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                                                                   EXHIBIT 10.42

                                    AGREEMENT
                                       TO
              EXTEND THE TERM OF THE 1996 COLLECTIVE BARGAINING AGREEMENT

The undersigned agree this 3RD day of DECEMBER, 1999 to extend the term of their
collective bargaining agreement, that is effective from APRIL 1, 1996 until May
2, 2000, for an additional period of four years, until 12:01 a.m., May 2, 2004.
Except only for the following changes, all provisions of the collective
bargaining agreement, including the four memorandums ratified by the Union
membership since April 1, 1996, will continue in effect until 12:01 a.m., May 2,
2004:

1.      The second sentence of Article XX, Section 1 of the collective
        bargaining agreement is revised to read:

               "It shall continue in effect until 12:01 a.m., May 2, 2004 and
               shall be renewed thereafter from year to year unless written
               notice is given by either party sixty (60) days prior to the
               expiration date that it is desired to terminate or amend the
               Contract."

2.      Appendix D is revised to add the attached tables of base hourly rates to
        become effective on May 2, 2000, May 2, 2001, May 2, 2002 and May 2,
        2003 that provide for annual base hourly wage adjustments and annual
        lump sum payments, as follows:

               Wage rates effective May 2, 2000

                      2% General Wage Increase to the May 2, 1999 base hourly
                      wage rates, plus a lump sum wage payment of 2% of each
                      bargaining unit employee's base rate shall be paid to
                      active hourly employees on the payroll as of May 2, 2000.

               Wage rates effective May 2, 2001

                      2% General Wage Increase to the May 2, 2000 base hourly
                      wage rates, plus a lump sum wage payment of 2% of each
                      bargaining unit employee's base rate shall be paid to
                      active hourly employees on the payroll as of May 2, 2001.
                      *

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                Wage rates effective May 2, 2002

                       2% General Wage Increase to the May 2, 2001 base hourly
                       wage rates, plus a lump sum wage payment of 2% of each
                       bargaining unit employee's base rate shall be paid to
                       active hourly employees on the payroll as of May 2, 2002.

                Wage rates effective May 2, 2003

                       2% General Wage Increase to the May 2, 2002 base hourly
                       wage rates, plus a lump sum wage payment of 2% of each
                       bargaining unit employee's base rate shall be paid to
                       active hourly employees on the payroll as of May 2, 2003.
                       *

                Lump sum payments will be based on annualized percent increases
                on each base classification rate on dates of adjustment.

3.      Appendix E, COLA, Section 2, is revised as attached only to extend the
        table of quarterly COLA adjustment dates from 8/7/00 through 5/2/04.
        During the extended term of the collective bargaining agreement, COLA
        will continue to be paid as a separate rate per hour for each hour an
        employee receives pay from the Company and will be paid weekly.

4.      The term "Paper, Allied-Industrial, Chemical and Energy Workers
        International Union, AFL-CIO" is substituted for the terms "Oil,
        Chemical and Atomic Workers International Union," or "International
        Union, wherever those terms presently appear in the collective
        bargaining agreement or addendum thereto.

5.      The term "Paper, Allied-industrial, Chemical and Energy Workers
        International Union, AFL-CIO, and its Affiliated Local No. 5-689" is
        substituted for the term "Oil, Chemical and Atomic Workers International
        Union, and its Affiliated Local No. 3-689" wherever that term presently
        appears in the collective bargaining agreement or addendum thereto.

6.      The term "PACE" is substituted for the term "OCAW" wherever that term
        presently appears in the collective bargaining agreement or addendum
        thereto.

7.      The term "United States Enrichment Corporation, Portsmouth Gaseous
        Diffusion Plant ('USEC')" is substituted for the terms "Lockheed Martin
        Utility Services, Inc., Portsmouth Gaseous Diffusion Plant", "Lockheed
        Martin Utility Services, Inc." or "LMUS", wherever those terms presently
        appear in the collective bargaining agreement or addendum thereto.

8.      The term "outlined in Section 6(d)", a typographical error contained in
        Article VIll, Section 6(d) of the collective bargaining agreement, is
        revised to read "outlined in Section 6(e)".

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9.      Shift work schedules for calendar years 2001, 2002, 2003 and 2004 will
        be jointly prepared and published to the membership prior to May 2,
        2000.

