Don,
 
I would like to see the following notations added to the Gas Logistics CAPEX page to fully reflect the discussion and agreement.
 
With respect to the specific project listed:
 
1.  Gas Logistics is authorized to proceed with 4 Discretionary projects, including the three gas control network/security upgrades that you have listed and also the blanket desktop replacement project ($19,000) (omitted from your listing).  No further written proposal is required by Dynegy and restated capital budget will constitute the written authorization to proceed with these projects.
 
 
With respect to Footnote 2.  I believe the description below more precisely reflects our discussion:
 
2.  Dynegy requested and Enron agreed that NNG will not be charged any additional amounts for the Base Contract System through June 30, 2002, UNLESS Dynegy authorizes Enron to begin work on the customization and implementation of the NNG contract system prior to June 30, 2002.   To the extent that Enron is not directed to begin work on the customization of the base contract system for NNG prior to June 30, 2002, it is understood that the implementation date of the NNG contract system will be impacted.
 
3.  Dynegy requested and Enron agreed that NNG will not be charged any additional amounts for the Base Rates and Revenue System through June 30, 2002.  
 
 
An additional footnote should be added to the page.
 
4.    The 2002 Capital Budget does not currently authorize the system modifications that will be necessary to implement NNG's Order 637 filing/revised filing provisions or GISB changes.   Dynegy and Enron will need to mutually agree whether to commence work on these modifications to meet filing commitments or expected FERC requirements.  
 
 
 -----Original Message-----
From: Don.Vignaroli@dynegy.com [mailto:Don.Vignaroli@dynegy.com]
Sent: Thursday, February 21, 2002 5:23 PM
To: Len.Hesseltine@dynegy.com; John.O'Shea@dynegy.com; Dan.Dienstbier@dynegy.com; Carolyn.J.Stone@dynegy.com; Mary.Kay.Miller@dynegy.com; Dave.Neubauer@dynegy.com; Mike.Mcgowan@dynegy.com; Steve.Gilbert@dynegy.com; Keith.Petersen@dynegy.com; Lowry, Phil; Rice, Randy; Pribble, Dan; Nelson, Mike; Brassfield, Morris; Corman, Shelley; Hotte, Steve; Kleb, Steve; Concklin, Elaine
Subject: Restated 2002 CAPEX Plan




Attached for your review and information is a copy of the Restated 2002 Capital Budget (25 page report) which reflects the planned CAPEX recently agreed to between NNG/Dynegy and Enron.
 
Feel free to contact Mike McGowan (402.398.7110) or Don Vignaroli (402.398.7139) with questions or comments.