Document:

Exhibit 10.3.48

                                                            leg. 2.3.8.2.1.1.1.2

                PERFORMANCE AGREEMENT AND FOURTH AMENDMENT TO THE
             PURCHASE POWER CONTRACT DATED MARCH 24, 1986 AS AMENDED

          THIS PERFORMANCE AGREEMENT AND FOURTH AMENDMENT ("Performance
Agreement" or "Fourth Amendment") is made as of this 12th day of February 1996
("Execution Date"), by and between HAWAII ELECTRIC LIGHT COMPANY, INC. (the
"Company" or "HELCO"), and PUNA GEOTHERMAL VENTURE (the "Seller" or "PGV").

          WHEREAS, the Company is an operating electric public utility on the
Island of Hawaii subject to the Hawaii Public Utilities Law (Hawaii Revised
Statutes, Chapter 269) and the rules and regulations of the Hawaii Public
Utilities Commission (the "PUC" or "Commission");

          WHEREAS, the Company has entered into a Purchase Power Contract for
Unscheduled Energy Made Available From a Qualifying Facility (the "Unscheduled
Energy Contract") dated March 24, 1986, with Thermal Power Company ("Thermal
Power") which was approved by the PUC by Decision and Order No. 8692, dated
March 25, 1986, in Docket No. 5525;

          WHEREAS, Thermal Power assigned the Unscheduled Energy Contract to
AMOR VIII and AMOR VIII assigned the Unscheduled Energy Contract to PGV;

          WHEREAS, HELCO and PGV have entered into that certain Firm Capacity
Amendment to Purchase Power Contract, dated July 28, 1989 ("Firm Capacity
Amendment"), which amended the Unscheduled Energy Contract, and was approved by
the PUC by Decision and Order No. 10519, dated February 14, 1990, in Docket No.
6498;

          WHEREAS, by Amendment to Purchase Power Contract, As Amended ("Second
Amendment"), HELCO and PGV amended the Unscheduled Energy Contract and Firm
Capacity Amendment;

          WHEREAS, a number of issues arose between the Company and Seller which
they settled in a Settlement Agreement dated March 7, 1995 ("Settlement
Agreement");

          WHEREAS, as part of the Settlement Agreement, the Company and Seller
agreed to a third amendment ("Third Amendment") to the Unscheduled Energy
Contract, Firm Capacity Amendment, and the Second Amendment (the Unscheduled
Energy Contract as amended by the Firm Capacity Amendment, the Second Amendment,
and the Third Amendment and as may be amended from time to time, is referred to
as the "Amended PPC") (The Third Amendment was approved on an interim basis by
the PUC by Interim Decision and Order No. 13876, dated May 5, 1995, in Docket
No. 95-0074);

          WHEREAS, Seller presently provides to the Company, and the Company
presently purchases from Seller, twenty-five (25) megawatts ("MW") of firm
capacity from Seller's Facility pursuant to the Amended PPC;

          WHEREAS, the Seller desires to sell to the Company an additional five
(5) MW of firm capacity generated by the Facility above the twenty-five (25) MW
of firm capacity presently supplied, and the Company wishes to purchase such
Energy from the Seller, upon the terms and conditions set forth herein;

          WHEREAS, the Seller's Facility will continue to be throughout the term
of this Performance Agreement either (1) a qualifying, small power production
facility under Subchapter 2 of the PUC's Standards for Small Power Production
and Cogeneration in the State of Hawaii, Chapter 74 of Title 6 of the State's
Administrative Rules, or (2) a "non-fossil fuel producer" within the meaning of
Section 269-27.2, Hawaii Revised Statutes;

          NOW, THEREFORE, in consideration of the premises and the respective
promises herein, the Company and the Seller hereby agree as follows:

I.   THE PROJECT

     A.   Enhancement and Operation of Seller's Facility

          1. Seller agrees to provide the Company with five (5) megawatts of
firm capacity in addition to the twenty-five (25) megawatts of firm capacity
currently being provided pursuant to the Amended PPC (for a total of thirty
megawatts of firm capacity) and 18,600 kvar of reactive under this Agreement.
The reactive shall be in proportion to power in the range of 0.85 lagging to 1.0
unity power factor and shall be dispatched by the Company to keep the Seller's
generator within the limits of plus or minus 5% of the generator voltage.

          2. Attached as Exhibit A, is a description of the proposed
enhancements (the "Project") to Seller's Facility to enable Seller to provide an
additional five (5) MW of firm capacity (a total of thirty megawatts of firm
capacity) and 18,600 kvar of reactive. Seller's Facility as modified by the
Project is referred to hereinafter as "Seller's Facility".

          3. Seller shall be responsible for all costs associated in any way
with Seller's Facility and/or the Project.

          4. Seller shall be responsible for obtaining all permits, licenses,
approvals and any other requirements

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reasonably required for Seller to provide the additional five (5) megawatts of
firm capacity pursuant to this Performance Agreement.

          5. Within sixty (60) days of the Execution Date, a final (1) a
single-line diagram of Seller's Facility, (2) relay list, and (3) trip scheme,
all as may be modified by the Project, shall be prepared and, subject to the
review and acceptance thereof by both parties, signed and attached to Attachment
B To The Fourth Amendment as Exhibit 1 to Appendix B and made a part thereof.
Such single line diagram shall expressly identify the final location on the
Point of Interconnection.

          6. Within sixty (60) days of the Execution Date, the design and
specifications for protective equipment to protect HELCO's system, as may be
modified by the Project, shall be prepared and, subject to the review and
acceptance thereof by both parties, signed and attached to Amended PPC and made
a part thereof.

          7. Attached hereto as Exhibit B is a project schedule relating to the
Project.

          8. Prior to the Commercial Operation Date (as defined below) of the
Seller's Facility to produce the additional five (5) megawatts of firm capacity
(for a total of thirty (30) megawatts of firm capacity), Seller shall inform
HELCO on the third business day of every month of the status of the Seller's
Project as of the last day of the prior month, including but not limited to, any
revisions to the date of installation, the date of operation in parallel with
the Company's System, and the anticipated Commercial Operation Date (as defined
below) of the Seller's Facility for the additional five (5) megawatts of Firm
Capacity.

     B. Acceptance Tests. The Company shall conduct acceptance tests as part of
the determination of when Firm Capacity payments related to the additional five
(5) megawatts of firm capacity should begin.

          1. Upon completion and testing of Seller's Facility as modified by the
Project by Seller for the additional five (5) megawatts of firm capacity, Seller
shall give HELCO seven (7) days prior notice of the time and date when Seller
will be ready to begin the 100 continuous hours acceptance test for the
additional five (5) megawatts of firm capacity.

          2. Upon the agreed upon time and date, the Company shall conduct the
100 continuous hours acceptance test for the additional five (5) megawatts of
firm capacity ("Acceptance Test"). At a minimum, Seller must be able to deliver
to the

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Company 100% of the Seller's Firm Capacity Obligation (30,000 kw of capacity and
18,600 kvar of reactive) for 100 consecutive hours under Company's Dispatch (as
defined in Attachment E to the Fourth Amendment). The Acceptance Test may be
started and/or completed prior to the Effective Date (as defined below) of this
Performance Agreement.

          3. As the last step of the Acceptance Test, Seller shall ramp Seller's
Facility down to simulate a sudden loss of system load. Seller shall decrease
power output from thirty (30) megawatts to ten (10) megawatts at an average ramp
rate of one (1) megawatt per minute. Seller shall ramp Seller's Facility up in
power output to simulate an increase in demand on the Facility. Seller shall
increase power output from eighteen and one-half (18.5) megawatts to thirty (30)
megawatts at an average ramp rate of one (l) MW/minute. In addition, during the
Acceptance Test, the Seller shall demonstrate the ability to adjust kvars from
1,500 to 18,600.

          4. The Seller's performance throughout the Acceptance Test shall be
monitored remotely through the SCADA system and recorded. In addition, the
Seller shall also allow HELCO representatives to be stationed at Seller's
Facility to verify all data and ensure that all operational changes made at the
request of HELCO were done within the bounds of good engineering and operating
practices.

          5. Upon successful completion of the Acceptance Test, HELCO will
notify Seller in writing of the acceptance of the additional 5 MW of firm
capacity and Seller will immediately acknowledge in writing such acceptance by
HELCO. The date on which Seller's Facility is deemed to be capable of reliable
delivery of the additional five (5) megawatts of firm capacity pursuant to this
Performance Agreement after the successful completion of the Acceptance Test is
referred to herein as the "Commercial Operation Date".

II.  PROJECT COMPLETION

     A. Commercial Operation Date. The Commercial Operation Date shall occur
prior to or within six (6) months after the later of PUC Approval (as defined
below in Section IV.A) or Bank's Consent (as defined in Section IV.B. below).

     B. Penalties For Not Meeting Commercial Operation Date Deadline. If the
Commercial Operation Date for the additional five (5) megawatts does not occur
within nine (9) months of the later of the date of PUC Approval or Bank's
Consent (the "Commercial Operation Date Deadline"), then:

          1. Seller shall pay HELCO one cent ($0.01) per on-peak hour for each
kilowatt deficiency until Seller

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satisfies the Acceptance Test. Kilowatt deficiency is the difference in
kilowatts at any given time between the 5,000 kilowatts PGV is required to
produce hereunder and the actual amount produced by PGV pursuant to this
Performance Agreement.

          2. Seller shall pay to HELCO late charges in the amount of $1,380.00
per day for each day commencing on the Commercial Operation Date Deadline until
the Commercial Operation Date.

          3. Any penalties incurred under this Section II.B. shall cease to
accrue one year after the Commercial Operation Date Deadline.

III. INTERCONNECTION FACILITIES

     A. The parties believe that there are no additional interconnection
facilities required for HELCO's system to accept the additional five (5)
megawatts of Energy to be provided by Seller pursuant to this Performance
Agreement.

     B. If it is later determined that additional interconnection facilities are
needed, then Seller shall be responsible for cost and construction of all
interconnection facilities required to deliver the additional 5 MW of firm
capacity from Seller's Facility to the Company's System.

     C. Seller shall be responsible for one hundred percent (100%) of the
maintenance costs associated with any upgrade of existing interconnection
facilities.

IV.  APPROVALS REQUIRED PRIOR TO EFFECTIVE DATE

     A.   Public Utilities Commission Approval.

          1. The parties will use their best efforts, including without
limitation, participation in any PUC proceeding at the request of the other
party, to obtain an appropriate decision and order satisfactory to the Company
("PUC Approval") that approves this Agreement and authorizes the Company to
include payments made to the Seller hereunder in the Company's Energy Cost
Adjustment Clause pursuant to Rule 6-60-6, Standards For Electric and Gas
Utility Service, Title 6, Chapter 60, of the Hawaii Administrative Rules, and
in the Company's Firm Capacity Surcharge pursuant to Section 269-27.2(d), Hawaii
Revised Statutes, or in the Company's base rates pursuant to Section 269-16(b),
Hawaii Revised Statutes, whichever occurs first.

          2. The Company shall be responsible for submitting the application for
PUC Approval and for all of the Company's costs associated thereto. Seller shall
cooperate with the

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Company in any reasonable manner to assist the Company in the application for
PUC Approval and Seller shall be responsible for its costs in providing such
cooperation and assistance.

          3. Notwithstanding anything in this Performance Agreement to the
contrary, in the event that the Commission denies the Company's application to
include all payments to Seller hereunder in the Company's Energy Cost Adjustment
Clause pursuant to Rule 6-60-6, Standards For Electric and Gas Utility Service,
Title 6, Chapter 60, of the Hawaii Administrative Rules, and the Company's Firm
Capacity Surcharge pursuant to Section 269-27.2(d), Hawaii Revised Statutes, or
in the Company's base rates pursuant to Section 269-16(b), Hawaii Revised
Statutes, then this Fourth Amendment, at HELCO's option and in HELCO's sole
discretion, shall be null and void and of no further force and effect. HELCO
shall have thirty (30) days from the date the PUC decision and order denying the
Company's application becomes final and non-appealable to terminate this
Agreement pursuant to this Section IV.A.

     B.   Consent of Bank

          1. Seller, at its own expense, shall use its best efforts to obtain
from Credit Suisse, a bank organized and existing under the laws of Switzerland,
as Agent and Collateral Agent for the benefit of its own account and such other
financial institutions as may participate in the funding and other risks
associated with the Facility (the "Bank"), a Consent of the Bank to this Fourth
Amendment, related documents, and the transactions and obligations of Seller
herein, substantially in the form attached hereto as Exhibit C ("Bank's
Consent").

          2. Notwithstanding anything in this Performance Agreement to the
contrary, in the event that the Bank does not execute the Bank's Consent, then
this Fourth Amendment shall be null and void and of no further force and effect.

V.   EFFECTIVE DATE/CONDITIONS PRECEDENT

     A. Effective Date. The obligations of the parties under Section IV and
Section VI of this Performance Agreement shall become effective on the Execution
Date. The remaining provisions of this Performance Agreement (excluding Section
IV and Section VI) shall not become effective until the later of (1) the date of
obtaining PUC Approval, or (2) the date of obtaining the Bank's Consent (the
"Effective Date").

     B. Conditions Precedent. In addition to Section V.A., except for the
obligations of the parties under Section IV and Section VI of this Performance
Agreement, in no event shall the

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Company be obligated under this Performance Agreement until the fulfillment of
the following conditions:

          1. The Company obtains PUC Approval as specified in Section IV.A.
above;

          2. Seller shall obtain and deliver to HELCO Bank's Consent,
substantially in the form attached hereto as Exhibit C;

          3. Seller successfully completes to HELCO's satisfaction the
Acceptance Test described in Section I.B.;

          4. Seller fulfills all of its In-Kind Obligations (as defined in the
Settlement Agreement) under the Settlement Agreement; and

          5. Each party shall have delivered or cause to be delivered to the
other party, such documents which may be reasonably required pursuant to this
Performance Agreement.

     C. Term. This Performance Agreement shall remain in effect for the same
period of time as the Amended PPC, unless otherwise provided in this Performance
Agreement.

VI.  TERMINATION/DEFAULT

     A. This Performance Agreement will terminate:

          1. if the Bank's Consent is not received prior to June 1, 1996;

          2. at HELCO's option, to be exercised by written notice to Seller by
June 15, 1997, if PUC Approval satisfactory to HELCO is not received prior to
May 1, 1997;

          3. at HELCO's option, to be exercised by written notice to Seller,
pursuant to Section IV.A.3.;

          4. at the option of a non-defaulting party to be exercised by written
notice to the other party if the other party commits any Event of Default and
fails to cure such default in accordance with Sections VI.D. or VI.E. below; or

          5. upon the termination of the Amended PPC.

     B. The occurrence of any of the following events at anytime during this
Agreement shall constitute an "Event of Default" under this Performance
Agreement by the Company:

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          1. in the event of nonperformance by the Company of any material
obligation under this Performance Agreement;

          2. failure of the Company to pay any amounts due and payable under
this Performance Agreement within sixty (60) days after receipt of invoice;

          3. the Company shall (1) be dissolved, be adjudicated as bankrupt, or
become subject to an order for relief under any bankruptcy law; (2) fail to pay,
or admit in writing its inability to pay, its debts generally as they become
due; (3) make an assignment for the benefit of creditors; (4) apply for, seek,
consent to, or acquiesce in the appointment of a receiver, custodian, trustee,
examiner, liquidator or similar official for itself or any substantial part of
its property; (5) institute any proceedings seeking an order for relief or to
adjudicate it as bankrupt or insolvent, or seeking dissolution, winding up,
liquidation, reorganization, arrangement, adjustment or composition of it or its
debts under any law relating to bankruptcy, insolvency, reorganization, or
relief of debtors; or (6) take any action to authorize or effect any of the
foregoing actions;

          4. without the application, approval, or consent of the Company, a
receiver, trustee, examiner, liquidator or similar official shall be appointed
for the Company or any part of its property, or a proceeding described in
Section VI.B.3. above shall be instituted against the Company and such
appointment shall continue undischarged or such proceeding shall continue
undismissed or unstayed for a period of 60 consecutive days or the Company shall
fail to file timely and answer or other pleading denying the material
allegations filed against it in any such proceeding;

          5. as provided for in Appendix E of the Amended PPC.

     C. The occurrence of any one of the following events at anytime during this
Performance Agreement shall constitute an "Event of Default" under this
Performance Agreement by Seller:

          1. if Seller has failed to (a) have the injection pumps (as defined in
Exhibit A attached hereto) on-site within twenty-three (23) weeks after the
later of PUC Approval or the Bank's Consent or (b) have the injection pumps
installed within twenty-six (26) weeks after the later of PUC Approval or the
Bank's Consent.

