POINT BEACH NUCLEAR PLANT

POWER PURCHASE AGREEMENT

BETWEEN

FPL ENERGY POINT BEACH, LLC

AND

WISCONSIN ELECTRIC POWER COMPANY

DATED AS OF DECEMBER 19, 2006

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POWER PURCHASE AGREEMENT

TABLE OF CONTENTS

ARTICLE I: DEFINITIONS
....................................................................................................................................................1

        1.1.

Defined Terms
......................................................................................................................................................1

        1.2.

Rules of Interpretation
.........................................................................................................................................13

        1.3.

Accounting Terms
...............................................................................................................................................14

        1.4.

Legal Representation
..........................................................................................................................................14

ARTICLE II:

PURCHASE OF CAPACITY, ENERGY, AND ANCILLARY     SERVICES
...........................................................................................................................................................................14

2.1.

Capacity Sale and Purchase
.............................................................................................................................14

2.2.

Energy Sale and Purchase
................................................................................................................................14

2.3.

Ancillary Services
............................................................................................................................................15

2.4.

Replacement Energy and Replacement Capacity
...............................................................................................16

2.5.

Financial Transmission Rights
...........................................................................................................................17

2.6.

Title and Risk of Loss
......................................................................................................................................18

2.7.

Delivery Point
..................................................................................................................................................18

2.8.

Capacity Accreditation
.....................................................................................................................................18

2.9.

Uprates
............................................................................................................................................................18

2.10.

Right of First Offer
..........................................................................................................................................20

2.11.

Reactive Power
...............................................................................................................................................20

2.12.

Station Service
................................................................................................................................................21

2.13.

CT Capacity
....................................................................................................................................................21

ARTICLE III:

PAYMENTS
......................................................................................................................................................21

3.1.

Purchase Payments
.............................................................................................................................................21

3.2.

Peak Adjustment Payment
..................................................................................................................................22

ARTICLE IV:

SCHEDULING
..................................................................................................................................................22

4.1.

Scheduling
..........................................................................................................................................................22

4.2.

Failure to Schedule
..............................................................................................................................................23

ARTICLE V:

MAINTENANCE AND OPERATION
..............................................................................................................23

5.1.

Scheduled Maintenance
.......................................................................................................................................23

5.2.

Derate Notices
....................................................................................................................................................24

5.3.

Operation
............................................................................................................................................................25

ARTICLE VI:

METERING
........................................................................................................................................................28

6.1.

Metering
..............................................................................................................................................................28

ARTICLE VII:

BILLING AND PAYMENT
................................................................................................................................29

7.1.

Billing and Payment
..............................................................................................................................................29

ARTICLE VIII:

PERFORMANCE SECURITY
.......................................................................................................................30

8.1.

Seller Performance Security
..................................................................................................................................30

8.2.

Buyer Performance Security
..................................................................................................................................30

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8.3.

Draws; Replenishments
.........................................................................................................................................30

8.4.

Reporting
..............................................................................................................................................................31

ARTICLE IX:

FORCE MAJEURE
.............................................................................................................................................31

9.1.

Conditions of Excuse for Seller
..............................................................................................................................31

9.2.

Conditions of Excuse for Buyer
..............................................................................................................................31

9.3.

Burden of Proof
.....................................................................................................................................................32

9.4.

Payment and Security Obligations Not Excused
........................................................................................................................................................................32

9.5.

Time Limits
.............................................................................................................................................................32

9.6.

Deadline Extended
..................................................................................................................................................32

ARTICLE X:

EVENTS OF DEFAULT; REMEDIES
..................................................................................................................33

10.1.

List of Events of Default
.........................................................................................................................................33

10.2.

Remedies
...............................................................................................................................................................34

10.3.

Rights of Specific Performance
................................................................................................................................35

10.4.

Limitation of Liability
...............................................................................................................................................35

10.5.

Disclaimer of Warranties
.........................................................................................................................................35

ARTICLE XI:

REPRESENTATIONS, WARRANTIES AND COVENANTS
............................................................................36

11.1.

Representations and Warranties of Buyer
.................................................................................................................36

11.2.

Representations and Warranties of Seller
..................................................................................................................37

11.3.

Covenants of Seller
..................................................................................................................................................38

ARTICLE XII:

INDEMNITY
...........................................................................................................................................................38

12.1.

By Seller
..................................................................................................................................................................38

12.2.

Indemnification by Buyer
...........................................................................................................................................39

12.3.

Joint Negligence
.......................................................................................................................................................39

12.4.

Responsibility for Employees
....................................................................................................................................39

12.5.

Notice and Participation
...........................................................................................................................................39

12.6.

Payment of Indemnification Claims
............................................................................................................................40

12.7.

Survival of Obligation
...............................................................................................................................................40

ARTICLE XIII:

TERM
.....................................................................................................................................................................40

13.1.

Term
........................................................................................................................................................................40

13.2.

Termination
..............................................................................................................................................................41

13.3.

Effect of Termination
.................................................................................................................................................41

ARTICLE XIV:

ADMINISTRATIVE COMMITTEE
.....................................................................................................................................................................................41

14.1.

Purpose
.....................................................................................................................................................................41

14.2.

Membership
..............................................................................................................................................................41

14.3.

Meetings
...................................................................................................................................................................41

14.4.

Functions
..................................................................................................................................................................42

14.5.

Expenses
..................................................................................................................................................................42

ARTICLE XV:

NOTICES
..................................................................................................................................................................42

15.1.

Notices in Writing
......................................................................................................................................................42

15.2.

Date of Notification
...................................................................................................................................................43

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15.3.

Oral Notice in Emergency
..........................................................................................................................................43

ARTICLE XVI:

CONFIDENTIALITY
..............................................................................................................................................43

16.1.

Non-Disclosure to Third Parties
.................................................................................................................................43

16.2.

Definition of Proprietary Information
...........................................................................................................................44

16.3.

Limitations on Required Disclosure
.............................................................................................................................44

16.4.

Remedies
...................................................................................................................................................................44

16.5.

Survival of Confidentiality
............................................................................................................................................45

ARTICLE XVII:

INSURANCE
...........................................................................................................................................................45

17.1.

Coverage and Amounts of Seller
.................................................................................................................................45

17.2.

Insurance Certificates
..................................................................................................................................................46

17.3.

Coverage For Full Term
..............................................................................................................................................47

ARTICLE XVIII:

ASSIGNMENT
......................................................................................................................................................47

18.1.

Binding Effect
..............................................................................................................................................................47

18.2.

Assignment
..................................................................................................................................................................47

18.3.

Change in Control
........................................................................................................................................................48

ARTICLE XIX:

DISPUTE RESOLUTION
.........................................................................................................................................48

19.1.

General Provisions
.......................................................................................................................................................48

19.2.

Negotiation
..................................................................................................................................................................48

19.3.

Binding Upon Parties
....................................................................................................................................................49

19.4.

Continued Performance
................................................................................................................................................49

ARTICLE XX:

COMPLIANCE WITH LAWS; TAXES
.....................................................................................................................49

20.1.

Compliance with Laws
..................................................................................................................................................49

20.2.

Mobile-Sierra
...............................................................................................................................................................49

20.3.

Taxes and Other Charges
..............................................................................................................................................49

ARTICLE XXI:

CHANGE IN LAW
......................................................................................................................................................50

21.1.

Change in Law
...............................................................................................................................................................50

21.2.

Future Attributes
............................................................................................................................................................50

21.3.

MISO Changes
..............................................................................................................................................................51

ARTICLE XXII:

MISCELLANEOUS
....................................................................................................................................................51

22.1.

Recording Telephone Conversations
...............................................................................................................................51

22.2.

Governing Law
...............................................................................................................................................................51

22.3.

Entire Agreement; Amendment
........................................................................................................................................52

22.4.

No Implied Waiver
.........................................................................................................................................................52

22.5.

Severability
.....................................................................................................................................................................52

22.6.

No Exclusivity/Dedication of Assets
.................................................................................................................................53

22.7.

Expenses
.........................................................................................................................................................................53

22.8.

Counterparts
...................................................................................................................................................................53

22.9.

Survival
...........................................................................................................................................................................53

22.10.

Individual Responsibility
.................................................................................................................................................53

22.11.

No Duty To Third Parties
...............................................................................................................................................53

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22.12.

Forward Contract
..........................................................................................................................................................54

22.13.

Press Releases
...............................................................................................................................................................54

Exhibits

Exhibit A Delivered Energy Charges
Exhibit B Buyer's Capacity Amount
Exhibit C Delivered Energy Charge Shaping Factor
Exhibit D Diagram of Metering Devices
Exhibit E Form of Seller's Guaranty
Exhibit F Form of Letter of Credit
Exhibit G Peak Adjustment Payment
Exhibit H Scheduling Provisions
Exhibit I MAIN Guide No. 3A Standards

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POWER PURCHASE AGREEMENT

This POWER PURCHASE AGREEMENT is made and entered into as of December 19, 2006,
by and between FPL ENERGY POINT BEACH, LLC, a Wisconsin limited liability
company ("Seller"), and WISCONSIN ELECTRIC POWER COMPANY, a Wisconsin
corporation ("Buyer") (hereinafter the parties hereto are sometimes referred to
collectively as the "Parties," or individually as a "Party").

W I T N E S S E T H

:

WHEREAS, Buyer is a public utility which operates a system for generation and
distribution of electric power in the States of Wisconsin and Michigan; and

WHEREAS, Buyer intends to transfer to Seller all of its rights, title, and
interests in and to the Point Beach Nuclear Plant, a nuclear-powered electric
generating facility consisting of two generating units and facilities,
equipment, supplies and improvements (including the CT) located in Two Rivers,
Wisconsin, NRC Operating License Nos. Unit 1 - DPR 24 and Unit 2 - DPR 27, as
more specifically described in the Asset Sale Agreement ("Point Beach"); and

WHEREAS, in order to continue serving its customers following transfer of
Buyer's interests in the Facilities to Seller, Buyer desires to purchase, and
Seller desires to sell, Capacity, Energy, and all associated Ancillary Services
on the terms, and subject to the conditions, set forth below.

NOW, THEREFORE, in consideration of the recitals and the mutual promises,
covenants and agreements contained herein and in the Asset Sale Agreement and
for other good and valuable consideration, the receipt and sufficiency of which
are hereby acknowledged, the Parties hereto hereby agree as follows:

      ARTICLE I: DEFINITIONS

          1.1    Defined Terms
      
          As used in this Agreement, the following terms shall have the
          following meanings:
      
          "Accredited Capacity" means Capacity or Replacement Capacity that (a)
          meets the resource adequacy requirements in Module E of the
          Transmission Provider Tariff ("Module E") for Buyer's Network Load, a
          portion of which may include Capacity or Replacement Capacity that
          satisfies the requirement for a Local Capacity Resource for Buyer's
          Network Load and (b) is measured in accordance with the MAIN Guide No.
          3A standards; provided, however, that if either or both requirements
          in (a) or (b) is inapplicable, then Accredited Capacity means Capacity
          or Replacement Capacity that meets the applicable requirements for
          Capacity (the "Effective Capacity Requirements") of any Governing
          Authority having jurisdiction over Buyer, including any Capacity from
          the Facilities that may be deemed available under the Effective
          Capacity Requirements even if the Facilities are not operating.
      
          "Administrative Committee" has the meaning set forth in Article XIV.
      
          
          
          
      
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          "Affiliate" has the meaning given such term in Rule 12b-2 under the
          Securities Exchange Act of 1934.
      
          "Agreement" means this Power Purchase Agreement entered into by Seller
          and Buyer.
      
          "Ancillary Services" means those services that during the Term are
          necessary to support the transmission of electric capacity and energy,
          or support the generation or transmission of Energy from the
          Facilities or Replacement Capacity, as applicable, while maintaining
          reliable operation of the transmission system, associated with or
          otherwise corresponding to the Capacity of the Facilities or
          Replacement Capacity, as applicable, and/or output of Energy at such
          time, which Ancillary Services shall include reactive power and
          frequency response service.
      
          "Asset Sale Agreement" means that certain Asset Sale Agreement between
          Buyer and Seller, dated as of the date hereof.
      
          "Associate" means, with respect to any Party, any officer, director,
          trustee, fiduciary, employee, agent, representative, contractor or
          subcontractor of such Party and any shareholder, partner, member or
          other owner of such Party.
      
          "ATC" means the American Transmission Company LLC.
      
          "Authorization" means any license, permit, approval, consent, filing,
          waiver, exemption, variance, clearance, entitlement, allowance,
          franchise or other authorization, whether corporate, governmental,
          regulatory or otherwise.
      
          "Balancing Authority Function" means the operating authority that
          maintains the load resource balancing and reliability for the
          balancing authority area in which the Facilities are located.
      
          "Billing Cycle" means each calendar month during the Term and any
          partial calendar month at the beginning or end of the Term.
      
          "Business Day" means any day other than Saturday, Sunday, or any NERC
          holiday or any other day on which commercial banks in Milwaukee,
          Wisconsin are required to be closed.
      
          "Buyer" has the meaning set forth in the preamble hereto.
      
          "Buyer Performance Security" means any performance security that may
          be required to be posted by Buyer pursuant to Section 8.2.
      
          "Buyer's Capacity Amount" means, for any given time, the applicable
          amount set forth in Exhibit B. The Capacity of the Facilities, and the
          associated amounts in the column in Exhibit B entitled "Capacity of
          the Facilities," shall be revised during the Term upon written notice
          from Seller to Buyer providing the results of any Performance Testing
          of the Facilities conducted in accordance with the MAIN Guide No. 3A
          Standards (or with the Effective Capacity Requirements, if
          applicable).
      
          
          
          
          
          2
      
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          "Buyer's Energy Amount" means, for any period of time, an aggregate
          amount of Energy (including Replacement Energy) associated with the
          Buyer's Capacity Amount (excluding the CT Capacity) for such period of
          time.
      
          "Buyer's Guarantor" means a Person that, at the time of the execution
          and delivery of any guaranty issued pursuant to Section 8.2, is a
          direct or indirect owner of Buyer and (a) has an Investment Grade
          Credit Rating and a consolidated Net Worth of at least five hundred
          million dollars ($500,000,000.00); or (b) is reasonably acceptable to
          Seller as having a verifiable creditworthiness and Net Worth
          sufficient to secure Buyer's Guarantor's obligations under any
          guaranty issued pursuant to Section 8.2.
      
          "Calculation Reconstitution Program" means the specific project to
          validate and integrate calculations and setpoints at Point Beach
          described in that certain Point Beach Nuclear Plant Calculation Review
          and Reconstruction Project Plan, CRR-PB-PP, Revision 3, dated January
          27, 2006.
      
          "Calendar Year" means a twelve-month period beginning January 1 and
          ending December 31.
      
          "Capacity" means, on or as of any date of determination, a power
          generation unit's capability to generate a specific amount of
          electrical energy at a given point in time.
      
          "Change in Control
      
          " means any one or more of the following events that occurs with
          respect to Seller, or with respect to any Person which is a direct or
          indirect owner of a majority of the ownership interests in Seller:
          (i) a transfer of a majority of the ownership interests in Seller or
          such Person; (ii) a change in the general partner of any such Person;
          (iii) any consolidation or merger of Seller or any such Person in
          which Seller or such Person, as the case may be, is not the continuing
          or surviving entity, other than a consolidation or merger of a Person
          in which the holders of such Person's ownership interests immediately
          before the consolidation or merger shall, upon consummation of the
          consolidation or merger, own at least 50% of the equity of the
          surviving entity; or (iv) any other event or circumstance in which
          "control" (as defined in Rule 12b-2 under the Securities Exchange Act
          of 1934) of Seller or of any such Person is transferred to another
          Person.
      
          
      
          "Change in Law" has the meaning set forth in Section 21.1.
      
          "Claims" means all third party claims or actions, threatened or filed
          and, whether groundless, false, fraudulent or otherwise, that directly
          or indirectly relate to the subject matter of an indemnity, and the
          resulting losses, damages, expenses, reasonable attorneys' fees and
          court costs.
      
          "Communications Protocol" has the meaning set forth in Section
          5.3(b)(i).
      
          "CPNode" means the commercial pricing nodes established by the
          Transmission Provider for both Unit 1 and Unit 2 (as of the Effective
          Date, such nodes are WEC.PTBHGB1 (for Unit 1) and WEC.PTBHGB2 (for
          Unit 2)); provided, that if this Agreement only applies to one Unit,
          then the CPNode shall be the applicable commercial pricing node for
          such Unit.
      
          
          
          3
      
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          "CPT" or "Central Prevailing Time" means, with respect to any
          particular time in question, Central Standard Time or Central Daylight
          Time in effect at such time.
      
          "Credit Rating" means, with respect to an entity, the rating assigned
          to such entity's unsecured, senior long-term debt obligations (not
          supported by third party credit enhancements) by Moody's or S&P or, in
          the event such rating is not assigned, then the issuer rating assigned
          by S&P or Moody's with respect to such entity.
      
          "CT" means the existing No. 2 fuel oil-fired combustion turbine
          generator located at the Facilities site.
      
          "Delivered Energy" means, for any period of time, the sum of the Net
          Energy Output plus Replacement Energy delivered to the Delivery Point
          and confirmed by Buyer in accordance with the scheduling provisions in
          Exhibit H, part (b)(iii).
      
          "Delivered Energy Charge" has the meaning set forth in Section 3.1(a).
      
          "Delivered Energy Payment" has the meaning set forth in Section
          3.1(a).
      
          "Delivery Point" has the meaning set forth in Section 2.7.
      
          "Derate" means an event or condition which causes the Net Energy
          Output to be less than ninety-five percent (95%) of the associated
          Buyer's Capacity Amount (excluding the CT Capacity), or causes the
          MISO FinSched to be less than ninety-five percent (95%) of the
          associated Buyer's Capacity Amount (excluding the CT Capacity), unless
          such event or condition resulting in a reduction in the MISO FinSched
          was agreed to by Buyer, excluding any ramp up or ramp down of the
          Facilities associated with Seller's nuclear fuel management procedures
          scheduled in accordance with Section 5.1.
      
          "Derate Notice"
      
          has the meaning set forth in
          Section 5.2
          .
      
          
      
          "Designated Network Resource" or "DNR" means a resource deliverable to
          the Buyer's Network Load designated as a "Network Resource" as defined
          under the applicable Transmission Provider Tariff and related
          documents. The term DNR shall apply to the Facilities and to the
          resource selected by Seller, and accepted by MISO as a WEPCO
          Designated Network Resource, and accepted by the applicable regional
          reliability council, to provide Replacement Capacity for Buyer in
          accordance with the terms and conditions of this Agreement.
      
          "Dispatch Authority Function" means the Buyer's Trading and Operations
          Group in its Wholesale Energy & Fuels department.
      
          "Dispute" means any controversy, claim or dispute of whatsoever
          nature, arising out of or relating to this Agreement or the making,
          validity, execution, performance, discharge, termination, or breach
          hereof.
      
          "Dispute Resolution Procedures" means the dispute resolution
          procedures for Disputes set forth in Article XIX.
      
          
          
          4
      
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          "Early Termination Date" has the meaning set forth in Section 10.2.
      
          "Effective Capacity Requirements" has the meaning set forth in the
          definition of Accredited Capacity.
      
          "Effective Date" means the Closing Date, as defined in the Asset Sale
          Agreement.
      
          "Electric Reliability Organization" or "ERO" has the meaning set forth
          in 18 C.F.R. S 39.1.
      
          "Energy" means electric energy expressed in MWh.
      
          "Event of Default" has the meaning set forth in Section 10.1.
      
          "Facilities" means Point Beach excluding any Uprate not accepted by
          Buyer pursuant to Section 2.9(a); provided, that after the Unit 1
          Termination Date (if not the same as the Unit 2 Termination Date), the
          term "Facilities" shall exclude Unit 1 for the remainder of the Term
          of this Agreement; provided, further, that if for any reason this
          Agreement terminates earlier with respect to Unit 2, but not Unit 1,
          then after the Unit 2 Termination Date, the term "Facilities" shall
          exclude Unit 2 for the remainder of the Term of this Agreement.
      
          "FASB" means the Financial Accounting Standards Board.
      
          "FERC" means the Federal Energy Regulatory Commission.
      
          "Financial Bilateral Transaction" has the meaning ascribed to such
          term by the Transmission Provider in the applicable Transmission
          Provider Tariff or related documents, as such relevant meaning or
          relevant term may be modified from time to time.
      
          "Force Majeure" means any cause or occurrence beyond the reasonable
          control of and without the fault or negligence of the Party claiming
          Force Majeure which causes the Party to be unable to, or otherwise
          materially impairs its ability to, perform its obligations hereunder
          and which by the exercise of reasonable foresight such Party could not
          have been reasonably expected to avoid and could not have been
          prevented or avoided by such Party through the exercise of reasonable
          diligence. Subject to the foregoing, such causes or occurrences may
          include any acts of God; acts of the public enemy; wars; blockades;
          insurrections; riots; epidemics; landslides; lightning; earthquakes;
          fires; storms; floods; washouts; civil disturbances; strikes,
          lockouts, work stoppages or other labor actions that affect the U.S.
          electric generation or utility industry as a whole, including
          operation of the Facilities; shutdowns or reductions in the
          Facilities' output or capabilities required, caused by, or related to
          directives, orders or requirements of the NRC or any other Governing
          Authority that affect the U.S. nuclear generation industry as a whole;
          shutdowns or reductions in the Facilities' output directly related to
          the Calculation Reconstitution Program, but only if such shutdown or
          reduction occurs 12 months after the Effective Date; and any other
          cause, whether of the kind herein enumerated or otherwise, which,
          despite all reasonable efforts of such Party to prevent or mitigate
          its effects, prevents or delays the performance of a Party, or
          prevents the obtaining of the benefits of performance by the other
          Party, and is not within the control of the Party claiming excuse. The
          following acts, events
          
          
      
          5
      
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          or causes shall in no event constitute an event of Force Majeure: (i)
          any lack of profitability to a Party or any losses incurred by a Party
          or any other financial consideration of a Party; (ii) unavailability
          of funds or financing; (iii) an event caused by conditions of national
          or local economics or markets; (iv) any failure of equipment which is
          not itself directly caused by an event which would otherwise
          independently constitute a Force Majeure; (v) strikes, lockouts, work
          stoppages or other labor actions that affect the operation of the
          Facilities but do not affect the U.S. electric generation or utility
          industry as a whole; (vi) changes in market conditions that affect the
          cost or availability of equipment, materials, supplies or services,
          including the Facilities' fuel supply or the cost of power from
          resources other than the Facilities; (vii) failures of third parties,
          unless such failures are caused by an event which would otherwise
          constitute a Force Majeure event hereunder, if experienced by a Party
          and the Party claiming Force Majeure is relying on such third party in
          order to discharge any of such Party's duties or obligations
          hereunder; (viii) climatic temperature and humidity conditions; and
          (ix) shutdowns or reductions in the Facilities output or capabilities
          required, caused by, or related to, directives, orders or requirements
          of the NRC or any other Governing Authority that do not apply to the
          U.S. nuclear electric generation industry as a whole. The curtailment,
          unavailability or interruption of transmission service shall not
          constitute a Force Majeure event unless the Transmission Provider
          directs the curtailment or interruption of transmission service over
          all, or substantially all, of the transmission system owned and/or
          controlled by the Transmission Owner in the State of Wisconsin.
      
