Re: Fountain Valley

I will be happy to review change order #5, and present to GE for their review
and approval. First, it needs to be prepared by someone involved with the
project, and Finance needs to be notified that additional funding will be
required, if they don't know already. As I mentioned in my email, there
needs to be a definitive decision made as to whether the change order should
be funded out of WestLB (prior to December 15) or will be funded through
TurboPark.

I faxed change order #2 to Al so that he has the form. If this will be
funded through WestLB, the current contract value is $352,289,400.

Here is the electronic form:

Kay

Jeff G Slaughter@ECT
12/01/2000 03:08 PM
To: Kay Mann/Corp/Enron@ENRON
cc: Alan Larsen/PDX/ECT@ECT, Ben Jacoby/HOU/ECT@ECT

Subject: Re: Fountain Valley

Kay,

Just wanted to let you know if Al has not already done so, the stacks we were
referencing were for an additional 2 stacks for a total of 6, CO no 2, that
we are aware of, is for only four.

Please let us know if you need anything else to get the additional two
stacks ordered.

Thanks for your support!

Jeff

Kay Mann@ENRON
11/30/2000 06:03 AM
To: Alan Larsen/PDX/ECT@ECT
cc: Jeff G Slaughter/PDX/ECT@ECT, Ben Jacoby/HOU/ECT@ECT
Subject: Re: Fountain Valley

Wow, I didn't know I could control anything!

Change order 2 was initialled by Dale and signed by Chris on November 2, re
stack extensions. I also have a hand marked up change order form from Ed
Danhaus referring to brush power system stabilizers. Is this what you are
looking for?

The procedure has been that the project team/attorney prepares the draft of
the change order (or has EECC do it), I give it a sanity check and arrange
for signature from GE.

The issue now would be whether this change order should be processed in the
next week, or be a change to the break out contract. I do not believe the
cost has been included in the payment schedule.

Please give me a call if you would like to discuss this.

Thanks,

Kay

Alan Larsen@ECT
11/29/2000 06:41 PM
To: Kay Mann/Corp/Enron@Enron
cc: Jeff G Slaughter/PDX/ECT@ECT

Subject: Fountain Valley

Kay--In forwarding to Jeff Slaughter, who is on the commercial team for the
Fountain Valley (PSCo) project, your note regarding transportation of large
equipment items, Jeff mentioned that in your role with regard to GE change
orders, you apparently have control over a change order for this project for
2 additional stacks. Jeff asked if I could use my good offices, such as they
are, to ask you to provide a change order, I believe to the attention of Ed
Dannhaus at EE&CC. Thanks for your assistance.
Al Larsen