Failure to deliver power

Sean,

This is just to confirm our conversation over the phone on 12/04/01 at about
9:45 AM Pacific Time.
You stated that Enron will not be able to deliver the 10 MW HLH energy MID C
product to Grays Harbor PUD starting at HE 7 for 12/05/01.

Pursuant to Section 21.3 of the WSPP Agreement we will take steps to
mitigate damages for failure to deliver power.

Please reply with your written confirmation.

Thanks,

< Kien Hoang
< Power Scheduler
< Power Resource Managers, LLP
< Phone 425-462-9517
< Fax 425-468-1792
< http://www.prmllp.com
<
<