          "GAAP" means generally accepted accounting principles in the United
          States, as in effect from time to time, consistently applied, except
          as to consistency for mandated changes imposed by appropriate
          accountancy administrative bodies (including the FASB) or regulatory
          authorities.
      
          "Generation Offer" has the meaning ascribed to such term by MISO in
          the applicable Transmission Provider Tariff or related documents, as
          such relevant meaning or relevant term may be modified from time to
          time.
      
          "Governing Authority" means the federal government of the United
          States, and any state, county or local government, and any regulatory
          department, body, political subdivision, commission, bureau,
          administration, agency, instrumentality, ministry, court, judicial or
          administrative body, taxing authority, or other authority of any of
          the foregoing (including, without limitation, any corporation or other
          entity owned or controlled by any of the foregoing), MISO, ERO, NRC,
          any other regional reliability council, the Transmission Provider and
          any other regional transmission organization, in each case having
          jurisdiction over any or all of the Parties, the Facilities or the
          Transmission Provider's transmission system, whether acting under
          express or delegated authority.
      
          "Gross Receipts Tax"
      
          means the tax imposed by the State of Wisconsin pursuant to Sections
          76.28 and 76.29 of the Wisconsin Statutes as amended.
      
          
      
          "Gross Receipts Tax Payment"
      
          has the meaning set forth in
          Section 20.3(d)
          .
      
          
      
          "Indemnified Person" has the meaning set forth in Section 12.5.
      
          
          
          6
      
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          "Indemnifying Person" has the meaning set forth in Section 12.5.
      
          "Insufficient Credit Status" means, as to Buyer or Seller, or if Buyer
          is providing collateral in the form of a guaranty, the Buyer's
          Guarantor, or if Seller is providing collateral in the form of a
          guaranty, Seller's Guarantor, that: (a) such Person does not have a
          Credit Rating or such Person's Credit Rating is not Investment Grade
          or is determined by either Moody's or S&P to not be Investment Grade;
          or (b) the maturity of any indebtedness of such Person which in the
          aggregate exceeds one hundred million dollars ($100,000,000) or five
          percent of the shareholders' equity of such Person, whichever is less,
          is accelerated by the holder or holders thereof as a result of a
          default thereunder, or such holders have the right to accelerate such
          indebtedness (without regard to any requirements relating to notice,
          the passage of time or both) as a result of a payment default or a
          default with respect to a failure by Buyer or Seller (or Buyer's
          Guarantor or Seller's Guarantor), as applicable, to comply with a
          financial covenant.
      
          "Interconnection Agreement" means the Generation Transmission
          Interconnection Agreement by and between Buyer and ATC dated as of
          November 1, 2000, as revised by the Second Revision issued on January
          2, 2002.
      
          "Investment Grade" means a Credit Rating of at least BBB- by S&P and
          Baa3 by Moody's; provided, that if an entity is rated by only S&P or
          Moody's, as applicable, then such Credit Rating shall be at least the
          rating stated above by S&P or Moody's, as applicable. In the event
          that a Credit Rating from one of S&P or Moody's is at or above
          Investment Grade and the Credit Rating from the other rating agency is
          below Investment Grade with respect to a Person or its obligations,
          then such Person and its obligations shall be considered to not have
          an Investment Grade Credit Rating.
      
          "Law" means any federal, state and local laws, statutes, regulations,
          rules, codes, orders, judgments, decrees or ordinances enacted,
          adopted, issued or promulgated by any Governing Authority, including
          any Authorizations issued to a Party or by which a Party or the
          Facilities may be bound (including any of the foregoing pertaining to
          electrical, building, zoning, environmental and occupational safety
          and health requirements) or any published directive, guideline,
          requirement or other governmental restriction which has the force of
          law or any determination by, or interpretation of, any of the
          foregoing by any Governing Authority, binding on a given Person in a
          relevant jurisdiction.
      
          "Letter of Credit" means an irrevocable standby letter of credit,
          substantially in the form attached hereto as Exhibit F and which (i)
          is issued by a U.S. commercial bank or the U.S. branch of a foreign
          bank with total assets of at least ten billion U.S. dollars
          ($10,000,000,000) having a Credit Rating of A- or higher by S&P or A3
          or higher by Moody's; and (ii) permits presentation for drawing at a
          bank located in Milwaukee, Wisconsin.
      
          "LMP" means the "Locational Marginal Price" at the relevant CPNode for
          the relevant hour(s) and day(s) for the MISO Day-Ahead Market or MISO
          Real-Time Market, as applicable, as posted by the Transmission
          Provider.
      
          
          
          7
      
          --------------------------------------------------------------------------------
      
          
          
          
          
          
          
      
          "Local Capacity Resource" has the meaning set forth in the
          Transmission Provider Tariff.
      
          "MAIN Guide No. 3A Standards" means the standards attached as Exhibit
          I.
      
          "Maintenance Schedule" has the meaning set forth in Section 5.1(a).
      
          "Metering Devices" has the meaning set forth in Section 6.1(a).
      
          "MISO" means the Midwest Independent Transmission System Operator,
          Inc.
      
          "MISO Day-Ahead Market" means the Day-Ahead Market as defined in the
          applicable Transmission Provider Tariff.
      
          "MISO FinSched" means a Financial Bilateral Transaction for a given
          Operating Day that is subsequently settled in the MISO Day Ahead
          Market with a source point, delivery point and sink point at the
          CPNode.
      
          "MISO FinSched Energy" means the quantity of MWh Scheduled on MISO
          FinScheds for a given Operating Day.
      
          "MISO Market" means the MISO Real-Time Market or the MISO Day-Ahead
          Market.
      
          "MISO Market Time" means Eastern Standard Time or as otherwise set
          forth in the Transmission Provider Tariff.
      
          "MISO Real-Time Market" means the Real-Time Market as defined in the
          applicable Transmission Provider Tariff.
      
          "Module E" has the meaning set forth in the definition of Accredited
          Capacity.
      
          "Moody's" means Moody's Investor Services, Inc.
      
          "MW" means a megawatt.
      
          "MWh" means megawatt-hours.
      
          "NEIL" means Nuclear Electric Insurance Limited.
      
          "NERC" means the North American Electric Reliability Council.
      
          "Net Energy Output" means, for any hour during a Billing Cycle and
          with respect to the Facilities (excluding the CT), (a) if the
          Facilities (excluding the CT) are operating, total Energy output of
          the Facilities (excluding the CT) as measured at the Delivery Point,
          less Station Service Load (provided such Station Service Load is
          netted as provided in Section 2.12), which amounts shall be calculated
          at the applicable Metering Devices, multiplied by a fraction, the
          numerator of which is the Capacity of the Facilities (excluding the
          CT) and the denominator of which is the sum of (i) the Capacity of the
          Facilities (excluding the CT) and (ii) the Capacity of any Uprate not
          accepted by Buyer pursuant to Section 2.9(a) (provided that Net Energy
          Output can in no event be less than zero), or (b) if the Facilities
          (excluding
          
          
          
      
          8
      
          --------------------------------------------------------------------------------
      
          
          
      
          
          the CT) are not operating, zero. For the avoidance of doubt, all
          Energy generated by the Units must first satisfy Buyer's Energy Amount
          before any Energy from the Units is made available to third parties.
      
          "Net Worth" means the dollar value calculated by subtracting
          liabilities from total assets (excluding goodwill and other intangible
          assets described in FASB Statement 142) as such terms are determined
          in accordance with GAAP.
      
          "Network Load" has the meaning set forth in the Transmission Provider
          Tariff.
      
          "Non-Defaulting Party" has the meaning set forth in Section 10.2.
      
          "Notice Time" means the time no later than two (2) hours prior to the
          deadline for submission to the Transmission Provider of Generation
          Offers for the next Operating Day.
      
          "NRC" means the United States Nuclear Regulatory Commission.
      
          "Off-Peak" means all hours that are not On-Peak hours.
      
          "Offer" has the meaning given such term in Section 2.10.
      
          "On-Peak" means hour ending 0700 CPT through hour ending 2200 CPT,
          Monday through Friday, excluding NERC holidays.
      
          "Operating Contact" has the meaning set forth in Section 14.2.
      
          "Operating Day" has the meaning ascribed to such term by MISO in the
          applicable Transmission Provider Tariff or related documents, as such
          relevant meaning or relevant term may be modified from time to time.
      
          "Party" has the meaning set forth in the preamble hereto.
      
          "Peak Adjustment Payment" has the meaning set forth in Section 3.2.
      
          "Peak Period" has the meaning set forth in Exhibit G.
      
          "Performance Test" has the meaning set forth in Section 5.3(d)(ii).
      
          "Permitted Assignee" has the meaning set forth in Section 18.2.
      
          "Person" means any legal or natural person, including any individual,
          corporation, partnership, limited liability company, joint stock
          company, association, joint venture, trust, Governing Authority or
          international body or agency, or other entity.
      
          "Planned Uprate" means the extended power uprate, based on licensing
          and engineering evaluations completed by Westinghouse Electric Company
          (nuclear steam supply system supplier for Point Beach), Stone &
          Webster Engineering Corporation, and Siemens-Westinghouse
          (turbine-generator original equipment manufacturer), designed to
          
          
          
      
          9
      
          --------------------------------------------------------------------------------
      
          
          
      
          
          increase the reactor thermal output of each Unit by approximately 8.6%
          (or approximately 45 MWe per Unit).
      
          
      
          "Point Beach" has the meaning given such term in the second recital to
          this Agreement.
      
          "Prime Rate" means, for any period, the rate per annum expressed as a
          daily percentage, in effect on the first day of such period, as
          published from time to time in the money rates section of The Wall
          Street Journal representing the base rate on corporate loans posted by
          at least seventy-five percent (75%) of the nation's thirty (30)
          largest banks. If for any reason such rate is not available, "Prime
          Rate" means the rate per annum which JPMorgan Chase Bank announces in
          New York from time-to-time as its prime or base lending rate for
          corporate customers.
      
          "Proprietary Information" has the meaning set forth in Section 16.2.
      
          "Prudent Utility Practice" means any applicable practices, methods and
          acts engaged in or approved by a significant portion of (a) as to
          Seller, the nuclear power electric generating industry in the United
          States of America, or (b) as to Buyer, the electric utility industry
          in the United States of America, during the relevant time period, or
          the practices, methods and acts which, in the exercise of reasonable
          judgment by a prudent nuclear operator (or prudent utility operator,
          if applicable to Buyer) in light of the facts known or which should
          reasonably have been known at the time the decision was made, could
          have been expected to accomplish the desired result consistent with
          good business practices, reliability, safety, expedition and the
          requirements of any Governing Authority having jurisdiction. "Prudent
          Utility Practice" is not intended to be limited to the optimum
          practice, method or act to the exclusion of all others, but rather to
          the acceptable practices, methods or acts generally accepted (a) as to
          Seller, by the nuclear power electric generating industry in the
          United States of America or (b) as to Buyer, by the electric utility
          industry in the United States of America.
      
          "PSCW" means the Public Service Commission of Wisconsin.
      
          "Reactive Power" means the reactive power capability of the Facilities
          as set forth in the Interconnection Agreement.
      
          "Related Entity" has the meaning set forth in Section 18.2(c).
      
          "Replacement Capacity" means, at any time, Accredited Capacity
          supplied to Buyer by Seller from any DNR (other than the Facilities)
          or from any other generation resource satisfying the requirements of a
          Local Capacity Resource associated with Buyer's Network Load (other
          than the Facilities) to fulfill, in whole or in part, Seller's
          obligation to supply Accredited Capacity under this Agreement.
          Replacement Capacity, when combined with Accredited Capacity from the
          Facilities, shall not exceed the Buyer's Capacity Amount. In addition,
          Replacement Capacity shall (a) not be committed for sale to any third
          party, and (b) be accredited at all times to serve Buyer's Capacity
          requirements.
      
          "Replacement Energy" means, at any time, Energy supplied to Buyer by
          Seller from any resource other than the Facilities to fulfill, in part
          or in whole, Seller's obligation hereunder
          
          
          
      
          10
      
          --------------------------------------------------------------------------------
      
          
          
      
          
          to deliver Energy which, when combined with the Net Energy Output of
          the Facilities, shall not exceed the Buyer's Energy Amount applicable
          to Buyer at such time under this Agreement.
      
          "S&P" means Standard & Poor's Ratings Group (A Division of The
          McGraw-Hill Companies).
      
          "SCADA" means supervisory, control and data acquisition technology and
          equipment.
      
          "Schedule", "Scheduled" or "Scheduling" means the actions of Seller,
          Buyer and/or their designated representatives, of notifying,
          requesting and confirming to each other and to any third party the
          quantity and type of Energy to be delivered on any Operating Day (a)
          submitted to MISO by Seller as Seller's Generation Offer from the
          Facilities for a relevant Operating Day during the Term pursuant to
          this Agreement, or (b) submitted to MISO by Seller and accepted by
          Buyer as a Financial Bilateral Transaction for a relevant Operating
          Day during the Term pursuant to this Agreement.
      
          "Scheduled Maintenance Outage" has the meaning set forth in
          Section 5.1(a).
      
          "Seller" has the meaning set forth in the preamble hereto.
      
          "Seller Performance Security" means the performance security required
          to be posted by Seller pursuant to Section 8.1.
      
          "Seller's Guarantor" means a Person that, at the time of the execution
          and delivery of the Seller's Guaranty, is a direct or indirect owner
          of Seller and (a) has an Investment Grade Credit Rating and a
          consolidated Net Worth of at least five hundred million dollars
          ($500,000,000.00); or (b) is reasonably acceptable to Buyer as having
          a verifiable creditworthiness and Net Worth sufficient to secure
          Seller's Guarantor's obligations under the Seller's Guaranty.
      
          "Seller's Guaranty" has the meaning set forth in Section 8.1.
      
          "Senior Executives" has the meaning set forth in Section 19.2.
      
          "Senior Financial Officer" means an officer of Seller or of an
          Affiliate of Seller having financial and accounting expertise
          reasonably satisfactory to Buyer.
      
          "Station Service Load" means all electric service requirements used in
          connection with the operation and maintenance of the Facilities and
          any improvements thereto, including auxiliary, stand-by, supplemental,
          back-up maintenance and interruptible power.
      
          "Target Capacity Factor" means 0.9700.
      
          "Tax" means (i) any tax (including but not limited to franchise tax),
          charge, fee, levy or other assessment imposed by any Governing
          Authority and based on or measured with respect to net income or
          profits, including any interest, penalties or additions attributable
          or imposed with respect thereto, and (ii) any other tax, charge, levy,
          fee or other assessment
          
          
      
          11
      
          --------------------------------------------------------------------------------
      
          
          
      
          
          
          imposed by any Governing Authority, including any transfer, gross
          receipts, sales, use, service, occupation, ad valorem, property,
          payroll, personal property, excise, severance, premium, stamp,
          documentary, license, registration, social security, employment,
          unemployment, disability, environmental (including but not limited to
          taxes under Section 59A of the Internal Revenue Code of 1986), add-on,
          value added, withholding (whether payable directly or by withholding
          and whether or not requiring the filing of a tax return therefor),
          commercial rent and occupancy tax, and (iii) any estimated tax,
          deficiency assessment, interest, penalties and additions to tax or
          additional amounts in connection with any of the foregoing, imposed by
          any Governing Authority; provided, that "Tax" does not include any
          Gross Receipts Tax.
      
          "Term" means the period from and after the Effective Date to and
          including the date and time of the later of the Unit 1 Termination
          Date or the Unit 2 Termination Date.
      
          "Transferee" has the meaning set forth in Section 16.1.
      
          "Transferor" has the meaning set forth in Section 16.1.
      
          "Transmission Owner" means ATC.
      
          "Transmission Provider" means MISO with respect to its function as the
          regional transmission organization and/or with respect to its function
          as market operator of the MISO Market, as applicable; in the event
          either of such functions is performed by a separate entity,
          "Transmission Provider" shall refer to such entity as and where
          applicable in this Agreement.
      
          "Transmission Provider Tariff" means the "Open Access Transmission and
          Energy Market Tariff for the Midwest Independent Transmission System
          Operator, Inc.," or any tariff of a successor to the MISO, and any
          related procedures or rules published by the Transmission Provider,
          including the "Business Practice Manual" related thereto.
      
          "Unit" means Unit 1 or Unit 2.
      
          "Unit 1" means Point Beach Nuclear Plant Unit 1 and related facilities
          as more specifically described in the Asset Sale Agreement.
      
          "Unit 1 Termination Date" has the meaning set forth in Section 13.1.
      
          "Unit 2" means Point Beach Nuclear Plant Unit 2 and related facilities
          as more specifically described in the Asset Sale Agreement.
      
          "Unit 2 Termination Date" has the meaning set forth in Section 13.1.
      
          "Unscheduled Outage" means any Derate of the Facilities other than a
          Scheduled Maintenance Outage.
      
          
          
          12
      
          --------------------------------------------------------------------------------
      
          
          
          
          
          
          
      
          "Uprate" means, with respect to each Unit, an increase in the maximum
          thermal power level at which such Unit may operate under its NRC
          license as such license may be amended after the date hereof.
      
          "VAR" or "VARs" means Volt-Amps-Reactive, a measure of reactive power.
      
          "Variable Interest Entity" or "VIE" has the meaning set forth in the
          FASB Interpretation No. 46 (Revised December 2003) as issued and
          amended from time to time by FASB.
      
          "Weekly Schedule" has the meaning set forth in Section 2.4(a).
      
          "Wisconsin Energy Group" means the collective group of companies
          identified as affiliates in the most recent Form 10-K filed at the
          U.S. Securities and Exchange Commission by Wisconsin Energy
          Corporation.
      
          "Worker's Compensation Laws" means all Laws relating to
          employment-related accidents and diseases and the benefits, insurance
          and other compensation required in relation thereto.
      
          1.2.   Rules of Interpretation
      
          In this Agreement and in any Appendices, Exhibits or Schedules
          attached hereto, except to the extent that the context requires
          otherwise:
      
           a. The Table of Contents and the headings of the Articles and
              Sections herein have been inserted as a matter of convenience for
              reference only and shall not control or affect the meaning or
              construction of any of the terms or provisions hereof;
          
              
          
           b. The singular includes the plural and the masculine includes the
              feminine and neuter unless the context requires otherwise;
          
              
          
           c. References to any document, agreement or Law, including this
              Agreement, shall be deemed to include references to (i) all
              appendices, exhibits, and schedules attached thereto and (ii) such
              document, agreement or Law as amended, modified, supplemented,
              replaced or restated from time to time in accordance with its
              terms (if applicable) and (where applicable) subject to compliance
              with the requirements set forth therein;
          
              
          
           d. The Exhibits hereto are incorporated herein by this reference and
              are intended to be a part of this Agreement; provided, however,
              that in the event of a conflict between the terms of an Exhibit
              and the terms of the remainder of this Agreement, the terms of the
              remainder of the Agreement shall take precedence;
          
              
          
           e. References to "Articles," "Sections," clauses, "Paragraphs,"
              "Appendices," "Exhibits," or "Schedules," are to articles,
              sections, clauses, paragraphs, appendices, exhibits or schedules
              of this Agreement;
          
              
          
           f. All references to a particular Person shall include a reference to
              such Person's successors and permitted assigns;
          
              
          
           g. The words "herein," "hereof" and "hereunder" shall refer to this
              Agreement as a whole and not to any particular section or
              subsection of this Agreement; the
              
              
              13
              
              --------------------------------------------------------------------------------
              
              
              
              words "include," "includes" or "including" shall mean "including,
              but not limited to;"
          
              
          
           h. The term "day" shall mean a calendar day commencing at 12:00 a.m.
              CPT and whenever an event is to be performed or a payment is to be
              made by a particular date and the date in question falls on a day
              that is not a Business Day, the event shall be performed or the
              payment shall be made on the next succeeding Business Day; the
              term "week" shall mean a seven consecutive day period; the term
              "month" shall mean a calendar month; provided, that when a period
              measured in months commences on a date other than the first day of
              a month, the period shall run from the date on which it starts to
              the corresponding date in the next month and, as appropriate, to
              succeeding months thereafter; and the term "year" shall mean a
              Calendar Year; and
          
              
          
           i. All monetary references contained herein refer to U.S. dollars.
      
          
      
          1.3   Accounting Terms
      
          All accounting terms used herein shall be construed in accordance with
          GAAP unless the context or use requires a different interpretation.
      
          1.4   Legal Representation
      
          This Agreement was negotiated and prepared by both Parties with the
          advice of counsel to the extent deemed necessary by each Party; the
          Parties have agreed to the wording of this Agreement; and none of the
          provisions hereof shall be construed against one Party on the ground
          that such Party is the author or drafter of this Agreement or any part
          hereof.
      
          ARTICLE II: PURCHASE OF CAPACITY, ENERGY, AND
          ANCILLARY SERVICES
      
          2.1   Capacity Sale and Purchase
      
          Subject to the terms and conditions of this Agreement, Seller agrees
          to sell and supply to Buyer, and Buyer agrees to accept and purchase
          from Seller, all Accredited Capacity (i) from the Facilities for the
          duration of the Term and (ii) associated with Replacement Capacity
          that Seller supplies to Buyer pursuant to the terms of this Agreement.
          Furthermore, except as otherwise specifically provided for herein,
          Seller shall not sell or commit to sell the Capacity of the Facilities
          during the Term to any party other than Buyer.
      
