Document:

Exhibit 10.25

                                 EXECUTION COPY

                             PUBLIC RELEASE VERSION

                            POWER PURCHASE AGREEMENT

                                     BETWEEN

                          ORLANDO UTILITIES COMMISSION

                                       AND

                         SOUTHERN COMPANY - FLORIDA LLC

                           Dated as of March 19, 2001

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<TABLE>
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                                TABLE OF CONTENTS

Section                                                                                                        Page

<S>                                                                                                               <C>
SECTION 1 DEFINITIONS AND EXPLANATION OF TERMS                                                                    2

SECTION 2 TERM OF AGREEMENT                                                                                      13

SECTION 3 CONDITIONS PRECEDENT                                                                                   14

SECTION 4 SALE AND PURCHASE                                                                                      14

SECTION 5 SCHEDULE FOR DELIVERY OF CAPACITY AND ENERGY                                                           28

SECTION 6 REQUESTS FOR ENERGY; OPERATION AND MAINTENANCE                                                         31

SECTION 7 INTERCONNECTION AND TRANSMISSION                                                                       32

SECTION 8 RISK OF LOSS; METERING                                                                                 33

SECTION 9 METHOD OF PAYMENT                                                                                      35

ARTICLE 10 CHANGE IN LAW; MODIFICATION OF AGREEMENT                                                              36

SECTION 11 FORCE MAJEURE                                                                                         37

SECTION 12 EVENTS OF DEFAULT; TERMINATION                                                                        38

SECTION 13 WAIVER                                                                                                41

SECTION 14 REPRESENTATIONS AND WARRANTIES                                                                        42

SECTION 15 PERFORMANCE ASSURANCE                                                                                 44

SECTION 16 LIABILITY OF PARTIES                                                                                  47

SECTION 17 ASSIGNMENT                                                                                            50

SECTION 18 DISPUTE RESOLUTION                                                                                    51

SECTION 19 AMENDMENT                                                                                             52

SECTION 20 NOTICES                                                                                               52

SECTION 21 APPLICABLE LAW                                                                                        54

SECTION 22 SEVERABILITY                                                                                          54

SECTION 23 ENTIRE AGREEMENT                                                                                      54

SECTION 24 NO THIRD PARTY BENEFICIARIES                                                                          54

SECTION 25 COUNTERPARTS                                                                                          55

SECTION 26  INFORMATION AND CONFIDENTIALITY                                                                      55

SECTION 27 PUBLIC STATEMENTS                                                                                     56

SECTION 28 INSURANCE                                                                                             56

SECTION 29 TAXES                                                                                                 57

APPENDIX A                 TECHNICAL LIMITS

APPENDIX B                 REQUESTS FOR ENERGY

APPENDIX C                 CAPACITY TESTING PROCEDURE

APPENDIX D                 EXAMPLE CALCULATIONS

APPENDIX E        AFFILIATE GUARANTEE

</TABLE>

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                            POWER PURCHASE AGREEMENT

                  This Power Purchase Agreement (this "Agreement") is made and
entered into as of the 19th day of March, 2001, by and between the Orlando
Utilities Commission, a statutory utilities commission organized and existing
under the laws of the State of Florida ("Purchaser"), and Southern Company -
Florida LLC, a limited liability company organized and existing under the laws
of the State of Delaware ("Seller"). Purchaser and Seller are hereinafter each
referred to individually as a "Party" and collectively as the "Parties."

                                    RECITALS

         WHEREAS, in addition and supplemental to their other powers, OUC, KUA
and FMPA (the "Public Agencies"), pursuant to the Florida Interlocal Cooperation
Act of 1969, Chapter 163, Part I, Florida Statutes, (the "Interlocal Act") are
authorized and empowered to cooperate with each other on a basis of mutual
advantage and thereby to provide services and facilities in a manner and
pursuant to forms of government organizations that will best accord with
geographic, economic, electrical generation requirements and other factors; and

         WHEREAS, the Ownership Agreement was entered into by the Public
Agencies as an interlocal agreement, to invoke all of the powers of the
Interlocal Act, for the purpose of providing a structure for the Public
Agencies, in participation with Seller, a foreign public utility, to operate,
maintain, repair, improve, extend, or otherwise participate jointly in a nominal
six hundred thirty-three (633) megawatt combined cycle electric generating
facility (the "Facility"), which is proposed, and which is to be constructed,
owned, and located within the State of Florida by Seller and the Public
Agencies; and

         WHEREAS, Seller intends to sell to Purchaser, and Purchaser intends to
purchase from Seller, a portion of Seller's share of the Capacity and Energy
generated by the Facility in accordance with the terms and conditions of this
Agreement and in full compliance with the Interlocal Act;

         WHEREAS, this Agreement and the two substantially similar contracts are
being entered into to invoke all of the powers of the Interlocal Act for the
purpose of obligating Customers, pursuant to such Interlocal Act, to purchase
Seller's share of the Capacity of and Energy generated by the Facility in
accordance with the terms and conditions of this Agreement; and

         WHEREAS, Seller and Purchaser acknowledge that this Agreement is one of
three substantially similar contracts through which Seller will sell and the
three Purchasers will individually purchase their respective designated shares
of Seller's share of the Capacity and Energy generated by the Facility.

         NOW, THEREFORE, for the purpose of exercising all of the powers
enumerated in the Interlocal Act and the Florida Joint Power Act, Part II of
Chapter 361, Florida Statutes, (the "Joint Power Act") (collectively, the
"Acts"), Purchaser hereby designates this Agreement as an interlocal agreement
within the meaning and intent of the Interlocal Act, and invokes all powers
contained therein with full powers to perform all of the provisions herein
authorized to be performed by the Parties; and

         FURTHER, NOW, THEREFORE, in consideration of the mutual promises,
covenants and agreements set forth herein, and other good and valuable
consideration, the receipt, sufficiency and adequacy of which are hereby
acknowledged, the Parties, intending to be legally bound hereby, agree as
follows:

                                    SECTION 1
                      DEFINITIONS AND EXPLANATION OF TERMS

     1.1  Definitions.  When used in this Agreement,  the following  capitalized
terms shall have the meanings set forth below:

     1.1.1  "Actual  Availability"  has the  meaning  given such term in Section
4.3.3 or 4.3.4, as applicable.

     1.1.2  "Actual  Capability"  means the amount of Capacity  the  Facility is
capable of producing in any given hour.

     1.1.3 "AGC" means automatic generation control,  which is the capability to
make  automatic  adjustments  to load change by generation  through the use of a
digital computer.  This control is based on such factors as frequency,  cost and
tie line flows.

     1.1.4  "Agreement"  means  this Power  Purchase  Agreement,  including  all
appendices  attached hereto and all amendments hereto that may be made from time
to time.

          1.1.5 "Alternate Resources" has the meaning given such term in Section
     4.4.

          1.1.6  "Ancillary   Services"  means  ancillary  services  customarily
     provided by an electric generating facility, including voltage/VAR control,
     load following,  regulation and frequency  response,  spinning  reserve and
     non-spinning reserve.

          1.1.7 "Annual Capacity Charge" means [redacted].

          1.1.8 "Annual Purchaser's Capacity Nomination" of the Purchaser means,
     during  the first  five  Contract  Years,  fifty-two  percent  (52%) of the
     Demonstrated  Capability,  and thereafter,  fifty-two  percent (52%) of the
     Demonstrated  Capability  reduced by those amounts,  if any, that Purchaser
     elects to subtract from the Capacity available to Purchaser pursuant to the
     process  provided in Section 4.1.4 for the  Customers  jointly to make such
     elections.

          1.1.9  "Availability  Guarantee"  has the  meaning  given such term in
     Section 4.3.1.

          1.1.10  "Availability  Incentive  Payment" has the meaning  given such
     term in Section 4.3.2.

          1.1.11   "Bankruptcy"   means,   with  respect  to  a  Party,  (i)  an
     adjudication  of  bankruptcy  or  insolvency,  or the entry of an order for
     relief,  under any  Bankruptcy  Law with  respect to such  Party;  (ii) the
     making by such Party of an  assignment  for the  benefit of its  creditors;
     (iii) the filing by such Party of a petition  in  bankruptcy  or for relief
     under any  Bankruptcy  Law;  (iv) the  filing by such Party of an answer or
     pleading  admitting or failing to contest the material  allegations  of any
     such  petition;  (v) the  filing  against  such  Party of any  petition  in
     bankruptcy or for relief under any  Bankruptcy Law (unless such petition is
     dismissed  within ninety (90) days from the date of filing  thereof);  (vi)
     the appointment of a trustee, conservator or receiver for such Party or for
     all or substantially  all of its assets (unless such appointment is vacated
     or stayed within ninety (90) days of such appointment); or (vii) the taking
     by such  Party of any  action for its  winding  up or  liquidation,  or the
     consent  by such  Party to any of the  actions  described  in  clauses  (i)
     through (vi) being taken against it.

          1.1.12 "Bankruptcy Law" means any applicable  bankruptcy or insolvency
     statute.

          1.1.13 "Bond Legislation"  shall mean the Junior Lien Resolution,  the
     Senior Lien Resolution and the Master Note Resolution.

          1.1.14 "BOP Capital  Cost Range" has the meaning  ascribed to the term
     in Section 6.7.1 of the Ownership Agreement.

          1.1.15  "Business  Day" means any day other than Saturday or Sunday on
     which  commercial  banks are  authorized  to open for  business in Orlando,
     Florida.

1.1.16   "Capacity" means electric capacity.

          1.1.17 "Capacity  Emergency" means, with respect to any hour, that any
     one or more of Purchaser's  resources is unavailable due to a forced outage
     and the summation of such Purchaser's firm Capacity obligations exceeds the
     summation of such Purchaser's available resources.

          1.1.18  "Capacity  Payment" has the meaning given such term in Section
     4.1.1.

          1.1.19  "Change  in Law" has the  meaning  given  such term in Section
     10.1.3.

          1.1.20  "Collateral  Documents"  means,  collectively,  the  Ownership
     Agreement,  the Operating  Agreement,  the Interconnection  Agreement,  the
     Power Purchase  Agreements of the other  Customers,  the long term lease of
     the Facility  Site by OUC to and for the benefit of the  Participants,  the
     guarantee  to be  provided by an  affiliate  of Seller as  contemplated  in
     Section 16.3, and the  agreement(s)  pursuant to which Purchaser and/or the
     other  Customers   provide  station  service  and  other  support  services
     (including but not limited to demineralized water and cooling water supply)
     to Seller.

          1.1.21  "Commencement Date" has the meaning given such term in Section
     5.2.

          1.1.22  "Commercial  Operation Date" has the meaning  ascribed to such
     term in Section 1.1.13 of the Ownership Agreement.

          1.1.23  "Confidential  Information" has the meaning given such term in
     Section 26.

          1.1.24  "Contract  Year"  means  (i)  the  period  commencing  on  the
     Commencement Date or, if Seller elects the option under Section 4.5(ii)(a),
     the later of the  Commencement  Date or Scheduled  Commencement  Date,  and
     ending on the last day of the month in which the first  anniversary date of
     the  Commencement  Date  falls,  and (ii)  each  twelve  (12)-month  period
     thereafter,  except that for the twelve  (12)-month period during which the
     expiration or  termination  date of this  Agreement  occurs,  Contract Year
     shall mean the period commencing on the first day of such twelve (12)-month
     period and ending on such expiration or termination date.

          1.1.25  "Customers" means  collectively all of OUC,  Kissimmee Utility
     Authority and Florida Municipal Power Agency (All Requirements Power Supply
     Project), or their permitted assigns.

          1.1.26  "Delivered  Energy" means, in respect of a period of time, the
     amount of Energy from the Facility or from Alternate Resources delivered by
     Seller to Purchaser at the Delivery Point for sale to Purchaser pursuant to
     this Agreement.

          1.1.27  "Delivery  Point" means (a) with  respect to Energy  delivered
     from the  Facility,  the high side of  generator  step-up  transformer,  as
     further described in the Interconnection Agreement, and (b) with respect to
     Energy delivered from Alternate  Resources,  any unconstrained point on the
     Grid.

          1.1.28  "Demonstrated  Capability"  means  the  net  Capacity  of  the
     Facility,  determined  by a periodic  Capacity  test,  adjusted  to seventy
     degrees  Fahrenheit  (70(degree)F)  and  forty-five  percent (45%) relative
     humidity.

          1.1.29 "Dispute" has the meaning given such term in Section 18.

          1.1.30 "Eastern Prevailing Time" or "EPT" means the time prevailing in
     the Eastern time zone of the United States of America.

          1.1.31  "Effective  Date" has the  meaning  given such term in Section
     3.1.

          1.1.32  "Eligible  Collateral"  has the  meaning  given  such  term in
     Section 15.1.1.

          1.1.33 "Energy" means electric energy (expressed in megawatt-hours).

1.I.34   "Energy Payment" has the meaning given such term in Section 4.2.

          1.1.35 "Equipment Breakdown" means a mechanical breakdown of equipment
     at the Facility that is not the result of a Force Majeure that is an act of
     God or public  enemy;  landslide;  sinkhole;  lightning;  earthquake;  fire
     (unless caused by Seller's willful  misconduct or failure to follow Prudent
     Utility Practice); storm; ice; snow; hurricane; tornado; wind; flood; riot;
     civil  disturbance;  insurrection;  war;  sabotage;  terrorism;  failure of
     contractors or suppliers  (including,  in the case of Seller, OUC and other
     Customers  providing  services  to  Seller)  to  provide  fuel,  equipment,
     material or services,  provided  that such failure would qualify as a Force
     Majeure under Section  1.1.44 if such failure were directly  experienced by
     the applicable Party.

          1.1.36 "Equity  Capacity" with respect to each Participant  means that
     Participant's   percentage   share  of  the   Capacity   of  the   Facility
     corresponding to such Participant's ownership interest in the Facility.

          1.1.37  "Event of Default"  means any of the events listed in Sections
     12.1 and 12.2.

          1.1.38   "Facility"  means  the  gas  fired  combined  cycle  electric
     generating  unit to be  located  on the  Facility  Site  and  owned  by the
     Participants,  and its associated interconnection facilities, as defined in
     the  Ownership  Agreement  by the  terms  "Facility"  and  "Interconnection
     Facilities."

          1.1.39 "Facility Site" means the parcel of land in Orlando, Florida on
     which the Facility is to be located, as further described in Appendix A.

          1.1.40 "FDEP" means the Florida Department of Environmental Protection
     or any  successor  Governmental  Body  exercising  the  same or  equivalent
     jurisdiction.

          1.1.41 "FERC" means the Federal  Energy  Regulatory  Commission or any
     successor Governmental Body exercising the same or equivalent jurisdiction.

          1.1.42 "Firm  Transmission  Service"  means (a) electric  transmission
     service  designated  firm under the open  access  transmission  tariff of a
     transmission  provider having an open access  transmission tariff or (b) if
     purchased  from a  transmission  provider that does not have an open access
     transmission   tariff,   electric   transmission   service   sold  by  such
     transmission   provider  as  firm   transmission   service  and   generally
     considered,  pursuant to Prudent Utility Practice and FRCC requirements, to
     be substantially  equivalent to the firm transmission service referenced in
     item (a) of this definition.

          1.1.43 "Fixed Amount" has the meaning ascribed to such term in Section
     6.7.1 of the Ownership Agreement.

          1.1.44  "Force  Majeure"  as to a Party  means  each of the  following
     events as affects  the  Facility:  act of God or public  enemy;  landslide;
     sinkhole;  lightning;  earthquake;  fire (unless  caused by the  applicable
     Party's willful  misconduct or failure to follow Prudent Utility Practice);
     storm; ice; snow; hurricane; tornado; wind; flood; riot; civil disturbance;
     insurrection; war; sabotage; terrorism; shutdown of the Facility by a court
     order or Governmental Body not resulting from any action or inaction by the
     applicable  Party;  strike,  lockout or labor difficulty  affecting the SEC
     Site  generally  (excluding  in the case of Seller any  strike,  lockout or
     labor  difficulty that is limited only to employees of either Seller or its
     affiliates,  and excluding in the case of Purchaser any strike,  lockout or
     labor  difficulty  limited only to the employees of Purchaser);  failure of
     contractors or suppliers  (including,  in the case of Seller, OUC and other
     Customers  providing  services  to  Seller)  to  provide  fuel,  equipment,
     material or services,  provided  that such failure would qualify as a Force
     Majeure under this  provision if such failure were directly  experienced by
     the applicable  Party;  or any other  occurrence,  nonoccurrence  or set of
     circumstances,  whether or not  foreseeable,  that is beyond the reasonable
     control of the  applicable  Party and is not caused or  exacerbated  by the
     applicable Party's failure to follow Prudent Utility Practices.

          1.1.45 "FRCC" means the Florida  Reliability  Coordinating  Council or
     any successor organization.

          1.1.46  "Fuel  Supply  Agent" has the  meaning  given such term in the
     Operating Agreement.

          1.1.47 "Further  Extension" has the meaning given such term in Section
     2.3.

          1.1.48 "Gas Delivery  Point" shall have the meaning  assigned to it in
     the Operating Agreement.

          1.1.49  "Governmental  Body"  shall  mean,  except as  provided in the
     following   sentence,   (i)  any   local,   state,   regional   or  federal
     administrative,  legal,  judicial, or executive agency, court,  commission,
     department or other entity having  jurisdiction  or binding  authority over
     any element of the  Project or the  performance  of the Parties  under this
     Agreement  or  the   Collateral   Documents,   but  excluding  any  agency,
     commission,  department  or other such  entity  acting in its  capacity  as
     lender,  guarantor or mortgagee and (ii) NERC,  FRCC and any RTO. Except as
     expressly   provided   otherwise   in  this   Agreement,   the   definition
     "Governmental  Body" shall be deemed to not include  OUC,  KUA and FMPA for
     the purposes of this Agreement.

          1.1.50 "Grid" means (i) OUC's electric transmission system, or (ii) if
     ownership or control of and jurisdiction  over OUC's electric  transmission
     system  is  succeeded  to by an RTO or other  entity,  the  portion  of the
     electric  transmission  system of that RTO or other  successor  entity that
     most closely resembles the OUC electric  transmission  system as it existed
     on the effective date of this Agreement.

          1.1.51  "Guaranteed  Output"  means in any  given  hour the  amount of
     Capacity  (in  MWh per  hour)  determined  by  adjusting  the  Demonstrated
     Capability to the prevailing  ambient conditions in such hour and adjusting
     for degradation. [redacted]

          1.1.52  "Indemnified  Parties"  has the  meaning  given  such  term in
     Section 16.1.1.

          1.1.53 "Indemnifying Party" has the meaning given such term in Section
     16.1.1.

          1.1.54 "Interconnection  Agreement" means that certain Interconnection
     Agreement  expected to be entered into among the  Participants in 2001, the
     entry into of which is a condition  precedent to the  effectiveness of this
     Agreement.

          1.1.55  "Interconnection  Meters" has the  meaning  given such term in
     Section 8.2.

          1.1.56 "Junior Lien  Resolution"  shall mean the OUC  resolution  duly
     adopted on May 16,  1998,  as  supplemented  and amended,  authorizing  the
     issuance of OUC's Water and Electric Subordinate Revenue Bonds.

          1.1.57 "Lender" has the meaning given such term in Section 12.3.

          1.1.58  "Law" shall mean all  constitutions,  charters,  laws,  codes,
     ordinances,  orders,  judgments,  decrees,  injunctions,  licenses,  rules,
     permits,  approvals,  regulations and  requirements  of every  Governmental
     Authority  (including OUC) having jurisdiction over the matter in question,
     whether federal,  state or local,  which may be applicable to any Party, as
     required  by  the  context  in  which  used,  or to  the  Facility  or  OUC
     Interconnection  Facilities,  or to the  use,  manner  of  use,  occupancy,
     possession,   planning,   licensing,  design,  procurement,   construction,
     acquisition, testing, startup, operation, maintenance, management, control,
     addition,  renewal,  modification,  replacement or disposal of the Facility
     and the OUC Interconnection Facilities or any portion of portions thereof.

          1.1.59 "Market Price" shall mean the price  established by Seller,  or
     negotiated  and  agreed  upon by the  Parties,  as the  case  may be,  upon
     Seller's  election  pursuant  to Section  2.3 with  respect to any  Further
     Extension, which shall become the Annual Capacity Charge for Capacity to be
     delivered by Seller during such Further Extension consistent with all other
     terms and conditions of this Agreement.

          1.1.60 "Master Note  Resolution"  shall mean the OUC  resolution  duly
     adopted on August 25, 1998, as  supplemented  and amended,  authorizing the
     issuance of OUC's Water and Electric Revenue Application Notes.

          1.1.61  "Meters" means the  Interconnection  Meters and/or  Customers'
     check-meters, as applicable.

          1.1.62 "Minor  Maintenance"  shall mean maintenance events lasting not
     greater than 72 hours per  occurrence,  which have been  scheduled  and for
     which  Purchaser and the other  Customers  have given consent in accordance
     with Section 6.4.

          1.1.63  "MMBtu" means one million  British  thermal  units,  where one
     British  thermal  unit  is  the  amount  of  heat  required  to  raise  the
     temperature of one (1) pound of water one (1) degree  Fahrenheit from sixty
     (60) degrees Fahrenheit.

          1.1.64 "MW" means megawatt.

          1.1.65 "MWh" means megawatt-hour.

          1.1.66 "NERC" means the North American Electric Reliability Council or
     successor organization.

          1.1.67  "Non-Performing  Party"  has the  meaning  given  such term in
     Section 11.1.

          1.1.68 "Notice of Intent to Terminate" has the meaning given such term
     in Section 12.3.

          1.1.69 "Off-Peak Period" means all the days of any given Contract Year
     other than the Peak Period days.

          1.1.70 "Operating  Agreement" means that certain  Operating  Agreement
     expected to be entered into among the  Participants in 2001, the entry into
     of which is a condition precedent to the effectiveness of this Agreement.

          1.1.71  "Operating  Period" means the period from the beginning of the
     first Contract Year until the end of the last Contract Year.

          1.1.72 "OUC" means Orlando Utilities Commission.

          1.1.73 "OUC Interconnection Facilities" means the modifications to the
     Stanton  Substation  reasonably  required  for the receipt and  delivery of
     Energy from the Facility  onto the Grid  consistent  with  Prudent  Utility
     Practice.

          1.1.74 "Ownership  Agreement" means that certain Stanton Energy Center
     Combined Cycle Unit A Construction  and Ownership  Participation  Agreement
     entered into among the Participants as of March 19, 2001.

          1.1.75   "Participant"   or   "Participants"   mean   individually  or
     collectively  Orlando Utilities  Commission,  Kissimmee Utility  Authority,
     Florida Municipal Power Agency (All Requirements  Power Supply Project) and
     Seller.

          1.1.76  "Parties"  has  the  meaning  given  such  term  in the  first
     paragraph of this Agreement.

          1.1.77 "Peak  Period"  means for any given  Contract  Year the periods
     that include the days from January 1 through  March 15,  inclusive,  May 15
     through  September  15,  inclusive,  and  December 15 through  December 31,
     inclusive.

          1.1.78 "Permit" means any permit, license, approval,  consent, waiver,
     authorization or other  requirement in connection with the Project required
     from any Governmental Body under applicable Law.

          1.1.79  "Person"  means  any  individual,  partnership,   corporation,
     limited liability company, association,  business, trust, Governmental Body
     or other entity.

          1.1.80  "Planned  Major   Maintenance"  means  the  Gas  Turbine  (GT)
     Combustor  Inspection,  the GT Hot Gas  Path  Inspection,  and the GT Major
     Inspection,  as these inspections are defined in the maintenance  agreement
     with the GT vendor.

          1.1.81  "Power  Purchase  Agreements"  means this  Agreement and those
     certain  similar power  purchase  agreements  between  Seller and the other
     Customers  respecting  the  delivery of Capacity  and Energy from  Seller's
     ownership share of the Capacity and Energy of the Facility.

          1.1.82 "Prime Rate" means the prime rate of interest as published from
     time to time in the Wall Street Journal or such other comparable  successor
     publication  as the  Participants  may agree upon.  The Prime Rate shall be
     calculated  on the basis of a 365-day  year for the  actual  number of days
     that a payment,  reimbursement  or adjustment,  as the case may be, has not
     been made.

          1.1.83  "Project" means the Facility,  the Facility Site and all other
     appliances,  parts,  instruments,  appurtenances,   accessories  and  other
     property that may be incorporated or installed in, or otherwise become part
     of, any of the foregoing.

          1.1.84 "Prudent Utility Practice" means any of the practices,  methods
     and acts engaged in, or approved by, a significant  portion of the electric
     utility  industry in the United States (or, if more  stringent,  any of the
     practices,  methods  and acts  engaged in, or  approved  by, a  significant
     portion of the electric utility industry in the region covered by the FRCC)
     operating  facilities  of a size and  technology  similar  to the  Facility
     during the relevant time period or any of the practices,  methods and acts,
     which, in the exercise of reasonable  judgment in light of the facts known,
     or that  reasonably  should have been known,  at the time the  decision was
     made,  could have been  expected  to  accomplish  the  desired  result at a
     reasonable cost consistent with applicable  Laws,  reliability,  safety and
     expedition.  Prudent Utility  Practice is not intended to be limited to the
     optimum practice,  method or act to the exclusion of all others, but rather
     to be  acceptable  practices,  methods and acts  generally  accepted in the
     United  States and having due regard for current  editions of the  National
     Electrical  Safety Code,  the National  Electric Code and other  applicable
     electrical,  safety and  maintenance  codes and  standards,  manufacturers'
     warranties and applicable Laws.

          1.1.85  "Request  for  Energy" or  "Schedule"  means a request for the
     delivery of Energy made by Purchaser and the other  Customers in accordance
     with the  process  provided in Section 6 and  Appendix B for the  Customers
     jointly to Schedule Energy, and any adjustments  thereto made in accordance
     with Appendix B.

          1.1.86 "RTO" means a regional transmission organization.

          1.1.87   "Scheduled   Commencement   Date"  means  the  date  that  is
     twenty-four (24) months after the receipt of the Site Certification and all
     other Permits to be obtained by the Customers that are necessary for Seller
     to commence construction, as such date may be extended under the provisions
     of Section 5.1, but in no event earlier than October 1, 2003.

          1.1.88 "Scheduled  Maintenance" means the removal of the Facility or a
     component thereof from service (which removal reduces the capability of the
     Facility to operate) to perform maintenance,  overhaul, inspection, testing
     or repair work, as contemplated in Section 6.4.

          1.1.89  "SEC  Site"  means the parcel of land in  Orlando,  Florida on
     which the fossil  fired  generating  stations  Stanton Unit # 1 and Stanton
     Unit #2 are located,  including the parcel of land on which the Facility is
     to be located.

          1.1.90 "Seller" has the meaning given such term in the first paragraph
     of this Agreement.

          1.1.91 "Senior Lien  Resolution"  shall mean the OUC  resolution  duly
     adopted on June 3, 1993,  as  supplemented  and  amended,  authorizing  the
     issuance of OUC's Water and Electric Revenue Bonds.

          1.1.92  "Site  Certification"  means  (i) the  final  approval  by the
     applicable  Governmental  Body of the initial need for power  determination
     and  site  certification  permit  applications   pursuant  to  the  Florida
     Electrical  Power  Plant  Siting  Act,  and  (ii)  the  receipt  of the air
     construction (Prevention of Significant Deterioration) permit by OUC issued
     by  FDEP  pursuant  to  the  delegated   authority  of  the  United  States
     Environmental Protection Agency under the Clean Air Act Amendments of 1977.

          1.1.93 "Technical Limits" means the limits and constraints relating to
     the operation and maintenance of the Facility, as described in Appendix A.

          1.1.94  "Termination  Payment"  means  the  payment  to be  paid  by a
     Defaulting Party to the Non-Defaulting Party under in Section 12.5.1.

          1.1.95 "Test Energy" means (i) Energy  produced by the Facility during
     testing of the Facility  prior to the  Commencement  Date;  and (ii) Energy
     produced by the Facility during  periodic tests of the Facility's  Capacity
     output capability following the Commencement Date.

1.2 Rules of Construction. In this Agreement, unless the context otherwise
requires, the singular shall include the plural, the masculine shall include the
feminine and neuter, and vice versa. The terms "include," "includes" and
"including" shall be deemed to be followed by the words "without limitation."
The term "month" refers to a calendar month, and any period measured by a
"month" from a reference date refers to the period beginning on such reference
date and ending on the same date of the next succeeding calendar month or, if no
such date exists in the next succeeding calendar month, the last day of such
next succeeding calendar month. References to a Section, Table or Appendix shall
be references to a Section of, Table of or Appendix to this Agreement unless
specifically stated otherwise. A reference to a given agreement or instrument
shall be a reference to that agreement or instrument as modified, amended,
supplemented and restated through the date as of which such reference is made.
The term "or" is not exclusive, the term "shall" is mandatory and the term "may"
is permissive. In the event that any index or publication referenced in this
Agreement ceases to be published, each such reference shall be deemed to be a
reference to a successor or alternate index or publication reasonably agreed by
the Parties. Both Parties acknowledge that each was actively involved in the
negotiation and drafting of this Agreement and that no law or rule of
construction shall be raised or used in which the provisions of this Agreement
shall be construed in favor of or against either Party because one is deemed to
be the author thereof.

1.3 Consents. Whenever the consent or approval of either Party is required under
this Agreement, such consent or approval shall not be unreasonably withheld,
unless this Agreement provides that such consent or approval is to be given by
such Party at its sole or absolute discretion or is otherwise qualified.

                                    SECTION 2
                                TERM OF AGREEMENT

         2.1      Initial Term.
                  ------------

                  2.1.1    This Agreement shall become effective as set forth in
                           Section 3.1, and shall remain in full force and
                           effect, subject to the early termination provisions
                           set forth herein, through the later of (i) the last
                           day of the month in which the tenth (10th)
                           anniversary of the Scheduled Commencement Date occurs
                           or (ii) the last day of the month in which the tenth
                           (10th) anniversary of the Commencement Date occurs
                           (the "Initial Term").

                  2.1.2    Notwithstanding the provisions of Section 2.1.1, the
                           Initial Term shall terminate on (a) November 30, 2013
                           if Section 2.1.1 yields an end date falling between
                           December 1, 2013 and April 30, 2014, inclusive, or
                           (b) November 30, 2014 if Section 2.1.1 yields an end
                           date that falls on or after May 1, 2014.

         2.2 Extension of Initial Term.The Initial Term shall be automatically
extended an additional five (5) years from the end of the Initial Term
("Extended Term"); provided, however, that the Purchaser shall have the option
to elect to terminate this Agreement effective on the last day of the Initial
Term by providing written notice of such election to Seller no later than the
date that is three (3) years prior to the end of the Initial Term.

         2.3 Extensions of Extended Term. The Extended Term shall be
automatically extended three (3) successive periods of five (5) years each from
the end of the Extended Term (the "Further Extensions"); provided, however, that
the Purchaser shall have the option to elect to terminate this Agreement
effective on the last day of any of (i) the Extended Term, (ii) the first
Further Extension, or (iii) the second Further Extension, by providing written
notice of such election to Seller no later than the date that is, respectively,
three (3) years prior to the end of the Extended Term, three (3) years prior to
the end of the first Further Extension, or three (3) years prior to the end of
the second Further Extension, as the case may be; provided, further, that with
respect to each Further Extension, Seller shall have the right to establish the
Annual Capacity Charge for such Further Extension based on Seller's then-current
assessment of market conditions by providing Purchaser written notice of the new
proposed Annual Capacity Charge no later than the date that is three and
one-half (3 1/2) years prior to the date that such Further Extension period is
scheduled to begin, subject to Purchaser's right to request that Seller
negotiate in good faith to agree on any other price that Purchaser believes in
good faith reflects current market conditions.

         2.4 Survival. Applicable provisions of this Agreement shall continue in
effect after termination to the extent necessary to satisfy the terms and
conditions of this Agreement and, as applicable, to provide for: final billings
and adjustments related to the period prior to termination, repayment of any
money due and owing either Party pursuant to this Agreement, repayment of
principal and interest associated with security funds, and the indemnifications
specified in this Agreement.

                                    SECTION 3
                              CONDITIONS PRECEDENT

         3.1 Condition Precedent to Effectiveness. The Parties agree and
acknowledge that this Agreement shall be effective only upon the date on or
before which both of the following have occurred (such date, the "Effective
Date"): (i) the execution and delivery of the Ownership Agreement and the
Operating Agreement and all other Collateral Documents; and (ii) the
acknowledgment of the Participants' satisfaction of the foregoing condition and
the accuracy of the cross-references to the Collateral Documents contained in
this Agreement.

         3.2 Conditions Precedent to Obligations. Notwithstanding any provisions
of this Agreement to the contrary, the obligations of the Parties to this
Agreement shall be subject to the fulfillment of each of the conditions (or the
waiver in writing of such conditions by the respective Party or Parties) set
forth in Article 8 of the Ownership Agreement.

                                    SECTION 4
                                SALE AND PURCHASE

         4.1 Capacity Delivery and Payment. Subject to the terms and conditions
of this Agreement, during the Operating Period, Seller agrees to deliver and
sell to Purchaser and Purchaser agrees to receive and purchase from Seller up to
fifty-two percent (52%) of the Actual Capability of the Facility in accordance
with the following provisions:

          4.1.1 The Capacity payment (the "Capacity Payment" or "CP") in respect
     of each month during the Operating  Period shall be an amount equal to: the
     product  of  the  Annual  Purchaser's  Capacity  Nomination  (expressed  in
     kilowatts)  multiplied by the Annual Capacity Charge. For any partial month
     during the Operating  Period,  the Capacity  Payment shall equal the amount
     determined  pursuant  to the formula  set forth in the  preceding  sentence
     multiplied  by a fraction,  the numerator of which is the number of days of
     such partial  month within the Operating  Period,  and the  denominator  of
     which is the total number of days in such month. If the Annual  Purchaser's
     Capacity  Nomination  changes during a month, then the Capacity Payment for
     such month  shall be equal to the  product of the  Annual  Capacity  Charge
     multiplied by the sum of the two results obtained: (i) first by multiplying
     the old Annual Purchaser's  Capacity  Nomination by the ratio of the number
     of days in the month  (including  fractional days) prior to the time of the
     change  over the total  number  of days in the  month;  and (ii)  second by
     multiplying the new Annual Purchaser's  Capacity Nomination by the ratio of
     the number of days in the month (including  fractional days) after the time
     of the  change  over the total  number of days in the month.  The  Capacity
     Payment  shall be paid by  Purchaser to Seller in  accordance  with Section
     9.1. Notwithstanding the above, if during the first three (3) months of the
     Operating  Period any  Governmental  Body shall  prohibit the Facility from
     operating because of Seller's failure to obtain,  prior to the Commencement
     Date any Permit  required by Law for Seller to operate the  Facility,  then
     Purchaser's  obligation to make Capacity  Payments shall be suspended until
     the earlier of: (i) the lifting of such prohibition;  or (ii) the date that
     is three (3) months after the Commencement Date.

          4.1.2 The initial  Demonstrated  Capability  of the Facility  shall be
     established in accordance with the Capacity testing  procedure set forth in
     Appendix C.  Following  the first  anniversary  of the  Commencement  Date,
     Seller shall perform  Capacity tests twice each Contract Year,  pursuant to
     the  testing  procedures  set forth in  Appendix  C,  during the Summer and
     Winter periods as defined by FRCC; provided,  however, that Seller shall be
     entitled to a fifty-eight  (58)-hour  period of  maintenance  that does not
     affect  calculation of Actual  Availability  of the Facility  (which period
     shall be  prior to any such  Capacity  test  from 9 p.m.  Friday  to 7 a.m.
     Monday, unless OUC, in its sole discretion, agrees otherwise). In addition,
     Seller may  retest  when a repair or  modification  of the  Facility,  or a
     corrected or improved  operational or maintenance  activity,  results in an
     increase in the Capacity of the Facility (including adjustments made during
     initial shakedown),  provided that the actual full load output (as adjusted
     to  seventy  degrees  Fahrenheit  (70(0)F)  and  forty-five  percent  (45%)
     relative  humidity)  is at least one hundred and one percent  (101%) of the
     last  Demonstrated  Capability  test  amount.  Should  any  test or  retest
     conducted  pursuant this Section  4.1.2  indicate that the actual full load
     output (as adjusted to seventy degrees  Fahrenheit  (70(0)F) and forty-five
     percent  (45%)  relative  humidity)  has  changed by an amount  equal to or
     greater  than one percent  (1%) of the last  Demonstrated  Capability  test
     amount, the Demonstrated Capability shall be reset at such actual full load
     output for purposes of determining the Capacity  Payment as of the time the
     test is completed;  provided, however, that if the test is performed during
     a Force  Majeure  event  and  such  Force  Majeure  event  resulted  in the
     reduction of the Demonstrated Capability, the Capacity Payment shall not be
     reduced thereby until the end of the forty-five  (45) day period  described
     in the last paragraph of Section 4.1 below.

          4.1.3 Seller shall conduct additional tests as required by the FRCC or
     as requested  by Purchaser  pursuant to  Purchaser's  legal or  contractual
     obligations with third parties;  provided,  however,  such additional tests
     shall be for  informational  purposes  and  shall  not be used to reset the
     Demonstrated  Capability or otherwise  determine the Capacity Payment under
     this Agreement.

          4.1.4 Beginning with the sixth (6th) Contract Year and ending with the
     tenth (10th) Contract Year, the Customers shall have the irrevocable  right
     to jointly reduce the total of their combined Annual  Purchaser's  Capacity
     Nominations, for the remainder of the Initial Term and any Extended Term or
     Further  Extensions,  by either  twenty-five  (25) MW or fifty  (50) MW (as
     adjusted to seventy  degrees  Fahrenheit  (70(0)F) and  forty-five  percent
     (45%) relative humidity) per year;  provided,  however,  that such combined
     total of the Annual Purchaser's  Capacity Nominations may not be reduced by
     more than 200 MW in the aggregate. Purchaser must give Seller notice of any
     such reduction elected by Purchaser not later than three (3) years prior to
     the  commencement of the Contract Year in which such reduction shall occur;
     provided,  however,  that such  notice  shall be  effective  if and only if
     either it is made jointly with the other  Customers or the other  Customers
     give  Seller  a  similar  notice  under  their  respective  Power  Purchase
     Agreements  with all such notices  together  satisfying the above criteria;
     provided,  further,  that such  notices  shall  specify  any changes in the
     percentage of the Annual Purchaser's Capacity Nomination to be purchased by
     Purchaser  under  Section  4.1.1  and  by the  other  Customers  under  the
     corresponding provisions of their respective Power Purchase Agreements.

Notwithstanding the foregoing provisions of this Section 4.1, if and to the
extent that a Force Majeure event affects Seller's ability to deliver and sell
to Purchaser the Capacity of the Facility or any portion thereof, Seller shall
be excused from any delay in performing or failure to perform any or all of such
obligations (and in this regard, the Parties shall follow the procedures
contemplated in Section 11.1); provided, however, that notwithstanding such
reduction or elimination of the Actual Capability of the Facility, Purchaser
shall continue to pay Seller the full Capacity Payment attributable to the first
forty-five (45) days following the date of Seller's notification to Purchaser of
any such Force Majeure effect; provided, further, that if the effect of a Force
Majeure event lasts for longer than forty-five (45) days, then Purchaser shall
not be required to make Capacity Payments attributable to any continued period
of Force Majeure declaration after the end of such forty-five (45) day period,
but Purchaser must resume making Capacity Payments when Seller declares the
Force Majeure period over and resumes its obligation for delivery of Energy
under this Agreement; and provided, further, that the Capacity Payment relief
contemplated in the immediately preceding clause shall not apply if the Force
Majeure event affecting Seller resulted from a failure of Purchaser or another
Customer to fulfill its obligations under this Agreement or any of the
Collateral Documents; and provided, further, that a Force Majeure event that
affects Purchaser's ability to receive Energy from the Facility shall not excuse
Purchaser's obligation to make Capacity Payments, except solely to the extent
provided for in Section 5.1.3 if and to the extent such provision is applicable.

