Document:

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                                                                   EXHIBIT 10.76

                                                                  Execution Copy

                                   AGREEMENT

                                 By And Among

                               Edward R. Muller

                             Edison Mission Energy

                                      And

                             Edison International
                         (As To Certain Sections Only)

                               January 17, 2000
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                                                                  Execution Copy

                               Table of Contents

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ARTICLE 1:  DEFINITIONS; INTERPRETIVE MATTERS...................................................     1
     Section 1.01  Definitions..................................................................     1
     Section 1.02  Interpretive Matters.........................................................     3

ARTICLE 2:  EMPLOYMENT AND COMPENSATION.........................................................     4
     Section 2.01  Resignation..................................................................     4
     Section 2.02  Further Assurances...........................................................     4
     Section 2.03  Effect of Resignation........................................................     4
     Section 2.04  Compensation and Benefits....................................................     4
     Section 2.05  Withholding..................................................................     7
     Section 2.06  Company Property.............................................................     7
     Section 2.07  Releases.....................................................................     8

ARTICLE 3:  CONSULTING..........................................................................     8
     Section 3.01  Consulting Services..........................................................     8
     Section 3.02  Compensation.................................................................     8
     Section 3.03  Expense Reimbursement........................................................    10
     Section 3.04  Indemnity....................................................................    10
     Section 3.05  Relationship Between Parties.................................................    10
     Section 3.06  Limitations on Authority.....................................................    11
     Section 3.07  Early Termination............................................................    11

ARTICLE 4:  ADDITIONAL COVENANTS OF EXECUTIVE...................................................    12
     Section 4.01  Confidentiality..............................................................    12
     Section 4.02  Stock Activity...............................................................    14
     Section 4.03  Non-Competition..............................................................    15
     Section 4.04  Non-Solicitation; Non-Disparagement; Non-Interference........................    16
     Section 4.05  Ownership of Works...........................................................    17
     Section 4.06  Cooperation With Legal Process...............................................    17

ARTICLE 5:  GENERAL PROVISIONS..................................................................    18
     Section 5.01  Opportunity to Review With Counsel...........................................    18
     Section 5.02  Choice of Law................................................................    18
     Section 5.03  Remedies.....................................................................    18
     Section 5.04  Severability.................................................................    18
     Section 5.05  No Amendment; Entire Agreement; No Waiver....................................    19
     Section 5.06  Right Of Offset..............................................................    19
     Section 5.07  Parties of Interest..........................................................    19
     Section 5.08  Notices......................................................................    19
     Section 5.09  Counterparts.................................................................    20
     Section 5.10  Publicity....................................................................    20
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     Section 5.11  Headings.....................................................................    20
     Section 5.12  Attorneys Fees...............................................................    20
     Section 5.13  Further Assurances...........................................................    20
     Section 5.14  Additional Covenants of the Company..........................................    20
     Section 5.15  Dispute Resolution...........................................................    20
     Section 5.16  Approvals....................................................................    21
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SCHEDULE OF ADDRESSES

SCHEDULE OF DEFERRED COMPENSATION

SCHEDULE OF OTHER TERMINATED BENEFITS

SCHEDULE OF POSITIONS

SCHEDULE OF RETIREMENT BENEFITS

SCHEDULE OF VESTED OPTIONS

FORM OF GENERAL RELEASE

FORM OF AGE DISCRIMINATION RELEASE

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                                                                  Execution Copy

                                   AGREEMENT

     THIS AGREEMENT ("Agreement") is entered into as of  January 17, 2000 by and
among Edward R. Muller (the "Executive"), Edison Mission Energy, a  California
corporation (the "Company"), and, as to Sections 2.04(d)(in respect of options
for Parent company stock) and 3.02(d), Edison International, a California
corporation (the "Parent").

                                   RECITALS

     WHEREAS, the Executive is currently employed as the President and Chief
Executive Officer of the Company; and

     WHEREAS, the Executive and the Company have mutually agreed that Executive
will resign from his full-time position at the Company; and

     WHEREAS, the Company desires to retain certain consultant services of
Executive as described and for the term set forth herein;

     NOW, THEREFORE, in consideration of the mutual agreements and covenants of
the parties herein contained, and for other good and valuable consideration the
receipt and sufficiency of which are hereby acknowledged, the parties do hereby
agree as follows.

                ARTICLE 1:    DEFINITIONS; INTERPRETIVE MATTERS

     SECTION 1.01   Definitions.  As used herein the following terms have the
following meanings:

          (a)   "Affiliate" means, with respect to a specified Person, any
Person that, directly or indirectly, through one or more intermediaries,
controls, is controlled by, or is under common control with, such specified
Person.

          (b)   "Agreement" has the meaning specified in the introductory
paragraph of this Agreement.

          (c)   "Claims" has the meaning specified in the form of General
Releases attached hereto.

          (d)   "Company" has the meaning specified in the introductory
paragraph of this Agreement.

          (e)   "Confidential Information" has the meaning specified in Section
4.01(a).

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          (f)   "Consulting Services" has the meaning specified in Section 3.01.

          (g)   "Consulting Term" means the period commencing on the Effective
Date and ending on the earlier of the second anniversary of the Effective Date
or the date on which the Consulting Term is sooner terminated in accordance with
the provisions hereof, provided that, if the Consulting Term is otherwise
terminated pursuant to Section 3.07(a)(iv), the Consulting Term shall
nevertheless be deemed to continue until its originally scheduled expiration
date solely for purposes of Section 3.02.

          (h)   "Deferral Plans" means the Edison International Executive
Deferred Compensation Plan and the Edison International Option Gain Deferral
Plan.

          (i)   "Effective Date" shall be January 18, 2000.

          (j)   "Equity Plans" has the meaning specified in Section 2.04(d).

          (k)   "Executive" has the meaning specified in the introductory
paragraph of this Agreement.

          (l)   "Group" means two or more Persons which agree to act together
for the purpose of acquiring, holding, voting or disposing of Voting Stock or of
acquiring, holding or disposing of any significant subsidiary, or significant
amount of assets, of the Company or any Affiliate of the Company.

          (m)   "Materials" has the meaning specified in Section 4.05.

          (n)   "Options" has the meaning specified in Section 2.04(d).

          (o)   "Line of Business" means the construction, development,
financing, acquisition, ownership, disposition, operation or maintenance of
electrical power generating facilities and/or the transmission or distribution
of electrical power or natural gas.

          (p)   "Parent" has the meaning specified in the introductory paragraph
of this Agreement.

          (q)   "Person" means and includes an individual, a partnership, a
limited liability company, a joint venture, a corporation, a trust, an
unincorporated organization, a government or any department or agency thereof or
any entity similar to any of the foregoing.

          (r)   "Releasee" has the meaning specified in the form of General
Release attached hereto.

          (s)   "Releasor" has the meaning specified in the form of General
Release attached hereto.

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          (t)   "Schedule of Addresses" means the Schedule of Addresses attached
hereto and incorporated herein by reference.

          (u)   "Schedule of Deferred Compensation" means the Schedule of
Deferred Compensation attached hereto and incorporated herein by reference.

          (v)   "Schedule of Other Terminated Benefits" means the Schedule of
Other Terminated Benefits attached hereto and incorporated herein by reference.

          (w)   "Schedule of Positions" means the Schedule of Positions attached
hereto and incorporated herein by reference.

          (x)   "Schedule of Retirement Benefits" means the Schedule of
Retirement Benefits attached hereto and incorporated herein by reference.

          (y)   "Schedule of Vested Options" means the Schedule of Vested
Options attached hereto and incorporated herein by reference.

          (z)   "Voting Stock" means shares of capital stock of the Parent that
are entitled to vote in periodic elections for directors and any shares of
capital stock, or similar securities, of any Affiliate of the Parent which are
entitled to vote in periodic elections for directors or other similar governing
board members.

          (aa)  "Works" has the meaning specified in Section 4.05.

     SECTION 1.02   INTERPRETIVE MATTERS.  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 "includes" or
"including" shall mean "including without limitation."  References to a Section,
Article, Exhibit or Schedule shall mean a Section, Article, Exhibit or Schedule
of this Agreement, and 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.  This Agreement
and any documents or instruments delivered pursuant hereto shall be construed
without regard to the identity of the Person who drafted the various provisions
of the same.  Each and every provision of this Agreement and such other
documents and instruments shall be construed as though the parties participated
equally in the drafting of the same.  Consequently, the parties acknowledge and
agree that any rule of construction that a document is to be construed against
the drafting party shall not be applicable either to this Agreement or such
other documents and instruments.

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                   ARTICLE 2:    EMPLOYMENT AND COMPENSATION

     SECTION 2.01   RESIGNATION.  Effective upon the Company's approval and
execution of this Agreement, Executive does hereby resign from any and all
positions of responsibility or authority at the Company, any subsidiary or
Affiliate of the Company, any other entity in which the Company or any of its
Affiliates has an investment where Executive's position with such entity is
related to such investment, and any division, unit, plan, program, trust, fund,
project or other subdivision established, organized or sponsored by the Company
or any of its subsidiaries or Affiliates or any such other entity, whether such
position is that of an agent, officer, manager, member, partner, executive,
trustee, administrator, director or otherwise, provided that with respect to any
membership that Executive may have on the board of directors or similar
governing board of any publicly traded entity, Executive's resignation shall be
deemed deferred until the Company makes written request therefor.  Without
limiting the generality of the foregoing, Executive hereby resigns from all
positions set forth or described in the Schedule of Positions attached hereto
and incorporated herein by reference.  Notwithstanding the foregoing, if the
Effective Date is after the date hereof, then between the date hereof and the
Effective Date, Executive shall remain an employee of the Company on
administrative leave, entitled to compensation for such period at his current
base rate of salary and existing fringe benefits, but it is understood that
Executive shall have no authority to bind or to determine or direct any activity
of, or represent, the Company or any of its Affiliates during such period.  Upon
the Effective Date, and without any further action by Executive or the Company,
Executive's employment with the Company shall end.

     SECTION 2.02   FURTHER ASSURANCES.  To the extent necessary, Executive
agrees from time-to-time, upon the Company's reasonable request, to execute any
and all documents as may be necessary or desirable, in the reasonable and good
faith judgment of the Company or any of its Affiliates, to further confirm
and/or effectuate the aforesaid resignations.