          2.2   Energy Sale and Purchase
          
          
      
       1. Subject to the terms and conditions of this Agreement, for the
          duration of the Term, Seller shall sell and deliver to Buyer at the
          Delivery Point, and Buyer shall accept and purchase, (i) the Net
          Energy Output and (ii) all Replacement Energy that Seller delivers to
          Buyer pursuant to the terms of this Agreement. The amount of all
          Energy sold to Buyer as Scheduled by Seller and purchased by Buyer
          from Seller as confirmed by Buyer in accordance with Exhibit H, for
          any period of time, shall be the aggregate amount of Delivered Energy
          for such period of time. Furthermore, except as otherwise specifically
          provided for herein, Seller shall not
          
          
          14
          
          --------------------------------------------------------------------------------
          
          
          
          sell or commit to sell the Net Energy Output during the Term to any
          party other than Buyer.
      
          
      
       2. The Parties acknowledge and agree that any increases in Capacity,
          Energy or Ancillary Services from the Facilities (excluding the Energy
          (and Ancillary Services related thereto) from the CT), whether due to
          changes in ambient conditions or otherwise (other than that
          attributable to Uprates not accepted by Buyer in accordance with
          Sections 2.9(a) or (b), as applicable), are included in the Buyer's
          Capacity Amount and Net Energy Output to be provided hereunder.

      

      2.3   Ancillary Services
      
      

 I.   The sale of Capacity and Energy hereunder from the Facilities (or in
      respect of any Replacement Capacity as provided in Section 2.4(c)) to
      Buyer shall include the Ancillary Services associated with such Capacity
      and Energy from the Facilities (or in respect of any Replacement Capacity
      as provided in Section 2.4(c)). Seller agrees to provide and/or execute
      any documents or agreements necessary to transfer to Buyer any revenue and
      any other benefits and rights received from third parties by Seller in
      providing such Ancillary Services. For all periods during which such
      documents and agreements are not in effect, Seller agrees to credit to
      Buyer such revenues as provided in Section 3.1(b) until such time as an
      agreement is executed. Further, to the extent permitted by Law, Seller
      hereby assigns and delegates to Buyer all rights and obligations Seller
      may have to reach agreement with the Transmission Provider or Transmission
      Owner, as applicable, as to the appropriate entitlement of revenues for
      Ancillary Services provided by the Facilities (or in respect of any
      Replacement Capacity as provided in Section 2.4(c)) under the applicable
      Transmission Provider Tariff and/or under the Interconnection Agreement,
      as applicable.

      

 II.  To the extent that Seller's unexcused failure to deliver Ancillary
      Services to Buyer results in any increased cost, damage or penalty
      incurred by Buyer, Seller shall reimburse Buyer for any such increased
      cost, damage or penalty within 10 Business Days of invoice receipt
      therefor. Any invoice submitted by Buyer to Seller pursuant to this
      Section 2.3(b) shall include a written statement explaining in reasonable
      detail the calculation of the amount owed by Seller. The amount of such
      cost, damages or penalty to be reimbursed shall not exceed an amount equal
      to the increased costs or penalties actually incurred by Buyer.
      Notwithstanding the preceding sentence, in the event that during the Term
      there exists a market for the purchase and sale of Ancillary Services,
      then (i) if Seller fails to provide an Ancillary Service required to be
      delivered hereunder from the Facilities, Seller shall use commercially
      reasonable efforts to provide Buyer with a replacement for such Ancillary
      Service and (ii) if Seller is unsuccessful in satisfying its obligation
      under clause (i), Seller shall reimburse Buyer for the market-clearing
      price for such undelivered Ancillary Service.

      

 III. Notwithstanding the foregoing, in no event shall Seller be required to
      reduce its Net Energy Output below the Energy associated with the Target
      Capacity Factor for the purpose of providing Ancillary Services to Buyer.

15

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2.4   Replacement Energy and Replacement Capacity

Replacement Energy. Subject to the provisions of this Agreement, Seller may
provide Buyer with Replacement Energy as set forth below in this Section 2.4(a)
during a Scheduled Maintenance Outage or an Unscheduled Outage, but only to the
extent of any associated Derate. Seller may provide Replacement Energy from a
source that differs from the DNR selected by Seller to supply Replacement
Capacity, if any.

 i.   Unscheduled Outage Replacement Energy Notices

      If the event or condition constituting the Derate is an Unscheduled
      Outage, Seller shall telephonically notify the Dispatch Authority Function
      of Seller's election in accordance with Section 2.4(a)(iii) below (to
      provide or not to provide Replacement Energy) as soon as practicable but
      no later than the Notice Time on the day following the day the Derate
      commenced with confirmation (by email or facsimile) within 24 hours.
      Seller's election shall be effective based on a "Weekly Schedule", which
      means seven consecutive days beginning at 00:00 MISO Market Time on any
      day of the week following the appropriate Notice Time and ending at 23:59
      MISO Market Time on the seventh day. Seller shall provide Buyer notice of
      its intent to continue or discontinue its Replacement Energy election no
      later than two (2) Business Days prior to the commencement of the
      applicable Weekly Schedule.

 ii.  Scheduled Maintenance Replacement Energy Notices
      
      
      
      If the event or condition constituting the Derate is a Scheduled
      Maintenance Outage, Seller shall telephonically notify the Dispatch
      Authority Function of Seller's election in accordance with Section
      2.4(a)(iii) below to provide or not to provide Replacement Energy no later
      than two (2) Business Days prior to the scheduled commencement of such
      Scheduled Maintenance Outage with confirmation (by email or facsimile)
      within 24 hours. Seller's election shall be effective based on a Weekly
      Schedule. Seller shall provide Buyer notice of its intent to continue or
      discontinue its Replacement Energy election no later than two (2) Business
      Days prior to the commencement of the applicable Weekly Schedule.

 iii. Replacement Energy Scheduling

Any Replacement Energy Scheduled hereunder shall be Scheduled in accordance with
Article IV, subject to the following: Replacement Energy may only be Scheduled
and delivered on a continuous basis in either (A) a single, fixed quantity or
(B) a quantity varied to reflect expected changes in the Net Energy Output
(e.g., changes in output or ramp rates or expected resolution of outages with
respect to the Facilities) such that the aggregate of such Replacement Energy
and the Net Energy Output will result in a single, fixed quantity.

16

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Replacement Capacity

 i.  Subject to the provisions of this Agreement, if at any time the Accredited
     Capacity of the Facilities is less than the Buyer's Capacity Amount, then
     Seller may provide Buyer with Replacement Capacity but only to the extent
     that the Accredited Capacity of the Facilities is less than the Buyer's
     Capacity Amount. In no event shall Seller provide Replacement Capacity for
     a period of less than 12 months; provided, that if the MISO market provides
     for a capacity product of less than 12 months, Seller may provide
     Replacement Capacity for such shorter period of capacity product, but in no
     event less than one month or less than the Peak Period in the event
     Accredited Capacity is unavailable for any month in the applicable Peak
     Period; provided, further, that if the applicable regional reliability
     council or any other Governing Authority requires Replacement Capacity to
     be provided for a period of time greater than as set forth in the preceding
     proviso in order for such Replacement Capacity to be deemed Accredited
     Capacity, then Seller may only provide Replacement Capacity for a period no
     less than as mandated by such Governing Authority. Seller shall notify the
     Dispatch Authority Function of the source of such Replacement Capacity as
     soon as practicable. Subject to the terms of this Agreement, if at any time
     Seller does not deliver Accredited Capacity from the Facilities or
     Replacement Capacity, in either case in an amount equal to Buyer's Capacity
     Amount, Seller shall be required to pay Buyer liquidated damages equal to
     $9,000/MW-month ("Accredited Capacity Liquidated Damages") for each
     MW-month (or portion thereof) of each such shortfall. At Buyer's election,
     Seller shall be required to pay Accredited Capacity Liquidated Damages
     within five (5) Business Days of invoice receipt therefor.
     
     

 ii. The amount, if any, by which the Accredited Capacity Liquidated Damages
     incurred in any calendar month exceed the Delivered Energy Payment due and
     payable for such month is referred to as the "Monthly Excess Accredited
     Capacity Liquidated Damages Amount". In no event shall the sum of the
     Monthly Excess Accredited Capacity Liquidated Damages Amounts accrued
     during any Calendar Year exceed $75,000,000.

c.  When supplying Replacement Capacity, to the extent there are Ancillary
Services associated with the Replacement Capacity obtained by Seller, Seller
shall supply such Ancillary Services to Buyer at no additional cost or expense
to Buyer.

2.5   Financial Transmission Rights

Buyer shall be entitled to all financial transmission rights and all other
rights and benefits with and from the Transmission Provider associated with the
Capacity, Energy and Ancillary Services being purchased from the Facilities.
Seller shall cooperate in good faith with Buyer to ensure that such financial
transmission rights and other rights and benefits are effectively assigned and
transferred to Buyer at no additional cost to Buyer. Further, Seller hereby
assigns and delegates to Buyer all rights and obligations Seller may have to
reach

17

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agreement with the Transmission Provider as to the appropriate entitlement of
such financial transmission rights under the applicable Transmission Provider
Tariff.

2.6   Title and Risk of Loss

Title to and risk of loss related to the Capacity, Energy and Ancillary Services
being purchased hereunder shall transfer from Seller to Buyer at the Delivery
Point. Seller warrants that it will deliver to Buyer such Capacity, Energy and
Ancillary Services free and clear of all liens, security interests, claims and
encumbrances or any interest therein or thereto by any Person.

2.7   Delivery Point

The "Delivery Point" for Energy (including Replacement Energy) delivered
pursuant to this Agreement is the CPNode.

2.8   Capacity Accreditation

Seller shall, at its sole cost and expense, take all reasonable actions required
to cause the Buyer's Capacity Amount and any Replacement Capacity to be
Accredited Capacity, including the satisfaction of all applicable requirements
to establish and maintain the DNR status (as defined under the applicable
Transmission Provider Tariff and acceptable to the applicable regional
reliability council and the Transmission Provider, as applicable), and including
Local Capacity Resource status in relation to Buyer's Network Load, of the
Facilities or the source of the Replacement Capacity for Buyer.

2.9   Uprates

(a)   (i) Seller shall use its commercially reasonable efforts to complete the
Planned Uprate by June 1, 2012; provided, however, that Seller shall have the
right, consistent with Prudent Utility Practice, to change the date for the
completion of the Planned Uprate so long as Seller provides Buyer with advance
written notice of such change no later than June 1, 2010 and at least two years
prior to the expected completion date of the Planned Uprate. Upon completion of
the Planned Uprate the actual Capacity increase associated with the Planned
Uprate, as determined by Performance Tests pursuant to Section 5.3(d)(ii), shall
become a part of the Buyer's Capacity Amount, and Exhibit B shall be adjusted to
include the increase in Capacity related to such Planned Uprate. The procedures
for Uprates described in Section 2.9(b) shall not apply to the Planned Uprate.
The Planned Uprate shall not be included in Delivered Energy until the
transmission upgrades, if any, required for the Planned Uprate have been
completed in accordance with the applicable transmission studies performed by
ATC and/or MISO.

    (ii) Any transmission upgrade costs to be assessed upon Seller as a direct
result of the Capacity increase of the Planned Uprate (the "Planned Uprate
Transmission Upgrade Costs") shall be reimbursed by Buyer. Buyer's payment
therefor shall be due within 10 days after Seller's actual payment of such costs
and the receipt by Buyer of an invoice for such payment together

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with documentation setting forth such Planned Uprate Transmission Upgrade Costs
in reasonable detail.

   (iii) Notwithstanding subsection (ii), Buyer may, in its discretion, by
written notice to Seller, within 120 days after receipt of notification of the
amount of such Planned Uprate Transmission Upgrade Costs to be assessed upon
Seller, decline to accept the Capacity, Energy and Ancillary Services of the
Planned Uprate under this Agreement, in which case Buyer shall not be obligated
to purchase any of such products associated with the Planned Uprate or to
reimburse Seller for any such Planned Upgrade Transmission Upgrade Costs. In the
event that Buyer declines the Planned Uprate as provided above, Seller shall
have the right to sell to any third party the incremental Capacity, Energy and
associated Ancillary Services generated at the Facilities as a direct result of
the Planned Uprate; provided, that all Energy generated by the Units must first
satisfy Buyer's Energy Amount before any Energy from the Units is made available
to third parties.

   (iv) In the event of any Uprate project proposed by Seller that consists both
of the Planned Uprate and any other Uprate, Seller shall cause one or more
transmission studies to be performed that separately identify the transmission
requirements and associated costs for the Planned Uprate and any such other
Uprate proposed by Seller. The transmission costs associated with the Planned
Uprate shall be determined based on a transmission study that assumes no other
Uprate has been or will be completed.

(b) Seller agrees to sell and Buyer agrees to purchase any Capacity, Energy and
Ancillary Services related to any Uprate (other than the Planned Uprate) upon
the same terms and conditions as provided in this Agreement, effective upon the
completion of any such Uprate; provided, however, Buyer may, by written notice
to Seller, within 120 days after receipt of notification of the amount of such
transmission costs to be assessed upon Seller, decline to purchase the Capacity,
Energy and Ancillary Services of any such Uprate that Buyer determines, in its
discretion, would either (1) cause transmission disruptions or impose
incremental transmission costs on the Buyer or (2) materially diminish the
capacity factor of the Facilities, in which case Buyer shall not be obligated to
purchase any such products from such Uprate. Unless Buyer declines such Uprate
as provided above, the Parties shall promptly adjust the Buyer's Capacity Amount
on Exhibit B to account for the Capacity of such Uprate, as determined pursuant
to Performance Tests pursuant to Section 5.3(d)(ii), to take effect upon the
completion of such Uprate. An Uprate (other than the Planned Uprate) shall not
be included as Delivered Energy until the transmission upgrades, if any,
required for such Uprate have been completed in accordance with the applicable
transmission studies performed by ATC and/or MISO. In the event that Buyer
declines any Uprate as provided above, Seller shall have the right to sell to
any third party the incremental Capacity, Energy and associated Ancillary
Services generated at the Facilities as a direct result of such Uprate not
accepted by the Buyer; provided, that all Energy generated by the Units

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must first satisfy Buyer's Energy Amount before any Energy from the Units is
made available to third parties.

(c) Notwithstanding anything to the contrary in this Agreement, changes to the
Buyer's Capacity Amount resulting from the Planned Uprate or any other Uprate
shall be conditioned upon the receipt of all requisite regulatory approvals,
applicable to such Planned Uprate or any other Uprate, by the Party to whom such
regulatory approvals apply.

(d) In the event any Uprate is not accepted by Buyer, then Net Energy Output
shall be provided as follows: (i) Buyer shall first receive Buyer's Energy
Amount; (ii) Seller shall receive an amount of Energy associated with any
unaccepted Uprate second; and (iii) if any of the Net Energy Output exceeds the
sum of (i) and (ii) above, such additional Energy shall be prorated as provided
in the definition of Net Energy Output.

2.10.   Right of First Offer

Except as otherwise specifically provided for in this Agreement, during the
Term, Seller shall not have the right to sell or otherwise transfer any
Capacity, Energy or Ancillary Services from the Facilities to another Person
(whether by way of a power purchase agreement or otherwise) without first
offering (the "Offer"), subject to all requisite regulatory approvals, such
Capacity, Energy or Ancillary Services to the Buyer at least 18 months prior to
the Unit 1 Termination Date and at least 18 months prior to the Unit 2
Termination Date. Such Offer shall be for the full output of the Unit (including
any Uprate affected during the Term), made in the form of a proposed contract to
the Buyer and shall be open for acceptance to the Buyer for a period of ninety
(90) days. In the event the Buyer accepts such Offer, the Seller and Buyer shall
proceed to the execution of such proposed contract in an expeditious manner;
provided, Buyer must procure all of its requisite regulatory approvals at least
six (6) months prior to the Unit 1 Termination Date or Unit 2 Termination Date,
as applicable, or such Offer shall be deemed to have expired.

2.11.   Reactive Power

Without limiting the general application of Section 2.3:

 a. Seller agrees that it shall not have any rights to the production or
    absorption, if applicable, of Reactive Power and that Seller shall,
    consistent with the requirements of any Governing Authority, not operate the
    Facilities to produce real power at a level or in a manner that compromises
    its ability to operate the Facilities to produce or absorb, if applicable,
    Reactive Power to maintain the output voltage or power factor at the
    applicable CPNode in any agreement governing Seller's obligation to produce
    or absorb, if applicable, Reactive Power consistent with the Interconnection
    Agreement.

    

 b. If requested by the Transmission Provider, without additional charge under
    this Agreement, Seller shall adjust Reactive Power (as so requested),
    subject to Prudent Utility Practice. As between the Parties, Buyer shall
    have the right to receive any compensation paid by any third party for
    Reactive Power (including
    
    
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    for any increases in reactive power output or capability of the Facilities
    after the Effective Date) produced or absorbed by the Facilities. Any
    disagreement about the amount of such compensation shall be resolved in
    accordance with the Dispute Resolution Procedures.

2.12.   Station Service

During any period in which any Unit is operating, Seller shall be permitted to
satisfy the Station Service Load using Energy generated by any such Unit. If
Seller is not able to self-supply Energy to satisfy Station Service Load, Seller
shall compensate Buyer for Energy to serve the Station Service Load at the MISO
Real-Time Market LMP for the appropriate CPNode, including any transmission or
settlement charges associated with such Energy, during any period of time in
which the Facilities are not operating or are not generating sufficient Energy
to meet the Station Service Load of the Facilities. In the event that any fees,
damages, penalties or transmission charges are assessed against Buyer by any
Governing Authority in connection with the Station Service Load or any Energy
obtained to serve the Station Service Load, Seller shall reimburse Buyer for
such fees, damages, penalties or transmission charges within 10 Business Days of
invoice receipt therefor. Any invoice submitted by Buyer to Seller pursuant to
this Section 2.12 shall include a written statement explaining in reasonable
detail the calculation of the amount due from Seller. As of the date of
execution of this Agreement, the Station Service Load related to each Unit is
calculated as approximately five MW. In the event such amount is materially
changed for any reason, Seller shall give Buyer prompt written notice of such
change.

2.13.   CT Capacity

The CT Capacity shall be provided by the Seller to the Buyer under this
Agreement as part of the Accredited Capacity delivered from the Facilities.
Seller shall be responsible for all costs associated with the CT in Seller's
operation and maintenance of the Facilities as provided herein, and the
operation and maintenance of the CT and the provision to Buyer of the Accredited
Capacity therefrom will not result in any additional cost to the Buyer. Seller
shall use commercially reasonable efforts to ensure that the Accredited Capacity
associated with the CT shall be at least fifteen (15) MW during the Peak Period.
Seller is responsible for all payments to (and is entitled to all revenue from)
Transmission Provider associated with the dispatch of Energy from the CT. The
Seller shall not replace or retire the CT without first giving to Buyer at least
two (2) years prior written notice.

ARTICLE III: PAYMENTS

3.1.   Purchase Payments

The amounts to be paid to the Seller by the Buyer for purchases of Capacity,
Energy and Ancillary Services under this Agreement shall be determined as
follows:

 a. Delivered Energy Payment. With respect to each Billing Cycle, Buyer shall
    make a payment to Seller equal to the sum of (i) the product of: (A) the
    applicable "Delivered Energy Charge" set forth in Exhibit A; (B) the
    applicable Delivered Energy Charge Shaping Factor set forth in Exhibit C;
    and (C) the sum of the MISO FinSched Energy (on-peak and off-peak as
    appropriate) for the Operating
    
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    Days in such Billing Cycle, and (ii) any Gross Receipts Tax Payment
    applicable to the invoice for such Billing Cycle (pursuant to Section
    20.3(d))(each, a "Delivered Energy Payment").

    

 b. Ancillary Services. The Delivered Energy Payment includes payment for any
    and all Ancillary Services received by Buyer, and no additional payment from
    Buyer in respect thereof shall be due at any time. For the avoidance of
    doubt, Seller specifically agrees that it shall not be entitled to any
    payment for reactive power under this Agreement, notwithstanding its
    obligation to operate the Facilities in accordance with Section 2.10. Any
    and all revenues Seller receives from the Transmission Provider for
    Ancillary Services from the Facilities in each Billing Cycle shall be
    credited to Buyer and offset with any other payments due from Buyer to
    Seller under this Agreement (unless otherwise directly transferred to Buyer
    as provided in Section 2.3).

    

 c. Accredited Capacity. The Delivered Energy Payment includes payment for any
    and all Accredited Capacity constituting Buyer's Capacity Amount provided to
    Buyer under this Agreement based on the aggregate amount of Delivered Energy
    for such Billing Cycle, and no additional payment from Buyer in respect
    thereof shall be due at any time. The sole purchase price for such
    Accredited Capacity shall be the Delivered Energy Payment for such Delivered
    Energy. For the avoidance of doubt, no payment shall be owed by Buyer for
    Accredited Capacity if the Delivered Energy Payment for any Billing Cycle is
    zero; provided, however, that, notwithstanding the foregoing, Seller shall
    be obligated to provide Accredited Capacity as provided in this Agreement.

3.2.   Peak Adjustment Payment

If applicable, Seller shall make a payment to Buyer as determined in accordance
with Exhibit G (each, a "Peak Adjustment Payment").

ARTICLE IV: SCHEDULING

4.1.   Scheduling

Seller shall submit its Generation Offers and Financial Bilateral Transactions
in accordance with applicable Transmission Provider rules and procedures and
must offer Unit 1 and Unit 2 in the MISO Day-Ahead Market and the MISO Real-Time
Market for dispatch as must run generation units with a dispatch minimum for
each hour equal to no less than the full expected Net Energy Output of Unit 1
and Unit 2 (consistent with the Transmission Provider Tariff). Notwithstanding
the foregoing, Seller shall have the option to not Schedule Energy from Unit 1
and/or Unit 2 in the MISO Day-Ahead Market in instances when Unit 1 and Unit 2
are being ramped up to return to service following a Scheduled Maintenance
Outage or an Unscheduled Outage; provided, however, that Seller shall hold
harmless, defend and indemnify Buyer from and against any charges or fees,
including Revenue Sufficiency Guaranty (as defined in the Transmission Provider
Tariff) charges, levied on Buyer as a result of Seller's Scheduling in the MISO
Real-Time Market. Seller shall offer the CT in the MISO Day-Ahead Market and the
MISO Real-Time Market in

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accordance with the Transmission Provider Tariff. Exhibit H includes other
scheduling provisions applicable to this Agreement.

