Document:

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                                                                   EXHIBIT 10.32

                           REVISED SECURITY AGREEMENT

      THIS REVISED SECURITY AGREEMENT, dated October 27, 2004, (this
"Agreement") is by and between Commonwealth Energy Corporation, a California
corporation, located at 600 Anton Boulevard, Suite 2000, Costa Mesa, California
92626 (the "Debtor") and DTE Energy Trading, Inc., a Michigan corporation,
located at 414 South Main Street, Suite 200, Ann Arbor, Michigan 48104 (the
"Secured Party"). This Revised Security Agreement replaces the Security
Agreement dated July 24, 2002 between Debtor and Secured Party.

                                    RECITALS

      A. Debtor and Secured Party are parties to several agreements: (i) an EEI
Power Purchase and Sale Agreement, dated July 1,2003, between Debtor and Secured
Party, together with all Transactions and Confirmations from time to time
thereto (as the same may be amended, extended or replaced from time to time,
(the "Master Agreement"); (ii) a Revised Escrow Agreement, dated October 27,2004
between and among Standard Federal Bank (the "Escrow Agent"), Debtor and Secured
Party (the "Revised Escrow Agreement"); and (iii) a Revised Operating Agreement
dated October 27,2004 between Debtor and Secured Party (the "Revised Operating
Agreement"). The Master Agreement, the Revised Escrow Agreement and the Revised
Operating Agreement, together with this Revised Security Agreement, are each
referred to herein as a "Transaction Agreement" and are collectively referred to
herein as the "Transaction Agreements").

      B. As security for the performance and observance by Debtor of its
obligations under the Transaction Agreements, Debtor has agreed to grant to
Secured Party a security interest in certain of Debtor's assets related to the
retail sales customers ("RSC's") of Debtor to be served pursuant to the Master
Agreement.

      NOW, THEREFORE, in consideration of the premises and the mutual agreements
contained herein, and other good and valuable consideration the receipt and
adequacy of which are hereby acknowledged, the parties hereto agree as follows:

                                    AGREEMENT

      In consideration of the facts set forth in the Recitals, the execution and
delivery of the Transaction Agreements, and for other good and valuable
consideration, the receipt and adequacy of which are hereby acknowledged, Debtor
hereby agrees with and for the benefit of Secured Party as follows:

      1. DEFINED TERMS

      The terms "Accounts", "Deposit Accounts", "Investment Property" and
"General Intangibles" shall have the meanings ascribed to them in the Uniform
Commercial Code as adopted by the State of Michigan. Other capitalized terms not
otherwise defined herein shall have the same meanings as in the Master Agreement
unless the context dictates otherwise.

      2. CREATION OF SECURITY INTEREST

      In order to the secure the full and prompt payment, performance and
observance by Debtor of all of its duties and obligations under any of the
Transaction Agreements (collectively, the "Obligations"), Debtor does hereby
grant to and create in favor of the Secured Party, its successors and assigns, a
present and continuing first priority security interest in: (a) all contracts
and agreements

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between Debtor and any RSC for which Secured Party is providing wholesale
electric energy and related services to serve such RSC including, without
limitation, those contracts and agreements listed on Attachment 1 hereto, as the
same may be amended from time to time (collectively, the "RSC Contracts"); (b)
all Accounts arising from, and related to, the RSC Contracts, including, without
limitation, all accounts receivable from an RSC for which Secured Party is
providing energy for purchases of electric energy and related services and any
other right of Secured Party to payment from an RSC in whatever form, all
whether now owned or existing or hereafter arising or acquired (collectively,
the "Secured Party Accounts"); (c) all cash and other funds deposited in Deposit
Account Number #1054515459 (the "Lockbox Account"), maintained with the Escrow
Agent and Deposit Account Number #400641.1 (the "Escrow Account") maintained
with the Escrow Agent established pursuant to the Revised Escrow Agreement; (d)
the Lockbox Account and the Escrow Account themselves; (e) all Investment
Property into which the cash and other funds deposited into the Lockbox Account
and the Escrow Account are invested from time to time including, without
limitation, money market funds and other securities; (f) all General Intangibles
of Debtor relating to the RSC's; and (g) all proceeds and products of any of the
foregoing, including without limitation all proceeds of the Secured Party
Accounts, the Lockbox Account and the Escrow Account, and all proceeds of, and
all other profits, rentals or receipts, in whatever form, arising from the
collection, sale, lease, exchange, assignment, licensing or other disposition
of, or realization upon, any Collateral or the proceeds thereof, including,
without limitation, all claims of Debtor against third parties for loss of,
damage to or destruction of, or for proceeds payable under, or unearned premiums
with respect to, policies of insurance with respect to any Collateral, and any
condemnation or requisition payments with respect to any Collateral, in each
case whether now existing or hereafter arising (collectively, "Proceeds") (the
collateral referenced in items (a) through (g) above is collectively referred to
herein as the "Collateral").

      3. SECURITY INTEREST ABSOLUTE

      Debtor agrees that all rights of Secured Party and the security interests
granted to Secured Party hereunder, shall be absolute and unconditional,
irrespective of:

            (a) any lack of validity or enforceability of any of the
      Obligations;

            (b) the failure of Secured Party: (i) to assert any claim or demand
      or to enforce any right or remedy against the Debtor or any other person
      or entity under the provisions of any Transaction Agreement and this
      Agreement; or (ii) to exercise any right or remedy against any guarantor
      of, or collateral securing, any Obligations;

            (c) any change in the time, manner or place of payment of, or in any
      other term of, all or any of the Obligations, or any other extension,
      compromise or renewal of any Obligations;

            (d) any reduction, limitation, impairment or termination of any
      Obligations for any reason, including any claim of waiver, release,
      surrender, alteration or compromise, and shall not be subject to (and
      Debtor hereby waives any right to or claim of) any defense or setoff,
      counterclaim, recoupment or termination whatsoever by reason of the
      invalidity, illegality, nongenuineness, irregularity, compromise,
      unenforceability of, or any other event or occurrence affecting, any
      Obligations or otherwise;

            (e) any amendment to, recission, waiver, or other modification of,
      or any consent to departure from, any of the terms of any Transaction
      Agreement or this Agreement;

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            (f) any addition, exchange, release, surrender or nonperfection of
      any collateral (including the Collateral), or any amendment to or waiver
      or release of or addition to or consent to departure from any guaranty,
      for any of the Obligations; or

            (g) any other circumstance which might otherwise constitute a
      defense available to, or a legal or equitable discharge of, the Debtor,
      any surety or any guarantor.