     SECTION 2.03   EFFECT OF RESIGNATION.  Executive and the Company agree that
the resignation contained herein arises from the mutual agreement of the
Executive and the Company, resulting in a cessation of Executive's continued
employment. Accordingly, such resignation shall not be construed or deemed to be
a termination of Executive's employment by the Company, whether with or without
cause, or to constitute or be deemed to be any breach of any employment or other
obligation or duty by either the Executive or by the Company or any of its
Affiliates, whether express or implied, for any purpose, provided that for
purposes of construing the provisions of any employee benefit plan in which
Executive has been a participant, Executive's resignation shall be given the
same effect as a termination without cause.

     SECTION 2.04   COMPENSATION AND BENEFITS.  Executive hereby agrees that the
following, together with amounts that shall be payable to Executive under
Article 3 hereof in respect of Executive's Consulting Services, accurately
reflect all of the compensation,

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benefits or perquisites payable or otherwise to be provided to Executive by the
Company and its Affiliates on and after the Effective Date as a result of
Executive's employment by and separation from the Company and its Affiliates and
that Executive is not entitled to any other compensation, benefits, or
perquisites except as set forth in this Agreement:

          (a)   Salary.  On the Effective Date, Executive will receive accrued
base salary from the end of the immediately preceding payroll period for which
payment has been made through the Effective Date.

          (b)   Accrued Vacation.  On the Effective Date, the Company will pay
Executive such amounts as are due Executive for accrued and unused vacation time
in accordance with the Company's usual policies.  After the Effective Date,
Executive will not accrue or be paid for vacation time in connection with his
provision of consulting services to the Company.

          (c)   Executive Incentive Compensation Plan.  On the Effective Date,
the Company will pay Executive a bonus amount for the 1999 year under the
Company's Executive Incentive Compensation Plan equal to a gross amount, before
withholding, of Three Hundred Forty-Seven Thousand Two Hundred Fifty Dollars
Exactly ($347,250).  Executive shall not be entitled to any further payments
under the Company's Executive Incentive Compensation Plan, including for any
period after 1999.  Nothing in this paragraph shall create any inference or
expectation regarding bonuses actually to be paid to participants in such Plan
for the 1999 year, which may be above or below target amounts for individuals or
in the aggregate.

          (d)   Options. For purposes of the vesting of any unvested awards
previously made to Executive under the Edison International Equity Compensation
Plan or under the Edison International Management and Officer Long-Term
Incentive Compensation Plans (the "Equity Plans"), Executive's employment by the
Company shall be given the same effect as if Executive had remained regularly
employed through the Effective Date.  Executive and the Company agree that, as
of the Effective Date, Executive's vested options to acquire stock of the Parent
and vested phantom options in respect of the Company will be as set forth in the
Schedule of Vested Options attached hereto and incorporated herein by reference
(the "Options").  From and after the Effective Date, the Executive shall no
longer be eligible for grants of any awards under the Equity Plans or under any
other long-term incentive plan of the Company or its Affiliates, and except as
set forth in Section 3.02, all unvested awards shall terminate as of the
Effective Date.  On March 16, 2000, the Company shall pay to Executive, by wire
transfer in accordance with Executive's reasonable written instructions given at
least forty-eight (48) hours in advance, a gross amount, before withholding,
that is equal to the difference between $471.0642 per phantom share and the
pertinent exercise price of such share as shown on the Schedule of Vested
Options for each vested phantom Option of the Company.  From and after the date
hereof, Executive shall have no further rights or entitlements in respect of
such phantom Options or any phantom options in respect of the Company, except as
set forth in Section 3.02; provided that if,

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within six (6) months of the date hereof, the Company or any Affiliate of the
Company consummates an exchange offer with holders of phantom options of the
Company in which the stated exchange value (before interest and any contingent
amounts) per phantom share for purposes of the exchange offer exceeds $471.0642
per phantom share, then, within thirty (30) days following the completion of
such exchange offer, the Company shall pay to Executive a gross amount, before
withholding, equal to such excess multiplied by the number of vested phantom
Options of Executive shown on the Schedule of Vested Options. Following the
Effective Date, Options for stock of the Parent listed on the Schedule of Vested
Options, shall remain subject to the terms of the award and the Plan under which
they were granted, subject to the provisions of Section 3.02.

          (e)   Deferral Plans.  The Schedule of Deferred Compensation attached
hereto and incorporated herein by reference sets forth, as of the date shown,
the vested balance of Executive's deferral account in the Edison International
Executive Deferred Compensation Plan and units credited to Executive's stock
unit account in the Edison International Option Gain Deferral Plan.  All
deferred compensation benefits shown on the Schedule of Deferred Compensation,
following the Effective Date, shall remain subject to the terms of the Deferred
Compensation Plan applicable thereto.

          (f)   Retirement Benefits.  The Schedule of Retirement Benefits
attached hereto and incorporated herein by reference sets forth, as of the
Effective Date, the vested benefits payable to Executive under retirement plans
of the Company and its Affiliates in which he has been a participant.  All such
benefits shown on the Schedule of Retirement Benefits, following the Effective
Date, shall remain subject to the terms of the pertinent retirement plan
applicable thereto, including the conditions to payment set forth therein.
After the Effective Date, there will be no further accrual of benefits for
Executive under such retirement plans.

          (g)   Health Benefits.  From the Effective Date until eighteen (18)
months thereafter, Executive and his family shall remain eligible to continue to
participate in medical and dental plans of the Company and its Affiliates on the
same basis as if Executive had remained employed by the Company in his current
position, provided that Executive shall be responsible for paying the premium
costs therefor in accordance with the Company's ordinary practices in respect of
former employees, subject to the further provisions of Section 3.02.

          (h)   Other Insurance Coverage.  Executive acknowledges that, except
as provided in Section 2.04(g) above and Section 3.02(c), no life, health,
accident, disability or other insurance policies or health or welfare benefits
will be provided for him by the Company or its Affiliates after the Effective
Date.

          (i)   Contract Costs.  The Company will reimburse Executive for the
reasonable fees and costs of any attorney, financial advisor, accountant and/or
other professional

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advising and assisting Executive in the negotiations of this Agreement, up to
Twenty-Five Thousand Dollars ($25,000) in the aggregate.

          (j)   Outstanding Expense Reports.  Executive agrees to submit to the
Company an expense report for all reimbursable and reasonable expenses he has
incurred as an employee of the Company no later than the fifteenth business day
following the Effective Date, and acknowledges that the business expenses to be
contained in such expense report will be the only remaining reimbursable
business expenses incurred by Executive while in the Company's employ.  The
Company will reimburse Executive for such expenses within thirty (30) days of
Executive's submission of the report, to the extent such expenses are valid and
reimbursable under Company policy.

          (k)   Severance.  On the Effective Date, the Company shall make a one-
time severance payment to Executive in an amount, prior to withholding, that is
equal to Five Hundred Thousand Dollars Exactly ($500,000).

          (l)   Other Compensation.  Executive acknowledges that from and after
the Effective Date, all other compensation, benefits and perquisites to which he
has been entitled as an employee of the Company shall forthwith terminate and
that he shall no longer be entitled to receive the same, including without
limitation, reimbursement for the costs of a car and driver and for private club
memberships.  Without limiting the generality of the foregoing, the other
benefits and perquisites in which Executive currently participates which shall
no longer be available to him after the Effective Date are as set forth in the
Schedule of Other Terminated Benefits attached hereto and incorporated herein by
reference.

     SECTION 2.05   WITHHOLDING.  Executive agrees that all compensation,
benefits and perquisites payable hereunder shall be paid after withholding for
taxes which, in the Company's reasonable good faith judgment, are required to be
withheld by the Company, including income taxes at the then current published
federal and state rate unless Executive elects to use a higher rate.
Notwithstanding the foregoing, it is understood that all personal income and
related taxes applicable to any and all compensation, benefits and perquisites
payable hereunder shall be paid by Executive, and the Company shall not be
obligated to pay any such taxes or to provide Executive with funds for the
payment of same.

     SECTION 2.06   COMPANY PROPERTY.  Executive agrees to return to the
Company, as soon as practicable, but in any event on or prior to the Effective
Date, all Company property, including, but not limited to, all keys, credit
cards, documents, equipment (including computer and telephone equipment)
automobiles, files, data and records of any kind whatsoever that he has in his
possession or control (except for any Company property that the Company
authorizes Executive in writing to retain for purposes of his providing the
Consulting Services hereunder) regardless of the form for storage thereof
(whether documentary, on discs or present on other electronic media).  The
Company agrees to permit Executive to retain copies of documents that are
contained in his office files and that are personal

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in nature, subject to the Company's prior review of such materials and approval
of their retention by the Executive. Notwithstanding the foregoing, (a) subject
to the Company's satisfaction that all Company information and programs have
been removed therefrom, Executive may retain the Company's personal computer
currently at Executive's residence, and (b) the Company will cooperate and work
together with Executive to facilitate Executive's assumption of the Company's
future obligations in respect of the automobile currently leased by the Company
for Executive.

     SECTION 2.07   RELEASES.  In further consideration of the Company's entry
into this Agreement with Executive and its promise to make payments and to
provide benefits hereunder to which Executive is not otherwise entitled,
Executive is, concurrent with the Company's execution of this Agreement,
delivering to the Company executed copies of the forms of releases attached
hereto, respectively, as "Form of General Release" and "Form of Age
Discrimination Release."  In the event that the Executive exercises his right to
rescind the Age Discrimination Release, then notwithstanding any other provision
of this Agreement, the Company shall have the right, within five (5) days
thereafter, to terminate any and all further obligations of the parties under
this Agreement.

                            ARTICLE 3:  CONSULTING

     SECTION 3.01   CONSULTING SERVICES.  During the Consulting Term, Executive
will, when reasonably requested to do so by the Company's Chairman, Chief
Executive Officer or Board of Directors, provide the Company and its officers
and directors with strategic consulting and advisory services related to
material aspects of the Company's business.  All Consulting Services provided
hereunder will be provided on an "as requested" basis, subject to Executive's
reasonable availability.  Without limiting the generality of the foregoing, and
subject to the Company's compensating the Executive for additional time as
provided for herein, Executive shall not be required to expend more than forty
(40) hours per month on providing Consulting Services hereunder.  When requested
to provide Consulting Services, Executive shall endeavor to do so in a
professional, diligent and workmanlike manner, providing the Company and its
Affiliates with the benefit of his best, informed and professional judgment.
All Consulting Services shall be provided by Executive personally, but Executive
shall have the right to obtain the assistance of his employees at no additional
cost to the Company.

     SECTION 3.02   COMPENSATION.  In consideration of his providing the
Consulting Services and subject to the terms and provisions of this Agreement
and Executive's compliance therewith, the Company shall pay to the Executive the
following compensation:

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          (a)  The Company shall pay Executive a consulting fee at the rate of
Three Hundred Thousand Dollars ($300,000) per annum, payable in equal monthly
installments on the last day of each month during the Consulting Term (pro-rated
for partial months during the Term).

