Document:

<PAGE>   1
                                                                  Exhibit 4.7(a)

                            FACILITY LEASE AGREEMENT
                                     (BA1/2)

                            Dated as of July 20, 2000

                                     between

                                MONTANA OL3 LLC,
                                 as Owner Lessor

                                       and

                                PPL MONTANA, LLC,
                               as Facility Lessee

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

                        COLSTRIP GENERATING UNITS 1 AND 2
                          AND RELATED COMMON FACILITIES

CERTAIN OF THE RIGHT, TITLE AND INTEREST OF THE OWNER LESSOR IN AND TO THIS
LEASE AND THE RENT DUE AND TO BECOME DUE HEREUNDER HAVE BEEN ASSIGNED AS
COLLATERAL SECURITY TO, AND ARE SUBJECT TO A SECURITY INTEREST IN FAVOR OF THE
CHASE MANHATTAN BANK, NOT IN ITS INDIVIDUAL CAPACITY BUT SOLELY AS LEASE
INDENTURE TRUSTEE UNDER AN INDENTURE OF TRUST, MORTGAGE AND SECURITY AGREEMENT
(BA1/2), DATED AS OF JULY 20, 2000, BETWEEN SAID LEASE INDENTURE TRUSTEE, AS
SECURED PARTY, AND THE OWNER LESSOR, AS DEBTOR. SEE SECTION 21 HEREOF FOR
INFORMATION CONCERNING THE RIGHTS OF THE ORIGINAL HOLDER AND THE HOLDERS OF THE
VARIOUS COUNTERPARTS HEREOF.
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                                TABLE OF CONTENTS

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<S>                      <C>                                                                                            <C>
SECTION 1.               DEFINITIONS............................................................................        2

SECTION 2.               LEASE OF THE UNDIVIDED INTEREST........................................................        2

         Section 2.1.          Lease............................................................................        2

         Section 2.2.          Personal Property................................................................        2

SECTION 3.               FACILITY LEASE TERM AND RENT...........................................................        2

         Section 3.1.          Interim Lease Term...............................................................        2

         Section 3.2.          Basic Lease Term.................................................................        2

         Section 3.3.          Rent.............................................................................        3

         Section 3.4.          Supplemental Lease Rent..........................................................        4

         Section 3.5.          Adjustment of Lease Schedules....................................................        4

         Section 3.6.          Manner of Payments...............................................................        6

SECTION 4.               DISCLAIMER OF WARRANTIES; RIGHT OF QUIET ENJOYMENT.....................................        6

         Section 4.1.          Disclaimer of Warranties.........................................................        6

         Section 4.2.          Quiet Enjoyment..................................................................        8

SECTION 5.               RETURN OF UNDIVIDED INTEREST...........................................................        8

         Section 5.1.          Return...........................................................................        8

         Section 5.2.          Condition Upon Return............................................................        9

         Section 5.3.          Environmental Reports............................................................        9

SECTION 6.               LIENS..................................................................................       10

SECTION 7.               MAINTENANCE; REPLACEMENTS OF COMPONENTS................................................       10

         Section 7.1.          Maintenance......................................................................       10

         Section 7.2.          Replacement of Components........................................................       11

SECTION 8.               MODIFICATIONS..........................................................................       11

         Section 8.1.          Required Modifications...........................................................       11

         Section 8.2.          Optional Modifications...........................................................       12

         Section 8.3.          Title to Modifications...........................................................       12

SECTION 9.               NET LEASE..............................................................................       13

SECTION 10.              EVENTS OF LOSS.........................................................................       14

         Section 10.1.         Occurrence of Events of Loss.....................................................       14

         Section 10.2.         Payment of Termination Value; Termination of Periodic Lease Rent and
                               Renewal Lease Rent...............................................................       15
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                                TABLE OF CONTENTS
                                   (CONTINUED)

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<S>                      <C>                                                                                         <C>
         Section 10.3.         Rebuild or Replace...............................................................       17

         Section 10.4.         Application of Payments Not Relating to an Event of Loss.........................       19

SECTION 11.              INSURANCE..............................................................................       20

         Section 11.1.         Property Insurance...............................................................       20

         Section 11.2.         Liability Insurance..............................................................       20

         Section 11.3.         Provisions with Respect to Insurance.............................................       20

         Section 11.4.         Reports..........................................................................       21

         Section 11.5.         Additional Insurance by Owner Lessor.............................................       22

         Section 11.6.         Waiver of Requirements...........................................................       22

         Section 11.7.         Application of Insurance Proceeds................................................       23

SECTION 12.              INSPECTION.............................................................................       24

SECTION 13.              TERMINATION OPTION FOR BURDENSOME EVENTS...............................................       24

         Section 13.1.         Election to Terminate............................................................       24

         Section 13.2.         Solicitation of Offers; Payments Upon Termination................................       25

         Section 13.3.         Procedure for Exercise of Termination Option.....................................       26

         Section 13.4.         Assumption of the Lessor Note....................................................       27

         Section 13.5.         Certain Conditions to Termination................................................       27

SECTION 14.              TERMINATION FOR OBSOLESCENCE...........................................................       27

         Section 14.1.         Termination......................................................................       27

         Section 14.2.         Solicitation of Offers...........................................................       28

         Section 14.3.         Right of Owner Lessor to Retain such Unit Interest...............................       28

         Section 14.4.         Procedure for Exercise of Termination Option.....................................       29

         Section 14.5.         Certain Conditions to Termination................................................       31

SECTION 15.              LEASE RENEWAL..........................................................................       32

         Section 15.1.         First Wintergreen Renewal Lease Term.............................................       32

         Section 15.2.         Second Wintergreen Renewal Lease Term............................................       32

         Section 15.3.         Fair Market Value Renewal Lease Terms............................................       33

         Section 15.4.         Renewal Lease Rent for the Renewal Lease Terms...................................       33

         Section 15.5.         Determination of Fair Market Rental Value........................................       34

         Section 15.6.         Simultaneous Renewals............................................................       35

SECTION 16.              EVENTS OF DEFAULT......................................................................       35

SECTION 17.              REMEDIES...............................................................................       37
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                                TABLE OF CONTENTS
                                   (CONTINUED)

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<S>                      <C>                                                                                         <C>
         Section 17.1.         Remedies for Lease Event of Default..............................................       37

         Section 17.2.         Cumulative Remedies..............................................................       40

         Section 17.3.         No Delay or Omission to be Construed as Waiver...................................       40

         Section 17.4.         Significant Lease Default; Drawings Under Qualifying Letter of Credit............       40

SECTION 18.              SECURITY INTEREST AND INVESTMENT OF SECURITY FUNDS.....................................       41

SECTION 19.              FACILITY LESSEE'S RIGHT TO SUBLEASE....................................................       41

SECTION 20.              OWNER LESSOR'S RIGHT TO PERFORM........................................................       42

SECTION 21.              SECURITY FOR OWNER LESSOR'S OBLIGATION TO THE LEASE INDENTURE TRUSTEE..................       42

SECTION 22.              WAIVER OF RIGHT TO PARTITION...........................................................       43

SECTION 23.              MISCELLANEOUS..........................................................................       43

         Section 23.1.         Amendments and Waivers...........................................................       43

         Section 23.2.         Notices..........................................................................       43

         Section 23.3.         Survival.........................................................................       45

         Section 23.4.         Successors and Assigns...........................................................       45

         Section 23.5.         "True Lease".....................................................................       45

         Section 23.6.         Business Day.....................................................................       45

         Section 23.7.         Governing Law....................................................................       45

         Section 23.8.         Severability.....................................................................       45

         Section 23.9.         Counterparts.....................................................................       46

         Section 23.10.        Headings and Table of Contents...................................................       46

         Section 23.11.        Further Assurances...............................................................       46

         Section 23.12.        Effectiveness....................................................................       46

         Section 23.13.        Limitation of Liability..........................................................       46

         Section 23.14.        Measuring Life...................................................................       46
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                                TABLE OF CONTENTS
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<S>                                                                                         <C>
SCHEDULE 1 - PERIODIC LEASE RENT PERCENTAGES
SCHEDULE 2 - TERMINATION VALUE PERCENTAGES
SCHEDULE 3 - ALLOCATION OF PERIODIC LEASE RENT
EXHIBIT A - DESCRIPTION OF COLSTRIP SITE
EXHIBIT B - DESCRIPTION OF THE FACILITY
EXHIBIT C - DESCRIPTION OF THE COMMON FACILITIES -
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                            FACILITY LEASE AGREEMENT
                                     (BA1/2)

         This FACILITY LEASE AGREEMENT (BA1/2), dated as of July 20, 2000 (this
"Facility Lease"), between MONTANA OL3 LLC, a Delaware limited liability company
(the "Owner Lessor"), and PPL MONTANA, LLC, a Delaware limited liability company
(the "Facility Lessee" or "PPL Montana").

                                   WITNESSETH:

         WHEREAS, Units 1 and 2 and the Common Facilities are located on the
Units 1 and 2 Site and the Common Facilities Site, respectively, which are more
particularly described on Exhibit A hereto;

         WHEREAS, rights and obligations as tenants-in-common of the co-owners
of the Units 1 and 2 Site and the Common Facilities Site and all improvements
constructed, and all personal property situated, thereon, including Units 1 and
2 and the Common Facilities, are governed by the Ownership and Operating
Agreements 1-2 and the Common Facilities Agreement;

         WHEREAS, pursuant to the Site Lease and Sublease, PPL Montana has
leased an undivided interest in the Units 1 and 2 Site and the Common Facilities
Site, each of which is described in Exhibit B hereto, to the Owner Lessor (which
undivided interests are collectively referred to herein as the "Ground Interest"
and are described in more detail in the definition of such term in Appendix A to
the Participation Agreement referred to in Section 1); and the Owner Lessor has
subleased the Ground Interest to PPL Montana for the term equal to the term of
this Facility Lease, including any renewals hereof;

         WHEREAS, pursuant to the Bill of Sale which has been recorded with the
Clerk and Recorder for Rosebud County, Montana on even date hereof, the Owner
Lessor has acquired from PPL Montana an undivided interest in Units 1 and 2 and
the Related Common Facilities (which undivided interests are collectively
referred to herein as the "Undivided Interest" and are described in more detail
in the definition of such term in Appendix A to the Participation Agreement
referred to in Section 1);

         WHEREAS, Units 1 and 2 and the Related Common Facilities do not include
the Units 1 and 2 Site or the Common Facilities Site or any part thereof, and no
part of the Units 1 and 2 Site or the Common Facilities Site is being leased to
the Facility Lessee under this Facility Lease; and

         WHEREAS, pursuant to this Facility Lease, the Owner Lessor will lease
the Undivided Interest to the Facility Lessee for the Fixed Lease Term and the
Renewal Lease Terms, if any, provided herein.
<PAGE>   7
         NOW, THEREFORE, in consideration of the foregoing premises, the mutual
agreements herein contained, and other good and valuable consideration, the
receipt and sufficiency of which are hereby acknowledged, the parties hereto
agree as follows:

SECTION 1.  DEFINITIONS

         Unless the context hereof otherwise requires, capitalized terms used in
this Facility Lease, including those in the recitals, and not otherwise defined
herein shall have the respective meanings set forth in Appendix A to the
Participation Agreement (BA1/2), dated as of July 13, 2000 among PPL Montana,
the Owner Lessor, the Owner Participant referred to therein, Wilmington Trust
Company, in the capacities referred to therein, and The Chase Manhattan Bank, in
the capacities referred to therein. The general provisions of such Appendix A
shall apply to the terms used in this Facility Lease and specifically defined
herein.

SECTION 2.     LEASE OF THE UNDIVIDED INTEREST

         Section 2.1. Lease. The Owner Lessor hereby leases the Undivided
Interest, upon the terms and conditions set forth herein, to the Facility Lessee
for the Interim Lease Term, the Basic Lease Term and, subject to the Facility
Lessee's exercise of the renewal option or options in Section 15, one or more
Renewal Lease Terms, and the Facility Lessee hereby leases the Undivided
Interest, upon the terms and conditions set forth herein, from the Owner Lessor.
The Facility Lessee and the Owner Lessor understand and agree that this Facility
Lease is subject to the Permitted Encumbrances. The Undivided Interest shall be
subject to the terms of this Facility Lease from the date on which this Facility
Lease is executed and delivered.

         Section 2.2. Personal Property. Title to the Undivided Interest, and
every portion thereof is severed, and shall be and remain severed, from title to
the real estate constituting the Colstrip Site, and shall not, except as
specifically contemplated by the Operative Documents, be affected in any way by
any instrument dealing with the Colstrip Site or any part thereof. The Undivided
Interest constitutes personal property for all purposes, other than possibly for
the purposes of laws relating to ad valorem or property taxes.

SECTION 3.     FACILITY LEASE TERM AND RENT

         Section 3.1. Interim Lease Term. The interim lease term of this
Facility Lease for the Undivided Interest (the "Interim Lease Term") shall
commence on the Closing Date and shall terminate at 11:59 p.m. (New York City
time) on October 20, 2000, subject to early termination in whole pursuant to
Section 10, 13, 14 or 17 hereof or with respect to either Unit Interest pursuant
to Section 10 or 14 hereof.

         Section 3.2. Basic Lease Term. The basic lease term of this Facility
Lease for the Undivided Interest (the "Basic Lease Term") shall commence on
October 21, 2000 and shall terminate at 11:59 p.m. (New York City time) on July
20, 2036, subject to earlier termination in whole pursuant to Section 10, 13, 14
or 17 hereof or with respect to either Unit Interest pursuant to Section 10 or
14 hereof.

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<PAGE>   8
         Section 3.3. Rent.

                  (a) Payment of Rent. The Facility Lessee hereby agrees to pay
to the Owner Lessor interim rent with respect to the Interim Lease Term
("Interim Lease Rent") and basic lease rent, payable with respect to the Basic
Lease Term ("Basic Lease Rent," and together with Interim Lease Rent, "Periodic
Lease Rent") for the lease of the Undivided Interest as follows: each payment of
Periodic Lease Rent shall be in the amount equal to the product of the Purchase
Price multiplied by the Periodic Lease Rent Percentage set forth opposite such
Rent Payment Date on Schedule 1 hereto, subject to Section 3.5 hereof. In the
event this Facility Lease shall have been terminated pursuant to Section 10 or
14 with respect to either the Unit 1 Interest or the Unit 2 Interest, Periodic
Lease Rent payable on any Rent Payment Date thereafter shall be 50% of the
amount calculated pursuant to the immediately preceding sentence. All Periodic
Lease Rent to be paid pursuant to this Section 3.3 shall be payable in the
manner set forth in Section 3.6.

                  (b) Allocation of Rent. The Periodic Lease Rent allocated to
each Rent Payment Period for the use by the Facility Lessee of the Undivided
Interest shall be an amount equal to the product of the Purchase Price
multiplied by the Allocation Percentage for the Undivided Interest as set forth
in Schedule 3 hereof (the "Allocated Rent"). In the event this Facility Lease
shall have been terminated pursuant to Section 10 or 14 with respect to either
the Unit 1 Interest or the Unit 2 Interest, the Allocated Rent with respect to
the remainder of the Term shall be 50% of the amount computed pursuant to the
immediately preceding sentence. Notwithstanding that Periodic Lease Rent is
payable in accordance with Section 3.3(a) hereof, the Allocated Rent calculated
pursuant to this Section 3.3(b) shall represent and be the amount of Periodic
Lease Rent for which the Facility Lessee becomes liable on account of the use of
the Undivided Interest for each calendar year included in whole or in part in
the Term.

                  (c) Deduction/Inclusion of Rent and Interest Under Section 467
of the Code. It is the intention of the Owner Lessor and the Facility Lessee
that the allocation of Periodic Lease Rent to each Rent Payment Period as
provided in Section 3.3(b) constitutes a specific allocation of fixed rent
within the meaning of Treasury Regulation section 1.467-1(c)(2)(ii) with the
effect that the Owner Lessor and the Facility Lessee, on any federal income tax
returns filed by them (or, on any income tax returns on which their income is
included), shall accrue the amounts of rental income and rental expense,
respectively, set forth for each Rent Payment Period in an amount equal to the
product of the Purchase Price multiplied by the percentage set forth for such
Rent Payment Period in Schedule 3 under the caption "Proportional Rent
Percentage" (the "Proportional Rent"). In addition, (i) if, with respect to any
Rent Payment Period, the Section 467 Interest Percentage set forth in Schedule 3
is positive, the Owner Lessor shall deduct interest expense and the Facility
Lessee shall accrue interest income with respect to such period in an amount
equal to the product of the Purchase Price multiplied by the percentage set
forth for such Rent Payment Period on Schedule 3 under the caption "Section 467
Interest Percentage" ("Lessor Section 467 Interest") and (ii) if, with respect
to any Rent Payment Period, then Section 467 Interest Percentage set fort in
Schedule 3 is negative, the Owner Lessor shall accrue interest income and
Facility Lessee shall deduct interest expense with respect to such period in an
amount equal to the product of the Purchase Price multiplied by the percentage
set forth for such Rent Payment Period on Schedule 3 under the caption "Section
467 Interest Percentage" ("Lessee Section 467 Interest)". In the event that this
Facility Lease shall have been

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<PAGE>   9
terminated pursuant to Section 10 or 14 with respect to either the Unit 1
Interest or the Unit 2 Interest, the amounts otherwise computed pursuant this
Section 3.3(c) with respect to the remainder of the Lease Term shall be 50% of
the amounts so computed.

                  (d) Repayment of any Lessor Section 467 Loan Balance or any
Lessee Section 467 Loan Balance. If the Facility Lease is terminated prior to
July 20, 2036 with respect to any Unit Interest or the Facility Lessee is
otherwise required to pay Termination Value (or amounts computed by reference
thereto) (A) the Owner Lessor shall make a payment to the Facility Lessee on the
applicable Termination Date equal to the Lessor Section 467 Loan Balance on such
date, if any, with respect to such Unit Interest and (B) the Facility Lessee
shall make a payment to the Owner Lessor on the applicable Termination Date
equal to the Lessee Section 467 Loan Balance on such date, if any, with respect
to such Unit Interest. Notwithstanding the foregoing, either party may elect by
notice to the other to offset any Lessor 467 Loan Balance owed by the Owner
Lessor to the Facility Lessee against the amount of Termination Value (or
amounts computed with respect thereto) due and payable by the Facility Lessee to
the Owner Lessor on such date, and the Facility Lessee shall pay an amount equal
to the excess of such Termination Value (or the amount computed with respect
thereto) over such Lessor 467 Loan Balance or the Owner Lessor shall pay an
amount equal to the excess of such Lessor 467 Loan Balance over such Termination
Value (or the amount computed with respect thereto). Notwithstanding the
foregoing or anything herein to the contrary, in connection with any early
termination with respect to any Unit Interest pursuant to Section 10, 13, 14 or
17, the Facility Lessee shall be obligated to pay the Debt Portion of
Termination Value with respect to such Unit Interest on the applicable
Termination Date without offset. The obligations of the Owner Lessor and the
Facility Lessee to repay the Lessor Section 467 Loan Balance and the Lessee
Section 467 Loan Balance, respectively, shall, except as otherwise provided in
this Section 3.3(d), survive termination of this Facility Lease.

         Section 3.4. Supplemental Lease Rent. The Facility Lessee also agrees
to pay to the Owner Lessor, or to any other Person entitled thereto as expressly
provided herein or in any other Operative Document, as appropriate, any and all
Supplemental Lease Rent, promptly as the same shall become due and owing, or
where no due date is specified, promptly after demand by the Person entitled
thereto, and in the event of any failure on the part of the Facility Lessee to
pay any Supplemental Lease Rent, the Owner Lessor shall have all rights, powers
and remedies provided for herein or by law or equity or otherwise for the
failure to pay Periodic Lease Rent or Renewal Lease Rent. The Facility Lessee
will also pay as Supplemental Lease Rent, to the extent permitted by Applicable
Law, an amount equal to interest at the Overdue Rate on any part of any payment
of Periodic Lease Rent or Renewal Lease Rent not paid when due for any period
for which the same shall be overdue and on any Supplemental Lease Rent not paid
when due (whether on demand or otherwise) for the period from such due date
until the same shall be paid. All Supplemental Lease Rent to be paid pursuant to
this Section 3.4 shall be payable in the manner set forth in Section 3.6.

         Section 3.5. Adjustment of Lease Schedules.

                  (a) The Facility Lessee and the Owner Lessor agree that
Periodic Lease Rent, Allocated Rent, Proportional Rent, Section 467 Loan
Balance, Section 467 Interest and Termination Values payable with respect to the
Undivided Interest shall be adjusted, either

                                       4
<PAGE>   10
upwards or downwards, to reflect (i) the principal amount, amortization and
interest rate on any Additional Lessor Notes issued pursuant to Section 2.12 of
the Lease Indenture in connection with a refinancing of the Lessor Note pursuant
to Section 13.2 of the Participation Agreement, and (ii) the issuance of
Additional Lessor Notes pursuant to Section 2.12 of the Lease Indenture in
connection with the financing of Modifications to the Facility pursuant to
Section 13.1 of the Participation Agreement. Any adjustments pursuant to this
Section 3.5 shall be calculated to preserve the Owner Participant's Net Economic
Return through the end of the Fixed Lease Term; provided, however, that to the
extent consistent with preserving the Owner Participant's Net Economic Return,
all adjustments shall at the option of the Facility Lessee be calculated to (x)
minimize the average annual Periodic Lease Rent over the Fixed Lease Term for
the Facility Lessee's GAAP accounting purposes and/or (y) minimize the present
value to the Facility Lessee of the Periodic Lease Rent; provided, that no such
adjustment shall require the Owner Participant to record a loss as of the date
such adjustment is made or shall change such Owner Participant's book earnings
for the year in which such adjustment is made by more than +/-5%. Adjustments
will be made using the same method of computation and assumptions originally
used (other than those that have changed as the result of the event giving rise
to the adjustment) in the calculation of the Periodic Lease Rent. The
adjustments contemplated by this Section 3.5 will result in corresponding
adjustments to Allocated Rent, Proportional Rent, Section 467 Loan Balances,
Section 467 Interest and Termination Values.

                  (b) Anything herein or in any other Operative Document to the
contrary notwithstanding, Periodic Lease Rent payable on any Rent Payment Date,
whether or not adjusted in accordance with this Section 3.5, shall, in the
aggregate, be in an amount at least sufficient to pay in full principal and
interest payable on the Lessor Note on such Rent Payment Date. Anything herein
or in any other Operative Document to the contrary notwithstanding, Termination
Values (excluding the Equity Portion of Termination Value) payable on any date
under this Facility Lease, whether or not adjusted in accordance with this
Section 3.5, shall in the aggregate, together with all other Rent due and owing
on such date, exclusive of any portion thereof that is an Excepted Payment, be
in an amount at least sufficient to pay in full the principal of, premium (other
than premium, if any, paid by the Owner Lessor pursuant to Section 14), if any,
and accrued interest on the Lessor Note payable on such date.

                  (c) Any adjustment pursuant to this Section 3.5 shall
initially be computed by the Owner Participant, subject to the verification
procedure described in this Section 3.5(c). Once computed, the results of such
computation shall promptly be delivered by the Owner Participant to the Facility
Lessee. Within 20 days after the receipt of the results of any such adjustment,
the Facility Lessee may request that a nationally recognized firm of accountants
or lease advisors selected by the Owner Participant and reasonably satisfactory
to the Facility Lessee (the "Verifier") verify, after consultation with the
Owner Participant and the Facility Lessee, the accuracy of such adjustment in
accordance with this Section 3.5. The Owner Participant and the Facility Lessee
hereby agree, subject to the execution by the Verifier of an appropriate
confidentiality agreement, to provide the Verifier with all information and
materials as shall be necessary in connection therewith. If the Verifier
confirms that such adjustment is in accordance with this Section 3.5, it shall
so certify to the Facility Lessee, the Owner Lessor and the Owner Participant
and such certification shall be final, binding and conclusive on the Facility
Lessee, the Owner Participant and the Owner Lessor. If the Verifier concludes
that such adjustment is not in accordance with this Section 3.5, and the
adjustments to Periodic Lease

                                       5
<PAGE>   11
Rent, Allocated Rent, Proportional Rent, Section 467 Loan Balance, Section 467
Interest or Termination Value calculated by the Verifier are different from
those calculated by the Owner Participant, then it shall so certify to the
Facility Lessee, the Owner Lessor and the Owner Participant and the Verifier's
calculation shall be final, binding and conclusive on the Facility Lessee, the
Owner Lessor and the Owner Participant. If the Facility Lessee does not request
verification of any adjustment within the period specified above, the
computation provided by the Owner Participant shall be final, binding and
conclusive on the Facility Lessee, the Owner Lessor and the Owner Participant.
The final determination of any adjustment hereunder shall be set forth in an
amendment to this Facility Lease, executed and delivered by the Owner Lessor and
the Facility Lessee and consented to by the Owner Participant; provided,
however, that any omission to execute and deliver such amendment shall not
affect the validity and effectiveness of any such adjustment. The reasonable
fees, costs and expenses of the Verifier in verifying an adjustment pursuant to
this Section 3.5 shall be paid by the Facility Lessee; provided, however, that,
in the event that such Verifier determines that the present value of Periodic
Lease Rent to be made under this Facility Lease as calculated by the Owner
Participant is greater than the present value of the correct Periodic Lease Rent
as certified by the Verifier, in each case, discounted annually at the Discount
Rate, by more than five basis points, then such expenses of the Verifier shall
be paid by the Owner Participant. Notwithstanding anything herein to the
contrary, the sole responsibility of the Verifier shall be to verify the
calculations hereunder and matters of interpretation of this Facility Lease or
any other Operative Document shall not be within the scope of the Verifier's
responsibilities.

         Section 3.6. Manner of Payments. All Rent (whether Periodic Lease Rent,
Renewal Lease Rent or Supplemental Lease Rent) shall be paid by the Facility
Lessee in lawful currency of the United States of America in immediately
available funds to the recipient not later than 11:00 a.m. (New York City time)
on the date due. All Rent payable to the Owner Lessor (other than Excepted
Payments) shall be paid by the Facility Lessee to the Owner Lessor by payment to
the Owner Lessor's Account, or to such other place as the Owner Lessor shall
notify the Facility Lessee in writing; provided, however, that so long as the
Lien of the Lease Indenture has not been discharged, the Owner Lessor hereby
irrevocably directs (it being agreed and understood that such direction shall be
deemed to have been revoked after the Lien of the Lease Indenture shall have
been fully discharged in accordance with its terms), and the Facility Lessee
agrees, that all payments of Rent (other than Excepted Payments) payable to the
Owner Lessor shall be paid by wire transfer directly to the Lease Indenture
Trustee's Account or to such other place as the Lease Indenture Trustee shall
notify the Facility Lessee in writing pursuant to the Lease Indenture. Payments
constituting Excepted Payments shall be made to the Person entitled thereto at
the address for such Person set forth in the Participation Agreement, or to such
other place as such Person shall notify the Facility Lessee in writing.

SECTION 4.     DISCLAIMER OF WARRANTIES; RIGHT OF QUIET ENJOYMENT

         Section 4.1. Disclaimer of Warranties.

                  (a) Without waiving any claim the Facility Lessee may have
against any manufacturer, vendor or contractor, THE FACILITY LESSEE ACKNOWLEDGES
AND AGREES SOLELY FOR THE BENEFIT OF THE OWNER LESSOR AND THE OWNER PARTICIPANT
THAT (i) THE FACILITY AND EACH COMPONENT THEREOF IS OF A

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<PAGE>   12
SIZE, DESIGN, CAPACITY AND MANUFACTURE ACCEPTABLE TO THE FACILITY LESSEE, (ii)
THE FACILITY LESSEE IS SATISFIED THAT THE FACILITY AND EACH COMPONENT THEREOF IS
SUITABLE FOR THEIR RESPECTIVE PURPOSES, (iii) NEITHER THE OWNER LESSOR NOR THE
OWNER PARTICIPANT IS A MANUFACTURER OR A DEALER IN PROPERTY OF SUCH KIND, (iv)
THE UNDIVIDED INTEREST IS LEASED HEREUNDER TO THE EXTENT PROVIDED HEREBY FOR THE
INTERIM LEASE TERM, THE BASIC LEASE TERM AND THE RENEWAL LEASE TERMS, IF ANY,
SPECIFIED HEREIN SUBJECT TO ALL APPLICABLE LAWS NOW IN EFFECT OR HEREAFTER
ADOPTED, INCLUDING (1) ZONING REGULATIONS, (2) ENVIRONMENTAL LAWS OR (3)
BUILDING RESTRICTIONS, AND IN THE STATE AND CONDITION OF EVERY PART THEREOF WHEN
THE SAME FIRST BECAME SUBJECT TO THIS FACILITY LEASE WITHOUT REPRESENTATION OR
WARRANTY OF ANY KIND BY THE OWNER LESSOR OR THE OWNER PARTICIPANT AND (v) THE
OWNER LESSOR LEASES FOR THE INTERIM LEASE TERM, THE BASIC LEASE TERM AND THE
RENEWAL LEASE TERMS, IF ANY, SPECIFIED HEREIN AND THE FACILITY LESSEE TAKES THE
UNDIVIDED INTEREST UNDER THIS FACILITY LEASE "AS-IS", "WHERE-IS" AND "WITH ALL
FAULTS", AND THE FACILITY LESSEE ACKNOWLEDGES THAT NEITHER THE OWNER LESSOR, NOR
THE OWNER PARTICIPANT MAKES NOR SHALL BE DEEMED TO HAVE MADE, AND EACH EXPRESSLY
DISCLAIMS, ANY AND ALL RIGHTS, CLAIMS, WARRANTIES OR REPRESENTATIONS, EITHER
EXPRESS OR IMPLIED, AS TO THE VALUE, CONDITION, FITNESS FOR ANY PARTICULAR
PURPOSE, DESIGN, OPERATION, MERCHANTABILITY THEREOF OR AS TO THE TITLE OF THE
FACILITY, THE QUALITY OF THE MATERIAL OR WORKMANSHIP THEREOF OR CONFORMITY
THEREOF TO SPECIFICATIONS, FREEDOM FROM PATENT, COPYRIGHT OR TRADEMARK
INFRINGEMENT, THE ABSENCE OF ANY LATENT OR OTHER DEFECT, WHETHER OR NOT
DISCOVERABLE, OR AS TO THE ABSENCE OF ANY OBLIGATIONS BASED ON STRICT LIABILITY
IN TORT OR ANY OTHER EXPRESS OR IMPLIED REPRESENTATION OR WARRANTY WHATSOEVER
WITH RESPECT THERETO, except that the Owner Lessor represents and warrants that
on the Closing Date, the Undivided Interest will be free of Owner Lessor's
Liens. It is agreed that all such risks, as between the Owner Lessor and the
Owner Participant on the one hand and the Facility Lessee on the other hand are
to be borne by the Facility Lessee with respect to acts, occurrences or
omissions during the Facility Lease Term. Neither of the Owner Lessor nor the
Owner Participant shall have any responsibility or liability to the Facility
Lessee or any other Person with respect to any of the following: (x) any
liability, loss or damage caused or alleged to be caused directly or indirectly
by the Facility or any Component or by any inadequacy thereof or deficiency or
defect therein or by any other circumstances in connection therewith; (y) the
use, operation or performance of the Facility or any Component thereof or any
risks relating thereto; or (z) the delivery, operation, servicing, maintenance,
repair, improvement, replacement or decommissioning of the Facility or any
Component thereof. The provisions of this paragraph (a) of this Section 4.1 have
been negotiated, and, except to the extent otherwise expressly stated, the
foregoing provisions are intended to be a complete exclusion and negation of any
representations or warranties of the Owner Lessor, express or implied, with
respect to the Facility or any Components thereof, the Undivided Interest that
may arise pursuant to any Applicable Law now or hereafter in effect, or
otherwise.

                                       7
<PAGE>   13
                  (b) During the Facility Lease Term, so long as no Lease Event
of Default shall have occurred and be continuing, the Owner Lessor hereby
appoints irrevocably and constitutes the Facility Lessee its agent and
attorney-in-fact, coupled with an interest, to assert and enforce, from time to
time, in the name and for the account of the Owner Lessor and the Facility
Lessee, as their interests may appear, but in all cases at the sole cost and
expense of the Facility Lessee, whatever claims and rights the Owner Lessor may
have in respect of the Facility or any Component thereof, or the Undivided
Interest against any manufacturer, vendor or contractor, or under any express or
implied warranties relating to the Facility or any Component thereof, or the
Undivided Interest.

         Section 4.2. Quiet Enjoyment. The Owner Lessor agrees that,
notwithstanding any provision of any other Operative Document, so long as no
Lease Event of Default shall have occurred and be continuing, it shall not
interfere with or interrupt the quiet enjoyment of the use, operation and
possession by the Facility Lessee of the interest in the Undivided Interest
conveyed by this Facility Lease subject to the terms of this Facility Lease.

SECTION 5.     RETURN OF UNDIVIDED INTEREST

         Section 5.1. Return. Upon expiration or early termination of this
Facility Lease with respect to any Unit Interest (other than a termination
pursuant to Section 10 or, if the Unit Interest is being transferred to the
Facility Lessee, Section 13), the Facility Lessee, at its own expense, shall
return such Unit Interest (together with the undivided interest in all
Modifications to such Unit and the allocable portion of the undivided interest
in all Modifications to the Related Common Facilities, that, in either case,
shall have vested in the Owner Lessor pursuant to the first sentence of Section
8.3) to the Owner Lessor or any permitted transferee or assignee of the Owner
Lessor by surrendering such Unit Interest into the possession of the Owner
Lessor or such transferee or assignee at the location of such Unit on the
Related Site. In connection with such return, the Facility Lessee shall (a)
assign, to the extent permitted by Applicable Law, a corresponding undivided
interest in, and shall cooperate with all reasonable requests of the Owner
Participant, the Owner Lessor or a permitted transferee or assignee of either of
such parties for purposes of obtaining, or enabling the Owner Participant, the
Owner Lessor or such transferees or assignees to obtain, any and all licenses,
permits, approvals and consents of any Governmental Entities or other Persons
that are or will be required to be obtained by the Owner Participant, the Owner
Lessor or such transferee or assignee in connection with the use, operation or
maintenance of such Unit and the Related Common Facilities on or after such
return in compliance with the Project Agreements and Applicable Law; and (b)
provide the Owner Lessor or a permitted transferee or assignee of Owner Lessor
copies of all documents, instruments, plans, maps, specifications, manuals,
drawings and other documentary materials relating to the installation,
maintenance, operation, construction, design, modification and repair of such
Unit and the Related Common Facilities, as shall be in the Facility Lessee's
possession and shall be reasonably appropriate or necessary for the continued
operation of such Unit. Upon such return, the right to use such Unit Interest
granted hereunder for the benefit of the Facility Lessee shall cease and
terminate and, in the case of the return of either the Unit 1 Interest or the
Unit 2 Interest, such Unit Interest shall no longer be deemed to be a part of
the Undivided Interest.

                                       8
<PAGE>   14
         Section 5.2. Condition Upon Return. At the time of a return of a Unit
Interest by the Facility Lessee to the Owner Lessor pursuant to Section 5.1
(other than a return pursuant to Section 14), the following conditions shall be
complied with, all at the Facility Lessee's sole cost and expense:

                  (a) such Unit and the Related Common Facilities will be in at
least as good condition as if they had been maintained, repaired and operated
during the Facility Lease Term in compliance with the provisions of this
Facility Lease, ordinary wear and tear excepted, and there shall be no deferred
maintenance in respect of such Unit or the Related Common Facilities;

                  (b) such Unit Interest shall be free and clear of all Liens
other than Permitted Liens;

                  (c) such Unit shall have at least the capability and
functional ability to generate electricity, on a continuous basis in normal
commercial operating conditions, substantially at the ratings for which it was
designed after taking into account all Modifications to such Unit and the
Related Common Facilities made in accordance with this Facility Lease (ordinary
wear and tear excepted);

                  (d) such Unit and the Related Common Facilities shall be in
compliance with all requirements of manufacturers required for the maintenance
in full force and effect of any material warranty then in effect with respect to
such Unit and the Related Common Facilities;

                  (e) no Component of such Unit or the Related Common Facilities
shall be a temporary Component and any Replacement Component of such Unit or the
Related Common Facilities shall satisfy the standards of Section 7.2; and

                  (f) the Facility Lessee, at the request of the Owner Lessor,
shall sell (subject to all existing encumbrances) to the Owner Lessor (or its
designee) at the then Fair Market Sales Value thereof, determined by agreement
between the Facility Lessee and the Owner Lessor or, absent agreement, by an
appraisal conducted according to the Appraisal Procedures, (i) an undivided
interest in all Severable Modifications made to such Unit equal to the Unit
Percentage, and (ii) to the extent such Modifications relate to such Unit, an
undivided interest in all Severable Modifications to the Related Common
Facilities equal to the Common Facilities Percentage (other than, in either
case, Severable Modifications referred to in the first sentence of Section 8.3).
The appraiser's fees and expenses incurred pursuant to this clause (f) shall be
paid by the Owner Lessor.

         Section 5.3. Environmental Reports. In connection with the return of a
Unit Interest to the Owner Lessor pursuant to Section 5, the Facility Lessee
shall, at its own expense, provide the Owner Lessor and the Owner Participant
and, so long as the Lien of the Lease Indenture on such Unit shall not have been
terminated or discharged, the Lease Indenture Trustee (a) not later than 180
days prior to the later of the Expiration Date or the last day of the last
Renewal Lease Term elected by the Facility Lessee, or (b) in connection with any
return pursuant to Section 17, as promptly as possible after a request therefor
by the Owner Lessor, the Owner Participant or, so long as the Lien of the Lease
Indenture on such Unit shall not have been terminated or discharged, the Lease
Indenture Trustee, a phase I environmental survey, which shall be

                                       9
<PAGE>   15
expanded to a phase II environmental survey if, as a result of the phase I
survey, facts are revealed that would reasonably necessitate a phase II survey,
prepared by a reputable environmental consulting firm (selected by the Facility
Lessee and reasonably acceptable to the Owner Participant) as to the
environmental condition of such Unit, the Related Common Facilities and the
Related Site and the compliance or non-compliance with applicable Environmental
Law and the presence or absence of any Environmental Condition, in form and
scope reasonably satisfactory to the Owner Participant. The provisions of such
surveys shall not relieve the Facility Lessee of any indemnification obligation
or liability with respect to Environmental Conditions, known or unknown, in
respect of such Unit, the Related Common Facilities or the Related Site and the
Facility Lessee will take any and all actions necessary to ensure that such
Unit, the Related Common Facilities and the Related Site comply with all
applicable Environmental Laws. If such survey shall indicate that either such
Unit, the Related Common Facilities or the Related Site is not in compliance
with applicable Environmental Laws, the Facility Lessee shall, within 90 days of
the Owner Lessor having received such survey, provide the Owner Participant and,
so long as the Lien of the Lease Indenture on such Unit shall not have been
terminated or discharged, the Lease Indenture Trustee with a remediation plan
designed to bring such Unit, the Related Common Facilities and the Related Site
into compliance with applicable Environmental Laws as promptly as is reasonably
practical and without materially adversely affecting the continued operation of
such Unit; provided, however, that the Facility Lessee shall be solely
responsible for any liability that may arise from any delay in returning such
Unit, and/or the Related Common Facilities and/or the Related Site to full
compliance with applicable Environmental Laws. The obligations of the Facility
Lessee set forth in this Section 5.3 shall survive the termination of this
Facility Lease and the expiration of the Facility Lease Term.

SECTION 6.     LIENS

         The Facility Lessee will not directly or indirectly create, incur,
assume or suffer to exist any Lien on or with respect to the Undivided Interest,
or any interest therein or in, to or on its interest in this Facility Lease or
its interest in any other Operative Document, except Permitted Liens, and the
Facility Lessee shall promptly notify the Owner Lessor of the imposition of any
such Lien of which the Facility Lessee is aware and shall promptly, at its own
expense, take such action as may be necessary to fully discharge or release any
such Lien.

SECTION 7.     MAINTENANCE; REPLACEMENTS OF COMPONENTS

Section 7.1.    Maintenance. The Facility Lessee, at its own cost and expense,
will exercise all rights, powers, elections and options available to it or any
of its Affiliates under the Project Agreements to (a) cause the Facility to be
maintained in as good condition, repair and working order, in all material
respects as when delivered, ordinary wear and tear excepted, (i) in accordance
with Prudent Industry Practice, (ii) in compliance with all Applicable Laws of
any Governmental Entity having jurisdiction, including all Environmental Laws,
unless such noncompliance could not reasonably be expected to result in a
Material Adverse Effect, and (iii) in accordance with the terms of all insurance
policies required to be maintained pursuant to Section 11, and (b) cause to be
made all necessary repairs, renewals, replacements, betterments and improvements
thereof, all as in the reasonable judgment of the Facility Lessee may be
necessary so that the Facility may be operated in accordance with the Project
Agreements.

                                       10
<PAGE>   16
         Section 7.2. Replacement of Components. In the ordinary course of
maintenance, service, repair or testing, the Facility Lessee or the Operator, at
its own cost and expense, may remove or cause or permit to be removed from the
Facility any Component; provided, however, that the Facility Lessee shall
exercise all rights, powers, elections and options available to it under the
Project Agreements to (a) cause such Component to be replaced by a replacement
Component which shall be free and clear of all Liens (except Permitted Liens)
and in as good operating condition as the Component replaced, assuming that the
Component replaced was maintained in accordance with this Facility Lease (each
such replacement Component being herein referred to as a "Replacement
Component") and (b) cause such replacement to be performed in a manner which
does not diminish the current or residual value, remaining useful life or
utility of the Facility by more than a de minimis amount below the current or
residual value, the remaining useful life or the utility thereof immediately
prior to such replacement or cause the Facility to become "limited-use" property
within the meaning of Rev. Proc. 75-28, 1975-1 C.B. 752 or Rev. Proc. 76-30,
1976-2 C.B. 647. If any Component to the Facility an undivided interest in which
is subject to this Facility Lease, is at any time removed from the Facility,
such undivided interest in the Component shall remain subject to this Facility
Lease, wherever located, until such time as such Component shall be replaced by
a Replacement Component which has been incorporated in the Facility and which
meets the requirements for Replacement Components specified above. Immediately
upon any Replacement Component becoming incorporated in the Facility, without
further act (and at no cost to the Owner Lessor and with no adjustment to the
Purchase Price, Periodic Lease Rent or Renewal Lease Rent), (i) the undivided
interest in the replaced Component shall no longer be subject to this Facility
Lease, (ii) title to the Owner Lessor's undivided interest in the removed
Component (to the extent part of the Undivided Interest) shall thereupon vest in
the Facility Lessee or such other Person as shall be designated by the Facility
Lessee, free and clear of all rights of the Owner Lessor and the Lease Indenture
Trustee, (iii) title to an undivided interest equal to the applicable Unit
Percentage (for Components of such Unit) or Common Facilities Percentage (for
Components of the Related Common Facilities) in the Replacement Component shall
thereupon vest with the Owner Lessor and such undivided interest shall (x)
become subject to this Facility Lease and the Lien of the Lease Indenture, and
(y) be deemed a part of the Undivided Interest for all purposes of this Facility
Lease. Notwithstanding anything in this Section 7.2 or elsewhere in this
Facility Lease to the contrary, if the Facility Lessee has determined that a
Component is surplus or obsolete, it shall have the right to remove such
Component without replacing it; provided, that no such Component may be so
removed without being replaced if such removal would diminish the current or
residual value, remaining useful life or utility of the Facility by more than a
de minimis amount below the current or residual value, the remaining useful life
or the utility thereof immediately prior to such removal or cause the Facility
to become "limited use" property within the meaning of Rev. Proc. 75-28, 1975-1
C.B. 752 or Rev. Proc. 76-30, 1976-2 C.B. 647.

SECTION 8.     MODIFICATIONS

         Section 8.1. Required Modifications. The Facility Lessee, at its own
cost and expense, shall exercise all rights, powers, elections and options
available to it under the applicable Project Agreements to make or cause or
permit to be made all Modifications to the Facility as they relate to the
Undivided Interest as are required by Applicable Law (each, a "Required
Modification"); provided, however, that the Facility Lessee may, in good faith
and by appropriate proceedings,

                                       11
<PAGE>   17
diligently contest the validity or application of any Applicable Laws in any
reasonable manner which does not involve any danger of (a) foreclosure, sale,
forfeiture or loss of, or imposition of a Lien on any part of the Undivided
Interest or impair the use, operation or maintenance of the Facility in any
material respect, or (b) any criminal or material civil liability being incurred
by, or any material adverse effect on the interests of, the Owner Participant or
the Owner Lessor including subjecting the Owner Participant or the Owner Lessor
to regulation as a public utility under Applicable Law.

         Section 8.2. Optional Modifications. The Facility Lessee at any time
may, at its own cost and expense, make or cause or permit to be made any
Modification to the Facility as the Facility Lessee considers desirable in the
proper conduct of its business (any such non-Required Modification being
referred to as an "Optional Modification"); provided that the Facility Lessee
shall exercise all rights, powers, elections and options available to it and any
of its Affiliates under the Project Agreements to prevent any Optional
Modification from being made to the Facility that would diminish by more than a
de minimis amount the current or residual value, remaining useful life or
utility of the Facility, below the current or residual value, remaining useful
life or utility of the Facility immediately prior to such Optional Modification
assuming the Facility was then in the condition required to be maintained by the
terms of this Facility Lease, or cause the Facility to become "limited use"
property, within the meaning of Rev. Proc. 75-28, 1975-1 C.B. 752 or Rev. Proc.
76-30, 1976-2 C.B. 647.

         Section 8.3. Title to Modifications. Title to an undivided interest
equal to the applicable Unit Percentage (in the case of Modifications to a Unit)
or Common Facilities Percentage (in the case of Modifications to the Related
Common Facilities) in (a) all Required Modifications, (b) all Nonseverable
Modifications and (c) all Modifications financed by the Owner Lessor by an
Additional Equity Investment or a Supplemental Financing pursuant to Section
13.1 of the Participation Agreement shall (at no cost to the Owner Lessor and
with no adjustment to the Purchase Price or, except as provided herein, Periodic
Lease Rent or Renewal Lease Rent) immediately vest in the Owner Lessor, and such
undivided interest shall immediately (i) become subject to this Facility Lease
and, so long as the Lien of the Lease Indenture shall not have been terminated
or discharged, the Lien of the Lease Indenture, and (ii) be deemed part of the
Undivided Interest for all purposes of this Facility Lease. The Facility Lessee,
at its own cost and expense, shall take such steps as the Owner Lessor and, so
long as the Lien of the Lease Indenture shall not have been terminated or
discharged, the Lease Indenture Trustee may reasonably require from time to time
to confirm that title in such undivided interest has vested in the Owner Lessor
and that such undivided interest is subject to this Facility Lease and, so long
as the Lien of the Lease Indenture shall not have been terminated or discharged,
the Lien of the Lease Indenture. No interest in any Optional Modification which
is a Severable Modification (other than Severable Modifications which are
financed by the Owner Lessor by an Additional Equity Investment or a
Supplemental Financing pursuant to Section 13.1 of the Participation Agreement)
shall vest in the Owner Lessor or become subject to this Facility Lease or the
Lien of the Lease Indenture; provided, however, that if the Facility Lessee
shall, at its cost and expense, cause such Optional Modifications which are
Severable Modifications to be made to the Facility, the Owner Lessor shall have
the right, immediately prior to the return of any Unit Interest to the Owner
Lessor hereunder, to purchase in accordance with Section 5.2(f) an undivided
interest equal to the applicable Unit Percentage (for Modifications to such
Unit) or Common Facilities Percentage (for Modifications to the Related Common
Facilities to the extent

                                       12
<PAGE>   18
such Modifications relate to such Unit) in any such Optional Modifications which
are Severable Modifications. The purchase price for such undivided interest
shall be the then Fair Market Sales Value of such undivided interest as
determined pursuant to Section 5.2(f). If the Owner Lessor does not elect to
purchase such Optional Modifications which are Severable Modifications, the
Facility Lessee may, to the extent permitted by the Project Agreements, remove
such Modifications at the end of the Facility Lease Term, all at the Facility
Lessee's cost and expense.

SECTION 9.     NET LEASE

         This Facility Lease is a "net lease" and the Facility Lessee's
obligation to pay all Periodic Lease Rent and Renewal Lease Rent payable
hereunder (and, except as expressly set forth in Section 3.3(d), all amounts,
including Termination Value (or amounts computed by reference thereto), in lieu
of Periodic Lease Rent or Renewal Lease Rent following termination of this
Facility Lease in whole or in part) shall be absolute and unconditional under
any and all circumstances and shall not be terminated, extinguished, diminished,
lost or otherwise impaired by any circumstance of any character, including by
(i) any setoff, counterclaim, recoupment, defense or other right which the
Facility Lessee may have against the Owner Lessor, the Owner Participant, the
Lease Indenture Trustee or any other Person, including any claim as a result of
any breach by any of said parties of any covenant or provision in this Facility
Lease or any other Operative Document, (ii) any lack or invalidity of title or
any defect in the title, condition, design, operation, merchantability or
fitness for use of the Facility or any Component or any portion of either
thereof, or any eviction by paramount title or otherwise, or any unavailability
of the Facility, the Colstrip Site, any Component or any portion of either
thereof, any other portion of the Undivided Interest, or any part thereof, (iii)
any loss or destruction of, or damage to, the Facility or any Component or any
portion of either thereof or interruption or cessation in the use or possession
thereof or any part thereof by the Facility Lessee for any reason whatsoever and
of whatever duration, (iv) the condemnation, requisitioning, expropriation,
seizure or other taking of title to or use of the Colstrip Site, the Facility,
any Component or any portion of either thereof, or any other portion of the
Undivided Interest by any Governmental Entity or otherwise, (v) the invalidity
or unenforceability or lack of due authorization or other infirmity of this
Facility Lease or any other Operative Document, (vi) the lack of right, power or
authority of the Owner Lessor to enter into this Facility Lease or any other
Operative Document, (vii) any ineligibility of the Facility or any Component or
any portion of either thereof for any particular use, whether or not due to any
failure of the Facility Lessee to comply with any Applicable Law, (viii) any
event of "force majeure" or any frustration, (ix) any legal requirement similar
or dissimilar to the foregoing, any present or future law to the contrary
notwithstanding, (x) any insolvency, bankruptcy, reorganization or similar
proceeding by or against the Facility Lessee or any other Person, (xi) any Lien
of any Person with respect to the Colstrip Site, the Facility, any Component or
any portion of either thereof, any other portion of the Undivided Interest or
any part thereof, (xii) the existence of any Qualifying Letter of Credit other
than to the extent of drawings thereunder, or (xiii) any other cause, whether
similar or dissimilar to the foregoing, any present or future law
notwithstanding, except as expressly set forth herein or in any other Operative
Document, it being the intention of the parties hereto that all Periodic Lease
Rent and Renewal Lease Rent (and all amounts, including Termination Value, in
lieu of Periodic Lease Rent or Renewal Lease Rent following termination of this
Facility Lease in whole or in part) payable by the Facility Lessee hereunder
shall continue to be payable in all events in the manner and at

                                       13
<PAGE>   19
times provided for herein. Such Periodic Lease Rent or Renewal Lease Rent (and
except as expressly set forth in Section 3.3(d), all amounts, including
Termination Value (or amounts computed by reference thereto), in lieu of
Periodic Lease Rent or Renewal Lease Rent following termination of this Facility
Lease in whole or in part) shall not be subject to any abatement and the
payments thereof shall not be subject to any setoff or reduction for any reason
whatsoever, including any present or future claims of the Facility Lessee or any
other Person against the Owner Lessor or any other Person under this Facility
Lease or otherwise. To the extent permitted by Applicable Law, the Facility
Lessee hereby waives any and all rights which it may now have or which at any
time hereafter may be conferred upon it, by statute or otherwise, to terminate,
cancel, quit or surrender this Facility Lease with respect to the Undivided
Interest except in accordance with Sections 10, 13, 14 or 15. If for any reason
whatsoever this Facility Lease shall be terminated in whole or in part by
operation of law or otherwise, except as specifically provided herein, the
Facility Lessee nonetheless agrees, to the extent permitted by Applicable Law,
to pay to the Owner Lessor an amount equal to each installment of Periodic Lease
Rent (or, in connection with a termination of a Renewal Lease Term, Renewal
Lease Rent) and all Supplemental Lease Rent due and owing, at the time such
payment would have become due and payable in accordance with the terms hereof
had this Facility Lease not been so terminated. Nothing contained herein shall
be construed to waive any claim which the Facility Lessee might have under any
of the Operative Documents or otherwise or to limit the right of the Facility
Lessee to make any claim it might have against the Owner Lessor or any other
Person or to pursue such claim in such manner as the Facility Lessee shall deem
appropriate.

SECTION 10.     EVENTS OF LOSS

         Section 10.1. Occurrence of Events of Loss. The Owner Participant or
the Owner Lessor will promptly notify the Facility Lessee of any event of which
it is aware that upon election of the Owner Participant would result in a
Regulatory Event of Loss. If an Event of Loss described in clauses (a) or (b) of
the definition of Event of Loss shall occur with respect to any Unit, then no
later than six months following such occurrence the Facility Lessee shall notify
the Owner Lessor, the Owner Participant and, so long as the Lien of the Lease
Indenture shall not have been terminated or discharged, the Lease Indenture
Trustee and the Pass Through Trustee in writing of its election to either (a) if
no Significant Lease Default or Lease Event of Default (other than Lease Events
of Default arising as a result of such Event of Loss) has occurred and is
continuing and subject to the satisfaction of the conditions set forth in
Section 10.3(a) and (b), rebuild or replace such Unit to the extent of the
Undivided Interest and subject to the Project Agreements and the Related Common
Facilities so that such Unit to the extent of the Undivided Interest shall have
a current and residual value, remaining useful life and utility at least equal
to that of such Unit prior to such Event of Loss, assuming such Unit and the
Related Common Facilities were in the condition and repair required to be
maintained by this Facility Lease or (b) terminate this Facility Lease with
respect to such Unit Interest pursuant to Section 10.2 hereof. The Facility
Lessee may elect the option provided in clause (b) of the preceding sentence
regardless of whether such Unit and the Related Common Facilities are to be
rebuilt or replaced. If the Facility Lessee fails to make an election as
provided above, an Event of Loss shall be deemed to occur as of the end of the
six month period referred to in the second sentence of this Section 10.1 and the
Facility Lessee will be deemed to have made the election to terminate this
Facility Lease with respect to such Unit Interest pursuant to Section 10.2.
Notwithstanding the foregoing, the Facility Lessee may make either such election
only if (i) the Facility Lessee makes an identical

                                       14
<PAGE>   20
election under the Other Facility Lease with respect to the Facility, and (ii)
in the case of an election under Section 10.1(a), the Facility Lessee shall have
complied with Section 10.3(a) and (b) hereunder and under the Other Facility
Lease with respect to the Facility.

         Section 10.2. Payment of Termination Value; Termination of Periodic
Lease Rent and Renewal Lease Rent.

                  (a) If (x) an Event of Loss described in clause (a) or (b) of
the definition of Event of Loss shall have occurred with respect to any Unit and
the Facility Lessee shall elect not to rebuild or replace such Unit and the
Related Common Facilities pursuant to Section 10.1(a) hereof or an Event of Loss
with respect to such Unit shall be deemed to occur pursuant to the penultimate
sentence of Section 10.1, or (y) an Event of Loss described in clause (c) or (d)
of the definition of Event of Loss shall occur with respect to any Unit, then,
on the next Termination Date at least one month after the Facility Lessee's
notice of its election referred to in the second sentence of Section 10.1 or at
least one month after the occurrence of a deemed Event of Loss pursuant to the
penultimate sentence of Section 10.1 in the case of clause (x) above, or on the
next Termination Date occurring at least three months after the occurrence of
such Event of Loss or, if earlier, at least one month after receipt of insurance
proceeds in respect of such Event of Loss in the case of clause (y) above, the
Facility Lessee shall terminate the Facility Lease with respect to the Unit
Interest pertaining to such Unit (or in the case of an Event of Loss described
in clause (d) of the definition of Event of Loss with respect to all Unit
Interests then subject to this Facility Lease) and pay to the Owner Lessor (A)
the Termination Value with respect to such Unit Interest or Unit Interests
determined as of the relevant Termination Date, plus (B) all amounts of
Supplemental Lease Rent with respect to such Unit Interest or Unit Interests
(including all documented out-of-pocket costs and expenses of the Owner Lessor,
the Owner Participant, the Lease Indenture Trustee and the Pass Through Trustee,
and all sales, use, value added and other Taxes required to be indemnified by
the Facility Lessee pursuant to Section 11.2 of the Participation Agreement
associated with the exercise of the termination option pursuant to this Section
10.2) due and payable on or prior to such Termination Date, plus (C) any unpaid
Periodic Lease Rent and Renewal Lease Rent with respect to such Unit Interest or
Unit Interests due before such Termination Date, plus (D) the Lessee Section 467
Loan Balance, if any, determined as of the relevant Termination Date and the
Owner Lessor shall pay to the Facility Lessee the Lessor Section 467 Loan
Balance, if any, determined as of such Termination Date. The obligation to make
such payments shall be subject to the provisions of Section 3.3(d), and all
payments of Rent under this Section 10.2(a) shall, to the extent required by
Section 3.6(a), be made to the Lease Indenture Trustee.

                  (b) Concurrently with the payment of all sums required to be
paid pursuant to this Section 10.2, (i) Periodic Lease Rent and Renewal Lease
Rent with respect to such Unit Interest or Unit Interests shall cease to accrue,
(ii) the Facility Lessee's obligations under Sections 6, 7, 8, 11 and 12 with
respect to such Unit Interest or Unit Interests shall terminate, (iii) the
Facility Lessee shall cease to have any other liability to the Owner Lessor with
respect to such Unit Interest or Unit Interests except for Supplemental Lease
Rent and other obligations (including those under Sections 11.1 and 11.2 of the
Participation Agreement) surviving pursuant to the express provisions of any
Operative Document, (iv) unless the Facility Lessee assumes the Lessor Note
pursuant to Section 10.2(c), the Owner Lessor shall pay the portion of the
outstanding principal and accrued interest on the Lessor Note relating to such
Unit Interest or

                                       15
<PAGE>   21
Unit Interests pursuant to Section 2.10(a) and (e) of the Lease Indenture, (v)
this Facility Lease shall terminate with respect to such Unit Interest or Unit
Interests and, in the case of the return of either the Unit 1 Interest or the
Unit 2 Interest, the Unit Interest relating to the damaged or destroyed Unit
shall no longer be deemed to be a part of the Undivided Interest, (vi) the Owner
Lessor shall, at the Facility Lessee's cost and expense, execute and deliver to
the Facility Lessee a release or termination of this Facility Lease with respect
to such Unit Interest or Unit Interests, (vii) the Owner Lessor shall transfer
(by an appropriate instrument of transfer in form and substance reasonably
satisfactory to the Owner Lessor and prepared and recorded by and at the expense
of the Facility Lessee) all of its right, title and interest in and to such Unit
Interest or Unit Interests and the Related Ground Interest to the Facility
Lessee pursuant to this Section 10.2 hereof and Section 9.1 of the Site Lease
and Sublease, respectively, on an "as is", "where is" and "with all faults"
basis, without representations or warranties other than a warranty as to the
absence of Owner Lessor's Liens and a warranty of the Owner Participant as to
the absence of Owner Participant's Liens; and (viii) the Owner Lessor shall
discharge the Lien of the Lease Indenture with respect to such Unit Interest or
Unit Interests and execute and deliver appropriate releases and other documents
or instruments necessary or desirable to effect the foregoing, all to be
prepared, filed and recorded (as appropriate) at the cost and expense of the
Facility Lessee.

                  (c) Notwithstanding the foregoing provisions of paragraph (a)
of this Section 10.2, in the case of a Regulatory Event of Loss, if (i) the
Facility Lessee shall have executed and delivered an assumption agreement to
assume in full the Lessor Note as permitted by and in accordance with Section
2.10(b) of the Lease Indenture, (ii) all other conditions contained in such
Section 2.10(b) shall have been satisfied, and (iii) no Significant Lease
Default or Lease Event of Default shall have occurred or be continuing after
giving effect to such assumption, then, the obligation of the Facility Lessee to
pay Termination Value shall be reduced by the outstanding principal amount and
accrued interest of the Lessor Note so assumed by the Facility Lessee.

                  (d) Any payments with respect to such Unit Interest or Unit
Interests received at any time by the Owner Lessor, the Lease Indenture Trustee
or the Facility Lessee from any Governmental Entity as a result of the
occurrence of an Event of Loss described in clause (c) of the definition of
Event of Loss or from insurance proceeds as a result of the occurrence of an
Event of Loss described in clause (a) or (b) of the definition of Event of Loss
shall be applied as follows:

                           (i) all such payments received at any time by the
                  Facility Lessee shall be promptly paid to the Owner Lessor or
                  if the Lien of the Lease Indenture shall not have been
                  terminated or discharged, to the Lease Indenture Trustee, for
                  application pursuant to the following provisions of this
                  Section 10.2, except that so long as no Significant Lease
                  Default or Lease Event of Default shall have occurred and be
                  continuing (other than Lease Events of Default arising as a
                  result of such Event of Loss), the Facility Lessee may retain
                  any amounts that the Owner Lessor would at the time be
                  obligated to pay to the Facility Lessee as reimbursement under
                  the provisions of paragraph (ii) below;

                           (ii) so much of such payments as shall not exceed the
                  amount required to be paid by the Facility Lessee pursuant to
                  paragraph (a) of this

                                       16
<PAGE>   22
                  Section 10.2 shall be applied in reduction of the Facility
                  Lessee's obligation to pay such amount if not already paid by
                  the Facility Lessee or, if already paid by the Facility
                  Lessee, shall, so long as no Significant Lease Default or
                  Lease Event of Default (other than Lease Events of Default
                  arising as a result of such Event of Loss) shall have occurred
                  and be continuing, be applied to reimburse the Facility Lessee
                  for its payment of such amount; and

                           (iii) the balance, if any, of such payments remaining
                  thereafter shall be apportioned between the Owner Lessor and
                  the Facility Lessee as their interests may appear.

         Notwithstanding the foregoing, if the Facility Lessee shall have
elected to rebuild or replace any Unit and the Related Common Facilities
pursuant to Section 10.1(a), any insurance proceeds received by the Owner
Lessor, the Lease Indenture Trustee or the Facility Lessee as a result of the
occurrence of an Event of Loss described in clause (a) or (b) of the definition
of Event of Loss shall be applied as provided in Section 11.7.

         Section 10.3. Rebuild or Replace. The Facility Lessee's right to
rebuild or replace any Unit and the Related Common Facilities pursuant to
Section 10.1(a) shall be subject to the fulfillment, at the Facility Lessee's
sole cost and expense, in addition to the conditions contained in said clause
(a), of the following conditions:

                  (a) the Facility Lessee shall, on the date it gives notice
         pursuant to Section 10.1(a) of its election to rebuild or replace such
         Unit and the Related Common Facilities, (i) deliver to the Owner
         Participant an indemnity against all adverse tax risks as a result of
         such proposed rebuilding or replacement, such indemnity to be in form
         and substance satisfactory to the Owner Participant, (ii) deliver to
         the Owner Participant and, so long as the Lien of the Lease Indenture
         shall not have been terminated or discharged, the Lease Indenture
         Trustee (A) a report of R.W. Beck or another independent engineer, such
         other engineer and such report to be reasonably acceptable to the Owner
         Participant and, so long as the Lien of the Lease Indenture shall not
         have been terminated or discharged, the Lease Indenture Trustee, to the
         effect that the rebuilding or replacement of such Unit and the Related
         Common Facilities is technologically feasible and economically viable
         and that such rebuilding or replacement can be completed by a date 36
         months prior to the end of the Basic Lease Term or any Renewal Lease
         Term then in effect or elected by the Facility Lessee, (B) an appraisal
         of an independent appraiser, such appraiser and such appraisal to be
         reasonably acceptable to the Owner Participant, and, so long as the
         Lien of the Lease Indenture shall not have been terminated or
         discharged, the Lease Indenture Trustee to the effect that the
         replacement facilities to the extent of the Undivided Interest, will
         have at least the same value, residual value, useful life and utility
         as such Unit and the Related Common Facilities to the extent of the
         Undivided Interest as immediately prior to the Event of Loss, and (C)
         an Officer's Certificate of the Facility Lessee to the effect that it
         reasonably believes that the Facility Lessee will have sufficient funds
         available to continue to pay Periodic Lease Rent and Renewal Lease Rent
         during the period of such rebuilding or replacement, and (iii)
         demonstrate to the reasonable satisfaction of the Owner Participant
         and, so long as the Lien of the Lease Indenture shall not have been
         terminated or discharged, the Lease Indenture Trustee that adequate

                                       17
<PAGE>   23
         financial resources are available, from insurance proceeds (including
         any amounts held by the Lease Indenture Trustee) or otherwise, to
         complete such rebuilding or replacement;

                  (b) receipt by the Owner Participant of (i) a tax opinion of
         its counsel, such opinion to be satisfactory to the Owner Participant,
         to the effect that, assuming the proposed rebuilding or replacement is
         completed in the manner and within the time proposed, such rebuilding
         or replacement will not cause any unindemnified adverse tax
         consequences to the Owner Participant, such opinion to take into
         account any payments (or indemnities made pursuant to clause (ii) or
         (iii) of this Section 10.3(b)) made or caused to be made by the
         Facility Lessee (in its sole discretion) to reimburse (or protect) the
         Owner Participant for any loss of Tax Benefits, (ii) an indemnity
         against such risk in form and substance satisfactory to the Owner
         Participant from an entity that meets the Minimum Credit Standard, or
         (iii) any other indemnity arrangements satisfactory to the Owner
         Participant;

                  (c) the Facility Lessee shall cause the rebuilding or
         replacement of such Unit and the Related Common Facilities to commence
         as soon as practicable after notifying the Owner Lessor and, so long as
         the Lien of the Lease Indenture shall not have been terminated or
         discharged, the Lease Indenture Trustee and the Pass Through Trustee
         pursuant to Section 10.1(a), of its election to rebuild or replace such
         Unit and the Related Common Facilities, and in all events within 18
         months of the occurrence of the event that caused such Event of Loss
         and will cause work on such rebuilding or replacement to proceed
         diligently thereafter. As the rebuilding or replacement of such Unit
         and the Related Common Facilities progresses, title to an undivided
         interest equal to the applicable Unit Percentage in the rebuilt or
         replacement Unit and the applicable Common Facilities Percentage in the
         rebuilt or replacement Related Common Facilities shall vest in the
         Owner Lessor and such undivided interest shall become subject to this
         Facility Lease and, so long as the Lien of the Lease Indenture shall
         not have been terminated or discharged, the Lien of the Lease Indenture
         and be deemed a part of the Undivided Interest for all purposes of this
         Facility Lease, automatically without any further act by any Person;
         and

                  (d) on the date of the completion of such rebuilding or
         replacement of such Unit and the Related Common Facilities (the
         "Rebuilding Closing Date") the following documents shall be duly
         authorized, executed and delivered and, if appropriate, filed for
         recordation by the respective party or parties thereto and shall be in
         full force and effect, and an executed counterpart of each thereto
         shall be delivered to the Owner Lessor, the Owner Participant and, so
         long as the Lien of the Lease Indenture shall not have been terminated
         or discharged, the Lease Indenture Trustee; (i) supplements to this
         Facility Lease subjecting an undivided interest equal to the applicable
         Unit Percentage or Common Facilities Percentage in the rebuilt or
         replacement facilities to this Facility Lease (with no change in
         Purchase Price or the Periodic Lease Rent or Renewal Lease Rent as a
         result of such rebuilding or replacement), (ii) so long as the Lien of
         the Lease Indenture shall not have been terminated or discharged,
         supplements to the Lease Indenture subjecting such undivided interests
         in the rebuilt or replacement facilities to the Lien of the Lease
         Indenture, (iii) such recordings and filings as may be reasonably

                                       18
<PAGE>   24
         requested by the Owner Participant and the Lease Indenture Trustee to
         be made or filed, (iv) an opinion of counsel of the Facility Lessee,
         such counsel and such opinion to be reasonably satisfactory to the
         Owner Participant and, so long as the Lien of the Lease Indenture shall
         not have been terminated or discharged, the Lease Indenture Trustee to
         the effect that (A) the supplements to this Facility Lease required by
         clause (i) above constitute effective instruments for subjecting such
         undivided interests in the rebuilt or replacement facilities to this
         Facility Lease, (B) the supplements to the Lease Indenture required by
         clause (ii) above, if any, constitute effective instruments for
         subjecting such undivided interests in the rebuilt or replacement
         facilities to the Lien of the Lease Indenture, and (C) all filings and
         other action necessary to perfect and protect the Owner Lessor's and,
         if applicable, the Lease Indenture Trustee's interest in such undivided
         interests in the rebuilt or replacement facilities have been
         accomplished, (v) an appraisal by an Independent Appraiser, certifying
         that the rebuilt or replacement facilities have a current and residual
         value, remaining useful life and utility at least equal to the current
         and residual value, remaining useful life and utility of such Unit
         Interest immediately prior to such Event of Loss (assuming such Unit
         and the Related Common Facilities were in the condition and repair
         required to be maintained by the terms of this Facility Lease), (vi) a
         report by an independent engineer certifying that rebuilt or
         replacement facilities are in a state of repair and condition required
         by this Facility Lease, (vii) an Officer's Certificate of the Facility
         Lessee as to compliance with this Section 10.3 and that no Lease Event
         of Default shall have occurred and be continuing as a result of the
         rebuild or replacement, and (viii) satisfactory evidence as to the
         compliance with Section 11 of this Facility Lease with respect to the
         rebuilt or replacement facilities.

Whether or not the transactions contemplated by this Section 10.3 are
consummated, the Facility Lessee agrees to pay or reimburse, on an After-Tax
Basis, any costs or expenses (including reasonable legal fees and expenses)
incurred by the Owner Lessor, the Owner Participant, the Lease Indenture Trustee
and the Pass Through Trustee in connection with the transactions contemplated by
this Section 10.3.

         Section 10.4. Application of Payments Not Relating to an Event of Loss.

                  (a) In the event that during the Facility Lease Term the use
of all or any portion of the Undivided Interest is requisitioned or taken by or
pursuant to a request of any Governmental Entity under the power of eminent
domain or otherwise for a period which does not constitute an Event of Loss, the
Facility Lessee's obligation to pay all installments of Periodic Lease Rent and
Renewal Lease Rent shall continue for the duration of such requisitioning or
taking. The Facility Lessee shall be entitled to receive and retain for its own
account all sums payable for any such period by such Governmental Entity as
compensation for such requisition or taking of possession. Any amount referred
to in this Section 10.4(a) which is payable to the Facility Lessee shall not be
paid to the Facility Lessee, or if it has been previously paid directly to the
Facility Lessee, shall not be retained by the Facility Lessee, if at the time of
such payment a Significant Lease Default or Lease Event of Default shall have
occurred and be continuing, but shall be paid to and held by the Owner Lessor
or, so long as the Lien of the Lease Indenture shall not have been terminated or
discharged, the Lease Indenture Trustee as security for the obligations of the
Facility Lessee under this Facility Lease, and upon the earlier of (i) 180 days
after the Owner Lessor (or the Lease Indenture Trustee) shall have received such
amount,

                                       19
<PAGE>   25
provided the Owner Lessor (or the Lease Indenture Trustee) has not proceeded to
exercise any remedy under Section 17 and it is not stayed or prevented by law or
otherwise from exercising such remedy and (ii) such time as there shall not be
continuing any such Significant Lease Default or Lease Event of Default, such
amount shall be paid to the Facility Lessee.

                  (b) Any insurance proceeds with respect to the Undivided
Interest received at any time by the Owner Lessor, the Lease Indenture Trustee
or the Facility Lessee under any of the insurance policies required to be
maintained by the Facility Lessee under Section 11 as a result of any damage to
the Facility or any part thereof which does not constitute an Event of Loss
shall be applied as follows: (i) in accordance with Section 11.7; and (ii) the
balance, if any, of such insurance proceeds remaining thereafter shall be paid
to the Facility Lessee.

SECTION 11.       INSURANCE

         Section 11.1. Property Insurance. Subject to Section 11.6, the Facility
Lessee will maintain (or cause to be maintained) all risk property insurance
customarily carried by prudent operators of coal-fired electric generating
facilities of comparable size and risk of the Facility (to the extent of the
Undivided Interest), and against loss or damage from such causes as are
customarily insured against, which includes coverage for boiler and machinery
coverage to cover mechanical breakdown and, in any case, in an amount equal to
the Maximum Probable Loss of the Facility (to the extent of the Undivided
Interest) with a deductible not to exceed $2.5 million per occurrence.

         Section 11.2. Liability Insurance. Subject to Section 11.6, the
Facility Lessee will maintain (or cause to be maintained) commercial general
liability insurance, commercial automobile liability insurance and contractual
liability coverage, insuring against claims for bodily injury (including death)
and property damage to third parties arising out of the ownership, operation,
maintenance, condition and use of the Facility and the Colstrip Site, with
limits not less than $35 million per occurrence/aggregate with a deductible not
to exceed $2.5 million per occurrence. The Facility Lessee will periodically
review the liability insurance maintained by it or on its behalf and will, if
necessary, revise such coverage and limits (including deductibles) in order that
the liability insurance maintained by it or on its behalf is consistent with
that maintained by prudent operators of similar facilities of comparable size
and risk to the Facility; provided that the Facility Lessee may not (except as
permitted by Section 11.6) increase deductibles or decrease coverage as compared
to the amounts specified herein without the written consent of the Owner Lessor
and, so long as the Lien of the Lease Indenture has not been terminated or
discharged, the Lease Indenture Trustee. Such liability insurance may be
purchased either in a single limit or in combination with a general and an
excess policy.

         Section 11.3. Provisions with Respect to Insurance.

                  (a) Subject to Section 11.6, the Facility Lessee will place
the insurance maintained pursuant to this Section 11 with companies having an
A.M. Best rating of at least "A-" or a comparable rating by S&P or, if not so
rated, of comparable financial strength. All insurance policies required to be
maintained pursuant to Section 11.2 shall name the Owner Lessor, the Lessor
Manager, the Trust Company, the Owner Participant and, so long as the Lien of
the Lease Indenture shall not have been terminated or discharged, the Lease
Indenture Trustee

                                       20
<PAGE>   26
as additional insureds, as their interests may appear. All insurance policies
required to be maintained pursuant to this Section 11 shall also provide for at
least 30 days' prior written notice (10 days for non-payment) by the insurance
carrier to the Owner Lessor, the Owner Participant and, so long as the Lien of
the Lease Indenture shall not have been terminated or discharged, the Lease
Indenture Trustee in the event of cancellation, non-renewal, termination,
expiration or material change. The Facility Lessee will place the insurance
required by this Section 11 with insurance companies which agree to waive all
claims for premiums from, and all subrogation rights against, the Owner Lessor,
the Owner Participant and the Lease Indenture Trustee. All the insurance
maintained pursuant to this Section 11.3 shall be primary without right of
contribution of any other insurance carried by or on behalf of the Owner Lessor,
the Owner Participant or the Lease Indenture Trustee with respect to their
respective interests in the Facility, and the Colstrip Site.

                  (b) Subject to Section 11.6, the Facility Lessee will ensure
that the respective interests of the Owner Lessor, the Owner Participant and the
Lease Indenture Trustee shall not be invalidated by any act or neglect of the
Facility Lessee, or any breach or violation by the Facility Lessee of any
warranties, declarations or conditions contained in such policies or by the use
of the Facility for purposes more hazardous than permitted by such policies.
Additionally, the Facility Lessee will use its best efforts to provide that such
policies shall be endorsed to provide that, inasmuch as the policies are written
to cover more than one insured, all terms, conditions, insuring agreements and
endorsements, with the exception of limits of liability, shall operate in the
manner as if there were a separate policy covering each insured. The Facility
Lessee shall, at its own expense, make or cause to be made all proofs of loss
and take all other steps necessary to collect the proceeds of such insurance.

         Section 11.4. Reports.

                  (a) The Facility Lessee shall furnish the Owner Lessor, the
Owner Participant and, so long as the Lien of the Lease Indenture shall not have
been terminated or discharged, the Lease Indenture Trustee and the Pass Through
Trustee annually with a report of an independent insurance broker or consultant
(selected by the Facility Lessee and reasonably acceptable to the Owner Lessor)
identifying all insurance coverages in place and certifying that (i) all
premiums in respect of such policies are current and (ii) that such coverage is
in compliance with all insurance requirements set forth in this Section 11.

                  (b) The Facility Lessee shall provide the Owner Lessor, the
Owner Participant and so long as the Lien of the Lease Indenture shall hot have
been terminated or discharged, the Lease Indenture Trustee written notice at
least thirty (30) days in advance of the effective date of any material
reduction in the amount or type of property insurance coverage or any reduction
in business interruption insurance. Such notice shall specify such changes and
be accompanied by a officer's certificate of PPL Montana stating that, as so
changed, the policies will continue to comply with the provisions of Sections
11.1 and 11.3.

                  (c) Within ten (10) business days prior to the expiration and
renewal of any insurance policy required to be maintained pursuant to this
Section 11 or as soon thereafter as reasonably practicable but in any event
within ten (10) business days after such expiration and renewal, the Facility
Lessee shall provide the Owner Lessor, the Owner Participant, and, so long

                                       21
<PAGE>   27
as the Lien of the Lease Indenture shall not have been terminated or discharged,
the Lease Indenture Trustee certificates from insurance brokers or carriers to
the effect that such policy is in effect and in the case of policies maintained
pursuant to Section 11.2, indicating their status as additional insureds.

         Section 11.5. Additional Insurance by Owner Lessor. At any time the
Owner Lessor (either directly or in the name of the Owner Participant), the
Owner Participant or the Lease Indenture Trustee may at its own expense and for
its own account carry insurance with respect to its interest in the Undivided
Interest; provided, that such insurance does not in any way interfere with the
Facility Lessee's ability to obtain insurance required to be maintained under
the Project Agreements or this Section 11. Any insurance payments received from
policies maintained by the Owner Lessor, the Owner Participant or the Lease
Indenture Trustee pursuant to the previous sentence shall be retained by the
Owner Lessor, the Owner Participant or the Lease Indenture Trustee, as the case
may be, without reducing or otherwise affecting the Facility Lessee's
obligations hereunder.

         Section 11.6. Waiver of Requirements.

                  (a) If any insurance required to be maintained by the Facility
Lessee pursuant to this Section 11 (including the limits or deductibles or any
other terms under policies for such insurance) ceases to be available on a
commercially reasonable basis, the Facility Lessee shall provide written notice
to the Owner Lessor and, so long as the Lien of the Lease Indenture shall not
have been terminated or discharged, the Lease Indenture Trustee accompanied by a
letter from the Facility Lessee's insurance broker stating that such insurance
is unavailable on a commercially reasonable basis. Such notice shall be given
not less than thirty (30) days prior to the scheduled date for renewal of any
such policy. Upon receipt of such notice by the Owner Lessor, the Owner Lessor
and the Facility Lessee shall immediately enter into good faith negotiations in
order to obtain an alternative to such insurance.

                  (b) In the event that the Owner Lessor and the Facility Lessee
cannot reach a resolution acceptable to both parties within ten (10) days, the
Owner Lessor and the Facility Lessee shall make arrangements for the formation
of an insurance panel consisting of the Facility Lessee's insurance advisor (or
broker), the Owner Lessor's insurance advisor (or broker) and an independent
insurance expert from a nationally recognized insurance brokerage firm, chosen
by the Facility Lessee and reasonably acceptable to the Owner Lessor. Such
independent expert shall conduct a separate review of the relevant insurance
requirements of this Section 11 and the market for such insurance at the time,
giving due consideration to the representations of both insurance advisors, and
upon conclusion of such review shall issue a written report stating whether such
insurance is available or unavailable on a commercially reasonable basis.

                  (c) If the insurance expert concludes that such insurance is
not available on a commercially reasonable basis, the insurance expert shall
provide a written recommendation (which shall include the amount and type of
insurance which is available upon a commercially reasonable basis) not less than
fifteen (15) days before the date for renewal of such insurance. The Facility
Lessee shall, prior to the expiration of the insurance then in effect, obtain
the insurance required by this Section 11 that is available on a commercially
reasonable basis. If the senior unsecured long-term rating of the Facility
Lessee shall be rated at least investment grade

                                       22
<PAGE>   28
at the time of renewal, the recommendation of the insurance expert shall be
conclusive and binding upon the Facility Lessee and the Facility Lessee shall,
for the immediately succeeding one (1) year policy period, only be required to
carry the insurance required by this Section 11 that the expert has certified is
available on a commercially reasonable basis.

                  (d) If the senior unsecured debt of the Facility Lessee is
below investment grade at such time of renewal and in the Owner Participant's
reasonable judgment, keeping the insurance coverage at the level that is
available on a commercially reasonable basis is reasonably likely to result in a
Material Adverse Effect, then the Facility Lessee shall (a) obtain the insurance
required by Section 11 whether or not available on a commercially reasonable
basis or (b) obtain the insurance that is available on a commercially reasonable
basis and provide collateral or credit support for the difference of a type and
in an amount satisfactory to the Owner Participant. For the purposes of this
Section 11.6, insurance will be considered "not available on a commercially
reasonable basis" if it is not obtainable or obtainable only at excessive costs
which are not justified in terms of the risk to be insured and is generally not
being carried by or applicable to projects or operations similar to the Facility
because of such excessive costs.

                  (e) All fees, costs and expenses associated with the insurance
panel (including the review by the insurance expert) shall be for the sole
account of the Facility Lessee.

         Section 11.7. Application of Insurance Proceeds.

                  (a) All proceeds of the insurance maintained pursuant to
Section 11.1 hereof and Section 11.1 of the Other Facility Leases up to
$25,000,000 on account of any damage to or destruction of the Facility and/or
Colstrip Units 1 and 2 or any part thereof (in each case less the actual costs,
fees and expenses incurred in the collection thereof), shall, subject to Section
11.7(d), be paid to or retained by the Facility Lessee for application in repair
or replacement of the affected property. All proceeds of the insurance
maintained pursuant to Section 11.1 hereof and Section 11.1 of the Other
Facility Leases in excess of $25,000,000 on account of such damage or
destruction to the Facility and/or Colstrip Units 1 and 2, shall to the extent
they relate to the Undivided Interest be paid to the Owner Lessor or, if the
Lien of the Lease Indenture shall not have been terminated or discharged, the
Lease Indenture Trustee and be applied and dealt with as set forth in this
Section 11.7.

                  (b) All such proceeds actually received on account of any such
damage or destruction other than in connection with an Event of Loss shall,
unless a Significant Lease Default or a Lease Event of Default shall have
occurred and be continuing, be paid over to the Facility Lessee or as it may
direct from time to time as restoration progresses, to pay (or reimburse the
Facility Lessee for) the cost of restoration, if the amount of such proceeds
received by the Lease Indenture Trustee or the Owner Lessor, together with such
additional amounts, if any, theretofore expended by the Facility Lessee out of
its own funds for such restoration, are sufficient to pay the estimated cost of
completing such restoration, but only upon receipt by the Owner Lessor and, so
long as the Lien of the Lease Indenture shall not have been terminated or
discharged, the Lease Indenture Trustee of a written application of the Facility
Lessee accompanied by an Officer's Certificate of the Facility Lessee setting
forth in reasonable detail the nature of such restoration, the actual cash
expenditures made to date for such restoration and

                                       23
<PAGE>   29
the estimated cost to complete such restoration and stating that no Significant
Lease Default or Lease Event of Default has occurred and is continuing.

                  (c) All such proceeds received or payable on account of an
Event of Loss shall, unless the Facility Lessee has elected to rebuild or
replace the affected Facility, be dealt with in accordance with Section 10.2(d).

                  (d) Notwithstanding the foregoing provisions of this Section
11 or Section 10, so long as a Significant Lease Default or Lease Event of
Default shall have occurred and be continuing, the proceeds of any insurance
required to be maintained pursuant to this Section 11 that would otherwise be
payable to or for the account of, or that would otherwise be retained by, the
Facility Lessee pursuant to this Section 11 or Section 10.2(d) will be held as
security for the obligations of the Facility Lessee under this Facility Lease by
the Owner Lessor or, so long as the Lien of the Lease Indenture shall not have
been terminated or discharged, the Lease Indenture Trustee and, at such time
thereafter as no Significant Lease Default or Lease Event of Default shall be
continuing, such amount shall be paid promptly to the Facility Lessee.

