replacement cost values jim lets get together discuss need pull someone else discussion lets current structure allocating insurance costs provide correct price signals business units real cost holding assets year asked increase velocity capital cash flow return equity corporate charges need provide correct incentives accomplish suggest use cost capital charge model allocate cost assessed allocated least mid year given year waning suggest absorb freed insurance capacity corp level imagine business unit purchased asset mid year would bear allocation insurance cost provide savings asset sold call set time meet regards brian p sure understand mean complete study replacement cost values nothing replaced original message bouillion james l sent tuesday october 09 2001 11 41 redmond brian clayton paul coffey jr jim azore jacquelyn cc whiting greg gruesen karen helton susan koehler anne c kitchen louise subject replacement cost values 2001 annual allocated premium assets property insurance 670 000 based upon ena 2001 reported value approximately 470 000 000 pro rata credit 7 months assuming 5 31 01 sale date would 390 833 underwriters require update values exposures annually renewal gathering values within enron normally requires 30 45 days use values allocation system unless value change significant actual cost insurance outside insurers change complete entire study replacement cost values discuss whether approaching underwriters warranted internally adjust allocation mid year must move premium take away participants program know remainder enron stand still sold bammel tried however suspect approached additional premium result reducing ena allocation operating entities would want submit revised values well would find constant state adjustment view time required neither practical cost effective enron view relatively small numbers doubt corp would entertain proposition either however approach wish original message redmond brian sent tuesday october 09 2001 9 26 clayton paul coffey jr jim azore jacquelyn cc whiting greg gruesen karen helton susan koehler anne c kitchen louise bouillion james l subject replacement cost values paul please let know much 2000 insurance premium allocated approx 700 mm hpl assets charge effectively cost capital allocated groups insured assets remain corp regards brian original message clayton paul sent tuesday october 09 2001 8 43 redmond brian coffey jr jim azore jacquelyn cc whiting greg gruesen karen helton susan koehler anne c kitchen louise bouillion james l subject replacement cost values brian insurance purchased portfolio basis payment underwriters inception coverage values adjusted annually renewal premiums allocated participating entities part budget process insignificant additions deletions assets normally result premiums additions refunds event discontinue premiums north america hlp mechanism allocate premium assets continue insured event significant divestiture underwriters may consider refund however values discussed would likely significant compared enron values whole additionally enron adverse loss experience affects underwriters ability return premium small divestitures renewal 4 01 02 north america revised property values declared underwriters part enron overall values premium allocation adjust depending upon values loss experience compared rest enron regards paul original message redmond brian sent monday october 08 2001 5 31 pm coffey jr jim clayton paul azore jacquelyn cc whiting greg gruesen karen helton susan koehler anne c kitchen louise subject replacement cost values paul please confirm ena bear insurance costs hpl assets second half 2001 balance years going forward case need meet discuss case thanks brian original message coffey jr jim sent monday october 08 2001 5 25 pm clayton paul azore jacquelyn cc redmond brian whiting greg gruesen karen helton susan koehler anne c subject replacement cost values paul addition 188 371 296 property value bammel lease mentioned also value spreadsheet bammel gas storage 267 000 000 requirements insure amounts aep enron thus 2002 plan premium allocations 754 096 bammel gas storage 267 000 000 value 924 433 bammel lease value 188 371 296 needed jackie please remove amounts ena hpl 2002 plan original message clayton paul sent monday october 08 2001 5 10 pm coffey jr jim subject replacement cost values jim discussed purposes 2002 insurance budget delete bammel lease 1409 property values 188 371 296 advise insurers effective past june delete assets attempt receive refund however respects asset divestitures insurers inclined past refund premiums comparatively small divestitures view adverse loss experience however successful receiving credit refund premium discuss karen brian remaining assets regards original message clayton paul sent monday october 08 2001 2 13 pm coffey jr jim subject replacement cost values jim please update accordingly thanks