QuickLinks -- Click here to rapidly navigate through this document

Exhibit 10.9

EDISON MISSION ENERGY
BV SALE INCENTIVE PLAN—UK

        1.    Establishment of the Plan.    Edison Mission Energy, a Delaware
corporation (the "Company"), hereby establishes this BV Sale Incentive Plan—UK
(the "Plan"), effective as of February 19, 2004 (the "Effective Date"), for the
benefit of certain key employees of the Company and certain of its subsidiaries
and affiliates.

        2.    Purpose.    The Board of Directors (the "Board") of the Company
has determined that it is in the best interest of the Company and its
shareholder to pursue the possibility of accomplishing one or more transactions
(together, as defined below, the "Covered Transaction") which would result in a
sale or other disposition of all or substantially all of MEC International BV
(the "BV"). In that connection, the Board believes that it is in the best
interests of the Company and its shareholder that the Participants (as defined
below), who are among the key employees of the Company and certain of its
Subsidiaries and affiliates, remain in their Employer's employ during the period
in which the Board is pursuing the Covered Transaction, be provided with
additional incentives to develop the most desirable alternatives for the Company
and its shareholder and be eligible to receive certain bonuses for their efforts
in developing such transaction and putting the Company in a position where its
shareholder may receive the benefits of a disposition of BV. Therefore, in order
to accomplish these objectives, the Board has caused the Company to establish
this Plan. For purposes of the Plan, the assets of the BV will be deemed to
include the interest of Mission Energy Wales (U.S.) ("MEW U.S.") in the Mission
Hydro Ltd. Partnership (UK) ("Mission Hydro").

        3.    Defined Terms.    For purposes of the Plan, the following terms
(in addition to the defined terms set forth above) shall have the meanings
indicated:

        (a)   "ANSP" means the aggregate cash and non-cash consideration
received by BV or the shareholders or subsidiaries of the BV, as the case may
be, as seller(s) in the Covered Transaction, excluding for these purposes any
obligations of the BV or its subsidiaries that are assumed by, on behalf of, or
for the purchaser, and subject to the following:

        (i)    ANSP shall include the following, if and when paid to BV or its
shareholders or subsidiaries, as the case may be, as sellers in the Covered
Transaction: (A) any and all deferred installments of the sale price, (B) any
portion of the sale price held in escrow subsequent to the Closing Date if and
to the extent actually released from escrow, and (C) any consideration paid by
the Purchaser after the Closing Date upon the occurrence of any specified
contingencies or the satisfaction of any specified performance objectives;

        (ii)   ANSP shall be determined without giving effect to the payments
under this Plan;

        (iii)  ANSP shall be net of, or otherwise reduced by, the following:
(A) any severance and retention payments associated with the Covered
Transaction; (B) any indebtedness or other liability of BV or one of its
subsidiaries related to or arising in connection with the transferred assets or
operations that is retained or discharged by the Company or its affiliates,
including, without limitation, contributions made to project or related entities
in connection with the sale transaction; (C) any U.S., foreign and local income,
transfer and other taxes, assessments and governmental levies realized,
incurred, attributed to or related in any manner to the sale of the BV and its
subsidiaries, including taxes imposed on the distribution of proceeds to or by
the BV and its subsidiaries and tax impacts related to the liquidation or
restructuring of the interest of MEW US in the Mission Hydro in connection with
the sale; and (D) transaction costs incurred and paid or payable by the Company
or any of its Subsidiaries, parents or other affiliates including, without
limitation (1) commitment, broker, advisory, investment banking, appraisal,
fairness opinion, financing and underwriting fees, commissions and discounts,
(2) recording, insurance, filing, legal, travel, printing costs and other
similar fees, costs and expenses, (3) claims arising or paid in connection with
the sale, including costs of defense,

--------------------------------------------------------------------------------

(4) costs of consents, waivers or settlements to facilitate sale, and (5) any
other direct expenses associated with the sale; and

        (iv)  ANSP shall include the proceeds of a sale of interests in or
assets of BV only if such sale is specifically approved in advance of the
Closing Date of the Covered Transaction by the Board. If substantially all (but
not the entirety) of BV is sold, any sale of a remaining component that occurs
more than six (6) months after the Closing Date of the Covered Transaction will
not, unless otherwise provided by the Board at the time of the sale, be included
in ANSP. ANSP shall be adjusted to give effect to any such sale within such
six-month period.