AGREED:

For Paper, Allied -Industrial, Chemical and Energy Workers International
Union, AFL-CIO

By:     /s/Peter A. Brown
        ---------------------

For Paper, Allied-industrial, Chemical and Energy Workers International Union,
AFL-CIO and its Affiliated local 5-689

By:     s/s/Dan Minter                      s/s/Martin J. Ross
        ---------------------               ---------------------
        s/s/Mike Neal
        ---------------------
        s/s/L.J. Smith
        ---------------------
        s/s/William R. Dimit
        ---------------------

For United States Enrichment Corporation, Portsmouth Gaseous Diffusion Plant

By:     s/s/W.E. Thompson
        ---------------------
        s/s/J.R. Uhlinger
        ---------------------
        s/s/Gary M. Hairston
        ---------------------

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                                                                   EXHIBIT 10.43

                              Department of Energy

                              One Ridge Operations
                                  P.O. Box 2001
                           Oak Ridge, Tennessee 37831-

                                          May 24, 2000

Mr. E. Linn Draper, Jr.
President
Ohio Valley Electric Corporation
Post Office Box 16631
Columbus, Ohio 43216

Dear Mr. Draper:

LETTER SUPPLEMENT TO CONTRACT NO. DE-AC05-76OR01530

This letter supplement will confirm the understanding reached between Ohio
Valley Electric Corporation (OVEC) and the United States Department of Energy
(DOE) with respect to Power Agreement No. DE-AC05-76OR01530 (Agreement) to
reduce the DOE Contract Demand (as that term is defined in the Agreement) and
obtain reasonably priced power for the OVEC Sponsoring Companies during the
summer of 2000.

We understand from our discussions with representatives of OVEC that the OVEC
Sponsoring Companies would be able to utilize capacity and the energy related
thereto, which DOE offers to release during the period June 1 through September
30, 2000. Accordingly, we understand that OVEC, with the concurrence of its
Sponsoring Companies, is willing to agree pursuant to Paragraph 1 of Section
2.05 and Section 7.11 of the Agreement, to waive for such periods any
requirement that the DOE Contract Demand during such period be 1899 MW.

In consideration for such reduction in DOE Contract Demand, we understand that
OVEC, with the concurrence of its Sponsoring Companies, is willing pursuant to
Section 7.11 to waive partially (i) the requirements under Sections 3.06 and
3.07 of the Agreement that DOE pay one hundred percent (100%) of the costs of
Additional Facilities and Replacements (AFR) and (ii) if appropriate, the
requirements under Sections 3.04.4 and 3.04.5 of the Agreement that the
adjustments of demand charges shall be made on the basis that the average DOE
capacity ratio in effect equaled unity as to amounts, if any, specified in
Section 3.04.3 with respect to the costs of AFR.

Accordingly, DOE and OVEC agree as follows:

(a)    The Contract Demand under the Agreement for the purposes of Clause (A) of
       Paragraph 1 of Section 2.05 thereunder shall be reduced from June 1,
       2000, through September 30, 2000, to 1299 MW. The difference between
       Contract Demand absent such reduction (1899 MW) and Contract Demand after
       such reduction (1299 MW) is referred to herein as Released Demand.

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(b)    Subject to paragraph (c) below, DOE shall be relieved of thirty-one and
       six/tenths percent (31.6%) of the AFR costs incurred by OVEC from June 1,
       2000, through September 30, 2000, as well as the gross-up to cover
       estimated income taxes, if any, associated with that amount, provided
       that DOE will remain responsible for those AFR costs financed pursuant to
       DOE's requests dated July 30, 1999 and April 25, 2000 and pursuant to any
       subsequent request by DOE that OVEC finance AFR costs. Although DOE will
       be entitled to such AFR cost relief, DOE will continue to pay amounts due
       each year to a trustee for purchasers of OVEC notes pursuant to
       assignments, consents to assignment and notices of assignment dated on or
       about June 9, 1993, related to the financing of the Clifty Creek Coal
       Switch Project. DOE will be entitled to audit such AFR costs in
       accordance with Section 7.04 of the Agreement.

(c)    DOE will be responsible for capacity costs related to Released Demand and
       will not be relieved of AFR costs pursuant to paragraph (b) above when
       and to the extent that energy associated with Released Demand is not
       received by the Sponsoring Companies because of a curtailment or outage
       of the OVEC generating plants or the OVEC transmission facilities (an
       OVEC Outage). Any transmission loading relief, which is not caused by an
       OVEC Outage will not be considered an OVEC Outage.

(d)    The monthly Contract Demand will be further reduced (from 1299 MW) by 700
       MW for the months of June 2000 through August 2000 and by 500 MW for the
       month of September 2000 (DOE Additional Power Release).

(e)    As consideration for the DOE Additional Power Release, OVEC will, subject
       to receipt of all required regulatory approvals, pay DOE as follows: $3
       million in June 2000, $15 million in July 2000, $15 million in August
       2000, and the balance in September 2000 (OVEC Payment), all subject to
       monthly true-ups. If required regulatory approvals are not received by
       June 15, 2000, the DOE Additional Power Release payments which would have
       been due DOE from OVEC if the required regulatory approvals had been
       received by such date, will be due 15 days after receipt of the last of
       such approvals. The total OVEC Payment shall be equal to the monthly DOE
       Additional Power Release set forth in paragraph (d) above times $42.24
       per MWH during June, $118.60 per MWH during July and August, and $25.76
       per MWH during September, times the number of on-peak hours (5 x 16)
       during each such month, minus (a) the demand charges, which DOE avoids
       because of the DOE Additional Power Release, and (b) the charges for
       energy in amounts equal to the DOE Additional Power Release times the
       number of on-peak hours during such month times OVEC's energy rate per
       MWH.