         4.2 Energy Delivery and Payment. Subject to the terms and conditions of
this Agreement and, in particular, subject to the provisions of Section 6 and
Appendix B, Seller shall sell and deliver, and Purchaser shall purchase and
receive, during the Operating Period, Energy requested by Purchaser in a Request
for Energy, as well as Energy generated by associated ramp up and ramp down of
the Facility and Test Energy; provided, however, that Purchaser shall not be
required to make any payments for Test Energy produced prior to the Commencement
Date. The Customers shall pay for and supply all fuel associated with the
Customers' Request for Energy in accordance with the provisions of Section 3.2
of the Operating Agreement. The Energy payment (the "Energy Payment" or "EP") in
respect of each month shall be the sum of four (4) components: a variable O&M
component for operation on natural gas, a variable O&M component for operation
on fuel oil, a start-up component, and a fuel component for Energy delivered
from Alternate Resources. The components of the Energy Payment shall be
calculated as follows:

                  4.2.1    Variable O&M Component--Natural Gas. The variable O&M
                           component for operation on natural gas shall be
                           calculated as follows:

     (SIGMA)i=Days in the month (SIGMA)j=Hours in the Day [(DENGij x VOMR) +
                           HVOMij]

                                    Where:

                                    DENGij is Delivered Energy in MWh (other
                                    than Test Energy prior to the Commencement
                                    Date) from the Facility produced with
                                    natural gas during hour j of day i;
                                    provided, however, that if the Facility uses
                                    both natural gas and fuel oil in a given
                                    hour, then fifty percent (50%) of the
                                    Delivered Energy in such hour shall be
                                    deemed to be produced with natural gas; and

                                    VOMR is the variable O&M rate (in $/MWh),
                                    which shall be [redacted]; and

                                    HVOM is the hourly variable O&M rate (in $
                                    per hour) as determined from Table A and its
                                    accompanying Notes applicable for hour j of
                                    day i during which the Facility is operating
                                    on natural gas and which is applicable only
                                    when DENGij is > 0.

                                     Table A

            Hourly Variable O&M Charges for Operation on Natural Gas

               Annual On-Line Factor  Combined Hourly Variable O&M Rate (in $
               ---------------------  ---------------------------------------
                                      per hour) for all Customers (see Notes
                                      --------------------------------------
                                                       below)
                                                       ------

                     [redacted]                      [redacted]

                     [redacted]                      [redacted]

                     [redacted]                      [redacted]

                     [redacted]                      [redacted]

                     [redacted]                      [redacted]

                     [redacted]                      [redacted]

                     [redacted]                      [redacted]

                     [redacted]                      [redacted]

                           Notes to Table A:
                           ----------------

          1) The  Hourly  Variable  O&M  Rate in  Table A  represents  the  rate
     applicable  for  the  Annual  Purchaser's   Capacity   Nominations  of  all
     Customers. The actual Hourly Variable O&M Rate for Purchaser for an hour in
     a particular  Contract Year shall equal the product of the applicable  rate
     from  the  table  for  such  Contract  Year  multiplied  by  the  ratio  of
     Purchaser's  portion of the Request for Energy for such hour over the total
     Request for Energy for such hour.

          2)  The  Hourly  Variable  O&M  Rate  for a  Contract  Year  shall  be
     interpolated  between the values  shown in Table A when the Annual  On-Line
     Factor  for  the  previous   Contract   Year  falls  between  the  specific
     percentages  shown on  Table A. For  example,  with  respect  to an  Annual
     On-Line Factor of [redacted].

          3) The dollar  amounts  shown in Table A are  expressed  in January 1,
     2003  dollars and shall be  escalated  based upon the U.S.  Consumer  Price
     Index on January 1 of each year.

          4) The dollar  amounts in Table A represent the charge for  sixty-five
     percent (65%) of the Facility's  Capacity being sold to Customers under the
     Power Purchase  Agreements.  If Purchaser and the other  Customers elect to
     reduce their combined Annual Purchaser's  Capacity  Nominations pursuant to
     Section 4.1.4, then the dollar amounts in Table A shall be  proportionately
     reduced commensurate with such Capacity reduction.

               5) The  Annual  On-Line  Factor  shall  be  calculated  for  each
          Contract Year, as follows:

                    Annual On-Line Factor = SH/ (PH - OH)

                    Where:

                    SH is the number of hours that the  Customers  Schedule  and
               Seller delivers Energy in a Contract Year; and

                    PH is the number of hours in a Contract Year; and

                    OH is the number of hours in a Contract  Year  during  which
               (i) the Facility is unavailable  due to a forced outage or due to
               a  maintenance  outage  that  Seller has  scheduled  pursuant  to
               Section 6.4 or, if  applicable,  that is a permitted  fifty-eight
               (58) hour pre-testing  maintenance  under Section 4.1.2, and (ii)
               Seller does not deliver from an Alternate Resource.

                    6) For the first Contract Year, all monthly Energy  billings
               will be made assuming an Annual  On-Line Factor  [redacted].  The
               rate shall be determined annually for each Contract Year based on
               the Annual On-Line Factor for the previous  Contract Year. At the
               end of each Contract  Year,  the Annual  On-Line  Factor for such
               Contract  Year shall be  calculated  and the Hourly  Variable O&M
               charges for such Contract Year shall be  recalculated  using such
               Annual On-Line  Factor for such Contract Year. A true-up  payment
               or refund shall be made to adjust the amounts collected by Seller
               from Purchaser  during each Contract Year to the amount  computed
               by Seller  using such  Annual  On-Line  Factor for such  Contract
               Year.  Any  true-up  payments  shall be included on an invoice as
               soon  as  reasonably   practicable   following  the  end  of  the
               applicable Contract Year.

     4.2.2  Variable O&M  Component--Fuel  Oil. The variable O&M  component  for
operation  on fuel oil when  firing  the gas  turbines  shall be  calculated  as
follows:

     (SIGMA)i= Days in the Month (SIGMA)j= Hours in the Day [(DEFOij x VOMRFO) +
HVOMFOij] Where:

     DEFOij  is  Delivered   Energy   (other  than  Test  Energy  prior  to  the
Commencement  Date) produced with fuel oil during hour j of day i; provided that
if the Facility  uses both natural gas and fuel oil in a given hour,  then fifty
percent  (50%) of the  Delivered  Energy  in such  hour  shall be  deemed  to be
produced with fuel oil; and

     VOMRFO is the  variable O&M rate (in $/MWh) for Energy  produced  with fuel
oil,  [redacted],  subject to adjustment  up or down based on the  Participants'
evaluation  of General  Electric's  reports on the effect of burning fuel oil on
variable O&M costs (as mutually agreed by the Participants  following good faith
negotiations); and

     HVOMFO is the hourly  variable O&M rate (in $ per hour) for hour j of day i
during  which the  Facility  is  Operated  on fuel oil,  which rate  [redacted],
subject  to  adjustment  up or down  based on the  Participants'  evaluation  of
General  Electric's  reports on the effect of burning  fuel oil on variable  O&M
costs  (as   mutually   agreed  by  the   Participants   following   good  faith
negotiations), and which is applicable only when DEFOij is > 0.

          4.2.3 Start-up  Component.  The start-up component shall be calculated
     as follows:

          GTS x SUR

          Where:

          GTS is the number of gas turbine starts required to meet a Request for
     Energy  (other than for Test Energy prior to the  Commencement  Date) where
     the amount of Energy  delivered from any single gas turbine  increases from
     zero  to  an  amount  greater  than  zero;  provided,   however,  that  the
     calculation  of GTS shall not  include:  (i) any starts  required to resume
     delivery to Purchaser due to an interruption  caused by a forced outage, or
     (ii) any starts  initiated  by Seller in order to make third party sales in
     any given hour where the Facility would  otherwise not have been started in
     such hour to meet a Request for Energy.

          SUR is the  Start-up  Rate (in $ per  start)  for each gas  turbine as
     determined from Table B below and its accompanying Notes:

                                     TABLE B

                                 Start-Up Rates

   -----------------------------------------------------------------------
    Cumulative Number of Start-ups per Combined Start-up Rate per Start per
    -----------------------------------------------------------------------
       Gas Turbine per Contract Year    Gas Turbine for all Customers (see
       -----------------------------    ----------------------------------
                                                      Notes)
                                                      ------

                 [redacted]                          [redacted]

                 [redacted]                          [redacted]

                 [redacted]                          [redacted]

                           Notes to Table B:
                           ----------------

          1) The SUR in Table B represents the rate  applicable to all Customers
     for each  start-up  during a Contract  Year.  There  shall be no charge for
     [redacted], and the combined rate among all Customers participating in each
     subsequent start-up during such Contract Year shall be as identified in the
     Table  B.  The  actual  SUR for  Purchaser  (in $ per  start)  for any such
     start-up shall equal the quotient of the  applicable  rate from the Table B
     divided by the number of Customers  participating in the Request for Energy
     that  requires  the  start-up  (and  in  which  Purchaser  is one of  those
     Customers); provided, however, Purchaser will not have to pay for start-ups
     in which it does not participate.

          2) The SUR is  expressed  in  January  1,  2003  dollars  and shall be
     escalated  based upon the U.S.  Consumer  Price  Index on January 1 of each
     year.

          3) The dollar  amounts in Table B represent the charge for  sixty-five
     percent (65%) of the Facility's  Capacity being sold to Participants  under
     the Power Purchase  Agreements.  If the Participants  elect to reduce their
     combined Annual Purchaser's Capacity Nominations pursuant to Section 4.1.4,
     then  the  dollar  amounts  in  Table B shall  be  proportionately  reduced
     commensurate with such Capacity reduction.

               4.2.4 O&M Rate Adjustment. The rates in Sections 4.2.1, 4.2.2 and
          4.2.3 shall be increased or decreased based on good faith  negotiation
          of the Parties (in accordance  with Section 18) to reflect and include
          any actual  increase or decrease in Seller's  costs of  operating  the
          Facility that is caused by any mutually  agreed-upon  modification  or
          design  change or any actual  increase or decrease in  Purchaser's  or
          another Customers' charges for providing any services to Seller.

               4.2.5  Energy  Payment for  Delivery  from  Alternate  Resources.
          ----------------------------------------------------

               4.2.5.1  If  Seller  elects  to  deliver  Energy  from  Alternate
          Resources pursuant to Section 4.4, then the variable O&M component and
          the start-up  component of the Energy  Payment  shall be calculated in
          accordance  with  Sections  4.2.1 and  4.2.3,  respectively,  for such
          Alternate  Resource  Energy as if it were delivered from the Facility.
          In  addition,  the  fuel  component  for  the  Energy  delivered  from
          Alternate Resources shall be calculated as follows:

   (SIGMA)i=Days in the month (SIGMA)j=Hours in the Day (MDEij x HRij x FRPij)

     Where:

     MDEij =  Scheduled  Energy in MWhs  delivered  from an  Alternate  Resource
during hour j of day i;

     when the Facility is unavailable, then HRij for an hour = [redacted];

     when the Facility is available, then HRij for an hour = [redacted]; and

     FRPij = the fuel rate proxy for an hour calculated in dollars per MMBtus in
accordance with the applicable provisions of either Section 4.2.5.2 or 4.2.5.3.

          4.2.5.2  If the  Fuel  Supply  Agent  has not  already  scheduled  the
     transportation of gas to the Facility to meet the Customers'  Schedules for
     the hour during which Seller  elects to deliver the  Scheduled  Energy from
     Alternate  Resources,  then  following  notification  from  Seller  of  its
     election to deliver the Scheduled Energy from Alternate  Resources,  Seller
     shall be obligated to obtain the necessary  quantities of gas and necessary
     gas transportation capacity to accommodate any portion of the Schedule that
     Seller has elected to satisfy from Alternate Resources. During periods that
     Seller elects to deliver Energy from Alternate  Resources,  the Fuel Supply
     Agent shall make available transportation  capacity,  within constraints of
     the pipeline  tariffs and operational  procedures in effect at the time and
     at no additional cost to the Fuel Supply Agent, in the amount determined by
     the quantity of Energy supplied from Alternate Resources and the applicable
     heat rate  determined by the rules for defining HR in the formula  provided
     in Section 4.2.5.1.  An example of the determination of the  transportation
     capacity is included  in  Appendix D. If Seller has  delivered  Energy from
     Alternate  Resources  under  these  circumstances,  then  the FRP (in $ per
     MMBtus)  shall  be  equal  to the sum of:  (i)  [redacted];  and  (ii)  the
     applicable firm gas transportation variable cost associated with deliveries
     to the Facility under such Participant's firm transportation  agreement(s).
     All risks of gas  supply and  transportation  interruption  to  accommodate
     deliveries of Energy from Alternate Resources shall be borne by Seller.

          4.2.5.3  If  the  Fuel  Supply   Agent  has  already   scheduled   the
     transportation  of gas to the Facility to meet the Customers'  Schedules by
     the time Seller  notifies  Purchaser  of  Seller's  election to deliver the
     Scheduled Energy from Alternate Resources, then at Seller's election:

          (i)  Seller  shall  direct  Fuel  Supply  Agent  to  use  commercially
     reasonable  efforts to revise its  scheduled  transportation  of gas to the
     Facility to provide for the delivery of the gas to Seller at any  alternate
     delivery point  designated by Seller that is available under the Customers'
     firm  transportation  agreement(s).  The efforts of the Fuel  Supply  Agent
     shall be subject to the constraints of the pipeline tariffs and operational
     procedures  in effect at the time,  and the Fuel Supply  Agent shall not be
     required to incur any  additional  cost as a result of the  revision of the
     schedule of  transportation  of gas to the alternate  delivery  point.  The
     amount of scheduled  transportation of gas to be delivered to the alternate
     delivery point shall be determined by the quantity of Energy  supplied from
     Alternate  Resources and the applicable  heat rate  determined by the rules
     for defining HR in the formula provided in Section  4.2.5.1.  An example of
     the determination of the transportation capacity is included in Appendix D.
     If Seller  has  delivered  Energy  from  Alternate  Resources  under  these
     circumstances, then the FRP (in $ per MMBtu) shall be [redacted]; or

          (ii)  Seller  shall  direct  Fuel  Supply  Agent  to use  commercially
     reasonable  efforts  to  remarket  to third  parties  the gas that has been
     scheduled for delivery to the Facility on the best terms possible under the
     circumstances. The efforts of the Fuel Supply Agent shall be subject to the
     constraints of the pipeline tariffs and operational procedures in effect at
     the time. The amount of scheduled transportation of gas to be remarketed to
     third parties  shall be determined by the quantity of Energy  supplied from
     Alternate  Resources and the applicable  heat rate  determined by the rules
     for  defining HR in the  formula  provided in from  paragraph  4.2.5.1.  An
     example of the determination of the transportation  capacity is included in
     Appendix D. If Seller has  directed  the Fuel Supply  Agent to remarket the
     gas  under  these  circumstances,  the  FRP  (in  $  per  MMBtu)  shall  be
     [redacted].

         4.3      Availability Guarantee.
                  ----------------------

          4.3.1 Seller  guarantees that the Actual  Availability of the Facility
     for each of the Peak and Off-Peak  Periods of each Contract Year will equal
     or exceed [redacted] ("Availability  Guarantee");  provided,  however, that
     (i) the first three months of operation  following  the  Commencement  Date
     shall be  excluded  from  the  Availability  Guarantee,  (ii) if and to the
     extent that a Force Majeure event affects  Seller's  ability to achieve the
     Availability  Guarantee,  other  than in the case of  Equipment  Breakdown,
     Seller shall be excused from the Availability Guarantee (and in this regard
     the Parties shall follow the  procedures  contemplated  in Section 11), and
     (iii) to the extent  that the  Facility is fired with fuel oil in excess of
     forty-eight (48) hours per combustion  turbine unit in any Contract Year in
     order to meet Purchaser's Request for Energy, then for every additional ten
     (10) hours that the  Facility is fired using fuel oil, the lower end of the
     Availability  Guarantee  range,  and the [redacted] in Sections 4.3.5.1 and
     4.3.5.2,  shall be reduced by [redacted],  which reductions shall remain in
     effect  until  the  next  Planned  Major  Maintenance   occurs.  If  either
     combustion  turbine is not fired on oil during  any  Contract  Year for the
     same number of hours as the other combustion turbine,  then for purposes of
     calculating the adjustment to the Availability  Guarantee,  each combustion
     turbine will be deemed to have been fired on oil during such  Contract Year
     for a number  of hours  that is equal to one half of the  summation  of the
     number of hours that each  combustion  turbine  was  actually  fired on oil
     during such Contract Year.

          4.3.2 In each Contract  Year, or partial  Contract Year in the case of
     the first  Contract Year (where the first three months are excluded) or the
     last Contract Year,  Seller shall be entitled to an availability  incentive
     payment  from  Purchaser   ("Availability   Incentive  Payment")  equal  to
     [redacted].

          4.3.3 The Actual  Availability  for the Peak  Period of each  Contract
     Year,  or  partial  Contract  Year in the case of the first  Contract  Year
     (where the first three  months are  excluded)  or the last  Contract  Year,
     shall be  calculated  as follows and then rounded up or down to the nearest
     tenth of a percentage point (based on the method that the rounding is up if
     the  succeeding  decimal is 5 or higher or otherwise the rounding is down);
     provided,  however,  that such  Actual  Availability  shall not  exceed one
     (1.00):

     Actual  Availability  = (PH-OH  -EDH+EMH+ARDH)/PH  Where:  "PH" (or "Period
          Hours")  shall  equal  the hours in the Peak  Period of such  calendar
          year;

          "OH" (or  "Outage  Hours") in the Peak  Period of such  Contract  Year
     means  all hours the  Facility  is  unavailable  for  operation;  provided,
     however,  that OH shall  not  include  hours in any day  during  which  the
     Purchaser  has not  Scheduled  any  Energy  from the  Facility  during  the
     entirety of such day;

          "EDH"  (or  "Equivalent  Derated  Hours")  in the Peak  Period of such
     Contract  Year  means the  summation  of EDH for each hour  during the Peak
     Period;  provided,  however,  that EDH shall not  include  hours in any day
     during which the  Purchaser  has not Scheduled any Energy from the Facility
     during  the  entirety  of such day.  In each hour for which the EDH of such
     hour must be calculated,  EDH for the hour will equal (Guaranteed  Output -
     Actual Capability)/Guaranteed Output;

          "EMH" (or "Excused  Maintenance  Hours") shall equal hours that Seller
     has  scheduled  maintenance  on the  Facility  in the Peak  Period  of such
     calendar year pursuant to Section 6.4 and, if applicable,  the  fifty-eight
     (58) hours of  pre-testing  maintenance  allowed  prior to a Capacity  test
     under Section 4.1.2;  provided,  however, that in any hour EMH must be zero
     if there is no Outage Hour in such hour; and

          "ARDH" (or "Alternate Resource Delivery Hours") shall equal the number
     of hours that Seller delivers Energy to Purchaser from Alternate  Resources
     in the Peak Period of such Contract Year to fully or partially  make up for
     shortfalls  caused by Facility outages or derates.  Seller will not receive
     any credit  for ARDH in any entire day unless  Seller is able to deliver at
     least  partial  Energy  in each hour of such day that  Purchaser  Schedules
     Energy,  in which case Seller will receive ARDH credit for each hour of the
     day based on the  lowest  ratio  during  any hour of such day of  Delivered
     Energy to Scheduled Energy.

          4.3.4 The Actual Availability for the Off-Peak Period of each Contract
     Year  shall  be  calculated  in  a  fashion   similar  to  Section   4.3.3,
     substituting  "Off-Peak  Period"  for "Peak  Period"  where it  appears  in
     Section 4.3.3.

          4.3.5 In the event that the Actual Availability during the Peak Period
     or  Off-Peak  Period,  or both,  of any given  Contract  Year,  or  partial
     Contract Year in the case of the first Contract Year (where the first three
     months are excluded) or the last Contract  Year, is less than the lower end
     of the Availability  Guarantee  range,  then Purchaser shall be entitled to
     receive  availability  damages  ("Availability  Damages")  from  Seller  as
     Purchaser's  sole and  exclusive  remedy for  Seller's  failure to delivery
     Capacity  and Energy from the  Facility  due to the  unavailability  of the
     Facility.  4.3.5.1 The  Availability  Damages for the Peak Period  shall be
     calculated  as follows (with any required  adjustments  as noted in Section
     4.3.5.3):

          Availability  Damages  for the  Peak  Period  of any  Contract  Year =
     [redacted]

               4.3.5.2 The Availability Damages for the Off-Peak Period shall be
          calculated  as  follows  (with any  required  adjustments  as noted in
          Section 4.3.5.3):

               Availability Damages for the Off-Peak Period of any Contract Year
          = [redacted]

               4.3.5.3 In both of Sections 4.3.5.1 and 4.3.5.2, [redacted] shall
          be adjusted for the use of fuel oil pursuant to Section 4.3.1(iii), if
          applicable.

               4.3.6 As soon as reasonably practicable [redacted],  Seller shall
          submit to Purchaser a statement setting forth in reasonable detail the
          actual availability of the Facility during the prior month,  including
          the underlying availability data.

               4.3.7 As soon as reasonably  practicable  following each Contract
          Year,  Seller shall submit to the Purchaser a statement  setting forth
          the Actual  Availability for the preceding Contract Year together with
          a calculation of the net amount of any Availability  Incentive Payment
          due to Seller or  Availability  Damages due to the  Purchaser  for the
          preceding  Contract  Year  based  on the  foregoing  calculations,  as
          applicable,  with  respect to the Peak Period and  Off-Peak  Period of
          such  Contract  Year.  Within ten (10) Business Days of (a) receipt of
          such statement, Purchaser shall pay any Availability Incentive Payment
          due to Seller by wire transfer in immediately  available funds, or (b)
          transmittal  of such  statement,  Seller  shall  pay any  Availability
          Damages due to Purchaser  by wire  transfer in  immediately  available
          funds.

         4.4 Alternate Resources. In any hour in which the Facility is
unavailable, Seller may continue to make deliveries of Energy in the full amount
Scheduled by Purchaser from non-Facility sources (including, but not limited to,
generating units on Seller's or its Affiliates' systems and Energy purchases
available to Seller) ("Alternate Resources") to replace the Energy that would
have been provided by the unavailable Facility. In any hour in which the
Facility is available, Seller may choose to make deliveries of Energy in the
full amount Scheduled by Purchaser, or any portion thereof, from Alternate
Resources to replace the Energy that would have been provided by the available
Facility; provided, however, that if the Facility is available, Seller must
maintain the Facility on-line and committed at least at the Facility's minimum
load, and Purchaser may Schedule spinning reserves from the Facility, all in
accordance with Appendix B. Seller must deliver Energy from Alternate Resources
to Purchaser at an unconstrained point on the Grid, and if Seller is making such
delivery at a time when the Facility is unavailable, then Seller will purchase
Firm Transmission Service for such delivery to the extent that such Firm
Transmission Service is available for the Alternate Resource Energy from the
point of its acquisition by Seller to the unconstrained point on the Grid. In
utilizing Alternate Resources, Seller shall comply with the notice requirements
of Section 3 of Appendix B.

         4.5 Purchaser's Right to Capacity and Energy. During the Operating
Period, Purchaser shall have the first call to purchase Seller's share of the
Capacity and Energy generated by, and Ancillary Services associated with, the
Facility (other than the reductions in Capacity elected jointly by the Customers
pursuant to Section 4.1.4); provided, however, that (i) subject to Purchaser's
right to Capacity and Energy under this Agreement and the Operating Agreement,
Seller may make sales of any Capacity and Energy generated by, and Ancillary
Services associated with, Seller's Equity Capacity when such Capacity and Energy
is not Scheduled by Purchaser, and (ii) in the event that Seller determines that
the Facility is capable of delivering Energy to the Grid prior to the Scheduled
Commencement Date, Seller shall have the option of either (a) utilizing the
Capacity and Energy generated by, and Ancillary Services associated with, its
percentage ownership share of the Facility prior to the Scheduled Commencement
Date for sales to third parties by delivering written notice of its election of
this option thirty (30) days prior to the anticipated Commercial Operation Date,
in which event Purchaser shall not make Capacity Payments until the later of the
Scheduled Commencement Date or the Commencement Date, or (b) initiating delivery
of Capacity and Energy to Purchaser under this Agreement on the Commencement
Date. If Seller makes sales of either or both Capacity and Energy to third
parties under Section 4.5(ii)(a) at a time when the Scheduled Commencement Date
has passed but the Commencement Date has not yet occurred, then Seller will pay
to Purchaser the portion, if any, of the proceeds of such sales that Seller
actually receives.

                                    SECTION 5
                  SCHEDULE FOR DELIVERY OF CAPACITY AND ENERGY

         5.1      Scheduled Delivery.
                  ------------------

          5.1.1  Seller   anticipates   that,  the  Facility  will  achieve  the
     Commencement  Date by the  Scheduled  Commencement  Date and shall be fully
     capable of reliably  producing  the power and Energy to be  provided  under
     this Agreement to Purchaser at the Delivery Point; provided,  however, that
     if and to the extent that a Force Majeure event affects Seller's ability to
     timely comply with the foregoing guarantee, the Scheduled Commencement Date
     shall be extended by the amount of time Seller  reasonably  needs to remedy
     the effects of the Force Majeure that prevented  Seller's  performance (and
     in this regard,  the Parties shall follow the  procedures  contemplated  in
     Section 11).

          5.1.2 In the event that Seller fails to achieve the Commencement  Date
     by the date that is two (2) years after the  Scheduled  Commencement  Date,
     then either (i) Seller shall have the right to simultaneously terminate all
     of the Power  Purchase  Agreements  by  delivering  written  notice of such
     election  to  Purchaser  and the  other  Customers  ("Seller's  Termination
     Notice"),  or (ii) Purchaser may terminate this  Agreement,  if and only if
     each  of  the  other  Customers  also  terminates   contemporaneously   its
     respective  Power  Purchase  Agreement  for the same reason,  by delivering
     written notice of such election to Seller (collectively,  together with the
     other  Customers'  similar  notices,  "Purchasers'  Termination  Notices").
     Within ten (10) Business Days of the date of Seller's  Termination  Notice,
     Seller shall pay Purchaser liquidated damages in [redacted], this Agreement
     shall terminate  effective as of the date of Seller's  Termination  Notice,
     and Seller  shall have no further  liability  to  Purchaser  other than the
     liquidated damages paid under this Section 5.1.2.  Within ten (10) Business
     Days of the  date of  Purchasers'  Termination  Notice,  Seller  shall  pay
     Purchaser liquidated damages in [redacted],  this Agreement shall terminate
     effective  as of the date of  Purchasers'  Termination  Notice,  and Seller
     shall have no further  liability  to  Purchaser  other than the  liquidated
     damages paid under this Section 5.1.2.

          5.1.3 In the event that Seller's  failure to achieve the  Commencement
     Date by the Scheduled  Commencement Date is attributable to, in whole or in
     part,  the  failure  of  any  Customer  to  meet  any of  their  respective
     obligations  under  this  Agreement  or  their  respective  Power  Purchase
     Agreements or the Collateral Documents, then (a) the Scheduled Commencement
     Date  shall be  extended  for such  period  of  Purchaser's  or such  other
     Customer's  failure,   and  (b)  Purchaser  shall  make  Capacity  Payments
     [redacted] beginning as of the initial Scheduled Commencement Date (without
     any extension);  provided, however, that Purchaser shall not be required to
     make any Capacity Payments under this Section 5.1.3 to the extent the delay
     in  achieving  the  Scheduled  Commencement  Date  is  attributable  to the
     concurrent  failure of Purchaser or such other  Customers and Seller (where
     such concurrent  failures are not  co-extensive,  such relief from Capacity
     Payments  shall apply only during the period of time that Seller's  failure
     to meet its obligations contributed to the delay); provided,  further, that
     in the event  Purchaser's  failure  to meet its  obligation  was the result
     solely  of  a  Force  Majeure  event  that  prevented   Purchaser's  timely
     completion of such  obligation,  then Purchaser will be excused from having
     to make Capacity Payments as contemplated in Section 5.1.3(b) for the first
     forty-five (45) days after the Scheduled Commencement Date (without benefit
     of  any  extension  thereof  allowed  under  this  Agreement),  but  if the
     Commencement  Date does not occur within such  forty-five  (45) day period,
     then Purchaser shall recommence  making Capacity  Payments  starting at the
     beginning of the  forty-sixth  (46th) day after the Scheduled  Commencement
     Date and thereafter  continue making  Capacity  Payments as contemplated in
     Section 5.1.3(b).

          5.2 Conditions to  Commencement.  Seller will notify  Purchaser of the
     date  when  the  Facility  has  achieved  the   following   criteria   (the
     "Commencement  Date"),  which  notice  will be  accompanied  by  reasonable
     documentation   evidencing  satisfaction  or  occurrence  of  each  of  the
     following;  provided,  however,  that Seller  shall not be  precluded  from
     making third-party sales, in accordance with Section 4.5, of its percentage
     ownership  share of Capacity and Energy from the  Facility  notwithstanding
     whether any or all of the  following  criteria have been met in whole or in
     part:

          5.2.1  successful  completion of required  testing of the Facility has
     occurred for purposes of  financing,  project  operation,  air  permitting,
     Purchaser's   planning  and  reporting,   and  manufacturers'   warranties,
     including  establishment  of the  initial  Demonstrated  Capability  of the
     Facility as contemplated in Section 4.1.2;

          5.2.2 the Facility has completed four (4) successful start-ups without
     experiencing   any  abnormal   operating   conditions   and  has  generated
     continuously  for a period  of not  less  than  sixteen  (16)  hours  while
     synchronized  to the  Grid at a net  Capacity  output  of at  least  ninety
     percent  (90%)  of  the  Demonstrated   Capability  (adjusted  for  ambient
     conditions) without experiencing any abnormal operating conditions;

          5.2.3  the  Facility  is  in  compliance   with  the   Interconnection
     Agreement,  either is capable of operation in the AGC mode or is capable of
     responding  to  manual  load  change  instructions,  has  achieved  initial
     synchronization  with the Grid, and has demonstrated the reliability of its
     communications  systems and communications with the Florida Municipal Power
     Pool Energy Control Center located in the OUC Pershing  Operations Building
     (or the replacement for such control center if the Customers decide to have
     their generation control performed at a different location); and

          5.2.4  certificates of insurance  coverages and/or insurance  policies
     required  of Seller  have been  obtained  and  submitted  to  Purchaser  as
     required by Section 28.

         5.3 Test Energy. Seller shall coordinate the production and delivery of
Test Energy with Purchaser. Purchaser shall cooperate with Seller to facilitate
Seller's testing of the Facility, provide the fuel necessary to conduct testing,
and shall accept Test Energy delivered to Purchaser in accordance with the
provisions of Section 4.2.

                                    SECTION 6
                 REQUESTS FOR ENERGY; OPERATION AND MAINTENANCE

         6.1 Communicating Requests for Energy. Purchaser shall have the right
to request deliveries of Energy by providing a Request for Energy to Seller in
accordance with this Section 6 and Appendix B; provided, however, that Purchaser
and the other Customers shall coordinate their Scheduling requirements by
jointly submitting a single Request for Energy that covers all of their
respective requirements on any given day.

          6.1.1 The  Customer's  joint  Requests for Energy may request the full
     output of the Facility,  reduced by those  amounts,  if any, that Customers
     jointly elect to subtract from the Capacity available to Customers pursuant
     to the process  provided in Section  4.1.4 of this  Agreement and the other
     Power Purchase  Agreements.  If the Customer's  joint Request for Energy is
     for less than the full output of the  facility,  then the request  shall be
     deemed to be a Request for Energy first from  Purchaser's  Equity  Capacity
     and,  if such  Equity  Capacity is not  sufficient,  then from  Purchaser's
     purchased Energy under this Agreement.

          6.1.2 The Parties hereby consent to the recording of all conversations
     on the  telephone  lines  used for  communicating  Requests  for Energy and
     related  notices and  instructions  in accordance  with customary  industry
     practice. The contents of such recordings shall be definitive.

         6.2 Limitations on Requests for Energy. Notwithstanding anything to the
contrary in this Agreement, any Request for Energy, operation in the AGC mode or
operation in response to a Capacity Emergency that would require the Facility to
operate in a manner inconsistent with the Technical Limits, Prudent Utility
Practice or applicable Law and Permit requirements shall be deemed not to comply
with the requirements and limitations set forth in this Section 6. If and when a
Customers' Request for Energy does not comply with the requirements and
limitations of this Section 6 by reason of the previous sentence, Seller will
notify Customers of such noncompliance promptly after Seller realizes that the
Request for Energy is noncompliant and will modify Customer's Request for Energy
to make it consistent with the Technical Limits, Prudent Utility Practice and
all applicable Laws and Permits to the extent it is reasonably possible to do so
consistent with such standards.

         6.3 Operation of the Facility. Seller shall operate and maintain the
Facility in accordance with this Agreement, Prudent Utility Practice, the
Technical Limits and all applicable Laws and Permit requirements. Any emission
allowances required for operation of the Facility as contemplated in this
Agreement shall be provided in accordance with the applicable provisions of the
Operating Agreement.

         6.4 Scheduled Maintenance. Seller agrees to schedule Planned Major
Maintenance during the Off-Peak Period, or to obtain Purchaser's consent to
schedule such maintenance during the Peak Period. Seller will submit to
Purchaser an annual maintenance projection and will make reasonable efforts to
coordinate the scheduling of such Planned Major Maintenance with Purchaser,
including estimated start dates and return to service dates. Seller must seek
the consent of OUC, acting for itself and on behalf of the other Customers
(which Purchaser hereby authorizes) in scheduling of any Minor Maintenance;
provided, however, that Purchaser guarantees Seller will be afforded a minimum
of four (4) such Minor Maintenance events distributed approximately evenly over
the Off-Peak Period, with a maximum of six (6) such Minor Maintenance events
during any year; provided, further, that requests for Minor Maintenance events
during the period from May 15 through September 15 may be granted or withheld in
OUC's sole discretion.

         6.5 Transmission Operator. Coordination with an RTO regarding security
and reliability of the Grid as it relates to the Facility, or any other entity,
having control over the security and reliability of the Grid shall be the
responsibility of Seller as the operator of the Facility. Coordination with an
RTO, or other entity, having balancing authority or scheduling authority over
the Facility should be handled by Purchaser for any schedules to Purchaser from
the Facility and by Seller for any other schedules from the Facility. Any
orders, directives or operating requirements that Seller is required to follow
by Law imposed on Seller by an RTO, or any other entity, having control over the
security and reliability of the Grid shall take precedence over this Agreement.
To the extent the requirements of such order, directive or operating requirement
necessarily prevent Seller from fulfilling its obligations under this Agreement,
Seller shall be relieved of its obligations hereunder. To the extent the
requirements of such order, directive or operating requirement conflict with
Seller's fulfillment of its obligations hereunder, the rights and obligations of
the Parties hereunder shall be adjusted as necessary to comply with such orders,
directives or operating requirements.

                                    SECTION 7
                        INTERCONNECTION AND TRANSMISSION

     7.1   Interconnection  Facilities.   The   Parties shall execute an
Interconnection  Agreement pursuant to applicable  interconnection  policies and
procedures  of OUC.  The  Interconnection  Agreement  shall  contain  terms  and
conditions  governing the interconnection and parallel operation of the Facility
with the Grid.

         7.2 Delay in Interconnection. Purchaser shall complete the OUC
Interconnection Facilities and ensure that the Grid is capable of providing and
receiving Energy by the date that is eight (8) months prior to the anticipated
Commercial Operation Date, but in no event earlier than January 15, 2003. By the
date that Seller has completed the collector bus and the 230 kv line to the OUC
Interconnection Facilities, but no earlier than the date that is eleven (11)
months prior to the anticipated Commercial Operation Date, OUC shall provide
service to the Facility for the purposes of engineering and testing the
collector bus and other systems by either providing 230 kv service at the 230 kv
Interconnection Point or by providing service to the 4160 kv SWGR bus. If for
any reason, other than the fault of Seller, OUC fails to complete the OUC
Interconnection Facilities and/or if the Grid is not capable of providing and
receiving Energy (as determined by OUC and as supported by reasonable
documentation) in accordance with the preceding sentence and, as a result, OUC
cannot accommodate Seller's start-up and testing of the Facility (such a delay,
an "IF/Grid Delay"), then the Scheduled Commencement Date shall be extended by
that period of time equal to the IF/Grid Delay; provided, however, that
Purchaser shall make the Capacity Payments as provided in Section 5.1.3(b);
provided, further, that if Seller would not have been capable of delivering
Energy from the Facility to the OUC Interconnection Facilities, even in the
absence of an IF/Grid Delay, on the original anticipated Commercial Operating
Date ("Seller's Delay"), then extension of the Scheduled Commencement Date and
the date on which Purchaser is obligated to make Capacity Payments shall be
adjusted by the period of time of Seller's Delay.

         7.3      Transmission.
                  ------------

                  7.3.1    Purchaser shall be responsible for all costs
                           associated with and for making all necessary
                           transmission arrangements for Delivered Energy,
                           including tagging and any required Ancillary
                           Services, with the transmission service provider for
                           delivery from and beyond the Delivery Point.

                  7.3.2    Seller shall bear all costs and losses and shall be
                           responsible for making all arrangements for
                           transmission service, including tagging and any
                           required ancillary services, with respect to delivery
                           of Capacity and Energy from an Alternate Resource to
                           an unconstrained point on the Grid.

                                    SECTION 8
                             RISK OF LOSS; METERING

         8.1 Risk of Loss. Delivered Energy sold pursuant to this Agreement
shall be made available to Purchaser at the Delivery Point. Risk of loss with
respect to all such Energy shall pass to Purchaser when such Delivered Energy is
made available to Purchaser at the Delivery Point. Risk of loss with respect to
the natural gas supply utilized to deliver Energy pursuant to this Agreement
shall pass to Seller when such natural gas supply is made available to Seller at
the Gas Delivery Point. For purposes of this Agreement, and except to the extent
expressly limited in this Agreement, Purchaser shall bear all risk of all
occurrences of any nature (including Force Majeure or any other event beyond the
reasonable control of either Party) affecting any interconnection facilities,
substations, transmission lines and other facilities on Purchaser's side of the
applicable Delivery Point and the Gas Delivery Point.

         8.2 Place of Measurement. All Energy from the Facility shall be
measured by the Facility's meters (such meters collectively, the
"Interconnection Meters"), and the Energy delivered from the Facility shall be
the Interconnection Meters' readings of the quantities of Energy, reduced by an
amount equal to the applicable Energy quantity necessary to compensate for the
loss, if any, between the Interconnection Meters and the Delivery Point.

         8.3 Testing and Calibration of Interconnection Meters. Seller shall
inspect and calibrate the Interconnection Meters at least once a year. Seller
shall give Purchaser reasonable advance notice of any inspection, testing or
calibration of the Interconnection Meters. Purchaser shall have the right to
have a representative present at such inspection, testing or calibration of the
Interconnection Meters. Purchaser shall have the right to require, at
Purchaser's expense except as set forth in Section 8.4, a test of any of the
Interconnection Meters not more often than once every twelve (12) months. If any
Interconnection Meter is found to be inaccurate by one half of a percent (0.5%)
or less, then any previous recordings of such Interconnection Meter shall be
deemed accurate, but Seller shall use its reasonable efforts to adjust such
Interconnection Meter immediately and accurately. In the event that any
Interconnection Meter is found to be inaccurate by more than one half of a
percent (0.5%), Energy delivered at the corresponding Delivery Point shall be
measured by reference to Customers' check-meters, if installed and registering
accurately, or the meter readings at the Delivery Point for the period of
inaccuracy shall be adjusted as far as can be reasonably ascertained by Seller
from the best available data from both Parties. If the period of the inaccuracy
cannot be ascertained reasonably, any such adjustment shall be for a period
equal to one half of the time elapsed since the preceding test. Customers' check
meters, if installed, shall be subject to Seller's right to require, at Seller's
expense except as set forth in Section 8.4, a test of any of the check-meters
not more often than once every twelve (12) months. If any of Customers' check
meters is found to be inaccurate by one half of a percent (0.5%) or less, then
any previous recordings of such check meter shall be deemed accurate, but
Customers shall use their reasonable efforts to adjust such check meter
immediately and accurately.

