IN: Good Morning. WTC voicemail is down. The link between WTC and Qwest is not working. PGE has reported the problem at 5:50am and we are waiting to hear what's happening. Quick reminder on what can occur when voicemail goes down and what your might experience when the link comes back up: 1) The message waiting light won't go off after you retrieve your messages. If this occurs just have the person lift the handset, hear dial tone and dial, 113. This will clear the message waiting light. 2) The message waiting light is not on and you could have a message. Have employees check their mailbox just in case they are expecting critical messages. The next voicemail will activate the message waiting light. Please let me know if you have questions or concerns.

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OUT: WTC Voicemail

IN: Each of you have a seperate spreadsheet in the attacked Excel workbook. Please review the company, facilities and cost. The cost focuses on only three "cost elements", these cost elements represent approximately 90% of our budget, excluding salaries. Please input individual facility cost for each of the cost elements on your attached workbook. The cost elements are: The main budget spreadsheet is protected, because this is the budget that was approved. By rolling up all the facility cost , Bill will be able to determine if we are able to reduce our O&M budget any for 2002. I know there will be queswtins, please call me at 806-886-8104. Thnaks! !

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OUT: 2002 O&M Budget

IN: We had our daily phone call with NW. I don't know that we really have significant points of disagreement. They understand that we are working some accounting issues, and they have a general idea of what we want to do. I suggested that we come up with the work arounds with our accountants, and I will think about it this weekend. I have a couple of ideas but I really want to mull it over. They look forward to receiving the turbine contract. Chris, could you forward the draft change orders with it? One point they raised is that they want the ability (with GE consent) to have us refund the future payment due to GE (less 7% for time value of money), retaining the payment obligation. All of this is post closing. They are putting up a full blown parent guaranty to GE for the turbine contract, and since the payment should only be around $4mm, that would probably be acceptable to GE. Keffer et al will issue revised documents tonight. There are no calls scheduled tomorrow or this weekend, giving everyone "quiet time" to review the contract. Other than the accting issues, this should be about it. We deferred discussions about an extension until Monday. Kay

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OUT: NW

IN: Brian, good memo - I think you mean't Energy Capital Resources not Enron Capital Resources in your memo. I would distribute widely in the management ranks. Regards

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OUT:
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