        (b)   "Base Salary" means the Participant's base salary of record for
benefit purposes paid to a Participant by the Company and/or one or more
Employers (whether or not deferred), but excludes (i) incentive, retention,
signing or other bonus compensation, (ii) severance, and (iii) pension
contributions any other form of compensation or benefit.

        (c)   "Base Salary Multiplier" means the factor by which a Participant's
Base Salary shall be multiplied to determine the amount of the Participant's
Sale Bonus, which factor may vary between particular Participants and may be
determined based on the aggregate ANSP received in connection with the Covered
Transaction.

        (d)   "Beneficiary" means the individual or entity determined under
Section 11(d) of the Plan.

        (e)   "Board" means the Board of Directors of the Company.

        (f)    "Cause" means the occurrence of any one or more of the following:

        (i)    The Participant's conviction for, or pleading guilty to,
committing an act of fraud, embezzlement, theft, or other act constituting a
criminal act for which a custodial sentence may be imposed;

        (ii)   A significant adverse change in the Participant's performance of
or any material breach or non-observance of his or her duties (which duties
shall include, but not be limited to, the Participant's customary duties or
express or implied obligations arising from his or her employment as well as any
reasonable duties that may be assigned to him or her to help effect the BV
Sale), including but not limited to a failure to comply with the Company's
policies and instructions regarding the BV Sale and the confidentiality of
certain information related thereto and including any refusal to comply with any
reasonable and lawful instructions given by the Employer; or

        (iii)  The willful engaging by the Participant in misconduct that:
(A) if the event giving rise to the termination of the Participant's employment
occurs before the sale of the Participant's Employer or while the Participant is
otherwise employed by an Employer, is in violation of the Company's and/or the
Participant's Employer's policies and practices applicable to the Participant
from time to time; or (B) if the event giving rise to the termination of the
Participant's employment occurs after the sale of the Participant's Employer
when the Participant is no longer employed by an Employer, would have resulted
in the termination of the Participant's employment by the Company or the
Participant's Employer under the Company's and/or the Participant's Employer's
policies and practices applicable to the Participant in effect immediately prior
to such sale. However, no act or failure to act, on the Participant's part,
shall be considered "willful" unless done, or omitted to be done, by the
Participant not in good faith and without reasonable belief that his or her
action or omission was in the best interest of the Company and his or her
Employer.

2

--------------------------------------------------------------------------------

        (g)   "Closing Date" means the date of the closing of a Covered
Transaction or Covered Sale, as the case may be, as determined in accordance
with the definitive agreements entered into to effect such transaction.

        (h)   "Covered Sale" means a sale of the Participant's Employer in a
transaction that results in the Participant becoming employed by the Purchaser
thereof or an affiliate of such Purchaser that is not an Employer.

        (i)    "Covered Transaction" means one or more transactions outside of
the ordinary course that amount, in the aggregate, to a sale of all or
substantially all of the assets or interests of BV, provided that a transaction
included in the Covered Transaction must be specifically approved by the Board
in advance of the consummation of the Covered Transaction. For purposes of this
definition, "substantially all" shall mean stock or interests in and assets of
BV (including stock and interests in Subsidiaries) (including EcoElectrica)
representing or generating at least 90% of BV's 2003 revenue base as set forth
in the attached Exhibit A; provided that the Board may, in its discretion, lower
the 90% threshold in light of all circumstances existing at the time of the sale
and the degree to which the Company has exited the international market.

        (j)    "Employer" means the Company or any Subsidiary or affiliated
business of the Company that employs the Participant.

        (k)   "Good Reason" means, without the Participant's express written
consent, a material reduction by the Participant's Employer of the aggregate
value of the compensation (including current compensation and long-term
incentive opportunities) and benefits paid and provided, as the case may be to
the Participant; provided, however, that in no event shall the occurrence of a
Covered Sale or Covered Transaction, in and of itself, constitute a reduction of
compensation or long-term incentive award opportunities and further provided
that the Participant's Employer shall not have remedied the issue giving rise to
the Good Reason within 30 days of it being brought to the Employer's attention
by the Participant. For the avoidance of doubt, where the Purchaser provides a
benefit package which is no less favourable in aggregate the fact that long term
incentive opportunities and benefits previously provided by the Employer have
ceased to be provided shall not constitute a Good Reason.