         8.4 Delivered Energy Adjustments. In the event that, due to correction
for inaccurate Interconnection Meters with an inaccuracy in excess of one half
of a percent (0.5%) (determined in accordance with Section 8.3), the amount of
Delivered Energy is increased or decreased, the revised quantity of Delivered
Energy shall be used for purposes of calculating the Energy Payment pursuant to
Section 4.2. If any Energy Payment has already been calculated using the
previous quantity of Delivered Energy, the Energy Payment shall be recalculated
using the revised quantity of Delivered Energy. If the recalculation (i)
increases the Energy Payment, Purchaser shall pay to Seller the amount of such
increase, or (ii) decreases the Energy Payment, Seller shall refund to Purchaser
the amount of such decrease. In any such case, the required payment shall be
included on the next invoice to be issued and shall be paid at the time payment
of such invoice is required pursuant to Section 9. Any payment required under
this Section 8.4 shall bear interest in accordance with Section 9.3 from the
original due date (or from the date paid in the case of a refund) until the date
paid (or until the date refunded in the case of a refund). In the case of
inaccurate Meters with an inaccuracy in excess of one half of a percent (0.5%),
the Party which owns such Meters shall promptly cause such Meters to be
corrected and, where such inaccuracy was determined pursuant to a test required
by the other Party, the Party which owns such Meters shall bear the expense of
any such test.

                                    SECTION 9
                                METHOD OF PAYMENT

         9.1 Invoicing and Payment. As soon as reasonably practicable after the
first day of each month commencing with the second month or portion thereof
during which Test Energy is delivered to Purchaser and continuing for each month
until the first month after the end of the Operating Period, Seller shall submit
to Purchaser an invoice as described in Section 9.2. If such invoice indicates a
net amount payable to Seller, Purchaser shall pay such invoice within ten (10)
Business Days of Purchaser's receipt of the invoice. Such payment shall be made
in U.S. dollars by wire transfer of immediately available funds prior to 3:00
p.m. Eastern Prevailing Time, on the date of payment in accordance with the
invoice instructions. Payments made after 3:00 p.m. Eastern Prevailing Time or
on a day that is not a Business Day shall be deemed to be made on the next
subsequent Business Day. If such invoice indicates a net amount payable to
Purchaser, Seller shall pay such amount within ten (10) Business Days of
Purchaser's receipt of the invoice.

         9.2 Monthly Invoices. Each monthly invoice shall show the amount and
calculation of the following, as applicable: (i) the Capacity Payment and Energy
Payment payable by Purchaser to Seller for the preceding month net of any
amounts to be credited by Seller to Purchaser for such month; (ii) following
each Contract Year, the net amount payable by Purchaser or Seller pursuant to
Section 4.3 respecting the Availability Incentive Payment and Availability
Damages, as the case may be; and (iii) payments, refunds, credits and
reductions, if any, payable by either Party pursuant to Sections 9.3 or 9.4.

         9.3 Late Payments. Any amount due from either Party hereunder not paid
in full on or before the date such payment is due will incur a delayed payment
charge on the unpaid amount from the original due date until the date paid at an
annual rate equal to the then current Prime Rate plus six (6) percentage points
(or such lesser annual rate as is the maximum rate permitted by applicable Law).

         9.4 Billing Disputes. In the event of any dispute as to all or any
portion of any monthly invoice, Purchaser shall give notice of the dispute to
Seller but shall pay the full amount of the invoiced charges when due (or if
applicable, Seller shall give notice to Purchaser of Seller's dispute regarding
any information provided by Purchaser that was a factor in any calculation
supporting invoiced amounts). Such notice shall state the amount in dispute and
set forth a full statement of the grounds on which such dispute is based.
Purchaser and Seller shall give all due and prompt consideration to any such
dispute. Upon final determination (whether by agreement, dispute resolution
pursuant to Section 18 hereof, or otherwise) of the dispute, any amounts due to
Purchaser or Seller, together with interest from the date due until the date
paid at the rate specified in Section 9.3, shall be paid no later than thirty
(30) days following such final determination. Purchaser and Seller shall have
until the end of one hundred eighty (180) days after its receipt of any invoice,
statement or information supporting invoice calculations to question or contest
the correctness of any charge or credit on such invoice or statement.

         9.5 Audit Rights. Until the end of one hundred eighty (180) days after
Purchaser's receipt of any invoice, Seller and Purchaser will make available to
the other upon written request, and the Purchaser or Seller may audit, such
books and records of the other (or other information to which Purchaser or
Seller has access) as are reasonably necessary for Purchaser or Seller to
calculate and determine the amounts shown on such invoice and thereby to verify
the accuracy and appropriateness of the amounts billed or credited to Purchaser
or Seller hereunder; provided, however, that Purchaser shall coordinate its
rights under this section with the other Customers in order to conduct joint,
rather than individual, audits pursuant to this provision. The Parties shall
maintain their respective books and records in accordance with generally
accepted accounting principles applicable from time to time.

                                   ARTICLE 10
                    CHANGE IN LAW; MODIFICATION OF AGREEMENT

         10.1     Change in Law.
                  -------------

               10.1.1 The Parties  acknowledge that a Change in Law may increase
          or decrease  Seller's costs in providing service under this Agreement.
          In the  event of such a Change  in Law,  Seller  may  give  notice  to
          Purchaser  that  Seller's  costs  of  providing   service  under  this
          Agreement have changed (which notice will include reasonably  detailed
          information  about such cost changes) and, in the event such notice is
          given,  this  Agreement  shall be modified to reflect  such changes in
          costs,  subject to Section 18,  provided,  however,  that in the event
          Seller provides notice of such an increase, then Purchaser may provide
          documentation  to Seller of other  Changes in Law that have  decreased
          the cost of providing  service  under this  Agreement and Seller shall
          set-off  any  such  decrease  in cost  against  the  increase  in cost
          identified in the Seller's notice.

               10.1.2  Purchaser  shall  pay  the  adjusted  amount   calculated
          pursuant to Section 10.1.1 for the period  commencing  with the notice
          of changed cost through the date of termination of this Agreement. The
          Parties  shall make such  payments  as are  appropriate  to adjust all
          prior  billings  or  payments  to reflect  the  adjustments  described
          herein.

               10.1.3  A  "Change  in Law"  shall  mean a  change  in Law  which
          constitutes a new environmental or tax Law or a new  interpretation of
          such Law (not including a change in tax Laws that assess taxes only on
          Seller's  net income) or a change in the  provisions  contained in the
          Site Certification permits and which generally affects the cost of, or
          restricts, operation of the Facility.

         10.2 Modification of Agreement. In the event the FERC modifies this
Agreement, the Parties agree to make all changes necessary to preserve as nearly
as possible the bargain contained in this Agreement, including but not limited
to, the total amounts of Capacity and Energy delivered to Purchaser and the
total amount of revenues to be received by Seller hereunder; provided, however,
that Seller shall have the right to terminate this Agreement without further
obligation to Purchaser in the event that modifications to this Agreement by
FERC cause a material adverse effect on the economic value of this Agreement to
Seller; provided, further, that Purchaser shall have the right to terminate this
Agreement without further obligation to Seller in the event that modifications
to this Agreement by FERC cause a material adverse effect on the economic value
of this Agreement to Purchaser; and provided, further, that in the event Seller
elects to terminate this Agreement pursuant to this Section 10.2, then Purchaser
and Seller agree to expeditiously proceed with a sale at net book value of
Seller's entire ownership interest in the Facility to Purchaser and the other
Customers in accordance with the provisions of the Ownership Agreement. Seller
agrees to use good faith efforts, consistent with Prudent Utility Practice, to
resist any changes to this Agreement proposed by the FERC or any other
Governmental Body or their respective staffs, and Purchaser agrees not to seek,
request, promote or support any changes to this Agreement before the FERC or any
other Governmental Body.

                                   SECTION 11
                                  FORCE MAJEURE

         11.1 Force Majeure Notice and Obligations. With respect to those
obligations of the Parties set forth in this Agreement that expressly excuse
performance in the event of a Force Majeure, the existence of Force Majeure that
causes a Party (the "Non-Performing Party") to delay performance or fail to
perform such obligations shall excuse the Non-Performing Party's delay in
performing, or failure to perform, such obligations, subject to any express
limitations on such excuse provided or referenced in the Section invoking the
excuse. In the event of Force Majeure that causes the Non-Performing Party to
delay performance or fail to perform its obligations under this Agreement and
that excuses such delay or failure:

                  11.1.1   the Non-Performing Party shall give the other Party
                           written notice and full details as soon as
                           practicable after learning of the Force Majeure;

                  11.1.2   the Non-Performing Party shall use reasonable
                           dispatch to remedy its inability to perform (except
                           that this provision shall not impose a requirement on
                           either Party to deliver or receive Energy at a
                           delivery point other than a Delivery Point), and, if
                           Seller is the Non-Performing Party, Seller shall use
                           reasonable efforts to provide Energy from the
                           Facility at a Delivery Point; and

                  11.1.3   when the Non-Performing Party is able to resume
                           performance of its obligations under this Agreement,
                           that Party shall give the other Party written notice
                           to that effect.

                                   SECTION 12
                         EVENTS OF DEFAULT; TERMINATION

         12.1 Events of Default of Seller. Except when excused due to a Force
Majeure event pursuant to the provisions of Section 11 hereof, an Event of
Default shall be deemed to have occurred with respect to Seller upon the
occurrence and during the continuance of any of the following events:

               12.1.1 The Bankruptcy of Seller;

               12.1.2  Seller  fails to pay any  invoiced  amount or  undisputed
          non-invoiced  amount  when due under this  Agreement  within  five (5)
          Business Days after receiving notice of such failure;

               12.1.3  Seller  fails to perform or observe  any of its  material
          obligations or covenants  hereunder or otherwise is in material breach
          of this Agreement (other than obligations addressed in Section 12.1.2)
          and such failure or breach continues unremedied for a period of thirty
          (30) days  following  notice  from  Purchaser  demanding  cure of such
          failure  or  breach  (or  within  such  longer  period  of  time as is
          reasonably  necessary  to  accomplish  such  cure,  if  it  cannot  be
          reasonably   accomplished   within  such  30-day   period  and  Seller
          diligently  commences such cure in such period and continues such cure
          to completion); or

               12.1.4 Any  representation  or warranty made by Seller herein, in
          the Ownership Agreement or in any document or certificate furnished by
          Seller  hereunder  shall  have been  false  when  made and such  false
          representation  or  warranty  has a  material  and  adverse  effect on
          Purchaser and, if capable of being cured, such false representation or
          warranty is not cured  within  thirty (30) days after  notice  thereof
          from Purchaser.

         12.2 Events of Default of Purchaser. An Event of Default shall be
deemed to have occurred with respect to Purchaser upon the occurrence and during
the continuance of any of the following events:

               12.2.1 The Bankruptcy of Purchaser;

               12.2.2  Purchaser  fails:  (i) to pay any invoiced  amount or any
          undisputed  non-invoiced  amount when due under this Agreement  within
          ten (10) Business Days after receiving notice of such failure; or (ii)
          to  make  any  payment  of  principal  or  interest   under  the  Bond
          Legislation or any other bond resolution, indenture or similar secured
          instrument of the Purchaser when due (at maturity,  upon redemption or
          otherwise), which failure is not cured within ten (10) Business Days;

               12.2.3  Purchaser fails to perform or observe any of its material
          obligations or covenants  hereunder or otherwise is in material breach
          of this Agreement (other than payment obligations, which are addressed
          in Section 12.2.2) and such failure or breach continues unremedied for
          a period of thirty (30) days  following  notice from Seller  demanding
          cure of such  failure or breach (or within such longer  period of time
          as is  reasonably  necessary  to  accomplish  such cure,  if it cannot
          reasonably  be  accomplished  within such 30-day  period and Purchaser
          diligently  commences such cure in such period and continues such cure
          to completion);

                  12.2.4   Any representation or warranty made by Purchaser
                           herein, in the Ownership Agreement or in any document
                           or certificate furnished by Purchaser shall have been
                           false when made and such false representation or
                           warranty has a material and adverse effect on Seller
                           and, if capable of being cured, such false
                           representation or warranty is not cured within thirty
                           (30) days after notice thereof from Seller; or

                  12.2.5   Purchaser fails to comply with any of the
                           requirements of Section 15 within thirty (30) days of
                           receipt of Seller's written notice of such failure.

         12.3 Remedies; Notice of Intent to Terminate. Subject to the provisions
of this Agreement providing for limitations on damages and for exclusive
remedies under certain circumstances, upon the occurrence and during the
continuation of any Event of Default, the Party not in default (the
"Non-Defaulting Party") shall have the right to pursue all remedies available at
law or in equity, suspend its performance under this Agreement to the extent of
the Event of Default and/or to deliver a notice of intent to terminate ("Notice
of Intent to Terminate") this Agreement to the Party in default ("Defaulting
Party"). Any Notice of Intent to Terminate shall specify the Event of Default
giving rise to such Notice of Intent to Terminate. Following the giving of a
Notice of Intent to Terminate, the Parties shall negotiate pursuant to the
provisions of Section 18 hereof, following which, unless the Parties shall have
otherwise mutually agreed on a remedy or the Defaulting Party or any lender or
financing party ("Lender") to the Defaulting Party or its affiliate, or agent on
behalf of a Lender, shall have cured such default or is diligently pursuing a
remedy to cure the Event of Default, the Non-Defaulting Party having given the
Notice of Intent to Terminate may terminate this Agreement by giving written
notice thereof to the Defaulting Party, whereupon this Agreement shall
immediately terminate; provided, however, that upon a default under Section
12.2.2, the Non-Defaulting Party may serve a notice of termination of this
Agreement, without having first to deliver a Notice of Intent to Terminate and
to negotiate under Section 18, whereupon this Agreement shall terminate
immediately upon delivery of such notice of termination, unless such default
shall have been cured prior to the delivery of such notice of termination.
Except as provided in Sections 2.2, 2.3, 5.1.2, 10.2, 12.4, and 12.5 or in this
Section 12.3, or in Section 4.3 of the Ownership Agreement, neither Party shall
have any right to terminate this Agreement.

         12.4 Notice to Lenders. Any and all notices given by Purchaser to
Seller under this Section 12 shall also be given at the same time by Purchaser
to any Lender for which Seller provides written notice to Purchaser of the need
to provide such notice and the address to which such notice must be sent. No
termination of this Agreement by Purchaser will be effective until and unless
Purchaser shall have given Seller's Lenders notice of Seller's Event of Default
and an opportunity to cure such Event of Default, which notice and cure period
shall be as set forth in any consent executed by Purchaser with Seller's Lenders
but in any event such notice and cure period shall be at least concurrent with
that provided to Seller under this Agreement.

         12.5     Termination Payment.
                  -------------------

               12.5.1  Except in the case of an Event of Default  under  Section
          12.2.2 under the  circumstances  that are described in Section  12.5.2
          below  or  an  Event  of  Default  under  Section   12.1.3  under  the
          circumstances that are described in Section 12.5.3 below, in the event
          that a  Non-Defaulting  Party  terminates  this Agreement  pursuant to
          Section 12.3 and provided an Event of Default  shall not have occurred
          and be  continuing as to such  Non-Defaulting  Party,  the  Defaulting
          Party shall pay the Non-Defaulting  Party the Termination  Payment, as
          defined  below,  within thirty (30) days of the effective  date of the
          termination.  Except as so  otherwise  provided  in Section  12.5.2 or
          12.5.3,   the  Termination   Payment  (if  applicable)  shall  be  the
          Defaulting Party's sole liability arising out of a termination of this
          Agreement  pursuant to Section 12.3,  and neither Party shall have any
          other  liability  or  obligation  to the other Party  arising out of a
          termination of this Agreement pursuant to Section 12.3. The Defaulting
          Party's  Termination  Payment (if  applicable)  to the  Non-Defaulting
          Party resulting from an Event of Default under this Agreement shall be
          calculated as follows:

               Termination Payment = TPR * APCN

               Where:

               TPR = a termination payment rate in dollar per kilowatt, which is
          equal to: (i) [redacted] if the Notice of Intent to Terminate is given
          between  the  date of this  Agreement's  execution  and the end of the
          twelfth  (12th)  month after the date  Purchaser  gives  notice  under
          Section 2.2 or 2.3 that it has elected to  terminate  this  Agreement;
          (ii)  [redacted] if the Notice of Intent to Terminate is given between
          the end of such twelfth (12th) month and the end of the  twenty-fourth
          (24th)  month after the date  Purchaser  gives such  notice;  or (iii)
          [redacted]  if the Notice of Intent to Terminate is given  between the
          end of such twenty-fourth (24th) month and the expected termination of
          this Agreement twelve (12) months later; and

               APCN = the Annual Purchaser's Capacity Nomination,  in kilowatts,
          that is in effect on the date of the Notice of Intent to Terminate.

               Delivery of a Notice to  Terminate or  calculation  or payment of
          the Termination  Payment shall not relieve the Defaulting Party of its
          obligation to pay all other amounts that became or have become due and
          payable by the Defaulting  Party hereunder prior to the effective date
          of termination.

               12.5.2 In the case of an Event of Default under Section 12.2.2 by
          Purchaser at a time when Purchaser is able to pay its debts  generally
          as they come due,  Seller  shall be  entitled  to  recover  its actual
          damages,  which the Parties  recognize  may be greater  than,  or less
          than, the Termination  Payment.  In determining  actual  damages,  any
          amounts  actually  recovered  from  Seller's   reasonable  efforts  to
          mitigate such damages shall be taken into account.

               12.5.3 In the case of an Event of Default by Seller under Section
          12.1.3 that  results  from a failure by Seller to deliver  Energy from
          the Facility to Purchaser as required by this Agreement at a time when
          (i) the  Facility was capable of  delivering  such Energy to Seller as
          required by this Agreement  consistent with Prudent Utility  Practice,
          the Technical Limits and applicable Law and Permit  requirements,  and
          (ii) Seller sold such Energy to a third party, then Purchaser shall be
          entitled to recover the actual damages of Purchaser, which the Parties
          recognize may be greater than, or less than, the Termination  Payment.
          In  determining  actual  damages,  the actual  results of  Purchaser's
          reasonable  efforts  to  mitigate  such  damages  shall be taken  into
          account.

                  12.5.4   In receiving a Termination Payment or recovering
                           actual damages, the Non-Defaulting Party shall also
                           be entitled to recover its reasonable attorney fees
                           in enforcing this provision.

                                   SECTION 13
                                     WAIVER

         Failure by either Party to exercise any of its rights under this
Agreement shall not constitute a waiver of such rights. Neither Party shall be
deemed to have waived any right resulting from any failure to perform by the
other Party unless it has made such waiver specifically in writing, and no such
waiver shall operate as a waiver of any future failure to perform whether of a
like or different character. No single or partial exercise of any right, power
or privilege hereunder shall preclude any other or further exercise thereof or
the exercise of any other right, power or privilege hereunder.

                                   SECTION 14
                         REPRESENTATIONS AND WARRANTIES

               14.1  Representations  and  Warranties  of Seller.  Seller hereby
          represents and warrants to Purchaser as follows:

               14.1.1 Organization and Existence.  Seller is a limited liability
          company duly  organized,  validly  existing and in good standing under
          the laws of the State of Delaware,  is qualified to transact  business
          in Florida,  and has  sufficient  power and  authority  to execute and
          deliver this Agreement and the Collateral Documents and to perform its
          obligations  hereunder  and  thereunder.  Seller  has full  power  and
          authority to carry on its business as it is now being conducted and as
          it is contemplated  hereunder and under the Collateral Documents to be
          conducted in the future.

               14.1.2 Due Authorization. The execution, delivery and performance
          of this Agreement and the Collateral Documents by Seller has been duly
          and  effectively  authorized  by all  requisite  action on the part of
          Seller.  This  Agreement and the Collateral  Documents  constitute the
          legal, valid and binding  obligations of Seller,  enforceable  against
          Seller in accordance with their terms, except as limited by applicable
          bankruptcy,  insolvency,  reorganization,  moratorium  or  other  laws
          affecting the rights of creditors  generally and by general principles
          of equity.

               14.1.3 Litigation. There is no action, suit, claim, proceeding or
          investigation  pending or, to Seller's  knowledge,  threatened against
          Seller or The  Southern  Company  by or before any  Governmental  Body
          having  jurisdiction  over Seller or The Southern  Company  which,  if
          adversely  determined,  would  have a  material  adverse  effect  upon
          Seller's  ability  to  enter  into and  perform  its  obligations  and
          consummate  the  transactions  contemplated  by this Agreement and the
          Collateral  Documents or the material  rights of Purchaser  under this
          Agreement or the Collateral Documents. Neither Seller nor The Southern
          Company is subject to any material outstanding judgment,  order, writ,
          injunction or decree of any Governmental Body having jurisdiction over
          Seller or The Southern  Company which would  materially  and adversely
          affect its  ability to enter into and perform  its  obligations  under
          this Agreement and the Collateral  Documents or the material rights of
          Purchaser under this Agreement or the Collateral Documents.

               14.1.4 No  Violation  or Conflict.  The  execution,  delivery and
          performance by Seller of this  Agreement and the Collateral  Documents
          do not violate or conflict  with  Seller's  operating  agreement,  any
          existing  Law  applicable  to Seller,  or any note,  bond,  indenture,
          agreement or  instrument  to which Seller is a party or by which it is
          bound.

               14.1.5  Approvals.  Other than the approvals by the  Governmental
          Bodies described in Attachment A of the Ownership Agreement, there are
          no approvals or consents, the absence of which would materially impair
          Seller's  ability to consummate the  transactions  described in, or to
          perform its  obligations  under,  this  Agreement  and the  Collateral
          Documents.

               14.2  Representations  and  Warranties  of  Purchaser.  Purchaser
          hereby represents and warrants to Seller as follows:

               14.2.1  Organization  and  Existence.  Purchaser  is a  statutory
          utilities  commission  duly  organized,  validly  existing and in good
          standing  under the laws of the State of  Florida  and has  sufficient
          statutory  power and  authority to execute and deliver this  Agreement
          and the Collateral Documents and to perform its obligations  hereunder
          and  thereunder.  Purchaser has full statutory  power and authority to
          carry  on its  business  as it is  now  being  conducted  and as it is
          contemplated  hereunder  and  under  the  Collateral  Documents  to be
          conducted in the future.

               14.2.2 Due Authorization. The execution, delivery and performance
          of this Agreement and the  Collateral  Documents by Purchaser has been
          duly and effectively authorized by all requisite action on the part of
          Purchaser's   governing  board.  This  Agreement  and  the  Collateral
          Documents  constitute  the legal,  valid and  binding  obligations  of
          Purchaser,  enforceable  against  Purchaser in  accordance  with their
          terms,  except  as  limited  by  applicable  bankruptcy,   insolvency,
          reorganization,  moratorium  or other  laws  affecting  the  rights of
          creditors generally and by general principles of equity.

               14.2.3 Litigation. There is no action, suit, claim, proceeding or
          investigation pending or, to Purchaser's knowledge, threatened against
          Purchaser by or before any Governmental Body having  jurisdiction over
          Purchaser  which,  if  adversely  determined,  would  have a  material
          adverse effect upon Purchaser's  ability to enter into and perform its
          obligations  and  consummate  the  transactions  contemplated  by this
          Agreement  and the  Collateral  Documents  or the  material  rights of
          Seller under this Agreement or the Collateral Documents.  Purchaser is
          not  subject  to  any  material  outstanding  judgment,  order,  writ,
          injunction or decree of any Governmental Body having jurisdiction over
          Purchaser which would  materially and adversely  affect its ability to
          enter into and perform its  obligations  under this  Agreement and the
          Collateral  Documents  or the  material  rights of Seller  under  this
          Agreement or the Collateral Documents.

               14.2.4 No  Violation  or Conflict.  The  execution,  delivery and
          performance   by  Purchaser  of  this  Agreement  and  the  Collateral
          Documents  do not  violate or  conflict  with  Purchaser's  charter or
          bylaws,  any existing Law applicable to Purchaser,  or any note, bond,
          resolution, indenture, agreement or instrument to which Purchaser is a
          party or by which it is bound.

               14.2.5  Approvals.  Other than the approvals by the  Governmental
          Bodies described in Attachment A of the Ownership Agreement, there are
          no approvals or consents, the absence of which would materially impair
          Purchaser's ability to consummate the transactions described in, or to
          perform its  obligations  under,  this  Agreement  and the  Collateral
          Documents.

               14.2.6 No Immunity.  With respect to its contractual  obligations
          hereunder and performance thereof,  Purchaser is not entitled to claim
          immunity on the grounds of sovereignty or similar grounds with respect
          to itself or its revenues or assets from: (a) suit;  (b)  jurisdiction
          of any Florida court;  or (c) relief by way of  injunction,  order for
          specific  performance  or  attachment  of property  that is subject to
          execution  or  levy  under   Florida  Law   (including   the  Eligible
          Collateral).

         14.3  Warranties Regarding Energy, Capacity and Ancillary Services.
Seller warrants that the Energy, Capacity and Ancillary Services provided under
this Agreement (i) shall have been delivered in accordance with applicable Law,
and (ii) meets the requirements set forth in this Agreement. THE FOREGOING IS IN
LIEU OF ALL OTHER WARRANTIES, EXPRESSED OR IMPLIED, INCLUDING THE IMPLIED
WARRANTIES OF MERCHANTABILITY AND FITNESS FOR A PARTICULAR PURPOSE, IN FACT OR
BY LAW WITH RESPECT TO THE ENERGY, CAPACITY AND ANCILLARY SERVICES PROVIDED
HEREUNDER. SELLER HEREBY DISCLAIMS ANY AND ALL OTHER WARRANTIES WHATSOEVER.

                                   SECTION 15
                              PERFORMANCE ASSURANCE

         15.1 In the event that Purchaser experiences a Material Adverse Change,
as defined below, as security for Purchaser's payment obligations under this
Agreement, Purchaser shall deliver to Seller within ten (10) Business Days of
Seller's written request therefor, Eligible Collateral in an amount equal to the
lesser of: (i) [redacted], or (ii) [redacted] of the total of Capacity Payments
for the remainder of the Operating Period.

               15.1.1 As used in this  Section  15.1:  (i) a  "Material  Adverse
          Change" shall occur (A) when  Purchaser's  credit rating on its senior
          securities  falls  below the lower of (x) BBB-  (Standard  & Poors) or
          Baa3   (Moody's)   and  (y)  the  lowest  credit  rating  of  Southern
          Guarantor's  senior  securities  under  either  Moody's or  Standard &
          Poors,  (B)  upon an Event  of  Default  by  Purchaser  under  Section
          12.2.2(i),  (C) upon a  failure  by  Purchaser  to make  any  required
          deposit into any sinking fund under the Bond  Legislation or any other
          bond resolution,  indenture or similar secured instrument entered into
          in  connection  with the  issuance  of  additional  debt (each a "Debt
          Instrument"),  or (D) upon a failure by  Purchaser  to maintain in any
          debt service  reserve  account under the Bond  Legislation or any Debt
          Instrument at least fifty  percent (50%) of the amount  required to be
          maintained in such account; and (ii) "Eligible  Collateral" means cash
          deposited into an operating  account from "Revenues",  as that term is
          defined in the Senior Lien Resolution,  or an unconditional  letter of
          credit from an "A" rated bank,  as  determined  by Standard & Poors or
          Moody's, in a form reasonably acceptable to Seller; provided, however,
          that for purposes of Sections 15.1.1(i)(C) and 15.1.1(i)(D),  Eligible
          Collateral shall constitute an unconditional  letter of credit from an
          "A" rated bank,  as  determined  by Standard & Poors or Moody's,  in a
          form  reasonably  acceptable  to  Seller.  Costs of a letter of credit
          shall be borne by Purchaser.

               15.1.2 If at any time during the term of this  Agreement  neither
          Standard & Poors nor Moody's is in the  business of  providing  credit
          ratings or willing to rate  Purchaser,  then Purchaser and Seller will
          negotiate  in good  faith  to  choose  and  implement  an  alternative
          mechanism for determining if and when a "Material  Adverse Change" has
          occurred.

         15.2 In the event that legislation is enacted in the State of Florida
which contains provisions that will cause an Event of Default by Purchaser at
any time during the term of this Agreement, Seller will have the right, from and
after the date of enactment of such legislation, to provide Purchaser with
written notice requesting Eligible Collateral, as defined above, in an amount
equal to the lesser of: (i) [redacted] of Capacity Payments, or (ii) [redacted]
for the remainder of the Operating Period. Upon receipt of such notice, in
addition to Purchaser's other payment obligations under this Agreement,
Purchaser shall within thirty (30) days provide such Eligible Collateral.

         15.3. To the extent Purchaser delivers Eligible Collateral in the form
of cash to be held in an operating reserve account pursuant to Sections 15.5 or
15.6, Purchaser hereby grants to Seller a present and continuing security
interest in, and lien on (and right of setoff against), and assignment of, such
Eligible Collateral, and any and all proceeds resulting therefrom or from the
liquidation thereof, and Purchaser agrees to take such action as Seller
reasonably requires in order to perfect Seller's first-priority security
interest in, and lien on (and right of setoff against), such Eligible Collateral
and any and all proceeds resulting therefrom or from the liquidation thereof.
This Agreement is intended to, and does, constitute a security agreement between
Seller and Purchaser with regard to any cash which may constitute Eligible
Collateral.

         15.4. Upon or any time after the occurrence and during the continuation
of an Event of Default of Purchaser, Seller may (i) exercise any of the rights
and remedies of a secured party with respect to the Eligible Collateral,
including any such rights and remedies under Law then in effect, such as but not
limited to the Uniform Commercial Code, and (ii) liquidate and/or draw on any
outstanding Eligible Collateral issued for its benefit (free from any claim or
right of any nature whatsoever of Purchaser including any equity or right of
purchase or redemption by Purchaser) with respect to Purchaser's obligations
under this Agreement. In the event that Seller liquidates or draws on any of the
Eligible Collateral, Purchaser shall within ten (10) Business Days of notice
from Seller of such liquidation or draw, deliver additional cash or increase the
amount of the letter of credit, as the case may be, in order to replenish the
amount of the Eligible Collateral to the extent of the liquidation or draw.

         15.5. If the trigger of a Material Adverse Change was occurrence of the
circumstances in Sections 15.1.1(i)(A) or the circumstances described in Section
15.2 occur, then: (i) if the Eligible Collateral is in the form of cash, Seller
will hold the Eligible Collateral in an interest-bearing operating reserve
account, established by Seller, and the agent for which shall act pursuant to
Seller's instructions and will return the balance of such account, including
interest, at such time as the circumstances described in Sections 15.1.1(i)(A)
and 15.2 no longer apply (provided that Purchaser shall be entitled to receive
any funds in such operating reserve account at any time and to the extent that
such funds exceed [redacted] of the total of Capacity Payments for the remainder
of the Operating Period); or (ii) if the Eligible Collateral is in the form of a
letter of credit, such letter of credit shall expire at such time as the
circumstances described in Sections 15.1.1 and 15.2 no longer apply and Seller
shall return such letter of credit to Purchaser (provided that Purchaser shall
be entitled to reduce the amount available under the letter of credit at any
time and to the extent that such amount exceeds [redacted] of the total of
Capacity Payments for the remainder of the Operating Period).

         15.6 If the trigger of a Material Adverse Change was occurrence of the
circumstances described in Section 15.1.1(i)(B), then (i) if the Eligible
Collateral is in the form of cash, Seller will hold the Eligible Collateral in
an interest-bearing operating reserve account, established by Seller, and the
agent for which shall act pursuant to Seller's instructions and will return the
balance of such account, including interest, at such time as Purchaser shall
have (A) cured the Event of Default under Section 12.2.2 that triggered the
Material Adverse Change and (B) thereafter avoided both any further Events of
Default under Section 12.2.2 and a Material Adverse Change as described in
Section 15.1.1(i)(A) or 15.2 for a period of sixty (60) continuous days
(provided that Purchaser shall be entitled to receive any funds in such
operating reserve account at any time and to the extent that such funds exceed
[redacted] of the total of Capacity Payments for the remainder of the Operating
Period); or (ii) if the Eligible Collateral is in the form of a letter of
credit, such letter of credit shall expire (and Seller shall return such letter
of credit) at such time as Purchaser shall have (C) cured the Events of Default
under Section 12.2.2 that triggered the Material Adverse Change and (D)
thereafter avoided both any further Events of Default under Section 12.2.2 and a
Material Adverse Change as described in Section 15.1.1(i)(A) or 15.2 for a
period of sixty (60) continuous days (provided that Purchaser shall be entitled
to reduce the amount available under the letter of credit at any time and to the
extent that such amount exceeds [redacted] of the total of Capacity Payments for
the remainder of the Operating Period).

         15.7 In the event that the Purchaser exercises its right to elect an
Extended Term or any Further Extension of this Agreement pursuant to Sections
2.2 and 2.3, and on any day of such Extended Term or Further Extensions the
circumstances of either Sections 15.1.1 or 15.2 apply, then, Purchaser shall
deliver to Seller within ten (10) Business Days of the date of such occurrence,
Eligible Collateral, as defined above, in an amount equal to [redacted] of
Capacity Payments, and the provisions of Sections 15.3, 15.4, 15.5 and 15.6
shall apply to such Eligible Collateral.

                                   SECTION 16
                              LIABILITY OF PARTIES

         16.1     INDEMNITIES.
                  -----------

               16.1.1  TO  THE  EXTENT   PERMITTED  BY  LAW,   EACH  PARTY  (THE
          "INDEMNIFYING PARTY") SHALL FULLY INDEMNIFY AND DEFEND THE OTHER PARTY
          AND EACH OF THE OTHER PARTY'S  SUBSIDIARIES  AND  AFFILIATES,  AND THE
          PARTNERS,   MEMBERS,   PARTICIPANTS,   PRINCIPALS,    REPRESENTATIVES,
          SHAREHOLDERS,  DIRECTORS, OFFICERS, AGENTS, EMPLOYEES,  SUCCESSORS AND
          ASSIGNS OF EACH OF THEM (THE  "INDEMNIFIED  PARTIES") FROM AND AGAINST
          ANY AND ALL LOSSES, COSTS,  DAMAGES,  INJURIES,  LIABILITIES,  CLAIMS,
          DEMANDS, PENALTIES AND INTEREST, INCLUDING REASONABLE ATTORNEYS' FEES,
          RESULTING  FROM THIRD PARTY CLAIMS  DIRECTLY OR INDIRECTLY  RELATED TO
          THIS  AGREEMENT,  TO THE EXTENT CAUSED OR CONTRIBUTED TO BY THE FAULT,
          INTENTIONAL  ACT,  NEGLIGENCE OR STRICT  LIABILITY OF THE INDEMNIFYING
          PARTY OR ITS SUBSIDIARIES,  AFFILIATES,  CONTRACTORS OR SUBCONTRACTORS
          OR ANY OF THE OFFICERS, PARTNERS, MEMBERS, PARTICIPANTS, SHAREHOLDERS,
          PRINCIPALS, DIRECTORS, EMPLOYEES, AGENTS, REPRESENTATIVES,  SUCCESSORS
          OR  ASSIGNS OF ANY OF THEM OR BY BREACH BY THE  INDEMNIFYING  PARTY OF
          THIS AGREEMENT; PROVIDED, HOWEVER, THAT ANY LIABILITY TO THIRD PARTIES
          INCURRED BY SELLER IN PERFORMANCE OF ITS AGENCY FUNCTIONS  PURSUANT TO
          THE  OWNERSHIP   AGREEMENT  OR  THE  OPERATING   AGREEMENT   SHALL  BE
          APPORTIONED IN ACCORDANCE WITH ARTICLE 9 OF THE OWNERSHIP AGREEMENT OR
          ARTICLE 7 OF THE OPERATING AGREEMENT.

               16.1.2 IF ANY INDEMNIFIED  PARTY INTENDS TO SEEK  INDEMNIFICATION
          UNDER THIS SECTION 16.1 FROM AN INDEMNIFYING PARTY WITH RESPECT TO ANY
          ACTION OR CLAIM,  THE  INDEMNIFIED  PARTY SHALL GIVE THE  INDEMNIFYING
          PARTY WRITTEN  NOTICE OF SUCH CLAIM OR ACTION  PROMPTLY  FOLLOWING THE
          RECEIPT OF ACTUAL KNOWLEDGE OR INFORMATION BY THE INDEMNIFIED PARTY OF
          A POSSIBLE CLAIM OR OF THE  COMMENCEMENT  OF A CLAIM OR ACTION,  WHICH
          WRITTEN NOTICE SHALL IN NO EVENT BE DELIVERED  LATER THAN THE FIRST TO
          OCCUR OF (A) FIFTEEN (15) DAYS PRIOR TO THE LAST DAY FOR RESPONDING TO
          SUCH  CLAIM OR ACTION OR (B) THE  EXPIRATION  OF THE FIRST HALF OF THE
          PERIOD   ALLOWED  FOR   RESPONDING  TO  SUCH  CLAIM  OR  ACTION.   THE
          INDEMNIFYING  PARTY SHALL HAVE NO LIABILITY UNDER THIS SECTION FOR ANY
          CLAIM OR ACTION FOR WHICH SUCH  NOTICE IS NOT  PROVIDED  TO THE EXTENT
          THAT THE FAILURE TO GIVE SUCH WRITTEN NOTICE MATERIALLY PREJUDICES THE
          INDEMNIFYING  PARTY. UPON ACKNOWLEDGMENT OF ITS OBLIGATIONS UNDER THIS
          SECTION 16.1,  THE  INDEMNIFYING  PARTY SHALL HAVE THE RIGHT TO ASSUME
          THE DEFENSE OF ANY CLAIM OR ACTION, AT ITS SOLE COST AND EXPENSE, WITH
          COUNSEL   DESIGNATED  BY  THE   INDEMNIFYING   PARTY  AND   REASONABLY
          SATISFACTORY TO THE INDEMNIFIED PARTY; PROVIDED,  HOWEVER, THAT IF THE
          DEFENDANTS IN ANY SUCH ACTION INCLUDE BOTH THE  INDEMNIFIED  PARTY AND
          THE  INDEMNIFYING   PARTY,  AND  THE  INDEMNIFIED   PARTY  SHALL  HAVE
          REASONABLY  CONCLUDED THAT THERE MAY BE LEGAL DEFENSES AVAILABLE TO IT
          WHICH ARE  DIFFERENT  FROM OR  ADDITIONAL  TO THOSE  AVAILABLE  TO THE
          INDEMNIFYING  PARTY,  THE  INDEMNIFIED  PARTY  SHALL HAVE THE RIGHT TO
          SELECT SEPARATE  COUNSEL,  AT THE  INDEMNIFYING  PARTY'S  EXPENSE,  TO
          ASSERT SUCH LEGAL DEFENSES AND TO OTHERWISE PARTICIPATE IN THE DEFENSE
          OF SUCH ACTION ON BEHALF OF SUCH INDEMNIFIED PARTY.