          (b)  In the event that Executive provides more than forty (40) hours
of Consulting Services in any calendar month, then the Company shall also pay
Executive $[300] for each such additional hour, provided that within thirty (30)
days following the close of such month, Executive submits to the Company an
invoice setting forth time expended for Consulting Services during such month in
reasonable detail and with such supporting documentation as the Company may
reasonably request.

          (c)  During the Consulting Term, the Company shall reimburse
Executive, or, if requested by Executive, pay directly on Executive's behalf, up
to Twenty Thousand Dollars ($20,000) per annum in the aggregate, for Executive's
premium costs for health care benefits comparable to those referred to in
Section 2.04(g) and premium costs for disability insurance coverage comparable
to that now enjoyed by Executive under the Company's long-term disability plan
(to the extent commercially available), subject in each case to the Company's
receipt from time-to-time and upon request of customary certifications of
Executive's ineligibility for health care or disability benefits, as the case
may be, under a plan of another employer.

          (d)  Notwithstanding any other provision of the Equity Plans, certain
unvested awards of options for Parent company stock granted to the Executive in
1998 and 1999 shall continue to vest as follows.  One twenty-fourth (1/24) of
the 6,650 currently unvested Parent company options granted to Executive on
January 2, 1998, and one twenty-fourth (1/24) of the 17,325 currently unvested
Parent company options granted to Executive on January 4, 1999, shall continue
to vest at the end of each calendar month completed during the Consulting Term
(pro-rated for the partial periods from the Effective Date to January 31, 2000,
and from January 1, 2002 to January 18, 2002).  Furthermore, the term for the
exercise by Executive of any vested options to acquire capital stock of the
Parent that are listed on the Schedule of Vested Options or that are vested
pursuant to the provisions of this Section 3.02(d) shall be extended to, and
including, the 180/th/ day following the end of the Consulting Term.

          (e)  Notwithstanding any other provision of the Equity Plans, certain
unvested awards for phantom options in respect of the Company granted to the
Executive in 1998 and 1999 shall continue to vest as follows.  One twenty-fourth
(1/24) of the 3,930 currently unvested phantom options granted to Executive on
January 2, 1998, and one twenty-fourth (1/24) of the 8,010 currently unvested
phantom options granted to Executive on January 4, 1999, shall continue to vest
at the end of each calendar month completed during the Consulting Term (pro-
rated for the partial periods from the Effective Date to January 31, 2000, and
from January 1, 2002 to January 18, 2002).  Within ten (10) days following the
close of each calendar month as of the end of which unvested options have vested
pur-

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suant to the preceding sentence, the Company shall pay to Executive a gross
amount, before withholding, that is equal to the difference between $471.0642
(subject to adjustment in accordance with the proviso to the penultimate
sentence of Section 2.04(d)) for each phantom option that vested at the end of
the preceding month under this Section 3.02(e) and the pertinent exercise price
thereof. By way of example, if there were 12,000 unvested options, 500 options
would vest monthly, and the Company would pay Executive on a monthly basis the
excess of $471.0642 (subject to adjustment in accordance with the proviso to the
penultimate sentence of Section 2.04(d)) per option over the exercise price of
each of such 500 options.

          (f)  The Company may, in its discretion, withhold taxes from amounts
due Executive under this Section 3.02 unless and to the extent an acceptable
legal opinion is received from Executive's legal counsel to the effect that
withholding is either not applicable or not required.

     SECTION 3.03   EXPENSE REIMBURSEMENT.  The Company will reimburse
Executive, in accordance with the Company's customary practices, for reasonable
and customary out-of-pocket expenses which are pre-approved by the Company and
actually incurred and paid by Executive as a result of and directly related to
the provision of Consulting Services, provided that such expenses would be
reimbursable to management executives of the Company under then prevailing
Company policies.  In no event shall such expenses include salaries of
Executive's employees, or other overhead costs.

     SECTION 3.04   INDEMNITY.  The Company shall indemnify and hold harmless
Executive and his Affiliates from and against any and all Claims, actual or
threatened (including all expenses incurred in connection therewith as they are
incurred) arising from or related to Executive's performance of the Consulting
Services, except to the extent that such Claims or threatened Claims arise from
or are related to the breach of this Agreement by Executive or the gross
negligence or willful misconduct of Executive or his Affiliates, for which
Executive shall indemnify and hold harmless the Company and its Affiliates to
the same extent as the Company would otherwise be obligated to provide indemnity
to Executive.

     SECTION 3.05   RELATIONSHIP BETWEEN PARTIES. The parties acknowledge and
agree that the provision of the Consulting Services shall not create any
association, partnership, joint venture, agency or employer and employee
relationship between the Company and the Executive. Executive acknowledges that
Executive is being engaged as an independent contractor, and Executive will not
be eligible for benefits generally available to the employees of the Company. In
the performance of the Consulting Services, Executive agrees at his sole cost
and expense to materially comply with all applicable laws and with such
requirements or restrictions as may be imposed by any governmental authority,
including the procurement of any applicable permits and compliance with any
applicable laws now or hereafter in effect relating to Executive's provision of
Consulting Services or Execu-

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tive's hiring of any employees in connection therewith, including any applicable
workers' compensation, unemployment, and wages and hours laws.

     SECTION 3.06   LIMITATIONS ON AUTHORITY.  Except as may be expressly
authorized in writing from time to time by the Company's chief executive
officer, Executive agrees that he will not have authority to, and that he will
not, in connection with the Consulting Services,  (a) enter into any contracts
or other undertakings binding on, or imposing any obligations or liabilities on,
the Company or any of its Affiliates, or (b) make any representations to any
Person(s) that either Executive or any Person acting under his authority has the
authority to act for the Company or any of its Affiliates or represent that
either Executive or any Person in his employ or under his authority is engaged
by the Company or any of its Affiliates in any capacity other than the
engagement hereunder as a consultant.

     SECTION 3.07   EARLY TERMINATION.  In addition to any other rights or
remedies at law, in equity or pursuant to any other provisions of this
Agreement, the consulting relationship created hereby may be terminated as
follows:

               (a)  By the Company at any time:

               (i)     Upon written notice to Executive in the event of his
     material breach or default hereunder, provided that if such material breach
     or default is curable, then Executive shall have thirty (30) days to cure
     the default or breach;

               (ii)    Upon written notice to Executive pursuant to the
     provisions of Section 4.03(a), or in the event of his habitual neglect of
     duty, or in the event of his failure to follow reasonable instructions
     consistent with the scope of his engagement from the Company's Chief
     Executive Officer, Chairman or Board of Directors, or in the event of any
     gross negligence, willful misconduct or intentionally tortious acts or
     omissions, or in the event of any acts of material dishonesty, committed by
     Executive in the course of providing Consulting Services;

               (iii)   Upon the death or permanent disability of Executive (as
     determined in accordance with the Company's customary policy); or

               (iv)    Upon thirty (30) days' prior written notice to Executive
     for any other reason or for no reason; or

               (b)  By the Executive, at any time on or after the expiration of
     six (6) calendar months from the Effective Date, upon thirty (30) days'
     prior written notice to the Company for any reason or for no reason.

In the event of any termination arising under Section 3.07(a)(i), (ii) or (iii)
or Section 3.07(b), then and in such event the Company shall be obligated to pay
the compensation set

                                       11
<PAGE>

forth in Section 3.02 that is due hereunder to the date of termination only and
shall have no obligation to provide further compensation thereafter, and all
currently unvested options and phantom options shall cease vesting under
Sections 3.02(d) and (e) or otherwise as of the end of the calendar month
immediately preceding such date of termination, provided that if the Consulting
Term has not earlier terminated pursuant to Section 3.07(a)(i) or (ii) or under
Section 3.07(b), all then unvested options and phantom options shall vest and be
paid upon any termination under Section 3.07(a)(iii). In the event of any
termination under Section 3.07(a)(iv), the Company shall remain obligated to
continue to provide the compensation to Executive that would otherwise become
due thereafter under the terms of Section 3.02 of this Agreement but for such
termination, and Executive's rights under Sections 3.02(d) and (e) shall be
unaffected by such termination. In the event the Company wishes to obtain
insurance for its obligations in the event of Executive's death or disability,
Executive agrees to reasonably cooperate with the Company in such endeavor.

                 ARTICLE 4: ADDITIONAL COVENANTS OF EXECUTIVE

     SECTION 4.01   CONFIDENTIALITY.

          (a)   Executive acknowledges that he has held a sensitive management
position with the Company and that, by virtue of having held such position, he
has had access to and has learned the Company's and its subsidiaries' and
Affiliates' confidential and proprietary information and trade secrets
pertaining to its and their past, present, planned or projected operations,
results of operations, prospects, processes, know-how, services, projects,
strategies, techniques, procedures, financial capabilities, assets,
transactions, partners, financing sources and personnel, disclosure of any of
which to present or future competitors, investors, partners or the general
public would be highly detrimental to the best interests of the Company and its
Affiliates.  All such confidential and proprietary information to which
Executive has had prior access as a result of his position with the Company, and
all similar information to which Executive may have access in the future as a
result of performing Consulting Services, are herein referred to as
"Confidential Information."  Examples of such confidential and proprietary
information include, but are not limited to, the Company's investigations of and
development and analytical work on potential future electric generation assets,
both those potentially to be constructed and those potentially to be acquired.
Executive further acknowledges and agrees that the right to maintain the
confidentiality of such Confidential Information constitutes a proprietary right
which the Company and its Affiliates are entitled to protect.

          (b)  Accordingly, without limiting any obligations of Executive
arising at law or pursuant to any existing agreement to which Executive is
bound, Executive covenants and agrees to and in favor of the Company that,
subject to the further provisions of this

                                       12
<PAGE>

Agreement, Executive shall not disclose any Confidential Information to any
Person other than as approved by the Company in writing in advance in connection
with Executive providing Consulting Services hereunder, and Executive shall not
use for the Executive's own purposes or for any purpose other than those of the
Company and its Affiliates any Confidential Information during the Consulting
Term or at any time thereafter until such Confidential Information has been
otherwise publicly disclosed. Without limiting the generality of the foregoing,
Executive agrees that, except as permitted in writing by the Company, he will
not respond to or in any way participate in or contribute to any public
discussion, notice or other publicity concerning or in any way related to
Confidential Information or, subject to Section 5.10, any matters concerning his
employment at the Company. Executive agrees that any disclosure by him of any of
the Confidential Information shall constitute a material breach of this
Agreement and of his fiduciary obligations to the Company.