4.2.   Failure to Schedule

If Seller fails to Schedule Energy (including Replacement Energy) in accordance
with Section 2.4(a)(iv) or Section 4.1, as applicable, and such failure is not
excused under the terms of this Agreement, then Seller shall pay to Buyer,
within five (5) Business Days of receipt of an invoice therefor, an amount equal
to (i) the MISO Day-Ahead Market LMP for such applicable period multiplied by
the Energy that Seller failed to Schedule, plus any charges, penalties, damages,
fees and other costs, including Transmission Provider charges, incurred by Buyer
resulting from such failure, minus (ii) the amount of the Delivered Energy
Payment that Buyer would have incurred under this Agreement had the Energy been
Scheduled. Any invoice submitted by Buyer to Seller pursuant to this
Section 4.2(a) shall include a written statement explaining in reasonable detail
the calculation of the amount due from Seller.

If Buyer fails to Schedule Energy (including Replacement Energy) that is
Scheduled by Seller in accordance with Exhibit H of this Agreement, and such
failure is not excused under the terms of this Agreement, then Buyer shall pay
to Seller, within five (5) Business Days of receipt of an invoice therefor, an
amount equal to (i) the amount of the Delivered Energy Payment that Seller would
have received under this Agreement had the Energy been Scheduled by Buyer, minus
(ii) the MISO Day-Ahead Market LMP for such applicable period multiplied by the
Energy that Buyer failed to Schedule, plus any charges, penalties, damages, fees
and other costs, including Transmission Provider charges, incurred by Seller
resulting from such failure. Any invoice submitted by Seller to Buyer pursuant
to this Section 4.2(b) shall include a written statement explaining in
reasonable detail the calculation of the amount due from Buyer.

ARTICLE V: MAINTENANCE AND OPERATION

    5.1.   Scheduled Maintenance

    

     a. Scheduling Procedure.
    
        Subject to subsection (b) below, Seller shall submit to Buyer a schedule
        of maintenance of the Facilities (each, a "Maintenance Schedule" and
        each item thereon a "Scheduled Maintenance Outage") for each Calendar
        Year and a projection of scheduled outages for the following four years
        thereafter no later than twelve (12) months before the beginning of any
        year (or not later than three (3) months prior to the deadline for
        submittal of any such schedule to the Transmission Provider or any other
        applicable Governing Authority, if earlier); except that within thirty
        (30) days following the Effective Date, Seller shall submit to Buyer a
        Maintenance Schedule for the remainder of the Calendar Year in which the
        Effective Date occurs and for the following Calendar Year. Each
        Maintenance Schedule shall meet the requirements set forth in Section
        5.1(b).
    
        
        
        
        
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        Within thirty (30) days of receipt of such Maintenance Schedule, Buyer
        may request reasonable modifications therein to the extent the requested
        modifications are not contrary to Prudent Utility Practice. Subject to
        subsection (b) below, Buyer and Seller shall work together to schedule
        Scheduled Maintenance Outages to meet their mutual requirements and the
        requirements of the Transmission Provider and/or Transmission Owner, it
        being understood that Buyer shall consider, among other things, its
        reserve requirements, energy delivery commitments, costs of replacement
        power and other generating resources and expected loads in requesting
        such reasonable modifications; provided, that in the event of a
        disagreement, such scheduling shall be resolved by the Administrative
        Committee. All Scheduled Maintenance Outages shall be of a duration that
        is no longer than that reasonably necessary to carry out the required
        maintenance activities. Seller shall provide notice to Buyer as soon as
        practicable but in any event no later than forty-eight (48) hours prior
        to the expected cessation of maintenance activities and shall promptly
        inform Buyer of the completion of such activities.
    
        Scheduled Maintenance Outages for the subsequent three (3) year period
        of the Maintenance Schedule may only be rescheduled within a period of
        time from 30 days prior to the projected start of such Scheduled
        Maintenance Outage to 30 days after the projected end of such Scheduled
        Maintenance Outage; provided, however, that no Scheduled Maintenance
        Outage in such subsequent three (3) year period may be rescheduled so
        that all or any portion of such Scheduled Maintenance Outage falls
        within a different Calendar Year; and provided, further, that if Seller
        experiences an extended Unscheduled Outage and desires to move a
        Scheduled Maintenance Outage into a prior or subsequent Calendar Year,
        any such rescheduling shall require the consent of Buyer, not to be
        unreasonably withheld.
    
     b. Limitations on Scheduled Maintenance Outages

             Scheduled Maintenance Outages may not occur during the Peak Period.

    5.2.   Derate Notices

    In the event of any Derate, Seller must notify the Dispatch Authority
    Function and the Balancing Authority Function telephonically of such Derate
    as soon as practicable after Seller becomes aware of the necessity or
    occurrence thereof (each, a "Derate Notice"), with written confirmation
    within 24 hours of such oral notice. During any ongoing Derate, Seller shall
    provide updates as often as practicable, but no less than daily, to the
    Dispatch Authority Function of the nature and expected duration of such
    Derate as well as the magnitude and timing of actual and expected output
    changes of the Facilities and such other information as may assist Buyer in
    assessing the reliability and expected quantity of output from the
    Facilities, and Seller shall provide the Dispatch Authority Function with
    oral notice (confirmed promptly by email or facsimile) as much prior notice
    as practicable of when the Derate is expected to be remedied.

    
    
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    5.3.Operation
    
    

 1. Operation

    

    Seller shall manage, control, operate and maintain all parts of the
    Facilities in a manner consistent with Prudent Utility Practice and the
    terms and conditions of this Agreement and the Interconnection Agreement. As
    between the Parties, Seller shall bear the sole responsibility for complying
    with all applicable Laws associated with operating the Facilities, including
    all environmental, permitting and zoning requirements in effect during the
    Term of this Agreement.

 2. Communications Protocol

    

     i.  Seller and Buyer have developed, or will develop within a reasonable
         period of time after the Effective Date, written communications
         procedures for the Facilities (the "Communications Protocol"), which
         include processes related to Seller's interface with MISO, ATC, ERO and
         other Governing Authorities, operating communications between and among
         the Dispatch Authority Function and the Balancing Authority Function
         and testing procedures. The Communications Protocol is deemed
         incorporated herein by this reference.
    
         
    
     ii. The Communications Protocol shall be reviewed by the Administrative
         Committee no less than annually and any mutually agreed changes shall
         be made. In the event the Parties are unable to agree upon any changes
         to the Communications Protocol, such disagreement shall be resolved in
         accordance with the Dispute Resolution Procedures.
    
         

 3. Authorizations

    Seller shall, at its own expense, acquire and maintain, comply with and, as
    necessary, renew and modify from time to time, any and all permits,
    licenses, approvals and other Authorizations of any Governing Authority
    required for the lawful operation and maintenance of the Facilities. Copies
    of said Authorizations shall be made available to Buyer for review upon
    Buyer's written request. Buyer shall not be liable for any violation by
    Seller of any Authorization required to be obtained by Seller pursuant to
    this Section 5.3(c).

 4. Testing

    

     i.  Notice of Testing
    
         Seller shall notify Buyer in writing at least thirty (30) days prior to
         the expected date of any Performance Test or any other testing of the
         net capability of the Facilities (including for any Uprate); provided,
         that Seller may postpone any such test until such test is able to be
         performed with prior written notice to Buyer of such postponement and
         of the date and time such test is actually to be performed. Buyer may
         have a representative present at the time of each Performance Test,
         although the failure to have such a representative present shall not
         invalidate the result of the applicable test; provided, that the above
         required notices were given.
    
         
         
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     ii. Performance Tests
    
         Seller shall perform (A) a performance test each year, on a date
         mutually agreed by the Parties, at Seller's expense, which shall
         measure the net capability of the Facilities (including the CT and any
         Uprate) and (B) a performance test as soon as practicable, consistent
         with the MAIN Guide No. 3A Standards, (I) prior to the outage during
         which an Uprate is performed but prior to any coastdown and (II)
         following start-up from an outage during which an Uprate is performed
         (each, a "Performance Test"). In addition to the required Performance
         Test, either Party may request a Performance Test at any reasonable
         time, at the expense of the Party requesting such test. All Performance
         Tests shall be conducted in accordance with testing procedures (A) to
         confirm the Accredited Capacity constituting Buyer's Capacity Amount
         (pursuant to Transmission Provider requirements) or (B) as otherwise
         mutually agreed by the Parties. For the avoidance of doubt, as of the
         execution of this Agreement the current Performance Test standards are
         the MAIN Guide No. 3A Standards.

    

 5. Other Operations Obligations

 i.   Information Requirements

      Seller shall provide Buyer with the following real-time telemetered data
      (scanned no less frequently than once every four seconds) for the duration
      of the Term: (A) net Unit output (MW and VARs), (B) status (i.e., open or
      closed) of generator breakers and generator disconnect switches, (C) MW
      and VARs at each metering point, and (D) transformer neutral currents.
      Seller shall provide Buyer with copies of any scheduling notices or
      requests submitted to the Transmission Provider concurrently with the
      submission thereof. In addition, Seller shall provide Buyer with any other
      information Buyer may reasonably request regarding the operation of the
      Facilities in order to allow Buyer to maintain reliability for Buyer's
      Network Load.

 ii.  SCADA Data

      Seller shall provide and make available to Buyer, on a real-time basis,
      all data generated by the SCADA system at the Facilities, including all
      four-second meter data.

 iii. Quality of Energy

      All Energy delivered hereunder shall be three-phase, 60 Hertz (plus or
      minus variations as may be required or allowed by the Transmission
      Provider), alternating current, at a voltage acceptable to the
      Transmission Provider, or shall otherwise comply with such other
      specifications of the Transmission Provider, regional reliability council
      or other authority responsible for the safety and reliability of the
      electric grid with authority over the Delivery Point as may be in effect
      at the time of delivery.

      
      
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 iv.  Buyer's Right of Access to Facilities

      Seller shall provide Buyer with the right to enter Seller's premises at
      the Facilities during normal business hours to (i) review records
      maintained pursuant to this Agreement, (ii) obtain information regarding
      operation of the Facilities, (iii) visually inspect the Facilities,
      (iv) observe the testing, operation and maintenance of the Facilities and
      (v) undertake any other activities reasonably necessary for Buyer to
      fulfill its rights and obligations hereunder. Buyer shall provide prior
      written notice to Seller of the date and time of such proposed entry and
      the identity of all Persons conducting such entry, which prior written
      notice shall in no event be provided less than three Business Days prior
      to the date of such entry. Seller shall schedule Buyer's entries upon
      Seller's premises at the Facilities so as to minimize any disruption of
      the operation of the Facilities due to such entries or to any activities
      carried out by Buyer at the Facilities during any such entry. Each such
      Person conducting any such entry shall observe and comply with all of
      Seller's applicable safety and security rules at all times during such
      entry, as such rules shall have been presented to such Person by Seller or
      by any operator on behalf of Seller prior to or at the time of such visit.

 v.   Maintenance of Books and Records

      Seller shall maintain at the Facilities site for a period of not less than
      five (5) years from the date of preparation thereof: (i) all measurements
      by Metering Devices of Energy delivered from the Facilities pursuant to
      this Agreement; (ii) all data and information necessary to calculate
      payments as provided in this Agreement, including invoices, receipts,
      charts, printouts, electronic media, magnetic tapes and other materials
      and documents; and (iii) an accurate and up-to-date operating log at the
      Facilities with records of: real and reactive power production from the
      Facilities for each hour, changes in operating status of the Facilities
      and scheduled outages of the Facilities. Buyer shall be permitted to
      inspect such operating log upon prior written request during normal
      business hours and copies of such log shall be provided, if requested, at
      Buyer's expense, within ten (10) days of such request.

 vi.  Interconnection

      As between the Parties, Seller shall be responsible to maintain and
      operate Seller's electric interconnection facilities in accordance with
      the Interconnection Agreement. Seller shall not permit any action or
      inaction under the Interconnection Agreement that could adversely affect
      Buyer's rights, benefits, liability or obligations under this Agreement
      and shall not consent to (unless required by a Governing Authority) any
      modification of the Interconnection Agreement that would adversely affect
      Buyer's rights hereunder without Buyer's prior written consent, such
      consent not to be unreasonably withheld. Furthermore, subject to any
      prohibitions of a Governing Authority, Seller shall:

      
      
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      (A)    promptly advise Buyer of all communications and notices to be made
      by or to Seller under the Interconnection Agreement; and

      (B)    use commercially reasonable efforts to ensure that the Transmission
      Owner's and/or Transmission Provider's planned maintenance schedules for
      the transmission system are coordinated with the Scheduled Maintenance
      Outages for the Facilities.

      ARTICLE VI: METERING

      6.1.   Metering

      

       a. The electric watt-hour meters and any other Energy measuring devices
          and equipment used for purposes of this Agreement ("Metering
          Devices"), shall at all times during the Term meet the requirements
          set by the Transmission Provider and all applicable Governing
          Authorities and as set forth in the Interconnection Agreement. Seller
          shall own, operate, maintain and replace Metering Devices, including
          those Metering Devices shown on Exhibit D, sufficient to permit an
          accurate determination of the quantity and time of delivery of Energy
          delivered to the Delivery Point. Seller's Metering Devices shall be
          used for measurements under this Agreement. Seller shall calibrate the
          Metering Devices in accordance with Prudent Utility Practice, but no
          less than once during each refueling outage on the Maintenance
          Schedule. Buyer or Buyer's representative shall have the right to be
          present during any calibration of the Metering Devices and Seller
          shall provide reasonable notice to Buyer of any such calibration.
      
       b. 
          
          The Buyer shall have the right to inspect and require a test of the
          Metering Devices (to be performed by Seller) from time to time at its
          discretion, and any inaccuracy disclosed by such tests shall be
          promptly corrected. If errors greater than one-half of one percent
          (0.5%) are discovered, the test shall be at Seller's expense. Upon
          reasonable notice, Seller shall provide the Buyer access to the
          Metering Devices at Buyer's expense during normal business hours and
          from time to time for the purposes of reading, inspecting and
          witnessing any testing of such equipment.
      
          
      
       c. If any Metering Device used to determine the amount of Delivered
          Energy is found to be in error by more than three quarters of one
          percent (0.75%), the payments for Delivered Energy made since the
          previous test of such Metering Device shall be adjusted to reflect the
          corrected measurements determined pursuant to this Article VI. The
          amount of such adjustment payment shall be equal to the total
          adjustment that would be due if the inaccurate Metering Device were
          deemed to be equally inaccurate during the entire period since the
          previous test of such Metering Device, divided by two (2); provided,
          however, that if the period of inaccuracy can be ascertained, then the
          Parties shall adjust the payments for Delivered Energy for that
          ascertained period of inaccuracy. Any amount payable as a result of
          such correction shall be paid to the Party entitled to such payment
          within thirty (30) days of notice of such correction.

      
      
      
      
      
      
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ARTICLE VII: BILLING AND PAYMENT

7.1.   Billing and Payment

 a. Seller shall send a billing statement to Buyer on or before the tenth (10th)
    day after the end of each Billing Cycle. If any net amount is due to Seller
    with respect to any such billing statement, Buyer shall pay such amount to
    Seller within ten (10) days after receipt of such billing statement. If any
    net amount is due to Buyer with respect to any such billing statement,
    Seller shall pay such amount to Buyer on or before the fifteenth (15th) day
    after the end of such Billing Cycle. The billing statement shall show
    (i) the megawatt-hours of Delivered Energy for such Billing Cycle as
    Scheduled by the Seller and confirmed by the Buyer pursuant to Exhibit H;
    (ii) the amounts due Seller for that Billing Cycle in respect of (A) the
    Delivered Energy Payment and (B) any other amounts due to Seller hereunder;
    (iii) the amounts due Buyer for that Billing Cycle in respect of (A) the
    Peak Adjustment Payment, if applicable, (unless Buyer makes the election
    provided for in Exhibit G) and (B) any other amounts due to Buyer hereunder;
    and (iv) the data reasonably pertinent to the calculation of the payments
    due to Seller or Buyer. For purposes of billing for Replacement Capacity and
    Replacement Energy, the Capacity of the resources providing Replacement
    Capacity and Replacement Energy shall be determined in accordance with
    Module E, such determination to be submitted by Seller to Buyer in
    accordance with Section 2.4. Any amounts due and payable and not paid by the
    due date will be deemed delinquent and will accrue interest at the Prime
    Rate, such interest to be calculated from and including the due date to but
    excluding the date the delinquent amount is paid in full.

    

 b. In the event of a dispute as to the amount of any bill, the disputing Party
    shall notify the other Party of the amount in dispute and Buyer or Seller,
    as applicable, shall pay to the other Party the undisputed portion of the
    bill on or prior to the due date therefor, as identified in Section 7.1(a).
    Buyer or Seller, as applicable, shall pay, with an interest charge computed
    at the Prime Rate, from and including the date payment was due to but
    excluding the date payment is made, any portion of the disputed amount
    ultimately found to be proper. In the event of a refund, Buyer or Seller, as
    applicable, shall pay, with an interest charge computed at the Prime Rate,
    from and including the date the disputed payment was made to but excluding
    the date the refund payment is made, any refund amount ultimately found to
    be due to the other Party.

    

 c. Neither the Buyer nor Seller shall have the right to challenge any billing
    statement rendered or received hereunder after a period of the longer of (A)
    two (2) years from the date such statement was rendered or (B) ten (10) days
    after the last MISO settlement statement for the last Operating Day included
    in the billing statement. In the event that any such billing statement
    depends in whole or in part upon estimated data, this two (2) year
    limitation period shall be deemed to begin on the first day of the Billing
    Cycle in which such estimated data is adjusted to actual.

    

 d. Each Party reserves to itself all rights, setoffs, counterclaims,
    recoupment, combination of accounts, liens and other remedies, rights and
    defenses which
    
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    such Party has or may be entitled to (whether by operation of law or in
    equity, under contract or otherwise). The obligations of each Party to make
    payments under this Agreement may be offset against each other, setoff or
    recouped therefrom.

ARTICLE VIII: PERFORMANCE SECURITY

8.1.   Seller Performance Security

If at any time Seller (or Seller's Guarantor) has Insufficient Credit Status,
Seller shall deliver to Buyer within two (2) Business Days following the
commencement of such Insufficient Credit Status either (a) a Letter of Credit;
(b) a guaranty from a Seller's Guarantor (substantially in the form attached
hereto as Exhibit E) (so long as such Insufficient Credit Status is not with
respect to such Seller's Guarantor) or (c) other collateral in form and
substance reasonably acceptable to Buyer, in each case in an amount equal to
$100,000,000, which amount shall escalate at 3% per annum on January 1, 2024 and
on January 1st of each year thereafter until the end of the Term; provided, that
if Seller has Insufficient Credit Status as of the date of execution of this
Agreement, then Seller shall be obligated to provide Seller Performance Security
as of the date of execution of this Agreement. Costs of a Letter of Credit
posted hereunder shall be borne by the applicant for such Letter of Credit.

8.2.   Buyer Performance Security

If at any time Buyer (or Buyer's Guarantor) has Insufficient Credit Status,
Buyer shall deliver to Seller within two (2) Business Days following the
commencement of such Insufficient Credit Status either (a) a Letter of Credit;
(b) a guaranty from a Buyer's Guarantor (substantially in the form attached
hereto as Exhibit E) (so long as such Insufficient Credit Status is not with
respect to such Buyer's Guarantor) or (c) other collateral in form and substance
reasonably acceptable to Seller, in each case in the same amount as the Seller
Performance Security; provided, that if Buyer has Insufficient Credit Status as
of the date of execution of this Agreement, then Buyer shall be obligated to
provide Buyer Performance Security as of the date of execution of this
Agreement. Costs of a Letter of Credit posted hereunder shall be borne by the
applicant for such Letter of Credit.

8.3.   Draws; Replenishments

A Non-Defaulting Party may draw upon the Buyer Performance Security or Seller
Performance Security, as applicable, following the occurrence of an Event of
Default by such other Party or pursuant to the other provisions of this
Agreement in order to recover any damages to which such Non-Defaulting Party is
entitled under this Agreement. In the event of such a draw on the Buyer
Performance Security or Seller Performance Security, as applicable, then, except
in the circumstance when the Non-Defaulting Party establishes an Early
Termination Date pursuant to Section 10.2 or this Agreement otherwise
terminates, the Defaulting Party shall within two (2) Business Days replenish
the Seller Performance Security or Buyer Performance Security, as applicable, to
the full amount required by Sections 8.1 or 8.2, as applicable.

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8.4.   Reporting

 a. Seller shall promptly notify Buyer of any Insufficient Credit Status
    relating to Seller or to Seller's Guarantor or any circumstance that results
    in Seller's failure to be in compliance with the Seller Performance Security
    requirements of this Article VIII. From time to time, at Buyer's written
    request, Seller shall provide Buyer promptly with such evidence as Buyer may
    reasonably request that any Seller Performance Security is in full
    compliance with this Agreement.

    

 b. Buyer shall promptly notify Seller of any Insufficient Credit Status
    relating to Buyer or any circumstance that results in Buyer's failure to be
    in compliance with the Buyer Performance Security requirements of this
    Article VIII. From time to time, at Seller's written request, Buyer shall
    provide Seller promptly with such evidence as Seller may reasonably request
    that Buyer and any Buyer Performance Security is in full compliance with
    this Agreement.

ARTICLE IX: FORCE MAJEURE

    9.1.   Conditions of Excuse for Seller

    If, as a result of an event of Force Majeure, Seller is rendered wholly or
    partly unable to perform its obligations under this Agreement, Seller shall
    be excused except as specifically provided elsewhere in this Agreement, from
    only that portion of its performance that is prevented by such Force Majeure
    event to the extent so prevented; provided, that:

     a. Seller gives Buyer prompt written notice, and in any event within
        twenty-four (24) hours after Seller obtains actual knowledge thereof,
        describing the particulars of the event of, and how such event qualifies
        as a, Force Majeure;
    
        
    
     b. the permitted suspension of performance is of no greater scope and of no
        longer duration than is required by the event of Force Majeure and the
        effects thereof; and
    
        
    
     c. Seller exercises its reasonable best efforts to eliminate or mitigate
        the effects of the Force Majeure condition.