(f)    The United States Enrichment Corporation (USEC) has agreed to pay the
       premium and any deductible for an insurance policy with a limit of
       liability of $18,800,000, in form and substance satisfactory to the
       Sponsoring Companies listed below ( Insured Sponsoring Companies ). This
       policy will provide coverage to the Insured Sponsoring Companies for
       their payment obligation under paragraph (e) for power and energy not
       received by the Insured Sponsoring Companies because of an OVEC Outage.
       If for any reason insurance is not available or cost effective, or is not
       acceptable to the Insured Sponsoring Companies, OVEC is relieved of the
       obligation to pay DOE the amounts set forth in paragraph (e) for OVEC
       power and energy not received by the Insured Sponsoring Companies because
       of an OVEC Outage.

                          Insured Sponsoring Companies
                          ----------------------------
                          Kentucky Utilities Company
                          Louisville Gas and Electric Company
                          Ohio Edison Company
                          Pennsylvania Power Company
                          The Toledo Edison Company

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(g)    OVEC shall, pursuant to Section 2.04.1 of the Agreement, be excused from
       providing supplemental power to make up for any insufficiency of
       permanent power which has been released by DOE pursuant to this letter
       supplement.

(h)    The parties acknowledge that the payments to DOE computed pursuant to
       paragraph (e) are subject to approval by the Public Utilities Commission
       of Ohio. Likewise, surcharge payments to OVEC by the Sponsoring Companies
       to cover OVEC's costs of such payments are subject to execution by the
       Sponsoring Companies, and regulatory approval, of an amendment to the
       Inter-Company Power Agreement in form and substance satisfactory to OVEC
       providing for payments to OVEC by the Sponsoring Companies sufficient to
       permit OVEC to pay its obligations to DOE. The parties further
       acknowledge that such amendment to the Inter-Company Power Agreement is
       subject to acceptance by the Federal Energy Regulatory Commission, filing
       with the Indiana Utility Regulatory Commission and approval by the
       Virginia State Corporation Commission. OVEC will use its best efforts to
       obtain all required regulatory approvals, including those referenced in
       this paragraph as expeditiously as possible, and to request such
       approvals be in effect by June 1, 2000. Until all required regulatory
       approvals are received, DOE will not be entitled to payment from OVEC
       pursuant to paragraph (e) of this letter supplement. Instead, the
       Contract Demand under the Agreement for the purposes of Clause (A) of
       Paragraph 1 of Section 2.05 thereunder shall be deemed to be 599 MW for
       the calendar months of June through August 2000 and 799 MW for the
       calendar month of September 2000; and DOE will be relieved of an
       additional thirty-four and two/tenths percent (34.2%) of the AFR costs
       incurred by OVEC from June 1, 2000, through September 30, 2000, as well
       as the gross-up to cover estimated income taxes, if any, associated with
       those amounts, provided that DOE will remain responsible for those AFR
       costs financed pursuant to DOE s requests dated July 30, 1999, and April
       25, 2000, and pursuant to any subsequent request by DOE that OVEC finance
       AFR costs. Although DOE will be entitled to such AFR cost relief, DOE
       will continue to pay amounts due each year to a trustee for purchasers of
       OVEC notes pursuant to assignments, consents to assignment and notices of
       assignment dated on or about June 9, 1993, related to the financing of
       the Clifty Creek Coal Switch Project. DOE will be entitled to audit such
       AFR costs in accordance with Section 7.04 of the Agreement.

(i)    Neither DOE nor OVEC will assert that a failure by any other party to
       enforce rights it may have under the Agreement or the Inter-Company Power
       Agreement constitutes, nor shall such failure to enforce such rights
       constitute, a waiver or relinquishment, explicit or implicit, of any
       provision of either agreement.

If OVEC agrees to the matters described above, please execute a copy of this
letter at the place designated for your signature.

                                       Sincerely,

                                         /s/ George W. Benedict
                                       -----------------------------
                                       George W. Benedict
                                       Assistant Manager for
                                       Uranium and Engineering Services

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   /s/ Mark A. Million
----------------------------
Mark A. Million
Authorized Contracting Officer

OVEC hereby agrees to the
provisions herein described.

OHIO VALLEY ELECTRIC CORPORATION

   /s/ E. Linn Draper, Jr.
-----------------------------

Date:    May 25, 2000
     ---------------------

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