3. Differences in Expense Forecasts

Following are discussions of the issues related to expense forecasts, as identified in the Joint Comparison Exhibit. Differences relate to the Generation (or Production), Transmission and Distribution (T&D), Customer Accounts, Customer Service & Information (CSI), and Administrative & General (A&G) categories. Unless otherwise indicated, expenses discussed are in base year 2003 dollars. The adopted forecasts are incorporated in the development of the adopted expenses by FERC account, as detailed in Appendix C. Appendix C also details the escalation from base year 2003 dollars to test year 2006 nominal dollars.