Re: JEA Proposal

Dan, All your changes looked good, thanks. I incorporated all of them into
the document. The purpose of the liquidated damages section is to compensate
ENA if JEA decides to go with someone else during the term of the option (as
you anticipated). Because the language in the proposal didn't comunicate
that, I have added a few sentences. The purpose is to treat a JEA breach as
an "Early Termination" as detailed in our Enfolio Agreement. Please review
the addition and let me know what you think.

Thanks, - Mike

Enron North America Corp.

From: Dan J Hyvl 12/07/99 07:58 AM

To: Mike Curry/HOU/ECT@ECT
cc:
Subject: Re: JEA Proposal

Mike, Please review the changes noted in the attached. Also, what is the
purpose of the Liquidated Damages provision. What damages do you anticipate
if they don't do a deal with you and go with someone else either during the
term of the option or shortly thereafter? Please respond.

Mike Curry
12/03/99 04:52 PM
To: Dan J Hyvl/HOU/ECT@ECT
cc:
Subject: JEA Proposal

Dan, Could you please review the attached proposal to Jacksonville Electric
Authority. Enron is buying (for $0) the right to put a long term gas supply
deal to JEA. JEA has verbally agreed to the concept. If they are fine with
these commercial terms the next step will be to turn in into an executable
contract.

Thanks for your assistance, - Mike