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                                                                  EXHIBIT 10.23

                            POWER SALE, FUEL SUPPLY
                             AND SERVICES AGREEMENT

         THIS POWER SALE, FUEL SUPPLY AND SERVICES AGREEMENT (this
"Agreement"), dated as of May 1, 2003 (the "Effective Date"), is by and between
MIRANT AMERICAS ENERGY MARKETING, LP, a Delaware limited partnership ("MAEM"),
and MIRANT MID-ATLANTIC, LLC, a Delaware limited liability company (the
"Project Company").

                                    RECITALS

         WHEREAS, Project Company owns and/or leases and operates certain
electric generating facilities as set forth on Exhibit A hereto (the
"Generating Stations");

         WHEREAS, Project Company desires to contract herein to sell capacity,
electricity and/or ancillary services to MAEM, and MAEM desires to purchase
such capacity, electricity and/or ancillary services on the terms and
conditions set forth herein;

         WHEREAS, Project Company desires that MAEM provide fuel to Project
Company, and MAEM desires to provide fuel on the terms and conditions set forth
herein;

         WHEREAS, Project Company desires that MAEM perform certain services
related to the management and operation of the Generating Stations, and MAEM
desires to perform such services; and

         WHEREAS, Project Company and MAEM are parties to certain Prior
Agreements (as defined herein) which shall be terminated and superceded by the
terms of this Agreement.

         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.

         "Affiliate" of a person, firm, corporation, limited liability company,
partnership or other entity (a "Person") means any other Person which, directly
or indirectly, controls, is controlled by or is under common control with such
Person.

         "Asset Book" has the meaning set forth in Section 5.1.


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<PAGE>

         "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 its inability
generally to pay its debts as they become due.

         "Claims" means all claims or actions, threatened or filed, whether
groundless, false or fraudulent, that directly or indirectly relate to the
subject matter of an indemnity, and the resulting losses, damages, expenses,
attorneys' fees and court costs, whether incurred by settlement or otherwise,
and whether such claims or actions are threatened or filed prior to or after
the termination of this Agreement.

         "Delivery Point" means the high side of the generation step-up
transformer located at the Generation Facility, where it connects to the
Transmission Provider's transmission system.

         "Effective Date" has the meaning set forth in the Preamble.

         "Emission Allowances" means authorizations under state or federal (as
applicable) air quality regulations to emit either one ton of nitrogen oxides
("NOx") or sulfur dioxide ("SO2").

         "Event of Default" has the meaning set forth in Section 9.1.

         "Expenses" has the meaning set forth in Section 8.2.

         "Facility Lease Event of Default" shall have the meaning ascribed to
such term in the Participation Agreements dated as of December 18, 2000 among
Mirant Mid-Atlantic, LLC and the owners of the leased assets at the Dickerson
and Morgantown generating stations, Wilmington Trust Company and State Street
Bank and Trust Company of Connecticut, National Association.

         "Force Majeure" means an event or circumstance which prevents one
Party from performing its obligations, which event or circumstance was not
anticipated as of the date the transaction was agreed to, which is not within
the reasonable control of, or the result of the negligence of, the claiming
Party, and which, by the exercise of due diligence, the claiming Party is
unable to overcome or avoid or cause to be avoided. Force Majeure shall not be
based on (i) the loss of MAEM's markets; (ii) MAEM's inability economically to
use or resell the


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Product purchased hereunder; (iii) the loss or failure of Project Company's
supply; or (iv) Project Company's ability to sell the Product at a price
greater than the purchase price set forth in this Agreement. Neither Party may
raise a claim of Force Majeure based in whole or in part on curtailment by a
Transmission Provider unless (i) such Party has contracted for firm
transmission with a transmission provider for the Product to be delivered to or
received at the Delivery Point and (ii) such curtailment is due to "force
majeure" or "uncontrollable force" or a similar term as defined under the
Transmission Provider's tariff; provided, however, that existence of the
foregoing factors shall not be sufficient to conclusively or presumptively
prove the existence of a Force Majeure absent a showing of other facts and
circumstances which in the aggregate with such factors establish that a Force
Majeure as defined in the first sentence hereof has occurred.

