VEPCO Information Request

Just to catch you up a bit...
---------------------- Forwarded by Kay Mann/Corp/Enron on 08/21/2000 02:25
PM ---------------------------

Heather Kroll@ECT
08/21/2000 10:32 AM
To: Jeffrey Keenan/HOU/ECT@ECT, John Moore/Corp/Enron@Enron
cc: Kay Mann/Corp/Enron@Enron, Ozzie Pagan/HOU/ECT@ECT

Subject: VEPCO Information Request

To all:

In our last meeting with VEPCO we presented a structure that would

1). Allow Enron to sell the Edgecombe plant to VEPCO at a fixed price at the
end of the term of the PPA (around $325/kW)
2). Allow VEPCO to buy the plant from us at a fixed price at the end of the
term of the PPA (around $425/kW).

This structure caps our downside risk into a quantifiable number (it also
limits our upside but we're willing to give that up to protect against a big
negative hit).

In order to evaluate this structure, VEPCO has asked for some specific plant
information. We have most of this info in various forms and I would like
your help pulling it together.

1). Full plant description (equipment, design, drawings)
2). Construction costs (have we gotten updated NEPCO numbers for this
project?)
3). Permits (timeline for obtaining, run hours allowed on both natural gas
and fuel oil, emission limits)
4). Fuel contracts (in process).

Please let me know what you have and an estimate on timing to get the rest of
the request.

If we can negotiate this structure with VEPCO, we will make a significant
jump in getting the internal okay to move forward.

Thanks for your help,

Heather