Research and Development charges to GPG

Janice:

Here is the memo I spoke to you about concerning the charges that need
to be reversed.

If you have any questions, please call me.

Shirley

---------------------- Forwarded by Shirley Crenshaw/HOU/ECT on 08/16/2000
09:54 AM ---------------------------

Kimberly Watson@ENRON
06/15/2000 03:26 PM
To: Kent Miller/ET&S/Enron@ENRON, Martha Janousek/ET&S/Enron@ENRON, Elaine
Concklin/ET&S/Enron@ENRON, Vera Apodaca/ET&S/Enron@ENRON, Rod
Hayslett/FGT/Enron@ENRON, Vince J Kaminski/HOU/ECT@ECT, Pinnamaneni
Krishnarao/HOU/ECT@ECT, Shirley Crenshaw/HOU/ECT@ECT
cc:
Subject: Research and Development charges to GPG

Vince, Krishna and I met to discuss the Research and Development cross
charges to GPG for January through June. These charges are based upon a
budgeted amount of allocating three resources to the GPG group (two resources
for Revenue Management and one resource for GPG Marketing). We have utilized
the R&D group some during the first half of the year, but not to the full
extent of three resources. Vince and Krishna have agreed to reverse out some
of the charges that were budgeted January through June. We will revisit this
issue again toward the end of the year to determine if any adjustments are
necessary for July through December.

The budgeted amount January through June has been distributed between the NNG
and TW as follows:
Research and Development
BUDGET ($000) NNG TW ET&S

January $46.7 $ 46.7
February $26.1 $20.4 $ 46.5
March $35.9 $10.2 $ 46.1
April $34.8 $10.2 $ 45.0
May $36.4 $ 8.8 $ 45.2
June $36.4 $ 8.8 $ 45.2
$274.7

Out of the $274.7 budgeted for the first half of the year, $199.7 is to be
reversed back to the Research and Development Department. This reversal will
occur in July. Vince, Vera Apodaca (ext. X35980) will be our contact to
help facilitate the reversal of these charges.

Elaine, the remaining $75.0 ($274.7-$199.7) is to be allocated with $50.0
going to the Revenue Management Work Order and $25.0 remaining in O&M.

If anyone has any questions or needs additional information, please don't
hesitate to call me (X33098). Thanks, Kim.