               16.1.3  EXCEPT  TO  THE  EXTENT  EXPRESSLY  PROVIDED  HEREIN,  NO
          INDEMNIFIED  PARTY SHALL  SETTLE ANY CLAIM OR ACTION  WITH  RESPECT TO
          WHICH IT HAS  SOUGHT OR INTENDS TO SEEK  INDEMNIFICATION  PURSUANT  TO
          THIS AGREEMENT  WITHOUT THE PRIOR WRITTEN CONSENT OF THE  INDEMNIFYING
          PARTY.  SHOULD ANY  INDEMNIFIED  PARTY BE ENTITLED TO  INDEMNIFICATION
          UNDER  THIS  SECTION  16.1 AS A RESULT OF A CLAIM OR ACTION BY A THIRD
          PARTY, AND SHOULD THE INDEMNIFYING PARTY FAIL TO ASSUME THE DEFENSE OF
          SUCH CLAIM OR ACTION, THE INDEMNIFIED PARTY MAY, AT THE EXPENSE OF THE
          INDEMNIFYING PARTY,  CONTEST (OR, WITH OR WITHOUT THE PRIOR CONSENT OF
          THE INDEMNIFYING  PARTY,  SETTLE) SUCH CLAIM OR ACTION.  EXCEPT TO THE
          EXTENT EXPRESSLY  PROVIDED HEREIN, NO INDEMNIFYING  PARTY SHALL SETTLE
          ANY CLAIM OR ACTION WITH  RESPECT TO WHICH IT MAY BE LIABLE TO PROVIDE
          INDEMNIFICATION  PURSUANT TO THIS AGREEMENT  WITHOUT THE PRIOR WRITTEN
          CONSENT  OF THE  INDEMNIFIED  PARTY;  PROVIDED,  HOWEVER,  THAT IF THE
          INDEMNIFYING  PARTY HAS REACHED A BONA FIDE SETTLEMENT  AGREEMENT WITH
          THE PLAINTIFF(S) IN ANY SUCH ACTION AND THE INDEMNIFIED PARTY DOES NOT
          CONSENT TO SUCH SETTLEMENT AGREEMENT, THEN THE AMOUNT SPECIFIED IN THE
          SETTLEMENT AGREEMENT, PLUS THE INDEMNIFIED PARTY'S REASONABLE ATTORNEY
          FEES INCURRED PRIOR TO THE DATE OF SUCH  SETTLEMENT  AGREEMENT,  SHALL
          ACT AS AN ABSOLUTE MAXIMUM LIMIT ON THE INDEMNIFICATION  OBLIGATION OF
          THE INDEMNIFYING  PARTY WITH RESPECT TO THE CLAIM, OR PORTION THEREOF,
          THAT IS THE SUBJECT OF SUCH  SETTLEMENT  AGREEMENT  TO THE EXTENT SUCH
          SETTLEMENT AGREEMENT FULLY RELEASES THE INDEMNIFIED PARTY AND DOES NOT
          REQUIRE  ANY  PAYMENT  FROM,  OR  IMPOSE  ANY   RESTRICTION   ON,  THE
          INDEMNIFIED PARTY.

               16.2 LIMITATION ON DAMAGES. NEITHER PARTY NOR ITS SUBSIDIARIES OR
          AFFILIATES  NOR  THE  OFFICERS,  AGENTS,  EMPLOYEES,  REPRESENTATIVES,
          PARTICIPANTS, PARTNERS, MEMBERS, SHAREHOLDERS,  PRINCIPALS, DIRECTORS,
          SUCCESSORS  OR  ASSIGNS OF ANY OF THEM SHALL IN ANY EVENT BE LIABLE TO
          THE OTHER PARTY OR ITS  SUBSIDIARIES  OR  AFFILIATES  OR THE OFFICERS,
          AGENTS, EMPLOYEES,  REPRESENTATIVES,  PARTICIPANTS, PARTNERS, MEMBERS,
          SHAREHOLDERS,  PRINCIPALS  OR  DIRECTORS OF ANY OF THEM FOR CLAIMS FOR
          INCIDENTAL, PUNITIVE, CONSEQUENTIAL,  EXEMPLARY OR INDIRECT DAMAGES OF
          ANY NATURE,  ARISING AT ANY TIME, FROM ANY CAUSE  WHATSOEVER,  WHETHER
          ARISING IN TORT, CONTRACT, WARRANTY, STRICT LIABILITY, BY OPERATION OF
          LAW OR OTHERWISE,  CONNECTED  WITH OR RESULTING  FROM  PERFORMANCE  OR
          NON-PERFORMANCE  UNDER THIS AGREEMENT;  PROVIDED,  HOWEVER,  THAT THIS
          SECTION 16.2 IS NOT INTENDED,  NOR SHALL IT BE CONSTRUED,  TO LIMIT OR
          ELIMINATE  A  PARTY'S   OBLIGATION  TO  PAY   LIQUIDATED   DAMAGES  OR
          TERMINATION PAYMENTS OR MAKE ANY OTHER PAYMENTS EXPRESSLY CONTEMPLATED
          HEREIN, OR IN ANY COLLATERAL  DOCUMENT,  EVEN IF IT MAY BE POSSIBLE TO
          CHARACTERIZE SUCH LIQUIDATED DAMAGES OR TERMINATION  PAYMENTS OR OTHER
          PAYMENTS AS INCIDENTAL, PUNITIVE, CONSEQUENTIAL OR INDIRECT DAMAGES.

               16.3  Seller  Affiliate  Guarantee.  Seller  shall  at all  times
          following the Effective Date of this  Agreement  cause an Affiliate of
          Seller to maintain in place a payment  guarantee in the form  attached
          to  this  Agreement  as  Appendix  E.  For  purposes  of the  previous
          sentence,  an "Affiliate"  of Seller shall be any entity  controlling,
          under common control with or controlled by Seller,  which has a credit
          rating on its senior  securities  at or above BBB-  (Standard & Poors)
          and Baa3  (Moody's).  If at any time during the term of this Agreement
          neither  Standard & Poors nor Moody's is in the  business of providing
          credit ratings or willing to rate Seller's affiliates,  then Purchaser
          and Seller will  negotiate  in good faith to choose and  implement  an
          alternative   mechanism  for   determining   if  and  when  an  entity
          controlling,  under common  control with or  controlled  by Seller has
          sufficient credit-worthiness to qualify as an "Affiliate."

               16.4 No  Penalty.  The Parties  agree that it would be  extremely
          difficult to  precisely  determine  the amount of actual  damages that
          would be suffered  by  Purchaser  due to Seller's  failure to meet the
          Availability  Guarantee or achieve the schedule provided under Section
          5.1.1, that the Availability  Damages set forth in Section 4.3 and the
          liquidated  damages set forth in Section 5.1.2 are fair and reasonable
          determinations of the amount of actual damages which would be suffered
          by Purchaser or Seller, as the case may be, by reason of such failure,
          and that the Availability  Damages and other liquidated damages do not
          constitute a penalty.  Similarly,  the Parties  agree that it would be
          extremely  difficult  to  precisely  determine  the  amount  of actual
          damages  that would be suffered by either Party in case of an Event of
          Default and a  termination  of this  Agreement  by the  Non-defaulting
          Party,  that the Termination  Payment set forth in Section 12.5.1 is a
          fair and  reasonable  determination  of the  amount of actual  damages
          which would be suffered by the Non-defaulting Party in such event, and
          that the Termination Payment does not constitute a penalty.

                                   SECTION 17
                                   ASSIGNMENT

          17.1  Agreement  Binding.  This  Agreement  shall be binding upon, and
     shall  inure to the  benefit  of,  the  Parties  and their  successors  and
     permitted assigns.

         17.2 Permitted Assignment. This Agreement shall not be assignable by
Seller without the prior written consent of Purchaser, except that this
Agreement (a) may be assigned by Seller without the requirement for such consent
(but with notice to Purchaser) (i) to any Lender from time to time providing
financing to Seller or its affiliate with respect to all or any portion of the
Project or (ii) to any Lender or its designee in connection with a foreclosure
or other exercise of remedies, and (b) unless otherwise waived by Purchaser,
shall be assigned in whole or in part by Seller without the requirement for such
consent (but with notice to Purchaser) in the event of a sale by Seller of all
or a portion of Seller's interest in the Facility, with the purchaser of
Seller's interest in the Facility assuming Seller's obligations under this
Agreement in the same percentage as the portion of Seller's interest being
transferred bears to Seller's entire interest in the Facility. This Agreement
shall not be assignable by Purchaser without the prior written consent of
Seller, provided, however, that Purchaser may assign this Agreement to another
Customer without the requirement for such consent (but with notice to Seller) so
long as such Customer has not experienced a Material Adverse Change under its
PPA. Any such transferee, assignee or purchaser (other than a Lender through
assignment in connection with a lease or other financing transaction permitted
under Section 6.2.8 of the Ownership Agreement) shall confirm its willingness to
accept all of the assigning Party's obligations under this Agreement by writing
reasonably acceptable to the non-assigning Party. Any such assignee, transferee
or purchaser (other than a Lender through assignment in connection with a lease
or other financing transaction permitted under Section 6.2.8 of the Ownership
Agreement) must be sufficiently creditworthy and otherwise capable of performing
all of the assigning Party's obligations under this Agreement. No assignment or
transfer of this Agreement by a Party shall be permitted during any period in
which an Event of Default of such Party shall have occurred and be continuing
and not cured, unless the other Party shall agree. No assignment of this
Agreement shall relieve the assigning Party of any of its obligations under this
Agreement, except that the assignor shall be released from its obligations under
this Agreement at such time as all future obligations of the assignor hereunder
shall have been assumed by the assignee in a written agreement delivered to the
other Party. Any assignment that does not comply with the provisions of this
Section 17 shall be null and void.

                                   SECTION 18
                               DISPUTE RESOLUTION

         18.1 Good-Faith Negotiations. The Parties shall first negotiate in good
faith to attempt to resolve any dispute, controversy or claim arising out of,
under, or relating to this Agreement (a "Dispute"), unless otherwise mutually
agreed to by the Parties. In the event that the Parties are unsuccessful in
resolving a Dispute through such negotiations, either Party may proceed
immediately to litigation concerning the Dispute.

          18.1.1 The process of  "good-faith  negotiations" requires  that each
     Party set out in writing to the other its reason(s) for adopting a specific
     conclusion  or for selecting a particular  course of action, together with
     the sequence of  subordinate  facts leading to the  conclusion or course of
     action.  The  Parties  shall  attempt  to  agree  on a  mutually  agreeable
     resolution  of the Dispute.  A Party shall not be required as par of these
     negotiations   to  provide  any   information   which  is  confidential or
     proprietary  in nature  unless it is satisfied in its  discretion  that the
     other Party will maintain the  confidentiality  of and will not misuse such
     information  or  any  information   subject  to  attorney-client  or other
     privilege  under  applicable  Law  regarding  discovery  and production of
     documents.

          18.1.2 The negotiation process shall include at least two (2) meetings
     to discuss any Dispute. Unless otherwise mutually agreed, the first meeting
     shall take place within ten days after  either  Party has  received  notice
     from the other of the desire to commence formal negotiations concerning the
     Dispute.  Unless otherwise  mutually agreed,  the second meeting shall take
     place no more than ten days later. In the event a Party refuses to attend a
     negotiation  meeting,  either Party may proceed  immediately to litigation
     concerning the Dispute.

         18.2 Confidentiality and Non-Admissibility of Statements Made in, and
Evidence Specifically Prepared for, Good Faith Negotiations. Each Party hereby
agrees that all statements made in the course of good faith negotiations, as
contemplated in Section 18.1, shall be confidential and shall not be disclosed
to or shared with any third parties (other than any person whose presence is
necessary to facilitate the negotiation process). Each Party agrees and
acknowledges that no statements made in or evidence specifically prepared for
good faith negotiations under Section 18.1 shall be admissible for any purpose
in any subsequent litigation.

                                   SECTION 19
                                    AMENDMENT

         This Agreement cannot be amended, modified or supplemented except by
written agreement making specific reference hereto executed by both Parties.

                                   SECTION 20
                                     NOTICES

         Other than telephonic notices required or permitted under Section 6.1
or Appendix B, any notice required or permitted to be given hereunder shall be
in writing and shall be: (i) personally delivered; (ii) transmitted by postage
prepaid registered mail; (iii) transmitted by a recognized overnight courier
service; or (iv) transmitted by facsimile to the receiving Party as follows, as
elected by the Party giving such notice:

         20.1     In the case of Purchaser:
                  ------------------------

                  Orlando Utilities Commission
                  500 South Orange Avenue
                  Orlando, Florida 32801
                  Attention: Vice-President of Power Resources
                  Telephone: 407-244-8372
                  Facsimile: 407-275-4120

                  With a copy to:
                  --------------

                  Orlando Utilities Commission
                  500 South Orange Avenue
                  Orlando, Florida 32801
                  Attention: Legal Department
                  Telephone: 407-423-9100
                  Facsimile: 407-423-9198

         20.2     In the case of Seller:
                  ---------------------

                  Southern Company Services, Inc.
                  270 Peachtree Street, Bin 935
                  Atlanta, Georgia 30303
                  Attention: Director of Contract Administration
                  Telephone: 404-506-5100
                  Facsimile: 404-506-0304

                  With a copy to:
                  --------------

                  Troutman Sanders LLP
                  Bank of America Plaza
                  600 Peachtree Street N.E.
                  Atlanta, Georgia 30308
                  Attention: Robert H. Forry, Esq.
                  Telephone: 404-885-3142
                  Facsimile: 404-962-6559

All notices and other communications shall be deemed to have been duly given on
(i) the date of receipt if delivered personally, (ii) five (5) days after the
date of posting if transmitted by mail, (iii) the Business Day following
delivery to the courier if transmitted by overnight delivery service, or (iv)
the date of transmission with confirmation if transmitted by facsimile,
whichever shall first occur. Any Party may change its address for purposes
hereof by notice to the other Party.

                                   SECTION 21
                                 APPLICABLE LAW

         This Agreement shall be governed by, and construed in accordance with,
the laws of the State of Florida, exclusive of any conflict of laws provisions
thereof that would apply the laws of another jurisdiction. The Parties hereby
submit to the jurisdiction of, and agree that venue for actions hereunder shall
be, the U.S. District Court for the Middle District of Florida, if the U.S.
District Court has jurisdiction, or, if the U.S. District Court does not have
jurisdiction, the Circuit Court of the State of Florida sitting in Orange
County, Florida, and the Parties hereby waive any objection to venue in such
courts and any objection to any action or proceeding on the basis of forum non
conveniens.

                                   SECTION 22
                                  SEVERABILITY

         The invalidity or unenforceability of any provision or portion of this
Agreement will not affect the validity of the remainder of this Agreement. If
any provision of this Agreement is determined to be invalid or unenforceable,
the Parties will negotiate in good faith to agree upon substitute provisions to
carry out the purpose and intent of the invalid or unenforceable provision. If
the economic or legal substance of the transactions contemplated hereby is
affected in any manner adverse to any Party as a result thereof, the Parties
shall negotiate in good faith in an effort to agree upon a suitable and
equitable substitute provision to effect the original intent of the Parties.

                                   SECTION 23
                                ENTIRE AGREEMENT

         This Agreement and the Collateral Documents contain the complete
agreement of the Parties hereto with respect to the matters contained herein and
supersede all other agreements, understandings and negotiations, whether written
or oral, with respect to the matters contained herein.

                                   SECTION 24
                          NO THIRD PARTY BENEFICIARIES

         This Agreement is intended to be solely for the benefit of Purchaser
and Seller and their respective successors and permitted assigns and is not
intended to and shall not confer any rights or benefits on any Person not a
signatory hereto.

                                   SECTION 25
                                  COUNTERPARTS

         This Agreement may be executed in one or more counterparts, each of
which shall constitute an original but all of which, when taken together, shall
constitute only one legal instrument.

                                   SECTION 26
                         INFORMATION AND CONFIDENTIALITY

         Where a Party makes any calculation of costs or damages under this
Agreement, such Party shall provide, upon the reasonable request of the other
Party, documentation supporting such calculation. Neither Party shall disclose
or otherwise make available to any other party any information of a technical,
commercial or business nature regarding the Project or this Agreement that has
been marked or identified as confidential or proprietary ("Confidential
Information") without the prior written consent of the other Party, except that
(a) Seller or its affiliate may provide Confidential Information to its or any
such affiliate's prospective Lenders, underwriters, investors, affiliates,
advisors, employees, officers and directors to the extent reasonably required in
connection with the administration of this Agreement, the issuance of debt or
equity or other financing activities of Seller or its affiliate, or the
performance of any duties relating to this Agreement; (b) Purchaser may provide
Confidential Information to its advisors, employees, officers, directors and
Lenders to the extent reasonably required in connection with the administration
of this Agreement or the performance of any such Person's duties relating to
this Agreement; (c) any Party may disclose any such Confidential Information in
any litigation or proceeding to enforce or recover damages under this Agreement;
(d) any Party (or its affiliate) may disclose any such Confidential Information
as may be required by any applicable Law, regulation or governmental order; and
(e) any Party (or its affiliate) may disclose such Confidential Information to
any person or entity succeeding to all or substantially all the assets of such
Party (or its affiliate) or all or a substantial portion of its interest in the
Facility; provided, that in the case of (e), any such successor shall agree to
be bound by the provisions of this Section 26. Confidential Information shall
not include information that: (i) the receiving Party can demonstrate was known
to it prior to its disclosure by the other Party; (ii) is, or later becomes,
public knowledge without breach of this Agreement by the receiving Party; (iii)
was received by the receiving Party from a third party without obligation of
confidentiality; or (iv) is developed by the receiving Party independently from
Confidential Information received from the other Party, as evidenced by
appropriate documentation. In the event that disclosure is required by a valid
order of a court or Governmental Body, the Party subject to such requirement may
disclose Confidential Information to the extent so required, but shall promptly
notify the other Party and shall cooperate with the other Party's efforts to
obtain protective orders or similar restraints with respect to such disclosure.
The provisions of this Section 26 shall continue in effect until three years
after the end of the Operating Period.

         The Parties understand that under the Florida Public Records Law
(Section 119.10, Florida Statutes), any Party or all of them may be subject to
statutory fines and penalties, including but not limited to a requesting Party's
costs and attorney's fees for failure to make public records available for
public inspection upon request (Chapter 119, Florida Statutes). In addition,
each Party may be subject to its own costs and expenses of litigation. With this
understanding in mind, the Parties agree that in the event Purchaser in an
attempt to comply with this Agreement, refuses to honor a public records request
under Chapter 119, Florida Statutes, for examination or inspection of a
confidential document of Seller or any affiliate of Seller and is forced to
defend its actions in a court of competent jurisdiction, Seller shall indemnify,
defend, and hold Purchaser harmless from and against any fines, penalties,
costs, attorney's fees and expenses, including, but not by way of limitation,
attorney's fees, expert fees, court costs and other costs arising from or
related to defending any lawsuit bought pursuant to Chapter 119, Florida
Statutes; provided, however, Seller's consent with such refusal shall be
obtained before Seller can be liable under this Section 26. In addition, the
Parties shall cooperate to provide witnesses to support the Parties'
declarations and certification that the Confidential Information is a valid
trade secret under the above cited Florida law and meets all definitional
requirements therein or is exempt from disclosure under other applicable Florida
law.

                                   SECTION 27
                                PUBLIC STATEMENTS

         Seller and Purchaser shall consult with each other and neither of them
shall issue a press release or make a statement intended for release to the
general public with respect to the transactions contemplated hereby without the
consent of the other Party, which consent shall not be unreasonably withheld,
unless the Party desiring to make such statement or press release is advised by
legal counsel that a statement or press release is required by applicable Law
(including information provided pursuant to a request for public information
under the Florida Public Records Law, Section 119.10, Florida Statutes);
provided, however, that in this event the Party making the public statement or
press release shall notify the other Party in advance of such statement or press
release and allow the other Party reasonable time to comment on such statement
or press release. Notwithstanding the immediately preceding sentence, the
Parties acknowledge that certain meetings of the Orlando Utilities Commission
and the City of Orlando are open to the public, and nothing in this Agreement
shall be deemed to require that the proceedings of such meetings not be made
public or to restrict the reporting by the media of such proceedings.

                                   SECTION 28
                                    INSURANCE

         Seller and Purchaser, and all contractors and subcontractors performing
any services in connection with the operation or maintenance of the Facility,
shall obtain and maintain in force comprehensive general liability insurance,
and property insurance for injury to persons and property, automobile liability
insurance and workman's compensation insurance, all in amounts and under terms
as required by the Operating Agreement.

                                   SECTION 29
                                      TAXES

         Purchaser shall reimburse Seller for, or pay to Seller, all sales, use,
personal property and other taxes of every kind paid or collected by Seller, if
any, that are not currently levied and are hereafter levied on the purchase,
sale or use of fuel consumed by the Facility to provide Energy or Ancillary
Services in accordance with this Agreement or the purchase, sale or use of
Capacity, Energy or Ancillary Services under this Agreement, but excluding any
taxes levied on Seller's net income. Purchaser shall pay directly for all such
sales, use, personal property and other taxes which it is legally obligated and
empowered to pay. In the event Seller, on behalf of Purchaser, pays any taxes
that are the responsibility of Purchaser to reimburse or pay, under the first
two sentences of this Section 29, the amount so paid by Seller shall be added to
a monthly invoice submitted by Seller to Purchaser under Section 9, and
Purchaser shall pay such amount in accordance with Section 9. Upon the
reasonable request of Purchaser, Seller agrees to (i) provide documents related
to taxes or assessments to be reimbursed or paid by Purchaser under this
Agreement and (ii) cooperate with Purchaser at Purchaser's expense should
Purchaser seek to obtain from the entity to which taxes were paid a refund of
any taxes paid by Seller and/or reimbursed or paid by Purchaser.

<PAGE>

                                   APPENDIX A

                                TECHNICAL LIMITS

                              Unit Operating Modes

1.       Definition of Operating Modes.
         -----------------------------

         The Facility will have several different operating modes.

o             Mode 1: Normal Operation--both gas turbines (CTs) operating with
              no supplemental firing of the Heat Recovery Steam Generator (HRSG)
              and no gas turbine power augmentation.

o             Mode 2: Supplemental Firing Operation--both gas turbines operating
              at full load with supplemental firing of the HRSG.

o             Mode 3: Power Augmentation Operation--both gas turbines operating
              at full load with supplemental firing of the HRSG's (Mode 2
              Supplemental Firing Operation) to produce both steam for full
              steam turbine-generator output with the maximum allowed continuous
              throttle flow at the maximum allowed continuous throttle pressure
              and steam for full gas turbine power augmentation (steam
              injection.)

o Mode 4: Part-load Operation--one or both gas turbines operating at less than
full load.

2.       Natural Gas Requirements.
         ------------------------

         The Facility will require "pipeline quality gas" meeting the
         requirements of GE fuel specification "GEI 41040E - Process
         Specification Fuel Gases for Combustion in Heavy Duty Gas Turbines".

         Natural gas is to be delivered to the Facility by pipeline and the
         pipeline and gas must meet the following equipment characteristics and
         requirements:

o        Nominal Maximum N.G. Flow (HHV) per Block (2x1)      [redacted]

o        Nominal N.G. Higher Heating Value                    [redacted]

o        Minimum Fuel Supply Temperature (after PRV)          [redacted]

o        Fuel Pressure at Gas Control Valve**                 [redacted]

                                                             [redacted]

                  * Based on Winter Peaking (19(degree)F) Power during Full
Pressure Operation.

                  ** Reference GE Pub. GEI 41040E.

3.       Fuel Oil Requirements.
         ---------------------

         The Facility will require fuel oil that is in compliance with ASTM
         Standard Specification D-2880 (as revised) and "GE Gas Turbine Liquid
         Fuel Specifications" (document number GEI 41047H). This No. 2 GT Grade
         Gas Turbine Fuel Oil must be in compliance with the specifications and
         procedures for No. 2 Fuel Oil as defined in ASTM D396.

         Note that environmental permitting may create conditions for sulfur,
         fuel bound nitrogen and other specifications which could affect or add
         minimum specifications, such as, but not limited to, those identified
         in the following table:

                                                                 ASTM TEST
                                          SPECIFICATIONS         METHOD
                                                                 ------

         Sulfur, % Wt., Max.               0.05                  D - 1266

         Fuel Bound Nitrogen               0.050% Max.

4.       Dispatch and Operational Requirements.
         -------------------------------------

     The Facility will be capable of operating with fuel oil. The Facility may
     fire oil in the gas turbines only and not in the HRSG duct burners. During
     these periods, the Facility shall operate in Mode 1 (Normal Operation)
     only.

     The Facility will require shutdown for a minimum of one hour prior to
     switching from natural gas to oil firing. The fuel oil forwarding system
     will not be operated during normal gas firing, but operation of the fuel
     forwarding system will be initiated upon proper notice of a requirement for
     fuel switching. The Facility will be capable of switching from oil to
     natural gas without shutdown; however, the Facility may be required to
     decrease to a minimum load and stabilize prior to ramping to full load.

     The Facility will be capable of being controlled via Automatic Generation
     Control (AGC) in Mode 1 (Normal Operation). The AGC load range and ramp
     rate will be set by the Facility's operator based on the actual capability
     of the CTs as determined through testing. With the duct burners firing
     (Mode 2 - Supplemental Firing Operation), the load range and ramp rate will
     be set and manually controlled by the Facility's operator based on the
     capabilities of the duct burners. No load following capability is available
     in Mode 3 (Power Augmentation Operation).

     The Facility will be allowed to operate in Mode 3 (Power Augmentation
     Operation) only at ambient temperatures of [redacted].

  The Facility will require [redacted] of de-mineralized water for Mode 1
(Normal Operation).

     The expected maximum allowable rate of load increase for the Facility will
     be [redacted]. Actual maximum load increase rate will be determined by
     actual testing and in light of final permit restrictions and emissions
     tests.

     The Facility will be expected to be capable of operating minimum load with
     one CT [redacted]. Actual minimum load will be determined in light of final
     NOx emissions and permit restrictions and testing.

  Required startup times for the Facility shall be as follows:

     Mode 1 (Normal Operation):  refer to Attachment 1 - Time to Dispatch Curve.
Note: Actual Curve to be determined by testing.

     Mode  2  (Supplemental   Firing  Operation):   [redacted]  Mode  1  (Normal
Operation).

     Mode 3 (Power Augmentation Operation): [redacted] Mode 1 (Normal Operation)
or [redacted] Mode 2 (Supplemental Firing Operation).

     The Facility will be allowed to operate in Mode 3 (Power Augmentation
     Operation) a [redacted] /year based on the LTSA contract with GE.

     The Facility will not be allowed to operate in a traditional CT only mode
     (no simple cycle operation, i.e., no bypass stack). However, the CTs will
     be capable of operating independently of the steam turbine utilizing the
     steam bypass systems for a limited time. Most major plant equipment (such
     as HRSG BFP's, condenser, cooling tower and circulating water pumps) will
     be required during operation in this mode. The HRSG duct burners will not
     be available in this mode. The maximum generation capability of the
     Facility operating in this mode will be [redacted] CT load.

     The  Facility's CT  evaporative  coolers  should not be operated at ambient
temperatures  less than  [redacted]  to prevent  freezing  at the CT  compressor
inlet.

<PAGE>

                                   [redacted]

<PAGE>

                                   APPENDIX B

                               REQUESTS FOR ENERGY

         1.1 Schedules for Requested Quantities of Energy. Purchaser and each
other Customer shall provide Seller with a single Request for Energy in order to
schedule requested quantities of each category of unit output as follows:

                    1.1.1 Day Ahead Daily Schedule.  Customers shall communicate
               the day ahead  Request  for  Energy  for each day to Seller at or
               before  [redacted]  of  the  immediately   preceding  day  before
               delivery is to be made,  or such other  earlier  time that may be
               required by an RTO.

                    1.1.1.1  When AGC mode is  available,  during  each hour the
               unit is scheduled to be in AGC mode, the Request for Energy shall
               specify  the  maximum  amount of Energy  desired  for each of the
               twenty-four (24) hours. During each hour the unit is in AGC mode,
               the  Customers  shall not be  permitted to reduce the Request for
               Energy to an amount less than  [redacted]  of the maximum  Energy
               scheduled  during  that hour in the  Request  for Energy from the
               Customers' aggregate Equity Capacity and the Customers' aggregate
               capacity   available   under   the  Power   Purchase   Agreements
               (Customers' "PPA Capacity"). If in any hour, should the Customers
               reduce the Request for Energy amount by more than [redacted], the
               Customers  shall pay Seller  [redacted]  hour for the  difference
               between the amount of the Delivered  Energy and [redacted]  below
               the Request for Energy amount.

                    1.1.1.2 During each hour the Facility is not scheduled to be
               in AGC  mode or the AGC  mode is  unavailable,  the  Request  for
               Energy  shall  specify the amount of Energy  from the  Customers'
               aggregate PPA Capacity and aggregate  Equity Capacity for each of
               the  twenty-four  (24)  hours.   Requests  for  Energy  shall  be
               submitted in  [redacted] in a total amount that falls between the
               Facility's  minimum  capability  and its  maximum  capability  as
               described in the Technical Limits.

               1.2. Hourly Changes to the Daily Schedule.  The Customers jointly
          shall  be  entitled  to  make  changes  to a  Request  for  Energy  by
          communicating such changes to Seller no later than [redacted] prior to
          the  beginning  of the  hour  in  which  such  changes  are to  become
          effective. The Customers shall be responsible for any costs associated
          with OASIS notifications and NERC tagging requirements.

               1.3.  Capacity  Emergency.   During  any  periods  in  which  the
          Customers  experience a Capacity  Emergency,  the  Customers  shall be
          entitled  to increase  the  Request for Energy on shorter  notice than
          that  provided in  paragraph  1.2 above by an amount not to exceed the
          Customers'  unavailable  resources that were the cause of the Capacity
          Emergency  and  Seller  shall  endeavor  to  comply  with the  request
          consistent  with  the  Technical  Limits,  Prudent  Utility  Practice,
          applicable Law and Permit requirements.

               1.4.  Minimum  Start-up  Time. If the Customers  have scheduled a
          zero amount of Capacity in any hour and the  Facility is not  on-line,
          the  Customers  shall  provide  notice  consistent  with the Technical
          Limits prior to scheduling any Request for Energy.

               1.5. Load Following Service. The Customers shall have the ability
          to  control  the  output  of the  Facility  using  the  AGC  mode,  if
          available,  only to the extent  that the  Facility  has the ability to
          operate in the AGC mode consistent with the Technical Limits,  Prudent
          Utility Practice, and applicable Law and Permit requirements.

               1.6  Electronic  Scheduling.  The Customers  shall use electronic
          scheduling for Requests for Energy under this Agreement, if and to the
          extent that Seller's electronic  scheduling capability is operational.
          To  the  extent  it is  not,  the  Parties  will  use  other  mutually
          agreed-upon communication procedures (such as fax).

         2.1      Shortfall Conditions; Oversupply Conditions.
                  -------------------------------------------

          2.1.1 If the Facility is in load following service and OUC, acting for
     itself  and on behalf of the other  Customers,  determines  that the actual
     output of the Facility is not within  [redacted] of the Request for Energy,
     OUC shall communicate to Seller the amount of error.  Seller shall endeavor
     to adjust the actual  output of the Facility to be equal to the Request for
     Energy  within  [redacted]  of receipt of the  notification.  If the actual
     output of the  Facility  does not  equal  the  Request  for  Energy  within
     [redacted]  of  the  notification,  the  Customers  shall  be  entitled  to
     reimbursement of their costs from Seller as follows:

          2.1.1.1  If the actual  output of the  Facility  is  greater  than the
     Request  for Energy  (an  "Oversupply  Condition"),  the  decremental  cost
     associated with over-generation  shall be documented by the Customers until
     the actual  output of the  Facility  equals the Request  for  Energy.  OUC,
     acting for itself and on behalf of the other  Customers,  shall  coordinate
     with  Seller  during the  period  that the  actual  output of the  Facility
     exceeds the Request for Energy.  The  Customers  shall advise Seller of the
     total  decremental  costs  associated  with each  instance of an Oversupply
     Condition.  Seller shall compensate OUC, on its own behalf and as agent for
     KUA and FMPA, for any such Oversupply Condition.

          2.1.1.2 If the actual  output of the unit is less than the Request for
     Energy (an  "Undersupply  Condition"),  the  provisions of Section 4.3 will
     apply if applicable.

          2.1.2 If the Facility is not in load following service and OUC, acting
     for itself and on behalf of the other Customers, determines that the actual
     output of the unit is not within [redacted] of the schedule included in the
     Request for Energy (plus any other  scheduled  output  pursuant to Seller's
     right to schedule Energy pursuant to Section 4.5 of this  Agreement),  then
     OUC shall  communicate  to Seller  the amount of the  error.  Seller  shall
     endeavor  to adjust the actual  output of the  Facility  to be equal to the
     Request for Energy (plus any other  scheduled  output  pursuant to Seller's
     right to schedule Energy) within [redacted] of receipt of the notification.
     If the actual output of the Facility  does not equal the schedule  included
     in the  Request for Energy  (plus any other  scheduled  output  pursuant to
     Seller's right to schedule Energy) within  [redacted] of the  notification,
     the Customers shall be entitled to reimbursement of their costs from Seller
     as follows:

          2.1.2.1  If an  Oversupply  Condition  exists,  the  decremental  cost
     associated with over-generation  shall be documented by the Customers until
     the actual output of the unit equals the Request for Energy (plus any other
     scheduled  output  pursuant to  Seller's  right to  schedule  Energy).  The
     Customers  shall advise Seller of the total  decremental  costs  associated
     with each instance of an Oversupply Condition.

          2.1.2.2 If an Undersupply  Condition exists, the provisions of Section
     4.3 will apply if applicable.

          3.1  Notification  Requirements  for Delivery of Energy from Alternate
     Resources.

          3.1.1 When the Facility is  available  and running at minimum load and
     spinning  reserves  are  available,  Seller  will  notify OUC if Seller has
     scheduled  delivery of Energy  from  Alternate  Resources  to meet all or a
     portion of Customers'  Schedule at least  [redacted] (or the amount of time
     in  which  an RTO has  determined  that the  Physical  Transmission  Rights
     ("PTRs") may be recalled)  prior to the scheduled  commencement of delivery
     of such Energy.  For purposes of paragraph  3.1, the phrase "has  scheduled
     delivery" means that Seller has scheduled and arranged the OASIS,  tagging,
     and any transmission rights required by an RTO. If an RTO is established in
     Florida,  and  under  such  condition  the  RTO  determines  that  Physical
     Transmission  Rights  (PTRs) may be recalled if not  utilized,  then Seller
     will  notify  OUC if  Seller  has so  scheduled  delivery  of  Energy  from
     Alternate  Resources at least [redacted] (or the amount of time in which an
     RTO has determined  that the PTRs may be recalled) and [redacted]  prior to
     the scheduled  commencement of delivery of such Energy.  At the time Seller
     notifies OUC that Seller has so scheduled delivery of Energy from Alternate
     Resources,  Seller will identify the source and quantity of such Energy and
     the path of its transmission to OUC.

          3.1.2 When the Facility is unavailable  and is not scheduled to return
     to service in time for Seller to serve the Customers' Schedule, Seller will
     notify OUC within [redacted] after Seller's receipt of Customers'  Schedule
     if Seller has scheduled delivery of Energy from Alternate Resources to meet
     all or a portion of such Customers'  Schedule.  At the time Seller notifies
     OUC  that  Seller  has so  scheduled  delivery  of  Energy  from  Alternate
     Resources,  Seller will identify the source and quantity of such Energy and
     the path of its transmission to OUC.

          3.1.3 When the Facility  becomes  unavailable  while Seller is serving
     Customers'  Schedule,  Seller will notify OUC within  [redacted]  after the
     Facility is deemed  unavailable if Seller has scheduled  delivery of Energy
     from  Alternate  Resources  to meet all or a portion  of the  remainder  of
     Customers'  Schedule.  If Seller  notifies OUC that Seller has so scheduled
     delivery  of Energy from  Alternate  Resources,  then Seller will  schedule
     delivery  of such  Energy  to begin no later  than the top of the next full
     hour  following  the hour that Seller  notified  OUC of Seller's  election.
     (Example:  The Facility  becomes  unavailable  at  [redacted]  Seller gives
     notice no later than  [redacted]  if Seller will arrange to deliver  Energy
     from Alternate Resources. Delivery from Alternate Resources should begin no
     later than  [redacted]) At the time Seller  notifies OUC that Seller has so
     scheduled delivery of Energy from Alternate Resources, Seller will identify
     the source and quantity of such Energy and the path of its  transmission to
     OUC.

          3.1.4 When the Facility is expected to return from an outage, but does
     not, Seller will notify OUC within [redacted] of Seller's  realization that
     the  Facility  will not be  available  as  expected  to meet the start of a
     Customer's  Schedule.  If the start of such Customer's Schedule is to begin
     within [redacted] or less from the time of such notice,  Seller will notify
     OUC at the same time if  Seller  has  scheduled  delivery  of  Energy  from
     Alternate  Resources to meet all or a portion of such Customer's  Schedule.
     Otherwise Seller will notify OUC if Seller has scheduled delivery of Energy
     from  Alternate  Resources  to meet  all or a  portion  of such  Customer's
     Schedule  at least  [redacted]  prior to the  start  of such  Schedule  and
     preferably at least  [redacted]  prior.  If Seller notifies OUC that Seller
     has scheduled delivery of Energy from Alternate Resources, then Seller will
     schedule delivery of such Energy to begin no later than the top of the next
     full hour following the hour that Seller notified OUC of Seller's  election
     (but not earlier than the original start of such Customers'  Schedule).  If
     an RTO develops in Florida,  and under such  condition  the RTO  determines
     that PTRs may be recalled if not  utilized,  then Seller will notify OUC if
     Seller has scheduled  delivery of Energy from Alternate  Resources at least
     [redacted] (or the amount of time in which an RTO has  determined  that the
     PTRs may be recalled) and [redacted] prior to the scheduled commencement of
     delivery of such Energy. At the time Seller notifies OUC that Seller has so
     scheduled delivery of Energy from Alternate Resources, Seller will identify
     the source and quantity of such Energy and the path of its  transmission to
     OUC.

<PAGE>

                                   APPENDIX C

                           CAPACITY TESTING PROCEDURE

        The capability of the Facility will be required to be demonstrated prior
to the Commencement Date. The demonstration of the capability of the Facility
following the Commencement Date shall be scheduled in accordance with the
provisions of Section 4.1.2. As provided in Section 4.1.3, Participants may also
request additional tests of the Facility which shall not be used as the basis
for determining the Demonstrated Capability of the Facility. Purchaser shall
have the right to monitor (either on-Site or otherwise) all performance tests.

        All Capacity testing will be adjusted to the Rated Conditions using
correction curves supplied by Seller. "Rated Conditions" means seventy (70)
degrees Fahrenheit ((degree)F) and forty five percent (45%) relative humidity.
The demonstrated net output of the Facility will be as measured by the Meters.

        On the date of the Capacity test, Seller shall bring the Facility to
maximum full load capability within the Technical Limits of the Facility for the
ambient conditions for that day. The test shall be scheduled between the weekday
hours of 11:00 a.m. and 7:00 p.m. (prevailing Eastern Time) and will be
conducted over an eight consecutive hour period (or a lesser period if mutually
agreed upon). Seller must notify Customers when the Facility is at maximum full
load capability, at which time the Capacity test shall begin. The Demonstrated
Capability will be the average net hourly output over the test period corrected
to Rated Conditions.

<PAGE>

                                   APPENDIX D

         Example Calculations of Quantities of Gas Transportation and/or
            Commodity Required for Delivery from Alternate Resources

         Listed below are examples of the determination of the amount of gas
transportation and/or commodity that the Fuel Supply Agent shall provide to
Seller pursuant to Section 4.2.5.2 or 4.2.5.3 when Seller elects to deliver
Energy from Alternate Resources.

Example 1

         The facility is unavailable. The Customers have Scheduled 400 MWh of
         Energy in an hour. Seller notifies OUC that Seller will supply the 400
         MWh of Energy for the subject hour from Alternate Resources.