        (l)    "Participant" or "Participants" means any person who is a
participant in this Plan as determined in accordance with Article 5.

        (m)  "Purchaser" means any person or entity or affiliate thereof that
has purchased all or any part of the assets or interests of BV outside the
ordinary course in a transaction that is included in the Covered Transaction.

        (n)   "Sale Bonus" means an unfunded right to receive a payment under
this Plan.

        (o)   "Sale Bonus Payment Scheme" means the rules for the manner and
timing of the payment of a Sale Bonus set forth in Section 8.

        (p)   "Subsidiary" means any corporation or other entity a majority of
whose outstanding voting stock or voting power is beneficially owned directly or
indirectly by the Company.

        (q)   "Term of the Plan" means the period of time beginning on the
Effective Date and ending on the first to occur of: (A) July 1, 2005, unless a
written agreement or written letter of intent is in place that, on July 1, 2005,
has been approved by the Board and that relates to a transaction or series of
transactions that would (if consummated) result in a Covered Transaction or
(B) a determination by the Board that a Covered Transaction is not reasonably
expected to occur on or before July 1, 2005; provided that the Board may, in its
discretion, extend the term of the Plan beyond such date.

3

--------------------------------------------------------------------------------

        4.    Administration.    

        (a)   The Plan shall be interpreted, administered and operated by the
Board. The Board shall have complete authority, in its sole discretion subject
to the express provisions of the Plan, to determine who shall be a Participant,
to interpret the Plan, to prescribe, amend and rescind rules and regulations
relating to the Plan, and to make all other determinations necessary or
advisable for the administration of the Plan, including whether, for purposes of
the Plan, a termination of a Participant's employment has been with or without
Cause or for Good Reason. Notwithstanding the foregoing, the Board may delegate
any of its duties hereunder to such person or persons from time to time as it
may designate.

        (b)   All expenses and liabilities that members of the Board incur in
connection with the administration of the Plan shall be borne by the Company.
The Board may employ attorneys, consultants, accountants, appraisers, brokers,
or other persons, and the Board, the Company and the Company's officers and
directors shall be entitled to rely upon the advice, opinions or valuations of
any such persons. No member of the Board shall be personally liable for any
action, determination or interpretation made in good faith with respect to the
Plan, and all members of the Board shall be fully protected by the Company in
respect of any such action, determination or interpretation.

        5.    Participation.    The Company's management, in its sole
discretion, shall determine those employees of an Employer who will be
Participants in the Plan, the Base Salary Multiplier (or the applicable formula
for determining the Base Salary Multiplier, as applicable) applicable to each
Participant and the Sale Bonus Payment Scheme applicable to each Participant. In
order to participate in the Plan, each Participant must promptly sign and return
to the Company a participation agreement in the form provided by the Company (a
"Participation Agreement"), which shall set forth the Participant's Base Salary
Multiplier (or the applicable formula for determining the Base Salary
Multiplier, as applicable), designated Sale Bonus Payment Scheme and additional
details about the Plan.

        6.    Sale Bonus Trigger; Effect of Termination of Employment.    

        (a)   Subject to Section 11(c) below, a Participant shall be entitled to
receive a Sale Bonus on the terms set forth in Sections 7 and 8 below if the
Participant:

        (i)    is employed by an Employer on the Closing Date of the Covered
Transaction,

        (ii)   prior to the Closing Date of the applicable Covered Sale, was
terminated by his or her Employer without Cause (which does not include transfer
to a Purchaser or another Employer) or terminated employment with his or her
Employer for Good Reason, or

        (iii)  transferred employment to a Purchaser pursuant to the terms of
the applicable Covered Sale and either (A) is still employed by the Purchaser on
the Closing Date of the Covered Transaction or (B) such employment by the
Purchaser was terminated by the Purchaser without Cause or terminated by the
Participant for Good Reason).