          2. if Seller cannot satisfactorily complete the Acceptance Test
described in Section I.B within twenty-one (21) months after the later of PUC
Approval or the Bank's Consent;

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          3. if Seller cannot satisfactorily fulfill its In-Kind Obligations
under the Settlement Agreement and related documents within twenty-one (21)
months after the later of PUC Approval or the Bank's Consent, provided that, in
the event that HELCO declines to take Energy from PGV pursuant to Section
II.B.2.C. of the Settlement Agreement from the Effective Date of this
Performance Agreement, then the twenty-one (21) month period shall be extended
by adding one day to the twenty-one (21) month period for each one hundred (100)
megawatthours ("mwh") (rounded to the nearest increment of 100 mwh) of Energy
HELCO declines to accept under Section II.B.2.C of the Settlement Agreement,
provided further that, notwithstanding anything to the contrary, any Energy
offered to HELCO by PGV above 30 MW per hour during on-peak periods and/or above
25 MW per hour during off-peak periods, and declined by HELCO, shall not be
included in calculating any extension of the twenty-one (21) month period;

          4. in the event of nonperformance by Seller of any material obligation
in this Performance Agreement;

          5. failure of Seller to pay any amounts due and payable under this
Performance Agreement within sixty (60) days after receipt of invoice;

          6. abandonment of the Project or the discontinuance by the Seller of
services covered under this Performance Agreement for a period of twelve (12)
consecutive months unless such discontinuance is caused by Force Majeure under
Section VIII below or an Event of Default by the Company;

          7. if Seller shall (1) be dissolved, be adjudicated as bankrupt, or
become subject to an order for relief under any bankruptcy law; (2) fail to pay,
or admit in writing its inability to pay, its debts generally as they become
due; (3) make an assignment for the benefit of creditors other than the Bank;
(4) apply for, seek, consent to, or acquiesce in the appointment of a receiver,
custodian, trustee, examiner, liquidator or similar official for itself or any
substantial part of its property; (5) institute any proceedings seeking an order
for relief or to adjudicate it as bankrupt or insolvent, or seeking dissolution,
winding up, liquidation, reorganization, arrangement, adjustment or composition
of it or its debts under any law relating to bankruptcy, insolvency,
reorganization, or relief of debtors; or (6) take any action to authorize or
effect any of the foregoing actions;

          8. without the application, approval, or consent of Seller, a
receiver, trustee, examiner, liquidator or similar official shall be appointed
for Seller or any part of its property, or a proceeding described in Section
VI.C.7. above shall be instituted against Seller and such appointment shall

                                       9

continue undischarged or such proceeding shall continue undismissed or unstayed
for a period of 60 consecutive days or Seller shall fail to file timely and
answer or other pleading denying the material allegations filed against it in
any such proceeding;

          9. the failure to keep in force and effect all permits, approvals,
licenses, permits and the like, reasonably required for Seller to provide the
additional five (5) megawatts of firm capacity under this Performance Agreement;

          10. the failure to maintain qualification of Seller's Facility
pursuant to Section IX.E; or

          11. as provided for in Appendix E of the Amended PPC.

     D. If an Event of Default, other than failure to make any payment due and
payable within sixty (60) days after receipt of invoice, by either party shall
extend for a period of sixty days after receipt of written notice of such Event
of Default from the non-defaulting party, then the non-defaulting party may, at
its option, terminate this Performance Agreement by delivering written notice of
such termination to the party in default and/or may institute such legal action
or proceedings or resort to such other remedies as it deems necessary; provided,
however, that the party not in default shall not terminate this Performance
Agreement at the end of such sixty day period if the party in default has
corrected or commenced appropriate steps to correct such default and is
diligently prosecuting same to completion. Such termination shall be effective
on the date of written notice of termination to the party in default and shall
not prejudice any rights of the non-defaulting party.

     E. If the Event of Default is based on a party's failure to make any
payment that is due and payable under this Performance Agreement, the party
claiming such Event of Default shall give written notice to the non-paying party
stating that such payment is deemed payable. The non-paying party shall have ten
(10) days from the receipt of such notice to make the required payment and if
payment is not made within such ten (10 day period, the non-defaulting party may
terminate this Performance Agreement pursuant to written notice provided in
accordance with Section VI.D. above.

     F. Rights And Obligations Of The Parties Upon Default. If this Performance
Agreement is terminated pursuant to this Section VI, the parties shall have no
further obligations to each other hereunder except for such obligations as have
been incurred hereunder prior to such termination.

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          Notwithstanding the foregoing, in the event of default, the
non-defaulting party may exercise whatever legal or equitable remedies may be
available to it against the defaulting party. However, the parties further agree
that in no event shall either party be liable to the other for lost profits.

     G. Interpretation of Amended PPC. In the event this Performance Agreement
is terminated, but the Amended PPC is still in effect, then the Amended PPC
shall be interpreted as if the amendments to the Amended PPC described in
Section VII below were never effective.

     H. No Cross Default. A breach of or default under this Performance
Agreement shall not constitute a breach of or default under the Amended PPC. No
Event of Default under this Performance Agreement shall constitute an Event of
Default under the Amended PPC unless such event is specifically enumerated as an
Event of Default under the Amended PPC.

VII. AMENDMENT OF THE AMENDED PPC

     A. Upon the fulfillment of the conditions precedent set forth in Sections
V.A. and V.B. above, the Amended PPC shall be amended as follows:

          1. Appendix A, Description Of Seller's Generation And Conversion
Facilities, of the Amended PPC is deleted in its entirety and replaced by
Attachment A, which is attached hereto and made a part hereof.

          2. Appendix B, Facilities Owned By The Seller, of the Amended PPC is
deleted in its entirety and replaced by Attachment B, which is attached hereto
and made a part hereof.

          3. Appendix C, Interconnection Facilities Owned By The Company, of
the Amended PPC is deleted in its entirety and replaced by Attachment C, which
is attached hereto and made a part hereof.

          4. Appendix D, Power Purchases By Company, of the Amended PPC is
deleted in its entirety and replaced by Attachment D, which is attached hereto
and made a part hereof.

          5. Appendix F, Definitions, of the Amended PPC is deleted in its
entirety and replaced by Attachment E, which is attached hereto and made a part
hereof.

          6. Section 15, Force Majeure, of the Amended PPC is deleted in its
entirety and replaced by Attachment F, which is attached hereto and made a part
hereof.

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     B. Upon the fulfillment of the conditions precedent set forth in Section
V.B. above and the amendment of the Amended PPC as specified in Section VII.A.
above, HELCO shall begin to make Firm Capacity payments pursuant to Paragraph
3(d) of Appendix B and Paragraph B.2. of Appendix D of the Amended PPC as
amended by this Performance Agreement.

VIII. FORCE MAJEURE

     A. If either party shall be wholly or partially prevented from performing
any of its obligations under this Performance Agreement by reason of an event of
force majeure reasonably beyond its control and not attributable to its neglect,
then and in any such event, such party shall be excused from whatever
performance is prevented by such event to the extent so prevented, and such
party shall not be liable for any damage or loss resulting therefrom. Events of
force majeure shall include accidents, lightning, rain, earthquake, wind,
wind-blown water, riots, fire, flood, invasion, insurrection, lava flow or
volcanic activity, tidal wave, civil commotion, the order of any court, judge or
civil authority, war, and any act of God or the public enemy or any other cause
beyond the reasonable control of the party relying on such cause to excuse its
performance hereunder to the extent to which the party cannot remedy the problem
by exercise of due diligence, including, but not limited to, the expenditure of
all reasonable sums of money; provided that inadequate or extreme reservoir
pressures, temperature, or the presence of foreign substances therein shall not
be considered to be an event of force majeure except as provided in Section
VIII.C. below.

          Notwithstanding the foregoing, however, force majeure does not include
any labor dispute, any failure of Seller to obtain and/or maintain any permit or
any full or partial curtailment of the electric output of the Facility that is
caused by or arises from a mechanical or equipment breakdown, even if the
breakdown occurs without the fault or negligence of Seller, unless such
breakdown is caused by any of the specific force majeure events listed above and
could not have been reasonably prevented.

     B. The party claiming an event of force majeure shall give prompt written
notice of such event to the other party within 30 days of the date such party
claiming force majeure knew or should have known of the event of force majeure.
In addition, such party shall use reasonable diligence, to the extent
practicable, to limit the impact of such event on the performance of its
obligations under this Performance Agreement. Notwithstanding the foregoing,
this Section VIII.B. shall not excuse any payment obligation that has
theretofore accrued under this Performance Agreement.

     C. Inadequate or extreme reservoir pressures, temperatures, or the presence
of foreign substances therein,

                                       12

shall not be an event of force majeure unless the Seller has taken reasonable
actions to avoid or mitigate any adverse impact on the Seller's ability to meet
its obligations under this Performance Agreement including the expenditure of
all reasonable sums of money.

     D. Any obligation of either party under this Performance Agreement shall be
excused only to the extent and for the period that the party's inability to
perform is caused by a force majeure event. The party so excused shall make all
reasonable efforts including all reasonable expenditures of necessary funds to
cure, mitigate or remedy a force majeure event. Any payments due as compensation
for the obligation so excused shall also be excused for so long as the
obligation is not performed due to force majeure.

     E. In the event that the Commercial Operation Date of the additional five
(5) megawatts is delayed because of an event or events of force majeure, the
time periods specified in Sections II.A and II.B shall be extended on a
day-for-day basis to match the duration of the event of force majeure.

     F. Notwithstanding any other provision of this Performance Agreement, if a
party is prevented from substantially performing its obligations under this
Performance Agreement by an event of force majeure that continues for a period
of twelve (12) consecutive months, the other party may terminate the Performance
Agreement without further liability of either party to the other hereunder. Such
termination shall be effective upon 90 days written notice given any time after
the twelve month period has expired but prior to the resumption of substantial
performance; provided, however, that if substantial performance is resumed
during that 90 day period, such termination shall not be effective.

IX.  MISCELLANEOUS PROVISIONS

     A. Transmission Line Agreement. If, upon fulfillment of the conditions
precedent of Section V.B. of this Performance Agreement, Seller is or thereafter
becomes obligated to supply HELCO an amount of Energy equal to the remaining
Transmission Line Obligation (as defined in the Settlement Agreement) pursuant
to Section II.C.5 of the Settlement Agreement, then HELCO and PGV agree that the
remaining Transmission Line Obligation shall be paid by offsetting any amounts
owed by HELCO to PGV for energy payments for Energy provided to HELCO above 25
MW during on-peak periods and above 22 MW during off-peak periods. Presently,
the remaining Transmission Line Obligation is Two Million Nine Hundred Eighteen
Thousand Seven Hundred And No/100 Dollars ($2,918,700.00).

     B. Entire Agreement. Subject to Section VI.G. herein, this Performance
Agreement, the Amended PPC and the Settlement

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Agreement, including any and all attachments, exhibits and related documents
(including, without limitation, the Transmission Line Agreement) constitute the
entire understanding between the parties, supersedes any and all previous
understandings between the parties, and binds and inures to the benefit of the
parties, their successors and assigns. The parties have entered into this
Performance Agreement in reliance upon the representations and mutual
undertakings contained herein and not in reliance upon any oral or written
representation or information provided to one party by any representative of the
other party. No modification, amendment or waiver of all or any part of this
Performance Agreement shall be valid unless it is in writing and signed by both
parties.

     C. Continuing Effect. To the extent not amended by this Performance
Agreement, the Amended PPC shall remain in full force and effect.

     D. Authority. All action on the part of the parties to authorize the
execution, delivery and performance of this Performance Agreement and the
consummation of the transactions contemplated herein, shall have been duly and
validly taken by each party and that this Performance Agreement constitutes a
valid and binding obligation of each party.

     E. Further Performance. Each party hereto shall and does hereby agree to
make, execute, deliver and cooperate with each other, as the case may be, any
and all agreements, instruments, documents, records and/or funds, as the case
may be, whatsoever required, necessary and/or convenient to effect and
consummate this Performance Agreement and to permit performance of all acts
required hereunder.

     F. Defined Terms. Capitalized terms not otherwise defined in this
Performance Agreement shall have the meaning ascribed to them in the Amended
PPC.

     G. Electric Service Supplied By HELCO. This Performance Agreement and the
Amended PPC do not provide for any electric services by HELCO to Seller. If
Seller requires any electric services from HELCO, Seller shall receive such
service in accordance with HELCO's tariff.

     H. Affiliated Interest. The Seller shall not sell or transfer more than a
10% equity interest to any person or entity, or enter into any other transaction
that would make the Seller an Affiliated Interest with the Company as defined by
Section 269-19.5, Hawaii Revised Statutes, without first notifying the Company
and receiving appropriate PUC approval, if any is required. If the PUC (or any
other entity which has the authority to do so) finds that the Seller is an
Affiliated Interest with the Company, the Seller shall have 60 days to take
whatever action may be appropriate to render the

                                       14

relationship not to be an Affiliated Interest. The Company shall have the right
to terminate the Amended PPC, including this Fourth Amendment and any future
amendments, if the PUC prohibits the Company from recovering any payments made
to the Seller under this Amended PPC, as amended herein and from time to time,
due to the effect of Section 269-19.5, Hawaii Revised Statutes, relating to
affiliated interests.

     I. Qualification Of Seller's Facility. Seller's Facility will continue to
be throughout the term of this Performance Agreement either (1) a qualifying;
small power production facility under Subchapter 2 of the PUC's Standards for
Small Power Production and Cogeneration in the State of Hawaii, Chapter 74 of
Title 6 of the State's Administrative Rules, or (2) a "non-fossil fuel producer"
within the meaning of Section 269-27.2, Hawaii Revised Statutes.

     J. Governing Law. This Performance Agreement shall be subject to, governed
by, construed and enforced in accordance with the laws of the state of Hawaii,
without regard to choice of law principles, and each of the parties hereto shall
and does hereby agree to submit to the personal jurisdiction and venue of the
Circuit Court of the Third Circuit of the State of Hawaii or the United States
District Court for the District of Hawaii, as the case may be.

     K. Headings. The headings herein are inserted only for convenience and
reference, and shall in no way define, limit or describe the scope or intent of
any provision of this Performance Agreement.

     L. No Party Deemed Drafter. This performance Agreement reflects the results
of negotiations between the parties hereto and, therefore, no party shall be
deemed to be the drafter of this Performance Agreement. This Performance
Agreement or any provision hereof shall not be construed or interpreted by any
Circuit or Federal Court or other authority of competent jurisdiction before
which this Performance Agreement is properly presented against any party as
drafter.

     M. Severability. If any term or provision of this Performance Agreement or
the application thereof to any person, entity or circumstance shall to any
extent be invalid or unenforceable, the remainder of this Performance Agreement,
or the application of such term or provision to persons, entities or
circumstances other than those as to which it is invalid or unenforceable, shall
not be affected thereby, and each term and provision of this Performance
Agreement shall be valid and enforceable to the fullest extent permitted by law.

     N. Waiver. The failure of either party to enforce at any time any of the
provisions of this Performance Agreement, or to require at any time performance
by the other party of any of the provisions hereof, shall in no way be construed
to be a

                                       15

waiver of such provisions, nor in any way to affect the validity of this
Performance Agreement or any part hereof, or the right of such party thereafter
to enforce every such provision.

     O. Notice. Unless otherwise provided, all notices, requests, demands and
other communications hereunder shall be in writing and shall be deemed given if
(1) delivered personally, or (2) by facsimile transmission (followed with a hard
copy by first class mail, postage prepaid), or (3) three (3) Business Days after
being mailed by certified or registered mail, postage prepaid, return receipt
requested, to the parties at the following addresses or at such other addresses
as the parties shall have specified by notice hereunder:

          If to HELCO:

               HAWAII ELECTRIC LIGHT COMPANY, INC.
               1200 Kilauea Avenue
               Hilo, Hawaii 96720-4295

               ATTN: President

               FAX No.: (808) 969-0100

          If to PGV:

               PUNA GEOTHERMAL VENTURE
               14-3860 Kapoho Pahoa Road
               Pahoa, Hawaii 96778

               or

               P. O. Box 30
               Pahoa, Hawaii 96778

               ATTN: General Manager

               FAX No.: (808) 965-7254

     P. Counterparts/Facsimile Signatures. This Performance Agreement may be
executed and delivered by the parties hereto in any number of counterparts, each
of which shall be delivered an original or duplicate original, and all of which
together shall constitute one and the same instrument or agreement. Counterparts
may be exchanged by facsimile, which facsimile signatures shall be effective for
all purposes and treated in the same manner as physical signatures.
Notwithstanding the foregoing, the party using facsimile signatures agrees that
it will promptly forward physically signed copies of this Performance Agreement
to the other party.

                                       16

          IN WITNESS WHEREOF, the Company and the Seller have executed this
Performance Agreement as of the day and year first above written.

                                    HAWAII ELECTRIC LIGHT COMPANY, INC.

                                    By: /s/ Warren H. W. Lee
                                        ----------------------------------------
                                    Name: Warren H. W. Lee
                                    Title: President

                                    By: /s/ Edward Y. Hirata
                                        ----------------------------------------
                                    Name: Edward Y. Hirata
                                    Title: Vice President

                                    PUNA GEOTHERMAL VENTURE

                                    By AMOR VIII CORPORATION,
                                       a Delaware corporation,
                                       Its General Partner

                                       By:
                                           -------------------------------------
                                       Name:
                                             -----------------------------------
                                       Title:
                                              ----------------------------------

                                    By CE PUNA L.P.,
                                       a Maryland limited partnership,
                                       Its General Partner

                                          By CE PUNA I, INC.,
                                             a Maryland corporation,
                                             Its General Partner

                                                By:
                                                    ----------------------------
                                                Name:
                                                      --------------------------
                                                Title:
                                                       -------------------------

                                       17

     IN WITNESS WHEREOF, the company and the Seller have executed this
Performance Agreement as of the day and year first above written.

                                    HAWAII ELECTRIC LIGHT COMPANY, INC.

                                    By:
                                        ----------------------------------------
                                    Name:
                                          --------------------------------------
                                    Title:
                                           -------------------------------------

                                    By:
                                        ----------------------------------------
                                    Name:
                                          --------------------------------------
                                    Title:
                                           -------------------------------------

                                    PUNA GEOTHERMAL VENTURE

                                    By AMOR VIII CORPORATION,
                                       a Delaware corporation,
                                       Its General Partner

                                       By: /s/ Illegible
                                           -------------------------------------
                                       Name: Illegible
                                       Title: President

                                    By CE PUNA L.P.,
                                       a Maryland limited partnership,
                                       Its General Partner

                                          By CE PUNA I, INC.,
                                             a Maryland corporation,
                                             Its General Partner

                                                By: /s/ JR Farrell
                                                    ----------------------------
                                                Name: JR Farrell
                                                Title: Vice President

                                       17

STATE OF HAWAII              )
                             ) ss.
CITY AND COUNTY OF HONOLUL   )

     On this 8th day of February, 1996, before me personally appeared WARREN H.
W. LEE, to me personally known, who, being by me duly sworn, did say that he is
the PRESIDENT, of HAWAII ELECTRIC LIGHT COMPANY, INC., a Hawaii corporation,
and that foregoing Performance Agreement was signed on behalf of HAWAII ELECTRIC
LIGHT COMPANY, INC. by authority of its Board of Directors, and said officer
acknowledged said Performance Agreement to be the free act and deed of HAWAII
ELECTRIC LIGHT COMPANY, INC.

