Document:

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                                                                   Exhibit 10.23

                                   POWER PURCHASE AGREEMENT

                                            BETWEEN

                                  TENNESSEE VALLEY AUTHORITY

                                              AND

                                LSP ENERGY LIMITED PARTNERSHIP

      THIS AGREEMENT is made and entered into as of the 25th day of February,
2000, by and between Tennessee Valley Authority ("TVA") and LSP Energy Limited
Partnership ("LSP Energy"). LSP Energy and TVA are also hereinafter sometimes
referred to individually as "Party" and collectively as "Parties."

                                    RECITALS

      A.    LSP Energy and TVA have entered into Interconnection Agreement
            98PAP-236148, dated July 22, 1998 ("Interconnection Agreement").
            Capitalized terms that are not defined in this Agreement shall have
            the meaning set forth in the Interconnection Agreement for the same
            defined term.

      B.    LSP Energy and TVA desire to set forth in this Agreement certain of
            the terms and conditions which shall govern TVA's purchase of energy
            during the start-up and test period of the Facility.

                                   AGREEMENTS

      LSP Energy and TVA agree as follows:

      1.    DELIVERY AND PURCHASE OF TEST ENERGY

            1.1   The Facility consists of three generating units. Each
generating unit consists of a single combustion turbine generator and steam
turbine generator set ("Unit"). LSP Energy shall deliver at the point specified
in Section 5, and TVA shall receive and pay for, all electric energy ("Test
Energy") generated by each Unit of the Facility during the start-up and test
period of such Unit, as designated by LSP Energy at its sole discretion ("Test
Period"). During the Test Period for each Unit, by 1100 Central Time, LSP Energy
shall provide TVA with an estimate, characterized by hour, of the quantity of
Test Energy to be generated by such Unit for the following Day. TVA recognizes
that the estimated Test Energy schedule may vary from actual Test Energy
delivered due to the inherent uncertainty associated with the start-

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up and testing of new power plants; provided, however, LSP Energy shall use
reasonable efforts to minimize variances between the scheduled Test Energy and
the delivered Test Energy. LSP Energy shall promptly notify TVA upon the
occurrence of any changes to the estimated Test Energy schedule.

            1.2   Subject to the limitations set forth in the Interconnection
Agreement, LSP Energy shall have sole discretion to determine the quantity of
Test Energy generated during the Test Period, and, except as specified in
Section 1.1, LSP Energy shall have no obligation to schedule, deliver or sell
any specific quantity of energy from the Facility to TVA as Test Energy or
otherwise. Following termination of the Test Period for a Unit and subject to
the limitations set forth in the Interconnection Agreement, LSP Energy shall
have the right to sell energy and capacity from such Unit to any other party
whether or not LSP Energy is concurrently delivering Test Energy from any other
Unit; provided that, pursuant to Section 1.1, LSP Energy may not sell to others
any Test Energy.

      2.    TERM AND TERMINATION

            2.1   This Agreement shall become effective as of the Initial
Synchronization Date of the first Unit to be tested and shall continue in effect
until its expiration at 00:00 hours Central Time on the day following completion
of the Test Period for the last Unit to be tested ("Expiration Date"); provided,
however, the provisions of this Agreement (excluding Section 5.2, which shall
continue to apply to all Units until the Expiration Date) shall cease to apply
to any Unit upon completion of the Test Period for such Unit. LSP Energy at its
sole discretion shall promptly notify TVA of the completion of the Test Period
for each Unit.

      3.    PRICE OF ENERGY

            3.1   The price that TVA shall pay to LSP Energy for Test Energy
received by TVA under this Agreement during each clock hour shall be the lower
of (a) the then-current price provided for in Part B of TVA's Dispersed Power
Price Schedule CSPP (currently $21.29/MWh during onpeak hours, $16.74/MWh during
offpeak hours), and (b) the amount calculated by multiplying TVA's decremental
system cost during that clock hour by 0.9. The North American Electric
Reliability Council definition of onpeak and offpeak periods shall apply.

      4.    BILLING AND PAYMENT

            4.1   The hourly charge to TVA for Test Energy received by TVA
during any clock hour shall be equal to the metered Test Energy for the clock
hour (determined in accordance with Section 2.3 of the Interconnection
Agreement) multiplied by the price of Test Energy during the clock hour
(determined in accordance with Section 3.1 of this Agreement). The summation of
all hourly charges for Test Energy received by TVA in the Month shall be TVA's
monthly charge for Test Energy received by TVA for the Month. TVA will promptly
render payment to LSP Energy within 30 Days after the end of the Month during
which said Test Energy was received. If the payment date falls on a non-business
Day, then the payment shall be due on the next following Business Day. Payments
shall be made by electronic transfer to an appropriate account designated by LSP
Energy.

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            4.2   In case any portion of any payment is the subject of a bona
fide dispute, the undisputed amount shall be payable when due as described in
Section 4.1, and any disputed amount subsequently determined to be owed by TVA
to LSP Energy shall be paid promptly after such determination, with interest
calculated in accordance with the methodology specified for interest on refunds
in FERC's regulations at 18 CFR Section 35.19a(a)(2)(iii) from the date such
amount would have been paid in the absence of any dispute.

      5.    POINT OF DELIVERY

            5.1   Test energy provided under this Agreement shall be delivered
by LSP Energy to TVA at the Delivery Point specified in the Interconnection
Agreement. The Test Energy shall be provided by LSP Energy in accordance with
Good Utility Practice. Title to and risk of loss of the Test Energy delivered by
LSP Energy shall pass from LSP Energy to TVA upon delivery thereof at the
Delivery Point.