A Participant shall not be entitled to a Sale Bonus if his or her employment by
his or her Employer terminates for any other reason before the Closing Date of a
Covered Transaction. After the Closing Date of a Covered Transaction, a
Participant's subsequent termination of employment will have no affect on the
Participant's entitlement to receive a Sale Bonus hereunder. The Board shall
make the determination of whether a termination of a Participant's employment by
a Purchaser qualifies as a termination for Cause, or whether a termination of
employment with a Purchaser by the Participant qualifies as a termination for
Good Reason, and in such context shall treat the Purchaser as the Employer for
purposes of the definition of such term.

        (b)   Any termination of a Participant's employment by his or her
Employer for Cause or by a Participant for Good Reason shall be communicated by
Notice of Termination. For purposes of

4

--------------------------------------------------------------------------------

this Plan, a "Notice of Termination" shall mean a written notice which shall
indicate the specific termination provision or provisions in this Plan relied
upon. The Notice of Termination shall be effective on the date specified in
Section 11(j) of this Plan. Notwithstanding anything else contained herein to
the contrary, a Participant shall not be deemed to have terminated employment if
his or her employment by an Employer terminates but he or she continues as an
employee of another Employer.

        7.    Amount of Sale Bonus.    In the event that a Participant becomes
entitled to receive a Sale Bonus, the amount of such Participant's Sale Bonus
shall be determined by multiplying the Participant's highest annual rate of Base
Salary in effect at any time during the 24-month period preceding the Closing
Date of the last transaction resulting in a Covered Transaction by the
Participant's applicable Base Salary Multiplier. Each Participant's Base Salary
Multiplier (or the applicable formula for determining the Base Salary
Multiplier, as applicable) shall be set forth in the Participant's Participation
Agreement. Following consummation of a Covered Transaction, determinations of
ANSP (including, without limitation, the determination of value in U.S. dollars
of any non-cash consideration and the value in U.S. dollars of any consideration
not expressed in U.S. dollars) shall be made by the Board in good faith, whose
good faith determination will be binding.

        8.    Payment of Sale Bonus.    If a Participant becomes entitled to
receive a Sale Bonus, the manner and timing of the payment of such Sale Bonus
shall be determined in accordance with the following rules. The Company's
management, in its sole discretion, shall determine which of the following Sale
Bonus Payment Schemes, either Payment Scheme One set forth in subsection (a) or
Payment Scheme Two set forth in subsection (b), shall apply to each Participant.
The applicable Payment Scheme shall be set forth in the Participant's
Participation Agreement.

        (a)   Payment Scheme One. Payment of a Sale Bonus to a Participant under
Payment Scheme One shall be made in accordance with this Section 8(a). Within
sixty (60) days after the Closing Date of the last transaction resulting in a
Covered Transaction, the Board shall make a good faith estimate of ANSP
resulting from the Covered Transaction. Subject to clause (ii) below, no later
than sixty (60) days after the Closing Date, each Participant who is eligible to
receive a Sale Bonus under this Section 8(a) shall be paid an amount equal to
80% of such Participant's estimated Sale Bonus, calculated based on such
estimate. Within 24 months after the Closing Date of the Covered Transaction,
the Board shall make an updated estimate of ANSP, at which time up to 100% of
the remainder of each Participant's Sale Bonus, if any, shall be paid subject to
the following provisions of this paragraph:

        (i)    The updated calculations shall take into account any further
information regarding claims, charges, levies and expenses associated with the
Covered Transaction and post-Closing Date activities as well as an updated
calculation of the estimated tax consequences of the Covered Transaction. To the
extent that deal-related claims, charges or levies that would have the effect,
if successful, of reducing ANSP are made, but not actually resolved, during the
24-month period, adjustments shall be made to the calculations assuming the most
unfavorable result to the Company and its affiliates and any subsequent true-ups
shall be made within a reasonable period of time following the resolution of the
matter. To the extent that any earn-out or similar conditional amount is
scheduled to be paid more than 24 months after the Closing Date, or to the
extent escrowed proceeds are scheduled to be released from escrow more than
24 months after the Closing Date, the Board will within a reasonable time after
the occurrence of such events adjust Sale Bonus calculations when and if such
amounts are actually received (to the extent such amounts were not previously
taken into account). If final amounts still remain to be determined more than
24 months after Closing Date, whether because of pending claims, earn-outs or
similar arrangements, or otherwise, the Board may at any time thereafter make a
good faith estimate of what the final amount of ANSP will be and pay out the
remaining Sale Bonus amounts (less amounts previously paid) based on such good

5

--------------------------------------------------------------------------------

faith estimate. In such case, the Board's good faith determination will be
binding on all Participants whose Sale Bonus is so paid and there will be no
adjustments to such bonuses for events occurring before or after such
determination.