      4. DEBTOR'S WARRANTIES AND REPRESENTATIONS

      In addition to any representations and warranties of Debtor set forth in
the Transaction Agreements, all of which are incorporated herein by this
reference. Debtor hereby warrants and represents to and for the benefit of
Secured Party that:

            (a) Organization: Good Standing. Debtor is a corporation, duly
      organized, validly existing and in good standing under the laws of the
      State of California. Debtor's exact legal name is as set forth in the
      first paragraph of this Agreement. Debtor is qualified to do business and
      in good standing under the laws of the State of Michigan.

            (b) Authority. Debtor has full power and authority, and has
      completed all proceedings and obtained all approvals and consents of
      whatever kind necessary, to execute, deliver, and perform this Agreement
      and the transactions contemplated hereby;

            (c) No Default or Lien. The execution, delivery, and performance of
      this Agreement will not contravene, or constitute a default under or
      result in a lien upon any property of Debtor (other than the lien granted
      hereby) pursuant to Debtor's organizational documents, any applicable law
      or regulation or any contract, agreement, judgment, order, decree, or
      other instrument binding upon or affecting Debtor;

            (d) Enforceability. This Agreement constitutes a legal, valid, and
      binding obligation of Debtor, enforceable in accordance with its terms
      except as such enforceability may be limited by applicable bankruptcy,
      insolvency, fraudulent conveyance or similar laws affecting the
      enforcement of creditors' rights generally, or by equitable principles
      relating to enforceability (regardless of whether the application of such
      principles is considered in a proceeding in equity or at law). This
      Agreement grants to Secured Party a valid, first-priority, enforceable
      lien on and security interest in the Collateral;

            (e) Ownership. Debtor is the sole owner of, and has good and
      marketable title to, the Collateral, free and clear of all claims,
      interests, charges, options, liens, encumbrances and defects of title of
      any kind whatsoever;

            (f) No Dispute. All of the Collateral consisting of Accounts does
      and will evidence bona fide sales to the customers named in Debtor's
      books. No dispute, right ofsetoff, counterclaim or defenses exists as of
      the date hereof with respect to any of the Collateral;

            (g) Trade Names. Attachment 2 lists all trade names, aliases and
      other names by which Debtor and any predecessor in interest was previously
      known within the last six years;

            (h) Address. Debtor's address set forth in the first paragraph of
      this Agreement is the location of principal place of business;

            (i) Disclosure. All information furnished by Debtor to Secured Party
      for purposes of, or in connection with, the Transaction Agreements and
      this Agreement is and will be true and accurate in all material respects,
      and none of such information shall be incomplete by omitting to state any
      fact necessary to make such information not misleading in light of the
      circumstances under which it was furnished;

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            (j) No Violations. Debtor is not in any material violation of any
      judgment, order, decree, law, rule, regulation, permit or license; and

            (k) Lien Search. Attached hereto as Attachment 3 are true, accurate
      and certified copies of UCC lien searches with respect to Debtor and its
      predecessors in interest through the date of this Agreement in all
      applicable jurisdictions.

      5. DEBTOR'S COVENANTS

      In addition to all covenants of Debtor set forth in the Transaction
Agreements, all of which are incorporated herein by this reference. Debtor
hereby agrees:

            (a) Maintenance of Existence. Debtor shall maintain and preserve its
      existence and good standing in the jurisdiction of its organization and in
      the State of Michigan and shall not make any change in its name,
      organizational structure or in the jurisdiction under the laws of which
      Debtor is organized, without the prior written consent of Secured Party,
      which shall not be unreasonably withheld.

            (b) Location of Office. In the event that Debtor should change the
      location of principal place of business listed in the first paragraph of
      this Agreement, Debtor shall give written notice of same to Secured Party
      at least thirty (30) days in advance of any such change.

            (c) Liens. Debtor shall not sell, exchange, lease, transfer,
      encumber or pledge the Collateral, create any security interest therein
      (except that created by this Agreement), or otherwise dispose of the
      Collateral or any of Debtor's rights therein or under this Agreement
      without the prior written consent of Secured Party. Debtor will not permit
      any other security interest to attach to any of the Collateral, permit the
      Collateral to be levied upon under any legal process, or permit anything
      to be done that may impair the value of any of the Collateral or the
      security intended to be afforded by this Agreement. Debtor may assign the
      Collateral in the case of a sale or merger of all or a part of the
      Debtor's business(es) and the Secured Party will not unreasonably move to
      prevent such assignment; provided, however, that Secured Party's first
      priority security interest will continue upon such assignment.

            (d) Books and Records. Debtor will keep all of its books and records
      in accordance with sound business practices sufficient to allow the
      preparation of financial statements in accordance with generally accepted
      accounting practices. The originals of all such books and records shall be
      kept at Debtor's address appearing in the first paragraph of this
      Agreement. Secured Party shall have the right to inspect Debtor's books
      and records as they pertain to Transactions involving the Secured Party or
      the RSC's upon forty-eight (48) hours prior notice. Any such inspection
      shall be made during normal business hours.

            (e) Reports. Debtor will promptly furnish Secured Party with copies
      of publicly filed quarterly financial statements, (10-Q or 10-K statements
      filed with the Securities and Exchange Commission) and audited or
      unaudited quarterly financial statements of Debtor. Debtor shall
      immediately provide to Secured Party written notice of any default or
      Event of Default under any Transaction Agreement or this Agreement.

            (f) Subordination: Perfection. Debtor will execute, file, record, or
      procure from third persons all subordination agreements and other
      documents and instruments and take all

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      such other action that Secured Party considers reasonable or necessary to
      perfect, continue perfection of, or to maintain the first priority of
      Secured Party's security interest in, and the value of, the Collateral.
      Debtor will place upon the documents evidencing the Collateral the notice
      of Secured Party's security interest that Secured Party from time to time
      requests. Actions that Secured Party may require Debtor to take under the
      preceding sentence include, without limitation: (1) giving notice to
      Debtor's RSC's of Secured Party's security interest in the Accounts; (2)
      obtaining from any third party financing source who has a security
      interest in the Collateral a written acknowledgment that the security
      interest of such third party is junior and subordinate in all respects to
      the security interest granted by Debtor to Secured Party pursuant to this
      Agreement; (3) obtaining from any third party who has possession or
      control of any Collateral a written acknowledgment and undertaking that
      such third party holds the Collateral solely for the benefit of Secured
      Party; (4) registering any Collateral that constitutes Investment Property
      or Deposit Accounts in the name of Secured Party and taking all other
      actions requested by Secured Party to give Secured Party control of the
      Collateral; and (5) making Secured Party the sole "customer" of the bank
      or financial institution with respect to the Lockbox Account and the
      Escrow Account.

