Document:

<PAGE>   1

                                                                    Exhibit 10.2

CERTAIN PORTIONS OF THIS AGREEMENT HAVE BEEN OMITTED PURSUANT TO A REQUEST FOR
CONFIDENTIAL TREATMENT. THE OMITTED PORTIONS, WHICH ARE IDENTIFIED BY THE SYMBOL
"XXXX", HAVE BEEN FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION.

                         SUPPLEMENT GENERATION AGREEMENT

         This Supplemental Generation Agreement (the "Agreement") is entered
into this 21 day of December, 2000 (the "Effective Date") by and between GENEVA
STEEL COMPANY, a Utah corporation ("Geneva"), and Utah Power & Light Company, an
assumed business name of PACIFICORP, an Oregon corporation ("Utah Power").
Geneva and Utah Power will sometimes be referred to individually as Party and
collectively as Parties.

                                    RECITALS

         A. On February 10, 1989, Utah Power and Geneva entered into an
agreement (the "1989 Agreement"), as amended, by which Utah Power supplies
interruptible power and energy to Geneva's steel production facility in Lindon,
Utah.

         B. On July 1, 1997, Utah Power and Geneva entered into the Generation
Cooperation Agreement (the "Cooperation Agreement") by which Utah Power may call
on Geneva to increase the output of its steam electric generating plant (the
"Generating Plant") at its steel production facility up to 1,314 hour per
contract year as an offset to Geneva's demand for electric service under the
1989 Agreement.

         C. Utah Power now desires to call on Geneva to operate the Generating
Plant for the purpose of selling a portion of its output to Utah Power, in
addition to that portion of the output that is dedicated to offsetting Geneva's
demand for electric service in accordance with the Cooperation Agreement.

         D. Geneva is willing to operate the Generating Plant and sell a portion
of its output to Utah Power on the terms stated herein.

         NOW, THEREFORE, in consideration of the mutual promises contained
herein, the Parties agree as follows:
<PAGE>   2
1.       DEFINITIONS.

         1.1 "Baseline Generation Capability" means 38.6 MWh per hour.

         1.2 "Contract Purchase Cost" means the following amounts during the
following time periods:

                           TIME PERIOD                $/MWh

                        Through 6/30/2001            23.595
                      7/1/2001 - 6/30/2002           24.303
                      7/1/2002 - 12/31/2002          25.032

         1.3 "On-Peak Hours" means all hours from 7 AM - 11 PM Prevailing
Mountain Time, Monday through Saturday excluding the following WSCC holidays:
New Year's Day, Memorial Day, Independence Day, Labor Day, Thanksgiving Day and
Christmas Day.

         1.4 "Off-Peak Hours" means all hours that are not included in On-Peak
Hours excluding all hours on Sundays and the following WSCC holidays: New Year's
Day, Memorial Day, Independence Day, Labor Day, Thanksgiving Day and Christmas
Day.

         1.5 "Sundays and WSCC Holiday Hours" means all hours on Sundays and the
following holidays: New Year's Day, Memorial Day, Independence Day, Labor Day,
Thanksgiving Day and Christmas Day.

         1.6 "Maximum Dependable Continuous Rating" means 47.0 MWh per hour.

         1.7 "Point of Delivery" means that point of interconnection between
Utah Power's electrical facilities and the electrical facilities owned by
Geneva.

         1.8 "Supplemental Generation Capability" means the amount of generation
capacity available from the Geneva Plant greater than the Baseline Generation
Capability.

         1.9 "Supplemental Generation" means the hourly generation amounts
provided by the Generating Plant separate from Utah Power's right to call on
Geneva to offset its power purchases in accordance with the Cooperation
Agreement. Provided, however, that the Supplemental Generation scheduled by and
delivered to Utah Power shall not exceed the following cumulative number of
hours for the indicated periods:

                                        2
<PAGE>   3
                         TIME PERIOD                HOURS

                       Through 8/31/01              4,880
                      9/1/01 - 8/31/02              6,500
                      9/1/02 - 12/31/02             2,155

2.       TERM.

         This Agreement shall commence on the Effective Date and shall terminate
on December 31, 2002 unless extended by written agreement of the Parties or
unless earlier terminated in accordance with the terms this Agreement. Either
party can cancel this Agreement with 45 days written notice.