            5.2   Until the Expiration Date, all of the Facility Electrical
Output for each Unit (including those Units for which the Test Period has been
completed prior to the Expiration Date) shall be delivered into the TVA Control
Area.

      6.    FORCE MAJEURE

            6.1   Neither Party shall be responsible for, liable for, or deemed
in breach of this Agreement for any delay or failure in the performance of its
respective obligations under this Agreement (except for obligations to pay
money, which shall not be excused due to Force Majeure) to the extent such delay
or failure is due solely to circumstances beyond the reasonable control of the
Party experiencing such delay or failure (such Party referred to herein as the
"Non-Performing Party"), including but not limited to acts of God; labor
disturbance; extraordinarily severe weather conditions; war; riots;
requirements, actions, or failures to act on the part of governmental
authorities preventing or delaying performance; fire; damage to or breakdown of
necessary facilities (such causes hereinafter called "Force Majeure"); provided
that:

            (i)   The Non-Performing Party gives the other Party written notice
within two (2) Business Days of the Force Majeure, with details to be supplied
within ten (10) Days further describing the particulars of the event; and

            (ii)  The suspension of performance is of no greater scope and of no
longer duration than is attributable to the Force Majeure; and

            (iii) The Non-Performing Party uses all reasonable efforts to remedy
its inability to perform; and

            (iv)  When the Non-Performing Party is able to resume performance of
its obligations under this Agreement, that Party shall give the other Party
written notice to that effect; and

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            (v)   The Force Majeure was not caused by or connected with the
Non-Performing Party's negligent or intentional acts, errors, or omissions, or
its failure to comply with any law, rule, regulation, order, or ordinance, or
for its breach or default of this Agreement.

      7.    LIMITATION OF LIABILITY

            7.1   Neither Party shall be liable in contract, in tort (including
negligence and strict liability), under any warranty, or otherwise to the other
Party, its agents, representatives, its affiliated and associated companies, or
its assigns, for any special, indirect, incidental, consequential, or punitive
damages resulting from either Party's performance or non-performance of an
obligation imposed on it by this Agreement.

      8.    LAWS, REGULATIONS, ORDERS, APPROVALS, AND PERMITS

            8.1   This Agreement is made subject to present and future
applicable local, state, and Federal laws and to the regulations or orders of
any local, state, or Federal regulatory authority having jurisdiction over the
matters set forth herein. Performance under this Agreement is conditioned upon
securing and retaining such local, state, or Federal approvals, grants, or
permits and upon the satisfactory performance of all necessary environmental
reviews as may from time to time be necessary with respect to such performance.
Each Party shall use its Commercially Reasonable best efforts to secure and
retain all such approvals, grants, and permits within such time as will permit
it to perform all of its obligations under this Agreement.

      9.    ASSIGNMENTS

            9.1   This Agreement shall be binding upon and shall inure to the
benefit of, and may be performed by, the successors and assigns of the
Parties, except that no assignment, pledge, or other transfer of this
Agreement by either Party shall operate to release the assignor, pledgor, or
transferor from any of its obligations under this Agreement unless: (a) the
other Party consents in writing to such assignment, pledge, or other
transfer, and releases, in writing, the assignor, pledgor, or transferor from
any of its obligations under this Agreement, which consent and release shall
not be unreasonably withheld; (b) the assignment, pledge, or other transfer
is to an affiliate of the assignor, pledgor, or transferor and the assignee,
pledgee, or transferee has assumed, in writing, all of the obligations of the
assignor, pledgor, or transferor under this Agreement, provided that such
assignee, pledgee, or transferee has demonstrated financial capacity at least
equal to that of the assignor, pledgor, or transferor; or (c) such assignment
or transfer is incident to a merger or consolidation with, or assignment or
transfer of all, or substantially all, of the assets of the assignor or
transferor to another person, entity, political subdivision, or public
corporation that will, as part of such succession, assume all of the
obligations of the assignor, pledgor, or transferor under this Agreement,
provided that such person, entity, political subdivision, or public
corporation has demonstrated financial capacity at least equal to that of the
assignor, pledgor, or transferor. TVA hereby consents to LSP Energy's
assignment of its right, title, and interest to this Agreement to its project
lenders in conjunction with the financing of the Facility, provided that such
assignment and consent shall in no way modify the obligations of the Parties
under this Agreement.

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            9.2   Except as provided in Section 9, neither Party may assign,
pledge, or otherwise transfer its rights under this Agreement to any other
entity without the consent of the other Party, which consent shall not be
unreasonably withheld.

      10.   NOTICES

            10.1  All notices and communications under this Agreement shall be
deemed given to a Party (a) if delivered by hand or sent by overnight courier,
on the day of delivery or (b) if sent by registered or certified mail, return
receipt requested, on the date of receipt.

                    If to LSP Energy:
                    LSP Energy Limited Partnership
                    c/o LS Power, LLC
                    Two Tower Center, 20th Floor
                    East Brunswick, New Jersey 08816
                    Attention: Michael P. Witzing
                                 Phone: 732-249-6750
                                 Fax: 732-249-7290

                    If to TVA:
                    General Manager, Electric System Operations
                    Tennessee Valley Authority
                    1101 Market Street, MR BA
                    Chattanooga, Tennessee 37402-2801

            The designation of the person to be so notified or the address of
such person may be changed at any time and from time to time by either Party by
similar notice.