          (c)  For purposes of this Section 4.01, "Confidential Information"
does not include information which (i) is or becomes generally available to the
public other than as a result of disclosure by Executive, or (ii) was within the
Executive's possession prior to being furnished to the Executive by or on behalf
of the Company or its Affiliates, provided that the Executive did not receive
such information in a fiduciary capacity and provided further that the scope of
such information was not known to the Executive to be bound by a confidentiality
agreement with or other contractual, legal or fiduciary obligation of
confidentiality to the Company or any of its Affiliates or any other Person with
respect to such information.

          (d)  If Executive is requested or required (by oral questions,
interrogatories, requests for information or documents in connection with any
legal proceedings, subpoena, civil investigative demand or other similar
process) to disclose any Confidential Information, then Executive shall provide
the Company with prompt written notice of any such request or requirement so
that the Company may seek a protective order or other appropriate remedy and/or
waive compliance with the provisions of this Agreement.  If, in the absence of a
protective order or other remedy or the receipt of a waiver from the Company,
the Executive is, in the written opinion of counsel reasonably acceptable to the
Company (the reasonable attorney's fees and costs of which opinion the Company
shall reimburse), legally compelled to disclose Confidential Information to any
tribunal or else stand liable for contempt, or suffer other censure or penalty,
then Executive may, without liability hereunder, disclose to such tribunal only
that portion of the Confidential Information which such counsel advises the
Executive is legally required to disclose, provided that Executive exercises
commercially reasonable efforts to preserve the confidentiality of the
Confidential Information, including, without limitation, by cooperating with the
Company to obtain an appropriate protective order or other reliable assurance
that confidential treatment will be accorded the Confidential Information by
such tribunal.

          (e)  Without limiting the provisions of Section 2.06, all files,
forms, brochures, books, materials, written correspondence, memoranda,
documents, manuals, computer

                                       13
<PAGE>

disks, software products and lists that have in the past or may in the future
come into the possession or control of the Executive as a result of his being an
employee of or consultant to the Company shall at all times remain as the
property of the Company and not of the Executive. At the times required by
Section 2.06, upon conclusion of the Consulting Term and at any other time or
times demanded by the Company, Executive shall deliver promptly to the Company
all such property in the possession of the Executive or directly or indirectly
under the control of the Executive. Executive agrees not to make, for the use of
the Executive or of any other Person, reproductions or copies of any such
property or other property of the Company.

          (f)  Executive agrees that following his employment by the Company,
he will not, without the prior written consent of the Chief Executive Officer of
the Company, undertake employment or provide services for any Person other than
the Company or its Affiliates if the loyal and complete fulfillment of his
duties in connection with such employment or services would require him to
reveal or otherwise use any Confidential Information in violation of the
provisions hereof.

     SECTION 4.02 STOCK ACTIVITY.  Executive hereby agrees that from the date
hereof until the second anniversary of the Effective Date, Executive shall not:

               (a)  Acquire, by purchase or otherwise (except pursuant to
     Executive's participation in employee benefit plans), offer to acquire or
     obtain the right to acquire, propose to acquire, announce any intention or
     plan to acquire, or announce or make any request for permission to acquire,
     directly or indirectly, any shares of Voting Stock, or any other security
     convertible into or exercisable or exchangeable for Voting Stock, unless
     (i) following such acquisition and after giving effect thereto, the
     Executive and any Group of which he is a member, would not be directly or
     indirectly the beneficial owners of more than five percent (5%) of the
     outstanding shares of Voting Stock of the Parent, the Company or any
     Affiliate thereof, as the case may be, and (ii) such acquisitions or offers
     or agreements to acquire are made in open market transactions (or pursuant
     to the Equity Plans);

               (b)  Directly or indirectly engage in, or become a member of a
     Group which is engaging or which subsequently engages in, any tender offer
     or exchange offer for any shares of Voting Stock;

               (c)  Take any other action, participate in or become a member of
     any Group, or make any proposal, offer to acquire or obtain a right to
     acquire, propose to acquire, announce any intention or plan to acquire, or
     announce or make any request for permission to acquire, directly or
     indirectly or alone or together with others, control of the Company or of
     any Affiliate of the Company or of any division, business segment or
     significant amount of assets of the Company or of any Affiliate of the
     Company;

                                       14
<PAGE>

               (d)  Enter into any voting agreement or proxy arrangement with
     respect to shares of Voting Stock, or deposit any shares of Voting Stock
     into any voting trust or similar entity, as a result of which the voting
     rights associated with any or all of Executive's Voting Stock are vested in
     another Person, other than proxies (or their substitutes) designated by the
     Board of Directors of the issuer of such Voting Stock in proxy material for
     any meeting of stockholders of such issuer;

               (e)  Conduct or become a participant in any solicitation of
     proxies with respect to Voting Stock, or make any announcement with respect
     to any solicitation of proxies, for the purpose of opposing a solicitation
     (for election of directors or otherwise) approved by a majority of the
     whole Board of Directors of the issuer of such Voting Stock, or present any
     proposal, or solicit or become a participant in the solicitation of proxies
     in favor of a proposal, for action at a meeting of the stockholders of such
     issuer, which is not approved by a majority of the whole Board of Directors
     of such issuer;

               (f)  Enter into any plan, agreement or arrangement, or become a
     member of any Group, for the purpose of engaging in any activity prohibited
     by the foregoing paragraphs of this Section 4.02; or

               (g)  Assist any other Person in connection with such other
     Person's engaging in any activity which, if engaged in by the Executive,
     would constitute a violation of this Section 4.02.

     SECTION 4.03   NON-COMPETITION.

          (a)  Without limiting the provisions of Sections 4.01. 4.02 and 4.04,
and as a further inducement to the Company to enter into this Agreement,
Executive agrees that, except as otherwise permitted hereby, until the
expiration of six (6) calendar months from the Effective Date, or until the end
of the Consulting Term if the Consulting Term ends after the expiration of six
(6) calendar months from the Effective Date, Executive shall not, directly or
indirectly, for his own account or as agent for another, carry on or participate
in the ownership, management or control of, or be employed by, or serve as a
director of, or consult for, or license or provide know-how to, or otherwise
render services to, or allow his name or reputation to be used in or by, any
other present or future business enterprise that, either alone or together with
its Affiliates, engages in the Line of Business and competes with current or
planned activities of the Company and its Affiliates anywhere in the world
without the prior written approval of the Chief Executive Officer of the
Company. In the event of any violation of the foregoing, then and in such event
the Company may, upon notice to Executive, terminate the consulting relationship
between Executive and Company without limiting any other remedies of the
Company.

                                       15
<PAGE>

          (b)   Notwithstanding the foregoing, nothing herein shall limit the
right of Executive, as an investor, to hold and make investments in securities
of any corporation or other entity that competes in the Line of Business with
the Company and its Affiliates and that is registered on a national securities
exchange or admitted to trading privileges thereon or actively traded in a
generally recognized over-the-counter market, provided that the aggregate of all
of Executive's beneficial ownership therein does not exceed one percent (1%) of
the outstanding equity interests in such corporation or other entity.

          (c)   Executive acknowledges that he considers the restrictions set
forth in this Section 4.03 to be reasonable both individually and in the
aggregate and that the duration, geographic scope, extent and application of
each of such restrictions are no greater than is necessary for the protection of
the legitimate interests of the Company and its Affiliates.  In the event that
any restriction herein shall be found to be void or unenforceable but would be
valid or enforceable if some part or parts thereof were deleted or the period or
area of application reduced, each of the parties hereby agrees that such
restriction shall apply with such modification as may be necessary to make it
valid.

     SECTION 4.04   NON-SOLICITATION; NON-DISPARAGEMENT; NON-INTERFERENCE.
During the period that begins on the date hereof and that ends on the second
anniversary of the Effective Date, Executive agrees that he will not, directly
or indirectly, for his own benefit, for the benefit of any Person other than the
Company or its Affiliates, or otherwise:

          (a)   Solicit, encourage or induce, or assist any Person to solicit,
     encourage or induce, any officer, director, executive or employee of the
     Company or its Affiliates to leave his or her employment with the Company
     or its Affiliates for any reason, it being agreed that the foregoing shall
     not prohibit Executive from soliciting the employment of his current
     secretarial assistant;

          (b)   Induce or attempt to induce any customer, supplier, financier,
     government agency, independent contractor, developer, promoter or other
     Person having any business or regulatory relationship with the Company or
     any of its Affiliates to cease, reduce or alter the nature, amount or terms
     of business conducted or regulatory oversight or practices followed with
     respect to the Company or any of its Affiliates or to engage in any
     business, regulatory or other activity which might materially harm the
     Company or any of its Affiliates or which is opposed by the Company and its
     Affiliates;

          (c)   Make or cause to be made any public statement that is
     disparaging of the Company or any of its Affiliates or their respective
     businesses or that materially injures the business or reputation of the
     Company or any of its Affiliates or their respective businesses; or

          (d)   Directly or indirectly advise, consult or discuss with, provide
     information to, or assist any Person, including any holder of phantom

                                      16
<PAGE>

     options in the Company or any advisor or representative of any such holder,
     or make any comment or offer or provide any opinion or otherwise make
     statements, concerning the phantom options, or the grant, appreciation,
     value, or exercise thereof, or any transaction or proposed transaction in
     respect of such phantom options, including without limitation any planned
     or actual exchange offer by the Company therefor, or any interpretation or
     action by the Company planned or actually made with respect to such phantom
     options, or any claims or proceedings, whether pending or threatened,
     relating to such phantom options, without the prior written consent of the
     Chief Executive Officer of the Company, except and to the extent compelled
     by law.

     SECTION 4.05  OWNERSHIP OF WORKS.  As between the Company and Executive,
the Company shall be the sole and exclusive owner, throughout the universe, in
perpetuity, of all right, title, interest, benefits and profits of every kind
and nature whatsoever, whether now known or unknown, in, to and from all
programs, financial or business plans, all non-generic ideas and concepts,
logos, discoveries, trade secrets, prospect lists, or other tangible work
product and materials (including, without limitation, tangible materials
containing market, financial and other research) of every kind and nature
whatsoever (collectively, the "Works") written, conceived, developed, furnished
or created by or under the auspices of Executive in connection with his
performance of duties as an employee of or consultant to the Company, and all
results, benefits and proceeds of such Works (all of such Works, results,
benefits and proceeds being collectively referred to as the "Materials").  All
of such Materials shall constitute a "work made for hire" for the Company within
the meaning of the United States Copyright Act of 1976, as amended.  In the
event that the Materials or any portion thereof are for any reason whatsoever
not deemed to be a "work made for hire" for the Company, Executive hereby grants
and assigns to the Company all right, title, interest, benefits and profits of
every kind and nature whatsoever, whether now known or unknown, in, to and from
the Materials.  As between the Company and Executive, the Company shall at all
times have the perpetual and exclusive right to exploit such Materials and all
works derived therefrom throughout the universe, and all revenues and other
benefits and profits derived by the Company from such exploitation, as between
the Company and Executive, shall be the sole and exclusive property of the
Company.  Executive agrees to execute, and to cause each of his employees or
agents to execute, any and all formal assignments, recordations and any other
documents which the Company reasonably deems are necessary or desirable to
effectuate and/or evidence the Company's rights in and to the Materials.

