Message-ID: <5356609.1075842908378.JavaMail.evans@thyme>
Date: Fri, 6 Apr 2001 08:23:00 -0700 (PDT)
From: gerald.nemec@enron.com
To: ozzie.pagan@enron.com
Subject: CP&L Electric Service Agreements
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Ozzie,  Steve Van Hooser forwarded two agreement for electric service from 
CP&L for the Elizabethtown and the Lumbertown cogen facilities for my 
review.  I have reviewed the documents and they are standard tariff type 
service agreements.  There are two items to which I would like to draw your 
attention.  These deals look to have a 10 year term since they are being 
served from Transmission Service.  

1.  If Customer terminate earlier, there would be a termination payment equal 
to the loss in salvage value of the facilities used to serve the Customer.  
Not sure what this value is, but might be significant, depending on what 
facilities CP&L would install to serve these plants.

2.  There is a minimum bill each month that Customer would have to pay, even 
if there was no usage of power by Customer.

If you are OK with these issues, I will initial the agreements and forward 
these  to you for signature. 

Please contact me at x33512 if you would like to discuss.