Calpine's revision to Exhibit "C"

Attached [finally] is Calpine's revisions to the Exhibit "C" to the Operating
Agreement at the South Point project. These revisions are intended by
Calpine to be consistent with the discussions here in Houston during our p.m.
meeting on Monday, Oct. 16.

Please review the Exhibit with careful attention to the impact of the revised
operating parameters on TW's linepack (particularly the plant's variable
operations) during the day. If possible, could I see a preliminary
determination of the acceptability of this revised exhibit by week's end?
Thanks.