Gas supply for VEPCO project

Hi Jeff,

Ozzie Pagan's team is working on a project for VEPCO. The power plant will
be located in Edgecombe County, North Carolina. I've been told that getting
gas for the plant is a significant issue due to local gas supply conditions.
One alternative has been to buy gas from the City of Rocky Mount, which has a
take or pay contract with the local supplier, and is not using all of their
gas, especially in the summer.

We have developed a preliminary draft of the LOI, which I am attaching for
your review. I would appreciate the opportunity to discuss it with you to
get your input, etc. Of particular concern is that Rocky Mount wants ENA to
deal exclusively with them during the term of the LOI (this isn't reflected
in the draft).

Thanks,

Kay