<PAGE>
                                                                   EXHIBIT 10.6

                                  SERVICES AND
                            RISK MANAGEMENT AGREEMENT


         THIS SERVICES AND RISK MANAGEMENT AGREEMENT (this "Agreement"), dated
as of March 30, 2001 and effective as of January 1, 2001 (the "Effective Date"),
is by and among MIRANT AMERICAS ENERGY MARKETING L.P. (formerly known as
Southern Company Energy Marketing L.P.), a Delaware limited partnership
("MAEM"), MIRANT CANAL, LLC (formerly known as Southern Energy Canal, L.L.C.), a
Delaware limited liability company ("Canal") and MIRANT KENDALL, LLC (formerly
known as Southern Energy Kendall, L.L.C.), a Delaware limited liability company
("Kendall" and, collectively with Canal, the "Project Companies").

                                    RECITALS

         WHEREAS, the Project Companies own certain electric generation
facilities and associated facilities located in Sandwich, Martha's Vineyard and
Cambridge, Massachusetts (the "Facilities"); and

         WHEREAS, the Parties have entered into those certain Fuel Supply
Agreements (as amended from time to time, the "Fuel Supply Agreements") each
dated April 30, 1999, pursuant to which MAEM supplies the Project Companies with
all fuel necessary for the operation of the Facilities; and

         WHEREAS, the Parties have further entered into those certain Energy
Services Agreements (as amended from time to time, the "Energy Services
Agreements") dated April 30, 1999, pursuant to which MAEM provides certain
services to the Project Companies in connection with the operation of the
Facilities; and

         WHEREAS, the Parties have further entered into those certain Master
Index Purchase and Sale Agreements (as amended from time to time, the "MIPSAs")
each dated as of April 30, 1999, and certain power sales confirmations (the
"Confirmations") related thereto, pursuant to which the Project Companies have
agreed to sell, and MAEM has agreed to purchase, certain Products (hereinafter
defined) produced by the Facilities; and

         WHEREAS, MAEM and the Project Companies have instead agreed to amend
the Fuel Services Agreements, the Energy Services Agreements and the
Confirmations, each where applicable, as set forth herein; and

         WHEREAS, the Project Companies further desire to contract herein with
MAEM to provide the Project Companies certain additional services and MAEM
desires to provide such services to the Project Companies on the terms and
conditions set forth herein; and

<PAGE>

         NOW, THEREFORE, in consideration of the foregoing and the mutual
covenants contained herein, and other good and valuable consideration, the
receipt and sufficiency of which are hereby acknowledged by the Parties, the
Parties hereby agree as follows:

                                   ARTICLE 1.
                                   DEFINITIONS

         The following capitalized terms, whether used in the singular or
plural, shall be defined as provided in this ARTICLE 1.

         "AGENCY PERIOD" has the meaning set forth in SECTION 4.1.

         "BANKRUPTCY PROCEEDING" means, with respect to a Party, that Party (a)
is dissolved (other than pursuant to a consolidation, amalgamation or merger),
(b) makes an assignment or any general arrangement for the benefit of creditors,
(c) institutes or has instituted against it a proceeding seeking a judgment of
insolvency or bankruptcy or any other relief under any bankruptcy or insolvency
or other law affecting creditors' rights and, in the case of any such proceeding
or petition instituted or presented against it, such proceeding or petition (i)
results in a judgment of insolvency or bankruptcy or the entry of an order for
its winding-up or liquidation or (ii) is not withdrawn, dismissed or discharged
within sixty (60) days after the institution or presentation thereof, (d)
otherwise becomes bankrupt or insolvent (however evidenced), (e) has a secured
party take possession of all or substantially all of its assets or has an action
or proceeding taken or levied against all or substantially all of its assets and
such secured party maintains possession, or any such action or proceeding is not
dismissed, in either case for thirty (30) days thereafter, or (f) is unable to
pay its debts or admits in writing its inability generally to pay its debts as
they become due.

         "BIDDING" means the nomination or bidding of the output of the
Facilities in the NEISO.