                                                  /s/ Illegible
                                                  ------------------------------
                                                  Notary Public, State of Hawaii
                                                  My Commission Expires: 3/22/98

STATE OF HAWAII              )
                             ) SS.
CITY AND COUNTY OF HONOLULU  )

     On this 5th day of February, 1996, before me personally appeared Edward Y.
Hirata to me personally known, who, being by me duly sworn, did say that he
is the Vice President, of HAWAII ELECTRIC LIGHT COMPANY, INC., a Hawaii
corporation, and that foregoing Performance Agreement was signed on behalf of
HAWAII ELECTRIC LIGHT COMPANY, INC. by authority of its Board of Directors, and
said officers acknowledged said Performance Agreement to be the free act and
deed of HAWAII ELECTRIC LIGHT COMPANY, INC.

/s/ Anita J. Rocker
------------------------------
Notary Public, State of Hawaii

My Commission expires: 6-7-97

STATE OF OREGON          )
                         ) SS.
COUNTY OF ____________   )

     On this 12th day of FEBRUARY, 1996, before me personally appeared JOSEPH B.
FAHRENDURF to me personally known, who, being by me duly sworn, did say
that he is the PRESIDENT of AMOR VIII CORPORATION, a Delaware corporation;
that said corporation is a general partner of Puna Geothermal Venture, a Hawaii
general partnership, named in the foregoing Performance Agreement; that said
Performance Agreement was executed by said corporation as the duly authorized
general partner of and on behalf of Puna Geothermal Venture, and acknowledged
that the seal affixed to the foregoing Performance Agreement is the corporate
seal of said corporation, and that said Performance Agreement was signed and
sealed on behalf of said corporation by authority of its Board of Directors and
in the name of and on behalf of Puna Geothermal Venture, and said officer and
acknowledged said Performance Agreement to be the free act and deed of AMOR VIII
Corporation as general partner of PUNA GEOTHERMAL VENTURE.

/s/ Illegible
------------------------------
Notary Public State of OREGON

My Commission expires: 10-16-99

---------------------------------------------
[GRAPHIC]             OFFICIAL SEAL
                     PENNY J BROWER
                 NOTARY PUBLIC . OREGON
                  COMMISSION NO. 047943
          MY COMMISSION EXPIRES OCT. 16, 1999
---------------------------------------------

STATE OF Maryland   )
                    ) SS.
COUNTY OF Harford   )

     On this 9th day of February, 1996, before me appeared John R. Farrell, to
me personally known, who, being by me duly sworn, did say that he/she is the
Vice President of CE PUNA I, INC., a Maryland corporation; that said corporation
is a general partner of CE Puna Limited Partnership, a Maryland limited
partnership; that said CE Puna Limited Partnership is a general partner of Puna
Geothermal Venture, a Hawaii general partnership named in the foregoing
Performance Agreement; that said Performance Agreement was executed by said
corporation as the duly authorized general partner of and on behalf of CE Puna
Limited Partnership, as the duly authorized general partner of and on behalf of
Puna Geothermal Venture, and acknowledged that the seal affixed to the foregoing
Performance Agreement is the corporate seal of said corporation, and that said
Performance Agreement was signed and sealed on behalf of said corporation by
authority of its Board of Directors and in the name of and on behalf of CE Puna
Limited Partnership and in the name of and on behalf of Puna Geothermal Venture,
and said officer acknowledged said Performance Agreement to be the free act and
deed of said corporation and as said general partner of CE Puna Limited
Partnership as the general partner of Puna Geothermal Venture.

/s/ Janet R. Cunningham
-------------------------------
Notary Public State of Maryland
My Commission expires: 5/1/96

                                   [GRAPHIC]

                                                                  ATTACHMENT A
                                                                     TO THE
                                                                FOURTH AMENDMENT

                                   APPENDIX A

          DESCRIPTION OF SELLER'S GENERATION AND CONVERSION FACILITIES

1.   Name of facility: Puna Geothermal Venture

               (a)  Location: Honuaula, Puna, County of Hawaii, State of Hawaii

               (b)  Telephone number (for system emergencies)
                    System Emergencies:
                       (808) 965-7485
                    Switch Board
                       (808) 965-6233

               (c)  Company billing account number: 06 686 520 01

2.   Owner: Puna Geothermal Venture

3.   Operator(1): Puna Geothermal Venture

4.   Name of person to whom payments are to be made:

     (a)  Mailing address: Puna Geothermal Venture
                           P.O. Box 30
                           Pahoa, Hawaii 96778

     (b)  Hawaii Gross Excise Tax License Number: 30067799

5.   Equipment:

     (a)  Type of facility and conversion equipment: Back pressure steam
          turbines integrated with air-cooled organic rankine cycle Ormat Energy
          Converters.

     (b)  Design capacity:(2) Total 30 MW

----------
1    Attach a letter signed by an officer of the Seller warranting that the
     Seller is in good standing with the Hawaii Department of Commerce and
     Consumer Affairs.

2    The "Design Capacity" may exceed 30 MW to the extent necessary for Seller
     to furnish up to 30 MW of "Allowed Capacity" as defined in Appendix F,
     provided that the "Allowed Capacity" of this Contract shall be 30 MW.

                                                                  ATTACHMENT A
                                                                     TO THE
                                                                FOURTH AMENDMENT

     (c)  Single or 3 phase: 3 phase

     (d)  Name of manufacturer: Ormat or equivalent

     (e)  Date of interconnection: December 31, 1989

6.   Projected date of operation in parallel to company's System ("Operational
     Date"): First 25 MW - July 1, 1990
             Next 5 MW - Nine (9) months after the later of PUC Approval or
             Bank's Consent

7.   Date Firm Capacity Begins: First 25 MW - June 26, 1993
                                Next 5 MW - Upon the
                                fulfillment of the conditions precedent set
                                forth in Sections V.A. and V.B. of the
                                Performance Agreement

8.   Insurance carrier: Attached hereto as Exhibit 1 to Appendix A

9.   If the owner is not the operator, a copy of the agreement between the owner
     and the operator which allows the operator to use the facility and which
     establishes the scope of operations by the operator and the respective
     rights of the owner and the operator with respect to the sale of electric
     energy from the Seller's facility shall be provided to HELCO.

10.  If the land on which the facilities are located is not owned by the
     facility's owner, a copy of the agreement with the owner of the land which
     establishes the right of the facility's owner to put the facility on the
     land and the existence of required rights of way and easements shall be
     provided to HELCO.

                                       2

                                                                  ATTACHMENT A
                                                                     TO THE
                                                                FOURTH AMENDMENT

                             Exhibit 1 To Appendix A

                                 COSI PUNA, INC.
                                       &
                             PUNA GEOTHERMAL VENTURE

                          Addendum to Executive Summary

LIABILITY

1.   Commercial General Liability - Provides protection for those sums you
     become legally obligated to pay as damages because of Bodily injury or
     Property Damage to a third party, caused by an occurrance, and arising out
     of the insured premises and/or those operations necessary or incidental to
     your business. Coverage also includes products and completed operations,
     contractual liability, independent contractors coverage, personal and
     advertising injury, fire legal liability and medical payments.

     Named
     Insured:        Puna Geothermal Venture;
                     COSI Puna, Inc.

     Insurance
     Company:        Lexington Insurance Company

     Policy
     Number:         CGL 553 55 81

     Limits of
     Liability:      $1,000,000 Each Occurrence
                     $1,000,000 Personal and Advertising injury
                     $   10,000 Medical Payments per Person
                     $  100,000 Fire Legal Liability
                     $1,000,000 Products/Completed
                                Operations Aggregate
                     $2,000,000 General Aggregate

     Deductible:     $   25,000 each occurrence BI & PD Liability

     Policy Term:    March 31, 1995 to March 31, 1996

                                                                       [GRAPHIC]

                                                                  ATTACHMENT A
                                                                     TO THE
                                                                FOURTH AMENDMENT

                             Exhibit 1 To Appendix A

LIABILITY

2.   Business Automobile Liability and Physical Damage - Provides protection for
     those sums you become legally obligated to pay as damages because of Bodily
     injury or Property Damage to a third party, arising from the ownership,
     maintenance, or use of any owned, hired, or non-owned automobile, as
     outlined in the policy. Other coverages include uninsured motorists,
     medical payments and physical damage (Comprehensive and Collision for
     owned and hired vehicles).

     Insurance
     Company:       Gulf Insurance Company

     Policy
     Number:        BA 543 69 52

     Limits of
     Liability:     $1,000,000 Bodily injury
                    $1,000,000 Property Damage
                    $1,000,000 Uninsured Motorists
                    $   20,000 Personal injury Protection
                    $1,000,000 Hired and Non-Owned Automobile

     Deductible:    $    1,000 Comprehensive
                    $    1,000 Collision

     Policy Term:   6/1/95-_/1/96

     Note:          Schedule of vehicles on file with Company.

                                                                       [GRAPHIC]

                                       2

                                                                  ATTACHMENT A
                                                                     TO THE
                                                                FOURTH AMENDMENT

                             Exhibit 1 To Appendix A

3.   Workers Compensation and Employers Liability - Provides protection to your
     employees for any injury, death, or disease arising out of and in the
     course of employment, as outlined in the policy. Benefits are Paid
     according to the Workers Compensation Law and Occupational Disease Law of
     each State or Territory.

     Insurance
     Company:        The Travelers Insurance Company

     Policy
     Number:         SUB599K484294

     Limits of
     Liability:

     Coverage A:     Worker's Compensation - Statutory
     Coverage B:     Employers Liability
                     $1,000,000 B_ by Accident
                     $1,OOO.OOO B_ by Disease Policy Limit
                     $1,000,000 B_ by Disease Each Employee

     Policy Term:    11/22/94 - 11/22/95

                                                                       [GRAPHIC]

                                       3

                                                                  ATTACHMENT A
                                                                     TO THE
                                                                FOURTH AMENDMENT

                             Exhibit 1 To Appendix A

4.   Umbrella Liability - Protects against catastrophic third party liability
     losses by providing excess limits of liability over and above the
     following: General Liability, Automobile Liability, and the Employers
     Liability portion of the Worker's Compensation policy. Coverage is subject
     to terms, conditions and exclusions of the following policy:

     Named
     Insured:     Puna Geothermal Venture;
                  COSI Puna, Inc.

     Insurance
     Company:     Lexington Insurance Company

     Policy
     Number:      _667359

     Limit of
     Liability:   $25,000,000 Each Occurrence
                  $25,OOO,OO0 General Aggregate

     Self
     Insured
     Retention:   $25,000

     Policy
     Term:        March 31, 1995 to March 31, 1996

                                                                       [GRAPHIC]

                                       4

                                                                  ATTACHMENT A
                                                                     TO THE
                                                                FOURTH AMENDMENT

                             Exhibit 1 To Appendix A

     Control of Well - Provides protection for cost to gain control of well; the
     expense to redrill and/or restore the well to the condition prior to the
     blowout and cleanup and pollution expenses resulting from a blowout. A
     separate endorsement extends the policy to cover contractor's equipment
     (not rigs) in the insured's care, custody or control.

     Named
     Insured:       Puna Geothermal Venture;
                    COSI Puna, Inc.

     Insurance
     Company:       Underwriter's at Lloyd's London and Certain
                    Insurance Companies (through GSR)

     Policy
     Number:        _2741

     Limits:        $20,000,000 Ea. Occurrence, _EE (100%)
                    $ 1,000,000 Care, Custody & Control (100%)

     Deductible:    $    25,000 Each Occurrence, per Section, _EE (100%)
                    $    25,000 Care, Custody & Control (100%)

     Policy Term:   March 31, 1995 to March 31, 1996

     Note:          Premium Subject to Audit

                                                                       [GRAPHIC]

                                       5

                                                                  ATTACHMENT A
                                                                     TO THE
                                                                FOURTH AMENDMENT

                             Exhibit 1 To Appendix A

PROPERTY

     Property Damage - Provides repair or replacement cost coverage for damage
     to all real and personal property, including Business Interruption
     resulting from a covered peril. Provides coverage for fire and extended
     coverages, flood, earthquake, and transit, all subject to policy terms,
     conditions and exclusions.

     Boiler & Machinery - Provides repair or replacement cost coverage,
     including Business Interruption, resulting from sudden and accidental
     damage to objects, or parts thereof, subject to policy exclusions. Objects
     include, but are not limited to, pressure, mechanical, and electrical
     apparatus, including turbine generators.

     Insurance Company:      Insurance Company of North America (INA)

     Policy Number:          EUTFD835821-7

     Policy Term:            8/1/95 - 8/1/95

     Highlights of Limits:

     Combined Property Damage and Boiler & Machinery including: Business
     Interruption, Flood, Pollution Cleanup & Removal, Errors & Omissions, and
     Debris Removal

          Combined Limit         $102,916,000 per occurrence

     Sub-Limits applicable to Property Damage:

          Earthquake             $40,000,000

          Accounts Receivable    $ 5,000,000

          Valuable Papers        $ 5,000,000

          Demolition/Increased
          Cost of Construction   $ 5,000,000

          Extra Expense          $ 5,000,000

                                                                       [GRAPHIC]

                                       6

                                                                  ATTACHMENT A
                                                                     TO THE
                                                                FOURTH AMENDMENT

                             Exhibit 1 To Appendix A

   Property in Transit       $ 5,000,000
   Newly Acquired Property   $ 5,000,000
      (90 days)
   Transmission/
      Distribution Lines     $ 1,500,000

Sub-Limits applicable to Boiler & Machinery:

   Business interruption     $13,514,000
   Service interruption      $ 5,000,000
   Extra Expense             $ 5,000,000
   Expediting Expense        $ 1,000,000
   Hazardous Substance       $ 1,000,000
   Ammonia Contamination     $ 1,000,000
   Water Damage              $ 1,000,000

Deductibles:

   Property Damage           $    50,000 except;
   Transmission/
      Distribution Lines     $   250,000
   Named Windstorms          $   250,000
   Earthquake                $   100,000 or 2% whichever is greater

   Business interruption     30 day waiting period except;
   Service interruption      45 hour waiting period

                                                                       [GRAPHIC]

                                       7

                                                                  ATTACHMENT B
                                                                     TO THE
                                                                FOURTH AMENDMENT

                                   APPENDIX B

                         FACILITIES OWNED BY THE SELLER

1.   Seller's Facility

     (a)  A final (1) a single-line diagram of Seller's Facility, (2) relay
          list, and (3) trip scheme shall be prepared and, subject to the review
          and acceptance thereof by both parties, signed and attached hereto as
          Exhibit 1 to Appendix B and made a part hereof. Such single-line
          diagram expressly identifies the final location of the Point of
          Interconnection.

          Material changes or additions to the Seller's Facility reflected in
          the single-line diagram, relay list, and trip scheme shall not be made
          without the prior written consent of the Company pursuant to Section 3
          of the Contract. If any changes in or additions to such Facility,
          records, and operating procedures are required by the Company, the
          Company shall specify such changes to the Seller in writing, and
          except in the case of an emergency, Seller shall have the opportunity
          to review any such change or addition in advance.

     (b)  The Seller shall furnish, install, operate and maintain facilities
          such as breakers, relay, switches, synchronizing equipment, monitoring
          equipment and control and protective devices acceptable to the Company
          as suitable for parallel operation with the Company's System. Such
          facilities shall be accessible at all times to authorized Company
          personnel.

     (c)  The Seller shall furnish, install and maintain in accordance with the
          Company's requirements all conductors, service switches, fuses, meter
          sockets, meter and instrument transformer housing and mounting,
          switchboard meter test buses, meter panels and similar devices
          required for service connections and meter installations on the
          Seller's premises.

     (d)  Seller shall install transducers, metering, AC and DC sources,
          telephone lines, and provide interconnecting wiring for supervisory
          and communications equipment.

     (e)  The Company has reviewed and accepted the design drawings and Bill of
          Material for the Seller's electrical equipment required to
          interconnect with

                                                                  ATTACHMENT B
                                                                     TO THE
                                                                FOURTH AMENDMENT

          the Company's System. The type of electrical equipment, the type of
          protective relaying equipment (which equipment shall be mutually
          agreeable to the parties) and the settings that affect the reliability
          and safety of operation of the Company's and Seller's interconnected
          system shall be acceptable to the Company. The Company, at its option,
          may request to witness operation of control, synchronizing, and
          protection schemes.

     (f)  The Seller shall provide a manual disconnect device which provides a
          visible break to separate the Seller's Facility from the Company's
          System. Such disconnect device shall be lockable in the OPEN position
          and be readily accessible to Company personnel at all times.

     (g)  In order to allow Seller's Facility to remain on-line and to assist in
          restart of parallel operation thereof with the Company's System,
          Seller may provide automatic equipment to isolate Seller's Facility
          from the Company's System during large system disturbances; provided
          that such automatic equipment has been approved by the Company prior
          to installation for compatibility with Company's System.

2.   Operating Procedures

     (a)  The Company may require periodic reviews of the Seller's Facility,
          maintenance records, available operating procedures and policies, and
          relay settings, and may request changes it deems necessary to protect
          the Company's System from damages resulting from the Seller's parallel
          operation.

     (b)  Logs shall be kept by the Seller for information on unit availability,
          including reasons for planned and forced outages; circuit breaker trip
          operations; relay operations, including target initiation; and other
          unusual events. The Company shall have the right to review these logs,
          especially in analyzing system disturbances. The Seller will provide
          the Company with subsequent written confirmation any time the Seller
          experiences a unit trip. Such confirmation will include the date and
          time of the occurrence as well as the cause of the unit trip.

     (c)  Seller shall limit its Facility's ramp rate to less than 2 MW/min.

