RE: Trans Pecos

OK

-----Original Message-----
From: Watson, Kimberly
Sent: Wednesday, January 09, 2002 4:25 PM
To: Harris, Steven; McConnell, Mark
Cc: Centilli, James
Subject: Trans Pecos

Steve,

James re-ran Trans Pecos with the following:

Term: 20 years
Rate: $0.261
Volume: 240,000 MMBtu/d
Cost: $130.274MM (Without cost of NNG I/C and over-run up to $143.9MM)
then
ROE: 12.38%

If Cost is capped at $130.274 (no over-run), then ROE is 15.25%

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Term: 15 Years
Rate: $0.261
Volume: 240,000 MMBtu/d
Cost: $130.9 (Without cost of NNG I/C and over-run up to $143.9MM)
then
ROE: 10.82%

If Cost is capped at $130.274 (no over-run), then ROE is 13.8%

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Let's discuss tomorrow morning. Kim.