<PAGE>
                                                                    EXHIBIT 10.L


               CAMDEN POWER PURCHASE/SALE TRANSACTION CONFIRMATION

SELLER:                                         BUYER:
     Camden Cogen L.P.                             El Paso Merchant Energy, L.P.
     570 Chelton Avenue                            1001 Louisiana Street
     Camden, New Jersey 08104                      Houston, TX 77002
     Attn: Operations Supervisor                   Attn: Vice President
     Telephone: (856) 338-1000 (ext. 13)           Telephone: (713) 420-6291
     Facsimile: (856) 963-2411                     Facsimile: (713) 420-6356
     Attn:  General Manager
            (during business hours)
     Telephone: (856) 963-2269
     Facsimile: (856) 963-2411

This document ("Camden Transaction Confirmation") evidences the terms of the
binding agreement reached between El Paso Merchant Energy, L.P. ("EPME") and
Camden Cogen L.P. (each a "Party" and together the "Parties") on October 1, 2001
regarding the purchase and sale of the Energy as described below (the
"Transaction"). Seller agrees to sell and deliver and Buyer agrees to buy and
accept Energy of the quantity, at the price, and on the terms and conditions as
set forth below:

BUYER:                  El Paso Merchant Energy, L.P.

SELLER:                 Camden Cogen L.P.

ENERGY:                 The Energy, as determined by ambient conditions, outages
                        and deratings, produced by the Seller's generating
                        facility (exclusive of the energy consumed by the
                        Facility's in-plant load) located in Camden, New Jersey
                        (the "Facility"), expressed in megawatt-hours ("MWh")
                        and megawatts ("MW"), of the character commonly known as
                        three-phase, sixty-hertz electric energy. During the
                        months of June through September (the "Summer Period"),
                        approximately 125 MW of such Energy will be available to
                        be Scheduled, and during the months of October through
                        May (the "Winter Period"), approximately 130 MW of such
                        Energy will be available to be Scheduled (collectively
                        "Primary Energy"). During all months of the year, in
                        addition to the Primary Energy, approximately 20 MW of
                        additional Energy will be available to be Scheduled
                        ("Peaking Energy"). Except as otherwise provided herein,
                        Seller shall deliver Energy hereunder from the Facility,
                        if the Facility is available for such delivery, or
                        provide Replacement Power in accordance with "Special
                        Provisions" below.


<PAGE>

PERIOD OF DELIVERY:     The term of this Transaction shall commence on the
                        Effective Date (as defined in the Amended and Restated
                        Power Purchase Agreement, dated as of May 23, 2001,
                        between Public Service Electric and Gas Company and
                        Cedar Brakes II, L.L.C. (formerly known as Cedar Brakes
                        IV, L.L.C.) and defined hereinafter as the "Effective
                        Date") and shall continue through March 5, 2013, unless
                        earlier terminated pursuant to another provision in this
                        Camden Transaction Confirmation.

SCHEDULE:               Not less than five (5) business days prior to the start
                        of each month in the Period of Delivery, Buyer shall
                        declare to the Seller by written notice its intention
                        not to utilize the Energy of the Facility during the
                        following month (a "Non-utilization Notice"). During
                        months in which the Buyer has delivered a
                        Non-utilization Notice, the Buyer shall not have the
                        right to schedule Energy or ancillary services available
                        from the Facility. During months in which no such
                        Non-utilization Notice has been delivered, Buyer shall
                        have the right to schedule Primary Energy and Peaking
                        Energy available from the Facility in accordance with
                        the PJM Interconnection, L.L.C. ("PJM") procedures for
                        eSchedule transactions. Buyer shall schedule Primary
                        Energy for a four (4) hour minimum delivery per day.
                        Buyer shall schedule Peaking Energy for a one (1) hour
                        minimum delivery during hours when Primary Energy is
                        scheduled; provided that multiple, non-contiguous
                        minimum deliveries for Peaking Energy may be
                        scheduled within a scheduled delivery for Primary
                        Energy. Buyer shall notify Seller with four (4) hours
                        prior notice of its intention to exercise its right to
                        schedule Primary Energy and with one (1) hour prior
                        notice of its intention to exercise its right to
                        schedule Peaking Energy. Buyer will provide Seller with
                        the applicable schedule when exercised and may revise
                        the Primary Energy schedule upon one (1) hour notice to
                        Seller. If Buyer fails to schedule the energy by the
                        deadline specified herein, then Seller may sell the
                        Energy to a third party in accordance with "Special
                        Provisions" below.