3.       SUPPLEMENTAL GENERATION.

         3.1 Right to Call. Utah Power shall have the right, at its option and
at any time during the term of this Agreement, to call on Geneva to supply
Supplemental Generation to Utah Power at the Point of Delivery.

         3.2 Ability to Provide. Geneva shall use reasonable commercial efforts
to operate and maintain the Geneva Plant, at its sole expense, in such a manner
that Geneva is ready at all times during the term of this Agreement to provide
Supplemental Generation. Geneva shall not be liable for its inability or failure
to provide Supplemental Generation.

         3.3 Scheduling. Geneva shall notify Utah Power's Dispatch Center prior
to 1000 hours Prevailing Mountain Time on the last mutually recognized work day
prior to the following week (normally Friday) of the days and hours that Geneva
expects the Supplemental Generation will not be available during the following
Saturday through Friday period. No later that 1300 hours on the date that Utah
Power timely receives the foregoing information from Geneva, Utah Power shall
pre-schedule the day(s) during the upcoming week that Geneva shall provide
Supplemental Generation. Utah Power shall provide a schedule for On-Peak,
Off-Peak and Sundays/WSCC Holidays and shall indicate when it is calling for
Supplemental Generation Capability under this Agreement and when it is calling
for offsets under the Cooperation Agreement. For the current contract year under
the Cooperation Agreement, Utah Power shall call for offsets to the Cooperation
Agreement during the months of May, June, July, and August, 2000; provided,
however, that Utah Power may carry forward into the next Contract Year any such
summer hours that Geneva is unable to provide such generation when called upon
due to outages of its generator.

         3.4 Revised Schedule. Utah Power shall have the right, upon at least 8
hours notice, to revise the amounts pre-scheduled by Utah Power under Section
3.3 and such revised schedule shall supercede the pre-schedule.

                                        3
<PAGE>   4
4.       BILLING AND PAYMENT.

         4.1 For Supplemental Generation during each hour scheduled by Utah
Power and subsequently provided by Geneva, and when the generated amount is
greater than the Maximum Dependable Continuous Rating, Utah Power shall pay
Geneva XXXX% of the Dow Jones Palo Verde Firm ("Index") plus 50% of the
generation cost of $28/MWh less the Contract Purchase Price multiplied by the
difference between the generated amount for that hour and the Baseline
Generation Capability. The Dow Jones Palo Verde On-Peak Firm Index shall be used
for Supplemental Generation provided during On-Peak Hours. The Dow Jones Palo
Verde Off- Peak Firm Index shall be used for Supplemental Generation provided
during Off-Peak Hours. The Dow Jones Palo Verde Sunday/WSCC Firm Index shall be
used for Supplemental Generation provided during Sundays/WSCC holidays. For
purposes of calculating payments to Geneva under this Agreement, the applicable
index shall never be less that $32/Mwh. Utah Power will not pay for any hourly
generation that is below the Maximum Dependable Continuous Rating or that is not
scheduled by Utah Power. The Baseline Generation Capability, the Maximum
Dependable Continuous Rating and/or the generation cost specified in this
Agreement may be modified to accommodate changed circumstances for specified
periods of time, upon agreement of both parties. Any such modifications shall
not be enforceable without written confirmation (by facsimile or otherwise) from
Utah Power confirming any agreed-upon modifications and the periods during which
the same shall apply. The amount Utah Power will pay Geneva for Supplemental
Generation is summarized as follows:

