RE: Revised GE Conference Call

Being as the below Sections 10.3.2 (e) and (g) were negotiated for a full
Power Island supply with testing requirements very different from a GTG
purchase contract's usual testing requirements, which aslo resulted in the
agreement to expand the definition of the Commissioning Period to include all
of the "Acceptanc Tests", I do not think that the below sections should be
addressed or included in the World Hunger discussions. The preceding was
GE's arguement for their change in the first place. There is a world of
difference between a 30 day commissioning period for a simple cycle unit and
26 weeks for a power island like we have for Arcos. Apples and oranges
applies here.

stephen.swift@ps.ge.com
03/13/2001 04:28 PM

To: Sheila.Tweed@enron.com, Bill.Williams@enron.com, Dean.Russell@enron.com,
Ben.Jacoby@enron.com, Ed.B.Hearn.III@enron.com, Kay.Mann@enron.com,
Roseann.Engeldorf@enron.com, Lisa.Bills@enron.com, Brian.D.Barto@enron.com,
Scott.Dieball@enron.com, pthompson@andrews-kurth.com,
michael.barnas@ps.ge.com, kent.shoemaker@ae.ge.com, John.G.Rigby@enron.com,
Dale.Rasmussen@enron.com, Bob.Carter@enron.com, Stuart.Zisman@enron.com
cc:
Subject: RE: Revised GE Conference Call

Attached is GE's suggestion for inclusion into Section 7.1 of the Contract.
This clause lays out the timing for any changes without impacting ship
dates.
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Also below are the revisions that are under discussion for the Arcos
contract for Sections 10.3.2 (e) and (g). We can use these as a starting
point for these clauses.

10.3.2

(e) Purchaser makes reasonable efforts to provide the necessary time, access
and operating loads for Seller and Purchaser to commission and check out the
Power Island during the Commissioning Period. Seller's time and load
requirement shall not be to the exclusion of the needs of other Station
equipment being commissioned. Purchaser shall coordinate the most
advantageous utilization of time. In the event Purchaser does not provide
reasonable time, access and operating loads during the Commissioning Period,
Seller will be entitled to an appropriate adjustment in the cost of
additional TD of I (to the extent the allotted manweeks per Appendix ____
are exceeded) and adjustment to the Commissioning Period pursuant to Article
____ of this Contract;

(g) In the event Seller fails to use its reasonable efforts to minimize time
to make corrections, adjustments or repairs to the deficiently performing
Unit during the Commissioning Period, Purchaser shall have the right to
reduce the Commissioning Period by the same time period that the Seller has
not used reasonable efforts to minimize time to make corrections,
adjustments or repairs to the deficiently performing Unit;

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Talk to y'all tomorrow,

Steve Swift

- Section 7-1.doc