Standardized Services Agreement For Unit-Contingent Sales Outside

Cc: christian.yoder@enron.com, tracy.ngo@enron.com, jan.king@enron.com,
elizabeth.sager@enron.com
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Marketers:

Christian and I are pleased to announce that we have developed a short-form
standardized agreement for the Services Desk to use with its customers based
outside of California that are producing unit-contingent energy, e.g., Geneva
Steel, Potlatch, and Morrow Power.

1. You can use this short, pre-approved agreement for new generator
customers for whom you intend to market unit-contingent energy on a daily
basis. If you want to buy firm energy from your customer, or do a term deal,
then you will need to upgrade to an EEI Master Agreement or make other
arrangements.

2. You can send this agreement out to customers by simply asking Jan King
(nicely) to change the names in the agreement to conform to your prospective
customer, and then sending out the updated version. As a matter of courtesy,
copy Christian, Tracy, and me on the e-mail you send to the customer.

3. Tracy says that as long as these agreements are for daily purchases of
unit-contingent energy outside of California, she will not require credit
information from the customer. However, it is important that Tracy be kept
in the loop on these deals.

4. By clarifying the credit standards and providing an off-the-shelf
agreement that you can send over, get signed, and then schedule power for the
next day with, I believe we will be able to win more business by reducing the
internal review time for this low-risk, high-margin business.

5. We invite your suggestions to improve this agreement. Jan will always
have the most recent version.

6. Our next project is to develop a similar agreement for California
generators.

Regards,

Steve