      11.   ACCOUNTS AND RECORDS

            11.1  The Parties shall keep complete and accurate records of their
operations under this Agreement and shall maintain such records for a period of
at least four years after the expiration of this Agreement. Either Party shall
have the right, at its own expense, to examine and inspect upon reasonable
notice, through a third-party auditing entity acceptable to both Parties, all
such records insofar as may be necessary for the purpose of ascertaining the
reasonableness and accuracy of all relevant data, estimates, statements, or
charges hereunder. Such records, including cost information, that are indicated
to be proprietary and confidential shall not be disclosed to the Party
requesting the examination and shall only be made available to the auditing
entity on condition that the records and information are not disclosed, except
as required by law, to the other Party or others without the express written
approval of the Party whose records and cost information are being examined.

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      12.   THIRD-PARTY BENEFICIARIES

            12.1  Except as expressly provided in Section 9.2, nothing in this
Agreement, express or implied, shall be construed to create rights in, or to
grant remedies to, or delegate any duty, obligation, or undertaking established
herein to any third party as a beneficiary to this Agreement.

      13.   CHOICE OF LAW

            13.1  The validity, interpretation, and performance of this
Agreement shall be governed by the applicable Federal law of the United States
of America, without regard to the laws requiring application of the laws of
another jurisdiction.

      14.   MISCELLANEOUS

            14.1  A holding by any court or governmental agency having
jurisdiction that any provision of this Agreement is invalid shall not result in
invalidation of the entire Agreement, and all remaining terms shall remain in
full force and effect.

            14.2  No statement or agreement, oral or written, that was made
prior to entering into this Agreement shall vary or modify the written terms of
this Agreement, except to the extent stated in Recital A to this Agreement.
Neither Party shall claim any amendment to or modification of or release from
any provision by mutual agreement unless that agreement is in writing signed by
the other Party and which specifically states that it is an amendment to,
modification of, or release from this Agreement.

            14.3  The section headings are for convenience only and shall not be
interpreted in any way to limit or change the subject matter of this Agreement.

            14.4  This Agreement may be executed in several counterparts, each
of which shall be considered an original and all of which shall constitute but
one and the same instrument.

            14.5  Each Party warrants and represents to the other on the date of
this Agreement that (a) it has the power to enter into and perform its
obligations under this Agreement; (b) entering into and performing this
Agreement does not violate or conflict with its charter, bylaws, licenses,
consents, regulatory approvals, or comparable governing documents, any law
applicable to it, any order or judgment of any court or other agency of
government applicable to it, or any agreement to which it is a party; and (c)
the Parties and the individuals and entities signing this Agreement on their
behalf warrant that they have the necessary power and authority to execute this
Agreement and thereby bind the respective Parties.

            14.6  A waiver by either Party of any one or more defaults by the
other in the performance of any of the provisions of this Agreement shall not be
construed as a waiver of any other default or defaults, whether of a like kind
or different nature.

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      IN WITNESS WHEREOF, the Parties hereto have caused this Agreement to be
signed by their respective duly authorized representatives.

                                   LSP ENERGY LIMITED PARTNERSHIP
                                   BY: LSP ENERGY, INC., its general partner

                                   By: /s/ Michael P. Witzing
                                       -----------------------------------------
                                   Name:   Michael P. Witzing
                                         ---------------------------------------
                                   Title:  Vice President
                                          --------------------------------------

                                   TENNESSEE VALLEY AUTHORITY

                                   By: /s/ Terry Boston
                                       -----------------------------------------
                                       Terry Boston
                                       Executive Vice President
                                       Transmission/Power Supply Group

                                       7<PAGE>

                                                                   Exhibit 10.24

    FACILITIES INTERCONNECT, CONSTRUCTION, OWNERSHIP AND OPERATION AGREEMENT
                                    BETWEEN

                             TRUNKLINE GAS COMPANY

                                      AND

                         LSP ENERGY LIMITED PARTNERSHIP

                                      FOR

                                 M&R _________

                           PANOLA COUNTY, MISSISSIPPI

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    FACILITIES INTERCONNECT, CONSTRUCTION, OWNERSHIP AND OPERATION AGREEMENT

This Facilities Interconnect, Construction, Ownership and Operation Agreement
("Agreement") is made this 28th day of January, 2000 by and between Trunkline
Gas Company ("TGC"), a Delaware Corporation with its principal office in
Houston, Texas and LSP Energy Limited Partnership ("LSPE"), a Delaware Limited
Partnership, with its principal office in Batesville, Mississippi.

                                  WITNESSETH:

WHEREAS, TGC is a natural gas transmission company rendering gas transportation
service to the public; and

WHEREAS, LSPE is engaged in the generation of electricity as an independent
power producer in the State of Mississippi; and

WHEREAS, TGC has requested an interconnection ("Interconnection") between the
24-inch pipeline owned by Panola County or a successor governmental authority
(the "County Entity") and leased to LSPE (the "LSPE Pipeline"), at approximate
survey station 110+00, and TGC's 36-inch and 30-inch Line Nos. 100-3 and 100-2,
valve section 81, at approximate milepost 328.22, in Panola County, Mississippi,
for the purpose of delivering up to 240 MMSCFD of natural gas from TGC Line Nos.
100-3 and 100-2; and

WHEREAS, TGC and one or more parties with contractual arrangements to use or
benefit from the use of the LSPE Pipeline ("Potential Shippers") may enter into,
a transportation service agreement for gas to be delivered to such Potential
Shipper through the use of the Interconnection; and

WHEREAS, TGC has examined information provided by or on behalf of the affected
Potential Shippers, and has determined that the installation of the
Interconnection is required to accommodate actual gas load, in compliance with
TGC's construction policies, and is willing to facilitate the installation of
such Interconnection under the terms and conditions set forth herein.

