Re: Letter of Credit from GE for LM6000s

The Intergen LOC should be in CAED I and CAED II's names, issued after
closing on the 18th.

The PSCO deal team should handle the PSCO LOC, which should be in the name of
the PSCO project company, I think, after that deal closes this week. Al
Larsen and Sheila Tweed can address these.

Hope this helps.

Kay

From: Rebecca Walker 01/16/2001 10:48 AM

To: Kay Mann/Corp/Enron@Enron
cc: Fred Mitro/HOU/ECT@ECT

Subject: Letter of Credit from GE for LM6000s

Kay

In the letters of credit from GE for the PSCO and Intergen turbines, it
states that the beneficiary must countersign the three documents within 30
days of 1/10/01. The beneficiary is listed as:

E-Next Generation, L.L.C.
1400 Smith Street
Houston, TX 77002.

Does this mean that the documents need to be signed by someone from ENA and
then forwarded to E-Next Generation or just sent straight to E-Next
Generation? Also, does anything else need to be done to "activate" the
Letter of Credit? It appears from the documents that nothing else would need
to be done unless it were necessary to draw on the account for some reason.

Please advise on who needs to sign the three documents and if any other steps
need to be taken in regards to them.

Thanks,
Rebecca
---------------------- Forwarded by Rebecca Walker/NA/Enron on 01/16/2001
10:32 AM ---------------------------

From: Ben F Jacoby @ ECT 01/12/2001 02:08 PM

Sent by: Ben Jacoby@ECT
To: Fred Mitro/HOU/ECT@ECT, Rebecca Walker/NA/Enron@Enron
cc:

Subject: Letter of Credit from GE for LM6000s

Fred / Rebecca:

Please follow up on this with Kay. Thanks.

Ben
---------------------- Forwarded by Ben Jacoby/HOU/ECT on 01/12/2001 01:01 PM
---------------------------
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