        (ii)   Notwithstanding the foregoing, if the Board determines that,
based on the estimate of ANSP made within sixty (60) days of the Closing Date of
the Covered Transaction, the remainder of a Participant's Sale Bonus amount, if
any, would be United States Dollars 10,000 or less, the Board may elect to pay
the Participant's entire Sale Bonus (without reduction for a withhold) based on
the Board's initial estimate of ANSP. In such case, the Board's good faith
initial estimate of ANSP will be binding on all Participants whose Sale Bonus is
so paid and there will be no adjustments to such Sale Bonuses for events
occurring before or after such determination.

        (b)   Payment Scheme Two. Payment of a Sale Bonus to a Participant under
Payment Scheme Two shall be made in a cash lump sum no later than sixty
(60) days following the Closing Date of the Covered Transaction based on the
Board's initial estimate of ANSP, which estimate will be final and binding for
such purposes.

        (c)   Liability for Payment. The Company shall be liable for the payment
of benefits under this Plan with respect to each Participant.

        9.    Taxes.    The Company and/or the Participant's Employer, as
applicable, has the right to withhold from any amount otherwise payable to a
Participant under or pursuant to this Plan the amount of any taxes or other
statutory deductions that the Company or such Employer, or any of their
respective affiliates, may legally be required to withhold with respect to such
payment (including, without limitation, income tax, National Insurance
contributions and (if applicable) any United States Federal taxes, and any other
foreign, state, city, or local taxes). In the event that tax withholding is
required with respect to amounts or benefits payable or deliverable by the
Company or the Participant's Employer to a Participant and the Company or the
Employer cannot satisfy its tax withholding obligations in the manner described
in the preceding sentence, the Company or the Employer may require the
Participant to pay or provide for the payment of such required tax withholding
as a condition to the payment or delivery of such amounts or benefits. Each
Participant, former Participant and Beneficiary shall be solely responsible for
all income and employment taxes arising in connection with participation in this
Plan or benefits hereunder.

        10.    Arbitration    

        (a)   Except in so far as precluded by s.203 of the Employment Rights
Act 1996, any dispute arising out of or in connection with this contract,
including any question regarding its existence, validity or termination, shall
be referred to and finally resolved by arbitration under the London Court of
International Arbitration Rules, which Rules are deemed to be incorporated by
reference into this clause.

        (b)   The number of arbitrators shall be one.

        (c)   The seat, or legal place, of arbitration shall be London, England.

        (d)   The language to be used in the arbitral proceedings shall be
English.

        (e)   The governing law of the contract shall be the substantive law of
the State of California, United States of America.

        11.    Miscellaneous    

        (a)   Successors to the Company. The Company will require any successor
(whether direct or indirect, by purchase, merger, consolidation, or otherwise)
of all or substantially all of the business and/or assets of the Company or of
any division or Subsidiary thereof (the business and/or assets of which
constitute at least fifty percent (50%) of the total business and/or assets of
the Company

6

--------------------------------------------------------------------------------

following the Covered Transaction) to expressly assume and agree to perform the
Company's obligations under this Plan in the same manner and to the same extent
that the Company would be required to perform them if such succession had not
taken place.

        (b)   Assignment by the Participant. None of the benefits, payments,
proceeds or claims of any Participant shall be subject to any claim of any
creditor and, in particular, the same shall not be subject to attachment or
garnishment or other legal process by any creditor, nor shall any such
Participant have any right to alienate, anticipate, commute, pledge, encumber or
assign any of the benefits or payments or proceeds that he or she may expect to
receive, contingently or otherwise, under this Plan. Notwithstanding the
foregoing, benefits that are in pay status may be subject to a court order of
garnishment or wage assignment, or similar order, or a tax levy. This Plan shall
inure to the benefit of and be enforceable by each Participant's personal or
legal representatives, executors, administrators, successors, heirs,
distributees, devisees, and legatees. If a Participant dies while any amount
would still be payable to him or her hereunder had he or she continued to live,
all such amounts, unless otherwise provided herein, shall be paid to the
Participant's Beneficiary in accordance with the terms of this Plan.