            (g) Payment of Taxes, etc. Debtor shall pay promptly when due all
      taxes, assessments, charges, encumbrances and liens now or hereafter
      imposed upon or affecting any Collateral. In the event of a default by
      Debtor in paying those taxes, assessments, charges, encumbrances or liens,
      it shall be lawful for Secured Party to pay and discharge them, and the
      amounts expended by Secured Party in the payment or discharge of those
      taxes shall be a lien upon the Collateral, secured by this Agreement and
      payable on demand with interest at the highest default rate set forth in
      the Loan Documents.

            (h) Defense of Litigation. Debtor shall appear in and defend any
      action or proceeding that may affect its title to, or Secured Party's
      interest in, the Collateral.

            (i) Compliance with Laws. Debtor shall comply with all laws,
      regulations, and ordinances relating to the possession, operation,
      maintenance, and control of the Collateral.

            (j) Notice. Upon 5 Business Days' prior written notice to Debtor,
      Secured Party shall have the right from time to time to contact Debtor's
      RSC's for the purpose of verifying the existence, amount, and
      collectibility of and other information regarding Debtor's Accounts with
      RSC's.

            (k) Payment of Secured Party's Costs and Expenses. If Secured Party
      commences proceedings for the purpose of collecting any monies which may
      be secured in any way by this Agreement, or to recover, collect or protect
      its interest in the Collateral by reason of a default or breach by Debtor,
      Debtor agrees to pay Secured Party's reasonable attorneys' fees,
      additional advances and debts, and all costs, fees, charges and expenses
      in connection therewith; together with any and all disbursements incurred
      by Secured Party in connection with the collecting, taking, maintaining
      and disposing of the Collateral, including all premiums on bonds and
      undertakings, fees for public officers, custodians, auctioneers, charges
      for use and occupancy of premises and for electric current; all of which
      shall be a lien upon the Collateral, secured by this Agreement and payable
      on demand with interest at the highest lawful rate. Counsel fees and
      disbursements are in no event to affect, but are to be paid in addition
      to, any statutory court costs and disbursement.

            (1) Collection of Accounts. Debtor shall instruct all RSC's to make
      all payments on Secured Party Accounts directly to the Lockbox Account and
      shall use all commercially reasonable efforts to cause all such persons or
      entities to agree to make such payments to the Lockbox Account.

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            (m) Banking Relationship. Debtor shall not borrow any money from,
      enter into any credit transaction with or otherwise become obligated in
      any manner to pay any amounts to the Escrow Agent or any affiliate of the
      Escrow Agent, other than pursuant to the terms of the Revised Escrow
      Agreement.

            (n) Copies ofRSC Contracts. Within 30 days of execution. Debtor
      agrees to provide Secured Party with a copy of each RSC Contract in which
      Secured Party has a security interest.

      6. DEFAULT

            A default under this Agreement shall be deemed to exist upon the
occurrence of any of the following (an "Event of Default"):

            (a) Default Under Any Transaction Agreement. An Event of Default
      occurs and continues under any Transaction Agreement;

            (b) Misrepresentation By Debtor. Any representation or warranty by
      Debtor hereunder, or in any Transaction Agreement, shall be inaccurate or
      incomplete in any material respect;

            (c) Breach of Covenant. Debtor shall fail to fully perform or comply
      with any of Debtor's covenants or agreements contained in this Agreement
      or any Transaction Agreement. In the event of such breach. Secured Party
      will notify Debtor in writing and Debtor shall have two (2) Business Days
      to cure such breach;

            (d) Debtor Bankruptcy. Debtor shall become insolvent, file
      bankruptcy, shall have a receiver, trustee or other person appointed to
      manage its operations or shall otherwise fail to pay its creditors in the
      ordinary course of business when debts are due; and

            (e) Supplier Bankruptcy. Any supplier of wholesale electricity to
      Debtor (other than Secured Party) shall become insolvent, file bankruptcy,
      shall have a receiver, trustee or other person appointed to manage its
      operations, and such event should have a material, detrimental financial
      impact to Debtor . [See notice requirements set forth in Article 4.2(vii)
      of the Revised Operating Agreement dated October 27, 2004.]

      7. REMEDIES

      Upon the occurrence of any such Event of Default, Secured Party may, at
its option, and without notice to or demand on Debtor, exercise all rights of a
secured party under the Uniform Commercial Code, in addition to all rights and
remedies available to Secured Party under any Transaction Agreement, at law, in
equity, or otherwise, m addition, upon an Event of Default, Secured Party or a
licensed alternative energy supply ("AES") designated by Secured Party shall
have the right, but not the obligation, to assume the RSC Contracts which have
been pledged to Secured Party hereunder. If Secured Party elects to assume such
RSC Contracts (the "Assumed RSC Contracts"), the Secured Party shall notify
Debtor and the RSC under the Assumed RSC Contracts identifying, in each case,
the relevant RSC Contract and the effective date of such assignment (the
"Assignment Effective Date"). On the Assignment Effective Date, Secured Party or
its licensed AES designee shall be deemed to be substituted as "AES" under the
Assumed RSC Contracts in place of Debtor and shall be deemed to have assumed all
of Debtor's obligations and all rights and privileges pursuant to the Assumed
RSC Contracts arising on and after the Assignment Effective Date.

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      8. WAIVER OF BREACH

      The acceptance of any partial payment by Secured Party after maturity, or
the waiver of any breach or default, shall not constitute a waiver of any other
or subsequent breach or default or prevent Secured Party from immediately
pursuing any or all its remedies hereunder, or under any other document
providing additional security to Secured Party.

      9. TERMINATION

      This Agreement shall terminate when indefeasible payment in full and the
performance and satisfaction of all Obligations have been made. Upon such
termination the Secured Party shall assign transfer and deliver without recourse
and without warranty to the Debtor any Collateral previously assigned or
delivered to the Secured Party (and any property received in respect thereof) as
has not theretofore been sold or otherwise applied pursuant to the provisions of
this Agreement; provided however, that this Agreement shall be automatically
reinstated effective as of the original date of execution of this Agreement, if
at any time payment, in whole or in part, of any of the Obligations is reduced,
rescinded or must otherwise be restored or returned by the Secured Party for any
reason whatsoever, including the bankruptcy, insolvency, dissolution,
liquidation or reorganization of the Debtor or upon or as a result of the
appointment of a custodian, receiver, trustee or other officer with similar
powers with respect to Debtor the Debtor or any of its property or otherwise.

      10. MISCELLANEOUS PROVISIONS

      (a) Binding Effect. This Agreement shall bind and inure to the benefit of
Debtor and Secured Party and their respective successors and assigns.

      (b) Entire Agreement. This Agreement, together with the Transaction
Agreements, constitutes the entire agreement of Debtor and Secured Party with
respect to the subject matter hereof and thereof, superseding all prior and
contemporaneous negotiations, agreements and understandings whether written or
oral.

      (c) Modification. This Agreement may be amended only by a written
instrument executed by both the Debtor and the Secured Party.