In Example 1, the Fuel Supply Agent will provide [redacted]

Example 2

         The facility is unavailable. The Customers have Scheduled 610 MWh of
         Energy in an hour. Seller notifies OUC that Seller will supply 550 MWh
         of Energy for the subject hour from Alternate Resources.

In Example 2, the Fuel Supply Agent will provide [redacted]

Example 3

         The facility is available. The Customers have Scheduled 450 MWh of
         Energy in an hour. Seller notifies OUC that Seller will deliver 100 MWh
         of Energy for the subject hour from Alternate Resources and 350 MWh
         from the Facility.

In Example 3, the Fuel Supply Agent will provide [redacted]

Example 4

         The facility is available. The Customers have Scheduled 600 MWh of
         Energy in an hour. Seller notifies OUC that Seller will deliver 200 MWh
         of Energy for the subject hour from Alternate Resources and 400 MWh
         from the Facility.

In Example 4, the Fuel Supply Agent will provide [redacted]

<PAGE>

                                      E-10

                                   APPENDIX E

                               AFFILIATE GUARANTEE

                           [FORM OF] PAYMENT GUARANTY

         This Guaranty Agreement (the "Guaranty") is made by The Southern
Company ("Guarantor"), a Delaware corporation, in favor of Orlando Utilities
Commission ("OUC"), a Florida statutory chartered public utility commission.

         WHEREAS, Southern Company - Florida LLC ("Principal Obligor"), a
Delaware limited liability company, and OUC entered into that certain Power
Purchase Agreement, dated as of March 19, 2001 (the "PPA");

         WHEREAS, Guarantor has agreed to provide assurance for the payment of
Principal Obligor's obligations in connection with the PPA as provided in this
Guaranty; and

         WHEREAS, the execution and delivery of this Guaranty by Guarantor is
pursuant to the terms of the PPA in order to satisfy the requirement that
Principal Obligor cause an Affiliate to maintain in place a guaranty of
Principal Obligor's obligations under the PPA.

         NOW, THEREFORE, in consideration of the premises and other good and
valuable consideration, the adequacy, receipt and sufficiency of which are
hereby acknowledged, Guarantor hereby agrees as follows:

1.   Guaranty.  Guarantor  hereby  irrevocably,  unconditionally  and absolutely
     guarantees  the punctual  payment when due of Principal  Obligor's  payment
     obligations  arising  under the PPA,  as amended or  modified  from time to
     time,  together with any interest thereon,  including,  without limitation,
     any  interest  amounts  accruing  under  the PPA  during  the  pendency  of
     insolvency,   bankruptcy,   reorganization  or  other  similar  proceedings
     affecting  Principal  Obligor or its assets;  provided,  however,  that the
     maximum  liability  of  Guarantor  under  this  Guaranty  with  respect  to
     Principal  Obligor's  obligations  under  the PPA shall be  limited  to the
     amount that is equal to the then-current Termination Payment (as defined in
     the PPA),  which shall not exceed in any event Fifteen Million Five Hundred
     Sixty-Eight Thousand Eight Hundred Dollars ($15,568,800) (collectively, the
     "Guaranteed Obligations");  provided,  further, that the cap on Guarantor's
     liability  under this Guaranty  established  in the  immediately  preceding
     clause creates an absolute cap on Guarantor's  liability to OUC in relation
     to the PPA and, if and when  Guarantor's  liability under this Guaranty has
     reached such cap,  then from and after such time,  Guarantor  shall have no
     further  liability under this Guaranty  whatsoever to OUC and this Guaranty
     shall  thereupon  terminate;  provided,  further,  that costs  incurred  by
     Guarantor  under  Section 4 hereof  shall not be counted  for  purposes  of
     determining  whether  Guarantor  has  reached  such cap,  unless and to the
     extent that  Guarantor's  costs under such Section 4,  together  with costs
     incurred by Guarantor  under the  corresponding  provisions of  Guarantor's
     other three Payment  Guarantees of  contemporaneous  date to one or more of
     OUC,  FMPA  and KUA,  exceed  Three  Million  Dollars  ($3,000,000)  in the
     aggregate.

2.   Guaranty Absolute.  The liability of Guarantor under this Guaranty shall be
     irrevocable, absolute and unconditional irrespective of:

         (a)      any lack of  validity  or  enforceability  of or  defect  or
                  deficiency  in the PPA or any other documents executed in
                  connection with the PPA;

         (b)      any assignment, transfer, modification, extension or waiver
                  of any of the terms of the PPA;

         (c)      any change in the time, manner, terms of payment of or in any
                  other term of, all or any of the Guaranteed Obligations, or
                  any other amendment or waiver of or any consent to departure
                  from any agreement or instrument executed in connection
                  therewith;

         (d)      any sale, exchange, release or non-perfection of any property
                  standing as security for the liabilities hereby guaranteed or
                  any liabilities incurred directly or indirectly hereunder or
                  any set off against any of said liabilities, or any release or
                  amendment or waiver of or consent to departure from any other
                  guaranty, for all or any of the Guaranteed Obligations;

         (e)      applicable statutes of limitation, failure, omission, delay,
                  waiver or refusal by OUC to exercise, in whole or in part, any
                  right or remedy held by OUC with respect to the PPA or any
                  transaction under the PPA; or

         (f)      any change in the existence, structure or ownership of
                  Guarantor or Principal Obligor, or any insolvency, bankruptcy,
                  reorganization or other similar proceeding affecting Principal
                  Obligor or its assets.

         The obligations of the Guarantor hereunder are several from the
Principal Obligor or any other person, and are primary obligations concerning
which the Guarantor is the principal obligor. There are no conditions precedent
to the enforcement of this Guaranty, except as expressly contained herein.

         This Guaranty shall continue to be effective or be reinstated, as the
case may be, if at any time any payment of any of the Guaranteed Obligations are
annulled, set aside, invalidated, declared to be fraudulent or preferential,
rescinded or must otherwise be returned, refunded or repaid by OUC upon the
insolvency, bankruptcy, dissolution, liquidation or reorganization of Principal
Obligor or any other guarantor, or upon or as a result of the appointment of a
receiver, intervenor or conservator of, or trustee or similar officer for,
Principal Obligor or any other guarantor or any substantial part of its property
or otherwise, all as though such payment or payments had not been made.

3.   Waiver.  This is a guaranty  of payment  and not of  collection. Guarantor
     hereby waives:

          (a)  notice  of  acceptance  of  this  Guaranty,  of the  creation  or
     existence of any of the Guaranteed  Obligations and of any action by OUC in
     reliance hereon or in connection herewith;

          (b) except as  expressly  set forth  herein,  presentment, demand for
     payment,  notice of dishonor or  nonpayment,  protest and notice of protest
     with respect to the Guaranteed Obligations; and

          (c) any requirement that suit be brought against  Principal Obligor or
     any other person as a condition to Guarantor's liability for the Guaranteed
     Obligations  under this  Guaranty or as a condition to the  enforcement  of
     this Guaranty against Guarantor.

         Notwithstanding anything to the contrary set forth herein, Guarantor
         shall have the same defenses available to it as Principal Obligor may
         have with respect to any payment obligations arising under the PPA.

4.   Expenses.  Guarantor  agrees to pay on demand any and all costs,  including
     reasonable  legal fees,  and other  expenses  incurred by OUC in  enforcing
     Guarantor's  payment  obligations  under this  Guaranty;  provided that the
     Guarantor  shall not be liable for any expenses of OUC if no payment  under
     this Guaranty is due.

5.   Subrogation.  Guarantor  shall be  subrogated  to all rights of OUC against
     Principal  Obligor in respect of any amounts paid by Guarantor  pursuant to
     the Guaranty,  provided that Guarantor  waives any rights it may acquire by
     way of subrogation  under this  Guaranty,  by any payment made hereunder or
     otherwise,  until  all  of  the  Guaranteed  Obligations  shall  have  been
     irrevocably  paid  to OUC in  full.  If any  amount  shall  be  paid to the
     Guarantor  on account of such  subrogation  rights at any time when all the
     Guaranteed  Obligations shall not have been paid in full, such amount shall
     be held in trust for the benefit of OUC and shall  forthwith be paid to OUC
     to be applied to the  Guaranteed  Obligations.  If (a) the Guarantor  shall
     perform and shall make payment to OUC of all or any part of the  Guaranteed
     Obligations and (b) all the Guaranteed  Obligations shall have been paid in
     full, OUC shall,  at the  Guarantor's  request,  execute and deliver to the
     Guarantor  appropriate  documents  necessary  to evidence  the  transfer by
     subrogation to the Guarantor of any interest in the Guaranteed  Obligations
     resulting from such payment by Guarantor.

6.   Notices.  All  demands,  notices  and  other  communications  provided  for
     hereunder shall, unless otherwise  specifically  provided herein, (a) be in
     writing  addressed  to the party  receiving  the notice at the  address set
     forth  below or at such  other  address  as may be  designated  by  written
     notice,  from time to time, to the other party,  and (b) be effective  upon
     delivery, when mailed by U.S. mail, registered or certified, return receipt
     requested,  postage prepaid, or personally delivered. Notices shall be sent
     to the following addresses:

         If to OUC:

                  Orlando Utilities Commission

                  500 South Orange Avenue

                  Orlando, FL  32801

                  Attention:  Vice-President of Power Resources

                  Tel:  407-244-8372

                  Fax:  407-275-4120

         With a copy to:

                  Orlando Utilities Commission

                  500 South Orange Avenue

                  Orlando, FL 32801

                  Attention:  Legal Department

                  Telephone:  407-423-9100

                  Facsimile:  407-423-9198

         If to Guarantor:

                  The Southern Company

                  c/o Southern Company Services, Inc.

                  270 Peachtree Street NW

                  Suite 2000

                  Atlanta, GA 30303

                  Attention:  Allen L. Leverett, Vice President and Treasurer

                  Tel:  404-506-0710

                  Fax:  404-506-0712

         With a copy to:

                  Robert H. Forry, Esq.

                  Troutman Sanders LLP

                  Bank of America Plaza

                  600 Peachtree Street, N.E.

                  Suite 5200

                  Atlanta, Georgia 30308-2216

                  Tel:  404-885-3142

                  Fax:  404-962-6559

         If to Principal Obligor:

                  Southern Company - Florida LLC

                  c/o Southern Company Services, Inc.

                  270 Peachtree Street NW

                  Suite 2000

                  Atlanta, GA 30303

                  Attention:  Allen L. Leverett, Vice President and Treasurer

                  Tel:  404-506-0710

                  Fax:  404-506-0712

         With a copy to:

                  Robert H. Forry, Esq.

                  Troutman Sanders LLP

                  Bank of America Plaza

                  600 Peachtree Street, N.E.

                  Suite 5200

                  Atlanta, Georgia 30308-2216

                  Tel:  404-885-3142

                  Fax:  404-962-6559

7.   Demand and  Payment.  Any demand by OUC for payment  hereunder  shall be in
     writing,  signed by a duly  authorized  officer of OUC and delivered to the
     Guarantor  pursuant  to  Section 6 hereof,  and  shall (a)  reference  this
     Guaranty,  (b) specifically  identify the Principal Obligor, the Guaranteed
     Obligations to be paid and the amount of such  Guaranteed  Obligations  and
     (c) set forth  payment  instructions.  There are no other  requirements  of
     notice,  presentment or demand.  Guarantor  shall pay, or cause to be paid,
     such  Guaranteed  Obligations  within three (3) business days of receipt of
     such demand.

8.   No Waiver;  Remedies.  Except as to applicable  statutes of limitation,  no
     failure on the part of OUC to  exercise,  and no delay in  exercising,  any
     right hereunder shall operate as a waiver thereof,  nor shall any single or
     partial  exercise  of any right  hereunder  preclude  any other or  further
     exercise  thereof or the exercise of any other right.  The remedies  herein
     provided are cumulative and not exclusive of any remedies provided by law.

9.   Replacement of Guarantor and Termination.

                  (a) Guarantor may assign and delegate its rights and
         obligations under this Guarantee, in whole or in part, as follows: (i)
         without the consent of OUC, to Southern Power Company, a Delaware
         corporation and parent company of Principal Obligor, or other Affiliate
         of Principal Obligor, if Southern Power Company or such other Affiliate
         has achieved the following three characteristics: (1) a credit rating
         on its senior securities at or above BBB- (Standard & Poors) and Baa3
         (Moody's), (2) Net Equity (as hereinafter defined) of at least Two
         Hundred Fifty Million Dollars ($250,000,000), as reflected on its most
         recent audited balance sheet, and (3) Gross Equity (as hereinafter
         defined) of at least Five Hundred Million Dollars ($500,000,000),
         provided, however, that the date on which Guarantor causes such a
         replacement of this Guaranty under this Section 9(a)(i) may not be
         earlier than the Commercial Operation Date (as defined in the Ownership
         Agreement); or (ii) with the consent of OUC, which consent may not be
         unreasonably withheld, to an assignee which has a credit rating on its
         senior securities at or above BBB- (Standard & Poors) and Baa3
         (Moody's) and which meets other reasonable financial criteria similar
         to those identified in Section 9(a)(i), provided, however, that if
         Guarantor requests OUC's consent to such an assignment and delegation
         in connection with a permitted transfer or assignment of the PPA, then
         OUC may not withhold such consent if the assignee meets the financial
         criteria in Section 9(a)(ii). An assignment and delegation of
         Guarantor's rights and obligations under this Section 9 shall become
         effective when the replacement guarantor executes and delivers to OUC a
         replacement guaranty on terms and conditions substantially similar to
         this Guaranty.

                  (b) For purposes of this Guaranty, the following terms shall
have the following meanings:

         "Net Equity" shall mean the aggregate of the capital stock and other
         equity accounts (including retained earnings and paid-in capital) of
         Southern Power Company or other Affiliate of Principal Obligor, as the
         case may be.

         "Gross Equity" shall mean Net Equity plus Guaranteed Debt plus loans to
         Southern Power Company from its parent corporation.

         "Guaranteed Debt" shall mean any obligations of Southern Power Company
         or other Affiliate of Principal Obligor, as the case may be, for or in
         respect of (a) moneys borrowed or raised (whether or not for cash) by
         whatever means (including acceptances, deposits, discounting, letters
         of credit, factoring (other than on a non-recourse basis), finance
         leases, and any other form of financing which is recognized in Southern
         Power Company's or other Affiliate of Principal Obligor's, as the case
         may be, financial statements as being in the nature of a borrowing
         (excluding for the avoidance of doubt, share capital, share premium
         account and any capital prepayment reserve), which has been guaranteed
         by Guarantor, and (b) the deferred purchase price of assets or services
         (other than goods and services obtained on normal commercial terms in
         the ordinary course of business or operations), which has been
         guaranteed by Guarantor.

         "Affiliate" of an Entity shall mean any other entity controlled by,
         controlling or under common control with such entity, where control of
         an entity means the ability to direct the policies of such entity
         through election of a majority of such entity's board of directors or
         other governing body or by contract or otherwise.

                  (c) This Guaranty shall terminate, and upon the effective date
         of such termination Guarantor shall have no further liability
         hereunder, on the earliest to occur of: (i) the satisfaction of all of
         the Guaranteed Obligations, (ii) the termination or expiration of the
         PPA, (iii) the date on which the liability cap is reached, as provided
         in Section 1 hereof, or (iv) the date on which an assignment and
         delegation by Guarantor of its rights and obligations hereunder becomes
         effective under Section 9(a) hereof.

10.  Assignment  by OUC;  Successors  and  Assigns.  OUC  may,  upon  notice  to
     Guarantor, assign its rights hereunder only to a subsequent owner of all of
     OUC's  interest in the  Facility  and the  Interconnection  Facilities  (as
     defined  in the PPA)  without  the  consent  of  Guarantor.  Subject to the
     foregoing,  this Guaranty shall be binding upon and inure to the benefit of
     the parties hereto and their respective successors,  permitted assigns, and
     legal representatives.

11.  Amendments, Etc. No amendment of this Guaranty shall be effective unless in
     writing and signed by  Guarantor  and OUC. No waiver of any  provisions  of
     this Guaranty or consent to any departure by Guarantor  therefrom  shall in
     any event be effective unless such waiver shall be in writing and signed by
     OUC. Any such waiver shall be effective  only in the specific  instance and
     for the specific purpose for which it was given.

12.  Captions.  The captions in this Guaranty have been inserted for convenience
     only and shall be given no substantive  meaning or significance  whatsoever
     in construing the terms and provisions of this Guaranty.

13.  Representations and Warranties.

         The Guarantor represents and warrants as follows:

         (a)      The Guarantor is duly organized, validly existing and in good
                  standing under the laws of the jurisdiction of its
                  incorporation and has full corporate power to execute, deliver
                  and perform this Guaranty.

         (b)      The execution, delivery and performance of this Guaranty have
                  been and remain duly authorized by all necessary corporate
                  action and do not contravene the Guarantor's constitutional
                  documents or any contractual restriction binding on the
                  Guarantor or its assets.

         (c)      This Guaranty constitutes the legal, valid and binding
                  obligation of the Guarantor enforceable against Guarantor in
                  accordance with its terms, subject, as to enforcement, to
                  bankruptcy, insolvency, reorganization and other laws of
                  general applicability relating to or affecting OUC's rights
                  and to general equity principles.

         (d)      The financial statements of Guarantor for the year ended
                  December 31, 2000 (the "Financial Statements"), heretofore
                  delivered to OUC or filed with the United States Securities
                  Exchange Commission by Guarantor present fairly the financial
                  condition and results of operations of Guarantor and its
                  consolidated subsidiaries as of the dates and for the period
                  specified therein in conformity with generally accepted
                  accounting principles, and, except as otherwise expressly
                  stated therein, consistently applied.

14.  Limitation  by Law.  All  rights,  remedies  and  powers  provided  in this
     Guaranty may be exercised only to the extent that the exercise thereof does
     not violate any applicable provision of law, and all the provisions of this
     Guaranty are intended to be subject to all applicable  mandatory provisions
     of law that may be controlling and to be limited to the extent necessary so
     that they will not render this Guaranty invalid, unenforceable, in whole or
     in part,  or not  entitled to be  recorded,  registered  or filed under the
     provisions of any applicable law.

15.  Governing Law; Submission to Jurisdiction.  This Guaranty shall be governed
     by, and  construed in  accordance  with,  the laws of the State of Georgia,
     exclusive of any conflict of laws  provisions  thereof that would apply the
     laws of another jurisdiction. The parties hereby submit to the jurisdiction
     of, and agree that venue for actions  hereunder shall be, the U.S. District
     Court for the Northern District of Georgia,  if the U.S. District Court has
     jurisdiction,  or, if the U.S.  District Court does not have  jurisdiction,
     the  Superior  Court of the State of  Georgia  sitting  in  Fulton  County,
     Georgia and the parties  hereby waive any objection to venue in such courts
     and any  objection  to any action or  proceeding  on the basis of forum non
     conveniens.

<PAGE>

IN WITNESS WHEREOF, Guarantor has caused this Guaranty to be duly executed and
delivered by its duly authorized officer effective as of this ___ day of
__________, 2001.

                                 "Guarantor"

                                 THE SOUTHERN COMPANY

                                 By:
                                    -----------------

                                 Name:
                                      ---------------

                                 Title:
                                       --------------Exhibit 10.26

                                 EXECUTION COPY
                             PUBLIC RELEASE VERSION

                         POWER AND GAS SUPPLY AGREEMENT

                           Dated as of March 28, 2002

                                      Among

                             SOUTHERN POWER COMPANY,

                          DYNEGY POWER MARKETING, INC.

                                       and

                           DYNEGY MARKETING AND TRADE

<PAGE>

<TABLE>
<CAPTION>

                                TABLE OF CONTENTS

<S>                                                                                                              <C>
ARTICLE 1:  DEFINITIONS...........................................................................................2

ARTICLE 2:  TERM OF AGREEMENT....................................................................................12
     2.1    Filing of Agreement..................................................................................12
     2.2    Termination Date.....................................................................................12
     2.3    Effect of Termination................................................................................12
     2.4    Effective Date.......................................................................................12

ARTICLE 3:  DETERMINATION OF CONTRACT CAPACITY; SALE AND PURCHASE OF CONTRACT CAPACITY AND ENERGY................12
     3.1    Determination of Contract Capacity...................................................................12
     3.2    Sale and Purchase of Contract Capacity...............................................................13
     3.3    Sale and Purchase of Contract Energy.................................................................13
     3.4    Source of Contract Energy............................................................................14

ARTICLE 4:  THE FACILITY, SCHEDULED ENERGY AND COMMITTED CAPACITY................................................14
     4.1    The Facility.........................................................................................14
     4.2    Pre-Scheduled Excused Hours..........................................................................14
     4.3    Permits; Compliance with Laws........................................................................16
     4.4    Operating Procedures and Operating Committee.........................................................16
     4.5    Provision of Contract Capacity and Contract Energy...................................................16

ARTICLE 5:  PAYMENTS.............................................................................................20
     5.1    Reservation Payment..................................................................................20
     5.2    Energy Payment.......................................................................................20
     5.3    Gas Payment, Fuel Purchase Payment, and Gas Reservation Payment......................................20
     5.4    Initial Dispatch Payment.............................................................................20
     5.5    Performance Bonus....................................................................................21
     5.6    Additional Payments..................................................................................22
     5.7    Regulatory...........................................................................................22
     5.8    Wholesale Generation Rates..........................................................................236

ARTICLE 6:  SCHEDULING, SOUTHERN'S AND DYPM'S RIGHTS TO THE FACILITY, TITLE AND RISK OF LOSS.....................23
     6.1    Scheduling...........................................................................................23
     6.2    Replacement Resources Gas............................................................................23
     6.3    Southern's Rights to the Facility....................................................................25
     6.4    Title and Risk of Loss...............................................................................25
     6.5    Provision of Committed Capacity......................................................................26

ARTICLE 7:  TRANSMISSION SERVICE.................................................................................26
     7.1    DYPM Obligations and Assumption of Transmission Risk.................................................26
     7.2    Southern Obligations.................................................................................26
     7.3    Imbalances and Penalties.............................................................................27
     7.4    Optional System Upgrades.............................................................................27

ARTICLE 8:  GAS DELIVERY OBLIGATIONS AND GAS ARRANGEMENTS........................................................28
     8.1    DMT Obligations......................................................................................28
     8.2    Southern Obligations.................................................................................29
     8.3    Transportation Obligations...........................................................................29
     8.4    Pipeline Imbalance Charges...........................................................................29
     8.5    Gas Nominations Responsibility.......................................................................29
     8.6    Title ...............................................................................................29
     8.7    Specifications.......................................................................................30
     8.8    Gas Metering.........................................................................................30
     8.9    Hourly Southern Gas Costs............................................................................31
     8.10      Operating Procedures..............................................................................31
     8.11      Obligations with Respect to Gas...................................................................31
     8.12      Determination of Adjusted Gas Volume and Monthly Adjusted Gas Volume..............................31
     8.13      Determination of Replacement Resources Gas Costs and Hourly Performance Payment Gas Cost..........32
     8.14      Initial Performance Target........................................................................33
     8.15      Degradation of Initial Heat Rate..................................................................33
     8.16      Ramping Gas and Energy............................................................................34

ARTICLE 9:  ELECTRIC METERING....................................................................................34
     9.1    Metering.............................................................................................34
     9.2    Industry Standards...................................................................................35
     9.3    Access...............................................................................................35
     9.4    Calibration..........................................................................................35
     9.5    Records..............................................................................................35
     9.6    Meter Errors.........................................................................................35
     9.7    Subject to Interconnection Agreement.................................................................36

ARTICLE 10:  BILLING AND PAYMENT.................................................................................36
     10.1      Timing; Method of Payment.........................................................................36
     10.2      Late Payment......................................................................................36
     10.3      Disputed Billings.................................................................................36
     10.4      Adjustments.......................................................................................36
     10.5      Audit Rights......................................................................................36

ARTICLE 11:  CHANGE IN LAW.......................................................................................37
     11.1      Limitations.......................................................................................37
     11.2      Determination.....................................................................................37
     11.3      Initiation of Surcharge...........................................................................37
     11.4      Timing............................................................................................37
     11.5      Contest and Dialogue..............................................................................37

ARTICLE 12:  LIABILITY ALLOCATION; LIMITATIONS ON LIABILITY......................................................37
     12.1      Costs, Taxes and Charges..........................................................................37
     12.2      Indemnification...................................................................................38
     12.3      Limitation of Liability...........................................................................38

ARTICLE 13:  FORCE MAJEURE EVENT.................................................................................39
     13.1      Force Majeure Event Defined.......................................................................39
     13.2      Applicability of Force Majeure Event..............................................................39
     13.3      Effect of Force Majeure Event.....................................................................40
     13.4      Other Effects of Force Majeure Events.............................................................40

ARTICLE 14:  EVENT OF DEFAULT....................................................................................40
     14.1      Event of Default..................................................................................40
     14.2      Exclusive Remedies................................................................................41

ARTICLE 15:  CREDITWORTHINESS AND SECURITY.......................................................................43
     15.1      Guaranty in favor of Southern.....................................................................43
     15.2      Negative Watch Credit Support in favor of Southern................................................43
     15.3      Credit Support in favor of Southern for Junk Rating...............................................43
     15.4      Post December 31, 2005 Provisions.................................................................44
     15.5      Guaranty in favor of DYPM/DMT.....................................................................44
     15.6      Negative Watch Credit Support in favor of DYPM/DMT................................................44
     15.7      Credit Support in favor of DYPM/DMT for Junk Rating...............................................45
     15.8      Post June 1, 2005 Provisions......................................................................45

ARTICLE 16:  DELIVERY EXCUSE.....................................................................................45
     16.1      Definition........................................................................................45
     16.2      No Breach for Delivery Excuse.....................................................................46

ARTICLE 17:  REPRESENTATIONS AND WARRANTIES......................................................................46
     17.1      Execution.........................................................................................46
     17.2      Permits...........................................................................................46
     17.3      Binding Obligations...............................................................................46
     17.4      Execution and Consummation........................................................................47
     17.5      Actions and Proceedings...........................................................................47
     17.6      Processor.........................................................................................47

ARTICLE 18:  ASSIGNMENT..........................................................................................47
     18.1      General Rule......................................................................................47
     18.2      Consent Required..................................................................................47

ARTICLE 19:  DISPUTE RESOLUTION..................................................................................47
     19.1      Senior Officers...................................................................................48
     19.2      Arbitration.......................................................................................48
     19.3      Binding Nature of Proceedings.....................................................................49

ARTICLE 20:  MISCELLANEOUS.......................................................................................49
     20.1      Governing Law; Waiver of Jury Trial...............................................................49
     20.2      Confidentiality...................................................................................49
     20.3      Survivorship of Obligations.......................................................................50
     20.4      Notice of Proceedings.............................................................................50
     20.5      No Third Party Beneficiaries......................................................................50
     20.6      Section Headings Not to Affect Meaning............................................................50
     20.7      Computation of Time...............................................................................50
     20.8      Interest..........................................................................................51
     20.9      Entire Agreement..................................................................................51
     20.10     Counterparts......................................................................................51
     20.11     Amendments........................................................................................51
     20.12     Guarantee of Performance..........................................................................51
     20.13     Waivers...........................................................................................51
     20.14     No Partnership Created............................................................................51
     20.15     Character of Sale.................................................................................51
     20.16     Notices...........................................................................................52
     20.17     Survival..........................................................................................54
     20.18     Construction......................................................................................54
     20.19     Imaged Agreement..................................................................................54
     20.20     GDP-IPD...........................................................................................54
     20.21     Higher Heating Value..............................................................................54

APPENDIX A

APPENDIX B

APPENDIX C

APPENDIX D

APPENDIX E

APPENDIX F

APPENDIX G

APPENDIX H
</TABLE>

<PAGE>

                         POWER AND GAS SUPPLY AGREEMENT
                                      AMONG
                             SOUTHERN POWER COMPANY,
                          DYNEGY POWER MARKETING, INC.
                                       AND
                           DYNEGY MARKETING AND TRADE

         This POWER AND GAS SUPPLY AGREEMENT is made and entered into as of this
28th day of March, 2002 (the "Execution Date"), by and among SOUTHERN POWER
COMPANY (hereafter referred to as "Southern" or "Seller"), a Delaware
corporation having its principal office and place of business at 600 North 18th
Street, Birmingham, Alabama 35233, DYNEGY POWER MARKETING, Inc., (hereinafter
referred to as "DYPM"), a corporation organized and existing under the laws of
the State of Texas having its principal office and place of business at 1000
Louisiana St., Suite 5800, Houston, TX 77002, and DYNEGY MARKETING AND TRADE
("DMT" or "Supplier"), a Colorado general partnership having its principal
office and place of business at 1000 Louisiana Street, Suite 5800, Houston,
Texas 77002. Southern, DYPM, and DMT are hereafter referred to individually and
collectively as a "Party" or the "Parties," respectively.

                                    RECITALS:

         DYPM desires to purchase and Southern desires to sell, Contract
Capacity and Contract Energy in accordance with this Agreement for the period
from June 1, 2005 through May 31, 2030.

         Subject to the terms and conditions of this Agreement, Southern will
deliver and sell to DYPM, and DYPM will accept and purchase from Southern,
Contract Capacity and Contract Energy from the Facility or from other resources
as provided in this Agreement.

         As an integral part of the supply of Contract Capacity and Contract
Energy by Southern hereunder, DYPM's affiliate, DMT, has agreed to supply and
Southern has agreed to purchase, natural gas in accordance with this Agreement.

         NOW THEREFORE, in consideration of the foregoing recitals and the
mutual covenants and agreements hereinafter set forth, the receipt and
sufficiency of which are hereby acknowledged, the Parties agree as follows:

                                    ARTICLE 1

                                   DEFINITIONS

         The following terms shall have the respective meanings set forth below.

         "Actual Gas Volume" has the meaning set forth in Section 8.12.1.

         "Adjusted Gas Volume" has the meaning set forth in Section 8.12.1.

         "Affiliate" means, with respect to a corporation, partnership or other
entity, each such other corporation, partnership or other entity that directly
or indirectly (through one or more intermediaries) controls, is controlled by,
or is under common control with, such corporation, partnership, or other entity.

         "Agreement" means this Power and Gas Supply Agreement, including, to
the extent applicable, any amendments and appendices hereto that the Parties may
execute now or at any time in the future.

         "Alternate Delivery Point" means a point of delivery as agreed to by
the Parties for the delivery of Contract Capacity and Scheduled Energy.

         "Alternate Gas Delivery Point(s)" means those alternate points to which
DMT is required to deliver Replacement Gas pursuant to Section 6.2.

         "Annual ENDH" means [redacted] for each Contract Year.

         "Banked Pre-Scheduled Excused Hours" has the meaning set forth in
Section 4.2.1(b).

         "Billing Month" means each Month during the Term beginning with the
second Month of the first Contract Year and includes the Month immediately
following the expiration or early termination of this Agreement.

                  "BTU" means British Thermal Units.

         "Business Day" means any Day on which Federal Reserve Member Banks in
New York, New York are open for business. A Business Day shall begin at 0800 CPT
and end at 1700 CPT.

                  "Carry Period" has the meaning set forth in Section 4.5.2(a).

                  "Central Prevailing Time" or "CPT" means the local time at any
point in Birmingham, Alabama.

         "Change in Law" means a Law (including a new or changed interpretation
of an existing Law by a Government Agency, or an interpretation by a Government
Agency previously unknown to Southern) that becomes effective after the date of
the Agreement and generally affects the cost of electric generation [redacted].
Examples of a Change in Law include (but are not limited to): (i) Laws
pertaining to changes in environmental Laws that seek to decrease existing
limits (e.g., NOx) or to establish limits for currently uncontrolled substances
(e.g., CO2); and (ii) Laws pertaining to the imposition of energy taxes on
wholesale power sales. A Change in Law does not include changes in: (i) income
taxes; (ii) taxes assessed or imposed by a county or municipal authority (such
as ad valorem taxes); (iii) franchise and occupational taxes; or (iv) Laws that
have unique application to the Facility.

         "Cold Start" means an Initial Dispatch when Scheduled Energy has not
been delivered from any resource for a period of greater than [redacted].

         "Commercially Reasonable" or "Commercially Reasonable Efforts" means,
with respect to any purchase, sale, decision, or other action made, attempted or
taken by a Party, such efforts as a reasonably prudent business would undertake
for the protection of its own interest under the conditions affecting such
purchase, sale, decision, or other action, including without limitation,
electric system reliability and stability, the amount of notice of the need to
take such action, the duration and type of the purchase or sale or other action,
and the commercial environment in which such purchase, sale, decision, or other
action occurs.

         "Committed Capacity" means that capacity that DYPM may receive pursuant
to Section 6.5.

         "Committed Resource" has the meaning set forth in 6.5.3.

         "Contest" means with respect to any Person, a contest of: (i) any
Governmental Approval, acts or omissions by any Government Agency or any related
matters; or (ii) the amount or validity of any claim pursued by such Person in
good faith and by appropriate legal, administrative or other proceedings
diligently conducted, so long as the contesting Party could not reasonably be
expected to be prevented from performing its material obligations under this
Agreement pending the outcome of such contest.

         "Contract Capacity" has the meaning set forth in Section 3.1.

         "Contract Energy" has the meaning set forth in Section 3.3.

         "Contract Year" means: (i) for the first Contract Year, the Effective
Date of Service through May 31, 2006; and (ii) for each Contract Year
thereafter, each twelve (12) Month period thereafter beginning June 1 and ending
May 31.

         "Day" means the twenty-four (24) hour period beginning and ending at
2400 CPT.

         "Delivered Energy" means the amounts of energy, expressed in MWhs, that
are delivered by Southern from the Facility or Replacement Resources in
accordance with this Agreement.

         "Delivery Excuse" has the meaning set forth in Section 16.1.

         "Delivery Point" means the Interconnection Point(s) or such Alternate
Delivery Point(s) as may be mutually agreed upon by Southern and DYPM.

         "Determination Period" has the meaning set forth in Section 4.5.1(b).

         "DMT" has the meaning set forth in the introductory paragraph hereof.

         "DYPM" has the meaning set forth in the introductory paragraph hereof.

         "Effective Date of Service" means June 1, 2005.

         "Electric Metering Equipment" means electric meters and associated
equipment, including metering transformers and meters for measuring kWh, amperes
and voltage, utilized in determining the Energy Output Level at the
Interconnection Point(s). The Electric Metering Equipment shall include meters
and any back-up meters utilized to measure deliveries of energy to the Southern
Company Transmission System, and the use of energy at the Facility.

         "Eligible Guaranty" has the meaning set forth in Section 15.1.

                  "Eligible Guaranty Threshold" has the meaning set forth in
Section 15.1.

         "Emergency Condition" means a condition or situation (not principally
caused by Southern) that presents an imminent physical threat of danger to life,
health or property, or a situation in which delivery of Scheduled Energy from
the Facility could reasonably be expected to cause a significant disruption on
the Southern Company Transmission System.

         "ENDH" means an excused non-delivery hour (or portion of an hour) in
which an Unavailability has occurred for which Southern accumulates ENDH
pursuant to Section 4.5.2. ENDH for any hour shall equal the ratio of the amount
of Contract Capacity associated with the Scheduled Energy not provided to the
Contract Capacity for such hour.

         "ENDH Accumulated" means the number of Equivalent ENDH as calculated
pursuant to Section 4.5.4.

         "ENDH Available" means, for any point in time in any Month, the number
of ENDH (or partial ENDH) that are available for accumulation pursuant to
Southern's election under Section 4.5.2. The amount of ENDH Available in any
Month shall be equal to the difference between Annual ENDH for the Contract Year
in which such Month occurs and the sum of (i) ENDH Accumulated during such Month
(before the point of calculation) and (ii) ENDH Accumulated during all of the
Months elapsed during such Contract Year preceding the Month in which the
calculation is made.

         "Energy Output Level" means the hourly quantity of energy (in MWh)
generated by the Facility to supply Scheduled Energy, plus energy simultaneously
generated by the Facility in connection with energy production from the Reserved
Capacity to the extent such production is made pursuant to the Other Southern
Agreement.

         "Energy Payment" means the payment for Delivered Energy to be made by
DYPM to Southern as calculated in Section 5.2.

         "Energy Price" means, [redacted]

         "Equivalent ENDH" has the meaning set forth in Section 4.5.4.

         "Event of Default" has the meaning set forth in Section 14.1.

         "Execution Date" has the meaning set forth in the introductory
paragraph hereof.

         "Extended Outage Period" has the meaning set forth in Section 4.5.1(b).

         "Extended Unavailability" has the meaning set forth in Section 4.5.6.

         "Facility" means the electric generating unit currently known as "Goat
Rock 3" with an anticipated initial capacity of approximately 625 MW (including
power augmentation), which Facility is part of that certain natural gas combined
cycle electric generating plant located in Lee County, Alabama which directly
interconnects to the Southern Company Transmission System, or such other
generating facility mutually agreed by the Parties.

         "Facility Actual Capacity" means, for each hour, the actual capacity
(taking into account the effect of any Unavailability) of the Facility (measured
in MW), as reasonably determined by Southern on such Day.

         "Facility Metering Equipment" means Gas meters and associated equipment
located at the Facility.

         "FERC" means the Federal Energy Regulatory Commission, or any successor
to its functions.

         "Force Majeure Event" has the meaning set forth in Section 13.1.

         "Force Majeure Hour" shall occur in any hour (or portion of an hour) in
which a Force Majeure Event occurs or is continuing. During a Force Majeure
Hour, if the energy available from the Facility (as measured in hourly amounts
and expressed in MWh) is greater than zero but less than the amount of Scheduled
Energy, then a partial Force Majeure Hour shall be determined equal to the ratio
of the amount of Contract Capacity not available from the Facility in such hour
due to the Force Majeure Event to the Contract Capacity for such hour.
         "Fuel Purchase Payment" has the meaning set forth in Section 5.3.2.

         "GDP-IPD" means the Gross Domestic Product Implicit Price Deflator
published in the National Income and Product Account by the U.S. Department of
Commerce.

                  "Gas" means natural gas.

                  "Gas Delivery Point" means the outlet flange of the Gas
Metering Equipment.

                  "Gas Index" means [redacted].

         "Gas Metering Equipment" means Gas meters and associated equipment
located at the interconnection between the pipeline lateral serving the Facility
and the Transporter's pipeline.

         "Gas Nomination" or "Gas Nominations" means communicating and
confirming that a particular amount of Gas is to be delivered or received at the
Gas Delivery Point and/or the Alternate Gas Delivery Point(s) and providing all
information that may be necessary to cause such delivery or receipt to occur.

         "Gas Payment" has the meaning set forth in Section 5.3.

                  "Gas Requirements" means, for each hour, Actual Gas Volume
less Southern Gas Consumed.

                  "Gas Tariff" means the Gas transportation tariff of the
applicable Transporter as maintained and approved by FERC from time to time, as
the same may be amended or supplemented during the Term.

         "Government Agency" means any federal, state, local, territorial or
municipal government and any department, commission, board, bureau, agency,
instrumentality, judicial or administrative body thereof.

         "Governmental Approval" means any authorization, consent, approval,
license, ruling, permit, exemption, variance, order, judgment, decree,
declarations of or regulation of any Government Agency relating to the Facility
or to the execution, delivery or performance of this Agreement.

         "Guarantor" has the meaning set forth in Section 14.1.2.

         "Guaranty" means a Guaranty or other instrument guaranteeing a Party's
obligations under this Agreement as contemplated under Article 15.

         "Heat Rate Test" means a heat rate test requested by either DYPM or
Southern which is conducted for the Facility in accordance with Prudent Industry
Practices as determined by Southern.

         "Hot Start" means an Initial Dispatch of the Facility when Scheduled
Energy has not been delivered from any resource for a period of less than
[redacted].