     SECTION 4.06  COOPERATION WITH LEGAL PROCESS.  From and after Executive's
employment with the Company, the Company shall, consistent with the Company's
then existing policies for indemnification of officers, continue to indemnify
Executive for his activities as an officer, director and employee of the Company
to the extent provided under and permitted by, and subject to the provisions and
conditions of, law and the charter documents of the Company in effect at the
time, as though Executive remained an officer,

                                      17
<PAGE>

director and/or employee of the Company. In return, Executive agrees to provide
reasonable cooperation and assistance to the Company, when and as requested by
the Company and without charge to the Company except for the Executive's
reasonable and bona fide out-of-pocket costs (including reasonable attorney's
fees and costs), in connection with any and all pending or threatened claims,
proceedings and investigations (whether on behalf of or against the Company)
arising out of, or alleged to arise out of, facts or circumstances existing
during the term of Executive's employment by the Company.

                        ARTICLE 5:    GENERAL PROVISIONS

     SECTION 5.01   OPPORTUNITY TO REVIEW WITH COUNSEL.  Executive represents
that he has discussed all aspects of this Agreement with an attorney of his
choice, that he has carefully read and fully understands all of the provisions
of this Agreement and that he is voluntarily entering into this Agreement.

     SECTION 5.02   CHOICE OF LAW.  This Agreement shall be governed by, and
construed in accordance with, the laws of the State of California, without
reference to the choice of law doctrine of California.

     SECTION 5.03   REMEDIES.  The rights and remedies of each party under this
Agreement are not, except as expressly provided herein to the contrary, to the
exclusion of each other or of any other rights or remedies of such party.  Each
party may exercise or decline to exercise any one or more of its rights and
remedies without waiver of any such subsequent exercise of such right and remedy
or any other rights and remedies of such party.  Executive acknowledges that the
Company cannot be properly protected from adverse consequences if Executive
should default under specified provisions of this Agreement.  Accordingly, the
Executive agrees that in the event of any breach or threatened breach by
Executive of any of the provisions of Sections 3.06, 4.01, 4.02, 4.03, 4.04 or
4.05, the Company, in addition to any other right or relief to which it may be
entitled, shall be entitled to an order enjoining such breach or threatened
breach and specifically enforcing Executive's compliance with the provisions
thereof, Executive agreeing that he is hereby estopped and prohibited from
arguing that damages are an adequate remedy for any such breach or threatened
breach or that such equitable relief is inappropriate under the circumstances.

     SECTION 5.04   SEVERABILITY.  Without limiting the applicability of Section
4.03(c), if any term or other provision of this Agreement is invalid, illegal or
incapable of being enforced by any law or public policy, all other terms and
provisions of this Agreement shall nevertheless remain in full force and effect
so long as the economic or legal substance of the provisions hereof is not
affected in any manner materially adverse to any party.  Upon such determination
that any term or other provision is invalid, illegal or incapable of being
enforced, the parties hereto shall negotiate in good faith to modify this
Agreement so as to effect the original intent of the parties as closely as
possible in an acceptable manner in order

                                      18
<PAGE>

that the provisions hereof are implemented and enforced as originally
contemplated to the greatest extent possible.

     SECTION 5.05   NO AMENDMENT; Entire Agreement; No Waiver.  This Agreement
and the Schedules and attachments hereto constitute the entire agreement of the
parties with respect to the subject matter hereof and supersede all prior
agreements and undertakings, both written and oral, between the parties with
respect to the subject matter hereof.  Without limiting the generality of the
foregoing, Executive specifically represents and acknowledges that in executing
this Agreement, he does not rely and has not relied on any representations or
statements made by the Company, or any of the Company's agents, representatives
or attorneys with regard to the subject matter, basis or effect of this
Agreement, or otherwise.  This Agreement may not be amended except by an
instrument in writing signed by the parties. Either party may (a) extend the
time for the performance of any of the obligations or other acts of the other
party, or (b) waive compliance with any of the agreements applicable to the
other party contained herein.  Any such extension or waiver shall be valid only
if set forth in an instrument in writing signed by the party to be bound
thereby.  Any waiver of any term or condition shall not be construed as a waiver
of any subsequent breach or a subsequent waiver of the same term or condition,
or a waiver of any other term or condition, of this Agreement.  The failure of a
party to assert any of its rights hereunder shall not constitute a waiver of any
of such right.

     SECTION 5.06   RIGHT OF OFFSET.  The Company shall have the right to offset
against amounts owed Executive by the Company any amounts which, in the future,
Executive owes to the Company.

     SECTION 5.07   PARTIES IN INTEREST.  This Agreement may not be assigned or
transferred by either party, by operation of law or otherwise, without the prior
written consent of the other party (which consent may be granted or withheld in
the sole discretion of such other party).  This Agreement shall be binding upon
and inure solely to the benefit of the parties and their permitted assigns and
nothing herein, express or implied, is intended to or shall confer upon any
other Person any legal or equitable right, benefit or remedy of any nature
whatsoever under or by reason of this Agreement.

     SECTION 5.08   NOTICES.  Any notice, payment, demand, or communication
required or permitted to be given by any provision of this Agreement shall be in
writing and shall be deemed to have been delivered, given, and received for all
purposes (a) if delivered personally to the Person to whom it is addressed, or
(b) when the same is actually received, if sent by a nationally recognized
courier service (which provides proof of delivery), by registered or certified
mail (postage and charges prepaid), or by facsimile (if such facsimile is
followed by a hard copy of the facsimile communication sent promptly thereafter
by a nationally recognized courier service (which provides proof of delivery) or
registered or certified mail (postage and charges prepaid)), addressed as set
forth in the Schedule of Addresses attached hereto and incorporated herein by
reference or to such other address as such Person may from time to time specify
by due notice.

                                      19
<PAGE>

     SECTION 5.09   COUNTERPARTS.  This Agreement may be executed in one or more
counterparts, and by the Parties in separate counterparts, each of which when
executed shall be deemed to be an original but all of which taken together shall
constitute one and the same agreement.

     SECTION 5.10   PUBLICITY.  The parties agree that, for a period of at least
six (6) months, they will keep the terms, amounts and facts of this Agreement
completely confidential, and that they will not during such period disclose any
information concerning this Agreement to anyone except their respective
attorneys or accountants, including, but not limited to, any past, present or
prospective employees of the Company or any of its Affiliates, except in each
case as may be required by law, including, without limitation, filings required
by the Company and by its parent entity with the Securities and Exchange
Commission.  Notwithstanding the foregoing, the parties shall mutually agree
upon forms for a press release, internal communications and answers to press
questions to be used in connection with announcing Executive's resignation.
Subject to Executive conforming and limiting his statements to the substance of
such mutually agreed upon press release, internal communications and answers to
press questions, Executive may respond to press or analyst inquiries concerning
his resignation.

     SECTION 5.11   HEADINGS.  The descriptive headings contained in this
Agreement and table of contents of this Agreement are for convenience of
reference only and shall not affect in any way the meaning or interpretation of
this Agreement.

     SECTION 5.12   ATTORNEYS FEES.  In any litigation or proceeding relating to
this Agreement, the prevailing party shall be entitled to recover its costs and
reasonable attorney fees.

     SECTION 5.13   FURTHER ASSURANCES.  The parties agree to execute such
further instruments and perform such further acts as may be reasonably necessary
to carry out the intent and purposes of this Agreement.

     SECTION 5.14   ADDITIONAL COVENANTS OF THE COMPANY.  The Company agrees
that, for a period of two (2) years from the Effective Date, the Company and its
Affiliates will not publicly issue any press release that disparages, or
materially injures the business or reputation of, the Executive, and will make
reasonable efforts to prevent their executive officers and official
spokespersons from making public statements on behalf of the Company or its
Affiliates that are disparaging of Executive or materially injure his business
or reputation.  The Company further agrees to exercise reasonable efforts to
cause personal mail addressed to Executive to be forwarded to him in a timely
fashion (Executive agreeing to make reasonable efforts to notify third parties
of the change in his business address).

     SECTION 5.15   DISPUTE RESOLUTION.  All disputes arising out of or relating
to this Agreement shall be resolved pursuant to the reference procedure set
forth in California Code of Civil Procedure 638 et seq.  The parties hereby
agree to submit to the jurisdiction of

                                      20
<PAGE>

the Superior Court of Los Angeles County for such purpose. Either party may
initiate the procedure set forth in this Section by providing the other party
with notice setting forth the nature of the dispute. The parties shall designate
to the Superior Court a referee who is an active attorney or retired judge
living in Los Angeles County who shall resolve the dispute. If the parties are
unable to designate a referee within 20 days after the receipt of the original
referral notice, the parties shall request that the Superior Court appoint a
referee. In connection with any proceeding pursuant to this Section, the parties
shall have all discovery rights which would have been available had the matters
which are the subject of the dispute been decided by the Superior Court.
Discovery proceedings may be noticed and commenced immediately after delivery of
the original referral notice. The hearing before the referee shall begin no
later than 60 days after the receipt of such referral notice. All discovery in
connection with the reference procedure shall be concluded no later than 15 days
prior to the commencement of the hearing. Judgment upon the award rendered by
the referee shall be entered in the Superior Court. Nothing in this Section
shall be construed to impair the right of either party to appeal from such
judgment.

     SECTION 5.16 APPROVALS. The effectiveness and implementation of this
Agreement are subject to the approval of the Boards of Directors of the Company
and the Parent and the Compensation and Executive Personnel Committee of the
Board of Directors of the Parent.