         "Fuel" means fuel oil, natural gas or coal, as dictated by context.

         "Generating Stations" has the meaning provided in the recitals.

         "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.

         "Gross Revenues" has the meaning provided in Section 8.2.

         "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.

         "Net Market Revenues" has the meaning set forth in Section 8.2.

         "Offer" or "Offering" means the nomination or offering to sell the
output of the Generating Stations.

         "Other Fuel Agreements" means (i) that certain Solid Synthetic Fuel
Sales Agreement between Oak Mountain Products, LLC and Project Company dated
April 15, 2002, and (ii) any other Fuel supply or transportation agreement
entered into by Project Company with a third party with the consent of MAEM.

         "Other Generators" means Mirant Chalk Point, LLC, Mirant Peaker, LLC
and Mirant Potomac River, LLC, so long as each such company is an Affiliate of
Project Company.


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

         "PJM" means market of PJM Interconnection, LLC, or its successor.

         "Prior Agreements" means (i) that certain EEI Master Power Purchase
and Sale Agreement dated December 18, 2000 and all confirmations related
thereto between Project Company and MAEM, (ii) that certain Services and Risk
Management dated as of March 30, 2001 between Project Company and MAEM and
(iii) that certain Energy and Capacity Sales Agreement dated August 1, 2001
between Project Company and MAEM.

         "Products" means electric capacity, energy and/or ancillary services
or other related products which are or which may become commercially recognized
in PJM during the term of this Agreement.

         "Scheduling" or "Schedule" means the acts of MAEM and/or its
designated representatives of notifying, requesting and confirming to its
counterparties and their designated representatives (including, but not limited
to, PJM or any applicable power pool, Transmission Provider or Transportation
Provider) the quantity and type of Products and/or Fuel to be delivered on any
given day or days during the period of delivery at a specified Delivery Point
or the Generating Stations, as applicable.

         "Transition Power Agreements" means (I) that certain Transition Power
Agreement for the District of Columbia by and between MAEM and Potomac Electric
Power Company, dated December 19, 2000, (ii) that certain Transition Power
Agreement for Maryland by and between MAEM and Potomac Electric Power Company,
dated December 19, 2000, and (iii) agreements between MAEM and third parties to
serve load which has migrated from Potomac Electric Power Company and would
otherwise have been supplied under the foregoing Transition Power Agreements.

         "Transmission Providers" means the entity or entities transmitting
Products on behalf of Project Company or MAEM to or from the Delivery Point
(including, but not limited to, an independent system operator or regional
transmission organization).

         "Transportation Providers" means the entity or entities transporting
Fuel on behalf of Project Company or MAEM to or from the Generating Stations.

                                   ARTICLE 2.
                                  POWER SALES

         2.1      Purchase and Sale of Products. Project Company shall sell and
deliver and MAEM shall purchase, pay for and receive, or cause to be received,
at the Delivery Point, all Products


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produced by the Generating Stations. The purchase price payable to Project
Company for any Product purchased or sold hereunder shall be the amount
actually received by MAEM from a third party for such Product. For purposes of
the foregoing sentence, MAEM shall be deemed to supply the Transition Power
Agreements from the PJM market and shall not be deemed to supply Transition
Power Agreements from Project Company's Generating Stations. In selling
Products produced by the Generating Stations, MAEM shall attempt to maximize
revenues for Project Company.