         "Hour Block" means any period within a Day that is comprised of either
a succession of Off Peak Hours or a succession of On Peak Hours.

         "Hourly Performance Payment Gas Cost" has the meaning set forth in
Section 8.13.3.

         "Hourly Replacement Resources Gas Cost" has the meaning set forth in
Section 8.13.1.

         "Imaged Agreement" has the meaning set forth in Section 20.19.

         "Increased Generation Costs" means [redacted].

         "Initial Dispatch" means each time that DYPM goes from not having any
energy Scheduled to having some amount of energy Scheduled.

         "Initial Dispatch Payment" has the meaning set forth in Section 5.4.

         "Initial Heat Rate" means the heat rate, expressed in Higher Heating
Value, established by a Heat Rate Test of the Facility prior to the Effective
Date of Service.

         "Initial Performance Target" has the following meaning:

                  The entire Facility shall have an Initial Performance Target
of [redacted]

         "Interconnection Agreement" means the interconnection agreement between
the applicable transmission provider and Southern governing the interconnection
of the Facility to the Southern Company Transmission System, as the same may be
amended from time to time, or such successor interconnection agreement as may be
required pursuant to an assignment of transmission provider responsibilities to
a regional power exchange, regional transmission organization, independent
system operator or other transmission system operator.

         "Interconnection Point" means the substation where the Facility is
physically interconnected to the Southern Company Transmission System.

         "kW" means kilowatt(s).

         "kWh" means kilowatt hour(s).

                  "Law" means any statute, law, requirement, rule or regulation
imposed by a Government Agency, whether in effect now or at any time in the
future.

         "MMBTU" means one million BTU.

                  "MW" means megawatt(s).

                  "MWh" means megawatt hour(s).

                  "Maintenance Outage Hours" has the meaning set forth in
Section 4.2.1(c).

         "Major Bank" means the Federal Reserve Bank of Atlanta, Georgia.

         "Maximum Allowable Degradation" means the Initial Heat Rate multiplied
by [redacted].

         "Minimum Schedule Capacity" shall have the meaning set forth in Section
6.1.3.

                  "Month" means a calendar month.

                  "Monthly DYPM Gas Costs" has the meaning set forth in Section
8.12.2.

                  "Monthly Replacement Resources Gas Costs" has the meaning set
forth in Section 8.13.2.

                  "Monthly Gas Reservation Payment" has the meaning set forth in
Section 5.3.3.

                  "Monthly Weighting Factor" means, for any Month, the weighting
factor for such Month in the table below:

                             Month Weighting Factor

                                    January                   [redacted]

                                    February                  [redacted]

                                    March                     [redacted]

                                    April                     [redacted]

                                    May                       [redacted]

                                    June                      [redacted]

                                    July                      [redacted]

                                    August                    [redacted]

                                    September                 [redacted]

                                    October                   [redacted]

                                    November                  [redacted]

                                    December                  [redacted]

         "NERC" means the North American Electric Reliability Council, or any
successor to its functions.

         "Non-Summer DPF" has the meaning set forth in Section 5.5.2.

         "Non-Summer PAF" has the meaning set forth in Section 5.5.2.

         "Non-Summer Performance Bonus" has the meaning set forth in Section
5.5.2.

         "OATT" means the Open Access Transmission Tariff of Southern Companies
or a successor tariff governing transmission on the Southern Company
Transmission System that has been accepted by FERC, as the same may be changed
or amended from time to time.

         "Off Peak Hour" means: (i) any hour from 2200 CPT to 0600 CPT, Monday
through and including Friday; (ii) any hour during any holiday recognized by
NERC; and (iii) any hour during Saturday and Sunday.

         "On Peak Hour" means any hour from 0600 CPT to 2200 CPT, Monday through
and including Friday, excluding any hour of any holiday recognized by NERC.

         "Operating Committee" has the meaning set forth in Section 4.4.2.

         "Operating Procedures" has the meaning set forth in Section 4.4.1.

         "Optional System Upgrades" means those transmission upgrades of the
Southern Company Transmission System that are in addition to those facilities
that Southern Company Transmission requires in order to interconnect the
Facility to the Southern Company Transmission System.

         "Other Southern Agreement" means that certain capacity and energy
purchase agreement providing, among other things, at Southern's election, rights
with respect to the Reserved Capacity.

         "Peak Period" means, for each Contract Year, the Months of June, July,
August, September, January and February.

         "Performance Payment" means [redacted].

         "Person" means any individual, corporation, limited liability
corporation, partnership, joint venture, trust, unincorporated organization,
Government Agency or other entity.

         "Pre-Scheduled Excused Hours" means hours in which the Facility is
unavailable for Scheduling for reasons relating to the maintenance of the
Facility or as may otherwise be necessary to comply with Prudent Industry
Practices, as such hours are designated and scheduled in accordance with Section
4.2.

         "Prime Rate" means, for any Day on which the calculation of an interest
amount begins under this Agreement, the "Prime Rate" specified for such Day (or,
if such Day is not a Business Day, on the first Business Day following such Day)
under the "Money Rate" table of the Wall Street Journal. In the event that the
Wall Street Journal ceases to report a Prime Rate, the Prime Rate for purposes
of this Agreement shall be the prime rate (or its functional equivalent) charged
by the Major Bank in the United States of America.

         "Protective Apparatus" means such equipment and apparatus, including
protective relays, circuit breakers and the like, necessary or appropriate to
isolate the Facility from the Southern Company Transmission System consistent
with Prudent Industry Practices and any requirements of Southern Company
Transmission.

         "Prudent Industry Practices" means any of the practices, methods,
standards and acts (including the practices, methods and acts engaged in or
approved by a significant portion of the electric power industry in the United
States) that, at a particular time, in the exercise of reasonable judgment in
light of the facts known or that should reasonably have been known at the time a
decision was made, could have been expected to accomplish the desired result
consistent with good business practices, reliability, economy, safety and
expedition, and which practices, methods, standards and acts generally conform
to operation and maintenance standards recommended by equipment suppliers and
manufacturers, applicable design limits and applicable Governmental Approvals
and Laws.

         "Replacement Cost" means, [redacted].

         "Replacement Gas Price" has the meaning set forth in Section 6.2.

         "Replacement Resources" means all resources other than the Facility
(whether such other resources are owned, purchased or otherwise controlled by
Southern, or that are otherwise available to Southern) from which Southern may
elect to provide Contract Capacity and Scheduled Energy.

         "Replacement Value" has the meaning set forth in Section 14.2.4.

         "Reservation Payment" has the meaning set forth in Section 5.1.

         "Reserved Capacity" means 400 MW, which represents the capacity from
the Facility that is not available to DYPM under this Agreement, but which, at
Southern's election, is subject to the Other Southern Agreement.

         "Schedule" means the right of DYPM to schedule the delivery of
Scheduled Energy in accordance with this Agreement. Any form of the term
Schedule (e.g., "Scheduled" or "Scheduling") shall refer to the exercise of such
right by DYPM.

         "Scheduled Energy" means the amounts of energy, expressed in MWh,
Scheduled by DYPM to be delivered by Southern in accordance with this Agreement.

         "Scheduling Constraints" has the meaning set forth in Appendix B.

         "Seller" has the meaning set forth in the introductory paragraph
hereof.

         "Seller Election Period" has the meaning set forth in Section 4.5.1(b).

                  "Southern" has the meaning set forth in the introductory
paragraph.

                  "Southern Company" means The Southern Company, a publicly held
corporation organized and existing under the laws of the State of Delaware and
having its principal place of business in Atlanta, Georgia.

         "Southern Company  Transmission" means the functional  transmission
division of Southern Company Services, Inc., or any successor transmission
provider.

         "Southern Company Transmission System" means the integrated
transmission systems of the electric operating companies of Southern Company, as
such systems may be modified or expanded from time-to-time, as well as any
successor transmission system(s).

         "Southern Gas Consumed" has the meaning set forth in Section 8.12.1.

         "Summer DPF" has the meaning set forth in Section 5.5.1.

         "Summer PAF" has the meaning set forth in Section 5.5.1.

         "Summer Performance Bonus" has the meaning set forth in Section 5.5.1.

         "Taxes" means any or all ad valorem, property, occupational, severance,
emissions, generation, first use, conservation, energy, transmission, utility,
gross receipts, privilege, sales, use, excise and other taxes, governmental
charges, licenses, fees, permits and assessments, and taxes based on net income
or net worth.

         "Term" means the period from the Execution Date through May 31, 2030,
or such earlier date on which this Agreement is terminated in accordance with
its terms.

         "Tested Heat Rate" has the meaning set forth in Section 8.15.

         "Transporter" means any Person that transports Gas upstream and to the
Gas Delivery Point or the Alternate Gas Delivery Point(s).

         "Unavailability" means any time in which the Facility (or any part
thereof) is physically incapable of providing all or a portion of Scheduled
Energy or Committed Capacity for reasons including an actual or threatened
unplanned component failure that requires the generating capability of the
Facility to be reduced (or derated); provided that for an Unavailability to
exist, the actual output of the Facility must have in fact been reduced.
Unavailability does not include those times that the Facility's capability is
reduced (in whole or in part) due to a Force Majeure Event, Delivery Excuse, or
maintenance activities during Pre-Scheduled Excused Hours or Maintenance Outage
Hours.

         "Undelivered Energy" means that quantity of Scheduled Energy that
Southern fails to deliver to the Delivery Point in response to a Schedule for
which ENDH is not accumulated and which failure is not attributable to a Force
Majeure Event or Delivery Excuse.

         "VOM Charge" means [redacted].

                  "Warm Start" means an Initial Dispatch when Scheduled Energy
has not been delivered from any resource for a period greater than or equal to
[redacted] and less than or equal to [redacted].

                                    ARTICLE 2
                                TERM OF AGREEMENT

         2.1 Filing of Agreement. This Agreement shall be filed with the FERC on
or before such date as may be required by law. To the extent practicable, any
such filing shall be made under a request for confidential treatment. This
Agreement shall not be contingent on such filing.

         2.2 Termination Date. Unless earlier terminated in accordance with its
terms, this Agreement shall continue in effect from the Execution Date through
May 31, 2030. In addition, this Agreement shall terminate immediately upon the
termination of the Other Southern Agreement.

         2.3 Effect of Termination. Subject to the exercise of a non-defaulting
Party's rights under Section 14.2, in the event that this Agreement is
terminated, the rights and obligations of the Parties hereunder shall continue
unaffected until the termination is effective in accordance with the terms and
conditions thereof. Any such termination shall not relieve DYPM of its
obligation to pay any unpaid invoices for any Contract Capacity made available
and Contract Energy supplied prior to the effective date of such termination, or
relieve Southern of its obligation to provide Contract Capacity and to deliver
Scheduled Energy (or pay a Performance Payment) prior to the effective date of
such termination.

         2.4 Effective Date. This Agreement shall become effective on the
Execution Date without regard to the status of the construction of the Facility,
permits relating to the Facility, or with respect to any other condition that
could affect the construction, operation or existence of the Facility.

                                    ARTICLE 3
               DETERMINATION OF CONTRACT CAPACITY; SALE AND PURCHASE OF
CONTRACT CAPACITY AND ENERGY

         3.1      Determination of Contract Capacity.

                  3.1.1 Quantity. The Contract Capacity shall equal the full
capability of the Facility (including power augmentation if appropriate) as the
Facility is designed and existing on the Effective Date of Service (as may be
adjusted pursuant to Section 3.1.2), consistent with Prudent Industry Practices
and excluding the effects of any Unavailability, Force Majeure Event or Delivery
Excuse, less the Reserved Capacity.

                  3.1.2 Adjustment. The Contract Capacity may be adjusted on a
Day to Day or an hourly basis based on the ambient temperature and relative
humidity levels at the Facility and normal capacity degradation.

                  3.1.3 Capability Projection. The Operating Committee shall
implement procedures in order to project the amount of the Contract Capacity for
each Day. Such procedures shall provide for a Day ahead projection of hourly
ambient temperatures at the Facility. Unless otherwise agreed by the Operating
Committee, the basis of such projected temperatures shall be the high and low
temperatures for each Day as forecasted by the office of the United States
National Weather Service that is nearest to the Facility. Such temperatures
shall be utilized in conjunction with the chart set forth in Figure 1 of
Appendix C in order to project Contract Capacity for each hour. This chart will
be modified by the Operating Committee from time to time in order to reflect
capacity degradation.

                  3.1.4 Uprates. After the Effective Date of Service, Southern
has the unilateral right to increase the capacity of (i.e., uprate) the
Facility. If and when an uprate of the Facility is completed and to the extent
that additional output above the Contract Capacity and the Reserved Capacity is
available from the Facility as a result, then following such uprate, Southern
shall offer DYPM the right to purchase any such additional output as an addition
to the Contract Capacity and related rights existing under this Agreement.
Southern shall make such offer by written notice to DYPM, which notice shall
include the pricing at which Southern is willing to make such additional output
available. Within twenty (20) Business Days following DYPM's receipt of such
offer from Southern, DYPM shall advise Southern of its decision to accept or
reject the offer. A failure to respond within such twenty (20) Business Day
period shall be deemed to be a rejection of the offer. If DYPM accepts the
offer, then Southern and DYPM shall amend this Agreement to provide DYPM the
additional output consistent with the terms and conditions of this Agreement. If
the additional output is not purchased by DYPM, then Southern has the right to
market the additional output provided that fuel additional to that supplied
hereunder is obtained by Southern for the incremental capacity and energy.
Southern's use of the capacity and energy associated with any such uprate not
purchased by DYPM shall be subordinate to DYPM's Schedule. In addition, no
uprate of the Facility shall be deemed to adversely affect any of the heat rate
characteristics or other performance characteristics set forth in this
Agreement. Southern shall indemnify and hold DYPM harmless from and against any
such negative effects associated with any such uprate in comparison to the
rights and benefits associated with the Facility prior to such uprate.

         3.2 Sale and Purchase of Contract Capacity. Subject to the terms and
conditions of this Agreement, beginning on the Effective Date of Service and
until the end of the Term, Southern shall make available and sell to DYPM at the
Delivery Point, and DYPM shall accept and purchase, the Contract Capacity.

3.3 Sale and Purchase of Contract Energy. Subject to the terms and conditions of
this Agreement, beginning on the Effective Date of Service and until the end of
the Term, Southern shall deliver and sell to DYPM, and DYPM shall accept and
purchase from Southern, energy at the Delivery Point up to the Contract Capacity
("Contract Energy").

3.4      Source of Contract Energy.   [redacted].

                                    ARTICLE 4
              THE FACILITY, SCHEDULED ENERGY AND COMMITTED CAPACITY

         4.1      The  Facility.  Southern  shall  perform its  obligations
 hereunder  relative to the Facility in accordance with Prudent Industry
Practices and the terms of this Agreement.

         4.2      Pre-Scheduled Excused Hours.

                  4.2.1(a) Scheduling of Pre-Scheduled Excused Hours. On or
before April 1 prior to each Contract Year, DYPM shall provide to Southern a
non-binding proposed schedule of energy and Initial Dispatches for each Month of
such Contract Year. Within one hundred twenty (120) Days after receiving DYPM's
proposed schedule, Southern shall submit to DYPM a proposed schedule of
Pre-Scheduled Excused Hours for the applicable Contract Year. The proposed
schedule of Pre-Scheduled Excused Hours shall give due consideration to, and
shall take into account, the proposed schedule submitted by DYPM; provided,
however, that in no event shall Southern's proposed schedule provide for any
Pre-Scheduled Excused Hours during a Peak Period without the prior written
consent of DYPM. Within thirty (30) Days after receiving Southern's proposed
schedule of Pre-Scheduled Excused Hours, DYPM may request, in writing, that
Southern reschedule any such Pre-Scheduled Excused Hours. Following receipt of
such request of DYPM, Southern shall inform DYPM as to whether it can
accommodate DYPM's request and, if so, shall further advise DYPM of the good
faith estimated costs that will be incurred by Southern in connection with
accommodating the request of DYPM to re-schedule the Pre-Scheduled Excused
Hours. DYPM shall then within five (5) Days of the receipt of the estimated
costs provided by Southern determine whether Southern should reschedule the
Pre-Scheduled Excused Hours. Without regard to any prior estimate, DYPM shall
reimburse Southern for all Commercially Reasonable costs related to such change
in schedule. While Southern must use Commercially Reasonable Efforts to
accommodate a request of DYPM to re-schedule any Pre-Scheduled Excused Hours,
Southern may elect to decline rescheduling, if, in Southern's Commercially
Reasonable judgment, it would cause a failure on the part of Southern to observe
Prudent Industry Practices, or if the proposed re-schedule would cause Southern
to incur costs which DYPM is unwilling to reimburse. If Southern makes the
election not to accommodate a request of DYPM to reschedule Pre-Scheduled
Excused Hours, DYPM may propose an alternate schedule for Pre-Scheduled Excused
Hours, in which case Southern and DYPM shall continue to negotiate the
rescheduling of Pre-Scheduled Excused Hours as provided above, but in no event
shall such negotiation continue after September 30 of the Contract Year for
which such Pre-Scheduled Excused Hours are scheduled. In addition to the
foregoing, within thirty (30) Days after the beginning of each Contract Year,
Southern shall provide to DYPM a non-binding schedule of Pre-Scheduled Excused
Hours for the next three (3) Contract Years.

(b) Pre-Scheduled Excused Hours for any Contract Year shall not exceed
[redacted]. If, however, during any Contract Year, Southern does not utilize its
allocation of Pre-Scheduled Excused Hours for that Contract Year, then the
unused portion of Pre-Scheduled Excused Hours (the "Banked Pre-Scheduled Excused
Hours") may be carried forward to the next succeeding Contract Year and may be
utilized by Southern in addition to the regular allotment of Pre-Scheduled
Excused Hours. The total of all available Pre-Scheduled Excused Hours available
to Southern during any Contract Year, including the hours that comprise Banked
Pre-Scheduled Excused Hours may not exceed [redacted]. Unless otherwise agreed
by the Operating Committee, Banked Pre-Scheduled Excused Hours may only be
utilized by Southern during a Contract Year in which utilization of such Banked
Pre-Scheduled Excused Hours is necessary for Southern, in Southern's
Commercially Reasonable judgment to comply with Prudent Industry Practices.

                  (c) In addition to Pre-Scheduled Excused Hours, Southern may
at any time request Maintenance Outage Hours during any Month of any Contract
Year. Southern shall request Maintenance Outage Hours at least twenty-four (24)
hours in advance. Such request shall identify the purpose for such maintenance
and the equipment and Contract Capacity that will not be available for
Scheduling and the proposed start time and duration for the Maintenance Outage
Hours. DYPM shall respond to Southern's request as soon as reasonably
practicable. Southern shall not take Maintenance Outage Hours without DYPM's
prior written consent, and such consent shall not be unreasonably withheld,
conditioned or delayed; provided, however, that the Parties acknowledge that it
shall be reasonable for DYPM to deny any request for Maintenance Outage Hours if
DYPM reasonably believes that it may Schedule the Facility to a level that would
require the availability of the equipment that is proposed to be unavailable
during the Maintenance Outage Hours. DYPM shall have the right to revoke its
consent to Maintenance Outage Hours if changed conditions require Scheduling of
the Contract Capacity to be unavailable during such Maintenance Outage Hours;
provided, however, that DYPM may only revoke its consent if it provides Southern
with notice of revocation at least twelve (12) hours prior to the scheduled
start of the Maintenance Outage Hours. In addition, if DYPM reasonably requests
Southern to return all or part of that portion of the Facility that is affected
by the Maintenance Outage Hours to full availability status, Southern shall
comply as soon as reasonably practical.

                  4.2.2 Accumulation of Pre-Scheduled Excused Hours. DYPM and
Southern shall include procedures with respect to the logging and record keeping
of actual Pre-Scheduled Excused Hours elapsed during any Month in the Operating
Procedures agreed upon pursuant to Section 4.4.

                  4.2.3 No Scheduling during Pre-Scheduled Excused Hours, Banked
Pre-Scheduled Excused Hours, or Maintenance Outage Hours. DYPM shall not have
the right to submit a Schedule during any Pre-Scheduled Excused Hours, Banked
Pre-Scheduled Excused Hours, or Maintenance Outage Hour.

                  4.2.4 No Operation during Pre-Scheduled Excused Hours, Banked
Pre-Scheduled Excused Hours, and Maintenance Outage Hours. DYPM and Southern
agree that Pre-Scheduled Excused Hours, Banked Pre-Scheduled Excused Hours, and
Maintenance Outage Hours are intended to encompass periods during which the
Facility is unavailable for Scheduling or operation by any Party. Therefore,
except to the extent Southern determines that the Facility can be partially
operated in accordance with Prudent Industry Practices (but subject to DYPM's
right to Schedule any Contract Capacity made partially available), Southern
shall not be permitted to operate the Facility during Pre-Scheduled Excused
Hours, Banked Pre-Scheduled Excused Hours, or Maintenance Outage Hours other
than testing and operations associated with the basis for such Pre-Scheduled
Excused Hours, Banked Pre-Scheduled Excused Hours, and Maintenance Outage Hours.

         4.3      Permits; Compliance with Laws.

                  4.3.1 Governmental Approvals. Subject to the right of Contest,
each Party shall, at its expense, acquire and maintain in effect all
Governmental Approvals necessary for it to perform its obligations under this
Agreement.

                  4.3.2 Compliance by Southern. Subject to the right of Contest,
Southern shall at all times comply with all Laws and Governmental Approvals
applicable to Southern and/or to the Facility necessary for Southern to perform
its obligations under this Agreement.

                  4.3.3 Compliance by DYPM and DMT. Subject to the right of
Contest, DYPM and DMT shall at all times comply with all Laws and Governmental
Approvals applicable to them necessary for DYPM and DMT to perform their
obligations under this Agreement.

         4.4      Operating Procedures and Operating Committee.

                  4.4.1 Operating Procedures. DYPM, DMT, and Southern shall
develop written Operating Procedures no later than thirty (30) Days before the
Effective Date of Service. The Operating Procedures shall establish the protocol
under which the Parties shall perform their respective responsibilities under
this Agreement, including method of Day-to-Day communications, key personnel
lists, coordinating fuel arrangements and operating procedures for Gas supply,
logging and tracking of hours of Unavailability, Pre-Scheduled Excused Hours,
Force Majeure Hours, ENDH Accumulated, Maintenance Outage Hours, hours of
Delivery Excuse, and daily capacity level and energy reports. The Operating
Procedures must also include a process for determining the amount of Contract
Capacity pursuant to Section 3.1.

                  4.4.2 Operating Committee. The Parties shall form a committee
to act in matters relating to the performance of their respective obligations
under this Agreement ("Operating Committee"). Each Party shall appoint one
representative and one alternate representative to serve on the Operating
Committee. The Parties shall notify each other in writing of such appointments
and any changes thereto. The Operating Committee shall have no authority to
modify the terms or conditions of this Agreement. The Operating Committee shall
meet as frequently as it deems necessary, and all of its decisions must be the
unanimous decision of the representatives. The Operating Committee may consult
with representatives of Southern Company Transmission as appropriate in reaching
its decisions.

                  4.4.3 Southern shall disclose to the Operating Committee any
condition or defect in or with respect to the Facility of which it is actually
aware and that may reasonably be expected to cause the Facility to be unable to
provide Scheduled Energy; provided, however, that the foregoing shall not be
construed to require Southern to make inspections of the Facility.

         4.5      Provision of Contract Capacity and Contract Energy.

                  4.5.1    Unavailability.

                  (a)      Notification.  Southern shall promptly notify DYPM
after  discovering  any  circumstance that could reasonably be expected to
result in an Unavailability.

                  (b)      Periods  of  Unavailability.  In  the  event  of an
Unavailability,  the  period  after commencement of such Unavailability shall
be divided into two distinct, contiguous periods:

          (i)  The  period  beginning  at  the  time  of the  occurrence  of the
     Unavailability  until the earlier of the removal of the  Unavailability  or
     2400 CPT of the Day in which such  occurrence  happens shall be referred to
     as the "Determination Period"; and

          (ii) The period  from the end of the  Determination  Period  until the
     removal of the Unavailability  shall be referred to as the "Extended Outage
     Period".

The four hour period immediately following the occurrence of an Unavailability
(which may include a portion of the Determination Period and/or the Extended
Outage Period) shall be referred to as the "Seller Election Period"; provided,
however, that if the Unavailability is resolved, the Seller Election Period
shall end at such time.

                  (c) Circumstances of Unavailability. With regard to any
Unavailability that results in an Extended Outage Period, as soon as practicable
after the commencement of such Extended Outage Period, Southern shall notify
DYPM of:

          (i) The cause (or if not known, Southern's best estimate of the cause)
     of the Unavailability;

          (ii) The proposed  corrective  action that can be taken by Southern to
     resolve the Unavailability; and

          (iii)  Southern's  best  estimate  of  the  expected  duration  of the
     Extended Outage Period.

In addition, Southern shall advise DYPM of any material information relating to
the cause, duration and resolution of an Unavailability as soon as practicable
after such information becomes known to Southern whether before or after the
commencement of an Extended Outage Period. Southern shall have an ongoing
obligation to keep DYPM advised as to any significant changes with respect to
the information provided pursuant to this subsection (c). Southern's estimate of
the duration of an Unavailability shall be based on the best information then
available to Southern. Southern shall promptly notify DYPM of any expected
changes in the period of the Unavailability and shall continue its investigation
in a Commercially Reasonable manner for the duration of such Unavailability.

(d) Obligations of Southern. Consistent with Prudent Industry Practices,
Southern shall use Commercially Reasonable Efforts to avoid Unavailability and
to minimize the duration of any Unavailability.

                  4.5.2    Southern Elections during an Unavailability.

          (a) Seller Election Period.  Within  [redacted] after the commencement
     of the Seller  Election  Period,  Southern  shall  provide  telephonic  (or
     acceptable  electronic) notice to DYPM of whether it will, to the extent of
     the Unavailability, either: [redacted].

Notwithstanding the occurrence of an Unavailability, [redacted]. Such action by
Southern during the Carry Period shall not constitute an election for purposes
of the Seller Election Period. Once made, however, such election shall apply for
the remainder of the Seller Election Period, with appropriate recognition for
Southern's actions (if any) during the Carry Period.

          (b) Determination  Period. Within [redacted] after the commencement of
     an  Unavailability,   Southern  shall,  for  each  Hour  Block  within  the
     Determination  Period  (but only for those hours not covered by an election
     in the Seller  Election  Period) and subject to Section  4.5.2(d),  provide
     telephonic (or acceptable  electronic) notice to DYPM (along with notice of
     the election for the first Day of the Extended Outage Period as required by
     Section 4.5.2(c)) of whether it will, to the extent of the  Unavailability,
     either: [redacted]

          (c) Extended Outage Period. For each Day of an Extended Outage Period,
     Southern  shall,  for each Hour Block  within  such Day (but only for those
     hours not covered by an election in the Seller Election Period) and subject
     to Section 4.5.2(d),  provide telephonic (or acceptable  electronic) notice
     to DYPM of whether it will,  to the extent of the  Unavailability,  either:
     [redacted]

Notice under this subsection (c) shall be provided by Southern no later than:
(i) for the first Day of the Extended Outage Period, the time that notice is
provided under Section 4.5.2(b); and (ii) for all other Days of the Extended
Outage Period, thirty (30) minutes after receipt of DYPM's Schedule for such Day
under Section 6.1 (but no earlier than 0800 CPT). In addition, upon the
commencement of the Extended Outage Period, Southern shall provide DYPM a
non-binding projection of its anticipated elections under this subsection (c)
for each Day of the expected duration of the Extended Outage Period.

(d)      Hour Block Elections.  [redacted]
         --------------------

                  (e)      Failure to Make Elections.  [redacted]
                           -------------------------

          (f) Schedule Changes during an Unavailability. For any hour of any Day
     during an  Unavailability,  if DYPM changes a Schedule provided pursuant to
     Section 6.1 after 0900 CPT of the previous Day so that Scheduled  Energy is
     greater in such hour than  contemplated  at 0900 CPT of such  previous  Day
     (such greater  amount being referred to as "Increased  Scheduled  Energy"),
     notwithstanding  any other provision of this Section 4.5.2,  Southern shall
     have the right,  by providing  telephonic  (or  electronic)  notice to DYPM
     [redacted] after Southern receives DYPM's notice of such change, to either:
     [redacted]. If Southern does not make an election under this subsection (f)
     for any hour,  Southern shall be deemed to have elected to cover  Increased
     Scheduled  Energy for such hour in the same  manner as its prior  elections
     under  Section  4.5.2(a),  (b) and (c).  An election  made by Southern  (or
     deemed to have been  made)  under this  subsection  (f) shall only apply to
     Increased  Scheduled  Energy and shall not alter  elections  for  Scheduled
     Energy made under Section 4.5.2(a), (b) and (c).

          (g) DYPM Right to Purchase  Undelivered  Energy.  With  respect to any
     Unavailability,  DYPM shall have the right to purchase  Undelivered  Energy
     using Commercially Reasonable Efforts [redacted].

          (h) Exclusive  Remedy.  Southern's  sole and  exclusive  liability and
     DYPM's sole and exclusive remedy for an Unavailability  shall be determined
     by the  election(s)  chosen (or deemed to have been  chosen) by Southern in
     accordance with this Section 4.5.2.

4.5.3    Performance in Accordance with Elections.

                  For any hour of an Unavailability, Southern shall be required
to [redacted], but only to the extent that DYPM has properly requested and is
entitled to receive Scheduled Energy for such hour in accordance with the terms
of this Agreement.

4.5.4    Calculation of Equivalent ENDH.

                  For any hour in which Southern [redacted].

4.5.5    Example Calculations.

                  To demonstrate the application of provisions related to
[redacted], example calculations are set forth in Appendix D.

4.5.6    Extended Unavailability.

                  [redacted].

                  4.5.7    Force Majeure Event.

(a) No Obligation to Deliver. For any hour in which a Force Majeure Event
affecting the Facility or the facilities up to and at the Interconnection
Point(s) is occurring or is continuing, to the extent that such event prevents
Southern from delivering Scheduled Energy, Southern shall not be obligated to
deliver, and DYPM shall not be entitled to receive, Scheduled Energy. In such
event, to the extent of such Force Majeure Event, Southern shall not be required
to make any of the elections under Section 4.5.2 [redacted].

(b)      Adjustment of Reservation Payment.  [redacted].
         ---------------------------------

4.5.8    Delivery Excuse.

                  (a) No Obligation to Deliver. For any hour in which a Delivery
Excuse is occurring or is continuing, to the extent of such Delivery Excuse,
Southern shall not be obligated to deliver, and DYPM shall not be entitled to
receive, Scheduled Energy. In such event, to the extent of the Delivery Excuse,
Southern shall not be required to make any of the elections under Section 4.5.2
and shall not be required to [redacted].

                  (b) Continuation of DYPM Obligations. DYPM shall not be
relieved of its performance obligations hereunder during a Delivery Excuse,
including its obligation to pay Southern the Reservation Payment, even if such
Delivery Excuse continues for the remainder of the Term.

4.5.9    Delivery from the Facility.

                  Under no circumstance shall Southern be permitted to
accumulate ENDH, claim an Unavailability, or claim a Force Majeure Event to the
extent Southern is able, in a manner that is consistent with Prudent Industry
Practices, to provide Scheduled Energy from the Facility as required hereunder.

                                    ARTICLE 5
                                    PAYMENTS

     5.1  Reservation  Payment.  Commencing on the Effective Date of Service and
for each Month of the Term, DYPM shall pay to Southern a Reservation Payment for
the Contract Capacity.  The Reservation Payments for each Month are set forth in
Appendix A.

     5.2 Energy  Payment.  Commencing on the  Effective  Date of Service and for
each Month of the Term, DYPM shall pay to Southern an Energy Payment. The Energy
Payment for each Month shall be equal to the product of: [redacted].

     5.3 Gas Payment, Fuel Purchase Payment, and Gas Reservation Payment.

          5.3.1  Commencing on the Effective  Date of Service and for each Month
     of the Term,  DYPM shall pay to Southern a Gas Payment equal to the sum of:
     [redacted].

          5.3.2  Commencing on the Effective  Date of Service and for each Month
     of the Term, Southern shall pay to DMT a Fuel Purchase Payment equal to the
     sum of [redacted].

          5.3.3  Commencing on the Effective  Date of Service and for each Month
     of the Term,  Southern shall pay to DMT a Monthly Gas  Reservation  Payment
     equal to [redacted].

          5.4 Initial  Dispatch  Payment.  Commencing on the  Effective  Date of
     Service  and for each  Month of the Term,  DYPM  shall pay to  Southern  an
     Initial  Dispatch  Payment equal to the sum of the Initial  Dispatch Prices
     during such Month. The Initial Dispatch Price shall equal [redacted].

          5.5 Performance Bonus. For the Term of this Agreement,  Southern shall
     receive a Summer  Performance Bonus and a Non-Summer  Performance Bonus, if
     applicable.

                  5.5.1    Summer Performance Bonus

                  The Summer Performance Bonus will be calculated based on the
Months of June through August of each Contract Year and shall be paid by DYPM to
Southern within thirty (30) Days after August 31 of each Contract Year. The
Summer Performance Bonus shall be calculated as follows:

         Summer
         Performance
         Bonus              [redacted]

         where:

         Summer PAF is the performance adjustment factor corresponding to the
         calculated summer delivery performance factor ("Summer DPF") set forth
         in the Table below:

------------------------------------------------ -------------------------
                  Summer DPF                            Summer PAF

[redacted]                                       [redacted]

[redacted]                                       [redacted]

[redacted]                                       [redacted]

[redacted]                                       [redacted]

         Summer DPF is computed as follows:

         Summer DPF = [redacted].

                  5.5.2    Non-Summer Performance Bonus

                  The Non-Summer Performance Bonus will be calculated based on
the Months of September through May of each Contract Year and shall be paid by
DYPM to Southern within thirty (30) Days after May 31 of each Contract Year. The
Non-Summer Performance Bonus shall be calculated as follows:

         Non-Summer
         Performance
         Bonus              [redacted]

         where:

         Non-Summer PAF is the performance adjustment factor corresponding to
         the calculated non-summer delivery performance factor ("Non-Summer
         DPF") set forth in the Table below:

 Non-Summer DPF                                Non-Summer PAF

[redacted]                                       [redacted]

[redacted]                                       [redacted]

[redacted]                                       [redacted]

[redacted]                                       [redacted]

[redacted]                                       [redacted]

[redacted]                                       [redacted]
--

         Non-Summer DPF is computed as follows:

         Non-Summer DPF = [redacted]

                           5.5.3 Notwithstanding the foregoing, the sum of the
         Summer Performance Bonus and the Non-Summer Performance Bonus shall not
         exceed [redacted] for any Contract Year.

         5.6      Additional  Payments.  In  addition  to the  payments
specified  in this  Section 5, the Parties shall pay all amounts due pursuant
to the other provisions of this Agreement.

5.7      Regulatory.

                  5.7.1 The Parties anticipate that this Agreement will be filed
with and accepted by FERC as a market based contract, and thus this Agreement
shall not be contingent on FERC acceptance. Having freely negotiated and agreed
upon the economic bargain among them as set forth hereunder and in the Other
Southern Agreement, Southern, DYPM, and DMT waive all rights under Sections 205
and 206 of the Federal Power Act to effect a change in the Agreement. Moreover,
it is the Parties' mutual intent that FERC be precluded, to the fullest extent
permitted by law, from altering this Agreement in any way. Notwithstanding the
foregoing, if at any time FERC takes some action that reduces the economic
benefit of this Agreement and the Other Southern Agreement to Southern as
contemplated on the Execution Date ("Original Economic Benefit"), Southern shall
be deemed to have retained rights under Section 205 to file for changes in the
Agreement, but only to the extent required to restore the Original Economic
Benefit.

                  5.7.2 Southern may exercise its Section 205 rights provided
under Section 5.7.1 if at any time it reasonably determines in its sole
discretion that the application of FERC's ratemaking practices and procedures
may support the restoration of some or all of the Original Economic Benefit.
Before exercising such rights, Southern shall negotiate with DYPM and/or DMT in
an effort to reach mutual agreement regarding amendments to this Agreement that
would restore some or all of the Original Economic Benefit. Southern shall file
any resulting amendments for acceptance by FERC, and DYPM and DMT shall actively
support such filing(s). If the Parties are unable to agree upon such
amendment(s), Southern shall be entitled to make unilateral filing(s) at FERC to
modify the Agreement in order to restore some or all of the Original Economic
Benefit. In this latter event, DYPM and DMT shall actively support Southern's
filing and its right to recover the Original Economic Benefit; however, DYPM and
DMT reserve the right to propose modifications based on a good faith belief that
such filing implements revisions that would exceed the Original Economic
Benefit.

                  5.7.3 Any amendment(s) or unilateral filing(s) contemplated
hereunder shall restore the Original Economic Benefit (or any allowed portion
thereof) for the remainder of the Term, including any portion of the Original
Economic Benefit associated with prior periods (with interest). Nothing in this
Agreement is intended to or shall restrict the number of times that Southern may
exercise the above-described Section 205 rights during the Term or within any
specific time frame.

               5.8 Wholesale  Generation  Rates. All payments  specified in this
          Article  5  are  the   unbundled   power  sales  rates  for  wholesale
          generation. Transmission related services are addressed in Article 7.

                                    ARTICLE 6
 SCHEDULING, SOUTHERN'S AND DYPM'S RIGHTS TO THE FACILITY, TITLE AND RISK OF
                                      LOSS

         6.1      Scheduling.

                  6.1.1 Daily Schedule. On each Business Day, Southern shall
inform DYPM before [redacted] of the amount of Contract Energy expected to be
available from the Facility (with and without power augmentation) for each hour
of the following Day that is a Business Day, and any intervening Day. DYPM shall
provide Southern its Schedule for each hour of each Day(s) on or before
[redacted] of the previous Business Day. Such Schedule shall be consistent with
the Scheduling Constraints and the terms of this Agreement. [redacted]. DYPM
shall be responsible for complying with all transmission reservation, scheduling
and tagging requirements (whether under the OATT or other industry scheduling
requirements or standards) associated with the delivery of Scheduled Energy at
and after the Delivery Point. All costs and expenses (including penalties)
associated with a Schedule and Scheduled Energy at and beyond the Delivery Point
shall be the sole responsibility of DYPM unless caused by Southern.

                  6.1.2 Delivery of Scheduled Energy. Subject to Southern's
elections (if any) in Section 4.5.2, Southern shall deliver Scheduled Energy to
the Delivery Point in accordance with DYPM's Schedule.

                  6.1.3    Schedule Limitation.  [redacted].

6.2      Replacement Resources Gas

                  6.2.1 Within [redacted] after receiving DYPM's Schedule for
the next Day under Section 6.1.1 (but no earlier than [redacted], Southern shall
notify DYPM (either telephonic or electronic) whether it will cover DYPM's
Schedule utilizing Replacement Resources. If Southern provides notice that it
will cover some portion (or all) of the Schedule with Replacement Resources,
within [redacted] after receiving such notice by Southern, DMT shall offer a
delivered price (in $/MMBTU) ("Replacement Gas Price") for the quantity of Gas
(in MMBTU) equal to: (A) the quantity of Gas (in MMBTU) that would be required
by the Facility to produce the sum of: (i) the Energy Output Level; (ii) energy
to be served by Replacement Resources which is the subject of the current
Southern election; and (iii) all previously established Replacement Energy
Blocks and Performance Energy Blocks still in effect for such hour(s); less (B)
the quantity of Gas (in MMBTU) required to produce (i) and (iii) (such
quantities to be determined utilizing Figure 2 of Appendix C with appropriate
recognition of ambient temperature and relative humidity levels at the
Facility). The difference calculated in the foregoing sentence shall be referred
to herein as Replacement Gas. Within [redacted] of receiving such price,
Southern shall then elect to: (i) treat the price offered by DMT as the
Replacement Gas Price (including for purposes of Section 5.3.1) and not require
DMT to deliver Replacement Gas; or (ii) treat the price offered by DMT as the
Replacement Gas Price (including for purposes of Section 5.3.1) and require DMT
to deliver Replacement Gas at alternate delivery points, provided that Southern
shall compensate DMT for the additional actual costs (if any) incurred to
deliver to such alternate points in lieu of delivery to the Facility. In the
case of (ii), Southern shall receive and purchase from DMT, and DMT shall supply
and sell to Southern, the Replacement Gas at the Replacement Gas Price, at such
alternate delivery point(s) specified by Southern (such transaction to be
performed pursuant to another contemporaneous agreement between the Parties).
DMT will use Commercially Reasonable Efforts to arrange for delivery to the
alternate delivery point(s); provided, however, that Southern bears the risk to
the extent the delivery arrangements associated with delivery to the Facility
are not adequate to arrange for deliveries to the alternate delivery point(s).