      (d) Governing Law. This Agreement shall be governed by and construed in
accordance with the internal laws of the State of Michigan without regard to
conflicts of laws principles.

Executed on the day and year set forth above.

                                         COMMONWEALTH ENERGY CORPORATION

                                         By:  /s/ Peter Weigand
                                         Its:  President

                                                         ("Debtor")

                                         DTE ENERGY TRADING, INC.

                                         By: /s/ Randall D. Balhorm
                                         Its:   President

                                                         ("Secured Party")<PAGE>

                                                                   EXHIBIT 10.33

                           REVISED OPERATING AGREEMENT

      This Revised Operating Agreement (this "Agreement") is dated as of October
27, 2004 (the "Effective Date"), is made and entered into between DTE Energy
Trading, Inc., a Michigan corporation ("Supplier"), and Commonwealth Energy
Corporation, a California corporation ("Buyer") and supercedes the Revised
Operating Agreement between the Parties dated July 24, 2003. Buyer and Supplier
are each a "Party" and, collectively, are the "Parties."

                                    RECITALS

      WHEREAS, Supplier is a power marketer that makes wholesale electricity
sales to third parties. Buyer is in the business of providing electricity
services to retail customers in Michigan (collectively, the "Customers") under
the Detroit Edison Electric Choice Program (the "DECo Program"). Buyer agrees
that supply it purchases from Supplier will only be used to serve its Customers
within the DECo Program. Moreover, because of certain credit concessions that
Supplier is making. Buyer agrees that Supplier will be its primary Energy
supplier for its Customers in the DECo Program; however, Buyer has the right to
purchase Energy from an alternative supplier under the terms of Article 4
herein. Nonetheless, Supplier is not precluded from selling wholesale Energy
supply to other alternative electric suppliers ("AES") other than Buyer that are
participating in the DECo Program;

      AND WHEREAS, Buyer agrees to purchase full or partial requirements Energy
supply products from Supplier pursuant to a series of supply Transaction
Confirmations) ("Confirmations") governed by the EEI Master Power Purchase and
Sale Agreement executed by the Parties dated July 1, 2003 (the EEI Master
Agreement"). The Parties will determine whether a particular Transaction or set
of Transactions will be for full or partial requirements Energy supply, and such
Transaction(s) will be memorialized in each relevant Confirmation. Nevertheless,
each Transaction will be for a fixed, maximum amount of supply at a fixed price,
and, depending on the product, there may also be a fixed, minimum amount of
supply at a fixed price ("Transaction Program(s)"). In the case of full
requirements Energy supply, Supplier will hold open each Transaction Program to
new Customers for the earlier of: six (6) months or until Buyer has allocated
the maximum amount of supply for its Customers; provided, however, that the
relevant Transaction Program will remain open to new Customers unless the
volumetric, weighted average of the Cinergy On-Peak forward market price for all
available July, August, January, and February months (within a window equal to
the number of months of the Customer term under the Delivery Period as set forth
in each relevant Transaction) beginning the third month after the month in which
each Transaction is executed changes by more than 10% when compared to the
volumetric, weighted average of the Cinergy On-Peak forward market price for all
available July, August, January, and February months (within the same window
specified above) beginning the third month after the current month for each day
of the six (6)-month window. If the above-referenced forward market price change
threshold is triggered, then Supplier will provide Buyer a seven (7)-Business
Day notice that Supplier is closing the Transaction Program to new Customers.
During the pendency of the 7-Business Day notice period, Buyer may finalize
contract negotiations with new Customers, as available, for up to ten percent
(10%) of the maximum amount of supply specified in the relevant Transaction,
provided however, that the maximum amount of supply to be provided under each
Transaction cannot exceed the maximum amount of supply specified in each
Transaction. After the notice period has expired, the Transaction Program may be
closed to new Customers. Upon acceptance by Supplier of each Customer under the
relevant Transaction Program, the Buyer's contract pricing associated with each
Customer remains in effect for up to two (2) years.

      AND WHEREAS, under certain circumstances, Supplier agrees to supply
Buyer's Customers with full requirements Energy supply under Transactions where
Supplier, rather than Buyer, assumes substantial risk related to firm Energy
supply, aggregate Customer load

<PAGE>

forecasting and transmission and ancillary services, including imbalance
charges;

      AND WHEREAS, in other circumstances. Supplier agrees to supply Buyer's
Customers with partial requirements Energy supply in cases where Supplier is
providing a more standard Energy product that might not include load
forecasting, transmission and ancillary services, including imbalance charges,
then Buyer will assume greater risk related to some elements of Energy supply;

      AND WHEREAS, in full or partial requirements Energy supply Transactions,
Buyer desires to, and Supplier may agree that Buyer may forego providing
Supplier with the usual level of Performance Assurance, such as a Letter of
Credit or cash, required to cover Seller's customary credit requirements to
ensure payment for Energy supply and certain Mark-to-Market fluctuations;

      AND WHEREAS, Supplier agrees to assume certain limited credit risk because
Buyer has agreed: (i) to permit Supplier to monitor Buyer's credit management of
large Customer accounts; (ii) to grant Supplier certain operational and
financial oversight to its Michigan business; and (iii) to provide Supplier
Performance Assurance for all Wholesale Energy purchases made pursuant to a
Transaction and Confirmation. Such Performance Assurance shall be calculated
pursuant to the mutually agreed terms set forth in Exhibit B - Performance
Assurance Calculation (as such exhibit may be amended from time to time),
incorporated by reference and attached hereto.

      NOW, THEREFORE, in consideration of the following mutual covenants,
agreements, and obligations, the Parties agree as follows:

                                    ARTICLE 1
                                   DEFINITIONS

      1.1 DEFINITIONS INCORPORATED BY REFERENCE FROM OTHER AGREEMENTS. ALL
initially capitalized terms not otherwise defined below or herein shall have the
meaning set forth in the EEI Master Agreement dated July 1, 2003, the Revised
Escrow Agreement dated October 27, 2004, or the Revised Security Agreement dated
October 27, 2004 executed between the Parties.

      "Contract Quantity" means the agreed quantity of FRSP and/or PRSP for the
specified period as set forth below in Section 3.1 or as agreed to in various
Transaction(s).

      "Customers" means the retail customers who have entered into the Retail
Contracts with Buyer as of the date of this Agreement, as identified on Exhibit
A. or such other retail customers as may become substituted Customers from time
to time.

      "DECO Delivery Points means the delivery point for all Energy provided
hereunder to Customers in the DECo Program shall be the retail end use
Customer's meter(s).

      "Full Requirements Service Product" or "FRSP" means firm Energy as
measured and delivered to the Customers' retail meters which shall include load
following energy, load forecasting and scheduling services, applicable Detroit
Edison and MISO transmission, and ancillary services charges, including
imbalance charges. The exact services included under a particular Transaction
will be set forth in the applicable Confirmation.

