After reviewing the budget yesterday, we noticed that goodwill was still being amortized in 2002.  We need to take that out of your numbers.  Jim and Kiri thought it was approximately $14 million.  Thus, PGG should have an IBIT of $270.  Please revise file and send back to me and copy Steve Schwarzbach thanks.

Tracy

-----Original Message-----
From: OUTAMA, DARRINGTON 
Sent: Wednesday, October 10, 2001 9:11 PM
To: Geaccone, Tracy
Cc: Winowitch, Carolyn; Giles, Valerie; Barnes, Jim
Subject: 2 nd version of Plan...


Hi Tracy,

Please see attached for the Plan that Stan Horton will be looking at tomorrow
morning.  This version includes Intercompany interest expense that was not
previously budgeted.  It also has a more detail break-out of capital
expenditures.

For the O&M detail pages, we will not be able to give you the same break-out
for our cost as you have requested.  Our GL is build on FERC accounts and is
not condusive to SAP type sorting.

Also, note that all O&M are at this point still straight lined for the year. 
The quarterly shaping of earnings will not be available until mid to late
November.  There will be significant swing between quarters from these results
to the final one.

Let me know if you have any questions.