NOW, THEREFORE, in consideration of the premises, above, and the mutual
covenants hereinafter set forth, TGC and LSPE (the "Parties" hereto; each is a
"Party") agree as follows:

                                   ARTICLE I
                       FACILITY DESCRIPTION AND LOCATION
                       ---------------------------------

1.01  The Interconnection shall collectively consist of the installation of the
facilities comprising the "Interconnecting Facilities" and the facilities
comprising the "LSPE Tap Facilities", each as defined below. The LSPE Tap
Facilities shall consist of those facilities required by LSPE to accept gas at
the point of connection between the LSPE Pipeline and TGC and which are more
particularly described as the LSPE Tap Facilities as listed in Exhibit A, a
letter agreement dated as of September 1, 1999 by and among LSPE and TGC,
attached hereto and incorporated herein by this reference. The Interconnecting
Facilities shall consist of those facilities required by TGC to deliver gas to
the LSPE Pipeline including the following:

      A.    The measuring and regulating station ("M&R") which includes:

            1.    A single 16-inch multipath ultrasonic meter run plus
                  associated piping, valves, and an inlet and/or outlet
                  insulating flange (the "Meter Run").

            2.    Pressure regulation and/or overpressure protection equipment
                  plus associated piping and valves.

            3.    Flow control equipment to provide remote flow control
                  throttling capability and remote emergency shut-in capability
                  by TGC's Houston Gas Control Department.

                                       1
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            4.    All applicable instrumentation

      B.    The electronic gas measurement equipment ("EGM") consisting of the
            EGM building, differential and static pressure transmitters,
            temperature transmitters, RTU, communications (telephone or radio)
            equipment, chromatograph and associated equipment and
            instrumentation.

      C.    The Connecting Piping, consisting of the 16-inch piping between the
            upstream insulating flange of the LSPE Tap Facilities and the
            insulated flange downstream of the M&R piping (the "Connecting
            Piping").

      D.    The Hot Taps, consisting of a 12-inch tap valve, a 12-inch check
            valve and an insulating flange on Line Nos. 100-3 and 100-2,
            including all piping between such tap valve, check valve and
            insulating (the "Hot Taps").

      E.    The Lateral Line, consisting of approximately 1,000-feet of 16-inch
            pipeline between the Hot Taps and the M&R (the "Lateral").

      F.    Any other required equipment or materials necessary to affect the
            Interconnection not specifically included in the LSPE Tap
            Facilities.

1.02  The Interconnecting Facilities are more specifically set out in Exhibit B,
attached hereto and incorporated herein by this reference.

                                   ARTICLE II
                  ENGINEERING, CONSTRUCTION AND RIGHTS-OF-WAY
                  -------------------------------------------

2.01  REGULATORY FILING AND PERMITTING - TGC, or its designee, at its sole cost
and expense shall prepare and file any necessary FERC filings and exhibits, in
regard to the Interconnecting Facilities. LSPE shall support such filings,
provided such support shall not impose any cost on or otherwise adversely impact
LSPE. Additionally, TGC shall secure all permits required for the
Interconnecting Facilities.

2.02  DESIGN, MATERIAL SPECIFICATION AND PROCUREMENT, CONSTRUCTION AND PROJECT
MANAGEMENT - TGC, or its designee, at its sole cost and expense, shall carry out
design, material specification and procurement, construction and project
management of the Interconnecting Facilities. All designs will be in accordance
with DOT Title 49 CFR Part 192 and applicable federal, state and local safety
regulations, TGC specifications and in accordance with sound and prudent natural
gas pipeline industry practices. The measurement equipment shall be designed in
accordance with the latest edition of specifications prescribed by the American
Gas Association Measurement Committee Report No. 3, 3rd Edition, February 1991,
or any revision thereof, effective on the date of execution. The Hot Taps,
Lateral, M&R and Connecting Piping shall be designed consistent with the MAOP of
the upstream pipeline or the MAOP of the LSPE Pipeline as applicable. All
electrical equipment will be designed, installed and inspected in accordance
with the latest edition of the National Electric Code (ANSI/NFPA 70) and all
applicable TGC Engineering Standards and Specifications. All hazardous area
classifications will be determined using AGA Report XFO 277. All hazardous area
classifications will be approved by a TGC representative.

2.03  RIGHTS-OF-WAY - TGC shall acquire easement rights for the Interconnecting
Facilities.

2.04  COMMUNICATIONS - TGC shall provide to LSPE EGM compiled data through an RS
232 port. At a minimum, the signal from the EGM shall provide real time
pressure, temperature, and flow information. Under normal situations TGC will
utilize solar power and radio communications. If circumstances require
otherwise, TGC, at its expense, shall install the necessary commercial
electrical power and telephone communications.

                                       2
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                                  ARTICLE III
                                   OWNERSHIP

3.01  TGC shall own the Interconnecting Facilities. Demarcation of the change of
ownership between the Interconnection Facilities owned by TGC and the LSPE Tap
Facilities owned by the County Entity is set forth in the attached Exhibit B.

3.02  TGC shall be responsible for 100% of the costs and expenses incurred by
TGC to install the Interconnecting Facilities.

                                   ARTICLE IV
                   OPERATION AND MAINTENANCE RESPONSIBILITIES
                   ------------------------------------------

4.01  TGC or its designee, at its expense, shall operate, maintain, repair, and
replace the Interconnecting Facilities in accordance with the requirements of
any federal, state or other governmental agency having jurisdiction and in
accordance with sound and prudent natural gas pipeline industry practice.