         2.2      Scheduling and Offering into PJM. MAEM shall be responsible
for the Scheduling of the output of the Generating Stations. MAEM may Offer the
output of the Generating Stations to any customer (including, but not limited
to, PJM or any applicable control area operator, power pool, independent system
operator or Transmission Provider), and shall be responsible for any such
Offering. Without limitation, all such Scheduling and Offering strategies shall
in each case at all times be consistent with:

         (a)      the operating parameters and limitations of the Generating
                  Stations, as provided by Project Company to MAEM;

         (b)      the limitations imposed by any transmission service
                  reservations for the purpose of transmitting Power from the
                  Generating Stations;

         (c)      Project Company's scheduled maintenance plans;

         (d)      the availability of the Generating Stations (including Fuel
                  handling and storage facilities), as communicated by Project
                  Company to MAEM;

         (e)      PJM rules and procedures in effect from time to time;

         (f)      other applicable requirements of any Transmission Provider
                  and/or Transportation Provider;

         (g)      Fuel availability;

         (h)      Good Utility Practices; and

         (i)      Operating protocols agreed to from time to time by the
                  Parties.

         2.3      Transmission and Scheduling. Project Company shall be
responsible for delivery of Products to the Delivery Point. MAEM shall arrange
and be responsible for transmission service at and from the Delivery Point and
shall Schedule or arrange for Scheduling services with its Transmission
Providers to receive all Products at the Delivery Point. MAEM shall manage
energy imbalances on behalf of Project Company and all costs and revenues
associated with energy imbalances will be attributed to the Asset Book and
charged to or paid to Project Company, as such costs and revenues are actually
incurred or received by MAEM.


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<PAGE>

         2.4      Title, Risk of Loss and Indemnity. As between the Parties,
Project Company shall be deemed to be in exclusive possession and control (and
be responsible for any damages or injury caused thereby) of the Products prior
to delivery thereof at the Delivery Point, and MAEM shall be deemed to be in
exclusive possession and control (and be responsible for any damages or injury
caused thereby) of the Products at and after delivery thereof at the Delivery
Point. Project Company warrants that it will deliver to MAEM all Products free
and clear of all liens, claims and encumbrances arising prior to delivery
thereof at the Delivery Point. Title to and risk of loss related to delivered
Products shall transfer from Project Company to MAEM at the Delivery Point.
Each Party shall indemnify, defend and hold harmless each other Party from any
Claims arising from any act or incident occurring during the period when
possession, control and title to Products is vested or deemed to be vested in
the indemnifying Party, except to the extent such Claims arise from such other
Party's breach of this Agreement or its gross negligence or willful misconduct.

         2.5      Regulatory Reports. MAEM will make all quarterly filings to
the Federal Energy Regulatory Commission required for Products produced by the
Generating Stations.

                                   ARTICLE 3.
                                 FUEL SERVICES

         3.1      All Requirements Fuel Supply and Delivery. MAEM shall procure
and supply to Project Company on an exclusive basis all Fuel required by the
Generating Stations in accordance with Good Utility Practices and the terms and
conditions of this Agreement; provided, however, Project Company may procure
Fuel or Fuel transportation or services from third parties to the extent
provided in Other Fuel Agreements.

         3.2      Reimbursement for Fuel. Project Company shall reimburse MAEM
for all Fuel delivered to the Generating Stations as follows:

         (a)      Fuel consisting of natural gas shall be reimbursed at the
market price of such gas, including transportation charges, on the delivery
date.

         (b)      Fuel consisting of fuel oil shall be reimbursed at MAEM's
cost plus transportation charges incurred by MAEM.

         (c)      Fuel consisting of coal shall be reimbursed at MAEM's cost
plus delivery charges and other fees and expenses incurred by MAEM in
connection with the delivery of such coal.

         3.3      Transportation and Scheduling. Except as otherwise provided
in the Other Fuel Agreements, MAEM shall arrange and be responsible for
transportation service to deliver Fuel to the Generating Stations and shall
Schedule or arrange for Scheduling services with its Transportation Providers
to deliver Fuel to the Generating Stations.


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<PAGE>

                                   ARTICLE 4.
                              ADDITIONAL SERVICES

         4.1      Emissions Planning and Related Responsibilities. Upon Project
Company's request, MAEM shall provide Project Company emissions planning, in
consultation with Project Company, to assist in the compliance of the
Generating Stations at all times and on an ongoing basis with all currently
effective emissions requirements, permits and regulations. Upon Project
Company's request, MAEM will procure Emission Allowances necessary for the
operation of the Generating Stations, and dispose of excess Emission
Allowances, which are not needed for the operation of the Generating Stations.
MAEM will charge MAEM's actual cost of acquiring the Emission Allowances and
remit the proceeds of any Emission Allowances sales to Project Company.