         "CONFIRMATIONS" shall have the meaning set forth in the recitals to
this Agreement.

         "DISPATCH" means the scheduling of the delivery of Products.

         "ENERGY" means electric energy as defined by ISO-NE.

         "ENERGY SERVICES AGREEMENTS" shall have the meaning set forth in the
recitals to this Agreement.

         "FACILITIES" shall have the meaning set forth in the recitals to this
Agreement.

         "FORCE MAJEURE" means an event which is not within the reasonable
control of a Party which causes such Party to be delayed in or prevented from
performing or carrying out any of its obligations under this Agreement and which
by the exercise of due diligence in accordance with Good Utility Practices, such
Party is unable to overcome or avoid or cause to be avoided, including, without
limitation, acts of God; fire; ice; earthquake; lightning; tornado; hurricane,
or

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other severe weather condition; civil disturbance; labor dispute; labor or
material shortage; sabotage; acts of terrorism; acts of a public enemy;
uprising; insurrection; civil unrest; war or rebellion; explosions; breakage or
accident to machinery or equipment, action or restraint by court order or public
or governmental authority or lawfully established civilian authorities, provided
that a Force Majeure shall not include lack of finances or change in market
conditions, and provided further that any failure of any supplier or
subcontractor of a Party to perform any obligation to such Party will not
constitute a Force Majeure unless such subcontractor or supplier is unable to
perform such obligations for reasons that would constitute a "Force Majeure"
hereunder.

         "FUEL" means fuel oil, diesel fuel, jet fuel or natural gas, as
dictated by context.

         "FUEL SUPPLY AGREEMENTS" shall have the meaning set forth in the
recitals to this Agreement.

         "GOOD UTILITY PRACTICES" mean any of the practices, methods or acts
engaged in or approved by a significant portion of the electric energy industry
with respect to similar facilities during the relevant time period which in each
case, in the exercise of reasonable judgment in light of the facts known or that
should have been known at the time a decision was made, could have been expected
to accomplish the desired result at reasonable cost consistent with good
business practices, reliability, safety, law, regulation, environmental
protection and expedition. Good Utility Practices are not intended to be limited
to the optimum practices, methods or acts to the exclusion of all others, but
rather to delineate the acceptable practices, methods or acts generally accepted
in such industry.

         "INTEREST RATE" means, for any date, two percent (2%) over the per
annum rate of interest equal to the prime lending rate as may from time to time
be published in the Wall Street Journal under "Money Rates"; provided that the
Interest Rate shall never exceed the maximum interest rate permitted by
applicable law.

         "ISO-NE" means the ISO-New England, Inc.

         "MIPSA" shall have the meaning set forth in the recitals to this
Agreement.

         "NEW ENGLAND ASSET BOOK" has the meaning set forth in SECTION 5.1.

         "PARTY" means any of MAEM, Canal or Kendall. In the context where MAEM
is referenced as a "Party," a reference to the "other Party" shall mean the
Project Companies. In the context where the Project Companies are referenced as
a "Party," a reference to the "other Party" shall mean MAEM. References to
"either Party" or the "Parties" shall have comparable meanings.

         "PRODUCTS" means Energy and/or other products and ancillary services
either identified in the Confirmations and having the qualities, properties and
other characteristics therein or which become commercially recognized in the
ISO-NE market during the term of this Agreement.


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<PAGE>

                                   ARTICLE 2.
                                      TERM

         The term of this Agreement shall commence as of the Effective Date and
shall continue, unless earlier terminated pursuant to its terms, until December
31, 2001. The Parties hereby agree that, beginning three (3) months prior to the
expiration of such term, the Parties shall, if any Party deems it necessary or
advisable, enter into good faith negotiations of an extension or replacement to
the Agreement.

                                   ARTICLE 3.
                         SERVICES TO BE PROVIDED BY MAEM

         3.1 BIDDING, DISPATCH, BILLING AND SETTLEMENT. MAEM shall provide
Bidding, Dispatch, billing and settlement services to the Project Companies
pursuant to the terms of the Energy Services Agreements.