    

    9.2.   Conditions of Excuse for Buyer
    
    

    If, as a result of an event of Force Majeure, Buyer is rendered wholly or
    partly unable to perform its obligations under this Agreement, Buyer shall
    be excused except as specifically provided elsewhere in this Agreement, from
    only that portion of its performance that is prevented by such Force Majeure
    event to the extent so prevented, provided that:

     a. Buyer gives Seller prompt written notice, and in any event within
        twenty-four (24) hours after the day that Buyer obtains actual knowledge
        thereof, describing the particulars of the event of, and how such event
        qualifies as a, Force Majeure;
    
        
    
     b. the permitted suspension of performance is of no greater scope and of no
        longer duration than is required by the event of Force Majeure and the
        effects thereof; and
    
        
    
        
        
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     c. Buyer exercises its reasonable best efforts to eliminate or mitigate the
        effects of the Force Majeure condition.

    

    9.3.   Burden of Proof

    The burden of proof as to whether a Force Majeure has occurred shall be upon
    the Party claiming Force Majeure.

    9.4.   Payment and Security Obligations Not Excused

    Notwithstanding anything in this Agreement to the contrary, no payment
    obligation arising under this Agreement prior to the date of an event of
    Force Majeure, and no obligation to provide Buyer Performance Security or
    Seller Performance Security, as applicable, shall be excused by such event
    of Force Majeure.

    
    
    9.5.   Time Limits
    
    

 1. If at any time during the period of Force Majeure the non-performing Party
    fails to undertake or ceases undertaking its reasonable best efforts to
    remedy its inability to perform, then the non-performing Party shall no
    longer be excused from its performance.

    

 2. Seller shall, within sixty (60) days of the occurrence of a Force Majeure
    affecting Seller's performance under this Agreement that Seller reasonably
    anticipates will last more than twelve (12) months after the commencement
    thereof, deliver to Buyer a detailed plan for the remedy of the Force
    Majeure condition, which plan shall include a detailed specification of
    Seller's proposal (including a timetable) to remedy the Force Majeure
    condition and restore the Facilities to maximum attainable operating status.

    

 3. If an event of Force Majeure has prevented Seller from performing all, or a
    significant portion of, its material obligations under this Agreement for a
    period of eighteen (18) months, Buyer may terminate this Agreement by
    written notice to Seller. Effective upon any such termination, neither Party
    shall have any continuing obligations for performance under this Agreement
    except for the satisfaction of liabilities that arose prior to such
    termination and except for those obligations which survive such termination
    in accordance with Section 22.9.
    
    

 4. Notwithstanding anything to the contrary in this Agreement, if, as a result
    of an event of Force Majeure, Buyer is rendered wholly or partly unable to
    perform its obligations under this Agreement, Seller may offer and sell the
    Energy and Ancillary Services from the Facilities to any third party until
    such time as the Buyer can resume performance under this Agreement.

9.6.   Deadline Extended

Whenever either Party is required to commence or complete any action within a
specified period, the performance of which action is excused under the terms of
this Agreement by reasons of an event of Force Majeure, such period shall be
extended by an amount equal to the duration of the period such performance was
excused by such event of Force Majeure occurring or continuing during such
period; provided, however, that the Term shall not be extended.

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ARTICLE X: EVENTS OF DEFAULT; REMEDIES

10.1.   List of Events of Default

Each of the following events, unless and to the extent expressly excused under
the terms of this Agreement, shall constitute an "Event of Default" of the
defaulting party ("Defaulting Party"), the other Party being the non-defaulting
party ("Non-Defaulting Party"):

 a. The failure of a Party to make any undisputed payment due hereunder and such
    failure shall continue for five (5) Business Days after written notice
    demanding such payment is received.

    

 b. Any representation or warranty made by a Party herein or in any certificate
    or other document delivered by such Party pursuant hereto was false or
    misleading in any material respect when made, unless such false or
    misleading representation or warranty is capable of being cured or remedied
    and (i) the representation and warranty is contained in Sections 11.1(a) and
    11.2(a) hereof and such Party shall promptly commence and diligently pursue
    action to cause such representation and warranty to become true in all
    material respects within two (2) Business Days or (ii) as to any other
    representation or warranty such Party shall promptly commence and diligently
    pursue action to cause such representation or warranty to become true in all
    material respects and does so within thirty (30) days after notice thereof
    has been given to such Party by the other Party.

    

 c. In the event a Party shall cease doing business as a going concern, shall
    generally not pay its debts as they become due or admit in writing its
    inability to pay its debts as they become due, shall file a voluntary
    petition in bankruptcy or shall be adjudicated a bankrupt or insolvent, or
    shall file any petition or answer seeking any reorganization, arrangement,
    composition, readjustment, liquidation, dissolution or similar relief under
    the present or any future federal bankruptcy code or any other present or
    future applicable Law, or shall seek or consent to or acquiesce in the
    appointment of any trustee, receiver, custodian or liquidator of such Party
    or of all or any substantial part of its properties, or shall make an
    assignment for the benefit of creditors, or such Party shall take any
    corporate action to authorize or that is in contemplation of the actions set
    forth above in this Section 10.1(c).

    

 d. In the event that within thirty (30) days after the commencement of any
    proceeding against a Party seeking any reorganization, arrangement,
    composition, readjustment, liquidation, dissolution or similar relief under
    the present or any future federal bankruptcy code or any other statute or
    Law, such proceeding shall not have been dismissed, or if, within thirty
    (30) days after the appointment without the consent or acquiescence of such
    Party of any trustee, receiver, custodian or liquidator of such Party or of
    all or any substantial part of its properties, such appointment shall not
    have been vacated or stayed on appeal or otherwise, or if, within thirty
    (30) days after the expiration of any such stay, such appointment shall not
    have been vacated.
 e. A Party fails to comply or cause compliance with the Seller Performance
    Security or Buyer Performance Security, as applicable, requirements of
    Article VIII, or
    
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    Buyer's Guarantor, if any, or Seller's Guarantor, if any, breaches any of
    its obligations under the Buyer's Guaranty or Seller's Guaranty, as
    applicable, or if any representation or warranty made by Buyer's Guarantor
    or Seller's Guarantor, as applicable, in the Buyer's Guaranty or Seller's
    Guaranty, as applicable, shall prove to be incorrect in any material respect
    when made, unless any of the foregoing is cured by the end of the next
    Business Day following receipt of a written notice from the other Party of a
    failure under this Section 10.1(e).

    

    
    
    
    
 f. The failure of Seller to provide the Buyer's employees, agents and other
    representatives reasonable access to witness testing of or to examine the
    Metering Devices after receiving notice to do so by the Buyer as required
    under this Agreement.

    

 g. Seller, or any of its employees, contractors, subcontractors, agents or
    representatives willfully adjusts the Metering Devices or the
    interconnection facilities without Buyer's written consent and which
    adjustment has the effect of falsely increasing the amounts owed by Buyer
    under this Agreement.

    

 h. A Party violates the requirements of Article XVIII through an attempted or
    purported assignment or transfer of this Agreement or an ownership interest
    in the Facilities or through a Change of Control transaction or breach of
    the terms and conditions of Section 2.10.

    

 i. A material default in performance or observance of any agreement,
    undertaking, covenant or other obligation (other than as specified in the
    other provisions of this Section 10.1) contained in this Agreement by a
    Party unless, within thirty (30) days after written notice from the other
    Party specifying the nature of such material default, such Party cures such
    default or, if such cure cannot reasonably be completed within thirty (30)
    days and if such Party within such thirty (30) day period commences, and
    thereafter diligently and continuously proceeds to cure such default, said
    period shall be extended for such further period as shall be necessary for
    such Party diligently and continuously to cure such default, provided that
    the extended cure period shall not exceed ninety (90) days from the date of
    the original notice.

10.2.Remedies

If an Event of Default occurs at any time during the Term, the Non-Defaulting
Party may, for so long as the Event of Default is continuing, subject to the
provisions of Article XIX, take one or more of the following actions:
(i) establish a date (which date shall be no more than ten (10) Business Days
after the Non-Defaulting Party delivers written notice of such date to the
Defaulting Party) on which this Agreement shall terminate (the "Early
Termination Date"), (ii) proceed by appropriate proceedings in accordance with
this Agreement at law, in equity or otherwise, to protect and enforce its right
to damages (actual or liquidated) or, where the Event of Default is one other
than the failure to pay money, equitable relief, including specific performance,
and (iii) immediately cease performance or withhold any payments, or both, due
in respect of this Agreement. For avoidance of doubt, in the event the
Non-Defaulting Party ceases performance or withholds payment as provided in
(iii) above, the Defaulting Party shall continue to be obligated to pay damages
relating to the Defaulting Party's failure to perform during such cessation or
period of withholding.

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Notwithstanding anything to the contrary in this Agreement, if an Event of
Default under Section 10.1(a) with respect to Buyer has occurred and is
continuing, Seller may offer and sell Energy and Ancillary Services from the
Facilities to any third party until such time as the Buyer can resume
performance under this Agreement. The proceeds of any such sale shall be applied
as an offset to amounts otherwise owed by Buyer to Seller under this Agreement.

10.3.   Rights of Specific Performance

In the case of an Event of Default, the Parties recognize that any remedy at law
may be inadequate because this Agreement is unique and/or because the actual
damages of the Non-Defaulting Party may be difficult to reasonably ascertain
and/or may exceed the amount of any guaranty or other collateral available to
the Non-Defaulting Party. Therefore, the Parties agree that the Non-Defaulting
Party shall be entitled to pursue an action for specific performance, and the
Defaulting Party waives all of its rights to assert as a defense to such action
that the Non-Defaulting Party's remedy at law is adequate.

10.4.   Limitation of Liability

THE PARTIES CONFIRM THAT THE EXPRESS REMEDIES AND MEASURES OF DAMAGES PROVIDED
IN THIS AGREEMENT SATISFY THE ESSENTIAL PURPOSES HEREOF FOR BREACH OF ANY
PROVISION FOR WHICH AN EXPRESS REMEDY OR MEASURE OF DAMAGES IS PROVIDED. UNLESS
EXPRESSLY HEREIN OTHERWISE PROVIDED, AND EXCEPT FOR THE PAYMENT OF LIQUIDATED
DAMAGES SPECIFIED HEREIN, NEITHER PARTY NOR THEIR AFFILIATES SHALL BE LIABLE FOR
CONSEQUENTIAL, INCIDENTAL, PUNITIVE, EXEMPLARY OR INDIRECT DAMAGES, LOST PROFITS
(WHICH DOES NOT INCLUDE RECOVERY FOR ACCRUED DELIVERED ENERGY PAYMENTS) OR OTHER
BUSINESS INTERRUPTION DAMAGES, BY STATUTE, IN TORT OR CONTRACT; PROVIDED,
HOWEVER, THAT THIS SENTENCE SHALL NOT APPLY (A) TO LIMIT THE LIABILITY OF A
PARTY WHOSE ACTIONS GIVING RISE TO SUCH LIABILITY CONSTITUTE WILLFUL MISCONDUCT
OR (B) TO ANY INDEMNITY OBLIGATION PROVIDED HEREIN. TO THE EXTENT ANY DAMAGES
REQUIRED TO BE PAID HEREUNDER ARE LIQUIDATED, THE PARTIES ACKNOWLEDGE THAT THE
ACTUAL DAMAGES ARE DIFFICULT OR IMPOSSIBLE TO DETERMINE, OTHERWISE OBTAINING AN
ADEQUATE REMEDY IS INCONVENIENT, AND THE LIQUIDATED DAMAGES DO NOT CONSTITUTE A
PENALTY AND ARE A REASONABLE ADVANCE APPROXIMATION OF THE HARM OR LOSS. THE
PARTIES FURTHER EXPRESSLY AGREE THAT NEITHER SHALL HAVE THE RIGHT, AND EACH
WAIVES ALL RIGHTS, TO BRING AN ACTION AGAINST THE OTHER (INCLUDING ANY AFFILIATE
OF THE OTHER) IN TORT OR STRICT LIABILITY FOR ANY ACT(S) OR OMISSIONS
CONSTITUTING A BREACH OR ALLEGED BREACH OF CONTRACT.

10.5.   Disclaimer of Warranties

NEITHER PARTY TO THIS AGREEMENT MAKES ANY REPRESENTATION, WARRANTY OR INDEMNITY,
EXPRESS OR IMPLIED, TO THE OTHER PARTY TO

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THIS AGREEMENT EXCEPT FOR THE REPRESENTATIONS, WARRANTIES AND INDEMNITIES
EXPRESSLY SET FORTH IN THIS AGREEMENT.

ARTICLE XI: REPRESENTATIONS, WARRANTIES AND COVENANTS

11.1.   Representations and Warranties of Buyer

Buyer makes the following representations and warranties to Seller, each of
which is true and correct as of the Effective Date:

 a. Buyer is a corporation duly organized, validly existing and in good standing
    under the Laws of the State of Wisconsin.

    

 b. Buyer possesses all requisite power and authority to enter into and perform
    this Agreement and to carry out the transactions contemplated herein. Buyer
    has all legal power and authority to own and use its properties and to
    transact the business in which it engages or proposes to engage and holds or
    will obtain on or before the time required all Authorizations necessary and
    required therefor.

    

 c. Buyer's execution, delivery and performance of this Agreement have been duly
    authorized by, or are in accordance with, its articles of incorporation and
    by-laws; this Agreement has been duly executed and delivered for it by the
    signatories so authorized; and this Agreement constitutes Buyer's legal,
    valid and binding obligation, enforceable against it in accordance with the
    terms hereof, except as such enforceability may be limited by applicable
    bankruptcy laws from time to time in effect that affect creditors' rights
    generally or by general principles of equity (regardless of whether such
    enforcement is considered in equity or at law).

    

 d. Buyer's execution, delivery and performance of this Agreement (i) will not
    result in a breach or violation of, or constitute a default under, or
    conflict with any material Authorization, or any material contract, lease or
    other agreement or instrument to which it is a party, or by which it or its
    properties may be bound or affected; and (ii) does not require any
    Authorization, or the consent, authorization or notification of any other
    Person, or any other action by or with respect to any other Person (except
    for Authorizations and consents or authorizations of other Persons already
    obtained, notifications already delivered, or other actions already taken or
    necessary or required Authorizations it will obtain on or before the time
    required).

    

 e. No suit, action or arbitration, or legal, administrative or other proceeding
    is pending or, to Buyer's knowledge, has been threatened against Buyer that
    purports to materially adversely affect the validity or enforceability of
    this Agreement or the ability of Buyer to perform its obligations hereunder,
    or that would, if adversely determined, have a material adverse effect on
    the business or financial condition of Buyer. There are no bankruptcy,
    insolvency, reorganization, receivership or other proceedings pending
    against or being contemplated by Buyer, or, to Buyer's knowledge, threatened
    against it.

    

 f. Buyer is not in breach of, in default under, or in violation of, any
    applicable Law, or the provisions of any Authorization, or in breach of, in
    default under, or in
    
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    violation of, or in conflict with any provision of any promissory note,
    indenture or any evidence of indebtedness or security therefor, lease,
    contract, or other agreement by which it is bound, except for any such
    breaches, defaults, violations or conflicts which, individually or in the
    aggregate, could not reasonably be expected to have a material adverse
    effect on the business or financial condition of Buyer or its ability to
    perform its obligations hereunder.

11.2.   Representations and Warranties of Seller

Seller makes the following representations and warranties to Buyer as of the
Effective Date:

 a. Seller is a limited liability company duly organized, validly existing and
    in good standing under the Laws of the State of Wisconsin and qualified to
    do business in the State of Wisconsin, and is the sole owner of the
    Facilities.

    

 b. Seller possesses all requisite power and authority to enter into and perform
    this Agreement and to carry out the transactions contemplated herein. Seller
    has all legal power and authority to own and use its properties and to
    transact the business in which it engages or proposes to engage and holds or
    will obtain on or before the time required all Authorizations necessary and
    required therefor.

    

 c. Seller's execution, delivery and performance of this Agreement have been
    duly authorized by, or are in accordance with, its articles of organization
    and operating agreement; this Agreement has been duly executed and delivered
    for it by the signatories so authorized; and this Agreement constitutes
    Seller's legal, valid and binding obligation, enforceable against it in
    accordance with the terms hereof, except as such enforceability may be
    limited by applicable bankruptcy laws from time to time in effect that
    affect creditors' rights generally, or by general principles of equity
    (regardless of whether such enforcement is considered in equity or at law).

    

 d. Seller's execution, delivery and performance of this Agreement (i) will not
    result in a breach or violation of, or constitute a default under, or
    conflict with any Authorization, or any contract, lease or other agreement
    or instrument to which it is a party, or by which it or its properties may
    be bound or affected; and (ii) does not require any Authorization, or the
    consent, authorization or notification of any other Person, or any other
    action by or with respect to any other Person (except for Authorizations and
    consents or authorizations of other Persons already obtained, notifications
    already delivered, or other actions already taken or necessary or required
    Authorizations it will obtain on or before the time required).

    

 e. No suit, action or arbitration, or legal, administrative or other proceeding
    is pending or, to Seller's knowledge, has been threatened against Seller
    that purports to materially adversely affect the validity or enforceability
    of this Agreement or the ability of Seller to perform its obligations
    hereunder, or that would, if adversely determined, have a material adverse
    effect on the business or financial condition of Seller. There are no
    bankruptcy, insolvency, reorganization, receivership or other proceedings
    pending against or being contemplated by Seller, or, to Seller's knowledge,
    threatened against it.

    

    
    
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 f. Seller is not in breach of, in default under, or in violation of, or in
    conflict with any applicable Law, or the provisions of any Authorization, or
    in breach of, in default under, or in violation of, or in conflict with, any
    provision of any promissory note, indenture or any evidence of indebtedness
    or security therefor, lease, contract, or other agreement by which it is
    bound, except for any such breaches, defaults, violations or conflicts
    which, individually or in the aggregate, could not reasonably be expected to
    have a material adverse effect on the business or financial condition of
    Seller or its ability to perform its obligations hereunder.

11.3.   Covenants of Seller

Seller hereby covenants and agrees that throughout the Term:

 a. No modifications to, or expansion of, the Facilities that would have a
    material adverse effect on Buyer's rights or obligations under this
    Agreement will occur without the prior written consent of Buyer, such
    consent not to be unreasonably withheld.

    

 b. Seller will not convey, sell, lease, transfer or otherwise dispose of all or
    substantially all of its business or assets, whether now owned or hereafter
    acquired, to the extent that such conveyance, sale, lease, transfer or other
    disposition would have a material adverse effect on Buyer's rights or
    obligations under this Agreement without the prior written consent of Buyer,
    such consent not to be unreasonably withheld.

    

 c. Seller shall provide to Buyer all financial statements, documents evidencing
    Seller's capital structure and any other financial information reasonably
    requested by Buyer on the Effective Date and thereafter as reasonably
    requested by Buyer. Seller shall furnish to Buyer such certifications to
    such information from a Senior Financial Officer as Buyer may reasonably
    request from time to time. Seller covenants to promptly notify Buyer
    following any determination made by Seller or its independent auditor that
    Seller constitutes a VIE.

ARTICLE XII: INDEMNITY

    12.1.   By Seller

    

     a. Seller shall defend, indemnify and hold harmless Buyer and its officers,
        directors, employees and agents from and against any and all costs,
        expense, damage, liability or loss, including reasonable attorneys'
        fees, resulting from or arising out of any Claims arising from the
        failure of Seller to fulfill its obligations under this Agreement.
    
        
    
     b. Seller shall defend, indemnify and hold harmless Buyer and its officers,
        directors, employees and agents from and against all loss, damage,
        expense, costs and liability, including reasonable attorneys' fees,
        arising from any Claims against Buyer arising from injury to or death of
        Persons or damage to or destruction of property occurring at the
        Facilities to the extent such injury, death or damage is not caused by
        the willful misconduct of Buyer, its Affiliates or Associates while on
        Seller's premises at the Facilities.
        
        

    
    
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    12.2.   Indemnification by Buyer

    Buyer shall defend, indemnify and hold harmless Seller and its officers,
    directors, employees and agents from and against all loss, damage, expense,
    costs and liability, including reasonable attorneys' fees, resulting from or
    arising out of any Claims arising from the failure of Buyer to fulfill its
    obligations under this Agreement.

    12.3.   Joint Negligence

    In the case of joint or concurring negligence or other fault of the Parties
    giving rise to a loss or Claim against either one or both of them, each
    shall have rights of contribution against the other Party in proportion to
    their comparative negligence as determined by the court trying the matter in
    dispute. Each Party shall promptly notify the other Party of the assertion
    of any Claim against which such other Party may be required to provide
    indemnity hereunder and shall give the other Party an opportunity to defend
    such Claim. These indemnification provisions are for the protection of the
    Parties hereto only and shall not establish, of themselves, any liability to
    third parties.

    12.4.Responsibility for Employees

    The Parties agree that, as between themselves, each Party shall be
    responsible for the acts and omissions of, and any Claims by, its employees
    and agents, irrespective of any limitation on the amount or type of damages,
    compensation or benefits payable by or for such Party under Workers'
    Compensation Laws, disability benefit acts or other employee benefit acts;
    provided, however, that the foregoing is not intended to create third party
    beneficiary rights in any party not a Party to this Agreement. Each Party
    shall indemnify the other Party from and against all liabilities, Claims,
    damages, suits, fines or judgments for injury or death to any third party
    and damage to or destruction of property of any third party, to the extent
    caused by such Party's employees' or agents' negligence or willful
    misconduct.

    12.5.Notice and Participation

    If any Party entitled to indemnification hereunder (the "Indemnified Party")
    intends to seek indemnification under this Article XII from any other Party
    (the "Indemnifying Party") with respect to any Claim, the Indemnified Party
    shall give the Indemnifying Party notice of such Claim upon the receipt of
    actual knowledge or information by the Indemnified Party of any possible
    Claim or of the commencement of such Claim, which period shall in no event
    be later than the lesser of (i) fifteen (15) Business Days prior to the last
    day for responding to such Claim or (ii) one-half of the period allowed for
    responding to such Claim. The Indemnifying Party shall have no liability
    under this Article XII for any Claim for which such notice is not provided,
    to the extent that the failure to give such notice prejudices the
    Indemnifying Party. The Indemnifying Party shall have the right to assume
    the defense of any such Claim, at its sole cost and expense, with counsel
    designated by the Indemnifying Party and reasonably satisfactory to the
    Indemnified Party; provided, however, that if the defendants in any such
    Claim include both the Indemnified Party and the Indemnifying Party, and the
    Indemnified Party shall have reasonably concluded that there may be legal
    defenses available to it which are different from or additional to those
    available to the Indemnifying Party, the Indemnified Party shall have the
    right to select separate counsel, at the Indemnifying Party's expense, to
    assert such legal defenses and to otherwise participate
    
    

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    in the defense of such Claim on behalf of such Indemnified Party. Should any
    Indemnified Party be entitled to indemnification under this Section 12.5 as
    a result of a Claim, and should the Indemnifying Party fail to assume the
    defense of such Claim, the Indemnified Party may, at the expense of the
    Indemnifying Party, contest (or, with or without the prior consent of the
    Indemnifying Party, settle) such Claim. Except to the extent expressly
    provided herein, no Indemnified Party shall settle any Claim with respect to
    which it has sought or intends to seek indemnification pursuant to this
    Section without the prior written consent of the Indemnifying Party, which
    consent shall not be unreasonably withheld. Except to the extent expressly
    provided herein, no Indemnifying Party shall settle any Claim with respect
    to which it may be liable to provide indemnification pursuant to this
    Section without the prior written consent of the Indemnified Party, which
    consent shall not be unreasonably withheld; provided, however, that if the
    Indemnifying Party has reached a bona fide monetary settlement agreement
    with the plaintiff(s) in any such Claim and the Indemnified Party does not
    consent to such settlement agreement, then the dollar amount specified in
    the settlement agreement, plus the Indemnified Party's legal fees and other
    costs related to the defense of the Claim prior to the date of such
    settlement agreement, shall act as an absolute maximum limit on the
    indemnification obligation of the Indemnifying Party.