     (d)  The Company's Load Dispatcher shall specify the power factor at which
          energy is delivered by the Seller to

                                       2

                                                                  ATTACHMENT B
                                                                     TO THE
                                                                FOURTH AMENDMENT

          the Company. Typical power factor requirements will normally operate
          in a range of 0.85 lagging to 1.0.

     (e)  If Seller is separated from the Company's System for any reason, the
          Seller, under no circumstances, shall reclose into the Company's
          system without first obtaining specific approval to do so from the
          Company's Load Dispatcher. Such approval shall be withheld only when
          such reclosing is not in accordance with Section 17(a) of this
          Contract and the Company's standard practices, policies and
          procedures.

     (f)  The Company's Load Dispatcher will notify the Seller whenever the
          Seller must be separated from the Company's System pursuant to
          Sections 6 and 7 of this Contract. When possible, reasonable advance
          notice will be given to the Seller by the Company's Load Dispatcher,
          provided this provision does not limit the Company's obligation to
          give notice under Section 6(b) of this Contract.

     (g)  The Seller shall submit the next five-year maintenance requirement in
          writing to the Company each year no later than June 30 of the previous
          year. The Company shall specify the maintenance schedule for the
          five-year period and inform the Seller in writing no later than
          September 30 of the same year. The Company shall not unreasonably
          delay maintenance of the Seller's Facility and will cooperate with
          Seller in establishing a reasonable schedule for the Seller's
          maintenance requirements.

     (h)  The Seller shall notify the Company's Load Dispatcher prior to
          synchronizing a generator onto or taking a generator off the system.
          Such notification should be as far in advance as reasonably possible
          under the circumstances causing the action.

     (i)  Company Dispatch - The Company shall have the sole and absolute right,
          through supervisory equipment or otherwise, to control, from moment to
          moment, within the limits of sound engineering practices, the rate of
          delivery of energy and capacity subject to a Legally Enforceable
          Obligation to a maximum of the Seller's Firm Capacity Obligation.

3.   Seller's Firm Capacity Obligation

     (a)  Firm Capacity Obligation. The Seller shall furnish the Company 30,000
          kw of capacity and 18,600 kvar of reactive from the Effective Date of
          the Fourth

                                       3

                                                                  ATTACHMENT B
                                                                     TO THE
                                                                FOURTH AMENDMENT

          Amendment until the end of the contract term pursuant to a Legally
          Enforceable Obligation, under the Company's Dispatch during the entire
          term hereof except for the "annual overhaul period" set forth in
          Paragraph 3(b) of this Appendix B. The reactive shall be in proportion
          to power in the range of 0.85 lagging to 1.0 unity power factor and
          shall be dispatched by the Company to keep the Seller's generator
          within the limits of plus or minus 5% of the generator voltage.

     (b)  Plant Shutdown Period. The Seller may shut its facility down and shall
          have no obligation to furnish the Company the capacity described in
          Paragraph 3(a) of this Appendix B during the "Annual Overhaul Period."
          During each contract year the Annual Overhaul Period shall not be
          longer than 28 days and shall be taken during the period beginning May
          15 and ending September 30, the specific days to be determined each
          contract year with the Company's approval, which approval shall not be
          unreasonably withheld, and shall not be in conflict with the schedule
          established for the Company's other firm capacity contracts.

     (c)  Minimum Delivery Guarantee By The Company. The Company shall accept as
          much of the power made available from the Seller as possible, given
          the limitations resulting from the Company's obligations to purchase
          minimum amounts of firm capacity from other firm capacity sellers, the
          Company's existing obligations to purchase As-Available Energy, the
          Company's need to keep a minimum number of its own generating units
          on-line at least at a reasonable minimum loading, the Company's load
          during certain times of the day and other operating reasons, provided
          that the Company shall accept 25,000 kw during the on-peak hours (7:00
          a.m. to 9:00 p.m.), and 20,000 kw in 1990 and 22,000 kw after 1990
          during the off-peak hours. The Company shall purchase a minimum of
          178,000,000 kwh each year from the Seller under the Company's Dispatch
          subject to the provisions of Section 6 and 7 of the Contract. The
          178,000,000 kwh amount shall be reduced by the Energy (kwh) that the
          Seller should have delivered to the Company but could not due to
          reasons other than the Annual Overhaul Period and force majeure.

     (d)  Capacity Payments. The Company shall pay the Seller for the Firm
          Capacity under Company Dispatch subject to a Legally Enforceable
          Obligation that the Seller is obligated to deliver to the Company
          pursuant to

                                       4

                                                                  ATTACHMENT B
                                                                     TO THE
                                                                FOURTH AMENDMENT

          Paragraph 3 of this Appendix B as provided for by Paragraph B of
          Appendix D of this Contract.

     (e)  Sanctions for Non-Performance. The Seller shall pay the sanctions
          provided for by Paragraph D of Appendix D of this Contract if it fails
          to satisfy its firm capacity obligations under this Contract.

4.   Access to Facility

     (a)  Seller hereby grants HELCO the right, but not the obligation, for the
          term of this Contract to enter upon the Facility with such prior
          notice as is reasonable under the circumstances to take such action as
          may be necessary in the reasonable opinion of HELCO (i) to maintain,
          inspect, read and test meters and other HELCO equipment, and (ii) to
          interconnect, interrupt, monitor or measure electrical generation
          produced at Seller's Facility.

     (b)  PGV shall provide in the first month of every year on an annual basis
          throughout the term of this Contract, information and geothermal data
          in substantially the form attached hereto as Exhibit 2 to Appendix B.
          In addition, at HELCO's request, PGV shall meet with HELCO and provide
          such data, information and access to PGV's Facility reasonably
          required to update the December 12, 1995 "Geothermal Resource
          Assessment, Puna Geothermal Venture Expansion, Kilauea East Rift,
          Hawaii" by Gerald Niimi of Therma Source, Inc. and the January 15,
          1996 "Analysis of Fluid Compositions at the Puna Geothermal Venture 30
          mWe Geothermal Facility" by Donald Thomas of G-Tech Services, and/or
          provide a similar analysis to these reports.

                                       5

                                                                  ATTACHMENT B
                                                                     TO THE
                                                                FOURTH AMENDMENT

                             Exhibit 1 To Appendix B

[To Be Attached -- Attach hereto a copy of a single-line diagram of the Seller's
Facility, relay list, and trip scheme within sixty (60) days of the Execution
Date (as defined in the Performance Agreement) pursuant to the Performance
Agreement.]

                                                                  ATTACHMENT B
                                                                     TO THE
                                                                FOURTH AMENDMENT

                             Exhibit 2 To Appendix B

PUNA GEOTHERMAL VENTURE

KS10 PRODUCTION WELL DATA

-----------------------------------------------------------------
                                              AVERAGE     AVERAGE
                                              WELLHEAD   WELLHEAD
             HOURS                            PRESSURE     TEMP
Mo. Total   ON PROD   STEAM   BRINE   TOTAL    (PSIG)     (DBGF)
-----------------------------------------------------------------
   Jan
   Feb
   Mar
   Apr
   May
   Jun
   Jul
   Aug
   Sep
   Oct
   Nov
   Dec
-----------------------------------------------------------------

-----------------------------------------------------------------
Yr. Total
-----------------------------------------------------------------

KS09 PRODUCTION WELL DATA

-----------------------------------------------------------------
                                              AVERAGE     AVERAGE
                                              WELLHEAD   WELLHEAD
             HOURS                            PRESSURE     TEMP
Mo. Total   ON PROD   STEAM   BRINE   TOTAL    (PSIG)     (DBGF)
-----------------------------------------------------------------
   Jan
   Feb
   Mar
   Apr
   May
   Jun
   Jul
   Aug
   Sep
   Oct
   Nov
   Dec
-----------------------------------------------------------------

-----------------------------------------------------------------
Yr. Total
-----------------------------------------------------------------

                                                                  ATTACHMENT B
                                                                     TO THE
                                                                FOURTH AMENDMENT

                             Exhibit 2 To Appendix B

PUNA GEOTHERMAL VENTURE

COMBINED INJECTION DATA
QUANTITIES OF FLUID INJECTED (K POUNDS)

--------------------
MO. TOTAL   GEOFLUID
--------------------
   JAN
   FEB
   MAR
   APR
   MAY
   JUN
   JUL
   AUG
   SEP
   OCT
   NOV
   DEC
--------------------

--------------------
Yr. Total
--------------------

                                       2

                                                                  ATTACHMENT C
                                                                     TO THE
                                                                FOURTH AMENDMENT

                                   APPENDIX C

                 Interconnection Facilities Owned By The Company

1.   The Company will design, construct, own, operate and maintain all
     facilities on the Company's side of the Point of Interconnection required
     to interconnect the Company's System with the Seller's Facility at 69 kv,
     including, without limitation, the following equipment at the Seller's
     Facility:

     (a)  Necessary instrument transformers, test facilities (except switchboard
          meter test buses), meters, and protective line relays.

     (b)  Supervisory and communication equipment for remote control and
          metering (a Remote Terminal Unit) at the Seller's Facility.

     (c)  Provided, however, that PGV will construct the permanent switching
          station at the Point of Interconnection.

     (d)  The Seller shall be responsible for the costs to design, permit,
          construct, and install the interconnection facilities owned by the
          Company.

2.   The terms relating to the design, permitting, construction and operation of
     certain Interconnection Facilities, including power transmission lines,
     required to be installed in order to accept Energy from Seller's Facility
     have been determined by separate agreements between the parties. This
     Contract is subject in all respects to the parties conclusion of
     satisfactory terms regarding the construction, installation and operation
     of such Interconnection Facilities and the payment therefor. To the extent
     a portion of such costs is to be paid by Seller, an allocation shall be
     agreed to by the parties that reflects benefits to Buyer's System of
     constructing or upgrading such Interconnection Facilities or portions
     thereof that are not required solely to interconnect Seller's Facility.
     Such cost allocation shall be subject to review and approval by the PUC.

     Presently, the Company and Seller's have entered into a Transmission Line
     Agreement, dated March 7, 1995, which is pending before the PUC for
     approval. The Transmission Line Agreement is incorporated herein by
     reference.

                                                                  ATTACHMENT C
                                                                     TO THE
                                                                FOURTH AMENDMENT

3.   The Seller shall reimburse the Company for any costs incurred in operating,
     maintaining, replacing, or relocating Company-owned Interconnection
     Facilities to the extent that such costs exceed Company's cost if the
     Seller were not interconnected to the Company's System.

4.   The Company shall maintain full and complete information logs and records
     of (i) all meter readings; (ii) the calculation of amounts due to Seller;
     (iii) the operation and maintenance of the Interconnection Facilities; and
     (iv) information to verify events described in Section 6(a), 6(b), and 7 of
     this Contract, including but not limited to, unit availability (including
     reasons for planned and forced outages), circuit breaker trip operations,
     and relay operations (including target initiation).

5.   The Seller shall be allowed to review the information logs and records
     maintained by the Company pursuant to Section 4 of this Appendix C, above,
     during the Company's normal business hours in accordance with the Company's
     rules for service to its customers.

                                       2

                                                                  ATTACHMENT D
                                                                     TO THE
                                                                FOURTH AMENDMENT

                                   APPENDIX D

                           POWER PURCHASES BY COMPANY
                                   (For 30 MW)

A.   ENERGY PURCHASES BY THE COMPANY

     1.   Subject to the other provisions of this Contract, including but not
          limited to Sections 6 and 7 of this Contract:

          a.   The Company shall accept and pay for the first twenty-five (25)
               megawatts of on-peak Energy and the first twenty-two (22)
               megawatts of off-peak Energy generated by the Seller's Facility
               and delivered by the Seller to the Company at the higher of: (a)
               the respective on-peak and off-peak energy rates set forth in
               Paragraph A.3.a. of this APPENDIX D, or (b) $0.0656/kilowatthour
               ("kwh") on-peak or $0.0543/kwh off-peak; provided, however, that
               the rate of delivery of such Energy under this Paragraph A.1.a
               shall not exceed twenty-five (25) megawatts on-peak and
               twenty-two (22) megawatts off-peak at any given time.

          b.   The Company shall accept and pay for an additional five (5)
               megawatts of on-peak Energy (above the twenty-five (25) megawatts
               delivered pursuant to Paragraph A.1.a above) generated by the
               Seller's Facility and delivered by the Seller to the Company at
               the higher of: (a) the on-peak energy rate set forth in Paragraph
               A.3.b. of this APPENDIX D, or (b) the Minimum Purchase Rate set
               forth in Paragraph A.4. of this APPENDIX D; provided, however,
               that the rate of delivery of such Energy under this Paragraph
               A.1.b shall not exceed five (5) megawatts at any given time.

          c.   At the Company's sole discretion, the Company may accept and pay
               for any additional on-peak Energy provided above the thirty (30)
               megawatts of on-peak Energy (delivered pursuant to Paragraphs
               A.1.a. and A.1.b. above) at the higher of: (a) the on-peak energy
               rate set forth in Paragraph A.3.b. of this APPENDIX D, or (b) the
               Minimum Purchase Rate set forth in Paragraph A.4. of this
               APPENDIX D.

                                                                  ATTACHMENT D
                                                                     TO THE
                                                                FOURTH AMENDMENT

          d.   At the Company's sole discretion, the Company may accept and pay
               for any additional off-peak Energy above the twenty-two (22)
               megawatts of off-peak Energy (delivered pursuant to Paragraph
               A.1.a. above) generated by the Seller's Facility and delivered by
               the Seller to the Company at the higher of: (a) the Energy
               Rate/kwh calculated for on-peak energy set forth in Paragraph
               A.3.b. of this APPENDIX D less $0.01/kwh, or (b) $0.02/kwh.

          e.   The Company agrees that it will not enter into any new contracts
               with independent power producers or amend any existing contracts
               with independent power producers that would obligate the Company
               to take any more off-peak As-Available Energy than the Company is
               presently obligated to take under an existing agreement without
               first agreeing to take an additional 5 megawatts of off-peak
               Energy from Seller. This provision shall not apply to the
               purchase, either in a new or existing contract with an
               independent power producer, of any additional amount of off-peak
               energy required in such contract because of the reasonable
               minimum operating requirements of an independent power producer.

     2.   Energy furnished by Seller to the Company shall be metered by a
          time-of-day meter that measures Energy delivery on at least one hour
          intervals. The Company shall not pay for any Energy that may be
          delivered by the Seller prior to installation and operation of the
          Company's meters. The on-peak hours shall be those between 7:00 a.m.
          and 9:00 p.m. daily, and the off-peak hours shall be those between
          9:00 p.m. on one day and 7:00 a.m. on the following day.

     3.   Energy Rates

          a.   The on-peak energy rate for the first 25 MW of on-peak Energy and
               the off-peak energy rate for the first 22 MW of off-peak Energy
               delivered pursuant to Paragraph A.1.a. above shall be one hundred
               percent (100%) of the Company's respective on-peak and off-peak
               Avoided Energy Costs (including avoided costs of fuel and
               operation and maintenance) in cents per kilowatthour, calculated
               in accordance with the provisions of the PUC's standards, on file
               with the PUC and in effect for the month in which such Energy is
               delivered.

                                       2

                                                                  ATTACHMENT D
                                                                     TO THE
                                                                FOURTH AMENDMENT

          b.   The on-peak energy rate for the next 5 MW of on-peak Energy
               (above 25 MW) delivered pursuant to Paragraph A.1.b. above shall
               be:

               On-Peak Energy
                  Rate/kwh = [Fuel Rate (Base Charge) x A) + [Variable O & M
                             Rate (Base Charge) x (GDPIPD (current)/
                             GDPIPD (base))]

               The terms in the above formula shall have the following meanings
               as stated:

                    Fuel Rate (Base Charge): $0.038/kwh

                    A =  Fuel Actual (Diesel)/Fuel Base (Diesel) where:

                    Fuel Actual (Diesel) is the average of each of the Thursday
                    high and low Pacific Northwest Spot 0.5% No. 2 prices for
                    Diesel Fuel ("PNW No. 2 prices"), as reported by Oil Price
                    Information Service ("OPIS") from the 21st day of the second
                    preceding month to the 20th day of the month preceding the
                    month Energy is delivered to HELCO (Computation Month),
                    expressed in dollars per gallon, rounded to the fourth
                    decimal place; and

                    Fuel Base (Diesel) is the average of each of the Thursday
                    high and low PNW No. 2 prices as reported by OPIS from the
                    21st day of November 1995 to the 20th day of December 1995,
                    expressed in dollars per gallon, rounded to the fourth
                    decimal place and which the parties agreed is $0.5444/
                    gallon.

                    If OPIS is not published or does not publish a high and low
                    price for a particular Thursday during the relevant one
                    month period, the high and low prices for the closest
                    preceding day for which OPIS publishes a price report will
                    be used.

                    In the event that PNW No. 2 prices are not published by OPIS
                    then the parties agree to use another publication that
                    publishes PNW No. 2 prices. In the event that PNW No. 2
                    prices are not published or otherwise available, the parties
                    agree to adjust the

                                       3

                                                                  ATTACHMENT D
                                                                     TO THE
                                                                FOURTH AMENDMENT

                    Fuel Rate (Base Charge) by a new index, which, to the extent
                    practicable, shall be applied in the same fashion as the
                    index represented by the term "A" in the above formula.

               Variable O & M Rate (Base Charge) = $0.0029/kwh

               GDPIPD (current) = the final Gross Domestic Product Implicit
                                  Price Deflator ("GDPIPD") (there are four
                                  categories of GDPIPD -- advance, preliminary,
                                  final and revised final) as published by the
                                  United States Department of Commerce,
                                  Economics and Statistics Administration,
                                  Bureau of Economic Analysis ("Department of
                                  Commerce") for the third quarter of the
                                  calendar year preceding the calendar year in
                                  which the Energy is delivered.

               GDPIPD (base)    = the final GDPIPD as published by the
                                  Department of Commerce for the third quarter
                                  of 1995.