4.02  The EGM shall calculate the custody transfer gas volumes through the M&R.
Dekatherm volumes will be calculated on a dry BTU basis. TGC shall have the
right to shut-in the Interconnection without prior notice to LSPE in accordance
with TGC's FERC Gas Tariff as effective from time to time. TGC's gas control
center located in Houston, Texas ("TGC Gas Control"), however, will notify
LSPE's designated fuel manager or gas control center ("LSPE Gas Control") as
soon as practicable thereafter.

4.03  The M&R shall include a Meter Run sufficient to measure all gas volumes
flowing to LSPE's pipeline. The M&R shall measure the flowing gas pressures and
volume pursuant to the proper nomination of gas volumes as mutually agreed upon
by TGC and LSPE or it's designee. The measurements and nominations shall be in
accordance with TGC's FERC gas tariff. TGC shall incorporate a properly sized
flow control valve or valves in the Interconnection Facilities to control the
nominated volume over the complete range from 0.5 MMSCFD to 240 MMSCFD.

4.04  TGC shall operate and maintain its overpressure protection devices and
shall inspect and test the overpressure protection devices on an annual basis to
establish that such is properly operated in accordance with DOT Title 49 CFR
Part 192 regulations. The overpressure protection devices shall be set at a
pressure not to exceed 892 psig, which equals 104% LSPE's pipeline MAOP.

4.05  Remote operation of TGC's control valves shall be controlled by TGC Gas
Control in Houston.

4.06  TGC or its designee, at its expense, shall be solely responsible for
upkeep and maintenance of the Interconnecting Facilities, including the exterior
of the M&R and Connecting Piping subject hereto including but not limited to
painting and rust protection relevant to same as well as upkeep of the grounds
surrounding same. Such grounds upkeep responsibilities shall include but not be
limited to painting, fencing, vehicular access road repair and maintenance and
mowing.

4.07  LSPE shall operate and maintain or cause to be operated and maintained the
LSPE Tap Facilities, as determined necessary in its discretion, pursuant to its
agreements with the Potential Shippers and in accordance with prudent natural
gas pipeline industry practice; provided that, in no event shall LSPE have any
obligation or liability to TGC with respect to such operation and maintenance.

4.08  All gas delivered by TGC to LSPE at the Interconnection Facilities shall
conform to the specifications set forth in the General Terms and Conditions of
TGC's FERC Gas Tariff.

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4.09  TGC shall deliver gas at the Interconnection Facilities at TGC's
prevailing line pressure; provided, however, that consistent with the notice
provided by LSPE Gas Control, TGC shall control the line pressure or volume of
its deliveries through the Interconnection as necessary to permit gas to enter
the LSPE Pipeline from TGC concurrently with any gas being delivered at such
time from any other pipeline source.

4.10  The reading, testing, calibrating, and/or adjusting of the TGC EGM or any
custody transfer measurement facilities shall be performed and paid for by TGC.
Testing and calibrating of the measurement facilities and any adjustments for
inaccuracies related thereto, shall be performed in accordance with TGC's Tariff
and with TGC's applicable measurement standards.

4.11  TGC shall provide LSPE with reasonable advance notice of the reading,
testing, calibrating, inspection, repair, changing and/or adjusting of the TGC
EGM or any custody transfer measurement facilities. LSPE may have
representatives and/or designees present during the time that such work is being
performed. TGC shall also provide LSPE with reasonable advance written notice of
all scheduled maintenance or repair work on such facilities. For any maintenance
or repair work which could reasonably result in interruption or curtailment of
gas deliveries to the affected Potential Shipper at the point of connection
between the Interconnecting Facilities and the LSPE Tap Facilities., TGC shall
use commercially reasonable efforts to perform such work during the maintenance
outages of LSPE's Power Plant or such other times as are agreeable to LSPE, and
TGC shall use commercially reasonable efforts to complete such work in the
shortest time practicable.

                                   ARTICLE V
                                  NOTIFICATION
                                  ------------

5.01  All notices and other communications between the Parties, unless otherwise
specifically provided, shall be in writing and deemed to have been duly given
when delivered in person, by national courier or by the United States Postal
Service, addressed as follows:

If to LSPE:

            Attn: Plant Manager, Batesville Generation Facility
            LSP Energy Limited Partnership
            200 Industrial Drive
            P.O. Box 1168
            Batesville, MS 38606
            Phone (662) 563-1330

With copy to:

            Attn: Batesville Project Manager
            LSP Energy Limited Partnership
            c/o LS Power, LLC Two Tower Center, 20th Floor
            East Brunswick, NJ 08816
            Phone (732) 249-6750
            Fax (732) 249-7290

If to TGC:

      FOR PAYMENTS:  As instructed on the invoice.

                                       4
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      FOR ALL OTHER COMMUNICATIONS:

      1.    Prior to facilities being placed in service:

            Keith Teague
            Trunkline Gas Company
            5444 Westheimer, Room WT 462
            Houston, Texas 77056
            (713) 989-7451
            (713) 989-1126 (Fax)

      2.    After facilities are placed in service:

            Technical Operations Superintendent
            Trunkline Gas Company
            8100 Big Lake Road
            Lake Charles, Louisiana  70605
            (318) 478-4202
            (318) 475-4239 (Fax)

or to such other address as either Party from time to time may designate for
itself.