         4.2      Insurance. Upon Project Company's request, MAEM will procure
or assist Project Company in procuring business interruption insurance and
forced outage insurance covering the Generating Stations. The costs of such
insurance will be charged to Project Company.

                                   ARTICLE 5
                                   ASSET BOOK

         5.1      Asset Book. MAEM will establish and maintain an asset
management book for the Mid-Atlantic region (the "Asset Book") to track and
measure the financial performance of all hedges and other transactions entered
into with respect to the Generating Stations and the Other Generators'
generating stations, which Asset Book shall be separate from any MAEM trading
book or any other asset book maintained by MAEM for power resources managed by
MAEM.

         5.2      Power Market, Fuel Hedges and Other Transactions. MAEM has
entered or will enter into third party bilateral contracts, forward sales,
financial products (including but not limited to, hedges, swaps, contracts for
differences, options and weather derivatives) and other transactions in
connection with the Products produced by the Generating Stations and Fuel
required to operate the Generating Stations. The costs of such transactions
including, without limitation, purchased power costs, transmission costs, Fuel
transportation costs, third party broker costs, transaction fees and
incremental credit costs, and revenues related to such activities will be
charged to or paid to Project Company and included in the Asset Book. The costs
and revenues associated with the hedges and other transactions in the Asset
Book will be charged to or paid to Project Company, as is further described in
Section 8.2.

                                   ARTICLE 6.
                              TERM AND TERMINATION

         6.1      Term. The initial term of this Agreement shall commence on
the Effective Date and shall continue, unless earlier terminated pursuant to
its terms, until December 31, 2003. The Parties shall negotiate in good faith
to extend this Agreement.


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         6.2      Early Termination Event.

         (a)      In the event a Generating Station is no longer owned or
leased by Project Company, this Agreement shall automatically terminate with
respect to such Generating Station, without penalty and without any further
action required by either Party, as of the effective date of the transfer of
ownership or termination of the lease of the Generating Station.

         (b)      In the event Project Company ceases to be an Affiliate of
MAEM, this Agreement shall automatically terminate, without penalty and without
any further action required by either Party, as of the effective date of the
transfer of ownership or control of Project Company or MAEM, as applicable.

         (c)      In the event lenders or lessors exercise remedies following a
Facility Lease Event of Default, Project Company may terminate this Agreement,
without penalty, upon written notice to MAEM.

         6.3      Termination Events. Upon any termination of this Agreement
(including but not limited to termination pursuant to Section 9.2(a)(ii)
hereof), the Parties shall transfer any outstanding hedges or otherwise settle
any transactions entered into by MAEM in connection with this Agreement which
extend beyond such termination, including but not limited to any agreement or
transactions entered into pursuant to Sections 5.1 and 5.2 hereof. Any such
transfer or settlement shall be consummated in such a manner as to assign or
convey to Project Company the full benefits and obligations of such agreements
or transactions, and to fully release MAEM from any liability or obligation
thereunder. To the extent that MAEM's rights or obligations under any such
agreement or transaction may not be assigned without the consent of a third
party, and such consent has not or cannot be obtained with the commercially
reasonable efforts of the Parties, this provision shall not constitute an
agreement to assign the same if an attempted assignment would constitute a
breach thereof or be unlawful, and the Parties, to the maximum extent permitted
by law and such agreement or transaction, shall enter into such commercially
reasonable arrangements as are necessary to fulfill the intent of this Section
6.3. The Parties further agree to take such actions, and execute and deliver
such agreements, documents, instruments and certificates, as are necessary to
consummate the transactions contemplated by this Section 6.3.