                                      21
<PAGE>

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

                             /s/ Edward R. Muller
                             -------------------------------------
                             Edward R. Muller

                              EDISON MISSION ENERGY

                              By: /s/ John E. Bryson
                                  --------------------------------

                              Title: Chairman
                                     -----------------------------

                              By: /s/ Alan J. Fohrer
                                  --------------------------------

                              Title: /s/ Pres & CEO
                                     -----------------------------

          With respect to Sections 2.04 and 3.02 only:

                              EDISON INTERNATIONAL

                              By: /s/ John E. Bryson
                                  --------------------------------

                              Title: Chairman
                                     -----------------------------

                              By: /s/ Bryant C. Danner
                                  --------------------------------

                              Title: /s/ Exec VP & General Counsel
                                     -----------------------------

                                      22
<PAGE>

                             SCHEDULE OF ADDRESSES

     Notices to the Company and to the Parent shall be addressed as follows:

          Edison International
          Edison Mission Energy
          C/O Bryant C. Danner
          Executive Vice President and
           General Counsel
          Edison International
          2244 Walnut Grove Avenue
          Rosemead, California 91770

          FAX:  (626) 302-4775

     Notices to the Executive shall be addressed as follows:

          Mr. Edward R. Muller
          502 20/th/ Street
          Santa Monica, California 90402

          FAX: (310) 394-5756

     With a courtesy copy to:

          Ronald M. Greenberg, Esq.
          Rosenfeld, Meyer & Susman
          9601 Wilshire Blvd., 4/th/ Floor
          Beverly Hills, California 90210

          FAX:  (310) 271-6430
<PAGE>

                       SCHEDULE OF DEFERRED COMPENSATION*

Balances as of January 10, 2000

Edison 401(k) Savings Plan and Profit Sharing          $  129,460
Executive Deferred Compensation Plan (EDCP)            $1,015,808
                                                       ----------
               Total                                   $1,145,268
                                                       ==========

*Additional amounts, if any, arising from Profit Sharing amounts for the
1999 year will be added in the ordinary course when calculated.
<PAGE>

     SCHEDULE OF RETIREMENT BENEFITS*

     Employee Life Insurance
     Executive Incentive Compensation Plan
     Long-Term Incentive Compensation Plan
     Equity Compensation Plan
     Affiliate Long Term Incentive Program
     401(k) Savings Plan
     Executive Deferred Compensation Plan
     Option Gain Deferral Plan
     Executive Retirement Plan
     Retirement Plan
     Estate and Financial Planning
     Comprehensive Disability and Executive Disability Plan
     Long-Term Disability
     Dependent Life Insurance
     Dependent AD&D Insurance
     Dependent Care Reimbursement Account
     Vacation
     Vacation Buying and Selling
     Holidays
     Personal Use of Company Car/Auto Allowance/Driver
     Executive Physical
     Accidental Death and Dismemberment
     24-Hour Business Travel Accident Insurance
     Club Memberships
     Health Care Reimbursement Account
     Preventive Health Care Account
     Employee Assistance Plan (EAP)
     Retiree Health Care and Medicare

__________________________________
*    Executive is entitled to any vested benefits and/or balances in any of the
     above plans but will have no further entitlements under any of the plans
     except as otherwise provided in this Agreement.

<PAGE>

                             SCHEDULE OF POSITIONS

<TABLE>
<CAPTION>

               Company                                        Position
               -------                                        --------
<S>                                             <C>

Edison Mission Energy                           Director, President and Chief Executive Officer

Edison Mission Energy Global Management, Inc.   Director, President and Chief Executive Officer

Edison Mission Operation & Maintenance, Inc.                 Director and President

Mission Energy Holdings, Inc.                                Director and President

Edison Mission Energy Australia Limited                             Director

Edison Mission Energy Holdings Pty Ltd                              Director

Edison Mission Operation & Maintenance                              Director
 Kwinana Pty Ltd

Edison Mission Operation & Maintenance Loy                          Director
 Wang Pty Ltd

Latrobe Power Pty Ltd                                               Director

Loy Yang Holdings Pty Ltd                                           Director

Mission Energy Development Australia Pty Ltd                        Director

Mission Energy (Kwinana) Pty Ltd                                    Director

Mission Energy Ventures Australia Pty Ltd                           Director

Traralgon Power Pty Ltd                                             Director
</TABLE>

In addition, any and all positions of responsibility or authority at any entity
                appearing on the attached list of subsidiaries.
<PAGE>

                    SCHEDULE OF RETIREMENT BENEFITS(1)(2)

Projected annual and lump-sum values(3)

<TABLE>
<CAPTION>

                                                           Executive                              Retirement
                                                         Retirement Plan                              Plan
                                                        -----------------                        ------------

Annual Value of Life Annuity
----------------------------
<S>                                                       <C>                                       <C>
Payment commencing March 1, 2000                             N/A                                    6,360

Payment commencing March 1, 2007                           63,720                                    N/A

Lump Sum Value
--------------

As of February 1, 2000                                       N/A                                   89,500(4)

As of March 1, 2007                                       730,000(4)(5)                              N/A

</TABLE>

     -----------------------------
     (1)   All benefits under these Plans are subject to the express terms of
           the relevant Plans.
     (2)   Benefit payment commencement on March 1, 2000 for the Retirement Plan
           and March 1, 2007 (age 55) for the Executive Retirement Plan,
           assuming final date of employment is during January 2000.
     (3)   Assumes Executive receives a bonus of 75% of base pay (125% of his
           target bonus of 60%) for 1999.
     (4)   The annuity value of the Retirement Plan is determined as of the
           assumed payment commencement date using a 6.07% interest rate. The
           lump sum for the Executive Retirement Plan uses an interest rate of
           7.33%.
     (5)   Lump-sum distributions are not available for those employees
           terminating prior to age 55. This value is shown for illustrative
           purposes only.
<PAGE>

                          SCHEDULE OF VESTED OPTIONS

----------------------------------------------------------------------------
    Date        Grant          Vesting         Grant          Vested
   Grant        Type          Schedule         Price          Shares
----------------------------------------------------------------------------
                       Options For Parent Company Stock

----------------------------------------------------------------------------
  8/23/93      EIXD              3           $ 24.4375         20,000

   1/3/94      EIXD              3           $ 20.1875         10,000

   1/3/94      EIXD              3           $ 20.1875          4,100

   1/3/95      EIXD              3           $ 14.5625         10,000

   1/2/96      EIXD              3           $ 17.6250         10,200

   1/2/97      EIXD              3           $ 19.7500         10,500

   1/2/98      EIXD              4           $ 27.2500          6,650

   1/4/99      EIX               4           $ 28.1250          3,935

   1/4/99      EIXD              4           $ 28.1250          1,840

               Total                                           77,225

----------------------------------------------------------------------------
                            Company Phantom Options

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

   1/3/94      EME               3           $ 169.2742        17,820

   1/3/95      EME               3           $ 154.2317        43,190

   1/2/96      EME               3           $ 181.0666        30,800

   1/2/97      EME               3           $ 226.6772        22,800

   1/4/98      EME               4           $ 313.8153         3,930

   1/4/99      EME               4           $ 334.4392         2,670

               Total                                          121,210
<PAGE>

                                GENERAL RELEASE

          THIS GENERAL RELEASE ("Release") is being delivered as of January 17,
2000 by Edward R. Muller (the "Executive") to Edison Mission Energy, a
California corporation (the "Company"), pursuant to Section 2.07 of that certain
agreement related to Executive's employment with the Company being executed
concurrently herewith by Executive and the Company (the "Agreement").  All
capitalized terms not otherwise defined herein have the same meaning as is given
to them in the Agreement.

          (a)   Executive, on behalf of himself and his descendants, ancestors,
heirs, executors, successors, assigns and administrators (collectively,
"Releasor"), hereby releases, remises, acquits and forever discharges, and
agrees to indemnify and hold harmless, (x) the Company, (y) each of its
Affiliates, and (z) each of its and/or their partners, predecessors, successors,
assigns, officers, directors, shareholders, representatives, insurers,
attorneys, employees and agents, past, present and future, in their respective
capacities as such (collectively, "Releasees"), from and against any and all
claims, demands, obligations, causes of action, debts, expenses, damages,
judgments, orders and liabilities of whatever kind or nature, in law, equity or
otherwise, whether now known or unknown, suspected or unsuspected, matured or
unmatured, and whether concealed or hidden (collectively, "Claims"), which
Executive now owns or holds or has at any time heretofore owned or held or had,
or may at any time own or hold or have, against the Releasees or any of them,
including, but not limited to any Claim arising out of or in any way connected
to any transactions, occurrences, acts or omissions regarding or relating to his
employment with the Company, or the end of his employment with the Company,
including, but not limited to, Claims arising from any alleged violation by the
Company of any federal, state or local constitutions, statutes, ordinances or
common laws, including but not limited to, the California Fair Employment and
Housing Act, Employee Retirement Income Security Act, Americans With
Disabilities Act and Title VII of the Civil Rights Act of 1964 and/or the Civil
Rights Act of 1991.

          (b)   Except for those matters that are expressly excluded, the
release set forth herein is intended as a release of all Claims that the
Releasor may have against the Releasees or any of them, whether now known or
unknown.  In furtherance thereof, Executive expressly waives and relinquishes
any right to assert hereafter that any claim, demand, obligation and/or cause of
action has, through ignorance, oversight, error or otherwise, been omitted from
the terms of this Agreement.  Executive makes this waiver with full knowledge of
his rights, after consulting with legal counsel, and with specific intent to
release both his known and unknown claims.  Accordingly, Releasor specifically
waives all rights and benefits

                                       1
<PAGE>

afforded by California Civil Code Section 1542 and does so understanding and
acknowledging the significance of such specific waiver of such statutory
protection, which provides as follows:

               "A GENERAL RELEASE DOES NOT EXTEND TO
               CLAIMS WHICH THE CREDITOR DOES NOT KNOW
               OR SUSPECT TO EXIST IN HIS FAVOR AT THE
               TIME OF EXECUTING THE RELEASE, WHICH IF
               KNOWN BY HIM MUST HAVE MATERIALLY
               AFFECTED HIS SETTLEMENT WITH THE DEBTOR."

Thus, notwithstanding the foregoing provisions of the California Civil Code, and
for the purposes of implementing a full and complete release and discharge of
the Releasees, Executive expressly acknowledges that the foregoing release is
intended to include in its effect, without limitation, all Claims that Executive
does not know or suspect to exist in his favor at the time of the execution
hereof, and the foregoing release contemplates the extinguishment of any such
Claim or Claims except to the extent expressly set forth herein. Executive
further acknowledges that he has been advised to consult with an attorney and is
receiving compensation beyond that to which he is entitled.

