Adam / Stan,

I had a follow-up meeting with Gary Fitch regarding Enron Wind's aviation.  Gray indicated the following:

Aviation budget number look comparable to operator standards (approx. $1,900 / hour, 600 hour estimate)
The plane has a market value of $1.8 - $2.0 million and a book value of $2.2 million
Turbo prop charters for trips to Tehachapi would run in excess of $1,100 / hour and may be limited as there are only two qualified operators
The Cessna is the only jet suitable for use to Tehachapi based on runway length and altitude
Gary will make a site visit before the end of the year

Assuming that of the budgeted 600 hours of operation, only 400 hours would require charter, the cost of charter would approach $0.5 million of the total budget of $1.2 million.  This plus the flexibility of using the plan on longer hauls (e.g., to Houston) make it economically justified.

My recommendation is that based on the current situation, we retain the aircraft.

Tod