         3.2 FUEL SERVICES. MAEM shall provide the Project Companies with fuel
procurement and related services pursuant to the terms of the Fuel Supply
Agreements, except that (a) the purchase price for all Fuel shall be at the
Actual Cost Fuel Price (under and as defined in the Fuel Supply Agreements), and
(b) during any Agency Period, MAEM shall procure fuel as agent to the Project
Companies pursuant to the terms of ARTICLE 4 hereof.

         3.3 EMISSIONS PLANNING AND RELATED RESPONSIBILITIES. MAEM shall provide
the Project Companies emissions planning, in consultation with the Project
Companies, pursuant to Sections 3.7, 3.8 and 3.9 of the Canal Energy Services
Agreement and Section 3.6 of the Kendall Energy Services Agreement.

         3.4 INSURANCE. MAEM will procure or assist the Project Companies in
procuring business interruption insurance and forced outage insurance covering
the Facilities. The costs of such insurance will be charged to the Project
Companies.

         3.5 FINANCIAL PRODUCTS. MAEM will enter into financial products
(including but not limited to, swaps, contracts for differences, options and
weather derivatives) purchased for the Project Companies. The gains and losses
arising from such financial products will be borne by the Project Companies, and
therefore the costs, including without limitation third party broker costs and
transaction fees, and revenues related to such financial products will be
charged to or paid to the Project Companies.

         3.6 POWER MARKET TRANSACTIONS. MAEM will enter into third party
bilateral contracts, forward sales, hedges and other transactions in connection
with the sale of the Products. The gains and losses arising from such financial
products will be borne by the Project Companies, and therefore the costs of such
transactions, including without limitation, purchased power costs, transmission
costs, third party broker costs, transaction fees and incremental credit costs,
and revenues related to such activities will be charged to or paid to the
Project Companies.

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         3.7 COLLECTIONS. The Parties hereby confirm that the purchase price for
all Products produced by the Project Companies, including without limitation for
products delivered prior to the date hereof, shall be the amounts actually
collected by MAEM from third party purchasers (including without limitation the
ISO-NE) in respect of such products, and MAEM shall have no liability to the
Project Companies for any failure of such third parties to pay the full purchase
price for such products. MAEM shall use commercially reasonable efforts to
collect all amounts due from such third parties and shall take such actions as
may be reasonably requested by the Project Companies to collect such amounts.


                                   ARTICLE 4.
                          PROCUREMENT OF FUEL AS AGENT

         4.1 DETERMINATION OF AGENCY PERIOD. If, at any time, MAEM determines
that the creditworthiness of the Project Companies is impaired, MAEM may, at its
sole discretion and upon written notice to the Project Companies, elect to
suspend fuel procurement under the Fuel Supply Agreements for a period until
such creditworthiness is restored (each such period, an "Agency Period"). During
any such Agency Period, MAEM shall act solely as agent to the Project Companies
under this Agreement in taking the actions set forth in SECTION 4.2 below.

         4.2 OBLIGATIONS DURING AGENCY PERIOD. During any Agency Period, MAEM's
sole obligation shall be to use commercially reasonable efforts to procure fuel
as agent of and for the account of the Project Companies, and MAEM shall have no
obligation to provide credit enhancement to any supplier of the Project
Companies. MAEM shall have no liability to either of the Project Companies if
fuel suppliers do not agree to supply fuel to the Project Companies due to a
lack of creditworthiness of the Project Companies. As agent, MAEM shall neither
directly purchase or contract for the purchase of, nor take title to or
possession and control of, any fuel procured for the account of the Project
Companies, and MAEM shall have no liability to any fuel supplier or the Project
Companies for nonpayment for or nondelivery of procured fuels, as appropriate.
During any Agency Period, as between MAEM and the Project Companies, the Project
Companies shall be deemed to have title, exclusive possession and control of all
procured fuel at all times, and any risk of loss associated with any such
procured fuel shall be born by the Project Companies.