      "Local Distribution Company" or "LDC" means The Detroit Edison Company.

      "Load Factor" means the monthly and/or annual Energy (MWh) used by
Customers

<PAGE>

divided by the product of the hours in the month and/or year and the peak demand
(MW) in the month and/or year.

      "MISO" means the Midwest Independent System Operator.

      "Off-Peak" means Mon to Fri Hour Ending ("HE") HE 0100 thru 0700 and HE
2400 EPT, and all 24 hours EPT on Saturdays, Sundays, and NERC holidays during
the Delivery Period of a Transaction(s).

      "On-Peak" means Mon to Fri HE 800 thru HE 2300 EPT, excluding NERC
Holidays during the Delivery Period of a Transactions).

      "Partial Requirements Service Product" or "PRSP" means firm Energy
measured and delivered to the Customers' retail meters which may include certain
Supplier services, such as scheduling services and certain applicable Detroit
Edison and MISO transmission, and ancillary services charges, including
imbalance charges. The exact services included under the particular Transaction
will be set forth in the applicable Confirmation.

      "Retail Contracts" means each of the Energy Service Agreements, as such
agreements may be amended from time to time, entered into between Buyer and a
Customer, as identified on Exhibit A as such exhibit may be amended from time to
time.

      "Retail Load" means, for any hour during the Delivery Period, the
aggregate FRSP and/or PRSP of the Retail Customers under the Retail Contracts,
as long as such aggregate FRSP and/or PRSP falls within the mutually agreed upon
parameters agreed to by the Parties.

                                    ARTICLE 2
                         BUYER AND SUPPLIER OBLIGATIONS

      2.1 BUYER OBLIGATIONS. Buyer shall provide all of the services and perform
all of its obligations under the Retail Contracts in accordance with: (i) the
terms of the Retail Contracts, (ii) all regulations applicable to an AES, (iii)
any applicable provisions of the relevant governing tariff(s), and (iv) the
provisions of this Agreement.

            (a) Alternative Electric Supplier. Buyer shall act as an AES under
      applicable regulations for all Customers receiving Energy purchased by
      Buyer from Supplier under this Agreement, which includes, but is not
      limited to, the following:

                  (i) Customer Enrollment: Buyer shall submit to the applicable
            LDC a request for enrollment for each Customer in the DECo Program;

                  (ii) Assistance with Forecasting: Buyer shall provide Supplier
            with the relevant data for analyzing the individual loads of each of
            its Customers and the aggregate Retail Load, taking into account,
            among other things, historical usage, weather conditions and other
            system conditions, to forecast the anticipated Retail Load for each
            hour during the Delivery Period;

                  (iii) Meter Data Management Services: Buyer shall, or shall
            cause a commercially competent and qualified designee to, read,
            validate, edit, and transfer meter data as required for calculation
            of the bill to each Customer, and shall provide any other metering
            or related data management services required by the Retail Contracts
            for the Customers and provide Supplier with necessary interval
            customer meter data to facilitate accurate forecasting and pricing;

<PAGE>

                  (iv) Billing Services: Buyer shall calculate monthly bills for
            each Customer in accordance with the applicable Retail Contract and
            applicable meter data. Buyer or its commercially competent and
            qualified designee shall deliver monthly bills to each Customer;

                  (v) Portfolio Accounting: Buyer shall work with Supplier to
            maintain the accounts and records for the portfolio of electric
            Energy sold and scheduled for delivery to Retail Load; and

                  (vi) Buyer's Data Obligations: Buyer shall provide Supplier's
            appropriate sink identification to the LDC at time of Customer
            enrollment, coordinate installation of phone lines, if required, for
            all accounts under the DECo Program, notify Supplier when Customer
            account commences and/or terminates with Buyer, provide each
            Customer's information to Supplier, including Customer name,
            address, electric utility rate code, historic billing information,
            account number(s), meter number(s), load profile group, start and/or
            termination date, significant Customer demand additions or
            reductions, and any meter change information provided by the LDC.

            (b) Revenues Deposited into Lockbox Account. Buyer shall deposit, or
      cause to be deposited by each Customer and/or LDC, into the Lockbox
      Account, any and all amounts owed to Buyer for sales of Energy and related
      services to Customers under, pursuant to, or with respect to any Retail
      Contract identified on Exhibit A.

      2.2 TERMINATION OF A RETAIL CONTRACT. If a Retail Contract is terminated
for any reason prior to the end of the Delivery Period, then with respect to
that portion of the Contract Quantity represented by such terminated Retail
Contract ("Affected Quantity") during the remaining hours of the Delivery
Period, Buyer shall use its best efforts to locate and propose one or more
additional Customers to purchase part or all of such Affected Quantity. If the
product to be provided is FRSP and Buyer is unable to find any eligible
additional Customers, then the Affected Quantity shall revert to Supplier and
Buyer shall no longer be required to take delivery of, or pay for, such FRSP. In
the case ofPRSP, the terms and conditions of the Confirmation will control.

      2.3 SUPPLIER OBLIGATIONS. Supplier shall provide all of the services and
perform all of its obligations under Transactions) in accordance with: (i) the
Retail Contracts, as applicable, (ii) all regulations applicable to a wholesale
supplier of an AES, (iii) any applicable provisions of the relevant governing
tariff(s), (iv) the provisions of this Agreement, and (v) whether the product
provided to Buyer is FRSP or PRSP.

            (a) FRSP Obligations to Buyer. Supplier shall act as a wholesale
      supplier of Energy under applicable regulations for all Customers
      receiving Energy purchased by Buyer from Supplier under this Agreement,
      which includes, but is not limited to, the following:

<PAGE>

                  (i) Load Forecasting: Supplier shall analyze the individual
            loads of the Customers and the aggregate Retail Load, taking into
            account, among other things, historical usage, weather conditions
            and other system conditions, to forecast the anticipated Retail Load
            for each hour during the Delivery Period. Buyer may request and
            Seller will provide its monthly load forecast from time to time;

                  (ii) Contract Pricing for Buyer Associated with Customers
            Prior to Supplier's Issuance of a 7-Business Day Notice to Buyer. As
            long as Supplier receives notice of such Buyer's acceptance of
            Customer and Customer meets the appropriate criteria under the
            relevant Transaction Program prior to Supplier's Issuance of a
            7-Business Day Notice to Buyer for closure of that Transaction
            Program. Supplier agrees that Buyer's Contract Price associated with
            each Customer will remain fixed for a period of up to two (2) years.
            Nothing in this part shall be construed to retroactively change the
            pricing of Energy being delivered to Buyer and associated Customers
            already acknowledged by Supplier as covered by a Transaction
            Program.