          (c)   Executive represents and warrants that he has not filed or
caused to be filed any complaints or charges against the Company, any of its
Affiliates or any of its or their officers, directors, agents, employees or
representatives with or before any local, state or federal governmental agency
or court or any arbitrator or other tribunal, and no such complaint or charge by
or on behalf of the Executive is currently pending.  Executive further agrees
not to file any complaints, actions or charges of any nature against the
Releasees relating to any event or alleged event including, but not limited to,
those arising from Executive's employment with and/or separation from employment
with the Company, which occurred from the beginning of time until the execution
of this Release.

          (d)   Nothing in this Release shall be construed or interpreted as a
release, acquittal, discharge or waiver of:

              (i)     Executive's rights to the compensation, reimbursements,
     benefits and perquisites described in Article 2 of the Agreement;

              (ii)    Any of the Company's other obligations arising under the
     Agreement;

              (iii)   Any right which Executive now has or may have to claim
     indemnity (including advancement of expenses) for liabilities in connection
     with his lawful activities as a director, officer or employee of the
     Company

                                       2
<PAGE>

     and certain of its Affiliates, pursuant to the terms of any applicable
     statute, under any insurance policy, pursuant to the certificate or
     articles of incorporation, bylaws or similar charter documents of any
     Releasee, or pursuant to the terms of any applicable indemnification
     agreement to which Executive and the Company or any Affiliate of the
     Company are or have been parties; or

              (iv)    Claims arising under the Federal Age Discrimination in
     Employment Act.

          (e)   The provisions of Section 5.01 through 5.05, 5.07, 5.08, and
5.12 through 5.14 of the Agreement apply to this Release and are incorporated
herein by reference as though fully set forth hereat.

     IN WITNESS WHEREOF, the Executive has executed and delivered this Release
as of the day and year first above written.

                              /s/ Edward R. Muller
                              ______________________________________
                                  Edward R. Muller

                                       3
<PAGE>

                      FORM OF AGE DISCRIMINATION RELEASE

          THIS AGE DISCRIMINATION RELEASE ("Release") is being delivered as of
January 17, 2000 by Edward R. Muller (the "Executive") to Edison Mission Energy,
a California corporation (the "Company"), pursuant to Section 2.07 of that
certain agreement related to Executive's employment with the Company being
executed concurrently herewith by Executive and the Company (the "Agreement").
All capitalized terms not otherwise defined herein have the same meaning as is
given to them in the Agreement.

          (a)   Executive, on behalf of himself and his descendants, ancestors,
heirs, executors, successors, assigns and administrators (collectively,
"Releasor"), hereby releases, remises, acquits and forever discharges, and
agrees to indemnify and hold harmless, (x) the Company, (y) each of its
Affiliates, and (z) each of its and/or their partners, predecessors, successors,
assigns, officers, directors, shareholders, representatives, insurers,
attorneys, employees and agents, past, present and future, in their respective
capacities as such (collectively, "Releasees"), from and against any and all
claims, demands, obligations, causes of action, debts, expenses, damages,
judgments, orders and liabilities of whatever kind or nature, in law, equity or
otherwise, whether now known or unknown, suspected or unsuspected, matured or
unmatured, and whether concealed or hidden (collectively, "Claims"), which
Executive now owns or holds or has at any time heretofore owned or held or had,
or may at any time own or hold or have, against the Releasees or any of them,
arising out of or in any way connected to the Federal Age Discrimination in
Employment Act.

          (b)   Except for those matters that are expressly excluded, the
release set forth herein is intended as a release of all Claims that the
Releasor may have against the Releasees or any of them, whether now known or
unknown, arising under the Federal Age Discrimination in Employment Act.  In
furtherance thereof, Executive expressly waives and relinquishes any right to
assert hereafter that any such claim, demand, obligation and/or cause of action
has, through ignorance, oversight, error or otherwise, been omitted from the
terms of this Agreement.  Executive makes this waiver with full knowledge of his
rights, after consulting with legal counsel, and with specific intent to release
both his known and unknown claims.  Accordingly, Releasor specifically waives
all rights and benefits afforded by California Civil Code Section 1542 and does
so understanding and acknowledging the significance of such specific waiver of
such statutory protection, which provides as follows:

          "A GENERAL RELEASE DOES NOT EXTEND
          TO CLAIMS WHICH THE CREDITOR DOES NOT KNOW

                                       1
<PAGE>

               OR SUSPECT TO EXIST IN HIS FAVOR AT THE
               TIME OF EXECUTING THE RELEASE, WHICH IF
               KNOWN BY HIM MUST HAVE MATERIALLY
               AFFECTED HIS SETTLEMENT WITH THE DEBTOR."

Thus, notwithstanding the foregoing provisions of the California Civil Code, and
for the purposes of implementing a full and complete release and discharge of
the Releasees in respect of Claims arising under Federal Age Discrimination in
Employment Act, Executive expressly acknowledges that the foregoing release is
intended to include in its effect, without limitation, all Claims arising under
such Act that Executive does not know or suspect to exist in his favor at the
time of the execution hereof, and the foregoing release contemplates the
extinguishment of any such Claim or Claims except to the extent expressly set
forth herein.

          (c)   Executive acknowledges that as of the date hereof, he will have
had at least twenty-one (21) days to consider the terms of the release set forth
herein and that he has been advised that he has a period of seven (7) days
following his execution of this Release in which to revoke the entire release
granted hereby and that any such revocation must be in writing, signed by
Executive, and hand delivered to the Chairman of the Board of the Company prior
to the expiration of such seven (7) day period.  Executive further acknowledges
that he has been advised to consult with an attorney and is receiving
compensation beyond that to which he is entitled.

          (d)   Executive represents and warrants that he has not filed or
caused to be filed any complaints or charges against the Company, any of its
Affiliates or any of its or their officers, directors, agents, employees or
representatives with or before any local, state or federal governmental agency
or court or any arbitrator or other tribunal arising under the Federal Age
Discrimination in Employment Act, and no such complaint or charge by or on
behalf of the Executive is currently pending.  Executive further agrees not to
file any such complaints, actions or charges of any nature against the Releasees
relating to any event or alleged event including, but not limited to, those
arising from Executive's employment with and/or separation from employment with
the Company, which occurred from the beginning of time until the execution of
this Release.

          (e)   Nothing in this Release shall be construed or interpreted as a
release, acquittal, discharge or waiver of:

                 (i)     Executive's rights to the compensation, reimbursements,
     benefits and perquisites described in Article 2 of the Agreement;

                 (ii)    Any of the Company's other obligations arising under
     the Agreement; or

                                       2
<PAGE>

                 (iii) Any right which Executive now has or may have to claim
     indemnity (including advancement of expenses) for liabilities in connection
     with his lawful activities as a director, officer or employee of the
     Company and certain of its Affiliates, pursuant to the terms of any
     applicable statute, under any insurance policy, pursuant to the certificate
     or articles of incorporation, bylaws or similar charter documents of any
     Releasee, or pursuant to the terms of any applicable indemnification
     agreement to which Executive and the Company or any Affiliate of the
     Company are or have been parties.

          (f)   The provisions of Section 5.01 through 5.05, 5.07, 5.08, and
5.12 through 5.14 of the Agreement apply to this Release and are incorporated
herein by reference as though fully set forth hereat.

     IN WITNESS WHEREOF, the Executive has executed and delivered this Release
as of the day and year first above written.

                              /s/ Edward R. Muller
                              ______________________________________
                                  Edward R. Muller

                                       3
<PAGE>

02        EDISON MISSION ENERGY is a California corporation having its principal
          place of business at 18101 Von Karman Avenue, Suite 1700, Irvine,
          California 92612- 1046. Edison Mission Energy owns the stock of a
          group of corporations which, primarily through partnerships with non-
          affiliated entities, are engaged in the business of developing, owning
          and/or operating cogeneration, geothermal and other energy or
          energy-related projects pursuant to the Public Utility Regulatory
          Policies Act of 1978. Edison Mission Energy, through wholly owned
          subsidiaries, also has ownership interests in a number of independent
          power projects in operation or under development that either have been
          reviewed by the Commission's staff for compliance with the Act or are
          or will be exempt wholesale generators or foreign utility companies
          under the Energy Policy Act of 1992. In addition, some Edison Mission
          Energy subsidiaries have made fuel-related investments and a limited
          number of non-energy related investments. The subsidiaries and
          partnerships of Edison Mission Energy are listed below. Unless
          otherwise indicated, all entities are corporations, are organized
          under the laws of the State of California and have the same principal
          place of business as Edison Mission Energy.

EDISON MISSION ENERGY DOMESTIC COMPANIES:
03     AGUILA ENERGY COMPANY (LP)
04        American Bituminous Power Partners, LP (Delaware limited
          partnership) 49.5%; 50% with Pleasant Valley
05            American Kiln Partners, LP (Delaware limited partnership)
              49.5% of 53%
03     ANACAPA ENERGY COMPANY (GP)
04        Salinas River Cogeneration Company 50%
03     ARROWHEAD ENERGY COMPANY (inactive)
03     BALBOA ENERGY COMPANY (GP)
04        Smithtown Cogeneration, LP (Delaware partnership) 50%; 100%
          w/Kingspark
03     BERGEN POINT ENERGY COMPANY (GP)
04        TEVCO/Mission Bayonne Partnership (Delaware G.P.) 50%
05            Cogen Technologies NJ Ventures (Delaware G.P.) 0.75%
04        Cogen Technologies NJ Ventures (Delaware G.P.) 0.375%
03     BLUE RIDGE ENERGY COMPANY (GP)
04        Bretton Woods Cogeneration, LP (Delaware limited partnership)
          50%; 100% w/Bretton Woods
03     BRETTON WOODS ENERGY COMPANY (GP & LP)
04        Bretton Woods Cogeneration, LP (Delaware LP) 50%; 100%
          w/Blue Ridge
03     CAMINO ENERGY COMPANY (GP)
04        Watson Cogeneration Company (general partnership) 49%
03     CAPISTRANO COGENERATION COMPANY (GP)
04        James River Cogeneration Company (North Carolina partnership) 50%
03     CENTERPORT ENERGY COMPANY (GP & LP)
04        Riverhead Cogeneration I, LP (Delaware partnership) 50%; 100%
          w/Ridgecrest
03     CHESAPEAKE BAY ENERGY COMPANY (GP)
04        Delaware Clean Energy Project (Delaware general partnership) 50%
03     CHESTER ENERGY COMPANY (no partners; option Chesapeake,VA)
03     CLAYVILLE ENERGY COMPANY
04        Oconee Energy, LP (Delaware LP) 50%; 100% w/Coronado
03     COLONIAL ENERGY COMPANY (inactive)
03     CORONADO ENERGY COMPANY
04        Oconee Energy, LP (Delaware LP) 50%; 100% w/Clayville
03     DEL MAR ENERGY COMPANY (GP)
04        Mid-Set Cogeneration Company 50%
03     DELAWARE ENERGY CONSERVERS, INC. (Delaware corporation) (inactive)
03     DESERT SUNRISE ENERGY COMPANY (Nevada corporation) (inactive)
03     DEVEREAUX ENERGY COMPANY (LP)
04        Auburndale Power Partners, LP (Delaware LP) 49%; 50% w/El
          Dorado [see 4.03]

