by Cheryl. I made changes to the straight-up and also the CB model as result of suggestions by you regarding doing the books more precisely.

The results of this were rerouted. Also long ago.

Finally, late week before last, received the Bs.

Hence the latest revision.

-----Original Message-----
From: Hayslett, Rod
Sent: Monday, November 05, 2001 6:45 AM
To: Rosenberg, David E.
Subject: RE: Standard Type Economics for Phase VI

Has Cheryl seen the stuff? Need to get her and Jerry on board as well.

-----Original Message-----
From: Rosenberg, David E.
Sent: Monday, November 05, 2001 6:43 AM
To: Hayslett, Rod
Subject: RE: Standard Type Economics for Phase VI

You. That's the reason for the changes (other than the capital which changed this week.). The risk analysis type stuff has all been sent to Brad Larsen.

-----Original Message-----
From: Hayslett, Rod
Sent: Sunday, November 04, 2001 8:49 AM
To: Rosenberg, David E.; Saunders, James
Cc: Tu, Denis
Subject: RE: Standard Type Economics for Phase VI

Who has reviewed these internally at Enron?

-----Original Message-----
From: Rosenberg, David E.
Sent: Fri 11/2/2001 10:23 AM
To: Saunders, James
Cc: Hayslett, Rod; Tu, Denis
Subject: Standard Type Economics for Phase VI

The attached includes the standard economic analsyses for Phase VI.

<<Synopsis Phase 62.xls<<

The pertinent worksheets are: Capital, Economics on Total Capital, and Detailed Leveraged Books Grossed Up. The last item includes the working capital impact. For consistency with prior analyses, the total capital economics do not.

One other twist: Rather than use the equity AFUDC as non- cash, I recalculated the "AFUDC" using real life short term interest to come up with a more realistic estimate of the total cash requirements.

FYI, there are a couple of other worksheets in the workbook. Among them is one for the the leveraged books on a non-grossed up basis. I did this primarily to make sure that there were no busts, since the results must come out the same whether or not you gross up.