DELIVERY POINT(S):      The Delivery Point shall be at (i) the Camden busbar or
                        (ii) any other point (the "Alternate Delivery Point") in
                        the PJM control area. Seller will pay all applicable
                        transmission costs, operating reserves, congestion
                        charges or losses in the event that it elects a Delivery
                        Point in accordance with (ii) above.

                                      -2-

<PAGE>

FAILURE TO DELIVER:     Seller shall operate the Facility using Prudent
                        Electrical Practices (as defined below). If Seller fails
                        to deliver Energy Scheduled by Buyer hereunder due to
                        scheduled maintenance, a forced outage or a Force
                        Majeure event (as defined below) affecting the Facility,
                        Seller shall bear no penalty. If Seller fails to deliver
                        Energy Scheduled by Buyer hereunder for any reason other
                        than scheduled maintenance, a forced outage, or a Force
                        Majeure event, Seller shall pay Buyer an amount equal to
                        (if positive) the difference between (i) the PJM
                        locational marginal price at the Delivery Point at the
                        time such Energy was Scheduled to be delivered and (ii)
                        the Energy Price.

CONDITION PRECEDENT:    As a condition precedent to the effectiveness of this
                        Camden Transaction Confirmation, prior to the Effective
                        Date, Seller shall execute and deliver to Buyer an
                        agreement providing for the supply from Seller to Buyer
                        of capacity from the Facility on terms and conditions
                        acceptable to Buyer.

FORCE MAJEURE:          The term "Force Majeure" as used herein shall mean,
                        cover and include acts of God, epidemics, landslides,
                        hurricanes, floods, washouts, lightning, earthquakes,
                        storms, perils of the sea, hurricane or storm warnings
                        (to the extent that such warnings cause an evacuation of
                        the Facilities and restrict delivery under this Camden
                        Transaction Confirmation), restraints of any court or
                        governmental or regulatory authorities, acts of civil
                        disorder, acts of industrial disorder which are part of
                        a national or regional strike or labor dispute,
                        accidents to any transmission facilities, freezing of
                        facilities or other equipment, necessities for making
                        repairs or alterations to machinery or equipment, the
                        failure of any governmental authority to grant or renew
                        authorizations to permit Buyer to resell Energy, or any
                        cause, whether of the kind enumerated in this Camden
                        Transaction Confirmation or otherwise, that in the event
                        of each of the above described events or circumstances
                        (a) restricts or prevents performance under this Camden
                        Transaction Confirmation, (b) is not reasonably within
                        the control of the Party claiming suspension and (c) by
                        the exercise of due diligence, such Party is unable to
                        prevent or overcome; provided, however, the settlement
                        of any labor dispute shall be within the sole discretion
                        of the Party to this Camden Transaction Confirmation
                        involved in such labor dispute, and the above

                                      -3-

<PAGE>

                        requirement that an inability shall be corrected with
                        reasonable diligence shall not apply to labor disputes.

PRUDENT ELECTRICAL
PRACTICES:              Those practices, methods, and equipment, as changed from
                        time to time, that are commonly used in the United
                        States to prudently operate electric equipment lawfully
                        and with safety, dependability, efficiency and economy.

CONTRACT QUANTITY:      The Energy, as determined by ambient conditions, outages
                        and deratings, produced by the Facility. The quantity of
                        such Energy is: during the Summer Period, approximately
                        125 MW of Primary Energy per hour; during the Winter
                        Period, approximately 130 MW of Primary Energy per hour;
                        and during any month of the year, approximately 20 MW of
                        Peaking Energy per hour.

RESERVATION PAYMENT:    In addition to the Energy Price set forth below, each
                        month during the Period of Delivery Buyer shall pay to
                        Seller, when payment for Energy delivered hereunder is
                        due an amount equal to the product of (i) six thousand
                        nine hundred dollars ($6,900.00) per MW (which on
                        January 1, 2003 and each January 1 thereafter shall be
                        escalated by one and twenty-five hundredths percent
                        (1.25%)) and (ii) 145 MW during the Summer Period or 150
                        MW during the Winter Period, as applicable.

ENERGY PRICE:           For each MWh of Primary Energy Scheduled and received by
                        Buyer hereunder, Buyer shall pay to Seller, an amount
                        equal to the sum of (a) the product of (i) the Gas Daily
                        midpoint price per MMBtu set forth in Gas Daily for
                        TETCO M-3 for such day plus $.02 per MMBtu (expressed in
                        $/MMBtu) for the day during which the Primary Energy was
                        delivered and (ii) a heat rate conversion factor of 8.7
                        (MMBtu/MWh) during the Summer Period or 8.2 (MMBtu/MWh)
                        during the Winter Period, as applicable, and (b) two
                        dollars and sixty cents ($2.60) per MWh (which on
                        January 1, 2003 and each January 1 thereafter shall be
                        escalated by four percent (4.0%)).