                                   ARTICLE VI
                                  LIABILITIES
                                  -----------

6.01  (A) EXCEPT AS OTHERWISE SET FORTH IN THIS AGREEMENT, LSPE SHALL INDEMNIFY
AND HOLD HARMLESS THE TGC INDEMNIFIED PARTIES (AS HEREINAFTER DEFINED) FROM AND
AGAINST THE CLAIMS AND ACTIONS (AS HEREINAFTER DEFINED), AND UPON DEMAND BY TGC
SHALL PROTECT AND DEFEND THE TGC INDEMNIFIED PARTIES FROM SUCH CLAIMS AND
ACTIONS, ASSERTED OR SUFFERED BY OR ARISING IN FAVOR OF ANY THIRD PARTY,
INCLUDING, WITHOUT LIMITATION, LSPE'S CONTRACTORS OR SUBCONTRACTORS OF EVERY
TIER, THE OFFICERS, DIRECTORS, EMPLOYEES, AGENTS, REPRESENTATIVES AND INVITEES
OF LSPE OR LSPE'S CONTRACTORS OR SUBCONTRACTORS OF EVERY TIER, ONE OR MORE OF
THE TGC INDEMNIFIED PARTIES OR ANY THIRD PARTIES, AND SHALL PAY ANY AND ALL
JUDGMENTS OR REASONABLE SETTLEMENTS OF ANY KIND OR NATURE (TO INCLUDE INTEREST)
AS WELL AS COURT COSTS, REASONABLE ATTORNEYS' FEES AND EXPENSES, AND ANY
REASONABLE EXPENSES INCURRED IN ENFORCING THIS INDEMNITY PROVISION, INCURRED BY,
IMPOSED UPON OR RENDERED AGAINST ONE OR MORE OF THE TGC INDEMNIFIED PARTIES ON
ACCOUNT OF ANY CAUSE OR CAUSES IN CONNECTION WITH INJURIES (INCLUDING DEATH) TO
ANY PERSON OR DAMAGE TO OR DESTRUCTION OF ANY PROPERTY OR ANY CLAIM UNDER ANY
LAW PRETAINING TO THE PROTECTION OF HEALTH, SAFETY OR THE ENVIRONMENT, TO THE
EXTENT SUSTAINED AS THE RESULT OF THE ACTIVITIES OR OMISSIONS OF LSPE IN
CONNECTION WITH THIS AGREEMENT, WHETHER BEFORE OR AFTER COMPLETION OF SUCH
ACTIVITIES, WHETHER BASED ON CONTRACT, ON TORT, OR PURSUANT TO ANY STATUTE, RULE
OR REGULATION, AND REGARDLESS OF WHETHER THE CLAIMS AND ACTIONS ARE FORESEEABLE
OR UNFORESEEABLE OR ARE FOUNDED IN WHOLE OR IN PART UPON THE JOINT, CONCURRENT,
CONTRIBUTORY OR COMPARATIVE NEGLIGENCE OF ONE OR MORE OF THE TGC INDEMNIFIED
PARTIES.

6.01  (B) EXCEPT AS OTHERWISE SET FORTH IN THIS AGREEMENT, TGC SHALL INDEMNIFY
AND HOLD HARMLESS THE LSPE INDEMNIFIED PARTIES (AS HEREINAFTER DEFINED) FROM AND
AGAINST THE CLAIMS AND ACTIONS (AS HEREINAFTER DEFINED), AND UPON DEMAND BY LSPE
SHALL PROTECT AND DEFEND THE LSPE INDEMNIFIED PARTIES FROM SUCH

                                       5
<PAGE>

CLAIMS AND ACTIONS, ASSERTED OR SUFFERED BY OR ARISING IN FAVOR OF ANY THIRD
PARTY, INCLUDING, WITHOUT LIMITATION, TGC'S CONTRACTORS OR SUBCONTRACTORS OF
EVERY TIER, THE OFFICERS, DIRECTORS, EMPLOYEES, AGENTS, REPRESENTATIVES AND
INVITEES OF TGC OR TGC'S CONTRACTORS OR SUBCONTRACTORS OF EVERY TIER, ONE OR
MORE OF THE LSPE INDEMNIFIED PARTIES OR ANY THIRD PARTIES, AND SHALL PAY ANY AND
ALL JUDGMENTS OR REASONABLE SETTLEMENTS OF ANY KIND OR NATURE (TO INCLUDE
INTEREST) AS WELL AS COURT COSTS, REASONABLE ATTORNEYS' FEES AND EXPENSES, AND
ANY REASONABLE EXPENSES INCURRED IN ENFORCING THIS INDEMNITY PROVISION, INCURRED
BY, IMPOSED UPON OR RENDERED AGAINST ONE OR MORE OF THE LSPE INDEMNIFIED PARTIES
ON ACCOUNT OF ANY CAUSE OR CAUSES WHATSOEVER IN CONNECTION WITH INJURIES
(INCLUDING DEATH) TO ANY PERSON OR DAMAGE TO OR DESTRUCTION OF ANY PROPERTY OR
ANY CLAIM UNDER ANY LAW PRETAINING TO THE PROTECTION OF HEALTH, SAFETY OR THE
ENVIRONMENT, TO THE EXTENT SUSTAINED AS THE RESULT OF THE ACTIVITIES OR
OMISSIONS OF TGC IN CONNECTION WITH THIS AGREEMENT, BEFORE OR AFTER COMPLETION
OF SUCH ACTIVITIES, WHETHER BASED ON CONTRACT, ON TORT, OR PURSUANT TO ANY
STATUTE, RULE OR REGULATION, AND REGARDLESS OF WHETHER THE CLAIMS AND ACTIONS
ARE FORESEEABLE OR UNFORESEEABLE OR ARE FOUNDED IN WHOLE OR IN PART UPON THE
JOINT, CONCURRENT, CONTRIBUTORY OR COMPARATIVE NEGLIGENCE OF ONE OR MORE OF THE
LSPE INDEMNIFIED PARTIES.

