LM6000 contract changes for added equipment

Thought you might be interested.

---------------------- Forwarded by Kay Mann/Corp/Enron on 07/06/2000 06:54
PM ---------------------------

lee.johnson@ss.ps.ge.com on 07/06/2000 09:20:43 AM
To: ben.jacoby@enron.com
cc: kathleen.clark@enron.com, chris.booth@enron.com, kay.mann@enron.com,
david.davis@ss.ps.ge.com

Subject: LM6000 contract changes for added equipment

Ben,

Sorry our schedules aren't lining up too well. I look forward to finally
getting together on July 18th. Hope all is proceeding well with securing
sites and permits for the various LM6000 projects.

We continue to support E&CC and NEPCO with pre-engineered Balance of Plant
equipment offerings that help drive their EPC costs and cycle times down.
Some these items were elective options we had already build into the
Equipment contract. Other items are unique to project design we've gone
back and forth, fine tuning our quote to within the NEPCO EPC budget.

My question is will these items be purchased direct by NEPCO, or will we add
onto the existing contract? Some of this equipment has lengthy leadtimes to
consider and we want to make sure this equipment doesn't delay your in
service date.
Most of the activity has been for the Austin Energy job, but other sites
seeking June 1, 2001 in service date will need the same type of equipment.

One other piece of housekeeping I wanted to attend to yesterday was an
outstanding change order that dates back to March. At that time, Mike
Miller and Chris Booth ordered some of the optional equipment mentioned
above. The items are outlined in the attached draft Change Order Number 2.
Actually, it should have been Change Order Number 1 or built into the Base
contract (but we all chose not to delay the contract as your team can
verify.).

We've ordered the chillers, exhaust stacks, and incorporated the dual fuel
option on units #7&8 (these were originally planned for the Electri Cities
deal) and all work is proceeding on or ahead of schedule. Now, I believe
these dual fuel units are planned for a Florida site, to go with the other 4
Units(#17-20).

If you have any questions, please do not hesitate to call. If not, please
authorize the processing of Change Order Number 2 with Kathy Clark or Kay
Mann.

In the meantime, I look forward to when we can meet. If you have any time
today or tomorrow, I could rearrange my schedule to accodate yours.

Best Regards,

Lee Johnson <<ChangeOrder#2.doc<<

- ChangeOrder#2.doc