               In the event that GDPIPD is not published by Department of
               Commerce, the parties agree to adjust the Variable O & M Rate
               (Base Charge) by another index mutually agreed upon by the
               parties.

               When adjusting the Variable O&M Rate (Base Charge), the
               adjustment shall apply to the energy delivered by Seller to HELCO
               in the month of the adjustment date (January 1) and then invoiced
               for payment in the following month. In other words, the annual
               adjustment factor will be first applied to the energy delivered
               in January to be invoiced in February.

          An example of the On-Peak Energy calculation is attached hereto as
          Exhibit 1 to Appendix D.

     4.   The Minimum Purchase Rate, as defined in APPENDIX F of this Contract,
          shall apply to the five (5) megawatts of Energy delivered by Seller
          under

                                       4

                                                                  ATTACHMENT D
                                                                     TO THE
                                                                FOURTH AMENDMENT

          Paragraph A.1.b. above to the Company during the term of this
          Contract.

     5.   During each payment period Seller shall be credited at the rate of
          $0.002 per kilovarhour for each kilovarhour furnished by the Seller to
          the Company in excess of .62 x kwh. The kvarh meters shall be adjusted
          to prevent reversal in the event the power factor is leading.

     6.   This paragraph intentionally left blank.

     7.   The Seller shall deliver Energy under Company Dispatch pursuant to a
          Legally Enforceable Obligation as follows:

          a.   On-Peak Period. During the 14 hour period from 7:00 a.m. to 9:00
               p.m. each day, the Seller shall be obligated to deliver Energy
               under the Company's Dispatch at a rate equal to the Seller's Firm
               Capacity Obligation described in Paragraph 3.(a) of APPENDIX B of
               this Contract.

          b.   Off-Peak Period. During the 10 hour period from midnight to 7:00
               a.m. and 9:00 p.m. to midnight each day, the Seller shall be
               obligated to deliver energy under the Company's Dispatch at a
               rate not greater than the Seller's Firm Capacity Obligation
               described in Paragraph 3.(a) of APPENDIX B of this Contract and
               not less than the Minimum Delivery Guarantee.

B.   CAPACITY PURCHASES BY THE COMPANY

     1.   As compensation for providing the Firm Capacity under Company Dispatch
          as described in Paragraph 3(a) of APPENDIX B, the Company will pay the
          Seller a capacity payment, payable monthly within 20 days after the
          last day of the calendar month in which the firm capacity was
          provided, of 1/12 of the Annual Capacity Payment Rate.

     2.   The Capacity Payment Rate shall be:

          a.   $4,000,000 per year for the first twenty-five (25) megawatts of
               firm capacity under Company Dispatch as described in Paragraph 3
               of APPENDIX B beginning on June 26, 1993; and subject to the
               sanction provision of Paragraph D.1. of APPENDIX D; and

                                       5

                                                                  ATTACHMENT D
                                                                     TO THE
                                                                FOURTH AMENDMENT

          b.   $504,750 per year for the next five (5) megawatts of firm
               capacity under Company Dispatch above the first twenty-five (25)
               megawatts of firm capacity in Subsection B.2.a. as described in
               Paragraph 3 of APPENDIX B beginning on the date of the
               fulfillment of the conditions precedent set forth in Sections
               V.A. and V.B. of the Fourth Amendment; provided that the Seller
               has satisfied the Acceptance Test requirement of Section I.B. of
               the Fourth Amendment; and subject to the sanction provision of
               Paragraph D.1. of APPENDIX D. If the first year of operation for
               the additional 5 MW of firm capacity is a partial calendar year
               then the amount of the Capacity Payment ($504,750) shall be
               prorated on a daily basis ($1,380 per day) from the date of the
               fulfillment of the conditions precedent set forth in Sections
               V.A. and V.B. of the Fourth Amendment through December 31 of that
               year.

     3.   The Company shall not be required to pay any additional capacity
          payment for any additional power supplied by the Seller, either at the
          Company's or the Seller's request.

     4.   A failure by the Seller to provide the required Firm Capacity to the
          Company shall result in the reduction in the capacity payment due to
          the Seller from the Company in accordance with Paragraph D of APPENDIX
          D of this Contract. The Company shall not have any obligation to pay
          capacity payments to the Seller for periods in excess of twenty-four
          hours in which the Seller is unable to fulfill its obligations under
          the Contract, including but not limited to (i) circumstances which are
          subject to Paragraph 15 of this Contract relating to Force Majeure
          without fault, or (ii) for periods in which the Seller does not
          fulfill its obligations under Paragraph 3 of APPENDIX B of this
          Contract due to the Seller's "default," as such term is defined in
          APPENDIX E of this Contract.

     5.   If the Seller does not satisfy its firm capacity obligations as
          described in Paragraph 3 of APPENDIX B and Paragraph C of this
          APPENDIX D of this Contract, it shall pay sanctions as described in
          Paragraph D of this APPENDIX D.

                                       6

                                                                  ATTACHMENT D
                                                                     TO THE
                                                                FOURTH AMENDMENT

C.   PERFORMANCE STANDARDS

     1.   The Seller acknowledges and agrees that the Seller's generating
          facility is expected to meet the following minimum standards for
          satisfactory day-to-day performance during each contract year: (i) an
          On-peak Availability (excluding the four-week annual maintenance
          period and downtime due to a catastrophic equipment failure) of 95
          percent or better; (ii) not more than 6 Plant Trips per year; and
          (iii) a forced outage rate of 5 percent or less.

     2.   The "On-peak Availability" of the Seller's Facility (in percent) is to
          be computed by adding the total on-peak Energy under Company's
          Dispatch subject to a Legally Enforceable Obligation available from
          the Seller's Facility during the contract year, and dividing by the
          product of 4,718 on-peak hours per 48 week year (4,732 for leap years)
          times the Firm Capacity Obligation (prorated on a daily basis, if
          necessary) and multiplying the total by 100 percent.

     3.   "Catastrophic Equipment Failure" means a sudden, unexpected failure of
          a major piece of equipment which (i) substantially reduces or
          eliminates the capability of the Seller's Facility to produce power,
          (ii) is beyond the reasonable control of the Seller and could not have
          been prevented by the exercise of due diligence by the Seller, and
          (iii) despite the exercise of all reasonable efforts, requires more
          than sixty (60) days to repair.

     4.   "Plant Trip" means the sudden and immediate removal of the Seller's
          Facility from service as a result of an immediate
          mechanical/electrical/hydraulic control system trip or operator
          initiated trip/shutdown which requires the Company to take immediate
          steps to place an unscheduled generator on line to make up for the
          loss of output of the Seller's Facility; provided, however, that a
          Plant Trip shall not include: (i) any such removal which occurs within
          forty-eight (48) hours of the time at which the Seller's Facility is
          restarted following an outage; (ii) trips caused or initiated by the
          Company; or (iii) trips occurring during periods when the Seller has
          continued to furnish capacity to the Company at the request of the
          Company's Production Manager after the Seller has notified the
          Company's Production Manager that the Seller's Facility is likely to
          trip.

                                       7

                                                                  ATTACHMENT D
                                                                     TO THE
                                                                FOURTH AMENDMENT

     5.   The "Forced Outage Rate" of the Seller's Facility during a contract
          year is to be computed by totaling the average megawatts unavailable
          for service due to forced outages or deratings on an hourly basis,
          multiplying the total by 100, and dividing by the product of 8,760
          hours per year times the weighted average of the Seller's firm
          capacity obligation (prorated on a daily basis, if necessary).

D.   SANCTIONS

     1.   The capacity payment is to be made on the basis of the full
          availability of the Seller's Firm Capacity Obligation. When the
          Seller's full Firm Capacity Obligation is not available, the Seller
          shall pay the Company $0.0214 per on-peak hour for each kilowatt of
          deficiency based on annual capacity payments of $504,750 and 4,718
          on-peak hours in a year for the first five (5) megawatts of deficiency
          and the Seller shall pay the Company $0.0339 per on-peak hour for each
          kilowatt of deficiency in excess of five (5) megawatts of deficiency
          based on annual capacity payments of $4 million and 4,718 on-peak
          hours in a year.

     2.   For each contract year in which the On-peak Availability of the
          Seller's Facility is less than 95 percent, unless the shortfall is due
          to a catastrophic equipment failure, the Seller shall pay $7,992 to
          the Company for each full percentage point of the shortfall less than
          95 percent to and including 80 percent, and the Seller will pay
          $11,875 to the Company for each full percentage point of the shortfall
          less than 80 percent.

     3.   For each Plant Trip in excess of 6 per contract year, the Seller shall
          pay $10,000 to the Company.

     4.   The Company shall have the right to offset any payment due from the
          Seller under this Paragraph against any payments due to the Seller.

     5.   This paragraph intentionally left blank.

     6.   Each party may exercise whatever legal or equitable remedies may be
          available to enforce the obligations of this Contract in the event
          of a default by the other party.

                                       8

                                                                  ATTACHMENT D
                                                                     TO THE
                                                                FOURTH AMENDMENT

                             Exhibit 1 To Appendix D

                                 Illustration of
                           On-Peak Energy Payment Rate

On-Peak Energy Payment Rate    =   Fuel Component + Variable O&M Component

Where:
Fuel Component                 =   Fuel Rate (Base Charge) x Fuel Index

Variable O&M Component         =   Variable O&M Rate (Base Charge) x Variable O&M Index

Fuel Rate (Base Charge)        =   $0.038/kwh

Fuel Index                     =   PNW (current)
                                   -------------
                                   PNW (base)

Variable O&M Rate
(Base Charge)                  =   $0.0029/kwh

Variable O&M Index             =   GDP IPD (current)
                                   ----------------
                                   GDP IPD (base)

On-Peak Energy Payment Rate    =   [$0.038/kwh x PNW (current)] + [$0.0029 x GDP IPD (current)]
                                                 -------------               ----------------
                                                 PNW (base)                  GDP IPD (base)

   Where:
   PNW (current)               =   the average of each of the Thursday high and
                                   low Pacific Northwest Spot 0.5% No. 2 prices
                                   for Diesel Fuel ("PNW"), as reported by Oil
                                   Price Information Service ("OPIS") from the
                                   21st day of the second preceding month to the
                                   20th day of the month energy is delivered by
                                   PGV to HELCO, expressed in $/gallon

   PNW (base)                  =   $0.5444/gallon, the average of the Thursday
                                   high and low Pacific Northwest Spot 0.5% No.
                                   2 prices for Diesel Fuel, as reported by OPIS
                                   from the 21st day of November 1995 to the
                                   20th day of December 1995, expressed in
                                   $/gallon

   GDP IPD (current)           =   final GDP IPD for the 3rd Quarter of the year
                                   preceding the year that the Variable O&M
                                   Index will be used

   GDP IPD (base)              =   the final GDP IPD for the third quarter of
                                   1995 (Note: 107.9 is the "preliminary"
                                   estimate used only for this illustration -
                                   the "final" shall be used in the actual
                                   calculation)

   On-Peak Energy Payment Rate =   [$0.038/kwh x PNW (current)] + [$0.0029 x GDP IPD [current)]
                                                 -------------                -----------------
                                                  $0.5444/gal                     107.9

                                                                  ATTACHMENT D
                                                                     TO THE
                                                                FOURTH AMENDMENT

                             Exhibit 1 To Appendix D

----------------------------------------------------------------------
                               OPIS
                         PACIFIC NORTHWEST
  PRICE                    DIESEL PRICE          CUSA/HECO   CUSA/HECO
   FOR                ------------------------    WEEKLY      MONTHLY
MONTH OF     DATE       LOW     HIGH     AVG       PRICE      AVERAGE
----------------------------------------------------------------------
DEC 1995   10/26/95   0.5800   0.5850   0.5825     0.5825
           11/02/95   0.5775   0.5850   0.5813     0.5813
           11/09/95   0.5900   0.5950   0.5925     0.5925
           11/16/95   0.5625   0.5700   0.5663     0.5663      0.5806

JAN 1996   11/22/95   0.5550   0.5650   0.5600     0.5600
           11/30/95   0.5400   0.5500   0.5450     0.5450
           12/07/95   0.5350   0.5450   0.5400     0.5400
           12/14/95   0.5300   0.5350   0.5325     0.5325      0.5444

                                       2

                                                                  ATTACHMENT E
                                                                     TO THE
                                                                FOURTH AMENDMENT

                                   APPENDIX F

                                   DEFINITIONS

1. Allowed Capacity: The maximum Capacity agreed upon between Company and Seller
that may be delivered to Company at any one time by the Seller, unless Company
requests otherwise, which shall be thirty megawatts (30 MW).

2. As-Available Energy: Energy provided to Company on an unscheduled basis as it
becomes available, rather than at prearranged times and in prearranged amounts,
and which is not subject to a Legally Enforceable Obligation.

3. Avoided Energy Costs: The energy costs that the Company avoids by purchasing
Energy from Seller, as defined in and calculated in accordance with the PUC's
Standards.

4. Capacity: Electric power expressed in kilowatts or megawatts.

5. Company's Dispatch: company's sole and absolute right to control, from moment
to moment, through supervisory equipment, or otherwise, and in accordance with
good engineering practice in the electric utility industry, the rate of delivery
of Energy offered by Seller to Company.

6. Company's Fuel Adjustment Clause: The provision in the Company's rate
schedules that allows Company to pass through to its customers the Company's
costs of fuel and purchased power.

7. Company's System: The electric system owned and operated by the Company on
the Island of Hawaii consisting of power plants, transmission and distribution
lines, and related equipment for the production and delivery of electric power
to the public.

8. Company's System Load Dispatcher: The authorized representative of Company
who is responsible for carrying out Company's Dispatch.

9. Commercial Operation: For the first twenty-five (25) megawatts of Capacity,
Commercial Operation is the date (June 26, 1993) on which Seller's Facility was
deemed by Seller to be capable of reliable delivery of firm capacity. For the
additional five (5) megawatts of capacity delivered under the Fourth Amendment,
Commercial Operation is the date on which Seller's Facility is deemed by Seller
to be capable of reliable delivery of an additional five (5) megawatts of firm
capacity after the successful completion of the 100 hour Acceptance Test as
stated in the Fourth Amendment.

10. Energy: Electric power expressed in kilowatthours.

                                                                  ATTACHMENT E
                                                                     TO THE
                                                                FOURTH AMENDMENT

11. Energy Cost Adjustment Clause: Same as Company's Fuel Adjustment Clause.

12. Firm Capacity: Thirty megawatts (30 MW) of reliable electrical Capacity and
18,600 kvar of reactive which the Seller has agreed to make available to HELCO
from Seller's Facility at the Point of Interconnection under the Company's
Dispatch.

13. Firm Capacity Obligation: Seller's Legally Enforceable Obligation to provide
Firm Capacity as described in Section 3(a) of APPENDIX B of this contract.

14. Fourth Amendment: That certain PERFORMANCE AGREEMENT AND FOURTH AMENDMENT TO
THE PURCHASE POWER CONTRACT DATED MARCH 24, 1986 AS AMENDED dated February __,
1996, by and between Hawaii Electric Light Company, Inc. and Puna Geothermal
Venture.

15. Interconnection Facilities: The equipment and devices required to permit
Seller's power plant to operate in parallel with and deliver electric power to
Company's System, such as, but not limited to, transmission lines, transformers,
switches, and circuit breakers.

16. Legally Enforceable Obligation: A binding commitment to supply Energy or
Capacity at prearranged times and in prearranged amounts under Company's
Dispatch, with sanctions for noncompliance.

17. Minimum Purchase Rate: The minimum rate payable by Company to Seller for
on-peak Energy delivered by Seller to Company under this Contract shall be equal
to the on-peak Energy Rate calculated pursuant to Paragraph A.3.b. of APPENDIX D
on the date of PUC Approval (as defined in the Fourth Amendment).

18. Operational Date: The date(s) on which the respective generating units of
Seller's Facility are projected for planning purposes to begin parallel
operation with Company's System.

19. Point of Interconnection: The point of delivery of Energy and/or capacity
supplied by Seller to Company where Seller's Facility interconnects with
Company's System.

20. PUC's Standards: Standards for Small Power Production and Cogeneration in
the State of Hawaii, issued by the Hawaii Public Utilities Commission, Chapter
74 of Title 6, Hawaii Administrative Rules, currently in effect and as may be
amended from time to time.

                                       2

                                                                  ATTACHMENT E
                                                                     TO THE
                                                                FOURTH AMENDMENT

21. "Seller's Facility" or the "Facility": All real estate, fixtures and
property owned, controlled, operated or managed by Seller in connection with, or
to facilitate, the production, generation, transmission, delivery or furnishing
of electricity by Seller to Company and required to interconnect with Company's
System, except Seller's geothermal wellfield, pipelines, and other equipment
located upstream from Seller's power plant.

                                       3

                                                                  ATTACHMENT F
                                                                     TO THE
                                                                FOURTH AMENDMENT

15.  Force Majeure

     (a)  If either party shall be wholly or partially prevented from performing
          any of its obligations under this Contract by reason of an event of
          force majeure reasonably beyond its exclusive control and not
          attributable to its neglect, then and in any such event, such party
          shall be excused from whatever performance is prevented by such event
          to the extent so prevented, and such party shall not be liable for any
          damage or loss resulting therefrom. Events of force majeure shall
          include but not be limited to the following: accidents, action or
          inaction of any governmental agency (including the inability to obtain
          permits or authorization), lightning, rain, earthquake, wind,
          wind-blown water, riots, fire, flood, invasion, insurrection, lava
          flow or volcanic activity, tidal wave, civil commotion, the order of
          any court, judge or civil authority, war, and any act of God or the
          public enemy; provided that inadequate or extreme reservoir pressures,
          temperature, or the presence of foreign substances therein shall not
          be considered to be an event of force majeure except as provided in
          Subsection (c) of this paragraph.