6.02  As used herein the following terms shall have the following meanings:

      a.    "CLAIMS AND ACTIONS" shall mean any and all direct or indirect
            claims, demands, actions, causes of action, suits, right of recovery
            for any relief or damages, debts, accounts, damages, costs, losses,
            liabilities and expenses (including, without limitation, interest,
            court costs, reasonable attorneys' fees and expenses, and other
            reasonable costs of defense), of any kind or nature including, but
            not limited to, the Comprehensive Environmental Response,
            Compensation and Liability Act of 1980, as amended, the Resource
            Conservation and Recovery Act of 1976, as amended, the Toxic
            Substances Control Act, and federal and state equivalents.

      b.    "TGC INDEMNIFIED PARTIES" shall mean TGC, TGC's affiliates, and the
            officers, directors, employees, agents and representatives of each
            of such parties.

      c.    "LSPE INDEMNIFIED PARTIES" shall mean LSPE, LSPE's affiliates, and
            the officers, directors, employees, agents and representatives of
            each of such parties.

6.03  In the event that any statute or rule of law should be held applicable to
any indemnity clause in favor of one or more of the TGC Indemnified Parties or
the LSPE Indemnified Parties which would render void, voidable, or unenforceable
any such indemnity clause as to any party by reason of any provisions contained
therein, then and in only such event, such indemnity clause shall be deemed
modified and read, construed and enforced as to such party with respect to the
provisions held to violate the statute or rule of law to require indemnity by
the indemnifying party to the fullest extent required by such indemnity
provision modified and limited only to the degree or extent necessary to bring
such indemnity into compliance with such statute or rule of law, but otherwise,
the indemnity shall remain in full force and effect and binding upon the parties
hereto.

6.04  THE PARTIES HERETO AGREE THAT NEITHER PARTY SHALL BE LIABLE FOR ANY
SPECIAL, INDIRECT, INCIDENTAL, EXEMPLARY, PUNITIVE OR CONSEQUENTIAL DAMAGES
ARISING OUT OF OR IN ANY MANNER RELATED TO THIS AGREEMENT.

6.05  Each Party acknowledges and agrees that in no event shall any partner,
shareholder, owner, officer, director, employee, or affiliate of either Party be
personally liable to the other Party for any payments, obligations, or
performance under this Agreement, or any breach or failure of performance of
either Party. The sole recourse for payment or performance of the obligations
hereunder shall be against a Party and not against any other Person.

                                       6
<PAGE>

                                  ARTICLE VII
                                  ASSIGNMENTS
                                  -----------

7.01  Any person who succeeds by purchase, merger, or consolidation to all, or
substantially all, of the properties of either TGC or LSPE shall be entitled to
the rights and shall be subject to the obligations of its predecessor in title
under this Agreement. This Agreement shall be binding and will inure to the
benefit of the successors, nominees and assignees of the Parties. No assignment
of this Agreement, or any right or obligation hereunder, shall be made without
the prior written notice to, and consent of, the other Party (which shall not be
unreasonably withheld), except that any Party shall have the right to assign
this Agreement to any financially responsible affiliate (with equal or higher
credit rating) without the prior written consent of the other Party and no prior
consent is required if the assignment is carried out pursuant to Paragraph 7.03
or Paragraph 7.04 below.

7.02  Nothing contained herein shall prevent or restrict either Party from
pledging, granting a security interest in, or assigning as collateral all or any
portion of such Party's interest in this Agreement to secure any debt or
obligation of such Party under any mortgage, deed, trust, security or similar
instrument. TGC shall cooperate with LSPE in delivering the necessary consent to
assignment and other documentation reasonably required by lenders in connection
with any future LSPE financing.

7.03  Nothing contained herein shall prevent or restrict LSPE from assigning all
or any portion of its interest in this Agreement to the County Entity in
connection with its financing of infrastructure related to LSPE's Power Plant;
provided however, that any such assignment shall relieve LSPE of its obligations
and liabilities under this Agreement only to the extent such obligations and
liabilities are assumed and accepted by such entity.

                                  ARTICLE VIII
                                      TERM
                                      ----

8.01  This Agreement shall become effective upon acceptance hereof by TGC and
LSPE and shall remain in effect unless terminated as provided below.

8.02  Upon the cessation of the transportation of gas through the
Interconnection Facilities for a period of twelve consecutive months, either
party may terminate this Agreement upon thirty days prior written notice to the
other. In the event of such termination, either party, at it own expense, may
disconnect it's facilities from the facilities of the other party in accordance
with prudent natural gas industry practice.

                                   ARTICLE IX
                                     AUDITS
                                     ------

9.01  LSPE reserves the right to audit data used to perform volume, BTU, and
dekatherm calculations. TGC agrees to provide such requested data.

                                   ARTICLE X
                                 MISCELLANEOUS
                                 -------------

10.01 TGC makes no representation, warranty or guarantee, express or implied,
by this Agreement that it will deliver natural gas at this proposed point of
Interconnection. This Agreement is not an agreement to transport natural gas.
This Agreement shall in no way require LSPE to accept gas from TGC.

10.02 Each Party shall promptly notify the other of any action, circumstance,
condition, or reasonably likely potential occurrence that would reasonably be
expected to have a material effect on the ability of such Party to perform its
intended obligations under this Agreement.