                        For each MWh of Peaking Energy Scheduled and received by
                        Buyer hereunder, Buyer shall pay to Seller an amount
                        equal to the sum of (a) the product of (i) the Gas Daily
                        midpoint price per MMBtu set forth in Gas Daily for
                        TETCO M-3 for such day plus $.02 per MMBtu (expressed in
                        $/MMBtu) for

                                      -4-

<PAGE>

                        the day during which the Peaking Energy was delivered
                        and (ii) a heat rate conversion factor of 12.0
                        (MMBtu/MWh) and (b) one dollar and twenty cents ($1.20)
                        per MWh (which on January 1, 2003 and each January 1
                        thereafter shall be escalated by two and five tenths
                        percent (2.5%)).

START UP COSTS:         For each non-contiguous period of Scheduled Primary
                        Energy, Buyer shall pay to Seller a start up cost equal
                        to the sum of (a) the product of (i) 1,800 MMBtus and
                        (ii) the Gas Daily midpoint price per MMBtu set forth in
                        Gas Daily for TETCO M-3 for such day plus $.02 per MMBtu
                        (expressed in $/MMBtu) and (b) six thousand dollars
                        ($6,000.00) (which on January 1, 2003 and each January 1
                        thereafter shall be escalated by four percent (4.0%)).

FUEL:                   Seller shall purchase gas or other fuel necessary for
                        the generation of Energy hereunder.

LIQUIDATION:            In the event a Party defaults hereunder, the
                        non-defaulting Party shall have the right, upon at least
                        five (5) business days' prior written notice, to
                        liquidate and terminate the remaining term of this
                        Transaction at any time and from time to time, and shall
                        calculate, in a commercially reasonable manner, a
                        Settlement Amount for the Transaction as of the time of
                        its termination or as soon thereafter as is reasonably
                        practicable and shall net such Settlement Amounts to the
                        defaulting party as provided herein.

                        The non-defaulting Party shall set off (i) all such
                        Settlement Amounts that are due to the defaulting Party,
                        plus (at the non-defaulting Party's election) any or all
                        other amounts due to the defaulting Party against (ii)
                        all such Settlement Amounts that are due to the
                        non-defaulting Party, plus (at the non-defaulting
                        Party's election) any or all other amounts due to the
                        non-defaulting Party under the Transaction, so that all
                        such amounts shall be netted to a single liquidated
                        amount payable by one Party to the other. A Party with a
                        payment obligation shall pay such amount to the other
                        Party within one (1) business day of such netting.

                        "SETTLEMENT AMOUNT" means, with respect to the
                        Transaction, the product of (a) the difference between
                        (i) the Energy Price and (ii) the Market Price on the
                        date of any such early termination (the "Early
                        Termination Date") and

                                      -5-

<PAGE>

                        (b) the quantity of Energy which the Parties committed
                        to deliver or take herein and is remaining undelivered
                        on the date of such Early Termination Date, discounted
                        to present value; provided, however, that in the case of
                        an option, Settlement Amount means an amount
                        representing such option's market value to the
                        non-affected party determined in a commercially
                        reasonable manner as of the Early Termination Date.

                        "MARKET PRICE" means, in determining the Settlement
                        Amount, the market price per unit as of the Early
                        Termination Date for a comparable transaction, as
                        determined in a commercially reasonably manner.

ADDITIONAL
REPRESENTATION:         Seller represents and warrants to Buyer that Seller has
                        all necessary corporate approvals and all state and
                        federal regulatory authorizations, consents and
                        approvals necessary to enter into, perform and Schedule
                        pursuant to this Transaction.

SPECIAL PROVISIONS:     Seller may at any time provide all or a portion of the
                        Energy Scheduled by Buyer hereunder from a source not
                        part of the Facility, provided that Seller shall also
                        make available ancillary services to Buyer during any
                        time that Seller provides Power from a source other than
                        the Facility ("Replacement Power"). Seller shall bear
                        the cost of delivering Replacement Power to Buyer at the
                        Delivery Point, including, in the event Replacement
                        Power is delivered to an Alternate Delivery Point,
                        reimbursement to Buyer for all incremental
                        transportation expenses (including, but not limited to,
                        scheduling fees, redispatch costs, congestion management
                        fees, line losses and similar costs) incurred by Buyer
                        as a result of its election to allow Seller to deliver
                        Replacement Power at such Alternate Delivery Point.