    12.6.   Payment of Indemnification Claims

    The Indemnifying Party shall pay any amount due pursuant to this Article XII
    within ten (10) Business Days after the determination of the amount of any
    such indemnification, to the extent that the existence and entitlement to
    indemnification is not disputed by the Indemnifying Party, or within ten
    (10) Business Days after the conclusion of any Dispute Resolution
    Procedures, to the extent that the existence or entitlement to
    indemnification is disputed by the Indemnifying Party and is established
    pursuant to such Dispute Resolution Procedures.

    12.7.   Survival of Obligation

    The duty to indemnify under this Article XII shall continue in full force
    and effect notwithstanding the expiration or termination of this Agreement,
    with respect to any loss, liability, damage, claim or other expense based on
    facts or conditions which occurred prior to such termination.

    ARTICLE XIII: TERM

    13.1.   Term

    Subject to the terms and conditions of this Agreement, this Agreement shall
    commence on the Effective Date and, unless terminated earlier as expressly
    provided herein, shall continue in effect until 11:59:59 p.m. (CPT) on the
    day before (a) with respect to Unit 1, October 5, 2030 (the "Unit 1
    Termination Date") and (b) with respect to Unit 2, March 8, 2033 (the "Unit
    2 Termination Date"); provided, however, that in the event that the Unit 1
    Termination Date or Unit 2 Termination Date is scheduled to fall during any
    Peak Period, the Unit 1 Termination Date or Unit 2 Termination Date, as
    applicable, shall be extended until the day after the end of such Peak
    Period.

    
    
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    13.2.   Termination

    If the continued operation of a Unit pursuant to this Agreement has become
    materially adverse to Seller such that the continued operation of such Unit
    is no longer feasible, prudent or sustainable, Seller shall have the right
    to elect to permanently shut down such Unit upon written notice of
    termination of this Agreement in relation to such Unit effective on the
    later of (a) twenty-four (24) months after such notice and (b) the permanent
    shutdown of such Unit; provided, that this Agreement shall be in full force
    and effect and Seller shall continue to perform its obligations under this
    Agreement, and shall be liable for any failure to perform as provided
    herein, through such remaining effectiveness of this Agreement (as to such
    Unit and through the remainder of the Term as to the other Unit). Neither
    Party shall have any further liability upon the effectiveness of the
    termination provided above except for those obligations that by their
    express terms are to survive termination of this Agreement.

    13.3.   Effect of Termination

    Termination of this Agreement shall not terminate the rights or duties of
    either Party hereunder with respect to any obligations due to be performed
    on or before the effective date of termination.

    ARTICLE XIV: ADMINISTRATIVE COMMITTEE
    
    14.1.   Purpose

    From time to time various administrative and technical matters may arise in
    connection with the terms and conditions of this Agreement which will
    require the cooperation and consultation of the Parties and the exchange of
    information. As a means of providing for such cooperation, consultation and
    exchange, an Administrative Committee is hereby established with the
    functions described in Section 14.4. However, the Administrative Committee
    shall not (a) have the authority to amend this Agreement or (b) diminish in
    any manner the authority or responsibility of either Party as set forth in
    the various sections of this Agreement.

    14.2.   Membership

    The Administrative Committee shall have two (2) members, each an "Operating
    Contact". Within sixty (60) days after execution of this Agreement, each
    Party shall designate its Operating Contact (and alternate) and shall
    promptly give written notice thereof to the other Party. Thereafter, each
    Party shall promptly give written notice to the other Party of any change in
    the designation of its Operating Contact. All actions taken by the
    Administrative Committee must be approved by both Operating Contacts.

    14.3.   Meetings

    Meetings as are reasonably required may be called by either Operating
    Contact with as much advance notice as is practicable. Meetings may be
    attended by other representatives of the Parties.

    
    
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    14.4.   Functions

    The Administrative Committee shall have the following functions:

     a. Provide liaison between the Parties at the management level and exchange
        information with respect to significant matters arising under this
        Agreement.
    
        
    
     b. Appoint ad hoc committees, the members of which need not be the
        Operating Contacts, as necessary to perform detailed work and conduct
        studies regarding matters requiring investigation.
    
        
    
     c. Review, discuss and attempt to resolve disputes arising under this
        Agreement; provided, that the Administrative Committee shall not limit
        the provisions of Article XIX.
    
        
    
     d. Provide liaison between the Parties concerning the status and operation
        of the Facilities.

    

    14.5.   Expenses

    Each Party shall be responsible for the salary and out-of-pocket expenses of
    its Operating Contact and its other attendees. All other expenses incurred
    in connection with the performance by the Administrative Committee of its
    functions shall be allocated and paid as determined by the Administrative
    Committee.

    ARTICLE XV: NOTICES

    15.1.   Notices in Writing

    All notices or other communications which are required or permitted under
    this Agreement shall be effective if they are in writing and delivered
    personally or by certified mail (postage prepaid and return receipt
    requested), reputable overnight delivery service, or telecopy or other
    confirmable form of electronic delivery, to the following address (except as
    to notices which are required by this Agreement to be delivered to a Party's
    Operating Contact or to the Dispatch Authority Function or the Balancing
    Authority Function, which shall be delivered to such Party's Operating
    Contact or to the Dispatch Authority Function or the Balancing Authority
    Function, as the case may be):

     a. if to Seller:
    
        FPL Energy Point Beach, LLC
        700 Universe Boulevard
        Juno Beach, FL 33408
        Attention: Vice President, Business Management
        Facsimile: 561-304-5161
         
    
     b. With a copy to:
    
        FPL Energy, LLC
        
        42
    
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        700 Universe Boulevard
        Juno Beach, FL 33408
        Attention: Managing Attorney
        Facsimile: 561-691-7305
        
    
         
    
     c. if to the Buyer:

            Wisconsin Electric Power Company
             333 West Everett Street, Room A214
             Milwaukee, Wisconsin 53203
             Attention: Trading and Operations
             Facsimile: 414-221-4210

    or to such other person or address as the addressee may have specified in a
    notice duly given to the sender as provided herein.

    15.2.   Date of Notification

    All notices or communications duly delivered or mailed and postmarked to a
    Party hereto as provided in Section 15.1 shall be effective as of the date
    of receipt.

    15.3.   Oral Notice in Emergency

    Notwithstanding the provisions of Section 15.1, any notice required
    hereunder with respect to an occurrence or event requiring immediate
    attention may be made orally, by telephone or otherwise, provided such
    notice shall be confirmed in writing within 24 hours thereafter. Each Party
    shall make any such oral notice directly to the Operating Contact of the
    other Party.

    ARTICLE XVI CONFIDENTIALITY

    16.1.   Non-Disclosure to Third Parties

    Any Proprietary Information of a Party (the "Transferor") which is disclosed
    to or otherwise received or obtained by the other Party (the "Transferee")
    in connection with this Agreement is disclosed, and shall be held, in
    confidence, and the Transferee shall not publish or otherwise disclose any
    Proprietary Information to any Person for any reason or purpose whatsoever,
    or use any Proprietary Information for its own purposes (other than in
    connection with this Agreement) or for the benefit of any Person, without
    the prior written approval of the Transferor, which approval may be granted
    or withheld by the Transferor in its sole discretion; provided, however,
    that nothing herein shall limit the right of the Transferee to provide any
    Proprietary Information to any Governing Authority having jurisdiction over
    or asserting a right to obtain such information (including as part of the
    application for any Authorization); provided, that (i) such Governing
    Authority requests that such Proprietary Information be provided, and
    (ii) the Transferee promptly advises the Transferor of any request for such
    information by such Governing Authority and cooperates in giving the
    Transferor an opportunity to present objections, requests for limitation or
    a protective order, and/or requests for confidentiality or other
    restrictions on disclosure or
    
    

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    access, to such Governing Authority. Each Party's obligation to maintain
    Proprietary Information in confidence shall be deemed performed if such
    Party observes, with respect thereto, the same safeguards and precautions
    which such Party observes with respect to its own proprietary information of
    the same or similar kind.

    16.2.   Definition of Proprietary Information

    The term "Proprietary Information" means all information, written or oral,
    which has been or is disclosed by the Transferor, or by any Affiliate or
    Associate of the Transferor, or which otherwise becomes known to the
    Transferee, or to any Affiliate, Associate or other party in a confidential
    relationship with, the Transferee, and which (x) relates to matters such as
    patents, trade secrets, research and development activities, draft or final
    contracts or other business arrangements, books and records, budgets, cost
    estimates, pro forma calculations, engineering work product, environmental
    compliance, vendor lists, suppliers, manufacturing processes, energy
    consumption, pricing information, private processes, and other similar
    information, as may exist from time to time, or (y) the Transferor expressly
    designates in writing to be confidential. However, Proprietary Information
    shall exclude information falling into any of the following categories:

     a. Information that, at the time of disclosure hereunder, is in the public
        domain, other than information that entered the public domain by breach
        of this or any other agreement, or in violation of any other applicable
        Law;
    
        
    
     b. Information that, after disclosure hereunder, enters the public domain,
        other than information that entered the public domain by breach of this
        or any other agreement, or in violation of any other applicable Law;
    
        
    
     c. Information, other than that obtained from third parties, that prior to
        disclosure hereunder, was already in the recipient's possession, either
        without limitation on disclosure to others or subsequently becoming free
        of such limitation;
    
        
    
     d. Information obtained by the recipient from a third party having an
        independent right to disclose the information; or
    
        
    
     e. Information that is available through independent research without use
        of or access to the Proprietary Information.

    

    16.3   Limitations on Required Disclosure

    Each Party agrees that it will make available Proprietary Information
    received from the other Party to its own Affiliates and Associates only on a
    need-to-know basis, and that all Persons to whom such Proprietary
    Information is made available will be made aware of the confidential nature
    of such Proprietary Information, and will be required to agree to hold such
    Proprietary Information in confidence under terms substantially identical to
    the terms hereof.

    16.4.   Remedies

    In the event of a breach or threatened breach of the provisions of Section
    16.1 above by any Transferee, the Transferor shall be entitled to an
    injunction restraining such Party from such breach. Nothing contained in
    this Agreement (including Section 10.4) shall be construed as
    
    

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    prohibiting the Transferor from pursuing any other remedies available at law
    or in equity for such breach or threatened breach of this Agreement.

    16.5   Survival of Confidentiality

    The provisions of this Article XVI shall survive the expiration or
    termination of this Agreement for a period of three (3) years.

    ARTICLE XVII: INSURANCE

    17.1   Coverage and Amounts of Seller

    During the Term, Seller shall procure, pay premiums for and maintain in full
    force and effect the insurance coverages described below.

     a. Worker's Compensation Insurance with statutory limits as required by the
        Laws of the State of Wisconsin, and Employer's Liability with minimum
        limits of $1 million or as established by state or federal Law, if
        applicable.  This insurance shall include all applicable maritime
        coverages as required by Law.  This policy is to be endorsed to include
        a waiver of subrogation in favor of the Buyer.
    
        
    
     b. Commercial General and Umbrella/Excess Liability insurance, including
        coverage for (i) premises/operations, (ii) independent contractor, (iii)
        products and completed operations, (iv) broad form contractual
        liability, (v) broad form property damage, (vi) explosion, collapse and
        underground damage exclusion deletion, and (vii) personal injury, all
        with limits of not less than $25,000,000 each occurrence and in the
        aggregate. 
    
        
    
     c. Business Auto Liability Insurance, covering all vehicles and automobiles
        whether owned, leased, or rented when used by Seller in connection with
        performance of this Agreement and including commercially reasonable
        coverage for each accident of bodily injury and property damage.
    
        
    
     d. Nuclear primary and excess property insurance in the amount that is
        reasonably consistent with the custom in the commercial nuclear power
        industry and which, at a minimum, satisfies the requirements of 10 CFR
        50.54(w), currently $1.06 billion.  Deductibles shall be reasonably
        consistent with the custom in the commercial nuclear power industry, but
        shall not exceed $5,000,000 without the written consent of Buyer, such
        consent not to be unreasonably withheld.  
    
        
    
     e. Nuclear liability insurance from American Nuclear Insurers in accordance
        with the Price Anderson Act until such time as the NRC shall release
        Seller from this obligation. Should the Price Anderson Act be repealed,
        the Seller shall at its cost, provide insurance or other similar
        financial protection affording coverage consistent with coverages
        maintained for other nuclear power plants from the commercial
        marketplace to the extent such coverage is commercially available and to
        the extent that such coverage is available at commercially reasonable
        rates.  Such insurance shall include, at a minimum, the following
        policies (as such are in effect for Unit 1 and Unit 2 as of the
        Effective Date):
    
        
    
        
        
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        (i)     Facility Form
        (ii)    Secondary Financial Protection
        (iii)   Master Worker
        (iv)    Suppliers and Transporters
    
     f. NEIL nuclear business interruption and extra expense insurance in an
        amount that is reasonably consistent with the custom in the commercial
        nuclear power industry, but only to the extent of available limits
        remaining and in coordination with the amount purchased by the Buyer. 
        Seller hereby agrees that the Buyer has an insurable interest in
        business interruption and extra expense created by the insurable events
        making power from the plant unavailable.  Seller acknowledges that NEIL
        insurance covers this exposure and agrees that Buyer is entitled to
        purchase NEIL coverage on its own behalf in an amount up to 5% of the
        total available limit offered by NEIL; provided, however, that Buyer
        shall be entitled to increase such coverage up to a minimum of 10%, but
        no greater than 25%, of the total available limit offered by NEIL in the
        event that Buyer's participation in NEIL's non-nuclear insurance program
        is terminated by NEIL; provided, further, that the amount of coverage
        which Buyer is entitled to obtain shall be no greater than the amount
        reasonably necessary to permit Buyer to realize the full benefits of
        Buyer's NEIL member policyholder percentage.
    
        
    
     g. Notwithstanding the foregoing, Seller may self-insure to meet the
        minimum insurance requirements above to the extent it maintains a
        self-insurance program; provided that Seller (or its guarantor's) Credit
        Rating is rated Investment Grade or better and that its self-insurance
        program meets the above minimum insurance requirements.  Self-insurance
        shall be approved and recognized by the State of Wisconsin for workers
        compensation and automobile liability.  Self-insurance amounts shall not
        exceed the maximum for each line of coverage or $5 million in the
        aggregate.  For any period of time that Seller (or its guarantor's) does
        not have an Investment Grade Credit Rating, Seller shall comply with the
        above minimum insurance requirements.  In the event that Seller is
        permitted to self-insure pursuant to this section, Seller shall notify
        Buyer that Seller meets the requirements to self-insure and that its
        self-insurance program meets the above minimum insurance requirements.

    

    17.2.   Insurance Certificates

    On the Effective Date, and thereafter from time to time at the request of
    Buyer, Seller shall provide certificates of insurance from insurance
    companies having a Best rating of A minus or better confirming that the
    insurance coverages required herein are maintained.  Such certificates shall
    provide that Buyer be given thirty (30) days prior written notice by the
    insurer, or its authorized representative, of any cancellation and ten (10)
    days' prior written notice due to cancellation for non-payment of premiums
    for any required coverage provided by such insurer as evidenced by the
    certificates.  In addition, Seller agrees to provide notice to Buyer of any
    material change in the insurance coverages or policies required hereby.

    
    
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    17.3.   Coverage For Full Term

    All required coverages shall remain in full force and effect during the
    Term. Seller's liability under this Agreement shall not be limited to or by
    the insurance coverages required by this Agreement.

    ARTICLE XVIII: ASSIGNMENT

    18.1   Binding Effect

    This Agreement shall be binding upon and shall inure to the benefit of the
    Parties and their respective successors and permitted assignees.

    18.2.   Assignment
    
    

 1. Subject to Section 2.10, Seller may assign its rights or delegate its duties
    under this Agreement with the prior written consent of Buyer in connection
    with any assignment or sale of the Facilities; provided, that the assignee,
    either directly or through Affiliates, is approved as a licensee to own
    and/or operate the Facilities by the NRC; provided, further, that Seller
    shall not assign this Agreement or sell the Facilities (or any portion
    thereof) to any Person that (i) does not have a Credit Rating equal to or
    better than Investment Grade, or (ii) cannot replace the Seller Performance
    Security with replacement security consisting of (A) a guaranty or
    guaranties from a guarantor with a Credit Rating equal to or better than
    Investment Grade, or (B) other Seller Performance Security; and provided,
    further, that the assigning Party shall provide prompt prior written notice
    of such assignment to the other Party and the assuming Person agrees in
    writing to assume all obligations under this Agreement. An assignee that
    meets the requirements of all of the foregoing provisos in the preceding
    sentence shall be deemed a "Permitted Assignee." Once a Permitted Assignee
    provides such replacement security, any Seller Performance Security provided
    by Seller/assignor shall be promptly returned to Seller/assignor.

    

 2. Seller shall also have the right, without the consent of Buyer, to assign
    its rights or delegate its duties under this Agreement to an Affiliate of
    Seller, provided that all Seller Performance Security requirements under
    this Agreement remain satisfied. An Affiliate that meets the requirements of
    the preceding sentence shall be deemed a "Permitted Assignee."

    

 3. Seller shall have the right to assign all or a portion of its rights or
    obligations under this Agreement to any lender providing financing for
    Seller's acquisition of the Facilities as collateral security for
    obligations under the financing documents entered into with such lenders;
    provided, that (a) Seller first provides Buyer with written notice of not
    less than 60 days of such collateral assignment; and (b) Buyer consents in
    good faith to the form of collateral assignment and related documentation.

    

 4. Buyer shall have the right, with the prior written consent of Seller (such
    consent not to be unreasonably withheld), to assign its rights or delegate
    its duties under this Agreement to a non-Affiliate, provided that such
    assignee has a Credit Rating
    
    
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    equal to or better than Investment Grade, or provides Seller with other
    evidence reasonably satisfactory to Seller of its financial ability to
    perform Buyer's obligations hereunder.

    

 5. Buyer shall have the right, without the consent of Seller, to assign its
    rights or delegate its duties under this Agreement (A) to an Affiliate of
    Buyer or an entity that is part of the Wisconsin Energy Group (a "Related
    Entity"); provided, that such Affiliate or Related Entity is an entity with
    an Investment Grade Credit Rating or (B) if it shall merge into, be
    consolidated with, or reorganized pursuant to a divestiture in such a way
    that the surviving entity is, or on the date of the merger, consolidation,
    or reorganization, will be bound by all of the obligations under this
    Agreement; provided, further, that if such assignee (or parent or affiliate
    of such assignee) does not possess an Investment Grade Credit Rating at the
    time of such assignment, then Buyer, or any Affiliate of Buyer with an
    Investment Grade Credit Rating, shall provide to Seller a guaranty of
    assignee's payment obligations under this Agreement.

18.3.   Change in Control

Seller covenants and agrees that without the express written consent of Buyer
any Change in Control of Seller shall be prohibited; provided, however, that
notwithstanding the foregoing, if the Person acquiring the control of Seller
meets the requirements of a Permitted Assignee, Buyer's consent shall not be
required.

ARTICLE XIX: DISPUTE RESOLUTION

19.1.   General Provisions

Every Dispute between the Parties arising out of or in connection with this
Agreement shall be resolved in accordance with this Article XIX, to the extent
permitted by law.

19.2.   Negotiation

In the event of a Dispute, the Parties shall in good faith attempt to resolve
such Dispute by negotiations through the Administrative Committee. Either
Operating Contact may request the other to meet within seven (7) days at a
mutually agreed upon time and place. Such request must be in the form of a
written notice that sets forth the nature of the controversy or claim. If the
Dispute that gave rise to such controversy or claim is not resolved within
thirty (30) days from the date of the first meeting of the Administrative
Committee (or, if the Administrative Committee fails to meet within the
applicable period required by this Section 19.2), the Administrative Committee
shall refer the Dispute to senior executives, who shall have authority to settle
the Dispute (the "Senior Executives"). Thereupon, each Operating Contact shall
in no later than fifteen (15) days prepare and deliver to the Senior Executives
and the other Operating Contact a memorandum stating the issues in dispute and
their positions, summarizing any negotiations which have taken place and
attaching relevant documents. The Senior Executives shall meet for negotiations
within fifteen (15) days from the exchange of such memoranda, at a mutually
agreed time and place. If the Dispute is not resolved under this Section 19.2
within ten (10) days of the first meeting of the Senior

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Executives, then, in accordance with this Agreement, either Party may pursue any
remedy it may have at law or in equity.

19.3.   Binding Upon Parties

In the resolution of any Dispute pursuant to this Article XIX, each of the
Parties, their Operating Contacts and Senior Executives shall give effect to
this Article XIX.

19.4.   Continued Performance

Subject to the provisions of Section 10.2, notwithstanding any Dispute between
the Parties and pending the final decision of a Dispute, each Party shall
continue to perform its respective obligations under this Agreement.

ARTICLE XX: COMPLIANCE WITH LAWS; TAXES

20.1.   Compliance with Laws

Each Party shall at all times comply with all applicable Laws relating to the
performance of its obligations under this Agreement. Each Party shall give all
required notices, shall procure and maintain all necessary Authorizations and
inspections necessary for its performance of this Agreement, and shall pay all
charges and fees in connection therewith.

