|
|
Enron Mail |
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
|