               TIME PERIOD                    $/MWh CREDIT ON
                                                GENEVA BILL
            Through 6/30/2001               XXXX*Index - 9.595
          7/1/2001 - 6/30/2002              XXXX*Index - 10.303
          7/1/2002 - 12/31/2002             XXXX*Index - 11.032

         Example 1: Generation Meter on March 31, 2001 reflects 50 MWh generated
during hour 1000 and the Index Price is $105/MWh. Supplemental Generation to be
credited would be 11.4 MWh (50 MWh - 38.6 MWh = 11.4 MWh). Utah Power would pay
Geneva $XXXX/MWh [XXXX * $105/MWh +0.5 * $28/MWh -$23.595/MWh = $XXXX/MWh -
$9.595/MWh =$XXXX/MWh] or $XXXX (11.4 MW * $XXXX) for this hour.

         Example 2: Generation Meter reflects 42 MW generated during hour 1000.
No Supplemental Generation would be credited for this hour since the generated
amount was less than 47 MW.

         4.2 Billing. If Utah Power calls on Geneva to deliver Supplemental
Generation under Section 3, then Geneva shall receive a credit on its monthly
electric usage bill per the terms identified in this Section for all
Supplemental Generation energy provided. All hours in which Geneva provides
Supplemental Generation energy by this agreement shall be accounted for
separately from the 1,314 hours provided under the Cooperation Agreement.

                                        4
<PAGE>   5
5.       METERING.

         Utah Power's existing metering equipment, as Utah Power may modify such
equipment from time to time, shall be used to meter all Supplemental Generation
provided under this Agreement.

6.       MISCELLANEOUS.

         6.1 Amendment. Any amendment to this Agreement must be in writing and
signed by both parties.

         6.2 Governing Law. This Agreement shall be subject to and construed
under the laws of the State of Utah.

         6.3 Notices. Except as otherwise stated in Section 3, all notices
hereunder shall be directed as follows by fax, personal delivery or U.S.
registered or certified mail:

         To Geneva:                Craig Hartman
                                   Director of Energy
                                   P.O Box 2500, MS40
                                   Provo, UT 84603
                                   801-227-9198, Fax

         To Utah Power:            Aaron Gibson
                                   P.O. Box 728
                                   51 East Main Street
                                   American Fork, UT 84003
                                   801-756-1318, Fax

         6.4 Assignment. Neither party shall assign this Agreement without the
prior written consent of the other Party, which consent shall not be
unreasonably withheld. Provided, however, that no consent is required for an
assignment to any business entity: (i) into which or with which the assigning
Party is merged or consolidated or to which the assigning Party transfers
substantially all of its assets; or (ii) wholly owning, wholly owned by or
wholly owned in common with the assigning Party. This Agreement shall be binding
on the successors and permitted assigns of each party.

         6.5 Confidentiality. Each Party shall maintain the terms and conditions
of this Agreement in confidence and shall not disclose them to any third party
other than its advisors and consultants who likewise shall be bound by the same
terms and conditions of confidentiality except upon written consent of the other
Party or as required under operation of law, court order, governmental
regulation or pursuant to requirements of a Governmental agency.

                                        5
<PAGE>   6
         6.6 Waiver. Any waiver by a Party with respect to a default hereunder,
or any other matter arising in connection herewith, shall not be deemed to be a
waiver with respect to any subsequent default or matter.

         6.7 Indemnification. Each Party shall indemnify, defend and hold
harmless the other Party against any claims, demands, or suits brought by, or
losses, or damages incurred with respect to any third party to the extent caused
by any act or omission of the indemnifying Party in violation of this Agreement.

         6.8 Limitations of Liability. Neither Party shall be liable to the
other for any indirect, special, incidental or consequential damages in
connection with this Agreement.

         6.9 Authority. Each party represents that it has full authority to
enter into this Agreement and that no further approvals of any kind are
necessary.

         6.10 Other Agreements. This Agreement is intended to be consistent with
the terms of the Cooperation Agreement and the 1989 Agreement.