         4.3 TERMINATION OF AGENCY PERIOD. Each Agency Period shall continue
until the Project Companies can demonstrate to MAEM that the Project Companies'
creditworthiness has been restored, as reasonably determined by MAEM. After a
positive determination as to such creditworthiness, the applicable Agency Period
shall be terminated by MAEM by written notice to Project Companies, and MAEM
shall resume procuring fuel for the Project Companies under the Fuel Supply
Agreements.


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<PAGE>

                                   ARTICLE 5.
                           BONUS, BILLING AND PAYMENT

         5.1 NEW ENGLAND ASSET BOOK. MAEM will establish and maintain an asset
management book (the "New England Asset Book") to track and measure the
financial performance of the Project Companies assets. The New England Asset
Book will be separate from any MAEM trading book or any other asset book
maintained by MAEM for power resources owned or managed by MAEM.

         5.2 BONUS.

         (a) MAEM will be entitled to a bonus from the Project Companies equal
to the Bonus Percentage of the amount by which the Net Market Revenues in any
year exceeds the Threshold Amount for such year, determined as follows:

         "Net Market Revenues" means all revenues for a given year attributed to
         the New England Asset Book and actually received by MAEM, including,
         without limitation, payments for sales of capacity, energy and
         ancillary services, fuel and fuel transportation rights, and hedges and
         other risk management instruments entered into by MAEM on behalf of the
         Project Companies MINUS all costs attributed to the asset books for
         such year, including costs reimbursed to MAEM for fuel and services and
         MINUS all Through-Put Charges under Section 4.3 of the Canal Fuel
         Supply Agreement. Net Market Revenues shall be calculated in accordance
         with GAAP.

         "Threshold Amount" means $88,051,000.00 for 2001.

         "Bonus Percentage" means 50% for 2001.

         (b) If this Agreement is extended pursuant to ARTICLE 2 hereof, the
Threshold Amount and Bonus Percentage for subsequent years shall be determined
by mutual agreement between MAEM and the Project Companies as a reasonable
amount based on upon assumptions consistent in all material respects with
relevant contracts and agreements, historical operations, and the parties' good
faith projections of future revenues and projections of operating expenses for
the Project Companies in light of the then existing or reasonably expected
regulatory and market environments in the markets in which the facilities or
other assets owned by the Project Companies will be operated.

         (c) The bonus shall not be payable until the Threshold Amount is
reached. Upon reaching the Threshold Amount, such bonus will be paid on a
monthly basis in accordance with SECTION 5.3 hereof.

         5.3 BILLING AND PAYMENT. MAEM shall pay the Project Companies any Net
Market Revenues due for the prior month by wire transfer to the payment address
provided by the Project Companies on or before the twentieth (20th) day of each
month, or if such day is not a business day, the immediately following business
day. At the time of each monthly payment, MAEM shall


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render to the Project Companies a statement detailing the Net Market Revenues
for the prior month, and shall provide the Project Companies with reasonable
supporting documentation for each such monthly statement, identifying with
reasonable specificity calculations underlying such Net Market Revenues. All
payments between MAEM and the Project Companies will be netted so that MAEM pays
the Project Companies the Net Market Revenues minus any bonus payable pursuant
to SECTION 5.2.

         5.4 REPORTS. The Project Companies and MAEM will cooperate to provide
monthly reports in reasonable detail showing the calculation of the Net Market
Revenues, with appropriate breakdown by generating unit and station, to enable
the Project Companies to allocate Net Market Revenues and bonus payments to
MAEM, if any, between the Project Companies. Each of the Project Companies will
have the right, upon reasonable notice, to examine and/or audit the New England
Asset Book from time to time.

         5.5 INTEREST AND DISPUTED AMOUNTS. If any Party fails to make any
payment on or before the applicable payment due date, such overdue amounts shall
accrue interest at the Interest Rate from, and including, the applicable payment
due date to, but excluding, the date of payment. Any disputed invoiced amounts,
except amounts which are manifestly inaccurate, shall be paid in full on the
applicable payment due date, subject to later return together with interest
accrued at the Interest Rate. Overpayments or underpayments identified by the
Parties shall be returned or credited, together with interest accrued at the
Interest Rate, to their rightful owners in the first following month.

