Re: Letter of Credit from GE for LM6000s

I would think that the LOC's for #s 2 and 3 should be for CA Energy
Development I and CA Energy Development II, since we will close on those
transfers next week.

ckm

From: Catherine Clark/ENRON@enronXgate on 01/11/2001 07:24 PM
To: Ben Jacoby/HOU/ECT@ECT, Sheila Tweed/HOU/ECT@ECT, Kay
Mann/Corp/Enron@Enron
cc: Roseann Engeldorf/Corp/Enron@ENRON, Lisa Bills/ENRON@enronXgate

Subject: Letter of Credit from GE for LM6000s

The accounting group received a set of 3 faxes from GE with information on
Letters of Credit issued by GE with E-Next Generation as the beneficiary.
These documents need to be countersigned and I don't know if anything else is
required to "activate" the LOCs. I'll fax copies to you all.
The documents are:
LOC 1: $4,289,200 (for the 6 Fountain Valley turbines, since the amount is
5% of the total turbine cost)
LOC 2: $717,600 (for Intergen turbine 1)
LOC 3: $717,600 (for Intergen turbine 2)

This is in accordance with the LM6000 purchase agreement (Section 6.1.3)
where GE must provide Retention Letters of Credit (the Retention Amount is 5%
of the purchase price) when E-Next Generation pays GE the final progress
payment (this final payment is scheduled to go out on 1/16/01).

The LOC docs need to be counter-signed within 30 days and then forwarded to
the E-Next Generation, since they are the beneficiary.

-Catherine
x3-9943