SECTION 12.       INSPECTION

         During the Facility Lease Term, each of the Owner Participant, the
Owner Lessor, and, so long as the Lien of the Lease Indenture shall not have
been terminated or discharged, the Lease Indenture Trustee and the Pass Through
Trustee and their representatives may, during normal business hours, on
reasonable notice to the Facility Lessee and at their own risk and expense
(except, at the expense but not risk, of the Facility Lessee when a Significant
Lease Default or a Lease Event of Default has occurred and is continuing),
inspect the Facility and the records with respect to the operations and
maintenance thereof, in the Facility Lessee's custody or to which the Facility
Lessee has access; provided, however, that so long as no Significant Lease
Default or Lease Event of Default shall have occurred and be continuing, each
such Person shall only be entitled to make one inspection in any twelve-month
period, provided, further, however, that any such Person may make more than one
inspection during the last twelve months of the Facility Lease Term unless the
Facility Lessee has exercised its option under Section 15 to renew this Facility
Lease beyond such twelve month period. Any such inspection will not unreasonably
interfere with the operation or maintenance of the Facility or the conduct by
the Facility Lessee of its business and will be in accordance with the Facility
Lessee's and the Operator's safety and insurance programs. In no event shall the
Owner Lessor, the Owner Participant, the Lease Indenture Trustee or the Pass
Through Trustee have any duty or obligation to make any such inspection and such
Persons shall not incur any liability or obligation by reason of not making any
such inspection.

SECTION 13.       TERMINATION OPTION FOR BURDENSOME EVENTS

         Section 13.1. Election to Terminate. On or after the occurrence of
either of the events specified below, the Facility Lessee shall have the right,
at its option, upon at least 30 days' prior written notice to the Owner Lessor,
the Owner Participant, and, so long as the Lien of the Lease Indenture shall not
have been terminated or discharged, the Lease Indenture Trustee and the Pass
Through Trustee, to terminate this Facility Lease in whole on the Termination
Date specified in

                                       24
<PAGE>   30
such notice (which shall be a date occurring not more than 90 days after the
date of such notice) if:

                  (a) as a result of a change in Applicable Law, it shall have
         become illegal for the Facility Lessee to continue this Facility Lease
         or for the Facility Lessee to make payments under this Facility Lease
         or the other Operative Documents, and the transactions contemplated by
         the Operative Documents cannot be restructured to comply with such
         change in law in a manner acceptable to the Facility Lessee, the Owner
         Participant, the Owner Lessor, and, so long as the Lien of the Lease
         Indenture shall not have been terminated or discharged, the Lease
         Indenture Trustee and the Pass Through Trustee; or

                  (b) one or more events outside the control of the Facility
         Lessee shall have occurred which will, or can reasonably be expected
         to, give rise to an obligation by the Facility Lessee to pay or
         indemnify in respect of the Tax Indemnity Agreement or Section 11.1 or
         11.2 of the Participation Agreement; provided, however, that (i) such
         indemnity obligation (and the underlying cost or Tax) can be avoided in
         whole or in part if this Facility Lease is terminated and the Owner
         Lessor sells the Owner Lessor's Interest and (ii) the amount of such
         avoided payments hereunder would exceed (on a present value basis,
         discounted at the Discount Rate, compounded on an annual basis to the
         date of the termination) three (3) percent of the Purchase Price for
         the Undivided Interest, and provided, further, that no such termination
         option shall exist if the applicable indemnitee shall waive its right
         to, or the Owner Participant shall arrange for payment of (without
         reimbursement by the Facility Lessee or any Affiliate thereof), amounts
         of indemnification payments under the Tax Indemnity Agreement or
         Section 11.1 or 11.2 of the Participation Agreement in excess of such
         amount as to cause such avoided payments, computed in accordance with
         the preceding proviso, not to exceed three percent of the Purchase
         Price.

No termination of this Facility Lease pursuant to this Section 13.1 shall become
effective unless the conditions set forth in Section 13.5 are satisfied. If the
Facility Lessee does not give notice of its exercise of the termination option
under this Section 13.1 within twelve months of the date the Facility Lessee
receives notice or Actual Knowledge of an event or condition described above,
the Facility Lessee will lose its right to terminate this Facility Lease
pursuant to this Section 13.1 as a result of such event or condition.

         Section 13.2. Solicitation of Offers; Payments Upon Termination. Upon
receipt of a termination notice from the Facility Lessee pursuant to Section
13.1, the Owner Lessor may, but shall be under no obligation to, sell the Owner
Lessor's Interest and, at the request of the Owner Lessor, the Facility Lessee
will, as non-exclusive agent for the Owner Lessor, use commercially reasonable
efforts to obtain cash bids for the Owner Lessor's Interest. In connection with
such termination, the Facility Lessee may, but shall be under no obligation to,
make an offer to purchase the Owner Lessor's Interest on the Termination Date
set forth in the termination notice for cash in an amount at least equal to the
Termination Value for the Undivided Interest on such Termination Date, on an "as
is", "where is" and "with all faults" basis without any representation, other
than by the Owner Lessor that the Owner Lessor's Interest is free of Owner
Lessor's Liens and a warranty of the Owner Participant as to the absence of
Owner Participant's

                                       25
<PAGE>   31
Liens (any such offer by the Facility Lessee shall be a "Qualifying Cash Bid").
If the Facility Lessee makes a Qualifying Cash Bid and the Owner Lessor accepts
such offer, the Facility Lessee shall pay the Owner Lessor on the Termination
Date (a) the amount of such Qualifying Cash Bid plus (b) all amounts due and
payable under Section 13.3 (but shall have no obligation to pay Termination
Value). If the Owner Lessor (x) rejects a Qualifying Cash Bid from the Facility
Lessee, (y) accepts an offer from a third party, or (z) elects to retain the
Owner Lessor's Interest, the Facility Lessee shall pay to the Owner Lessor on
the Termination Date all amounts due and payable under Section 13.3 (but shall
have no obligation to pay Termination Value). Any transfer to a third party
shall be subject to the Project Agreements. If, within 10 days of the
Termination Date set forth in the notice of termination, the Owner Lessor does
not (1) receive a Qualifying Cash Bid from the Facility Lessee, (2) accept an
offer from a third party, or (3) elect to retain the Owner Lessor's Interest,
this Facility Lease shall continue, the Facility Lessee will lose its right to
terminate this Facility Lease for such burdensome event, and any and all rights
that the Owner Lessor had immediately prior to the receipt of the termination
notice referred to in Section 13.1 above (including any right to indemnification
which may have given rise to such burdensome termination option) shall remain in
full force and effect in all respects.

         Section 13.3. Procedure for Exercise of Termination Option. If the
Facility Lessee shall have exercised its option to terminate the Facility Lease
under Section 13.1, on the Termination Date specified in the Facility Lessee's
notice of such exercise, the Facility Lessee shall, subject to the last sentence
of Section 13.2, pay to the Owner Lessor (a) all amounts of Supplemental Lease
Rent (including all reasonable out-of-pocket costs and expenses of the Owner
Lessor, the Owner Participant, the Lease Indenture Trustee and the Pass Through
Trustee, all sales, use, value added and other Taxes required to be indemnified
by the Facility Lessee pursuant to Section 11.2 of the Participation Agreement
associated with the exercise of the termination option pursuant to this Section
13 and all indemnity amounts not obviated by the termination) due and payable on
or prior to the Termination Date, (b) any unpaid Periodic Lease Rent due before
such Termination Date, but shall not be required to pay Termination Value, and
(c) the Lessee Section 467 Loan Balance, if any, determined as of the relevant
Termination Date and the Owner Lessor shall pay to the Facility Lessee the
Lessor Section 467 Loan Balance, if any, determined as of such Termination Date.
The obligation to make such payments shall be subject to the provisions of
Section 3.3(d), and all Rent payments under Section 13.2 and this Section 13.3
shall, to the extent required by Section 3.6(a), be made to the Lease Indenture
Trustee. Concurrently with the payment of all sums specified in Section 13.2 and
this Section 13.3 (i) Periodic Lease Rent shall cease to accrue, (ii) the
Facility Lessee shall cease to have any liability to the Owner Lessor hereunder
or under the other Operative Documents, except for Supplemental Lease Rent and
other obligations (including those under Sections 11.1 and 11.2 of the
Participation Agreement) surviving pursuant to the express terms of any
Operative Document, (iii) unless the Facility Lessee assumes the Lessor Note
pursuant to Section 13.4, the Owner Lessor shall pay the outstanding principal
and accrued interest on the Lessor Note pursuant to Section 2.10(a) of the Lease
Indenture, (iv) this Facility Lease shall terminate, (v) the Owner Lessor shall,
at the Facility Lessee's cost and expense, execute and deliver to the Facility
Lessee a release or termination of this Facility Lease, (vi) in connection with
any sale of Owner Lessor's Interest pursuant to Section 13.2, the Owner Lessor
shall transfer (by an appropriate instrument of transfer in form and substance
reasonably satisfactory to the Owner Lessor and prepared by and at the expense
of the Facility Lessee) all of its right, title and interest in and to the Owner
Lessor's Interest to the purchaser pursuant to this

                                       26
<PAGE>   32
Section 13.3 on an "as is", "where is" and "with all faults" basis, without
representations or warranties other than a warranty as to the absence of Owner
Lessor's Liens and a warranty of the Owner Participant as to the absence of
Owner Participant's Liens, and (vii) the Owner Lessor shall discharge the Lien
of the Lease Indenture and execute and deliver appropriate releases and other
documents or instruments necessary or desirable to effect the foregoing, all to
be prepared, filed and recorded (as appropriate) at the cost and expense of the
Facility Lessee. It shall be a condition of the termination of this Facility
Lease pursuant to this Section 13 that the Facility Lessee shall pay all amounts
it is obligated to pay under Section 13.2 and this Section 13.3. If the Facility
Lessee fails to consummate the termination option under this Section 13 after
giving notice of its intention to do so, (i) the Facility Lease shall continue,
(ii) such failure to consummate shall not constitute a default under the
Facility Lease, and (iii) unless such failure is a consequence of a failure of
the Owner Lessor or Owner Participant to fulfill their obligations under this
Section 13 or Section 3.3(d), the Facility Lessee will lose its right to
terminate this Facility Lease pursuant to this Section 13 as a result of such
event or condition during the remainder of the Facility Lease Term.

         Section 13.4. Assumption of the Lessor Note. Notwithstanding the
foregoing provisions of Section 13.2, (a) if the Facility Lessee submits a
Qualifying Cash Bid, and the Owner Lessor accepts such Bid, (b) the Facility
Lessee shall have executed and delivered an assumption agreement to assume in
full the Lessor Note as permitted by and in accordance with Section 2.10(b) of
the Lease Indenture, (c) all other conditions contained in such Section 2.10(b)
shall have been satisfied, and (d) no Significant Lease Default or Lease Event
of Default shall have occurred and be continuing after giving effect to such
assumption, then the obligation of the Facility Lessee to pay the purchase price
set forth in its Qualifying Cash Bid shall be reduced by the outstanding
principal amount of and accrued interest on the Lessor Note so assumed by the
Facility Lessee.

         Section 13.5. Certain Conditions to Termination. Anything to the
contrary in this Section 13 notwithstanding, the Facility Lessee and the Owner
Lessor agree for the benefit of the Lease Indenture Trustee (without relieving
the Owner Lessor of any liability hereunder) that, so long as the Lien of the
Lease Indenture shall not have been terminated or discharged, no termination of
this Facility Lease pursuant to this Section 13 shall be effective and the
Facility Lessee's rights and obligations under this Facility Lease immediately
prior to the electing to terminate this Facility Lease pursuant to Section 13.1
shall remain in full force and effect in all respects (regardless of whether the
Owner Lessor shall elect to retain or sell the Undivided Interest in connection
with such proposed termination) unless and until the Facility Lessee shall have
assumed the Lessor Note pursuant to Section 13.4 or the Owner Lessor shall have
paid all outstanding principal and accrued interest on the Lessor Note pursuant
to Section 13.3 and all other amounts due under the Lease Indenture on such
proposed date of termination.

SECTION 14.       TERMINATION FOR OBSOLESCENCE

         Section 14.1. Termination. Upon at least six months' prior written
notice to the Owner Lessor, the Owner Participant and, so long as the Lien of
the Lease Indenture has not been terminated or discharged, the Lease Indenture
Trustee and the Pass Through Trustee (which notice shall be accompanied by a
certification by the board of managers of the Facility Lessee as to one or more
of the matters described in clause (a) and (b) below and an Officer's
Certificate

                                       27
<PAGE>   33
setting forth in reasonable detail the basis on which it is exercising this
termination option), the Facility Lessee shall have the option, so long as no
Lease Event of Default shall have occurred and be continuing, to terminate this
Facility Lease in whole or with respect to any Unit Interest on any Termination
Date occurring on or after the fifth anniversary of the Closing Date (the date
of termination selected by the Facility Lessee being the "Obsolescence
Termination Date") on the terms and conditions set forth in this Section 14 if
the Facility Lessee's board of directors determines in good faith that:

                  (a) such Unit is economically or technologically obsolete, as
         a result of (i) a change in Applicable Law, regulation or tariff of
         general application, or (ii) imposition by FERC or any other
         Governmental Entity having or claiming jurisdiction over the Facility
         Lessee, or the Facility of any conditions or requirements including
         requiring significant capital improvement to such Unit or the Related
         Common Facilities; or

                  (b) such Unit is otherwise economically or technologically
         obsolete or such Unit Interest is surplus to the Facility Lessee's
         needs or is no longer useful in its trade or business, including, as a
         result of (x) a change in the markets for the wholesale purchase and/or
         sale of energy or (y) any material abrogation of power purchase or sale
         agreements.

No termination of this Facility Lease pursuant to this Section 14.1 with respect
to a Unit Interest shall become effective unless (i) the Facility Lessee makes
an identical election under the Other Facility Lease to which the Facility is
subject pursuant to Section 14.1 thereof, and (ii) the conditions set forth in
Section 14.5 hereof and thereof are satisfied.

         Section 14.2. Solicitation of Offers. If the Facility Lessee shall give
the Owner Lessor notice pursuant to Section 14.1 and the Owner Lessor shall not
have elected to retain the Owner Lessor's Interest with respect to such Unit
pursuant to Section 14.3 hereof, the Facility Lessee shall, as non-exclusive
agent for the Owner Lessor, use its commercially reasonable efforts to obtain
bids and, subject to Section 14.5 hereof and, subject to the Project Agreements,
sell such Owner Lessor's Interest on the Obsolescence Termination Date, all of
the proceeds of which will be for the account of the Owner Lessor; provided that
so long as the Lien of the Lease Indenture shall not have been terminated or
discharged, the proceeds of such sale shall be paid directly to the Lease
Indenture Trustee; provided, further, that this sentence shall not limit the
Owner Lessor's obligation to pay the Lessor Section 467 Loan Balance, if any.
The Owner Lessor shall also have the right to obtain bids for the sale of such
Owner Lessor's Interest either directly or through agents other than the
Facility Lessee. At least 120 days prior to the Obsolescence Termination Date
the Facility Lessee shall certify to the Owner Lessor and the Lease Indenture
Trustee each bid or offer, the amount and terms thereof and the name and address
of the party (which shall not be the Facility Lessee, any Affiliate or any third
party with whom it or an Affiliate has an arrangement to use or operate such
Unit to generate power for the benefit of the Facility Lessee or such Affiliate
after the termination of this Facility Lease with respect to such Unit Interest)
submitting such bid or offer.

         Section 14.3. Right of Owner Lessor to Retain such Unit Interest. The
Owner Lessor may, upon payment of the Lessor Section 467 Loan Balance, if any,
payable to the Facility Lessee with respect to such Unit Interest, irrevocably
elect to retain, rather than sell, the Owner

                                       28
<PAGE>   34
Lessor's Interest with respect to such Unit by giving notice to the Facility
Lessee at least 90 days prior to the Obsolescence Termination Date. If the Owner
Lessor elects to retain such Owner Lessor's Interest pursuant to this Section
14.3, on the Obsolescence Termination Date the Facility Lessee shall pay to the
Owner Lessor (a) all Supplemental Lease Rent with respect to such Unit Interest
(including all reasonable out-of-pocket costs and expenses of the Owner Lessor,
the Owner Participant, the Lease Indenture Trustee and the Pass Through Trustee
(excluding the fees and costs of any broker unless engaged by the Facility
Lessee on the Owner Lessor's behalf) and all sales, use, value added and other
Taxes required to be indemnified by the Facility Lessee pursuant to Section 11.2
of the Participation Agreement associated with the exercise of the termination
option pursuant to this Section 14.3 due and payable on such Obsolescence
Termination Date, (b) any unpaid Periodic Lease Rent (or, in connection with a
termination of a Renewal Lease Term, Renewal Lease Rent) with respect to such
Unit Interest due before such Obsolescence Termination Date, but shall not be
required to pay Termination Value with respect to such Unit Interest and (c) the
Lessee Section 467 Loan Balance, if any, determined as of Obsolescence
Termination Date. All Rent payments under this Section 14.3 shall, to the extent
required by Section 3.6(a), be made to the Lease Indenture Trustee. Concurrently
with the payment of all sums required to be paid pursuant to this Section 14.3,
(i) Periodic Lease Rent and Renewal Lease Rent with respect to such Unit
Interest shall cease to accrue, (ii) the Facility Lessee's obligations under
Sections 6, 7, 8, 11 and 12 with respect to such Unit Interest shall terminate,
(iii) the Facility Lessee shall cease to have any other liability hereunder to
the Owner Lessor hereunder or under the other Operative Documents with respect
to such Unit Interest, except for Supplemental Lease Rent and other obligations
(including those under Sections 11.1 and 11.2 of the Participation Agreement)
surviving pursuant to the express terms of any Operative Document, (iv) the
Owner Lessor shall pay the portion of the outstanding principal and accrued
interest on the Lessor Note relating to such Unit Interest pursuant to Section
2.10(a) and (e) of the Lease Indenture, (v) if, and to the extent, the fair
market value of such Unit Interest exceeds the Termination Value with respect to
such Unit Interest, the Owner Lessor shall pay a portion of any premium due with
respect to the Lessor Note up to but not exceeding such excess, with the
balance, if any, paid by the Facility Lessee, (vi) this Facility Lease shall
terminate with respect to such Unit Interest, (vii) the Owner Lessor shall, at
the Facility Lessee's cost and expense, execute and deliver to the Facility
Lessee a release and termination of this Facility Lease with respect to such
Unit Interest and in the case of a termination with respect to either the Unit 1
Interest or the Unit 2 Interest, the Unit Interest which is obsolete shall no
longer be deemed to be part of the Undivided Interest, (viii) the Facility
Lessee will return the Owner Lessor's Interest related to such Unit Interest to
the Owner Lessor in accordance with Section 5.1, and (ix) the Owner Lessor shall
cause the Indenture Trustee to discharge the Lien of the Lease Indenture with
respect to such Unit Interest and execute and deliver appropriate releases and
other documents or instruments necessary or desirable to effect the foregoing,
all to be prepaid, filed and recorded (as appropriate) at the cost and expense
of the Facility Lessee. It shall be a condition to the termination of this
Facility Lease pursuant to this Section 14.3, that the Facility Lessee shall pay
all amounts that it is obligated to pay under this Section 14.3.

         Section 14.4. Procedure for Exercise of Termination Option. If the
Owner Lessor has not elected to retain the Owner Lessor's Interest with respect
to such Unit Interest in accordance with Section 14.3 hereof, on the
Obsolescence Termination Date the Owner Lessor shall sell the Owner Lessor's
Interest in such Unit Interest under this Section 14.4 hereof and Section 9.1 of

                                       29
<PAGE>   35
the Site Lease and Sublease to the bidder or bidders (which shall not be the
Facility Lessee, any Affiliate thereof or any third party with whom it or an
Affiliate has an arrangement to use or operate such Unit to generate power for
the benefit of the Facility Lessee or such Affiliate after the termination of
this Facility Lease with respect to such Unit Interest), that shall have
submitted the highest cash bid or bids with respect to the Owner Lessor's
Interest, and the Facility Lessee shall certify to the Owner Lessor, the Owner
Participant and, so long as the Lien of the Lease Indenture shall not have been
terminated or discharged, the Lease Indenture Trustee and the Pass Through
Trustee that such buyer is not the Facility Lessee, any Affiliate thereof or any
third party with whom it or an Affiliate has an arrangement to use or operate
such Unit to generate power for the benefit of the Facility Lessee or such
Affiliate after the termination of this Facility Lease with respect to such Unit
Interest. On the Obsolescence Termination Date, the Facility Lessee shall pay to
the Owner Lessor (a) the excess, if any, of Termination Value with respect to
such Unit Interest determined as of such Obsolescence Termination Date over the
total sales price of the Owner Lessor's Interest paid to or retained by the
Owner Lessor, after deducting from the sales price the expenses, if any,
incurred by the Owner Lessor and the Owner Participant in connection with such
sale, plus (b) any unpaid Periodic Lease Rent or Renewal Lease Rent with respect
to such Unit Interest due before such Obsolescence Termination Date, plus (c)
all amounts of Supplemental Lease Rent with respect to such Unit Interest
(including all reasonable out-of-pocket costs and expenses of the Owner Lessor,
the Owner Participant, the Lease Indenture Trustee and the Pass Through Trustee
(excluding the fees and costs of any broker unless engaged by the Facility
Lessee on the Owner Lessor's behalf) and all sales, use, value added and other
Taxes required to be indemnified by the Facility Lessee pursuant to Section 11.2
of the Participation Agreement associated with the exercise of the termination
option pursuant to this Section 14) due and payable on such Obsolescence
Termination Date, plus (d) the Lessee Section 467 Loan Balance, if any,
determined as of the Obsolescence Termination Date, plus (e) any premium due on
the portion of the Lessor Note being prepaid pursuant to this Section 14,
provided, however, if the total sales price of the Owner Lessor's Interest paid
or retained by the Owner Lessor exceeds the Termination Value with respect to
such Unit Interest as determined as of the Obsolescence Termination Date, the
Owner Lessor shall pay a portion of such premium up to but not exceeding such
excess, with the balance, if any, paid by the Facility Lessee and the Owner
Lessor shall pay to the Facility Lessee the Lessor Section 467 Loan Balance, if
any, determined as of such Obsolescence Termination Date. The obligations to
make such payments shall be subject to the provisions of Section 3.3(d), and all
Rent payments under this Section 14.4 shall, to the extent required by Section
3.6(a), be made to the Lease Indenture Trustee. Concurrently with the payment of
all sums required to be paid pursuant to this Section 14.4, (i) Periodic Lease
Rent and Renewal Lease Rent with respect to such Unit Interest shall cease to
accrue, (ii) the Facility Lessee's obligations under Sections 6, 7, 8, 11 and 12
with respect to such Unit Interest shall terminate, (iii) the Facility Lessee
shall cease to have any other liability hereunder to the Owner Lessor hereunder
or under the other Operative Documents with respect to such Unit Interest,
except for Supplemental Lease Rent and other obligations (including Sections
11.1 and 11.2 of the Participation Agreement) surviving pursuant to the express
terms of any Operative Document, (iv) the Owner Lessor will pay the portion of
the outstanding principal, premium, if any, payable by the Owner Lessor
hereunder and accrued interest on the Lessor Note relating to such Unit Interest
pursuant to Section 2.10 of the Lease Indenture, (v) this Facility Lease shall
terminate with respect to such Unit Interest, (vi) the Owner Lessor shall, at
the Facility Lessee's cost and expense, execute and deliver to the Facility

                                       30
<PAGE>   36
Lessee a release or termination of this Facility Lease with respect to such Unit
Interest and, in the case of a termination with respect to either the Unit 1
Interest or the Unit 2 Interest, the Unit Interest which is obsolete shall no
longer be deemed to be part of the Undivided Interest, (vii) the Owner Lessor
will transfer (by an appropriate instrument of transfer in form and substance
reasonably satisfactory to the Owner Lessor and prepared and recorded by and at
the expense of the Facility Lessee) the Owner Lessor's Interest relating to such
Unit Interest under this Section 14.4, to the purchaser on an "as is", "where
is" and "with all faults" basis, without representations or warranties other
than a warranty as to the absence of Owner Lessor's Liens and a warranty from
the Owner Participant as to the absence of Owner Participant's Liens, and (viii)
the Owner Lessor shall execute and deliver appropriate releases and other
documents or instruments necessary or desirable to effect the foregoing, all to
be prepaid, filed and recorded (as appropriate) at the cost and expense of the
Facility Lessee. Unless the Owner Lessor shall have elected to retain the Owner
Lessor's Interest pursuant to Section 14.3 or the Owner Lessor with the consent
of the Facility Lessee shall have entered into a legally binding contract to
sell the Owner Lessor's Interest, the Facility Lessee may, at its election,
revoke its notice of termination on at least 30 days' prior notice to the Owner
Lessor, the Owner Participant and, so long as the Lien of the Lease Indenture
shall not have been terminated or discharged, the Lease Indenture Trustee and
the Pass Through Trustee in which event this Facility Lease shall continue with
respect to such Unit Interest; provided, however, that the Facility Lessee shall
not be permitted to re-initiate a notice to terminate pursuant to Section 14.1
more than once in any five year period. The Owner Lessor shall be under no duty
to solicit bids, to inquire into the efforts of the Facility Lessee to obtain
bids or otherwise take any action in arranging any such sale of the Owner
Lessor's Interest other than, if the Owner Lessor has not elected to retain the
Owner Lessor's Interest, to transfer the Owner Lessor's Interest in accordance
with clause (vii) of this Section 14.4. It shall be a condition of the Owner
Lessor's obligation to consummate a sale of the Owner Lessor's Interest that the
Facility Lessee shall pay all amounts it is obligated to pay under this Section
14.4. If no sale shall occur on the Obsolescence Termination Date, the notice of
termination shall be deemed revoked and this Facility Lease shall continue with
respect to such Unit Interest in full force and effect in accordance with its
terms (without prejudice to the Facility Lessee's right to exercise its rights
under this Section 14).

         Section 14.5. Certain Conditions to Termination. Anything to the
contrary in this Section 14 notwithstanding, the Facility Lessee and the Owner
Lessor agree for the benefit of the Lease Indenture Trustee (without relieving
the Owner Lessor of any liability hereunder) that, so long as the Lien of the
Lease Indenture shall not have been terminated or discharged, no termination
pursuant to this Section 14 shall be effective and the Facility Lessee's rights
and obligations under this Facility Lease with respect to the Unit Interest
referred to in the applicable notice of termination pursuant to Section 14.1
shall remain in full force and effect in all respects (regardless of whether the
Owner Lessor shall elect to retain or sell the Owner Lessor's Interest in
connection with such proposed termination) unless and until the Owner Lessor
shall have paid the portion of the outstanding principal and accrued interest on
the Lessor Note with respect to such Unit Interest and the Owner Lessor and/or
the Facility Lessee shall have paid any Make-Whole Premium arising from a
termination pursuant to clause (b) of Section 14.1 to the extent provided in
Section 14.3 and 14.4, as applicable) and all other amounts due under the Lease
Indenture with respect thereto shall have been paid.

                                       31
<PAGE>   37
SECTION 15.       LEASE RENEWAL

         Section 15.1. First Wintergreen Renewal Lease Term. Not earlier than 42
months prior to the expiration of the Basic Lease Term, unless a Significant
Lease Default or a Lease Event of Default shall have occurred and be continuing,
the Facility Lessee may deliver to the Owner Lessor notice (which notice may be
in addition to a notice of the Facility Lessee's tentative interest in electing
an FMV Renewal Lease Term under Section 15.3) of the Facility Lessee's tentative
interest in renewing this Facility Lease with respect to Undivided Interest for
a term (the "First Wintergreen Renewal Lease Term") commencing on the day
following the last day of the Basic Lease Term and ending on the earlier of (a)
the latest date as of which the estimated fair market value of the Undivided
Interest determined by an Independent Appraiser selected by the Facility Lessee
and reasonably acceptable to the Owner Lessor, subsequent to the Facility
Lessee's tentative election of the First Wintergreen Renewal Lease Term (but not
earlier than 36 months prior to the expiration of the Basic Lease Term), shall
equal or exceed 20% of the Purchase Price with respect to the Undivided Interest
(without taking into account inflation or deflation subsequent to the Closing
Date) and (b) the date as of which the sum of the number of years of the
proposed First Wintergreen Renewal Lease Term and the Basic Lease Term shall
equal 75% of the estimated economic useful life of the relevant Units and the
Colstrip Project as of the Closing Date, as determined by such Independent
Appraiser. Unless the Facility Lessee shall have irrevocably elected to renew
this Facility Lease for an FMV Renewal Lease Term under Section 15.3, and
provided that neither a Significant Lease Default or Lease Event of Default
shall have occurred and be continuing on such notice date or on the date of
expiration of the Basic Lease Term, on or prior to 18 months before the
expiration of the Basic Lease Term, the Facility Lessee may deliver to the Owner
Lessor a further notice irrevocably electing to renew this Facility Lease with
respect to the Undivided Interest for the First Wintergreen Renewal Lease Term
determined as aforesaid and the First Wintergreen Renewal Lease Term shall
thereupon take effect as provided herein.

         Section 15.2. Second Wintergreen Renewal Lease Term. Not earlier than
42 months prior to the expiration of the First Wintergreen Renewal Lease Term,
unless a Significant Lease Default or a Lease Event of Default shall have
occurred and be continuing, the Facility Lessee may deliver to the Owner Lessor
notice (which notice may be in addition to a notice of the Facility Lessee's
tentative interest in electing an FMV Renewal Lease Term under Section 15.3) of
the Facility Lessee's tentative interest in renewing this Facility Lease with
respect to Undivided Interest for a term (the "Second Wintergreen Renewal Lease
Term" and together with the First Wintergreen Renewal Lease Term, the
"Wintergreen Renewal Lease Terms") commencing on the day following the last day
of the First Wintergreen Renewal Lease Term and ending on the earlier of (a) the
latest date as of which the estimated fair market value of the Undivided
Interest determined, by an Independent Appraiser selected by the Facility Lessee
and reasonably acceptable to the Owner Lessor, subsequent to the Facility
Lessee's tentative election of the Second Wintergreen Renewal Lease Term (but
not earlier than 36 months prior to the expiration of the First Wintergreen
Renewal Lease Term), shall equal or exceed 20% of the Purchase Price with
respect to the Undivided Interest (without taking into account inflation or
deflation subsequent to the Closing Date) and (b) the date as of which the sum
of the number of years of the proposed Second Wintergreen Renewal Lease Term,
the First Wintergreen Renewal Lease Term and the Basic Lease Term shall equal
75% of the estimated economic useful life of the relevant Units and the Colstrip
Project as of the Closing Date, as determined by such

                                       32
<PAGE>   38
Independent Appraiser. Unless the Facility Lessee shall have irrevocably elected
to renew this Facility Lease for a FMV Renewal Lease Term under Section 15.3,
and provided that neither a Significant Lease Default nor a Lease Event of
Default shall have occurred and be continuing on such notice date or on the date
of expiration of the First Wintergreen Renewal Lease Term, on or prior to 18
months before the expiration of the First Wintergreen Renewal Lease Term, the
Facility Lessee may deliver to the Owner Lessor a further notice irrevocably
electing to renew this Facility Lease with respect to the Undivided Interest for
the Second Wintergreen Renewal Lease Term determined as aforesaid and the Second
Wintergreen Renewal Lease Term shall thereupon take effect as provided herein.

         Section 15.3. Fair Market Value Renewal Lease Terms. Not earlier than
42 months prior to the expiration of the Basic Lease Term, the First Wintergreen
Renewal Lease Term, the Second Wintergreen Renewal Lease Term, or any other
Renewal Lease Term, unless a Significant Lease Default or Lease Event of Default
shall have occurred and be continuing, the Facility Lessee may deliver to the
Owner Lessor notice (which notice may be in addition to a notice of the Facility
Lessee's tentative interest in electing the First Wintergreen Renewal Lease Term
or the Second Wintergreen Renewal Lease Term) of the Facility Lessee's tentative
interest in renewing this Facility Lease with respect to the Undivided Interest
for a term (each such term, a "FMV Renewal Lease Term") commencing on the day
following the last day of the Basic Lease Term or a Renewal Lease Term otherwise
expiring and extending for no less than two years and no more than five years;
provided that, unless such FMV Renewal Lease Term extends to the end of the
useful life of such Units, no such FMV Renewal Lease Term shall extend beyond
the date that is three (3) years prior to the end of the useful life of such
Units (as set forth in the most recent appraisal obtained pursuant to Section
4.1(o) of the Participation Agreement, Section 15.1 or 15.2 of this Facility
Lease or Section 2.3(a) or (b) of the Site Lease and Sublease). Unless the
Facility Lessee shall have irrevocably elected to renew this Facility Lease for
a Wintergreen Renewal Lease Term pursuant to Sections 15.1 or 15.2 (it being
understood that the exercise by the Facility Lessee of its right to renew this
Facility Lease at the end of the Basic Lease Term or at the end of the First
Wintergreen Renewal Lease Term pursuant to Sections 15.1 or 15.2 hereof,
respectively, shall not impair its right to renew this Facility Lease at any
time thereafter pursuant to this Section 15.3), and provided that neither a
Significant Lease Default nor a Lease Event of Default shall have occurred and
be continuing on any such notice date or on the date of expiration of the Basic
Lease Term or the Renewal Lease Term immediately preceding such FMV Renewal
Lease Term, as the case may be, on or prior to 18 months before the expiration
of the existing Basic Lease Term or the relevant Renewal Lease Term as the case
may be, the Facility Lessee may deliver to the Owner Lessor a further notice
irrevocably electing to renew this Facility Lease with respect to the Undivided
Interest for the FMV Renewal Lease Term tentatively elected as aforesaid and the
FMV Renewal Lease Term shall thereupon take effect as provided herein.

         Section 15.4. Renewal Lease Rent for the Renewal Lease Terms.

                  (a) Renewal Lease Rent shall be paid on each January 2 and
July 2 during each Renewal Lease Term. The installment of Renewal Lease Rent for
the Undivided Interest payable on each such Rent Payment Date during the
Wintergreen Renewal Lease Terms shall be determined as follows:

                                       33
<PAGE>   39
                           (i) for each year in the period commencing on the
                  first day of the First Wintergreen Renewal Lease Term and
                  ending on the earlier of (x) the last day of the last
                  Wintergreen Renewal Lease Term elected by the Facility Lessee
                  or (y) the date which is 5 years after the last day of the
                  Basic Lease Term (such period being referred to as the
                  "Initial Period") Renewal Lease Rent shall be equal to 80% of
                  the average Basic Lease Rent for the Undivided Interest during
                  the Basic Lease Term;

                           (ii) for each year in the period commencing on the
                  day following the last day of the Initial Period and ending on
                  the earlier of (A) the last day of the last Wintergreen
                  Renewal Lease Term elected by the Facility Lessee or (B) the
                  date which is 5 years after the last day of the Initial
                  Period, Renewal Lease Rent shall be equal to 60% of the
                  average Basic Lease Rent for the Undivided Interest during the
                  Basic Lease Term; and

                           (iii) thereafter, Renewal Lease Rent shall be equal
                  to the lesser of (i) the Fair Market Rental Value for the
                  Undivided Interest, and (ii) 50% of the average Basic Lease
                  Rent for the Undivided Interest during the Basic Lease Term.

         The average Basic Lease Rent during the Basic Lease Term for the
Undivided Interest shall be determined without regard to any amount attributable
to adjustments to Basic Lease Rent pursuant to clause (i) and, unless the
applicable Modifications were financed by an Additional Equity Investment,
clause (ii) of Section 3.5(a). Renewal Lease Rent for any FMV Renewal Lease Term
shall be determined in accordance with Section 15.4(b)

                  (b) Renewal Lease Rent payable on each Rent Payment Date
during any FMV Renewal Lease Term for the Undivided Interest shall be equal to
105% of the Fair Market Rental Value thereof determined at the commencement of
such FMV Renewal Lease Term; provided, however, that if, on or prior to the
commencement of any FMV Renewal Lease Term, the Owner Lessor and the Facility
Lessee agree or, in the absence of such agreement, if the Facility Lessee shall
provide the Owner Participant with an opinion of counsel reasonably satisfactory
to the Owner Participant (as to matters of form, substance and authorship) or
with a private letter ruling, in each case to the effect that the Renewal Lease
Rent for a FMV Renewal Lease Term can be set at the Fair Market Rental Value
without resulting in adverse Federal income tax consequences to the Owner
Participant under Section 467 of the Code, the Renewal Lease Rent for the
Undivided Interest for the remainder of any current and for any subsequent FMV
Renewal Lease Term will be equal to 100% of the Fair Market Rental Value of such
Unit Interest.

         Section 15.5. Determination of Fair Market Rental Value. The Fair
Market Rental Value of the Undivided Interest as of the commencement of any
Renewal Lease Term shall be determined by agreement of the Owner Lessor and the
Facility Lessee within six months after receipt by the Owner Lessor of the
tentative notice from the Facility Lessee of its election to renew pursuant to
Section 15.1, 15.2 or 15.3 (but not more than 36 months before the commencement
of such Renewal Lease Term) or, if they shall fail to agree within such six
month period, shall be determined by an Independent Appraiser selected by the
Facility Lessee

                                       34
<PAGE>   40
and reasonably acceptable to the Owner Lessor. The appraiser's fees and expenses
shall be borne by the Facility Lessee.

         Section 15.6. Simultaneous Renewals.

         This Facility Lease may only be renewed in whole. In addition, if the
Owner Participant or any of its Affiliates is a party to any of the Other
Colstrip Lease Transactions, then the Facility Lessee shall make the same
election (to renew or not renew) under Sections 15.1, 15.2, and 15.3 of each of
the Other Facility Leases to which it is a party for such Other Colstrip Lease
Transactions to which the Owner Participant or any of its Affiliates is a party.

SECTION 16.       EVENTS OF DEFAULT

         The following events shall constitute a "Lease Event of Default"
hereunder (whether any such event shall be voluntary or involuntary or come
about or be effected by operation of law or pursuant to or in compliance with
any judgment, decree or order of any court or any order, rule or regulation of
any Governmental Entity):

                  (a) the Facility Lessee shall fail to make any payment of
         Periodic Lease Rent, Renewal Lease Rent, or Termination Value after the
         same shall have become due and such failure shall have continued (after
         application of the proceeds of any Qualifying Letter of Credit) for
         five (5) Business Days after the same shall become due; or

                  (b) the Facility Lessee shall fail to make any payment of
         Supplemental Lease Rent (other than Excepted Payments, unless the Owner
         Participant shall have declared a default with respect thereto, or
         Termination Value) after the same shall have become due and such
         failure shall have continued from a period of 30 days after receipt by
         the Facility Lessee of written notice of such default from the Owner
         Participant, the Owner Lessor, the Lease Indenture Trustee or the Pass
         Through Trustee; or

                  (c) the Facility Lessee shall fail to observe or perform its
         obligation to maintain (or cause to be maintained) insurance in the
         amounts and on the terms set forth in Section 11; or

                  (d) the Facility Lessee shall fail to perform or observe any
         covenant, obligation or agreement to be performed or observed by it
         under this Facility Lease or any other Operative Document (other than
         any covenant, obligation or agreement contained in the Tax Indemnity
         Agreement or any covenant, obligation or agreement referred to in
         clauses (a), (b), (c), (e) or (k) of this Section 16) in any material
         respect, which shall continue unremedied for 30 days after receipt by
         the Facility Lessee of written notice thereof from the Owner
         Participant, Owner Lessor, Lease Indenture Trustee or the Pass Through
         Trustee; provided, however, that if such condition cannot be remedied
         within such 30-day period, then the period within which to remedy such
         condition shall be extended up to an additional 180 days, so long as
         the Facility Lessee diligently pursues such remedy and such condition
         is reasonably capable of being remedied within such additional 180-day
         period; provided, further, that in the case of the Facility Lessee's
         obligation set forth in clause (a)(ii) of Section 7.1, if, to the
         extent and for so long as a test, challenge, appeal or proceeding shall
         be prosecuted in good faith by

                                       35
<PAGE>   41
         the Facility Lessee, the failure by the Facility Lessee to comply with
         such requirement shall not constitute a Lease Event of Default if such
         test, challenge, appeal or proceeding shall not involve any danger of
         (i) foreclosure, sale, forfeiture or loss of, or imposition of a lien
         on, any part of the Undivided Interest or the impairment of the use,
         operation or maintenance of the Facility in any material respect, or
         (ii) any criminal liability being incurred by, or any material adverse
         effect on the interests of, the Owner Participant, the Owner Lessor,
         the Lease Indenture Trustee or the Pass Through Trustee including,
         subjecting the Owner Participant or the Owner Lessor to regulation as a
         public utility under Applicable Law; and provided, further, that in the
         case of the Facility Lessee's obligation set forth in clause (a)(ii) of
         Section 7.1, if the noncompliance is not a type that can be immediately
         remedied, the failure to comply shall not be a Lease Event of Default
         if the Facility Lessee is taking all reasonable action to remedy such
         noncompliance and if, but only if, such noncompliance shall not involve
         any danger described in clause (i) or (ii) of the preceding proviso;
         and provided, further, such noncompliance, or such test, challenge,
         appeal or proceeding to review shall not extend beyond the date 36
         months prior to the scheduled expiration of the Basic Lease Term or any
         Renewal Lease Term then in effect or elected by the Facility Lessee; or

                  (e) to the extent such covenants are in effect, the Facility
         Lessee shall fail to perform or observe in any material respect the
         covenants set forth in Sections 5.2, 6.1, 6.2, 6.3, 7.1, 7.2, 15.2 or,
         to the extent such covenant relates to liens in respect of borrowed
         money, 6.4 of the Participation Agreement; or

                  (f) any representation or warranty made by the Facility Lessee
         in the Operative Documents (other than a Tax Representation) or in the
         certificate delivered by the Facility Lessee at the Closing pursuant to
         Section 4(g) of the Participation Agreement shall prove to have been
         incorrect in any material respect when made and continues to be
         material and unremedied for a period of 30 days after receipt by the
         Facility Lessee of written notice thereof; provided, however, that if
         such condition cannot be remedied within such 30-day period, then the
         period within which to remedy such condition shall be extended up to an
         additional 120 days, so long as the Facility Lessee diligently pursues
         such remedy and such condition is reasonably capable of being remedied
         within such additional 120-day period; or

                  (g) the Facility Lessee shall (i) commence a voluntary case or
         other proceeding seeking relief under Title 11 of the Bankruptcy Code
         or liquidation, reorganization or other relief with respect to itself
         or its debts under any bankruptcy, insolvency or other similar law now
         or hereafter in effect, or apply for or consent to the appointment of a
         trustee, receiver, liquidator, custodian or other similar official of
         it or any substantial part of its property, or (ii) consent to, or fail
         to controvert in a timely manner, any such relief or the appointment of
         or taking possession by any such official in any voluntary case or
         other proceeding commenced against it, or (iii) file an answer
         admitting the material allegations of a petition filed against it in
         any such proceeding, or (iv) make a general assignment for the benefit
         of creditors; or

                  (h) an involuntary case or other proceeding shall be commenced
         against the Facility Lessee seeking (i) liquidation, reorganization or
         other relief with respect to it or

                                       36
<PAGE>   42
         its debts under Title 11 of the Bankruptcy Code or any bankruptcy,
         insolvency or other similar law now or hereafter in effect, or (ii) the
         appointment of a trustee, receiver, liquidator, custodian or other
         similar official with respect to it or any substantial part of its
         property or (iii) the winding-up or liquidation of the Facility Lessee;
         and such involuntary case or other proceeding shall remain undismissed
         and unstayed for a period of 60 days; or

                  (i) so long as any of the Certificates are outstanding,
         default under any bond, debenture, note or other evidence of
         Indebtedness (but excluding Indebtedness arising under the Other
         Colstrip Lease Transactions or Non-Recourse Indebtedness) for money
         borrowed by the Facility Lessee under any mortgage, indenture or
         instrument under which there may be issued or by which there may be
         secured or evidenced any Indebtedness of the Facility Lessee, whether
         such indebtedness now exists or shall hereafter be created, which
         Indebtedness is in an aggregate principal amount exceeding $75,000,000
         and which default shall have resulted in such Indebtedness becoming or
         being declared due and payable prior to the date on which it would
         otherwise have become due and payable, without such Indebtedness having
         been discharged, or such acceleration having been rescinded or
         annulled; or

                  (j) so long as any of the Certificates are outstanding, and
         PPL Montana or any of its Affiliates is the Facility Lessee under this
         Facility Lease, the occurrence of a Change of Control; or

                  (k) the Facility Lessee shall fail (i) to cause a Qualifying
         Letter of Credit to be replaced, or reinstated to the full amount
         required, in accordance with Section 6.5(e) of the Participation
         Agreement within 90 days of any drawing thereon, or (ii) to perform or
         observe any of the other covenants in Section 6.5 of the Participation
         Agreement.

SECTION 17.       REMEDIES

         Section 17.1. Remedies for Lease Event of Default. Upon the occurrence
of any Lease Event of Default and at any time thereafter so long as the same
shall be continuing, the Owner Lessor may, at its option, declare this Facility
Lease to be in default by written notice to the Facility Lessee; provided that
upon the occurrence of a Lease Event of Default described in paragraph (g) or
(h) of Section 16, this Facility Lease shall automatically be deemed to be in
default without the need for giving any notice; and at any time thereafter, so
long as the Facility Lessee shall not have remedied all outstanding Lease Events
of Default, the Owner Lessor may do one or more of the following as the Owner
Lessor in its sole discretion shall elect, to the extent permitted by, and
subject to compliance with any mandatory requirements of, Applicable Law then in
effect:

                  (a) proceed by appropriate court action or actions, either at
         law or in equity, to enforce performance by the Facility Lessee, at the
         Facility Lessee's sole cost and expense, of the applicable covenants
         and terms of this Facility Lease or to recover damages for breach
         thereof;

                                       37
<PAGE>   43
                  (b) by notice in writing to the Facility Lessee, terminate
         this Facility Lease whereupon all right of the Facility Lessee to the
         possession and use under this Facility Lease of the Undivided Interest
         shall absolutely cease and terminate but the Facility Lessee shall
         remain liable as hereinafter provided; and thereupon, the Owner Lessor
         may demand that the Facility Lessee, and the Facility Lessee shall,
         upon written demand of the Owner Lessor and at the Facility Lessee's
         expense, forthwith return possession of the Undivided Interest to the
         Owner Lessor in the manner and condition required by, and otherwise in
         accordance with all of the provisions of Section 5, except those
         provisions relating to periods of notice; and the Owner Lessor may
         thenceforth hold, possess and enjoy the same free from any right of the
         Facility Lessee, or its successor or assigns, to use the Undivided
         Interest for any purpose whatever;

                  (c) sell the Owner Lessor's Interest at public or private
         sale, as the Owner Lessor may determine, free and clear of any rights
         of the Facility Lessee under this Facility Lease and without any duty
         to account to the Facility Lessee with respect to such sale or for the
         proceeds thereof (except to the extent required by paragraph (f) below
         if the Owner Lessor elects to exercise its rights under said paragraph
         and by Applicable Law), in which event the Facility Lessee's obligation
         to pay Periodic Lease Rent hereunder due for any periods subsequent to
         the date of such sale shall terminate (except to the extent that
         Periodic Lease Rent and Renewal Lease Rent is to be included in
         computations under paragraph (e) or (f) below if the Owner Lessor
         elects to exercise its rights under said paragraphs);

                  (d) hold, keep idle or lease to others the Owner Lessor's
         Interest as the Owner Lessor in its sole discretion may determine, free
         and clear of any rights of the Facility Lessee under this Facility
         Lease and without any duty to account to the Facility Lessee with
         respect to such action or inaction or for any proceeds with respect
         thereto, except that the Facility Lessee's obligation to pay Periodic
         Lease Rent and Renewal Lease Rent due for any periods subsequent to the
         date upon which the Facility Lessee shall have been deprived of
         possession and use of the Undivided Interest pursuant to this Section
         17 shall be reduced by the net proceeds, if any, received by the Owner
         Lessor from leasing the Undivided Interest to any Person other than the
         Facility Lessee;

                  (e) whether or not the Owner Lessor shall have exercised, or
         shall thereafter at any time exercise, any of its rights under
         paragraph (b) above with respect to the Undivided Interest, the Owner
         Lessor, by written notice to the Facility Lessee specifying a
         Termination Date that shall be not earlier than 10 days after the date
         of such notice, may demand that the Facility Lessee pay to the Owner
         Lessor, and the Facility Lessee shall pay to the Owner Lessor, on the
         Termination Date specified in such notice, any unpaid Periodic Lease
         Rent and Renewal Lease Rent due before such Termination Date, any
         Supplemental Lease Rent due and payable as of the payment date
         specified in such notice, the Lessee Section 467 Loan Balance, if any,
         computed as of the Termination Date, plus as liquidated damages for
         loss of a bargain and not as a penalty (in lieu of the Periodic Lease
         Rent and Renewal Lease Rent due after the Termination Date specified in
         such notice), (i) an amount equal to the excess, if any, of the
         Termination Value for the Undivided Interest computed as of the
         Termination Date specified in such notice over the Fair Market Sales
         Value of the Owner Lessor's Interest as of the Termination Date

                                       38
<PAGE>   44
         specified in such notice, or (ii) an amount equal to the excess, if
         any, of Termination Value for the Undivided Interest computed as of the
         Termination Date specified in such notice over the Fair Market Rental
         Value of the Owner Lessor's Interest until the end of the Basic Lease
         Term or the then current Renewal Lease Term, after discounting such
         Fair Market Rental Value semiannually to present value as of the
         Termination Date specified in such notice at a rate equal to the Lease
         Debt Rate, and upon payment of such excess amount under either clause
         (i) or (ii) of this paragraph (e), this Facility Lease, and the
         Facility Lessee's obligation to pay Periodic Lease Rent hereunder due
         for any periods subsequent to the date of such payment shall terminate;

                  (f) if the Owner Lessor shall have sold the Owner Lessor's
         Interest pursuant to paragraph (c) above, the Owner Lessor may, if it
         shall so elect, demand that the Facility Lessee pay to the Owner
         Lessor, and the Facility Lessee shall pay to the Owner Lessor, as
         liquidated damages for loss of a bargain and not as a penalty (in lieu
         of the Periodic Lease Rent and Renewal Lease Rent due for any periods
         subsequent to the date of such sale), an amount equal to (i) any unpaid
         Periodic Lease Rent and Renewal Lease Rent due before the date of such
         sale and, (ii) if that date is not a Termination Date, the daily
         equivalent of Periodic Lease Rent or Renewal Lease Rent for the period
         from the preceding Termination Date to the date of such sale, plus
         (iii) the amount, if any, by which the Termination Value for the
         Undivided Interest computed as of the Termination Date next preceding
         the date of such sale or, if such sale occurs on a Rent Payment Date or
         a Termination Date then computed as of such date, exceeds the net
         proceeds of such sale, plus (iv) the Lessee Section 467 Loan Balance,
         if any, computed as of such date or if that date is not a Termination
         Date, as of the Termination Date next preceding the date of such sale
         and, upon payment of such amount, this Facility Lease and the Facility
         Lessee's obligation to pay Periodic Lease Rent and Renewal Lease Rent
         for any periods subsequent to the date of such payment shall terminate;

                  (g) apply any amounts which are held by the Owner Lessor or
         the Lease Indenture Trustee under Section 10.2(d) or 11.7 as security
         for the Facility Lessee's obligations hereunder against any amounts
         owed by the Facility Lessee hereunder or under any other Operative
         Document; or

                  (h) exercise its rights under any Qualifying Letter of Credit
         and apply the proceeds thereof against any amounts owed by the Facility
         Lessee hereunder or under any other Operative Document.

         In addition, the Facility Lessee shall be liable, except as otherwise
provided above, for (i) any and all unpaid Periodic Lease Rent and Renewal Lease
Rent due hereunder before or during the exercise of any of the foregoing
remedies, (ii) in the case of a Lease Event of Default described in Section
16(j), any Change of Control Premium payable under Section 4.2(a) of the Lease
Indenture, and (iii) on an After-Tax Basis, for legal fees and other costs and
expenses incurred by reason of the occurrence of any Lease Event of Default or
the exercise of the Owner Lessor's remedies with respect thereto, including the
repayment in full of any costs and expenses necessary to be expended in
connection with the return of the Undivided Interest in accordance with Section
5 hereof, including, any costs and expenses incurred by the Owner Lessor, the
Owner Participant, the Lease Indenture Trustee and the Pass Through Trustee in
connection with

                                       39
<PAGE>   45
retaking constructive possession of, or in repairing, such Undivided Interest in
order to cause it to be in compliance with all maintenance standards imposed by
this Facility Lease.

         Upon termination of this Facility Lease pursuant to clause (b) or an
election by the Owner Lessor to receive liquidated damages under clauses (e) or
(f), then on the Applicable Date the Facility Lessee shall (without duplication
of the amounts paid under clause (e) or (f) above) pay to the Owner Lessor the
Lessee Section 467 Loan Balance calculated as of the Applicable Date or if the
Applicable Date is not a Termination Date, as of the next preceding Termination
Date, and the Owner Lessor shall pay to the Facility Lessee the Lessor Section
467 Loan Balance calculated as of the Applicable Date, or if the Applicable Date
is not a Termination Date, the Termination Date, next preceding the Applicable
Date. The Applicable Date shall be the earlier to occur of (i) the date this
Facility Lease is terminated pursuant to clause (b), (ii) the Termination Date
specified in any notice pursuant to clause (e), or (iii) the date of any sale
pursuant to clause (e). The obligation to make such payments shall be subject to
the provisions of Section 3.3(d), and all payments of Rent under this Section
10.2(a) shall, to the extent required by Section 3.6(a), be made to the Lease
Indenture Trustee.

         Section 17.2. Cumulative Remedies. The remedies in this Facility Lease
provided in favor of the Owner Lessor shall not be deemed exclusive, but shall
be cumulative and shall be in addition to all other remedies in its favor
existing at law or in equity; and the exercise or beginning of exercise by the
Owner Lessor of any one or more of such remedies shall not, except as
specifically provided in this Section 17, preclude the simultaneous or later
exercise by the Owner Lessor of any or all of such other remedies. To the extent
permitted by Applicable Law, the Facility Lessee hereby waives any rights now or
hereafter conferred by statute or otherwise which may require the Owner Lessor
to sell, lease or otherwise use the Undivided Interest or any Component thereof
in mitigation of the Owner Lessor's damages as set forth in this Section 17 or
which may otherwise limit or modify any of the Owner Lessor's rights and
remedies in this Section 17.

         Section 17.3. No Delay or Omission to be Construed as Waiver. No delay
or omission to exercise any right, power or remedy accruing to the Owner Lessor
upon any breach or default by the Facility Lessee under this Facility Lease
shall impair any such right, power or remedy of the Owner Lessor, nor shall any
such delay or omission be construed as a waiver of any breach or default, or of
any similar breach or default hereafter occurring; nor shall any waiver of a
single breach or default be deemed a waiver of any subsequent breach or default.

         Section 17.4. Significant Lease Default; Drawings Under Qualifying
Letter of Credit. Notwithstanding anything herein to the contrary and without
limiting the Owner Lessor's rights to draw upon any Qualified Letter of Credit
under Section 17.1(h), upon the occurrence and during the continuance of a
Significant Lease Default of the type described in clause (i) of the definition
of Significant Lease Default, the Owner Lessor shall have the right to draw upon
any Qualifying Letter of Credit to pay any portion of Periodic Lease Rent or
Termination Value which was not paid when due.

                                       40
<PAGE>   46
SECTION 18.       SECURITY INTEREST AND INVESTMENT OF SECURITY FUNDS.

         Any moneys received by the Owner Lessor or the Lease Indenture Trustee
pursuant to Section 10.2(d) or 11.7 shall, until paid to the Facility Lessee in
accordance with such Sections, be held by the Owner Lessor or the Lease
Indenture Trustee, as the case may be, as security for the Facility Lessee's
obligations under this Facility Lease and be invested in Permitted Instruments
by the Owner Lessor or the Lease Indenture Trustee, as the case may be, at the
sole risk of the Facility Lessee, from time to time as directed in writing by
the Facility Lessee if such instruments are reasonably available for purchase.
Any gain (including interest received) realized as the result of any such
Permitted Instrument (net of any fees, commissions, taxes and other expenses, if
any, incurred in connection with such Permitted Instrument) shall be applied or
remitted to the Facility Lessee in the same manner as the principal invested.

SECTION 19.       FACILITY LESSEE'S RIGHT TO SUBLEASE

         The Facility Lessee shall have the right to sublease the Undivided
Interest without the consent of the Owner Lessor, the Owner Participant, the
Lease Indenture Trustee or the Pass Through Trustee under the following
conditions:

                  (a) the sublessee (i) is a solvent corporation, partnership,
         business trust, limited liability company or other person or entity not
         subject to bankruptcy proceedings, (ii) is not involved in material
         litigation with the Owner Participant, and (iii) is, or its operating
         and maintenance obligations under the sublease are guaranteed by, or
         such obligations are contracted to be performed by, an experienced,
         reputable operator of coal-fired electric generating assets;

                  (b) the Owner Lessor, the Owner Participant, and so long as
         the Lien of the Lease Indenture shall not have been terminated or
         discharged, the Lease Indenture Trustee and the Pass Through Trustee
         shall have received an opinion of counsel, which opinion and counsel
         shall be reasonably acceptable to each such recipient, to the effect
         that all regulatory approvals required to enter into the sublease have
         been obtained;

                  (c) the sublease does not extend beyond the scheduled
         expiration of the applicable Basic Lease Term or any Renewal Lease Term
         then in effect or elected by the Facility Lessee (and may be terminated
         upon early termination of this Facility Lease) and is expressly
         subordinated to this Facility Lease;

                  (d) all terms and conditions of this Facility Lease and the
         other Operative Documents remain in effect and the Facility Lessee
         remains fully and primarily liable for its obligations under this
         Facility Lease and the other Operative Documents;

                  (e) no Significant Lease Default or Lease Event of Default
         under this Facility Lease shall have occurred and be continuing;

                  (f) the sublease prohibits further assignment or subletting;

                  (g) the sublease requires the sublessee to operate and
         maintain the Facility in a manner consistent with this Facility Lease;

                                       41
<PAGE>   47
                  (h) the sublease does not cause the property to become
         "tax-exempt use property" within the meaning of Section 168(h) of the
         Code (unless the Facility Lessee shall make a payment to the Owner
         Participant contemporaneously with the execution of the sublease that
         in the reasonable judgement of the Owner Participant compensates such
         Owner Participant for the adverse tax consequences resulting from the
         classification of the property as "tax-exempt use property"); and

                  (i) so long as the Lien of the Lease Indenture shall not have
         been terminated or discharged, the terms of the sublease do not result
         in any prepayment of Periodic Lease Rent or any lump sum or advance
         payments to the Facility Lessee or any of its Affiliates in excess of
         $1,000,000 in the aggregate.

         As a condition precedent to such sublease, the Facility Lessee shall
provide the Owner Lessor, the Owner Participant, and, so long as the Lien of the
Lease Indenture shall not have been terminated or discharged, the Lease
Indenture Trustee with all documentation in respect of such sublease and an
opinion of counsel to the effect that such sublease complies with the provisions
of this Section 19 (such documentation, counsel and opinion to be reasonably
satisfactory to such recipients). The Facility Lessee shall pay, on an After-Tax
Basis, all reasonable documented out-of-pocket expenses of the Owner Lessor, the
Owner Participant, the Lease Indenture Trustee and the Pass Through Trustee in
connection with such sublease.

SECTION 20.       OWNER LESSOR'S RIGHT TO PERFORM

         If the Facility Lessee fails to make any payment required to be made by
it hereunder or fails to perform or comply with any of its other agreements
contained herein after notice to the Facility Lessee and failure of the Facility
Lessee to so perform or comply within 10 days thereafter, the Owner Lessor or
the Owner Participant may itself make such payment or perform or comply with
such agreement in a reasonable manner, but shall not be obligated hereunder to
do so, and the amount of such payment and of the reasonable expenses of the
Owner Lessor or the Owner Participant incurred in connection with such payment
or the performance of or compliance with such agreement, as the case may be,
together with interest thereon at the Overdue Rate, to the extent permitted by
Applicable Law, shall be deemed to be Supplemental Lease Rent, payable by the
Facility Lessee to the Owner Lessor on demand.

SECTION 21.       SECURITY FOR OWNER LESSOR'S OBLIGATION TO THE LEASE INDENTURE
                  TRUSTEE

         In order to secure the Lessor Note, the Owner Lessor will assign and
grant a Lien to the Lease Indenture Trustee in and to all of the Owner Lessor's
right, title and interest in, to and under this Facility Lease, and grant a
security interest in favor of the Lease Indenture Trustee in all of the Owner
Lessor's right, title and interest in and to the Undivided Interest (other than
Excepted Payments and Excepted Rights). The Facility Lessee hereby consents to
such assignment and to the creation of such Lien and security interest and
acknowledges receipt of copies of the Lease Indenture, it being understood that
such consent shall not affect any requirement or the absence of any requirement
for any consent of the Facility Lessee under any other circumstances. Unless and
until the Facility Lessee shall have received written notice from the Lease
Indenture Trustee that the Lien of the Lease Indenture has been fully
terminated, the

                                       42
<PAGE>   48
Lease Indenture Trustee shall have the right to exercise the rights of the Owner
Lessor under this Facility Lease to the extent set forth in and subject in each
case to the exceptions set forth in the Lease Indenture. TO THE EXTENT, IF ANY,
THAT THIS FACILITY LEASE CONSTITUTES CHATTEL PAPER (AS SUCH TERM IS DEFINED IN
THE UNIFORM COMMERCIAL CODE AS IN EFFECT IN ANY APPLICABLE JURISDICTION), NO
SECURITY INTEREST IN THIS FACILITY LEASE MAY BE CREATED THROUGH THE TRANSFER OR
POSSESSION OF ANY COUNTERPART HEREOF OTHER THAN THE ORIGINAL COUNTERPART, WHICH
SHALL BE IDENTIFIED AS THE COUNTERPART CONTAINING THE RECEIPT THEREFOR EXECUTED
BY THE LEASE INDENTURE TRUSTEE ON THE SIGNATURE PAGE THEREOF.

SECTION 22.       WAIVER OF RIGHT TO PARTITION

         So long as the Facility or any part thereof as originally constructed,
reconstructed or added to is used or useful for the generation of electrical
power and energy, or to the end of the period permitted by Applicable Law,
whichever first occurs, the Owner Lessor waives its right to partition whether
by partition in kind or sale and division of the proceeds thereof, and agrees
that it will not resort to any action at law or in equity to partition and
further waives the benefit of all laws that may now or hereafter authorize such
partition of the properties comprising the Facilities. It is agreed that this
covenant shall be deemed to run with the land. All instruments of conveyance
which effect, evidence or vest the ownership interest of the Owner Lessor in the
Facility shall contain this waiver of right to partition.

SECTION 23.       MISCELLANEOUS

         Section 23.1. Amendments and Waivers. No term, covenant, agreement or
condition of this Facility Lease may be terminated, amended or compliance
therewith waived (either generally or in a particular instance, retroactively or
prospectively) except by an instrument or instruments in writing executed by
each party hereto.

         Section 23.2. Notices. Unless otherwise expressly specified or
permitted by the terms hereof, all communications and notices provided for
herein to a party hereto shall be in writing or by a telecommunications device
capable of creating a written record, and any such notice shall become effective
(a) upon personal delivery thereof, including by overnight mail or courier
service, (b) in the case of notice by United States mail, certified or
registered, postage prepaid, return receipt requested, upon receipt thereof, or
(c) in the case of notice by such a telecommunications device, upon transmission
thereof, provided such transmission is promptly confirmed by either of the
methods set forth in clauses (a) and (b) above, in each case addressed to such
party and copy party at its address set forth below or at such other address as
such party or copy party may from time to time designate by written notice to
the other party:

                                       43
<PAGE>   49
         If to the Owner Lessor:

                  Montana OL3 LLC
                  c/o Wilmington Trust Company
                  Rodney Square North
                  1100 North Market Street
                  Wilmington, DE 19890-0001
                  Telephone No.: 302-651-1000
                  Facsimile No.: 302-651-8882
                  Attention: Corporate Trust Administration

         with a copy to the Owner Participant:

                  Montana OP3 LLC
                  c/o Bell Atlantic Credit Corporation
                  245 Park Avenue, 40th Floor
                  New York, New York 10167
                  Telephone No.: 212-557-4799
                  Facsimile No.: 212-557-4569
                  Attention: Asset Administrator

         and to the Lease Indenture Trustee:

                  The Chase Manhattan Bank
                  Capital Markets Fiduciary Services
                  450 West 33rd Street, 15th Floor
                  New York, New York 10001-2697
                  Telephone No.: (212) 946-7557
                  Facsimile No.: (212) 946-8177/8
                  Attention: Annette M. Marsula

         and to the Pass Through Trustee:

                  The Chase Manhattan Bank
                  Capital Markets Fiduciary Services
                  450 West 33rd Street, 15th Floor
                  New York, New York 10001-2697
                  Telephone No.: (212) 946-7557
                  Facsimile No.: (212) 946-8177/8
                  Attention: Annette M. Marsula

                                       44
<PAGE>   50
         If to the Facility Lessee:

                  PPL Montana, LLC
                  303 North Broadway, Suite 400
                  Billings, MT 59101
                  Telephone No.:  (406) 869-5100
                  Facsimile No. :  (406) 869-5149
                  Attention: Vice President and General Counsel

         Section 23.3. Survival. Except for the provisions of Sections 3.3(d),
3.4, 3.6, 5, 9 and 17, which shall survive, the warranties and covenants made by
each party hereto shall not survive the expiration or termination of this
Facility Lease in accordance with its terms.

         Section 23.4. Successors and Assigns.

                  (a) This Facility Lease shall be binding upon and shall inure
to the benefit of, and shall be enforceable by, the parties hereto and their
respective successors and assigns as permitted by and in accordance with the
terms hereof.

                  (b) Except as expressly provided herein or in the other
Operative Documents, neither party hereto may assign its interests or transfer
its obligations herein without the consent of the other party hereto.

         Section 23.5. "True Lease". This Facility Lease shall constitute an
agreement of lease and nothing herein shall be construed as conveying to the
Facility Lessee any right, title or interest in or to the Undivided Interest
except as lessee only.

         Section 23.6. Business Day. Notwithstanding anything herein to the
contrary, if the date on which any payment or performance is to be made pursuant
to this Facility Lease is not a Business Day, the payment otherwise payable on
such date shall be payable on the next succeeding Business Day with the same
force and effect as if made on such scheduled date and (provided such payment is
made on such succeeding Business Day) no interest shall accrue on the amount of
such payment from and after such scheduled date to the time of such payment on
such next succeeding Business Day.

         Section 23.7. Governing Law. This Facility Lease (other than Section
2.2) shall be in all respects governed by and construed in accordance with the
laws of the State of New York, including all matters of construction, validity
and performance (without giving effect to the conflicts of laws provisions
thereof, other than New York General Obligations Law Section 5-1401), except to
the extent the laws of the State of Montana are mandatorily applicable under the
laws of the State of Montana. Section 2.2 of this Facility Lease shall be
governed by and construed in accordance with the laws of the State of Montana
(without giving effect to the conflicts of laws provisions thereof).

         Section 23.8. Severability. Any provision of this Facility Lease that
is prohibited or unenforceable in any jurisdiction shall, as to such
jurisdiction, be ineffective to the extent of such prohibition or
unenforceability without invalidating the remaining provisions hereof, and any

                                       45
<PAGE>   51
such prohibition or unenforceability in any jurisdiction shall not invalidate or
render unenforceable such provision in any other jurisdiction.

         Section 23.9. Counterparts. This Facility Lease may be executed by the
parties hereto in separate counterparts, each of which, subject to Section 21,
when so executed and delivered shall be an original, but all such counterparts
shall together constitute but one and the same instrument.

         Section 23.10. Headings and Table of Contents. The headings of the
sections of this Facility Lease and the Table of Contents are inserted for
purposes of convenience only and shall not be construed to affect the meaning or
construction of any of the provisions hereof.

         Section 23.11. Further Assurances. Each party hereto will promptly and
duly execute and deliver such further documents and assurances for and take such
further action reasonably requested by the other party, all as may be reasonably
necessary to carry out more effectively the intent and purpose of this Facility
Lease.

         Section 23.12. Effectiveness. This Facility Lease has been dated as of
the date first above written for convenience only. This Facility Lease shall be
effective on July 20, 2000, the date of execution and delivery by the Facility
Lessee and the Owner Lessor.

         Section 23.13. Limitation of Liability. It is expressly understood and
agreed by the parties hereto that (a) this Facility Lease is executed and
delivered by Wilmington Trust Company ("Wilmington"), not individually or
personally but solely as manager of the Owner Lessor under the LLC Agreement, in
the exercise of the powers and authority conferred and vested in it pursuant
thereto, (b) each of the representations, undertakings and agreements herein
made on the part of the Owner Lessor is made and intended not as personal
representations, undertakings and agreements by Wilmington but is made and
intended for the purpose for binding only the Owner Lessor, (c) nothing herein
contained shall be construed as creating any liability on Wilmington
individually or personally, to perform any covenant either expressed or implied
contained herein, all such liability, if any, being expressly waived by the
parties hereto or by any Person claiming by, through or under the parties hereto
and (d) under no circumstances shall Wilmington, be personally liable for the
payment of any indebtedness or expenses of the Owner Lessor or be liable for the
breach or failure of any obligation, representation, warranty or covenant made
or undertaken by the Owner Lessor under this Facility Lease.

         Section 23.14. Measuring Life. If and to the extent that any of the
rights and privileges granted under this Facility Lease, would, in the absence
of the limitation imposed by this sentence, be invalid or unenforceable as being
in violation of the rule against perpetuities or any other rule or law relating
to the vesting of interests in property or the suspension of the power of
alienation of property, then it is agreed that notwithstanding any other
provision of this Facility Lease, such options, rights and privileges, subject
to the respective conditions hereof governing the exercise of such options,
rights and privileges, will be exercisable only during (a) the longer of (i) a
period which will end twenty-one (21) years after the death of the last survivor
of the descendants living on the date of the execution of this Facility Lease of
the following Presidents of the United States: Franklin D. Roosevelt, Harry S.
Truman, Dwight D. Eisenhower, John F. Kennedy, Lyndon B. Johnson, Richard M.
Nixon, Gerald R. Ford, James E. Carter, Ronald W.

                                       46
<PAGE>   52
Reagan, George H.W. Bush and William J. Clinton or (ii) the period provided
under the Uniform Statutory Rule Against Perpetuities or (b) the specific
applicable period of time expressed in this Facility Lease, whichever of (a) and
(b) is shorter.

                                       47
<PAGE>   53
         IN WITNESS WHEREOF, the Owner Lessor and the Facility Lessee have
caused this Facility Lease to be duly executed and delivered under seal by their
respective officers thereunto duly authorized.

                              MONTANA OL3 LLC

                              By:  Wilmington Trust Company, not in its
                                   individual capacity but solely as
                                   Lessor Manager

                                   By:    /s/ James P. Lawler
                                          --------------------------------------
                                          Name:     James P. Lawler
                                          Title:    Vice President

                              PPL MONTANA, LLC

                              By:       /s/ Paul A. Farr
                                       -----------------------------------------
                                     Name:     Paul A. Farr
                                     Title:    Vice President
<PAGE>   54
*Receipt of the original counterpart of the foregoing Facility Lease is hereby
acknowledged on this ____ day of July, 2000.

                               THE CHASE MANHATTAN BANK,
                               as Lease Indenture Trustee

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

-------------
* This acknowledgment executed in the original counterpart only.

<PAGE>   55
                                                                  EXHIBIT 4.7(a)
                                                                      SCHEDULE 1
                                                               TO FACILITY LEASE

                         PERIODIC LEASE RENT PERCENTAGES

<TABLE>
<CAPTION>
 RENT PAYMENT DATES                          PERIODIC LEASE RENT PERCENTAGE
<S>                                          <C>
 Oct  2 2000                                                   0.000000000%
 Jan  2 2001                                                   5.348585366%
 Jul  2 2001                                                   5.188447202%
 Jan  2 2002                                                   3.623064993%
 Jul  2 2002                                                   8.378365359%
 Jan  2 2003                                                   3.411390739%
 Jul  2 2003                                                   8.041131021%
 Jan  2 2004                                                   3.205308004%
 Jul  2 2004                                                   7.407178071%
 Jan  2 2005                                                   3.018269002%
 Jul  2 2005                                                   6.270394045%
 Jan  2 2006                                                   2.873508394%
 Jul  2 2006                                                   6.375861578%
 Jan  2 2007                                                   2.717608178%
 Jul  2 2007                                                   6.019458787%
 Jan  2 2008                                                   2.570632677%
 Jul  2 2008                                                   6.688026884%
 Jan  2 2009                                                   2.387361165%
 Jul  2 2009                                                   7.306419080%
 Jan  2 2010                                                   2.168401651%
 Jul  2 2010                                                   7.968160951%
 Jan  2 2011                                                   1.910236366%
 Jul  2 2011                                                   8.357727905%
 Jan  2 2012                                                   1.623234046%
 Jul  2 2012                                                   8.741890724%
 Jan  2 2013                                                   1.357186349%
 Jul  2 2013                                                   9.832342973%
 Jan  2 2014                                                   0.979916295%
 Jul  2 2014                                                  10.601366256%
 Jan  2 2015                                                   0.574243500%
 Jul  2 2015                                                   9.506229857%
 Jan  2 2016                                                   0.196940874%
 Jul  2 2016                                                   3.599395122%
 Jan  2 2017                                                   0.130287805%
 Jul  2 2017                                                   0.861995122%
 Jan  2 2018                                                   0.097715854%
 Jul  2 2018                                                   0.829423171%
 Jan  2 2019                                                   0.065143902%
 Jul  2 2019                                                   0.796851220%
 Jan  2 2020                                                   0.032571951%
 Jul  2 2020                                                   0.764279268%
 Jan  2 2021                                                   0.574238447%
 Jul  2 2021                                                   0.813964974%
 Jan  2 2022                                                   0.850613103%
 Jul  2 2022                                                   0.850613103%
 Jan  2 2023                                                   0.888842103%
</TABLE>
<PAGE>   56
                                                               TO FACILITY LEASE

<TABLE>
<S>                                                            <C>
 Jul  2 2023                                                   0.888842103%
 Jan  2 2024                                                   0.928729273%
 Jul  2 2024                                                   0.928729273%
 Jan  2 2025                                                   0.970346535%
 Jul  2 2025                                                   0.970346535%
 Jan  2 2026                                                   1.013768931%
 Jul  2 2026                                                   1.013768931%
 Jan  2 2027                                                   1.059074758%
 Jul  2 2027                                                   1.059074758%
 Jan  2 2028                                                   0.968862341%
 Jul  2 2028                                                   0.914690317%
 Jan  2 2029                                                   0.892256545%
 Jul  2 2029                                                   0.892256545%
 Jan  2 2030                                                   0.892256545%
 Jul  2 2030                                                   0.892256545%
 Jan  2 2031                                                   0.892256545%
 Jul  2 2031                                                   0.892256545%
 Jan  2 2032                                                   0.892256545%
 Jul  2 2032                                                   0.385376175%
 Jan  2 2033                                                   0.024390244%
 Jul  2 2033                                                   0.024390244%
 Jan  2 2034                                                   0.024390244%
 Jul  2 2034                                                   0.024390244%
 Jan  2 2035                                                   0.024390244%
 Jul  2 2035                                                   0.024390244%
 Jan  2 2036                                                   0.024390244%
 Jul  2 2036                                                   0.024390244%
 Jul 20 2036                                                   0.024390244%
</TABLE>
<PAGE>   57
                                                                      SCHEDULE 2
                                                               TO FACILITY LEASE

                         TERMINATION VALUE PERCENTAGES

<TABLE>
<CAPTION>
 TERMINATION              GROSS TERMINATION             SECTION 467 LOAN
 DATE                     VALUE PERCENTAGE             BALANCE PERCENTAGE
<S>                       <C>                          <C>
 Jul 20 2000                  0.00000000%                   0.00000000%
 Aug 20 2000                104.16702947%                   0.00000000%
 Sep 20 2000                105.07660605%                   0.00000000%
 Oct 20 2000                105.97409822%                   0.00000000%
 Nov 20 2000                106.87405525%                   0.00000000%
 Dec 20 2000                107.77649840%                   0.00000000%
 Jan 20 2001                106.86637857%                   3.54816830%
 Feb 20 2001                107.75047361%                   3.56858822%
 Mar 20 2001                108.63674194%                   3.58900814%
 Apr 20 2001                109.52520228%                   3.60942805%
 May 20 2001                110.40508632%                   3.62984797%
 Jun 20 2001                111.28710733%                   3.65026789%
 Jul 20 2001                112.17422821%                   8.87753751%
 Aug 20 2001                113.06592475%                   8.92862826%
 Sep 20 2001                113.95966277%                   8.97971901%
 Oct 20 2001                114.84467267%                   9.03080976%
 Nov 20 2001                115.73166640%                   9.08190051%
 Dec 20 2001                116.62066106%                   9.13299126%
 Jan 20 2002                110.21837970%                   5.52463999%
 Feb 20 2002                111.08125179%                   5.55643462%
 Mar 20 2002                111.94608322%                   5.58822924%
 Apr 20 2002                112.81289087%                   5.62002387%
 May 20 2002                113.67166401%                   5.65181850%
 Jun 20 2002                114.53236113%                   5.68361313%
 Jul 20 2002                115.39349568%                  14.12346516%
 Aug 20 2002                116.26218162%                  14.20474653%
 Sep 20 2002                117.13275451%                  14.28602790%
 Oct 20 2002                117.99520286%                  14.36730927%
 Nov 20 2002                118.85948437%                  14.44859064%
 Dec 20 2002                119.72561486%                  14.52987201%
 Jan 20 2003                113.32140669%                  10.76036833%
 Feb 20 2003                114.16181404%                  10.82229488%
 Mar 20 2003                115.00403139%                  10.88422143%
 Apr 20 2003                115.84807436%                  10.94614798%
 May 20 2003                116.68471315%                  11.00807454%
 Jun 20 2003                117.52312945%                  11.07000109%
 Jul 20 2003                118.28785186%                  19.12742572%
 Aug 20 2003                119.13434660%                  19.23750518%
 Sep 20 2003                119.98258480%                  19.34758464%
 Oct 20 2003                120.82333595%                  19.45766410%
 Nov 20 2003                121.66578104%                  19.56774356%
 Dec 20 2003                122.50993466%                  19.67782301%
 Jan 20 2004                116.15936138%                  15.80600583%
 Feb 20 2004                116.97853618%                  15.89697032%
</TABLE>
<PAGE>   58
                                                                      SCHEDULE 2
                                                               TO FACILITY LEASE

<TABLE>
<S>                         <C>                            <C>
 Mar 20 2004                117.79938369%                  15.98793482%
 Apr 20 2004                118.62191832%                  16.07889931%
 May 20 2004                119.43763499%                  16.16986380%
 Jun 20 2004                120.25499454%                  16.26082829%
 Jul 20 2004                120.98824050%                  23.70042376%
 Aug 20 2004                121.81459270%                  23.83682109%
 Sep 20 2004                122.64255653%                  23.97321843%
 Oct 20 2004                123.46362625%                  24.10961576%
 Nov 20 2004                124.28626206%                  24.24601309%
 Dec 20 2004                125.11047746%                  24.38241042%
 Jan 20 2005                118.75142582%                  20.36073614%
 Feb 20 2005                119.55102818%                  20.47791337%
 Mar 20 2005                120.35217725%                  20.59509060%
 Apr 20 2005                121.15488637%                  20.71226783%
 May 20 2005                121.95131921%                  20.82944507%
 Jun 20 2005                122.74927143%                  20.94662230%
 Jul 20 2005                123.34553459%                  27.15329788%
 Aug 20 2005                124.15360988%                  27.30956670%
 Sep 20 2005                124.96317591%                  27.46583553%
 Oct 20 2005                125.76639574%                  27.62210435%
 Nov 20 2005                126.57106444%                  27.77837317%
 Dec 20 2005                127.37719450%                  27.93464200%
 Jan 20 2006                121.12007757%                  23.90754805%
 Feb 20 2006                121.90257132%                  24.04513739%
 Mar 20 2006                122.68649629%                  24.18272673%
 Apr 20 2006                123.47186483%                  24.32031607%
 May 20 2006                124.25145823%                  24.45790542%
 Jun 20 2006                125.03245785%                  24.59549476%
 Jul 20 2006                125.53136077%                  30.84825181%
 Aug 20 2006                126.32187435%                  31.02578531%
 Sep 20 2006                127.11376792%                  31.20331881%
 Oct 20 2006                127.89982225%                  31.38085231%
 Nov 20 2006                128.68721813%                  31.55838581%
 Dec 20 2006                129.47596712%                  31.73591931%
 Jan 20 2007                123.28225075%                  27.65446200%
 Feb 20 2007                124.04806713%                  27.81361505%
 Mar 20 2007                124.81520904%                  27.97276810%
 Apr 20 2007                125.58368791%                  28.13192115%
 May 20 2007                126.34686875%                  28.29107421%
 Jun 20 2007                127.11135239%                  28.45022726%
 Jul 20 2007                127.48319388%                  34.25622698%
 Aug 20 2007                128.25710870%                  34.45337358%
 Sep 20 2007                129.03230249%                  34.65052018%
 Oct 20 2007                129.80213976%                  34.84766678%
 Nov 20 2007                130.57322085%                  35.04481337%
 Dec 20 2007                131.34555649%                  35.24195997%
 Jan 20 2008                125.24711392%                  31.14434221%
 Feb 20 2008                125.99737827%                  31.32357973%
 Mar 20 2008                126.74887209%                  31.50281725%
 Apr 20 2008                127.50160599%                  31.68205476%
 May 20 2008                128.24911643%                  31.86129228%
 Jun 20 2008                128.99783259%                  32.04052980%
</TABLE>
<PAGE>   59
                                                                      SCHEDULE 2
                                                               TO FACILITY LEASE

<TABLE>
<S>                         <C>                            <C>
 Jul 20 2008                129.29304696%                  38.47787766%
 Aug 20 2008                130.04933092%                  38.69932011%
 Sep 20 2008                130.80679572%                  38.92076255%
 Oct 20 2008                131.55897733%                  39.14220500%
 Nov 20 2008                132.31230439%                  39.36364744%
 Dec 20 2008                133.06678681%                  39.58508989%
 Jan 20 2009                127.01018551%                  35.38811871%
 Feb 20 2009                127.74269679%                  35.59177941%
 Mar 20 2009                128.47633725%                  35.79544011%
 Apr 20 2009                129.21111663%                  35.99910081%
 May 20 2009                129.94069294%                  36.20276151%
 Jun 20 2009                130.67137312%                  36.40642222%
 Jul 20 2009                130.79083800%                  43.33242106%
 Aug 20 2009                131.52657073%                  43.58180169%
 Sep 20 2009                132.26338086%                  43.83118231%
 Oct 20 2009                132.99492588%                  44.08056294%
 Nov 20 2009                133.72751218%                  44.32994357%
 Dec 20 2009                134.46114876%                  44.57932420%
 Jan 20 2010                128.54089734%                  40.34851096%
 Feb 20 2010                129.25308255%                  40.58071901%
 Mar 20 2010                129.96629020%                  40.81292706%
 Apr 20 2010                130.68052909%                  41.04513511%
 May 20 2010                131.38960652%                  41.27734316%
 Jun 20 2010                132.09967958%                  41.50955121%
 Jul 20 2010                132.13053522%                  49.06171671%
 Aug 20 2010                132.84348425%                  49.34406977%
 Sep 20 2010                133.55740093%                  49.62642284%
 Oct 20 2010                134.26609199%                  49.90877590%
 Nov 20 2010                134.97571399%                  50.19112896%
 Dec 20 2010                135.68627494%                  50.47348202%
 Jan 20 2011                129.80928104%                  46.08377114%
 Feb 20 2011                130.49835094%                  46.34898595%
 Mar 20 2011                131.18833036%                  46.61420076%
 Apr 20 2011                131.87922716%                  46.87941556%
 May 20 2011                132.56533997%                  47.14463037%
 Jun 20 2011                133.25233682%                  47.40984518%
 Jul 20 2011                126.70112724%                  48.82809931%
 Aug 20 2011                127.35211417%                  49.10910789%
 Sep 20 2011                128.00395851%                  49.39011647%
 Oct 20 2011                128.65095841%                  49.67112505%
 Nov 20 2011                129.29878136%                  49.95213363%
 Dec 20 2011                129.94743444%                  50.23314221%
 Jan 20 2012                130.60268224%                  52.14885151%
 Feb 20 2012                131.26636977%                  52.44897121%
 Mar 20 2012                131.93085945%                  52.74909091%
 Apr 20 2012                132.59615818%                  53.04921062%
 May 20 2012                133.25672554%                  53.34933032%
 Jun 20 2012                133.91806813%                  53.64945002%
 Jul 20 2012                127.30877096%                  55.45219095%
 Aug 20 2012                127.92455522%                  55.77132156%
 Sep 20 2012                128.54094699%                  56.09045218%
 Oct 20 2012                129.15240408%                  56.40958279%
</TABLE>
<PAGE>   60
                                                                      SCHEDULE 2
                                                               TO FACILITY LEASE