                                   ARTICLE 6.
                              DEFAULTS AND REMEDIES

         6.1 EVENTS OF DEFAULT. Any one or more of the following shall
constitute an "Event of Default" hereunder with respect to a Party:

         (a) default shall occur in the payment of any amounts due from such
Party hereunder which shall continue for more than ten (10) days after written
notice from the other Party;

         (b) other than as provided in SECTION 6.1(a) above, default shall occur
in the performance of any covenant or condition to be performed by such Party
under this Agreement and such default shall continue unremedied for a period of
thirty (30) days after written notice from the other Party specifying the nature
of such default;

         (c) a Bankruptcy Proceeding has occurred with respect to such Party; or

         (d) a representation or warranty made by such Party herein shall have
been false or misleading in any material respect when made; provided, however,
if such representation or warranty is capable of being corrected, no Event of
Default shall have occurred if such Party is diligently pursuing such correction
and such representation or warranty is corrected within thirty (30) days of such
Party obtaining knowledge of the false and misleading nature of the statement.


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<PAGE>

         6.2 REMEDIES. The Parties shall have the following remedies available
to them hereunder:

         (a) Upon the occurrence of an Event of Default by either Party
hereunder, the non-defaulting Party shall have the right (i) to collect all
amounts then or thereafter due to it from the defaulting Party hereunder, and
(ii) upon written notice to the other Party, to terminate this Agreement at any
time during the continuation of such Event of Default. The terminating Party
shall have all rights and remedies available to it under applicable law, subject
to the limitations set forth in SECTION 8.7.

         (b) Without limiting the foregoing, any unexcused breach of this
Agreement or failure of either Party to perform its obligations hereunder shall
subject such Party to the payment of actual damages to the other Party,
regardless of any cure period.

                                   ARTICLE 7.
                                  FORCE MAJEURE

         If either Party is rendered wholly or partly unable to perform its
obligations under this Agreement because of a Force Majeure event, that Party
will be excused from whatever performance is affected by the Force Majeure event
to the extent so affected, provided that (a) the non-performing Party, as soon
as practical after knowing of the occurrence of the Force Majeure event, gives
the other Party written notice describing the particulars of the occurrence; (b)
the suspension of performance is of no greater scope and of no longer duration
than is reasonably required by the Force Majeure event; (c) the non-performing
Party uses commercially reasonable efforts to overcome or mitigate the effects
of such occurrence; and (d) when the non-performing Party is able to resume
performance of its obligations hereunder, that Party shall give the other Party
written notice to that effect and shall promptly resume such performance.

                                   ARTICLE 8.
                            MISCELLANEOUS PROVISIONS

         8.1 ASSIGNMENT; SUCCESSORS AND ASSIGNS. No assignment or delegation by
either Party (or any successor or assignee thereof) of this Agreement, in whole
or in part, shall be made or become effective without the prior written consent
of the other Party in each case obtained, which consent may not be unreasonably
withheld. Any assignments or delegations by either Party shall be in such form
as to assure that such Party's obligations under this Agreement will be honored
fully and timely by any succeeding party.

         8.2 NOTICES. All notices, requests and other communications hereunder
(herein collectively a "notice" or "notices") shall be deemed to have been duly
delivered, given or made to or upon any Party hereto if in writing and delivered
by hand against receipt, or by certified or registered mail, postage pre-paid,
return receipt requested, or to a courier who guarantees next business day
delivery or sent by telecopy (with confirmation) to such Party at its address
set forth below or to such other address as such Party may at any time, or from
time to time, direct by notice given in accordance with this SECTION 8.2.