20.2.   Mobile-Sierra

It is the intent of the Parties that the rates and all other terms and
conditions of the services provided hereunder shall not be subject to change
under Sections 205 or 206 of the Federal Power Act of 1935, 16 U.S.C. S 791 et
seq., (or any successor legislation) without the consent of both Parties. Each
of the Parties hereto agrees not to unilaterally file with the FERC a change in
the rates, terms or conditions of this Agreement. Moreover, absent agreement of
all Parties to a proposed change, the standard of review for changes to any
rate, term or condition of this Agreement proposed by a non-Party or the FERC or
any other Governing Authority acting sua sponte shall be the "public interest"
standard of review set forth in United Gas Pipe Line Co. v. Mobile Gas Services
Corp., 350 U.S. 332 (1956) and Federal Power Commission v. Sierra Pac Power Co.,
350 U.S. 348 (1956). To the extent that the FERC adopts specific language that
parties must incorporate into agreements in order to bind FERC, third parties
and themselves to a public interest standard of review, the Parties hereby
incorporate such language herein by reference.

20.3.   Taxes and Other Charges

Seller's Taxes

Seller is liable for and shall pay, or cause to be paid, or reimburse Buyer if
Buyer has paid, all Taxes applicable to any transaction arising out of this
Agreement at or prior to the Delivery Point on the sale of Energy, Capacity or
Ancillary Services to Buyer. Seller shall indemnify, defend and hold harmless
Buyer from any Claims for such Taxes applicable at or prior to the Delivery
Point.

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Buyer's Taxes

Buyer is liable for and shall pay, or cause to be paid, or reimburse Seller if
Seller has paid, all Taxes applicable to any transaction arising out of this
Agreement after the Delivery Point on the sale by Buyer of Energy, Capacity or
Ancillary Services. Buyer shall indemnify, defend and hold harmless Seller from
any Claims for such Taxes applicable after the Delivery Point.

Certificate of Tax Exemption

Either Party, upon written request of the other, shall provide a certificate of
exemption or other reasonably satisfactory evidence of exemption if either Party
is exempt from Taxes.

Gross Receipts Tax

The Buyer is liable for any Gross Receipts Tax applicable to any transaction
arising out of this Agreement. If Seller pays any such Gross Receipts Tax, then
Seller shall include such amounts so paid in the next Billing Cycle invoice as
provided in Sections 3.1(a) and 7.1 (the "Gross Receipts Tax Payment").

ARTICLE XXI: CHANGE IN LAW

21.1.   Change in Law

In the event there is a change or changes in any Laws or interpretations
thereof, enacted or adopted after execution of this Agreement or any Law or
interpretation thereof, enacted or adopted after the Effective Date results in
the application of any Law to a new or different class of parties (a "Change in
Law"), the Party affected by such Change in Law shall be responsible for the
burden and, except as provided in Section 21.2 or elsewhere in this Agreement,
shall be permitted to retain the benefits of such Change in Law. For the
avoidance of doubt, except as specifically provided elsewhere in this Agreement,
the terms and conditions of this Agreement shall not be subject to change due to
a Change in Law.

21.2.   Future Attributes

In the event that, at any time during the Term, a Change in Law occurs that
causes any aspect of the Facilities as in existence on the date hereof to become
a tradable attribute (e.g., emission credit, renewable energy credit,
environmental credit, "Green" credit, etc.) or otherwise to have a market value,
Buyer shall be entitled to 100% of such tradable attribute and the benefits of
such attribute for the first seven Calendar Years following the Effective Date
and thereafter 50% for the remainder of the Term (with the other 50% belonging
to Seller), and the Parties shall in good faith negotiate to reflect such
allocation to Buyer at no additional cost to Buyer. Seller agrees to execute a
separate agreement to transfer to Buyer any revenue, or any other benefit
received by Seller for such tradable attributes, and to execute all documents
and agreements and take all steps necessary to permit Buyer to market Buyer's
tradable attributes. Failing any such agreement, Seller agrees to credit to
Buyer such revenues as provided in Section 3.1(b) until such time as an
agreement is executed.

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21.3.   MISO Changes

In the event that, at any time during the Term, the applicable Transmission
Provider or Transmission Provider Tariff is changed or if an applicable regional
reliability council issues a directive, rule or regulation that materially
adversely affects Seller or Buyer so that the benefits and burdens of this
Agreement are no longer as contemplated by the original intentions of the
Parties, the Parties shall use their commercially reasonable efforts to reform
this Agreement in order to give effect to the original intentions of the Parties
regarding the appropriate allocation of benefits and burdens to each Party.

ARTICLE XXII: MISCELLANEOUS

22.1.   Recording Telephone Conversations

Each Party agrees that the other Party or its representatives may record any or
all telephone conversations between representatives of the two Parties pursuant
to or relating to this Agreement. Each Party is hereby advised that telephone
conversations with Buyer's personnel relating to Section 2.4 and Article IV are
routinely recorded and each Party agrees to obtain any necessary consent of its
personnel regarding such recording. Each Party further agrees that such recorded
telephone conversations shall not be deemed inadmissible in any arbitration
proceeding or court of law by virtue of the recorded nature of the
conversations. Each Party hereby waives any objection to the introduction of
such recorded telephone conversations as evidence in any court of law to the
extent such objections are based on the recorded nature of such conversations.

22.2.   Governing Law

This Agreement shall be governed by and construed in accordance with the law of
the State of Wisconsin as to all matters, including but not limited to matters
of validity, construction, effect, performance and remedies.

The Parties hereby irrevocably submit to the exclusive jurisdiction of the
United States District Court for the Eastern District of Wisconsin or, in the
event that jurisdiction for any matter cannot be established in the United
States District Court for the Eastern District of Wisconsin, in the Circuit
Court for Manitowoc County, solely in respect of the interpretation and
enforcement of the provisions of this Agreement and of the documents referred to
in this Agreement, and in respect of the transactions contemplated hereby, and
hereby waive, and agree not to assert, as a defense in any action, suit or
proceeding for the interpretation or enforcement hereof or of any such document,
that it is not subject thereto or that such action, suit or proceeding may not
be brought or is not maintainable in said courts or that the venue thereof may
not be appropriate or that this Agreement or any such document may not be
enforced in or by such courts, and the Parties hereto irrevocably agree that all
claims with respect to such action or proceeding shall be heard and determined
in such a court. The Parties hereby consent to and grant any such court
jurisdiction over the Person of such Parties solely for such purpose and over
the subject matter of such dispute and agree that mailing of process or other
papers in connection with any such action or proceeding in the

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manner provided in Article XV hereof or in such other manner as may be permitted
by Law shall be valid and sufficient service thereof.

EACH PARTY ACKNOWLEDGES AND AGREES THAT ANY CONTROVERSY WHICH MAY ARISE UNDER
THIS AGREEMENT IS LIKELY TO INVOLVE COMPLICATED AND DIFFICULT ISSUES, AND
THEREFORE EACH PARTY HEREBY IRREVOCABLY AND UNCONDITIONALLY WAIVES ANY RIGHT A
PARTY MAY HAVE TO A TRIAL BY JURY IN RESPECT OF ANY LITIGATION RESULTING FROM,
ARISING OUT OF OR RELATING TO THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED
HEREBY. EACH PARTY CERTIFIES AND ACKNOWLEDGES THAT (i) NO REPRESENTATIVE, AGENT
OR ATTORNEY OF THE OTHER PARTY HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT
SUCH OTHER PARTY WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE
FOREGOING WAIVER, (ii) EACH PARTY UNDERSTANDS AND HAS CONSIDERED THE
IMPLICATIONS OF THIS WAIVER, (iii) EACH PARTY MAKES THIS WAIVER VOLUNTARILY AND
(iv) EACH PARTY HAS BEEN INDUCED TO ENTER INTO THIS AGREEMENT BY, AMONG OTHER
THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION 22.2(c).

22.3.   Entire Agreement; Amendment

This Agreement constitutes the entire agreement between the Parties pertaining
to the subject matter of this Agreement, and supersedes and terminates any
letters of intent and all prior and contemporaneous agreements, understandings,
negotiations and discussions with the Parties, whether oral or written,
regarding said subject matter, and there are no warranties, representations or
other agreements between the Parties in connection with the subject matter of
this Agreement, except as specifically set forth in this Agreement. No
amendment, supplement, modification, waiver or termination of this Agreement
shall be binding unless executed in writing by the Party to be bound thereby. No
waiver of any of the provisions of this Agreement shall be deemed or shall
constitute a waiver of any other provision of this Agreement, whether or not
similar, nor shall such waiver constitute a continuing waiver unless otherwise
expressly provided.

22.4.   No Implied Waiver

The failure or delay of any Party hereto to enforce at any time any of the
provisions of this Agreement, or to require at any time performance of the other
Party hereto of any of the provisions hereof, shall neither be construed to be a
waiver of such provisions nor affect the validity of this Agreement or any part
hereof or the right of such Party thereafter to enforce each and every such
provision.

22.5.   Severability

If any provision of this Agreement shall be determined to be unenforceable, void
or otherwise contrary to any Law, such condition shall in no manner operate to
render any other provision of this Agreement unenforceable, void or contrary to
any Law, and this Agreement shall continue in force in accordance with the
remaining terms and provisions hereof, unless such condition invalidates the
purpose or intent of this Agreement. In the

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event that any of the provisions, or portions or applications thereof, of this
Agreement are held unenforceable or invalid by any court of competent
jurisdiction, Seller and Buyer shall negotiate in good faith to attempt to
implement a reformation of the provisions of this Agreement with a view toward
effecting the purposes of this Agreement by replacing the offending provision
with a valid provision the economic effect of which comes as close as possible
to that of the offending provision.

22.6.   No Exclusivity/Dedication of Assets

This Agreement is not intended to be an exclusive arrangement between Buyer and
Seller. No undertaking by a Party hereto to the other Party hereto under any
provision of this Agreement shall constitute the dedication of that Party's
assets or any portion thereof to the public.

22.7.   Expenses

Each Party shall pay the fees and expenses of its respective counsel,
accountants, brokers, consultants, investment bankers and other experts incident
to the negotiation and preparation of this Agreement.

22.8.   Counterparts

This Agreement may be executed simultaneously in two (2) or more counterparts,
each of which shall be deemed an original but all of which together shall
constitute one and the same instrument.

22.9.   Survival

The applicable provisions of this Agreement shall continue in effect after the
termination of this Agreement, to the extent necessary to provide for final
billing and adjustment, and to make other appropriate settlements hereunder.
Those provisions hereof that by their express terms are intended to survive this
Agreement shall so survive for the periods indicated. Without limitation of the
foregoing, Article VII, Article VIII, Article X, Article XII and Article XIX
shall survive the termination of this Agreement.

22.10.   Individual Responsibility

This Agreement shall not be construed to create or give rise to any partnership,
joint venture, agency or other relationship between Seller and Buyer other than
that of purchaser and seller. Each Party shall be solely and individually
responsible for its own covenants, obligations and liabilities as herein
provided, and the Parties do not intend to create any joint, several or joint
and several obligations to any third party. Neither this Agreement, nor any
grant, lease or license related thereto, shall create or be construed to create
any new entity, such as a partnership, association or joint venture.

22.11.   No Duty To Third Parties

This Agreement is for the sole benefit of the Parties hereto, and except as
specifically provided herein nothing in this Agreement or any action taken
hereunder shall be construed to create any duty, liability or standard of care
to any Person not a party to this Agreement. Except as specifically provided
herein, no Person shall have any rights or interest, direct or

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indirect, in this Agreement or the services to be provided hereunder, or both,
except Buyer and Seller. The Parties specifically disclaim any intent to create
any rights in any Person as a third-party beneficiary to this Agreement or the
services to be provided hereunder, or both.

22.12.   Forward Contract

The Parties acknowledge and agree that this Agreement, the transactions
contemplated hereby, and any instrument(s) that may be provided by either Party
hereunder (including any guaranty) shall each, and together, constitute one and
the same "forward contract" within the meaning of the United States Bankruptcy
Code, and Seller, Seller's Guarantor and Buyer shall each constitute a "forward
contract merchant" under the United Stated Bankruptcy Code.

22.13.   Press Releases

Neither Buyer nor Seller shall, without the approval of the other, make any
press release or other public announcement which describes the substantive terms
of this Agreement; provided, that subject to Article XVI the foregoing shall not
preclude communications or disclosures (i) necessary to implement the provisions
of this Agreement, (ii) to comply with accounting and United States Securities
and Exchange Commission disclosure obligations or (iii) in connection with the
application for any Authorization.

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IN WITNESS WHEREOF, each of the Parties hereto has caused this Agreement to be
duly executed on its behalf by its duly authorized officer as of the date first
set forth above.

 

                                                                           FPL
ENERGY POINT BEACH, LLC

 

                                                                   By:   /s/
Michael O'Sullivan
                                                                   Name: Michael
O'Sullivan
                                                                   Title:
Vice-President

 

                                                                          WISCONSIN
ELECTRIC POWER COMPANY

                                                                  By:  /s/
Frederick D. Kuester
                                                                  Name:
Frederick D. Kuester
                                                                  Title:
Executive Vice President and
                                                                  Chief
Operating Officer

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

 

 

EXHIBIT A

Delivered Energy Charges

Year

Delivered Energy Charge (in
$/MWh)

2007

31.37

2008

39.23

2009

40.40

2010

41.62

2011

42.87

2012

44.15

2013

44.59

2014

45.04

2015

45.49

2016

45.94

2017

46.40

2018

46.87

2019

49.68

2020

52.66

2021

55.82

2022

59.17

2023

62.72

2024

66.48

2025

70.47

2026

75.51

2027

80.91

2028

86.69

2029

92.89

2030

99.53

2031

106.65

2032

114.28

2033

122.45

For each month during the Term, the Delivered Energy Charge set forth above
shall apply to all Capacity, Energy and Ancillary Services purchased by Buyer
under the Power Purchase Agreement, including any Uprate accepted hereunder. 
The Delivered Energy Charge shall be adjusted by multiplying the amount of such
charge by the Delivered Energy Charge Shaping Factor for such month as set forth
on Exhibit C hereto.

A-1

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EXHIBIT B

Buyer's Capacity Amount

For any given month during the Term, the Buyer's Capacity Amount shall be as set
forth in the table below:

Column A

Column B

Column C

Month

Capacity of the Facilities (MW)

Unit 1

   Unit 2       CT

Buyer's Capacity Amount

January

517

519

19

1055

February

517

519

18

1054

March

517

519

17

1053

April

517

519

16

1052

May

517

519

16

1052

June

517

519

15

1051

July

512

514

15

1041

August

512

514

15

1041

September

512

514

15

1041

October

517

519

16

1052

November

517

519

17

1053

December

517

519

18

1054

Column A - Depicts the month of the year.

Column B - Will be updated over the Term of this Agreement to reflect the
Capacity of the Facilities (including the Planned Uprate, but excluding Capacity
related to any Uprate not accepted by Buyer pursuant to Section 2.9(a)), as
determined in accordance with the MAIN Guide No. 3A Standards (or with the
Effective Capacity Requirements, if applicable). CT Capacity will be included in
Buyer's Capacity Amount only in the event that Buyer has documented to the
reasonable satisfaction of the applicable regional reliability council and/or
MISO, as applicable, that the CT is interconnected and available to provide
Capacity and Energy to the Transmission Owner's system.

Column C - Shall be the sum of the subcolumns of Column B as those values may be
revised during the Term of this Agreement.

B-1

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EXHIBIT C

Delivered Energy Charge Shaping Factor

Month

On-Peak Hours

Off-Peak Hours

January

1.19

0.67

February

1.19

0.67

March

0.95

0.61

April

0.95

0.61

May

1.42

0.71

June

1.66

0.74

July

2.14

0.77

August

2.14

0.77

September

1.66

0.74

October

0.95

0.61

November

0.95

0.61

December

1.19

0.67

C-1

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EXHIBIT D

diagram of metering devices

 

[DIAGRAM OF METERING DEVICES]

 

 

 

 

 

 

 

 

 

The Metering Devices identified above as numbers 3, 4, 7 and 8 are revenue
quality meters.

 

 

D-1

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EXHIBIT E

                                                                         FORM OF
SELLER'S GUARANTY

GUARANTY AGREEMENT

THIS GUARANTY

made as of the ____ day of December, 2006 (the "Guaranty"), from FPL GROUP
CAPITAL INC., a corporation organized and existing under the laws of the State
of Florida and having its principal place of business in 700 Juno Universe
Boulevard, Juno Beach, FL 33408 being hereinafter referred to as the
"Guarantor," to Wisconsin Electric Power Company, a Wisconsin corporation with a
principal place of business in Milwaukee, Wisconsin ("WEPCO").

WITNESSETH

:

WHEREAS,

WEPCO and FPL ENERGY POINT BEACH, LLC, a limited liability company organized
under the laws of Wisconsin ("Seller") have entered into a Power Purchase
Agreement dated as of the date hereof (the "PPA"); and

WHEREAS

, Seller is an affiliate of the Guarantor and the Guarantor will benefit from
the transactions contemplated by the PPA; and

WHEREAS,

WEPCO has agreed to sign the PPA on the condition, among others, that the
Guarantor executes and delivers this Guaranty; and

NOW, THEREFORE,

to induce WEPCO to sign the PPA and consummate the transactions contemplated
thereby and for other good and valuable consideration, the receipt and
sufficiency of which is hereby acknowledged, the Guarantor does hereby warrant
to and covenant and agree with WEPCO as follows:

ARTICLE 1 - DEFINITIONS

1.1 Definitions. Unless otherwise defined in this Guaranty, capitalized terms
have the meanings specified or referred to in the PPA.

ARTICLE 2 - GUARANTY

2.1 Guaranty. Subject to the provisions of Section 2.3(c) hereof, Guarantor
hereby unconditionally and irrevocably guarantees to WEPCO and its successors
and permitted assigns, the prompt and full payment and performance of any and
all obligations of the Seller to WEPCO when due, whether by acceleration or
otherwise, with such interest as may accrue thereon, under the PPA or under any
other documents or instruments now or hereafter evidencing, securing or
otherwise relating to the PPA (the "Guaranteed Obligations"); provided, however,
that Guarantor's liability under this Guaranty, and the maximum recovery from
the Guarantor pursuant to this Guaranty, shall in no event exceed one hundred
million U.S. dollars

E-1

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($100,000,000) in the aggregate, which amount shall escalate at 3% per annum on
January 1, 2024 and on January 1st of each year thereafter until the end of the
Term (the "Maximum Recovery Amount"), plus any reasonable expenses required to
be paid by Guarantor pursuant to Section 4.4 herein. If Seller fails to pay or
perform any Guaranteed Obligation, following the date the same becomes due and
payable (and after giving effect to all applicable periods of grace and notice),
then, subject to the limit of the Maximum Recovery Amount, Guarantor will pay or
perform such obligation within three Business Days following written demand by
WEPCO to the Guarantor.

2.2 Guaranty Absolute. (a) Subject to the provisions hereof, the Guarantor
absolutely guarantees that the Guaranteed Obligations will be paid and performed
strictly in accordance with the terms of the PPA, regardless of any law or
regulation now or hereafter in effect in any jurisdiction affecting any of such
terms or the rights of WEPCO with respect thereto. This Guaranty constitutes a
guarantee of payment and performance and not of collection. The obligations of
the Guarantor hereunder are several from the Seller or any other person, and are
primary obligations concerning which the Guarantor is the principal obligor. The
liability of Guarantor under this Guaranty shall be direct and immediate and not
conditional or contingent upon the pursuit of any remedies against the Seller or
any other person, nor against securities or liens available to WEPCO, its
successors or permitted assigns. Subject to the provisions hereof, the liability
of the Guarantor under this Guaranty shall be irrevocable, absolute and
unconditional irrespective of, and the Guarantor hereby irrevocably waives any
defenses it may now have or hereafter acquire in any way relating to, any or all
of:

(i) any change in the time, manner or place of payment of, or in any other term
of, all or any of the Guaranteed Obligations, or any other amendment,
modification or waiver of, or any consent to departure from, the terms of such
Guaranteed Obligations;

(ii) any change, restructuring or termination of the corporate structure or
existence of the Seller or any of its subsidiaries;

(iii) any lack of validity or enforceability of the PPA or any agreement or
instrument relating thereto;

(iv) any failure of WEPCO to disclose to either the Seller or the Guarantor any
information relating to the business, condition (financial or otherwise),
operations, performance, properties or prospects of either the Seller or any of
its subsidiaries now or hereafter known to WEPCO (the Guarantor waiving any duty
on the part of WEPCO to disclose such information);

(v) any lack of due diligence by WEPCO in the collection or protection of or
realization upon any collateral securing the Guaranteed Obligations; or

(vi) any circumstance whatsoever or any act of WEPCO or any existence of or
reliance on any representation by WEPCO that might otherwise constitute

E-2

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a legal or equitable defense available to, or a discharge of, a guarantor or
surety.

This Guaranty shall continue to be effective or be reinstated, as the case may
be, if at any time any payment of any of the Guaranteed Obligations is rescinded
or must otherwise be returned by WEPCO or any other Person upon the insolvency,
bankruptcy, or reorganization of the Seller or otherwise, all as though such
payment had not been made.

(b) No action which WEPCO shall take or fail to take in connection with the
Guaranteed Obligations, or any security for the payment or performance of any of
the Guaranteed Obligations, nor any course of dealing with Seller or any other
person, shall release Guarantor's obligations hereunder, affect this Guaranty in
any way, or afford Guarantor any recourse against WEPCO. 

(c) In the case of an Event of Default under the PPA or with regard to any of
the Guaranteed Obligations, Guarantor hereby consents and agrees that WEPCO
shall have the right to enforce its rights, powers, and remedies thereunder or
hereunder or under any other instrument now or hereafter evidencing, securing,
or otherwise relating to the Guaranteed Obligations, and apply any payments or
credits received by the Seller or Guarantor or realized from any security, in
any manner and in any order as WEPCO, in its sole discretion, shall see fit, and
all rights, powers, and remedies available to WEPCO in such event shall be
nonexclusive and cumulative of all other rights, powers, and remedies provided
thereunder or hereunder or by law or in equity.  If the Guaranteed Obligations
are partially paid by reason of the election of WEPCO, its successors or
assigns, to pursue any of the remedies available to WEPCO, or if such
indebtedness is otherwise partially paid, this Guaranty shall nevertheless
remain in full force and effect, and Guarantor shall ,subject to the Maximum
Recovery Amount, remain liable for the entire balance of the Guaranteed
Obligations even though any rights which Guarantor may have against the Seller
may be destroyed or diminished by the exercise of any such remedy.