                  (iii) Contract Pricing for Buyer Associated with Customers
            Covered by the Transaction Program After Issuance of Supplier's
            7-Business Day Notice to Buyer. Supplier will hold open each
            Transaction Program to Buyer for new Customers for the earlier of:
            six (6) months or until Buyer has allocated the maximum amount of
            supply for its Customers; provided, however, that the relevant
            Transaction Program will remain open to Buyer for new Customers
            unless the volumetric, weighted average of the Cinergy On-Peak
            forward market price for all available July, August, January, and
            February months (within a window equal to the number of months of
            the Customer term under the Delivery Period as set forth in each
            relevant Transaction) beginning the third month after the month in
            which each Transaction is executed, changes by more than 10% when
            compared to the volumetric, weighted average of the Cinergy On-Peak
            forward market price for all available July, August, January, and
            February months (within the same window specified above) beginning
            the third month after the current month for each day of the six (6)
            month window. If the above-referenced forward market price change
            threshold is triggered, then Supplier will provide Buyer a seven
            (7)-Business Day notice that Supplier is closing the Transaction
            Program to new Customers. During the pendency of the 7-Business Day
            notice period. Buyer may finalize contract negotiations with new
            Customers, as available, for up to ten percent (10%) of the maximum
            amount of supply specified in the relevant Transaction; provided
            however, that the maximum amount of supply to be provided under each
            Transaction cannot exceed the maximum amount of supply specified in
            each Transaction. After the notice period has expired, the
            Transaction Program may be closed to new Customers. Upon acceptance
            by Supplier of each Customer under the relevant

<PAGE>

            Transaction Program, Buyer's contract pricing associated with each
            Customer remains in effect for up to two (2) years.

                  (iv) Load Following Energy: Supplier shall schedule and
            deliver to each Customer, firm, full requirements Energy supply as
            needed;

                  (v) Scheduling Transmission Services: Supplier shall schedule
            with and purchase from the applicable transmission provider, network
            integrated transmission service to ensure firm Energy delivery to
            each Customer; and

                  (vi) Ancillary Services, including Imbalance Charges. Supplier
            agrees to provide all ancillary services, and assume all imbalance
            charge risk on behalf of Buyer's Customers.

            (b) PRSP Obligations to Buyer. Supplier shall act as a wholesale
      supplier of Energy under applicable regulations for Customers receiving
      PRSP purchased by Buyer from Supplier under this Agreement, including, but
      not limited to, the following:

                  (i) Load Forecasting: Supplier shall analyze the individual
            loads of the Customers and the aggregate Retail Load, taking into
            account, among other things, historical usage, weather conditions
            and other system conditions, to forecast the anticipated Retail Load
            for each hour during the Delivery Period. Buyer may request and
            Seller will provide its monthly load forecast from time to time;

                  (ii) Energy: Supplier shall schedule and deliver to each
            Customer firm, partial requirements Energy supply as needed and as
            specified in the relevant Confirmation;

                  (iii) Scheduling Transmission Services: Supplier shall
            schedule with and purchase from the applicable transmission
            provider, network integrated transmission service to ensure firm
            Energy delivery to each Customer; provided, however. Supplier may
            pass through such costs to Buyer as appropriate under the terms of
            the Confirmation; and

                  (vi) Ancillary Services, including Imbalance Charges. Supplier
            agrees to provide all ancillary services, and assume all imbalance
            charge risk on behalf of Buyer's Customers provided, however.
            Supplier may pass through such costs to Buyer as appropriate under
            the terms of the Confirmation.

            (c) Credit Assistance to Buyer for FRSP and PRSP Transactions.
      Supplier agrees to extend to Buyer, subject to the terms and conditions of
      the EEI Master Agreement and related Confirmation(s), unsecured credit
      equivalent to

<PAGE>

      approximately two months' Customer account receivables (to be posted to a
      Lockbox Account). In addition, Buyer agrees to provide to Seller,
      Performance Assurance pursuant to the methodology, calculations and data
      set forth in Exhibit B.

      2.4 SHARING OF DATA. Supplier and Buyer agree to cooperate and share
relevant data necessary to provide electric service to Customers. This may
include current and historical electricity usage data, payment and credit
history. Dun & Bradstreet number and other data reasonably necessary. In
addition, the Parties agree to share password-protected data and information
relevant to providing electric service to Customers under Transactions. Except
as otherwise specifically authorized by Customers or required by applicable law,
regulation, or court order, the Parties shall maintain, in confidence, all such
Customer data.

                                    ARTICLE 3
                 CONTRACT QUANTITY AND CONTRACT PRICE OF ENERGY

      3.1 DEFINITION OF CONTRACT QUANTITY. Subject to the terms of this
Agreement, during the relevant Delivery Period(s) set forth in a Transaction(s),
Supplier shall sell and deliver, or cause to be delivered, at the Delivery
Points, and Buyer shall purchase and receive, or cause to be received, at the
Delivery Points up to a maximum demand (MW) and an estimated volume of Energy
(MWh) of FRSP and/or PRSP at the Contract Price (the "Contract Quantity") during
each applicable hour of each specified month of the Delivery Period(s). Buyer
shall notify Supplier of any anticipated addition of Customers by notifying
Supplier of the expected increase or decrease in Retail Load as required under
Section 2.1 (a) herein.

      3.2 BASIS FOR THE CONTRACT PRICE. Subject to Section 2 above, as
applicable, the Contract Price for each MWh of FRSP or PRSP is set according to
a fixed price for all Energy sold to Buyer's Customers associated with each
Transaction.

      3.3 MANAGEMENT OF CONTRACT QUANTITY. Supplier agrees to submit the proper
documents to the MISO for each hour of the Delivery Period thereby scheduling
the delivery at the applicable Delivery Points of the applicable quantities of
Energy equal to the Contract Quantity.

                                    ARTICLE 4
                                OPERATING ISSUES

      4.1 PRIMARY SUPPLIER TO BUYER. Supplier will be the primary supplier to
Buyer for supplying its DECO Program Customers, under either an FRSP product or
PRSP product, as long as Supplier is willing to sell the FRSP or PRSP product to
Buyer at competitive prices.

      If Buyer determines that an offer from Supplier for either an FRSP or PRSP
product is not competitive in the relevant market, Buyer has the right to seek
pricing from other suppliers for the Supplier-specified On-Peak and Off-Peak
Energy block components of the offered FRSP or PRSP product. Specifically, when
notified by Buyer that it intends to seek competitive offers for such On-Peak
and Off-Peak Energy block components. Supplier will provide Buyer with specific
data regarding the On-Peak and Off-Peak Energy blocks, e.g., size, delivery
point and associated terms and conditions, price for the respective Energy
blocks, and delivery period.