UTAH POWER                              GENEVA STEEL COMPANY

By: /s/ Andy MacRitchie                 By: /s/ Timothy R. Clark

------------------------------          ------------------------------

Its: SVP Power Delivery                 Its: VP - Operations, Customer Service

Date signed: December 21, 2000          Date signed: December 18, 2000

                                        6<PAGE>   1

                                                                    Exhibit 10.3

CERTAIN PORTIONS OF THIS AGREEMENT HAVE BEEN OMITTED PURSUANT TO A REQUEST FOR
CONFIDENTIAL TREATMENT. THE OMITTED PORTIONS, WHICH ARE IDENTIFIED BY THE SYMBOL
"XXXX", HAVE BEEN FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION.

                               AMENDMENT NO. 1 TO
                         SUPPLEMENT GENERATION AGREEMENT

         This Amendment No. 1 ("Amendment") to the Supplemental Generation
Agreement ("Supplemental Generation Agreement") dated December 21, 2000, is made
and entered into effective the 1st day of June, 2001 (the "Effective Date") by
and between GENEVA STEEL L.L.C., a Delaware limited liability company
("Geneva"), the successor in interest to Geneva Steel Company, and Utah Power &
Light Company, an assumed business name of PACIFICORP, an Oregon corporation
("Utah Power").

                                    RECITALS

A.       On February 10, 1989, Utah Power and Geneva entered into an agreement
         ("the 1989 Agreement"), as amended, by which Utah Power supplies
         interruptible power and energy to Geneva's steel production facility in
         Vineyard, Utah.

B.       On July 1, 1997, Utah Power and Geneva entered into the Generation
         Cooperation Agreement (the "Cooperation Agreement") by which Utah Power
         may call on Geneva to increase the output of its steam electric
         generating plant (the "Generating Plant") at its steel production
         facility up to 1,314 hour per contract year as an offset to Geneva's
         demand for electric service under the 1989 Agreement.

C.       On December 21, 2000, Geneva and Utah Power entered into the
         Supplemental Generation Agreement pursuant to which Utah Power agreed
         to compensate Geneva for certain Supplemental Generation that Geneva
         offered to generate.

D.       On June 8, 2001, Geneva and Utah Power entered into a Load Curtailment
         Agreement ("Load Curtailment Agreement") pursuant to which Geneva
         agreed to curtail load and Utah Power agreed to compensate Geneva for
         such curtailment during certain peak hours.

E.       The parties now desire to amend the Supplemental Generation Agreement
         to require Geneva to use reasonable commercial efforts to generate, and
         to require Utah Power to purchase Supplemental Generation made
         available by Geneva, outside of the peak hours covered by the Load
         Curtailment Agreement.
<PAGE>   2
NOW, THEREFORE, in consideration of the mutual promises contained herein, the
Parties agree as follows:

1.       Section 1.1 of the Supplemental Generation Agreement is amended and
         replaced in its entirety to read as follows:

         1.1      "Baseline Generation Capability" means 25.2 MWh per hour when
                  operating one blast furnace and 38.6 MWh per hour when
                  operating two (2) blast furnaces.

2.       Sections 1.2 and 1.6 of the Supplemental Generation Agreement are
         deleted in their entireties.

3.       Section 1.9 of the Supplemental Generation Agreement is amended and
         replaced in its entirety to read as follows:

         1.9      "Supplemental Generation" means the hourly generation amounts
                  provided by the Generating Plant during hours other than Load
                  Curtailment Periods covered by the Curtailment Agreement, and
                  other than amounts called upon by Utah Power to offset
                  Geneva's power purchases in accordance with the Cooperation
                  Agreement. The maximum hourly amount that PacifiCorp may call
                  upon under the Cooperation Agreement is 10 MWh per hour.

4.       Section 2 of the Supplemental Generation Agreement is amended and
         replaced in its entirety to read as follows:

         2.       Term.

                  The term of this Agreement shall be coterminous with the term
                  of the Load Curtailment Agreement.

