---------------------- Forwarded by Lorraine Lindberg/ET&S/Enron on 02/06/2001 03:28 PM ---------------------------


James Centilli
02/06/2001 03:23 PM
To:	Steven Harris/ET&S/Enron@ENRON, Rod Hayslett/FGT/Enron@ENRON, Lorraine Lindberg/ET&S/Enron@ENRON, Denis Tu/FGT/Enron@ENRON, David Rosenberg/FGT/Enron@ENRON, Dave Waymire/ET&S/Enron, Tracy Geaccone/GPGFIN/Enron@ENRON, Tim Kissner/ET&S/Enron@ENRON, Patrick Brennan/ET&S/Enron@ENRON, Keith Petersen/ET&S/Enron@ENRON, Arnold L Eisenstein/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Ben Asante/ET&S/Enron@ENRON, Terry Galassini/ET&S/Enron@ENRON, John R Keller/OTS/Enron@Enron
cc:	 

Subject:	TW Expansion OH Rate

Attached are the revised economics for the TW Expansion based on the revised cost per the email and splitting the transport rate between a demand and commodity rate based on a 85% load factor.  The project of choice per todays meeting is the 150 expansion.

Thanks,
James
 




 
---------------------- Forwarded by James Centilli/ET&S/Enron on 02/06/2001 03:14 PM ---------------------------
From:	Arnold L Eisenstein@ENRON_DEVELOPMENT on 02/06/2001 09:50 AM
To:	James Centilli/ET&S/Enron@ENRON, Earl Chanley/ET&S/Enron@ENRON
cc:	James Saunders/FGT/Enron@ENRON, Gary Zahn/ET&S/Enron@ENRON, Jerry D Martin/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT 

Subject:	TW Expansion OH Rate

Based on conversations between Earl Chanley and Jim Saunders, the Overhead rates for major projects to be applied to the TW expansion estimates are to be 2% of the capital estimate in lieu of the 11% in the current estimates or 15% in the current procedure for 2001.

This in mind, the NEW estimate totals are:

Option 1

Utilize GT Compressors iso rated at 38,000 hp to supplant the existing TW plants 1 thru 4.
Rolls Royce RB 211 or GE LM 2500

Original Cost per unit $24.9 MM including $2.1 MM for overhead allowance

New Cost per unit is $23.3 including 0.5 MM for overhead allowance

	TOTAL FOR 4 STATIONS IS 	$93.3 MM




Option 2

Utilize GT Compressors iso rated at 15,000 hp to augment the existing TW hp at stations 1 thru 4
Solar Mars T100 or GE/NP PGT 10B

Original Cost per unit  $15.2  MM including $1.27 MM for overhead allowance

New Cost per unit is $14.25 including 0.3 MM for overhead allowance

EXISTING UNIT OVERHAUL COSTS FOR EXPANSION		$2.0 MM PER STATION

EMISSIONS RETROFIT						$0.6 MM PER STATION			

	TOTAL FOR 4 STATIONS IS 	$67.4 MM



PLEASE CONFIRM THAT THESE NUMBERS ARE CORRECT AND SHOULD BE USED FOR THIS PROJECT and we will then change the FERC schedule k to be filed