                                   ARTICLE 7.
                         REPRESENTATIONS AND WARRANTIES

         7.1      Project Company's Representations and Warranties. Project
Company makes the following representations and warranties as a basis for its
undertakings contained herein:

         (a)      Project Company is a limited liability company duly organized
and validly existing under the laws of the State of Delaware, is qualified to
do business in each foreign jurisdiction in which it transacts business, and is
in good standing under its certificate of


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formation and the laws of the State of Delaware, has the requisite power and
authority to own its properties, and to carry on its business as now being
conducted.

         (b)      Project Company has full power and authority to enter this
Agreement and perform its obligations hereunder. The execution, delivery and
performance of this Agreement and the consummation of the transactions
contemplated hereby have been duly authorized by all necessary limited
liability company action and do not and will not contravene its organizational
documents or conflict with, result in a breach of, or entitle any party (with
due notice or lapse of time or both) to terminate, accelerate or declare a
default under, any agreement or instrument to which Project Company is a party
or by which Project Company is bound. The execution, delivery and performance
by Project Company of this Agreement will not result in any violation by
Project Company of any law, rule or regulation applicable to it. Project
Company is not a party to, nor subject to or bound by, any judgment, injunction
or decree of any court or other governmental entity which may restrict or
interfere with the performance of this Agreement by it. This Agreement is
Project Company's legal, valid and binding obligation, enforceable against
Project Company in accordance with its terms, except as (i) such enforcement
may be subject to bankruptcy, insolvency, reorganization, moratorium or other
similar laws now or hereafter in effect relating to creditors' rights
generally, and (ii) the remedy of specific performance and injunctive relief
may be subject to equitable defenses and to the discretion of the court before
which any proceeding therefor may be brought.

         (c)      No consent, waiver, order, approval, authorization, permit or
order of, or registration, qualification or filing with, any court or other
governmental agency or authority is required for the execution, delivery and
performance by Project Company of this Agreement and the consummation by
Project Company of the transactions contemplated hereby.

         (d)      Project Company has obtained all necessary governmental
authorizations, approvals, consents, waivers, exceptions, licenses, filings,
registrations, rulings, permits, tariffs, certifications and exemptions to
perform its obligations under this Agreement.

         (e)      There are no Bankruptcy Proceedings pending for Project
Company or, to its knowledge, threatened against it, and there is not pending
or, to its knowledge, threatened against it, any legal proceedings that could
materially adversely affect its ability to perform its obligations under this
Agreement.

         (f)      No Event of Default or event which, with the giving of notice
or lapse of time, or both, would constitute an Event of Default with respect to
Project Company has occurred and is continuing and no such event or
circumstance would occur as a result of its entering into or performing its
obligations under this Agreement or any other document relating to this
Agreement.

         7.2      MAEM's Representations and Warranties. MAEM makes the
following representations and warranties as a basis for its undertakings
contained herein:

         (a)      MAEM is a limited partnership duly organized and validly
existing under the laws of the State of Delaware, is in good standing under its
certificate of limited partnership and


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the laws of the State of Delaware, is qualified to do business in each foreign
jurisdiction in which it transacts business, has the requisite power and
authority to own its properties, and to carry on its business as now being
conducted.

         (b)      MAEM has full power and authority to enter this Agreement and
perform its obligations hereunder. The execution, delivery and performance of
this Agreement and the consummation of the Transactions contemplated hereby
have been duly authorized by all necessary limited partnership action by MAEM
and do not and will not contravene its organizational documents or conflict
with, result in a breach of, or entitle any party (with due notice or lapse of
time or both) to terminate, accelerate or declare a default under, any
agreement or instrument to which MAEM is a party or by which MAEM is bound. The
execution, delivery and performance by MAEM of this Agreement will not result
in any violation by MAEM of any law, rule or regulation applicable to it. MAEM
is not a party to, nor subject to or bound by, any judgment, injunction or
decree of any court or other governmental entity which may restrict or
interfere with the performance of this Agreement by it. This Agreement is
MAEM's legal, valid and binding obligation, enforceable against MAEM in
accordance with its terms, except as (i) such enforcement may be subject to
bankruptcy, insolvency, reorganization, moratorium or other similar laws now or
hereafter in effect relating to creditors' rights generally and (ii) the remedy
of specific performance and injunctive relief may be subject to equitable
defenses and to the discretion of the court before which any proceeding
therefor may be brought.