5.       Section 3.1 of the Supplemental Generation Agreement is amended and
         replaced in its entirety to read as follows:

         3.1      Payment for Supplemental Generation. During the term of this
                  Agreement, Utah Power shall pay Geneva for the value of all
                  Supplemental Generation provided by Geneva at the Delivery
                  Point.

6.       Section 3.3 of the Supplemental Generation Agreement is amended and
         replaced in its entirety to read as follows:

         3.3      Scheduling. Geneva shall notify Utah Power's Dispatch Center
                  prior to 1000 hours Prevailing Mountain Time on the last
                  mutually recognized work day prior to the following week
                  (normally Friday) of the days and hours that Geneva expects
                  that Supplemental Generation will not be

                                        2
<PAGE>   3
                  available during the following Saturday through Friday period.
                  No later that 1300 hours on the date that Utah Power timely
                  receives the foregoing information from Geneva, Utah Power
                  shall pre-schedule the day(s) during the upcoming week that
                  Geneva has offered to provide Supplemental Generation. Utah
                  Power shall provide a schedule for both High Load Hours and
                  Low Load Hours and shall indicate when it is calling for
                  Supplemental Generation Capability under this Agreement and
                  when it is calling for offsets under the Cooperation
                  Agreement.

7.       Section 3.4 is deleted in its entirety

8.       Section 4.1 of the Supplemental Generation Agreement is amended and
         replaced in its entirety to read as follows:

         4.1      For Supplemental Generation provided by Geneva during On-Peak
                  Hours, Utah Power shall pay Geneva XXXX of the Dow Jones Palo
                  Verde Firm Index multiplied by the difference between the
                  generated amount for that hour and the Baseline Generation
                  Capability. For Supplemental Generation provided by Geneva
                  during Off-Peak Hours and Sundays and WSCC Holiday Hours, Utah
                  Power shall pay Geneva XXXX of the Dow Jones Palo Verde Firm
                  Index for the relevant period, multiplied by the difference
                  between the generated amount for that hour and the Baseline
                  Generation Capability. For purposes of calculating payments to
                  Geneva under this Agreement, the applicable index shall never
                  be less that $32/Mwh. The Baseline Generation Capability may
                  be modified to accommodate changed circumstances for specified
                  periods of time, upon agreement of both parties. Any such
                  modifications shall not be enforceable without written
                  confirmation (by facsimile or otherwise) from Utah Power
                  confirming any agreed-upon modifications and the periods
                  during which the same shall apply.

9.       Section 4.2 is revised to read as follows:

         4.2      Billing

                  PacifiCorp shall credit Geneva's invoice with amounts as
                  provided herein on a monthly basis. PacifiCorp shall be able
                  to offset any payments it owes Geneva hereunder with any
                  amounts Geneva owes PacifiCorp pursuant to the 1989 Agreement
                  or any other Geneva/PacifiCorp Agreements. If the credit
                  amount owed to Geneva exceeds the monthly payment due
                  PacifiCorp for power purchased by Geneva under the 1989
                  Agreement, PacifiCorp shall pay the net amount due Geneva
                  hereunder within seventeen days after the end of each billing
                  month. PacifiCorp shall electronically wire transfer its
                  monthly payment to an account designated by Geneva. All hours
                  in which Geneva provides Supplemental Generation

                                        3
<PAGE>   4
                  energy by this agreement shall be accounted for separately
                  from the 1,314 hours provided under the Cooperation Agreement.

10.      Other than as specifically modified herein, the Generation Agreement
         shall remain in full force and effect.

UTAH POWER                                  GENEVA STEEL L.L.C.

By: /s/ Andy MacRitchie                     By: /s/ Ken C. Johnsen

-----------------------------               -----------------------------

Its: Executive Vice President               Its: President

                                        4

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00027-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00027-of-00352.parquet"}]]