Tenaska IV Pricing

I think we need to remove some of the demand charges that have been set up
for Williams and Apache. On Williams deal 384237, the demand charge needs to
be removed from Sept. 2000. The demand charge should not have started until
October 2000. Because we did not know at the time what was happening with
this deal, the demand fee was inadvertently paid to Williams for Sept. and we
need to recoup our money. On Apache deal 384247, James thinks we need to
remove the demand charge completely. He says it is not a part of the deal
and Apache is not billing us for it. We also need to talk about the pricing
on both of these deals. Williams and Apache are billing us less than what we
have in Sitara. To be able to keep this desk at zero, Jim Pond does not want
me to use pay the lesser of for the purchases, so we need to address the
price differences. You said you had some contract briefs that supported our
prices. Please fax a copy to me at 713-646-8420 and I will compare them to
what James has.

Just a heads up...We are beginning to work on November 2000, so we will need
a demand fee entered (hopefully next week). I will email you the spreadsheet
after we have received all of the cash and are ready to pay Tenaska IV.

Thanks,
Megan