2.3 Waivers and Acknowledgments. (a) Guarantor hereby waives promptness,
diligence, presentment, demand of payment, acceptance, notice of acceptance,
protest, notice of dishonor and any other notices with respect to any of the
Guaranteed Obligations and this Guaranty.

(b) The Guarantor hereby unconditionally and irrevocably waives any right to
revoke this Guaranty and acknowledges that this Guaranty is continuing in nature
and applies to all Guaranteed Obligations, whether existing now or in the
future, subject however to the limit of the Maximum Recovery Amount; provided,
however, that this Guaranty shall automatically terminate upon receipt by WEPCO
of replacement Seller Performance Security meeting the requirements of Section
8.1 of the PPA. The provisions of this Guaranty shall extend and be applicable
to all renewals, amendments, extensions, consolidations, and modifications of
the PPA.

(c) The Guarantor hereby unconditionally and irrevocably waives any defense
based on any right of set-off or counterclaim against or in respect of the
obligations of the Guarantor hereunder; provided, however, that Guarantor shall
have, and expressly reserves to itself, the

E-3

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same defenses available to the Seller with respect to any payment obligations
arising under the PPA, except for defenses arising out of bankruptcy,
insolvency, dissolution or liquidation of the Seller.

2.4 Subrogation. Notwithstanding any payment or payments or performance made by
the Guarantor hereunder, the Guarantor hereby irrevocably waives any and all
rights of subrogation to the rights of WEPCO against the Seller and any and all
rights of reimbursement, assignment, indemnification or implied contract or any
similar rights (including without limitation any statutory rights of subrogation
under Section 509 of the Bankruptcy Code, 11 U.S.C. S 509) against the Seller or
against any other guarantor of all or any part of the Guaranteed Obligations
until such time as the Guaranteed Obligations have been indefeasibly paid or
performed in full. If, notwithstanding the foregoing, any amount shall be paid
to the Guarantor on account of such subrogation or similar rights at any time
when all of the Guaranteed Obligations shall not have been indefeasibly paid in
full, such amount shall be held by the Guarantor in trust for WEPCO and shall be
turned over to WEPCO in the exact form received by the Guarantor, to be applied
against the Guaranteed Obligations in such order as WEPCO may determine in its
sole discretion.

2.5 Reporting. Guarantor shall promptly notify WEPCO of any Insufficient Credit
Status relating to Guarantor or any circumstance that results in Seller's
failure to be in compliance with the Seller Performance Security requirements of
Article VIII of the PPA. From time to time, at WEPCO's written request,
Guarantor shall provide WEPCO promptly with such evidence as WEPCO may
reasonably request that this Guaranty is in full compliance with the PPA.

ARTICLE 3 - REPRESENTATIONS AND WARRANTIES

The Guarantor hereby represents and warrants as follows:

3.1 Organization. The Guarantor is a corporation duly organized, validly
existing and in good standing under the laws of the state of Florida.

3.2 Authorization; No Conflict. The execution and delivery by the Guarantor of
this Guaranty, and the performance by the Guarantor of its obligations hereunder
(i) are within the Guarantor's corporate powers, (ii) have been duly authorized
by all necessary corporate action, (iii) do not contravene its Articles of
Incorporation or any law or regulation applicable to or binding on the Guarantor
or any of its properties and (iv) do not require the consent or approval of any
person which has not already been obtained or the satisfaction or waiver of any
conditions precedent to the effectiveness of this Guaranty that have not been
satisfied or waived.

3.3 Enforceability. This Guaranty constitutes the legal, valid and binding
obligation of the Guarantor enforceable against the Guarantor in accordance with
its terms, except to the extent that such enforceability may be limited by
applicable bankruptcy, insolvency, dissolution, reorganization, moratorium,
liquidation or other similar laws affecting creditors' rights generally and by
general principles of equity (regardless of whether enforcement is sought in a
proceeding in equity or at law).

E-4

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3.4 No Bankruptcy Proceedings. There are no bankruptcy proceedings pending or
being contemplated by Guarantor or, to its knowledge, threatened against it.

3.5 No Legal Proceedings. There are no legal proceedings pending against the
Guarantor that would be reasonably likely to materially adversely affect the
legality, validity or enforceability of this Guaranty.

ARTICLE 4 - MISCELLANEOUS

4.1 Continuing Guaranty; Assignment. This Guaranty is a continuing guaranty and
shall (i) remain in full force and effect until all of the Guaranteed
Obligations have been satisfied, (ii) consistent with the terms hereof, apply to
all Guaranteed Obligations whenever arising, (iii) be binding upon the
Guarantor, its successors and assigns, and (iv) inure to the benefit of, and be
enforceable by, WEPCO and its permitted assignees hereunder. The WEPCO may not
assign or delegate its rights or obligations under this Guaranty without the
prior written consent of the Guarantor, which consent shall not be unreasonably
delayed or withheld. The Guarantor may not assign or delegate its rights or
obligations under this Guaranty without (x) the prior written consent of WEPCO,
which consent may be withheld in WEPCO's sole discretion, and (y) a written
assignment and assumption agreement in form and substance reasonably acceptable
to WEPCO. Without prejudice to the survival of any of the other agreements of
the Guarantor under this Guaranty, the agreements and obligations of the
Guarantor contained in Section 4.4 (with respect to enforcement expenses) and
the last sentence of Section 2.2(a) shall survive the payment in full of the
Guaranteed Obligations and all of the other amounts payable under this Guaranty.

4.2 Notices. All notices, requests, demands and other communications which are
required or may be given under this Guaranty shall be in writing and shall be
deemed to have been duly given when actually received if (a) personally
delivered; (b) transmitted by facsimile, electronic or digital transmission
method; or (c) if sent by certified or registered mail, return receipt
requested. In each case notice shall be sent:

(i)             if to WEPCO:

            Wisconsin Electric Power Company
            333 West Everett Street, Room A214
            Milwaukee, Wisconsin 53203
            Attention: Treasurer

(ii)             if to the Guarantor:

FPL Group Capital Inc
            700 Universe Boulevard
            Juno Beach, FL 33408
            Attention: Treasurer

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or to such other place and with such other copies as WEPCO or the Guarantor may
designate as to itself by written notice to the other pursuant to this Section
4.2. Delivery by facsimile of an executed counterpart of a signature page to any
amendment or waiver of any provision of this Guaranty shall be effective as
delivery of an original executed counterpart thereof.

4.3 Delay and Waiver. No failure on the part of WEPCO to exercise, and no delay
in exercising, any right hereunder shall operate as a waiver thereof; nor shall
any single or partial exercise of any right hereunder preclude any other or
further exercise thereof or the exercise of any other right. The remedies herein
provided are cumulative and not exclusive of any remedies provided by law.

4.4 Expenses. The Guarantor agrees to pay or reimburse WEPCO and any permitted
assignees of WEPCO on demand for its reasonable costs, charges and expenses
(including reasonable fees and expenses of counsel) incurred in connection with
the enforcement of this Guaranty or occasioned by any breach by the Guarantor of
any of its obligations under this Guaranty should Guarantor be required to pay
under this Guaranty.

4.5 Entire Agreement; Amendments. This Guaranty and any agreement, document or
instrument attached hereto or referred to herein integrate all the terms and
conditions mentioned herein or incidental hereto and supersede all oral
negotiations and prior writings in respect to the subject matter hereof. In the
event of any conflict between the terms, conditions and provisions of this
Guaranty and any such agreement, document or instrument, the terms, conditions
and provisions of this Guaranty shall prevail. This Guaranty may only be amended
or modified by an instrument in writing signed by each of the Guarantor and
WEPCO and any permitted assignees of WEPCO.

4.6 Headings. The headings of the various Sections of this Guaranty are for
convenience of reference only and shall not modify, define or limit any of the
terms or provisions hereof.

4.7 Governing Law; Consent to Jurisdiction. (a) This Guaranty shall be construed
and interpreted, and the rights of the parties determined, in accordance with
the law of the State of Wisconsin, without giving effect to principles of
conflicts of law that would require the application of the laws of another
jurisdiction.

(b) Each party hereto irrevocably and unconditionally agrees to the exclusive
jurisdiction of the United States District Court for the Eastern District of
Wisconsin or, in the event that jurisdiction for any matter cannot be
established in the United States District Court for the Eastern District of
Wisconsin, in the Circuit Court for Manitowoc County, solely in respect of the
interpretation and enforcement of the provisions of this Guaranty and hereby
waive, and agree not to assert, as a defense in any action, suit or proceeding
for the interpretation or enforcement hereof that it is not subject thereto or
that such action, suit or proceeding may not be brought or is not maintainable
in said courtsor that the venue thereof may not be appropriate or that this
Guaranty may not be enforced in or by such courts, and the parties hereto
irrevocably agree that all claims with respect to such action or proceeding
shall be heard and determined in

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such a court. The parties hereby consent to and grant any such court
jurisdiction over the person of such parties solely for such purpose and over
the subject matter of such dispute and agree that mailing of process or other
papers in connection with any such action or proceeding in the manner provided
in Section 4.2 hereof or in such other manner as may be permitted by Law shall
be valid and sufficient service thereof.

(c) THE GUARANTOR AND, BY ITS ACCEPTANCE OF THIS GUARANTY, WEPCO, HEREBY
IRREVOCABLY WAIVES ALL RIGHT TO TRIAL BY JURY IN ANY ACTION, PROCEEDING OR
COUNTERCLAIM (WHETHER BASED ON CONTRACT, TORT OR OTHERWISE) ARISING OUT OF OR
RELATING TO, THIS GUARANTY, OR THE ACTIONS OF ANY PARTY IN THE NEGOTIATION,
ADMINISTRATION, PERFORMANCE OR ENFORCEMENT THEREOF.

4.8 Severability. Any provision of this Guaranty that shall be prohibited or
unenforceable shall be ineffective to the extent of such prohibition or
unenforceability without invalidating the remaining provisions hereof.

IN WITNESS WHEREOF, the Guarantor has caused this Guaranty to be duly executed
and delivered by its duly authorized representative as of the day and year first
above written.

                                                                        FPL
Group Capital Inc.

 

                                                                        By:
                                                                        Name:
James L. Robo
                                                                        Title:
Vice President

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                                                            WEPCO EXHIBIT F

                                                         FORM OF LETTER OF
CREDIT

IRREVOCABLE STANDBY LETTER OF CREDIT No. ________

[Date]
[Credit No.]

[Name and Address

of Beneficiary]

Dear Sirs:

We hereby establish in your favor, for the account of [NAME OF ACCOUNT PARTY]
("Account Party"), with respect to the Power Purchase Agreement dated as of
[________] between [Account Party] and you ("Beneficiary") (the "PPA"), our
irrevocable standby letter of credit no.  (the "Standby Letter of Credit")
whereby we hereby irrevocably authorize you to draw on us, in accordance with
the terms and conditions hereinafter set forth, by your draft or drafts at
sight, in the aggregate in an amount not to exceed ________________________
United States Dollars (U.S. $_________).

Funds against this Standby Letter of Credit are available to you against your
sight draft(s) drawn on us, referring thereon to the number and date of this
Standby Letter of Credit, accompanied by a written and completed certificate
executed by you in the form attached as Annex 1 hereto, with appropriate
insertions. Multiple, partial drafts may be drawn hereunder. Such available
funds shall not directly or indirectly constitute funds or collateral deposited
with or for the bank account by the [Account Party], or pledged with or for the
bank's account by the [Account Party].

Presentation of such drafts, and such certificates shall be made on any day
which is a business day for us at or prior to 5:00 p.m. (CPT) at our office
located at Milwaukee, Wisconsin, or at any other office in the United States of
America which may be designated by us in a written notice delivered to you. If
such sight draft and such certificate are received at any such office, all in
strict conformity with the terms and conditions of this Standby Letter of
Credit, on or prior to the expiration date hereof, we hereby agree with you that
we will duly honor the same within three (3) business days of such presentation.
Notwithstanding the foregoing, Beneficiary may demand payment under this Standby
Letter of Credit by telecopy or e-mail when promptly confirmed by written
demand; however, actual disbursement of funds pursuant to a demand presented by
telecopy or e-mail shall not occur until we are presented with the original
Standby Letter of Credit.

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This Standby Letter of Credit is effective immediately and expires at 5:00 p.m.
(CPT) on _______, 20__. It is a condition of this Standby Letter of Credit that
it will be deemed automatically extended for successive periods of one year each
from the present or any future expiration date under clause (b) above (but in no
event later than _______, 20__), unless we notify you, in writing, by certified
or registered mail at your respective addresses, not less than ninety (90) days
prior to any such date, that we have elected not to extend such expiration date
for such additional period. Notwithstanding Article 16 of the UCP (as such term
is defined below), any notice of our election not to extend the expiration date
of this Standby Letter of Credit shall be effective only upon actual receipt by
you and no such notice shall have any effect absent such actual receipt. In the
event that the expiration date of this Standby Letter of Credit occurs at such
time as the events described in Article 17 of the UCP (as such term is defined
below) are occurring, said expiration date shall be automatically extended by a
period of time equal to the duration of such events.

We hereby undertake that we will not modify, revoke or terminate this Standby
Letter of Credit without your written consent. Except as stated herein, payment
of drafts drawn under this Standby Letter of Credit is not subject to any
condition or qualification. This Standby Letter of Credit sets forth in full the
terms of our undertaking, and such undertaking shall not be modified, annulled
or amplified by reference to any other document, instrument or agreement
referred to herein or in which the Standby Letter of Credit is referred or to
which the Standby Letter of Credit relates, and any such reference shall not be
deemed to incorporate herein by reference any document, instrument or agreement.
Our obligations hereunder are primary obligations that shall not be affected by
the performance or non-performance by [Account Party] of any obligations under
any loan agreement or under any agreement between [Account Party] and you or
between [Account Party] and us or between [Account Party] and its agents.

We hereby waive any right to set off and apply any and all deposits (general or
special, time or demand, provisional or final) or collateral at any time held
and other indebtedness at any time owing by us to or for the credit of or the
account of Account Party against any and all of the obligations of Account Party
now or hereafter existing to reimburse us for our disbursements under this
Standby Letter of Credit; provided, however, that each such right shall be
reinstated if it is determined that such right would not lead to our being
released, prevented or restrained from or delayed in, honoring any draft
presented in accordance with this Standby Letter of Credit. The foregoing waiver
is intended to defeat any possible claim that honor of this Standby Letter of
Credit, or of any draft presented hereunder, may constitute a preferential
transfer of the bankrupt account party's property securing our right of
reimbursement. Nothing herein shall be construed to support the validity of any
such claim, to support any delay in our obligation to honor this Standby Letter
of Credit or to detract from the independence of our obligation to honor this
Standby Letter of Credit at the times and in accordance with the terms stated
and incorporated by reference herein.

This Standby Letter of Credit is transferable in its entirety (but not in part).
Each letter of credit issued upon any such transfer and assignment may be
successively transferred and assigned. Transfer of this Standby Letter of Credit
to any transferee shall be effected by the presentation to us of this Standby
Letter of Credit accompanied by a certificate in the form attached as Annex 2
hereto, with appropriate insertions. Upon such presentation we shall forthwith
issue an irrevocable

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letter of credit to such transferee with provisions therein consistent with this
Standby Letter of Credit.

To the extent not contrary to the express terms hereof, this Standby Letter of
Credit shall be governed by the Uniform Customs and Practice for Documentary
Credits (1993 Revision), International Chamber of Commerce Publication No. 500
(herein referred to as the "UCP"), or by subsequent Uniform Customs and Practice
fixed by subsequent Congresses of the International Chamber of Commerce. This
Standby Letter of Credit shall be deemed to be a contract made under the laws of
the State of Wisconsin and shall, as to matters not governed by the UCP, be
governed by and construed in accordance with the laws of the State of Wisconsin.

Yours very truly,

[ISSUING BANK]

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ANNEX 1

 

CERTIFICATE

 

Re: Point Beach Nuclear Plant Power Purchase Agreement dated _________, 20__
between [Name of Account Party] ("[Account Party]") and [Name of Beneficiary]
("[Beneficiary]") (the "PPA").

The undersigned, each a duly authorized officer of [Beneficiary], hereby certify
to [ISSUING BANK] (the "Bank") with reference to irrevocable standby letter of
credit no.  (the "Standby Letter of Credit"), issued by the Bank for the account
of [Account Party] in favor of [Beneficiary] that:

(1) (Insert one of the following, as applicable)

Pursuant to the provisions of the PPA, an event has occurred under the PPA that
entitles Beneficiary to draw on the Standby Letter of Credit in the amount of
the sight draft (after giving effect to all applicable periods of grace and
notice), which event remains uncured or unwaived as of the date of this
Certificate (an example of such an event includes, without limitation, an Event
of Default described in the PPA).

or

[Beneficiary] has received written notice from the Bank in accordance with the
terms of the Standby Letter of Credit that the Bank has elected not to extend
the expiration date of the Standby Letter of Credit for an additional period
past its then-expiration date and the Account Party has failed to replace this
Standby Letter of Credit with other [Seller Performance Security][Buyer
Performance Security] meeting the requirements of the PPA at least thirty (30)
days prior to the then-expiration date of the Standby Letter of Credit.

(2) The undersigned are each a duly elected and incumbent officer of
[Beneficiary] and are authorized to execute and deliver this certificate and to
draw upon the Standby Letter of Credit.

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IN WITNESS WHEREOF, the undersigned have executed and delivered this Certificate
as of this       day of           , 20   .

[BENEFICIARY]

 

By:

Title:

 

By:

Title:

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ANNEX 2

INSTRUCTION TO ASSIGN IN ENTIRETY

____________, 20

___________________________

Re: Irrevocable Standby Letter of Credit No.

Gentlemen:

For value received, the undersigned beneficiary hereby irrevocably assigns to:

(Name of Assignee)

 

(Address)

all rights of the undersigned beneficiary to draw under the above Standby Letter
of Credit in its entirety.

By this assignment, all rights of the undersigned beneficiary in such Standby
Letter of Credit are transferred to the assignee and the assignee shall
hereafter have the sole rights as beneficiary thereof.

The Standby Letter of Credit is returned herewith and in accordance therewith we
ask you to issue a new irrevocable Standby Letter of Credit in favor of the
assignee with provisions consistent with the Standby Letter of Credit.

Very truly yours

            [Beneficiary]

By:

Title:

By:

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EXHIBIT G

PEAK ADJUSTMENT PAYMENT

During each month of June, July and August for each Calendar Year of the Term
(the "Peak Period"), Seller must achieve the Target Capacity Factor for the
Facilities as set forth in this Exhibit G. If Seller fails to achieve such
Target Capacity Factor for any such month, Seller shall be responsible for a
payment to Buyer (the "Peak Adjustment Payment") calculated in accordance with
the following formula:

(TEM - DEM) x $20/MWh (in 2007 dollars escalating by three percent (3%) for each
year of the Term)

    where

TEM = Targeted Energy for the month, which shall be the product of: (i) the
applicable Buyer's Capacity Amount for the month (excluding the CT Capacity);
(ii) the number of hours in the month; and (iii) the Target Capacity Factor.

DEM = Delivered Energy for the month.

If the resulting product of the above formula is positive, then such positive
amount shall equal the Peak Adjustment Payment for the month in question and
Seller shall pay that Peak Adjustment Payment in accordance with this Exhibit G.
If the resulting product is zero or negative, then neither Seller nor Buyer
shall owe a Peak Adjustment Payment for the month.

If it is determined that Seller owes Buyer a Peak Adjustment Payment for a
particular month, Buyer shall have the right to either (a) demand payment of
that Peak Adjustment Payment in writing, in which case Seller shall make such
payment to Buyer within five (5) Business Days after the written demand for
payment is received, or (b) include the Peak Adjustment Payment on the invoices
for such Billing Cycle pursuant to Section 7.1(a).

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EXHIBIT H

SCHEDULING PROVISIONS

Scheduling of Generation Offers. Seller shall submit its Generation Offer, as a
DNR, for the Facilities (other than the CT) into the MISO Day-Ahead Market and
the MISO Real-Time Market for dispatch as a must-run generation unit with a
dispatch minimum for each hour of the Operating Day equal to no less than the
full expected Net Energy Output (consistent with the Transmission Provider
Tariff) except as agreed otherwise by Buyer, provided, however, that during any
Derate, Seller shall be obligated to schedule Generation Offers under Section
4.1 and this Exhibit H with respect to the full expected Net Energy Output, and
provided further that Seller shall reasonably coordinate with Buyer in
responding to a negative LMP. Seller shall offer the CT in the MISO Day-Ahead
Market and MISO Real-Time Market in accordance with the Transmission Provider
Tariff.

Scheduling of Financial Bilateral Transactions. Unless otherwise mutually agreed
by the Parties, for each Operating Day, Seller shall submit one or more MISO
FinScheds that reflect the Net Energy Ouptut plus any Replacement Energy for
such Operating Day and Buyer shall accept each such MISO FinSched no later than
the deadline established by MISO for such acceptance, with each utilizing the
appropriate MISO electronic scheduling system and protocols in accordance with
the following Scheduling parameters:

 i.   Seller and Buyer shall work together using commercially reasonable efforts
      to provide the necessary documentation to MISO to facilitate the
      processing of MISO FinScheds;

      

 ii.  At least 48 hours prior to the deadline established by MISO, but no later
      than two Business Days after the relevant Operating Day (the "Scheduling
      Window"), Seller shall submit a MISO FinSched for settlement in the MISO
      Day-Ahead Market for the actual Net Energy Output or Replacement Energy or
      both, as applicable, for the relevant Operating Day;

      

 iii. At least two (2) hours prior to the deadline established by MISO, Buyer
      shall confirm such MISO FinSched submitted by Seller in accordance with
      paragraph (i) above; provided, that if Buyer disputes any component of any
      such MISO FinSched submitted by Seller, Buyer shall promptly notify Seller
      and Buyer and Seller shall cooperate to resolve any discrepancies in a
      timely manner; and

      

 iv.  No true-up to the MISO FinSched shall be made; provided, that Seller may
      make revisions to any MISO FinSched during the applicable Scheduling
      Window by giving Buyer telephonic notice of such revision(s) with
      confirmation (by e-mail or fax) as soon as practicable.

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EXHIBIT I

MAIN GUIDE NO. 3A STANDARDS

(as attached)

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