        (c)   Release Agreement. Notwithstanding anything else contained herein
to the contrary, the Company's obligation to pay benefits to a Participant is
subject to the condition precedent that the Participant execute a valid and
effective Release Agreement in the form attached to the Participant's
Participation Agreement (or such other form as the Committee may require) and
such executed agreement is received by the Company no later than 60 days after
the Closing Date and is not revoked by the Participant or otherwise rendered
unenforceable by the Participant.

        (d)   Beneficiaries. Subject to the other provisions of this
Section 11(d), the person or persons (including a trustee, personal
representative or other fiduciary) last designated in writing by a Participant
in accordance with procedures established by the Committee to receive the
benefits specified hereunder in the event of the Participant's death shall be
the Participant's Beneficiary or Beneficiaries.

        No Beneficiary designation shall become effective until it is filed with
the Committee, and no Beneficiary designation of someone other than a
Participant's spouse shall be effective unless such designation is consented to
by the Participant's spouse on a form provided by and in accordance with
procedures established by the Committee or its delegate.

        If there is no Beneficiary designation in effect with respect to a
Participant, or if there is no surviving designated Beneficiary, then the
Participant's surviving spouse shall be the Beneficiary. If there is no
surviving spouse to receive any benefits payable in accordance with the
preceding sentence, the duly appointed and currently acting personal
representative of the Participant's estate (which shall include either the
Participant's probate estate or living trust) shall be the Beneficiary. In any
case where there is no such personal representative of the Participant's estate
duly appointed and acting in that capacity within 90 days after the
Participant's death (or such extended period as the Committee determines is
reasonably necessary to allow such personal representative to be appointed, but
not to exceed 180 days after the Participant's death), then Beneficiary shall
mean the person or persons who can verify by affidavit or court order to the
satisfaction of the Committee that they are legally entitled to receive the
benefits specified hereunder.

        Notwithstanding anything else herein to the contrary, in the event any
amount is payable under this Plan to a minor, payment shall not be made to the
minor, but instead be paid: (i) to that person's living parent(s) to act as
custodian; (ii) if that person's parents are then divorced, and one parent is
the sole custodial parent, to such custodial parent; or (iii) if no parent of
that person is then living, to a custodian selected by the Committee to hold the
funds for the minor under the Uniform Transfers or Gifts to Minors Act in effect
in the jurisdiction in which the minor resides. If no parent is living and the
Committee decides not to select another custodian to hold the funds

7

--------------------------------------------------------------------------------

for the minor, then payment shall be made to the duly appointed and currently
acting guardian of the estate for the minor or, if no guardian of the estate for
the minor is duly appointed and currently acting within 60 days after the date
the amount becomes payable, payment shall be deposited with the court having
jurisdiction over the estate of the minor.

        (e)   Payments on Behalf of Persons Under Incapacity. In the event that
any amount becomes payable under this Plan to a person who, in the sole judgment
of the Committee, is considered by reason of physical or mental condition to be
unable to give a valid receipt therefor the Committee may direct that such
payment be made to any person found by the Committee, in its sole judgment, to
have assumed the care of such person. Any payment made pursuant to such
determination shall constitute a full release and discharge of the Committee and
all Employers.

        (f)    Unsecured General Creditor. Participants and their Beneficiaries,
heirs, successors, and assigns shall have no legal or equitable rights, claims,
or interest in any specific property or assets of the Company. No assets of the
Company shall be held under any trust, or held in any way as collateral security
for the fulfilling of the obligations of the Company under this Plan. Any and
all of the Company's assets shall be, and remain, the general unpledged,
unrestricted assets of the Company. The Company's obligation under this Plan
shall be merely that of an unfunded and unsecured promise of the Company to pay
money in the future, and the rights of the Participants and Beneficiaries shall
be no greater than those of unsecured general creditors.

        (g)   Gender and Number. Except where otherwise indicated by the
context, any masculine term used herein also shall include the feminine, the
plural shall include the singular, and the singular shall include the plural.

        (h)   Severability. In the event any provision of this Plan shall be
held illegal or invalid for any reason, the illegality or invalidity shall not
affect the remaining parts of this Plan, and this Plan shall be construed and
enforced as if the illegal or invalid provision had not been included. Further,
the captions of this Plan are not part of the provisions hereof and shall have
no force and effect.

