CONFIDENTIAL
NNG's pretax settlement number equates to 15% if that is helpful.  Mary Kay

 -----Original Message-----
From: 	Saunders, James  
Sent:	Friday, October 26, 2001 9:41 AM
To:	Howard, Kevin A.
Cc:	Miller, Mary Kay; Thompson, Debra; Kissner, Tim; Hayslett, Rod; Chandler, Bob
Subject:	RE: TW & NNG: Rate Base, Capitalization, Overall Return and Return on Equity - CONFIDENTIAL
Sensitivity:	Confidential

CONFIDENTIAL
Kevin, for your use, note, this is confidential information from rate case settlement negotiations.

 -----Original Message-----
From: 	Kissner, Tim  
Sent:	Friday, October 26, 2001 9:27 AM
To:	Saunders, James
Cc:	Miller, Mary Kay; Thompson, Debra
Subject:	TW & NNG: Rate Base, Capitalization, Overall Return and Return on Equity - CONFIDENTIAL

Below are the Rate Base, Capitalization, Overall Return and Return on Equity for NNG and TW, in response to query No. 8.  Note, that for TW the only "official" numbers in the RP93-34 Settlement were $68,122,500 for pre-tax return, 14.65% pre-tax return percent and 11.50% return on equity percent. For Northern, the Rate Base and Pre-tax return were stipulated in Article 1 of the RP98-203 Settlement.  The Capitalization Structure and Return on Equity were provided in the "Workpapers" attached to the Settlement.


						NNG					TW

Rate Base				$$1,064,104,088			$465,000,000

Capitalization Structure		Debt: 41.57%; Equity: 58.43%		Debt: 42.00%; Equity: 58.00%

Overall Return					10.35%					10.29%

Return on Equity				12.27%					11.50%