     (b)  The party claiming an event of force majeure shall give prompt written
          notice of such event to the other party within 30 days of the date
          such party claiming force majeure knew or should have known of the
          event of force majeure. In addition, such party shall use reasonable
          diligence, to the extent practicable, to limit the impact of such
          event on the performance of its obligations under this Contract.
          Notwithstanding the foregoing, this Subsection 15(b) shall not excuse
          any payment obligation that has theretofore accrued under this
          contract.

     (c)  Inadequate or extreme reservoir pressures, temperatures, or the
          presence of foreign substances therein, shall not be an event of force
          majeure unless the Seller has taken reasonable actions to avoid or
          mitigate any adverse impact on the Seller's ability to meet its
          obligations under this Contract.

                                                                 EXHIBIT A
                                                                  TO THE
                                                           PERFORMANCE AGREEMENT

                           DESCRIPTION OF ENHANCEMENTS

The enhancements will increase the site electrical generating output by
increasing the flow to the three existing injection wells. This will be
accomplished mainly by the installation of three injection pumps ("injection
pumps"). These injection pumps will increase injection pressure, thus increasing
system flow and electric generation output. In addition, it is contemplated that
condensate flows will be redirected from 4" and 6" lines currently in use to an
existing 14" line. This change is intended to enhance process efficiency.

                                                                 EXHIBIT B
                                                                  TO THE
                                                           PERFORMANCE AGREEMENT

                                PROJECT SCHEDULE

The timetable for completion of the project activities are expressed in weeks
from the date of the later of PUC Approval or Bank's Consent of the Performance
Agreement. The first number is the week in which the activity is expected to
begin and the second number is the week in which the activity is expected to be
completed.

Description of Activity        Timetable
-----------------------   ------------------
Engineering               Week 0 to Week 12
Procurement               Week 0 to Week 21
Installation              Week 10 to Week 26
Power Output              Week 26

Major Milestone

     PGV expects to have its injection pumps on site no later than 23 weeks
after the later of PUC Approval or Bank's Consent of the Performance Agreement.

                                                                  EXHIBIT C
                                                                   TO THE
                                                           PERFORMANCE AGREEMENT

                                           , 1996
                               ____________

Hawaii Electric Light
   Company, Inc.
1200 Kilauea Avenue
Hilo, Hawaii  96720-4295

     RE:  Consent To Performance Agreement

Gentlemen:

          We refer to that certain Performance Agreement And Fourth Amendment To
The Purchase Power Contract Dated March 24, 1986 as Amended ("Performance
Agreement"), dated as of ______________________, 1996, by and between Hawaii
Electric Light Company, Inc. ("HELCO"), incorporated under the laws of the
Republic of Hawaii, and Puna Geothermal Venture ("PGV"), a Hawaii general
partnership. Capitalized terms used herein and not otherwise defined shall have
the meaning set forth in the Performance Agreement and, if none, then as set
forth in the Confirmation Agreement (as defined below).

          CREDIT SUISSE, a bank organized and existing under the laws of
Switzerland, as Agent and Collateral Agent for the benefit of its own account
and such other financial institutions as may participate in the funding and
other risks associated with the Loan as defined below (hereinafter collectively
referred to as "Credit Suisse"), the Lenders (as defined in the Confirmation
Agreement) and PGV have entered into (i) a Credit Agreement-Construction Loan
and Term Loan Facility, and (ii) an Assignment and Security Agreement
("Assignment"), pursuant to which Credit Suisse has agreed to make a loan
("Loan") to PGV for the purpose of constructing the PGV facility.

          Pursuant to the Assignment, PGV has granted to Credit Suisse a
security interest in the HELCO-PGV Agreements, for the benefit of the Lenders,
as security for the payment of all sums to become due and payable to Credit
Suisse and the Lenders.

                                                                  EXHIBIT C
                                                                   TO THE
                                                           PERFORMANCE AGREEMENT

Hawaii Electric Light
   Company, Inc.
Page 2

          The Assignment requires PGV to obtain Credit Suisse's written consent
prior to amending, canceling or terminating the HELCO-PGV Agreements. Pursuant
to the Confirmation of Purchase Power Contract and Agreement ("Confirmation
Agreement"), dated June 29, 1990, by and between HELCO, PGV and credit Suisse,
HELCO is also required to obtain the written consent of Credit Suisse prior to
amending, canceling or terminating the HELCO-PGV Agreements.

          Under the Performance Agreement, PGV has agreed to provide, and HELCO
has agreed to accept and pay for, an additional five (5) megawatts of firm
capacity. In order to provide the additional firm capacity, the Performance
Agreement requires amending certain of the HELCO-PGV Agreements, which in turn,
requires the consent of Credit Suisse and Banque Nationale de Paris, a bank
organized and existing under the laws of the Republic of France ("BNP").

Consent

          Credit Suisse and BNP have each reviewed the Performance Agreement and
each hereby consent to PGV's and HELCO's execution of the Performance Agreement
and the performance of the terms, conditions and obligations of the parties
thereunder.

          This Consent shall be subject to, governed by, construed and enforced
in accordance with the laws of the State of Hawaii, without regard to principles
of choice of law.

          The individuals executing this Consent represent and warrant that they
are duly authorized to do so on behalf of Credit Suisse and BNP, as the case
maybe, and that this Consent, once executed, shall be fully binding upon Credit
Suisse and BNP, as the case maybe, and their respective

                                                                  EXHIBIT C
                                                                   TO THE
                                                           PERFORMANCE AGREEMENT

Hawaii Electric Light
   Company, Inc.
Page 3

successors, agents, representatives, administrators, trustees and assigns.

Consented to and agreed
to as the date first
above written:

CREDIT SUISSE

   By:
          ------------------------------
   Name:
          ------------------------------
   Title:
          ------------------------------

   By
          ------------------------------
   Name:
          ------------------------------
   Title:
          ------------------------------

BANQUE NATIONALE de PARIS

   By:
          ------------------------------
   Name:
          ------------------------------
   Title:
          ------------------------------

   By:
          ------------------------------
   Name:
          ------------------------------
   Title:
          ------------------------------

                                                                  EXHIBIT C
                                                                   TO THE
                                                           PERFORMANCE AGREEMENT

STATE OF _____________   )
                         ) SS.
COUNTY OF ____________   )

     On this _________ day of ___________________, 199_, before me appeared
_________________________________________ and ________________________________
____________________________, to me personally known, who, being by me duly
sworn, did say that they are ____________________________ and
________________________, respectively, of CREDIT SUISSE, a bank organized and
existing under the laws of Switzerland, as Agent and Collateral Agent; that the
seal affixed to the foregoing instrument is the corporate seal of said bank;
that said instrument was signed and sealed in behalf of said corporation by
authority of its Board of Directors; and said _________________________ and
________________________________ acknowledged said instrument to be the free act
and deed of said bank.

__________________________________________
Notary Public, State of __________________

My Commission expires: ___________________

                                                                  EXHIBIT C
                                                                   TO THE
                                                           PERFORMANCE AGREEMENT

STATE OF _____________   )
                         ) SS.
COUNTY OF ____________   )

     On this _________ day of ____________________, 199_, before me appeared
____________________________________________ and
_______________________________________________, to me personally known, who,
being by me duly sworn, did say that they are ________________________ and
______________________, respectively, of BANQUE NATIONALE de PARIS, a bank
organized and existing under the laws of the Republic of France; that the seal
affixed to the foregoing instrument is the corporate seal of said bank; that
said instrument was signed and sealed in behalf of said corporation by authority
of its Board of Directors; and said __________________________ and
________________________________ acknowledged said instrument to be the free act
and deed of said bank.

__________________________________________
Notary Public, State of __________________

My Commission expires: ___________________Exhibit 10.3.49

                  AGREEMENT TO DESIGN 69 KV TRANSMISSION LINES,
              A SUBSTATION AT POHOIKI, MODIFICATIONS TO SUBSTATIONS
              AT PUNA AND KAUMANA, AND A TEMPORARY 34.5 FACILITY TO
                INTERCONNECT PGV'S GEOTHERMAL ELECTRIC PLANT WITH
                               HELCO'S SYSTEM GRID
                                   (PHASE II)

SECTION 1. SCOPE OF WORK

(a) Phase II work includes the design of two 69 KV transmission lines,
approximately 18 miles long each, which will interconnect PGV's proposed
geothermal electric power plant and HELCO's system near its Puna Substation.

(b) HELCO shall design the two 69 KV transmission lines which will interconnect
PGV's proposed geothermal electric power generating plant and HELCO's Puna
Substation in accordance with the rules of the Public Utilities Commission,
State of Hawaii ("PUC"). The design shall include all necessary coordination
with State, County, and private agencies or individuals to allow material
procurement and line construction to proceed by following the engineering plans
and construction specifications. The design of each of the lines shall start
only upon specific written notice to proceed issued by PGV. For Line 1, such
notice was given by PGV to HELCO by PGV Purchase Order No. 82744, dated
September 28, 1988. Upon signing of this agreement, HELCO shall have full
authorization to design Line 1. Notice to proceed to design Line 2 shall be
issued by PGV to HELCO no later than June 15, 1990.

(c) The proposed 69 KV transmission lines shall consist of three aluminum-alloy
conductors which will be supported by horizontal post insulators or suspension
insulators attached to a single wooden pole. The poles shall be spaced
approximately 300 to 500 feet apart and shall carry a steel shield wire at the
pole top for protection against lightning. The actual distance between poles
will depend upon physical conditions in the vicinity of the pole sites and other
structural factors, such as tension or weight on the conductors caused by
changes in the direction of the alignment or high wind velocities. To determine
this, HELCO shall prepare the appropriate surveys and analyses.

(d) HELCO shall design and construct a temporary 34.5 KV substation and line
facilities to allow 7.5 MW of generation from the power plant to be transmitted
into HELCO's existing 34.5 KV system. The 13.8/34.5 KV temporary and 69 KV
permanent transformer installations shall be designed and constructed by PGV as
part of the plant substation facilities. The temporary portion of the 34.5 KV
facilities not required for the second 69 KV line shall be removed by HELCO at
PGV'S own expense. PGV or PGV's contractor shall relocate the temporary 69 KV
breaker and relays to its permanent location in the 69 KV switching station.

May 23, 1990                          -1-

(e) HELCO shall design and construct appropriate modifications to the puna and
Kaumana substations to provide for proper system operation to integrate the PGV
facilities into the HELCO electrical system.

(f) HELCO shall design the Pohoiki switching station adjacent to the power
plant. The switching station shall consist of four (4) 69 KV circuit breakers
and appurtenant facilities necessary for proper operation and maintenance of the
facility. The substation arrangement shall be designed as a conventional
breaker-and-one-half scheme, with only four (4) breakers installed initially,
and will be operated as a ring bus. PGV shall construct the switching station.
HELCO shall provide construction inspection.

(g) PGV shall provide HELCO a plot of land for the life of the project, to use
as a 69 KV switching station site. PGV shall grant HELCO the necessary easements
for the 69 KV switching station and transmission lines exiting the switching
station site.

SECTION 2. ENGINEERING MONITORING

     PGV shall monitor the progress of HELCO's design activities for the
substations, the first line, and subsequently the second line. HELCO has
provided the following breakdown of its activities, with the value assigned for
each activity. This breakdown will be used for actual monitoring of the progress
of the engineering work. The actual progress value will be reported on a monthly
basis and updated monthly. Where possible HELCO shall utilize existing
specifications for material and equipment in their design and engineering work.
Format to be used:

May 23, 1990                          -2-

---------------------------------------------------------
                          EXPENDED
W.O.            JOB         TOTAL    (MONTH)   % COMPLETE
NO.    TASK   DETAIL        VALUE    TO DATE      DATE
---------------------------------------------------------
               MAN HRS
               MH COST
              MATL COST
               TOT COST
---------------------------------------------------------

     HELCO assigned value for each activity:

NO.   TASK                                                           TOTAL VALUE
--------------------------------------------------------------------------------
PHASE II (ENGINEERING DESIGN)

1.   Land Survey                                                Line 1   Line 2

     1.1 Strip Maps                                              4,902     4,850
     1.2 Identify PI                                            14,707    14,953
     1.3 Centerline Survey                                      13,073    13,336
     1.4 Final P&P Drawings                                     87,017    87,696
     1.5 Final Stakeout                                         76,804    77,593

2.   Land and ROW Acquisition

     2.1 Engr/Surv ROE                                           2,451         0
     2.2 Prep Const. ROE                                         3,677         0
     2.3 Easement Documentation                                 27,780    28,289
     2.4 Condemnation                                                0         0

3.   Line 1 Design

     3.1 Design Criteria/Calcs                                  61,280
     3.2 Structure Spotting                                     15,933
     3.3 Design Drawings                                        59,645
     3.4 Long Lead Material Specs                                2,860
     3.5 Material List                                           4,902
     3.6 Construction Cost Estimate                              6,128
     3.7 Construction Specifications                            10,213

4.   Line 2 Design

     4.1 Design Criteria/Calcs                                            54,153
     4.2 Structure Spotting                                               14,145
     4.3 Design Drawings                                                  58,195
     4.4 Long Lead Material Specs                                          2,829
     4.5 Material List                                                     4,850
     4.6 Construction Cost Estimate                                        4,850
     4.7 Construction Specifications                                       8,083

May 23, 1990                          -3-

5.   Pohoiki Substation

     5.1   Long Lead Equipment                                  47,680
     5.2   Site Investigation                                   23,840
     5.3   Station Layout                                      119,262
     5.4   Instrumentation & Relay                             119,262
     5.5   SCADA and Communication                             132,737
     5.6   Structures and Foundation                            47,680
     5.7   Construction Cost Estimate                           23,840
     5.8   Construction Specifications                          95,424

6.   Puna Supervisory                                            4,200

7.   Kaumana Substation                                                   19,564

8.   Temporary 34/5 KV Facility

     8.1   Temporary Substation                                  6,624
     8.2   Temporary 34.5 KV Line                                6,025

9.   Puna-Pohoiki Microwave                                      8,207

Total Design                                                $1,026,153   393,386

SECTION 3. PROJECT COST

(a) PGV shall reimburse HELCO for all costs and expenses HELCO incurs for the
tasks described in Section 2.

(b) This amount shall be subject to final approval by the parties upon selection
of the right of way, and selection of subconsultants.

(c) The project cost is based upon the mutually agreed scope of work described
in Section 1.

(d) HELCO shall not charge PGV for the cost related to underbuilding the first
69 KV transmission line with a 12.47 KV distribution line. These costs shall be
accounted for separately and shall be the sole responsibility of HELCO.

SECTION 4. PAYMENTS BY PGV

(a) PGV shall pay HELCO for all costs and expenses incurred by HELCO for Phase
II work in accordance with this agreement. All costs incurred by HECO for Phase
II work shall be deemed incurred by HELCO.

(b) HELCO's projected total costs for Phase II work, including costs already
incurred to the date of this agreement, but excluding

May 23, 1990                           -4-

Line 2 work, is $1,026,153.00. PGV shall pay to HELCO such amount in four (4)
equal installments of $256,538.25 the first of which shall be due upon execution
of this agreement, with each subsequent payment due ninety (90) days from the
date of the previous payment due date, subject to successful progress by HELCO
with the design work.

     PGV shall pay to HELCO the projected costs of Line 2 design totalling
$393,386.00, in four (4) equal installments of $98,346.50 each, the first of
which shall be due upon HELCO's receipt of written notice to proceed from PGV,
which shall be issued no later than June 15, 1990, with each subsequent payment
due ninety (90) days from the date of the previous payment due date, subject to
successful progress by HELCO with the design work. The parties agree to adjust
the projected costs of Line 2 design work (Tasks 1, 2, 4, and 7) to reflect the
then prevailing Line 2 costs, if appropriate.

     In the event that HELCO completes the design work (Tasks 1, 2, 4, and 7)
prior to the respective payment dates above, PGV shall pay the entire balance
due for Tasks 1, 2, 4, and 7 upon receipt of HELCO's invoice, and the completed
design plans and specifications.

(c) HELCO shall submit invoices to PGV for each payment period (i.e., the period
between the due date of each installment payment referred to above and the due
date of the immediately preceding installment payment) by the 15th day after the
payment due date for such period. Such invoices shall show actual costs incurred
to the payment due date, together with a job cost detail described in Section 5
below. These invoices are for informational purposes only and shall not be
reconciled with the installment payments referred to above until all Phase II
work has been completed.

(d) If, during the course of the Phase II work, it appears to HELCO that the
projected total costs for the Phase II work shall exceed the previous projected
total costs by more than ten percent (10%), HELCO shall prepare a change order
request for PGV's approval, which approval shall not be unreasonably withheld.
If a change order request is approved pursuant to this Subsection 4(d), the
remaining payments due from PGV shall be proportionately increased to reflect
the new project total costs. Nothing herein shall be deemed to limit HELCO to
one such change order request.

(e) Upon completion of Phase II work, HELCO shall render to PGV a statement
reconciling HELCO's actual total costs for the Phase II work covered by this
agreement with the projected total costs provided above. If HELCO's actual total
costs exceed the projected total costs based on approved change orders by PGV,
PGV shall pay to HELCO the difference within thirty (30) days of the date of
receipt of such statement, provided the procedures referred to above have been
followed and PGV has approved such additional expenditures. If HELCO's actual
total costs are less than the

May 23, 1990                           -5-

projected total costs paid by PGV, HELCO shall refund the balance to PGV,
without interest, within thirty (30) days of the date of such statement or will,
at PGV's option, apply such balance to Phase III work. HELCO's actual costs will
be determined based on the following cost categories: equipment, material and
labor costs; direct payroll; consultants and contractor costs, applicable taxes;
overhead charges; travel and lodging costs; printing costs; meeting room
rentals; costs for the preparation of maps, charts, graphs, illustrations, and
the like; and all other costs relating to Phase II work. The reconciliation
statement shall contain a breakdown of actual total costs by the foregoing cost
categories.

SECTION 5. RIGHT TO INFORMATION

(a) Records of HELCO's cost and expense incurred pursuant to this agreement and
records of accounts between PGV and HELCO, shall be kept on a generally
recognized accounting basis and shall be available to PGV or its
representative(s) for auditing and inspection during office hours and upon 5
working days notice.