                        Seller may market Energy and ancillary services from the
                        Facility in any month that Buyer provides a
                        Non-utilization Notice or when Seller makes available to
                        Buyer Replacement Power for the entire month. To the
                        extent Seller elects to offer Replacement Power, in
                        order to be deemed acceptable hereunder, the Replacement
                        Power made available by Seller must exactly replicate
                        the products otherwise available from the Facility,
                        available for a term of one (1) month or longer

                                      -6-

<PAGE>

                        and notice of the availability of such Replacement Power
                        must be provided to Buyer five (5) days prior to the
                        start of the applicable month. Seller shall not market
                        the Energy of the Facility during any month (i) for
                        which Buyer does not make such declaration by providing
                        such notice to Seller of its intent not to use the
                        Energy, or (ii) Seller does not provide Replacement
                        Power on the terms set forth herein.

                        In months for which Buyer has not provided a
                        Non-utilization Notice, subject to Buyer's rights to
                        receive Energy and ancillary services from the Facility,
                        Seller shall have the right to sell any Energy that the
                        Facility is capable of generating, and ancillary
                        services that the Facility is capable of providing, that
                        are not Scheduled or dispatched by Buyer hereunder or
                        that Buyer is not permitted to Schedule or dispatch
                        pursuant to the terms of this Camden Transaction
                        Confirmation. Seller may not market any Energy or
                        ancillary services from the Facility unless the Energy
                        necessary to provide such service was declared by Buyer
                        to be available to Seller pursuant to a Non-utilization
                        Notice issued to Seller.

BILLING AND PAYMENT:    On or before the tenth (10th) day of each month, Buyer
                        shall render to Seller a statement setting forth a
                        calculation of the amounts owed to Seller by Buyer
                        pursuant to this Camden Transaction Confirmation with
                        respect to the preceding month. Within five (5) days
                        following receipt of such statement, Seller shall
                        provide Buyer any objections thereto.

                        Buyer shall pay Seller the amount due Seller for all
                        Energy purchased during the preceding month by the
                        twentieth (20th) day of the month. If Buyer fails to pay
                        any amount when due, Buyer shall pay Seller interest on
                        the unpaid balance from the payment due date until the
                        date paid. Interest shall accrue on each calendar day at
                        the then current prime rate of interest published by
                        Chase Manhattan Bank, N.A. (the "Interest Rate").

                        If any portion of a statement is in dispute, then the
                        undisputed amount of the invoice shall be paid when due.
                        The Party disputing payment shall provide the other
                        Party formal written notice of the amount in dispute and
                        a detailed description of the specific basis of the
                        dispute. Upon determination of the correct amount, any
                        amount due shall be promptly paid (but in any event,
                        within thirty (30) days of

                                      -7-

<PAGE>

                        the resolution of the dispute) after such determination
                        with interest calculated at the Interest Rate from the
                        payment due date to the date the payment is made.

CHOICE OF LAW:          THE PARTIES AGREE THAT THE INTERNAL LAWS OF THE STATE OF
                        TEXAS SHALL CONTROL CONSTRUCTION, INTERPRETATION,
                        VALIDITY AND/OR ENFORCEMENT OF THIS CAMDEN TRANSACTION
                        CONFIRMATION, WITHOUT GIVING EFFECT TO ANY CONFLICTS OF
                        LAW PROVISIONS OF SUCH STATE.

TERMINATION:            Notwithstanding anything herein to the contrary, after
                        December 31, 2003, this Camden Transaction Confirmation
                        may be terminated by Seller upon thirty (30) days'
                        written notice to Buyer.

If this Camden Transaction Confirmation correctly sets forth the terms of this
Transaction that we have entered into, please promptly confirm in a reply to
EPME by signing below and sending this Camden Transaction Confirmation (or a
copy hereof) to EPME by fax to (713) 420-6356 within two (2) business days from
receipt of this Camden Transaction Confirmation.

El Paso Merchant Energy, L.P.                  Camden Cogen L.P.

By: /s/ TIMOTHY D. BOURN                       By: /s/ CLARK C. SMITH
    -------------------------                      --------------------------
Name:  Timothy D. Bourn                        Name:  Clark C. Smith
Title: Senior Vice-President                   Title: President


                                      -8-