Benefits/Intercompany Reports

I attended (via phone) the GL User Group meeting this afternoon. Ron Nightingale reported that he is in the process of preparing a Statement of Work for the benefits and intercompany reports that will set forth the alternatives for the development of each of these reports. The preferred option is to contract with the developer that was working on the benefits report previously. Estimates for the completion of both reports total $50,000. As it stands now, the $50,000 would come out of Mike Sullivan's 2002 budget of $100,000. For obvious reasons, there is some reluctance to move forward at this price. I mentioned to Ron in a previous conversation that the cost of developing the reports could perhaps be deferred in our respective rate case work orders. I did not want to bring this up again without mentioning it to each of you. I need your input and intervention at this point.

FYI - I also learned that the new shared services company, Co. 179E, will contain Enron employees that will perform services on behalf of all the pipelines. This company is being designated as a division of Co. 366.