(b) HELCO shall submit to PGV a monthly written progress report and, when
required under Section 4 above, a job cost detail for the payment period covered
by the accompanying invoice. All such reports shall contain sufficient detail to
allow PGV to monitor the performance of tasks under this agreement.
Specifically, the job cost detail shall list the payment amounts attributable to
HELCO, HECO, and consultants and contractors for such payment period, broken
down by cost category and describing the type of services rendered and materials
furnished by each. Upon written request from PGV, HELCO agrees to provide PGV
with copies of all invoices received by HELCO during that payment period from
its consultants and contractors.

(c) Upon written request from PGV, HELCO agrees to provide PGV with copies of
final reports and data prepared by HELCO, its consultants and contractors, in
connection with the Phase II work.

(d) Any information, including this agreement, supplied by one party to the
other party that is marked "Confidential" shall not be voluntarily disclosed to
third parties without the advance written approval of the party that has
supplied the confidential information, which approval shall not be unreasonable
withheld.

SECTION 6. TIME OF PERFORMANCE

     PGV and HELCO agree that 80% of the design and engineering of the first 69
KV transmission line (Line 1 only) interconnecting PGV's geothermal electric
plant and HELCO's Puna substation, including complete construction drawings and
specifications will be completed by June 30, 1990. HELCO agrees to provide PGV a
complete

May 23, 1990                           -6-

set of the construction drawings and specifications by June 30, 1990. The
construction drawings and specifications shall be complete and sufficient to
allow PGV to get competitive cost estimates for the purpose of reviewing HELCO's
contract price, if it so desires. The work shall commence as set forth in
Section l(b) of this agreement and shall be completed as soon as good practice
and due diligence will permit. HELCO shall use its best efforts to maintain
labor and material costs within the value estimates shown in Section 2.

SECTION 7. INDEMNIFICATION

In connection with the performance of this Agreement, or in any way incident
thereto, the parties agree to indemnify and hold the other harmless from and
against any and all liabilities, claims, losses, damages, or expenses, including
reasonable counsel fees, whether arising before or after completion of the work
hereunder, which may be incurred or sustained by such party, by reason of any
negligent act or omission on the part of the other.

SECTION 8. RIGHT OF WAY

(a) HELCO shall notify PGV 30 days in advance of its scheduled entry upon lands
owned or leased by PGV for the purpose of performing the work required by this
agreement. Such notice shall specify as precisely as possible the locations and
dates of such work. PGV shall use its best efforts to obtain, prior to the
scheduled entry and at no cost to HELCO all necessary documents, in form and
content satisfactory to HELCO granting HELCO as designee the right to enter such
lands for such purpose. If the land is leased, the documents shall include the
consent of the lessor(s) to such rights of entry. In the event such rights
and/or documents are not timely provided to HELCO, PGV agrees that delay may
result in an increase in HELCO projected total costs and subject to the
provisions of this agreement, give HELCO the right to terminate this agreement.

(b) HELCO shall obtain all other rights of entry necessary and PGV shall pay
HELCO all reasonable costs incurred in obtaining these right of entry, including
but not limited to appraisal, survey, and attorneys' fees.

SECTION 9. PARTICIPANTS AND DECISION-MAKING

(a) HELCO shall be responsible for the work to be performed. HELCO may engage
consultants and contractors with the advance approval of PGV, which approval
shall not be unreasonably withheld. HELCO shall be responsible for the work
performed by any consultants it engages.

May 23, 1990                           -7-

(b) PGV reserves the right to employ its own consultants and counsel to advise,
participate in meetings and hearings as PGV deems necessary. Such consultants or
counsel shall be paid by PGV.

(c) The parties hereto together with consultants, contractors and counsel shall
hold project meetings at such dates, times, and places as are mutually
acceptable to HELCO and PGV. Such meeting shall be held every two weeks for the
first three months of this agreement then monthly thereafter.

(d) The parties shall use their best efforts to coordinate their activities
under this agreement, including but not limited to the obtaining of permits for
the transmission line(s). HELCO recognizes the sensitive nature of activities to
obtain rights-of-way, easements and other land access rights for the
transmission line(s) and the need for regular consultation with PGV in handling
these matters.

SECTION 10. CHANGE ORDER

     If, during the course of the design work, the scope of an item of work is
altered so as to increase the item's cost by more than ten percent (10%) or more
than $10,000 or the lower of the two, HELCO shall prepare a written change order
request for PGV's approval which approval shall not be unreasonably withheld.
Failure to approve a change order shall not relieve the parties of their
responsibilities under this agreement.

SECTION 11. DISPUTE RESOLUTION

     Any dispute arising under this agreement, including but not limited to
disputes over change order requests, shall be resolved if possible by HELCO's
President and PGV's Hawaii Project Manager, and any remaining disputes shall be
resolved pursuant to Section 18(b) of the Power Purchase Contract. Unless
otherwise agreed in writing, HELCO shall continue on the Phase II work and PGV
shall continue to make all payments and perform all other obligations required
here under during the resolution of any disputes, provided, however, that if the
amount in dispute exceeds $10,000.00 then HELCO at its sole option, may cease
work until the dispute is resolved and shall have no liability therefor and PGV
may withhold its payments for such work.

SECTION 12. FORCE MAJEURE

(a) If either party is prevented from performing any of its obligation hereunder
by reason of an event of force majeure reasonably beyond its exclusive control
and not attributable to its neglect, then in any such event, such party shall be
excused from

May 23, 1990                           -8-

whatever performance is required by this agreement which is prevented by such
event to the extent so prevented, and such party shall not be liable for any
damages or loss resulting therefrom. Events of force majeure shall include but
not be limited to the following: accidents, action or inaction of any
governmental agency (including the inability to obtain permits or authorization)
lightning, rain, earthquake, wind, wind-blown water, riots, fire, flood,
invasion, insurrection, lava flow or volcanic activity, tidal wave, civil
commotion, the order of any court, judge or civil authority, war, and any act of
God or the public enemy.

(b) The party claiming an event of force majeure shall give prompt written
notice of such event to the other party. In addition, such party shall use
reasonable diligence, to the extent practicable, to limit the impact of such
event to the performance of its obligations under this agreement. Delay due to
force majeure shall delay payments accordingly.

SECTION 13. PUBLIC UTILITIES COMMISSION APPROVAL

     This agreement shall be effective on execution hereof and is subject to
termination if the Public Utilities Commission fails to issue an order
satisfactory to HELCO which approves the expenditures to be made by HELCO under
the agreement, the construction of the two transmission lines through a
residential area, and the full recovery of HELCO's firm capacity payments to PGV
and related revenue taxes. The parties agree to use their best efforts to obtain
such approval in a timely manner.

SECTION 14. ASSIGNMENT

     This agreement shall not be assigned except to lending institutions or
related entities without the written consent of the non-assigning party, whose
consent shall not be unreasonably withheld except that HELCO may assign this
agreement to its First Mortgage Bond Trustee without prior written consent. This
provision shall not be construed to prohibit either PGV or HELCO from hiring
consultants or sub contractors to perform specific work under this contract.

SECTION 15. NOTICE

     All communications and notices required by this contract shall be addressed
as follows:

May 23, 1990                           -9-

     If to PGV:

            Zvi Reiss
            101 Aupuni Street, Suite 1014-B
            Hilo, Hawaii 96720

     If to HELCO:

            Clyde Nagata
            P. 0. Box 1027
            Hilo, Hawaii 96721-1027

SECTION 16. CANCELLATION OF WORK AND TERMINATION

(a) Prior to completion of the work called for in this agreement PGV may cancel
this agreement by sending a written notice to HELCO at least 30 days in advance
of the termination date. PGV shall remain liable to HELCO for actual costs
incurred up to the date of termination. Upon cancellation, HELCO shall render a
reconciliation statement of actual and projected cost. If the payments made are
insufficient to cover HELCO's actual cost, PGV shall pay to HELCO the difference
within 30 days of the date of receipt of such statement. If the payments exceed
HELCO's actual cost the excess shall be rebated to PGV within 30 working days
from the time the excess is determined. Refunds are limited to the amount of the
excess payments and no interest will be paid in any refund.

(b) HELCO may terminate this agreement if the Public Utilities Commission of
the State of Hawaii fails to issue a decision and order in accordance with
Section 13 of this agreement, including approval of the expenditures to be made
by HELCO under this agreement, or if PGV commits a material breach of any
provision of the agreement. HELCO may also terminate the agreement if PGV fails
to obtain rights of entry to the lands owned or leased by PGV necessary for the
purpose of performing the work called for by this agreement. Before HELCO's
termination is effective PGV shall be given 180 days to secure the necessary
order or right of entry. Upon termination PGV shall be liable to HELCO for all
costs incurred up to the date of termination. This section shall survive in the
event of termination.

(c) In the event of a termination of this agreement PGV shall have the right to
all reports, designs and documents completed pursuant to this agreement up to
the date of termination. PGV shall be free from any further obligation to HELCO
and may complete the design work at its sole option.

May 23, 1990                          -10-

SECTION 17. ENTIRE AGREEMENT

     This agreement shall constitute the entire agreement between the parties
and shall supersede all prior contracts, proposals, negotiations and letters of
intent, whether written or oral.

     This agreement shall be binding upon and inure to the benefit of the
parties hereto and their respective successors, legal representatives, and
permitted assigns.

PGV                                        HELCO

By: /s/ Illegible                              By: /s/ Illegible    6/7/90
    ------------------------------------       ---------------------------
    Its:                                       Its:President

                                           By: /s/ Illegible
                                               ---------------------------------
                                               Its:

May 23, 1990                          -11-

                AGREEMENT TO CONSTRUCT 69 KV TRANSMISSION LINES,
              A SUBSTATION AT POHOIKI, MODIFICATIONS TO SUBSTATIONS
              AT PUNA AND KAUMANA, AND A TEMPORARY 34.5 FACILITY TO
                INTERCONNECT PGV'S GEOTHERMAL ELECTRIC PLANT WITH
                               HELCO'S SYSTEM GRID
                                    PHASE III

          SECTION 1. SCOPE OF WORK

          (a) PGV is constructing a 25 MW, geothermal electric plant at Pohoiki
in the Puna district of the island of Hawaii. To connect the geothermal electric
plant with HELCO's grid, two new transmission lines and interconnection
facilities capable of carrying 25 MW of electrical energy at 69 KV must be
constructed. PGV has contracted with HELCO for the design and engineering of the
transmission lines and related substations. PGV is hereby contracting with HELCO
for the construction of the transmission lines and related substation
modifications in accordance with the construction drawings and specifications
prepared by HELCO pursuant to the contract to design and engineer the
transmission lines and related substations.

          (b) Upon notice to proceed from PGV, HELCO will furnish and install
two approximately 18-mile 69 KV transmission lines together with all
modifications required at the Puna and Kaumana Substations and the 34.5
temporary switching facility at Pohoiki in accordance with the rules of the
Public Utilities Commission, State of Hawaii ("PUC").

          (c) PGV shall at its sole option and discretion, purchase and furnish
to HELCO long lead items required for HELCO's scope of work. HELCO shall provide
PGV a list which will include specifications, drawings, and potential suppliers
of items needed. The purchasing will be done by PGV with HELCO's input for
evaluation of the products. HELCO shall approve all purchase orders before
purchasing and such approval shall not be unreasonably withheld. HELCO shall
take all responsibility for the execution and acceptance of all such purchase
orders. Any payments made by PGV for these items will be applied to the
construction cost.

          (d) The proposed 69 KV transmission lines will consist of three
aluminum-alloy conductors which will be supported by horizontal post insulators
or suspension insulators attached to a single wooden pole. The poles will be
spaced approximately 300 to 500 feet apart and will carry a steel shield wire at
the pole top for protection against lightning. The actual distance between poles
will be in accordance with the plans and specifications. The plans and
specifications will be prepared after a field inspection of the alignment based
on the plan view map or maps. HELCO shall identify all points of intersection
(PI's). HELCO shall acquire

May 23, 1990                          -1-

the necessary right of ways and easements in accordance with the metes and
bounds descriptions and right-of-way maps as prepared to obtain right of ways
and anchor easements. PGV shall construct the permanent 69 KV switching station
according to HELCO design and construction specifications and PUC rules.
Construction shall proceed to meet time schedules specified in the Purchase
Power Contract. PGV's contractor shall be approved by HELCO and such approval
shall not be unreasonably withheld. PGV's contractor shall allow HELCO personnel
access to facilities for installation of supervisory control and communication
equipment.

          (e) HELCO shall construct the work in accordance with a complete set
of construction drawings and specifications for the 69 KV lines and substations
prepared in accordance with the agreement for Phase II as defined below. The
drawings and specifications shall be specific enough to allow PGV to monitor the
actual construction.

          (f) HELCO shall construct the temporary 34.5 substation and line
facilities to allow 7.5 MW of generation from the power plant to be transmitted
into HELCO's existing 34.5 system. The 13.8/34.5 temporary and 69 KV permanent
transformer installations shall be designed and constructed by PGV as part of
the plant substation facilities. The temporary portion of the 34.5 facilities
not required for the second 69 KV line shall be removed by HELCO at PGV's
expense.

          (g) HELCO shall design and construct appropriate modifications to the
Puna and Kaumana substations to provide for proper system operation to integrate
the PGV facilities into the HELCO electrical system.

          (h) HELCO shall design the Pohoiki switching station adjacent to the
power plant. The switching station shall tentatively consist of four (4) 69 KV
circuit breakers and appurtenant facilities necessary for proper operation and
maintenance of the facility. The substation arrangement shall be designed as a
conventional breaker-and-one-half scheme, with only four (4) breakers installed
initially, and shall be operated as a ring bus. PGV shall construct the Pohoiki
switching station and upon HELCO's acceptance of the completed switching
station, PGV shall transfer title to the equipment and facility (switching
station) free and clear of all liens and encumbrances (except those created by
action of HELCO, if any) to HELCO. HELCO shall assume all liability for the
station upon receipt of title to the equipment and facility, except as provided
in any agreements or amendments to such agreements assigned to PGV, to which
HELCO is a party thereof. Such agreements include but are not limited to that
certain Purchase Power Contract for Unscheduled Energy Made Available from a
Qualifying Facility, dated March 24, 1986 ("Purchase Power Contract"); that
certain side letter agreement, dated March 21, 1986, regarding the Purchase
Power Contract; that

May 23, 1990                           -2-

certain agreement, dated June 27, 1986, regarding Phase I work on
interconnection facilities; and that certain letter agreement, dated January 9
1987, regarding installation of line extension of Kapoho drillsite
(collectively, the "Power Purchase Agreements").

          (i) HELCO's responsibility shall end at PGV's insulator stack on PGV's
dead-end structure on PGV's side of the separating fence in the Pohoiki
switching station. PGV shall provide HELCO with a right of entry and easements
on its land and sites to install its facilities, metering systems, and any other
work required for proper installation.

          (j) The design and engineering requirements shall include a complete
material list broken down to the provisions for each individual pole. HELCO
shall provide PGV prior to the completion of the construction drawings and
specifications an approximate number and size of poles, insulators and conductor
specific enough to order these and other long lead time items.

          (k) The estimated cost of the work shall be derived from the
following: HELCO'S costs shall be determined based on the following cost
categories: equipment, material and labor costs; direct payroll; consultant and
contractor charges; applicable taxes; overhead charges; travel and lodging
costs; printing costs; meeting room rentals; costs for the preparation of maps,
charts, graphs, illustrations, and the like; and all other costs related to the
work.

          SECTION 2. CONSTRUCTION ESTIMATE

          (a) Construction Monitoring. HELCO recognizes that PGV requires a
progress monitoring system of the construction for its own needs and to provide
funding of HELCO's work. The following breakdown of work, values and
expenditures to date and percentage of completion shall be provided on a monthly
basis to monitor the work progress, as a result of the bimonthly meetings.

          (b) HELCO has provided the following breakdown for its activities
together with an assigned value of each activity. This breakdown shall be used
for actual monitoring of the progress of the construction work. The actual
progress value shall be reported on a monthly basis and updated monthly. Format
to be used:

May 23, 1990                           -3-

                                  EXPENDED
W.O.            JOB       TOTAL    (MONTH)   % COMPLETE
 No.   TASK   DETAIL      VALUE    TO DATE     TO DATE
-------------------------------------------------------
              MAN HRS
              MH COST
              MATL COST
              TOT COST
-------------------------------------------------------

              HELCO assigned value for each activity:

NO.   TASK                                                           TOTAL VALUE
---   ----                                                           -----------
1.    Puna Substation Upgrading                                         438,040

2.    Pohoiki Substation (testing, setting, meters, and RTU system)      60,000

3.    Temporary 34.5 KV Facility                                         97,290

4.    Temporary 34.5 KV Line and Puna Relay Modification                117,630

5.    Line 1 Construction

      5.1 Material Purchase                                           1,518,710
      5.2 Stakeout, Clearing, Access Road                                20,018
      5.3 Dig Poles/Anchors                                             703,080
      5.4 Frame/Erect Poles                                           1,015,401
      5.5 Stringing                                                     436,719
      5.6 Mobilize/Demobilize                                         (Included)

6.    Puna Supervisory                                                   26,800

7.    Puna-Pohoiki-Kaumana-Kanoelehua Microwave                         346,816

      Subtotal-Work Associated with Line 1                           $4,780,504

8.    Line 2 Construction

      8.1 Material Purchase                                           1,707,045
      8.2 Stakeout, Clearing, Access Road                                10,103
      8.3 Dig Poles/Anchors                                             626,400
      8.4 Frame/Erect Poles                                             926,670
      8.5 Stringing                                                     397,260
      8.6 Mobilize/Demobilize                                         (Included)

May 23, 1990                           -4-

9.    Kaumana Substation                                                 50,000
      Subtotal-Work Associated with Line 2                           $3,717,478
      Total Project Cost                                             $8,497,982

          (c) The cost of materials, machinery, equipment, labor, contingency
and escalation allowances and all other items of cost related to the
construction of the project whether furnished by PGV, HELCO, or others are
included in the estimate in Section 2. If PGV elects to purchase materials,
equipment, or provide other services, the amount of the material or equipment
purchased or services provided shall be credited against the construction cost
owed by PGV to HELCO under this agreement.