         (c)      No consent, waiver, order, approval, authorization, permit or
order of, or registration, qualification or filing with, any court or other
governmental agency or authority is required for the execution, delivery and
performance by MAEM of this Agreement and the consummation by MAEM of the
transactions contemplated hereby.

         (d)      MAEM has obtained all necessary governmental authorizations,
approvals, consents, waivers, exceptions, licenses, filings, registrations,
rulings, permits, tariffs, certifications and exemptions to perform its
obligations under this Agreement.

         (e)      There are no Bankruptcy Proceedings pending for MAEM or, to
its knowledge, threatened against it, and there is not pending or, to its
knowledge, threatened against it, any legal proceedings that could materially
adversely affect its ability to perform its obligations under this Agreement.

         (f)      No Event of Default or event which, with the giving of notice
or lapse of time, or both, would constitute an Event of Default with respect to
MAEM has occurred and is continuing and no such event or circumstance would
occur as a result of its entering into or performing its obligations under this
Agreement.

                                   ARTICLE 8.
                              BILLING AND PAYMENT

         8.1      Service Fee. For services rendered by MAEM to Project Company
hereunder, Project Company shall pay MAEM a service fee equal to $341,636 per
month, commencing on


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<PAGE>

the Effective Date. The service fee shall compensate MAEM for administrative
costs in fulfilling its responsibilities to Project Company under this
Agreement, including, but not limited to, personnel costs.

         8.2      Netting. Each month, MAEM shall pay Project Company the
positive Net Market Revenues due for the prior month (or, if Net Market
Revenues for such month are negative, Project Company shall pay MAEM an amount
equal to such negative balance) by wire transfer to the payment address
provided by the recipient 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 render to Project Company a
statement detailing the Net Market Revenues for the prior month, and shall
provide Project Company with supporting documentation for each such monthly
statement, identifying calculations underlying such Net Market Revenues.

                  "Net Market Revenues" means Gross Revenues minus Expenses.
         Net Market Revenues shall be calculated in accordance with GAAP.

         "Gross Revenues" means all revenues for a given period attributed to
         the Asset Book, including, without limitation, revenues from (a) sales
         of all Products from the Generating Stations, (b) other sales of
         Products, (c) Fuel sales, (d) sales or trades of excess Emissions
         Allowances from the Generating Stations, (e) financial products
         (including, but not limited to, swaps, contracts for differences,
         options and weather derivatives) purchased for the Asset Book, and (f)
         forced outage insurance and business interruption insurance proceeds
         (to the extent received by MAEM).

                  "Expenses" means all costs attributed to the Asset Book for
         such period, including (a) costs reimbursable to MAEM pursuant to this
         Agreement for performing the services including, but not limited to,
         costs for (i) Fuel, (ii) Emissions Allowances, (iii) financial
         products (including, but not limited to, swaps, contracts for
         differences, options, and weather derivatives) purchased for the Asset
         Book, (iv) broker and/or transaction fees, (v) transmission congestion
         contracts for sales from the Generating Stations, (vi) forced outage
         insurance costs (to the extent paid by MAEM), (vii) incremental credit
         costs for transactions in the Asset Book, and (viii) other costs in
         connection with the services described in Articles 2, 3 and 4 hereof,
         and (b) the service fee payable to MAEM in accordance with Section 8.1
         hereof.

         8.3      Reports. Project Company and MAEM will cooperate to provide
monthly reports in reasonable detail showing the calculation of the Net Market
Revenues, to enable Project Company to track Net Market Revenues. Project
Company shall have the right, upon reasonable notice, to examine and/or audit
the Asset Book from time to time.

         8.4      Interest and Disputed Amounts. If either 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,


                                      11
<PAGE>

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 9.
                             DEFAULTS AND REMEDIES

         9.1      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 9.1(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.