        (i)    Modification. The Committee or the Board may from time to time
amend this Plan in any way it determines to be advisable; provided, however,
that no such amendment that adversely affects a Participant shall be effective
without the consent of such Participant (or the Participant's legal
representative). No provision of this Plan may be waived unless as to a
Participant such waiver is agreed to in writing and signed by the Participant
(or the Participant's legal representative) and by an authorized member of the
Committee (or the Board) or its designee or legal representative.

        (j)    Notice. For purposes of this Plan, notices, including Notice of
Termination, and all other communications provided for in this Plan shall be in
writing and shall be deemed to have been duly given when delivered or on the
date stamped as received by a recognized international courier (such as FedEx)
postage and mailing fee prepaid and addressed: (i) if to the Participant, to his
or her latest address as reflected on the records of the Company or his or her
Employer, and (ii) if to an Employer, to the attention of the Company's
Corporate Secretary at the address of the Company's principal executive offices;
or to such other address as either party may furnish to the other in writing for
the delivery of notices to that party, with specific reference to this Plan and
the importance of the notice, except that a notice of change of address shall be
effective only upon receipt by the other party.

        (k)   Applicable Law. To the extent not preempted by the laws of the
United States, the laws of the State of California shall be the controlling law
in all matters relating to this Plan. Any statutory reference in this Plan shall
also be deemed to refer to all applicable final rules and final regulations
promulgated under or with respect to the referenced statutory provision.

8

--------------------------------------------------------------------------------

        (l)    No Sale Obligation. Notwithstanding anything else contained
herein or in any Participation Agreement or other agreement related to the Plan
to the contrary, the Company and its subsidiaries have no obligation to close,
negotiate or otherwise pursue any sale or other disposition of all or
substantially all of BV or any component thereof. The existence of the Plan, the
Participation Agreements, and the conditional rights of Participants under the
Plan shall not limit, affect or restrict in any way the right or power of the
Company or any of its subsidiaries to make or authorize (or to refrain from
making or authorizing, as the case may be): (i) any adjustment,
recapitalization, reorganization or other change in capital structure or
business; (ii) any merger, amalgamation, consolidation or change in ownership;
(iii) any dissolution or liquidation; (iv) any sale or transfer of assets or
business; or (v) any other corporate act or proceeding by the entity.

9

--------------------------------------------------------------------------------

        IN WITNESS WHEREOF, the Company has caused its duly authorized officer
to execute this Plan as of the date first set forth above.

    EDISON MISSION ENERGY
 
 
By
 
         

--------------------------------------------------------------------------------

10

--------------------------------------------------------------------------------

EXHIBIT A

Edison Mission Energy
International Revenue Base

Project

--------------------------------------------------------------------------------

  Country

--------------------------------------------------------------------------------

  2003 Revenues from
Consolidated Subsidiaries

--------------------------------------------------------------------------------

  EME Ownership
Interest

--------------------------------------------------------------------------------

  EME Share of Revenues

--------------------------------------------------------------------------------

  2003 Revenues of
Unconsolidated Subsidiaries

--------------------------------------------------------------------------------

  EME Ownership
Interest

--------------------------------------------------------------------------------

  EME Share of Revenues

--------------------------------------------------------------------------------

  2003 Revenue Base

--------------------------------------------------------------------------------

  Percentage of
International Revenue
Base

--------------------------------------------------------------------------------

  Europe                                                 First Hydro  
United Kingdom   $ 367,633,000   100 % $ 367,633,000   $ —       $ —   $
367,633,000   20 % Derwent   United Kingdom     —         —     106,316,000   33
%   35,084,280     35,084,280   2 % ISAB   Italy     —         —     480,685,000
  49 %   235,535,650     235,535,650   13 % Italian Wind   Italy     —         —
    83,234,000   50 %   41,617,000     41,617,000   2 % Doga   Turkey    
123,956,000   80 %   99,164,800               —     99,164,800   5 % Spanish
Hydro   Spain     22,739,000   95 %   21,706,000               —     21,706,000
  1 %        

--------------------------------------------------------------------------------

     

--------------------------------------------------------------------------------

 

--------------------------------------------------------------------------------

     