          (d) PGV shall reimburse HELCO for all cost and expenses HELCO incurs
for the tasks described in Section 2.

          (e) The project costs and construction estimate in Section 2 are based
upon the mutually agreed scope of work described in Section 1.

          (f) The construction value of underbuilding of the first 69 KV
transmission line with a 12.47 KV distribution line shall be accounted for
separately and shall be the sole responsibility of HELCO.

          SECTION 3. PAYMENT

          (a) PGV shall pay HELCO for all costs and expenses incurred by HELCO
for Phase III work in accordance with this agreement. All costs incurred by HECO
and HELCO's contractors for Phase III work shall be deemed incurred by HELCO.

          (b) PGV shall pay HELCO the projected costs of Line 1 construction,
totaling $4,780,504 in four equal installments of $1,195,126 commencing on
notice to proceed for Line 1 and related work. These payments shall be
proportional to the percentage of completion of the tasks set forth in Section 2
as reconciled on a quarterly basis. In the event the installments paid exceed
the percentage of tasks completed by more than 20 percent, PGV shall have the
right to adjust subsequent installments until the deviation is corrected. In the
event PGV and HELCO agree to a lump sum payment or other method of payment, the
method of payment agreed to shal1 supersede this paragraph.

          PGV shall pay HELCO the projected costs of Line 2 construction
totalling $3,717,478.00 in four equal installments of $929,369.50 each,
commencing from the date that HELCO gives PGV

May 23, 1990                           -5-

written notice of commencement of construction, with each subsequent payment due
ninety (90) days from the date of the previous payment due date subject to
successful progress by HELCO with the construction work. The parties agree to
adjust the projected costs of Task 8 and 9 to reflect the then prevailing costs,
if appropriate.

          In the event that HELCO completes the construction of Line 2 prior to
the respective payment dates stated above, PGV shall pay the entire balance due
for such work within 30 days of receipt of HELCO's invoice.

          (c) Materials purchased by PGV shall be paid for directly by PGV to
vendors according to PGV purchasing system.

          (d) HELCO shall obtain waivers of lien from all suppliers and
contractors for all work for which a progress payment has been made by HELCO. A
final lien release shall be obtained at time of final payment to hold PGV clear
from any claims and liens.

          (e) In the event that HELCO uses for any purpose, other than for the
purpose of interconnecting PGV's facility with the HELCO grid, any of the
transmission lines paid for pursuant to this agreement PGV and HELCO shall
mutually determine the extent to which HELCO has received a benefit by such use.
The parties shall mutually determine the monetary value of such benefit and the
manner in which such amount shall be paid by HELCO to PGV. In the event that the
parties cannot mutually agree on the benefit to HELCO or on the monetary value
of the benefit, then either party may petition the Public Utilities Commission
of the State of Hawaii ("PUC") for resolution of this matter. Notwithstanding
the foregoing, any payments to PGV under this provision shall be subject to the
approval of the PUC and no payment to PGV shall be valid or required except to
the extent approved by the PUC. It is contemplated that this provision shall
continue after the completion of the construction of the transmission lines
contemplated by this agreement.

          SECTION 4. INVOICING PROCEDURES

          HELCO shall submit invoices to PGV for each payment period by the 30th
day after the payment due date for such period based on the monthly status
report. Such invoices shall show actual costs incurred to the payment due date,
together with a job cost detail described in Section 2.

May 23, 1990                           -6-

          SECTION 5. RIGHT TO INFORMATION

          (a) Records of HELCO's cost and expense incurred pursuant to this
agreement and records of accounts between PGV and HELCO, shall be kept on a
generally recognized accounting basis and shall be available to PGV or its
representative(s) for auditing and inspection during office hours and upon 5
working days notice.

          (b) HELCO shall submit to PGV a monthly written progress report and a
job cost detail for the payment period covered by the accompanying invoice. All
such reports shall contain sufficient detail to allow PGV to monitor the
performance of tasks under this agreement. Specifically, the job cost detail
shall list the cost amounts paid and attributable to HELCO, HECO, and
consultants and contractors for such payment period, broken down by cost
category and describing the type of services rendered and materials furnished by
each. Upon written request from PGV, HELCO agrees to provide PGV with copies of
all invoices received by HELCO during that payment period from its consultants,
contractors and vendors.

          (c) Upon written request from PGV, HELCO agrees to provide PGV with
copies of final reports and data prepared by HELCO, its consultants,
contractors, and vendors in connection with the Phase III work.

          (d) Any information, including this agreement, supplied by one party
to the other party that is marked "CONFIDENTIAL" shall not be voluntarily
disclosed to third parties without the advance written approval of the party
that has supplied the confidential information, which approval shall not be
unreasonably withheld.

          SECTION 6. TIME OF PERFORMANCE

          PGV and HELCO agree that the construction of each 69 KV transmission
line interconnecting PGV's geothermal electric plant and HELCO's Puna Substation
and the related substation construction called for in the scope of work and
identified in the construction estimate, in Section 2 shall commence upon the
latter of HELCO's receipt of a written notice to proceed from PGV and/or the
PUC's approval for such line. The work for each line shall be completed 12
months after commencement or as soon as good practice and due diligence will
permit. PGV shall issue the written notice to proceed with the construction of
Line 2 within seven (7) months of the issuance of the notice to proceed for Line
1 construction. HELCO shall use its best efforts to maintain labor and material
costs within the value estimates shown in Section 2.

May 23, 1990                           -7-

          SECTION 7. INSURANCE

          (a) Workers Compensation. HELCO and PGV, shall at their own expense
procure and maintain in full force at all times during the term of this
Agreement, Workers Compensation, Temporary Disability, and other similar
insurance required by state or federal laws. Permissible self-insurance will be
acceptable subject to submission of a copy of appropriate governmental
authorization and qualification by the self-insuring party. In addition, PGV and
HELCO shall at their own expense procure and maintain in full force at all times
during the term of this Agreement, Employers Liability insurance with minimum
limits for bodily injury from accident of FIVE HUNDRED THOUSAND DOLLARS
($500,000) - each accident; for bodily injury from disease of FIVE THOUSAND
HUNDRED DOLLARS ($500,000.00) - each policy limit.

          (b) Comprehensive General Liability Insurance. HELCO and PGV, shall,
at their own expense procure and maintain in full force at all times during the
term of this Agreement, Comprehensive General Liability insurance with bodily
injury and broad form property damage combined single limits of liability of at
least TEN MILLION DOLLARS ($10,000,000.00) for any one occurrence. Such
insurance will also include coverage in like amount for premises, operations,
independent contractors, completed operations, and contractual liability.

          If any of the work performed under this Agreement includes blasting,
excavating, pile driving or caisson work, moving shoring, underpinning, razing,
or demolition of any structure or removal or rebuilding of any structural
support thereof, or any subsurface or underground work, the Comprehensive
General Liability insurance policy shall include coverage for the explosion,
collapse and underground hazards in an amount commensurate with the risk
involved.

          (c) Automobile Liability Insurance. HELCO and PGV shall at their own
expense procure and maintain in full effect at all times during the term of this
Agreement, Automobile Insurance with bodily injury limits of at least ONE
MILLION DOLLARS ($1,000,000) per person, TWO MILLION DOLLARS ($2,000,000) per
occurrence and property damage limits of at least ONE MILLION DOLLARS
($1,000,000) per accident.

          (d) Waiver of Subrogation. HELCO and PGV hereby waives and will cause
its insurers to waive all rights of subrogation which each party may have
against the other.

          (e) Additional Insured. All HELCO and PGV insurance policies required
by this agreement shall name the other as an additional insured (except Workers
Compensation).

May 23, 1990                           -8-

          (f) Certificates of Insurance. Upon the signing of this Agreement, the
parties shall file with each other certificates of insurance certifying that
each of the foregoing insurance coverage is in force, and further providing that
each party will give written notice to the other of any material change in or
cancellation of the policy thirty (30) days prior to such change or
cancellation.

          SECTION 8. INDEMNIFICATION

          In connection with the performance of this Agreement, or in any way
incident thereto, the parties agree to indemnify and hold the other harmless
from and against any and all liabilities, claims, losses, damages, or expenses,
including reasonable counsel fees, whether arising before or after completion of
the work hereunder, which may be incurred or sustained by such party, by reason
of any negligent act or omission on the part of the other.

          SECTION 9. RIGHT OF ENTRY

          (a) HELCO shall notify PGV 30 days in advance of its scheduled entry
upon lands owned or leased by PGV for the purpose of performing the work
required by this agreement. Such notice shall specify as precisely as possible
the locations and dates of such work. PGV shall use its best efforts to obtain,
prior to the scheduled entry and at no cost to HELCO all necessary documents, in
form and content satisfactory to HELCO granting HELCO as designee the right to
enter such lands for such purpose. If the land is leased, the documents shall
include the consent of the lessor(s) to such right of entry. In the event such
documents are not timely provided, PGV understands that delay may result in an
increase in HELCO projected total costs and subject to the provisions of this
agreement, give HELCO the right to terminate this agreement.

          (b) HELCO shall obtain all other rights of entry necessary and PGV
shall pay HELCO all reasonable costs incurred in obtaining these right of entry,
including but not limited to appraisal, survey and attorneys' fees.

          SECTION 10. PARTICIPANTS AND DECISION-MAKING

          HELCO shall be responsible for the construction work to be performed.
HELCO may engage consultants and contractors with the advance approval of PGV,
which approval shall not be unreasonably withheld. HELCO shall be responsible
for the work performed by any consultants it engages.

May 23, 1990                           -9-

          PGV reserves the right to employ its own consultants and counsel to
advise, participate in meetings and hearings as PGV deems necessary. Such
consultants or counsel shall be paid by PGV.

          The parties hereto together with consultants, contractors and counsel
will hold project meetings at such dates, times, and places as are mutually
acceptable to HELCO and PGV. Such meetings shall be held every two weeks in
HELCO or PGV facilities on the island of Hawaii unless otherwise agreed.

          The parties shall use their best efforts to coordinate their
activities under this agreement, including but not limited to the obtaining of
permits for the transmission line(s). HELCO recognizes the sensitive nature of
activities to obtain rights-of-way, easements and other land access rights for
the transmission line(s) and the need for regular consultation with PGV in
handling these matters.

          SECTION 11. CHANGE ORDER

          If, during the course of the construction work, the scope of an item
of work is altered so as to increase the item's cost by more than ten percent
(10%) or more than $10,000, whichever is lower, HELCO shall prepare a written
change order request for PGV's approval which approval shall not be unreasonably
withheld. If the change order is at HELCO's request, approval shall be at the
discretion of PGV. Failure to approve a change order shall not relieve the
parties of their responsibilities under this agreement.

          SECTION 12. DISPUTE RESOLUTION

          Any dispute arising under this agreement, including but not limited to
disputes over change order requests, shall be resolved if possible by HELCO's
President and PGV's Hawaii Project Manager, and any remaining disputes shall be
resolved pursuant to Section 18(b) of the Power Purchase Contract. Unless
otherwise agreed in writing, HELCO shall continue on the Phase III work and PGV
shall continue to make all payments and perform all other obligations required
hereunder during the resolution of any disputes, provided, however, that if the
amount in dispute exceeds $10,000.00 then HELCO at its sole option, may cease
work until the dispute is resolved and shall have no liability therefor and PGV
may withhold payments for such work.

          SECTION 13. FORCE MAJEURE

          (a) If either party is prevented from performing any of its obligation
hereunder by reason of an event of force majeure reasonably beyond its exclusive
control and not attributable to its

May 23, 1990                          -10-

neglect, then in any such event, such party shall be excused from whatever
performance required by this agreement is prevented by such event to the extent
so prevented, and such party shall not be liable for any damages or loss
resulting therefrom. Events of force majeure shall include but not be limited to
the following: accidents, action or inaction of any governmental agency
(including the inability to obtain permits or authorization) lightning, rain,
earthquake, wind, wind-blown water, riots, fire, flood, invasion, insurrection,
lava flow or volcanic activity, tidal wave, civil commotion, the order of any
court, judge or civil authority, war, and any act of God or the public enemy.

          (b) The party claiming an event of force majeure shall give prompt
written notice of such event to the other party. In addition, such party shall
use reasonable diligence, to the extent practicable, to limit the impact of such
event to the performance of its obligations under this agreement. Delay due to
force majeure shall delay payments accordingly.

          SECTION 14. PUBLIC UTILITIES COMMISSION APPROVAL

          This agreement shall be effective on execution hereof and is subject
to termination if the Public Utilities Commission fails to issue an order
satisfactory to HELCO which approves the expenditures to be made by HELCO under
the agreement, the construction of the two transmission lines through a
residential area, the full recovery of HELCO's firm capacity payments to PGV and
related revenue taxes. The parties agree to use their best efforts to obtain
such approval in a timely manner.

          SECTION 15. ASSIGNMENT

          This contract shall not be assigned except to lending institutions or
related entities without the written consent of the non-assigning party, whose
consent shall not be unreasonably withheld except that HELCO may assign this
agreement to its First Mortgage Bond Trustee without prior written consent. This
provision shall not be construed to prohibit either PGV or HELCO from hiring
consultants or subcontractors to perform specific work under this contract.

          SECTION 16. NOTICE

          All communications and notices required by this contract shall be
addressed as follows:

May 23, 1990                          -11-

     If to PGV:

               Zvi Reiss
               101 Aupuni Street, Suite 1014-B
               Hilo, Hawaii 96720

     If to HELCO:

               Clyde Nagata
               P. O. Box 1027
               Hilo, Hawaii 96721-1027

          SECTION 17. CANCELLATION OF WORK AND TERMINATION

          (a) Prior to completion of the work called for in this agreement PGV
may cancel this agreement by sending a written notice to HELCO at least 30 days
in advance of the termination date. PGV shall remain liable to HELCO for actual
costs incurred up to the date of termination. Upon cancellation, HELCO shall
render a reconciliation statement of actual and projected cost. If the payments
made are insufficient to cover HELCO's actual cost, PGV shall pay to HELCO the
difference within 30 days of the date of receipt of such statement. If the
payments made exceed HELCO's actual cost the excess shall be rebated to PGV
within 30 days of notice of such excess amount.

          (b) HELCO may terminate this agreement if the Public Utilities
Commission of the State of Hawaii fails to issue a decision and order in
accordance with Section 14 of this agreement, including approval of the
expenditures to be made by HELCO under this agreement, or if PGV commits a
material breach of any provision herein. HELCO may also terminate the agreement
if PGV fails to obtain right of entry to the lands owned or leased by PGV
necessary for the purpose of performing the work called for by this agreement.
Before HELCO's termination shall be effective, PGV shall be given 180 days to
secure the necessary order or right of entry. Upon termination PGV shall be
liable to HELCO for all costs incurred up to the date of termination. This
section shall survive in the event of termination.

          (c) In the event of a termination of this agreement PGV shall have the
right to complete the work commenced under this agreement. PGV shall also have
the right to purchase from HELCO at HELCO's invoice price, all material
purchased for the construction of the improvements contemplated by this
agreement.

May 23, 1990                          -12-

          SECTION 18. INSPECTION OF THE POHOIKI SUBSTATION

          The construction of the Pohoiki substation shall be subject to the
following conditions:

          (a) Inspection by HELCO. All materials and equipment furnished and
work performed by PGV shall be properly inspected by PGV and shall at all times
be subject to inspection and testing by HELCO. Whenever requested, PGV shall
furnish HELCO with full information as to the progress of the work in its
various parts. If any of the work should be covered up without approval or
consent of HELCO, or without the necessary testing and inspection, it shall, if
required by HELCO or by public authorities, be uncovered for examination and
testing, and recovered, at PGV's expense.

          (b) Defective Materials or Work. Neither the failure to make any
inspection or test nor to discover defective workmanship, materials, or
equipment, nor acceptance of the work shall relieve PGV from its obligation to
do and complete the work in accordance with the specifications and drawings. If
at any time before final completion and acceptance of the work, HELCO determines
that any part of the work is defective or deficient or in any way fails to
conform to the specifications or PUC rules or drawings or that any materials or
equipment which PGV has used or proposes to use in the work are unsound or
improper or otherwise fail to conform to the specifications or PUC rules, then
HELCO may reject such defective or deficient work or unsound or nonconforming
materials or equipment and to require PGV to redo and make good all such
defective or deficient work and to replace all condemned materials or equipment
with proper materials and equipment, at PGV's sole expense. Where PGV declines
to redo and make good all such defective or deficient work and to replace all
condemned materials or equipment with proper materials and equipment, PGV shall
accept the costs (including applicable overhead) for correcting such defective
or deficient work performed by others.

          (c) Unsatisfactory Progress. Failure of PGV to comply with the
instructions of HELCO may be grounds for determination by HELCO that PGV is not
prosecuting its work with such diligence as will assure completion within the
times specified. Upon such determination, HELCO may suspend or terminate PGV's
right to proceed with the performance of the work, or any separable part
thereof.

          SECTION 19. ENTIRE AGREEMENT

          This agreement shall constitute the entire agreement between the
parties and shall supersede all prior contracts, proposals, negotiations and
letters of intent, whether written or oral.

May 23, 1990                          -13-

          This agreement shall be binding upon and inure to the benefit of the
parties hereto and their respective successors, legal representative, and
permitted assigns.

PGV                                          HELCO

 BY: /s/ Illegible                           BY: /s/ Illegible
     -------------------------------------       -------------------------------
     Its:                                        Its: President

                                             BY: /s/ Illegible
                                                 -------------------------------
                                                 Its:

May 23, 1990                          -14-

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