Re: Call w/ John Schroeder

That sounds like the LDs on the air filter are accruing. Please confirm with
Kay.

Enron North America Corp.

From: Chris Booth @ ENRON 04/09/2001 09:05 AM

To: Ben F Jacoby/HOU/ECT@ECT, Kay Mann/Corp/Enron@Enron
cc:
Subject: Re: Call w/ John Schroeder

Ben,

The latest version of the change order for storage to Unit 1 specifically
states:

"Subject to Section 2.4 above, Seller shall retain risk of damage and loss
under the Agreement and shall be responsible for the care, maintenance
custody and control of Unit 1 while in storage. For the purpose of
determination of Warranty obligations under the Agreement, the delivery of
the last Major Component of Unit 1 to Seller's storage facility in undamaged
condition shall be deemed completion of Unit 1 delivery to the Delivery
Point. Such Unit 1 delivery date shall be used in the interpretation of
Section 14.1.1 of the Agreement."

Chris

Ben F Jacoby@ECT
04/06/2001 02:39 PM
Sent by: Ben Jacoby@ECT
To: Chris Booth/NA/Enron@Enron, Kay Mann/Corp/Enron@Enron
cc:

Subject: Call w/ John Schroeder

Chris / Kay:

I talked with John today and told him about Northwestern. I basically said we
were close to agreement on doing a project in Montana for the first unit,
with the destination of the second undetermined at this time. I asked him not
to disclose this to the rest of GE until our deal is signed. He was very
positive on this.

I also mentioned the air filter, and he stated that he thought the LD clock
stopped when the unit was put into storage. I suggested that both GE and
Enron look into this to make sure we're in agreement before we bring a
partner in. He appreciated the suggestion and told me Jeff Darst would get
back to me.

Chris - in the meantime, could you please review the contract on this point?

Thanks.

Ben