<TABLE>
<S>                         <C>                            <C>
 Nov 20 2012                129.76443137%                  56.72871341%
 Dec 20 2012                130.37703378%                  57.04784402%
 Jan 20 2013                130.99600621%                  58.73549836%
 Feb 20 2013                131.62307414%                  59.07352460%
 Mar 20 2013                132.25068394%                  59.41155085%
 Apr 20 2013                132.87884029%                  59.74957709%
 May 20 2013                133.50411472%                  60.08760333%
 Jun 20 2013                134.12991556%                  60.42562957%
 Jul 20 2013                126.14440437%                  62.02531598%
 Aug 20 2013                126.72386316%                  62.38227532%
 Sep 20 2013                127.30383225%                  62.73923466%
 Oct 20 2013                127.88088283%                  63.09619399%
 Nov 20 2013                128.45842293%                  63.45315333%
 Dec 20 2013                129.03645678%                  63.81011266%
 Jan 20 2014                129.62237203%                  65.15780489%
 Feb 20 2014                130.21597104%                  65.53279188%
 Mar 20 2014                130.81004681%                  65.90777888%
 Apr 20 2014                131.40460345%                  66.28276587%
 May 20 2014                131.99703923%                  66.65775286%
 Jun 20 2014                132.58994174%                  67.03273986%
 Jul 20 2014                124.29202754%                  69.16097881%
 Aug 20 2014                124.83146235%                  69.55900430%
 Sep 20 2014                125.37129123%                  69.95702980%
 Oct 20 2014                125.90891168%                  70.35505529%
 Nov 20 2014                126.44691056%                  70.75308079%
 Dec 20 2014                126.98529113%                  71.15110628%
 Jan 20 2015                127.53171549%                  72.13363998%
 Feb 20 2015                128.08534881%                  72.54877331%
 Mar 20 2015                128.63935112%                  72.96390665%
 Apr 20 2015                129.19372558%                  73.37903998%
 May 20 2015                129.74633139%                  73.79417331%
 Jun 20 2015                130.29929732%                  74.20930665%
 Jul 20 2015                121.96167788%                  75.27959554%
 Aug 20 2015                122.46196081%                  75.71283403%
 Sep 20 2015                122.96253881%                  76.14607252%
 Oct 20 2015                123.46127040%                  76.57931102%
 Nov 20 2015                123.96028367%                  77.01254951%
 Dec 20 2015                124.45958108%                  77.44578800%
 Jan 20 2016                124.96671045%                  78.08565680%
 Feb 20 2016                125.48056999%                  78.53504434%
 Mar 20 2016                125.99470243%                  78.98443188%
 Apr 20 2016                126.50911011%                  79.43381942%
 May 20 2016                127.02197447%                  79.88320696%
 Jun 20 2016                127.53510315%                  80.33259450%
 Jul 20 2016                119.16918283%                  75.51054782%
 Aug 20 2016                119.62805218%                  75.94511546%
 Sep 20 2016                120.08694384%                  76.37968310%
 Oct 20 2016                120.54403707%                  76.81425073%
 Nov 20 2016                121.00113728%                  77.24881837%
 Dec 20 2016                121.45824455%                  77.68338601%
 Jan 20 2017                121.92401293%                  78.25772756%
 Feb 20 2017                122.39610538%                  78.70810538%
</TABLE>
<PAGE>   61
                                                                      SCHEDULE 2
                                                               TO FACILITY LEASE

<TABLE>
<S>                         <C>                            <C>
 Mar 20 2017                122.86819783%                  79.15848319%
 Apr 20 2017                123.34029029%                  79.60886101%
 May 20 2017                123.81238274%                  80.05923883%
 Jun 20 2017                124.28447520%                  80.50961665%
 Jul 20 2017                115.87301660%                  72.94169574%
 Aug 20 2017                116.30908632%                  73.36147949%
 Sep 20 2017                116.74515604%                  73.78126323%
 Oct 20 2017                117.18122576%                  74.20104697%
 Nov 20 2017                117.61729548%                  74.62083071%
 Dec 20 2017                118.05336519%                  75.04061446%
 Jan 20 2018                118.49850080%                  75.56717994%
 Feb 20 2018                118.94968034%                  76.00207350%
 Mar 20 2018                119.40085987%                  76.43696706%
 Apr 20 2018                119.85203940%                  76.87186062%
 May 20 2018                120.30321894%                  77.30675417%
 Jun 20 2018                120.75439846%                  77.74164773%
 Jul 20 2018                112.32159219%                  70.12523584%
 Aug 20 2018                112.73602436%                  70.52881069%
 Sep 20 2018                113.15045652%                  70.93238554%
 Oct 20 2018                113.56488869%                  71.33596039%
 Nov 20 2018                113.97932086%                  71.73953524%
 Dec 20 2018                114.39375302%                  72.14311009%
 Jan 20 2019                114.81680124%                  72.62044489%
 Feb 20 2019                115.24559348%                  73.03837981%
 Mar 20 2019                115.67438572%                  73.45631474%
 Apr 20 2019                116.10317796%                  73.87424966%
 May 20 2019                116.53197020%                  74.29218459%
 Jun 20 2019                116.96076244%                  74.71011951%
 Jul 20 2019                108.50510344%                  67.04371160%
 Aug 20 2019                108.89637260%                  67.42955210%
 Sep 20 2019                109.28764175%                  67.81539260%
 Oct 20 2019                109.67891091%                  68.20123309%
 Nov 20 2019                110.07018006%                  68.58707359%
 Dec 20 2019                110.46144922%                  68.97291409%
 Jan 20 2020                110.86085286%                  69.39946102%
 Feb 20 2020                111.26567949%                  69.79885900%
 Mar 20 2020                111.67050612%                  70.19825697%
 Apr 20 2020                112.07533276%                  70.59765494%
 May 20 2020                112.48015939%                  70.99705292%
 Jun 20 2020                112.88498602%                  71.39645089%
 Jul 20 2020                104.40486316%                  63.67843583%
 Aug 20 2020                104.77133630%                  64.04490897%
 Sep 20 2020                105.13780943%                  64.41138211%
 Oct 20 2020                105.50428257%                  64.77785525%
 Nov 20 2020                105.87075571%                  65.14432838%
 Dec 20 2020                106.23722885%                  65.51080152%
 Jan 20 2021                106.61331070%                  66.46112182%
 Feb 20 2021                106.99579836%                  66.84360948%
 Mar 20 2021                107.37828601%                  67.22609714%
 Apr 20 2021                107.76077367%                  67.60858480%
 May 20 2021                108.14326133%                  67.99107245%
 Jun 20 2021                108.52574899%                  68.37356011%
</TABLE>
<PAGE>   62
                                                                      SCHEDULE 2
                                                               TO FACILITY LEASE

<TABLE>
<S>                         <C>                            <C>
 Jul 20 2021                100.02636495%                  60.68814104%
 Aug 20 2021                100.37562876%                  61.03740486%
 Sep 20 2021                100.72489258%                  61.38666868%
 Oct 20 2021                101.07415639%                  61.73593249%
 Nov 20 2021                101.42342021%                  62.08519631%
 Dec 20 2021                101.77268402%                  62.43446012%
 Jan 20 2022                102.13215641%                  63.64454561%
 Feb 20 2022                102.49843451%                  64.01082371%
 Mar 20 2022                102.86471260%                  64.37710180%
 Apr 20 2022                103.23099070%                  64.74337990%
 May 20 2022                103.59726880%                  65.10965800%
 Jun 20 2022                103.96354690%                  65.47593610%
 Jul 20 2022                 95.44815916%                  57.81074558%
 Aug 20 2022                 95.78086340%                  58.14344982%
 Sep 20 2022                 96.11356763%                  58.47615405%
 Oct 20 2022                 96.44627187%                  58.80885829%
 Nov 20 2022                 96.77897610%                  59.14156253%
 Dec 20 2022                 97.11168034%                  59.47426676%
 Jan 20 2023                 97.45542749%                  60.70580986%
 Feb 20 2023                 97.80479299%                  61.05517536%
 Mar 20 2023                 98.15415850%                  61.40454086%
 Apr 20 2023                 98.50352400%                  61.75390636%
 May 20 2023                 98.85288950%                  62.10327186%
 Jun 20 2023                 99.20225500%                  62.45263736%
 Jul 20 2023                 90.67102989%                  54.80854410%
 Aug 20 2023                 90.98645628%                  55.12397049%
 Sep 20 2023                 91.30188267%                  55.43939688%
 Oct 20 2023                 91.61730906%                  55.75482327%
 Nov 20 2023                 91.93273545%                  56.07024966%
 Dec 20 2023                 92.24816184%                  56.38567605%
 Jan 20 2024                 92.57574406%                  57.63960748%
 Feb 20 2024                 92.90746339%                  57.97132680%
 Mar 20 2024                 93.23918271%                  58.30304613%
 Apr 20 2024                 93.57090204%                  58.63476545%
 May 20 2024                 93.90262136%                  58.96648478%
 Jun 20 2024                 94.23434069%                  59.29820410%
 Jul 20 2024                 85.68661577%                  51.67612319%
 Aug 20 2024                 85.98401489%                  51.97352231%
 Sep 20 2024                 86.28141401%                  52.27092143%
 Oct 20 2024                 86.57881314%                  52.56832056%
 Nov 20 2024                 86.87621226%                  52.86571968%
 Dec 20 2024                 87.17361138%                  53.16311880%
 Jan 20 2025                 87.48435223%                  54.44040964%
 Feb 20 2025                 87.79765998%                  54.75371739%
 Mar 20 2025                 88.11096774%                  55.06702515%
 Apr 20 2025                 88.42427549%                  55.38033290%
 May 20 2025                 88.73758325%                  55.69364066%
 Jun 20 2025                 89.05089100%                  56.00694841%
 Jul 20 2025                 80.48597551%                  48.40783461%
 Aug 20 2025                 80.76456544%                  48.68642454%
 Sep 20 2025                 81.04315538%                  48.96501447%
 Oct 20 2025                 81.32174531%                  49.24360440%
</TABLE>
<PAGE>   63
                                                                      SCHEDULE 2
                                                               TO FACILITY LEASE

<TABLE>
<S>                          <C>                           <C>
 Nov 20 2025                 81.60033524%                  49.52219433%
 Dec 20 2025                 81.87892517%                  49.80078426%
 Jan 20 2026                 82.17211929%                  51.10244772%
 Feb 20 2026                 82.46621687%                  51.39654531%
 Mar 20 2026                 82.76031446%                  51.69064289%
 Apr 20 2026                 83.05441204%                  51.98474048%
 May 20 2026                 83.34850964%                  52.27883807%
 Jun 20 2026                 83.64260723%                  52.57293566%
 Jul 20 2026                 75.05978089%                  44.99778516%
 Aug 20 2026                 75.31874579%                  45.25675006%
 Sep 20 2026                 75.57771068%                  45.51571496%
 Oct 20 2026                 75.83667558%                  45.77467985%
 Nov 20 2026                 76.09564048%                  46.03364475%
 Dec 20 2026                 76.35460537%                  46.29260964%
 Jan 20 2027                 76.62951726%                  47.61970287%
 Feb 20 2027                 76.90357145%                  47.89375706%
 Mar 20 2027                 77.17762563%                  48.16781124%
 Apr 20 2027                 77.45167982%                  48.44186543%
 May 20 2027                 77.72573401%                  48.71591962%
 Jun 20 2027                 77.99978819%                  48.98997380%
 Jul 20 2027                 69.39829993%                  41.43982602%
 Aug 20 2027                 69.63678856%                  41.67831465%
 Sep 20 2027                 69.87527719%                  41.91680328%
 Oct 20 2027                 70.11444461%                  42.15529192%
 Nov 20 2027                 70.35361788%                  42.39378055%
 Dec 20 2027                 70.59279706%                  42.63226918%
 Jan 20 2028                 70.84820107%                  43.84793544%
 Feb 20 2028                 71.10054851%                  44.10028288%
 Mar 20 2028                 71.35289595%                  44.35263033%
 Apr 20 2028                 71.60524340%                  44.60497777%
 May 20 2028                 71.85974938%                  44.85732521%
 Jun 20 2028                 72.11427398%                  45.10967266%
 Jul 20 2028                 64.22317097%                  38.12383386%
 Aug 20 2028                 64.44257587%                  38.34323877%
 Sep 20 2028                 64.66198077%                  38.56264367%
 Oct 20 2028                 64.88514592%                  38.78204857%
 Nov 20 2028                 65.10834348%                  39.00145347%
 Dec 20 2028                 65.33157375%                  39.22085838%
 Jan 20 2029                 65.56972027%                  40.34017292%
 Feb 20 2029                 65.80188033%                  40.57233298%
 Mar 20 2029                 66.03404040%                  40.80449305%
 Apr 20 2029                 66.26620046%                  41.03665311%
 May 20 2029                 66.50318966%                  41.26881318%
 Jun 20 2029                 66.74022049%                  41.50097324%
 Jul 20 2029                 59.71571598%                  35.35750848%
 Aug 20 2029                 59.91920052%                  35.56099302%
 Sep 20 2029                 60.12268505%                  35.76447756%
 Oct 20 2029                 60.33112810%                  35.96796209%
 Nov 20 2029                 60.53961390%                  36.17144663%
 Dec 20 2029                 60.74814282%                  36.37493117%
 Jan 20 2030                 60.97034137%                  37.47799436%
 Feb 20 2030                 61.18602943%                  37.69368242%
</TABLE>
<PAGE>   64
                                                                      SCHEDULE 2
                                                               TO FACILITY LEASE

<TABLE>
<S>                          <C>                           <C>
 Mar 20 2030                 61.40171749%                  37.90937048%
 Apr 20 2030                 61.61740555%                  38.12505854%
 May 20 2030                 61.83850845%                  38.34074660%
 Jun 20 2030                 62.05965804%                  38.55643466%
 Jul 20 2030                 55.01921465%                  32.39615544%
 Aug 20 2030                 55.20565643%                  32.58259722%
 Sep 20 2030                 55.39209820%                  32.76903899%
 Oct 20 2030                 55.58466133%                  32.95548077%
 Nov 20 2030                 55.77727724%                  33.14192255%
 Dec 20 2030                 55.96994639%                  33.32836432%
 Jan 20 2031                 56.17622076%                  34.41403044%
 Feb 20 2031                 56.37459224%                  34.61208521%
 Mar 20 2031                 56.57296644%                  34.81013997%
 Apr 20 2031                 56.77134340%                  35.00819474%
 May 20 2031                 56.97660632%                  35.20624950%
 Jun 20 2031                 57.18193139%                  35.40430427%
 Jul 20 2031                 50.12561191%                  29.22602516%
 Aug 20 2031                 50.29548913%                  29.39422265%
 Sep 20 2031                 50.46538083%                  29.56242015%
 Oct 20 2031                 50.64217031%                  29.73061764%
 Nov 20 2031                 50.81903388%                  29.89881513%
 Dec 20 2031                 50.99597218%                  30.06701262%
 Jan 20 2032                 51.18645751%                  31.13405515%
 Feb 20 2032                 51.36881152%                  31.31323347%
 Mar 20 2032                 51.55119291%                  31.49241178%
 Apr 20 2032                 51.73360192%                  31.67159010%
 May 20 2032                 51.92326681%                  31.85076841%
 Jun 20 2032                 52.11302213%                  32.02994673%
 Jul 20 2032                 45.03935747%                  25.32376202%
 Aug 20 2032                 45.19768016%                  25.46950176%
 Sep 20 2032                 45.35611135%                  25.61524149%
 Oct 20 2032                 45.52508847%                  25.76098123%
 Nov 20 2032                 45.70070221%                  25.90672097%
 Dec 20 2032                 45.87655543%                  26.05246071%
 Jan 20 2033                 46.06195189%                  26.22570513%
 Feb 20 2033                 46.24940587%                  26.37663560%
 Mar 20 2033                 46.43715263%                  26.52756608%
 Apr 20 2033                 46.62519454%                  26.67849655%
 May 20 2033                 46.82014658%                  26.82942702%
 Jun 20 2033                 47.01545152%                  26.98035750%
 Jul 20 2033                 39.94514754%                  19.88310093%
 Aug 20 2033                 40.11101866%                  19.99752934%
 Sep 20 2033                 40.27730217%                  20.11195775%
 Oct 20 2033                 40.45061401%                  20.22638617%
 Nov 20 2033                 40.62439788%                  20.34081458%
 Dec 20 2033                 40.79865758%                  20.45524299%
 Jan 20 2034                 40.98247304%                  20.59652513%
 Feb 20 2034                 41.16815558%                  20.71505934%
 Mar 20 2034                 41.35437643%                  20.83359355%
 Apr 20 2034                 41.54113988%                  20.95212776%
 May 20 2034                 41.73746587%                  21.07066197%
 Jun 20 2034                 41.93441548%                  21.18919619%
</TABLE>
<PAGE>   65
                                                                      SCHEDULE 2
                                                               TO FACILITY LEASE

<TABLE>
<S>                         <C>                            <C>
 Jul 20 2034                 33.29413787%                  12.48524922%
 Aug 20 2034                 33.45444503%                  12.55710256%
 Sep 20 2034                 33.61546128%                  12.62895591%
 Oct 20 2034                 33.78620788%                  12.70080925%
 Nov 20 2034                 33.95774726%                  12.77266259%
 Dec 20 2034                 34.13008577%                  12.84451593%
 Jan 20 2035                 34.31382375%                  12.94233786%
 Feb 20 2035                 34.49918651%                  13.01682178%
 Mar 20 2035                 34.68543813%                  13.09130569%
 Apr 20 2035                 34.87258574%                  13.16578961%
 May 20 2035                 35.07034550%                  13.24027352%
 Jun 20 2035                 35.26909351%                  13.31475743%
 Jul 20 2035                 26.58753569%                   4.52262062%
 Aug 20 2035                 26.74930314%                   4.54864856%
 Sep 20 2035                 26.91215875%                   4.57467651%
 Oct 20 2035                 27.08582023%                   4.60070446%
 Nov 20 2035                 27.26066521%                   4.62673241%
 Dec 20 2035                 27.43670318%                   4.65276035%
 Jan 20 2036                 27.62427833%                   4.70380418%
 Feb 20 2036                 27.81324888%                   4.73087485%
 Mar 20 2036                 28.00351729%                   4.75794552%
 Apr 20 2036                 28.19509398%                   4.78501618%
 May 20 2036                 28.42209127%                   4.81208685%
 Jun 20 2036                 28.65069128%                   4.83915752%
 Jul 20 2036                 24.00000000%                  -0.02439025%
</TABLE>
<PAGE>   66
                                                                      SCHEDULE 3
                                                               TO FACILITY LEASE

                       ALLOCATION OF PERIODIC LEASE RENT

<TABLE>
<CAPTION>
RENT PAYMENT PERIOD
------------------------------------
FROM AND                  TO BUT                 ALLOCATION               PROPORTIONAL                  SECTION 467
INCLUDING                 EXCLUDING         RENT PERCENTAGE            RENT PERCENTAGE          INTEREST PERCENTAGE
<S>                       <C>               <C>                        <C>                      <C>
2-Oct-00                  2-Jan-01             1.152476028%               1.812669013%                 0.000000000%
2-Jan-01                  2-Jul-01             0.000000000%               0.000000000%                 0.122519502%
2-Jul-01                  2-Jan-02             4.622780940%               7.270929336%                 0.306544498%
2-Jan-02                  2-Jul-02             0.000000000%               0.000000000%                 0.190767765%
2-Jul-02                  2-Jan-03             4.609832175%               7.250562904%                 0.487688228%
2-Jan-03                  2-Jul-03             0.047382013%               0.074524680%                 0.371559310%
2-Jul-03                  2-Jan-04             4.562257797%               7.175735664%                 0.660476749%
2-Jan-04                  2-Jul-04             0.054555063%               0.085806793%                 0.545786950%
2-Jul-04                  2-Jan-05             4.555310454%               7.164808552%                 0.818383983%
2-Jan-05                  2-Jul-05             0.129924010%               0.204350651%                 0.703063393%
2-Jul-05                  2-Jan-06             4.479559263%               7.045663483%                 0.937612943%
2-Jan-06                  2-Jul-06             0.180984089%               0.284660367%                 0.825536057%
2-Jul-06                  2-Jan-07             4.428637123%               6.965570724%                 1.065201004%
2-Jan-07                  2-Jul-07             0.251396432%               0.395408244%                 0.954918316%
2-Jul-07                  2-Jan-08             4.358115896%               6.854651590%                 1.182879587%
2-Jan-08                  2-Jul-08             0.289436518%               0.455239497%                 1.075425109%
2-Jul-08                  2-Jan-09             4.320257269%               6.795105744%                 1.328654673%
2-Jan-09                  2-Jul-09             0.388793511%               0.611512893%                 1.221964207%
2-Jul-09                  2-Jan-10             4.220556709%               6.638291970%                 1.496283766%
2-Jan-10                  2-Jul-10             0.431250018%               0.678290503%                 1.393248299%
2-Jul-10                  2-Jan-11             4.178420002%               6.572017356%                 1.694118364%
2-Jan-11                  2-Jul-11             4.586690668%               7.214164844%                 1.591288854%
2-Jul-11                  2-Jan-12             0.000000000%               0.000000000%                 1.686051473%
2-Jan-12                  2-Jul-12             4.609904113%               7.250676051%                 1.800718216%
2-Jul-12                  2-Jan-13             0.000000000%               0.000000000%                 1.914783691%
2-Jan-13                  2-Jul-13             5.456373098%               8.582042658%                 2.028157453%
2-Jul-13                  2-Jan-14             0.000000000%               0.000000000%                 2.141756014%
2-Jan-14                  2-Jul-14             5.634327249%               8.861937396%                 2.249921960%
2-Jul-14                  2-Jan-15             0.000000000%               0.000000000%                 2.388152966%
2-Jan-15                  2-Jul-15             5.634327249%               8.861937396%                 2.490800003%
2-Jul-15                  2-Jan-16             0.000000000%               0.000000000%                 2.599430957%
2-Jan-16                  2-Jul-16             5.634327249%               8.861937396%                 2.696325241%
2-Jul-16                  2-Jan-17             0.000000000%               0.000000000%                 2.607405821%
2-Jan-17                  2-Jul-17             5.634327249%               8.861937396%                 2.702266905%
2-Jul-17                  2-Jan-18             0.000000000%               0.000000000%                 2.518702454%
2-Jan-18                  2-Jul-18             5.634327249%               8.861937396%                 2.609361348%
2-Jul-18                  2-Jan-19             0.000000000%               0.000000000%                 2.421449101%
2-Jan-19                  2-Jul-19             5.634327249%               8.861937396%                 2.507609548%
2-Jul-19                  2-Jan-20             0.000000000%               0.000000000%                 2.315042983%
2-Jan-20                  2-Jul-20             5.634327249%               8.861937396%                 2.396387841%
2-Jul-20                  2-Jan-21             0.000000000%               0.000000000%                 2.198838825%
2-Jan-21                  2-Jul-21             5.634327249%               8.861937396%                 2.294925953%
2-Jul-21                  2-Jan-22             0.000000000%               0.000000000%                 2.095582893%
2-Jan-22                  2-Jul-22             5.634327249%               8.861937396%                 2.197668584%
2-Jul-22                  2-Jan-23             0.000000000%               0.000000000%                 1.996225413%
2-Jan-23                  2-Jul-23             5.634327249%               8.861937396%                 2.096193003%
2-Jul-23                  2-Jan-24             0.000000000%               0.000000000%                 1.892558339%
2-Jan-24                  2-Jul-24             5.634327249%               8.861937396%                 1.990315954%
</TABLE>
<PAGE>   67
                                                               TO FACILITY LEASE

<TABLE>
<S>                       <C>                <C>                     <C>                          <C>
2-Jul-24                  2-Jan-25             0.000000000%               0.000000000%                 1.784394741%
2-Jan-25                  2-Jul-25             5.634327249%               8.861937396%                 1.879846526%
2-Jul-25                  2-Jan-26             0.000000000%               0.000000000%                 1.671539585%
2-Jan-26                  2-Jul-26             5.634327249%               8.861937396%                 1.764585525%
2-Jul-26                  2-Jan-27             0.000000000%               0.000000000%                 1.553789376%
2-Jan-27                  2-Jul-27             5.634327249%               8.861937396%                 1.644325118%
2-Jul-27                  2-Jan-28             0.000000000%               0.000000000%                 1.430931793%
2-Jan-28                  2-Jul-28             5.170947056%               8.133111029%                 1.514084660%
2-Jul-28                  2-Jan-29             0.000000000%               0.000000000%                 1.316429416%
2-Jan-29                  2-Jul-29             4.609904113%               7.250676051%                 1.392960384%
2-Jul-29                  2-Jan-30             0.000000000%               0.000000000%                 1.220907225%
2-Jan-30                  2-Jul-30             4.609904113%               7.250676051%                 1.294128350%
2-Jul-30                  2-Jan-31             0.000000000%               0.000000000%                 1.118650661%
2-Jan-31                  2-Jul-31             4.609904113%               7.250676051%                 1.188328596%
2-Jul-31                  2-Jan-32             0.000000000%               0.000000000%                 1.009184946%
2-Jan-32                  2-Jul-32             4.609904113%               7.250676051%                 1.075069894%
2-Jul-32                  2-Jan-33             0.000000000%               0.000000000%                 0.874438425%
2-Jan-33                  2-Jul-33             4.609904113%               7.250676051%                 0.905582838%
2-Jul-33                  2-Jan-34             0.000000000%               0.000000000%                 0.686570480%
2-Jan-34                  2-Jul-34             5.606940934%               8.818862900%                 0.711205270%
2-Jul-34                  2-Jan-35             0.000000000%               0.000000000%                 0.431120055%
2-Jan-35                  2-Jul-35             5.634327249%               8.861937396%                 0.446903486%
2-Jul-35                  2-Jan-36             0.000000000%               0.000000000%                 0.156167683%
2-Jan-36                  2-Jul-36             3.114530896%               4.898682060%                 0.162424016%
2-Jul-36                  20-Jul-36            0.000000000%               0.000000000%                -0.000084220%

                                             183.371741374%          288.415780697041%            105.044039322810%
</TABLE>
<PAGE>   68
                                                                       EXHIBIT A
                                                                              TO
                                                                  FACILITY LEASE

                                           DESCRIPTION OF SITES

(A)      Units 1 and 2 Site

Parcel 1          That portion of Section 34 in Township 2 North, Range 41 East,
                  PMM, described as Tracts 1-C and 1-B-3 of Certificate of
                  Survey No. 54257 amending Certificate of Survey No. 27875
                  (Tract 1), No. 27878, No. 34994 and Dedication of Tracts
                  1-A-2, 1-B-2, 1-B and 1-D filed July 30, 1986 for record in
                  the office of the Clerk and Recorder of Rosebud County,
                  Montana, under Document No. 54257.

Parcel 2          That portion of Section 21 in Township 2 North, Range 41 East,
                  PMM, described as Tract 1 of Certificate of Survey No. 27873
                  filed June 3, 1980 for record in the office of the Clerk and
                  Recorder of Rosebud County, Montana, under Document No. 27873.

Parcel 2A         That portion of the N-1/2 of Section 28, Township 2 North,
                  Range 41 East described as Parcel 2A of Certificate of Survey
                  No. 85514 filed March 10, 1999 for record in the office of the
                  Clerk and Recorder of Rosebud County, Montana as Document No.
                  85514.

Parcel 3          That part of Section 29 in Township 2 North, Range 41 East,
                  PMM, described as Tract 1 of Certificate of Survey No. 27877
                  filed June 3, 1980 for record in the office of the Clerk and
                  Recorder of Rosebud County, Montana as Document No. 27877.

Parcel 4          That portion of the E-1/2 of Section 34, Township 2 North,
                  Range 41 East, PMM described as Parcel A-1-A and Parcel A-1-B
                  of Certificate of Survey No. 85561 filed March 10, 1999 for
                  record in the office of the Clerk and Recorder of Rosebud
                  County, Montana as Document No. 85561.

Parcel 4A         That portion of the N-1/2 of Section 3, Township 1 North,
                  Range 41 East, PMM and the SE-1/4 of Section 34, Township 2
                  North, Range 41 East, PMM described as Parcel 4A of
                  Certificate of Survey 85515 filed March 10, 1999 for record in
                  the office of the Clerk and Recorder of Rosebud County,
                  Montana as Document No. 85515, excluding therefrom Tract 1 of
                  Certificate of Survey 58701 filed October 29, 1987 for record
                  in the office of the Clerk and Recorder of Rosebud County,
                  Montana as Document No. 58701.
<PAGE>   69
Parcel 5          Township 2 North, Range 41 East, P.M.M., Rosebud County,
                  Montana

                  Section 20:  All

EASEMENT:         Easement for utilities reserved by Montana Power Company and
                  Puget Sound Power & Light Company in Deed dated April 1, 1983,
                  recorded May 2, 1983 in Book 79 Deeds, page 648, over and
                  across a part of the following described real property:

                  That portion of Sections 34 and 35 in Township 2 North, Range
                  41 East, P.M.M., described as Parcel 3 Amended Certificate of
                  Survey No. 85124 filed December 30, 1998 in the Office of the
                  Clerk and Recorder of Rosebud County, Montana as Document No.
                  85124.

(B)      Common Facilities 1-2 Site

Parcel 12A        That portion of Sections-34 & 35, Township 2 North, Range 41
                  East, PMM, described as an 80-foot wide easement, being the
                  northerly 80 feet of Parcel 3 depicted on Certificate of
                  Survey No. 34152, on file in the office of the Clerk and
                  Recorder of Rosebud County, Montana, and running between
                  Corner No. 5 and Corner No. 7 of said Parcel 3, for utilities
                  (including, but not limited to, electrical conduit, water
                  lines, conveyor systems and related facilities), right-of-way
                  and access; and

Parcel 12B        That portion of Sections 34 & 35, Township 2 North, Range 41
                  East, PMM, described as a 30-foot wide easement being the
                  northerly 30 feet of Parcel 3 depicted on Certificate of
                  Survey No. 34152, on file in the office of the Clerk and
                  Recorder of Rosebud County, Montana, and running between
                  Corner No. 8 and Corner No. 9 of Parcel 3, for utilities
                  (including, but not limited to electrical conduit, water
                  lines, conveyor systems and related facilities), right-of-way
                  and access.

                  Both reserved in a deed dated April 1, 1983, recorded in Book
                  79 Deeds, page 648, records in the office of the Clerk and
                  Recorder of Rosebud County, Montana.

(C)      Common Facilities 1-2-3-4 Site

Parcel 35         That portion of Sections 34 and 35 in Township 2 North, Range
                  41 East, PMM, described as Parcel B Certificate of Survey No.
                  34152 filed January 8, 1981 for record in the office of the
                  Clerk and Recorder of Rosebud County, Montana as Document No.
                  34152.

Parcel 36         That portion of Sections 27 and 34 in Township 2 North, Range
                  41 East, PMM, described as Parcel C of Certificate of Survey
                  No. 34153 filed January 8, 1981 for
<PAGE>   70
                  record in the office of the Clerk and Recorder of Rosebud
                  County, Montana as Document No. 34153.

Parcel 37         That portion of Section 35 in Township 2 North, Range 41 East
                  & Section 2 in Township 1 North, Range 41 East, PMM, described
                  as Tract H-1, Tract H-2, Tract H-3 of Certificate of Survey
                  No. 34995 filed March 25, 1982 for record in the office of the
                  Clerk and Recorder of Rosebud County, Montana as Document No.
                  34995.

Parcel 38         That portion of Section 3 in Township 1 North, Range 41 East,
                  PMM, described as Parcel G of Certificate of Survey No. 34996
                  filed March 25, 1982 for record in the office of the Clerk and
                  Recorder of Rosebud County, Montana as Document No. 34996.

Parcel 39         That portion of Section 34 in Township 2 North, Range 41 East,
                  PMM, described as Parcel A-1 Amended of Certificate of Survey
                  No. 85561, filed March 17, 1999 for record in the office of
                  the Clerk and Recorder of Rosebud County, Montana as Document
                  No. 85561, excluding therefrom a tract of land described as
                  Parcel A-1-B of Certificate of Survey 85561.

Parcel 40         That portion of Sections 28 and 33 in Township 2 North, Range
                  41 East, PMM, described as Parcel F-1 Amended and Parcel F-2
                  Amended of Certificate of Survey No. 85920 filed May 4, 1999
                  for record in the office of the Clerk and Recorder of Rosebud
                  County, Montana as Document No. 85920.

Parcel 41         That portion of Section 34 in Township 2 North, Range 41 East,
                  PMM, described as Parcel D-1 and Parcel D-2 of Certificate of
                  Survey No. 42210 filed January 10, 1984 for record in the
                  office of the Clerk and Recorder of Rosebud County, Montana as
                  Document No. 42210.

Parcel 42         That portion of Section 34 in Township 2 North, Range 41 East,
                  PMM, described as Tract 1-A-1, Tract 1-A-2 and Tract 1-A-3 of
                  Certificate of Survey No. 54257 amending Certificate of Survey
                  No. 27875 (Tract 1), Certificate of Survey No. 27878,
                  Certificate of Survey No. 34994 and Dedication of Tracts
                  1-A-2, 1-B-2, 1-B and 1-D, filed July 30, 1986 for record in
                  the office of the Clerk and Recorder of Rosebud County,
                  Montana as Document No. 54257, subject to dedication of Tract
                  1-A-2 (Willow Avenue) as a public road.

Parcel 43         That portion of Section 24 in Township 6 North, Range 39 East,
                  PMM, described as Tract A and Tract C of Certificate of Survey
                  No. 6100 filed February 13, 1974 for record in the office of
                  the Clerk and Recorder of Rosebud County, Montana as Document
                  No. 6100.

Parcel 44         That parcel commencing at the section corner common Sections
                  Thirteen (13), Fourteen (14), Twenty-three (23) and
                  Twenty-four (24), Township Six (6) North, of Range Thirty-nine
                  (39) East, M.P.M., Rosebud County, Montana, running thence
                  northerly along the section line common to Sections Fourteen
                  (14) and Thirteen (13) to the Yellowstone River; running
                  thence southeasterly along the
<PAGE>   71
                  Yellowstone River to a point where the south boundary line of
                  Section Thirteen (13) meets the Yellowstone River; thence
                  westerly along the south boundary line of the said Section
                  Thirteen (13) to the point of beginning, containing in all
                  approximately 17 acres as described in deed dated December 7,
                  1973, recorded December 12, 1973 in Book 73, Page 127 and
                  confirmed in Judgment and Decree dated March 21, 1975 by The
                  District Court of the Sixteenth Judicial District, in and for
                  the County of Rosebud, recorded March 21, 1975 in Book 19
                  Orders and Decree, page 996, records of the County Clerk and
                  Recorder of Rosebud County, Montana.

Parcel 45         Easements and rights-of-way more particularly described in
                  documents recorded in the office of the Clerk and Recorder of
                  Rosebud County, Montana, under the following Book and Page
                  numbers; which documents are incorporated herein by this
                  reference and made a part hereof:

                   Book 77 Deeds, page 29
                   Book 75 Deeds, page 306
                   Book 73 Deeds, page 430
                   Book 73 Deeds, page 466
                   Book 74 Deeds, page 245
                   Book 78 Deeds, page 782
                   Book 78 Deeds, page 838
                   Book 74 Deeds, page 169
                   Book 74 Deeds, page 110
                   Book 74 Deeds, page 70
                   Book 77 Deeds, page 941
                   Book 78 Deeds, page 134
                   Book 79 Deeds, page 238
                   Book 74 Deeds, page 14
                   Book 74 Deeds, page 65
                   Book 74 Deeds, page 112
                   Book 79 Deeds, page 240
                   Book 74 Deeds, page 62
                   Book 74 Deeds, page 67
                   Book 74 Deeds, page 242
                   Book 73 Deeds, page 891
                   Book 73 Deeds, page 893
                   Book 73 Deeds, page 284
                   Book 78 Deeds, page 131
                   Book 32 Misc., page 476
<PAGE>   72
                                                                       EXHIBIT B
                                                                              TO
                                                                  FACILITY LEASE

                              DESCRIPTION OF UNITS

Unit 1

         Unit 1 consists of Colstrip Unit No. 1, a 333 MW (gross capacity)
coal-fired steam electric generating unit, located on the Units 1 and 2 Site in
Rosebud County, Montana, including, without limitation, the assets described in
Schedule B-1 hereto, but excluding the Common Facilities.

Unit 2

         Unit 2 consists of Colstrip Unit No. 2, a 333 MW (gross capacity)
coal-fired steam electric generating unit, located on the Units 1 and 2 Site in
Rosebud County, Montana, including, without limitation, the assets described in
Schedule B-2 hereto, but excluding the Common Facilities.
<PAGE>   73
                                                                    SCHEDULE B-1

UNIT 1

      FERC ACCOUNT 311

STRUCTURES AND IMPROVEMENTS
Other Facilities
Brine Concentrator, Wash Tray, Pump Building
Station Building

      FERC ACCOUNT 311.2

POLLUTION CONTROL EQUIPMENT
Ash Water Handling
Ash Handling Facilities

      FERC ACCOUNT 312

BOILER PLANT EQUIPMENT
Boiler Supporting Structures
Boiler Pressure Parts
Boiler Non-Pressure Parts
Soot Blower Equipment
Forced Draft Fans
Combustion Air Ducts
Main Combustion Air Heaters
Steam Supplied Combustion Air Preheaters
Coal Handling Equipment
Coal Feeders
Pulverized Fuel Equipment
Gas Fuel Equipment
Bottom Ash, Economizer Ash and Pyrite Handling System
Boiler Blowoff Tank
Deaerator Feedwater Heater with Storage Tank
Feedwater Heater #1-1
Feedwater Heater #1-2
Booster Pumps
Feedwater Heater #1-4
Feedwater Heater #1-5
Boiler Feed Pumps
Feedwater Heater #1-6
Boiler Plant Piping
Piping Labor Operations
Auxiliary Steam System
Boiler Water Treating Equipment
Condensate Storage Tanks
Stack
Induced Draft Fans
Other Auxiliary Equipment

      FERC ACCOUNT 312.2

POLLUTION CONTROL EQUIPMENT
Air Quality Control System
Scrubber
<PAGE>   74
Unit 1

      FERC ACCOUNT 314

TURBOGENERATOR UNITS
Pedestal Substructures
Turbine Generator
Excitation and Voltage Regulation Systems
Lubricating Oil Systems
Stator Cooling Water System
Hydrogen Gas System
Bearing Cooling Water System
Condenser and Accessories
Condensate Pumps
Cooling Tower
Circulating Water Pumps
Lubricating Oil

      FERC ACCOUNT 315

ACCESSORY ELECTRIC EQUIPMENT
Conduits and Trays
Station Service and Startup Transformers
Generation Main Bus
Station Service Busways
Motor Control Centers
Local Control Stations and Receptacles
Wire and Cable
Switch Gear Control and Protective Equipment
Storage Battery Equipment
Misc. Electrical Material and Labor
Digital/Analog Control System
Control Boards
Miscellaneous Costs

         FERC ACCOUNT 316

MISCELLANEOUS POWER PLANT EQUIPMENT
Air Compressor Equipment
<PAGE>   75
                                                                    SCHEDULE B-2

UNIT 2

FERC
ACCOUNT

<TABLE>
<S>           <C>
311           STRUCTURES AND IMPROVEMENTS
311-14        Other Facilities
311-17        Brine Concentrator, Wash Tray, Pump Building
311-18        Station Building

311.2         POLLUTION CONTROL EQUIPMENT
311.2-16      Ash Water Handling
311.2-17      Ash Handling Facilities

312           BOILER PLANT EQUIPMENT
312-11        Boiler Supporting Structures
312-12        Boiler Pressure Parts
312-13        Boiler Non-Pressure Parts
312-14        Soot Blower Equipment
312-15        Forced Draft Fans
312-16        Combustion Air Ducts
312-17        Main Combustion Air Heaters
312-18        Steam Supplied Combustion Air Preheaters
312-20        Coal Handling Equipment
312-21        Coal Feeders
312-22        Pulverized Fuel Equipment
312-26        Bottom Ash, Economizer Ash and Pyrite Handling System
312-27        Boiler Blowoff Tank
312-39        Deaerator Feedwater Heater with Storage Tank
312-30        Feedwater Heater #1-1
312-31        Feedwater Heater #1-2
312-33        Booster Pumps
312-34        Feedwater Heater #1-4
312-35        Feedwater Heater #1-5
312-36        Boiler Feed Pumps
312-37        Feedwater Heater #1-6
312-38        Boiler Plant Piping
312-39        Miscellaneous Pumps and Drives
312-40        Piping Labor Operations
312-41        Auxiliary Steam System
312-46        Boiler Water Treating Equipment
312-47        Condensate Storage Tanks
312-51        Stack
312-52        Induced Draft Fans
312-87        Other Auxiliary Equipment

312.2         POLLUTION CONTROL EQUIPMENT
312.2-50      Air Quality Control System
</TABLE>
<PAGE>   76
Unit 2

FERC
ACCOUNT

<TABLE>
<S>           <C>
312.2-52      Scrubber

314           TURBOGENERATOR UNITS
314-11        Pedestal Substructures
314-14        Turbine Generator
314-17        Excitation and Voltage Regulation Systems
314-20        Lubricating Oil Systems
314-21        Stator Cooling Water System
314-22        Hydrogen Gas System
314-24        Bearing Cooling Water System
314-35        Condenser and Accessories
314-36        Condensate Pumps
314-37        Cooling Tower
314-38        Circulating Water Pumps
314-39        Circulating Water Ducts

315           ACCESSORY ELECTRIC EQUIPMENT
315-15        Conduits and Trays
315-18        Station Service and Startup Transformers
315-19        Generation Main Bus
315-21        Motor Control Centers
315-22        Local Control Stations and Receptacles
315-26        Wire and Cable
315-30        Switch Gear Control and Protective Equipment
315-36        Storage Battery Equipment
315-49        Misc. Electrical Material and Labor
315-49        Misc. Electrical Material and Labor
315-60        Digital/Analog Control System
315-61        Control Boards

316           MISCELLANEOUS POWER PLANT EQUIPMENT
316-11        Air Compressor Equipment
</TABLE>
<PAGE>   77
                                                                       EXHIBIT C
                                                                              TO
                                                                  FACILITY LEASE

                        DESCRIPTION OF COMMON FACILITIES

Common Facilities 1-2

         The Common Facilities 1-2 consists of all items of property,
constructed or installed for use by Units 1 and 2 in common pursuant to the
Ownership and Operating Agreements 1-2, and shall include, without limitation,
the assets described in Schedule C-1 hereto, other than those items listed on
such schedule that are required for use by Units 1 and 2 and Units 3 and 4 in
common pursuant to the Common Facilities Agreement.

Common Facilities 1-2-3-4

The Common Facilities 1-2-3-4 consists of all items of property, constructed or
installed for use by both of Units 1 and 2 and Units 3 and 4 in common pursuant
to the Common Facilities Agreement, and shall include, without limitation, the
Yellowstone river pumping plant, the surge pond, the environmental building, the
warehouse, the machine shop, the auto shop, the training center, the
administration building, the auxiliary services building, the garage/warehouse,
the meteorological and air quality monitoring structures, and each of the other
assets described in Schedule C-1 hereto to be used by both of Units 1 and 2 and
Units 3 and 4 in common pursuant to the Common Facilities Agreement, other than
the Common Facilities 1-2.
<PAGE>   78
                                                                    SCHEDULE C-1

COMMON FACILITIES 1-2 AND COMMON FACILITIES 1-2-3-4

FERC
ACCOUNT

<TABLE>
<S>           <C>
311           STRUCTURES AND IMPROVEMENTS
311-11        Site Preparation and Improvements
311-12        Site Facilities
311-14        Other Facilities
311-15        Water Supply System
311-17        Brine Concentrator, Wash Tray, Pump Building
311-18        Station Building
311-19        Other Structures
311-21        Water Supply System - Common
311-22        Intake Structure Equipment
311-23        Surge Pond #1 Structures
311-24        Surge Pond #1

311.2         POLLUTION CONTROL
311.2-16      Ash Water Handling
311.2-17      Ash Handling Facilities

312           BOILER PLANT EQUIPMENT
312-19        Coal Delivery Facilities
312-23        Gas Fuel Equipment
312-38        Boiler Plant Piping
312-40        Piping Labor Operations
312-41        Auxiliary Steam System
312-45        Auxiliary Boilers
312-46        Boiler Water Treating Equipment
312-48        Water Management Costs
312-87        Other Auxiliary Equipment

312.2         POLLUTION CONTROL EQUIPMENT
312.2-50      Air Quality Control System
312.2-52      Scrubber

314           TURBOGENERATOR UNITS
314-20        Lubricating Oil Systems
314-22        Hydrogen Gas System
314-48        Brine Concentrator
314-49        Water Management Costs
              Miscellaneous Costs
</TABLE>
<PAGE>   79
COMMON FACILITIES 1-2 AND COMMON FACILITIES 1-2-3-4

FERC
ACCOUNT

<TABLE>
<S>           <C>
315           ACCESSORY ELECTRIC EQUIPMENT
315-15        Conduits and Trays
315-18        Station Service and Startup Transformers
315-21        Motor Control Centers
315-26        Wire and Cable
315-30        Switch Gear Control and Protective Equipment
315-49        Misc. Electrical Material and Labor
315-51        Emergency Generators
315-60        Digital/Analog Control System
315-61        Control Boards
315-62        Computer Data Logger

316           MISCELLANEOUS POWER PLANT EQUIPMENT
316-11        Air Compressor Equipment
316-12        Building Crane and Miscellaneous Hoists
316-13        Office Shop and Laboratory
316-14        Miscellaneous Equipment
316-15        Office Shop and Laboratory Additional Equipment
</TABLE><PAGE>   1

                                                                  Exhibit 4.8(a)

                            FACILITY LEASE AGREEMENT
                                      (BA3)

                            Dated as of July 20, 2000

                                     between

                                MONTANA OL4 LLC,
                                 as Owner Lessor

                                       and

                                PPL MONTANA, LLC,
                               as Facility Lessee

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

                           COLSTRIP GENERATING UNIT 3
                          AND RELATED COMMON FACILITIES

CERTAIN OF THE RIGHT, TITLE AND INTEREST OF THE OWNER LESSOR IN AND TO THIS
LEASE AND THE RENT DUE AND TO BECOME DUE HEREUNDER HAVE BEEN ASSIGNED AS
COLLATERAL SECURITY TO, AND ARE SUBJECT TO A SECURITY INTEREST IN FAVOR OF THE
CHASE MANHATTAN BANK, NOT IN ITS INDIVIDUAL CAPACITY BUT SOLELY AS LEASE
INDENTURE TRUSTEE UNDER AN INDENTURE OF TRUST, MORTGAGE AND SECURITY AGREEMENT
(BA3), DATED AS OF JULY 20, 2000, BETWEEN SAID LEASE INDENTURE TRUSTEE, AS
SECURED PARTY, AND THE OWNER LESSOR, AS DEBTOR. SEE SECTION 21 HEREOF FOR
INFORMATION CONCERNING THE RIGHTS OF THE ORIGINAL HOLDER AND THE HOLDERS OF THE
VARIOUS COUNTERPARTS HEREOF.
<PAGE>   2
                                        TABLE OF CONTENTS

<TABLE>
<CAPTION>
                                                                                                         PAGE
<S>                                                                                                      <C>
SECTION 1.               DEFINITIONS...................................................................     2

SECTION 2.               LEASE OF THE UNDIVIDED INTEREST...............................................     2

         Section 2.1.          Lease...................................................................     2

         Section 2.2.          Personal Property.......................................................     2

SECTION 3.               FACILITY LEASE TERM AND RENT..................................................     2

         Section 3.1.          Interim Lease Term......................................................     2

         Section 3.2.          Basic Lease Term........................................................     2

         Section 3.3.          Rent....................................................................     2

         Section 3.4.          Supplemental Lease Rent.................................................     4

         Section 3.5.          Adjustment of Lease Schedules...........................................     4

         Section 3.6.          Manner of Payments......................................................     6

SECTION 4.               DISCLAIMER OF WARRANTIES; RIGHT OF QUIET ENJOYMENT............................     6

         Section 4.1.          Disclaimer of Warranties................................................     6

         Section 4.2.          Quiet Enjoyment.........................................................     7

SECTION 5.               RETURN OF UNDIVIDED INTEREST..................................................     8

         Section 5.1.          Return..................................................................     8

         Section 5.2.          Condition Upon Return...................................................     8

         Section 5.3.          Environmental Reports...................................................     9

SECTION 6.               LIENS........................................................................     10

SECTION 7.               MAINTENANCE; REPLACEMENTS OF COMPONENTS......................................     10

         Section 7.1.          Maintenance............................................................     10

         Section 7.2.          Replacement of Components..............................................     10

SECTION 8.               MODIFICATIONS................................................................     11

         Section 8.1.          Required Modifications.................................................     11

         Section 8.2.          Optional Modifications.................................................     11

         Section 8.3.          Title to Modifications.................................................     12

SECTION 9.               NET LEASE....................................................................     12

SECTION 10.              EVENTS OF LOSS...............................................................     14

         Section 10.1.         Occurrence of Events of Loss...........................................     14

         Section 10.2.         Payment of Termination Value; Termination of Periodic
                               Lease Rent and Renewal Lease Rent......................................     14
</TABLE>

                                      -i-
<PAGE>   3
                                        TABLE OF CONTENTS
                                           (CONTINUED)
<TABLE>
<CAPTION>
                                                                                                         PAGE
<S>                                                                                                      <C>
         Section 10.3.         Rebuild or Replace.....................................................     16

         Section 10.4.         Application of Payments Not Relating to an Event of Loss...............     19

SECTION 11.              INSURANCE....................................................................     19

         Section 11.1.         Property Insurance.....................................................     19

         Section 11.2.         Liability Insurance....................................................     19

         Section 11.3.         Provisions with Respect to Insurance...................................     20

         Section 11.4.         Reports................................................................     20

         Section 11.5.         Additional Insurance by Owner Lessor...................................     21

         Section 11.6.         Waiver of Requirements.................................................     21

         Section 11.7.         Application of Insurance Proceeds......................................     22

SECTION 12.              INSPECTION...................................................................     23

SECTION 13.              TERMINATION OPTION FOR BURDENSOME EVENTS.....................................     24

         Section 13.1.         Election to Terminate..................................................     24

         Section 13.2.         Solicitation of Offers; Payments Upon Termination......................     25

         Section 13.3.         Procedure for Exercise of Termination Option...........................     25

         Section 13.4.         Assumption of the Lessor Note..........................................     26

         Section 13.5.         Certain Conditions to Termination......................................     26

SECTION 14.              TERMINATION FOR OBSOLESCENCE.................................................     27

         Section 14.1.         Termination............................................................     27

         Section 14.2.         Solicitation of Offers.................................................     27

         Section 14.3.         Right of Owner Lessor to Retain the Undivided Interest.................     28

         Section 14.4.         Procedure for Exercise of Termination Option...........................     29

         Section 14.5.         Certain Conditions to Termination......................................     30

SECTION 15.              LEASE RENEWAL................................................................     31

         Section 15.1.         First Wintergreen Renewal Lease Term...................................     31

         Section 15.2.         Second Wintergreen Renewal Lease Term..................................     31

         Section 15.3.         Fair Market Value Renewal Lease Terms..................................     32

         Section 15.4.         Renewal Lease Rent for the Renewal Lease Terms.........................     32

         Section 15.5.         Determination of Fair Market Rental Value..............................     33

         Section 15.6.         Simultaneous Renewals..................................................     34

SECTION 16.              EVENTS OF DEFAULT............................................................     34

SECTION 17.              REMEDIES.....................................................................     36
</TABLE>

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                                        TABLE OF CONTENTS
                                           (CONTINUED)
<TABLE>
<CAPTION>
                                                                                                         PAGE
<S>                                                                                                      <C>
         Section 17.1.         Remedies for Lease Event of Default....................................     36

         Section 17.2.         Cumulative Remedies....................................................     39

         Section 17.3.         No Delay or Omission to be Construed as Waiver.........................     39

         Section 17.4.         Significant Lease Default; Drawings Under Qualifying  Letter of Credit.     39

SECTION 18.              SECURITY INTEREST AND INVESTMENT OF SECURITY FUNDS...........................     40

SECTION 19.              FACILITY LESSEE'S RIGHT TO SUBLEASE..........................................     40

SECTION 20.              OWNER LESSOR'S RIGHT TO PERFORM..............................................     41

SECTION 21.              SECURITY FOR OWNER LESSOR'S OBLIGATION TO THE LEASE INDENTURE TRUSTEE........     41

SECTION 22.              WAIVER OF RIGHT TO PARTITION.................................................     42

SECTION 23.              MISCELLANEOUS................................................................     42

         Section 23.1.         Amendments and Waivers.................................................     42

         Section 23.2.         Notices................................................................     42

         Section 23.3.         Survival...............................................................     44

         Section 23.4.         Successors and Assigns.................................................     44

         Section 23.5.         "True Lease"...........................................................     44

         Section 23.6.         Business Day...........................................................     44

         Section 23.7.         Governing Law..........................................................     44

         Section 23.8.         Severability...........................................................     44

         Section 23.9.         Counterparts...........................................................     45

         Section 23.10.        Headings and Table of Contents.........................................     45

         Section 23.11.        Further Assurances.....................................................     45

         Section 23.12.        Effectiveness..........................................................     45

         Section 23.13.        Limitation of Liability................................................     45

         Section 23.14.        Measuring Life.........................................................     45
</TABLE>

                                      -iii-
<PAGE>   5
                                        TABLE OF CONTENTS
                                           (CONTINUED)

                                                                            Page

SCHEDULE 1 - PERIODIC LEASE RENT PERCENTAGES
SCHEDULE 2 - TERMINATION VALUE PERCENTAGES
SCHEDULE 3 - ALLOCATION OF PERIODIC LEASE RENT
EXHIBIT A - DESCRIPTION OF COLSTRIP SITE
EXHIBIT B - DESCRIPTION OF THE FACILITY
EXHIBIT C - DESCRIPTION OF THE COMMON FACILITIES -

                                      -iv-
<PAGE>   6
                            FACILITY LEASE AGREEMENT
                                      (BA3)

         This FACILITY LEASE AGREEMENT (BA3), dated as of July 20, 2000 (this
"Facility Lease"), between MONTANA OL4 LLC, a Delaware limited liability company
(the "Owner Lessor"), and PPL MONTANA, LLC, a Delaware limited liability company
(the "Facility Lessee" or "PPL Montana").

                                   WITNESSETH:

         WHEREAS, Unit 3 and the Common Facilities are located on the Unit 3
Site and the Common Facilities Site, respectively, which are more particularly
described on Exhibit A hereto;

         WHEREAS, rights and obligations as tenants-in-common of the co-owners
of the Unit 3 Site and the Common Facilities Site and all improvements
constructed, and all personal property situated, thereon, including Unit 3 and
the Common Facilities, are governed by the Ownership Agreement 3-4 and the
Common Facilities Agreement;

         WHEREAS, pursuant to the Site Lease and Sublease, PPL Montana has
leased an undivided interest in the Unit 3 Site and the Common Facilities Site,
each of which is described in Exhibit B hereto, to the Owner Lessor (which
undivided interests are collectively referred to herein as the "Ground Interest"
and are described in more detail in the definition of such term in Appendix A to
the Participation Agreement referred to in Section 1); and the Owner Lessor has
subleased the Ground Interest to PPL Montana for the term equal to the term of
this Facility Lease, including any renewals hereof;

         WHEREAS, pursuant to the Bill of Sale which has been recorded with the
Clerk and Recorder for Rosebud County, Montana on even date hereof, the Owner
Lessor has acquired from PPL Montana an undivided interest in Unit 3 and the
Related Common Facilities (which undivided interests are collectively referred
to herein as the "Undivided Interest" and are described in more detail in the
definition of such term in Appendix A to the Participation Agreement referred to
in Section 1);

         WHEREAS, Unit 3 and the Related Common Facilities do not include the
Unit 3 Site or the Common Facilities Site or any part thereof, and no part of
the Unit 3 Site or the Common Facilities Site is being leased to the Facility
Lessee under this Facility Lease; and

         WHEREAS, pursuant to this Facility Lease, the Owner Lessor will lease
the Undivided Interest to the Facility Lessee for the Fixed Lease Term and the
Renewal Lease Terms, if any, provided herein.

         NOW, THEREFORE, in consideration of the foregoing premises, the mutual
agreements herein contained, and other good and valuable consideration, the
receipt and sufficiency of which are hereby acknowledged, the parties hereto
agree as follows:
<PAGE>   7
SECTION 1.        DEFINITIONS

         Unless the context hereof otherwise requires, capitalized terms used in
this Facility Lease, including those in the recitals, and not otherwise defined
herein shall have the respective meanings set forth in Appendix A to the
Participation Agreement (BA3), dated as of July 13, 2000 among PPL Montana, the
Owner Lessor, the Owner Participant referred to therein, Wilmington Trust
Company, in the capacities referred to therein, and The Chase Manhattan Bank, in
the capacities referred to therein. The general provisions of such Appendix A
shall apply to the terms used in this Facility Lease and specifically defined
herein.

SECTION 2.        LEASE OF THE UNDIVIDED INTEREST

         Section 2.1. Lease. The Owner Lessor hereby leases the Undivided
Interest, upon the terms and conditions set forth herein, to the Facility Lessee
for the Interim Lease Term, the Basic Lease Term and, subject to the Facility
Lessee's exercise of the renewal option or options in Section 15, one or more
Renewal Lease Terms, and the Facility Lessee hereby leases the Undivided
Interest, upon the terms and conditions set forth herein, from the Owner Lessor.
The Facility Lessee and the Owner Lessor understand and agree that this Facility
Lease is subject to the Permitted Encumbrances. The Undivided Interest shall be
subject to the terms of this Facility Lease from the date on which this Facility
Lease is executed and delivered.

         Section 2.2. Personal Property. Title to the Undivided Interest, and
every portion thereof is severed, and shall be and remain severed, from title to
the real estate constituting the Colstrip Site, and shall not, except as
specifically contemplated by the Operative Documents, be affected in any way by
any instrument dealing with the Colstrip Site or any part thereof. The Undivided
Interest constitutes personal property for all purposes, other than possibly for
the purposes of laws relating to ad valorem or property taxes.

SECTION 3.        FACILITY LEASE TERM AND RENT

         Section 3.1. Interim Lease Term. The interim lease term of this
Facility Lease for the Undivided Interest (the "Interim Lease Term") shall
commence on the Closing Date and shall terminate at 11:59 p.m. (New York City
time) on October 20, 2000, subject to early termination in whole pursuant to
Section 10, 13, 14 or 17 hereof.

         Section 3.2. Basic Lease Term. The basic lease term of this Facility
Lease for the Undivided Interest (the "Basic Lease Term") shall commence on
October 21, 2000 and shall terminate at 11:59 p.m. (New York City time) on July
20, 2036, subject to earlier termination in whole pursuant to Section 10, 13, 14
or 17 hereof.

         Section 3.3. Rent.

                  (a) Payment of Rent. The Facility Lessee hereby agrees to pay
to the Owner Lessor interim rent with respect to the Interim Lease Term
("Interim Lease Rent") and basic lease rent, payable with respect to the Basic
Lease Term ("Basic Lease Rent," and together with Interim Lease Rent, "Periodic
Lease Rent") for the lease of the Undivided Interest as follows: each payment of
Periodic Lease Rent shall be in the amount equal to the product of the Purchase
Price multiplied by the Periodic Lease Rent Percentage set forth opposite such
Rent Payment

                                       2
<PAGE>   8
Date on Schedule 1 hereto, subject to Section 3.5 hereof. All Periodic Lease
Rent to be paid pursuant to this Section 3.3 shall be payable in the manner set
forth in Section 3.6.

                  (b) Allocation of Rent. The Periodic Lease Rent allocated to
each Rent Payment Period for the use by the Facility Lessee of the Undivided
Interest shall be an amount equal to the product of the Purchase Price
multiplied by the Allocation Percentage for the Undivided Interest as set forth
in Schedule 3 hereof (the "Allocated Rent"). Notwithstanding that Periodic Lease
Rent is payable in accordance with Section 3.3(a) hereof, the Allocated Rent
calculated pursuant to this Section 3.3(b) shall represent and be the amount of
Periodic Lease Rent for which the Facility Lessee becomes liable on account of
the use of the Undivided Interest for each calendar year included in whole or in
part in the Term.

                  (c) Deduction/Inclusion of Rent and Interest Under Section 467
of the Code. It is the intention of the Owner Lessor and the Facility Lessee
that the allocation of Periodic Lease Rent to each Rent Payment Period as
provided in Section 3.3(b) constitutes a specific allocation of fixed rent
within the meaning of Treasury Regulation section 1.467-1(c)(2)(ii) with the
effect that the Owner Lessor and the Facility Lessee, on any federal income tax
returns filed by them (or, on any income tax returns on which their income is
included), shall accrue the amounts of rental income and rental expense,
respectively, set forth for each Rent Payment Period in an amount equal to the
product of the Purchase Price multiplied by the percentage set forth for such
Rent Payment Period in Schedule 3 under the caption "Proportional Rent
Percentage" (the "Proportional Rent"). In addition, (i) if, with respect to any
Rent Payment Period, the Section 467 Interest Percentage set forth in Schedule 3
is positive, the Owner Lessor shall deduct interest expense and the Facility
Lessee shall accrue interest income with respect to such period in an amount
equal to the product of the Purchase Price multiplied by the percentage set
forth for such Rent Payment Period on Schedule 3 under the caption "Section 467
Interest Percentage" ("Lessor Section 467 Interest") and (ii) if, with respect
to any Rent Payment Period, then Section 467 Interest Percentage set fort in
Schedule 3 is negative, the Owner Lessor shall accrue interest income and
Facility Lessee shall deduct interest expense with respect to such period in an
amount equal to the product of the Purchase Price multiplied by the percentage
set forth for such Rent Payment Period on Schedule 3 under the caption "Section
467 Interest Percentage" ("Lessee Section 467 Interest)".

                  (d) Repayment of any Lessor Section 467 Loan Balance or any
Lessee Section 467 Loan Balance. If the Facility Lease is terminated prior to
July 20, 2036 or the Facility Lessee is otherwise required to pay Termination
Value (or amounts computed by reference thereto) (A) the Owner Lessor shall make
a payment to the Facility Lessee on the applicable Termination Date equal to the
Lessor Section 467 Loan Balance on such date, if any and (B) the Facility Lessee
shall make a payment to the Owner Lessor on the applicable Termination Date
equal to the Lessee Section 467 Loan Balance on such date, if any.
Notwithstanding the foregoing, either party may elect by notice to the other to
offset any Lessor 467 Loan Balance owed by the Owner Lessor to the Facility
Lessee against the amount of Termination Value (or amounts computed with respect
thereto) due and payable by the Facility Lessee to the Owner Lessor on such
date, and the Facility Lessee shall pay an amount equal to the excess of such
Termination Value (or the amount computed with respect thereto) over such Lessor
467 Loan Balance or the Owner Lessor shall pay an amount equal to the excess of
such Lessor 467 Loan Balance over such Termination Value (or the amount computed
with respect

                                       3
<PAGE>   9
thereto). Notwithstanding the foregoing or anything herein to the contrary, in
connection with any early termination pursuant to Section 10, 13, 14 or 17, the
Facility Lessee shall be obligated to pay the Debt Portion of Termination Value
on the applicable Termination Date without offset. The obligations of the Owner
Lessor and the Facility Lessee to repay the Lessor Section 467 Loan Balance and
the Lessee Section 467 Loan Balance, respectively, shall, except as otherwise
provided in this Section 3.3(d), survive termination of this Facility Lease.

         Section 3.4. Supplemental Lease Rent. The Facility Lessee also agrees
to pay to the Owner Lessor, or to any other Person entitled thereto as expressly
provided herein or in any other Operative Document, as appropriate, any and all
Supplemental Lease Rent, promptly as the same shall become due and owing, or
where no due date is specified, promptly after demand by the Person entitled
thereto, and in the event of any failure on the part of the Facility Lessee to
pay any Supplemental Lease Rent, the Owner Lessor shall have all rights, powers
and remedies provided for herein or by law or equity or otherwise for the
failure to pay Periodic Lease Rent or Renewal Lease Rent. The Facility Lessee
will also pay as Supplemental Lease Rent, to the extent permitted by Applicable
Law, an amount equal to interest at the Overdue Rate on any part of any payment
of Periodic Lease Rent or Renewal Lease Rent not paid when due for any period
for which the same shall be overdue and on any Supplemental Lease Rent not paid
when due (whether on demand or otherwise) for the period from such due date
until the same shall be paid. All Supplemental Lease Rent to be paid pursuant to
this Section 3.4 shall be payable in the manner set forth in Section 3.6.

         Section 3.5. Adjustment of Lease Schedules.

                  (a) The Facility Lessee and the Owner Lessor agree that
Periodic Lease Rent, Allocated Rent, Proportional Rent, Section 467 Loan
Balance, Section 467 Interest and Termination Values payable with respect to the
Undivided Interest shall be adjusted, either upwards or downwards, to reflect
(i) the principal amount, amortization and interest rate on any Additional
Lessor Notes issued pursuant to Section 2.12 of the Lease Indenture in
connection with a refinancing of the Lessor Note pursuant to Section 13.2 of the
Participation Agreement, and (ii) the issuance of Additional Lessor Notes
pursuant to Section 2.12 of the Lease Indenture in connection with the financing
of Modifications to the Facility pursuant to Section 13.1 of the Participation
Agreement. Any adjustments pursuant to this Section 3.5 shall be calculated to
preserve the Owner Participant's Net Economic Return through the end of the
Fixed Lease Term; provided, however, that to the extent consistent with
preserving the Owner Participant's Net Economic Return, all adjustments shall at
the option of the Facility Lessee be calculated to (x) minimize the average
annual Periodic Lease Rent over the Fixed Lease Term for the Facility Lessee's
GAAP accounting purposes and/or (y) minimize the present value to the Facility
Lessee of the Periodic Lease Rent; provided, that no such adjustment shall
require the Owner Participant to record a loss as of the date such adjustment is
made or shall change such Owner Participant's book earnings for the year in
which such adjustment is made by more than +/-5%. Adjustments will be made using
the same method of computation and assumptions originally used (other than those
that have changed as the result of the event giving rise to the adjustment) in
the calculation of the Periodic Lease Rent. The adjustments contemplated by this
Section 3.5 will result in corresponding adjustments to Allocated Rent,
Proportional Rent, Section 467 Loan Balances, Section 467 Interest and
Termination Values.

                                       4
<PAGE>   10
                  (b) Anything herein or in any other Operative Document to the
contrary notwithstanding, Periodic Lease Rent payable on any Rent Payment Date,
whether or not adjusted in accordance with this Section 3.5, shall, in the
aggregate, be in an amount at least sufficient to pay in full principal and
interest payable on the Lessor Note on such Rent Payment Date. Anything herein
or in any other Operative Document to the contrary notwithstanding, Termination
Values (excluding the Equity Portion of Termination Value) payable on any date
under this Facility Lease, whether or not adjusted in accordance with this
Section 3.5, shall in the aggregate, together with all other Rent due and owing
on such date, exclusive of any portion thereof that is an Excepted Payment, be
in an amount at least sufficient to pay in full the principal of, premium (other
than premium, if any, paid by the Owner Lessor pursuant to Section 14), if any,
and accrued interest on the Lessor Note payable on such date.

                  (c) Any adjustment pursuant to this Section 3.5 shall
initially be computed by the Owner Participant, subject to the verification
procedure described in this Section 3.5(c). Once computed, the results of such
computation shall promptly be delivered by the Owner Participant to the Facility
Lessee. Within 20 days after the receipt of the results of any such adjustment,
the Facility Lessee may request that a nationally recognized firm of accountants
or lease advisors selected by the Owner Participant and reasonably satisfactory
to the Facility Lessee (the "Verifier") verify, after consultation with the
Owner Participant and the Facility Lessee, the accuracy of such adjustment in
accordance with this Section 3.5. The Owner Participant and the Facility Lessee
hereby agree, subject to the execution by the Verifier of an appropriate
confidentiality agreement, to provide the Verifier with all information and
materials as shall be necessary in connection therewith. If the Verifier
confirms that such adjustment is in accordance with this Section 3.5, it shall
so certify to the Facility Lessee, the Owner Lessor and the Owner Participant
and such certification shall be final, binding and conclusive on the Facility
Lessee, the Owner Participant and the Owner Lessor. If the Verifier concludes
that such adjustment is not in accordance with this Section 3.5, and the
adjustments to Periodic Lease Rent, Allocated Rent, Proportional Rent, Section
467 Loan Balance, Section 467 Interest or Termination Value calculated by the
Verifier are different from those calculated by the Owner Participant, then it
shall so certify to the Facility Lessee, the Owner Lessor and the Owner
Participant and the Verifier's calculation shall be final, binding and
conclusive on the Facility Lessee, the Owner Lessor and the Owner Participant.
If the Facility Lessee does not request verification of any adjustment within
the period specified above, the computation provided by the Owner Participant
shall be final, binding and conclusive on the Facility Lessee, the Owner Lessor
and the Owner Participant. The final determination of any adjustment hereunder
shall be set forth in an amendment to this Facility Lease, executed and
delivered by the Owner Lessor and the Facility Lessee and consented to by the
Owner Participant; provided, however, that any omission to execute and deliver
such amendment shall not affect the validity and effectiveness of any such
adjustment. The reasonable fees, costs and expenses of the Verifier in verifying
an adjustment pursuant to this Section 3.5 shall be paid by the Facility Lessee;
provided, however, that, in the event that such Verifier determines that the
present value of Periodic Lease Rent to be made under this Facility Lease as
calculated by the Owner Participant is greater than the present value of the
correct Periodic Lease Rent as certified by the Verifier, in each case,
discounted annually at the Discount Rate, by more than five basis points, then
such expenses of the Verifier shall be paid by the Owner Participant.
Notwithstanding anything herein to the contrary, the sole responsibility of the
Verifier shall be to verify the calculations hereunder and matters of

                                       5
<PAGE>   11
interpretation of this Facility Lease or any other Operative Document shall not
be within the scope of the Verifier's responsibilities.

         Section 3.6. Manner of Payments. All Rent (whether Periodic Lease Rent,
Renewal Lease Rent or Supplemental Lease Rent) shall be paid by the Facility
Lessee in lawful currency of the United States of America in immediately
available funds to the recipient not later than 11:00 a.m. (New York City time)
on the date due. All Rent payable to the Owner Lessor (other than Excepted
Payments) shall be paid by the Facility Lessee to the Owner Lessor by payment to
the Owner Lessor's Account, or to such other place as the Owner Lessor shall
notify the Facility Lessee in writing; provided, however, that so long as the
Lien of the Lease Indenture has not been discharged, the Owner Lessor hereby
irrevocably directs (it being agreed and understood that such direction shall be
deemed to have been revoked after the Lien of the Lease Indenture shall have
been fully discharged in accordance with its terms), and the Facility Lessee
agrees, that all payments of Rent (other than Excepted Payments) payable to the
Owner Lessor shall be paid by wire transfer directly to the Lease Indenture
Trustee's Account or to such other place as the Lease Indenture Trustee shall
notify the Facility Lessee in writing pursuant to the Lease Indenture. Payments
constituting Excepted Payments shall be made to the Person entitled thereto at
the address for such Person set forth in the Participation Agreement, or to such
other place as such Person shall notify the Facility Lessee in writing.

SECTION 4.        DISCLAIMER OF WARRANTIES; RIGHT OF QUIET ENJOYMENT

         Section 4.1. Disclaimer of Warranties.

                  (a) Without waiving any claim the Facility Lessee may have
against any manufacturer, vendor or contractor, THE FACILITY LESSEE ACKNOWLEDGES
AND AGREES SOLELY FOR THE BENEFIT OF THE OWNER LESSOR AND THE OWNER PARTICIPANT
THAT (i) THE FACILITY AND EACH COMPONENT THEREOF IS OF A SIZE, DESIGN, CAPACITY
AND MANUFACTURE ACCEPTABLE TO THE FACILITY LESSEE, (ii) THE FACILITY LESSEE IS
SATISFIED THAT THE FACILITY AND EACH COMPONENT THEREOF IS SUITABLE FOR THEIR
RESPECTIVE PURPOSES, (iii) NEITHER THE OWNER LESSOR NOR THE OWNER PARTICIPANT IS
A MANUFACTURER OR A DEALER IN PROPERTY OF SUCH KIND, (iv) THE UNDIVIDED INTEREST
IS LEASED HEREUNDER TO THE EXTENT PROVIDED HEREBY FOR THE INTERIM LEASE TERM,
THE BASIC LEASE TERM AND THE RENEWAL LEASE TERMS, IF ANY, SPECIFIED HEREIN
SUBJECT TO ALL APPLICABLE LAWS NOW IN EFFECT OR HEREAFTER ADOPTED, INCLUDING (1)
ZONING REGULATIONS, (2) ENVIRONMENTAL LAWS OR (3) BUILDING RESTRICTIONS, AND IN
THE STATE AND CONDITION OF EVERY PART THEREOF WHEN THE SAME FIRST BECAME SUBJECT
TO THIS FACILITY LEASE WITHOUT REPRESENTATION OR WARRANTY OF ANY KIND BY THE
OWNER LESSOR OR THE OWNER PARTICIPANT AND (v) THE OWNER LESSOR LEASES FOR THE
INTERIM LEASE TERM, THE BASIC LEASE TERM AND THE RENEWAL LEASE TERMS, IF ANY,
SPECIFIED HEREIN AND THE FACILITY LESSEE TAKES THE UNDIVIDED INTEREST UNDER THIS
FACILITY LEASE "AS-IS", "WHERE-IS" AND "WITH ALL FAULTS", AND THE FACILITY
LESSEE ACKNOWLEDGES THAT NEITHER THE OWNER LESSOR, NOR THE OWNER PARTICIPANT
MAKES NOR SHALL BE DEEMED TO HAVE MADE, AND EACH

                                       6
<PAGE>   12
EXPRESSLY DISCLAIMS, ANY AND ALL RIGHTS, CLAIMS, WARRANTIES OR REPRESENTATIONS,
EITHER EXPRESS OR IMPLIED, AS TO THE VALUE, CONDITION, FITNESS FOR ANY
PARTICULAR PURPOSE, DESIGN, OPERATION, MERCHANTABILITY THEREOF OR AS TO THE
TITLE OF THE FACILITY, THE QUALITY OF THE MATERIAL OR WORKMANSHIP THEREOF OR
CONFORMITY THEREOF TO SPECIFICATIONS, FREEDOM FROM PATENT, COPYRIGHT OR
TRADEMARK INFRINGEMENT, THE ABSENCE OF ANY LATENT OR OTHER DEFECT, WHETHER OR
NOT DISCOVERABLE, OR AS TO THE ABSENCE OF ANY OBLIGATIONS BASED ON STRICT
LIABILITY IN TORT OR ANY OTHER EXPRESS OR IMPLIED REPRESENTATION OR WARRANTY
WHATSOEVER WITH RESPECT THERETO, except that the Owner Lessor represents and
warrants that on the Closing Date, the Undivided Interest will be free of Owner
Lessor's Liens. It is agreed that all such risks, as between the Owner Lessor
and the Owner Participant on the one hand and the Facility Lessee on the other
hand are to be borne by the Facility Lessee with respect to acts, occurrences or
omissions during the Facility Lease Term. Neither of the Owner Lessor nor the
Owner Participant shall have any responsibility or liability to the Facility
Lessee or any other Person with respect to any of the following: (x) any
liability, loss or damage caused or alleged to be caused directly or indirectly
by the Facility or any Component or by any inadequacy thereof or deficiency or
defect therein or by any other circumstances in connection therewith; (y) the
use, operation or performance of the Facility or any Component thereof or any
risks relating thereto; or (z) the delivery, operation, servicing, maintenance,
repair, improvement, replacement or decommissioning of the Facility or any
Component thereof. The provisions of this paragraph (a) of this Section 4.1 have
been negotiated, and, except to the extent otherwise expressly stated, the
foregoing provisions are intended to be a complete exclusion and negation of any
representations or warranties of the Owner Lessor, express or implied, with
respect to the Facility or any Components thereof, the Undivided Interest that
may arise pursuant to any Applicable Law now or hereafter in effect, or
otherwise.

                  (b) During the Facility Lease Term, so long as no Lease Event
of Default shall have occurred and be continuing, the Owner Lessor hereby
appoints irrevocably and constitutes the Facility Lessee its agent and
attorney-in-fact, coupled with an interest, to assert and enforce, from time to
time, in the name and for the account of the Owner Lessor and the Facility
Lessee, as their interests may appear, but in all cases at the sole cost and
expense of the Facility Lessee, whatever claims and rights the Owner Lessor may
have in respect of the Facility or any Component thereof, or the Undivided
Interest against any manufacturer, vendor or contractor, or under any express or
implied warranties relating to the Facility or any Component thereof, or the
Undivided Interest.

         Section 4.2. Quiet Enjoyment. The Owner Lessor agrees that,
notwithstanding any provision of any other Operative Document, so long as no
Lease Event of Default shall have occurred and be continuing, it shall not
interfere with or interrupt the quiet enjoyment of the use, operation and
possession by the Facility Lessee of the interest in the Undivided Interest
conveyed by this Facility Lease subject to the terms of this Facility Lease.

                                       7
<PAGE>   13
SECTION 5.        RETURN OF UNDIVIDED INTEREST

         Section 5.1. Return. Upon expiration or early termination of this
Facility Lease (other than a termination pursuant to Section 10 or, if the Unit
Interest is being transferred to the Facility Lessee, Section 13), the Facility
Lessee, at its own expense, shall return the Undivided Interest (together with
the undivided interest in all Modifications to such Unit and the allocable
portion of the undivided interest in all Modifications to the Related Common
Facilities, that, in either case, shall have vested in the Owner Lessor pursuant
to the first sentence of Section 8.3) to the Owner Lessor or any permitted
transferee or assignee of the Owner Lessor by surrendering the Undivided
Interest into the possession of the Owner Lessor or such transferee or assignee
at the location of such Unit on the Related Site. In connection with such
return, the Facility Lessee shall (a) assign, to the extent permitted by
Applicable Law, a corresponding undivided interest in, and shall cooperate with
all reasonable requests of the Owner Participant, the Owner Lessor or a
permitted transferee or assignee of either of such parties for purposes of
obtaining, or enabling the Owner Participant, the Owner Lessor or such
transferees or assignees to obtain, any and all licenses, permits, approvals and
consents of any Governmental Entities or other Persons that are or will be
required to be obtained by the Owner Participant, the Owner Lessor or such
transferee or assignee in connection with the use, operation or maintenance of
such Unit and the Related Common Facilities on or after such return in
compliance with the Project Agreements and Applicable Law; and (b) provide the
Owner Lessor or a permitted transferee or assignee of Owner Lessor copies of all
documents, instruments, plans, maps, specifications, manuals, drawings and other
documentary materials relating to the installation, maintenance, operation,
construction, design, modification and repair of such Unit and the Related
Common Facilities, as shall be in the Facility Lessee's possession and shall be
reasonably appropriate or necessary for the continued operation of such Unit.
Upon such return, the right to use the Undivided Interest granted hereunder for
the benefit of the Facility Lessee shall cease and terminate.

         Section 5.2. Condition Upon Return. At the time of a return of the
Undivided Interest by the Facility Lessee to the Owner Lessor pursuant to
Section 5.1 (other than a return pursuant to Section 14), the following
conditions shall be complied with, all at the Facility Lessee's sole cost and
expense:

                  (a) such Unit and the Related Common Facilities will be in at
least as good condition as if they had been maintained, repaired and operated
during the Facility Lease Term in compliance with the provisions of this
Facility Lease, ordinary wear and tear excepted, and there shall be no deferred
maintenance in respect of such Unit or the Related Common Facilities;

                  (b) the Undivided Interest shall be free and clear of all
Liens other than Permitted Liens;

                  (c) such Unit shall have at least the capability and
functional ability to generate electricity, on a continuous basis in normal
commercial operating conditions, substantially at the ratings for which it was
designed after taking into account all Modifications to such Unit and the
Related Common Facilities made in accordance with this Facility Lease (ordinary
wear and tear excepted);

                                       8
<PAGE>   14
                  (d) such Unit and the Related Common Facilities shall be in
compliance with all requirements of manufacturers required for the maintenance
in full force and effect of any material warranty then in effect with respect to
such Unit and the Related Common Facilities;

                  (e) no Component of such Unit or the Related Common Facilities
shall be a temporary Component and any Replacement Component of such Unit or the
Related Common Facilities shall satisfy the standards of Section 7.2; and

                  (f) the Facility Lessee, at the request of the Owner Lessor,
shall sell (subject to all existing encumbrances) to the Owner Lessor (or its
designee) at the then Fair Market Sales Value thereof, determined by agreement
between the Facility Lessee and the Owner Lessor or, absent agreement, by an
appraisal conducted according to the Appraisal Procedures, (i) an undivided
interest in all Severable Modifications made to such Unit equal to the Unit
Percentage, and (ii) to the extent such Modifications relate to such Unit, an
undivided interest in all Severable Modifications to the Related Common
Facilities equal to the Common Facilities Percentage (other than, in either
case, Severable Modifications referred to in the first sentence of Section 8.3).
The appraiser's fees and expenses incurred pursuant to this clause (f) shall be
paid by the Owner Lessor.

         Section 5.3. Environmental Reports. In connection with the return of
the Undivided Interest to the Owner Lessor pursuant to Section 5, the Facility
Lessee shall, at its own expense, provide the Owner Lessor and the Owner
Participant and, so long as the Lien of the Lease Indenture on such Unit shall
not have been terminated or discharged, the Lease Indenture Trustee (a) not
later than 180 days prior to the later of the Expiration Date or the last day of
the last Renewal Lease Term elected by the Facility Lessee, or (b) in connection
with any return pursuant to Section 17, as promptly as possible after a request
therefor by the Owner Lessor, the Owner Participant or, so long as the Lien of
the Lease Indenture on such Unit shall not have been terminated or discharged,
the Lease Indenture Trustee, a phase I environmental survey, which shall be
expanded to a phase II environmental survey if, as a result of the phase I
survey, facts are revealed that would reasonably necessitate a phase II survey,
prepared by a reputable environmental consulting firm (selected by the Facility
Lessee and reasonably acceptable to the Owner Participant) as to the
environmental condition of such Unit, the Related Common Facilities and the
Related Site and the compliance or non-compliance with applicable Environmental
Law and the presence or absence of any Environmental Condition, in form and
scope reasonably satisfactory to the Owner Participant. The provisions of such
surveys shall not relieve the Facility Lessee of any indemnification obligation
or liability with respect to Environmental Conditions, known or unknown, in
respect of such Unit, the Related Common Facilities or the Related Site and the
Facility Lessee will take any and all actions necessary to ensure that such
Unit, the Related Common Facilities and the Related Site comply with all
applicable Environmental Laws. If such survey shall indicate that either such
Unit, the Related Common Facilities or the Related Site is not in compliance
with applicable Environmental Laws, the Facility Lessee shall, within 90 days of
the Owner Lessor having received such survey, provide the Owner Participant and,
so long as the Lien of the Lease Indenture on such Unit shall not have been
terminated or discharged, the Lease Indenture Trustee with a remediation plan
designed to bring such Unit, the Related Common Facilities and the Related Site
into compliance with applicable Environmental Laws as promptly as is reasonably
practical and without materially adversely affecting the continued operation of
such Unit; provided, however, that the

                                       9
<PAGE>   15
Facility Lessee shall be solely responsible for any liability that may arise
from any delay in returning such Unit, and/or the Related Common Facilities
and/or the Related Site to full compliance with applicable Environmental Laws.
The obligations of the Facility Lessee set forth in this Section 5.3 shall
survive the termination of this Facility Lease and the expiration of the
Facility Lease Term.

