FW: O&M costs

Michael and JB,

Please note for inclusion in pro-formas.

Eric

-----Original Message-----
From: Asante, Ben
Sent: Friday, October 19, 2001 2:22 PM
To: Gadd, Eric
Cc: Reinecke, Bryan
Subject: O&M costs

Eric,
The O&M costs seem reasonable.
The pipe O&M is usually very very low compared to that of compression.
Since the pipe is about 80% of the total capex, the composite effect the total O&M per total capital tends to be very small (1.1% in this case).

Within ETS, the pipe O&M is typically $500-600/mile/year
The non-fuel O&M is about $35/HP/year.
If we use these benchmarks we come in lower than their estimates.
Martin Donnelly has confirmed that fuel is not included in this estimate.. it is captured in the toll.

Please let me know if you require further detail.
ben