         9.2      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 11.7.

         (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.


                                      12
<PAGE>

                                  ARTICLE 10.
                                 FORCE MAJEURE

         10.1     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, provided,
however, that this provision shall not require Project Company to deliver, or
MAEM to receive, any Products at points other than the Delivery Point; 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 11.
                            MISCELLANEOUS PROVISIONS

         11.1     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.

         11.2     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 11.2.

         IF TO PROJECT
         COMPANY:                   Mirant Mid-Atlantic, LLC
                                    1155 Perimeter Center West
                                    Atlanta, Georgia 30338
                                    Attention: President

         IF TO MAEM:                Mirant Americas Energy Marketing, LP
                                    1155 Perimeter Center West, Suite 130
                                    Atlanta, Georgia 30338
                                    Attention: Legal Department, Power


                                      13
<PAGE>

         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.

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

         11.4     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.

         11.5     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. Without limiting the generality of
the foregoing, all Prior Agreements are hereby terminated as of the Effective
Date.

         11.6     Amendments. This Agreement may not be amended except by a
writing signed by the Parties.

         11.7     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 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.

         11.8     Limitation on Damages. NEITHER PARTY SHALL BE ENTITLED TO
RECOVER SPECIAL, INDIRECT, INCIDENTAL, CONSEQUENTIAL OR PUNITIVE DAMAGES
HEREUNDER.


                                      14
<PAGE>

         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 AMERICAS ENERGY                         MIRANT MID-ATLANTIC, LLC
         MARKETING, LP

         By MIRANT AMERICAS
         DEVELOPMENT, INC.,
         its General Partner



         By:                                            By:
            --------------------------------               ------------------------------
         Name:  Tim Delay                               Name:  Lisa D. Johnson
         Title: Vice President and Chief Commercial     Title: President
         Officer, East Region
</TABLE>


                                      15
<PAGE>

EXHIBIT A

                         MORGANTOWN GENERATING STATION

<TABLE>
<CAPTION>
----------------------------------------------------------------------------------------------------
                                                              Nameplate        Commercial
         Unit                          Location               Capacity       Operation Date
----------------------------------------------------------------------------------------------------
         <S>                       <C>                        <C>            <C>
         F1                        Charles County, MD            624              1970
----------------------------------------------------------------------------------------------------

         F2                        Charles County, MD            620              1970
----------------------------------------------------------------------------------------------------

         FCT1                      Charles County, MD            16               1971
----------------------------------------------------------------------------------------------------

         FCT2                      Charles County, MD            16               1970
----------------------------------------------------------------------------------------------------

         FCT3                      Charles County, MD            54               1971
----------------------------------------------------------------------------------------------------

         FCT4                      Charles County, MD            54               1973
----------------------------------------------------------------------------------------------------

         FCT5                      Charles County, MD            54               1973
----------------------------------------------------------------------------------------------------

         FCT6                      Charles County, MD            54               1973
----------------------------------------------------------------------------------------------------
</TABLE>

                          DICKERSON GENERATING STATION

<TABLE>
<CAPTION>
----------------------------------------------------------------------------------------------------
                                                                Nameplate        Commercial
        Unit                              Location               Capacity       Operation Date
----------------------------------------------------------------------------------------------------
        <S>                        <C>                          <C>             <C>
         D1                        Montgomery County, MD            182           1959
----------------------------------------------------------------------------------------------------

         D2                        Montgomery County, MD            182           1960
----------------------------------------------------------------------------------------------------

         D3                        Montgomery County, MD            182           1962
----------------------------------------------------------------------------------------------------
</TABLE>


                                      16
<PAGE>

<TABLE>
         <S>                       <C>                              <C>              <C>
         DCT1                      Montgomery County, MD             13              1967
----------------------------------------------------------------------------------------------------

         HCT1                      Montgomery County, MD            147              1992
----------------------------------------------------------------------------------------------------

         HCT2                      Montgomery County, MD            147              1993
----------------------------------------------------------------------------------------------------
</TABLE>


                                      17