Re: SMC Confirmation Letter

Dan -- Would you review the pricing changes in the attached doc. Do you have
any suggestions? Does this cover what you and Jeff described? Thanks --
David

Enron Capital & Trade Resources Corp.

From: Dan J Hyvl 07/29/99 12:00 PM

To: David L Fairley/HOU/ECT@ECT
cc:
Subject: Re: SMC Confirmation Letter

David,
As we discussed, the Note provision of the Contract Price section of the
confirm should be deleted. Since the $3MM is to be paid for all events
except for a default by SMC under this confirm or under the confirm for
theexisting FPL base load, it would make the document clearer to restate the
commodity price without the $0.0126 per MMBtu consideration and add a demand
charge provision to cover the payment of such $0.0126 per MMBtu times the DCQ
times the days in the month, excluding any default by Seller regarding the
sale of volumes destined for delivery to FPL.

Enron Capital & Trade Resources Corp.

From: David L Fairley 07/29/99 09:47 AM

To: Dan J Hyvl/HOU/ECT@ECT
cc:
Subject: SMC Confirmation Letter

Dan -- What do you think about these changes? Thanks -- David