Re: ABB Transformers - Facility Agreement

Mike:

Attached is a form of acknowledgement letter that Coral would like ABB to
sign at such time as the Facility Agreement is signed. The Facility Agreement
is the "break-out contract" for the single transformer (LNL 9517-1) being
assigned to CA Energy Development II, L.L.C., in which Enron is presently
selling 80% of the member interests to Coral (the parent of Tejas Energy NS
Holdings, L.L.C.). The remaining 20% will be sold to them after commercial
operations of their plant. Please have this acknowledgement letter reviewed
as soon as possible. I assume there should not be any issue as the total
transformer contract will be paid in full (except for the retainage) prior to
the execution of the Facility Agreement.

Lastly, it would be very helpful if we could somehow expedite the completion
of the Facility Agreement. I believe Dave Onuscheck has the form proposed by
Kay, and that we are awaiting his comments.

Thanks much for your help on this.

Regards,

Ben

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