SECTION 6.        LIENS

         The Facility Lessee will not directly or indirectly create, incur,
assume or suffer to exist any Lien on or with respect to the Undivided Interest,
or any interest therein or in, to or on its interest in this Facility Lease or
its interest in any other Operative Document, except Permitted Liens, and the
Facility Lessee shall promptly notify the Owner Lessor of the imposition of any
such Lien of which the Facility Lessee is aware and shall promptly, at its own
expense, take such action as may be necessary to fully discharge or release any
such Lien.

SECTION 7.        MAINTENANCE; REPLACEMENTS OF COMPONENTS

         Section 7.1. Maintenance. The Facility Lessee, at its own cost and
expense, will exercise all rights, powers, elections and options available to it
or any of its Affiliates under the Project Agreements to (a) cause the Facility
to be maintained in as good condition, repair and working order, in all material
respects as when delivered, ordinary wear and tear excepted, (i) in accordance
with Prudent Industry Practice, (ii) in compliance with all Applicable Laws of
any Governmental Entity having jurisdiction, including all Environmental Laws,
unless such noncompliance could not reasonably be expected to result in a
Material Adverse Effect, and (iii) in accordance with the terms of all insurance
policies required to be maintained pursuant to Section 11, and (b) cause to be
made all necessary repairs, renewals, replacements, betterments and improvements
thereof, all as in the reasonable judgment of the Facility Lessee may be
necessary so that the Facility may be operated in accordance with the Project
Agreements.

         Section 7.2. Replacement of Components. In the ordinary course of
maintenance, service, repair or testing, the Facility Lessee or the Operator, at
its own cost and expense, may remove or cause or permit to be removed from the
Facility any Component; provided, however, that the Facility Lessee shall
exercise all rights, powers, elections and options available to it under the
Project Agreements to (a) cause such Component to be replaced by a replacement
Component which shall be free and clear of all Liens (except Permitted Liens)
and in as good operating condition as the Component replaced, assuming that the
Component replaced was maintained in accordance with this Facility Lease (each
such replacement Component being herein referred to as a "Replacement
Component") and (b) cause such replacement to be performed in a manner which
does not diminish the current or residual value, remaining useful life or
utility of the Facility by more than a de minimis amount below the current or
residual value, the remaining useful life or the utility thereof immediately
prior to such replacement or cause the Facility to become "limited-use" property
within the meaning of Rev. Proc. 75-28, 1975-1 C.B. 752 or Rev. Proc. 76-30,
1976-2 C.B. 647. If any Component to the Facility an undivided interest in which
is subject to this Facility Lease, is at any time removed from the Facility,
such undivided interest in the Component shall remain subject to this Facility
Lease, wherever located, until such time as such Component shall be replaced by
a Replacement Component which has been incorporated in the Facility and which
meets the requirements for

                                       10
<PAGE>   16
Replacement Components specified above. Immediately upon any Replacement
Component becoming incorporated in the Facility, without further act (and at no
cost to the Owner Lessor and with no adjustment to the Purchase Price, Periodic
Lease Rent or Renewal Lease Rent), (i) the undivided interest in the replaced
Component shall no longer be subject to this Facility Lease, (ii) title to the
Owner Lessor's undivided interest in the removed Component (to the extent part
of the Undivided Interest) shall thereupon vest in the Facility Lessee or such
other Person as shall be designated by the Facility Lessee, free and clear of
all rights of the Owner Lessor and the Lease Indenture Trustee, (iii) title to
an undivided interest equal to the applicable Unit Percentage (for Components of
such Unit) or Common Facilities Percentage (for Components of the Related Common
Facilities) in the Replacement Component shall thereupon vest with the Owner
Lessor and such undivided interest shall (x) become subject to this Facility
Lease and the Lien of the Lease Indenture, and (y) be deemed a part of the
Undivided Interest for all purposes of this Facility Lease. Notwithstanding
anything in this Section 7.2 or elsewhere in this Facility Lease to the
contrary, if the Facility Lessee has determined that a Component is surplus or
obsolete, it shall have the right to remove such Component without replacing it;
provided, that no such Component may be so removed without being replaced if
such removal would diminish the current or residual value, remaining useful life
or utility of the Facility by more than a de minimis amount below the current or
residual value, the remaining useful life or the utility thereof immediately
prior to such removal or cause the Facility to become "limited use" property
within the meaning of Rev. Proc. 75-28, 1975-1 C.B. 752 or Rev. Proc. 76-30,
1976-2 C.B. 647.

SECTION 8.        MODIFICATIONS

         Section 8.1. Required Modifications. The Facility Lessee, at its own
cost and expense, shall exercise all rights, powers, elections and options
available to it under the applicable Project Agreements to make or cause or
permit to be made all Modifications to the Facility as they relate to the
Undivided Interest as are required by Applicable Law (each, a "Required
Modification"); provided, however, that the Facility Lessee may, in good faith
and by appropriate proceedings, diligently contest the validity or application
of any Applicable Laws in any reasonable manner which does not involve any
danger of (a) foreclosure, sale, forfeiture or loss of, or imposition of a Lien
on any part of the Undivided Interest or impair the use, operation or
maintenance of the Facility in any material respect, or (b) any criminal or
material civil liability being incurred by, or any material adverse effect on
the interests of, the Owner Participant or the Owner Lessor including subjecting
the Owner Participant or the Owner Lessor to regulation as a public utility
under Applicable Law.

         Section 8.2. Optional Modifications. The Facility Lessee at any time
may, at its own cost and expense, make or cause or permit to be made any
Modification to the Facility as the Facility Lessee considers desirable in the
proper conduct of its business (any such non-Required Modification being
referred to as an "Optional Modification"); provided that the Facility Lessee
shall exercise all rights, powers, elections and options available to it and any
of its Affiliates under the Project Agreements to prevent any Optional
Modification from being made to the Facility that would diminish by more than a
de minimis amount the current or residual value, remaining useful life or
utility of the Facility, below the current or residual value, remaining useful
life or utility of the Facility immediately prior to such Optional Modification
assuming the Facility was then in the condition required to be maintained by the
terms of this Facility Lease,

                                       11
<PAGE>   17
or cause the Facility to become "limited use" property, within the meaning of
Rev. Proc. 75-28, 1975-1 C.B. 752 or Rev. Proc. 76-30, 1976-2 C.B. 647.

         Section 8.3. Title to Modifications. Title to an undivided interest
equal to the applicable Unit Percentage (in the case of Modifications to a Unit)
or Common Facilities Percentage (in the case of Modifications to the Related
Common Facilities) in (a) all Required Modifications, (b) all Nonseverable
Modifications and (c) all Modifications financed by the Owner Lessor by an
Additional Equity Investment or a Supplemental Financing pursuant to Section
13.1 of the Participation Agreement shall (at no cost to the Owner Lessor and
with no adjustment to the Purchase Price or, except as provided herein, Periodic
Lease Rent or Renewal Lease Rent) immediately vest in the Owner Lessor, and such
undivided interest shall immediately (i) become subject to this Facility Lease
and, so long as the Lien of the Lease Indenture shall not have been terminated
or discharged, the Lien of the Lease Indenture, and (ii) be deemed part of the
Undivided Interest for all purposes of this Facility Lease. The Facility Lessee,
at its own cost and expense, shall take such steps as the Owner Lessor and, so
long as the Lien of the Lease Indenture shall not have been terminated or
discharged, the Lease Indenture Trustee may reasonably require from time to time
to confirm that title in such undivided interest has vested in the Owner Lessor
and that such undivided interest is subject to this Facility Lease and, so long
as the Lien of the Lease Indenture shall not have been terminated or discharged,
the Lien of the Lease Indenture. No interest in any Optional Modification which
is a Severable Modification (other than Severable Modifications which are
financed by the Owner Lessor by an Additional Equity Investment or a
Supplemental Financing pursuant to Section 13.1 of the Participation Agreement)
shall vest in the Owner Lessor or become subject to this Facility Lease or the
Lien of the Lease Indenture; provided, however, that if the Facility Lessee
shall, at its cost and expense, cause such Optional Modifications which are
Severable Modifications to be made to the Facility, the Owner Lessor shall have
the right, immediately prior to the return of the Undivided Interest to the
Owner Lessor hereunder, to purchase in accordance with Section 5.2(f) an
undivided interest equal to the applicable Unit Percentage (for Modifications to
such Unit) or Common Facilities Percentage (for Modifications to the Related
Common Facilities to the extent such Modifications relate to such Unit) in any
such Optional Modifications which are Severable Modifications. The purchase
price for such undivided interest shall be the then Fair Market Sales Value of
such undivided interest as determined pursuant to Section 5.2(f). If the Owner
Lessor does not elect to purchase such Optional Modifications which are
Severable Modifications, the Facility Lessee may, to the extent permitted by the
Project Agreements, remove such Modifications at the end of the Facility Lease
Term, all at the Facility Lessee's cost and expense.

SECTION 9.        NET LEASE

         This Facility Lease is a "net lease" and the Facility Lessee's
obligation to pay all Periodic Lease Rent and Renewal Lease Rent payable
hereunder (and, except as expressly set forth in Section 3.3(d), all amounts,
including Termination Value (or amounts computed by reference thereto), in lieu
of Periodic Lease Rent or Renewal Lease Rent following termination of this
Facility Lease in whole or in part) shall be absolute and unconditional under
any and all circumstances and shall not be terminated, extinguished, diminished,
lost or otherwise impaired by any circumstance of any character, including by
(i) any setoff, counterclaim, recoupment, defense or other right which the
Facility Lessee may have against the Owner Lessor, the Owner

                                       12
<PAGE>   18
Participant, the Lease Indenture Trustee or any other Person, including any
claim as a result of any breach by any of said parties of any covenant or
provision in this Facility Lease or any other Operative Document, (ii) any lack
or invalidity of title or any defect in the title, condition, design, operation,
merchantability or fitness for use of the Facility or any Component or any
portion of either thereof, or any eviction by paramount title or otherwise, or
any unavailability of the Facility, the Colstrip Site, any Component or any
portion of either thereof, any other portion of the Undivided Interest, or any
part thereof, (iii) any loss or destruction of, or damage to, the Facility or
any Component or any portion of either thereof or interruption or cessation in
the use or possession thereof or any part thereof by the Facility Lessee for any
reason whatsoever and of whatever duration, (iv) the condemnation,
requisitioning, expropriation, seizure or other taking of title to or use of the
Colstrip Site, the Facility, any Component or any portion of either thereof, or
any other portion of the Undivided Interest by any Governmental Entity or
otherwise, (v) the invalidity or unenforceability or lack of due authorization
or other infirmity of this Facility Lease or any other Operative Document, (vi)
the lack of right, power or authority of the Owner Lessor to enter into this
Facility Lease or any other Operative Document, (vii) any ineligibility of the
Facility or any Component or any portion of either thereof for any particular
use, whether or not due to any failure of the Facility Lessee to comply with any
Applicable Law, (viii) any event of "force majeure" or any frustration, (ix) any
legal requirement similar or dissimilar to the foregoing, any present or future
law to the contrary notwithstanding, (x) any insolvency, bankruptcy,
reorganization or similar proceeding by or against the Facility Lessee or any
other Person, (xi) any Lien of any Person with respect to the Colstrip Site, the
Facility, any Component or any portion of either thereof, any other portion of
the Undivided Interest or any part thereof, (xii) the existence of any
Qualifying Letter of Credit other than to the extent of drawings thereunder, or
(xiii) any other cause, whether similar or dissimilar to the foregoing, any
present or future law notwithstanding, except as expressly set forth herein or
in any other Operative Document, it being the intention of the parties hereto
that all Periodic Lease Rent and Renewal Lease Rent (and all amounts, including
Termination Value, in lieu of Periodic Lease Rent or Renewal Lease Rent
following termination of this Facility Lease in whole or in part) payable by the
Facility Lessee hereunder shall continue to be payable in all events in the
manner and at times provided for herein. Such Periodic Lease Rent or Renewal
Lease Rent (and except as expressly set forth in Section 3.3(d), all amounts,
including Termination Value (or amounts computed by reference thereto), in lieu
of Periodic Lease Rent or Renewal Lease Rent following termination of this
Facility Lease in whole or in part) shall not be subject to any abatement and
the payments thereof shall not be subject to any setoff or reduction for any
reason whatsoever, including any present or future claims of the Facility Lessee
or any other Person against the Owner Lessor or any other Person under this
Facility Lease or otherwise. To the extent permitted by Applicable Law, the
Facility Lessee hereby waives any and all rights which it may now have or which
at any time hereafter may be conferred upon it, by statute or otherwise, to
terminate, cancel, quit or surrender this Facility Lease with respect to the
Undivided Interest except in accordance with Sections 10, 13, 14 or 15. If for
any reason whatsoever this Facility Lease shall be terminated in whole or in
part by operation of law or otherwise, except as specifically provided herein,
the Facility Lessee nonetheless agrees, to the extent permitted by Applicable
Law, to pay to the Owner Lessor an amount equal to each installment of Periodic
Lease Rent (or, in connection with a termination of a Renewal Lease Term,
Renewal Lease Rent) and all Supplemental Lease Rent due and owing, at the time
such payment would have become due and payable in accordance with the terms
hereof had this Facility Lease not been so

                                       13
<PAGE>   19
terminated. Nothing contained herein shall be construed to waive any claim which
the Facility Lessee might have under any of the Operative Documents or otherwise
or to limit the right of the Facility Lessee to make any claim it might have
against the Owner Lessor or any other Person or to pursue such claim in such
manner as the Facility Lessee shall deem appropriate.

SECTION 10.       EVENTS OF LOSS

         Section 10.1. Occurrence of Events of Loss. The Owner Participant or
the Owner Lessor will promptly notify the Facility Lessee of any event of which
it is aware that upon election of the Owner Participant would result in a
Regulatory Event of Loss. If an Event of Loss described in clauses (a) or (b) of
the definition of Event of Loss shall occur, then no later than six months
following such occurrence the Facility Lessee shall notify the Owner Lessor, the
Owner Participant and, so long as the Lien of the Lease Indenture shall not have
been terminated or discharged, the Lease Indenture Trustee and the Pass Through
Trustee in writing of its election to either (a) if no Significant Lease Default
or Lease Event of Default (other than Lease Events of Default arising as a
result of such Event of Loss) has occurred and is continuing and subject to the
satisfaction of the conditions set forth in Section 10.3(a) and (b), rebuild or
replace such Unit to the extent of the Undivided Interest and subject to the
Project Agreements and the Related Common Facilities so that such Unit to the
extent of the Undivided Interest shall have a current and residual value,
remaining useful life and utility at least equal to that of the Undivided
Interest prior to such Event of Loss, assuming such Unit and the Related Common
Facilities were in the condition and repair required to be maintained by this
Facility Lease or (b) terminate this Facility Lease pursuant to Section 10.2
hereof. The Facility Lessee may elect the option provided in clause (b) of the
preceding sentence regardless of whether such Unit and the Related Common
Facilities are to be rebuilt or replaced. If the Facility Lessee fails to make
an election as provided above, an Event of Loss shall be deemed to occur as of
the end of the six month period referred to in the second sentence of this
Section 10.1 and the Facility Lessee will be deemed to have made the election to
terminate this Facility Lease pursuant to Section 10.2. Notwithstanding the
foregoing, the Facility Lessee may make either such election only if (i) the
Facility Lessee makes an identical election under the Other Facility Lease with
respect to the Facility, and (ii) in the case of an election under Section
10.1(a), the Facility Lessee shall have complied with Section 10.3(a) and (b)
hereunder and under the Other Facility Lease with respect to the Facility.

         Section 10.2. Payment of Termination Value; Termination of Periodic
Lease Rent and Renewal Lease Rent.

                  (a) If (x) an Event of Loss described in clause (a) or (b) of
the definition of Event of Loss shall have occurred and the Facility Lessee
shall elect not to rebuild or replace such Unit and the Related Common
Facilities pursuant to Section 10.1(a) hereof or an Event of Loss shall be
deemed to occur pursuant to the penultimate sentence of Section 10.1, or (y) an
Event of Loss described in clause (c) or (d) of the definition of Event of Loss
shall occur, then, on the next Termination Date at least one month after the
Facility Lessee's notice of its election referred to in the second sentence of
Section 10.1 or at least one month after the occurrence of a deemed Event of
Loss pursuant to the penultimate sentence of Section 10.1 in the case of clause
(x) above, or on the next Termination Date occurring at least three months after
the occurrence of such Event of Loss or, if earlier, at least one month after
receipt of insurance

                                       14
<PAGE>   20
proceeds in respect of such Event of Loss in the case of clause (y) above, the
Facility Lessee shall terminate the Facility Lease and pay to the Owner Lessor
(A) the Termination Value determined as of the relevant Termination Date, plus
(B) all amounts of Supplemental Lease Rent (including all documented
out-of-pocket costs and expenses of the Owner Lessor, the Owner Participant, the
Lease Indenture Trustee and the Pass Through Trustee, and all sales, use, value
added and other Taxes required to be indemnified by the Facility Lessee pursuant
to Section 11.2 of the Participation Agreement associated with the exercise of
the termination option pursuant to this Section 10.2) due and payable on or
prior to such Termination Date, plus (C) any unpaid Periodic Lease Rent and
Renewal Lease Rent due before such Termination Date, plus (D) the Lessee Section
467 Loan Balance, if any, determined as of the relevant Termination Date and the
Owner Lessor shall pay to the Facility Lessee the Lessor Section 467 Loan
Balance, if any, determined as of such Termination Date. The obligation to make
such payments shall be subject to the provisions of Section 3.3(d), and all
payments of Rent under this Section 10.2(a) shall, to the extent required by
Section 3.6(a), be made to the Lease Indenture Trustee.

                  (b) Concurrently with the payment of all sums required to be
paid pursuant to this Section 10.2, (i) Periodic Lease Rent and Renewal Lease
Rent shall cease to accrue, (ii) the Facility Lessee's obligations under
Sections 6, 7, 8, 11 and 12 shall terminate, (iii) the Facility Lessee shall
cease to have any other liability to the Owner Lessor except for Supplemental
Lease Rent and other obligations (including those under Sections 11.1 and 11.2
of the Participation Agreement) surviving pursuant to the express provisions of
any Operative Document, (iv) unless the Facility Lessee assumes the Lessor Note
pursuant to Section 10.2(c), the Owner Lessor shall pay the outstanding
principal and accrued interest on the Lessor Note pursuant to Section 2.10(a) of
the Lease Indenture, (v) this Facility Lease shall terminate, (vi) the Owner
Lessor shall, at the Facility Lessee's cost and expense, execute and deliver to
the Facility Lessee a release or termination of this Facility Lease, (vii) the
Owner Lessor shall transfer (by an appropriate instrument of transfer in form
and substance reasonably satisfactory to the Owner Lessor and prepared and
recorded by and at the expense of the Facility Lessee) all of its right, title
and interest in and to the Undivided Interest and the Ground Interest to the
Facility Lessee pursuant to this Section 10.2 hereof and Section 9.1 of the Site
Lease and Sublease, respectively, on an "as is", "where is" and "with all
faults" basis, without representations or warranties other than a warranty as to
the absence of Owner Lessor's Liens and a warranty of the Owner Participant as
to the absence of Owner Participant's Liens; and (viii) the Owner Lessor shall
discharge the Lien of the Lease Indenture and execute and deliver appropriate
releases and other documents or instruments necessary or desirable to effect the
foregoing, all to be prepared, filed and recorded (as appropriate) at the cost
and expense of the Facility Lessee.

                  (c) Notwithstanding the foregoing provisions of paragraph (a)
of this Section 10.2, in the case of a Regulatory Event of Loss, if (i) the
Facility Lessee shall have executed and delivered an assumption agreement to
assume in full the Lessor Note as permitted by and in accordance with Section
2.10(b) of the Lease Indenture, (ii) all other conditions contained in such
Section 2.10(b) shall have been satisfied, and (iii) no Significant Lease
Default or Lease Event of Default shall have occurred or be continuing after
giving effect to such assumption, then, the obligation of the Facility Lessee to
pay Termination Value shall be reduced by the outstanding principal amount and
accrued interest of the Lessor Note so assumed by the Facility Lessee.

                                       15
<PAGE>   21
                  (d) Any payments received at any time by the Owner Lessor, the
Lease Indenture Trustee or the Facility Lessee from any Governmental Entity as a
result of the occurrence of an Event of Loss described in clause (c) of the
definition of Event of Loss or from insurance proceeds as a result of the
occurrence of an Event of Loss described in clause (a) or (b) of the definition
of Event of Loss shall be applied as follows:

                           (i) all such payments received at any time by the
                  Facility Lessee shall be promptly paid to the Owner Lessor or
                  if the Lien of the Lease Indenture shall not have been
                  terminated or discharged, to the Lease Indenture Trustee, for
                  application pursuant to the following provisions of this
                  Section 10.2, except that so long as no Significant Lease
                  Default or Lease Event of Default shall have occurred and be
                  continuing (other than Lease Events of Default arising as a
                  result of such Event of Loss), the Facility Lessee may retain
                  any amounts that the Owner Lessor would at the time be
                  obligated to pay to the Facility Lessee as reimbursement under
                  the provisions of paragraph (ii) below;

                           (ii) so much of such payments as shall not exceed the
                  amount required to be paid by the Facility Lessee pursuant to
                  paragraph (a) of this Section 10.2 shall be applied in
                  reduction of the Facility Lessee's obligation to pay such
                  amount if not already paid by the Facility Lessee or, if
                  already paid by the Facility Lessee, shall, so long as no
                  Significant Lease Default or Lease Event of Default (other
                  than Lease Events of Default arising as a result of such Event
                  of Loss) shall have occurred and be continuing, be applied to
                  reimburse the Facility Lessee for its payment of such amount;
                  and

                           (iii) the balance, if any, of such payments remaining
                  thereafter shall be apportioned between the Owner Lessor and
                  the Facility Lessee as their interests may appear.

         Notwithstanding the foregoing, if the Facility Lessee shall have
elected to rebuild or replace any Unit and the Related Common Facilities
pursuant to Section 10.1(a), any insurance proceeds received by the Owner
Lessor, the Lease Indenture Trustee or the Facility Lessee as a result of the
occurrence of an Event of Loss described in clause (a) or (b) of the definition
of Event of Loss shall be applied as provided in Section 11.7.

         Section 10.3. Rebuild or Replace. The Facility Lessee's right to
rebuild or replace any Unit and the Related Common Facilities pursuant to
Section 10.1(a) shall be subject to the fulfillment, at the Facility Lessee's
sole cost and expense, in addition to the conditions contained in said clause
(a), of the following conditions:

                  (a) the Facility Lessee shall, on the date it gives notice
         pursuant to Section 10.1(a) of its election to rebuild or replace such
         Unit and the Related Common Facilities, (i) deliver to the Owner
         Participant an indemnity against all adverse tax risks as a result of
         such proposed rebuilding or replacement, such indemnity to be in form
         and substance satisfactory to the Owner Participant, (ii) deliver to
         the Owner Participant and, so long as the Lien of the Lease Indenture
         shall not have been terminated or discharged, the Lease Indenture
         Trustee (A) a report of R.W. Beck or another independent engineer,

                                       16
<PAGE>   22
         such other engineer and such report to be reasonably acceptable to the
         Owner Participant and, so long as the Lien of the Lease Indenture shall
         not have been terminated or discharged, the Lease Indenture Trustee, to
         the effect that the rebuilding or replacement of such Unit and the
         Related Common Facilities is technologically feasible and economically
         viable and that such rebuilding or replacement can be completed by a
         date 36 months prior to the end of the Basic Lease Term or any Renewal
         Lease Term then in effect or elected by the Facility Lessee, (B) an
         appraisal of an independent appraiser, such appraiser and such
         appraisal to be reasonably acceptable to the Owner Participant, and, so
         long as the Lien of the Lease Indenture shall not have been terminated
         or discharged, the Lease Indenture Trustee to the effect that the
         replacement facilities to the extent of the Undivided Interest, will
         have at least the same value, residual value, useful life and utility
         as such Unit and the Related Common Facilities to the extent of the
         Undivided Interest as immediately prior to the Event of Loss, and (C)
         an Officer's Certificate of the Facility Lessee to the effect that it
         reasonably believes that the Facility Lessee will have sufficient funds
         available to continue to pay Periodic Lease Rent and Renewal Lease Rent
         during the period of such rebuilding or replacement, and (iii)
         demonstrate to the reasonable satisfaction of the Owner Participant
         and, so long as the Lien of the Lease Indenture shall not have been
         terminated or discharged, the Lease Indenture Trustee that adequate
         financial resources are available, from insurance proceeds (including
         any amounts held by the Lease Indenture Trustee) or otherwise, to
         complete such rebuilding or replacement;

                  (b) receipt by the Owner Participant of (i) a tax opinion of
         its counsel, such opinion to be satisfactory to the Owner Participant,
         to the effect that, assuming the proposed rebuilding or replacement is
         completed in the manner and within the time proposed, such rebuilding
         or replacement will not cause any unindemnified adverse tax
         consequences to the Owner Participant, such opinion to take into
         account any payments (or indemnities made pursuant to clause (ii) or
         (iii) of this Section 10.3(b)) made or caused to be made by the
         Facility Lessee (in its sole discretion) to reimburse (or protect) the
         Owner Participant for any loss of Tax Benefits, (ii) an indemnity
         against such risk in form and substance satisfactory to the Owner
         Participant from an entity that meets the Minimum Credit Standard, or
         (iii) any other indemnity arrangements satisfactory to the Owner
         Participant;

                  (c) the Facility Lessee shall cause the rebuilding or
         replacement of such Unit and the Related Common Facilities to commence
         as soon as practicable after notifying the Owner Lessor and, so long as
         the Lien of the Lease Indenture shall not have been terminated or
         discharged, the Lease Indenture Trustee and the Pass Through Trustee
         pursuant to Section 10.1(a), of its election to rebuild or replace such
         Unit and the Related Common Facilities, and in all events within 18
         months of the occurrence of the event that caused such Event of Loss
         and will cause work on such rebuilding or replacement to proceed
         diligently thereafter. As the rebuilding or replacement of such Unit
         and the Related Common Facilities progresses, title to an undivided
         interest equal to the applicable Unit Percentage in the rebuilt or
         replacement Unit and the applicable Common Facilities Percentage in the
         rebuilt or replacement Related Common Facilities shall vest in the
         Owner Lessor and such undivided interest shall become subject to this
         Facility Lease and, so long as the Lien of the Lease Indenture shall
         not have been terminated or

                                       17
<PAGE>   23
         discharged, the Lien of the Lease Indenture and be deemed a part of the
         Undivided Interest for all purposes of this Facility Lease,
         automatically without any further act by any Person; and

                  (d) on the date of the completion of such rebuilding or
         replacement of such Unit and the Related Common Facilities (the
         "Rebuilding Closing Date") the following documents shall be duly
         authorized, executed and delivered and, if appropriate, filed for
         recordation by the respective party or parties thereto and shall be in
         full force and effect, and an executed counterpart of each thereto
         shall be delivered to the Owner Lessor, the Owner Participant and, so
         long as the Lien of the Lease Indenture shall not have been terminated
         or discharged, the Lease Indenture Trustee; (i) supplements to this
         Facility Lease subjecting an undivided interest equal to the applicable
         Unit Percentage or Common Facilities Percentage in the rebuilt or
         replacement facilities to this Facility Lease (with no change in
         Purchase Price or the Periodic Lease Rent or Renewal Lease Rent as a
         result of such rebuilding or replacement), (ii) so long as the Lien of
         the Lease Indenture shall not have been terminated or discharged,
         supplements to the Lease Indenture subjecting such undivided interests
         in the rebuilt or replacement facilities to the Lien of the Lease
         Indenture, (iii) such recordings and filings as may be reasonably
         requested by the Owner Participant and the Lease Indenture Trustee to
         be made or filed, (iv) an opinion of counsel of the Facility Lessee,
         such counsel and such opinion to be reasonably satisfactory to the
         Owner Participant and, so long as the Lien of the Lease Indenture shall
         not have been terminated or discharged, the Lease Indenture Trustee to
         the effect that (A) the supplements to this Facility Lease required by
         clause (i) above constitute effective instruments for subjecting such
         undivided interests in the rebuilt or replacement facilities to this
         Facility Lease, (B) the supplements to the Lease Indenture required by
         clause (ii) above, if any, constitute effective instruments for
         subjecting such undivided interests in the rebuilt or replacement
         facilities to the Lien of the Lease Indenture, and (C) all filings and
         other action necessary to perfect and protect the Owner Lessor's and,
         if applicable, the Lease Indenture Trustee's interest in such undivided
         interests in the rebuilt or replacement facilities have been
         accomplished, (v) an appraisal by an Independent Appraiser, certifying
         that the rebuilt or replacement facilities have a current and residual
         value, remaining useful life and utility at least equal to the current
         and residual value, remaining useful life and utility of such Unit
         Interest immediately prior to such Event of Loss (assuming such Unit
         and the Related Common Facilities were in the condition and repair
         required to be maintained by the terms of this Facility Lease), (vi) a
         report by an independent engineer certifying that rebuilt or
         replacement facilities are in a state of repair and condition required
         by this Facility Lease, (vii) an Officer's Certificate of the Facility
         Lessee as to compliance with this Section 10.3 and that no Lease Event
         of Default shall have occurred and be continuing as a result of the
         rebuild or replacement, and (viii) satisfactory evidence as to the
         compliance with Section 11 of this Facility Lease with respect to the
         rebuilt or replacement facilities.

Whether or not the transactions contemplated by this Section 10.3 are
consummated, the Facility Lessee agrees to pay or reimburse, on an After-Tax
Basis, any costs or expenses (including reasonable legal fees and expenses)
incurred by the Owner Lessor, the Owner Participant, the Lease Indenture Trustee
and the Pass Through Trustee in connection with the transactions contemplated by
this Section 10.3.

                                       18
<PAGE>   24
         Section 10.4. Application of Payments Not Relating to an Event of Loss.

                  (a) In the event that during the Facility Lease Term the use
of all or any portion of the Undivided Interest is requisitioned or taken by or
pursuant to a request of any Governmental Entity under the power of eminent
domain or otherwise for a period which does not constitute an Event of Loss, the
Facility Lessee's obligation to pay all installments of Periodic Lease Rent and
Renewal Lease Rent shall continue for the duration of such requisitioning or
taking. The Facility Lessee shall be entitled to receive and retain for its own
account all sums payable for any such period by such Governmental Entity as
compensation for such requisition or taking of possession. Any amount referred
to in this Section 10.4(a) which is payable to the Facility Lessee shall not be
paid to the Facility Lessee, or if it has been previously paid directly to the
Facility Lessee, shall not be retained by the Facility Lessee, if at the time of
such payment a Significant Lease Default or Lease Event of Default shall have
occurred and be continuing, but shall be paid to and held by the Owner Lessor
or, so long as the Lien of the Lease Indenture shall not have been terminated or
discharged, the Lease Indenture Trustee as security for the obligations of the
Facility Lessee under this Facility Lease, and upon the earlier of (i) 180 days
after the Owner Lessor (or the Lease Indenture Trustee) shall have received such
amount, provided the Owner Lessor (or the Lease Indenture Trustee) has not
proceeded to exercise any remedy under Section 17 and it is not stayed or
prevented by law or otherwise from exercising such remedy and (ii) such time as
there shall not be continuing any such Significant Lease Default or Lease Event
of Default, such amount shall be paid to the Facility Lessee.

                  (b) Any insurance proceeds with respect to the Undivided
Interest received at any time by the Owner Lessor, the Lease Indenture Trustee
or the Facility Lessee under any of the insurance policies required to be
maintained by the Facility Lessee under Section 11 as a result of any damage to
the Facility or any part thereof which does not constitute an Event of Loss
shall be applied as follows: (i) in accordance with Section 11.7; and (ii) the
balance, if any, of such insurance proceeds remaining thereafter shall be paid
to the Facility Lessee.

SECTION 11. INSURANCE

         Section 11.1. Property Insurance. Subject to Section 11.6, the Facility
Lessee will maintain (or cause to be maintained) all risk property insurance
customarily carried by prudent operators of coal-fired electric generating
facilities of comparable size and risk of the Facility (to the extent of the
Undivided Interest), and against loss or damage from such causes as are
customarily insured against, which includes coverage for boiler and machinery
coverage to cover mechanical breakdown and, in any case, in an amount equal to
the Maximum Probable Loss of the Facility (to the extent of the Undivided
Interest) with a deductible not to exceed $2.5 million per occurrence.

         Section 11.2. Liability Insurance. Subject to Section 11.6, the
Facility Lessee will maintain (or cause to be maintained) commercial general
liability insurance, commercial automobile liability insurance and contractual
liability coverage, insuring against claims for bodily injury (including death)
and property damage to third parties arising out of the ownership, operation,
maintenance, condition and use of the Facility and the Colstrip Site, with
limits not less than $35 million per occurrence/aggregate with a deductible not
to exceed $2.5 million per occurrence. The Facility Lessee will periodically
review the liability insurance maintained by it

                                       19
<PAGE>   25
or on its behalf and will, if necessary, revise such coverage and limits
(including deductibles) in order that the liability insurance maintained by it
or on its behalf is consistent with that maintained by prudent operators of
similar facilities of comparable size and risk to the Facility; provided that
the Facility Lessee may not (except as permitted by Section 11.6) increase
deductibles or decrease coverage as compared to the amounts specified herein
without the written consent of the Owner Lessor and, so long as the Lien of the
Lease Indenture has not been terminated or discharged, the Lease Indenture
Trustee. Such liability insurance may be purchased either in a single limit or
in combination with a general and an excess policy.

         Section 11.3. Provisions with Respect to Insurance.

                  (a) Subject to Section 11.6, the Facility Lessee will place
the insurance maintained pursuant to this Section 11 with companies having an
A.M. Best rating of at least "A-" or a comparable rating by S&P or, if not so
rated, of comparable financial strength. All insurance policies required to be
maintained pursuant to Section 11.2 shall name the Owner Lessor, the Lessor
Manager, the Trust Company, the Owner Participant and, so long as the Lien of
the Lease Indenture shall not have been terminated or discharged, the Lease
Indenture Trustee as additional insureds, as their interests may appear. All
insurance policies required to be maintained pursuant to this Section 11 shall
also provide for at least 30 days' prior written notice (10 days for
non-payment) by the insurance carrier to the Owner Lessor, the Owner Participant
and, so long as the Lien of the Lease Indenture shall not have been terminated
or discharged, the Lease Indenture Trustee in the event of cancellation,
non-renewal, termination, expiration or material change. The Facility Lessee
will place the insurance required by this Section 11 with insurance companies
which agree to waive all claims for premiums from, and all subrogation rights
against, the Owner Lessor, the Owner Participant and the Lease Indenture
Trustee. All the insurance maintained pursuant to this Section 11.3 shall be
primary without right of contribution of any other insurance carried by or on
behalf of the Owner Lessor, the Owner Participant or the Lease Indenture Trustee
with respect to their respective interests in the Facility, and the Colstrip
Site.

                  (b) Subject to Section 11.6, the Facility Lessee will ensure
that the respective interests of the Owner Lessor, the Owner Participant and the
Lease Indenture Trustee shall not be invalidated by any act or neglect of the
Facility Lessee, or any breach or violation by the Facility Lessee of any
warranties, declarations or conditions contained in such policies or by the use
of the Facility for purposes more hazardous than permitted by such policies.
Additionally, the Facility Lessee will use its best efforts to provide that such
policies shall be endorsed to provide that, inasmuch as the policies are written
to cover more than one insured, all terms, conditions, insuring agreements and
endorsements, with the exception of limits of liability, shall operate in the
manner as if there were a separate policy covering each insured. The Facility
Lessee shall, at its own expense, make or cause to be made all proofs of loss
and take all other steps necessary to collect the proceeds of such insurance.

         Section 11.4. Reports.

                  (a) The Facility Lessee shall furnish the Owner Lessor, the
Owner Participant and, so long as the Lien of the Lease Indenture shall not have
been terminated or discharged, the Lease Indenture Trustee and the Pass Through
Trustee annually with a report of an independent

                                       20
<PAGE>   26
insurance broker or consultant (selected by the Facility Lessee and reasonably
acceptable to the Owner Lessor) identifying all insurance coverages in place and
certifying that (i) all premiums in respect of such policies are current and
(ii) that such coverage is in compliance with all insurance requirements set
forth in this Section 11.

                  (b) The Facility Lessee shall provide the Owner Lessor, the
Owner Participant and so long as the Lien of the Lease Indenture shall hot have
been terminated or discharged, the Lease Indenture Trustee written notice at
least thirty (30) days in advance of the effective date of any material
reduction in the amount or type of property insurance coverage or any reduction
in business interruption insurance. Such notice shall specify such changes and
be accompanied by a officer's certificate of PPL Montana stating that, as so
changed, the policies will continue to comply with the provisions of Sections
11.1 and 11.3.

                  (c) Within ten (10) business days prior to the expiration and
renewal of any insurance policy required to be maintained pursuant to this
Section 11 or as soon thereafter as reasonably practicable but in any event
within ten (10) business days after such expiration and renewal, the Facility
Lessee shall provide the Owner Lessor, the Owner Participant, and, so long as
the Lien of the Lease Indenture shall not have been terminated or discharged,
the Lease Indenture Trustee certificates from insurance brokers or carriers to
the effect that such policy is in effect and in the case of policies maintained
pursuant to Section 11.2, indicating their status as additional insureds.

         Section 11.5. Additional Insurance by Owner Lessor. At any time the
Owner Lessor (either directly or in the name of the Owner Participant), the
Owner Participant or the Lease Indenture Trustee may at its own expense and for
its own account carry insurance with respect to its interest in the Undivided
Interest; provided, that such insurance does not in any way interfere with the
Facility Lessee's ability to obtain insurance required to be maintained under
the Project Agreements or this Section 11. Any insurance payments received from
policies maintained by the Owner Lessor, the Owner Participant or the Lease
Indenture Trustee pursuant to the previous sentence shall be retained by the
Owner Lessor, the Owner Participant or the Lease Indenture Trustee, as the case
may be, without reducing or otherwise affecting the Facility Lessee's
obligations hereunder.

         Section 11.6. Waiver of Requirements.

                  (a) If any insurance required to be maintained by the Facility
Lessee pursuant to this Section 11 (including the limits or deductibles or any
other terms under policies for such insurance) ceases to be available on a
commercially reasonable basis, the Facility Lessee shall provide written notice
to the Owner Lessor and, so long as the Lien of the Lease Indenture shall not
have been terminated or discharged, the Lease Indenture Trustee accompanied by a
letter from the Facility Lessee's insurance broker stating that such insurance
is unavailable on a commercially reasonable basis. Such notice shall be given
not less than thirty (30) days prior to the scheduled date for renewal of any
such policy. Upon receipt of such notice by the Owner Lessor, the Owner Lessor
and the Facility Lessee shall immediately enter into good faith negotiations in
order to obtain an alternative to such insurance.

                                       21
<PAGE>   27
                  (b) In the event that the Owner Lessor and the Facility Lessee
cannot reach a resolution acceptable to both parties within ten (10) days, the
Owner Lessor and the Facility Lessee shall make arrangements for the formation
of an insurance panel consisting of the Facility Lessee's insurance advisor (or
broker), the Owner Lessor's insurance advisor (or broker) and an independent
insurance expert from a nationally recognized insurance brokerage firm, chosen
by the Facility Lessee and reasonably acceptable to the Owner Lessor. Such
independent expert shall conduct a separate review of the relevant insurance
requirements of this Section 11 and the market for such insurance at the time,
giving due consideration to the representations of both insurance advisors, and
upon conclusion of such review shall issue a written report stating whether such
insurance is available or unavailable on a commercially reasonable basis.

                  (c) If the insurance expert concludes that such insurance is
not available on a commercially reasonable basis, the insurance expert shall
provide a written recommendation (which shall include the amount and type of
insurance which is available upon a commercially reasonable basis) not less than
fifteen (15) days before the date for renewal of such insurance. The Facility
Lessee shall, prior to the expiration of the insurance then in effect, obtain
the insurance required by this Section 11 that is available on a commercially
reasonable basis. If the senior unsecured long-term rating of the Facility
Lessee shall be rated at least investment grade at the time of renewal, the
recommendation of the insurance expert shall be conclusive and binding upon the
Facility Lessee and the Facility Lessee shall, for the immediately succeeding
one (1) year policy period, only be required to carry the insurance required by
this Section 11 that the expert has certified is available on a commercially
reasonable basis.

                  (d) If the senior unsecured debt of the Facility Lessee is
below investment grade at such time of renewal and in the Owner Participant's
reasonable judgment, keeping the insurance coverage at the level that is
available on a commercially reasonable basis is reasonably likely to result in a
Material Adverse Effect, then the Facility Lessee shall (a) obtain the insurance
required by Section 11 whether or not available on a commercially reasonable
basis or (b) obtain the insurance that is available on a commercially reasonable
basis and provide collateral or credit support for the difference of a type and
in an amount satisfactory to the Owner Participant. For the purposes of this
Section 11.6, insurance will be considered "not available on a commercially
reasonable basis" if it is not obtainable or obtainable only at excessive costs
which are not justified in terms of the risk to be insured and is generally not
being carried by or applicable to projects or operations similar to the Facility
because of such excessive costs.

                  (e) All fees, costs and expenses associated with the insurance
panel (including the review by the insurance expert) shall be for the sole
account of the Facility Lessee.

         Section 11.7. Application of Insurance Proceeds.

                  (a) All proceeds of the insurance maintained pursuant to
Section 11.1 hereof and Section 11.1 of the Other Facility Leases up to
$25,000,000 on account of any damage to or destruction of the Facility and/or
Colstrip Unit 3 or any part thereof (in each case less the actual costs, fees
and expenses incurred in the collection thereof), shall, subject to Section
11.7(d), be paid to or retained by the Facility Lessee for application in repair
or replacement of the affected property. All proceeds of the insurance
maintained pursuant to Section 11.1 hereof and

                                       22
<PAGE>   28
Section 11.1 of the Other Facility Leases in excess of $25,000,000 on account of
such damage or destruction to the Facility and/or Colstrip Unit 3, shall to the
extent they relate to the Undivided Interest be paid to the Owner Lessor or, if
the Lien of the Lease Indenture shall not have been terminated or discharged,
the Lease Indenture Trustee and be applied and dealt with as set forth in this
Section 11.7.

                  (b) All such proceeds actually received on account of any such
damage or destruction other than in connection with an Event of Loss shall,
unless a Significant Lease Default or a Lease Event of Default shall have
occurred and be continuing, be paid over to the Facility Lessee or as it may
direct from time to time as restoration progresses, to pay (or reimburse the
Facility Lessee for) the cost of restoration, if the amount of such proceeds
received by the Lease Indenture Trustee or the Owner Lessor, together with such
additional amounts, if any, theretofore expended by the Facility Lessee out of
its own funds for such restoration, are sufficient to pay the estimated cost of
completing such restoration, but only upon receipt by the Owner Lessor and, so
long as the Lien of the Lease Indenture shall not have been terminated or
discharged, the Lease Indenture Trustee of a written application of the Facility
Lessee accompanied by an Officer's Certificate of the Facility Lessee setting
forth in reasonable detail the nature of such restoration, the actual cash
expenditures made to date for such restoration and the estimated cost to
complete such restoration and stating that no Significant Lease Default or Lease
Event of Default has occurred and is continuing.

                  (c) All such proceeds received or payable on account of an
Event of Loss shall, unless the Facility Lessee has elected to rebuild or
replace the affected Facility, be dealt with in accordance with Section 10.2(d).

                  (d) Notwithstanding the foregoing provisions of this Section
11 or Section 10, so long as a Significant Lease Default or Lease Event of
Default shall have occurred and be continuing, the proceeds of any insurance
required to be maintained pursuant to this Section 11 that would otherwise be
payable to or for the account of, or that would otherwise be retained by, the
Facility Lessee pursuant to this Section 11 or Section 10.2(d) will be held as
security for the obligations of the Facility Lessee under this Facility Lease by
the Owner Lessor or, so long as the Lien of the Lease Indenture shall not have
been terminated or discharged, the Lease Indenture Trustee and, at such time
thereafter as no Significant Lease Default or Lease Event of Default shall be
continuing, such amount shall be paid promptly to the Facility Lessee.

SECTION 12.       INSPECTION

         During the Facility Lease Term, each of the Owner Participant, the
Owner Lessor, and, so long as the Lien of the Lease Indenture shall not have
been terminated or discharged, the Lease Indenture Trustee and the Pass Through
Trustee and their representatives may, during normal business hours, on
reasonable notice to the Facility Lessee and at their own risk and expense
(except, at the expense but not risk, of the Facility Lessee when a Significant
Lease Default or a Lease Event of Default has occurred and is continuing),
inspect the Facility and the records with respect to the operations and
maintenance thereof, in the Facility Lessee's custody or to which the Facility
Lessee has access; provided, however, that so long as no Significant Lease
Default or Lease Event of Default shall have occurred and be continuing, each
such Person shall only be entitled to make one inspection in any twelve-month
period, provided, further, however, that any

                                       23
<PAGE>   29
such Person may make more than one inspection during the last twelve months of
the Facility Lease Term unless the Facility Lessee has exercised its option
under Section 15 to renew this Facility Lease beyond such twelve month period.
Any such inspection will not unreasonably interfere with the operation or
maintenance of the Facility or the conduct by the Facility Lessee of its
business and will be in accordance with the Facility Lessee's and the Operator's
safety and insurance programs. In no event shall the Owner Lessor, the Owner
Participant, the Lease Indenture Trustee or the Pass Through Trustee have any
duty or obligation to make any such inspection and such Persons shall not incur
any liability or obligation by reason of not making any such inspection.

SECTION 13.       TERMINATION OPTION FOR BURDENSOME EVENTS

         Section 13.1. Election to Terminate. On or after the occurrence of
either of the events specified below, the Facility Lessee shall have the right,
at its option, upon at least 30 days' prior written notice to the Owner Lessor,
the Owner Participant, and, so long as the Lien of the Lease Indenture shall not
have been terminated or discharged, the Lease Indenture Trustee and the Pass
Through Trustee, to terminate this Facility Lease in whole on the Termination
Date specified in such notice (which shall be a date occurring not more than 90
days after the date of such notice) if:

                  (a) as a result of a change in Applicable Law, it shall have
         become illegal for the Facility Lessee to continue this Facility Lease
         or for the Facility Lessee to make payments under this Facility Lease
         or the other Operative Documents, and the transactions contemplated by
         the Operative Documents cannot be restructured to comply with such
         change in law in a manner acceptable to the Facility Lessee, the Owner
         Participant, the Owner Lessor, and, so long as the Lien of the Lease
         Indenture shall not have been terminated or discharged, the Lease
         Indenture Trustee and the Pass Through Trustee; or

                  (b) one or more events outside the control of the Facility
         Lessee shall have occurred which will, or can reasonably be expected
         to, give rise to an obligation by the Facility Lessee to pay or
         indemnify in respect of the Tax Indemnity Agreement or Section 11.1 or
         11.2 of the Participation Agreement; provided, however, that (i) such
         indemnity obligation (and the underlying cost or Tax) can be avoided in
         whole or in part if this Facility Lease is terminated and the Owner
         Lessor sells the Owner Lessor's Interest and (ii) the amount of such
         avoided payments hereunder would exceed (on a present value basis,
         discounted at the Discount Rate, compounded on an annual basis to the
         date of the termination) three (3) percent of the Purchase Price for
         the Undivided Interest, and provided, further, that no such termination
         option shall exist if the applicable indemnitee shall waive its right
         to, or the Owner Participant shall arrange for payment of (without
         reimbursement by the Facility Lessee or any Affiliate thereof), amounts
         of indemnification payments under the Tax Indemnity Agreement or
         Section 11.1 or 11.2 of the Participation Agreement in excess of such
         amount as to cause such avoided payments, computed in accordance with
         the preceding proviso, not to exceed three percent of the Purchase
         Price.

                                       24
<PAGE>   30
No termination of this Facility Lease pursuant to this Section 13.1 shall become
effective unless the conditions set forth in Section 13.5 are satisfied. If the
Facility Lessee does not give notice of its exercise of the termination option
under this Section 13.1 within twelve months of the date the Facility Lessee
receives notice or Actual Knowledge of an event or condition described above,
the Facility Lessee will lose its right to terminate this Facility Lease
pursuant to this Section 13.1 as a result of such event or condition.

         Section 13.2. Solicitation of Offers; Payments Upon Termination. Upon
receipt of a termination notice from the Facility Lessee pursuant to Section
13.1, the Owner Lessor may, but shall be under no obligation to, sell the Owner
Lessor's Interest and, at the request of the Owner Lessor, the Facility Lessee
will, as non-exclusive agent for the Owner Lessor, use commercially reasonable
efforts to obtain cash bids for the Owner Lessor's Interest. In connection with
such termination, the Facility Lessee may, but shall be under no obligation to,
make an offer to purchase the Owner Lessor's Interest on the Termination Date
set forth in the termination notice for cash in an amount at least equal to the
Termination Value for the Undivided Interest on such Termination Date, on an "as
is", "where is" and "with all faults" basis without any representation, other
than by the Owner Lessor that the Owner Lessor's Interest is free of Owner
Lessor's Liens and a warranty of the Owner Participant as to the absence of
Owner Participant's Liens (any such offer by the Facility Lessee shall be a
"Qualifying Cash Bid"). If the Facility Lessee makes a Qualifying Cash Bid and
the Owner Lessor accepts such offer, the Facility Lessee shall pay the Owner
Lessor on the Termination Date (a) the amount of such Qualifying Cash Bid plus
(b) all amounts due and payable under Section 13.3 (but shall have no obligation
to pay Termination Value). If the Owner Lessor (x) rejects a Qualifying Cash Bid
from the Facility Lessee, (y) accepts an offer from a third party, or (z) elects
to retain the Owner Lessor's Interest, the Facility Lessee shall pay to the
Owner Lessor on the Termination Date all amounts due and payable under Section
13.3 (but shall have no obligation to pay Termination Value). Any transfer to a
third party shall be subject to the Project Agreements. If, within 10 days of
the Termination Date set forth in the notice of termination, the Owner Lessor
does not (1) receive a Qualifying Cash Bid from the Facility Lessee, (2) accept
an offer from a third party, or (3) elect to retain the Owner Lessor's Interest,
this Facility Lease shall continue, the Facility Lessee will lose its right to
terminate this Facility Lease for such burdensome event, and any and all rights
that the Owner Lessor had immediately prior to the receipt of the termination
notice referred to in Section 13.1 above (including any right to indemnification
which may have given rise to such burdensome termination option) shall remain in
full force and effect in all respects.

         Section 13.3. Procedure for Exercise of Termination Option. If the
Facility Lessee shall have exercised its option to terminate the Facility Lease
under Section 13.1, on the Termination Date specified in the Facility Lessee's
notice of such exercise, the Facility Lessee shall, subject to the last sentence
of Section 13.2, pay to the Owner Lessor (a) all amounts of Supplemental Lease
Rent (including all reasonable out-of-pocket costs and expenses of the Owner
Lessor, the Owner Participant, the Lease Indenture Trustee and the Pass Through
Trustee, all sales, use, value added and other Taxes required to be indemnified
by the Facility Lessee pursuant to Section 11.2 of the Participation Agreement
associated with the exercise of the termination option pursuant to this Section
13 and all indemnity amounts not obviated by the termination) due and payable on
or prior to the Termination Date, (b) any unpaid Periodic Lease Rent due before
such Termination Date, but shall not be required to pay Termination Value, and
(c) the Lessee Section 467 Loan Balance, if any, determined as of the relevant
Termination Date and the

                                       25
<PAGE>   31
Owner Lessor shall pay to the Facility Lessee the Lessor Section 467 Loan
Balance, if any, determined as of such Termination Date. The obligation to make
such payments shall be subject to the provisions of Section 3.3(d), and all Rent
payments under Section 13.2 and this Section 13.3 shall, to the extent required
by Section 3.6(a), be made to the Lease Indenture Trustee. Concurrently with the
payment of all sums specified in Section 13.2 and this Section 13.3 (i) Periodic
Lease Rent shall cease to accrue, (ii) the Facility Lessee shall cease to have
any liability to the Owner Lessor hereunder or under the other Operative
Documents, except for Supplemental Lease Rent and other obligations (including
those under Sections 11.1 and 11.2 of the Participation Agreement) surviving
pursuant to the express terms of any Operative Document, (iii) unless the
Facility Lessee assumes the Lessor Note pursuant to Section 13.4, the Owner
Lessor shall pay the outstanding principal and accrued interest on the Lessor
Note pursuant to Section 2.10(a) of the Lease Indenture, (iv) this Facility
Lease shall terminate, (v) the Owner Lessor shall, at the Facility Lessee's cost
and expense, execute and deliver to the Facility Lessee a release or termination
of this Facility Lease, (vi) in connection with any sale of Owner Lessor's
Interest pursuant to Section 13.2, the Owner Lessor shall transfer (by an
appropriate instrument of transfer in form and substance reasonably satisfactory
to the Owner Lessor and prepared by and at the expense of the Facility Lessee)
all of its right, title and interest in and to the Owner Lessor's Interest to
the purchaser pursuant to this Section 13.3 on an "as is", "where is" and "with
all faults" basis, without representations or warranties other than a warranty
as to the absence of Owner Lessor's Liens and a warranty of the Owner
Participant as to the absence of Owner Participant's Liens, and (vii) the Owner
Lessor shall discharge the Lien of the Lease Indenture and execute and deliver
appropriate releases and other documents or instruments necessary or desirable
to effect the foregoing, all to be prepared, filed and recorded (as appropriate)
at the cost and expense of the Facility Lessee. It shall be a condition of the
termination of this Facility Lease pursuant to this Section 13 that the Facility
Lessee shall pay all amounts it is obligated to pay under Section 13.2 and this
Section 13.3. If the Facility Lessee fails to consummate the termination option
under this Section 13 after giving notice of its intention to do so, (i) the
Facility Lease shall continue, (ii) such failure to consummate shall not
constitute a default under the Facility Lease, and (iii) unless such failure is
a consequence of a failure of the Owner Lessor or Owner Participant to fulfill
their obligations under this Section 13 or Section 3.3(d), the Facility Lessee
will lose its right to terminate this Facility Lease pursuant to this Section 13
as a result of such event or condition during the remainder of the Facility
Lease Term.

         Section 13.4. Assumption of the Lessor Note. Notwithstanding the
foregoing provisions of Section 13.2, (a) if the Facility Lessee submits a
Qualifying Cash Bid, and the Owner Lessor accepts such Bid, (b) the Facility
Lessee shall have executed and delivered an assumption agreement to assume in
full the Lessor Note as permitted by and in accordance with Section 2.10(b) of
the Lease Indenture, (c) all other conditions contained in such Section 2.10(b)
shall have been satisfied, and (d) no Significant Lease Default or Lease Event
of Default shall have occurred and be continuing after giving effect to such
assumption, then the obligation of the Facility Lessee to pay the purchase price
set forth in its Qualifying Cash Bid shall be reduced by the outstanding
principal amount of and accrued interest on the Lessor Note so assumed by the
Facility Lessee.

         Section 13.5. Certain Conditions to Termination. Anything to the
contrary in this Section 13 notwithstanding, the Facility Lessee and the Owner
Lessor agree for the benefit of the

                                       26
<PAGE>   32
Lease Indenture Trustee (without relieving the Owner Lessor of any liability
hereunder) that, so long as the Lien of the Lease Indenture shall not have been
terminated or discharged, no termination of this Facility Lease pursuant to this
Section 13 shall be effective and the Facility Lessee's rights and obligations
under this Facility Lease immediately prior to the electing to terminate this
Facility Lease pursuant to Section 13.1 shall remain in full force and effect in
all respects (regardless of whether the Owner Lessor shall elect to retain or
sell the Undivided Interest in connection with such proposed termination) unless
and until the Facility Lessee shall have assumed the Lessor Note pursuant to
Section 13.4 or the Owner Lessor shall have paid all outstanding principal and
accrued interest on the Lessor Note pursuant to Section 13.3 and all other
amounts due under the Lease Indenture on such proposed date of termination.

SECTION 14.       TERMINATION FOR OBSOLESCENCE

         Section 14.1. Termination. Upon at least six months' prior written
notice to the Owner Lessor, the Owner Participant and, so long as the Lien of
the Lease Indenture has not been terminated or discharged, the Lease Indenture
Trustee and the Pass Through Trustee (which notice shall be accompanied by a
certification by the board of managers of the Facility Lessee as to one or more
of the matters described in clause (a) and (b) below and an Officer's
Certificate setting forth in reasonable detail the basis on which it is
exercising this termination option), the Facility Lessee shall have the option,
so long as no Lease Event of Default shall have occurred and be continuing, to
terminate this Facility Lease in whole on any Termination Date occurring on or
after the fifth anniversary of the Closing Date (the date of termination
selected by the Facility Lessee being the "Obsolescence Termination Date") on
the terms and conditions set forth in this Section 14 if the Facility Lessee's
board of directors determines in good faith that:

                  (a) such Unit is economically or technologically obsolete, as
         a result of (i) a change in Applicable Law, regulation or tariff of
         general application, or (ii) imposition by FERC or any other
         Governmental Entity having or claiming jurisdiction over the Facility
         Lessee, or the Facility of any conditions or requirements including
         requiring significant capital improvement to such Unit or the Related
         Common Facilities; or

                  (b) such Unit is otherwise economically or technologically
         obsolete or such Unit Interest is surplus to the Facility Lessee's
         needs or is no longer useful in its trade or business, including, as a
         result of (x) a change in the markets for the wholesale purchase and/or
         sale of energy or (y) any material abrogation of power purchase or sale
         agreements.

No termination of this Facility Lease pursuant to this Section 14.1 shall become
effective unless (i) the Facility Lessee makes an identical election under the
Other Facility Lease to which the Facility is subject pursuant to Section 14.1
thereof, and (ii) the conditions set forth in Section 14.5 hereof and thereof
are satisfied.

         Section 14.2. Solicitation of Offers. If the Facility Lessee shall give
the Owner Lessor notice pursuant to Section 14.1 and the Owner Lessor shall not
have elected to retain the Owner Lessor's Interest with respect to such Unit
pursuant to Section 14.3 hereof, the Facility Lessee shall, as non-exclusive
agent for the Owner Lessor, use its commercially reasonable efforts to obtain
bids and, subject to Section 14.5 hereof and, subject to the Project Agreements,
sell such

                                       27
<PAGE>   33
Owner Lessor's Interest on the Obsolescence Termination Date, all of the
proceeds of which will be for the account of the Owner Lessor; provided that so
long as the Lien of the Lease Indenture shall not have been terminated or
discharged, the proceeds of such sale shall be paid directly to the Lease
Indenture Trustee; provided, further, that this sentence shall not limit the
Owner Lessor's obligation to pay the Lessor Section 467 Loan Balance, if any.
The Owner Lessor shall also have the right to obtain bids for the sale of such
Owner Lessor's Interest either directly or through agents other than the
Facility Lessee. At least 120 days prior to the Obsolescence Termination Date
the Facility Lessee shall certify to the Owner Lessor and the Lease Indenture
Trustee each bid or offer, the amount and terms thereof and the name and address
of the party (which shall not be the Facility Lessee, any Affiliate or any third
party with whom it or an Affiliate has an arrangement to use or operate such
Unit to generate power for the benefit of the Facility Lessee or such Affiliate
after the termination of this Facility Lease) submitting such bid or offer.

         Section 14.3. Right of Owner Lessor to Retain the Undivided InteresT.
The Owner Lessor may, upon payment of the Lessor Section 467 Loan Balance, if
any, payable to the Facility Lessee, irrevocably elect to retain, rather than
sell, the Owner Lessor's Interest by giving notice to the Facility Lessee at
least 90 days prior to the Obsolescence Termination Date. If the Owner Lessor
elects to retain such Owner Lessor's Interest pursuant to this Section 14.3, on
the Obsolescence Termination Date the Facility Lessee shall pay to the Owner
Lessor (a) all Supplemental Lease Rent (including all reasonable out-of-pocket
costs and expenses of the Owner Lessor, the Owner Participant, the Lease
Indenture Trustee and the Pass Through Trustee (excluding the fees and costs of
any broker unless engaged by the Facility Lessee on the Owner Lessor's behalf)
and all sales, use, value added and other Taxes required to be indemnified by
the Facility Lessee pursuant to Section 11.2 of the Participation Agreement
associated with the exercise of the termination option pursuant to this Section
14.3 due and payable on such Obsolescence Termination Date, (b) any unpaid
Periodic Lease Rent (or, in connection with a termination of a Renewal Lease
Term, Renewal Lease Rent) due before such Obsolescence Termination Date, but
shall not be required to pay Termination Value and (c) the Lessee Section 467
Loan Balance, if any, determined as of Obsolescence Termination Date. All Rent
payments under this Section 14.3 shall, to the extent required by Section
3.6(a), be made to the Lease Indenture Trustee. Concurrently with the payment of
all sums required to be paid pursuant to this Section 14.3, (i) Periodic Lease
Rent and Renewal Lease Rent shall cease to accrue, (ii) the Facility Lessee's
obligations under Sections 6, 7, 8, 11 and 12 shall terminate, (iii) the
Facility Lessee shall cease to have any other liability hereunder to the Owner
Lessor hereunder or under the other Operative Documents, except for Supplemental
Lease Rent and other obligations (including those under Sections 11.1 and 11.2
of the Participation Agreement) surviving pursuant to the express terms of any
Operative Document, (iv) the Owner Lessor shall pay the outstanding principal
and accrued interest on the Lessor Note pursuant to Section 2.10(a) of the Lease
Indenture, (v) if, and to the extent, the fair market value of the Undivided
Interest exceeds the Termination Value, the Owner Lessor shall pay a portion of
any premium due with respect to the Lessor Note up to but not exceeding such
excess, with the balance, if any, paid by the Facility Lessee, (vi) this
Facility Lease shall terminate, (vii) the Owner Lessor shall, at the Facility
Lessee's cost and expense, execute and deliver to the Facility Lessee a release
and termination of this Facility Lease, (viii) the Facility Lessee will return
the Owner Lessor's Interest to the Owner Lessor in accordance with Section 5.1,
and (ix) the Owner Lessor shall cause the Indenture Trustee to discharge the
Lien of the Lease Indenture and execute and deliver

                                       28
<PAGE>   34
appropriate releases and other documents or instruments necessary or desirable
to effect the foregoing, all to be prepaid, filed and recorded (as appropriate)
at the cost and expense of the Facility Lessee. It shall be a condition to the
termination of this Facility Lease pursuant to this Section 14.3, that the
Facility Lessee shall pay all amounts that it is obligated to pay under this
Section 14.3.

         Section 14.4. Procedure for Exercise of Termination Option. If the
Owner Lessor has not elected to retain the Owner Lessor's Interest in accordance
with Section 14.3 hereof, on the Obsolescence Termination Date the Owner Lessor
shall sell the Owner Lessor's Interest under this Section 14.4 hereof and
Section 9.1 of the Site Lease and Sublease to the bidder or bidders (which shall
not be the Facility Lessee, any Affiliate thereof or any third party with whom
it or an Affiliate has an arrangement to use or operate such Unit to generate
power for the benefit of the Facility Lessee or such Affiliate after the
termination of this Facility Lease), that shall have submitted the highest cash
bid or bids with respect to the Owner Lessor's Interest, and the Facility Lessee
shall certify to the Owner Lessor, the Owner Participant and, so long as the
Lien of the Lease Indenture shall not have been terminated or discharged, the
Lease Indenture Trustee and the Pass Through Trustee that such buyer is not the
Facility Lessee, any Affiliate thereof or any third party with whom it or an
Affiliate has an arrangement to use or operate such Unit to generate power for
the benefit of the Facility Lessee or such Affiliate after the termination of
this Facility Lease. On the Obsolescence Termination Date, the Facility Lessee
shall pay to the Owner Lessor (a) the excess, if any, of Termination Value
determined as of such Obsolescence Termination Date over the total sales price
of the Owner Lessor's Interest paid to or retained by the Owner Lessor, after
deducting from the sales price the expenses, if any, incurred by the Owner
Lessor and the Owner Participant in connection with such sale, plus (b) any
unpaid Periodic Lease Rent or Renewal Lease Rent due before such Obsolescence
Termination Date, plus (c) all amounts of Supplemental Lease Rent (including all
reasonable out-of-pocket costs and expenses of the Owner Lessor, the Owner
Participant, the Lease Indenture Trustee and the Pass Through Trustee (excluding
the fees and costs of any broker unless engaged by the Facility Lessee on the
Owner Lessor's behalf) and all sales, use, value added and other Taxes required
to be indemnified by the Facility Lessee pursuant to Section 11.2 of the
Participation Agreement associated with the exercise of the termination option
pursuant to this Section 14) due and payable on such Obsolescence Termination
Date, plus (d) the Lessee Section 467 Loan Balance, if any, determined as of the
Obsolescence Termination Date, plus (e) any premium due on the portion of the
Lessor Note being prepaid pursuant to this Section 14, provided, however, if the
total sales price of the Owner Lessor's Interest paid or retained by the Owner
Lessor exceeds the Termination Value as determined as of the Obsolescence
Termination Date, the Owner Lessor shall pay a portion of such premium up to but
not exceeding such excess, with the balance, if any, paid by the Facility Lessee
and the Owner Lessor shall pay to the Facility Lessee the Lessor Section 467
Loan Balance, if any, determined as of such Obsolescence Termination Date. The
obligations to make such payments shall be subject to the provisions of Section
3.3(d), and all Rent payments under this Section 14.4 shall, to the extent
required by Section 3.6(a), be made to the Lease Indenture Trustee. Concurrently
with the payment of all sums required to be paid pursuant to this Section 14.4,
(i) Periodic Lease Rent and Renewal Lease Rent shall cease to accrue, (ii) the
Facility Lessee's obligations under Sections 6, 7, 8, 11 and 12 shall terminate,
(iii) the Facility Lessee shall cease to have any other liability hereunder to
the Owner Lessor hereunder or under the other Operative Documents, except for
Supplemental Lease Rent and other obligations (including Sections 11.1 and 11.2
of the Participation Agreement) surviving

                                       29
<PAGE>   35
pursuant to the express terms of any Operative Document, (iv) the Owner Lessor
will pay the outstanding principal, premium, if any, payable by the Owner Lessor
hereunder and accrued interest on the Lessor Note pursuant to Section 2.10 of
the Lease Indenture, (v) this Facility Lease shall terminate, (vi) the Owner
Lessor shall, at the Facility Lessee's cost and expense, execute and deliver to
the Facility Lessee a release or termination of this Facility Lease, (vii) the
Owner Lessor will transfer (by an appropriate instrument of transfer in form and
substance reasonably satisfactory to the Owner Lessor and prepared and recorded
by and at the expense of the Facility Lessee) the Owner Lessor's Interest under
this Section 14.4, to the purchaser on an "as is", "where is" and "with all
faults" basis, without representations or warranties other than a warranty as to
the absence of Owner Lessor's Liens and a warranty from the Owner Participant as
to the absence of Owner Participant's Liens, and (viii) the Owner Lessor shall
execute and deliver appropriate releases and other documents or instruments
necessary or desirable to effect the foregoing, all to be prepaid, filed and
recorded (as appropriate) at the cost and expense of the Facility Lessee. Unless
the Owner Lessor shall have elected to retain the Owner Lessor's Interest
pursuant to Section 14.3 or the Owner Lessor with the consent of the Facility
Lessee shall have entered into a legally binding contract to sell the Owner
Lessor's Interest, the Facility Lessee may, at its election, revoke its notice
of termination on at least 30 days' prior notice to the Owner Lessor, the Owner
Participant and, so long as the Lien of the Lease Indenture shall not have been
terminated or discharged, the Lease Indenture Trustee and the Pass Through
Trustee in which event this Facility Lease shall continue; provided, however,
that the Facility Lessee shall not be permitted to re-initiate a notice to
terminate pursuant to Section 14.1 more than once in any five year period. The
Owner Lessor shall be under no duty to solicit bids, to inquire into the efforts
of the Facility Lessee to obtain bids or otherwise take any action in arranging
any such sale of the Owner Lessor's Interest other than, if the Owner Lessor has
not elected to retain the Owner Lessor's Interest, to transfer the Owner
Lessor's Interest in accordance with clause (vii) of this Section 14.4. It shall
be a condition of the Owner Lessor's obligation to consummate a sale of the
Owner Lessor's Interest that the Facility Lessee shall pay all amounts it is
obligated to pay under this Section 14.4. If no sale shall occur on the
Obsolescence Termination Date, the notice of termination shall be deemed revoked
and this Facility Lease shall continue in full force and effect in accordance
with its terms (without prejudice to the Facility Lessee's right to exercise its
rights under this Section 14).

         Section 14.5. Certain Conditions to Termination. Anything to the
contrary in this Section 14 notwithstanding, the Facility Lessee and the Owner
Lessor agree for the benefit of the Lease Indenture Trustee (without relieving
the Owner Lessor of any liability hereunder) that, so long as the Lien of the
Lease Indenture shall not have been terminated or discharged, no termination
pursuant to this Section 14 shall be effective and the Facility Lessee's rights
and obligations under this Facility Lease referred to in the applicable notice
of termination pursuant to Section 14.1 shall remain in full force and effect in
all respects (regardless of whether the Owner Lessor shall elect to retain or
sell the Owner Lessor's Interest in connection with such proposed termination)
unless and until the Owner Lessor shall have paid the outstanding principal and
accrued interest on the Lessor Note and the Owner Lessor and/or the Facility
Lessee shall have paid any Make-Whole Premium arising from a termination
pursuant to clause (b) of Section 14.1 to the extent provided in Section 14.3
and 14.4, as applicable) and all other amounts due under the Lease Indenture
with respect thereto shall have been paid.

                                       30
<PAGE>   36
                                                                  Exhibit 4.8(a)

SECTION 15.       LEASE RENEWAL

         Section 15.1. First Wintergreen Renewal Lease Term. Not earlier than 42
months prior to the expiration of the Basic Lease Term, unless a Significant
Lease Default or a Lease Event of Default shall have occurred and be continuing,
the Facility Lessee may deliver to the Owner Lessor notice (which notice may be
in addition to a notice of the Facility Lessee's tentative interest in electing
an FMV Renewal Lease Term under Section 15.3) of the Facility Lessee's tentative
interest in renewing this Facility Lease with respect to Undivided Interest for
a term (the "First Wintergreen Renewal Lease Term") commencing on the day
following the last day of the Basic Lease Term and ending on the earlier of (a)
the latest date as of which the estimated fair market value of the Undivided
Interest determined by an Independent Appraiser selected by the Facility Lessee
and reasonably acceptable to the Owner Lessor, subsequent to the Facility
Lessee's tentative election of the First Wintergreen Renewal Lease Term (but not
earlier than 36 months prior to the expiration of the Basic Lease Term), shall
equal or exceed 20% of the Purchase Price with respect to the Undivided Interest
(without taking into account inflation or deflation subsequent to the Closing
Date) and (b) the date as of which the sum of the number of years of the
proposed First Wintergreen Renewal Lease Term and the Basic Lease Term shall
equal 75% of the estimated economic useful life of the relevant Units and the
Colstrip Project as of the Closing Date, as determined by such Independent
Appraiser. Unless the Facility Lessee shall have irrevocably elected to renew
this Facility Lease for an FMV Renewal Lease Term under Section 15.3, and
provided that neither a Significant Lease Default or Lease Event of Default
shall have occurred and be continuing on such notice date or on the date of
expiration of the Basic Lease Term, on or prior to 18 months before the
expiration of the Basic Lease Term, the Facility Lessee may deliver to the Owner
Lessor a further notice irrevocably electing to renew this Facility Lease with
respect to the Undivided Interest for the First Wintergreen Renewal Lease Term
determined as aforesaid and the First Wintergreen Renewal Lease Term shall
thereupon take effect as provided herein.

         Section 15.2. Second Wintergreen Renewal Lease Term. Not earlier than
42 months prior to the expiration of the First Wintergreen Renewal Lease Term,
unless a Significant Lease Default or a Lease Event of Default shall have
occurred and be continuing, the Facility Lessee may deliver to the Owner Lessor
notice (which notice may be in addition to a notice of the Facility Lessee's
tentative interest in electing an FMV Renewal Lease Term under Section 15.3) of
the Facility Lessee's tentative interest in renewing this Facility Lease with
respect to Undivided Interest for a term (the "Second Wintergreen Renewal Lease
Term" and together with the First Wintergreen Renewal Lease Term, the
"Wintergreen Renewal Lease Terms") commencing on the day following the last day
of the First Wintergreen Renewal Lease Term and ending on the earlier of (a) the
latest date as of which the estimated fair market value of the Undivided
Interest determined, by an Independent Appraiser selected by the Facility Lessee
and reasonably acceptable to the Owner Lessor, subsequent to the Facility
Lessee's tentative election of the Second Wintergreen Renewal Lease Term (but
not earlier than 36 months prior to the expiration of the First Wintergreen
Renewal Lease Term), shall equal or exceed 20% of the Purchase Price with
respect to the Undivided Interest (without taking into account inflation or
deflation subsequent to the Closing Date) and (b) the date as of which the sum
of the number of years of the proposed Second Wintergreen Renewal Lease Term,
the First Wintergreen Renewal Lease Term and the Basic Lease Term shall equal
75% of the estimated economic useful life of the relevant Units and the Colstrip
Project as of the Closing Date, as determined by such

                                       31
<PAGE>   37

Independent Appraiser. Unless the Facility Lessee shall have irrevocably elected
to renew this Facility Lease for a FMV Renewal Lease Term under Section 15.3,
and provided that neither a Significant Lease Default nor a Lease Event of
Default shall have occurred and be continuing on such notice date or on the date
of expiration of the First Wintergreen Renewal Lease Term, on or prior to 18
months before the expiration of the First Wintergreen Renewal Lease Term, the
Facility Lessee may deliver to the Owner Lessor a further notice irrevocably
electing to renew this Facility Lease with respect to the Undivided Interest for
the Second Wintergreen Renewal Lease Term determined as aforesaid and the Second
Wintergreen Renewal Lease Term shall thereupon take effect as provided herein.

         Section 15.3. Fair Market Value Renewal Lease Terms. Not earlier than
42 months prior to the expiration of the Basic Lease Term, the First Wintergreen
Renewal Lease Term, the Second Wintergreen Renewal Lease Term, or any other
Renewal Lease Term, unless a Significant Lease Default or Lease Event of Default
shall have occurred and be continuing, the Facility Lessee may deliver to the
Owner Lessor notice (which notice may be in addition to a notice of the Facility
Lessee's tentative interest in electing the First Wintergreen Renewal Lease Term
or the Second Wintergreen Renewal Lease Term) of the Facility Lessee's tentative
interest in renewing this Facility Lease with respect to the Undivided Interest
for a term (each such term, a "FMV Renewal Lease Term") commencing on the day
following the last day of the Basic Lease Term or a Renewal Lease Term otherwise
expiring and extending for no less than two years and no more than five years;
provided that, unless such FMV Renewal Lease Term extends to the end of the
useful life of such Units, no such FMV Renewal Lease Term shall extend beyond
the date that is three (3) years prior to the end of the useful life of such
Units (as set forth in the most recent appraisal obtained pursuant to Section
4.1(o) of the Participation Agreement, Section 15.1 or 15.2 of this Facility
Lease or Section 2.3(a) or (b) of the Site Lease and Sublease). Unless the
Facility Lessee shall have irrevocably elected to renew this Facility Lease for
a Wintergreen Renewal Lease Term pursuant to Sections 15.1 or 15.2 (it being
understood that the exercise by the Facility Lessee of its right to renew this
Facility Lease at the end of the Basic Lease Term or at the end of the First
Wintergreen Renewal Lease Term pursuant to Sections 15.1 or 15.2 hereof,
respectively, shall not impair its right to renew this Facility Lease at any
time thereafter pursuant to this Section 15.3), and provided that neither a
Significant Lease Default nor a Lease Event of Default shall have occurred and
be continuing on any such notice date or on the date of expiration of the Basic
Lease Term or the Renewal Lease Term immediately preceding such FMV Renewal
Lease Term, as the case may be, on or prior to 18 months before the expiration
of the existing Basic Lease Term or the relevant Renewal Lease Term as the case
may be, the Facility Lessee may deliver to the Owner Lessor a further notice
irrevocably electing to renew this Facility Lease with respect to the Undivided
Interest for the FMV Renewal Lease Term tentatively elected as aforesaid and the
FMV Renewal Lease Term shall thereupon take effect as provided herein.

         Section 15.4. Renewal Lease Rent for the Renewal Lease Terms.

         (a) Renewal Lease Rent shall be paid on each January 2 and July 2
during each Renewal Lease Term. The installment of Renewal Lease Rent for the
Undivided Interest payable on each such Rent Payment Date during the Wintergreen
Renewal Lease Terms shall be determined as follows:

                                       32
<PAGE>   38

                  (i) for each year in the period commencing on the first day of
         the First Wintergreen Renewal Lease Term and ending on the earlier of
         (x) the last day of the last Wintergreen Renewal Lease Term elected by
         the Facility Lessee or (y) the date which is 5 years after the last day
         of the Basic Lease Term (such period being referred to as the "Initial
         Period") Renewal Lease Rent shall be equal to 80% of the average Basic
         Lease Rent for the Undivided Interest during the Basic Lease Term;

                  (ii) for each year in the period commencing on the day
         following the last day of the Initial Period and ending on the earlier
         of (A) the last day of the last Wintergreen Renewal Lease Term elected
         by the Facility Lessee or (B) the date which is 5 years after the last
         day of the Initial Period, Renewal Lease Rent shall be equal to 60% of
         the average Basic Lease Rent for the Undivided Interest during the
         Basic Lease Term; and

                  (iii) thereafter, Renewal Lease Rent shall be equal to the
         lesser of (i) the Fair Market Rental Value for the Undivided Interest,
         and (ii) 50% of the average Basic Lease Rent for the Undivided Interest
         during the Basic Lease Term.

         The average Basic Lease Rent during the Basic Lease Term for the
Undivided Interest shall be determined without regard to any amount attributable
to adjustments to Basic Lease Rent pursuant to clause (i) and, unless the
applicable Modifications were financed by an Additional Equity Investment,
clause (ii) of Section 3.5(a). Renewal Lease Rent for any FMV Renewal Lease Term
shall be determined in accordance with Section 15.4(b)

         (b) Renewal Lease Rent payable on each Rent Payment Date during any FMV
Renewal Lease Term for the Undivided Interest shall be equal to 105% of the Fair
Market Rental Value thereof determined at the commencement of such FMV Renewal
Lease Term; provided, however, that if, on or prior to the commencement of any
FMV Renewal Lease Term, the Owner Lessor and the Facility Lessee agree or, in
the absence of such agreement, if the Facility Lessee shall provide the Owner
Participant with an opinion of counsel reasonably satisfactory to the Owner
Participant (as to matters of form, substance and authorship) or with a private
letter ruling, in each case to the effect that the Renewal Lease Rent for a FMV
Renewal Lease Term can be set at the Fair Market Rental Value without resulting
in adverse Federal income tax consequences to the Owner Participant under
Section 467 of the Code, the Renewal Lease Rent for the Undivided Interest for
the remainder of any current and for any subsequent FMV Renewal Lease Term will
be equal to 100% of the Fair Market Rental Value of such Unit Interest.

         Section 15.5. Determination of Fair Market Rental Value. The Fair
Market Rental Value of the Undivided Interest as of the commencement of any
Renewal Lease Term shall be determined by agreement of the Owner Lessor and the
Facility Lessee within six months after receipt by the Owner Lessor of the
tentative notice from the Facility Lessee of its election to renew pursuant to
Section 15.1, 15.2 or 15.3 (but not more than 36 months before the commencement
of such Renewal Lease Term) or, if they shall fail to agree within such six
month period, shall be determined by an Independent Appraiser selected by the
Facility Lessee

                                       33
<PAGE>   39

and reasonably acceptable to the Owner Lessor. The appraiser's fees and expenses
shall be borne by the Facility Lessee.

         Section 15.6. Simultaneous Renewals.

         This Facility Lease may only be renewed in whole. In addition, if the
Owner Participant or any of its Affiliates is a party to any of the Other
Colstrip Lease Transactions, then the Facility Lessee shall make the same
election (to renew or not renew) under Sections 15.1, 15.2, and 15.3 of each of
the Other Facility Leases to which it is a party for such Other Colstrip Lease
Transactions to which the Owner Participant or any of its Affiliates is a party.

SECTION 16.       EVENTS OF DEFAULT

         The following events shall constitute a "Lease Event of Default"
hereunder (whether any such event shall be voluntary or involuntary or come
about or be effected by operation of law or pursuant to or in compliance with
any judgment, decree or order of any court or any order, rule or regulation of
any Governmental Entity):

                  (a) the Facility Lessee shall fail to make any payment of
         Periodic Lease Rent, Renewal Lease Rent, or Termination Value after the
         same shall have become due and such failure shall have continued (after
         application of the proceeds of any Qualifying Letter of Credit) for
         five (5) Business Days after the same shall become due; or

                  (b) the Facility Lessee shall fail to make any payment of
         Supplemental Lease Rent (other than Excepted Payments, unless the Owner
         Participant shall have declared a default with respect thereto, or
         Termination Value) after the same shall have become due and such
         failure shall have continued from a period of 30 days after receipt by
         the Facility Lessee of written notice of such default from the Owner
         Participant, the Owner Lessor, the Lease Indenture Trustee or the Pass
         Through Trustee; or

                  (c) the Facility Lessee shall fail to observe or perform its
         obligation to maintain (or cause to be maintained) insurance in the
         amounts and on the terms set forth in Section 11; or

                  (d) the Facility Lessee shall fail to perform or observe any
         covenant, obligation or agreement to be performed or observed by it
         under this Facility Lease or any other Operative Document (other than
         any covenant, obligation or agreement contained in the Tax Indemnity
         Agreement or any covenant, obligation or agreement referred to in
         clauses (a), (b), (c), (e) or (k) of this Section 16) in any material
         respect, which shall continue unremedied for 30 days after receipt by
         the Facility Lessee of written notice thereof from the Owner
         Participant, Owner Lessor, Lease Indenture Trustee or the Pass Through
         Trustee; provided, however, that if such condition cannot be remedied
         within such 30-day period, then the period within which to remedy such
         condition shall be extended up to an additional 180 days, so long as
         the Facility Lessee diligently pursues such remedy and such condition
         is reasonably capable of being remedied within such additional 180-day
         period; provided, further, that in the case of the Facility Lessee's
         obligation set forth in clause (a)(ii) of Section 7.1, if, to the
         extent and for so long as a test, challenge, appeal or proceeding shall
         be prosecuted in good faith by

                                       34
<PAGE>   40

         the Facility Lessee, the failure by the Facility Lessee to comply with
         such requirement shall not constitute a Lease Event of Default if such
         test, challenge, appeal or proceeding shall not involve any danger of
         (i) foreclosure, sale, forfeiture or loss of, or imposition of a lien
         on, any part of the Undivided Interest or the impairment of the use,
         operation or maintenance of the Facility in any material respect, or
         (ii) any criminal liability being incurred by, or any material adverse
         effect on the interests of, the Owner Participant, the Owner Lessor,
         the Lease Indenture Trustee or the Pass Through Trustee including,
         subjecting the Owner Participant or the Owner Lessor to regulation as a
         public utility under Applicable Law; and provided, further, that in the
         case of the Facility Lessee's obligation set forth in clause (a)(ii) of
         Section 7.1, if the noncompliance is not a type that can be immediately
         remedied, the failure to comply shall not be a Lease Event of Default
         if the Facility Lessee is taking all reasonable action to remedy such
         noncompliance and if, but only if, such noncompliance shall not involve
         any danger described in clause (i) or (ii) of the preceding proviso;
         and provided, further, such noncompliance, or such test, challenge,
         appeal or proceeding to review shall not extend beyond the date 36
         months prior to the scheduled expiration of the Basic Lease Term or any
         Renewal Lease Term then in effect or elected by the Facility Lessee; or

                  (e) to the extent such covenants are in effect, the Facility
         Lessee shall fail to perform or observe in any material respect the
         covenants set forth in Sections 5.2, 6.1, 6.2, 6.3, 7.1, 7.2, 15.2 or,
         to the extent such covenant relates to liens in respect of borrowed
         money, 6.4 of the Participation Agreement; or

                  (f) any representation or warranty made by the Facility Lessee
         in the Operative Documents (other than a Tax Representation) or in the
         certificate delivered by the Facility Lessee at the Closing pursuant to
         Section 4(g) of the Participation Agreement shall prove to have been
         incorrect in any material respect when made and continues to be
         material and unremedied for a period of 30 days after receipt by the
         Facility Lessee of written notice thereof; provided, however, that if
         such condition cannot be remedied within such 30-day period, then the
         period within which to remedy such condition shall be extended up to an
         additional 120 days, so long as the Facility Lessee diligently pursues
         such remedy and such condition is reasonably capable of being remedied
         within such additional 120-day period; or

                  (g) the Facility Lessee shall (i) commence a voluntary case or
         other proceeding seeking relief under Title 11 of the Bankruptcy Code
         or liquidation, reorganization or other relief with respect to itself
         or its debts under any bankruptcy, insolvency or other similar law now
         or hereafter in effect, or apply for or consent to the appointment of a
         trustee, receiver, liquidator, custodian or other similar official of
         it or any substantial part of its property, or (ii) consent to, or fail
         to controvert in a timely manner, any such relief or the appointment of
         or taking possession by any such official in any voluntary case or
         other proceeding commenced against it, or (iii) file an answer
         admitting the material allegations of a petition filed against it in
         any such proceeding, or (iv) make a general assignment for the benefit
         of creditors; or

                  (h) an involuntary case or other proceeding shall be commenced
         against the Facility Lessee seeking (i) liquidation, reorganization or
         other relief with respect to it or

                                       35
<PAGE>   41

         its debts under Title 11 of the Bankruptcy Code or any bankruptcy,
         insolvency or other similar law now or hereafter in effect, or (ii) the
         appointment of a trustee, receiver, liquidator, custodian or other
         similar official with respect to it or any substantial part of its
         property or (iii) the winding-up or liquidation of the Facility Lessee;
         and such involuntary case or other proceeding shall remain undismissed
         and unstayed for a period of 60 days; or

                  (i) so long as any of the Certificates are outstanding,
         default under any bond, debenture, note or other evidence of
         Indebtedness (but excluding Indebtedness arising under the Other
         Colstrip Lease Transactions or Non-Recourse Indebtedness) for money
         borrowed by the Facility Lessee under any mortgage, indenture or
         instrument under which there may be issued or by which there may be
         secured or evidenced any Indebtedness of the Facility Lessee, whether
         such indebtedness now exists or shall hereafter be created, which
         Indebtedness is in an aggregate principal amount exceeding $75,000,000
         and which default shall have resulted in such Indebtedness becoming or
         being declared due and payable prior to the date on which it would
         otherwise have become due and payable, without such Indebtedness having
         been discharged, or such acceleration having been rescinded or
         annulled; or

                  (j) so long as any of the Certificates are outstanding, and
         PPL Montana or any of its Affiliates is the Facility Lessee under this
         Facility Lease, the occurrence of a Change of Control; or

                  (k) the Facility Lessee shall fail (i) to cause a Qualifying
         Letter of Credit to be replaced, or reinstated to the full amount
         required, in accordance with Section 6.5(e) of the Participation
         Agreement within 90 days of any drawing thereon, or (ii) to perform or
         observe any of the other covenants in Section 6.5 of the Participation
         Agreement.

