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Exhibit 10.9    
    



	AGL Resources

Atlanta Gas Light

Chattanooga Gas

Elizabethtown Gas

Elkton Gas

Florida city Gas

Virginia Natural Gas

AGL Networks

Sequent Energy Management	 	632 397 1700 phone

www.sequentenergy.com	 	1200 Smith Street, Suite 900

Houston, TX 77002





June 14,
2007 


KGen
Murray I and II LLC

c/o KGen Power Management Inc.

1330 Post Oak Boulevard, Suite 1500

Four Oaks Place

Houston, Texas 77056 


	Attn.:
	James
Sweeney



	Re:
	Extension of Gas Agreement—Murray Power Generation Facility Unit No. 1



Gentlemen:



        As
you know, Sequent Energy Management. L.P. ("Seller") and KGen Murray 1 and II LLC
("Buyer") have agreed, pursuant to (a) that certain Base Contract for Purchase and Sale of Natural Gas dated September 22, 2004,
(b) the Special Provisions to the NAESB Base Contract dated September 22, 2004 and (c) a letter agreement and attached "Contract for Sales Transaction" dated September 22,
2004 (as the same may be amended, restated, supplemented or otherwise modified and in effect from time to time the "Contract for Sales Transaction")
((a), (b) and (c), each as may be amended, supplemented or otherwise modified and in effect from time to time, collectively, the "Gas
Agreement"), to provide natural gas to Buyer in order for Buyer to meet its obligations to Georgia Power Company under the Murray I PPA. Capitalized terms used herein and not
otherwise defined shall have the meanings ascribed to them in the Gas Agreement. 


        The
purpose of this letter agreement (this "Letter Agreement") is to set forth the Parties' agreement to extend the Term of the Gas
Agreement. In this regard, the Parties hereby agree that the "Term" section of the Contract for Sale Transaction is deleted in its entirety and replaced with the following: 



	"Term:
	Seven
years beginning June 1, 2005 through May 31, 2012 with evergreen annual rollover unless either party gives at least 90 days written notice prior to
June 1, 2012 and each June 1 thereafter; provided, however, that Buyer shall, be permitted to terminate this Agreement early without
liability (other than for amounts then due and owing) effective on June 1 of the calendar year following the year, if any, in which Georgia Power Company makes a tolling election under
Section 12.5 of the Murray I PPA. Buyer shall provide the Seller written notice of any such election promptly upon receipt from Georgia Power Company. 




        Except
as set forth herein, the Gas Agreement remains in full force and effect on the terms expressed therein. 


        Buyer
represents and warrants to Seller that the provisions of this Letter Amendment in no way conflict with or violate its commitments and/or obligations of any other agreement
including but not limited to those with its lenders to which it and/or its parent, affiliates, and/or subsidiaries are a party. Each Party to this Letter Amendment represents and warrants that it has
full and complete authority to enter into and perform this Letter Amendment. Each person who executes this Letter Amendment on 







 



behalf
of either Party represents and warrants that such Party has full and complete authority to do so and that such Party will be bound thereby. 



        This
Letter Amendment may be executed in one or more counterparts, and by the Parties in separate counterparts, each of which when executed shall be deemed to be an original but all of
which taken together shall constitute one and the same document. 


        If
the terms and conditions of this letter are in accord with your understanding, please sign, and return the enclosed counterpart of this letter. 


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        IN
WITNESS WHEREOF, the Parties hereto have caused this Letter Amendment to be executed by their proper officers duly authorized on their behalf, as of the day and year first above
written. 



	 	 	 	 	Very truly yours,
	

 	
 	

 	
 	
SEQUENT ENERGY MANAGEMENT, L.P.
	

 	
 	

 	
 	

By:	
 	

/s/ John W. Somerhalder II

	 	 	 	 	Name:	 	John W. Somerhalder II

	 	 	 	 	Title:	 	Chief Executive Officer

	
AGREED AND ACKNOWLEDGED:	
 	

 	
 	

 
	
KGEN MURRAY I AND II LLC	
 	

 	
 	

 
	[SEAL]
	

By:	
 	

/s/ James H. Sweeney III
 James H. Sweeney, III

Sr. Vice President—Energy Management	
 	

 	
 	

 




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Exhibit 10.9