                  6.2.2 In the event that DYPM increases the amount of Scheduled
Energy (or submits a Schedule where none existed) (such increased amount being
referred to as the "Increased Scheduled Energy") for any hour after it has
submitted the Schedule for such hour pursuant to the second sentence of Section
6.1 (or after 0900 CPT if no Schedule was submitted), then Southern shall notify
DYPM (either telephonic or electronic) whether it will cover DYPM's Schedule
utilizing Replacement Resources. If Southern provides notice that it will cover
some portion (or all) of the Increased Scheduled Energy with Replacement
Resources, the Parties shall follow the procedures set forth in Section 6.2.1
with regard to establishing a Replacement Gas Price, determining quantity(ies)
of Replacement Gas and, if required by Southern, accomplishing the delivery of
Replacement Gas by DMT to alternate delivery point(s); provided, however, the
Operating Committee shall establish the pertinent time frames for communications
of the Parties in this regard.

                  6.2.3 In the event that DYPM decreases the amount of Scheduled
Energy for any hour in which Southern has previously notified DYPM that it will
provide some portion of Scheduled Energy from Replacement Resources, and to the
extent that Southern determines (consistent with Scheduling Constraints and the
terms of this Agreement) that the requested decrease will not be accommodated by
lowering the output of the Facility, Southern shall decrease the amount of
Scheduled Energy provided from Replacement Resources (the amount of such
decrease from Replacement Resources being referred to as the "Decreased
Replacement Energy"). Southern shall propose to DYPM a delivered price (in
$/MMBTU) ("Decreased Replacement Gas Price) for the amount of Gas (in MMBTU)
that would have been required for the Decreased Replacement Energy amount at the
Facility (such amount to be determined utilizing Figure 2 of Appendix C with
appropriate recognition of ambient temperature and relative humidity levels at
the Facility and being referred to herein as "Decreased Replacement Gas")
assuming the entire amount of Scheduled Energy and energy associated with the
Reserved Capacity scheduled under the Other Southern Agreement was to be
produced at the Facility (including the Decreased Replacement Energy). After
receiving such price, DYPM shall then elect to: (i) treat the price offered by
Southern as the Decreased Replacement Gas Price and not require Southern to
deliver Decreased Replacement Gas; or (ii) treat the price offered by Southern
as the Decreased Replacement Gas Price and require Southern to deliver Decreased
Replacement Gas at alternate delivery points, provided that DYPM shall
compensate Southern for the additional actual costs (if any) incurred to deliver
Decreased Replacement Gas to such alternate delivery points in lieu of delivery
to the Facility. In the case of (ii), DYPM shall receive and purchase from
Southern, and Southern shall supply and sell to DYPM, the Decreased Replacement
Gas at the Decreased Replacement Gas Price, at such alternate delivery point(s)
specified by DYPM (such transaction to be performed pursuant to another
contemporaneous agreement between the Parties). Southern will use Commercially
Reasonable Efforts to arrange for delivery to the alternate delivery point(s);
provided, however, that DYPM bears the risk to the extent the delivery
arrangements associated with delivery to the Facility are not adequate to
arrange for deliveries to the alternate delivery point(s). In addition, the
Parties shall calculate a Replacement Gas Adjustment. The Replacement Gas
Adjustment shall equal the product of: (i) the Replacement Gas Price less the
Decreased Replacement Gas Price; and (ii) the Decreased Replacement Gas. If the
Replacement Gas Adjustment is positive, then DYPM shall owe such amount to
Southern. If the Replacement Gas Adjustment is negative, then Southern shall owe
the absolute value of such amount to DYPM. In the event that there are multiple
Replacement Gas Prices applicable to multiple Replacement Gas quantities for any
hour (pursuant to Section 6.2.1 and 6.2.2), for the purposes of calculating the
Replacement Gas Adjustment, the Replacement Gas Price(s) shall be utilized in
the order they were established until the entire quantity of Decreased
Replacement Gas is satisfied with corresponding quantities of Replacement Gas.
The Operating Committee shall establish the pertinent time frames for
communications of the Parties under this Section 6.2.3.

                6.2.4 In the event that Southern elects to pay Performance
Payments for any hour pursuant to Section 4.5.2, the Parties shall follow
procedures consistent with those set forth in Section 6.2.1 and/or Section 6.2.2
in order to establish a Replacement Gas Price for calculating the applicable
Hourly Performance Payment Gas Cost under Section 8.13.3 and, if required by
Southern, accomplishing the delivery of Replacement Gas by DMT to alternate
delivery point(s); provided, however, the Operating Committee shall establish
the pertinent time frames for communications of the Parties in this regard. Any
decreases in Scheduled Energy covered by Performance Payments shall be treated
consistent with Section 6.2.3.

         6.3 Southern's Rights to the Facility. During any time for which DYPM
has not submitted (or is not permitted to submit) a Schedule or during any time
when Scheduled Energy is being provided from Replacement Resources, Southern
shall have the right to dispatch the Facility for its own purposes to the extent
not Scheduled (or permitted to be Scheduled) or Scheduled Energy is not provided
from the Facility, including for the purpose of supplying energy to third
parties. Any Schedule provided by DYPM in accordance with the terms of this
Agreement (including Section 6.1) shall have priority over Southern's dispatch.

                  6.4 Title and Risk of Loss. Southern shall be deemed to be in
exclusive control of the Scheduled Energy prior to the Delivery Point. DYPM
shall be deemed to be in exclusive control of the Scheduled Energy at and after
the Delivery Point. Custody, title and risk of loss of Contract Capacity and
Scheduled Energy shall transfer from Southern to DYPM at the Delivery Point.

         6.5      Provision of Committed Capacity.

                  6.5.1    [redacted].

                  6.5.2    [redacted].

                  6.5.3    [redacted].

                  6.5.4    [redacted].

                  6.5.5    [redacted].

                  6.5.6    [redacted].

                                    ARTICLE 7
                              TRANSMISSION SERVICE

         7.1 DYPM Obligations and Assumption of Transmission Risk. DYPM, or its
designee, shall arrange, obtain, contract, and pay for any and all transmission
service and ancillary services required (including service under the OATT) to
deliver the Contract Capacity and Scheduled Energy (and any other energy
hereunder) from and beyond the Delivery Point. During transmission curtailments,
Southern will cooperate to assist DYPM in modifying deliveries of Scheduled
Energy with less restrictive notice provisions than those set forth in Article
6; provided, however, Southern shall have no liability or obligation to the
extent it does not allow DYPM to deviate from such notice requirements.
Notwithstanding anything set forth in Section 7.2, Section 7.4 or elsewhere to
the contrary, it is DYPM's sole and exclusive responsibility at all times to
arrange, obtain, contract and pay for any and all transmission and ancillary
services required to deliver any energy hereunder from and beyond the Delivery
Point. DYPM assumes all risk associated with the availability, adequacy and cost
of such transmission service and ancillary services.

         7.2 Southern Obligations. Southern, or its designee, shall arrange,
obtain, contract, and pay for any transmission service required to deliver
Contract Capacity and Scheduled Energy (whether from the Facility or Replacement
Resources) to the Delivery Point. Southern will also be responsible for securing
and maintaining an Interconnection Agreement with the applicable transmission
provider that allows Southern to deliver Scheduled Energy to the Interconnection
Point up to the Energy Output Level. Southern shall not form or permit to be
formed, a "control area" or a similar arrangement with respect to the Facility,
without the prior written consent of DYPM, which consent shall not be
unreasonably withheld.

         7.3 Imbalances and Penalties. Any penalties or imbalances resulting
from actions or inactions of DYPM or DMT (or any third party to which DYPM may
be supplying the capacity and energy provided hereunder) will be the
responsibility of DYPM and/or DMT. Any penalties or imbalances resulting from
actions or inactions of Southern will be the responsibility of Southern.

         7.4      Optional System Upgrades.

                  7.4.1 As soon as practicable, Southern shall provide DYPM the
final System Impact Study (as defined in the OATT) performed by Southern Company
Transmission in connection with the interconnection of the Facility to the
Southern Company Transmission System. Within ten (10) Days after the System
Impact Study is provided to DYPM, DYPM shall notify Southern ("Study Notice")
whether it desires Southern Company Transmission to conduct a Facilities Study
(as defined in the OATT) in order to identify Optional System Upgrades and the
costs of such Optional System Upgrades. DYPM's Study Notice shall specifically
identify those transmission constraints which DYPM desires the Optional System
Upgrades to address. If DYPM does not provide the Study Notice within ten (10)
Days after the System Impact Study is provided, DYPM shall be deemed to have
decided not to pursue any Optional System Upgrades and the other provisions of
this Section 7.4 shall not apply. DYPM shall be responsible for all costs and
expenses charged to Southern by Southern Company Transmission in connection with
the study of Optional System Upgrades. DYPM shall reimburse Southern for such
costs and expenses (with interest) within ten (10) Days after receiving an
invoice from Southern for the same.

                  7.4.2 As soon as practicable, Southern shall provide DYPM all
portions of the final Facilities Study performed by Southern Company
Transmission that address Optional System Upgrades. Within fifteen (15) Days
after such Facilities Study is provided, DYPM shall notify Southern ("Facilities
Notice") of the Optional System Upgrades that it desires to have constructed. If
DYPM does not provide the Facilities Notice within such fifteen (15) Day period,
DYPM shall be deemed to have decided not to pursue any Optional System Upgrades
and the other provisions of this Section 7.4 shall not apply. If the Facilities
Notice indicates that DYPM desires to have Optional System Upgrades constructed,
Southern shall utilize Commercially Reasonable best efforts in order to include
the relevant Optional System Upgrades in the Interconnection Agreement or some
other agreement as determined by Southern; provided, however, Southern shall
have no liability or obligation to DYPM if Southern Company Transmission
determines that Optional System Upgrades cannot be included in the
Interconnection Agreement or another agreement.

7.4.3 During the course of Southern's negotiation of the Interconnection
Agreement (or other pertinent agreement), Southern shall consult with DYPM to
ensure that the scope of the Optional System Upgrades and estimated timing for
construction of upgrades included in such agreement is consistent with the
desires of DYPM relative to such upgrades. Southern shall also consult with DYPM
regarding DYPM's desired payment schedule for the costs of Optional System
Upgrades and will, to the extent possible, negotiate the Interconnection
Agreement (or other agreement) so that it reflects the desired payment schedule.
DYPM acknowledges, however, that the schedule of payments for and the timing for
construction and operation of Optional System Upgrades are outside the control
of Southern and will be determined solely by Southern Company Transmission.
Southern shall have no liability or obligation to DYPM with respect to the cost
of Optional System Upgrades (including any costs of such upgrades that exceed
projected costs under the Interconnection Agreement) or the timing for the
construction and operation of such upgrades (including any delays beyond any
dates set forth in the Interconnection Agreement for construction and operation
of such upgrades). DYPM expressly assumes all risk associated with delays and
cost overruns in connection with Optional System Upgrades.

                  7.4.4 Prior to executing an Interconnection Agreement that
includes provisions with respect to Optional System Upgrades desired by DYPM
under this Section 7.4, Southern shall first obtain DYPM's approval of those
provisions of the Interconnection Agreement relating to Optional System Upgrades
and related payment requirements. Southern shall, however, be entitled to
execute at any time an Interconnection Agreement that does not contain
provisions addressing Optional System Upgrades; provided, however, that Southern
shall provide DYPM fifteen (15) Days prior notice before it executes such an
Interconnection Agreement.

                  7.4.5 DYPM shall pay to Southern (for payment to Southern
Company Transmission, or reimburse Southern if Southern shall have paid) all
amounts required to be paid for Optional System Upgrades pursuant to the
Interconnection Agreement or other pertinent agreement (including any amounts in
excess of projected costs for such upgrades). DYPM shall pay Southern such
amounts at least ten (10) Business Days prior to the time that corresponding
payments are required to be made under the Interconnection Agreement (or other
agreement). To the extent that DYPM pays for Optional System Upgrades under the
Interconnection Agreement (or other agreement), Southern shall transfer to DYPM
any transmission credits that Southern receives with respect to such payments
(excluding any credits received with respect to other facilities under the
Interconnection Agreement). As currently contemplated by the OATT, such credits
would effectively represent a right on the part of the Southern to be reimbursed
for the costs of Optional System Upgrades as transmission service from the
Facility is reserved or taken. Such reimbursement may take the form of an offset
to payments otherwise owed to Southern Company Transmission by Southern.
Southern shall transfer such credits to DYPM as they are received from Southern
Company Transmission (including any interest that Southern may receive from
Southern Company Transmission in connection with such credits).

                                    ARTICLE 8
                  GAS DELIVERY OBLIGATIONS AND GAS ARRANGEMENTS

         8.1 DMT Obligations. DMT shall deliver the Gas Requirements to Southern
at the Gas Delivery Point. DMT shall deliver Replacement Gas pursuant to Section
6.2 at the Alternate Gas Delivery Point(s). DMT shall make any and all Gas
Nominations required for the delivery of the Gas hereunder to the Gas Delivery
Point and Alternate Gas Delivery Point(s). DMT shall not be obligated to deliver
Gas in excess of the Gas Requirements, except as may be required under Section
6.2. DMT's obligation to supply Gas hereunder shall commence upon the Effective
Date of Service and shall continue until the end of the Term.

               8.2 Southern Obligations. Southern shall purchase and receive the
          Gas  Requirements  from DMT at the Gas Delivery Point.  Southern shall
          purchase  and receive  Replacement  Gas pursuant to Section 6.2 at the
          Alternate Gas Delivery Point(s).

               8.3 Transportation Obligations.  DMT shall be solely responsible,
          at its  sole  cost  and  expense,  for  procuring  all  transportation
          capacity from the applicable  Transporter(s)  required to deliver: (i)
          the Gas  Requirements to the Gas Delivery Point;  and (ii) Replacement
          Gas under  Section 6.2 to the  Alternate  Gas Delivery  Point(s).  DMT
          shall bear all costs and expenses in  connection  with the delivery of
          Gas  hereunder  prior  to and at the Gas  Delivery  Point  and/or  the
          Alternate Gas Delivery Point(s).  Under no circumstance shall Southern
          have any  obligation to obtain or pay for  transportation  capacity in
          order  to  deliver  Gas  hereunder  to the Gas  Delivery  Point or the
          Alternate Gas Delivery  Point(s)  (except for those costs Southern has
          expressly agreed to bear under Section 6.2).

         8.4      Pipeline Imbalance Charges.

                  8.4.1 The Parties acknowledge that due to normal operating
characteristics and efficiencies of the Facility, imbalances between the
quantities of Gas nominated by DMT hereunder and the Gas Requirements will occur
and cannot be avoided. Such imbalances will result from, among other things, the
variation of the Facility's heat rate on a Day to Day and an hourly basis.

                  8.4.2 Notwithstanding any other provision contained herein or
elsewhere, but subject to Section 8.4.3 below, [redacted].

                  8.4.3    [redacted].

                  8.4.4    Subject to Section 8.4.3, [redacted].

         8.5 Gas Nominations Responsibility. DMT shall be responsible for making
all Gas Nominations with the applicable Transporters upstream of and to the Gas
Delivery Point and Alternate Gas Delivery Point(s). DMT shall provide Southern
any information that a Transporter may require from Southern. DMT shall nominate
quantities of Gas sufficient to produce the Energy Output Level. Variances
between the nominated quantities and quantities required to produce the Energy
Output Level as determined utilizing Figure 2 of Appendix C (with appropriate
recognition of ambient temperature and relative humidity levels at the Facility)
may be permitted so long as the variances are consistent with the Transporter's
then current application of the Gas Tariff. To the extent that Southern, as
delivery point operator at the Gas Delivery Point, is requested by the
Transporter to conform nominated quantities to actual deliveries at the Gas
Delivery Point during any given period, DMT and/or DYPM shall conform its
nominated quantities to the Gas Requirements for such period (which, if
necessary, shall include altering the Energy Output Level).

         8.6 Title. Title to all Gas delivered by DMT under this Agreement shall
pass to Southern at the Gas Delivery Point and/or the Alternate Gas Delivery
Point(s). DMT shall be deemed to be in exclusive control and possession of the
Gas delivered hereunder prior to and at the Gas Delivery Point and/or the
Alternate Gas Delivery Point(s). Southern shall be deemed to be in exclusive
control and possession of Gas delivered hereunder after the Gas Delivery Point
and/or the Alternate Gas Delivery Point(s).

         8.7 Specifications. Gas delivered by DMT shall meet or exceed the
minimum quality specifications of the applicable Transporter(s). Gas delivered
by DMT shall be delivered at pressures sufficient to cause such Gas to enter the
applicable facilities at the Gas Delivery Point and/or the Alternate Gas
Delivery Point(s), but not below the minimum allowable or above the maximum
allowable operating pressure specified by the Transporter(s). Gas provided by
DMT hereunder shall be free from contamination and shall conform to the Gas
Tariff specifications. If any Gas delivered by DMT shall fail to conform to the
requirements of this Section 8.7 ("Non-Conforming Gas"), Southern shall be
entitled, in its sole discretion, to refuse to accept the delivered quantities.
In such event, DMT will be deemed to have failed to perform its obligation to
deliver Gas hereunder. To the extent that Southern incurs damages, costs and/or
expenses as a result of its receipt of Non-Conforming Gas, notwithstanding the
reason for or any third party responsibility for such Non-Conforming Gas, DMT
shall reimburse Southern for such damages, costs and/or expenses within
[redacted] after receiving an invoice from Southern for the same. DMT shall be
solely responsible for making any claims against or seeking indemnification from
a Transporter for any such damages, costs and/or expenses it pays hereunder.

         8.8      Gas Metering.

                  8.8.1 To the maximum extent possible and subject to the
capabilities of the Gas Metering Equipment, Gas delivered by DMT hereunder shall
be measured at the Gas Delivery Point on a continuous real-time basis. The Gas
Metering Equipment shall be used to determine the quantity of Gas delivered at
the Gas Delivery Point. Facility Metering Equipment may be installed at the
Facility to monitor consumption (on a continuous real time basis) of Gas at the
Facility.

                  8.8.2 Southern shall be responsible for performing, or causing
to be performed, and shall bear all costs and expenses of the installation,
maintenance, repair, testing and initial calibration of the Gas Metering
Equipment and the Facility Metering Equipment (to the extent not otherwise
installed, maintained, tested and calibrated by the Transporter or other third
party). DMT shall reimburse Southern for up to [redacted] in costs and expenses
incurred by Southern to install the Facility Metering Equipment within
[redacted] after receipt of an invoice from Southern for the same.

                  8.8.3. Southern will cooperate with DMT in order to permit
DMT, at DMT's sole cost and expense, to either install electronic access to Gas
Metering Equipment and Facility Metering Equipment, or to install DMT's own
real-time meters downstream of the Gas Metering Equipment.

                  8.8.4 The Operating Committee shall establish procedures to
ensure the accuracy of the Gas Metering Equipment and the Facility Metering
Equipment.

               8.9 Hourly Southern Gas Costs. For each hour, Hourly Southern Gas
          Costs shall be calculated.  The Hourly  Southern Gas Costs shall equal
          [redacted].

               8.10 Operating Procedures.  The Operating Committee shall develop
          any other Gas Nominations and operating procedures to apply under this
          Agreement.

         8.11     Obligations with Respect to Gas.

                  8.11.1 DMT is responsible for procuring and supplying all Gas
required to produce the Energy Output Level and as otherwise required by this
Agreement.

                  8.11.2 In the event of and for the duration of a Delivery
Excuse under Section 16.1, Southern shall have no obligation to procure any
portion of the Gas supply, or make any substitute arrangement, in order for the
Facility to produce any portion of the Energy Output Level, even if such
Delivery Excuse lasts for the duration of the Term. Southern may, however,
procure Gas in order to produce energy from the Facility for its own purposes,
including for sale to third parties.

         8.12     Determination of DYPM Gas Costs.

                  8.12.1 For each hour the Facility produces energy or is
ramping up or down, the Hourly DYPM Gas Costs shall be calculated as follows:

                  Hourly DYPM Gas Costs = [redacted]

                  Where:

                  Adjusted Gas
                  Volume
                  (in MMBTU) =                   [redacted]

                  Actual Gas
                  Volume =                       [redacted]

                  Reserved Capacity
                  Gas =                          [redacted]

                  Reserved
                  Capacity Energy =              [redacted]

                  Southern Gas
                  Consumed =                     [redacted]

                  Gas Index =                     [redacted].

                  8.12.2   [redacted].

               8.13 Determination of Replacement  Resources Gas Costs and Hourly
          Performance Payment Gas Cost.

                  8.13.1 For each hour that Southern provides some portion of
Scheduled Energy and/or energy associated with Reserved Capacity [redacted]:

                  Hourly Replacement
                  Resources Gas Costs
                  ($) =                              [redacted]

                  Where:

                  Replacement Energy
                  Block =                            [redacted]

                  Replacement Gas
                  Costs =                            [redacted]

                  Replacement Gas
                  Price =                            [redacted]

                  Replacement
                  Resources
                  Gas =                              [redacted]

                  8.13.2   [redacted].

                  8.13.3 For each hour that Southern elects to pay Performance
Payments pursuant to Section 4.5.2 and/or in connection with energy associated
with the Reserved Capacity, an Hourly Performance Payment Gas Cost shall be
calculated as follows:

                  Hourly Performance
                  Payment Gas Cost
                  ($) =                              [redacted]

                  Where:

                  Performance Energy
                  Block =                            [redacted]

                  Performance Gas
                  Costs =                            [redacted].

                  Replacement Gas Price =            [redacted].

                  Performance Gas =                  [redacted]

                  8.13.4 It is the intent of the Parties that all Gas volumes
calculated under this Section 8.13 associated with energy not delivered from the
Facility shall be determined as if such energy was produced by the Facility
incremental to (i.e., above) the Energy Output Level in the relevant period (as
determined pursuant to Figure 1 of Appendix C).

               8.14 Initial Performance  Target.  Southern does not guarantee or
          warrant  that the  Initial  Heat  Rate of the  Facility  will meet the
          Initial  Performance  Target.  Nevertheless,  in the event the Initial
          Performance Target is not met and [redacted]

         8.15 Degradation of Initial Heat Rate. The Parties acknowledge that the
Facility may experience an increase in the Initial Heat Rate over time due to
normal operations. In the event DYPM believes the Initial Heat Rate of the
Facility has increased by more than the Maximum Allowable Degradation, DYPM may
require Southern to perform a Heat Rate Test. DYPM may request a Heat Rate Test
no more frequently than once every [redacted]. The cost of Heat Rate Tests will
be paid by DYPM if the results of the Heat Rate Test ("Tested Heat Rate") reveal
a Tested Heat Rate below the Initial Heat Rate plus the Maximum Allowable
Degradation and by Southern if the Tested Heat Rate exceeds the sum of the
Initial Heat Rate plus the Maximum Allowable Degradation. Upon completion of a
Heat Rate Test, if the Tested Heat Rate is greater than the Initial Heat Rate
plus the Maximum Allowable Degradation, DYPM shall be compensated in accordance
with the calculation set forth below for the increased heat rate degradation
based on the amount by which the Tested Heat Rate exceeds the sum of the Initial
Heat Rate plus the Maximum Allowable Degradation. The compensation shall begin
on the date that DYPM requested the Heat Rate Test revealing the excessive
degradation and shall continue until such time as Southern conducts a subsequent
Heat Rate Test and establishes a new Tested Heat Rate, which Heat Rate Test
shall be conducted at Southern's expense. If the new Tested Heat Rate is less
than the Initial Heat Rate plus the Maximum Allowable Degradation, Southern
shall no longer be required to compensate DYPM as described below. If the new
Tested Heat Rate is greater than the Initial Heat Rate plus the Maximum
Allowable Degradation, Southern shall continue to compensate DYPM in accordance
with the formula set forth below; provided, however, such compensation shall be
revised based on the new Tested Heat Rate. The Monthly Heat Rate Compensation
shall be calculated using the formulas below for each Billing Month:

         MHRC = [redacted]

         where:

         MHRC              = [redacted]
                           = [redacted].

         MAGV              = [redacted]
                           = [redacted].

         Fuel Cost         = [redacted].

         If the period of calculation for the Monthly Heat Rate Compensation
         includes a partial Billing Month, all values used in said calculations
         will include only the Days of the Billing Month which are subject to
         the Monthly Heat Rate Compensation.

         8.16 Ramping Gas and Energy. Appendix C includes tables indicating the
amount of Gas required, expected duration, megawatt hours produced, and time
required for a Cold Start, Warm Start, Hot Start, and the termination of energy
deliveries pursuant to a Schedule. DMT shall be responsible for procuring and
supplying all Gas required to ramp the Facility up and down to produce the
Energy Output Level. DYPM shall receive and accept at the Interconnection Point
all energy produced by the Facility during ramping in connection with the Energy
Output Level. Ramp energy shall not be deemed to be Scheduled Energy under this
Agreement. Southern shall have no liability or obligation with respect to ramp
energy (or the failure to provide such energy). In addition, Southern shall not
be required to make any elections under Section 4.5.2 with respect to ramp
energy and shall not be required to deliver such energy from Replacement
Resources, accumulate ENDH or pay Performance Payments with respect to such
energy.

                                    ARTICLE 9
                                ELECTRIC METERING

         9.1      Metering.

                  9.1.1 To the maximum extent possible given the capabilities of
the Electric Metering Equipment, the Energy Output Levels shall be metered at
the Delivery Point on a continuous real-time basis (or elsewhere as corrected to
the Delivery Point based on agreed upon industry standard loss compensation
mechanisms to be determined by the Operating Committee). The Electric Metering
Equipment shall be used to determine conclusively, subject to Section 9.4, the
Energy Output Level at the Delivery Point.

                  9.1.2 Southern shall be responsible for performing, or causing
to be performed, and shall bear all costs and expenses of the installation,
maintenance, testing and initial calibration of the Electric Metering Equipment
and the maintenance and testing of the electrical facilities and Protective
Apparatus, including any transmission equipment and related facilities,
necessary to interconnect the Facility at the Interconnection Point. All
Electric Metering Equipment must conform to the requirements of Southern Company
Transmission.

                  9.1.3 Southern will work with DYPM to permit DYPM, at DYPM's
expense, either to install electronic access to the existing real-time electric
meters or to install DYPM's own real-time meters.

                  9.1.4 Energy delivered to an Alternate Delivery Point as
provided in this Agreement shall be measured in accordance with Prudent Industry
Practices.

         9.2 Industry Standards. All Electric Metering Equipment, whether owned
by Southern or by a third party, shall be operated, maintained and tested by
and/or on behalf of Southern in accordance with Prudent Industry Practices.

         9.3 Access. Each Party shall have the right to receive reasonable
advance notice with respect to, and to be present at the time of, any
installing, changing, repairing, inspecting, testing, calibrating or adjusting
of Electric Metering Equipment irrespective of whether such Electric Metering
Equipment is owned or operated by Southern or by a third party. Upon reasonable
advance notice, Southern shall make available to DYPM all data, records and
charts relating to the Electric Metering Equipment, together with measurements
and calculations therefrom, for inspection and verification.

         9.4 Calibration. Southern at its sole cost and expense shall inspect
and calibrate, or cause to be inspected and calibrated, all Electric Metering
Equipment periodically, but not less frequently than as required by Southern
Company Transmission, or if not specified in the Interconnection Agreement, in
accordance with Prudent Industry Practices.

         9.5 Records. The Parties shall maintain accurate and detailed records
relating to the hourly Energy Output Level for three years or for such longer
period as may be required by FERC or an applicable Government Agency. All
records shall be available for inspection by either Party upon reasonable
notice.

         9.6 Meter Errors. If the Electric Metering Equipment fails to register,
or if the measurement made by a metering device is found upon testing to vary by
more than the variance permitted under the Interconnection Agreement from the
measurement made by the standard meter used in the test, an adjustment shall be
made correcting all measurements of energy made by the Electric Metering
Equipment during: (i) the actual period when inaccurate measurements were made,
if that period can be determined to the mutual satisfaction of the Parties; or
(ii) if such actual period cannot be determined to the mutual satisfaction of
the Parties, the latter half of the period from the date of the last test of the
Electric Metering Equipment to the data such failure is discovered or such test
is made (each being an "Adjustment Period"). If the Parties are unable to agree
on the amount of the adjustment to be applied to the Adjustment Period, the
amount of the adjustment shall be determined: (i) by correcting the error if the
percentage of error is ascertainable by calibration, tests or mathematical
calculation; or (ii) if not so ascertainable, by estimating on the basis of
deliveries under similar conditions during the period since the last test. If a
discrepancy is discovered for an Adjustment Period between the quantities of
Delivered Energy and the measured quantities of the Electric Metering Equipment,
then unless physical (and corresponding financial) discrepancies between such
quantities have been previously resolved through reconciliation provisions
imposed by the applicable transmission provider or through other controlling
true-up mechanisms separate from this Agreement governing the generation and
delivery of energy from the Facility, within thirty (30) Days after the
determination of the amount of any necessary adjustment under this Section 9.6,
DYPM shall pay Southern any additional amounts then due for deliveries of
Scheduled Energy during the Adjustment Period or DYPM shall be entitled to a
credit against any subsequent payments for Schedule Energy, as the case may be.

     9.7 Subject to Interconnection  Agreement. The application of the provision
in this  Article 9 shall be subject  to all of the  pertinent  requirements  and
limitations of the Interconnection Agreement.

                                   ARTICLE 10
                               BILLING AND PAYMENT

         10.1 Timing; Method of Payment. The billing Party will submit to the
other Party, as promptly as practicable after the first of each Billing Month,
an invoice (by mail, facsimile or electronic means) for transactions and the
amounts due under the terms of this Agreement for the preceding Month. Bills for
each Billing Month shall be due and payable on the tenth (10th) Day after the
Day on which the billed Party receives the invoice, unless otherwise agreed.
Payment shall be made, on or before the due date, to the billing Party in
accordance with the invoice in immediately available funds through wire
transfer, or other mutually agreeable method.

         10.2 Late Payment. Amounts that are owed by a Party shall, if not
remitted within the time period specified under Section 10.1, be subject to a
late payment charge equal to the interest calculated pursuant to Section 20.8,
accrued and payable on a monthly basis with respect to the unpaid amount. Such
late payment charge shall accrue from the due date of such amount until the date
on which it is paid.

         10.3     Disputed Billings.   [redacted]

         10.4 Adjustments. If any overcharge or undercharge in any form
whatsoever shall at any time be found and the invoice therefor has been paid,
the Party that has been paid the overcharge shall refund the amount of the
overcharge to the other Party, and the Party that has been undercharged shall
pay the amount of the undercharge to the other Party, within thirty (30) Days
after final determination thereof; provided, however, that no retroactive
adjustment shall be made for any overcharge or undercharge unless written notice
of the same is provided to the other Party within a period of twenty-four (24)
Months from the date of the invoice in which such overcharge or undercharge was
first included. Any such adjustments shall be made with interest calculated in
accordance with Section 20.8 from the date that the undercharge or overcharge
actually occurred.

         10.5 Audit Rights. The Parties shall keep complete and accurate
records, meter readings and memoranda of their operations under this Agreement
and shall maintain such data for a period of at least two (2) years after the
completion of each Billing Month hereunder; provided, however, records relating
to a disputed matter shall be retained until the dispute is resolved. Such
records shall be available for inspection and audit by the other Party upon
reasonable request and during a regular Business Day.

                                   ARTICLE 11
                                  CHANGE IN LAW

         11.1 Limitations. The Parties acknowledge that during the Term of this
Agreement, Changes in Law that increase Southern's cost of providing capacity
and/or energy hereunder could occur. During the Term, Southern will be
responsible for up to a total of [redacted] of Increased Generation Costs ("Cost
Threshold"). Notwithstanding the foregoing, any Increased Generation Costs in
any Contract Year in excess of [redacted] will be paid by DYPM through an
additional payment or surcharge (the "Change in Law Surcharge"). Once Southern
has incurred Increased Generation Costs up to the Cost Threshold, DYPM shall pay
for all Increased Generation Costs through the Change in Law Surcharge, as
provided below. In lieu of the Change in Law Surcharge, the Parties may agree on
other payment mechanisms whereby DYPM shall pay for Increased Generation Costs.
Alternatively, the Parties may mutually agree on certain reductions in DYPM's
rights to purchase Contract Capacity and Scheduled Energy in lieu of payment of
Increased Generation Costs.

         11.2     Determination.   [redacted].

         11.3 Initiation of Surcharge. In the event that total Increased
Generation Costs for any Contract Year will exceed [redacted], or if the Cost
Threshold will be exceeded, Southern shall provide DYPM with written notice of a
proposed Change in Law Surcharge. No earlier than [redacted] thereafter,
Southern may initiate the Change in Law Surcharge consistent with such notice.
For purposes of developing the Change in Law Surcharge, appropriate proration
shall be made to reflect any uprates under Section 3.1.4 that DYPM elected not
to purchase and to which Southern is entitled to utilize.

         11.4     Timing.   [redacted].

     11.5 Contest and Dialogue.  [redacted].  Whenever either Party  anticipates
the possibility of a Change in Law, it may request  meeting(s) to engage in open
dialogue with the other to exchange ideas regarding potential courses of action.

                                   ARTICLE 12
                 LIABILITY ALLOCATION; LIMITATIONS ON LIABILITY

         12.1 Costs, Taxes and Charges. Except as otherwise provided in this
   Agreement, in addition to all other amounts due and payable under this
   Agreement: (i) Southern shall be responsible for all costs, Taxes, and
   charges of any kind relating to the delivery of energy, capacity,
   transmission, and/or related services prior to the Delivery Point (by way of
   clarification of the foregoing, Taxes prior to the Delivery Point include: ad
   valorem taxes on the Facility; income taxes on Southern or its property; and
   taxes on payments made to Southern under this Agreement); and (ii) DYPM shall
   be responsible for all costs, Taxes, and charges of any kind relating to the
   delivery of energy, capacity, transmission, and/or related services at and
   after the Delivery Point (by way of clarification of the foregoing, Taxes at
   and after the Delivery Point include: income taxes on DYPM or its property,
   and any taxes incurred in connection with downstream sales of the Scheduled
   Energy). Each Party shall provide the other Party upon written request a
   certificate of exemption or other reasonably satisfactory evidence of
   exemption if any exemption from or reduction of any Tax is applicable. Each
   Party shall exercise Commercially Reasonable Efforts to obtain and to
   cooperate in obtaining any exemption from or reduction of any Tax.

         12.2     Indemnification.

                12.2.1 Unless otherwise agreed in writing by the Parties,
Southern and DYPM shall each defend, indemnify and save harmless the other and
their respective officers, directors, servants, agents, employees and
representatives from and against any and all claims, demands, costs or expenses
(including reasonable attorneys' fees) for loss, damage or injury to any person,
property or interest arising out of or in any way related to this Agreement to
the extent such loss, damage or injury occurs on its own side of the Delivery
Point, irrespective of negligence, whether actual or claimed, of the other.
Nothing in this Agreement shall create a contractual relationship between one
Party and the customers of the other Party, nor shall it create a duty of any
kind to such customers.

                12.2.2 Unless otherwise agreed in writing by the Parties,
Southern and DMT shall each defend, indemnify and save harmless the other and
their respective officers, directors, servants, agents, employees and
representatives from and against any and all claims, demands, costs or expenses
(including reasonable attorneys' fees) for loss, damage or injury to any person,
property or interest arising out of or in any way related to this Agreement to
the extent such loss, damage or injury occurs on its own side of the Gas
Delivery Point, irrespective of negligence, whether actual or claimed, of the
other. Nothing in this Agreement shall create a contractual relationship between
one Party and the customers of the other Party, nor shall it create a duty of
any kind to such customers.

         12.3     Limitation of Liability.

                  12.3.1 there are no warranties under this agreement EXCEPT TO
THE EXTENT SPeciFICALLy set forth HEREIN. the parties hereby specifically
disclaim and exclude all implied warranties, including the implied warranties of
merchantability and of fitness for a particular purpose.

                  12.3.2 NEITHER PARTY SHALL BE LIABLE TO THE OTHER FOR
CONSEQUENTIAL, INCIDENTAL, PUNITIVE, EXEMPLARY OR INDIRECT DAMAGES SUFFERED BY
THAT PARTY OR BY ANY CUSTOMER OF THAT PARTY, FOR lost profits or other business
interruption damages, WHETHER BY VIRTUE OF ANY STATUTE, IN TORT OR CONTRACT,
UNDER ANY PROVISION OF INDEMNITY OR OTHERWISE. THE PARTIES INTEND THAT THE
LIMITATIONS HEREIN IMPOSED ON REMEDIES AND THE MEASURE OF DAMAGES BE WITHOUT
REGARD TO THE CAUSE OR CAUSES RELATED THERETO, INCLUDING, WITHOUT LIMITATION,
THE NEGLIGENCE OF ANY PARTY, WHETHER SUCH NEGLIGENCE BE SOLE, JOINT OR
CONCURRENT, OR ACTIVE OR PASSIVE. TO THE EXTENT ANY DAMAGES REQUIRED TO BE PAID
HEREUNDER ARE LIQUIDATED, THE PARTIES ACKNOWLEDGE THAT THE DAMAGES ARE DIFFICULT
OR IMPOSSIBLE TO DETERMINE, THAT OTHERWISE OBTAINING AN ADEQUATE REMEDY IS
INCONVENIENT, AND THAT THE LIQUIDATED DAMAGES CONSTITUTE A REASONABLE
APPROXIMATION OF THE HARM OR LOSS.

                  12.3.3 In the event that any provision of this Section 12.3 is
held to be invalid or unenforceable, this Section shall be void and of no effect
solely to the extent of such invalidity or unenforceability, and no claim
arising out of such invalidity or lack of enforceability shall be made by one
Party against the other or its officers, agents, or employees. Notwithstanding
the foregoing, this Section 12.3 shall not limit or negate the right of either
Party to be fully indemnified as provided in Section 12.2 or limit the remedies
available for an Event of Default.

                                   ARTICLE 13
                               FORCE MAJEURE event

         13.1     Force Majeure Event Defined.

                  13.1.1 General Rule. As used herein, an Event of Force Majeure
means an unforeseeable cause(s) beyond the reasonable control of and without the
fault or negligence of the Party claiming Force Majeure, including but not
limited to acts of God, strike, flood, earthquake, storm, fire, lightning,
epidemic, war, riot, civil disturbance, sabotage, terrorism, change in law or
applicable regulation subsequent to the Execution Date and action or inaction by
any federal, state or local legislative, executive, administrative or judicial
agency or body which, by exercise of due foresight such Party could not
reasonably have expected and which, by the exercise of due diligence, it is
unable to overcome.