SECTION 17.       REMEDIES

         Section 17.1. Remedies for Lease Event of Default. Upon the occurrence
of any Lease Event of Default and at any time thereafter so long as the same
shall be continuing, the Owner Lessor may, at its option, declare this Facility
Lease to be in default by written notice to the Facility Lessee; provided that
upon the occurrence of a Lease Event of Default described in paragraph (g) or
(h) of Section 16, this Facility Lease shall automatically be deemed to be in
default without the need for giving any notice; and at any time thereafter, so
long as the Facility Lessee shall not have remedied all outstanding Lease Events
of Default, the Owner Lessor may do one or more of the following as the Owner
Lessor in its sole discretion shall elect, to the extent permitted by, and
subject to compliance with any mandatory requirements of, Applicable Law then in
effect:

                  (a) proceed by appropriate court action or actions, either at
         law or in equity, to enforce performance by the Facility Lessee, at the
         Facility Lessee's sole cost and expense, of the applicable covenants
         and terms of this Facility Lease or to recover damages for breach
         thereof;

                                       36
<PAGE>   42

                  (b) by notice in writing to the Facility Lessee, terminate
         this Facility Lease whereupon all right of the Facility Lessee to the
         possession and use under this Facility Lease of the Undivided Interest
         shall absolutely cease and terminate but the Facility Lessee shall
         remain liable as hereinafter provided; and thereupon, the Owner Lessor
         may demand that the Facility Lessee, and the Facility Lessee shall,
         upon written demand of the Owner Lessor and at the Facility Lessee's
         expense, forthwith return possession of the Undivided Interest to the
         Owner Lessor in the manner and condition required by, and otherwise in
         accordance with all of the provisions of Section 5, except those
         provisions relating to periods of notice; and the Owner Lessor may
         thenceforth hold, possess and enjoy the same free from any right of the
         Facility Lessee, or its successor or assigns, to use the Undivided
         Interest for any purpose whatever;

                  (c) sell the Owner Lessor's Interest at public or private
         sale, as the Owner Lessor may determine, free and clear of any rights
         of the Facility Lessee under this Facility Lease and without any duty
         to account to the Facility Lessee with respect to such sale or for the
         proceeds thereof (except to the extent required by paragraph (f) below
         if the Owner Lessor elects to exercise its rights under said paragraph
         and by Applicable Law), in which event the Facility Lessee's obligation
         to pay Periodic Lease Rent hereunder due for any periods subsequent to
         the date of such sale shall terminate (except to the extent that
         Periodic Lease Rent and Renewal Lease Rent is to be included in
         computations under paragraph (e) or (f) below if the Owner Lessor
         elects to exercise its rights under said paragraphs);

                  (d) hold, keep idle or lease to others the Owner Lessor's
         Interest as the Owner Lessor in its sole discretion may determine, free
         and clear of any rights of the Facility Lessee under this Facility
         Lease and without any duty to account to the Facility Lessee with
         respect to such action or inaction or for any proceeds with respect
         thereto, except that the Facility Lessee's obligation to pay Periodic
         Lease Rent and Renewal Lease Rent due for any periods subsequent to the
         date upon which the Facility Lessee shall have been deprived of
         possession and use of the Undivided Interest pursuant to this Section
         17 shall be reduced by the net proceeds, if any, received by the Owner
         Lessor from leasing the Undivided Interest to any Person other than the
         Facility Lessee;

                  (e) whether or not the Owner Lessor shall have exercised, or
         shall thereafter at any time exercise, any of its rights under
         paragraph (b) above with respect to the Undivided Interest, the Owner
         Lessor, by written notice to the Facility Lessee specifying a
         Termination Date that shall be not earlier than 10 days after the date
         of such notice, may demand that the Facility Lessee pay to the Owner
         Lessor, and the Facility Lessee shall pay to the Owner Lessor, on the
         Termination Date specified in such notice, any unpaid Periodic Lease
         Rent and Renewal Lease Rent due before such Termination Date, any
         Supplemental Lease Rent due and payable as of the payment date
         specified in such notice, the Lessee Section 467 Loan Balance, if any,
         computed as of the Termination Date, plus as liquidated damages for
         loss of a bargain and not as a penalty (in lieu of the Periodic Lease
         Rent and Renewal Lease Rent due after the Termination Date specified in
         such notice), (i) an amount equal to the excess, if any, of the
         Termination Value for the Undivided Interest computed as of the
         Termination Date specified in such notice over the Fair Market Sales
         Value of the Owner Lessor's Interest as of the Termination Date

                                       37
<PAGE>   43

         specified in such notice, or (ii) an amount equal to the excess, if
         any, of Termination Value for the Undivided Interest computed as of the
         Termination Date specified in such notice over the Fair Market Rental
         Value of the Owner Lessor's Interest until the end of the Basic Lease
         Term or the then current Renewal Lease Term, after discounting such
         Fair Market Rental Value semiannually to present value as of the
         Termination Date specified in such notice at a rate equal to the Lease
         Debt Rate, and upon payment of such excess amount under either clause
         (i) or (ii) of this paragraph (e), this Facility Lease, and the
         Facility Lessee's obligation to pay Periodic Lease Rent hereunder due
         for any periods subsequent to the date of such payment shall terminate;

                  (f) if the Owner Lessor shall have sold the Owner Lessor's
         Interest pursuant to paragraph (c) above, the Owner Lessor may, if it
         shall so elect, demand that the Facility Lessee pay to the Owner
         Lessor, and the Facility Lessee shall pay to the Owner Lessor, as
         liquidated damages for loss of a bargain and not as a penalty (in lieu
         of the Periodic Lease Rent and Renewal Lease Rent due for any periods
         subsequent to the date of such sale), an amount equal to (i) any unpaid
         Periodic Lease Rent and Renewal Lease Rent due before the date of such
         sale and, (ii) if that date is not a Termination Date, the daily
         equivalent of Periodic Lease Rent or Renewal Lease Rent for the period
         from the preceding Termination Date to the date of such sale, plus
         (iii) the amount, if any, by which the Termination Value for the
         Undivided Interest computed as of the Termination Date next preceding
         the date of such sale or, if such sale occurs on a Rent Payment Date or
         a Termination Date then computed as of such date, exceeds the net
         proceeds of such sale, plus (iv) the Lessee Section 467 Loan Balance,
         if any, computed as of such date or if that date is not a Termination
         Date, as of the Termination Date next preceding the date of such sale
         and, upon payment of such amount, this Facility Lease and the Facility
         Lessee's obligation to pay Periodic Lease Rent and Renewal Lease Rent
         for any periods subsequent to the date of such payment shall terminate;

                  (g) apply any amounts which are held by the Owner Lessor or
         the Lease Indenture Trustee under Section 10.2(d) or 11.7 as security
         for the Facility Lessee's obligations hereunder against any amounts
         owed by the Facility Lessee hereunder or under any other Operative
         Document; or

                  (h) exercise its rights under any Qualifying Letter of Credit
         and apply the proceeds thereof against any amounts owed by the Facility
         Lessee hereunder or under any other Operative Document.

         In addition, the Facility Lessee shall be liable, except as otherwise
provided above, for (i) any and all unpaid Periodic Lease Rent and Renewal Lease
Rent due hereunder before or during the exercise of any of the foregoing
remedies, (ii) in the case of a Lease Event of Default described in Section
16(j), any Change of Control Premium payable under Section 4.2(a) of the Lease
Indenture, and (iii) on an After-Tax Basis, for legal fees and other costs and
expenses incurred by reason of the occurrence of any Lease Event of Default or
the exercise of the Owner Lessor's remedies with respect thereto, including the
repayment in full of any costs and expenses necessary to be expended in
connection with the return of the Undivided Interest in accordance with Section
5 hereof, including, any costs and expenses incurred by the Owner Lessor, the
Owner Participant, the Lease Indenture Trustee and the Pass Through Trustee in
connection with

                                       38
<PAGE>   44

retaking constructive possession of, or in repairing, such Undivided Interest in
order to cause it to be in compliance with all maintenance standards imposed by
this Facility Lease.

         Upon termination of this Facility Lease pursuant to clause (b) or an
election by the Owner Lessor to receive liquidated damages under clauses (e) or
(f), then on the Applicable Date the Facility Lessee shall (without duplication
of the amounts paid under clause (e) or (f) above) pay to the Owner Lessor the
Lessee Section 467 Loan Balance calculated as of the Applicable Date or if the
Applicable Date is not a Termination Date, as of the next preceding Termination
Date, and the Owner Lessor shall pay to the Facility Lessee the Lessor Section
467 Loan Balance calculated as of the Applicable Date, or if the Applicable Date
is not a Termination Date, the Termination Date, next preceding the Applicable
Date. The Applicable Date shall be the earlier to occur of (i) the date this
Facility Lease is terminated pursuant to clause (b), (ii) the Termination Date
specified in any notice pursuant to clause (e), or (iii) the date of any sale
pursuant to clause (e). The obligation to make such payments shall be subject to
the provisions of Section 3.3(d), and all payments of Rent under this Section
10.2(a) shall, to the extent required by Section 3.6(a), be made to the Lease
Indenture Trustee.

         Section 17.2. Cumulative Remedies. The remedies in this Facility Lease
provided in favor of the Owner Lessor shall not be deemed exclusive, but shall
be cumulative and shall be in addition to all other remedies in its favor
existing at law or in equity; and the exercise or beginning of exercise by the
Owner Lessor of any one or more of such remedies shall not, except as
specifically provided in this Section 17, preclude the simultaneous or later
exercise by the Owner Lessor of any or all of such other remedies. To the extent
permitted by Applicable Law, the Facility Lessee hereby waives any rights now or
hereafter conferred by statute or otherwise which may require the Owner Lessor
to sell, lease or otherwise use the Undivided Interest or any Component thereof
in mitigation of the Owner Lessor's damages as set forth in this Section 17 or
which may otherwise limit or modify any of the Owner Lessor's rights and
remedies in this Section 17.

         Section 17.3. No Delay or Omission to be Construed as Waiver. No delay
or omission to exercise any right, power or remedy accruing to the Owner Lessor
upon any breach or default by the Facility Lessee under this Facility Lease
shall impair any such right, power or remedy of the Owner Lessor, nor shall any
such delay or omission be construed as a waiver of any breach or default, or of
any similar breach or default hereafter occurring; nor shall any waiver of a
single breach or default be deemed a waiver of any subsequent breach or default.

         Section 17.4. Significant Lease Default; Drawings Under Qualifying
Letter of Credit. Notwithstanding anything herein to the contrary and without
limiting the Owner Lessor's rights to draw upon any Qualified Letter of Credit
under Section 17.1(h), upon the occurrence and during the continuance of a
Significant Lease Default of the type described in clause (i) of the definition
of Significant Lease Default, the Owner Lessor shall have the right to draw upon
any Qualifying Letter of Credit to pay any portion of Periodic Lease Rent or
Termination Value which was not paid when due.

                                       39
<PAGE>   45

SECTION 18.       SECURITY INTEREST AND INVESTMENT OF SECURITY FUNDS.

         Any moneys received by the Owner Lessor or the Lease Indenture Trustee
pursuant to Section 10.2(d) or 11.7 shall, until paid to the Facility Lessee in
accordance with such Sections, be held by the Owner Lessor or the Lease
Indenture Trustee, as the case may be, as security for the Facility Lessee's
obligations under this Facility Lease and be invested in Permitted Instruments
by the Owner Lessor or the Lease Indenture Trustee, as the case may be, at the
sole risk of the Facility Lessee, from time to time as directed in writing by
the Facility Lessee if such instruments are reasonably available for purchase.
Any gain (including interest received) realized as the result of any such
Permitted Instrument (net of any fees, commissions, taxes and other expenses, if
any, incurred in connection with such Permitted Instrument) shall be applied or
remitted to the Facility Lessee in the same manner as the principal invested.

SECTION 19.       FACILITY LESSEE'S RIGHT TO SUBLEASE

         The Facility Lessee shall have the right to sublease the Undivided
Interest without the consent of the Owner Lessor, the Owner Participant, the
Lease Indenture Trustee or the Pass Through Trustee under the following
conditions:

                  (a) the sublessee (i) is a solvent corporation, partnership,
         business trust, limited liability company or other person or entity not
         subject to bankruptcy proceedings, (ii) is not involved in material
         litigation with the Owner Participant, and (iii) is, or its operating
         and maintenance obligations under the sublease are guaranteed by, or
         such obligations are contracted to be performed by, an experienced,
         reputable operator of coal-fired electric generating assets;

                  (b) the Owner Lessor, the Owner Participant, and so long as
         the Lien of the Lease Indenture shall not have been terminated or
         discharged, the Lease Indenture Trustee and the Pass Through Trustee
         shall have received an opinion of counsel, which opinion and counsel
         shall be reasonably acceptable to each such recipient, to the effect
         that all regulatory approvals required to enter into the sublease have
         been obtained;

                  (c) the sublease does not extend beyond the scheduled
         expiration of the applicable Basic Lease Term or any Renewal Lease Term
         then in effect or elected by the Facility Lessee (and may be terminated
         upon early termination of this Facility Lease) and is expressly
         subordinated to this Facility Lease;

                  (d) all terms and conditions of this Facility Lease and the
         other Operative Documents remain in effect and the Facility Lessee
         remains fully and primarily liable for its obligations under this
         Facility Lease and the other Operative Documents;

                  (e) no Significant Lease Default or Lease Event of Default
         under this Facility Lease shall have occurred and be continuing;

                  (f) the sublease prohibits further assignment or subletting;

                  (g) the sublease requires the sublessee to operate and
         maintain the Facility in a manner consistent with this Facility Lease;

                                       40

<PAGE>   46

                  (h) the sublease does not cause the property to become
         "tax-exempt use property" within the meaning of Section 168(h) of the
         Code (unless the Facility Lessee shall make a payment to the Owner
         Participant contemporaneously with the execution of the sublease that
         in the reasonable judgement of the Owner Participant compensates such
         Owner Participant for the adverse tax consequences resulting from the
         classification of the property as "tax-exempt use property"); and

                  (i) so long as the Lien of the Lease Indenture shall not have
         been terminated or discharged, the terms of the sublease do not result
         in any prepayment of Periodic Lease Rent or any lump sum or advance
         payments to the Facility Lessee or any of its Affiliates in excess of
         $1,000,000 in the aggregate.

         As a condition precedent to such sublease, the Facility Lessee shall
provide the Owner Lessor, the Owner Participant, and, so long as the Lien of the
Lease Indenture shall not have been terminated or discharged, the Lease
Indenture Trustee with all documentation in respect of such sublease and an
opinion of counsel to the effect that such sublease complies with the provisions
of this Section 19 (such documentation, counsel and opinion to be reasonably
satisfactory to such recipients). The Facility Lessee shall pay, on an After-Tax
Basis, all reasonable documented out-of-pocket expenses of the Owner Lessor, the
Owner Participant, the Lease Indenture Trustee and the Pass Through Trustee in
connection with such sublease.

SECTION 20.       OWNER LESSOR'S RIGHT TO PERFORM

         If the Facility Lessee fails to make any payment required to be made by
it hereunder or fails to perform or comply with any of its other agreements
contained herein after notice to the Facility Lessee and failure of the Facility
Lessee to so perform or comply within 10 days thereafter, the Owner Lessor or
the Owner Participant may itself make such payment or perform or comply with
such agreement in a reasonable manner, but shall not be obligated hereunder to
do so, and the amount of such payment and of the reasonable expenses of the
Owner Lessor or the Owner Participant incurred in connection with such payment
or the performance of or compliance with such agreement, as the case may be,
together with interest thereon at the Overdue Rate, to the extent permitted by
Applicable Law, shall be deemed to be Supplemental Lease Rent, payable by the
Facility Lessee to the Owner Lessor on demand.

SECTION 21.       SECURITY FOR OWNER LESSOR'S OBLIGATION TO THE LEASE INDENTURE
                  TRUSTEE

         In order to secure the Lessor Note, the Owner Lessor will assign and
grant a Lien to the Lease Indenture Trustee in and to all of the Owner Lessor's
right, title and interest in, to and under this Facility Lease, and grant a
security interest in favor of the Lease Indenture Trustee in all of the Owner
Lessor's right, title and interest in and to the Undivided Interest (other than
Excepted Payments and Excepted Rights). The Facility Lessee hereby consents to
such assignment and to the creation of such Lien and security interest and
acknowledges receipt of copies of the Lease Indenture, it being understood that
such consent shall not affect any requirement or the absence of any requirement
for any consent of the Facility Lessee under any other circumstances. Unless and
until the Facility Lessee shall have received written notice from the Lease
Indenture Trustee that the Lien of the Lease Indenture has been fully
terminated, the

                                       41
<PAGE>   47

Lease Indenture Trustee shall have the right to exercise the rights of the Owner
Lessor under this Facility Lease to the extent set forth in and subject in each
case to the exceptions set forth in the Lease Indenture. TO THE EXTENT, IF ANY,
THAT THIS FACILITY LEASE CONSTITUTES CHATTEL PAPER (AS SUCH TERM IS DEFINED IN
THE UNIFORM COMMERCIAL CODE AS IN EFFECT IN ANY APPLICABLE JURISDICTION), NO
SECURITY INTEREST IN THIS FACILITY LEASE MAY BE CREATED THROUGH THE TRANSFER OR
POSSESSION OF ANY COUNTERPART HEREOF OTHER THAN THE ORIGINAL COUNTERPART, WHICH
SHALL BE IDENTIFIED AS THE COUNTERPART CONTAINING THE RECEIPT THEREFOR EXECUTED
BY THE LEASE INDENTURE TRUSTEE ON THE SIGNATURE PAGE THEREOF.

SECTION 22.       WAIVER OF RIGHT TO PARTITION

         So long as the Facility or any part thereof as originally constructed,
reconstructed or added to is used or useful for the generation of electrical
power and energy, or to the end of the period permitted by Applicable Law,
whichever first occurs, the Owner Lessor waives its right to partition whether
by partition in kind or sale and division of the proceeds thereof, and agrees
that it will not resort to any action at law or in equity to partition and
further waives the benefit of all laws that may now or hereafter authorize such
partition of the properties comprising the Facilities. It is agreed that this
covenant shall be deemed to run with the land. All instruments of conveyance
which effect, evidence or vest the ownership interest of the Owner Lessor in the
Facility shall contain this waiver of right to partition.

SECTION 23.       MISCELLANEOUS

         Section 23.1. Amendments and Waivers. No term, covenant, agreement or
condition of this Facility Lease may be terminated, amended or compliance
therewith waived (either generally or in a particular instance, retroactively or
prospectively) except by an instrument or instruments in writing executed by
each party hereto.

         Section 23.2. Notices. Unless otherwise expressly specified or
permitted by the terms hereof, all communications and notices provided for
herein to a party hereto shall be in writing or by a telecommunications device
capable of creating a written record, and any such notice shall become effective
(a) upon personal delivery thereof, including by overnight mail or courier
service, (b) in the case of notice by United States mail, certified or
registered, postage prepaid, return receipt requested, upon receipt thereof, or
(c) in the case of notice by such a telecommunications device, upon transmission
thereof, provided such transmission is promptly confirmed by either of the
methods set forth in clauses (a) and (b) above, in each case addressed to such
party and copy party at its address set forth below or at such other address as
such party or copy party may from time to time designate by written notice to
the other party:

                                       42
<PAGE>   48

         If to the Owner Lessor:

                  Montana OL4 LLC
                  c/o Wilmington Trust Company
                  Rodney Square North
                  1100 North Market Street
                  Wilmington, DE 19890-0001
                  Telephone No.: 302-651-1000
                  Facsimile No.: 302-651-8882
                  Attention: Corporate Trust Administration

         with a copy to the Owner Participant:

                  Montana OP4 LLC
                  c/o Bell Atlantic Credit Corporation
                  245 Park Avenue, 40th Floor
                  New York, New York 10167
                  Telephone No.: 212-557-4799
                  Facsimile No.: 212-557-4569
                  Attention: Asset Administrator

         and to the Lease Indenture Trustee:

                  The Chase Manhattan Bank
                  Capital Markets Fiduciary Services
                  450 West 33rd Street, 15th Floor
                  New York, New York 10001-2697
                  Telephone No.: (212) 946-7557
                  Facsimile No.: (212) 946-8177/8
                  Attention: Annette M. Marsula

         and to the Pass Through Trustee:

                  The Chase Manhattan Bank
                  Capital Markets Fiduciary Services
                  450 West 33rd Street, 15th Floor
                  New York, New York 10001-2697
                  Telephone No.: (212) 946-7557
                  Facsimile No.: (212) 946-8177/8
                  Attention: Annette M. Marsula

                                       43
<PAGE>   49

         If to the Facility Lessee:

                  PPL Montana, LLC
                  303 North Broadway, Suite 400
                  Billings, MT 59101
                  Telephone No.:  (406) 869-5100
                  Facsimile No. :  (406) 869-5149
                  Attention: Vice President and General Counsel

         Section 23.3. Survival. Except for the provisions of Sections 3.3(d),
3.4, 3.6, 5, 9 and 17, which shall survive, the warranties and covenants made by
each party hereto shall not survive the expiration or termination of this
Facility Lease in accordance with its terms.

         Section 23.4. Successors and Assigns.

         (a) This Facility Lease shall be binding upon and shall inure to the
benefit of, and shall be enforceable by, the parties hereto and their respective
successors and assigns as permitted by and in accordance with the terms hereof.

         (b) Except as expressly provided herein or in the other Operative
Documents, neither party hereto may assign its interests or transfer its
obligations herein without the consent of the other party hereto.

         Section 23.5. "True Lease". This Facility Lease shall constitute an
agreement of lease and nothing herein shall be construed as conveying to the
Facility Lessee any right, title or interest in or to the Undivided Interest
except as lessee only.

         Section 23.6. Business Day. Notwithstanding anything herein to the
contrary, if the date on which any payment or performance is to be made pursuant
to this Facility Lease is not a Business Day, the payment otherwise payable on
such date shall be payable on the next succeeding Business Day with the same
force and effect as if made on such scheduled date and (provided such payment is
made on such succeeding Business Day) no interest shall accrue on the amount of
such payment from and after such scheduled date to the time of such payment on
such next succeeding Business Day.

         Section 23.7. Governing Law. This Facility Lease (other than Section
2.2) shall be in all respects governed by and construed in accordance with the
laws of the State of New York, including all matters of construction, validity
and performance (without giving effect to the conflicts of laws provisions
thereof, other than New York General Obligations Law Section 5-1401), except to
the extent the laws of the State of Montana are mandatorily applicable under the
laws of the State of Montana. Section 2.2 of this Facility Lease shall be
governed by and construed in accordance with the laws of the State of Montana
(without giving effect to the conflicts of laws provisions thereof).

         Section 23.8. Severability. Any provision of this Facility Lease that
is prohibited or unenforceable in any jurisdiction shall, as to such
jurisdiction, be ineffective to the extent of such prohibition or
unenforceability without invalidating the remaining provisions hereof, and any

                                       44
<PAGE>   50

such prohibition or unenforceability in any jurisdiction shall not invalidate or
render unenforceable such provision in any other jurisdiction.

         Section 23.9. Counterparts. This Facility Lease may be executed by the
parties hereto in separate counterparts, each of which, subject to Section 21,
when so executed and delivered shall be an original, but all such counterparts
shall together constitute but one and the same instrument.

         Section 23.10. Headings and Table of Contents. The headings of the
sections of this Facility Lease and the Table of Contents are inserted for
purposes of convenience only and shall not be construed to affect the meaning or
construction of any of the provisions hereof.

         Section 23.11. Further Assurances. Each party hereto will promptly and
duly execute and deliver such further documents and assurances for and take such
further action reasonably requested by the other party, all as may be reasonably
necessary to carry out more effectively the intent and purpose of this Facility
Lease.

         Section 23.12. Effectiveness. This Facility Lease has been dated as of
the date first above written for convenience only. This Facility Lease shall be
effective on July 20, 2000, the date of execution and delivery by the Facility
Lessee and the Owner Lessor.

         Section 23.13. Limitation of Liability. It is expressly understood and
agreed by the parties hereto that (a) this Facility Lease is executed and
delivered by Wilmington Trust Company ("Wilmington"), not individually or
personally but solely as manager of the Owner Lessor under the LLC Agreement, in
the exercise of the powers and authority conferred and vested in it pursuant
thereto, (b) each of the representations, undertakings and agreements herein
made on the part of the Owner Lessor is made and intended not as personal
representations, undertakings and agreements by Wilmington but is made and
intended for the purpose for binding only the Owner Lessor, (c) nothing herein
contained shall be construed as creating any liability on Wilmington
individually or personally, to perform any covenant either expressed or implied
contained herein, all such liability, if any, being expressly waived by the
parties hereto or by any Person claiming by, through or under the parties hereto
and (d) under no circumstances shall Wilmington, be personally liable for the
payment of any indebtedness or expenses of the Owner Lessor or be liable for the
breach or failure of any obligation, representation, warranty or covenant made
or undertaken by the Owner Lessor under this Facility Lease.

         Section 23.14. Measuring Life. If and to the extent that any of the
rights and privileges granted under this Facility Lease, would, in the absence
of the limitation imposed by this sentence, be invalid or unenforceable as being
in violation of the rule against perpetuities or any other rule or law relating
to the vesting of interests in property or the suspension of the power of
alienation of property, then it is agreed that notwithstanding any other
provision of this Facility Lease, such options, rights and privileges, subject
to the respective conditions hereof governing the exercise of such options,
rights and privileges, will be exercisable only during (a) the longer of (i) a
period which will end twenty-one (21) years after the death of the last survivor
of the descendants living on the date of the execution of this Facility Lease of
the following Presidents of the United States: Franklin D. Roosevelt, Harry S.
Truman, Dwight D. Eisenhower, John F. Kennedy, Lyndon B. Johnson, Richard M.
Nixon, Gerald R. Ford, James E. Carter, Ronald W.

                                       45
<PAGE>   51

Reagan, George H.W. Bush and William J. Clinton or (ii) the period provided
under the Uniform Statutory Rule Against Perpetuities or (b) the specific
applicable period of time expressed in this Facility Lease, whichever of (a) and
(b) is shorter.

                                       46
<PAGE>   52
         IN WITNESS WHEREOF, the Owner Lessor and the Facility Lessee have
caused this Facility Lease to be duly executed and delivered under seal by their
respective officers thereunto duly authorized.

                          MONTANA OL4 LLC

                          By:  Wilmington Trust Company, not in its individual
                               capacity but solely as Lessor Manager

                          By:  /s/ James P. Lawler
                               -------------------------------------------------
                               Name:   James P. Lawler
                               Title:  Vice President

                          PPL MONTANA, LLC

                          By:  /s/ Paul A. Farr
                               -------------------------------------------------
                               Name:   Paul A. Farr
                               Title:  Vice President
<PAGE>   53

*Receipt of the original counterpart of the foregoing Facility Lease is hereby
acknowledged on this ____ day of July, 2000.

                          THE CHASE MANHATTAN BANK,
                          as Lease Indenture Trustee

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

-------------
* This acknowledgment executed in the original counterpart only.
<PAGE>   54
                                                                  Exhibit 4.8(a)

                                                               TO FACILITY LEASE

                         PERIODIC LEASE RENT PERCENTAGES

<TABLE>
<CAPTION>
 RENT PAYMENT DATES                          PERIODIC LEASE RENT PERCENTAGE
<S>                                          <C>
 Oct  2 2000                                                   0.000000000%
 Jan  2 2001                                                   5.348585366%
 Jul  2 2001                                                   5.188447202%
 Jan  2 2002                                                   3.623064993%
 Jul  2 2002                                                   8.378365359%
 Jan  2 2003                                                   3.411390739%
 Jul  2 2003                                                   8.041131021%
 Jan  2 2004                                                   3.205308004%
 Jul  2 2004                                                   7.407178071%
 Jan  2 2005                                                   3.018269002%
 Jul  2 2005                                                   6.270394045%
 Jan  2 2006                                                   2.873508394%
 Jul  2 2006                                                   6.375861578%
 Jan  2 2007                                                   2.717608178%
 Jul  2 2007                                                   6.019458787%
 Jan  2 2008                                                   2.570632677%
 Jul  2 2008                                                   6.688026884%
 Jan  2 2009                                                   2.387361165%
 Jul  2 2009                                                   7.306419080%
 Jan  2 2010                                                   2.168401651%
 Jul  2 2010                                                   7.968160951%
 Jan  2 2011                                                   1.910236366%
 Jul  2 2011                                                   8.357727905%
 Jan  2 2012                                                   1.623234046%
 Jul  2 2012                                                   8.741890724%
 Jan  2 2013                                                   1.357186349%
 Jul  2 2013                                                   9.832342973%
 Jan  2 2014                                                   0.979916295%
 Jul  2 2014                                                  10.601366256%
 Jan  2 2015                                                   0.574243500%
 Jul  2 2015                                                   9.506229857%
 Jan  2 2016                                                   0.196940874%
 Jul  2 2016                                                   3.599395122%
 Jan  2 2017                                                   0.130287805%
 Jul  2 2017                                                   0.861995122%
 Jan  2 2018                                                   0.097715854%
 Jul  2 2018                                                   0.829423171%
 Jan  2 2019                                                   0.065143902%
 Jul  2 2019                                                   0.796851220%
 Jan  2 2020                                                   0.032571951%
 Jul  2 2020                                                   0.764279268%
 Jan  2 2021                                                   0.574238447%
 Jul  2 2021                                                   0.813964974%
 Jan  2 2022                                                   0.850613103%
 Jul  2 2022                                                   0.850613103%
 Jan  2 2023                                                   0.888842103%
</TABLE>
<PAGE>   55
                                                                      Schedule 1
                                                               TO FACILITY LEASE

<TABLE>
<S>                                                            <C>
 Jul  2 2023                                                   0.888842103%
 Jan  2 2024                                                   0.928729273%
 Jul  2 2024                                                   0.928729273%
 Jan  2 2025                                                   0.970346535%
 Jul  2 2025                                                   0.970346535%
 Jan  2 2026                                                   1.013768931%
 Jul  2 2026                                                   1.013768931%
 Jan  2 2027                                                   1.059074758%
 Jul  2 2027                                                   1.059074758%
 Jan  2 2028                                                   0.968862341%
 Jul  2 2028                                                   0.914690317%
 Jan  2 2029                                                   0.892256545%
 Jul  2 2029                                                   0.892256545%
 Jan  2 2030                                                   0.892256545%
 Jul  2 2030                                                   0.892256545%
 Jan  2 2031                                                   0.892256545%
 Jul  2 2031                                                   0.892256545%
 Jan  2 2032                                                   0.892256545%
 Jul  2 2032                                                   0.385376175%
 Jan  2 2033                                                   0.024390244%
 Jul  2 2033                                                   0.024390244%
 Jan  2 2034                                                   0.024390244%
 Jul  2 2034                                                   0.024390244%
 Jan  2 2035                                                   0.024390244%
 Jul  2 2035                                                   0.024390244%
 Jan  2 2036                                                   0.024390244%
 Jul  2 2036                                                   0.024390244%
 Jul 20 2036                                                   0.024390244%
</TABLE>
<PAGE>   56
                                                                      SCHEDULE 2
                                                               TO FACILITY LEASE

                         TERMINATION VALUES PERCENTAGES

<TABLE>
<CAPTION>
 TERMINATION              GROSS TERMINATION             SECTION 467 LOAN
 DATE                     VALUE PERCENTAGE             BALANCE PERCENTAGE
<S>                       <C>                          <C>
 Jul 20 2000                  0.00000000%                   0.00000000%
 Aug 20 2000                104.16702947%                   0.00000000%
 Sep 20 2000                105.07660605%                   0.00000000%
 Oct 20 2000                105.97409822%                   0.00000000%
 Nov 20 2000                106.87405525%                   0.00000000%
 Dec 20 2000                107.77649840%                   0.00000000%
 Jan 20 2001                106.86637857%                   3.54816830%
 Feb 20 2001                107.75047361%                   3.56858822%
 Mar 20 2001                108.63674194%                   3.58900814%
 Apr 20 2001                109.52520228%                   3.60942805%
 May 20 2001                110.40508632%                   3.62984797%
 Jun 20 2001                111.28710733%                   3.65026789%
 Jul 20 2001                112.17422821%                   8.87753751%
 Aug 20 2001                113.06592475%                   8.92862826%
 Sep 20 2001                113.95966277%                   8.97971901%
 Oct 20 2001                114.84467267%                   9.03080976%
 Nov 20 2001                115.73166640%                   9.08190051%
 Dec 20 2001                116.62066106%                   9.13299126%
 Jan 20 2002                110.21837970%                   5.52463999%
 Feb 20 2002                111.08125179%                   5.55643462%
 Mar 20 2002                111.94608322%                   5.58822924%
 Apr 20 2002                112.81289087%                   5.62002387%
 May 20 2002                113.67166401%                   5.65181850%
 Jun 20 2002                114.53236113%                   5.68361313%
 Jul 20 2002                115.39349568%                  14.12346516%
 Aug 20 2002                116.26218162%                  14.20474653%
 Sep 20 2002                117.13275451%                  14.28602790%
 Oct 20 2002                117.99520286%                  14.36730927%
 Nov 20 2002                118.85948437%                  14.44859064%
 Dec 20 2002                119.72561486%                  14.52987201%
 Jan 20 2003                113.32140669%                  10.76036833%
 Feb 20 2003                114.16181404%                  10.82229488%
 Mar 20 2003                115.00403139%                  10.88422143%
 Apr 20 2003                115.84807436%                  10.94614798%
 May 20 2003                116.68471315%                  11.00807454%
 Jun 20 2003                117.52312945%                  11.07000109%
 Jul 20 2003                118.28785186%                  19.12742572%
 Aug 20 2003                119.13434660%                  19.23750518%
 Sep 20 2003                119.98258480%                  19.34758464%
 Oct 20 2003                120.82333595%                  19.45766410%
 Nov 20 2003                121.66578104%                  19.56774356%
 Dec 20 2003                122.50993466%                  19.67782301%
 Jan 20 2004                116.15936138%                  15.80600583%
 Feb 20 2004                116.97853618%                  15.89697032%
</TABLE>
<PAGE>   57
                                                               TO FACILITY LEASE

<TABLE>
<S>                         <C>                            <C>
 Mar 20 2004                117.79938369%                  15.98793482%
 Apr 20 2004                118.62191832%                  16.07889931%
 May 20 2004                119.43763499%                  16.16986380%
 Jun 20 2004                120.25499454%                  16.26082829%
 Jul 20 2004                120.98824050%                  23.70042376%
 Aug 20 2004                121.81459270%                  23.83682109%
 Sep 20 2004                122.64255653%                  23.97321843%
 Oct 20 2004                123.46362625%                  24.10961576%
 Nov 20 2004                124.28626206%                  24.24601309%
 Dec 20 2004                125.11047746%                  24.38241042%
 Jan 20 2005                118.75142582%                  20.36073614%
 Feb 20 2005                119.55102818%                  20.47791337%
 Mar 20 2005                120.35217725%                  20.59509060%
 Apr 20 2005                121.15488637%                  20.71226783%
 May 20 2005                121.95131921%                  20.82944507%
 Jun 20 2005                122.74927143%                  20.94662230%
 Jul 20 2005                123.34553459%                  27.15329788%
 Aug 20 2005                124.15360988%                  27.30956670%
 Sep 20 2005                124.96317591%                  27.46583553%
 Oct 20 2005                125.76639574%                  27.62210435%
 Nov 20 2005                126.57106444%                  27.77837317%
 Dec 20 2005                127.37719450%                  27.93464200%
 Jan 20 2006                121.12007757%                  23.90754805%
 Feb 20 2006                121.90257132%                  24.04513739%
 Mar 20 2006                122.68649629%                  24.18272673%
 Apr 20 2006                123.47186483%                  24.32031607%
 May 20 2006                124.25145823%                  24.45790542%
 Jun 20 2006                125.03245785%                  24.59549476%
 Jul 20 2006                125.53136077%                  30.84825181%
 Aug 20 2006                126.32187435%                  31.02578531%
 Sep 20 2006                127.11376792%                  31.20331881%
 Oct 20 2006                127.89982225%                  31.38085231%
 Nov 20 2006                128.68721813%                  31.55838581%
 Dec 20 2006                129.47596712%                  31.73591931%
 Jan 20 2007                123.28225075%                  27.65446200%
 Feb 20 2007                124.04806713%                  27.81361505%
 Mar 20 2007                124.81520904%                  27.97276810%
 Apr 20 2007                125.58368791%                  28.13192115%
 May 20 2007                126.34686875%                  28.29107421%
 Jun 20 2007                127.11135239%                  28.45022726%
 Jul 20 2007                127.48319388%                  34.25622698%
 Aug 20 2007                128.25710870%                  34.45337358%
 Sep 20 2007                129.03230249%                  34.65052018%
 Oct 20 2007                129.80213976%                  34.84766678%
 Nov 20 2007                130.57322085%                  35.04481337%
 Dec 20 2007                131.34555649%                  35.24195997%
 Jan 20 2008                125.24711392%                  31.14434221%
 Feb 20 2008                125.99737827%                  31.32357973%
 Mar 20 2008                126.74887209%                  31.50281725%
 Apr 20 2008                127.50160599%                  31.68205476%
 May 20 2008                128.24911643%                  31.86129228%
 Jun 20 2008                128.99783259%                  32.04052980%
</TABLE>
<PAGE>   58
                                                               TO FACILITY LEASE

<TABLE>
<S>                         <C>                            <C>
 Jul 20 2008                129.29304696%                  38.47787766%
 Aug 20 2008                130.04933092%                  38.69932011%
 Sep 20 2008                130.80679572%                  38.92076255%
 Oct 20 2008                131.55897733%                  39.14220500%
 Nov 20 2008                132.31230439%                  39.36364744%
 Dec 20 2008                133.06678681%                  39.58508989%
 Jan 20 2009                127.01018551%                  35.38811871%
 Feb 20 2009                127.74269679%                  35.59177941%
 Mar 20 2009                128.47633725%                  35.79544011%
 Apr 20 2009                129.21111663%                  35.99910081%
 May 20 2009                129.94069294%                  36.20276151%
 Jun 20 2009                130.67137312%                  36.40642222%
 Jul 20 2009                130.79083800%                  43.33242106%
 Aug 20 2009                131.52657073%                  43.58180169%
 Sep 20 2009                132.26338086%                  43.83118231%
 Oct 20 2009                132.99492588%                  44.08056294%
 Nov 20 2009                133.72751218%                  44.32994357%
 Dec 20 2009                134.46114876%                  44.57932420%
 Jan 20 2010                128.54089734%                  40.34851096%
 Feb 20 2010                129.25308255%                  40.58071901%
 Mar 20 2010                129.96629020%                  40.81292706%
 Apr 20 2010                130.68052909%                  41.04513511%
 May 20 2010                131.38960652%                  41.27734316%
 Jun 20 2010                132.09967958%                  41.50955121%
 Jul 20 2010                132.13053522%                  49.06171671%
 Aug 20 2010                132.84348425%                  49.34406977%
 Sep 20 2010                133.55740093%                  49.62642284%
 Oct 20 2010                134.26609199%                  49.90877590%
 Nov 20 2010                134.97571399%                  50.19112896%
 Dec 20 2010                135.68627494%                  50.47348202%
 Jan 20 2011                129.80928104%                  46.08377114%
 Feb 20 2011                130.49835094%                  46.34898595%
 Mar 20 2011                131.18833036%                  46.61420076%
 Apr 20 2011                131.87922716%                  46.87941556%
 May 20 2011                132.56533997%                  47.14463037%
 Jun 20 2011                133.25233682%                  47.40984518%
 Jul 20 2011                126.70112724%                  48.82809931%
 Aug 20 2011                127.35211417%                  49.10910789%
 Sep 20 2011                128.00395851%                  49.39011647%
 Oct 20 2011                128.65095841%                  49.67112505%
 Nov 20 2011                129.29878136%                  49.95213363%
 Dec 20 2011                129.94743444%                  50.23314221%
 Jan 20 2012                130.60268224%                  52.14885151%
 Feb 20 2012                131.26636977%                  52.44897121%
 Mar 20 2012                131.93085945%                  52.74909091%
 Apr 20 2012                132.59615818%                  53.04921062%
 May 20 2012                133.25672554%                  53.34933032%
 Jun 20 2012                133.91806813%                  53.64945002%
 Jul 20 2012                127.30877096%                  55.45219095%
 Aug 20 2012                127.92455522%                  55.77132156%
 Sep 20 2012                128.54094699%                  56.09045218%
 Oct 20 2012                129.15240408%                  56.40958279%
</TABLE>
<PAGE>   59
                                                               TO FACILITY LEASE

<TABLE>
<S>                         <C>                            <C>
 Nov 20 2012                129.76443137%                  56.72871341%
 Dec 20 2012                130.37703378%                  57.04784402%
 Jan 20 2013                130.99600621%                  58.73549836%
 Feb 20 2013                131.62307414%                  59.07352460%
 Mar 20 2013                132.25068394%                  59.41155085%
 Apr 20 2013                132.87884029%                  59.74957709%
 May 20 2013                133.50411472%                  60.08760333%
 Jun 20 2013                134.12991556%                  60.42562957%
 Jul 20 2013                126.14440437%                  62.02531598%
 Aug 20 2013                126.72386316%                  62.38227532%
 Sep 20 2013                127.30383225%                  62.73923466%
 Oct 20 2013                127.88088283%                  63.09619399%
 Nov 20 2013                128.45842293%                  63.45315333%
 Dec 20 2013                129.03645678%                  63.81011266%
 Jan 20 2014                129.62237203%                  65.15780489%
 Feb 20 2014                130.21597104%                  65.53279188%
 Mar 20 2014                130.81004681%                  65.90777888%
 Apr 20 2014                131.40460345%                  66.28276587%
 May 20 2014                131.99703923%                  66.65775286%
 Jun 20 2014                132.58994174%                  67.03273986%
 Jul 20 2014                124.29202754%                  69.16097881%
 Aug 20 2014                124.83146235%                  69.55900430%
 Sep 20 2014                125.37129123%                  69.95702980%
 Oct 20 2014                125.90891168%                  70.35505529%
 Nov 20 2014                126.44691056%                  70.75308079%
 Dec 20 2014                126.98529113%                  71.15110628%
 Jan 20 2015                127.53171549%                  72.13363998%
 Feb 20 2015                128.08534881%                  72.54877331%
 Mar 20 2015                128.63935112%                  72.96390665%
 Apr 20 2015                129.19372558%                  73.37903998%
 May 20 2015                129.74633139%                  73.79417331%
 Jun 20 2015                130.29929732%                  74.20930665%
 Jul 20 2015                121.96167788%                  75.27959554%
 Aug 20 2015                122.46196081%                  75.71283403%
 Sep 20 2015                122.96253881%                  76.14607252%
 Oct 20 2015                123.46127040%                  76.57931102%
 Nov 20 2015                123.96028367%                  77.01254951%
 Dec 20 2015                124.45958108%                  77.44578800%
 Jan 20 2016                124.96671045%                  78.08565680%
 Feb 20 2016                125.48056999%                  78.53504434%
 Mar 20 2016                125.99470243%                  78.98443188%
 Apr 20 2016                126.50911011%                  79.43381942%
 May 20 2016                127.02197447%                  79.88320696%
 Jun 20 2016                127.53510315%                  80.33259450%
 Jul 20 2016                119.16918283%                  75.51054782%
 Aug 20 2016                119.62805218%                  75.94511546%
 Sep 20 2016                120.08694384%                  76.37968310%
 Oct 20 2016                120.54403707%                  76.81425073%
 Nov 20 2016                121.00113728%                  77.24881837%
 Dec 20 2016                121.45824455%                  77.68338601%
 Jan 20 2017                121.92401293%                  78.25772756%
 Feb 20 2017                122.39610538%                  78.70810538%
</TABLE>
<PAGE>   60
                                                                      SCHEDULE 2
                                                               TO FACILITY LEASE

<TABLE>
<S>                         <C>                            <C>
 Mar 20 2017                122.86819783%                  79.15848319%
 Apr 20 2017                123.34029029%                  79.60886101%
 May 20 2017                123.81238274%                  80.05923883%
 Jun 20 2017                124.28447520%                  80.50961665%
 Jul 20 2017                115.87301660%                  72.94169574%
 Aug 20 2017                116.30908632%                  73.36147949%
 Sep 20 2017                116.74515604%                  73.78126323%
 Oct 20 2017                117.18122576%                  74.20104697%
 Nov 20 2017                117.61729548%                  74.62083071%
 Dec 20 2017                118.05336519%                  75.04061446%
 Jan 20 2018                118.49850080%                  75.56717994%
 Feb 20 2018                118.94968034%                  76.00207350%
 Mar 20 2018                119.40085987%                  76.43696706%
 Apr 20 2018                119.85203940%                  76.87186062%
 May 20 2018                120.30321894%                  77.30675417%
 Jun 20 2018                120.75439846%                  77.74164773%
 Jul 20 2018                112.32159219%                  70.12523584%
 Aug 20 2018                112.73602436%                  70.52881069%
 Sep 20 2018                113.15045652%                  70.93238554%
 Oct 20 2018                113.56488869%                  71.33596039%
 Nov 20 2018                113.97932086%                  71.73953524%
 Dec 20 2018                114.39375302%                  72.14311009%
 Jan 20 2019                114.81680124%                  72.62044489%
 Feb 20 2019                115.24559348%                  73.03837981%
 Mar 20 2019                115.67438572%                  73.45631474%
 Apr 20 2019                116.10317796%                  73.87424966%
 May 20 2019                116.53197020%                  74.29218459%
 Jun 20 2019                116.96076244%                  74.71011951%
 Jul 20 2019                108.50510344%                  67.04371160%
 Aug 20 2019                108.89637260%                  67.42955210%
 Sep 20 2019                109.28764175%                  67.81539260%
 Oct 20 2019                109.67891091%                  68.20123309%
 Nov 20 2019                110.07018006%                  68.58707359%
 Dec 20 2019                110.46144922%                  68.97291409%
 Jan 20 2020                110.86085286%                  69.39946102%
 Feb 20 2020                111.26567949%                  69.79885900%
 Mar 20 2020                111.67050612%                  70.19825697%
 Apr 20 2020                112.07533276%                  70.59765494%
 May 20 2020                112.48015939%                  70.99705292%
 Jun 20 2020                112.88498602%                  71.39645089%
 Jul 20 2020                104.40486316%                  63.67843583%
 Aug 20 2020                104.77133630%                  64.04490897%
 Sep 20 2020                105.13780943%                  64.41138211%
 Oct 20 2020                105.50428257%                  64.77785525%
 Nov 20 2020                105.87075571%                  65.14432838%
 Dec 20 2020                106.23722885%                  65.51080152%
 Jan 20 2021                106.61331070%                  66.46112182%
 Feb 20 2021                106.99579836%                  66.84360948%
 Mar 20 2021                107.37828601%                  67.22609714%
 Apr 20 2021                107.76077367%                  67.60858480%
 May 20 2021                108.14326133%                  67.99107245%
 Jun 20 2021                108.52574899%                  68.37356011%
</TABLE>
<PAGE>   61
                                                                      SCHEDULE 2
                                                               TO FACILITY LEASE

<TABLE>
<S>                         <C>                            <C>
 Jul 20 2021                100.02636495%                  60.68814104%
 Aug 20 2021                100.37562876%                  61.03740486%
 Sep 20 2021                100.72489258%                  61.38666868%
 Oct 20 2021                101.07415639%                  61.73593249%
 Nov 20 2021                101.42342021%                  62.08519631%
 Dec 20 2021                101.77268402%                  62.43446012%
 Jan 20 2022                102.13215641%                  63.64454561%
 Feb 20 2022                102.49843451%                  64.01082371%
 Mar 20 2022                102.86471260%                  64.37710180%
 Apr 20 2022                103.23099070%                  64.74337990%
 May 20 2022                103.59726880%                  65.10965800%
 Jun 20 2022                103.96354690%                  65.47593610%
 Jul 20 2022                 95.44815916%                  57.81074558%
 Aug 20 2022                 95.78086340%                  58.14344982%
 Sep 20 2022                 96.11356763%                  58.47615405%
 Oct 20 2022                 96.44627187%                  58.80885829%
 Nov 20 2022                 96.77897610%                  59.14156253%
 Dec 20 2022                 97.11168034%                  59.47426676%
 Jan 20 2023                 97.45542749%                  60.70580986%
 Feb 20 2023                 97.80479299%                  61.05517536%
 Mar 20 2023                 98.15415850%                  61.40454086%
 Apr 20 2023                 98.50352400%                  61.75390636%
 May 20 2023                 98.85288950%                  62.10327186%
 Jun 20 2023                 99.20225500%                  62.45263736%
 Jul 20 2023                 90.67102989%                  54.80854410%
 Aug 20 2023                 90.98645628%                  55.12397049%
 Sep 20 2023                 91.30188267%                  55.43939688%
 Oct 20 2023                 91.61730906%                  55.75482327%
 Nov 20 2023                 91.93273545%                  56.07024966%
 Dec 20 2023                 92.24816184%                  56.38567605%
 Jan 20 2024                 92.57574406%                  57.63960748%
 Feb 20 2024                 92.90746339%                  57.97132680%
 Mar 20 2024                 93.23918271%                  58.30304613%
 Apr 20 2024                 93.57090204%                  58.63476545%
 May 20 2024                 93.90262136%                  58.96648478%
 Jun 20 2024                 94.23434069%                  59.29820410%
 Jul 20 2024                 85.68661577%                  51.67612319%
 Aug 20 2024                 85.98401489%                  51.97352231%
 Sep 20 2024                 86.28141401%                  52.27092143%
 Oct 20 2024                 86.57881314%                  52.56832056%
 Nov 20 2024                 86.87621226%                  52.86571968%
 Dec 20 2024                 87.17361138%                  53.16311880%
 Jan 20 2025                 87.48435223%                  54.44040964%
 Feb 20 2025                 87.79765998%                  54.75371739%
 Mar 20 2025                 88.11096774%                  55.06702515%
 Apr 20 2025                 88.42427549%                  55.38033290%
 May 20 2025                 88.73758325%                  55.69364066%
 Jun 20 2025                 89.05089100%                  56.00694841%
 Jul 20 2025                 80.48597551%                  48.40783461%
 Aug 20 2025                 80.76456544%                  48.68642454%
 Sep 20 2025                 81.04315538%                  48.96501447%
 Oct 20 2025                 81.32174531%                  49.24360440%
</TABLE>
<PAGE>   62
                                                                      SCHEDULE 2
                                                               TO FACILITY LEASE

<TABLE>
<S>                          <C>                           <C>
 Nov 20 2025                 81.60033524%                  49.52219433%
 Dec 20 2025                 81.87892517%                  49.80078426%
 Jan 20 2026                 82.17211929%                  51.10244772%
 Feb 20 2026                 82.46621687%                  51.39654531%
 Mar 20 2026                 82.76031446%                  51.69064289%
 Apr 20 2026                 83.05441204%                  51.98474048%
 May 20 2026                 83.34850964%                  52.27883807%
 Jun 20 2026                 83.64260723%                  52.57293566%
 Jul 20 2026                 75.05978089%                  44.99778516%
 Aug 20 2026                 75.31874579%                  45.25675006%
 Sep 20 2026                 75.57771068%                  45.51571496%
 Oct 20 2026                 75.83667558%                  45.77467985%
 Nov 20 2026                 76.09564048%                  46.03364475%
 Dec 20 2026                 76.35460537%                  46.29260964%
 Jan 20 2027                 76.62951726%                  47.61970287%
 Feb 20 2027                 76.90357145%                  47.89375706%
 Mar 20 2027                 77.17762563%                  48.16781124%
 Apr 20 2027                 77.45167982%                  48.44186543%
 May 20 2027                 77.72573401%                  48.71591962%
 Jun 20 2027                 77.99978819%                  48.98997380%
 Jul 20 2027                 69.39829993%                  41.43982602%
 Aug 20 2027                 69.63678856%                  41.67831465%
 Sep 20 2027                 69.87527719%                  41.91680328%
 Oct 20 2027                 70.11444461%                  42.15529192%
 Nov 20 2027                 70.35361788%                  42.39378055%
 Dec 20 2027                 70.59279706%                  42.63226918%
 Jan 20 2028                 70.84820107%                  43.84793544%
 Feb 20 2028                 71.10054851%                  44.10028288%
 Mar 20 2028                 71.35289595%                  44.35263033%
 Apr 20 2028                 71.60524340%                  44.60497777%
 May 20 2028                 71.85974938%                  44.85732521%
 Jun 20 2028                 72.11427398%                  45.10967266%
 Jul 20 2028                 64.22317097%                  38.12383386%
 Aug 20 2028                 64.44257587%                  38.34323877%
 Sep 20 2028                 64.66198077%                  38.56264367%
 Oct 20 2028                 64.88514592%                  38.78204857%
 Nov 20 2028                 65.10834348%                  39.00145347%
 Dec 20 2028                 65.33157375%                  39.22085838%
 Jan 20 2029                 65.56972027%                  40.34017292%
 Feb 20 2029                 65.80188033%                  40.57233298%
 Mar 20 2029                 66.03404040%                  40.80449305%
 Apr 20 2029                 66.26620046%                  41.03665311%
 May 20 2029                 66.50318966%                  41.26881318%
 Jun 20 2029                 66.74022049%                  41.50097324%
 Jul 20 2029                 59.71571598%                  35.35750848%
 Aug 20 2029                 59.91920052%                  35.56099302%
 Sep 20 2029                 60.12268505%                  35.76447756%
 Oct 20 2029                 60.33112810%                  35.96796209%
 Nov 20 2029                 60.53961390%                  36.17144663%
 Dec 20 2029                 60.74814282%                  36.37493117%
 Jan 20 2030                 60.97034137%                  37.47799436%
 Feb 20 2030                 61.18602943%                  37.69368242%
</TABLE>
<PAGE>   63
                                                                      SCHEDULE 2
                                                               TO FACILITY LEASE

<TABLE>
<S>                          <C>                           <C>
 Mar 20 2030                 61.40171749%                  37.90937048%
 Apr 20 2030                 61.61740555%                  38.12505854%
 May 20 2030                 61.83850845%                  38.34074660%
 Jun 20 2030                 62.05965804%                  38.55643466%
 Jul 20 2030                 55.01921465%                  32.39615544%
 Aug 20 2030                 55.20565643%                  32.58259722%
 Sep 20 2030                 55.39209820%                  32.76903899%
 Oct 20 2030                 55.58466133%                  32.95548077%
 Nov 20 2030                 55.77727724%                  33.14192255%
 Dec 20 2030                 55.96994639%                  33.32836432%
 Jan 20 2031                 56.17622076%                  34.41403044%
 Feb 20 2031                 56.37459224%                  34.61208521%
 Mar 20 2031                 56.57296644%                  34.81013997%
 Apr 20 2031                 56.77134340%                  35.00819474%
 May 20 2031                 56.97660632%                  35.20624950%
 Jun 20 2031                 57.18193139%                  35.40430427%
 Jul 20 2031                 50.12561191%                  29.22602516%
 Aug 20 2031                 50.29548913%                  29.39422265%
 Sep 20 2031                 50.46538083%                  29.56242015%
 Oct 20 2031                 50.64217031%                  29.73061764%
 Nov 20 2031                 50.81903388%                  29.89881513%
 Dec 20 2031                 50.99597218%                  30.06701262%
 Jan 20 2032                 51.18645751%                  31.13405515%
 Feb 20 2032                 51.36881152%                  31.31323347%
 Mar 20 2032                 51.55119291%                  31.49241178%
 Apr 20 2032                 51.73360192%                  31.67159010%
 May 20 2032                 51.92326681%                  31.85076841%
 Jun 20 2032                 52.11302213%                  32.02994673%
 Jul 20 2032                 45.03935747%                  25.32376202%
 Aug 20 2032                 45.19768016%                  25.46950176%
 Sep 20 2032                 45.35611135%                  25.61524149%
 Oct 20 2032                 45.52508847%                  25.76098123%
 Nov 20 2032                 45.70070221%                  25.90672097%
 Dec 20 2032                 45.87655543%                  26.05246071%
 Jan 20 2033                 46.06195189%                  26.22570513%
 Feb 20 2033                 46.24940587%                  26.37663560%
 Mar 20 2033                 46.43715263%                  26.52756608%
 Apr 20 2033                 46.62519454%                  26.67849655%
 May 20 2033                 46.82014658%                  26.82942702%
 Jun 20 2033                 47.01545152%                  26.98035750%
 Jul 20 2033                 39.94514754%                  19.88310093%
 Aug 20 2033                 40.11101866%                  19.99752934%
 Sep 20 2033                 40.27730217%                  20.11195775%
 Oct 20 2033                 40.45061401%                  20.22638617%
 Nov 20 2033                 40.62439788%                  20.34081458%
 Dec 20 2033                 40.79865758%                  20.45524299%
 Jan 20 2034                 40.98247304%                  20.59652513%
 Feb 20 2034                 41.16815558%                  20.71505934%
 Mar 20 2034                 41.35437643%                  20.83359355%
 Apr 20 2034                 41.54113988%                  20.95212776%
 May 20 2034                 41.73746587%                  21.07066197%
 Jun 20 2034                 41.93441548%                  21.18919619%
</TABLE>
<PAGE>   64
                                                                      SCHEDULE 2
                                                               TO FACILITY LEASE

<TABLE>
<S>                         <C>                            <C>
 Jul 20 2034                 33.29413787%                  12.48524922%
 Aug 20 2034                 33.45444503%                  12.55710256%
 Sep 20 2034                 33.61546128%                  12.62895591%
 Oct 20 2034                 33.78620788%                  12.70080925%
 Nov 20 2034                 33.95774726%                  12.77266259%
 Dec 20 2034                 34.13008577%                  12.84451593%
 Jan 20 2035                 34.31382375%                  12.94233786%
 Feb 20 2035                 34.49918651%                  13.01682178%
 Mar 20 2035                 34.68543813%                  13.09130569%
 Apr 20 2035                 34.87258574%                  13.16578961%
 May 20 2035                 35.07034550%                  13.24027352%
 Jun 20 2035                 35.26909351%                  13.31475743%
 Jul 20 2035                 26.58753569%                   4.52262062%
 Aug 20 2035                 26.74930314%                   4.54864856%
 Sep 20 2035                 26.91215875%                   4.57467651%
 Oct 20 2035                 27.08582023%                   4.60070446%
 Nov 20 2035                 27.26066521%                   4.62673241%
 Dec 20 2035                 27.43670318%                   4.65276035%
 Jan 20 2036                 27.62427833%                   4.70380418%
 Feb 20 2036                 27.81324888%                   4.73087485%
 Mar 20 2036                 28.00351729%                   4.75794552%
 Apr 20 2036                 28.19509398%                   4.78501618%
 May 20 2036                 28.42209127%                   4.81208685%
 Jun 20 2036                 28.65069128%                   4.83915752%
 Jul 20 2036                 24.00000000%                  -0.02439025%
</TABLE>
<PAGE>   65
                                                                      SCHEDULE 3
                                                               TO FACILITY LEASE

                       ALLOCATION OF PERIODIC LEASE RENT

<TABLE>
<CAPTION>
RENT PAYMENT PERIOD
------------------------------------
FROM AND                  TO BUT                 ALLOCATION               PROPORTIONAL                  SECTION 467
INCLUDING                 EXCLUDING         RENT PERCENTAGE            RENT PERCENTAGE          INTEREST PERCENTAGE
<S>                       <C>               <C>                        <C>                      <C>
2-Oct-00                  2-Jan-01             1.152476028%               1.812669013%                 0.000000000%
2-Jan-01                  2-Jul-01             0.000000000%               0.000000000%                 0.122519502%
2-Jul-01                  2-Jan-02             4.622780940%               7.270929336%                 0.306544498%
2-Jan-02                  2-Jul-02             0.000000000%               0.000000000%                 0.190767765%
2-Jul-02                  2-Jan-03             4.609832175%               7.250562904%                 0.487688228%
2-Jan-03                  2-Jul-03             0.047382013%               0.074524680%                 0.371559310%
2-Jul-03                  2-Jan-04             4.562257797%               7.175735664%                 0.660476749%
2-Jan-04                  2-Jul-04             0.054555063%               0.085806793%                 0.545786950%
2-Jul-04                  2-Jan-05             4.555310454%               7.164808552%                 0.818383983%
2-Jan-05                  2-Jul-05             0.129924010%               0.204350651%                 0.703063393%
2-Jul-05                  2-Jan-06             4.479559263%               7.045663483%                 0.937612943%
2-Jan-06                  2-Jul-06             0.180984089%               0.284660367%                 0.825536057%
2-Jul-06                  2-Jan-07             4.428637123%               6.965570724%                 1.065201004%
2-Jan-07                  2-Jul-07             0.251396432%               0.395408244%                 0.954918316%
2-Jul-07                  2-Jan-08             4.358115896%               6.854651590%                 1.182879587%
2-Jan-08                  2-Jul-08             0.289436518%               0.455239497%                 1.075425109%
2-Jul-08                  2-Jan-09             4.320257269%               6.795105744%                 1.328654673%
2-Jan-09                  2-Jul-09             0.388793511%               0.611512893%                 1.221964207%
2-Jul-09                  2-Jan-10             4.220556709%               6.638291970%                 1.496283766%
2-Jan-10                  2-Jul-10             0.431250018%               0.678290503%                 1.393248299%
2-Jul-10                  2-Jan-11             4.178420002%               6.572017356%                 1.694118364%
2-Jan-11                  2-Jul-11             4.586690668%               7.214164844%                 1.591288854%
2-Jul-11                  2-Jan-12             0.000000000%               0.000000000%                 1.686051473%
2-Jan-12                  2-Jul-12             4.609904113%               7.250676051%                 1.800718216%
2-Jul-12                  2-Jan-13             0.000000000%               0.000000000%                 1.914783691%
2-Jan-13                  2-Jul-13             5.456373098%               8.582042658%                 2.028157453%
2-Jul-13                  2-Jan-14             0.000000000%               0.000000000%                 2.141756014%
2-Jan-14                  2-Jul-14             5.634327249%               8.861937396%                 2.249921960%
2-Jul-14                  2-Jan-15             0.000000000%               0.000000000%                 2.388152966%
2-Jan-15                  2-Jul-15             5.634327249%               8.861937396%                 2.490800003%
2-Jul-15                  2-Jan-16             0.000000000%               0.000000000%                 2.599430957%
2-Jan-16                  2-Jul-16             5.634327249%               8.861937396%                 2.696325241%
2-Jul-16                  2-Jan-17             0.000000000%               0.000000000%                 2.607405821%
2-Jan-17                  2-Jul-17             5.634327249%               8.861937396%                 2.702266905%
2-Jul-17                  2-Jan-18             0.000000000%               0.000000000%                 2.518702454%
2-Jan-18                  2-Jul-18             5.634327249%               8.861937396%                 2.609361348%
2-Jul-18                  2-Jan-19             0.000000000%               0.000000000%                 2.421449101%
2-Jan-19                  2-Jul-19             5.634327249%               8.861937396%                 2.507609548%
2-Jul-19                  2-Jan-20             0.000000000%               0.000000000%                 2.315042983%
2-Jan-20                  2-Jul-20             5.634327249%               8.861937396%                 2.396387841%
2-Jul-20                  2-Jan-21             0.000000000%               0.000000000%                 2.198838825%
2-Jan-21                  2-Jul-21             5.634327249%               8.861937396%                 2.294925953%
2-Jul-21                  2-Jan-22             0.000000000%               0.000000000%                 2.095582893%
2-Jan-22                  2-Jul-22             5.634327249%               8.861937396%                 2.197668584%
2-Jul-22                  2-Jan-23             0.000000000%               0.000000000%                 1.996225413%
2-Jan-23                  2-Jul-23             5.634327249%               8.861937396%                 2.096193003%
2-Jul-23                  2-Jan-24             0.000000000%               0.000000000%                 1.892558339%
2-Jan-24                  2-Jul-24             5.634327249%               8.861937396%                 1.990315954%
</TABLE>
<PAGE>   66
                                                                      SCHEDULE 3
                                                               TO FACILITY LEASE

<TABLE>
<S>                       <C>                <C>                     <C>                          <C>
2-Jul-24                  2-Jan-25             0.000000000%               0.000000000%                 1.784394741%
2-Jan-25                  2-Jul-25             5.634327249%               8.861937396%                 1.879846526%
2-Jul-25                  2-Jan-26             0.000000000%               0.000000000%                 1.671539585%
2-Jan-26                  2-Jul-26             5.634327249%               8.861937396%                 1.764585525%
2-Jul-26                  2-Jan-27             0.000000000%               0.000000000%                 1.553789376%
2-Jan-27                  2-Jul-27             5.634327249%               8.861937396%                 1.644325118%
2-Jul-27                  2-Jan-28             0.000000000%               0.000000000%                 1.430931793%
2-Jan-28                  2-Jul-28             5.170947056%               8.133111029%                 1.514084660%
2-Jul-28                  2-Jan-29             0.000000000%               0.000000000%                 1.316429416%
2-Jan-29                  2-Jul-29             4.609904113%               7.250676051%                 1.392960384%
2-Jul-29                  2-Jan-30             0.000000000%               0.000000000%                 1.220907225%
2-Jan-30                  2-Jul-30             4.609904113%               7.250676051%                 1.294128350%
2-Jul-30                  2-Jan-31             0.000000000%               0.000000000%                 1.118650661%
2-Jan-31                  2-Jul-31             4.609904113%               7.250676051%                 1.188328596%
2-Jul-31                  2-Jan-32             0.000000000%               0.000000000%                 1.009184946%
2-Jan-32                  2-Jul-32             4.609904113%               7.250676051%                 1.075069894%
2-Jul-32                  2-Jan-33             0.000000000%               0.000000000%                 0.874438425%
2-Jan-33                  2-Jul-33             4.609904113%               7.250676051%                 0.905582838%
2-Jul-33                  2-Jan-34             0.000000000%               0.000000000%                 0.686570480%
2-Jan-34                  2-Jul-34             5.606940934%               8.818862900%                 0.711205270%
2-Jul-34                  2-Jan-35             0.000000000%               0.000000000%                 0.431120055%
2-Jan-35                  2-Jul-35             5.634327249%               8.861937396%                 0.446903486%
2-Jul-35                  2-Jan-36             0.000000000%               0.000000000%                 0.156167683%
2-Jan-36                  2-Jul-36             3.114530896%               4.898682060%                 0.162424016%
2-Jul-36                  20-Jul-36            0.000000000%               0.000000000%                -0.000084220%

                                             183.371741374%          288.415780697041%            105.044039322810%
</TABLE>

<PAGE>   67
                                                                       EXHIBIT A
                                                                              to
                                                                  Facility Lease

                              DESCRIPTION OF SITES

(A)      Unit 3 Site

Parcel 14B        That portion of the E1/2NE1/4 of Section 34 and W1/2NW1/4
                  of Section 35 in Township 2 North, Range 41 East, described as
                  Tract 2 of Colstrip Unit 3 and 4 Cooling Towers Minor
                  Subdivision being a subdivision of Parcel 2 of Certificate of
                  Survey No. 34153 as amended by Certificate of Survey No.
                  85789, which Minor Subdivision was filed in the office of the
                  Clerk and Recorder of Rosebud County, Montana on June 5, 2000
                  under Document No. 88170.

Parcel 15B        That portion of the S1/2NE1/4 and N1/2SE1/4 of Section 34
                  in Township 2 North, Range 41 East, described as Tract 2 of
                  Colstrip Unit 3 and 4 Generation Sites Minor Subdivision being
                  a subdivision of Parcel 4 of Certificate of Survey No. 29931
                  Amended, filed for record as Document No. 37265, which Minor
                  Subdivision was filed in the office of the Clerk and Recorder
                  of Rosebud County, Montana on June 5, 2000 under Document No.
                  88169.

(B)      Common Facilities 3-4 Site

Parcel 13         That portion of Sections 34 and 35 in Township 2 North,
                  Range 41 East, PMM, described as Parcel 3 Amended of
                  Certificate of Survey No. 85124 filed December 30, 1998 for
                  record in the office of the Clerk and Recorder of Rosebud
                  County, Montana as document No. 85124.

Parcel 14         (intentionally deleted and replaced by 14A and 14B)

Parcel 14A        That portion of the E1/2NE1/4 of Section 34 and W1/2NW1/4
                  of Section 35 in Township 2 North, Range 41 East, described as
                  Tract 1 of Colstrip Unit 3 and 4 Cooling Towers Minor
                  Subdivision being a subdivision of Parcel 2 of Certificate of
                  Survey No. 34153 as amended by Certificate of Survey No.
                  85789, which Minor Subdivision was filed in the office of the
                  Clerk and Recorder of Rosebud County, Montana on June 5, 2000
                  under Document No. 88170.

Parcel 14C        Intentionally Deleted.

Parcel 15         (intentionally deleted and replaced by 15A and 15B)

<PAGE>   68

Parcel 15A        That portion of the S1/2NE1/4 and N1/2SE1/4 of Section 34
                  in Township 2 North, Range 41 East, described as Tract 1 of
                  Colstrip Unit 3 and 4 Generation Sites Minor Subdivision being
                  a subdivision of Parcel 4 of Certificate of Survey No. 29931
                  Amended, filed for record as Document No. 37265, which Minor
                  Subdivision was filed in the office of the Clerk and Recorder
                  of Rosebud County, Montana on June 5, 2000 under Document No.
                  88169.

Parcel 15C        Intentionally Deleted

Parcel 16         That portion of Section 3 in Township 1 North, Range 41
                  East, PMM, described as Tract 1 of Certificate of Survey No.
                  58701 filed October 29, 1987 for record in the office of the
                  Clerk and Recorder of Rosebud County, Montana as Document No.
                  58701.

Parcel 17         Township 1 North, Range 41 East, P.M.M., Rosebud County,
                  Montana

                  Section 2: W1/2 of Lot 2, Lots 3 and 4, and the S1/2N1/2

                  Descriptions are from a deed in settlement of a condemnation
                  action given by Burlington Northern Railroad Company to the
                  Montana Power Company, a Montana corporation, Pacific Power &
                  Light Company, a Maine corporation, Portland General Electric
                  Company, an Oregon corporation, The Washington Water Power
                  Company, a Washington Corporation, and Puget Colstrip
                  Construction Company, a Washington corporation, dated January
                  25, 1983, recorded in Book 79 Deeds, page 588, records of
                  Rosebud County, Montana.

Parcel 17A        Township 2 North, Range 41 East, P.M.M.

                  Section 35:    Those portions of the S1/2 being two
                                 separate tracts herein referred to as Parcel 1
                                 and Parcel 2 described as follows:

                                 Parcel 1 beginning at the common corner of
                                 Sections 34 and 35, T2N, R41E Sections 2 and 3,
                                 T1N, R41E, which is the true point of
                                 beginning; thence N 02(degree) 06'11" W along
                                 the common line between Sections 34 and 35 a
                                 distance of 632.34 feet; thence N 41(degree)
                                 52' 20" E a distance of 2,126.31 feet; thence S
                                 65(degree) 04' 46" E a distance of 1,493.70
                                 feet; thence S 05(degree) 36' 54" E a distance
                                 of 1,581.65 feet to the common lines between
                                 Sections 2 and 35; thence S 89(degree) 44' 06"
                                 W a distance of 260.76 feet along the common
                                 line between Section 2 and Section 35 to the
                                 quarter section corner common to Sections 2 and
                                 35; thence S 89(degree) 46' 14" W a distance of
                                 2,644.79 feet along the common line between
                                 Section 2 and 35 to the true point of
                                 beginning.

                                 Parcel 2 beginning at the common corner of
                                 Sections 35 and 36, T2N, R41E and Sections 1
                                 and 2, T1N, R41E; thence S 89(degree) 44' 06" W
                                 along the common Line of Sections 2 and 35 a
                                 distance of 723.39 feet to a point on the
                                 Southwesterly boundary of the Burlington

<PAGE>   69

                                 Railroad right-of-way, which point is the true
                                 point of beginning; thence S 89(degree) 44' 06"
                                 W along the common line of Sections 2 and 35 a
                                 distance of 599.14 feet; thence N 02(degree)
                                 22' 02" W a distance of 1,640.32 feet to a
                                 point on the southwesterly boundary of the
                                 Burlington Northern Railroad right-of-way;
                                 thence S 22(degree) 10' 32" E along the
                                 southwesterly boundary of the Burlington
                                 Northern Railroad right-of-way to the point of
                                 beginning.

                  Descriptions are from a deed in settlement of a condemnation
                  action given by Burlington Northern Railroad Company to The
                  Montana Power Company, A Montana corporation, Pacific Power &
                  Light Company, a Maine corporation, Portland General Electric
                  Company, an Oregon corporation, The Washington Water Power
                  Company, a Washington corporation, and Puget Colstrip
                  Construction Company, a Washington corporation, dated January
                  25, 1983, recorded in Book 79 Deeds, page 588, records of
                  Rosebud County, Montana.

Parcel 17B        Township 1 North, Range 41 East, P.M.M., Rosebud County,
                  Montana

                  Section 3: That portion of Lot 1 and the SE1/4NE1/4 beginning
                  at the common corner of said Sections 34 and 35, T2N, R41E and
                  Sections 2 and 3, T1N, R41E, which is the true point of
                  beginning; thence S 89` 43' 02" W along the common lines
                  between Sections 34 and 3 a distance of 776.23 feet; thence S
                  01` 31' 17" W a distance of 2,782.94 feet to the east-west
                  mid-section line of Section 3; thence N 89` 57' 01" E along
                  the mid-section line a distance of 864.60 feet to the quarter
                  section corner common to Sections 2 and 3; thence N 00` 17'
                  53" W along the common line between Sections 2 and 3 a
                  distance of 2,785.08 feet to the true point of beginning.

                  Descriptions are from a deed in settlement of a condemnation
                  action given by Burlington Northern Railroad Company to The
                  Montana Power Company, a Montana corporation, Pacific Power &
                  Light, a Maine corporation, Portland General Electric Company,
                  an Oregon corporation, The Washington Water Power Company, a
                  Washington corporation, dated January 25, 1983, recorded in
                  Book 79 Deeds, page 593, records of Rosebud County, Montana.

Parcel 18         Township 2 North, Range 42 East, P.M.M., Rosebud County,
                  Montana

                  Section 31: S1/2
                  Section 32: S1/2

                  Township 1 North, Range 42 East, P.M.M., Rosebud County,
                  Montana

                  Section 5: All
                  Section 6: Lots 1, 2, 3, 4, 5, and 6, SE1/4, S1/2NE1/4,
                  E1/2SW1/4, SE1/4NW1/4

Parcel 18A        Township 1 North, Range 42 East, P.M.M., Rosebud County,
                  Montana

                  Section 7: NE1/4NW1/4, N1/2NE1/4

<PAGE>   70

                  Section 8: N1/2 NW1/4

Parcel 19         Easements and rights-of-way more particularly described in
                  documents recorded in the office of the Clerk and Recorder of
                  Rosebud County, Montana under the following book and page
                  numbers, which documents are incorporated herein by this
                  reference and made a part hereof:

<TABLE>
<S>               <C>                         <C>
                  Book 79 Deeds               Page 270
                  Book 79 Deeds               Page 3
                  Book 79 Deeds               Page 688
                  Book 81 Deeds               Page 648
                  Book 79 Deeds               Page 599
                  Book 79 Deeds               Page 582
                  Book 85 Deeds               Page 60
</TABLE>

(C)      Common Facilities 1-2-3-4 Site

Parcel 35         That portion of Sections 34 and 35 in Township 2 North,
                  Range 41 East, PMM, described as Parcel B Certificate of
                  Survey No. 34152 filed January 8, 1981 for record in the
                  office of the Clerk and Recorder of Rosebud County, Montana as
                  Document No. 34152.

Parcel 36         That portion of Sections 27 and 34 in Township 2 North,
                  Range 41 East, PMM, described as Parcel C of Certificate of
                  Survey No. 34153 filed January 8, 1981 for record in the
                  office of the Clerk and Recorder of Rosebud County, Montana as
                  Document No. 34153.

Parcel 37         That portion of Section 35 in Township 2 North, Range 41
                  East & Section 2 in Township 1 North, Range 41 East, PMM,
                  described as Tract H-1, Tract H-2, Tract H-3 of Certificate of
                  Survey No. 34995 filed March 25, 1982 for record in the office
                  of the Clerk and Recorder of Rosebud County, Montana as
                  Document No. 34995.

Parcel 38         That portion of Section 3 in Township 1 North, Range 41
                  East, PMM, described as Parcel G of Certificate of Survey No.
                  34996 filed March 25, 1982 for record in the office of the
                  Clerk and Recorder of Rosebud County, Montana as Document No.
                  34996.

Parcel 39         That portion of Section 34 in Township 2 North, Range 41
                  East, PMM, described as Parcel A-1 Amended of Certificate of
                  Survey No. 85561, filed March 17, 1999 for record in the
                  office of the Clerk and Recorder of Rosebud County, Montana as
                  Document No. 85561, excluding therefrom a tract of land
                  described as Parcel A-1-B of Certificate of Survey 85561

<PAGE>   71

Parcel 40         That portion of Sections 28 and 33 in Township 2 North,
                  Range 41 East, PMM, described as Parcel F-1 Amended and Parcel
                  F-2 Amended of Certificate of Survey No. 85920 filed May 4,
                  1999 for record in the office of the Clerk and Recorder of
                  Rosebud County, Montana as Document No. 85920.

Parcel 41         That portion of Section 34 in Township 2 North, Range 41
                  East, PMM, described as Parcel D-1 and Parcel D-2 of
                  Certificate of Survey No. 42210 filed January 10, 1984 for
                  record in the office of the Clerk and Recorder of Rosebud
                  County, Montana as Document No. 42210.

Parcel 42         That portion of Section 34 in Township 2 North, Range 41 East,
                  PMM, described as Tract 1-A-1, Tract 1-A-2 and Tract 1-A-3 of
                  Certificate of Survey No. 54257 amending Certificate of Survey
                  No. 27875 (Tract 1), Certificate of Survey No. 27878,
                  Certificate of Survey No. 34994 and Dedication of Tracts
                  1-A-2, 1-B-2, 1-B and 1-D, filed July 30, 1986 for record in
                  the office of the Clerk and Recorder of Rosebud County,
                  Montana as Document No. 54257, subject to dedication of Tract
                  1-A-2 (Willow Avenue) as a public road.

Parcel 43         That portion of Section 24 in Township 6 North, Range 39
                  East, PMM, described as Tract A and Tract C of Certificate of
                  Survey No. 6100 filed February 13, 1974 for record in the
                  office of the Clerk and Recorder of Rosebud County, Montana as
                  Document No. 6100.

Parcel 44         That parcel commencing at the section corner common Sections
                  Thirteen (13), Fourteen (14), Twenty-three (23) and
                  Twenty-four (24), Township Six (6) North, of Range Thirty-nine
                  (39) East, M.P.M., Rosebud County, Montana, running thence
                  northerly along the section line common to Sections Fourteen
                  (14) and Thirteen (13) to the Yellowstone River; running
                  thence southeasterly along the Yellowstone River to a point
                  where the south boundary line of Section Thirteen (13) meets
                  the Yellowstone River; thence westerly along the south
                  boundary line of the said Section Thirteen (13) to the point
                  of beginning, containing in all approximately 17 acres as
                  described in deed dated December 7, 1973, recorded December
                  12, 1973 in Book 73, Page 127 and confirmed in Judgment and
                  Decree dated March 21, 1975 by The District Court of the
                  Sixteenth Judicial District, in and for the County of Rosebud,
                  recorded March 21, 1975 in Book 19 Orders and Decree, page
                  996, records of the County Clerk and Recorder of Rosebud
                  County, Montana.

Parcel 45         Easements and rights-of-way more particularly described in
                  documents recorded in the office of the Clerk and Recorder of
                  Rosebud County, Montana, under the following Book and Page
                  numbers; which documents are incorporated herein by this
                  reference and made a part hereof:

                   Book 77 Deeds, page 29
                   Book 75 Deeds, page 306
                   Book 73 Deeds, page 430
                   Book 73 Deeds, page 466

<PAGE>   72

                   Book 74 Deeds, page 245
                   Book 78 Deeds, page 782
                   Book 78 Deeds, page 838
                   Book 74 Deeds, page 169
                   Book 74 Deeds, page 110
                   Book 74 Deeds, page 70
                   Book 77 Deeds, page 941
                   Book 78 Deeds, page 134
                   Book 79 Deeds, page 238
                   Book 74 Deeds, page 14
                   Book 74 Deeds, page 65
                   Book 74 Deeds, page 112
                   Book 79 Deeds, page 240
                   Book 74 Deeds, page 62
                   Book 74 Deeds, page 67
                   Book 74 Deeds, page 242
                   Book 73 Deeds, page 891
                   Book 73 Deeds, page 893
                   Book 73 Deeds, page 284
                   Book 78 Deeds, page 131
                   Book 32 Misc., page 476

<PAGE>   73
                                                                       EXHIBIT B
                                                                              TO
                                                                  FACILITY LEASE

                               DESCRIPTION OF UNIT

Unit 3

         Unit 3 consists of Colstrip Unit No. 3, a 805 MW (gross capacity)
coal-fired steam electric generating unit, located on the Unit 3 Site in Rosebud
County, Montana, including, without limitation, the assets described in Schedule
B-1 hereto, but excluding the Common Facilities.