      If Buyer receives an offer for the specified On-Peak and Off-Peak Energy
blocks (on terms substantially identical, as determined by Supplier, including
type of product and delivery point, to the terms specified by Supplier) from a
Third-Party Supplier ("TPS"), Buyer will advise Supplier of the TPS-offer terms
and conditions. Third Party Supplier means an entity that is not a Customer and
that agrees to sell electric power and/or transmission capacity to Buyer.
Supplier must either match the TPS offer or advise Buyer of its decision not to
match the offer. If Supplier matches the offer, it will be included in a revised
FRSP or PRSP offer to Buyer. If Supplier

<PAGE>

declines to match the TPS offer, then Buyer may buy the specified Energy blocks
from the TPS and sell the specified Energy blocks to Supplier at the same offer
price as Buyer purchased the specified Energy blocks from the TPS. The terms and
conditions must be equivalent to the terms and conditions initially specified by
Supplier to Buyer. Supplier will then execute a FRSP or PRSP transaction with
Buyer at a price equal to the Supplier's purchase price for the specified Energy
blocks plus the difference between Supplier's initial FRSP or PRSP offer less
the price Supplier quoted Buyer for the specified Energy blocks.

      4.2 CREDIT PROTECTIONS PROVIDED BY BUYER TO SUPPLIER. Buyer agrees: (i) to
require each Customer to send invoiced payments to a Lockbox Account as required
under the Revised Security Agreement and Revised Escrow Agreement, (ii) to
include the required Supplier assignment provision in each documented and
executed Retail Contract, (iii) to provide Supplier with the required
Performance Assurance pursuant to Exhibit B hereto; (iv) to provide Supplier
with copies of quarterly financial statements in the form of 10-K and 10-Q
statements filed with the Securities and Exchange Commission along with audited
or unaudited quarterly financial statements of Buyer; (v) to provide Supplier
with the right to review the creditworthiness and load attributes of potential
DECO Primary Supply Rate (D-6) customers; (v) to provide Supplier with all
contract terms and conditions for all documented and executed Retail Contracts;
(vi) to provide Supplier with Buyer's general credit policies and procedures;
and (vii) to provide Supplier, upon request, with a list of all other wholesale
Energy suppliers, the percentage of Buyer's total energy supply portfolio
represented by purchases from such other suppliers, and the regions in which the
transactions with the other suppliers occurred.

      4.3 CREDIT ASSURANCES PROVIDED DIRECTLY BY CUSTOMERS. From time to time,
Buyer may, consistent with Section 5. CREDIT and Section 7. MATERIAL ADVERSE
CHANGE in Buyer's Master Retail Energy Supply Agreement, obtain a Letter of
Credit, prepayment, cash, or other collateral from a Customer associated with a
Transaction. In such instances, the Parties recognize that this form of credit
assurance is intended to inure to the benefit of both the Buyer and Supplier.

                                    ARTICLE 5
                 REVISED SECURITY AND REVISED ESCROW AGREEMENTS

      5.1 COMMITMENT TO COMPLETE. Supplier and Buyer have already executed a
Security Agreement and an Escrow Agreement. Within thirty (30) days of execution
of this Agreement, Supplier and Buyer shall execute a Revised Escrow Agreement
and a Revised Security Agreement.

      5.2 CREDIT ASSURANCES PROVIDED BY CUSTOMERS. The relevant Escrow Account
shall be maintained during the entire Term of this Agreement, and thereafter
until all amounts due for Energy and related services sold to each Retail
Contract(s) entered into pursuant hereto shall have been settled per the Revised
Escrow Agreement and Revised Security Agreement.

                                    ARTICLE 6
                 INVOICING, PAYMENT AND ACCOUNT RECONCILIATION

      6.1 INVOICING AND PAYMENT. The Parties understand and agree that Supplier
invoicing shall initially be based on Energy delivered to Customers on a
calendar month basis modified for line losses. Once the Parties have agreed to
an invoice amount, Buyer shall prepare a Form of Distribution Request
("Distribution Request") for Supplier's final review and approval prior to
submission to the Escrow Agent for distribution. For example, if Supplier
delivers Energy to Customers during July 2004, Supplier shall use July delivery
data to create its July invoice payable under the September 2004 invoice for
Buyer's review. Customer invoiced payments received for July deliveries shall
accrue in the Lockbox/Escrow Account until the next

<PAGE>

disbursement date occurs [September 2004]. Based on the Distribution Request
procedure set forth in the Revised Escrow Agreement, which is incorporated
herein by reference, the Parties shall discuss the September invoice initially
prepared by Supplier. The Parties shall cooperate to resolve any disputes over
invoices that arise. Buyer shall review and approve the undisputed portion of
Supplier's invoice. Based on that agreement of the Parties, Buyer shall then
prepare a Distribution Request for Supplier's final review and approval within
three (3) Business Days of Supplier's receipt of such Distribution Request,
prior to submission to the Escrow Agent. Once Supplier has approved and
delivered a fully-approved Distribution Request which appears to comply in all
material respects as required, the Escrow Agent shall make distributions as set
forth in the Revised Escrow Agreement by the EARLIER OF: two (2) Business Days
of receipt of a fully-approved Distribution Request, or by the twenty-fifth
(25th) day of the month, if a Business Day and a fully-approved Distribution
Request has been received. The Parties agree to follow this same procedure each
month. Billing adjustments shall be made, as appropriate, after Energy imbalance
information becomes available per Section 6.2 below.

      6.2 ACCOUNT RECONCILIATION. Any disputed portions of the invoice, along
with any credits and charges due and owing either Party, based on Energy
imbalance data, and as modified for line losses, will be included in a
Reconciliation Charge/Credit submitted as part of the monthly invoice
subsequently provided to Buyer by Supplier. The Parties agree to expeditiously
resolve any and all disputes, and the Parties agree to follow this same
procedure each month. If the Parties are unable to resolve a payment dispute
through settlement checkout with each other, they agree to seek to resolve such
dispute through the Dispute Resolution procedure set forth herein in Article
8.4.

                                    ARTICLE 7
                PARTIES' RESPONSIBILITIES WITHIN THE DECO PROGRAM

      7.1 THE DECO PROGRAM. Supplier shall function as a Marketer on behalf of
Buyer under the Marketer Agreement for Electric Choice Program between The
Detroit Edison Company and Supplier, and Buyer shall act as an AES/Retailer
under the AES/Retailer Agreement for Electric Choice Program between The Detroit
Edison Company and Buyer.

                                    ARTICLE 8
                              MISCELLANEOUS ISSUES

      8.1 CONFIDENTIALITY. The terms of this Agreement, including the
Transaction(s) hereunder, are confidential and are not to be disclosed to any
third Party without the prior written consent of the non-disclosing Party except
to the extent disclosure may be required by law, regulation or judicial or
administrative order.