     13.1.2  Exceptions.  Notwithstanding  anything contained in Section 13.1.1,
the term Force Majeure shall not include any of the following:

[redacted]

         13.2     Applicability of Force Majeure Event.

         Neither Party shall be in breach or liable for any delay or failure in
its performance under this Agreement (except for such Party's performance of its
payment obligations hereunder, which shall not be excused by any Force Majeure
Event) to the extent such performance is prevented or delayed due to a Force
Majeure Event, provided that:

                  13.2.1 The non-performing Party shall give the other Party
written notice within three (3) Business Days of the commencement of the Force
Majeure Event, with available details to be supplied within [redacted] after the
commencement of the Force Majeure Event further describing the particulars of
the occurrence of the Force Majeure Event;

                  13.2.2 The delay in performance shall be of no greater scope
and of no longer duration than is directly caused by the Force Majeure Event;

                  13.2.3 The Party whose performance is delayed or prevented
shall proceed with Commercially Reasonable Efforts to overcome the events or
circumstances preventing or delaying performance and shall, as requested (but
not more often than weekly), provide written progress reports to the other Party
during the period that performance is delayed or prevented describing actions
taken and to be taken to remedy the consequences of the Force Majeure Event, the
schedule for such actions and the expected date by which performance shall no
longer be affected by the Force Majeure Event; and

                  13.2.4 When the performance of the Party claiming the Force
Majeure Event is no longer being delayed or prevented, that Party shall give the
other Party written notice to that effect.

         13.3     Effect of Force Majeure Event.

                  13.3.1 Except for the obligation of either Party to make any
required payments under this Agreement, the Parties shall be excused from
performing their respective obligations under this Agreement and shall not be
liable in damages or otherwise if and to the extent that they are unable to so
perform or are prevented from performing by a Force Majeure Event.

                  13.3.2   [redacted].

         13.4 Other Effects of Force Majeure Events. If any Force Majeure Event
claimed by a Party shall continue for more than [redacted] from the date of
notice provided by such Party in Section 13.2.1, then the other Party may, at
any time following the end of such period, terminate this Agreement upon written
notice to the affected Party. Upon such termination, neither Party shall have
any further obligation to the other Party except as to payment of any costs and
liabilities incurred prior to the effective date of such termination. Any notice
of termination under this Section must be received during the period that
performance continues to be delayed or prevented by the Force Majeure Event.

                                   ARTICLE 14
                                EVENT OF DEFAULT

     14.1 Event of Default.  The  occurrence of any one of the  following  shall
constitute an "Event of Default":

                  14.1.1 The failure by a Party to make payment to the other
Party for amounts due under this Agreement after said amounts have become due
and payable and such failure is not cured within fifteen (15) Days after
receiving written notice from the Party to which such payments are due;

                  14.1.2 A Party or any Party guaranteeing such Party's
obligations hereunder (a "Guarantor") shall: (i) admit in writing its inability
to pay its debts as such debts become due; (ii) make a general assignment or an
arrangement or composition with or for the benefit of its creditors; (iii) fail
to controvert in a timely and appropriate manner, or acquiesce in writing to,
any petition filed against such Party or such Guarantor under any bankruptcy or
similar law; (iv) take any action for the purpose of effectuating any of the
foregoing; or (v) fails to comply with the terms and conditions of its Guaranty;

                  14.1.3 A proceeding or case shall be commenced, without the
application or consent of the Party or its Guarantor, in any court of competent
jurisdiction, seeking: (i) its liquidation, reorganization of its debts,
dissolution or winding-up, or the composition or readjustment of its debts; (ii)
the appointment of a receiver, custodian, liquidator or the like of the Party or
its Guarantor or of all or any substantial part of its assets or the assets of
its Guarantor; or (iii) similar relief in respect of such Party or its Guarantor
under any law relating to bankruptcy, insolvency, reorganization of its debts,
winding-up, composition or adjustment of debt;

     14.1.4 The failure of any Party to comply with the  requirements of Article
15 regarding creditworthiness and/or security;

     14.1.5 The failure of a Party to comply with the requirements of Article 18
regarding assignment;

                  14.1.6 Any representation or warranty made by a Party under
Article 17 proves to have been false or misleading in any material respect and
such representation or warranty is not made true within twenty (20) Days after
notice thereof to such Party; provided, however, that the cure must also remove
any adverse effect on the non-defaulting Party;

     14.1.7  The  occurrence  of a default or event of default by such Party (or
its Affiliate) under the Other Southern Agreement;

                  14.1.8 A Party shall fail to pay when due (subject to any
applicable cure or grace period), whether by acceleration or otherwise, any
principal or interest on indebtedness aggregating in excess of [redacted] in
principal amount; or any indebtedness aggregating in excess of [redacted] shall
be declared due and payable or be required to be prepaid (other than by a
regularly scheduled payment) prior to the stated maturity of such indebtedness;
or

                  14.1.9 The material failure by a Party to comply with any
material provision of this Agreement (other than the events described above and
those for which a remedy is expressly provided) if such failure is not the
result of a Force Majeure Event, an Unavailability or is not otherwise excused
in accordance with this Agreement, and such failure continues uncured for
[redacted] after written notice thereof switch order from the other Party;
provided, however, if such failure is not capable of being cured within such
period of [redacted] with the exercise of reasonable diligence, then such cure
period shall be extended for an additional reasonable period of time (not to
exceed [redacted]), so long as the Party is exercising reasonable diligence to
cure such failure.

         14.2     Exclusive Remedies.

                  14.2.1 Upon the occurrence of an Event of Default and at all
times during any applicable cure period, for so long as such Event of Default is
continuing (or as long as the defaulting Party is attempting to cure during such
cure period), the non-defaulting Party's sole and exclusive remedy shall be to
suspend its performance under this Agreement and/or declare an Early Termination
Date as provided below.

                  14.2.2 If an Event of Default has occurred, the non-defaulting
Party shall have the right, in its sole discretion, by no more than [redacted]
notice to the defaulting Party, to designate a Day no earlier than the Day such
notice is effective as the date on which the Agreement shall terminate ("Early
Termination Date"). Subject to Section 20.3, this Agreement shall terminate on
the Early Termination Date and neither Party shall have any further liability or
obligation to the other hereunder, except as provided in Sections 14.2.3 or
14.2.4 below, as applicable. The exercise by DYPM (as an Affiliate of DMT) of
its rights under this Section 14.2 shall be the sole and exclusive remedy of DMT
for an Event of Default by Southern.

                  14.2.3 With respect to an Event of Default by either DYPM or
DMT, Southern's notice under Section 14.2.2 shall be to DYPM and shall indicate
one of the following elections: (i) receive a [redacted]; or (ii) receive a
continuing damage payment. In the event Southern elects to receive the
[redacted], DYPM shall pay Southern such amount within three (3) Business Days
after the Early Termination Date as liquidated damages for all claims associated
with the Event of Default under this Agreement. In the event Southern elects to
receive the continuing damage payment, Southern shall calculate an amount equal
to: [redacted]. This process shall continue until the total of the monthly
Damage Differentials (treating the negative amounts as positive for this
purpose) equals a net present value [redacted] as of the Early Termination Date.

                  14.2.4 With respect to an Event of Default by Southern, within
fifteen (15) Days after DYPM/DMT's notice under Section 14.2.2, the Parties
shall each select an independent party to determine the [redacted] of the
Agreement. Within thirty (30) Days after such notice, the two independent
parties shall select a third independent party to determine the [redacted] of
the Agreement. Within sixty (60) Days after such notice, the three (3)
independent parties shall provide the Parties with their respective estimates of
the [redacted]. The actual [redacted] shall equal the arithmetic average of the
three estimates. If one Party disputes the actual [redacted], within five (5)
Business Days of notice of the actual [redacted] determined by the independent
parties, such Party may submit the dispute for resolution pursuant to the
arbitration procedures of Article 19. If the actual [redacted] ultimately used
is the value determined by the three independent parties, then such value cannot
exceed a net present value (using a discount rate of 8%) of [redacted] as of the
Early Termination Date. If the actual [redacted] ultimately used is the value
determined pursuant to arbitration, then such value cannot exceed a net present
value (using a discount rate of 8%) of [redacted] as of the date of the
arbitrators' decision. If the final determination of the [redacted] indicates
that a payment is owed to DYPM, then the actual [redacted] will be paid by
Southern to DYPM within three (3) Business Days of such determination. If the
final determination of the [redacted] indicates that a payment would be owed to
Southern absent the Event of Default by Southern, then although the [redacted]
to DYPM would be negative, neither Party shall be required to pay the other any
amount hereunder. As used herein, [redacted]

                                   ARTICLE 15
                          CREDITWORTHINESS AND SECURITY

         15.1 Guaranty in favor of Southern. Simultaneously with the execution
of this Agreement, DYPM and DMT shall cause Dynegy Holdings Inc., the parent
company of DYPM and DMT, to execute and deliver a Guaranty Agreement in the form
of that attached hereto as Appendix E (DYPM Guaranty). If at any time during the
Term, the long term senior unsecured indebtedness of Dynegy Holdings Inc. (or
the provider of an Eligible Guaranty) has or drops to a rating below either (i)
Baa3 by Moody's Investors Service ("Moody's") (or future equivalent) or BBB- by
Standard & Poor's Ratings Group ("S&P") (or future equivalent), then DYPM and
DMT shall provide a substitute guaranty in form and substance substantially
similar to the DYPM Guaranty (the "Eligible Guaranty") issued by an entity with
a long term senior unsecured indebtedness rating of at or above both (i) Baa3 by
Moody's (or future equivalent) and (ii) BBB- by S&P (or future equivalent) (the
"Eligible Guaranty Threshold"). DYPM and DMT shall provide such Eligible
Guaranty within ten (10) Days of receipt of notice from Southern that DYPM and
DMT are required to provide an Eligible Guaranty due to the downgrade to a
rating below either (i) Baa3 by Moody's (or future equivalent) or (ii) BBB- by
S&P (or future equivalent). If DYPM and DMT are unable to provide an Eligible
Guaranty to Southern during such ten (10) Day period, then DYPM, DMT and Dynegy
Holdings Inc. must be and remain in compliance with and Southern must receive
the security and payments as required by the terms of Section 15.3 and 15.4
below.

         15.2 Negative Watch Credit Support in favor of Southern. If at any time
during the period beginning on the date hereof through December 31, 2005, the
long term senior unsecured indebtedness of Dynegy Holdings Inc. (or the provider
of an Eligible Guaranty) has or drops to a rating of either (i) Baa3 by Moody's
(or future equivalent) and Dynegy Holdings Inc. (or the provider of an Eligible
Guaranty), its credit rating or indebtedness is on watch for possible downgrade
by Moody's (or future equivalent) or (ii) BBB- by S&P (or future equivalent) and
Dynegy Holdings Inc. (or the provider of an Eligible Guaranty), its credit
rating or indebtedness is on negative CreditWatch by S&P (or future equivalent),
then DYPM, DMT or Dynegy Holdings Inc. (or the provider of an Eligible Guaranty)
shall within three (3) Business Days after such event provide to and maintain in
favor of Southern a letter of credit issued by an issuer reasonably acceptable
to Southern in the amount of [redacted] in substantially the form of Appendix F
hereto unless a [redacted] letter of credit has been properly issued and remains
in effect in accordance with the first sentence of Section 15.3 or 15.4 below.

         15.3 Credit Support in favor of Southern for Junk Rating. If at any
time during the period beginning on the date hereof through December 31, 2005,
the long term senior unsecured indebtedness of Dynegy Holdings Inc. (or the
provider of an Eligible Guaranty) has or drops to a rating of below either (i)
Baa3 by Moody's (or future equivalent) or (ii) BBB- by S&P (or future
equivalent), then DYPM, DMT or Dynegy Holdings Inc. (or the provider of an
Eligible Guaranty) shall within three (3) Business Days after such event provide
to and maintain in favor of Southern a letter of credit issued by an issuer
reasonably acceptable to Southern in the amount of [redacted] in substantially
the form of Appendix F hereto unless a [redacted] letter of credit has been
properly issued and remains in effect in accordance with the first sentence of
Section 15.2 above or Section 15.4 below.

         15.4 Post December 31, 2005 Provisions. If at any time after December
31, 2005, the long term senior unsecured indebtedness of Dynegy Holdings Inc.
(or the provider of an Eligible Guaranty) has or drops to a rating below either
(i) Baa3 by Moody's (or future equivalent) or (ii) BBB- by S&P (or future
equivalent), then DYPM, DMT or Dynegy Holdings Inc. (or the provider of an
Eligible Guaranty) shall within three (3) Business Days after such event provide
to and maintain in favor of Southern a letter of credit issued by an issuer
reasonably acceptable to Southern in the amount of [redacted] in substantially
the form of Appendix F hereto, unless a [redacted] letter of credit has been
properly issued and remains in effect in accordance with the first sentence of
Section 15.2 or 15.3 above.

         15.5 Guaranty in favor of DYPM/DMT. If hereafter Southern's net worth
(calculated by subtracting Southern's liabilities (net of intercompany loans)
from Southern's total assets (excluding goodwill) as such terms are determined
in accordance with GAAP) falls below [redacted], Southern shall provide to DYPM
and DMT a guaranty from an entity with a long term senior unsecured indebtedness
rating at or above (i) Baa3 by Moody's (or future equivalent) and (ii) BBB- by
S&P (or future equivalent) in substantially the form of Appendix G (Southern
Guaranty) in an amount equal to thirty percent (30%) of the amount by which
[redacted] exceeds Southern's net worth (the "Shortfall Amount") or, at
Southern's option, Southern shall deliver to DYPM a letter of credit in the
Shortfall Amount in substantially the form of Appendix H hereto. If at any time
during the Term, the long term senior unsecured indebtedness of the provider of
the Southern Guaranty has or drops to a rating below either (i) Baa3 by Moody's
(or future equivalent) or (ii) BBB- by S&P (or future equivalent), then Southern
shall provide a Southern Guaranty issued by an entity with a long term senior
unsecured indebtedness rating at or above the Guaranty Threshold. Southern shall
provide such Southern Guaranty within ten (10) Days of receipt of notice from
DYPM and DMT that Southern is required to provide a Southern Guaranty due to the
downgrade below either (i) Baa3 by Moody's (or future equivalent) or (ii) BBB-
by S&P (or future equivalent). If Southern is unable to provide a Southern
Guaranty during the applicable periods described above, then Southern shall
provide and maintain substitute collateral of a value equal to the Shortfall
Amount in form and substance reasonably satisfactory to DYPM and DMT which
security shall cover and secure Southern's obligations under this Agreement. The
foregoing substitute collateral shall be replenished so that at all times
substitute collateral of a value equal to the Shortfall Amount is securing
Southern's obligations to DYPM and DMT until such time as a Southern Guaranty is
provided. If at any time a Southern Guaranty becomes available, Southern may
elect to provide such Southern Guaranty in replacement of any security
previously provided. Once a Southern Guaranty is provided, any security
previously provided by Southern shall be immediately returned or cancelled as
the case may be, at which time the Southern Guaranty shall remain in place until
the latter of it is terminated in accordance with its terms or until such time
as collateral is again required and provided due to the downgrades of the
provider of the Southern Guaranty to a level below the Eligible Guaranty
Threshold.

         15.6 Negative Watch Credit Support in favor of DYPM/DMT. If at any time
prior to June 1, 2005, the long term senior unsecured indebtedness of Southern
has or drops to a rating of either (i) Baa3 by Moody's (or future equivalent)
and Southern, its credit rating or indebtedness is on watch for possible
downgrade by Moody's (or future equivalent) or (ii) BBB- by S&P (or future
equivalent) and Southern, its credit rating or indebtedness is on negative
CreditWatch by S&P (or future equivalent), then Southern shall within three (3)
Business Days after such event provide to and maintain in favor of DYPM and DMT
either (1) a letter of credit issued by an issuer reasonably acceptable to DYPM
and DMT in an amount of [redacted] in substantially the form of Appendix H
hereto or (2) a guaranty from an entity with a long term senior unsecured
indebtedness rating at or above (i) Baa3 by Moody's (or future equivalent) and
(ii) BBB- by S&P (or future equivalent) in the form of Appendix G (Southern
Guaranty), unless a letter of credit or guaranty has been properly issued and
remain in effect in accordance with Section 15.7 or 15.8 below.

         15.7 Credit Support in favor of DYPM/DMT for Junk Rating. If at any
time prior to June 1, 2005, the long term senior unsecured indebtedness of
Southern has or drops to a rating of below either (i) Baa3 by Moody's (or future
equivalent) or (ii) BBB- by S&P (or future equivalent), then Southern shall
within three (3) Business Days after such event provide to and maintain in favor
of DYPM and DMT either (1) a letter of credit issued by an issuer reasonably
acceptable to DYPM and DMT in an amount of [redacted] in substantially the form
of Appendix H hereto or (2) a guaranty from an entity with a long term senior
unsecured indebtedness rating at or above (i) Baa3 by Moody's (or future
equivalent) and (ii) BBB- by S&P (or future equivalent) in the form of Appendix
G (Southern Guaranty), unless a letter of credit or guaranty has been properly
issued and remains in effect in accordance with Section 15.6 above or Section
15.8 below.

         15.8 Post June 1, 2005 Provisions. If at any time on or after June 1,
2005, the long term senior unsecured indebtedness of Southern has or drops to a
rating below either (i) Baa3 by Moody's (or future equivalent) or (ii) BBB- by
S&P (or future equivalent), then Southern shall provide to and maintain in favor
of DYPM and DMT either (1) a letter of credit issued by an issuer reasonably
acceptable to DYPM and DMT in the amount of [redacted] in substantially the form
of Appendix H hereto or (2) a guaranty from an entity with a long term senior
unsecured indebtedness rating at or above (i) Baa3 by Moody's (or future
equivalent) and (ii) BBB- by S&P (or future equivalent) in the form of Appendix
G (Southern Guaranty), unless a letter of credit or guaranty has been properly
issued and remains in effect in accordance with Section 15.6 or Section 15.7
above.

                                   ARTICLE 16
                                 DELIVERY EXCUSE

         16.1 Definition. As used in this Agreement, "Delivery Excuse" means:
(i) any Event of Default of DYPM or DMT under this Agreement or any event which,
with the giving of notice or lapse of time or both, would become an Event of
Default under this Agreement; (ii) DMT for any reason (other than a failure
resulting from a default or failure to perform by Southern or one of its
Affiliates) does not supply Gas required by the Facility (unless the Facility is
not constructed) or to an Alternate Gas Delivery Point(s) (as required by
Section 6.2); provided, however, that failures to supply to Alternate Gas
Delivery Point(s) for reasons beyond DMT's reasonable control shall not
constitute a Delivery Excuse; or (iii) the delivery of Gas to the Facility that
does not meet the specifications of applicable transportation pipelines serving
the Facility; (iv) any failure or inability of DYPM to acquire and maintain
adequate transmission service for the delivery of energy; and (v) any Emergency
Condition. Nothing contained in this Agreement or elsewhere shall require
Southern to replace, either in whole or in part, the Gas supply provided by DMT
hereunder with any other Gas supply arrangement.

         16.2 No Breach for Delivery Excuse. Southern shall not be liable for or
deemed in breach of this Agreement to the extent a Delivery Excuse has occurred
or is continuing, even if the duration of such Delivery Excuse is for the
remainder of the Term of this Agreement; provided that the following shall apply
with regard to a condition that would result in a Delivery Excuse:

                           (i) Each Party shall promptly notify the other after
                  discovering any condition or circumstance that could
                  reasonably be expected to lead to a Delivery Excuse. Upon
                  either Party becoming aware of a condition that constitutes a
                  Delivery Excuse, that Party shall provide the other Party with
                  prompt written notice of such condition, with details further
                  describing the particulars of the condition to be supplied
                  within twelve (12) Days after commencement of such condition;

                    (ii) Any delay in  performance  shall be of no greater scope
               and of no longer duration than is directly caused by the Delivery
               Excuse; and

                           (iii) When a Party becomes aware that the condition
                  constituting a Delivery Excuse no longer exists, such Party
                  shall promptly notify the other when the condition of Delivery
                  Excuse is no longer preventing such Party's performance under
                  this Agreement.

                                   ARTICLE 17
                         REPRESENTATIONS AND WARRANTIES

         17.1. Execution. Each Party represents and warrants to the other Party
that: (i) it has all the necessary corporate and legal power and authority and
has been duly authorized by all necessary corporate action to enable it to
lawfully execute, deliver and perform under this Agreement; and (ii) it is a
valid legal entity duly organized and validly existing in good standing under
the laws of the state of its formation and is, to the extent required, qualified
to do business in the State of Alabama;

     17.2.  Permits.  Each Party represents and warrants to the other Party that
it will hold all permits,  licenses or approvals  necessary to lawfully  perform
its obligations contained herein in the manner prescribed by this Agreement.

         17.3 Binding Obligations. Each Party represents and warrants to the
other Party that this Agreement is the valid and binding obligation of such
Party, enforceable against such Party in accordance with its terms, except as
such enforceability may be limited by bankruptcy, insolvency or other equitable
laws affecting creditor's rights.

         17.4 Execution and Consummation. Each Party represents and warrants to
the other Party that the execution and delivery of this Agreement, the
consummation of the transactions contemplated hereby and the fulfillment of and
compliance with the provisions of this Agreement do not and will not conflict
with any of the terms, conditions or provisions of any law or partnership
agreement, or other evidence of indebtedness or any other agreement or
instrument to which it is a party or by which it or any of its property is
bound, or result in a breach or default under any of the foregoing.

         17.5 Actions and Proceedings. Each Party represents and warrants to the
other that there is no pending or, to the knowledge of such Party, threatened
action or proceeding affecting such Party before any Government Agency that
purports to adversely affect the validity or enforceability of this Agreement.

         17.6 Processor. With respect to the purchase of Contract Capacity, DYPM
represents and warrants that it is a producer, processor, commercial user or
merchant handling energy, and it is entering into the transactions contemplated
by this Agreement for purposes related to its business as such.

                                   ARTICLE 18

                                   ASSIGNMENT

         18.1. General Rule. This Agreement shall be binding upon and inure to
the benefit of the permitted successors and assigns of the Parties hereto.
Except as set forth in Section 18.2, no permitted sale, assignment, transfer or
other disposition shall release or discharge DYPM, DMT or Southern from its
obligations under this Agreement, but all such obligations shall also be assumed
by the successor or assign of the Party hereto.

         18.2. Consent Required. Neither Party shall assign its interest in this
Agreement in whole or part without the prior written consent of the other Party,
such consent not to be unreasonably withheld or delayed; provided, however,
that, notwithstanding the foregoing, either Party may assign this Agreement to
its parent, or to any direct or indirect wholly-owned subsidiary of such parent
and, upon the approval of the creditworthiness and the ability to perform of
such assignee by the non-assigning Party (which approval shall not be
unreasonably withheld or delayed), the assignor shall be released and discharged
from its obligations under this Agreement. Either Party may collaterally assign
this Agreement to any lender or financial institution without the written
consent of the other Party. Each Party agrees to provide such consents to
collateral assignment as may be reasonably requested by the other Party;
provided that neither Party shall be obligated to provide a consent to
collateral assignment that would have the effect of materially altering the
obligations of such Party under this Agreement.

                                   ARTICLE 19
                               DISPUTE RESOLUTION

         19.1     Senior Officers.

                  19.1.1 Each of the Parties will designate in writing to the
other Parties a representative who will be authorized to resolve any dispute
arising under this Agreement in an equitable manner and, unless otherwise
expressly provided herein, to exercise the authority of such Party to make
decisions by mutual agreement.

                  19.1.2 If such designated representatives are unable to
resolve a dispute under this Agreement, such dispute will be referred by each
Party's representative, respectively, to a designated senior officer.

                  19.1.3 The Parties hereto agree: (i) to attempt to resolve all
disputes arising hereunder promptly, equitably and in a good faith manner; and
(ii) to provide each other with reasonable access during normal business hours
to any and all non-privileged and non-confidential records, information and data
pertaining to any such dispute. Non-confidential information shall be made
available to a Party pursuant to a confidentiality agreement acceptable to the
disclosing Parties.

         19.2 Arbitration. All disputes arising under, out of, or in relation to
any provision of this Agreement that are not resolved pursuant to Section 19.1
within 30 Days after either Party's receipt of notice referring the dispute to
the senior officers of the Parties (and in any event within the time which legal
or equitable proceedings based on such claim, dispute, or controversy would not
be barred by the applicable statute of limitations) will be submitted upon
written request of any Party to binding arbitration. Each Party will have the
right to designate an arbitrator of its choice, who need not be from the
American Arbitration Association ("AAA") panel of arbitrators but who (a) will
be an expert in the independent power electric generation field and (b) will not
be and will not have been previously an employee or agent of or consultant or
counsel to either Party and will not have a direct or indirect interest in
either Party or the subject matter of the arbitration. Such designation will be
made by notice to the other Party and to the AAA within ten (10) Days or, in the
case of payment disputes, five (5) Days after the date of the giving of notice
of the demand for arbitration. The arbitrators designated by the Parties will
designate a third arbitrator, who will have a background in legal and judicial
matters (and who will act as chairman), within ten (10) Days or, in the case of
payment disputes, five (5) Days after the date of the designation of the last of
the arbitrators to be designated by the Parties, and the arbitration will be
decided by the three arbitrators. If the two arbitrators cannot or do not select
a third independent arbitrator within such period, either Party may apply to the
AAA for the purpose of appointing any person listed with the AAA as the third
independent arbitrator under the expedited rules of the AAA. Such arbitration
will be held in alternating locations of the home offices of the Parties,
commencing with DYPM's home office, or in any other mutually agreed upon
location. The rules of the AAA will apply to the extent not inconsistent with
the rules herein specified. Each Party will bear its own expenses (including
attorneys' fees) with respect to the arbitration, unless the arbitrator decides
on a different allocation of expenses. The arbitrators will designate the Party
to bear the expenses of the arbitrators or the respective amounts of such
expense to be borne by each Party.

         19.3 Binding Nature of Proceedings. Each Party understands that this
Agreement contains an agreement to arbitrate with respect to specified disputes.
After signing this Agreement, each Party understands that it will not be able to
bring a lawsuit concerning any dispute that may arise that is covered by this
arbitration provision. Instead, each Party agrees to submit any such dispute to
arbitration pursuant to Section 19.2. Any award of the arbitrator may be
enforced by the Party in whose favor such award is made in any court of
competent jurisdiction.

                                   ARTICLE 20

                                  MISCELLANEOUS

         20.1     Governing Law; Waiver of Jury Trial.

                  20.1.1 THIS AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED IN
ACCORDANCE WITH, THE LAW OF THE STATE OF ALABAMA, EXCLUSIVE OF ITS CONFLICTS OF
LAW PROVISIONS, AND, TO THE EXTENT APPLICABLE, BY THE FEDERAL LAW OF THE UNITED
STATES OF AMERICA. BY CHOOSING TO HAVE THIS AGREEMENT GOVERNED BY AND CONSTRUED
UNDER THE LAW OF THE STATE OF ALABAMA, THE PARTIES ARE IN NO WAY SUBMITTING TO
OR INCORPORATING INTO THIS AGREEMENT ANY ALABAMA STATUTE, REGULATION, OR ORDER,
OR ANY OF THE SAME INVOLVING THE GENERATION, SALE, PURCHASE OR TRANSMISSION OF
ELECTRIC CAPACITY OR ELECTRIC ENERGY IN, OR FOR CONSUMPTION IN, THE STATE OF
ALABAMA.

                  20.1.2 EACH PARTY HEREBY IRREVOCABLY WAIVES, TO THE FULLEST
EXTENT PERMITTED BY APPLICABLE LAW, ANY AND ALL RIGHT TO TRIAL BY JURY IN ANY
LEGAL PROCEEDING ARISING OUT OF OR RELATING TO THIS AGREEMENT OR THE
TRANSACTIONS CONTEMPLATED BY THIS AGREEMENT.

         20.2     Confidentiality.

                  20.2.1 Until such time as the terms of the Agreement are
readily accessible by the public (other than due to the fault of a Party),
neither Party shall disclose the terms of this Agreement to any third party
(other than such Party's (or its Affiliates') employees, lenders, legal counsel,
accountants, or other advisors), except in order to comply with any applicable
law, order, regulatory or exchange rule. Each Party shall notify the other Party
of any proceeding of which it is aware that may result in disclosure and shall
use reasonable efforts to prevent or limit such disclosure. Notwithstanding the
foregoing, either Party may disclose the terms and conditions of this Agreement
to any third party providing permanent or construction financing with respect to
the Facility (in the case of Southern) or with respect to other financing
obtained by a Party. In connection with a disclosure to any third party
financiers, the disclosing Party shall take such steps as may be reasonably
required to limit the scope of such disclosure and to ensure that disclosure is
not subsequently made by any such financier.

                  20.2.2 Anything in this Section 20.2 to the contrary
notwithstanding, the Parties agree and acknowledge that, in the course of
performance under this Agreement, the Parties may exchange confidential and
proprietary information (including financial information related to the
Agreement). Each Party agrees and covenants that any and all information it
receives in connection with its performance under this Agreement that the
disclosing Party has designated as confidential will be kept confidential and
shall not be disclosed by the receiving Party to any third party without the
express written consent of the disclosing Party, except in order to comply with
any applicable law, order, regulatory or exchange rule. Any filing by a Party
pursuant to any of the foregoing in compliance with applicable law, order,
regulatory or exchange rule, shall be made under a request for confidential
treatment (unless the filing Party reasonably believes such a request would be
futile) and the other Party shall have the opportunity to review such filing
prior to its dissemination. Neither Party shall issue a press release or similar
disclosure with respect to the existence of this Agreement or its contents
without first obtaining the written consent of the other Party, which consent
shall not be unreasonably withheld.

         20.3 Survivorship of Obligations. The termination or cancellation of
this Agreement shall not discharge any Party from any obligation it owes the
other Party under this Agreement by reason of any transaction, loss, cost,
damage, expense or liability occurring, accruing or arising prior to such
termination. It is the intent of the Parties that any such obligation owed
(whether the same shall be known or unknown as of the termination or
cancellation of this Agreement) will survive the termination or cancellation of
this Agreement in favor of the Party to which such obligation is owed. The
Parties also intend that the indemnification and limitation of liability
provisions contained in Section 12 shall remain operative and in full force and
effect.

         20.4 Notice of Proceedings. Each Party, to the extent it has pertinent
knowledge, shall promptly notify the other Party of any pending or anticipated
federal or state regulatory, judicial or administrative actions, including but
not limited to notice of violations, arising directly out of, caused by, or
related to the Facility, including any generation equipment comprising the
Facility, that could materially and adversely affect either Party's ability to
carry out its obligations under this Agreement.

         20.5 No Third Party Beneficiaries. This Agreement is not intended to,
and shall not, create rights, remedies or benefits of any character whatsoever
in favor of any Persons, corporations, associations, or entities other than the
Parties, and the rights and obligations of each of the Parties under this
Agreement are solely for the use and benefit of, and may be enforced solely by
the Parties, their successors in interest or permitted assigns.

         20.6 Section Headings Not to Affect Meaning. The descriptive headings
of the various Articles and Sections of this Agreement have been inserted for
convenience of reference only and shall in no way modify or restrict any of the
terms and provisions thereof.

         20.7 Computation of Time. In computing any period of time prescribed or
allowed by this Agreement, the designated period of time shall begin to run on
the Day immediately following the Day of the act, event or default that
precipitated the running of the designated period of time. The designated period
shall expire on the last Day of the period so computed unless that Day is not a
Business Day, in which event the period shall run until the end of the next
Business Day.

         20.8 Interest. Whenever the provisions of this Agreement require the
calculation of an interest rate, such rate shall be computed at an annual rate
equal to the Prime Rate as of the date on which the calculation begins, but not
to exceed the maximum rate which may be lawfully charged. Interest on
obligations arising under this Agreement shall be compounded quarterly based on
a calendar quarter.

         20.9 Entire Agreement. This Agreement constitutes the entire agreement
between the Parties relating to the subject matter hereof and supersedes any
other agreements, written or oral, between the Parties concerning such subject
matter.
         20.10 Counterparts. This Agreement may be executed simultaneously in
multiple counterparts, each of which shall be deemed an original, but all of
which together shall constitute one and the same instrument.

     20.11  Amendments.  This Agreement may only be amended by written agreement
signed by duly authorized representatives of the Parties.

         20.12 Guarantee of Performance. It is the intent of the Parties that
with respect to the contract provisions referenced below, the rights, duties and
obligations of DYPM and DTM shall be joint and several: Section 3.2, Section
3.3, Article 8, Article 11, Section 12.2 and Article 14. DYPM and DMT guarantee
to Southern the performance of DYPM and DMT's respective obligations under those
provisions. For all other provisions, the respective rights, duties and
obligations of these Parties shall be established on the basis of the specific
language and context of the provision in questions.

         20.13 Waivers. Waivers of the provisions of this Agreement or excuses
of any violations of the Agreement shall be valid only if in writing and signed
by an authorized officer of the Party issuing the waiver or excuse. A waiver or
excuse issued under one set of circumstances shall not extend to other
occurrences under similar circumstances.

         20.14 No Partnership Created. Any provision of this Agreement to the
contrary notwithstanding, the Parties do not intend to create hereby any joint
venture, partnership, association taxable as a corporation, or other entity for
the conduct of any business for profit. If it should appear that one or more
changes to this Agreement would be required in order not to create an entity
referenced in the preceding sentence, the Parties agree to negotiate promptly
and in good faith with respect to such changes.

         20.15 Character of Sale. The sale of Contract Capacity and Contract
Energy hereunder shall not constitute a sale, lease, transfer or conveyance to
DYPM or any other party of any contractual rights or ownership interests in any
generating unit or other equipment comprising the Facility, nor does the sale of
Contract Capacity and Contract Energy hereunder constitute a dedication of
ownership of any generating unit or other equipment comprising the Facility.

         20.16 Notices. Any notice, demand, request, payment, statement, or
correspondence provided for in this Agreement, or any notice which a Party may
desire to give to the other, shall be in writing (unless otherwise expressly
provided by this Agreement) and shall be considered duly delivered when received
by hand delivery, first-class mail, facsimile, or by overnight delivery, at the
addresses listed below; provided, however, if actual delivery occurs at a time
other than between the hours of 0800 and 1700 CPT on a Business Day (each a
"Business Hour"), delivery shall be deemed to have occurred in the next Business
Hour after actual delivery.

(i)      To Southern:

                  Southern Power Company
                  270 Peachtree Street
                  Atlanta, Georgia 30303
                  Attention:     Chief Financial Officer

                  Telephone:     404-506-5243
                  Facsimile:     404-506-0333

         With a copy to:

                  Southern Company Generation and Energy Marketing
                  270 Peachtree Street
                  Atlanta, Georgia 30303
                  Attention:  Vice President

                  Telephone:        404-506-0357

         Payment by Wire:   Bank of America

         ABA  111000012
         Account #:  3751237789

(ii)     To DYPM

                  Dynegy Power Marketing, Inc.
                  1000 Louisiana Street, Suite 5800
                  Houston, Texas 77002
                  Attention:     Asset Management

                  Telephone:     (713) 507-6400
                  Facsimile:     (713) 767-5931

         With copies to:

                  Dynegy Power Marketing, Inc.
                  1000 Louisiana Street, Suite 5800
                  Houston, Texas 77002
                  Attention:  General Counsel

                  Telephone:        (713) 507-6832
                  Facsimile:        (713) 507-6986

                           And

                  Dynegy Power Marketing, Inc.
                  125 Townpark Drive, Suite 175
                  Kennesaw, Georgia 30144

                  Attention:  Vice President

                  Telephone:        (770) 420-6851
                  Facsimile:        (770) 420-6855

         Payment by Wire:
         For the Acct. of Dynegy Power Marketing
         The First National Bank of Chicago
         ABA # 071 000 013
         Account # 552 7651

         Invoices:
         Dynegy Power Marketing, Inc.
         1000 Louisiana Street, Suite 5800
         Houston, Texas  77002-5050
         Attn: Accounts Payable-Electric
         Facsimile:        713-767-5958

(iii)   To DMT

                  Dynegy Marketing and Trade
                  1000 Louisiana Street, Suite 5800
                  Houston, Texas 77002

                  Telephone: 713-507-6400

         Payment by Wire:
         For the Acct. of Dynegy Power Marketing
         The First National Bank of Chicago
         ABA # 071-000-013 Account No. 55-53911

         Each Party shall provide the other Party with all names, addresses,
telephone and facsimile numbers necessary for its performance under this
Agreement; and either Party may change the information set forth in Section this
20.16 by giving written notice to the other Party in the manner prescribed by
such section.

         20.17 Survival. Any provision(s) of this Agreement that expressly comes
into or remains in force following the termination or expiration of this
Agreement shall survive the termination or expiration of this Agreement.

         20.18 Construction. The language used in this Agreement is the product
of both Parties' efforts. Accordingly, each Party irrevocably waives the benefit
of any rule of contract construction that disfavors the drafter of a contract or
the drafter of specific language in a contract.

         20.19 Imaged Agreement. Any original executed Agreement, schedule
confirmation or other related document may be photocopied and stored on computer
tapes and disks (the "Imaged Agreement"). The Imaged Agreement, if introduced as
evidence on paper, the schedule confirmation, if introduced as evidence in
automated facsimile form, the transaction tape, if introduced as evidence in its
original form and as transcribed onto paper, and all computer records of the
foregoing, if introduced as evidence in printed format, in any judicial,
arbitration, mediation or administrative proceedings, will be admissible as
between the Parties to the same extent and under the same conditions as other
business records originated and maintained in documentary form. Neither Party
shall object to the admissibility of the transaction tape, the schedule
confirmation or the Imaged Agreement (or photocopies of the transcription of the
transaction tape, the schedule confirmation or the Imaged Agreement) on the
basis that such were not originated or maintained in documentary form under
either the hearsay rule, the best evidence rule or other rule of evidence.

         20.20 GDP-IPD. In connection with the calculations under this Agreement
that are referenced to increases based on the values of GDP-IPD, the base value
for all GDP-IPD inflation calculations will be the Implicit Price Deflator
published quarterly by the U.S. Department of Commerce in Table 5 (Quantity and
Price Indexes for Gross Domestic Product) in the Bureau of Economic Analysis
(BEA) National Income and Product Accounts Tables for the first quarter of 2005,
as revised by the BEA. The escalation adjustments will be made by dividing the
GDP-IPD for the first calendar quarter preceding the beginning of a new Contract
Year (as revised by the BEA and reported prior to May 31 for the upcoming
Contract Year) by the base GDP-IPD (as revised) from the first calendar quarter
of 2005.

     20.21 Higher Heating Value. All Gas quantities  referenced  herein shall be
in terms of the higher heating value of natural gas.

                     [The Next Page is the Signature Page.]

<PAGE>

IN WITNESS WHEREOF, Southern, DYPM, and DMT have caused this Agreement to be
executed in duplicate by their respective duly authorized officers as of the
Execution Date.

SOUTHERN POWER COMPANY

By:            ___________________________________

NAME:     Douglas E. Jones

Title:        Vice President

                                    ........
DYNEGY POWER MARKETING, INC.

By:           ___________________________________

NAME:     Matthew K. Schatzman

Title:        President

DYNEGY MARKETING AND TRADE

BY:           _____________________________________

NAME:         Matthew K. Schatzman

TITLE:        President

<PAGE>

                                   APPENDIX A

                              Reservation Payments

                                   [redacted]

<PAGE>

                                   APPENDIX B
                             Scheduling Constraints
                                   [redacted]

<PAGE>

                                   APPENDIX C

                        Unit Performance Characteristics

                                   [redacted]

<PAGE>

                                   APPENDIX D

                ENDH and Performance Payment Sample Calculations

                                   [redacted]

<PAGE>

                                   APPENDIX E

                               Guaranty Agreement

                                                              [redacted]

<PAGE>

                                   APPENDIX F

                        Proposed Form of Letter of Credit
                                   [redacted]

<PAGE>

                                   APPENDIX G

                               Guaranty Agreement

                                                         [redacted]

<PAGE>

                                   APPENDIX H

                        Proposed Form of Letter of Credit

                                   [redacted]

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