<PAGE>   74
                                                                      Ex. 4.8(a)

                                              Unit 3
                                              FERC Account 311
                                                                    SCHEDULE B-1

<TABLE>
<CAPTION>

                                              COST
                                              CODE        DESCRIPTION
--------------------------------------------------------------------------------
<S>                                           <C>       <C>
   3A BOILER BUILDING                         1510      CONC. BASE SLAB FD
   3A BOILER BUILDING                         1511      CONC.GRADE BEAMS
   3A BOILER BUILDING                         1540      CONC. SUMPS & PIT
   3A BOILER BUILDING                         1598      CAISSONS
   3A BOILER BUILDING                         2110      BUILDING FRAME
   3A BOILER BUILDING                         2190      CORTEN STEEL
   3A BOILER BUILDING                         2511      METAL SIDING
   3A BOILER BUILDING                         2522      BUILT-UP ROOFING
   3A BOILER BUILDING                         2532      CONC. BLOCK WALLS
   3A BOILER BUILDING                         2541      METAL PARTITIONS
   3A BOILER BUILDING                         2551      DOORS/FRAMES/HARD
   3A BOILER BUILDING                         2555      VERTICAL LIFTDOORS
   3A BOILER BUILDING                         4461      AIR-PREHEAT GLY/EQ
   3A BOILER BUILDING                         4833      MISC CRANES/HOISTS
   3A BOILER BUILDING                         4833      MISC CRANES/HOISTS
   3A BOILER BUILDING                         4833      MISC CRANES/HOISTS
   3A BOILER BUILDING                         4834      FLD PURCH HOISTS
   3A BOILER BUILDING                         4851      FIRE PROTECTION
   3A BOILER BUILDING                         4852      CO2 SYSTEM
   3A BOILER BUILDING                         4871      ELEVATORS
   3A BOILER BUILDING                         4911      HVAC DUCTWORK
   3A BOILER BUILDING                         4911      HVAC DUCTWORK
   3A BOILER BUILDING                         4911      HVAC DUCTWORK
   3A BOILER BUILDING                         4912      HVAC EQUIPMENT
   3A BOILER BUILDING                         4912      HVAC EQUIPMENT
   3A BOILER BUILDING                         4912      HVAC EQUIPMENT
   3A BOILER BUILDING                         4913      HVAC CONTROL/INSTR
   3A BOILER BUILDING                         7610      LIGHTING FIXTURES
   3C TURBINE BUILDING                        1510      CONC. BASE SLAB FD
   3C TURBINE BUILDING                        1511      CONC. GRADE BEAMS
   3C TURBINE BUILDING                        1531      CONC. ELEV. SLABS
   3C TURBINE BUILDING                        1540      CONC. SUMPS & PIT
   3C TURBINE BUILDING                        1598      CAISSONS
   3C TURBINE BUILDING                        2110      BUILDING FRAME
   3C TURBINE BUILDING                        2120      TURBINE PED TRUSS
   3C TURBINE BUILDING                        2190      CORTEN STEEL
   3C TURBINE BUILDING                        2511      METAL SIDING
   3C TURBINE BUILDING                        2513      PRECAST CONCRETE
   3C TURBINE BUILDING                        2522      BUILT-UP ROOFING
   3C TURBINE BUILDING                        2532      CONC. BLOCK WALLS
   3C TURBINE BUILDING                        2549      ARCH. FINISH
   3C TURBINE BUILDING                        2551      DOORS/FRAMES/HARD
   3C TURBINE BUILDING                        4834      FLD PURCH HOISTS
   3C TURBINE BUILDING                        4851      FIRE PROTECTION
   3C TURBINE BUILDING                        4852      CO2 SYSTEM
   3C TURBINE BUILDING                        4911      HVAC DUCTWORK
   3C TURBINE BUILDING                        4911      HVAC DUCTWORK
</TABLE>
<PAGE>   75
                                              Unit 3
                                              FERC Account 311
                                                                    SCHEDULE B-1

<TABLE>
<CAPTION>

                                              COST
                                              CODE        DESCRIPTION
--------------------------------------------------------------------------------

<S>                                           <C>       <C>
   3C TURBINE BUILDING                        4911      HVAC DUCTWORK
   3C TURBINE BUILDING                        4912      HVAC EQUIPMENT
   3C TURBINE BUILDING                        4912      HVAC EQUIPMENT
   3C TURBINE BUILDING                        4912      HVAC EQUIPMENT
   3C TURBINE BUILDING                        4912      HVAC EQUIPMENT
   3C TURBINE BUILDING                        4912      HVAC EQUIPMENT
   3C TURBINE BUILDING                        4912      HVAC EQUIPMENT
   3C TURBINE BUILDING                        4913      HVAC CONTROL/INSTR
   3C TURBINE BUILDING                        6231      LOCAL ELEC. PANELS
   3C TURBINE BUILDING                        7610      LIGHTING FIXTURES
   3C TURBINE BUILDING                        8110      CABLE TRAY/FITTING
   3C TURBINE BUILDING                        8221      TOT COND-PWR & CON
   3C TURBINE BUILDING                        8411      P&C W&C ALL SIZES
   3GA PLANT HEATING                          4363      HTG CIRC PUMPS/DRIV
   3GA PLANT HEATING                          4894      EQUIPMENT INSULAT
   3GA PLANT HEATING                          4894      EQUIPMENT INSULAT
   3GA PLANT HEATING                          4894      EQUIPMENT INSULAT
   3GA PLANT HEATING                          5111      2.5-4 CARBON STEEL
   3GA PLANT HEATING                          5121      6-8 CARBON STEEL
   3GA PLANT HEATING                          5131      10-14 CARBON STEEL
   3GA PLANT HEATING                          5531      2 & U CARBON ST-CS
   3GA PLANT HEATING                          5910      LARGE PIPE HANGRS
   3GA PLANT HEATING                          6141      INSTRUMENTS
   3GA PLANT HEATING                          6170      INSTR. PIPE & TUBE
   3GA PLANT HEATING                          8411      P&C W&C ALL SIZES
   3GE BOILER AND TURBINE BUILDING H          6141      INSTRUMENTS
   3GE BOILER AND TURBINE BUILDING H          6170      INSTR. PIPE & TUBE
   3GE BOILER AND TURBINE BUILDING H          8411      P&C W&C ALL SIZES
   3GJ EVAPORATIVE COOLING WATER              4571      OTHER MISC TANKS
   3GJ EVAPORATIVE COOLING WATER              4912      HVAC EQUIPMENT
   3GJ EVAPORATIVE COOLING WATER              5114      2.5-4 STAINLESS
   3GJ EVAPORATIVE COOLING WATER              5534      2 & U STAIN ST-SS
   3GJ EVAPORATIVE COOLING WATER              5561      2 & U COPP & BRASS
   3GJ EVAPORATIVE COOLING WATER              5910      LARGE PIPE HANGRS
   3GJ EVAPORATIVE COOLING WATER              6141      INSTRUMENTS
   3GJ EVAPORATIVE COOLING WATER              6170      INSTR. PIPE & TUBE
   3KC FIRE PROTECTION                        5111      2.5-4 CARBON STEEL
   3KC FIRE PROTECTION                        5121      6-8 CARBON STEEL
   3KC FIRE PROTECTION                        5131      10-14 CARBON STEEL
   3KC FIRE PROTECTION                        5414      2.5-4 CASTIRON PIP
   3KC FIRE PROTECTION                        5416      2.5-4.0/GALVAN PIP
   3KC FIRE PROTECTION                        5424      6-8/CAST IRON PIPE
   3KC FIRE PROTECTION                        5426      6-8/GALVANIZED CS
   3KC FIRE PROTECTION                        5434      10-14/CASTIRON PIP
   3KC FIRE PROTECTION                        5436      10-14/GALVANIZ CS
   3KC FIRE PROTECTION                        5457      20-30/F/REIN EPOXY
</TABLE>
<PAGE>   76
                                              Unit 3
                                              FERC Account 311
                                                                    SCHEDULE B-1

<TABLE>
<CAPTION>

                                              COST
                                              CODE        DESCRIPTION
--------------------------------------------------------------------------------
<S>                                           <C>       <C>
   3KC FIRE PROTECTION                        5531      2 & U CARBON ST-CS
   3KC FIRE PROTECTION                        5910      LARGE PIPE HANGRS
   3KC FIRE PROTECTION                        6141      INSTRUMENTS
   3KC FIRE PROTECTION                        6170      INSTR. PIPE & TUBE
   3KF MISC. CRANES, HOISTS, ELEV.            4832      TURB BRIDGE CRANE
   3KF MISC. CRANES, HOISTS, ELEV.            4833      MISC CRANES/HOISTS
   3KF MISC. CRANES, HOISTS, ELEV.            8411      P&C W&C ALL SIZES
   3LB STORM DRAINAGE                         5131      10-14 CARBON STEEL
   3LB STORM DRAINAGE                         5414      2.5-4 CASTIRON PIPE
   3LB STORM DRAINAGE                         5416      2.5-4.0/GALVAN PIPE
   3LB STORM DRAINAGE                         5424      6-8/CAST IRON PIPE
   3LB STORM DRAINAGE                         5426      6-8/GALVANIZED CS
   3LB STORM DRAINAGE                         5434      10-14/CASTIRON PIP
   3LB STORM DRAINAGE                         5435      10-14/REIN CONC.P
   3LB STORM DRAINAGE                         5436      10-14/GALVANIZ CS
   3LB STORM DRAINAGE                         5444      16-18/CASTIRON PIP
   3LB STORM DRAINAGE                         5445      16-18/REI/CONC PIP
   3LB STORM DRAINAGE                         5455      20-30/RE/CONC PIPE
   3LB STORM DRAINAGE                         5910      LARGE PIPE HANGRS
   3LD CHEMICAL WASTE DRAINAGE                5414      2.5-4 CASTIRON PIP
   3LD CHEMICAL WASTE DRAINAGE                5434      10-14/CASTIRON PIP
   3LD CHEMICAL WASTE DRAINAGE                5534      2 & U STAIN ST-SS
   3LD CHEMICAL WASTE DRAINAGE                5569      2 & U MISC. OTHER
   3LE OILY WASTE DRAINAGE                    5414      2.5-4 CASTIRON PIP
   3LE OILY WASTE DRAINAGE                    5424      6-8/CAST IRON PIPE
   3LF GRAVITY COLLECTION DRAINAGE            1504      CONC. PIPE SUPPRTS
   3LF GRAVITY COLLECTION DRAINAGE            4367      MISC. SUMP PMPS/DR
   3LF GRAVITY COLLECTION DRAINAGE            5111      2.5-4 CARBON STEEL
   3LF GRAVITY COLLECTION DRAINAGE            5131      10-14 CARBON STEEL
   3LF GRAVITY COLLECTION DRAINAGE            5414      2.5-4 CASTIRON PIP
   3LF GRAVITY COLLECTION DRAINAGE            5416      2.5-4.0/GALVAN PIP
   3LF GRAVITY COLLECTION DRAINAGE            5423      6-8/CS LINED PIPE
   3LF GRAVITY COLLECTION DRAINAGE            5424      6-8/CAST IRON PIPE
   3LF GRAVITY COLLECTION DRAINAGE            5425      6-8/REIN CONC.PIPE
   3LF GRAVITY COLLECTION DRAINAGE            5426      6-8/GALVANIZED CS
   3LF GRAVITY COLLECTION DRAINAGE            5433      10-14/CS LINED PIP
   3LF GRAVITY COLLECTION DRAINAGE            5434      10-14/CASTIRON PIP
   3LF GRAVITY COLLECTION DRAINAGE            5435      10-14/REIN CONC.P
   3LF GRAVITY COLLECTION DRAINAGE            5445      16-18/REI/CONC PIP
   3LF GRAVITY COLLECTION DRAINAGE            5531      2 & U CARBON ST-CS
   3LF GRAVITY COLLECTION DRAINAGE            5569      2 & U MISC. OTHER
   3LF GRAVITY COLLECTION DRAINAGE            5910      LARGE PIPE HANGRS
   3LF GRAVITY COLLECTION DRAINAGE            6141      INSTRUMENTS
   3LF GRAVITY COLLECTION DRAINAGE            6170      INSTR PIPE & TUBE
   3LF GRAVITY COLLECTION DRAINAGE            8411      P&C W&C ALL SIZES
   3QA NORMAL LIGHTING                        7620      LIGHT TRANSFRM/PAN
   3QA NORMAL LIGHTING                        8411      P&C W&C ALL SIZES
</TABLE>
<PAGE>   77
                                              Unit 3
                                              FERC Account 311

<TABLE>
<CAPTION>

                                              COST
                                              CODE        DESCRIPTION
--------------------------------------------------------------------------------
<S>                                           <C>       <C>
   3QF IN PLANT COMMUNICATIONS                7630      COMMUNICA EQUIP
   3QH CATHODIC PROTECTION                    1509      CONC. MISC FOUND.
   3QH CATHODIC PROTECTION                    7670      CATHODIC PROT EQUI
   3QH CATHODIC PROTECTION                    8411      P&C W&C ALL SIZES
   3QJ FREEZER PROTECTION                     7650      HEAT TRACE EQUIP
   3RC SAMPLE SYSTEM                          5531      2 & U CARBON ST-CS
   3RC SAMPLE SYSTEM                          5534      2 & U STAIN ST-SS
   3RC SAMPLE SYSTEM                          5569      2 & U MISC. OTHER
   3RC SAMPLE SYSTEM                          8411      P&C W&C ALL SIZES
</TABLE>
<PAGE>   78
                                          Unit 3

                                          FERC Account 311.2
<TABLE>
<CAPTION>
                                            COST
                                            CODE      DESCRIPTION
--------------------------------------------------------------------------------
<S>                                         <C>       <C>
3GA PLANT HEATING                           4894      EQUIPMENT INSULAT
3GA PLANT HEATING                           4894      EQUIPMENT INSULAT
3GA PLANT HEATING                           4894      EQUIPMENT INSULAT
3GA PLANT HEATING                           5111      2.5-4 CARBON STEEL
3GA PLANT HEATING                           5121      6-8 CARBON STEEL
3GA PLANT HEATING                           5131      10-14 CARBON STEEL
3GA PLANT HEATING                           5531      2 & U CARBON ST-CS
3GA PLANT HEATING                           5910      LARGE PIPE HANGRS
3GA PLANT HEATING                           6141      INSTRUMENTS
3GA PLANT HEATING                           6170      INSTR. PIPE & TUBE
3GA PLANT HEATING                           8411      P&C W&C ALL SIZES
3GJ EVAPORATIVE COOLING WATE                4912      HVAC EQUIPMENT
3GJ EVAPORATIVE COOLING WATE                5114      2.5-4 STAINLESS
3GJ EVAPORATIVE COOLING WATE                5534      2 & U STAIN ST-SS
3GJ EVAPORATIVE COOLING WATE                5561      2 & U COPP & BRASS
3GJ EVAPORATIVE COOLING WATE                5910      LARGE PIPE HANGRS
3GJ EVAPORATIVE COOLING WATE                6170      INSTR. PIPE & TUBE
3GR SCRUBBER BUILDING                       5531      2 & U CARBON ST-CS
3GR SCRUBBER BUILDING                       6170      INSTR. PIPE & TUBE
3GR SCRUBBER BUILDING                       8411      P&C W&C ALL SIZES
3KC FIRE PROTECTION                         5111      2.5-4 CARBON STEEL
3KC FIRE PROTECTION                         5121      6-8 CARBON STEEL
3KC FIRE PROTECTION                         5131      10-14 CARBON STEEL
3KC FIRE PROTECTION                         5414      2.5-4 CASTIRON PIP
3KC FIRE PROTECTION                         5416      2.5-4.0/GALVAN PIP
3KC FIRE PROTECTION                         5424      6-8/CAST IRON PIPE
3KC FIRE PROTECTION                         5426      6-8/GALVANIZED CS
3KC FIRE PROTECTION                         5434      10-14/CASTIRON PIP
3KC FIRE PROTECTION                         5436      10-14/GALVANIZ CS
3KC FIRE PROTECTION                         5457      20-30/F/REIN EPOXY
3KC FIRE PROTECTION                         5531      2 & U CARBON ST-CS
3KC FIRE PROTECTION                         5910      LARGE PIPE HANGRS
3KC FIRE PROTECTION                         6141      INSTRUMENTS
3KC FIRE PROTECTION                         6170      INSTR. PIPE & TUBE
3LB STORM DRAINAGE                          5131      10-14 CARBON STEEL
3LB STORM DRAINAGE                          5414      2.5-4 CASTIRON PIP
3LB STORM DRAINAGE                          5416      2.5-4.0/GALVAN PIP
3LB STORM DRAINAGE                          5424      6-8/CAST IRON PIPE
3LB STORM DRAINAGE                          5426      6-8/GALVANIZED CS
3LB STORM DRAINAGE                          5434      10-14/CASTIRON PIP
3LB STORM DRAINAGE                          5435      10-14/REIN CONC.P
3LB STORM DRAINAGE                          5436      10-14/GALVANIZ CS
3LB STORM DRAINAGE                          5444      16-18/CASTIRON PIP
3LB STORM DRAINAGE                          5445      16-18/REI/CONC PIP
3LB STORM DRAINAGE                          5455      20-30/RE/CONC PIPE
3LB STORM DRAINAGE                          5910      LARGE PIPE HANGRS
3LD CHEMICAL WASTE DRAINAGE                 5414      2.5-4 CASTIRON PIP
</TABLE>
<PAGE>   79

                                              Unit 3
                                              FERC Account 311.2

<TABLE>
<CAPTION>

                                            COST
                                            CODE        DESCRIPTION
--------------------------------------------------------------------------------
<S>                                         <C>       <C>
3LD CHEMICAL WASTE DRAINAGE                 5424      6-8/CAST IRON PIPE
3LD CHEMICAL WASTE DRAINAGE                 5534      2 & U STAIN ST-SS
3LD CHEMICAL WASTE DRAINAGE                 5569      2 & U MISC. OTHER
3LF GRAVITY COLLECTION DRAIN                1504      CONC. PIPE SUPPRTS
3LF GRAVITY COLLECTION DRAIN                4367      MISC. SUMP PMPS/DR
3LF GRAVITY COLLECTION DRAIN                5111      2.5-4 CARBON STEEL
3LF GRAVITY COLLECTION DRAIN                5131      10-14 CARBON STEEL
3LF GRAVITY COLLECTION DRAIN                5414      2.5-4 CASTIRON PIP
3LF GRAVITY COLLECTION DRAIN                5416      2.5-4.0/GALVAN PIP
3LF GRAVITY COLLECTION DRAIN                5423      6-8/CS LINED PIPE
3LF GRAVITY COLLECTION DRAIN                5424      6-8/CAST IRON PIPE
3LF GRAVITY COLLECTION DRAIN                5425      6-8/REIN CONC.PIPE
3LF GRAVITY COLLECTION DRAIN                5426      6-8/GALVANIZED CS
3LF GRAVITY COLLECTION DRAIN                5433      10-14/CS LINED PIP
3LF GRAVITY COLLECTION DRAIN                5434      10-14/CASTIRON PIP
3LF GRAVITY COLLECTION DRAIN                5435      10-14/REIN CONC.P
3LF GRAVITY COLLECTION DRAIN                5445      16-18/REI/CONC PIP
3LF GRAVITY COLLECTION DRAIN                5531      2 & U CARBON ST-CS
3LF GRAVITY COLLECTION DRAIN                5910      LARGE PIPE HANGRS
3LF GRAVITY COLLECTION DRAIN                6141      INSTRUMENTS
3LF GRAVITY COLLECTION DRAIN                6170      INSTR. PIPE & TUBE
3LF GRAVITY COLLECTION DRAIN                8411      P&C W&C ALL SIZES
3P SCRUBBER BUILDING                        1510      CONC. BASE SLAB FD
3P SCRUBBER BUILDING                        1511      CONC. GRADE BEAMS
3P SCRUBBER BUILDING                        1531      CONC. ELEV. SLABS
3P SCRUBBER BUILDING                        1540      CONC. SUMPS & PIT
3P SCRUBBER BUILDING                        1598      CAISSONS
3P SCRUBBER BUILDING                        2110      BUILDING FRAME
3P SCRUBBER BUILDING                        2131      VSSEL HOSE PENITR
3P SCRUBBER BUILDING                        2511      METAL SIDING
3P SCRUBBER BUILDING                        2522      BUILT-UP ROOFING
3P SCRUBBER BUILDING                        2532      CONC. BLOCK WALLS
3P SCRUBBER BUILDING                        2549      ARCH. FINISH
3P SCRUBBER BUILDING                        2551      DOORS/FRAMES/HARD
3P SCRUBBER BUILDING                        2555      VERTICAL LIFTDOORS
3P SCRUBBER BUILDING                        2581      EQUIP & FURNITURE
3P SCRUBBER BUILDING                        2880      FENCES & GATES
3P SCRUBBER BUILDING                        4834      FLD PURCH HOISTS
3P SCRUBBER BUILDING                        4851      FIRE PROTECTION
3P SCRUBBER BUILDING                        4852      CO2 SYSTEM
3P SCRUBBER BUILDING                        4871      ELEVATORS
3P SCRUBBER BUILDING                        4911      HVAC DUCTWORK
3P SCRUBBER BUILDING                        4911      HVAC DUCTWORK
3P SCRUBBER BUILDING                        4912      HVAC EQUIPMENT
3P SCRUBBER BUILDING                        4912      HVAC EQUIPMENT
3P SCRUBBER BUILDING                        4912      HVAC EQUIPMENT
3P SCRUBBER BUILDING                        4912      HVAC EQUIPMENT
</TABLE>
<PAGE>   80
                                              Unit 3
                                              FERC Account 311.2

<TABLE>
<CAPTION>

                                            COST
                                            CODE        DESCRIPTION
--------------------------------------------------------------------------------
<S>                                         <C>       <C>
3P SCRUBBER BUILDING                        4912      HVAC EQUIPMENT
3P SCRUBBER BUILDING                        4913      HVAC CONTROL/INSTR
3P SCRUBBER BUILDING                        7610      LIGHTING FIXTURES
3QA NORMAL LIGHTING                         7620      LIGHT TRANSFRM/PAN
3QA NORMAL LIGHTING                         8411      P&C W&C ALL SIZES
3QF IN-PLANT COMMUNICATIONS                 7630      COMMUNICA EQUIP
3QH CATHODIC PROTECTION                     1509      CONC. MISC FOUND.
3QH CATHODIC PROTECTION                     7670      CATHODIC PROT EQUI
3QH CATHODIC PROTECTION                     8411      P&C W&C ALL SIZES
3QJ FREEZER PROTECTION                      7650      HEAT TRACE EQUIP
</TABLE>
<PAGE>   81
                                                                Unit 3

                                                                FERC Account 312
<TABLE>
<CAPTION>
                                                                   COST
                                                                   CODE        DESCRIPTION
------------------------------------------------------------------------------------------------
<S>                                                                <C>       <C>
3JM BOTTOM ASH HANDLING                                            1504      CONC. PIPE SUPPRTS
3JM BOTTOM ASH HANDLING                                            1509      CONC. MISC FOUND.
3S CHIMNEY                                                         1510      CONC. BASE SLAB FD
3BA FORCE DRAFT FANS AND DUCTS                                     1584      CONC. MAJOR FAN FD
3AD CONDENSATE AND LP FWH CONDENSOR                                1586      CONC. PUMP,TK,EQUI
3AQ CONDENSATE AND FEEDWATER CHEMICAL CON                          1586      CONC. PUMP,TK,EQUI
3CF LUBE OIL STORAGE, TRANSFER AND PURIFICATI                      1586      CONC. PUMP,TK,EQUI
3CJ AUXILIARY TURBINE LUBE OIL                                     1586      CONC. PUMP,TK,EQUI
3JM BOTTOM ASH HANDLING                                            1586      CONC. PUMP,TK,EQUI
3JL COAL FEEDERS AND SILOS                                         1587      CONC.COAL MILL FD
3S CHIMNEY                                                         1598      CAISSONS
3JK YARD  AND IN-PLANT COAL HANDLING                               2150      COAL SILOS & BINS
3A BOILER BUILDING                                                 2191      BOILER STEEL 25SA
3AA STEAM GENERATOR                                                3211      BLR SUPPORT STEEL
3AA STEAM GENERATOR                                                3212      BLR DRUM COMPLEX
3AA STEAM GENERATOR                                                3213      FURNACE WALLS
3AA STEAM GENERATOR                                                3214      ECONOMIZER
3AA STEAM GENERATOR                                                3215      SUPERHEATER
3AA STEAM GENERATOR                                                3216      REHEATER
3AA STEAM GENERATOR                                                3217      BUCKSTAYS
3AA STEAM GENERATOR                                                3218      BACKPASS
3AA STEAM GENERATOR                                                3311      DOWNCOMERS
3JL COAL FEEDERS AND SILOS                                         3312      COAL PIPING
3AA STEAM GENERATOR                                                3313      BLR CIRC PUMPS
3AA STEAM GENERATOR                                                3313      BLR CIRC PUMPS
3AA STEAM GENERATOR                                                3313      BLR CIRC PUMPS
3AA STEAM GENERATOR                                                3313      BLR CIRC PUMPS
3AA STEAM GENERATOR                                                3315      CIRC PMP SUCT VLV
3AA STEAM GENERATOR                                                3315      CIRC PMP SUCT VLV
3AA STEAM GENERATOR                                                3315      CIRC PMP SUCT VLV
3AA STEAM GENERATOR                                                3315      CIRC PMP SUCT VLV
3AA STEAM GENERATOR (CON'T)                                        3316      CIRC PMP DISCH VLV
3AA STEAM GENERATOR (CON'T)                                        3316      CIRC PMP DISCH VLV
3AA STEAM GENERATOR (CON'T)                                        3316      CIRC PMP DISCH VLV
3AA STEAM GENERATOR (CON'T)                                        3316      CIRC PMP DISCH VLV
3AA STEAM GENERATOR (CON'T)                                        3316      CIRC PMP DISCH VLV
3AA STEAM GENERATOR (CON'T)                                        3316      CIRC PMP DISCH VLV
3AA STEAM GENERATOR (CON'T)                                        3316      CIRC PMP DISCH VLV
3AA STEAM GENERATOR (CON'T)                                        3316      CIRC PMP DISCH VLV
3AA STEAM GENERATOR (CON'T)                                        3317      BLR VLVS AND TRIM
3JL COAL FEEDERS AND SILOS                                         3412      BOWL MILLS
3JL COAL FEEDERS AND SILOS                                         3412      BOWL MILLS
3JL COAL FEEDERS AND SILOS                                         3412      BOWL MILLS
3JL COAL FEEDERS AND SILOS                                         3412      BOWL MILLS
3JL COAL FEEDERS AND SILOS                                         3412      BOWL MILLS
3JL COAL FEEDERS AND SILOS                                         3412      BOWL MILLS
3JL COAL FEEDERS AND SILOS                                         3412      BOWL MILLS
3JL COAL FEEDERS AND SILOS                                         3412      BOWL MILLS
3JL COAL FEEDERS AND SILOS                                         3413      MILL MOTORS
3JL COAL FEEDERS AND SILOS                                         3413      MILL MOTORS
3JL COAL FEEDERS AND SILOS                                         3413      MILL MOTORS
3JL COAL FEEDERS AND SILOS                                         3413      MILL MOTORS
</TABLE>

<PAGE>   82
                                                                Unit 3

                                                                FERC Account 312

<TABLE>
<CAPTION>
                                                                   COST
                                                                   CODE        DESCRIPTION
------------------------------------------------------------------------------------------------
<S>                                                                <C>       <C>
3JL COAL FEEDERS AND SILOS                                         3413      MILL MOTORS
3JL COAL FEEDERS AND SILOS                                         3413      MILL MOTORS
3JL COAL FEEDERS AND SILOS                                         3413      MILL MOTORS
3JL COAL FEEDERS AND SILOS                                         3413      MILL MOTORS
3JL COAL FEEDERS AND SILOS                                         3413      MILL MOTORS
3JL COAL FEEDERS AND SILOS                                         3414      MILL DISCH VALVES
3JL COAL FEEDERS AND SILOS                                         3415      MILL LUBE OIL SYS
3JL COAL FEEDERS AND SILOS                                         3416      GRAVIMETRIC FEEDE
3JL COAL FEEDERS AND SILOS                                         3416      GRAVIMETRIC FEEDE
3JL COAL FEEDERS AND SILOS                                         3416      GRAVIMETRIC FEEDE
3JL COAL FEEDERS AND SILOS                                         3416      GRAVIMETRIC FEEDE
3JL COAL FEEDERS AND SILOS                                         3416      GRAVIMETRIC FEEDE
3JL COAL FEEDERS AND SILOS                                         3416      GRAVIMETRIC FEEDE
3JL COAL FEEDERS AND SILOS                                         3416      GRAVIMETRIC FEEDE
3JL COAL FEEDERS AND SILOS                                         3416      GRAVIMETRIC FEEDE
3JL COAL FEEDERS AND SILOS                                         3417      MILL GEAR REDUCER
3BA FORCE DRAFT FANS AND DUCTS                                     3418      MILL SEAL AIR
3BA FORCE DRAFT FANS AND DUCTS                                     3419      IGNITOR AIR
3FD SOOT BLOWING STEAM                                             3511      RETRAC SOOTBLOWE
3FD SOOT BLOWING STEAM                                             3512      WALL BLOWERS
3BA FORCE DRAFT FANS AND DUCTS                                     3611      AIR PREHEATERS
3BA FORCE DRAFT FANS AND DUCTS                                     3611      AIR PREHEATERS
3BA FORCE DRAFT FANS AND DUCTS                                     3611      AIR PREHEATERS
3BA FORCE DRAFT FANS AND DUCTS                                     3612      PA FANS AND DRIVES
3BA FORCE DRAFT FANS AND DUCTS                                     3612      PA FANS AND DRIVES
3BA FORCE DRAFT FANS AND DUCTS                                     3612      PA FANS AND DRIVES
3BA FORCE DRAFT FANS AND DUCTS                                     3612      PA FANS AND DRIVES
3BA FORCE DRAFT FANS AND DUCTS                                     3612      PA FANS AND DRIVES
3BA FORCE DRAFT FANS AND DUCTS                                     3613      AIR AND GAS DUCTS
3BA FORCE DRAFT FANS AND DUCTS                                     3614      WINDBOX
3AA STEAM GENERATOR (CON'T)                                        3615      SUPPORT AND GUIDES
3BA FORCE DRAFT FANS AND DUCTS                                     3616      PREHEATER BASKETS
3BA FORCE DRAFT FANS AND DUCTS                                     3616      PREHEATER BASKETS
3BA FORCE DRAFT FANS AND DUCTS                                     3711      OUTER CASING
3BA FORCE DRAFT FANS AND DUCTS                                     3712      INNER CASING
3AA STEAM GENERATOR (CON'T)                                        3713      WALL/DUCT INSUL
3BA FORCE DRAFT FANS AND DUCTS                                     3713      WALL/DUCT INSUL
3AA STEAM GENERATOR (CON'T)                                        3714      PIPE INSULATION
3BA FORCE DRAFT FANS AND DUCTS                                     3716      BOILER DOORS
3AA STEAM GENERATOR (CON'T)                                        3811      CONTROLS AND INST
3AA STEAM GENERATOR (CON'T)                                        3816      THERMOCOUPLES
3AA STEAM GENERATOR (CON'T)                                        3960      UPGRADE BOIL VALV
3AD CONDENSATE AND LP FWH CONDENSOR                                4311      MAIN FDWTR PMPS/D
3AD CONDENSATE AND LP FWH CONDENSOR                                4311      MAIN FDWTR PMPS/D
3AE FEEDWATER                                                      4311      MAIN FDWTR PMPS/D
3AE FEEDWATER                                                      4311      MAIN FDWTR PMPS/D
3AE FEEDWATER                                                      4311      MAIN FDWTR PMPS/D
3AE FEEDWATER                                                      4311      MAIN FDWTR PMPS/D
3CF LUBE OIL STORAGE, TRANSFER AND PURIFICATI                      4311      MAIN FDWTR PMPS/D
3CF LUBE OIL STORAGE, TRANSFER AND PURIFICATI                      4311      MAIN FDWTR PMPS/D
3CF LUBE OIL STORAGE, TRANSFER AND PURIFICATI                      4311      MAIN FDWTR PMPS/D
3CF LUBE OIL STORAGE, TRANSFER AND PURIFICATI                      4311      MAIN FDWTR PMPS/D
</TABLE>
<PAGE>   83
                                                                Unit 3

                                                                FERC Account 312
<TABLE>
<CAPTION>
                                                                   COST
                                                                   CODE        DESCRIPTION
------------------------------------------------------------------------------------------------
<S>                                                                <C>       <C>
3CF LUBE OIL STORAGE, TRANSFER AND PURIFICATI                      4311      MAIN FDWTR PMPS/D
3CF LUBE OIL STORAGE, TRANSFER AND PURIFICATI                      4311      MAIN FDWTR PMPS/D
3CJ AUXILIARY TURBINE LUBE OIL                                     4311      MAIN FDWTR PMPS/D
3FC AUXILIARY TURBINES                                             4311      MAIN FDWTR PMPS/D
3FC AUXILIARY TURBINES                                             4311      MAIN FDWTR PMPS/D
3FC AUXILIARY TURBINES                                             4311      MAIN FDWTR PMPS/D
3FC AUXILIARY TURBINES                                             4311      MAIN FDWTR PMPS/D
3FC AUXILIARY TURBINES                                             4311      MAIN FDWTR PMPS/D
3FC AUXILIARY TURBINES                                             4311      MAIN FDWTR PMPS/D
3FC AUXILIARY TURBINES                                             4311      MAIN FDWTR PMPS/D
3FC AUXILIARY TURBINES                                             4311      MAIN FDWTR PMPS/D
3FC AUXILIARY TURBINES                                             4311      MAIN FDWTR PMPS/D
3FC AUXILIARY TURBINES                                             4311      MAIN FDWTR PMPS/D
3FC AUXILIARY TURBINES                                             4311      MAIN FDWTR PMPS/D
3FC AUXILIARY TURBINES                                             4311      MAIN FDWTR PMPS/D
3FC AUXILIARY TURBINES                                             4311      MAIN FDWTR PMPS/D
3FC AUXILIARY TURBINES                                             4311      MAIN FDWTR PMPS/D
3FC AUXILIARY TURBINES                                             4311      MAIN FDWTR PMPS/D
3FC AUXILIARY TURBINES                                             4311      MAIN FDWTR PMPS/D
3AD CONDENSATE AND LP FWH CONDENSOR                                4314      MAIN COND/PUMPS/D
3AD CONDENSATE AND LP FWH CONDENSOR                                4314      MAIN COND/PUMPS/D
3AD CONDENSATE AND LP FWH CONDENSOR                                4314      MAIN COND/PUMPS/D
3EB CLOSED COOLING WATER                                           4324      BLR EMER CLG P/DR
3FH GLYCOL AIR PREHEATING                                          4363      HTG CIRC PMPS/DRIV
3BM BOILER BLOWDOWN SYSTEM                                         4367      MISC. SUMP PMPS/DR
3JM BOTTOM ASH HANDLING                                            4367      MISC. SUMP PMPS/DR
3JM BOTTOM ASH HANDLING                                            4368      SLUICE WTR PMPS
3JM BOTTOM ASH HANDLING                                            4368      SLUICE WTR PMPS
3BA FORCE DRAFT FANS AND DUCTS                                     4381      FD FANS/DRIVES
3BA FORCE DRAFT FANS AND DUCTS                                     4381      FD FANS/DRIVES
3BA FORCE DRAFT FANS AND DUCTS                                     4381      FD FANS/DRIVES
3BA FORCE DRAFT FANS AND DUCTS                                     4381      FD FANS/DRIVES
3BA FORCE DRAFT FANS AND DUCTS                                     4381      FD FANS/DRIVES
3AD CONDENSATE AND LP FWH CONDENSOR                                4411      FEEDWATER HEATER
3AD CONDENSATE AND LP FWH CONDENSOR                                4411      FEEDWATER HEATER
3AD CONDENSATE AND LP FWH CONDENSOR                                4411      FEEDWATER HEATER
3AD CONDENSATE AND LP FWH CONDENSOR                                4411      FEEDWATER HEATER
3AD CONDENSATE AND LP FWH CONDENSOR                                4411      FEEDWATER HEATER
3AE FEEDWATER                                                      4411      FEEDWATER HEATER
3AE FEEDWATER                                                      4411      FEEDWATER HEATER
3AE FEEDWATER                                                      4411      FEEDWATER HEATER
3AD CONDENSATE AND LP FWH CONDENSOR                                4412      DEAERATOR HTR & T
3FH GLYCOL AIR PREHEATING                                          4461      AIR-PREHEAT GLY/EQ
3FH GLYCOL AIR PREHEATING                                          4461      AIR-PREHEAT GLY/EQ
3AD CONDENSATE AND LP FWH CONDENSOR                                4555      GLAND SEAL COLL TK
3BM BOILER BLOWDOWN SYSTEM                                         4561      BOILER BLOWDOWN T
3BM BOILER BLOWDOWN SYSTEM                                         4561      BOILER BLOWDOWN T
3BM BOILER BLOWDOWN SYSTEM                                         4561      BOILER BLOWDOWN T
3BM BOILER BLOWDOWN SYSTEM                                         4561      BOILER BLOWDOWN T
3FH GLYCOL AIR PREHEATING                                          4565      GLYCOL HEAD TANKS
3AQ CONDENSATE AND FEEDWATER CHEMICAL CON                          4681      HYDRA-CYCLO EQUIP
3AQ CONDENSATE AND FEEDWATER CHEMICAL CON                          4682      AMMONIA ADD. EQU1
</TABLE>
<PAGE>   84
                                                                Unit 3

                                                                FERC Account 312
<TABLE>
<CAPTION>
                                                                   COST
                                                                   CODE        DESCRIPTION
------------------------------------------------------------------------------------------------
<S>                                                                <C>       <C>
3AQ CONDENSATE AND FEEDWATER CHEMICAL CON                          4683      PHOSPHATE ADD. EQ
3JK YARD AND IN-PLANT COAL HANDLING                                4721      IN-PLT COAL HD EQ
3JK YARD AND IN-PLANT COAL HANDLING                                4721      IN-PLT COAL HD EQ
3JK YARD AND IN-PLANT COAL HANDLING                                4721      IN-PLT COAL HD EQ
3JK YARD AND IN-PLANT COAL HANDLING                                4721      IN-PLT COAL HD EQ
3JK YARD AND IN-PLANT COAL HANDLING                                4721      IN-PLT COAL HD EQ
3JK YARD AND IN-PLANT COAL HANDLING                                4721      IN-PLT COAL HD EQ
3JK YARD AND IN-PLANT COAL HANDLING                                4721      IN-PLT COAL HD EQ
3JQ YD & IN-PLANT COAL HNDLG DUST COLLECTION                       4725      IN-PLT COAL D/COLL
3JQ YD & IN-PLANT COAL HNDLG DUST COLLECTION                       4725      IN-PLT COAL D/COLL
3JQ YD & IN-PLANT COAL HNDLG DUST COLLECTION                       4725      IN-PLT COAL D/COLL
3JQ YD & IN-PLANT COAL HNDLG DUST COLLECTION                       4725      IN-PLT COAL D/COLL
3JQ YD & IN-PLANT COAL HNDLG DUST COLLECTION                       4725      IN-PLT COAL D/COLL
3JQ YD & IN-PLANT COAL HNDLG DUST COLLECTION                       4725      IN-PLT COAL D/COLL
3JQ YD & IN-PLANT COAL HNDLG DUST COLLECTION                       4725      IN-PLT COAL D/COLL
3JM BOTTOM ASH HANDLING                                            4730      ASH HANDLING SYS
3JM BOTTOM ASH HANDLING                                            4730      ASH HANDLING SYS
3JM BOTTOM ASH HANDLING                                            4730      ASH HANDLING SYS
3JM BOTTOM ASH HANDLING                                            4730      ASH HANDLING SYS
3JM BOTTOM ASH HANDLING                                            4730      ASH HANDLING SYS
3JM BOTTOM ASH HANDLING                                            4730      ASH HANDLING SYS
3JM BOTTOM ASH HANDLING                                            4730      ASH HANDLING SYS
3JM BOTTOM ASH HANDLING                                            4730      ASH HANDLING SYS
3JM BOTTOM ASH HANDLING                                            4730      ASH HANDLING SYS
3JM BOTTOM ASH HANDLING                                            4730      ASH HANDLING SYS
31M BOTTOM ASH HANDLING                                            4730      ASH HANDLING SYS
3JM BOTTOM ASH HANDLING                                            4730      ASH HANDLING SYS
3S CHIMNEY                                                         4740      CHIMNEY SHELL
3S CHIMNEY                                                         4741      CHIMNEY LINER
3S CHIMNEY                                                         4741      CHIMNEY LINER
3S CHIMNEY                                                         4742      CHIMNEY PLATFORM
3S CHIMNEY                                                         4743      CHIMNEY LADDERS
3S CHIMNEY                                                         4744      CHIMNEY MAN-DOOR
3S CHIMNEY                                                         4745      CHIMNEY CLEAN ROO
3S CHIMNEY                                                         4746      CHIMNEY LIGHTING
3S CHIMNEY                                                         4747      CHIM AVIATION LTG
3S CHIMNEY                                                         4748      CHIM TURN'G VANES
3S CHIMNEY                                                         4749      CHIMNEY ELEVATOR
3JM BOTTOM ASH HANDLING                                            4811      BASKET STRAINERS
3FH GLYCOL AIR PREHEATING                                          4812      START-UP STRAINERS
3JM BOTTOM ASH HANDLING                                            4812      START-UP STRAINERS
3AB MAIN AND REHEAT STEAM                                          4823      ERV SILENCERS
3AA STEAM GENERATOR (CON'T)                                        4894      EQUIPMENT INSULAT
3AA STEAM GENERATOR (CON'T)                                        4894      EQUIPMENT INSULAT
3BA FORCE DRAFT FANS AND DUCTS                                     4894      EQUIPMENT INSULAT
3BA FORCE DRAFT FANS AND DUCTS                                     4894      EQUIPMENT INSULAT
3BA FORCE DRAFT FANS AND DUCTS                                     4894      EQUIPMENT INSULAT
3BA FORCE DRAFT FANS AND DUCTS                                     4894      EQUIPMENT INSULAT
3FC AUXILIARY TURBINES                                             4894      EQUIPMENT INSULAT
3FC AUXILIARY TURBINES                                             4894      EQUIPMENT INSULAT
3FC AUXILIARY TURBINES                                             4894      EQUIPMENT INSULAT
3FC AUXILIARY TURBINES                                             4894      EQUIPMENT INSULAT
</TABLE>
<PAGE>   85

                                                                Unit 3

                                                                FERC Account 312

<TABLE>
<CAPTION>
                                                                   COST
                                                                   CODE        DESCRIPTION
------------------------------------------------------------------------------------------------
<S>                                                                <C>       <C>
3FC AUXILIARY TURBINES                                             4894      EQUIPMENT INSULAT
3JL COAL FEEDERS AND SILOS                                         4894      EQUIPMENT INSULAT
3JL COAL FEEDERS AND SILOS                                         4894      EQUIPMENT INSULAT
3JL COAL FEEDERS AND SILOS                                         4894      EQUIPMENT INSULAT
3S CHIMNEY                                                         4912      HVAC EQUIPMENT
3S CHIMNEY                                                         4912      HVAC EQUIPMENT
9YY PLANT EQUIPMENT                                                4980      BOILER SCAFFOLDING
3AB MAIN AND REHEAT STEAM                                          5111      2.5-4 CARBON STEEL
3AD CONDENSATE AND LP FWH CONDENSOR                                5111      2.5-4 CARBON STEEL
3AE FEEDWATER                                                      5111      2.5-4 CARBON STEEL
3AF FEEDWATER HEATER                                               5111      2.5-4 CARBON STEEL
3AP CONDENSATE STORAGE AND TRANSFER                                5111      2.5-4 CARBON STEEL
3BA FORCE DRAFT FANS AND DUCTS                                     5111      2.5-4 CARBON STEEL
3BM BOILER BLOWDOWN SYSTEM                                         5111      2.5-4 CARBON STEEL
3CF LUBE OIL STORAGE, TRANSFER AND PURIFICATI                      5111      2.5-4 CARBON STEEL
3CJ AUXILIARY TURBINE LUBE OIL                                     5111      2.5-4 CARBON STEEL
3EB CLOSED COOLING WATER                                           5111      2.5-4 CARBON STEEL
3FB AUXILIARY STEAM                                                5111      2.5-4 CARBON STEEL
3FC AUXILIARY TURBINES                                             5111      2.5-4 CARBON STEEL
3FD SOOT BLOWING STEAM                                             5111      2.5-4 CARBON STEEL
3FH GLYCOL AIR PREHEATING                                          5111      2.5-4 CARBON STEEL
3JA AUXILIARY FUEL OIL STORAGE AND TRANSFER                        5111      2.5-4 CARBON STEEL
3JM BOTTOM ASH HANDLING                                            5111      2.5-4 CARBON STEEL
3AE FEEDWATER                                                      5114      2.5-4 STAINLESS
3AP CONDENSATE STORAGE AND TRANSFER                                5114      2.5-4 STAINLESS
3CF LUBE OIL STORAGE, TRANSFER AND PURIFICATI                      5114      2.5-4 STAINLESS
3AB MAIN AND REHEAT STEAM                                          5117      2.5-4 CROME MOLLY
3AD CONDENSATE AND LP FWH CONDENSOR                                5117      2.5-4 CROME MOLLY
3FB AUXILIARY STEAM                                                5117      2.5-4 CROME MOLLY
3AA STEAM GENERATOR (CON'T)                                        5121      6-8 CARBON STEEL
3AD CONDENSATE AND LP FWH CONDENSOR                                5121      6-8 CARBON STEEL
3AE FEEDWATER                                                      5121      6-8 CARBON STEEL
3AF FEEDWATER HEATER                                               5121      6-8 CARBON STEEL
3AP CONDENSATE STORAGE AND TRANSFER                                5121      6-8 CARBON STEEL
3BM BOILER BLOWDOWN SYSTEM                                         5121      6-8 CARBON STEEL
3CF LUBE OIL STORAGE, TRANSFER AND PURIFICATI                      5121      6-8 CARBON STEEL
3CJ AUXILIARY TURBINE LUBE OIL                                     5121      6-8 CARBON STEEL
3EB CLOSED COOLING WATER                                           5121      6-8 CARBON STEEL
3FB AUXILIARY STEAM                                                5121      6-8 CARBON STEEL
3FC AUXILIARY TURBINES                                             5121      6-8 CARBON STEEL
3FD SOOT BLOWING STEAM                                             5121      6-8 CARBON STEEL
3FH GLYCOL AIR PREHEATING                                          5121      6-8 CARBON STEEL
3JA AUXILIARY FUEL OIL STORAGE AND TRANSFER                        5121      6-8 CARBON STEEL
3AB MAIN AND REHEAT STEAM                                          5124      6-8STAINLESS STEEL
3AD CONDENSATE AND LP FWH CONDENSOR                                5124      6-8STAINLESS STEEL
3AE FEEDWATER                                                      5124      6-8STAINLESS STEEL
3AP CONDENSATE STORAGE AND TRANSFER                                5124      6-8STAINLESS STEEL
3FB AUXILIARY STEAM                                                5124      6-8STAINLESS STEEL
3FC AUXILIARY TURBINES                                             5124      6-8STAINLESS STEEL
3AB MAIN AND REHEAT STEAM                                          5131      10-14 CARBON STEEL
3AD CONDENSATE AND LP FWH CONDENSOR                                5131      10-14 CARBON STEEL
3AE FEEDWATER                                                      5131      10-14 CARBON STEEL
</TABLE>
<PAGE>   86
                                                                Unit 3

                                                                FERC Account 312

<TABLE>
<CAPTION>
                                                                   COST
                                                                   CODE        DESCRIPTION
------------------------------------------------------------------------------------------------
<S>                                                                <C>       <C>
3AF FEEDWATER HEATER                                               5131      10-14 CARBON STEEL
3AP CONDENSATE STORAGE AND TRANSFER                                5131      10-14 CARBON STEEL
3BA FORCE DRAFT FANS AND DUCTS                                     5131      10-14 CARBON STEEL
3BM BOILER BLOWDOWN SYSTEM                                         5131      10-14 CARBON STEEL
3EB CLOSED COOLING WATER                                           5131      10-14 CARBON STEEL
3FB AUXILIARY STEAM                                                5131      10-14 CARBON STEEL
3FC AUXILIARY TURBINES                                             5131      10-14 CARBON STEEL
3FD SOOT BLOWING STEAM                                             5131      10-14 CARBON STEEL
3FH GLYCOL AIR PREHEATING                                          5131      10-14 CARBON STEEL
3JA AUXILIARY FUEL OIL STORAGE AND TRANSFER                        5131      10-14 CARBON STEEL
3JM BOTTOM ASH HANDLING                                            5131      10-14 CARBON STEEL
3AD CONDENSATE AND LP FWH CONDENSOR                                5134      10-14 STAINLESS
3AP CONDENSATE STORAGE AND TRANSFER                                5134      10-14 STAINLESS
3AD CONDENSATE AND LP FWH CONDENSOR                                5137      10-14 CROME MOLLY
3FB AUXILIARY STEAM                                                5139      10-14 CROME MOLLY
3AD CONDENSATE AND LP FWH CONDENSOR                                5141      16-18 CARBON STEEL
3AE FEEDWATER                                                      5141      16-18 CARBON STEEL
3AF FEEDWATER HEATER                                               5141      16-18 CARBON STEEL
3FB AUXILIARY STEAM                                                5141      16-18 CARBON STEEL
3FC AUXILIARY TURBINES                                             5141      16-18 CARBON STEEL
3FH GLYCOL AIR PREHEATING                                          5141      16-18 CARBON STEEL
3JM BOTTOM ASH HANDLING                                            5141      16-18 CARBON STEEL
3AF FEEDWATER HEATER                                               5147      16-18 CROME MOLLY
3AB MAIN AND REHEAT STEAM                                          5149      16-18 CROME MOLLY
3AB MAIN AND REHEAT STEAM                                          5151      20-30 CARBON STEEL
3AD CONDENSATE AND LP FWH CONDENSOR                                5151      20-30 CARBON STEEL
3AE FEEDWATER                                                      5151      20-30 CARBON STEEL
3AF FEEDWATER HEATER                                               5151      20-30 CARBON STEEL
3BM BOILER BLOWDOWN SYSTEM                                         5151      20-30 CARBON STEEL
3FB AUXILIARY STEAM                                                5151      20-30 CARBON STEEL
3AB MAIN AND REHEAT STEAM                                          5158      20-30 CROME MOLLY
3AB MAIN AND REHEAT STEAM                                          5161      OVER 30 CARBON ST
3AD CONDENSATE AND LP FWH CONDENSOR                                5161      OVER 30 CARBON ST
3AB MAIN AND REHEAT STEAM                                          5168      OVER 30 CROME MOL
3JK YARD AND IN-PLANT COAL HANDLING                                5416      2.5-4.0/GALVAN PIP
3JM BOTTOM ASH HANDLING                                            5418      2.5-4.0/NUVALLOY
3JM BOTTOM ASH HANDLING                                            5424      6-8/CAST IRON PIPE
3JM BOTTOM ASH HANDLING                                            5428      6-8/NUVALLOY PIPE
3JM BOTTOM ASH HANDLING                                            5434      10-14/CASTIRON PIP
3JM BOTTOM ASH HANDLING                                            5444      16-18/CASTIRON PIP
3JM BOTTOM ASH HANDLING                                            5446      16-18/GALVANIZ CS
3AA STEAM GENERATOR (CON'T)                                        5531      2 & U CARBON ST-CS
3AB MAIN AND REHEAT STEAM                                          5531      2 & U CARBON ST-CS
3AD CONDENSATE AND LP FWH CONDENSOR                                5531      2 & U CARBON ST-CS
3AE FEEDWATER (CON'T)                                              5531      2 & U CARBON ST-CS
3AF FEEDWATER HEATER                                               5531      2 & U CARBON ST-CS
3AP CONDENSATE STORAGE AND TRANSFER                                5531      2 & U CARBON ST-CS
3AQ CONDENSATE AND FEEDWATER CHEMICAL CON                          5531      2 & U CARBON ST-CS
3BA FORCE DRAFT FANS AND DUCTS (CON'T)                             5531      2 & U CARBON ST-CS
3BM BOILER BLOWDOWN SYSTEM                                         5531      2 & U CARBON ST-CS
3CF LUBE OIL STORAGE, TRANSFER AND PURIFICATI                      5531      2 & U CARBON ST-CS
3CI AUXILIARY TURBINE LUBE OIL                                     5531      2 & U CARBON ST-CS
</TABLE>
<PAGE>   87
                                                                Unit 3

                                                                FERC Account 312

<TABLE>
<CAPTION>
                                                                   COST
                                                                   CODE        DESCRIPTION
------------------------------------------------------------------------------------------------
<S>                                                                <C>       <C>
3EB CLOSED COOLING WATER                                           5531      2 & U CARBON ST-CS
3FB AUXILIARY STEAM                                                5531      2 & U CARBON ST-CS
3FC AUXILIARY TURBINES                                             5531      2 & U CARBON ST-CS
3FD SOOT BLOWING STEAM                                             5531      2 & U CARBON ST-CS
3FH GLYCOL AIR PREHEATING                                          5531      2 & U CARBON ST-CS
3JA AUXILIARY FUEL OIL STORAGE AND TRANSFER                        5531      2 & U CARBON ST-CS
3JL COAL FEEDERS AND SILOS                                         5531      2 & U CARBON ST-CS
3JM BOTTOM ASH HANDLING                                            5531      2 & U CARBON ST-CS
3RC SAMPLE SYSTEM                                                  5531      2 & U CARBON ST-CS
3AE FEEDWATER (CON'T)                                              5534      2 & U STAIN ST-SS
3AP CONDENSATE STORAGE AND TRANSFER                                5534      2 & U STAIN ST-SS
3JM BOTTOM ASH HANDLING                                            5534      2 & U STAIN ST-SS
3RC SAMPLE SYSTEM                                                  5534      2 & U STAIN ST-SS
3AA STEAM GENERATOR (CON'T)                                        5537      2 & U CHRO-MOLY-CM
3AB MAIN AND REHEAT STEAM                                          5537      2 & U CHRO-MOLY-CM
3AD CONDENSATE AND LP FWH CONDENSOR                                5537      2 & U CHRO-MOLY-CM
3AE FEEDWATER (CON'T)                                              5537      2 & U CHRO-MOLY-CM
3AF FEEDWATER HEATER                                               5537      2 & U CHRO-MOLY-CM
3FB AUXILIARY STEAM                                                5537      2 & U CHRO-MOLY-CM
3FC AUXILIARY TURBINES                                             5537      2 & U CHRO-MOLY-CM
3RC SAMPLE SYSTEM                                                  5569      2 & U MISC. OTHER
3AD CONDENSATE AND LP FWH CONDENSOR                                5631      MISC. EXP. JOINTS
3AF FEEDWATER HEATER                                               5631      MISC. EXP. JOINTS
3AE FEEDWATER (CON'T)                                              5830      10-14 VALVES
3AE FEEDWATER (CON'T)                                              5830      10-14 VALVES
3AE FEEDWATER (CON'T)                                              5830      10-14 VALVES
3AE FEEDWATER (CON'T)                                              5840      16-18 VALVES
3AE FEEDWATER (CON'T)                                              5840      16-18 VALVES
3AF FEEDWATER HEATER                                               5840      16-18 VALVES
3AF FEED WATER HEATER                                              5840      16-18 VALVES
3AF FEEDWATER HEATER                                               5840      16-18 VALVES
3FB AUXILIARY STEAM                                                5840      16-18 VALVES
3FB AUXILIARY STEAM                                                5840      16-18 VALVES
3FB AUXILIARY STEAM                                                5840      16-18 VALVES
3AD CONDENSATE AND LP FWH CONDENSOR                                5850      20-30 VALVES
3AE FEEDWATER (CON'T)                                              5850      20-30 VALVES
3AE FEEDWATER (CON'T)                                              5850      20-30 VALVES
3AE FEEDWATER (CON'T)                                              5850      20-30 VALVES
3AE FEEDWATER (CON'T)                                              5850      20-30 VALVES
3AE FEEDWATER (CON'T)                                              5850      20-30 VALVES
3AE FEEDWATER (CON'T)                                              5850      20-30 VALVES
3AF FEEDWATER HEATER                                               5850      20-30 VALVES
3FB AUXILIARY STEAM                                                5850      20-30 VALVES
3FC AUXILIARY TURBINES                                             5860      30 & LARGER VALVE
3FC AUXILIARY TURBINES                                             5860      30 & LARGER VALVE
3AB MAIN AND REHEAT STEAM                                          5910      LARGE PIPE HANGRS
3AD CONDENSATE AND LP FWH CONDENSOR                                5910      LARGE PIPE HANGRS
3AE FEEDWATER (CON'T)                                              5910      LARGE PIPE HANGRS
3AF FEEDWATER HEATER                                               5910      LARGE PIPE HANGRS
3AP CONDENSATE STORAGE AND TRANSFER                                5910      LARGE PIPE HANGRS
3BA FORCE DRAFT FANS AND DUCTS (CON'T)                             5910      LARGE PIPE HANGRS
3BM BOILER BLOWDOWN SYSTEM                                         5910      LARGE PIPE HANGRS
</TABLE>
<PAGE>   88
                                                                Unit 3

                                                                FERC Account 312
<TABLE>
<CAPTION>
                                                                   COST
                                                                   CODE        DESCRIPTION
------------------------------------------------------------------------------------------------
<S>                                                                <C>       <C>
3CF LUBE OIL STORAGE, TRANSFER AND PURIFICATI                      5910      LARGE PIPE HANGRS
3CJ AUXILIARY TURBINE LUBE OIL                                     5910      LARGE PIPE HANGRS
3EB CLOSED COOLING WATER                                           5910      LARGE PIPE HANGRS
3FB AUXILIARY STEAM                                                5910      LARGE PIPE HANGRS
3FH GLYCOL AIR PREHEATING                                          5910      LARGE PIPE HANGRS
3JA AUXILIARY FUEL OIL STORAGE AND TRANSFER                        5910      LARGE PIPE HANGRS
3JM BOTTOM ASH HANDLING (CON'T)                                    5910      LARGE PIPE HANGRS
3AA STEAM GENERATOR (CON'T)                                        5920      MAJOR HANGERS
3AB MAIN AND REHEAT STEAM                                          5920      MAJOR HANGERS
3AE FEEDWATER (CON"T)                                              5920      MAJOR HANGERS
3AF FEEDWATER HEATER                                               5920      MAJOR HANGERS
3BM BOILER BLOWDOWN SYSTEM                                         5920      MAJOR HANGERS
3FC AUXILIARY TURBINES                                             5920      MAJOR HANGERS
3FD SOOT BLOWING STEAM                                             5920      MAJOR HANGERS
3FH GLYCOL AIR PREHEATING                                          5920      MAJOR HANGERS
3AA STEAM GENERATOR (CON'T)                                        6141      INSTRUMENTS
3AB MAIN AND REHEAT STEAM                                          6141      INSTRUMENTS
3AD CONDENSATE AND LP FWH CONDENSOR                                6141      INSTRUMENTS
3AE FEEDWATER (CON'T)                                              6141      INSTRUMENTS
3AF FEEDWATER HEATER                                               6141      INSTRUMENTS
3AP CONDENSATE STORAGE AND TRANSFER                                6141      INSTRUMENTS
3AQ CONDENSATE AND FEEDWATER CHEMICAL CON                          6141      INSTRUMENTS
3BA FORCE DRAFT FANS AND DUCTS (CON'T)                             6141      INSTRUMENTS
3BM BOILER BLOWDOWN SYSTEM                                         6141      INSTRUMENTS
3CF LUBE OIL STORAGE, TRANSFER AND PURIFICATI                      6141      INSTRUMENTS
3CH ELECTRO-HYDRAULIC CONTROL FLUID SYSTEM                         6141      INSTRUMENTS
3CJ AUXILIARY TURBINE LUBE OIL                                     6141      INSTRUMENTS
3EB CLOSED COOLING WATER                                           6141      INSTRUMENTS
3FB AUXILIARY STEAM                                                6141      INSTRUMENTS
3FC AUXILIARY TURBINES                                             6141      INSTRUMENTS
3FD SOOT BLOWING STEAM                                             6141      INSTRUMENTS
3FH GLYCOL AIR PREHEATING                                          6141      INSTRUMENTS
3JA AUXILIARY FUEL OIL STORAGE AND TRANSFER                        6141      INSTRUMENTS
3JK YARD AND IN-PLANT COAL HANDLING                                6141      INSTRUMENTS
3JL COAL FEEDERS AND SILOS                                         6141      INSTRUMENTS
3JM BOTTOM ASH HANDLING (CON'T)                                    6141      INSTRUMENTS
3RC SAMPLE SYSTEM                                                  6141      INSTRUMENTS
3AA STEAM GENERATOR (CON'T)                                        6170      INSTR. PIPE &TUBE
3AB MAIN AND REHEAT STEAM                                          6170      INSTR. PIPE &TUBE
3AD CONDENSATE AND LP FWH CONDENSOR                                6170      INSTR. PIPE &TUBE
3AE FEEDWATER (CON'T)                                              6170      INSTR. PIPE &TUBE
3AF FEEDWATER HEATER                                               6170      INSTR. PIPE &TUBE
3AP CONDENSATE STORAGE AND TRANSFER                                6170      INSTR. PIPE &TUBE
3AQ CONDENSATE AND FEEDWATER CHEMICAL CON                          6170      INSTR. PIPE &TUBE
3BA FORCE DRAFT FANS AND DUCTS (CON'T)                             6170      INSTR. PIPE &TUBE
3BM BOILER BLOWDOWN SYSTEM                                         6170      INSTR. PIPE &TUBE
3CF LUBE OIL STORAGE, TRANSFER AND PURIFICATI                      6170      INSTR. PIPE &TUBE
3CH ELECTRO-HYDRAULIC CONTROL FLUID SYSTEM                         6170      INSTR. PIPE &TUBE
3CJ AUXILIARY TURBINE LUBE OIL                                     6170      INSTR. PIPE &TUBE
3EB CLOSED COOLING WATER                                           6170      INSTR. PIPE &TUBE
3FB AUXILIARY STEAM                                                6170      INSTR. PIPE &TUBE
3FC AUXILIARY TURBINES                                             6170      1NSTR PIPE &TUBE
</TABLE>
<PAGE>   89
                                                                Unit 3

                                                                FERC Account 312
<TABLE>
<CAPTION>
                                                                   COST
                                                                   CODE        DESCRIPTION
------------------------------------------------------------------------------------------------
<S>                                                                <C>       <C>
3FD SOOT BLOWING STEAM                                             6170      INSTR. PIPE &TUBE
3FH GLYCOL AIR PREHEATING                                          6170      INSTR. PIPE &TUBE
3JA AUXILIARY FUEL OIL STORAGE AND TRANSFER                        6170      INSTR. PIPE &TUBE
3JL COAL FEEDERS AND SILOS                                         6170      INSTR. PIPE &TUBE
3JM BOTTOM ASH HANDLING (CON'T)                                    6170      INSTR. PIPE &TUBE
3AD CONDENSATE AND LP FWH CONDENSOR                                6175      INSTRUMENT VALVES
3AD CONDENSATE AND LP FWH CONDENSOR (CON'T)                        6175      INSTRUMENT VALVES
3AD CONDENSATE AND LP FWH CONDENSOR (CON'T)                        6175      INSTRUMENT VALVES
3AD CONDENSATE AND LP FWH CONDENSOR (CON'T)                        6175      INSTRUMENT VALVES
3AF FEEDWATER HEATER                                               6175      INSTRUMENT VALVES
3AF FEEDWATER HEATER                                               6175      INSTRUMENT VALVES
3AF FEEDWATER HEATER                                               6175      INSTRUMENT VALVES
3FB AUXILIARY STEAM                                                6175      INSTRUMENT VALVES
3FB AUXILIARY STEAM                                                6175      INSTRUMENT VALVES
3FB AUXILIARY STEAM                                                6175      INSTRUMENT VALVES
3FB AUXILIARY STEAM                                                6175      INSTRUMENT VALVES
3RB BOILER CONTROLS                                                6221      COMPUTER & AUXILI
3AP CONDENSATE STORAGE AND TRANSFER                                8221      TOT COND-PWR &CON
3CF LUBE OIL STORAGE, TRANSFER AND PURIFICATI                      8221      TOT COND-PWR &CON
3JA AUXILIARY FUEL OIL STORAGE AND TRANSFER                        8221      TOT COND-PWR &CON
3JM BOTTOM ASH HANDLING (CON'T)                                    8221      TOT COND-PWR &CON
3AA STEAM GENERATOR (CON'T)                                        8411      P&C W&C ALL SIZES
3AB MAIN AND REHEAT STEAM                                          8411      P&C W&C ALL SIZES
3AD CONDENSATE AND LP FWH CONDENSOR (CON'T)                        8411      P&C W&C ALL SIZES
3AE FEEDWATER (CON'T)                                              8411      P&C W&C ALL SIZES
3AF FEEDWATER HEATER                                               8411      P&C W&C ALL SIZES
3AP CONDENSATE STORAGE AND TRANSFER                                8411      P&C W&C ALL SIZES
3AQ CONDENSATE AND FEEDWATER CHEMICAL CON                          8411      P&C W&C ALL SIZES
3BA FORCE DRAFT FANS AND DUCTS (CON'T)                             8411      P&C W&C ALL SIZES
3BM BOILER BLOWDOWN SYSTEM                                         8411      P&C W&C ALL SIZES
3CF LUBE OIL STORAGE, TRANSFER AND PURIFICATI                      8411      P&C W&C ALL SIZES
3CH ELECTRO-HYDRAULIC CONTROL FLUID SYSTEM                         8411      P&C W&C ALL SIZES
3CJ AUXILIARY TURBINE LUBE OIL                                     8411      P&C W&C ALL SIZES
3EB CLOSED COOLING WATER                                           8411      P&C W&C ALL SIZES
3FB AUXILIARY STEAM                                                8411      P&C W&C ALL SIZES
3FC AUXILIARY TURBINES                                             8411      P&C W&C ALL SIZES
3FD SOOT BLOWING STEAM                                             8411      P&C W&C ALL SIZES
3FH GLYCOL AIR PREHEATING                                          8411      P&C W&C ALL SIZES
3JA AUXILIARY FUEL OIL STORAGE AND TRANSFER                        8411      P&C W&C ALL SIZES
3JK YARD AND IN-PLANT COAL HANDLING                                8411      P&C W&C ALL SIZES
3JL COAL FEEDERS AND SILOS                                         8411      P&C W&C ALL SIZES
3JM BOTTOM ASH HANDLING (CON'T)                                    8411      P&C W&C ALL SIZES
3JQ YD & IN-PLANT COAL HNDLG DUST COLLECTION                       8411      P&C W&C ALL SIZES
3RA BURNER CONTROLS                                                8411      P&C W&C ALL SIZES
3RB BOILER CONTROLS                                                8411      P&C W&C ALL SIZES
3RC SAMPLE SYSTEM                                                  8411      P&C W&C ALL SIZES
3AA STEAM GENERATOR (CON'T)                                        8435      P&C WIR/AC/2KV-8KV
3AD CONDENSATE AND LP FWH CONDENSOR (CON'T)                        8435      P&C WIR/AC/2KV-8KV
3JK YARD AND IN PLANT COAL HANDLING                                8435      P&C WIR/AC/2KV-8KV
3JL COAL FEEDERS AND SILOS                                         8435      P&C WIR/AC/2KV-8KV
3JM BOTTOM ASH HANDLING (CON'T)                                    8435      P&C WIR/AC/2KV-8KV
3BA FORCE DRAFT FANS AND DUCTS (CON'T))                            8445      P&C WIRE/MC/15KV
</TABLE>
<PAGE>   90
                                                                         Unit 3

                                                             FERC Account 312.2
<TABLE>
<CAPTION>

                                                             COST
                                                             CODE         DESCRIPTION
------------------------------------------------------------------------------------------------
<S>                                                          <C>       <C>
3KA COMPRESSED AIR                                           5111      2.5-4 CARBON STEEL
3KA COMPRESSED AIR                                           5114      2.5-4 STAINLESS
3KA COMPRESSED AIR                                           5121      6-8 CARBON STEEL
3KA COMPRESSED AIR                                           5124      6-8 STAINLESS STEEL
3KA COMPRESSED AIR                                           5134      10-14 STAINLESS
3KA COMPRESSED AIR                                           5411      2.5-4 CU & BRASS
3KA COMPRESSED AIR                                           5531      2 & U CARBON ST-CS
3KA COMPRESSED AIR                                           5534      2 & U STAIN ST-SS
3KA COMPRESSED AIR                                           5561      2 & U COPP & BRASS
3KA COMPRESSED AIR                                           5910      LARGE PIPE HANGRS
3KA COMPRESSED AIR                                           6141      INSTRUMENTS
3KA COMPRESSED AIR                                           6170      INSTR. PIPE &TUBE
3NA 13.8 KV POWER                                            7120      15KV SWITCH GEAR
3NA 13.8 KV POWER                                            8411      P&C W&C ALL SIZES
3NA 13.8 KV POWER                                            8441      P&C WIRE/IC/15KV
3NA 13.8 KV POWER                                            8445      P&C WIRE/MC/15KV
3NB 4.16 KV POWER                                            1588      CONC. TRANSFMR FND
3NB 4.16 KV POWER                                            7110      3KV-8KV SWITCHGEA
3NB 4.16 KV POWER                                            7340      AUXILIARY BUSDUCT
3NB 4.16 KV POWER                                            8411      P&C W&C ALL SIZES
3NB 4.16 KV POWER                                            8435      P&C WIR/AC/2KV-8KV
3NG 480 V LOAD CENTERS                                       7130      480V LOADCENTERS
3NG 480 V LOAD CENTERS                                       8411      P&C W&C ALL SIZES
3NH 480 V MOTOR CONTROL CENTERS                              7510      MTR/CONTROL CENTR
3NH 480 V MOTOR CONTROL CENTERS                              7522      LOCAL CONTROL STA
3NH 480 V MOTOR CONTROL CENTERS                              7523      480V RECEPTACLES
3NH 480 V MOTOR CONTROL CENTERS                              8411      P&C W&C ALL SIZES
3NK 125 V D.C.                                               8411      P&C W&C ALL SIZES
3NN INSTRUMENT A.C.                                          7524      INSTRUMENT AC EQ
3NN INSTRUMENT A.C.                                          8411      P&C W&C ALL SIZES
3P SCRUBBER BUILDING                                         6231      LOCAL ELEC. PANELS
3P SCRUBBER BUILDING                                         8110      CABLE TRAY/FITTING
3P SCRUBBER BUILDING                                         8221      TOT COND-PWR &CON
3P SCRUBBER BUILDING                                         8411      P&C W&C ALL SIZES
3RE STACK GAS MONITORING                                     6141      INSTRUMENTS
3RE STACK GAS MONITORING                                     8411      P&C W&C ALL SIZES
3RK PLANT ANNUNCIATOR                                        8411      P&C W&C ALL SIZES
3RM SOLID STATE INTERLOCKING LOGIC                           8411      P&C W&C ALL SIZES
3RN SCRUBBER CONTROL                                         6210      MAIN CONTROL PANE
3RN SCRUBBER CONTROL                                         6221      COMPUTER & AUXILIA
3RN SCRUBBER CONTROL                                         8411      P&C W&C ALL SIZES
3RP REMOTE MULTIPLEXING                                      8411      P&C W&C ALL SIZES
3SA SCRUBBER GAS FLOW, I.D. FANS & STACK                     1584      CONC. MAJOR FAN FD
3SA SCRUBBER GAS FLOW, I.D. FANS& STACK                      4382      ID FANS/DRIVES
3SA SCRUBBER GAS FLOW, I.D. FANS & STACK                     4382      ID FANS/DRIVES
3SA SCRUBBER GAS FLOW, I.D. FANS & STACK                     4382      ID FANS/DRIVES
3SA SCRUBBER GAS FLOW, I.D. FANS & STACK                     4382      ID FANS/DRIVES
3SA SCRUBBER GAS FLOW, I.D. FANS & STACK                     4382      ID FANS/DRIVES
3SA SCRUBBER GAS FLOW, I.D. FANS & STACK                     4382      ID FANS/DRIVES
3SA SCRUBBER GAS FLOW, I.D. FANS & STACK                     4760      REP OUTLET DAMPER
3SA SCRUBBER GAS FLOW, I.D. FANS & STACK                     4760      REP OUTLET DAMPER
</TABLE>
<PAGE>   91

                                                                         Unit 3

                                                             FERC Account 312.2
<TABLE>
<CAPTION>

                                                             COST
                                                             CODE         DESCRIPTION
------------------------------------------------------------------------------------------------
<S>                                                          <C>       <C>
3SA SCRUBBER GAS FLOW, I.D. FANS & STACK                     4760      REP OUTLET DAMPER
3SA SCRUBBER GAS FLOW, I.D. FANS & STACK                     4760      REP OUTLET DAMPER
3SA SCRUBBER GAS FLOW, I.D. FANS & STACK                     4760      REP OUTLET DAIMPER
3SA SCRUBBER GAS FLOW, I.D. FANS & STACK                     4761      SCRUBBER VESSELS
3SA SCRUBBER GAS FLOW, I.D. FANS & STACK                     4761      SCRUBBER VESSELS
3SA SCRUBBER GAS FLOW, I.D. FANS & STACK                     4763      SCRUBBER DUCT
3SA SCRUBBER GAS FLOW, I.D. FANS & STACK                     4763      SCRUBBER DUCT
3SA SCRUBBER GAS FLOW, I.D. FANS & STACK                     4763      SCRUBBER DUCT
3SA SCRUBBER GAS FLOW, I.D. FANS & STACK                     4763      SCRUBBER DUCT
3SA SCRUBBER GAS FLOW, I.D. FANS & STACK                     4763      SCRUBBER DUCT
3SA SCRUBBER GAS FLOW, I.D. FANS & STACK                     4763      SCRUBBER DUCT
3SA SCRUBBER GAS FLOW, I.D. FANS & STACK                     4764      SCR. DUCT INSULATN
3SA SCRUBBER GAS FLOW, I.D. FANS & STACK                     4764      SCR. DUCT INSULATN
3SA SCRUBBER GAS FLOW, I.D. FANS & STACK                     4766      SCBBR DUCT LINING
3SA SCRUBBER GAS FLOW, I.D. FANS & STACK                     4766      SCBBR DUCT LINING
3SA SCRUBBER GAS FLOW, I.D. FANS & STACK                     4767      SCRUBBER PLUMB-BO
3SA SCRUBBER GAS FLOW, I.D. FANS & STACK                     4767      SCRUBBER PLUMB-BO
3SA SCRUBBER GAS FLOW, I.D. FANS & STACK                     4769      SCRUBBER SILENCERS
3SA SCRUBBER GAS FLOW, I.D. FANS & STACK                     4788      SCR RXP JT SUPPORT
3SA SCRUBBER GAS FLOW, I.D. FANS & STACK                     4812      START-UP STRAINERS
3SA SCRUBBER GAS FLOW, I.D. FANS & STACK                     5111      2.5-4 CARBON STEEL
3SA SCRUBBER GAS FLOW, I.D. FANS & STACK                     5114      2.5-4 STAINLESS
3SA SCRUBBER GAS FLOW, I.D. FANS & STACK                     5531      2 & U CARBON ST-CS
3SA SCRUBBER GAS FLOW, I.D. FANS & STACK                     5534      2 & U STAIN ST-SS
3SA SCRUBBER GAS FLOW, I.D. FANS & STACK                     5632      REP ISO RINGS
3SA SCRUBBER GAS FLOW, I.D. FANS & STACK                     5910      LARGE PIPE HANGRS
3SA SCRUBBER GAS FLOW, I.D. FANS & STACK                     6141      INSTRUMENT'S
3SA SCRUBBER GAS FLOW, I.D. FANS & STACK                     6170      INSTR. PIPE &TUBE
3SA SCRUBBER GAS FLOW, I.D. FANS & STACK                     8411      P&C W&C ALL SIZES
3SA SCRUBBER GAS FLOW, I.D. FANS & STACK                     8445      P&C WIRE/MC/15KV
3SB SCRUBBER-SLURRY RECYCLE/REGENERATI                       1586      CONC. PUMP, TK, EQUI
3SB SCRUBBER-SLURRY RECYCLE/REGENERATI                       4579      AGITATORS
3SB SCRUBBER-SLURRY RECYCLE/REGENERATI                       4579      AGITATORS
3SB SCRUBBER-SLURRY RECYCLE/REGENERATI                       4579      AGITATORS
3SB SCRUBBER-SLURRY RECYCLE/REGENERATI                       4768      MIST ELIMINATORS
3SB SCRUBBER-SLURRY RECYCLE/REGENERATI                       4768      MIST ELIMINATORS
3SB SCRUBBER-SLURRY RECYCLE/REGENERATI                       4768      MIST ELIMINATORS
3SB SCRUBBER-SLURRY RECYCLE/REGENERATI                       4774      VENTURI SPRAY PMPS
3SB SCRUBBER-SLURRY RECYCLE/REGENERATI                       4776      ABSORPTION PMPS
3SB SCRUBBER-SLURRY RECYCLE/REGENERATI                       4777      EFFLUENT PUMPS
3SB SCRUBBER-SLURRY RECYCLE/REGENERATI                       4781      REGEN FEED PUMPS
3SB SCRUBBER-SLURRY RECYCLE/REGENERATI                       4781      REGEN FEED PUMPS
3SB SCRUBBER-SLURRY RECYCLE/REGENERATI                       4781      REGEN FEED PUMPS
3SB SCRUBBER-SLURRY RECYCLE/REGENERATI                       4781      REGEN FEED PUMPS
3SB SCRUBBER-SLURRY RECYCLE/REGENERATI                       4781      REGEN FEED PUMPS
3SB SCRUBBER-SLURRY RECYCLE/REGENERATI                       4782      EFFLUENT TANK
3SB SCRUBBER-SLURRY RECYCLE/REGENERATI                       4783      REGEN TANKS
3SB SCRUBBER-SLURRY RECYCLE/REGENERATI                       4811      BASKET STRAINERS
3SB SCRUBBER-SLURRY RECYCLE/REGENERATI                       4812      START-UP STRAINERS
3SB SCRUBBER-SLURRY RECYCLE/REGENERATI                       5114      2.5-4 STAINLESS
3SB SCRUBBER-SLURRY RECYCLE/REGENERATI                       5124      6.8 STAINLESS STEEL
</TABLE>
<PAGE>   92
                                                                         Unit 3

                                                             FERC Account 312.2
<TABLE>
<CAPTION>

                                                             COST
                                                             CODE         DESCRIPTION
------------------------------------------------------------------------------------------------
<S>                                                          <C>       <C>
3SB SCRUBBER-SLURRY RECYCLE/REGENERATI                       5410      2.5-4.0/RUBR HOSE
3SB SCRUBBER-SLURRY RECYCLE/REGENERATI                       5412      2.5-4.0/PVC PIPE
3SB SCRUBBER-SLURRY RECYCLE/REGENERATI                       5413      2.5-4 CS LINED PIPE
3SB SCRUBBER-SLURRY RECYCLE/REGENERATI                       5420      6-8 SCRUBBER HOSE
3SB SCRUBBER-SLURRY RECYCLE/REGENERATI                       5422      6-8/PVC PIPE
3SB SCRUBBER-SLURRY RECYCLE/REGENERATI                       5423      6-8/CS LINED PIPE
3SB SCRUBBER-SLURRY RECYCLE/REGENERATI                       5432      10-14/PVC PIPE
3SB SCRUBBER-SLURRY RECYCLE/REGENERATI                       5433      10-14/CS LINED PIP
3SB SCRUBBER-SLURRY RECYCLE/REGENERATI                       5443      I6-18/CS LINED PIP
3SB SCRUBBER-SLURRY RECYCLE/REGENERATI                       5453      20-30/CS LINED PIP
3SB SCRUBBER-SLURRY RECYCLE/REGENERATI                       5531      2 & U CARBON ST-CS
3SB SCRUBBER-SLURRY RECYCLE/REGENERATI                       5534      2 & U STAIN ST-SS
3SB SCRUBBER-SLURRY RECYCLE/REGENERATI                       5569      2 & U MISC. OTHER
3SB SCRUBBER-SLURRY RECYCLE/REGENERATI                       5631      MISC. EXP. JOINTS
3SB SCRUBBER-SLURRY RECYCLE/REGENERATI                       5910      LARGE PIPE HANGRS
3SB SCRUBBER-SLURRY RECYCLE/REGENERATI                       6141      INSTRUMENTS
3SB SCRUBBER-SLURRY RECYCLE/REGENERATI                       6170      INSTR. PIPE &-TUBE
3SB SCRUBBER-SLURRY RECYCLE/REGENERATI                       8411      P&C W&C ALL SIZES
3SB SCRUBBER-SLURRY RECYCLE/REGENERATI                       8435      P&C WIR/AC/2KV-8KV
3SC SCRUBBER-WASH TRAY AND MIST ELIMINA                      1504      CONC. PIPE SUPPRTS
3SC SCRUBBER-WASH TRAY AND MIST ELIMINA                      1509      CONC. MISC FOUND.
3SC SCRUBBER-WASH TRAY AND MIST ELIMINA                      1586      CONC. PUMP, TK, EQUI
3SC SCRUBBER-WASH TRAY AND MIST ELIMINA                      4576      WASH TRAY BLEED T
3SC SCRUBBER-WASH TRAY AND MIST ELIMINA                      4579      AGITATORS
3SC SCRUBBER-WASH TRAY AND MIST ELIMINA                      4579      AGITATORS
3SC SCRUBBER-WASH TRAY AND MIST ELIMINA                      4778      WASH TRAY PUMPS
3SC SCRUBBER-WASH TRAY AND MIST ELIMINA                      4778      WASH TRAY PUMPS
3SC SCRUBBER-WASH TRAY AND MIST ELIMINA                      4778      WASH TRAY PUMPS
3SC SCRUBBER-WASH TRAY AND MIST ELIMINA                      4784      WT RECIRC TANK
3SC SCRUBBER-WASH TRAY AND MIST ELIMINA                      4811      BASKET STRAINERS
3SC SCRUBBER-WASH TRAY AND MIST ELIMINA                      4812      START-UP STRAINERS
3SC SCRUBBER-WASH TRAY AND MIST ELIMINA                      5111      2.5-4 CARBON STEEL
3SC SCRUBBER-WASH TRAY AND MIST ELIMINA                      5114      2.5-4 STAINLESS
3SC SCRUBBER-WASH TRAY AND MIST ELIMINA                      5124      6-8 STAINLESS STEEL
3SC SCRUBBER-WASH TRAY AND MIST ELIMINA                      5134      10-14 STAINLESS
3SC SCRUBBER-WASH TRAY AND MIST ELIMINA                      5141      16-18 CARBON STEEL
3SC SCRUBBER-WASH TRAY AND MIST ELIMINA                      5144      16-18 STAINLESS
3SC SCRUBBER-WASH TRAY AND MIST ELIMINA                      5413      2.5-4 CS LINED PIP
3SC SCRUBBER-WASH TRAY AND MIST ELIMINA                      5422      6-8/PVC PIPE
3SC SCRUBBER-WASH TRAY AND MIST ELIMINA                      5423      6-8/CS LINED PIPE
3SC SCRUBBER-WASH TRAY AND MIST ELIMINA                      5427      6-8/F/REIN EPOXY
3SC SCRUBBER-WASH TRAY AND MIST ELIMINA                      5432      10-14/PVC PIPE
3SC SCRUBBER-WASH TRAY AND MIST ELIMINA                      5433      10-14/CS LINED PIP
3SC SCRUBBER-WASH TRAY AND MIST ELIMINA                      5437      10-14/F/REIN EPOXY
3SC SCRUBBER-WASH TRAY AND MIST ELIMINA                      5443      16-18/CS LINED PIP
3SC SCRUBBER-WASH TRAY AND MIST ELIMINA                      5447      16-18/F/REIN EPOXY
3SC SCRUBBER-WASH TRAY AND MIST ELIMINA                      5453      20-30/CS LINED PIP
3SC SCRUBBER-WASH TRAY AND MIST ELIMINA                      5531      2 & U CARBON ST-CS
3SC SCRUBBER-WASH TRAY AND MIST ELIMINA                      5534      2 & U STAIN ST-SS
3SC SCRUBBER-WASH TRAY AND MIST ELIMINA                      5569      2 & U MISC. OTHER
3SC SCRUBBER-WASH TRAY AND MIST ELIMINA                      5631      MISC. EXP. JOINTS
</TABLE>
<PAGE>   93
                                                                         Unit 3

