Proposed WSPP Firm Power Definition

---------------------- Forwarded by Elizabeth Sager/HOU/ECT on 10/04/99 10:49
AM ---------------------------

fmdutton@aep.com on 09/29/99 04:29:47 PM
To: Elizabeth Sager/HOU/ECT@ECT, drusso@reliantenergy.com,
wahoefling@duke-energy.com
cc:
Subject: Proposed WSPP Firm Power Definition

The WSPP operating/contract drafting committee is meeting on October 7 in
Phoenix to discuss the reserve requirements for firm sales. I would
appreciate
your review and comments on the following as a definition for Firm Power for
use
in the WSPP Agreement in lieu of the current language. This language would be
inserted in Schedule C and replace Sections C-3.3 and C-3.6:

Firm Power shall be interrupted only if the interruption is: (a) due to
an
Uncontrollable Force as provided in Section 10 of this Agreement and
power
is not available at the Delivery Point; or, (b) where applicable, to meet
Seller's public utility or statutory obligations to its customers. If
Seller exercises its right to interrupt to meet its public utility or
statutory obligations, Seller shall be responsible for payment of damages
for failure to deliver Firm Power as provided in Section 21.3 of this
Agreement or in any Confirmation Agreement. If Firm Power is interrupted
for any reason other than as provided in subpart (a) above, the
non-performing party shall be obligated to pay damages under this
Agreement
or Confirmation Agreement.