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<TABLE>
<S>                        <C>
         IF TO CANAL:      Mirant Canal, LLC
                           1155 Perimeter Center Place
                           Atlanta, Georgia 30338
                           Attention: President and Chief Executive Officer

         IF TO KENDALL:    Mirant Kendall, LLC
                           1155 Perimeter Center Place
                           Atlanta, Georgia 30338
                           Attention: President and Chief Executive Officer

         IF TO MAEM:       Mirant Americas Energy Marketing L.P.
                           1155 Perimeter Center Place
                           Atlanta, Georgia 30338
                           Attention:  Vice President, West Region
</TABLE>

The date of delivery of any such notice, request or other communication shall be
the earlier of (i) the date of actual receipt or (ii) three (3) business days
after such notice, request or other communication is sent by certified or
registered mail, (iii) if sent by courier who guarantees next business day
delivery, the business day next following the day of such notice, request or
other communication is actually delivered to the courier or (iv) the day
actually telecopied.

         8.3 GOVERNING LAW. THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED
UNDER THE LAWS OF THE COMMONWEALTH OF MASSACHUSETTS WITHOUT GIVING EFFECT TO
PRINCIPLES OF CONFLICTS OF LAW THAT WOULD OTHERWISE CAUSE THE LAW OF ANY STATE
OR COMMONWEALTH OTHER THAN MASSACHUSETTS TO APPLY.

         8.4 COMPLIANCE WITH LAWS. At all times during the term of this
Agreement, the Parties shall comply with all laws, rules, regulations, and codes
of all governmental authorities having jurisdiction over each of their
respective businesses which are now applicable, or may be applicable hereafter,
including without limitation, all special laws, policies, ordinances, or
regulations now in force, as amended or hereafter enacted. The Parties hereto
shall maintain all licenses, permits and other consents from all governmental
authorities having jurisdiction for the necessary use and operation of their
respective business. Nothing herein shall be deemed a waiver of the Parties'
right to challenge the validity of any such law, rule or regulation.

         8.5 ENTIRE AGREEMENT. This Agreement sets forth the entire agreement of
the Parties with respect to the subject matter herein and takes precedence over
all prior understandings. This Agreement may not be amended except by a writing
signed by the Parties. The Parties agree to take such further actions and
execute such documents and instruments as they may deem necessary or desirable
in connection with the terms of this Agreement.

         8.6 SEVERABILITY. The invalidity or unenforceability of any provisions
of this Agreement shall not affect the other provisions hereof. If any provision
of this Agreement is held

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to be invalid, such provisions shall not be severed from this Agreement;
instead, the scope of the rights and duties created thereby shall be reduced by
the smallest extent necessary to conform such provision to the applicable law,
preserving to the greatest extent the intent of the Parties to create such
rights and duties as set out herein. If necessary to preserve the intent of the
Parties hereto, the Parties shall negotiate in good faith to amend this
Agreement, adopting a substitute provision for the one deemed invalid or
unenforceable that is legally binding and enforceable and which restores to the
two Parties to the greatest extent possible the benefit of their respective
bargains on the Effective Date.

         8.7 LIMITATION ON DAMAGES. NEITHER PARTY SHALL BE ENTITLED TO RECOVER
SPECIAL, INDIRECT, INCIDENTAL, CONSEQUENTIAL OR PUNITIVE DAMAGES HEREUNDER.

         IN WITNESS WHEREOF, and intending to be legally bound hereby, the
Parties hereto have caused this Agreement to be duly executed as an instrument
under seal by their respective duly authorized officers as of the date and year
first above written.

<TABLE>
<S>                                       <C>
MIRANT CANAL, LLC                         MIRANT KENDALL, LLC

By:                                       By:
   ------------------------------            -------------------------------
Name:                                     Name:
     ----------------------------              -----------------------------
Title:                                    Title:
      ---------------------------               ----------------------------
</TABLE>


MIRANT AMERICAS ENERGY
MARKETING L.P.

By MIRANT AMERICAS
DEVELOPMENT, INC.,
its General Partner


By:
   ------------------------------
Name:
     ----------------------------
Title:
      ---------------------------



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