                                       7
<PAGE>

10.03 Except in connection with such maintenance as required or permitted under
this Agreement, no Party shall remove any facilities or equipment constructed
pursuant to this Agreement until all transportation services through the
facilities have ceased. Six (6) months' written notice of any Party's intent to
remove facilities must be given to the other prior to removal of any facilities.
Notwithstanding the foregoing LSPE shall have the right to interrupt or
terminate the use of the LSPE Tap Facilities or the LSPE Pipeline in accordance
with its agreements with the Potential Shippers and shall have no obligation or
liability to TGC with respect to such interruption or termination.

10.04 THIS AGREEMENT SHALL BE GOVERNED BY AND INTERPRETED IN ACCORDANCE WITH
THE LAWS OF THE STATE OF MISSISSIPPI, EXCEPT FOR THE CONFLICT OF LAWS PROVISIONS
THEREOF WHICH WOULD REFER A PARTY TO THE LAWS OF ANOTHER JURISDICTION.

10.05 This Agreement is expressly made subject to all statutes and/or
regulations of any governmental body having jurisdiction.

10.06 Transportation services rendered by TGC will initially be performed
pursuant to a transportation agreement entered into with the affected Potential
Shipper under the TGC open-access transportation blanket certificate or any
successor thereto and shall be subject to the applicable provisions of the TGC
transportation tariff.

10.07 TGC shall, as to those facilities which it is to install hereunder,
utilize reasonable efforts to install same in a prompt manner. It is, however,
recognized and stipulated that limitations as to availability of personnel
and/or materials, and the ability to obtain or acquire or any delays in
obtaining or acquiring any necessary permits or other authorizations and/or
easements, may cause delays in the installation of such facilities.

10.08 LSPE represents and warrants to TGC that LSPE has all requisite power and
authority to permit the Interconnection contemplated by this agreement.

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

TRUNKLINE GAS COMPANY

By: /s/ Jeryl Mohn
   --------------------------------
Title: Vice President
      -----------------------------

LSP ENERGY LIMITED PARTNERSHIP

By:  LSP Energy, Inc.,
     its general partner

By: /s/ Clarence J. Heller
   --------------------------------
Name:  Clarence J. Heller
Title: Executive Vice President

                                       8

<PAGE>

                                 [LETTERHEAD]

                                                               September 1, 1999

Mr. Michael P. Witzing
Vice President
LSP Energy Limited Partnership
C/o LS Power, LLC
Two Tower Center, 10th Floor
East Brunswick, New Jersey 08816

                                                                     Page 1 of 1
Re:  Facilities Modification Agreement
     Tap Facilities
     Panola County, Mississippi

Dear Mr. Witzing:

Trunkline Gas Company ("TGC") and LSP Energy Limited Partnership ("LSPE")
have agreed to undertake the modifications contemplated herein to the LSPE
24-inch pipeline traversing Panola County, Mississippi ("LSPE Pipeline").

Accordingly, LSPE and TGC hereby agree to the following:

1.  The term "Tap Facilities" shall mean the 24"x24"x16" tee, 16-inch valve
    and related flanges and piping to be installed at approximate survey
    station 110+00 on the LSPE Pipeline, located in Section 1, T8S R9W,
    Panola County, Mississippi. Such Tap Facilities are more fully described
    and defined in "Exhibit A", attached hereto and made a part hereof for
    all purposes.

2.  Subject to the execution and delivery of the agreement referenced in
    paragraph 3, LSPE agrees to cause the Tap Facilities to be designed and
    installed on the LSPE Pipeline. All designs will be in accordance with
    DOT Title 49 CFR Part 192, and applicable federal, state, and local
    safety regulations and in accordance with sound and prudent natural gas
    pipeline industry practices. LSPE shall prepare and file any necessary
    governmental filings and exhibits, and make any required governmental
    reports, in regard to its construction or operation of the Tap
    Facilities. Additionally, LSPE shall secure all required clearances,
    permits and easements in regard to the Tap Facilities. TGC shall fully
    support any filings and all clearance and permit applications related to
    the Tap Facilities. LSPE may assign all or part of its rights and
    obligations under this agreement.

3.  In accordance with the terms and conditions of a separate agreement
    between TGC and Universal Ensco, Inc. ("Universal"), TGC shall reimburse
    Universal for 100% of the actual costs and expenses that are incurred to
    install and/or arrange for the installation of the Tap Facilities,
    including any costs to acquire easements, clearances and permits.

4.  LSPE shall own the Tap Facilities. Nothing contained within this
    Agreement shall be deemed to allow, or create any obligation on the part
    of LSPE to permit, TGC to interconnect to the Tap Facilities. Any such
    right to interconnect will require a separate interconnection agreement.
    LSPE shall enter into good faith negotiations with TGC for the purpose of
    establishing such a separate interconnection agreement.

If you are in agreement with the terms of this Agreement, please indicate by
signing in the space provided below and return the originals to TGC for
execution. A fully executed copy will be returned for your files.

Sincerely,

[SIGNATURE]

R.K. Teague

AGREED AND ACCEPTED                    AGREED AND ACCEPTED
this 1st day of September, 1999        this 3rd day of September, 1999

LSP Energy Limited Partnership         TRUNKLINE GAS COMPANY

BY: Michael P. Witzing                 BY: Jeryl Mohn
    -----------------------------          -------------------------------
TITLE: Vice President                  TITLE: Vice President
       --------------------------             ----------------------------

<PAGE>

                                                                       EXHIBIT A

                                [GRAPH TO COME]

<PAGE>

                                                                       EXHIBIT B

                                [GRAPH TO COME]

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