                                                             FERC Account 312.2
<TABLE>
<CAPTION>

                                                             COST
                                                             CODE         DESCRIPTION
------------------------------------------------------------------------------------------------
<S>                                                          <C>       <C>
3SC SCRUBBER-WASH TRAY AND MIST ELIMINA                      5910      LARGE PIPE HANGRS
3SC SCRUBBER-WASH TRAY AND MIST ELIMINA                      6141      INSTRUMENTS
3SC SCRUBBER-WASH TRAY AND MIST ELIMINA                      6170      INSTR. PIPE &TUBE
3SC SCRUBBER-WASH TRAY AND MIST ELIMINA                      6175      INSTRUMENT VALVES
3SC SCRUBBER-WASH TRAY AND MIST ELIMINA                      6175      INSTRUMENT VALVES
3SC SCRUBBER-WASH TRAY AND MIST ELIMINA                      6175      INSTRUMENT VALVES
3SC SCRUBBER-WASH TRAY AND MIST ELIMINA                      6175      INSTRUMENT VALVES
3SC SCRUBBER-WASH TRAY AND MIST ELIMINA                      6175      INSTRUMENT VALVES
3SC SCRUBBER-WASH TRAY AND MIST ELIMINA                      6175      INSTRUMENT VALVES
3SC SCRUBBER-WASH TRAY AND MIST ELIMINA                      6175      INSTRUMENT VALVES
3SC SCRUBBER-WASH TRAY AND MIST ELIMINA                      6175      INSTRUMENT VALVES
3SC SCRUBBER-WASH TRAY AND MIST ELIMINA                      6175      INSTRUMENT VALVES
3SC SCRUBBER-WASH TRAY AND MIST ELIMINA                      6175      INSTRUMENT VALVES
3SC SCRUBBER-WASH TRAY AND MIST ELIMINA                      8221      TOT COND-PWR &CON
3SC SCRUBBER-WASH TRAY AND MIST ELIMINA                      8411      P&C W&C ALL SIZES
3SC SCRUBBER-WASH TRAY AND MIST ELIMINA                      8435      P&C WIR/AC/2KV-8KV
3SD SCRUBBER-FLUE GAS REHEATER                               4375      MISC. SCR PUMP/DRV
3SD SCRUBBER-FLUE GAS REHEATER                               4571      OTHER MISC TANKS
3SD SCRUBBER-FLUE GAS REHEATER                               4571      OTHER MISC TANKS
3SD SCRUBBER-FLUE GAS REHEATER                               4759      COND P/SCR REHEAT
3SD SCRUBBER-FLUE GAS REHEATER                               4762      FLUE GAS REHEATER
3SD SCRUBBER-FLUE GAS REHEATER                               4762      FLUE GAS REHEATER
3SD SCRUBBER-FLUE GAS REHEATER                               4762      FLUE GAS REHEATER
3SD SCRUBBER-FLUE GAS REHEATER                               4762      FLUE GAS REHEATER
3SD SCRUBBER-FLUE GAS REHEATER                               4762      FLUE GAS REHEATER
3SD SCRUBBER-FLUE GAS REHEATER                               4762      FLUE GAS REHEATER
3SD SCRUBBER-FLUE GAS REHEATER                               4812      START-UP STRAINERS
3SD SCRUBBER-FLUE GAS REHEATER                               5111      2.5-4 CARBON STEEL
3SD SCRUBBER-FLUE GAS REHEATER                               5121      6-8 CARBON STEEL
3SD SCRUBBER-FLUE GAS REHEATER                               5141      16-18 CARBON STEEL
3SD SCRUBBER-FLUE GAS REHEATER                               5531      2 & U CARBON ST-CS
3SD SCRUBBER-FLUE GAS REHEATER                               5910      LARGE PIPE HANGRS
3SD SCRUBBER-FLUE GAS REHEATER                               5920      MAJOR HANGERS
3SD SCRUBBER-FLUE GAS REHEATER                               6141      INSTRUMENTS
3SD SCRUBBER-FLUE GAS REHEATER                               6170      INSTR. PIPE &TUBE
3SD SCRUBBER-FLUE GAS REHEATER                               8411      P&C W&C ALL SIZES
3SE SCRUBBER-MAKE UP WATER                                   4370      MISC. PUMPS/DRIVES
3SE SCRUBBER-MAKE UP WATER                                   4375      MISC. SCR PUMP/DRV
3SE SCRUBBER-MAKE UP WATER                                   4571      OTHER MISC TANKS
3SE SCRUBBER-MAKE UP WATER                                   4785      SEAL WTR FLTR SKID
3SE SCRUBBER-MAKE UP WATER                                   4811      BASKET STRAINERS
3SE SCRUBBER-MAKE UP WATER                                   4812      START-UP STRAINERS
3SE SCRUBBER-MAKE UP WATER                                   5111      2.5-4 CARBON STEEL
3SE SCRUBBER-MAKE UP WATER                                   5114      2.5-4 STAINLESS
3SE SCRUBBER-MAKE UP WATER                                   5121      6-8 CARBON STEEL
3SE SCRUBBER-MAKE UP WATER                                   5124      6-8 STAINLESS STEEL
3SE SCRUBBER-MAKE UP WATER                                   5131      10-14 CARBON STEEL
3SE SCRUBBER-MAKE UP WATER                                   5134      10-14 STAINLESS
3SE SCRUBBER-MAKE UP WATER                                   5413      2.5-4 CS LINED PIP
3SE SCRUBBER-MAKE UP WATER                                   5423      6-8/CS LINED PIPE
3SE SCRUBBER-MAKE UP WATER                                   5433      10-14/CS LINED PIP
</TABLE>
<PAGE>   94
                                                                         Unit 3

                                                             FERC Account 314
<TABLE>
<CAPTION>

                                                             COST
                                                             CODE         DESCRIPTION
------------------------------------------------------------------------------------------------
<S>                                                          <C>       <C>
3SE SCRUBBER-MAKE UP WATER                                   5531      2 & U CARBON ST-CS
3SE SCRUBBER-MAKE UP WATER                                   5534      2 & U STAIN ST-SS
3SE SCRUBBER-MAKE UP WATER                                   5569      2 & U MISC. OTHER
3SE SCRUBBER-MAKE UP WATER                                   5631      MISC. EXP. JOINTS
3SE SCRUBBER-MAKE UP WATER                                   5910      LARGE PIPE HANGRS
3SE SCRUBBER-MAKE UP WATER                                   6141      INSTRUMENTS
3SE SCRUBBER MAKE UP WATER                                   6170      INSTR. PIPE &TUBE
3SE SCRUBBER-MAKE UP WATER                                   8221      TOT COND-PWR &CON
3SE SCRUBBER-MAKE UP WATER                                   8411      P&C W&C ALL SIZES
3SF SCRUBBER-DRAIN AND FLUSHING                              4367      MISC. SUMP PMPS/DR
3SF SCRUBBER-DRAIN AND FLUSHING                              4375      MISC. SCR PUMP/DRV
3SF SCRUBBER-DRAIN AND FLUSHING                              4579      AGITATORS
3SF SCRUBBER-DRAIN AND FLUSHING                              4773      SCRUBBER PUMPS
3SF SCRUBBER-DRAIN AND FLUSHING                              4812      START-UP STRAINERS
3SF SCRUBBER-DRAIN AND FLUSHING                              5114      2.5-4 STAINLESS
3SF SCRUBBER-DRAIN AND FLUSHING                              5134      10-14 STAINLESS
3SF SCRUBBER-DRAIN AND FLUSHING                              5413      2.5-4 CS LINED PIP
3SF SCRUBBER-DRAIN AND FLUSHING                              5423      6-8/CS LINED PIPE
3SF SCRUBBER-DRAIN AND FLUSHING                              5433      10-14/CS LINED PIP
3SF SCRUBBER-DRAIN AND FLUSHING                              5534      2 & U STAIN ST-SS
3SF SCRUBBER-DRAIN AND FLUSHING                              5631      MISC. EXP. JOINTS
3SF SCRUBBER-DRAIN AND FLUSHING                              5910      LARGE PIPE HANGRS
3SF SCRUBBER-DRAIN AND FLUSHING                              6141      INSTRUMENTS
3SF SCRUBBER-DRAIN AND FLUSHING                              6170      INSTR. PIPE &TUBE
3SF SCRUBBER-DRAIN AND FLUSHING                              6175      INSTRUMENT VALVES
3SF SCRUBBER-DRAIN AND FLUSHING                              8221      TOT COND-PWR &CON
3SF SCRUBBER-DRAIN AND FLUSHING                              8411      P&C W&C ALL SIZES
3SI HIGH CALCIUM LIME PREP & ALAKALI DISTR                   1586      CONC. PUMP, TK, EQUI
3SI HIGH CALCIUM LIME PREP & ALAKALI DISTR                   4812      START-UP STRAINERS
3SI HIGH CALCIUM LIME PREP & ALAKALI DISTR                   5111      2.5-4 CARBON STEEL
3SI HIGH CALCIUM LIME PREP & ALAKALI DISTR                   5121      6-8 CARBON STEEL
3SI HIGH CALCIUM LIME PREP & ALAKALI DISTR                   5412      2.5-4.0/PVC PIPE
3SI HIGH CALCIUM LIME PREP & ALAKALI DISTR                   5422      6-8/PVC PIPE
3SI HIGH CALCIUM LIME PREP & ALAKALI DISTR                   5531      2 & U CARBON ST-CS
3SI HIGH CALCIUM LIME PREP & ALAKALI DISTR                   5534      2 & U STAIN ST-SS
3SI HIGH CALCIUM LIME PREP & ALAKALI DISTR                   5569      2 & U MISC. OTHER
3SI HIGH CALCIUM LIME PREP & ALAKALI DISTR                   5910      LARGE PIPE HANGRS
3SI HIGH CALCIUM LIME PREP & ALAKALI DISTR                   6141      INSTRUMENTS
3SI HIGH CALCIUM LIME PREP & ALAKALI DISTR                   6170      INSTR. PIPE &TUBE
3SI HIGH CALCIUM LIME PREP & ALAKALI DISTR                   8221      TOT COND-PWR &CON
3SI HIGH CALCIUM LIME PREP & ALAKALI DISTR                   8411      P&C W&C ALL SIZES
</TABLE>
<PAGE>   95

                                                                         Unit 3

                                                             FERC Account 314
<TABLE>
<CAPTION>

                                                             COST
                                                             CODE         DESCRIPTION
------------------------------------------------------------------------------------------------
<S>                                                          <C>       <C>
3DA COOLING TOWER/CIRCULATING WATER                          1508      CONC. MISC/CW PIPE
3DA COOLING TOWER/CIRCULATING WATER                          1510      CONC. BASE SLAB FD
3DA COOLING TOWER/CIRCULATING WATER                          1540      CONC. SUMPS & PIT
3AC MAIN GENERATOR                                           1581      CONC. TURB PED BAS
3AC MAIN GENERATOR                                           1582      CONC. TURB PED SUP
3CD HYDROGEN SEAL OIL                                        1586      CONC. PUMP, TK, EQUI
3CF LUBE OIL STORAGE, TRANSFER AND PURIFICA                  1586      CONC. PUMP, TK, EQUI
3CG CONDENSOR AIR REMOVAL                                    1586      CONC. PUMP, TK, EQUI
3NA MAIN GENERATOR                                           1588      CONC. TRANSFMR FND
3I COOLING TOWER                                             1595      CONC. CLG TWR SLAB
3NA MAIN GENERATOR                                           1596      CONC. SWITCHYARD
3I COOLING TOWER                                             2530      EARTHWORK
3I COOLING TOWER                                             2671      FABRI FORM LINING
3I COOLING TOWER                                             2674      HYPALON CANAL LING
3AC MAIN GENERATOR                                           4110      T/G-HP TURBINE
3AC MAIN GENERATOR                                           4111      T/G-IP TURBINE
3AC MAIN GENERATOR                                           4112      T/G-LP TURBINE #1
3AC MAIN GENERATOR                                           4113      T/G-LP TURBINE #2
3AC MAIN GENERATOR                                           4114      GENERATOR
3NA MAIN GENERATOR                                           4115      T/G-VLTG REGLTR
3CH ELECTRO-HYDRAULIC CONTROL FLUID SYSTE                    4116      T/G-DEH CONTROLLER
3CB MAIN TURBINE AND GENERATOR LUBE OIL                      4117      T/G-OIL COOLERS
3EA SERVICE WATER                                            4118      T/G-H2 COOLERS
3CA STEAM SEALS AND DRAINS                                   4119      T/G-GLAND CONDENSE
3NA MAIN GENERATOR                                           4121      STATION METERING
3AD CONDENSATE AND LP FWH CONDENSOR                          4210      CONDENSOR ERECTIO
3AD CONDENSATE AND LP FWH CONDENSOR                          4210      CONDENSOR ERECTIO
3AD CONDENSATE AND LP FWH CONDENSOR                          4210      CONDENSOR ERECTIO
3AD CONDENSATE AND LP FWH CONDENSOR                          4210      CONDENSOR ERECTIO
3AD CONDENSATE AND LP FWH CONDENSOR                          4210      CONDENSOR ERECTIO
3AD CONDENSATE AND LP FWH CONDENSOR                          4210      CONDENSOR ERECTIO
3AD CONDENSATE AND LP FWH CONDENSOR                          4210      CONDENSOR ERECTIO
3AD CONDENSATE AND LP FWH CONDENSOR                          4210      CONDENSOR ERECTIO
3AD CONDENSATE AND LP FWH CONDENSOR                          4210      CONDENSOR ERECTIO
3AD CONDENSATE AND LP FWH CONDENSOR                          4210      CONDENSOR ERECTIO
3AD CONDENSATE AND LP FWH CONDENSOR                          4210      CONDENSOR ERECTIO
3AD CONDENSATE AND LP FWH CONDENSOR                          4210      CONDENSOR ERECTIO
3AD CONDENSATE AND LP FWH CONDENSOR                          4314      MAIN COND/PUMPS/DR
3AD CONDENSATE AND LP FWH CONDENSOR                          4314      MAIN COND/PUMPS/DR
3AD CONDENSATE AND LP FWH CONDENSOR                          4314      MAIN COND/PUMPS/DR
3EA SERVICE WATER                                            4321      CLOS CLG WTR PMP/D
3EB CLOSED COOLING TOWER                                     4321      CLOS CLG WTR PMP/D
3EA SERVICE WATER                                            4322      SERVICE WTR PMPS/D
3DA COOLING TOWER/CIRCULATING WATER                          4323      CIRC WTR PMPS/DR
3DA COOLING TOWER/CIRCULATING WATER                          4323      CIRC WTR PMPS/DR
3CF LUBE OIL STORAGE, TRANSFER AND PURIFICA                  4366      LUBE OIL PMPS/DRIV
3CF LUBE OIL STORAGE, TRANSFER AND PURIFICA                  4366      LUBE OIL PMPS/DRIV
3CF LUBE OIL STORAGE, TRANSFER AND PURIFICA                  4366      LUBE OIL PMPS/DRIV
3CF LUBE OIL STORAGE, TRANSFER AND PURIFICA                  4366      LUBE OIL PMPS/DRIV
</TABLE>
<PAGE>   96

                                                                         Unit 3

                                                             FERC Account 314
<TABLE>
<CAPTION>
                                                             COST
                                                             CODE         DESCRIPTION
------------------------------------------------------------------------------------------------
<S>                                                          <C>       <C>
3CF LUBE OIL STORAGE, TRANSFER AND PURIFICA                  4366      LUBE OIL PMPS/DRIV
3EB CLOSED COOLING TOWER                                     4421      CLG WTR HEAT EXCHA
3EB CLOSED COOLING TOWER                                     4421      CLG WTR HEAT EXCHA
3I COOLING TOWER                                             4480      COOLING TWR STRUCT
3I COOLING TOWER                                             4481      C.T.-PVC FILL
3I COOLING TOWER                                             4482      C.T.-PIPING
3I COOLING TOWER                                             4483      C.T.-DRIFT ELIM'RS
3I COOLING TOWER                                             4484      C.T.-BYPASS VALVE
3I COOLING TOWER                                             4485      C.T.-BYPASS STRUCT
3I COOLING TOWER                                             4486      C.T.-INLET PIPE
3I COOLING TOWER                                             4487      C.T.-BASE SLAB
3I COOLING TOWER                                             4488      C.T.-MISC STEEL
3I COOLING TOWER                                             4489      C.T.-FANS AND MTRS
3I COOLING TOWER                                             4491      C.T. STAIR ENCLOSE
3EB CLOSED COOLING TOWER                                     4521      PLANT COOL/WTR TKS
3EB CLOSED COOLING TOWER                                     4571      OTHER MISC TANKS
3DA COOLING TOWER/CIRCULATING WATER                          4685      C.W.- LOG STOPS
3DA COOLING TOWER/CIRCULATING WATER                          4811      BASKET STRAINERS
3EA SERVICE WATER                                            4811      BASKET STRAINERS
3CG CONDENSOR AIR REMOVAL                                    4812      START-UP STRAINERS
3EB CLOSED COOLING TOWER                                     4812      START-UP STRAINERS
3CG CONDENSOR AIR REMOVAL                                    4821      VACUUM PUMPS
3CA STEAM SEALS AND DRAINS                                   4894      EQUIPMENT INSULAT
3CA STEAM SEALS AND DRAINS                                   4894      EQUIPMENT INSULAT
3CA STEAM SEALS AND DRAINS                                   4894      EQUIPMENT INSULAT
3CA STEAM SEALS AND DRAINS                                   4894      EQUIPMENT INSULAT
3CE STATOR COOLING                                           4894      EQUIPMENT INSULAT
3CE STATOR COOLING                                           4894      EQUIPMENT INSULAT
3CE STATOR COOLING                                           4894      EQUIPMENT INSULAT
3CG CONDENSOR AIR REMOVAL                                    4894      EQUIPMENT INSULAT
3AD CONDENSATE AND LP FWH CONDENSOR                          5111      2.5-4 CARBON STEEL
3CA STEAM SEALS AND DRAINS                                   5111      2.5-4 CARBON STEEL
3CC GENERATOR HYDROGEN AND CARBON DIOXID                     5111      2.5-4 CARBON STEEL
3CD HYDROGEN SEAL OIL                                        5111      2.5-4 CARBON STEEL
3CF LUBE OIL STORAGE, TRANSFER AND PURIFICA                  5111      2.5-4 CARBON STEEL
3DA COOLING TOWER/CIRCULATING WATER                          5111      2.5-4 CARBON STEEL
3EB CLOSED COOLING TOWER                                     5111      2.5-4 CARBON STEEL
3CF LUBE OIL STORAGE, TRANSFER AND PURIFICA                  5114      2.5-4 STAINLESS
3AC MAIN GENERATOR                                           5117      2.5-4 CROME MOLLY
3AD CONDENSATE AND LP FWH CONDENSOR                          5117      2.5-4 CROME MOLLY
3AD CONDENSATE AND LP FWH CONDENSOR                          5121      6-8 CARBON STEEL
3CA STEAM SEALS AND DRAINS                                   5121      6-8 CARBON STEEL
3CB MAIN TURBINE AND GENERATOR LUBE OIL                      5121      6-8 CARBON STEEL
3CD HYDROGEN SEAL OIL                                        5121      6-8 CARBON STEEL
3CF LUBE OIL STORAGE, TRANSFER AND PURIFICA                  5121      6-8 CARBON STEEL
3CG CONDENSOR AIR REMOVAL                                    5121      6-8 CARBON STEEL
3EB CLOSED COOLING TOWER                                     5121      6-8 CARBON STEEL
3AD CONDENSATE AND LP FWH CONDENSOR                          5124      6-8 STAINLESS STEEL
3DA COOLING TOWER/CIRCULATING WATER                          5124      6-8 STAINLESS STEEL
</TABLE>

<PAGE>   97
                                                        Unit 3

                                                        FERC Account 314

<TABLE>
<CAPTION>
                                                            COST
                                                            CODE       DESCRIPTION
                                                            ----     ------------------
<S>                                                         <C>      <C>
3AD CONDENSATE AND LP FWH CONDENSOR                         5131     10-14 CARBON STEEL
3CA STEAM SEALS AND DRAINS                                  5131     10-14 CARBON STEEL
3CG CONDENSOR AIR REMOVAL                                   5131     10-14 CARBON STEEL
3EB CLOSED COOLING TOWER                                    5131     10-14 CARBON STEEL
3AD CONDENSATE AND LP FWH CONDENSOR                         5134     10-14 STAINLESS
3AD CONDENSATE AND LP FWH CONDENSOR                         5137     10-14 CROME MOLLY
3AD CONDENSATE AND LP FWH CONDENSOR                         5141     16-18 CARBON STEEL
3CA STEAM SEALS AND DRAINS                                  5141     16-18 CARBON STEEL
3DA COOLING TOWER/CIRCULATING WATER                         5141     16-18 CARBON STEEL
3AD CONDENSATE AND LP FWH CONDENSOR                         5151     20-30 CARBON STEEL
3AD CONDENSATE AND LP FWH CONDENSOR                         5161     OVER 30 CARBON STEE
3DA COOLING TOWER/CIRCULATING WATER                         5161     OVER 30 CARBON ST
3DA COOLING TOWER/CIRCULATING WATER (CON'                   5171     54 & 72/CS/CIRC WT
3DA COOLING TOWER/CIRCULATING WATER (CON'                   5181     108/CS/CIRC WATER
3DA COOLING TOWER/CIRCULATING WATER (CON'                   5413     2.5-4 CS LINED PIP
3EA SERVICE WATER                                           5423     6-8/CS LINED PIPE
3EA SERVICE WATER                                           5433     10-14/CS LINED PIP
3EA SERVICE WATER                                           5443     16-18/CS LINED PIP
3EA SERVICE WATER                                           5453     20-30/CS LINED PIP
3AC MAIN GENERATOR                                          5531     2 & U CARBON ST-CS
3AD CONDENSATE AND LP FWH CONDENSOR                         5531     2 & U CARBON ST-CS
3CA STEAM SEALS AND DRAINS                                  5531     2 & U CARBON ST-CS
3CB MAIN TURBINE AND GENERATOR LUBE OIL                     5531     2 & U CARBON ST-CS
3CC GENERATOR HYDROGEN AND CARBON DIOXID                    5531     2 & U CARBON ST-CS
3CD HYDROGEN SEAL OIL                                       5531     2 & U CARBON ST-CS
3CE STATOR COOLING                                          5531     2 & U CARBON ST-CS
3CF LUBE OIL STORAGE, TRANSFER AND PURIFICA                 5531     2 & U CARBON ST-CS
3CG CONDENSOR AIR REMOVAL                                   5531     2 & U CARBON ST-CS
3DA COOLING TOWER/CIRCULATING WATER (CON'                   5531     2 & U CARBON ST-CS
3EB CLOSED COOLING TOWER                                    5531     2 & U CARBON ST-CS
3RC SAMPLE SYSTEM                                           5531     2 & U CARBON ST-CS
3DA COOLING TOWER/CIRCULATING WATER (CON'                   5534     2 & U STAIN ST-SS
3RC SAMPLE SYSTEM                                           5534     2 & U STAIN ST-SS
3AC MAIN GENERATOR                                          5537     2 & U CHRO-MOLY-CM
3AD CONDENSATE AND LP FWH CONDENSOR                         5537     2 & U CHRO-MOLY-CM
3CA STEAM SEALS AND DRAINS                                  5537     2 & U CHRO-MOLY-CM
3EA SERVICE WATER                                           5569     2 & U MISC. OTHER
3RC SAMPLE SYSTEM                                           5569     2 & U MISC. OTHER
3DA COOLING TOWER/CIRCULATING WATER (CON'                   5630     CIRC WTR EXP JOINT
3AD CONDENSATE AND LP FWH CONDENSOR (CON'                   5631     MISC. EXP. JOINTS
3DA COOLING TOWER/CIRCULATING WATER (CON'                   5690     CIRC WTR MORT/LIN
3DA COOLING TOWER/CIRCULATING WATER (CON'                   5883     C/W VALVES
3DA COOLING TOWER/CIRCULATING WATER (CON'                   5883     C/W VALVES
3DA COOLING TOWER/CIRCULATING WATER (CON'                   5883     C/W VALVES
3DA COOLING TOWER/CIRCULATING WATER (CON'                   5883     C/W VALVES
3DA COOLING TOWER/CIRCULATING WATER (CON'                   5883     C/W VALVES
3DA COOLING TOWER/CIRCULATING WATER (CON'                   5883     C/W VALVES
3AD CONDENSATE AND LP FWH CONDENSOR                         5910     LARGE PIPE HANGRS
3CA STEAM SEALS AND DRAINS                                  5910     LARGE PIPE HANGRS
</TABLE>
<PAGE>   98
                                                        Unit 3

                                                        FERC Account 314

<TABLE>
<CAPTION>
                                                            CODE       DESCRIPTION
                                                            ----     ------------------
<S>                                                         <C>      <C>
3CB MAIN TURBINE AND GENERATOR LUBE OIL                     5910     LARGE PIPE HANGRS
3CC GENERATOR HYDROGEN AND CARBON DIOXID                    5910     LARGE PIPE HANGRS
3CD HYDROGEN SEAL OIL                                       5910     LARGE PIPE HANGRS
3CF LUBE OIL STORAGE, TRANSFER AND PURIFICA                 5910     LARGE PIPE HANGRS
3CG CONDENSOR AIR REMOVAL                                   5910     LARGE PIPE HANGRS
3DA COOLING TOWER/CIRCULATING WATER (CON'                   5910     LARGE PIPE HANGRS
3EA SERVICE WATER                                           5910     LARGE PIPE HANGRS
3EB CLOSED COOLING TOWER                                    5910     LARGE PIPE HANGRS
3AC MAIN GENERATOR                                          5920     MAJOR HANGERS
3CA STEAM SEALS AND DRAINS                                  5920     MAJOR HANGERS
3AC MAIN GENERATOR                                          6141     INSTRUMENTS
3AD CONDENSATE AND LP FWH CONDENSOR                         6141     INSTRUMENTS
3CA STEAM SEALS AND DRAINS                                  6141     INSTRUMENTS
3CB MAIN TURBINE AND GENERATOR LUBE OIL                     6141     INSTRUMENTS
3CC GENERATOR HYDROGEN AND CARBON DIOXID                    6141     INSTRUMENTS
3CD HYDROGEN SEAL OIL                                       6141     INSTRUMENTS
3CE STATOR COOLING                                          6141     INSTRUMENTS
3CF LUBE OIL STORAGE, TRANSFER AND PURIFICA                 6141     INSTRUMENTS
3CG CONDENSOR AIR REMOVAL                                   6141     INSTRUMENTS
3CH ELECTRO-HYDRAULIC CONTROL FLUID SYSTE                   6141     INSTRUMENTS
3DA COOLING TOWER/CIRCULATING WATER (CON'                   6141     INSTRUMENTS
3EA SERVICE WATER                                           6141     INSTRUMENTS
3EB CLOSED COOLING TOWER                                    6141     INSTRUMENTS
3AC MAIN GENERATOR                                          6170     INSTR. PIPE AND TUBE
3AD CONDENSATE AND LP FWH CONDENSOR                         6170     INSTR. PIPE &TUBE
3CA STEAM SEALS AND DRAINS                                  6170     INSTR. PIPE &TUBE
3CB MAIN TURBINE AND GENERATOR LUBE OIL                     6170     INSTR. PIPE &TUBE
3CC GENERATOR HYDROGEN AND CARBON DIOXID                    6170     INSTR. PIPE &TUBE
3CD HYDROGEN SEAL OIL                                       6170     INSTR. PIPE &TUBE
3CF LUBE OIL STORAGE, TRANSFER AND PURIFICA                 6170     INSTR. PIPE &TUBE
3CG CONDENSOR AIR REMOVAL                                   6170     INSTR. PIPE &TUBE
3CH ELECTRO-HYDRAULIC CONTROL FLUID SYSTE                   6170     INSTR. PIPE &TUBE
3DA COOLING TOWER/CIRCULATING WATER (CON'                   6170     INSTR. PIPE &TUBE
3EA SERVICE WATER                                           6170     INSTR. PIPE &TUBE
3EB CLOSED COOLING TOWER                                    6170     INSTR. PIPE &TUBE
3DA COOLING TOWER/CIRCULATING WATER (CON'                   6175     INSTRUMENT VALVES
3EA SERVICE WATER                                           6175     INSTRUMENT VALVES
3EA SERVICE WATER                                           6175     INSTRUMENT VALVES
3EA SERVICE WATER                                           6175     INSTRUMENT VALVES
3EA SERVICE WATER                                           6175     INSTRUMENT VALVES
3EA SERVICE WATER                                           6175     INSTRUMENT VALVES
3EA SERVICE WATER                                           6175     INSTRUMENT VALVES
3DA COOLING TOWER/CIRCULATING WATER (CON'                   6261     MULTIPLEX EQUIP
3DA COOLING TOWER/CIRCULATING WATER (CON'                   7110     3KV-8KV SWITCHGEAR
3DA COOLING TOWER/CIRCULATING WATER (CON'                   7110     3KV-8KV SWITCHGEAR
3DA COOLING TOWER/CIRCULATING WATER (CON'                   7120     15KV SWITCHGEAR
3NA MAIN GENERATOR                                          7230     AUXILIARY TRANSFM
3DA COOLING TOWER/CIRCULATING WATER (CON'                   7240     SUBSTA TRANSFORME
3DA COOLING TOWER/CIRCULATING WATER (CON'                   7250     GROUND RESISTORS
</TABLE>
<PAGE>   99
                                                        Unit 3

                                                        FERC Account 314

<TABLE>
<CAPTION>
                                                            CODE       DESCRIPTION
                                                            ----     ------------------
<S>                                                         <C>      <C>
3DA COOLING TOWER/CIRCULATING WATER (CON'                   7250     GROUND RESISTORS
3NA MAIN GENERATOR                                          7250     GROUND RESISTORS
3DA COOLING TOWER/CIRCULATING WATER (CON'                   7260     CURRENT LIMIT REAC
3NA MAIN GENERATOR                                          7310     MAIN ISO-PHASE BUS
3NA MAIN GENERATOR                                          7340     AUXILIARY BUSDUCT
3DA COOLING TOWER/CIRCULATING WATER (CON'                   7350     STA/SERV BUSDUCT
3I COOLING TOWER                                            81l0     CABLE TRAY/FITTING
3CF LUBE OIL STORAGE, TRANSFER AND PURIFICA                 8221     TOT COND-PWR &CON
3DA COOLING TOWER/CIRCULATING WATER (CON'                   8221     TOT COND-PWR &CON
3AC MAIN GENERATOR                                          8411     P&C W&C ALL SIZES
3AD CONDENSATE AND LP FWH CONDENSOR                         8411     P&C W&C ALL SIZES
3CA STEAM SEALS AND DRAINS                                  8411     P&C W&C ALL SIZES
3CB MAIN TURBINE AND GENERATOR LUBE OIL                     8411     P&C W&C ALL SIZES
3CC GENERATOR HYDROGEN AND CARBON DIOXID                    8411     P&C W&C ALL SIZES
3CD HYDROGEN SEAL OIL                                       8411     P&C W&C ALL SIZES
3CE STATOR COOLING                                          8411     P&C W&C ALL SIZES
3CF LUBE OIL STORAGE, TRANSFER AND PURIFICA                 8411     P&C W&C ALL SIZES
3CG CONDENSOR AIR REMOVAL                                   8411     P&C W&C ALL SIZES
3CH ELECTRO-HYDRAULIC CONTROL FLUID SYSTE                   8411     P&C W&C ALL SIZES
3DA COOLING TOWER/CIRCULATING WATER (CON'                   8411     P&C W&C ALL SIZES
3EA SERVICE WATER                                           8411     P&C W&C ALL SIZES
3EB CLOSED COOLING TOWER                                    8411     P&C W&C ALL SIZES
3NA MAIN GENERATOR                                          8411     P&C W&C ALL SIZES
3NB EXCITATION AND VOLTAGE REGULATION                       8411     P&C W&C ALL SIZES
3RB BOILER CONTROLS                                         8411     P&C W&C ALL SIZES
3RC SAMPLE SYSTEM                                           8411     P&C W&C ALL SIZES
3AD CONDENSATE AND LP FWH CONDENSOR                         8435     P&C WIR/AC/2KV-8KV
3DA COOLING TOWER/CIRCULATING WATER (CON'                   8435     P&C WIR/AC/2KV-8KV
3EA SERVICE WATER                                           8435     P&C WIR/AC/2KV-8KV
3NA MAIN GENERATOR                                          8441     P&C WIRE/IC/ 15KV
3DA COOLING TOWER/CIRCULATING WATER (CON'                   8445     P&C WIRE/MC/ 15KV
</TABLE>
<PAGE>   100
                                                        Unit 3

                                                        FERC Account 315

<TABLE>
<CAPTION>

                                                            CODE       DESCRIPTION
                                                            ----     ------------------
<S>                                                         <C>      <C>
3A BOILER BUILDING                                          6231     LOCAL ELEC. PANELS
3A BOILER BUILDING                                          8110     CABLE TRAY/FITTING
3A BOILER BUILDING                                          8221     TOT COND-PWR &CO
3A BOILER BUILDING                                          8411     P&C W&C ALL SIZES
3NA 13.8 KV POWER                                           7120     15 KV SWITCHGEAR
3NA 13.8 KV POWER                                           7260     CURRENT LIMIT REAC
3NA 13.8 KV POWER                                           8411     P&C W&C ALL SIZES
3NA 13.8 KV POWER                                           8441     P&C WIRE/IC/ 15KV
3NA 13.8 KV POWER                                           8445     P&C WIRE/MC/ 15KV
3NB 4.16 KV POWER                                           1588     CONC. TRANSFMR FN
3NB 4.16 KV POWER                                           7110     3KV-8KV SWITCHGEA
3NB 4.16 KV POWER                                           7260     CURRENT LIMIT REAC
3NB 4.16 KV POWER                                           7340     AUXILIARY BUSDUCT
3NB 4.16 KV POWER                                           8411     P&C W&C ALL SIZES
3NB 4.16 KV POWER                                           8435     P&C WIR/AC/2KV-8KV
3NG 480 VOLT LOAD CENTER                                    7130     480V LOADCENTERS
3NG 480 VOLT LOAD CENTER                                    8411     P&C W&C ALL SIZES
3NH 480 VOLT MOTOR CONTROL CEN                              7510     MTR/CONTROL CENT
3NH 480 VOLT MOTOR CONTROL CEN                              7522     LOCAL CONTROL STA
3NH 480 VOLT MOTOR CONTROL CEN                              7523     480V RECEPTACLES
3NH 480 VOLT MOTOR CONTROL CEN                              8411     P&C W&C ALL SIZES
3NJ 250 V D.C.                                              8411     P&C W&C ALL SIZES
3NK 125 V D.C.                                              7410     BATTERIES & RACKS
3NK 125 V D.C.                                              7410     BATTERIES & RACKS
3NK 125 V D.C.                                              7410     BATTERIES & RACKS
3NK 125 V D.C.                                              7410     BATTERIES & RACKS
3NK 125 V D.C.                                              7420     BATTERY CHARGERS
3NK 125 V D.C.                                              7420     BATTERY CHARGERS
3NK 125 V D.C.                                              7420     BATTERY CHARGERS
3NK 125 V D.C.                                              7420     BATTERY CHARGERS
3NK 125 V D.C.                                              7420     BATTERY CHARGERS
3NK 125 V D.C.                                              7420     BATTERY CHARGERS
3NK 125 V D.C.                                              7420     BATTERY CHARGERS
3NK 125 V D.C.                                              7420     BATTERY CHARGERS
3NK 125 V D.C.                                              7460     DC DISTRIB/EQUIP
3NK 125 V D.C.                                              7460     DC DISTRIB/EQUIP
3NK 125 V D.C.                                              7460     DC DISTRIB/EQUIP
3NK 125 V D.C.                                              7460     DC DISTRIB/EQUIP
3NK 125 V D.C.                                              7460     DC DISTRIB/EQUIP
3NK 125 V D.C.                                              8411     P&C W&C ALL SIZES
3NN INSTRUMENT A.C.                                         7524     INSTRUMENT AC EQ
3NN INSTRUMENT A.C.                                         8411     P&C W&C ALL SIZES
3RK PLANT ANNUNCIATOR                                       6210     MAIN CONTROL PANE
3RK PLANT ANNUNCIATOR                                       8411     P&C W&C ALL SIZES
3RN SOLID STATE INTERLOCKING LO                             6221     COMPUTER & AUXILI
3RN SOLID STATE INTERLOCKING LO                             8411     P&C W&C ALL SIZES
3RP REMOTE MULTIPLEXING                                     6261     MULTIPLEX EQUIP
</TABLE>
<PAGE>   101
                                                        Unit 3

                                                        FERC Account 315

<TABLE>
<CAPTION>

                                                            CODE       DESCRIPTION
                                                            ----     ------------------

<S>                                                         <C>      <C>
3RP REMOTE MULTIPLEXING                                     8411     P&C W&C ALL SIZES
</TABLE>
<PAGE>   102
                                                        Unit 3

                                                        FERC Account 316

<TABLE>
<CAPTION>
                                                            COST
                                                            CODE       DESCRIPTION
                                                            ----     ------------------
<S>                                                         <C>      <C>
3KA COMPRESSED AIR                                          5111     2.5-4 CARBON STEEL
3KA COMPRESSED AIR                                          5114     2.5-4 STAINLESS
3KA COMPRESSED AIR                                          5121     6-8 CARBON STEEL
3KA COMPRESSED AIR                                          5124     6-8STAINLESS STEEL
3KA COMPRESSED AIR                                          5134     10-14 STAINLESS
3KA COMPRESSED AIR                                          5411     2.5-4 CU & BRASS
3KA COMPRESSED AIR                                          5531     2 & U CARBON ST-CS
3KA COMPRESSED AIR                                          5534     2 & U STAIN ST-SS
3KA COMPRESSED AIR                                          5561     2 & U COPP & BRASS
3KA COMPRESSED AIR                                          5910     LARGE PIPE HANGRS
3KA COMPRESSED AIR                                          6141     INSTRUMENTS
3KA COMPRESSED AIR                                          6170     INSTR. PIPE &TUBE
3RL ACCELERATION TREND RELAY                                6325     ACCEL TREND RLAY
3RO FREQUENCY DURATION RELAY                                6331     FREQ DUR RELAY
3RQ MISCELLANEOUS POWER PLANT EQUIPM                        6332     APPOR COMP AUTOM
</TABLE>
<PAGE>   103
                                                                       EXHIBIT C
                                                                              TO
                                                                  FACILITY LEASE

                        DESCRIPTION OF COMMON FACILITIES

Common Facilities 3-4

         The Common Facilities 3-4 consists of all items of property,
constructed or installed for use by Units 3 and 4 in common pursuant to the
Ownership Agreement 3-4, and shall include, without limitation, the assets
described in Schedule C-1 hereto, other than those items listed on such schedule
that are required for use by Units 1 and 2 and Units 3 and 4 in common pursuant
to the Common Facilities Agreement.

Common Facilities 1-2-3-4

The Common Facilities 1-2-3-4 consists of all items of property, constructed or
installed for use by both of Units 1 and 2 and Units 3 and 4 in common pursuant
to the Common Facilities Agreement, and shall include, without limitation, the
Yellowstone river pumping plant, the surge pond, the environmental building, the
warehouse, the machine shop, the auto shop, the training center, the
administration building, the auxiliary services building, the garage/warehouse,
the meteorological and air quality monitoring structures, and each of the other
assets described in Schedule C-1 hereto to be used by both of Units 1 and 2 and
Units 3 and 4 in common pursuant to the Common Facilities Agreement, other than
the Common Facilities 1-2.
<PAGE>   104
                                                                    SCHEDULE C-1

                                                       Common Facilities 3-4 and
                                                       Common Facilities 1-2-3-4

                                                       FERC Account 311

<TABLE>
<CAPTION>
                                                     COST
                                                     CODE       DESCRIPTION
                                                     ----    ------------------
<S>                                                  <C>     <C>
    3AL RIVER WATER PIPELINE                         2910    RIVER INTAKE DREDG
    3AL RIVER WATER PIPELINE                         4369    RIVER/POND WTR P&D
    3AL RIVER WATER PIPELINE                         4369    RIVER/POND WTR P&D
    3AL RIVER WATER PIPELINE                         4369    RIVER/POND WTR P&D
    3AL RIVER WATER PIPELINE                         4369    RIVER/POND WTR P&D
    3AL RIVER WATER PIPELINE                         4369    RIVER/POND WTR P&D
    3AL RIVER WATER PIPELINE                         4369    RIVER/POND WTR P&D
    3AL RIVER WATER PIPELINE                         4369    RIVER/POND WTR P&D
    3AL RIVER WATER PIPELINE                         4369    RIVER/POND WTR P&D
    3AL RIVER WATER PIPELINE                         4369    RIVER/POND WTR P&D
    3AL RIVER WATER PIPELINE                         4369    RIVER/POND WTR P&D
    3AL RIVER WATER PIPELINE                         4369    RIVER/POND WTR P&D
    3AL RIVER WATER PIPELINE                         4369    RIVER/POND WTR P&D
    3AL RIVER WATER PIPELINE                         5111    2.5-4 CARBON STEEL
    3AL RIVER WATER PIPELINE                         5141    16-18 CARBON STEEL
    3AL RIVER WATER PIPELINE                         5151    20-30 CARBON STEEL
    3AL RIVER WATER PIPELINE                         5531    2 & U CARBON ST-CS
    3AL RIVER WATER PIPELINE                         5761    RIVER WTR PIPELINE
    3AL RIVER WATER PIPELINE                         5910    LARGE PIPE HANGRS
    3AL RIVER WATER PIPELINE                         6170    INSTR. PIPE &TUBE
    3AL RIVER WATER PIPELINE                         6820    RIVER LOW FLOW MO
    3AL RIVER WATER PIPELINE                         6821    USGS GAUGING STA
    3AL RIVER WATER PIPELINE                         6830    SURGE POND QUINDAR
    3FB AUXILIARY STEAM                              5111    2.5-4 CARBON STEEL
    3FB AUXILIARY STEAM                              5117    2.5-4 CROME MOLLY
    3FB AUXILIARY STEAM                              5121    6-8 CARBON STEEL
    3FB AUXILIARY STEAM                              5124    6-8STAINLESS STEEL
    3FB AUXILIARY STEAM                              5131    10-14 CARBON STEEL
    3FB AUXILIARY STEAM                              5139    10-14 CROME MOLLY
    3FB AUXILIARY STEAM                              5141    16-18 CARBON STEEL
    3FB AUXILIARY STEAM                              5151    20-30 CARBON STEEL
    3FB AUXILIARY STEAM                              5531    2 & U CARBON ST-CS
    3FB AUXILIARY STEAM                              5537    2 & U CHRO-MOLY-CM
    3FB AUXILIARY STEAM                              5850    20-30 VALVES
    3FB AUXILIARY STEAM                              5910    LARGE PIPE HANGRS
    3FB AUXILIARY STEAM                              6141    INSTRUMENTS
    3FB AUXILIARY STEAM                              6170    INSTR. PIPE &TUBE
    3FB AUXILIARY STEAM                              6175    INSTRUMENT VALVES
    3FB AUXILIARY STEAM                              8411    P&C W&C ALL SIZES
    3FE PLANT HEATING BOILER                         1586    CONC. PUMP,TK,EQUI
    3FE PLANT HEATING BOILER                         4894    EQUIPMENT INSULAT
    3FE PLANT HEATING BOILER                         4894    EQUIPMENT INSULAT
    3FE PLANT HEATING BOILER                         4894    EQUIPMENT INSULAT
    3FE PLANT HEATING BOILER                         4894    EQUIPMENT INSULAT
    3FE PLANT HEATING BOILER                         4922    PLANT HEAT-BOILER
    3FE PLANT HEATING BOILER                         4922    PLANT HEAT-BOILER
    3FE PLANT HEATING BOILER                         4922    PLANT HEAT-BOILER
    3FE PLANT HEATING BOILER                         4922    PLANT HEAT-BOILER
    3FE PLANT HEATING BOILER                         4922    PLANT HEAT-BOILER
</TABLE>
<PAGE>   105
                                                       Common Facilities 3-4 and
                                                       Common Facilities 1-2-3-4

                                                       FERC Account 311

<TABLE>
<CAPTION>
                                                     COST
                                                     CODE       DESCRIPTION
                                                     ----    ------------------
<S>                                                  <C>     <C>
    3FE PLANT HEATING BOILER                         5111    2.5-4 CARBON STEEL
    3FE PLANT HEATING BOILER                         5121    6-8 CARBON STEEL
    3FE PLANT HEATING BOILER                         5131    10-14 CARBON STEEL
    3FE PLANT HEATING BOILER                         5531    2 & U CARBON ST-CS
    3FE PLANT HEATING BOILER                         5910    LARGE PIPE HANGRS
    3FE PLANT HEATING BOILER                         6141    INSTRUMENTS
    3FE PLANT HEATING BOILER                         6170    INSTR. PIPE &TUBE
    3FE PLANT HEATING BOILER                         8411    P&C W&C ALL SIZES
    3GA PLANT HEATING                                4894    EQUIPMENT INSULAT
    3GA PLANT HEATING                                4894    EQUIPMENT INSULAT
    3GA PLANT HEATING                                4894    EQUIPMENT INSULAT
    3GA PLANT HEATING                                5111    2.5-4 CARBON STEEL
    3GA PLANT HEATING                                5121    6-8 CARBON STEEL
    3GA PLANT HEATING                                5131    10-14 CARBON STEEL
    3GA PLANT HEATING                                5531    2 & U CARBON ST-CS
    3GA PLANT HEATING                                5910    LARGE PIPE HANGRS
    3GA PLANT HEATING                                6141    INSTRUMENTS
    3GA PLANT HEATING                                6170    INSTR. PIPE &TUBE
    3GA PLANT HEATING                                8411    P&C W&C ALL SIZES
    3GB CHILLED WATER                                1586    CONC. PUMP,TK,EQUI
    3GB CHILLED WATER                                4363    HTG CIRC PMPS/DRIV
    3GB CHILLED WATER                                4912    HVAC EQUIPMENT
    3GB CHILLED WATER                                5111    2.5-4 CARBON STEEL
    3GB CHILLED WATER                                5121    6-8 CARBON STEEL
    3GB CHILLED WATER                                5531    2 & U CARBON ST-CS
    3GB CHILLED WATER                                5910    LARGE PIPE HANGRS
    3GB CHILLED WATER                                6141    INSTRUMENTS
    3GB CHILLED WATER                                6170    INSTR. PIPE &TUBE
    3GB CHILLED WATER                                8411    P&C W&C ALL SIZES
    3GD MISC. HVAC                                   8411    P&C W&C ALL SIZES
    3GE BOILER AND TURBINE BUILDING H                6141    INSTRUMENTS
    3GE BOILER AND TURBINE BUILDING H                6170    INSTR. PIPE &TUBE
    3GE BOILER AND TURBINE BUILDING H                8411    P&C W&C ALL SIZES
    3GK CONTROL COMPLEX HVAC                         5531    2 & U CARBON ST-CS
    3GK CONTROL COMPLEX HVAC                         6141    INSTRUMENTS
    3GK CONTROL COMPLEX HVAC                         6170    INSTR. PIPE &TUBE
    3GK CONTROL COMPLEX HVAC                         8411    P&C W&C ALL SIZES
    3GL AUXILIARY SERVICE BLDG HVAC                  5531    2 & U CARBON ST-CS
    3GL AUXILIARY SERVICE BLDG HVAC                  6170    INSTR. PIPE &TUBE
    3GL AUXILIARY SERVICE BLDG HVAC                  8411    P&C W&C ALL SIZES
    3KC FIRE PROTECTION                              4370    MISC. PUMPS/DRIVES
    3KC FIRE PROTECTION                              4370    MISC. PUMPS/DRIVES
    3KC FIRE PROTECTION                              4370    MISC. PUMPS/DRIVES
    3KC FIRE PROTECTION                              4370    MISC. PUMPS/DRIVES
    3KC FIRE PROTECTION                              4370    MISC. PUMPS/DRIVES
    3KC FIRE PROTECTION                              4370    MISC. PUMPS/DRIVES
    3KC FIRE PROTECTION                              5111    2.5-4 CARBON STEEL
    3KC FIRE PROTECTION                              5121    6-8 CARBON STEEL
    3KC FIRE PROTECTION                              5131    10-14 CARBON STEEL
</TABLE>
<PAGE>   106
                                                       Common Facilities 3-4 and
                                                       Common Facilities 1-2-3-4

                                                       FERC Account 311

<TABLE>
<CAPTION>
                                                     COST
                                                     CODE       DESCRIPTION
                                                     ----    ------------------
<S>                                                  <C>     <C>
    3KC FIRE PROTECTION                              5414    2.5-4 CASTIRON PIP
    3KC FIRE PROTECTION                              5416    2.5-4.0/GALVAN PIP
    3KC FIRE PROTECTION                              5424    6-8/CAST IRON PIPE
    3KC FIRE PROTECTION                              5426    6-8/GALVANIZED CS
    3KC FIRE PROTECTION                              5434    10-14/CASTIRON PIP
    3KC FIRE PROTECTION                              5436    10-14/GALVANIZED CS
    3KC FIRE PROTECTION                              5457    20-30/F/REIN EPOXY
    3KC FIRE PROTECTION                              5531    2 & U CARBON ST-CS
    3KC FIRE PROTECTION                              5860    30 & LARGER VALVE
    3KC FIRE PROTECTION                              5910    LARGE PIPE HANGRS
    3KC FIRE PROTECTION                              6141    INSTRUMENTS
    3KC FIRE PROTECTION                              6170    INSTR. PIPE &TUBE
    3KC FIRE PROTECTION                              8221    TOT COND-PWR &CON
    3KC FIRE PROTECTION                              8411    P&C W&C ALL SIZES
    3KD DOMESTIC WATER                               5411    2.5-4 CU & BRASS
    3KD DOMESTIC WATER                               5414    2.5-4 CASTIRON PIP
    3KD DOMESTIC WATER                               5421    6-8/CU & BRASS PIP
    3KD DOMESTIC WATER                               5424    6-8/CAST IRON PIPE
    3KD DOMESTIC WATER                               5561    2 & U COPP & BRASS
    3KD DOMESTIC WATER                               5680    PLUMBING FIXTURES
    3KD DOMESTIC WATER                               8221    TOT COND-PWR &CON
    3KD DOMESTIC WATER                               8411    P&C W&C ALL SIZES
    3KH SERVICE GAS H2 & CO2                         4572    BULK H2 STORAGE TK
    3KH SERVICE GAS H2 & CO2                         5531    2 & U CARBON ST-CS
    3KH SERVICE GAS H2 & CO2                         6141    INSTRUMENTS
    3KH SERVICE GAS H2 & CO2                         6170    INSTR. PIPE &TUBE
    3KH SERVICE GAS H2 & CO2                         8411    P&C W&C ALL SIZES
    3LA SANITARY DRAINAGE                            5412    2.5-4.0/PVC PIPE
    3LA SANITARY DRAINAGE                            5414    2.5-4 CASTIRON PIP
    3LA SANITARY DRAINAGE                            5416    2.5-4.0/GALVAN PIP
    3LA SANITARY DRAINAGE                            5422    6-8/PVC PIPE
    3LA SANITARY DRAINAGE                            5424    6-8/CAST IRON PIPE
    3LA SANITARY DRAINAGE                            5426    6-8/GALVANIZED CS
    3LA SANITARY DRAINAGE                            5531    2 & U CARBON ST-CS
    3LA SANITARY DRAINAGE                            5569    2 & U MISC. OTHER
    3LB STORM DRAINAGE                               4367    MISC. SUMP PMPS/DR
    3LB STORM DRAINAGE                               5131    10-14 CARBON STEEL
    3LB STORM DRAINAGE                               5414    2.5-4 CASTIRON PIP
    3LB STORM DRAINAGE                               5416    2.5-4.0/GALVAN PIP
    3LB STORM DRAINAGE                               5424    6-8/CASTIRON PIPE
    3LB STORM DRAINAGE                               5425    6-8/REIN CONC.PIPE
    3LB STORM DRAINAGE                               5426    6-8/GALVANIZED CS
    3LB STORM DRAINAGE                               5434    10-14/CAST IRON PIP
    3LB STORM DRAINAGE                               5435    10-14/REIN CONC.P
    3LB STORM DRAINAGE                               5436    10-14/GALVANIZ CS
    3LB STORM DRAINAGE                               5444    16-18/CASTIRON PIP
    3LB STORM DRAINAGE                               5445    16-18/REI/CONC PIP
    3LB STORM DRAINAGE                               5455    20-30/RE/CONC PIPE
    3LB STORM DRAINAGE                               5910    LARGE PIPE HANGRS
</TABLE>
<PAGE>   107
                                                       Common Facilities 3-4 and
                                                       Common Facilities 1-2-3-4

                                                       FERC Account 311

<TABLE>
<CAPTION>
                                                     COST
                                                     CODE       DESCRIPTION
                                                     ----    ------------------
<S>                                                  <C>     <C>
    3LD CHEMICAL WASTE DRAINAGE                      4569    NEUTRALIZATION TKS
    3LD CHEMICAL WASTE DRAINAGE                      5414    2.5-4 CASTIRON PIP
    3LD CHEMICAL WASTE DRAINAGE                      5424    6-8/CAST IRON PIPE
    3LD CHEMICAL WASTE DRAINAGE                      5534    2 & U STAIN ST-SS
    3LD CHEMICAL WASTE DRAINAGE                      5569    2 & U MISC. OTHER
    3LE OILY WASTE DRAINAGE                          1501    CONC. OIL SEP SUMP
    3LE OILY WASTE DRAINAGE                          5414    2.5-4 CASTIRON PIP
    3LE OILY WASTE DRAINAGE                          5424    6-8/CAST IRON PIPE
    3LE OILY WASTE DRAINAGE                          6141    INSTRUMENTS
    3LF GRAVITY COLLECTION DRAINAGE                  1504    CONC. PIPE SUPPRTS
    3LF GRAVITY COLLECTION DRAINAGE                  4367    MISC. SUMP PMPS/DR
    3LF GRAVITY COLLECTION DRAINAGE                  4367    MISC. SUMP PMPS/DR
    3LF GRAVITY COLLECTION DRAINAGE                  4367    MISC. SUMP PMPS/DR
    3LF GRAVITY COLLECTION DRAINAGE                  4367    MISC. SUMP PMPS/DR
    3LF GRAVITY COLLECTION DRAINAGE                  4367    MISC. SUMP PMPS/DR
    3LF GRAVITY COLLECTION DRAINAGE                  5111    2.5-4 CARBON STEEL
    3LF GRAVITY COLLECTION DRAINAGE                  5131    10-14 CARBON STEEL
    3LF GRAVITY COLLECTION DRAINAGE                  5414    2.5-4 CASTIRON PIP
    3LF GRAVITY COLLECTION DRAINAGE                  5416    2.5-4.0/GALVAN PIP
    3LF GRAVITY COLLECTION DRAINAGE                  5423    6-8/CS LINED PIPE
    3LF GRAVITY COLLECTION DRAINAGE                  5424    6-8/CAST IRON PIPE
    3LF GRAVITY COLLECTION DRAINAGE                  5425    6-8/REIN CONC.PIPE
    3LF GRAVITY COLLECTION DRAINAGE                  5426    6-8/GALVANIZED CS
    3LF GRAVITY COLLECTION DRAINAGE                  5433    10-14/CS LINED PIP
    3LF GRAVITY COLLECTION DRAINAGE                  5434    10-14/CASTIRON PIP
    3LF GRAVITY COLLECTION DRAINAGE                  5435    10-14/REIN CONC.P
    3LF GRAVITY COLLECTION DRAINAGE                  5445    16-18/REI/CONC PIP
    3LF GRAVITY COLLECTION DRAINAGE                  5531    2 & U CARBON ST-CS
    3LF GRAVITY COLLECTION DRAINAGE                  5569    2 & U MISC. OTHER
    3LF GRAVITY COLLECTION DRAINAGE                  5910    LARGE PIPE HANGRS
    3LF GRAVITY COLLECTION DRAINAGE                  6141    INSTRUMENTS
    3LF GRAVITY COLLECTION DRAINAGE                  6170    INSTR. PIPE & TUBE
    3LF GRAVITY COLLECTION DRAINAGE                  8411    P&C W&C ALL SIZES
    3LK NORTH PLANT DRAINAGE                         4323    CIRC WTR PMPS/DR
    3LK NORTH PLANT DRAINAGE                         4367    MISC. SUMP PMPS/DR
    3LK NORTH PLANT DRAINAGE                         4367    MISC. SUMP PMPS/DR
    3LK NORTH PLANT DRAINAGE                         4367    MISC. SUMP PMPS/DR
    3LK NORTH PLANT DRAINAGE                         4367    MISC. SUMP PMPS/DR
    3LK NORTH PLANT DRAINAGE                         4367    MISC. SUMP PMPS/DR
    3LK NORTH PLANT DRAINAGE                         4367    MISC. SUMP PMPS/DR
    3LK NORTH PLANT DRAINAGE                         5124    6-8STAINLESS STEEL
    3LK NORTH PLANT DRAINAGE                         5413    2.5-4 CS LINED PIP
    3LK NORTH PLANT DRAINAGE                         5423    6-8/CS LINED PIPE
    3LK NORTH PLANT DRAINAGE                         5424    6-8/CAST IRON PIPE
    3LK NORTH PLANT DRAINAGE                         5427    6-8/F/REIN EPOXY
    3LK NORTH PLANT DRAINAGE                         5434    10-14/CASTIRON PIP
    3LK NORTH PLANT DRAINAGE                         5444    16-18/CASTIRON PIP
    3LK NORTH PLANT DRAINAGE                         5445    16-18/REI/CONC PIP
    3LK NORTH PLANT DRAINAGE                         5455    20-30/RE/CONC PIPE
</TABLE>
<PAGE>   108
                                                       Common Facilities 3-4 and
                                                       Common Facilities 1-2-3-4

                                                       FERC Account 311

<TABLE>
<CAPTION>
                                                     COST
                                                     CODE       DESCRIPTION
                                                     ----    ------------------
<S>                                                  <C>     <C>
    3LK NORTH PLANT DRAINAGE                         5534    2 & U STAIN ST-SS
    3LK NORTH PLANT DRAINAGE                         5910    LARGE PIPE HANGRS
    3LK NORTH PLANT DRAINAGE                         6141    INSTRUMENTS
    3LK NORTH PLANT DRAINAGE                         6170    INSTR. PIPE &TUBE
    3LK NORTH PLANT DRAINAGE                         8221    TOT COND-PWR &CON
    3LK NORTH PLANT DRAINAGE                         8411    P&C W&C ALL SIZES
    3QA NORMAL LIGHTING                              7620    LIGHT TRANSFRM/PAN
    3QA NORMAL LIGHTING                              8411    P&C W&C ALL SIZES
    3QF IN-PLANT COMMUNICATIONS                      7630    COMMUNICA EQUIP
    3QH CATHODIC PROTECTION                          1509    CONC. MISC FOUND.
    3QH CATHODIC PROTECTION                          7670    CATHODIC PROT EQUI
    3QH CATHODIC PROTECTION                          8411    P&C W&C ALL SIZES
    3QJ FREEZER PROTECTION                           7650    HEAT TRACE EQUIP
    3QK FIRE AND SMOKE DETECTION                     4725    IN-PLT COAL D/COLL
    3QK FIRE AND SMOKE DETECTION                     4725    IN-PLT COAL D/COLL
    3QK FIRE AND SMOKE DETECTION                     8411    P&C W&C ALL SIZES
    9D MAIN BLDG. COMMON BAY                         1510    CONC. BASE SLAB FD
    9D MAIN BLDG. COMMON BAY                         1511    CONC. GRADE BEAMS
    9D MAIN BLDG. COMMON BAY                         1531    CONC. ELEV. SLABS
    9D MAIN BLDG. COMMON BAY                         1540    CONC. SUMPS & PIT
    9D MAIN BLDG. COMMON BAY                         1598    CAISSONS
    9D MAIN BLDG. COMMON BAY                         2110    BUILDING FRAME
    9D MAIN BLDG. COMMON BAY                         2190    CORTEN STEEL
    9D MAIN BLDG. COMMON BAY                         2511    METAL SIDING
    9D MAIN BLDG. COMMON BAY                         2513    PRECAST CONCRETE
    9D MAIN BLDG. COMMON BAY                         2522    BUILT-UP ROOFING
    9D MAIN BLDG. COMMON BAY                         2532    CONC. BLOCK WALLS
    9D MAIN BLDG. COMMON BAY                         2549    ARCH. FINISH
    9D MAIN BLDG. COMMON BAY                         2551    DOORS/FRAMES/HARD
    9D MAIN BLDG. COMMON BAY                         2555    VERTICAL LIFTDOORS
    9D MAIN BLDG. COMMON BAY                         2581    EQUIP & FURNITURE
    9D MAIN BLDG. COMMON BAY                         4462    HVAC GLYCOL WTR H
    9D MAIN BLDG. COMMON BAY                         4833    MISC CRANES/HOISTS
    9D MAIN BLDG. COMMON BAY                         4834    FLD PURCH HOISTS
    9D MAIN BLDG. COMMON BAY                         4851    FIRE PROTECTION
    9D MAIN BLDG. COMMON BAY                         4852    CO2 SYSTEM
    9D MAIN BLDG. COMMON BAY                         4911    HVAC DUCTWORK
    9D MAIN BLDG. COMMON BAY                         4911    HVAC DUCTWORK
    9D MAIN BLDG. COMMON BAY                         4912    HVAC EQUIPMENT
    9D MAIN BLDG. COMMON BAY                         4912    HVAC EQUIPMENT
    9D MAIN BLDG. COMMON BAY                         4912    HVAC EQUIPMENT
    9D MAIN BLDG. COMMON BAY                         4912    HVAC EQUIPMENT
    9D MAIN BLDG. COMMON BAY                         4912    HVAC EQUIPMENT
    9D MAIN BLDG. COMMON BAY                         4913    HVAC CONTROL/INSTR
    9D MAIN BLDG. COMMON BAY                         6231    LOCAL ELEC. PANELS
    9D MAIN BLDG. COMMON BAY                         6530    CARD KEY SYS
    9D MAIN BLDG. COMMON BAY                         7610    LIGHTING FIXTURES
    9D MAIN BLDG. COMMON BAY                         81l0    CABLE TRAY/FITTING
    9D MAIN BLDG. COMMON BAY                         8221    TOT COND-PWR & CON
</TABLE>
<PAGE>   109
                                                       Common Facilities 3-4 and
                                                       Common Facilities 1-2-3-4

                                                       FERC Account 311

<TABLE>
<CAPTION>
                                                    COST
                                                    CODE       DESCRIPTION
                                                    ----    ------------------
<S>                                                 <C>     <C>
    9H YARD COAL HANDLING                           1510    CONC. BASE SLAB FD
    9H YARD COAL HANDLING                           1511    CONC. GRADE BEAMS
    9H YARD COAL HANDLING                           1513    CONC. SHORED SLABS
    9H YARD COAL HANDLING                           1514    CONC. COAL STOR FD
    9H YARD COAL HANDLING                           1515    CONC. CONV FOOTING
    9H YARD COAL HANDLING                           1521    CONC. TRAVEL WALL
    9H YARD COAL HANDLING                           1522    CONC. FORMED WALL
    9H YARD COAL HANDLING                           1598    CAISSONS
    9H YARD COAL HANDLING                           2110    BUILDING FRAME
    9H YARD COAL HANDLING                           2119    LOWERING WELL
    9H YARD COAL HANDLING                           2130    PRE-ENGR BUILDING
    9H YARD COAL HANDLING                           2141    CONVEYORS STR STL
    9H YARD COAL HANDLING                           2141    CONVEYORS STR STL
    9H YARD COAL HANDLING                           2141    CONVEYORS STR STL
    9H YARD COAL HANDLING                           2141    CONVEYORS STR STL
    9H YARD COAL HANDLING                           2141    CONVEYORS STR STL
    9H YARD COAL HANDLING                           2141    CONVEYORS STR STL
    9H YARD COAL HANDLING                           2141    CONVEYORS STR STL
    9H YARD COAL HANDLING                           2141    CONVEYORS STR STL
    9H YARD COAL HANDLING                           2511    METAL SIDING
    9H YARD COAL HANDLING                           2530    EARTHWORK
    9H YARD COAL HANDLING                           2551    DOORS/FRAMES/HARD
    9H YARD COAL HANDLING                           2613    REINF EARTH PRECAS
    9H YARD COAL HANDLING                           2614    LIVE COAL STO BERM
    9H YARD COAL HANDLING                           2680    ELECT.DUCTBANK& M
    9H YARD COAL HANDLING                           2890    ESCAPE TUNNELS
    9H YARD COAL HANDLING                           4833    MISC CRANES/HOISTS
    9H YARD COAL HANDLING                           4834    FLD PURCH HOISTS
    9H YARD COAL HANDLING                           4851    FIRE PROTECTION
    9H YARD COAL HANDLING                           4911    HVAC DUCTWORK
    9H YARD COAL HANDLING                           4912    HVAC EQUIPMENT
    9H YARD COAL HANDLING                           4912    HVAC EQUIPMENT
    9H YARD COAL HANDLING                           4912    HVAC EQUIPMENT
    9H YARD COAL HANDLING                           4912    HVAC EQUIPMENT
    9H YARD COAL HANDLING                           4912    HVAC EQUIPMENT
    9H YARD COAL HANDLING                           4912    HVAC EQUIPMENT
    9H YARD COAL HANDLING                           4913    HVAC CONTROL/INSTR
    9H YARD COAL HANDLING                           7610    LIGHTING FIXTURES
    9I COOLING TOWER PUMP HOUSE                     1510    CONC. BASE SLAB FD
    9I COOLING TOWER PUMP HOUSE                     1540    CONC. SUMPS & PIT
    9I COOLING TOWER PUMP HOUSE                     2110    BUILDING FRAME
    9I COOLING TOWER PUMP HOUSE                     2130    PRE-ENGR BUILDING
    9I COOLING TOWER PUMP HOUSE                     2511    METAL SIDING
    9I COOLING TOWER PUMP HOUSE                     2522    BUILT-UP ROOFING
    9I COOLING TOWER PUMP HOUSE                     2530    EARTHWORK
    9I COOLING TOWER PUMP HOUSE                     2551    DOORS/FRAMES/HARD
    9I COOLING TOWER PUMP HOUSE                     2555    VERTICAL LIFTDOORS
    9I COOLING TOWER PUMP HOUSE                     4833    MISC CRANES/HOISTS
    9I COOLING TOWER PUMP HOUSE                     4911    HVAC DUCTWORK
</TABLE>
<PAGE>   110
                                                       Common Facilities 3-4 and
                                                       Common Facilities 1-2-3-4

                                                       FERC Account 311

<TABLE>
<CAPTION>
                                                     COST
                                                     CODE       DESCRIPTION
                                                     ----    ------------------
<S>                                                  <C>     <C>
    9I COOLING TOWER PUMP HOUSE                      4912    HVAC EQUIPMENT
    9I COOLING TOWER PUMP HOUSE                      4912    HVAC EQUIPMENT
    9I COOLING TOWER PUMP HOUSE                      4913    HVAC CONTROL/INSTR
    9I COOLING TOWER PUMP HOUSE                      7610    LIGHTING FIXTURES
    9J DIESEL GENERATOR BLDG.                        1510    CONC. BASE SLAB FD
    9J DIESEL GENERATOR BLDG.                        1511    CONC. GRADE BEAMS
    9J DIESEL GENERATOR BLDG.                        1531    CONC. ELEV. SLABS
    9J DIESEL GENERATOR BLDG.                        1598    CAISSONS
    9J DIESEL GENERATOR BLDG.                        2110    BUILDING FRAME
    9J DIESEL GENERATOR BLDG.                        2511    METAL SIDING
    9J DIESEL GENERATOR BLDG.                        2522    BUILT-UP ROOFING
    9J DIESEL GENERATOR BLDG.                        2530    EARTHWORK
    9J DIESEL GENERATOR BLDG.                        2532    CONC. BLOCK WALLS
    9J DIESEL GENERATOR BLDG.                        2551    DOORS/FRAMES/HARD
    9J DIESEL GENERATOR BLDG.                        2552    ROLL-UP DOORS
    9J DIESEL GENERATOR BLDG.                        2555    VERTICAL LIFTDOORS
    9J DIESEL GENERATOR BLDG.                        4851    FIRE PROTECTION
    9J DIESEL GENERATOR BLDG.                        4911    HVAC DUCTWORK
    9J DIESEL GENERATOR BLDG.                        4912    HVAC EQUIPMENT
    9J DIESEL GENERATOR BLDG.                        4912    HVAC EQUIPMENT
    9J DIESEL GENERATOR BLDG.                        4912    HVAC EQUIPMENT
    9J DIESEL GENERATOR BLDG.                        4913    HVAC CONTROL/INSTR
    9J DIESEL GENERATOR BLDG.                        7610    LIGHTING FIXTURES
    9R WATER TREATMENT FACILITIES                    1510    CONC. BASE SLAB FD
    9R WATER TREATMENT FACILITIES                    2110    BUILDING FRAME
    9R WATER TREATMENT FACILITIES                    2130    PRE-ENGR BUILDING
    9R WATER TREATMENT FACILITIES                    2511    METAL SIDING
    9R WATER TREATMENT FACILITIES                    2522    BUILT-UP ROOFING
    9R WATER TREATMENT FACILITIES                    2530    EARTHWORK
    9R WATER TREATMENT FACILITIES                    2532    CONC. BLOCK WALLS
    9R WATER TREATMENT FACILITIES                    2549    ARCH. FINISH
    9R WATER TREATMENT FACILITIES                    2551    DOORS/FRAMES/HARD
    9R WATER TREATMENT FACILITIES                    2552    ROLL-UP DOORS
    9R WATER TREATMENT FACILITIES                    2555    VERTICAL LIFTDOORS
    9R WATER TREATMENT FACILITIES                    4834    FLD PURCH HOISTS
    9R WATER TREATMENT FACILITIES                    4911    HVAC DUCTWORK
    9R WATER TREATMENT FACILITIES                    4912    HVAC EQUIPMENT
    9R WATER TREATMENT FACILITIES                    4912    HVAC EQUIPMENT
    9R WATER TREATMENT FACILITIES                    4912    HVAC EQUIPMENT
    9R WATER TREATMENT FACILITIES                    4913    HVAC CONTROL/INSTR
    9R WATER TREATMENT FACILITIES                    6530    CARD KEY SYS
    9R WATER TREATMENT FACILITIES                    7610    LIGHTING FIXTURES
    9R WATER TREATMENT FACILITIES                    8110    CABLE TRAY/FITTING
    9R WATER TREATMENT FACILITIES                    8221    TOT COND-PWR & CON
    9W WAREHOUSE                                     2584    INTERIOR CONST
    9W WAREHOUSE                                     2950    WAREHOUSE & PAVIN
    9Y YARD FACILITIES                               1504    CONC. PIPE SUPPRTS
    9Y YARD FACILITIES                               1506    CONC. ELEC MH & DB
    9Y YARD FACILITIES                               1510    CONC. BASE SLAB FD
</TABLE>
<PAGE>   111
                                                       Common Facilities 3-4 and
                                                       Common Facilities 1-2-3-4

                                                       FERC Account 311

<TABLE>
<CAPTION>
                                                     COST
                                                     CODE       DESCRIPTION
                                                     ----    ------------------
<S>                                                  <C>     <C>
    9Y YARD FACILITIES                               1592    CONCRETE PRECAST
    9Y YARD FACILITIES                               1597    CONC-DRAIN DITC
    9Y YARD FACILITIES                               1598    CAISSONS
    9Y YARD FACILITIES                               2110    BUILDING FRAME
    9Y YARD FACILITIES                               2130    PRE-ENGR BUILDING
    9Y YARD FACILITIES                               2530    EARTHWORK
    9Y YARD FACILITIES                               2532    CONC. BLOCK WALLS
    9Y YARD FACILITIES                               2551    DOORS/FRAMES/HARD
    9Y YARD FACILITIES                               2674    HYPALON CANAL LING
    9Y YARD FACILITIES                               2680    ELECT.DUCTBANK& M
    9Y YARD FACILITIES                               2685    EWK ELEC/DB N. PLT
    9Y YARD FACILITIES                               2692    BKF NORTH PLANT
    9Y YARD FACILITIES                               2722    SHEET PILING
    9Y YARD FACILITIES                               2850    ROAD, WALKS & PARK
    9Y YARD FACILITIES                               2860    RAILROADS
    9Y YARD FACILITIES                               2861    PIPE SLEEVES
    9Y YARD FACILITIES                               2871    SURFACE DRAINAGE
    9Y YARD FACILITIES                               2880    FENCES & GATES
    9Y YARD FACILITIES                               4851    FIRE PROTECTION
    9Y YARD FACILITIES                               4852    CO2 SYSTEM
    9Y YARD FACILITIES                               4911    HVAC DUCTWORK
    9Y YARD FACILITIES                               4912    HVAC EQUIPMENT
    9Y YARD FACILITIES                               4912    HVAC EQUIPMENT
    9Y YARD FACILITIES                               4912    HVAC EQUIPMENT
    9Y YARD FACILITIES                               4912    HVAC EQUIPMENT
    9Y YARD FACILITIES                               4913    HVAC CONTROL/INSTR
    9Y YARD FACILITIES                               6530    CARD KEY SYS
    9Y YARD FACILITIES                               7610    LIGHTING FIXTURES
    9Y YARD FACILITIES                               8221    TOT COND-PWR & CON
</TABLE>
<PAGE>   112
                                                       Common Facilities 3-4 and
                                                       Common Facilities 1-2-3-4

                                                       FERC Account 311.2

<TABLE>
<CAPTION>
                                                       COST
                                                       CODE        DESCRIPTION
                                                       ----    ---------------------
<S>                                                    <C>     <C>
3GA PLANT HEATING                                      4894    EQUIPMENT INSULAT
3GA PLANT HEATING                                      4894    EQUIPMENT INSULAT
3GA PLANT HEATING                                      4894    EQUIPMENT INSULAT
3GA PLANT HEATING                                      5111    2.5-4 CARBON STEEL
3GA PLANT HEATING                                      5121    6-8 CARBON STEEL
3GA PLANT HEATING                                      5131    10-14 CARBON STEEL
3GA PLANT HEATING                                      5531    2 & U CARBON ST-CS
3GA PLANT HEATING                                      5910    LARGE PIPE HANGRS
3GA PLANT HEATING                                      6141    INSTRUMENTS
3GA PLANT HEATING                                      6170    INSTR. PIPE &TUBE
3GA PLANT HEATING                                      8411    P&C W&C ALL SIZES
3GB CHILLED WATER                                      1586    CONC. PUMP,TK,EQUI
3GB CHILLED WATER                                      4363    HTG CIRC PMPS/DRIV
3GB CHILLED WATER                                      4912    HVAC EQUIPMENT
3GB CHILLED WATER                                      5111    2.5-4 CARBON STEEL
3GB CHILLED WATER                                      5121    6-8 CARBON STEEL
3GB CHILLED WATER                                      5531    2 & U CARBON ST-CS
3GB CHILLED WATER                                      5910    LARGE PIPE HANGRS
3GB CHILLED WATER                                      6141    INSTRUMENTS
3GB CHILLED WATER                                      6170    INSTR. PIPE &TUBE
3GB CHILLED WATER                                      8411    P&C W&C ALL SIZES
3GD MISC. HVAC                                         8411    P&C W&C ALL SIZES
3GR SCRUBBER BUILDING HVAC                             5531    2 & U CARBON ST-CS
3GR SCRUBBER BUILDING HVAC                             6170    INSTR. PIPE &TUBE
3GR SCRUBBER BUILDING HVAC                             8411    P&C W&C ALL SIZES
3KD DOMESTIC WATER                                     5411    2.5-4 CU & BRASS
3KD DOMESTIC WATER                                     5414    2.5-4 CASTIRON PIP
3KD DOMESTIC WATER                                     5421    6-8/CU & BRASS PIP
3KD DOMESTIC WATER                                     5424    6-8/CAST IRON PIPE
3KD DOMESTIC WATER                                     5561    2 & U COPP & BRASS
3KD DOMESTIC WATER                                     5680    PLUMBING FIXTURES
3KD DOMESTIC WATER                                     8221    TOT COND-PWR &CON
3KD DOMESTIC WATER                                     8411    P&C W&C ALL SIZES
3LA SANITARY DRAINAGE                                  5412    2.5-4.0/PVC PIPE
3LA SANITARY DRAINAGE                                  5414    2.5-4 CASTIRON PIP
3LA SANITARY DRAINAGE                                  5416    2.5-4.0/GALVAN PIP
3LA SANITARY DRAINAGE                                  5422    6-8/PVC PIPE
3LA SANITARY DRAINAGE                                  5424    6-8/CAST IRON PIPE
3LA SANITARY DRAINAGE                                  5426    6-8/GALVANIZED CS
3LA SANITARY DRAINAGE                                  5531    2 & U CARBON ST-CS
3LA SANITARY DRAINAGE                                  5569    2 & U MISC. OTHER
3LB STORM DRAINAGE                                     4367    MISC. SUMP PMPS/DR
3LB STORM DRAINAGE                                     5131    10-14 CARBON STEEL
3LB STORM DRAINAGE                                     5414    2.5-4 CASTIRON PIP
3LB STORM DRAINAGE                                     5416    2.5-4.0/GALVAN PIP
3LB STORM DRAINAGE                                     5424    6-8/CAST IRON PIPE
3LB STORM DRAINAGE                                     5425    6-8/REIN CONC.PIPE
3LB STORM DRAINAGE                                     5426    6-8/GALVANIZED CS
3LB STORM DRAINAGE                                     5434    10-14/CASTIRON PIP
3LB STORM DRAINAGE                                     5435    10-14/REIN CONC.P
3LB STORM DRAINAGE                                     5436    10-14/GALVANIZ CS
3LB STORM DRAINAGE                                     5444    16-18/CASTIRON PIP
3LB STORM DRAINAGE                                     5445    16-18/REI/CONC PIP
3LB STORM DRAINAGE                                     5455    20-30/RE/CONC PIPE
</TABLE>
<PAGE>   113
                                                       Common Facilities 3-4 and
                                                       Common Facilities 1-2-3-4

                                                       FERC Account 311.2

<TABLE>
<CAPTION>
                                                      COST
                                                      CODE        DESCRIPTION
                                                      ----    ---------------------
<S>                                                   <C>     <C>
3LB STORM DRAINAGE                                    5910    LARGE PIPE HANGRS
3LD CHEMICAL WASTE DRAINAGE                           5414    2.5-4 CASTIRON PIP
3LD CHEMICAL WASTE DRAINAGE                           5424    6-8/CAST IRON PIPE
3LD CHEMICAL WASTE DRAINAGE                           5534    2 & U STAIN ST-SS
3LD CHEMICAL WASTE DRAINAGE                           5569    2 & U MISC. OTHER
3QA NORMAL LIGHTING                                   7620    LIGHT TRANSFRM/PAN
3QA NORMAL LIGHTING                                   8411    P&C W&C ALL SIZES
3QF IN-PLANT COMMUNICATIONS                           7630    COMMUNICA EQUIP
3QK FIRE AND SMOKE DETECTION                          4725    IN-PLT COAL D/COLL
3QK FIRE AND SMOKE DETECTION                          4725    IN-PLT COAL D/COLL
3QK FIRE AND SMOKE DETECTION                          8411    P&C W&C ALL SIZES
3SC SCRUBBER - WASH TRAY AND MIST ELIMINAT            8671    EFF POND POW LINE
3SC SCRUBBER - WASH TRAY AND MIST ELIMINAT            8672    WASH TRAY POW LINE
3SG SCRUBBER - WASTE DISPOSAL AND POND RET            1505    CONC. PIPE ENCASE
3SG SCRUBBER - WASTE DISPOSAL AND POND RET            7630    COMMUNICA EQUIP
9E EFFLUENT HOLDING POND                              1512    CONC. EFF HLD POND
9E EFFLUENT HOLDING POND                              2110    BUILDING FRAME
9E EFFLUENT HOLDING POND                              2636    EFF. POND SLURRY
9E EFFLUENT HOLDING POND                              2637    EFF POND EARTH WK
9E EFFLUENT HOLDING POND                              2639    EFF POND MON STIP
9K LIME HANDLING FACILITIES                           1510    CONC. BASE SLAB FD
9K LIME HANDLING FACILITIES                           1511    CONC. GRADE BEAMS
9K LIME HANDLING FACILITIES                           1531    CONC. ELEV. SLABS
9K LIME HANDLING FACILITIES                           1598    CAISSONS
9K LIME HANDLING FACILITIES                           2110    BUILDING FRAME
9K LIME HANDLING FACILITIES                           2111    WELD E/LIME BINS
9K LIME HANDLING FACILITIES                           2113    ER WEST LIME SILO
9K LIME HANDLING FACILITIES                           2114    WELD W/LIME SILO
9K LIME HANDLING FACILITIES                           2511    METAL SIDING
9K LIME HANDLING FACILITIES                           2522    BUILT-UP ROOFING
9K LIME HANDLING FACILITIES                           2530    EARTHWORK
9K LIME HANDLING FACILITIES                           2532    CONC. BLOCK WALLS
9K LIME HANDLING FACILITIES                           2549    ARCH. FINISH
9K LIME HANDLING FACILITIES                           2551    DOORS/FRAMES/HARD
9K LIME HANDLING FACILITIES                           2555    VERTICAL LIFTDOORS
9K LIME HANDLING FACILITIES                           4834    FLD PURCH HOISTS
9K LIME HANDLING FACILITIES                           4911    HVAC DUCTWORK
9K LIME HANDLING FACILITIES                           4912    HVAC EQUIPMENT
9K LIME HANDLING FACILITIES                           4912    HVAC EQUIPMENT
9K LIME HANDLING FACILITIES                           4912    HVAC EQUIPMENT
9K LIME HANDLING FACILITIES                           4913    HVAC CONTROL/INSTR
9K LIME HANDLING FACILITIES                           7610    LIGHTING FIXTURES
9K LIME HANDLING FACILITIES                           8110    CABLE TRAY/FITTING
9K LIME HANDLING FACILITIES                           8221    TOT COND-PWR & CON
9P SCRUBBER BUILDING COMMON                           1506    CONC. ELEC MH & DB
9P SCRUBBER BUILDING COMMON                           1510    CONC. BASE SLAB FD
9P SCRUBBER BUILDING COMMON                           1511    CONC. GRADE BEAMS
9P SCRUBBER BUILDING COMMON                           1531    CONC. ELEV. SLABS
9P SCRUBBER BUILDING COMMON                           1592    CONCRETE PRECAST
9P SCRUBBER BUILDING COMMON                           1598    CAISSONS
9P SCRUBBER BUILDING COMMON                           2110    BUILDING FRAME
9P SCRUBBER BUILDING COMMON                           2511    METAL SIDING
9P SCRUBBER BUILDING COMMON                           2522    BUILT-UP ROOFING
9P SCRUBBER BUILDING COMMON                           2530    EARTHWORK
</TABLE>
<PAGE>   114
                                                       Common Facilities 3-4 and
                                                       Common Facilities 1-2-3-4