--------------------------------------------------------------------------------

 

--------------------------------------------------------------------------------

                514,328,000         488,503,800     670,235,000        
312,236,930     800,740,730   44 %        

--------------------------------------------------------------------------------

     

--------------------------------------------------------------------------------

 

--------------------------------------------------------------------------------

     

--------------------------------------------------------------------------------

 

--------------------------------------------------------------------------------

      Asia                                                 Paiton   Indonesia  
  —               485,018,000   40 %   194,007,200     194,007,200   11 % PT
Momi   Indonesia     17,994,000   100 %   17,994,000               —    
17,994,000   1 % PT Adro   Indonesia     —         —     —   8 %   —     —      
CBK   Philippines     1,424,000   100 %   1,424,000     65,625,000   50 %  
32,812,500     34,236,500   2 % TECO   Thailand     —         —     214,119,000
  25 %   53,529,750     53,529,750   3 %        

--------------------------------------------------------------------------------

     

--------------------------------------------------------------------------------

 

--------------------------------------------------------------------------------

     

--------------------------------------------------------------------------------

 

--------------------------------------------------------------------------------

                19,418,000         19,418,000     764,762,000        
280,349,450     299,767,450   16 %        

--------------------------------------------------------------------------------

     

--------------------------------------------------------------------------------

 

--------------------------------------------------------------------------------

     

--------------------------------------------------------------------------------

 

--------------------------------------------------------------------------------

      Australia                                                 Loy Yang B  
Australia     178,531,000   100 %   178,531,000               —     178,531,000
  10 % Valley Power   Australia     16,250,000   80 %   13,065,000              
—     13,065,000   1 % Kwinana   Australia     38,914,000   70 %   27,239,800  
            —     27,239,800   1 %        

--------------------------------------------------------------------------------

     

--------------------------------------------------------------------------------

 

--------------------------------------------------------------------------------

     

--------------------------------------------------------------------------------

 

--------------------------------------------------------------------------------

                233,695,000         218,835,800     —         —     218,835,800
  12 %        

--------------------------------------------------------------------------------

     

--------------------------------------------------------------------------------

 

--------------------------------------------------------------------------------

     

--------------------------------------------------------------------------------

 

--------------------------------------------------------------------------------

      New Zealand                                                 Contact Energy
  New Zealand     755,524,000   51 %   385,317,240               —    
385,317,240   21 %        

--------------------------------------------------------------------------------

     

--------------------------------------------------------------------------------

 

--------------------------------------------------------------------------------

     

--------------------------------------------------------------------------------

 

--------------------------------------------------------------------------------

                755,524,000         385,317,240     —         —     385,317,240
  21 %        

--------------------------------------------------------------------------------

     

--------------------------------------------------------------------------------

 

--------------------------------------------------------------------------------

     

--------------------------------------------------------------------------------

 

--------------------------------------------------------------------------------

      Americas                                                 Eco Electrica  
Puerto Rico     —         —     234,896,000   50 %   117,448,000     117,448,000
  6 %        

--------------------------------------------------------------------------------

     

--------------------------------------------------------------------------------

 

--------------------------------------------------------------------------------

     

--------------------------------------------------------------------------------

 

--------------------------------------------------------------------------------

                —         —     234,896,000         117,448,000     117,448,000
  6 %        

--------------------------------------------------------------------------------

     

--------------------------------------------------------------------------------

 

--------------------------------------------------------------------------------

     

--------------------------------------------------------------------------------

 

--------------------------------------------------------------------------------

      Non Project                                                        

--------------------------------------------------------------------------------

     

--------------------------------------------------------------------------------

 

--------------------------------------------------------------------------------

     

--------------------------------------------------------------------------------

 

--------------------------------------------------------------------------------

      Total       $ 1,522,965,000       $ 1,112,074,840   $ 1,669,893,000      
$ 710,034,380   $ 1,822,109,220   100 %        

--------------------------------------------------------------------------------

     

--------------------------------------------------------------------------------

 

--------------------------------------------------------------------------------

     

--------------------------------------------------------------------------------

 

--------------------------------------------------------------------------------

     

11

--------------------------------------------------------------------------------

QuickLinks

EDISON MISSION ENERGY BV SALE INCENTIVE PLAN—UK
EXHIBIT A