      8.2 GOVERNING LAW. This Agreement is to be construed under the laws of the
State of Michigan, without regard to any choice of law rules that would
otherwise require the application of the laws of another state. State and
federal courts situated in the State of Michigan shall have exclusive
jurisdiction to resolve any disputes with respect to this Agreement. Each Party
irrevocably consents to the jurisdiction described above for any actions, suits
or proceedings arising out of or relating to this Agreement.

      8.3 CONFLICTING TERMS, hi the event of any conflict between the terms of
this Agreement and the terms of the EEI Master Agreement, the terms of this
Agreement shall control. In the event of any conflict between the terms of this
Agreement and any provision of the Revised Security Agreement or the Revised
Escrow Agreement, the terms of the Revised Security Agreement or the Revised
Escrow Agreement will control. In the event of any conflict between the terms of
this Agreement and the terms of a particular Confirmation, the terms of the
particular Confirmation shall control.

<PAGE>

      8.4 ALTERNATIVE DISPUTE RESOLUTION. The Parties agree to seek to resolve
any dispute herein pursuant to good faith business negotiations. In the event of
such a dispute, the aggrieved Party shall promptly identify in writing the
nature of the outstanding dispute in sufficient detail so as to allow the other
Party to respond to the issue. Each Party agrees to (a) set a time and place for
a face-to-face meeting between a senior representative of each Party within 10
Business Days of written notice of the dispute, (b) identify in writing its own
position on the dispute, and (c) propose a resolution of the dispute. The
Parties agree to hold no fewer than one meeting within the time frame required
above in this Section 8.4(a) and to meet for at least a total of two hours at
the face-to-face meeting to discuss their respective positions and explore a
contractual resolution of the dispute. Such good faith procedures shall be a
condition precedent to any declaration of default by one Party against the
other, arbitration or litigation of the dispute.

      8.5 ENTIRE AGREEMENT. This Agreement, including the exhibits hereto,
contain the Parties' entire agreement relating to the subject matter hereof and
supersedes any other agreements, written or oral, between the Parties concerning
such subject matter. No amendment or alteration to this Agreement shall be
effective unless in writing and signed by the Parties.

      8.6 NO WAIVER. No waiver at any time by any Party hereto of its rights
with respect to the other Party or with respect to any matter arising in
connection with this Agreement shall be considered a waiver with respect to any
subsequent default whether of a like kind or different in nature.

      8.7 ASSIGNMENT. Neither Party may assign this Agreement or any right or
obligation under this Agreement without the prior written consent of the other
Party, which consent shall not be unreasonably withheld or delayed.

      8.8 No PARTNERSHIP OR JOINT VENTURE. This Agreement does not establish and
should not be construed as establishing any partnership or joint venture by and
between the Parties, and neither Party shall have any duties, obligations or
liabilities arising under such a relationship. This Agreement shall not impart
any rights enforceable by any third party (other than a permitted successor or
assignee bound by this Agreement). The Parties acknowledge and agree that Buyer
is not in any way affiliated with Supplier and that Supplier is a wholesale
electricity provider contracted by Buyer solely to perform the activities set
forth herein and in the relevant agreements between them.

      8.9 SEVERABILITY. If any provision of this Agreement is held invalid or
unenforceable, all other provisions shall not be affected. With respect to any
provision held invalid or unenforceable, the Parties shall amend or modify this
Agreement as necessary to effect as closely as possible the Parties' original
intent.

<PAGE>

      8.10 COUNTERPARTS. This Agreement may be executed in any number of
counterparts and each executed counterpart shall have the same force and effect
as an original instrument.

      8.11 TERM. This Agreement shall continue indefinitely and shall terminate
only upon 30 days' prior written notice by one Party to the other Party;
provided, however, that such termination shall not affect or excuse the
performance of either Party under any provision of this Agreement that by its
terms survives any such termination, and, provided further, that this Agreement
and any other documents executed and delivered hereunder shall remain in effect
with respect to any Transaction(s) entered into prior to the effective date of
such termination until both Parties have fulfilled all of their obligations with
respect to such Transaction(s).

      8.12 ASSUMPTION BY BUYER OF ANOTHER AES'S SALES CONTRACTS. In Supplier's
sole discretion, in the event that a Michigan alternative energy supplier
("AES") has defaulted under one or more of its agreements with Supplier, the
Parties shall agree that the following general principles and procedure would
apply: (1) Buyer would promptly assume AES customer sales contracts "AS IS" and
would simultaneously assume the wholesale supply arrangement between defaulted
AES and Supplier; (2) Supplier would furnish assurances to Buyer that a positive
margin exists between the defaulted AES's customer sales contracts and the
defaulted AES/Supplier supply contract; (3) Supplier would guarantee a minimum
dollar per MWh margin (to be determined based on the value of the defaulted AES
retail customer contracts portfolio or some other mutually agreed upon value,
e.g., $0.50 per MWh to cover the cost of operations); (4) Supplier would furnish
the defaulted AES customer portfolio in such a manner that would permit easy
review and assessment by Buyer, e.g., Supplier will denote non-standardized
language components in any defaulted AES customer sales contracts, e.g., varying
late fee payment to 1%, etc.; (5) Buyer would be prepared to issue notices
promptly to former defaulted AES customers regarding its assumption of the
defaulted AES customer sales contracts; and (6) Buyer would work with Supplier
to identify any additional steps that are necessary to complete Buyer's
assumption of the defaulted AES customer sales contracts and the defaulted
AES/Supplier supply contract(s).

      8.13 NOTICES. Any notice required or given pursuant to this Agreement
("Notice") shall be in writing and delivered by means of private overnight
delivery, or by facsimile transmission, addressed as follows:

             To Supplier:

             DTE Energy Trading, Inc.
             414 S. Main Street, Suite 400
             Ann Arbor, MI 48104
             Ann: Marcia Hissong, Contract Administration
             Phone No.: 734.887.2042
             Fax No.: 734.887.2235

             To Buyer:

             Commonwealth Energy Corporation
             600 Anton, 20th Floor
             Costa Mesa, CA 92626
             Attn: Robert Gunnin,
             Vice President Energy Supply
             Phone No.: (714)259-2502
             Fax No.: (714) 259-2592

<PAGE>

      IN WITNESS WHEREOF, the Parties have caused this Agreement to be duly
executed as of the date first above written.

                                        COMMONWEALTH ENERGY CORPORATION

                                        By:  /s/ Peter Weigand
                                        Its:  President

                                                    ("Debtor")

                                        DTE ENERGY TRADING, INC.

                                        By:   /s/ Randall D. Balhorm
                                        Its:   President

                                                    ("Secured Party")

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