                                                       FERC Account 311.2

<TABLE>
<CAPTION>
                                                      COST
                                                      CODE        DESCRIPTION
                                                      ----    ---------------------
<S>                                                   <C>     <C>
9P SCRUBBER BUILDING COMMON                           2532    CONC. BLOCK WALLS
9P SCRUBBER BUILDING COMMON                           2549    ARCH. FINISH
9P SCRUBBER BUILDING COMMON                           2551    DOORS/FRAMES/HARD
9P SCRUBBER BUILDING COMMON                           2581    EQUIP & FURNITURE
9P SCRUBBER BUILDING COMMON                           2680    ELECT.DUCTBANK&M
9P SCRUBBER BUILDING COMMON                           4851    FIRE PROTECTION
9P SCRUBBER BUILDING COMMON                           4852    CO2 SYSTEM
9P SCRUBBER BUILDING COMMON                           4911    HVAC DUCTWORK
9P SCRUBBER BUILDING COMMON                           4911    HVAC DUCTWORK
9P SCRUBBER BUILDING COMMON                           4912    HVAC EQUIPMENT
9P SCRUBBER BUILDING COMMON                           4912    HVAC EQUIPMENT
9P SCRUBBER BUILDING COMMON                           4912    HVAC EQUIPMENT
9P SCRUBBER BUILDING COMMON                           4912    HVAC EQUIPMENT
9P SCRUBBER BUILDING COMMON                           4912    HVAC EQUIPMENT
9P SCRUBBER BUILDING COMMON                           4913    HVAC CONTROL/INSTR
9P SCRUBBER BUILDING COMMON                           7610    LIGHTING FIXTURES
9P SCRUBBER BUILDING COMMON                           8110    CABLE TRAY/FITTING
9Q AUXILIARY SCRUBBER BUILDING                        1510    CONC. BASE SLAB FD
9Q AUXILIARY SCRUBBER BUILDING                        1511    CONC. GRADE BEAMS
9Q AUXILIARY SCRUBBER BUILDING                        1531    CONC. ELEV. SLABS
9Q AUXILIARY SCRUBBER BUILDING                        1540    CONC. SUMPS & PIT
9Q AUXILIARY SCRUBBER BUILDING                        1598    CAISSONS
9Q AUXILIARY SCRUBBER BUILDING                        2110    BUILDING FRAME
9Q AUXILIARY SCRUBBER BUILDING                        2511    METAL SIDING
9Q AUXILIARY SCRUBBER BUILDING                        2522    BUILT-UP ROOFING
9Q AUXILIARY SCRUBBER BUILDING                        2530    EARTHWORK
9Q AUXILIARY SCRUBBER BUILDING                        2551    DOORS/FRAMES/HARD
9Q AUXILIARY SCRUBBER BUILDING                        4834    FLD PURCH HOISTS
9Q AUXILIARY SCRUBBER BUILDING                        4911    HVAC DUCTWORK
9Q AUXILIARY SCRUBBER BUILDING                        4912    HVAC EQUIPMENT
9Q AUXILIARY SCRUBBER BUILDING                        4912    HVAC EQUIPMENT
9Q AUXILIARY SCRUBBER BUILDING                        4913    HVAC CONTROL/INSTR
9Q AUXILIARY SCRUBBER BUILDING                        7610    LIGHTING FIXTURES
9Y YARD FACILITIES                                    2659    STATE CLAY LEASE
</TABLE>
<PAGE>   115
                                                       Common Facilities 3-4 and
                                                       Common Facilities 1-2-3-4

                                                       FERC Account 312

<TABLE>
<CAPTION>
                                                          COST
                                                          CODE       DESCRIPTION
                                                          ----    ------------------
<S>                                                       <C>     <C>
3AK CONDENSATE DEMINERALIZER                              1586    CONC. PUMP,TK,EQUI
3AK CONDENSATE DEMINERALIZER                              4367    MISC. SUMP PMPS/DR
3AK CONDENSATE DEMINERALIZER                              4630    CONDENSATE POLISH
3AK CONDENSATE DEMINERALIZER                              4630    CONDENSATE POLISH
3AK CONDENSATE DEMINERALIZER                              4630    CONDENSATE POLISH
3AK CONDENSATE DEMINERALIZER                              4630    CONDENSATE POLISH
3AK CONDENSATE DEMINERALIZER                              4630    CONDENSATE POLISH
3AK CONDENSATE DEMINERALIZER                              4630    CONDENSATE POLISH
3AK CONDENSATE DEMINERALIZER                              4630    CONDENSATE POLISH
3AK CONDENSATE DEMINERALIZER                              4630    CONDENSATE POLISH
3AK CONDENSATE DEMINERALIZER                              4630    CONDENSATE POLISH
3AK CONDENSATE DEMINERALIZER                              4630    CONDENSATE POLISH
3AK CONDENSATE DEMINERALIZER                              4630    CONDENSATE POLISH
3AK CONDENSATE DEMINERALIZER                              4630    CONDENSATE POLISH
3AK CONDENSATE DEMINERALIZER                              4630    CONDENSATE POLISH
3AK CONDENSATE DEMINERALIZER                              4630    CONDENSATE POLISH
3AK CONDENSATE DEMINERALIZER                              4630    CONDENSATE POLISH
3AK CONDENSATE DEMINERALIZER                              4630    CONDENSATE POLISH
3AK CONDENSATE DEMINERALIZER                              5111    2.5-4 CARBON STEEL
3AK CONDENSATE DEMINERALIZER                              5114    2.5-4 STAINLESS
3AK CONDENSATE DEMINERALIZER                              5121    6-8 CARBON STEEL
3AK CONDENSATE DEMINERALIZER                              5131    10-14 CARBON STEEL
3AK CONDENSATE DEMINERALIZER                              5141    16-18 CARBON STEEL
3AK CONDENSATE DEMINERALIZER                              5531    2 & U CARBON ST-CS
3AK CONDENSATE DEMINERALIZER                              5534    2 & U STAIN ST-SS
3AK CONDENSATE DEMINERALIZER                              5840    16-18 VALVES
3AK CONDENSATE DEMINERALIZER                              5840    16-18 VALVES
3AK CONDENSATE DEMINERALIZER                              5840    16-18 VALVES
3AK CONDENSATE DEMINERALIZER                              5840    16-18 VALVES
3AK CONDENSATE DEMINERALIZER                              5910    LARGE PIPE HANGRS
3AK CONDENSATE DEMINERALIZER                              6141    INSTRUMENTS
3AK CONDENSATE DEMINERALIZER                              6170    INSTR. PIPE &TUBE
3AK CONDENSATE DEMINERALIZER                              6175    INSTRUMENT VALVES
3AK CONDENSATE DEMINERALIZER                              8411    P&C W&C ALL SIZES
3AM RAW WATER SUPPLY                                      1505    CONC. PIPE ENCASE
3AM RAW WATER SUPPLY                                      4320    RAW/FILT WTR PMPS
3AM RAW WATER SUPPLY                                      4601    CHEM TREAT TANKS
3AM RAW WATER SUPPLY                                      4812    START-UP STRAINERS
3AM RAW WATER SUPPLY                                      5111    2.5-4 CARBON STEEL
3AM RAW WATER SUPPLY                                      5121    6-8 CARBON STEEL
3AM RAW WATER SUPPLY                                      5131    10-14 CARBON STEEL
3AM RAW WATER SUPPLY                                      5141    16-18 CARBON STEEL
3AM RAW WATER SUPPLY                                      5151    20-30 CARBON STEEL
3AM RAW WATER SUPPLY                                      5161    OVER 30 CARBON ST
3AM RAW WATER SUPPLY                                      5413    2.5-4 CS LINED PIP
3AM RAW WATER SUPPLY                                      5531    2 & U CARBON ST-CS
3AM RAW WATER SUPPLY                                      5910    LARGE PIPE HANGRS
3AM RAW WATER SUPPLY                                      6141    INSTRUMENTS
3AM RAW WATER SUPPLY                                      6170    INSTR. PIPE & TUBE
3AM RAW WATER SUPPLY                                      6175    INSTRUMENT VALVES
3AM RAW WATER SUPPLY                                      8221    TOT COND-PWR & CON
</TABLE>
<PAGE>   116
                                                       Common Facilities 3-4 and
                                                       Common Facilities 1-2-3-4

                                                       FERC Account 312

<TABLE>
<CAPTION>
                                                          COST
                                                          CODE       DESCRIPTION
                                                          ----    ------------------
<S>                                                       <C>     <C>
3AM RAW WATER SUPPLY                                      8411    P&C W&C ALL SIZES
3AM RAW WATER SUPPLY                                      8435    P&C WIR/AC/2KV-8KV
3AN DEMINERALIZE WATER MAKEUP                             1586    CONC. PUMP,TK,EQUI
3AN DEMINERALIZE WATER MAKEUP                             4367    MISC. SUMP PMPS/DR
3AN DEMINERALIZE WATER MAKEUP                             4367    MISC. SUMP PMPS/DR
3AN DEMINERALIZE WATER MAKEUP                             4367    MISC. SUMP PMPS/DR
3AN DEMINERALIZE WATER MAKEUP                             4367    MISC. SUMP PMPS/DR
3AN DEMINERALIZE WATER MAKEUP                             4367    MISC. SUMP PMPS/DR
3AN DEMINERALIZE WATER MAKEUP                             4367    MISC. SUMP PMPS/DR
3AN DEMINERALIZE WATER MAKEUP                             4367    MISC. SUMP PMPS/DR
3AN DEMINERALIZE WATER MAKEUP                             4367    MISC. SUMP PMPS/DR
3AN DEMINERALIZE WATER MAKEUP                             4601    CHEM TREAT TANKS
3AN DEMINERALIZE WATER MAKEUP                             4601    CHEM TREAT TANKS
3AN DEMINERALIZE WATER MAKEUP                             4618    DEMIN NOISE ENCLOS
3AN DEMINERALIZE WATER MAKEUP                             4620    M/U WTR DEMINERAL
3AN DEMINERALIZE WATER MAKEUP                             4620    M/U WTR DEMINERAL
3AN DEMINERALIZE WATER MAKEUP                             4620    M/U WTR DEMINERAL
3AN DEMINERALIZE WATER MAKEUP                             4620    M/U WTR DEMINERAL
3AN DEMINERALIZE WATER MAKEUP                             4620    M/U WTR DEMINERAL
3AN DEMINERALIZE WATER MAKEUP                             4620    M/U WTR DEMINERAL
3AN DEMINERALIZE WATER MAKEUP                             4620    M/U WTR DEMINERAL
3AN DEMINERALIZE WATER MAKEUP                             4620    M/U WTR DEMINERAL
3AN DEMINERALIZE WATER MAKEUP                             4620    M/U WTR DEMINERAL
3AN DEMINERALIZE WATER MAKEUP                             4620    M/U WTR DEMINERAL
3AN DEMINERALIZE WATER MAKEUP                             4620    M/U WTR DEMINERAL
3AN DEMINERALIZE WATER MAKEUP                             4620    M/U WTR DEMINERAL
3AN DEMINERALIZE WATER MAKEUP                             4620    M/U WTR DEMINERAL
3AN DEMINERALIZE WATER MAKEUP                             4620    M/U WTR DEMINERAL
3AN DEMINERALIZE WATER MAKEUP                             4620    M/U WTR DEMINERAL
3AN DEMINERALIZE WATER MAKEUP                             4620    M/U WTR DEMINERAL
3AN DEMINERALIZE WATER MAKEUP                             4620    M/U WTR DEMINERAL
3AN DEMINERALIZE WATER MAKEUP                             4620    M/U WTR DEMINERAL
3AN DEMINERALIZE WATER MAKEUP                             4620    M/U WTR DEMINERAL
3AN DEMINERALIZE WATER MAKEUP                             4620    M/U WTR DEMINERAL
3AN DEMINERALIZE WATER MAKEUP                             4620    M/U WTR DEMINERAL
3AN DEMINERALIZE WATER MAKEUP                             4620    M/U WTR DEMINERAL
3AN DEMINERALIZE WATER MAKEUP                             4620    M/U WTR DEMINERAL
3AN DEMINERALIZE WATER MAKEUP                             4620    M/U WTR DEMINERAL
3AN DEMINERALIZE WATER MAKEUP                             4620    M/U WTR DEMINERAL
3AN DEMINERALIZE WATER MAKEUP                             4620    M/U WTR DEMINERAL
3AN DEMINERALIZE WATER MAKEUP                             4812    START-UP STRAINERS
3AN DEMINERALIZE WATER MAKEUP                             5114    2.5-4 STAINLESS
3AN DEMINERALIZE WATER MAKEUP                             5121    6-8 CARBON STEEL
3AN DEMINERALIZE WATER MAKEUP                             5124    6-8STAINLESS STEEL
3AN DEMINERALIZE WATER MAKEUP                             5134    10-14 STAINLESS
3AN DEMINERALIZE WATER MAKEUP                             5413    2.5-4 CS LINED PIP
3AN DEMINERALIZE WATER MAKEUP                             5423    6-8/CS LINED PIPE
3AN DEMINERALIZE WATER MAKEUP                             5531    2 & U CARBON ST-CS
3AN DEMINERALIZE WATER MAKEUP                             5534    2 & U STAIN ST-SS
3AN DEMINERALIZE WATER MAKEUP                             5537    2 & U CHRO-MOLY-CM
3AN DEMINERALIZE WATER MAKEUP                             5569    2 & U MISC. OTHER
</TABLE>
<PAGE>   117
                                                       Common Facilities 3-4 and
                                                       Common Facilities 1-2-3-4

                                                       FERC Account 312

<TABLE>
<CAPTION>
                                                          COST
                                                          CODE       DESCRIPTION
                                                          ----    ------------------
<S>                                                       <C>     <C>
3AN DEMINERALIZE WATER MAKEUP                             5910    LARGE PIPE HANGRS
3AN DEMINERALIZE WATER MAKEUP                             6141    INSTRUMENTS
3AN DEMINERALIZE WATER MAKEUP                             6170    INSTR. PIPE & TUBE
3AN DEMINERALIZE WATER MAKEUP                             8221    TOT COND-PWR & CON
3AN DEMINERALIZE WATER MAKEUP                             8411    P&C W&C ALL SIZES
3AP CONDENSATE STORAGE & TRANSFER                         4315    COND TRANS PMPS/D
3AP CONDENSATE STORAGE & TRANSFER                         4361    BLR FILLDRN PM/DRV
3AP CONDENSATE STORAGE & TRANSFER                         4512    CONDENSATE STOR T
3AP CONDENSATE STORAGE & TRANSFER                         4522    DEMIN WTR STOR TKS
3AP CONDENSATE STORAGE & TRANSFER                         4812    START-UP STRAINER
3AP CONDENSATE STORAGE & TRANSFER                         4894    EQUIPMENT INSULAT
3AP CONDENSATE STORAGE & TRANSFER                         5111    2.5-4 CARBON STEEL
3AP CONDENSATE STORAGE & TRANSFER                         5114    2.5-4 STAINLESS
3AP CONDENSATE STORAGE & TRANSFER                         5121    6-8 CARBON STEEL
3AP CONDENSATE STORAGE & TRANSFER                         5124    6-8 STAINLESS STEEL
3AP CONDENSATE STORAGE & TRANSFER                         5131    10-14 CARBON STEEL
3AP CONDENSATE STORAGE & TRANSFER                         5134    10-14 STAINLESS
3AP CONDENSATE STORAGE & TRANSFER                         5531    2 & U CARBON ST-CS
3AP CONDENSATE STORAGE & TRANSFER                         5534    2 & U STAIN ST-SS
3AP CONDENSATE STORAGE & TRANSFER                         5910    LARGE PIPE HANGRS
3AP CONDENSATE STORAGE & TRANSFER                         6141    INSTRUMENTS
3AP CONDENSATE STORAGE & TRANSFER                         6170    INSTR. PIPE &TUBE
3AP CONDENSATE STORAGE & TRANSFER                         8221    TOT COND-PWR &CON
3AP CONDENSATE STORAGE & TRANSFER                         8411    P&C W&C ALL SIZES
3AR RAW WATER PRETREATMENT                                4320    RAW/FFILT WTR PMPS
3AR RAW WATER PRETREATMENT                                4553    FILTER WTR STOR TK
3AR RAW WATER PRETREATMENT                                4601    CHEM TREAT TANKS
3AR RAW WATER PRETREATMENT                                4670    PRETRE WTR ST/FILT
3AR RAW WATER PRETREATMENT                                4670    PRETRE WTR ST/FILT
3AR RAW WATER PRETREATMENT                                4670    PRETRE WTR ST/FILT
3AR RAW WATER PRETREATMENT                                4670    PRETRE WTR ST/FILT
3AR RAW WATER PRETREATMENT                                4670    PRETRE WTR ST/FILT
3AR RAW WATER PRETREATMENT                                4670    PRETRE WTR ST/FILT
3AR RAW WATER PRETREATMENT                                4670    PRETRE WTR STIFILT
3AR RAW WATER PRETREATMENT                                4670    PRETRE WTR ST/FILT
3AR RAW WATER PRETREATMENT                                4670    PRETRE WTR ST/FILT
3AR RAW WATER PRETREATMENT                                4670    PRETRE WTR ST/FILT
3AR RAW WATER PRETREATMENT                                4670    PRETRE WTR ST/FILT
3AR RAW WATER PRETREATMENT                                4670    PRETRE WTR ST/FILT
3AR RAW WATER PRETREATMENT                                4670    PRETRE WTR ST/FILT
3AR RAW WATER PRETREATMENT                                4670    PRETRE WTR ST/FILT
3AR RAW WATER PRETREATMENT                                4670    PRETRE WTR ST/FILT
3AR RAW WATER PRETREATMENT                                4812    START-UP STRAINERS
3AR RAW WATER PRETREATMENT                                5111    2.5-4 CARBON STEEL
3AR RAW WATER PRETREATMENT                                5121    6-8 CARBON STEEL
3AR RAW WATER PRETREATMENT                                5131    10-14 CARBON STEEL
3AR RAW WATER PRETREATMENT                                5531    2 & U CARBON ST-CS
3AR RAW WATER PRETREATMENT                                5534    2 & U STAIN ST-SS
3AR RAW WATER PRETREATMENT                                5910    LARGE PIPE HANGRS
3AR RAW WATER PRETREATMENT                                6141    INSTRUMENTS
3AR RAW WATER PRETREATMENT                                6170    INSTR PIPE & TUBE
</TABLE>
<PAGE>   118
                                                       Common Facilities 3-4 and
                                                       Common Facilities 1-2-3-4

                                                       FERC Account 312

<TABLE>
<CAPTION>
                                                         COST
                                                         CODE       DESCRIPTION
                                                         ----    ------------------
<S>                                                      <C>     <C>
 3AR RAW WATER PRETREATMENT                              6175     INSTRUMENT VALVES
 3AR RAW WATER PRETREATMENT                              6175     INSTRUMENT VALVES
 3AR RAW WATER PRETREATMENT                              8221     TOT COND-PWR &CON
 3AR RAW WATER PRETREATMENT                              8411     P&C W&C ALL SIZES
 3DD CIRC WATER CHEMICAL INJECTION                       4601     CHEM TREAT TANKS
 3DD CIRC WATER CHEMICAL INJECTION                       4601     CHEM TREAT TANKS
 3DD CIRC WATER CHEMICAL INJECTION                       4613     ANTI-FOAM INJ. EQ
 3DD CIRC WATER CHEMICAL INJECTION                       4614     SCALE INHIB. EQ
 3DD CIRC WATER CHEMICAL INJECTION                       4615     ACID INJECT. EQ
 3DD CIRC WATER CHEMICAL INJECTION                       4671     CHLORINATION EQUI
 3DD CIRC WATER CHEMICAL INJECTION                       4671     CHLORINATION EQUI
 3DD CIRC WATER CHEMICAL INJECTION                       4671     CHLORINATION EQUI
 3DD CIRC WATER CHEMICAL INJECTION                       4671     CHLORINATION EQUI
 3DD CIRC WATER CHEMICAL INJECTION                       4671     CHLORINATION EQUI
 3DD CIRC WATER CHEMICAL INJECTION                       4671     CHLORINATION EQUI
 3DD CIRC WATER CHEMICAL INJECTION                       4671     CHLORINATION EQUI
 3DD CIRC WATER CHEMICAL INJECTION                       4671     CHLORINATION EQUI
 3DD CIRC WATER CHEMICAL INJECTION                       4671     CHLORINATION EQUI
 3DD CIRC WATER CHEMICAL INJECTION                       4671     CHLORINATION EQUI
 3DD CIRC WATER CHEMICAL INJECTION                       4671     CHLORINATION EQUI
 3DD CIRC WATER CHEMICAL INJECTION                       5114     2.5-4 STAINLESS
 3DD CIRC WATER CHEMICAL INJECTION                       5413     2.5-4 CS LINED PIP
 3DD CIRC WATER CHEMICAL INJECTION                       5423     6-8/CS LINED PIPE
 3DD CIRC WATER CHEMICAL INJECTION                       5531     2 & U CARBON ST-CS
 3DD CIRC WATER CHEMICAL INJECTION                       5534     2 & U STAIN ST-SS
 3DD CIRC WATER CHEMICAL INJECTION                       5537     2 & U CHRO-MOLY-CM
 3DD CIRC WATER CHEMICAL INJECTION                       5910     LARGE PIPE HANGRS
 3DD CIRC WATER CHEMICAL INJECTION                       6141     INSTRUMENTS
 3DD CIRC WATER CHEMICAL INJECTION                       6170     INSTR. PIPE &TUBE
 3DD CIRC WATER CHEMICAL INJECTION                       8221     TOT COND-PWR &CON
 3DD CIRC WATER CHEMICAL INJECTION                       8411     P&C W&C ALL SIZES
 3FA AUXILIARY STEAM GENERATOR                           1586     CONC. PUMP,TK,EQUI
 3FA AUXILIARY STEAM GENERATOR                           4371     AUX BLR PUMPS
 3FA AUXILIARY STEAM GENERATOR                           4470     AUX BOILER & AUX
 3FA AUXILIARY STEAM GENERATOR                           4470     AUX BOILER & AUX
 3FA AUXILIARY STEAM GENERATOR                           4470     AUX BOILER & AUX
 3FA AUXILIARY STEAM GENERATOR                           4470     AUX BOILER & AUX
 3FA AUXILIARY STEAM GENERATOR                           4470     AUX BOILER & AUX
 3FA AUXILIARY STEAM GENERATOR                           4683     PHOSPHATE ADD. EQ
 3FA AUXILIARY STEAM GENERATOR                           4684     HYDRA-AMM. EQUIP
 3FA AUXILIARY STEAM GENERATOR                           4812     START-UP STRAINERS
 3FA AUXILIARY STEAM GENERATOR                           4894     EQUIPMENT INSULAT
 3FA AUXILIARY STEAM GENERATOR                           4894     EQUIPMENT INSULAT
 3FA AUXILIARY STEAM GENERATOR                           5111     2.5-4 CARBON STEEL
 3FA AUXILIARY STEAM GENERATOR                           5114     2.5-4 STAINLESS
 3FA AUXILIARY STEAM GENERATOR                           5121     6-8 CARBON STEEL
 3FA AUXILIARY STEAM GENERATOR                           5124     6-8 STAINLESS STEEL
 3FA AUXILIARY STEAM GENERATOR                           5131     10-14 CARBON STEEL
 3FA AUXILIARY STEAM GENERATOR                           5141     16-18 CARBON STEEL
 3FA AUXILIARY STEAM GENERATOR                           5531     2 & U CARBON ST-CS
 3FA AUXILIARY STEAM GENERATOR                           5534     2 & U STAIN ST-SS
</TABLE>
<PAGE>   119
                                                       Common Facilities 3-4 and
                                                       Common Facilities 1-2-3-4

                                                       FERC Account 312

<TABLE>
<CAPTION>
                                                          COST
                                                          CODE       DESCRIPTION
                                                          ----    ------------------
<S>                                                       <C>     <C>
3FA AUXILIARY STEAM GENERATOR                             5561    2 & U COPP & BRASS
3FA AUXILIARY STEAM GENERATOR                             5910    LARGE PIPE HANGRS
3FA AUXILIARY STEAM GENERATOR                             6141    INSTRUMENTS
3FA AUXILIARY STEAM GENERATOR                             6170    INSTR. PIPE &TUBE
3FA AUXILIARY STEAM GENERATOR                             8411    P&C W&C ALL SIZES
3FA AUXILIARY STEAM GENERATOR                             8435    P&C WIR/ACl2KV-SKI
3FB AUXILIARY STEAM                                       4571    OTHER MISC TANKS
3JA AUXILIARY FUEL OIL STORAGE & TRANS.                   4344    FUELOIL TRNS PM/DR
3JA AUXILIARY FUEL OIL STORAGE & TRANS.                   4344    FUELOIL TRNS PM/DR
3JA AUXILIARY FUEL OIL STORAGE & TRANS.                   4344    FUELOIL TRNS PM/DR
3JA AUXILIARY FUEL OIL STORAGE & TRANS.                   4346    FUELOIL UNLD PM/DR
3JA AUXILIARY FUEL OIL STORAGE & TRANS.                   4545    FUEL OIL STOR TKS
3JA AUXILIARY FUEL OIL STORAGE & TRANS.                   4545    FUEL OIL STOR TKS
3JA AUXILIARY FUEL OIL STORAGE & TRANS.                   4811    BASKET STRAINERS
3JA AUXILIARY FUEL OIL STORAGE & TRANS                    4812    START-UP STRAINERS
3JA AUXILIARY FUEL OIL STORAGE & TRANS.                   5111    2.5-4 CARBON STEEL
3JA AUXILIARY FUEL OIL STORAGE & TRANS.                   5121    6-8 CARBON STEEL
3JA AUXILIARY FUEL OIL STORAGE & TRANS.                   5131    10-14 CARBON STEEL
3JA AUXILIARY FUEL OIL STORAGE & TRANS.                   5531    2 & U CARBON ST-CS
3JA AUXILIARY FUEL OIL STORAGE & TRANS.                   5910    LARGE PIPE HANGRS
3JA AUXILIARY FUEL OIL STORAGE & TRANS.                   6141    INSTRUMENTS
3JA AUXILIARY FUEL OIL STORAGE & TRANS.                   6170    INSTR. PIPE &TUBE
3JA AUXILIARY FUEL OIL STORAGE & TRANS.                   8221    TOT COND-PWR &CON
3JA AUXILIARY FUEL OIL STORAGE & TRANS.                   8411    P&C W&C ALL SIZES
3JK YARD & IN-PLANT COAL HANDLING                         4701    CONVEYOR #60
3JK YARD & IN-PLANT COAL HANDLING                         4701    CONVEYOR #60
3JK YARD & IN-PLANT COAL HANDLING                         4701    CONVEYOR #60
3JK YARD & IN-PLANT COAL HANDLING                         4701    CONVEYOR #60
3JK YARD & IN-PLANT COAL HANDLING                         4701    CONVEYOR #60
3JK YARD & IN-PLANT COAL HANDLING                         4701    CONVEYOR #60
3JK YARD & IN-PLANT COAL HANDLING                         4701    CONVEYOR #60
3JK YARD & IN-PLANT COAL HANDLING                         4702    CONVEYOR #61
3JK YARD & IN-PLANT COAL HANDLING                         4702    CONVEYOR #61
3JK YARD & IN-PLANT COAL HANDLING                         4702    CONVEYOR #61
3JK YARD & IN-PLANT COAL HANDLING                         4702    CONVEYOR #61
3JK YARD & IN-PLANT COAL HANDLING                         4702    CONVEYOR #61
3JK YARD & IN-PLANT COAL HANDLING                         4703    CONVEYOR #62
3JK YARD & IN-PLANT COAL HANDLING                         4703    CONVEYOR #62
3JK YARD & IN-PLANT COAL HANDLING                         4703    CONVEYOR #62
3JK YARD & IN-PLANT COAL HANDLING                         4703    CONVEYOR #62
3JK YARD & IN-PLANT COAL HANDLING                         4704    CONVEYOR #70
3JK YARD & IN-PLANT COAL HANDLING                         4704    CONVEYOR #70
3JK YARD & IN-PLANT COAL HANDLING                         4704    CONVEYOR #70
3JK YARD & IN-PLANT COAL HANDLING                         4704    CONVEYOR #70
3JK YARD & IN-PLANT COAL HANDLING                         4704    CONVEYOR #70
3JK YARD & IN-PLANT COAL HANDLING                         4705    CONVEYOR #80-A
3JK YARD & IN-PLANT COAL HANDLING                         4705    CONVEYOR #80-A
3JK YARD & IN-PLANT COAL HANDLING                         4705    CONVEYOR #80-A
3JK YARD & IN-PLANT COAL HANDLING                         4705    CONVEYOR #80-A
3JK YARD & IN-PLANT COAL HANDLING                         4705    CONVEYOR #80-A
3JK YARD & IN-PLANT COAL HANDLING                         4705    CONVEYOR #80-A
</TABLE>
<PAGE>   120
                                                       Common Facilities 3-4 and
                                                       Common Facilities 1-2-3-4

                                                       FERC Account 312

<TABLE>
<CAPTION>
                                                          COST
                                                          CODE       DESCRIPTION
                                                          ----    ------------------
<S>                                                       <C>     <C>
3JK YARD & IN-PLANT COAL HANDLING                         4705    CONVEYOR #80-A
3JK YARD & IN-PLANT COAL HANDLING                         4705    CONVEYOR #80-A
3JK YARD & IN-PLANT COAL HANDLING                         4705    CONVEYOR #80-A
3JK YARD & IN-PLANT COAL HANDLING                         4705    CONVEYOR #80-A
3JK YARD & IN-PLANT COAL HANDLING                         4705    CONVEYOR #80-A
3JK YARD & IN-PLANT COAL HANDLING                         4705    CONVEYOR #80-A
3JK YARD & IN-PLANT COAL HANDLING                         4705    CONVEYOR #80-A
3JK YARD & IN-PLANT COAL HANDLING                         4705    CONVEYOR #80-A
3JK YARD & IN-PLANT COAL HANDLING                         4706    CONVEYOR #80/90
3JK YARD & IN-PLANT COAL HANDLING                         4706    CONVEYOR #80/90
3JK YARD & IN-PLANT COAL HANDLING                         4706    CONVEYOR #80/90
3JK YARD & IN-PLANT COAL HANDLING                         4706    CONVEYOR #80/90
3JK YARD & IN-PLANT COAL HANDLING                         4706    CONVEYOR #80/90
3JK YARD & IN-PLANT COAL HANDLING                         4706    CONVEYOR #80/90
3JK YARD & IN-PLANT COAL HANDLING                         4706    CONVEYOR #80/90
31K YARD & IN-PLANT COAL HANDLING                         4706    CONVEYOR #80/90
3JK YARD & IN-PLANT COAL HANDLING                         4706    CONVEYOR #80/90
3JK YARD & IN-PLANT COAL HANDLING                         4706    CONVEYOR #80/90
3JK YARD & IN-PLANT COAL HANDLING                         4706    CONVEYOR #80/90
3JK YARD & IN-PLANT COAL HANDLING                         4706    CONVEYOR #80/90
3JK YARD & IN-PLANT COAL HANDLING                         4706    CONVEYOR #80/90
3JK YARD & IN-PLANT COAL HANDLING                         4706    CONVEYOR #80/90
3JK YARD & IN-PLANT COAL HANDLING                         4706    CONVEYOR #80/90
3JK YARD & IN-PLANT COAL HANDLING                         4706    CONVEYOR #80/90
3JK YARD & IN-PLANT COAL HANDLING                         4706    CONVEYOR #80/90
3JK YARD & IN-PLANT COAL HANDLING                         4706    CONVEYOR #80/90
3JK YARD & IN-PLANT COAL HANDLING                         4706    CONVEYOR #80/90
3JK YARD & IN-PLANT COAL HANDLING                         4706    CONVEYOR #80/90
3JK YARD & IN-PLANT COAL HANDLING                         4706    CONVEYOR #80/90
3JK YARD & IN-PLANT COAL HANDLING                         4706    CONVEYOR #80/90
3JK YARD & IN-PLANT COAL HANDLING                         4706    CONVEYOR #80/90
3JK YARD & IN-PLANT COAL HANDLING                         4706    CONVEYOR #80/90
3JK YARD & IN-PLANT COAL HANDLING                         4706    CONVEYOR #80/90
3JK YARD & IN-PLANT COAL HANDLING                         4706    CONVEYOR #80/90
3JK YARD & IN-PLANT COAL HANDLING                         4706    CONVEYOR #80/90
3JK YARD & IN-PLANT COAL HANDLING                         4706    CONVEYOR #80/90
3JK YARD & IN-PLANT COAL HANDLING                         4706    CONVEYOR #80/90
3JK YARD & IN-PLANT COAL HANDLING                         4706    CONVEYOR #80/90
3JK YARD & IN-PLANT COAL HANDLING                         4707    CONVEYOR #81/91
3JK YARD & IN-PLANT COAL HANDLING                         4707    CONVEYOR #81/91
3JK YARD & IN-PLANT COAL HANDLING                         4707    CONVEYOR #81/91
3JK YARD & IN-PLANT COAL HANDLING                         4707    CONVEYOR #81/91
3JK YARD & IN-PLANT COAL HANDLING                         4707    CONVEYOR #81/91
3JK YARD & IN-PLANT COAL HANDLING                         4707    CONVEYOR #81/91
3JK YARD & IN-PLANT COAL HANDLING                         4707    CONVEYOR #81/91
3JK YARD & IN-PLANT COAL HANDLING                         4707    CONVEYOR #81/91
3JK YARD & IN-PLANT COAL HANDLING                         4707    CONVEYOR #81/91
3JK YARD & IN-PLANT COAL HANDLING                         4707    CONVEYOR #81/91
3JK YARD & IN-PLANT COAL HANDLING                         4707    CONVEYOR #81/91
3JK YARD & IN-PLANT COAL HANDLING                         4709    LOWERING WELLS
3JK YARD & IN-PLANT COAL HANDLING                         4716    COAL HAND CNTROLS
</TABLE>
<PAGE>   121
                                                       Common Facilities 3-4 and
                                                       Common Facilities 1-2-3-4

                                                       FERC Account 312

<TABLE>
<CAPTION>
                                                         COST
                                                         CODE       DESCRIPTION
                                                         ----    ------------------
<S>                                                      <C>     <C>
3JK YARD & IN-PLANT COAL HANDLING                        4721    IN-PLT COAL HD EQ
3JK YARD & IN-PLANT COAL HANDLING                        5416    2.5-4.0/GALVAN PIP
3JK YARD & IN-PLANT COAL HANDLING                        6141    INSTRUMENTS
3JK YARD & IN-PLANT COAL HANDLING                        7110    3KV-8KV SWITCHGEA
3JK YARD & IN-PLANT COAL HANDLING                        7240    SUBSTA TRANSFORM
3JK YARD & IN-PLANT COAL HANDLING                        7250    GROUND RESISTORS
3JK YARD & IN-PLANT COAL HANDLING                        7250    GROUND RESISTORS
3JK YARD & IN-PLANT COAL HANDLING                        7350    STA/SERV BUSDUCT
3JK YARD & IN-PLANT COAL HANDLING                        8411    P&C W&C ALL SIZES
3JK YARD & IN-PLANT COAL HANDLING                        8435    P&C WIR/AC/2KV-8KV
3JM BOTTOM ASH HANDLING                                  5121    6-8 CARBON STEEL
3JM BOTTOM ASH HANDLING                                  5438    10-14/NUVALLOY PIP
3JM BOTTOM ASH HANDLING                                  5454    20-30/CASTIRON PIP
3JQ YD & IMPLANT COAL HNDL DUST COLLECT                  4706    CONVEYOR #80/90
3JQ YD & IMPLANT COAL HNDL DUST COLLECT                  4706    CONVEYOR #80/90
3JQ YD & IMPLANT COAL HNDL DUST COLLECT                  4707    CONVEYOR #81/91
3JQ YD & INPLANT COAL HNDL DUST COLLECT                  8411    P&C W&C ALL SIZES
3JR YARD DUST SUPPRESSION                                4370    MISC. PUMPS/DRIVES
3JR YARD DUST SUPPRESSION                                4370    MISC. PUMPS/DRIVES
3JR YARD DUST SUPPRESSION                                4571    OTHER MISC TANKS
3JR YARD DUST SUPPRESSION                                4701    CONVEYOR #60
3JR YARD DUST SUPPRESSION                                4701    CONVEYOR #60
3JR YARD DUST SUPPRESSION                                4701    CONVEYOR #60
3JR YARD DUST SUPPRESSION                                4701    CONVEYOR #60
3JR YARD DUST SUPPRESSION                                4701    CONVEYOR #60
3JR YARD DUST SUPPRESSION                                4702    CONVEYOR #61
3JR YARD DUST SUPPRESSION                                4702    CONVEYOR #61
3JR YARD DUST SUPPRESSION                                4702    CONVEYOR #61
3JR YARD DUST SUPPRESSION                                4705    CONVEYOR #80-A
3JR YARD DUST SUPPRESSION                                4705    CONVEYOR #80-A
3JR YARD DUST SUPPRESSION                                4705    CONVEYOR #80-A
3JR YARD DUST SUPPRESSION                                5111    2.5-4 CARBON STEEL
3JR YARD DUST SUPPRESSION                                5414    2.5-4 CASTIRON PIP
3JR YARD DUST SUPPRESSION                                5424    6-8/CAST IRON PIPE
3JR YARD DUST SUPPRESSION                                5531    2 & U CARBON ST-CS
3JR YARD DUST SUPPRESSION                                6141    INSTRUMENTS
3JR YARD DUST SUPPRESSION                                6170    INSTR. PIPE & TUBE
3JR YARD DUST SUPPRESSION                                8221    TOT COND-PWR &CON
3JR YARD DUST SUPPRESSION                                8411    P&C W&C ALL SIZES
3KH SERVICE GAS H2 & C08                                 5531    2 & U CARBON ST-CS
3KH SERVICE GAS H2 & C09                                 8411    P&C W&C ALL SIZES
</TABLE>
<PAGE>   122

                                                       Common Facilities 3-4 and
                                                       Common Facilities 1-2-3-4

                                                       FERC Account 312.2

<TABLE>
<CAPTION>
                                                          COST
                                                          CODE       DESCRIPTION
                                                          ----    ------------------
<S>                                                       <C>     <C>
3JM BOTTOM ASH HANDLING                                   4730    ASH HANDLING SYS
3NG 480 V LOAD CENTERS                                    7130    480V LOADCENTERS
3NG 480 V LOAD CENTERS                                    8411    P&C W&C ALL SIZES
3NH 480 V MOTOR CONTROL CENTERS                           7510    MTR/CONTROL CENTR
3NH 480 V MOTOR CONTROL CENTERS                           7522    LOCAL CONTROL STA
3NH 48O V MOTOR CONTROL CENTERS                           7523    480V RECEPTACLES
3NH 480 V MOTOR CONTROL CENTERS                           8411    P&C W&C ALL SIZES
3RJ PLANT COMPUTER                                        8411    P&C W&C ALL SIZES
3RP REMOTE MULTIPLEXING                                   8411    P&C W&C ALL SIZES
3RS EDAC                                                  6444    EDAC EQUIP
3RT EEMAC                                                 6440    EMAC EQUIP
3SC SCRUBBER WASH TRAY & MIST ELIMINAT                    1502    CONC. POND BLDGS
3SC SCRUBBER WASH TRAY & MIST ELIMINAT                    1504    CONC. PIPE SUPPRTS
3SC SCRUBBER WASH TRAY & MIST ELIMINAT                    1509    CONC. MISC FOUND.
3SC SCRUBBER WASH TRAY & MIST ELIMINAT                    1586    CONC. PUMP,TK,EQUI
3SC SCRUBBER WASH TRAY & MIST ELIMINAT                    4372    FLOATG/PLATFORM P
3SC SCRUBBER WASH TRAY & MIST ELIMINAT                    4372    FLOATG/PLATFORM P
3SC SCRUBBER WASH TRAY & MIST ELIMINAT                    4376    DREDGE BELT GUARD
3SC SCRUBBER WASH TRAY & MIST ELIMINAT                    4775    SCRUBBER SLUDGE T
3SC SCRUBBER WASH TRAY & MIST ELIMINAT                    5111    2.5-4 CARBON STEEL
3SC SCRUBBER WASH TRAY & MIST ELIMINAT                    5114    2.5-4 STAINLESS
3SC SCRUBBER WASH TRAY & MIST ELIMINAT                    5124    6-8STAINLESS STEEL
3SC SCRUBBER WASH TRAY & MIST ELIMINAT                    5134    10-14 STAINLESS
3SC SCRUBBER WASH TRAY & MIST ELIMINAT                    5141    16-18 CARBON STEEL
3SC SCRUBBER WASH TRAY & MIST ELIMINAT                    5144    16-18 STAINLESS
3SC SCRUBBER WASH TRAY & MIST ELIMINAT                    5413    2.5-4 CS LINED PIP
3SC SCRUBBER WASH TRAY & MIST ELIMINAT                    5422    6-8/PVC PIPE
3SC SCRUBBER WASH TRAY & MIST ELIMINAT                    5423    6-8/CS LINED PIPE
3SC SCRUBBER WASH TRAY & MIST ELIMINAT                    5427    6-8/F/REIN EPOXY
3SC SCRUBBER WASH TRAY & MIST ELIMINAT                    5430    10-14/RUBBER HOSE
3SC SCRUBBER WASH TRAY & MIST ELIMINAT                    5432    10-14/PVC PIPE
3SC SCRUBBER WASH TRAY & MIST ELIMINAT                    5433    10-14/CS LINED PIP
3SC SCRUBBER WASH TRAY & MIST ELIMINAT                    5437    10-14/F/REIN EPOXY
3SC SCRUBBER WASH TRAY & MIST ELIMINAT                    5443    16-18/CS LINED PIP
3SC SCRUBBER WASH TRAY & MIST ELIMINAT                    5447    16-18/F/REIN EPOXY
3SC SCRUBBER WASH TRAY & MIST ELIMINAT                    5453    20-30/CS LINED PIP
3SC SCRUBBER WASH TRAY & MIST ELIMINAT                    5531    2 & U CARBON ST-CS
3SC SCRUBBER WASH TRAY & MIST ELIMINAT                    5534    2 & U STAIN ST-SS
3SC SCRUBBER WASH TRAY & MIST ELIMINAT                    5569    2 & U MISC. OTHER
3SC SCRUBBER WASH TRAY & MIST ELIMINAT                    5631    MISC. EXP. JOINTS
3SC SCRUBBER WASH TRAY & MIST ELIMINAT                    5910    LARGE PIPE HANGRS
3SC SCRUBBER WASH TRAY & MIST ELIMINAT                    6141    INSTRUMENTS
3SC SCRUBBER WASH TRAY & MIST ELIMINAT                    6170    INSTR. PIPE & TUBE
3SC SCRUBBER WASH TRAY & MIST ELIMINAT                    8221    TOT COND-PWR & CON
3SC SCRUBBER WASH TRAY & MIST ELIMINAT                    8411    P&C W&C ALL SIZES
3SC SCRUBBER WASH TRAY & MIST ELIMINAT                    8435    P&C WIR/AC/2KV-8KV
3SG SCRUBBER WASTE DISPOSAL & POND RET                    1502    CONC. POND BLDGS
3SG SCRUBBER WASTE DISPOSAL & POND RET                    1504    CONC. PIPE SUPPRTS
3SG SCRUBBER WASTE DISPOSAL & POND RET                    1586    CONC. PUMP,TK,EQUI
</TABLE>
<PAGE>   123
                                                       Common Facilities 3-4 and
                                                       Common Facilities 1-2-3-4

                                                       FERC Account 312.2

<TABLE>
<CAPTION>
                                                          COST
                                                          CODE       DESCRIPTION
                                                          ----    ------------------
<S>                                                       <C>     <C>
3SG SCRUBBER WASTE DISPOSAL & POND RET                    4367    MISC. SUMP PMPS/DR
3SG SCRUBBER WASTE DISPOSAL & POND RET                    4367    MISC. SUMP PMPS/DR
3SG SCRUBBER WASTE DISPOSAL & POND RET                    4367    MISC. SUMP PMPS/DR
3SG SCRUBBER WASTE DISPOSAL & POND RET                    4367    MISC. SUMP PMPS/DR
3SG SCRUBBER WASTE DISPOSAL & POND RET                    4367    MISC. SUMP PMPS/DR
3SG SCRUBBER WASTE DISPOSAL & POND RET                    4367    MISC. SUMP PMPS/DR
3SG SCRUBBER WASTE DISPOSAL & POND RET                    4367    MISC. SUMP PMPS/DR
3SG SCRUBBER WASTE DISPOSAL & POND RET                    4372    FLOATG/PLATFORM/P
3SG SCRUBBER WASTE DISPOSAL & POND RET                    4372    FLOATG/PLATFORM/P
3SG SCRUBBER WASTE DISPOSAL & POND RET                    4372    FLOATG/PLATFORM/P
3SG SCRUBBER WASTE DISPOSAL & POND RET                    4372    FLOATG/PLATFORM/P
3SG SCRUBBER WASTE DISPOSAL & POND RET                    4372    FLOATG/PLATFORM/P
3SG SCRUBBER WASTE DISPOSAL & POND RET                    4372    FLOATG/PLATFORM/P
3SG SCRUBBER WASTE DISPOSAL & POND RET                    4372    FLOATG/PLATFORM/P
3SG SCRUBBER WASTE DISPOSAL & POND RET                    4372    FLOATG/PLATFORM/P
3SG SCRUBBER WASTE DISPOSAL & POND RET                    4372    FLOATG/PLATFORM/P
3SG SCRUBBER WASTE DISPOSAL & POND RET                    4372    FLOATG/PLATFORM/P
3SG SCRUBBER WASTE DISPOSAL & POND RET                    4372    FLOATG/PLATFORM/P
3SG SCRUBBER WASTE DISPOSAL & POND RET                    4372    FLOATG/PLATFORM/P
3SG SCRUBBER WASTE DISPOSAL & POND RET                    4372    FLOATG/PLATFORM/P
3SG SCRUBBER WASTE DISPOSAL & POND RET                    4372    FLOATG/PLATFORM/P
3SG SCRUBBER WASTE DISPOSAL & POND RET                    4372    FLOATG/PLATFORM/P
3SG SCRUBBER WASTE DISPOSAL & POND RET                    4372    FLOATG/PLATFORM/P
3SG SCRUBBER WASTE DISPOSAL & POND RET                    4372    FLOATG/PLATFORM/P
3SG SCRUBBER WASTE DISPOSAL & POND RET                    4372    FLOATG/PLATFORM/P
3SG SCRUBBER WASTE DISPOSAL & POND RET                    4375    MISC. SCR PUMP/DRV
3SG SCRUBBER WASTE DISPOSAL & POND RET                    4375    MISC. SCR PUMP/DRV
3SG SCRUBBER WASTE DISPOSAL & POND RET                    4577    COMMON EFFLUENT/T
3SG SCRUBBER WASTE DISPOSAL & POND RET                    4578    POND RETURN TANK
3SG SCRUBBER WASTE DISPOSAL & POND RET                    4579    AGITATORS
3SG SCRUBBER WASTE DISPOSAL & POND RET                    4579    AGITATORS
3SG SCRUBBER WASTE DISPOSAL & POND RET                    4579    AGITATORS
3SG SCRUBBER WASTE DISPOSAL & POND RET                    4773    SCRUBBER PUMPS
3SG SCRUBBER WASTE DISPOSAL & POND RET                    4773    SCRUBBER PUMPS
3SG SCRUBBER WASTE DISPOSAL & POND RET                    4777    EFFLUENT PUMPS
3SG SCRUBBER WASTE DISPOSAL & POND RET                    4786    SLURRY LINE DR PMP
3SG SCRUBBER WASTE DISPOSAL & POND RET                    4811    BASKET STRAINERS
3SG SCRUBBER WASTE DISPOSAL & POND RET                    4812    START-UP STRAINERS
3SG SCRUBBER WASTE DISPOSAL & POND RET                    5111    2.5-4 CARBON STEEL
3SG SCRUBBER WASTE DISPOSAL & POND RET                    5114    2.5-4 STAINLESS
3SG SCRUBBER WASTE DISPOSAL & POND RET                    5121    6-8 CARBON STEEL
3SG SCRUBBER WASTE DISPOSAL & POND RET                    5124    6-8 STAINLESS STEEL
3SG SCRUBBER WASTE DISPOSAL & POND RET                    5131    10-14 CARBON STEEL
3SG SCRUBBER WASTE DISPOSAL & POND RET                    5134    10-14 STAINLESS
3SG SCRUBBER WASTE DISPOSAL & POND RET                    5141    16-18 CARBON STEEL
3SG SCRUBBER WASTE DISPOSAL & POND RET                    5144    16-18 STAINLESS
3SG SCRUBBER WASTE DISPOSAL & POND RET                    5154    20-30 STAINLESS
3SG SCRUBBER WASTE DISPOSAL & POND RET                    5411    2.5-4 CU & BRASS
3SG SCRUBBER WASTE DISPOSAL & POND RET                    5413    2.5-4 CS LINED PIP
</TABLE>
<PAGE>   124
                                                       Common Facilities 3-4 and
                                                       Common Facilities 1-2-3-4

                                                       FERC Account 312.2

<TABLE>
<CAPTION>
                                                          COST
                                                          CODE       DESCRIPTION
                                                          ----    ------------------
<S>                                                       <C>     <C>
3SG SCRUBBER WASTE DISPOSAL & POND RET                    5423    6-8/CS LINED PIPE
3SG SCRUBBER WASTE DISPOSAL & POND RET                    5424    6-8/CAST IRON PIPE
3SG SCRUBBER WASTE DISPOSAL & POND RET                    5427    6-8/F/REIN EPOXY
3SG SCRUBBER WASTE DISPOSAL & POND RET                    5430    10-14/RUBBER HOSE
3SG SCRUBBER WASTE DISPOSAL & POND RET                    5432    10-14/PVC PIPE
3SG SCRUBBER WASTE DISPOSAL & POND RET                    5433    10-14/CS LINED PIP
3SG SCRUBBER WASTE DISPOSAL & POND RET                    5437    10-14/F/REIN EPOXY
3SG SCRUBBER WASTE DISPOSAL & POND RET                    5443    16-18/CS LINED PIP
3SG SCRUBBER WASTE DISPOSAL & POND RET                    5447    16-18/F/REIN EPOXY
3SG SCRUBBER WASTE DISPOSAL & POND RET                    5455    20-30/RE/CONC PIPE
3SG SCRUBBER WASTE DISPOSAL & POND RET                    5461    REP EFF POND PIPE
3SG SCRUBBER WASTE DISPOSAL & POND RET                    5531    2 & U CARBON ST-CS
3SG SCRUBBER WASTE DISPOSAL & POND RET                    5534    2 & U STAIN ST-SS
3SG SCRUBBER WASTE DISPOSAL & POND RET                    5631    MISC. EXP. JOINTS
3SG SCRUBBER WASTE DISPOSAL & POND RET                    5910    LARGE PIPE HANGRS
3SG SCRUBBER WASTE DISPOSAL & POND RET                    6141    INSTRUMENTS
3SG SCRUBBER WASTE DISPOSAL & POND RET                    6170    INSTR. PIPE & TUBE
3SG SCRUBBER WASTE DISPOSAL & POND RET                    6175    INSTRUMENT VALVES
3SG SCRUBBER WASTE DISPOSAL & POND RET                    6175    INSTRUMENT VALVES
3SG SCRUBBER WASTE DISPOSAL & POND RET                    6175    INSTRUMENT VALVES
3SG SCRUBBER WASTE DISPOSAL & POND RET                    6175    INSTRUMENT VALVES
3SG SCRUBBER WASTE DISPOSAL & POND RET                    6175    INSTRUMENT VALVES
3SG SCRUBBER WASTE DISPOSAL & POND RET                    6175    INSTRUMENT VALVES
3SG SCRUBBER WASTE DISPOSAL & POND RET                    6261    MULTIPLEX EQUIP
3SG SCRUBBER WASTE DISPOSAL & POND RET                    7110    3KV-8KV SWITCHGEA
3SG SCRUBBER WASTE DISPOSAL & POND RET                    7110    3KV-8KV SWITCHGEA
3SG SCRUBBER WASTE DISPOSAL & POND RET                    8221    TOT COND-PWR & CON
3SG SCRUBBER WASTE DISPOSAL & POND RET                    8411    P&C W&C ALL SIZES
3SG SCRUBBER WASTE DISPOSAL & POND RET                    8435    P&C WIR/AC/2KV-8KV
3SH LIME UNLOADING & STORAGE                              1586    CONC. PUMP,TK,EQUI
3SH LIME UNLOADING & STORAGE                              4770    LIME HANDLING SYS
3SH LIME UNLOADING & STORAGE                              4770    LIME HANDLING SYS
3SH LIME UNLOADING & STORAGE                              4770    LIME HANDLING SYS
3SH LIME UNLOADING & STORAGE                              4770    LIME HANDLING SYS
3SH LIME UNLOADING & STORAGE                              4770    LIME HANDLING SYS
3SH LIME UNLOADING & STORAGE                              4770    LIME HANDLING SYS
3SH LIME UNLOADING & STORAGE                              4770    LIME HANDLING SYS
3SH LIME UNLOADING & STORAGE                              4770    LIME HANDLING SYS
3SH LIME UNLOADING & STORAGE                              4770    LIME HANDLING SYS
3SH LIME UNLOADING & STORAGE                              4770    LIME HANDLING SYS
3SH LIME UNLOADING & STORAGE                              4770    LIME HANDLING SYS
3SH LIME UNLOADING & STORAGE                              4770    LIME HANDLING SYS
3SH LIME UNLOADING & STORAGE                              4770    LIME HANDLING SYS
3SH LIME UNLOADING & STORAGE                              4770    LIME HANDLING SYS
3SH LIME UNLOADING & STORAGE                              4770    LIME HANDLING SYS
3SH LIME UNLOADING & STORAGE                              4770    LIME HANDLING SYS
3SH LIME UNLOADING & STORAGE                              4770    LIME HANDLING SYS
3SH LIME UNLOADING & STORAGE                              4770    LIME HANDLING SYS
3SH LIME UNLOADING & STORAGE                              4770    LIME HANDLING SYS
</TABLE>
<PAGE>   125
                                                       Common Facilities 3-4 and
                                                       Common Facilities 1-2-3-4

                                                       FERC Account 312.2

<TABLE>
<CAPTION>
                                                          COST
                                                          CODE       DESCRIPTION
                                                          ----    ------------------
<S>                                                       <C>     <C>
3SH LIME UNLOADING & STORAGE                              4770    LIME HANDLING SYS
3SH LIME UNLOADING & STORAGE                              4770    LIME HANDLING SYS
3SH LIME UNLOADING & STORAGE                              4770    LIME HANDLING SYS
3SH LIME UNLOADING & STORAGE                              4770    LIME HANDLING SYS
3SH LIME UNLOADING & STORAGE                              4770    LIME HANDLING SYS
3SH LIME UNLOADING & STORAGE                              4772    LIME PUMPS & TANKS
3SH LIME UNLOADING & STORAGE                              4772    LIME PUMPS & TANKS
3SH LIME UNLOADING & STORAGE                              4772    LIME PUMPS & TANKS
3SH LIME UNLOADING & STORAGE                              4772    LIME PUMPS & TANKS
3SH LIME UNLOADING & STORAGE                              4772    LIME PUMPS & TANKS
3SH LIME UNLOADING & STORAGE                              5111    2.5-4 CARBON STEEL
3SH LIME UNLOADING & STORAGE                              5121    6-8 CARBON STEEL
3SH LIME UNLOADING & STORAGE                              5131    10-14 CARBON STEEL
3SH LIME UNLOADING & STORAGE                              5531    2 & U CARBON ST-CS
3SH LIME UNLOADING & STORAGE                              5910    LARGE PIPE HANGRS
3SH LIME UNLOADING & STORAGE                              6141    INSTRUMENTS
3SH LIME UNLOADING & STORAGE                              6170    INSTR. PIPE & TUBE
3SH LIME UNLOADING & STORAGE                              8411    P&C W&C ALL SIZES
3SI HIGH CALCIUM LIME PREP & ALAKALI DIST                 1586    CONC. PUMP,TK,EQUI
3SI HIGH CALCIUM LIME PREP & ALAKALI DIST                 4575    LIME SLURRY TANK
3SI HIGH CALCIUM LIME PREP & ALAKALI DIST                 4575    LIME SLURRY TANK
3SI HIGH CALCIUM LIME PREP & ALAKALI DIST                 4579    AGITATORS
3SI HIGH CALCIUM LIME PREP & ALAKALI DIST                 4579    AGITATORS
3SI HIGH CALCIUM LIME PREP & ALAKALI DIST                 4579    AGITATORS
3SI HIGH CALCIUM LIME PREP & ALAKALI DIST                 4770    LIME HANDLING SYS
3SI HIGH CALCIUM LIME PREP & ALAKALI DIST                 4770    LIME HANDLING SYS
3SI HIGH CALCIUM LIME PREP & ALAKALI DIST                 4770    LIME HANDLING SYS
3SI HIGH CALCIUM LIME PREP & ALAKALI DIST                 4770    LIME HANDLING SYS
3SI HIGH CALCIUM LIME PREP & ALAKALI DIST                 4770    LIME HANDLING SYS
3SI HIGH CALCIUM LIME PREP & ALAKALI DIST                 4770    LIME HANDLING SYS
3SI HIGH CALCIUM LIME PREP & ALAKALI DIST                 4770    LIME HANDLING SYS
3SI HIGH CALCIUM LIME PREP & ALAKALI DIST                 4770    LIME HANDLING SYS
3SI HIGH CALCIUM LIME PREP & ALAKALI DIST                 4770    LIME HANDLING SYS
3SI HIGH CALCIUM LIME PREP & ALAKALI DIST                 4770    LIME HANDLING SYS
3SI HIGH CALCIUM LIME PREP & ALAKALI DIST                 4770    LIME HANDLING SYS
3SI HIGH CALCIUM LIME PREP & ALAKALI DIST                 4770    LIME HANDLING SYS
3SI HIGH CALCIUM LIME PREP & ALAKALI DIST                 4770    LIME HANDLING SYS
3SI HIGH CALCIUM LIME PREP & ALAKALI DIST                 4770    LIME HANDLING SYS
3SI HIGH CALCIUM LIME PREP & ALAKALI DIST                 4770    LIME HANDLING SYS
3SI HIGH CALCIUM LIME PREP & ALAKALI DIST                 4770    LIME HANDLING SYS
3SI HIGH CALCIUM LIME PREP & ALAKALI DIST                 4770    LIME HANDLING SYS
3SI HIGH CALCIUM LIME PREP & ALAKALI DIST                 4770    LIME HANDLING SYS
3SI HIGH CALCIUM LIME PREP & ALAKALI DIST                 4770    LIME HANDLING SYS
3SI HIGH CALCIUM LIME PREP & ALAKALI DIST                 4770    LIME HANDLING SYS
3SI HIGH CALCIUM LIME PREP & ALAKALI DIST                 4770    LIME HANDLING SYS
3SI HIGH CALCIUM LIME PREP & ALAKALI DIST                 4772    LIME PUMPS & TANKS
3SI HIGH CALCIUM LIME PREP & ALAKALI DIST                 4772    LIME PUMPS & TANKS
3SI HIGH CALCIUM LIME PREP & ALAKALI DIST                 4812    START-UP STRAINERS
3SI HIGH CALCIUM LIME PREP & ALAKALI DIST                 5111    2.5-4 CARBON STEEL
</TABLE>
<PAGE>   126
                                                       Common Facilities 3-4 and
                                                       Common Facilities 1-2-3-4

                                                       FERC Account 312.2

<TABLE>
<CAPTION>
                                                          COST
                                                          CODE       DESCRIPTION
                                                          ----    ------------------
<S>                                                       <C>     <C>
3SI HIGH CALCIUM LIME PREP & ALAKALI DIST                 5121    6-8 CARBON STEEL
3SI HIGH CALCIUM LIME PREP & ALAKALI DIST                 5412    2.5-4.0/PVC PIPE
3SI HIGH CALCIUM LIME PREP & ALAKALI DIST                 5422    6-8/PVC PIPE
3SI HIGH CALCIUM LIME PREP & ALAKALI DIST                 5531    2 & U CARBON ST-CS
3SI HIGH CALCIUM LIME PREP & ALAKALI DIST                 5534    2 & U STAIN ST-SS
3SI HIGH CALCIUM LIME PREP & ALAKALI DIST                 5569    2 & U MISC. OTHER
3SI HIGH CALCIUM LIME PREP & ALAKALI DIST                 5910    LARGE PIPE HANGRS
3SI HIGH CALCIUM LIME PREP & ALAKALI DIST                 6141    INSTRUMENTS
3SI HIGH CALCIUM LIME PREP & ALAKALI DIST                 6170    INSTR. PIPE & TUBE
3SI HIGH CALCIUM LIME PREP & ALAKALI DIST                 8221    TOT COND-PWR & CON
3SI HIGH CALCIUM LIME PREP & ALAKALI DIST                 8411    P&C W&C ALL SIZES
3SJ DOLOMITIC LIME PREPARATION                            1586    CONC. PUMP,TK,EQUI
3SJ DOLOMITIC LIME PREPARATION                            4574    CHEM SEASON SILO
3SJ DOLOMITIC LIME PREPARATION                            4770    LIME HANDLING SYS
3SJ DOLOMITIC LIME PREPARATION                            4770    LIME HANDLING SYS
3SJ DOLOMITIC LIME PREPARATION                            4770    LIME HANDLING SYS
3SJ DOLOMITIC LIME PREPARATION                            4770    LIME HANDLING SYS
3SJ DOLOMITIC LIME PREPARATION                            4770    LIME HANDLING SYS
3SJ DOLOMITIC LIME PREPARATION                            4770    LIME HANDLING SYS
3SJ DOLOMITIC LIME PREPARATION                            4770    LIME HANDLING SYS
3SJ DOLOMITIC LIME PREPARATION                            4770    LIME HANDLING SYS
3SJ DOLOMITIC LIME PREPARATION                            4770    LIME HANDLING SYS
3SJ DOLOMITIC LIME PREPARATION                            4770    LIME HANDLING SYS
3SJ DOLOMITIC LIME PREPARATION                            4770    LIME HANDLING SYS
3SJ DOLOMITIC LIME PREPARATION                            4770    LIME HANDLING SYS
3SJ DOLOMITIC LIME PREPARATION                            4770    LIME HANDLING SYS
3SJ DOLOMITIC LIME PREPARATION                            4770    LIME HANDLING SYS
3SJ DOLOMITIC LIME PREPARATION                            4770    LIME HANDLING SYS
3SJ DOLOMITIC LIME PREPARATION                            4770    LIME HANDLING SYS
3SJ DOLOMITIC LIME PREPARATION                            4770    LIME HANDLING SYS
3SJ DOLOMITIC LIME PREPARATION                            4770    LIME HANDLING SYS
3SJ DOLOMITIC LIME PREPARATION                            4770    LIME HANDLING SYS
3SJ DOLOMITIC LIME PREPARATION                            4770    LIME HANDLING SYS
3SJ DOLOMITIC LIME PREPARATION                            4770    LIME HANDLING SYS
3SJ DOLOMITIC LIME PREPARATION                            4770    LIME HANDLING SYS
3SJ DOLOMITIC LIME PREPARATION                            4770    LIME HANDLING SYS
3SJ DOLOMITIC LIME PREPARATION                            4770    LIME HANDLING SYS
3SJ DOLOMITIC LIME PREPARATION                            4770    LIME HANDLING SYS
3SJ DOLOMITIC LIME PREPARATION                            4770    LIME HANDLING SYS
3SJ DOLOMITIC LIME PREPARATION                            4770    LIME HANDLING SYS
3SJ DOLOMITIC LIME PREPARATION                            4770    LIME HANDLING SYS
3SJ DOLOMITIC LIME PREPARATION                            4770    LIME HANDLING SYS
3SJ DOLOMITIC LIME PREPARATION                            4770    LIME HANDLING SYS
3SJ DOLOMITIC LIME PREPARATION                            4770    LIME HANDLING SYS
3SJ DOLOMITIC LIME PREPARATION                            4770    LIME HANDLING SYS
3SJ DOLOMITIC LIME PREPARATION                            4770    LIME HANDLING SYS
3SJ DOLOMITIC LIME PREPARATION                            4770    LIME HANDLING SYS
3SJ DOLOMITIC LIME PREPARATION                            4770    LIME HANDLING SYS
3SJ DOLOMITIC LIME PREPARATION                            4770    LIME HANDLING SYS
</TABLE>
<PAGE>   127
                                                       Common Facilities 3-4 and
                                                       Common Facilities 1-2-3-4

                                                       FERC Account 312.2

<TABLE>
<CAPTION>
                                                          COST
                                                          CODE       DESCRIPTION
                                                          ----    ------------------
<S>                                                       <C>     <C>
3SJ DOLOMITIC LIME PREPARATION                            4770    LIME HANDLING SYS
3SJ DOLOMITIC LIME PREPARATION                            4770    LIME HANDLING SYS
3SJ DOLOMITIC LIME PREPARATION                            4770    LIME HANDLING SYS
3SJ DOLOMITIC LIME PREPARATION                            4770    LIME HANDLING SYS
3SJ DOLOMITIC LIME PREPARATION                            4770    LIME HANDLING SYS
3SJ DOLOMITIC LIME PREPARATION                            4770    LIME HANDLING SYS
3SJ DOLOMITIC LIME PREPARATION                            4770    LIME HANDLING SYS
3SJ DOLOMITIC LIME PREPARATION                            4770    LIME HANDLING SYS
3SJ DOLOMITIC LIME PREPARATION                            4770    LIME HANDLING SYS
3SJ DOLOMITIC LIME PREPARATION                            4772    LIME PUMPS & TANKS
3SJ DOLOMITIC LIME PREPARATION                            4772    LIME PUMPS & TANKS
3SJ DOLOMITIC LIME PREPARATION                            4772    LIME PUMPS & TANKS
3SJ DOLOMITIC LIME PREPARATION                            4772    LIME PUMPS & TANKS
3SJ DOLOMITIC LIME PREPARATION                            4772    LIME PUMPS & TANKS
3SJ DOLOMITIC LIME PREPARATION                            4772    LIME PUMPS & TANKS
3SJ DOLOMITIC LIME PREPARATION                            4772    LIME PUMPS & TANKS
3SJ DOLOMITIC LIME PREPARATION                            4772    LIME PUMPS & TANKS
3SJ DOLOMITIC LIME PREPARATION                            4772    LIME PUMPS & TANKS
3SJ DOLOMITIC LIME PREPARATION                            4772    LIME PUMPS & TANKS
3SJ DOLOMITIC LIME PREPARATION                            4772    LIME PUMPS & TANKS
3SJ DOLOMITIC LIME PREPARATION                            4772    LIME PUMPS & TANKS
3SJ DOLOMITIC LIME PREPARATION                            4772    LIME PUMPS & TANKS
3SJ DOLOMITIC LIME PREPARATION                            4772    LIME PUMPS & TANKS
3SJ DOLOMITIC LIME PREPARATION                            4772    LIME PUMPS & TANKS
3SJ DOLOMITIC LIME PREPARATION                            4772    LIME PUMPS & TANKS
3SJ DOLOMITIC LIME PREPARATION                            4812    START-UP STRAINERS
3SJ DOLOMITIC LIME PREPARATION                            4891    LAB ANALYSIS
3SJ DOLOMITIC LIME PREPARATION                            4894    EQUIPMENT INSULAT
3SJ DOLOMITIC LIME PREPARATION                            5111    2.5-4 CARBON STEEL
3SJ DOLOMITIC LIME PREPARATION                            5121    6-8 CARBON STEEL
3SJ DOLOMITIC LIME PREPARATION                            5412    2.5-4.0/PVC PIPE
3SJ DOLOMITIC LIME PREPARATION                            5531    2 & U CARBON ST-CS
3SJ DOLOMITIC LIME PREPARATION                            5910    LARGE PIPE HANGRS
3SJ DOLOMITIC LIME PREPARATION                            6141    INSTRUMENTS
3SJ DOLOMITIC LIME PREPARATION                            6170    INSTR. PIPE & TUBE
3SJ DOLOMITIC LIME PREPARATION                            8411    P&C W&C ALL SIZES
9E EFFLUENT HOLDING POND                                  2638    EVAPORATION SYSTE
9K LIME HANDLING FACILITIES                               6231    LOCAL ELEC. PANELS
9K LIME HANDLING FACILITIES                               8110    CABLE TRAY/FITTING
9K LIME HANDLING FACILITIES                               8221    TOT COND-PWR & CON
9K LIME HANDLING FACILITIES                               8411    P&C W&C ALL SIZES
9P SCRUBBER BUILDING COMMON                               6231    LOCAL ELEC. PANELS
9P SCRUBBER BUILDING COMMON                               8110    CABLE TRAY/FITTING
9P SCRUBBER BUILDING COMMON                               8221    TOT COND-PWR & CON
9P SCRUBBER BUILDING COMMON                               8411    P&C W&C ALL SIZES
9Q AUXILIARY SCRUBBER BUILDING                            8110    CABLE TRAY/FITTING
9Q AUXILIARY SCRUBBER BUILDING                            8221    TOT COND-PWR & CON
9Q AUXILIARY SCRUBBER BUILDING                            8411    P&C W&C ALL SIZES
9X CORETTE PILOT PLANT                                    4990    PILOT PLANT
</TABLE>
<PAGE>   128
                                                       Common Facilities 3-4 and
                                                       Common Facilities 1-2-3-4

                                                       FERC Account 314

<TABLE>
<CAPTION>
                                                          COST
                                                          CODE        DESCRIPTION
                                                          -----   ----------------------
<S>                                                       <C>     <C>
3CF LUBE OIL STORAGE, TRANS. & PURIFICATION               1586    CONC. PUMP,TK,EQUI
3CF LUBE OIL STORAGE, TRANS. & PURIFICATION               4563    LUBE OIL STOR TKS
3CF LUBE OIL STORAGE, TRANS. & PURIFICATION               4811    BASKET STRAINERS
3CF LUBE OIL STORAGE, TRANS. & PURIFICATION               5111    2.5-4 CARBON STEEL
3CF LUBE OIL STORAGE, TRANS. & PURIFICATION               5114    2.5-4 STAINLESS
3CF LUBE OIL STORAGE, TRANS. & PURIFICATION               5121    6-8 CARBON STEEL
3CF LUBE OIL STORAGE, TRANS. & PURIFICATION               5531    2 & U CARBON ST-CS
3CF LUBE OIL STORAGE, TRANS. & PURIFICATION               5910    LARGE PIPE HANGRS
3CF LUBE OIL STORAGE, TRANS. & PURIFICATION               6141    INSTRUMENTS
3CF LUBE OIL STORAGE, TRANS. & PURIFICATION               6170    INSTR. PIPE & TUBE
3CF LUBE OIL STORAGE, TRANS. & PURIFICATION               8221    TOT COND-PWR & CON
3CF LUBE OIL STORAGE, TRANS. & PURIFICATION               8411    P&C W&C ALL SIZES
3DD CIRC WATER CHEMICAL INJECTION                         5114    2.5-4 STAINLESS
3DD CIRC WATER CHEMICAL INJECTION                         5413    2.5-4 CS LINED PIP
3DD CIRC WATER CHEMICAL INJECTION                         5423    6-8/CS LINED PIPE
3DD CIRC WATER CHEMICAL INJECTION                         5531    2 & U CARBON ST-CS
3DD CIRC WATER CHEMICAL INJECTION                         5534    2 & U STAIN ST-SS
3DD CIRC WATER CHEMICAL INJECTION                         5537    2 & U CHRO-MOLY-C
3DD CIRC WATER CHEMICAL INJECTION                         5910    LARGE PIPE HANGRS
3DD CIRC WATER CHEMICAL INJECTION                         6141    INSTRUMENTS
3DD CIRC WATER CHEMICAL INJECTION                         6170    INSTR. PIPE & TUBE
3DD CIRC WATER CHEMICAL INJECTION                         8221    TOT COND-PWR & CON
3DD CIRC WATER CHEMICAL INJECTION                         8411    P&C W&C ALL SIZES
3KH SERVICE GAS H2 AND CO10                               5531    2 & U CARBON ST-CS
3KH SERVICE GAS H2 AND CO11                               8411    P&C W&C ALL SIZES
3KH SERVICE GAS H2 AND CO9                                4572    BULK H2 STORAGE TK
</TABLE>
<PAGE>   129

                                                       Common Facilities 3-4 and
                                                       Common Facilities 1-2-3-4

                                                       FERC Account 315

<TABLE>
<CAPTION>
                                                          COST
                                                          CODE        DESCRIPTION
                                                          ----    --------------------
<S>                                                       <C>     <C>
3KJ EMERGENCY DIESEL GENERATOR                            1586    CONC. PUMP,TK,EQUI
3KJ EMERGENCY DIESEL GENERATOR                            5121    6-8 CARBON STEEL
3KJ EMERGENCY DIESEL GENERATOR                            5131    10-14 CARBON STEEL
3KJ EMERGENCY DIESEL GENERATOR                            5141    16-18 CARBON STEEL
3KJ EMERGENCY DIESEL GENERATOR                            5531    2 & U CARBON ST-CS
3KJ EMERGENCY DIESEL GENERATOR                            5910    LARGE PIPE HANGRS
3KJ EMERGENCY DIESEL GENERATOR                            6170    INSTR. PIPE & TUBE
3KJ EMERGENCY DIESEL GENERATOR                            7110    3KV-8KV SWITCHGEAR
3KJ EMERGENCY DIESEL GENERATOR                            7435    EMERG/DIESEL GEN
3KJ EMERGENCY DIESEL GENERATOR                            7435    EMERG/DIESEL GEN
3KJ EMERGENCY DIESEL GENERATOR                            7435    EMERG/DIESEL GEN
3KJ EMERGENCY DIESEL GENERATOR                            7435    EMERG/DIESEL GEN
3KJ EMERGENCY DIESEL GENERATOR                            7435    EMERG/DIESEL GEN
3KJ EMERGENCY DIESEL GENERATOR                            7435    EMERG/DIESEL GEN
3KJ EMERGENCY DIESEL GENERATOR                            7435    EMERG/DIESEL GEN
3KJ EMERGENCY DIESEL GENERATOR                            7435    EMERG/DIESEL GEN
3KJ EMERGENCY DIESEL GENERATOR                            7435    EMERG/DIESEL GEN
3KJ EMERGENCY DIESEL GENERATOR                            7435    EMERG/DIESEL GEN
3KJ EMERGENCY DIESEL GENERATOR                            7435    EMERG/DIESEL GEN
3KJ EMERGENCY DIESEL GENERATOR                            7435    EMERG/DIESEL GEN
3KJ EMERGENCY DIESEL GENERATOR                            7435    EMERG/DIESEL GEN
3KJ EMERGENCY DIESEL GENERATOR                            7435    EMERG/DIESEL GEN
3KJ EMERGENCY DIESEL GENERATOR                            7435    EMERG/DIESEL GEN
3KJ EMERGENCY DIESEL GENERATOR                            7435    EMERG/DIESEL GEN
3KJ EMERGENCY DIESEL GENERATOR                            7435    EMERG/DIESEL GEN
3KJ EMERGENCY DIESEL GENERATOR                            8411    P&C W&C ALL SIZES
3MC STARTUP TRANSFORMER                                   1588    CONC. TRANSFMR FND
3MC STARTUP TRANSFORMER                                   7220    START-UP TRANSFMR
3MC STARTUP TRANSFORMER                                   7250    GROUND RESISTORS
3MC STARTUP TRANSFORMER                                   7250    GROUND RESISTORS
3MC STARTUP TRANSFORMER                                   7250    GROUND RESISTORS
3MC STARTUP TRANSFORMER                                   7250    GROUND RESISTORS
3MC STARTUP TRANSFORMER                                   7340    AUXILIARY BUSDUCT
3MC STARTUP TRANSFORMER                                   8411    P&C W&C ALL SIZES
3NE EMERGENCY POWER SUPPLY                                8411    P&C W&C ALL SIZES
3NE EMERGENCY POWER SUPPLY                                8435    P&C WIR/AC/2KV-8KV
3NG 480 V LOAD CENTERS                                    7130    480V LOADCENTERS
3NG 480 V LOAD CENTERS                                    8411    P&C W&C ALL SIZES
3NH 480 V MOTOR CONTROL CENTERS                           7510    MTR/CONTROL CENTRS
3NH 480 V MOTOR CONTROL CENTERS                           7522    LOCAL CONTROL STAT
3NH 480 V MOTOR CONTROL CENTERS                           7523    480V RECEPTACLES
3NH 480 V MOTOR CONTROL CENTERS                           8411    P&C W&C ALL SIZES
3NN INSTRUMENT A.C.                                       7524    INSTRUMENT AC EQ
3NN INSTRUMENT A.C.                                       8411    P&C W&C ALL SIZES
3RJ PLANT COMPUTER                                        6221    COMPUTER & AUXILIA
3RJ PLANT COMPUTER                                        8411    P&C W&C ALL SIZES
9D MAIN BUILDING COMMON BAY                               6231    LOCAL ELEC. PANELS
9D MAIN BUILDING COMMON BAY                               8110    CABLE TRAY/FITTING
9D MAIN BUILDING COMMON BAY                               8221    TOT COND-PWR & CONT
9D MAIN BUILDING COMMON BAY                               8411    P&C W&C ALL SIZES
9H YARD COAL HANDLING                                     6231    LOCAL ELEC. PANELS
9H YARD COAL HANDLING                                     8110    CABLE TRAY/FITTING
9H YARD COAL HANDLING                                     8221    TOT COND-PWR & CONT
9H YARD COAL HANDLING                                     8411    P&C W&C ALL SIZES
</TABLE>
<PAGE>   130
                                                       Common Facilities 3-4 and
                                                       Common Facilities 1-2-3-4

                                                       FERC Account 315

<TABLE>
<CAPTION>
                                                          COST
                                                          CODE        DESCRIPTION
                                                          ----    --------------------
<S>                                                       <C>     <C>
91 COOLING TOWER PUMP HOUSE                               6231    LOCAL ELEC. PANELS
91 COOLING TOWER PUMP HOUSE                               8110    CABLE TRAY/FITTING
91 COOLING TOWER PUMP HOUSE                               8221    TOT COND-PWR & CONT
91 COOLING TOWER PUMP HOUSE                               8411    P&C W&C ALL SIZES
9J DIESEL GENERATOR BUILDING                              8110    CABLE TRAY/FITTING
9J DIESEL GENERATOR BUILDING                              8221    TOT COND-PWR & CONT
9J DIESEL GENERATOR BUILDING                              8411    P&C W&C ALL SIZES
9R WATER TREATMENT FACILITIES                             8110    CABLE TRAY/FITTING
9R WATER TREATMENT FACILITIES                             8221    TOT COND-PWR & CONT
9R WATER TREATMENT FACILITIES                             8411    P&C W&C ALL SIZES
9T SERVICE/ADMIN. BUILDING                                6231    LOCAL ELEC. PANELS
9T SERVICE/ADMIN. BUILDING                                8110    CABLE TRAY/FITTING
9T SERVICE/ADMIN. BUILDING                                8221    TOT COND-PWR & CONT
9T SERVICE/ADMIN. BUILDING                                8411    P&C W&C ALL SIZES
9Y YARD FACILITIES                                        8110    CABLE TRAY/FITTING
9Y YARD FACILITIES                                        8221    TOT COND-PWR & CONT
9Y YARD FACILITIES                                        8411    P&C W&C ALL SIZES
</TABLE>
<PAGE>   131
                                                       Common Facilities 3-4 and
                                                       Common Facilities 1-2-3-4

                                                       FERC Account 316

<TABLE>
<CAPTION>
                                                          COST
                                                          CODE        DESCRIPTION
                                                          ----    --------------------
<S>                                                       <C>     <C>
3EB CLOSED COOLING WATER                                  5111    2.5-4 CARBON STEEL
3EB CLOSED COOLING WATER                                  5121    6-8 CARBON STEEL
3EB CLOSED COOLING WATER                                  5131    10-14 CARBON STEEL
3EB CLOSED COOLING WATER                                  5531    2 & U CARBON ST-CS
3EB CLOSED COOLING WATER                                  5910    LARGE PIPE HANGRS
3EB CLOSED COOLING WATER                                  6141    INSTRUMENTS
3EB CLOSED COOLING WATER                                  6170    INSTR. PIPE & TUBE
3EB CLOSED COOLING WATER                                  8411    P&C W&C ALL SIZES
3KA COMPRESSED AIR                                        1586    CONC. PUMP,TK,EQUI
3KA COMPRESSED AIR                                        4385    SERVICE AIR EQUIP
3KA COMPRESSED AIR                                        4385    SERVICE AIR EQUIP
3KA COMPRESSED AIR                                        4385    SERVICE AIR EQUIP
3KA COMPRESSED AIR                                        4385    SERVICE AIR EQUIP
3KA COMPRESSED AIR                                        4385    SERVICE AIR EQUIP
3KA COMPRESSED AIR                                        4385    SERVICE AIR EQUIP
3KA COMPRESSED AIR                                        4385    SERVICE AIR EQUIP
3KA COMPRESSED AIR                                        4385    SERVICE AIR EQUIP
3KA COMPRESSED AIR                                        4386    INSTR. AIR EQUIP.
3KA COMPRESSED AIR                                        4386    INSTR. AIR EQUIP.
3KA COMPRESSED AIR                                        4386    INSTR. AIR EQUIP.
3KA COMPRESSED AIR                                        4386    INSTR. AIR EQUIP.
3KA COMPRESSED AIR                                        4386    INSTR. AIR EQUIP.
3KA COMPRESSED AIR                                        4462    HVAC GLYCOL WTR H
3KA COMPRESSED AIR                                        5111    2.5-4 CARBON STEEL
3KA COMPRESSED AIR                                        5114    2.5-4 STAINLESS
3KA COMPRESSED AIR                                        5121    6-8 CARBON STEEL
3KA COMPRESSED AIR                                        5124    6-8 STAINLESS STEEL
3KA COMPRESSED AIR                                        5134    10-14 STAINLESS
3KA COMPRESSED AIR                                        5411    2.5-4 CU & BRASS
3KA COMPRESSED AIR                                        5531    2 & U CARBON ST-CS
3KA COMPRESSED AIR                                        5534    2 & U STAIN ST-SS
3KA COMPRESSED AIR                                        5561    2 & U COPP & BRASS
3KA COMPRESSED AIR                                        5910    LARGE PIPE HANGRS
3KA COMPRESSED AIR                                        6141    INSTRUMENTS
3KA COMPRESSED AIR                                        6170    INSTR. PIPE & TUBE
3KA COMPRESSED AIR                                        8411    P&C W&C ALL SIZES
3KA COMPRESSED AIR                                        8435    P&C WIR/AC/2KV-8KV
3MA MAIN GENERATION                                       6328    TUR OFF FREQ MONIT
3RL ACCELERATION TREND RELAY                              6325    ATR
3RQ APPORTIONMENT COMPUTER                                6332    APPOR COMP AUTOMA
3RS EDAC                                                  6444    EDAC EQUIP
3RT EEMAC                                                 6440    EMAC EQUIP
3RW RELAY SYSTEM                                          6380    RELAY COSTS
9W WAREHOUSE                                              2582    EQUIPMENT
9W WAREHOUSE                                              2583    FURNISHINGS
9W WAREHOUSE                                              2585    ELECTRIC FAC
9YY PLANT EQUIPMENT                                       4962    I & C EQUIPMENT
9YY PLANT EQUIPMENT                                       4962    O & M EQUIPMENT
</TABLE>
<PAGE>   132
                                                       Common Facilities 3-4 and
                                                       Common Facilities 1-2-3-4

                                                       FERC Account 316

<TABLE>
<CAPTION>
                                                          COST
                                                          CODE        DESCRIPTION
                                                          ----    --------------------
<S>                                                       <C>     <C>
9YY PLANT EQUIPMENT                                       4963    FURNS & EQUIPMENT
9YY PLANT EQUIPMENT                                       4964    VECH & SHOP EQUIP
9YY PLANT EQUIPMENT                                       4965    LAB EQUIP & FURNS
9YY PLANT EQUIPMENT                                       4966    LIME MOIST ANALYZE
9YY PLANT EQUIPMENT                                       4967    COMPUTER EQUIP
9YY PLANT EQUIPMENT                                       4968    AUTOMOBILES
9YY PLANT EQUIPMENT                                       4969    TRACTORS
9YY PLANT EQUIPMENT                                       4970    COAL HANDLING EQ
9YY PLANT EQUIPMENT                                       4975    VACUUM TRUCK
9YY PLANT EQUIPMENT                                       4976    TRACKMOBILE
9YY PLANT EQUIPMENT                                       4977    AIR QUAL EQUIP
9YY PLANT EQUIPMENT                                       4978    CAP. LAB. EQUIP
9YY PLANT EQUIPMENT                                       4979    SOURCE TESTING
</TABLE>

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00018-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00018-of-00352.parquet"}]]