                                      17
<PAGE>

03     EASTERN SIERRA ENERGY COMPANY (GP & LP)
04        Saguaro Power Company, LP 50%
03     EAST MAINE ENERGY COMPANY (inactive) [dissolving]
03     EDISON ALABAMA GENERATING COMPANY
03     EDISON MISSION ENERGY FUEL
04        EDISON MISSION ENERGY OIL AND GAS
05            Four Star Oil & Gas Company 50.1% (owns Lost Hills
              Cogeneration Facility)
04        EDISON MISSION ENERGY PETROLEUM (Gas contracts w/ Tex. Gas Mktg)
04        POCONO FUELS COMPANY (inactive)
04        SOUTHERN SIERRA GAS COMPANY
05            TM Star Fuel Company (general partnership) 50%
03     EDISON MISSION ENERGY FUEL SERVICES, INC. [PowerGen project]
03     EDISON MISSION ENERGY FUNDING CORP. (Delaware corporation) 1%
03     EDISON MISSION ENERGY GLOBAL MANAGEMENT, INC. (Delaware corporation)
       Address:
04        Majestic Energy Limited (UK private limited company)
          Address:
05            EME Royale Limited (New Zealand private limited company)
              Address:
06               Edison Mission Energy Taupo Limited (New Zealand company) 100%
                 Address: Southgate Complex, Level 20, Tower East,
                 40 City Road, South Melbourne, Victoria 3205
07                  Contact Energy Limited (New Zealand company) 40%
                    Address:  Level 1, Harbor City Tower, 29 Brandon Street,
                    Wellington, New Zealand
03     Edison Mission Energy Interface Ltd. (British Columbia company)
04        The Mission Interface Partnership (Province of Ontario G.P.) 50%
03     EDISON MISSION FINANCIAL MARKETING & TRADING CO.
04        EDISON MISSION MARKETING & TRADING, INC.
03     EDISON MISSION HOLDINGS CO. (formerly EME Homer City Holdings Co.)
04        CHESTNUT RIDGE ENERGY COMPANY 100%
05            EME Homer City Generation LP (Pennsylvania) 99%LP
04        EDISON MISSION FINANCE CO. 100%
04        HOMER CITY PROPERTY HOLDINGS, INC. 100%
04        MISSION ENERGY WESTSIDE, INC. 100%
05            EME Homer City Generation LP (Pennsylvania) 1%GP
03     EDISON MISSION OPERATION & MAINTENANCE, INC. (no partnership)
04        Mission Operations de Mexico, S.A. de C.V. 99%
03     EDISON MISSION PROJECT CO. (formerly EME UK International, Inc.)
       (Delaware corp) 100%
03     EL DORADO ENERGY COMPANY (GP)
04        Auburndale Power Partners, LP (Delaware LP) 1%; 50% w/
          Devereaux [see 4.03]
03     EME UK International LLC (Delaware LLC) 100% [owns 100% of Class B
       Shares of MEC International B.V.]
03     EMP, INC. (Oregon corporation) (GP & LP) (inactive)
03     FOUR COUNTIES GAS COMPANY (inactive)
03     GLOBAL POWER INVESTORS, INC.
03     HANOVER ENERGY COMPANY
04        Chickahominy River Energy Corp. (Virginia corporation) (GP & LP)
05            Commonwealth Atlantic LP (Delaware partnership) [see 4.05]
              50%
03     HOLTSVILLE ENERGY COMPANY (GP & LP)
04        Brookhaven Cogeneration, LP (Delaware partnership) 50%; 100%
          w/Madera
03     INDIAN BAY ENERGY COMPANY (GP & LP)
04        Riverhead Cogeneration III, LP (Delaware partnership) 50%; 100%
          w/Santa Ana
03     JEFFERSON ENERGY COMPANY (GP & LP) (inactive)
03     KINGS CANYON ENERGY COMPANY (inactive)
03     KINGSPARK ENERGY COMPANY (GP & LP)
04        Smithtown Cogeneration, LP (Delaware partnership) 50%; 100%
          w/Balboa
03     LAGUNA ENERGY COMPANY (inactive) (former interest in Ambit)

                                      18
<PAGE>

03     LA JOLLA ENERGY COMPANY (inactive) (used for Belridge)
03     LAKEVIEW ENERGY COMPANY
04        Georgia Peaker, LP (Delaware LP) 50%; 100% w/Silver Springs
03     LEHIGH RIVER ENERGY COMPANY (inactive)
03     LONGVIEW COGENERATION COMPANY (held for Weyerhauser)
03     MADERA ENERGY COMPANY (GP)
04        Brookhaven Cogeneration, LP (Delaware partnership) 50%; 100%
          w/Holtsville
03     MADISON ENERGY COMPANY (LP)
04        Gordonsville Energy, LP (Delaware partnership) [see 4.06] 49%;
          50% w/Rapidan
03     Midwest Generation EME, LLC (Delaware LLC) 100%
04        Edison Mission Midwest Holdings Co. 100%
05            Edison Mission Overseas Co. (Com Ed project) 100%
06               Edison Mission Overseas Ltd. (Com Ed project) 100%
05            Midwest Generation, LLC (Com Ed project) 100%
03     Mission Capital, LP (Delaware LP) 3%; MIPS partnership
03     MISSION/EAGLE ENERGY COMPANY (inactive)
03     MISSION ENERGY CONSTRUCTION SERVICES, INC. (Provides construction
       services for Paiton Project)
03     MISSION ENERGY GENERATION, INC. (Inactive)
03     MISSION ENERGY HOLDINGS, INC.
04        Mission Capital, LP (Delaware LP) 97%; MIPS partnership
03     MISSION ENERGY HOLDINGS INTERNATIONAL, INC. [holds all the issued and
       outstanding stock of MEC International B.V.--see INTERNATIONAL section]
03     MISSION ENERGY INDONESIA (inactive) 03 MISSION ENERGY MEXICO (inactive)
       formerly the branch office in Mexico (no partnership)
03     MISSION ENERGY NEW YORK, INC. (GP & LP)
04        Brooklyn Navy Yard Cogeneration Partners, LP (Delaware
          partnership) 50% [see 4.04]
03     MISSION ENERGY WALES COMPANY
04        Mission Hydro Limited Partnership (UK limited partnership)
          [See International section for structure of Mission Hydro LP]
03     Mission Operations de Mexico, S.A. de C.V. 1%
03     MISSION TRIPLE CYCLE SYSTEMS COMPANY (GP)
04        Triple Cycle Partnership (Texas G.P.) 50%
03     NORTH JACKSON ENERGY COMPANY (inactive) [held for Akso Salt Proj]
03     NORTHERN SIERRA ENERGY COMPANY (GP)
04        Sobel Cogeneration Company (general partnership) 50%
03     ORTEGA ENERGY COMPANY (Mid-County Cogen gas contracts)
03     PANTHER TIMBER COMPANY (GP)
04        American Kiln Partners, LP (Delaware limited partnership) 2%
03     PARADISE ENERGY COMPANY (inactive)
03     PLEASANT VALLEY ENERGY COMPANY (GP)
04        American Bituminous Power Partners, LP (Delaware limited
          partnership) 0.5%; 50% w/Aguila
05            American Kiln Partners, LP (Delaware Limited Partnership)
              0.5% of 53%
03     PRINCE GEORGE ENERGY COMPANY (LP)
04        Hopewell Cogeneration Limited Partnership (Delaware limited
          partnership) 24.75%
04        Hopewell Cogeneration Inc. (Delaware corporation) 25%
05            Hopewell Cogeneration Limited Partnership (Delaware limited
              partnership) 1%
03     QUARTZ PEAK ENERGY COMPANY (LP)
04        Nevada Sun-Peak LP (Nevada partnership) [see 4.07] 50%
03     RAPIDAN ENERGY COMPANY (GP)
04        Gordonsville Energy, LP (Delaware partnership) [see 4.06] 1%;
          50% w/Madison
03     REEVES BAY ENERGY COMPANY (GP & LP)
04        North Shore Energy LP (Delaware partnership) 50%; 100% w/Santa
          Clara
05            Northville Energy Corporation (New York corporation) 100%
03     RIDGECREST ENERGY COMPANY (GP)

                                      19
<PAGE>

04        Riverhead Cogeneration I, LP (Delaware partnership) 50%; 100%
          w/Centerport
03     RIO ESCONDIDO ENERGY COMPANY
03     RIVERPORT ENERGY COMPANY (GP & LP)
04        Riverhead Cogeneration II, LP (Delaware partnership) 50%; 100%
          w/San Pedro
03     SAN GABRIEL ENERGY COMPANY (inactive) (McKenzie gas contracts)
03     SAN JOAQUIN ENERGY COMPANY (GP)
04        Midway-Sunset Cogeneration Company, LP 50%
03     SAN JUAN ENERGY COMPANY (GP)
04        March Point Cogeneration Company 50%
03     SAN PEDRO ENERGY COMPANY (GP)
04        Riverhead Cogeneration II, LP (Delaware partnership) 50%; 100%
          w/Riverport
03     SANTA ANA ENERGY COMPANY (GP)
04        Riverhead Cogeneration III, LP (Delaware partnership) 50%; 100%
          w/Indian Bay
03     SANTA CLARA ENERGY COMPANY (GP)
04        North Shore Energy, LP (Delaware partnership) 50%; 100%
          w/Reeves Bay
05            Northville Energy Corporation (New York corporation) 100%
03     SILVERADO ENERGY COMPANY (GP)
04        Coalinga Cogeneration Company 50%
03     SILVER SPRINGS ENERGY COMPANY
04        Georgia Peaker, LP (Delaware limited partnership) 50%; 100%
          w/Lakeview
03     SONOMA GEOTHERMAL COMPANY (GP & LP)
04        Geothermal Energy Partners Ltd. (Aidlin) 5%LP
03     SOUTH COAST ENERGY COMPANY (GP)
04        Harbor Cogeneration Company 30%
03     SOUTHERN SIERRA ENERGY COMPANY (GP)
04        Kern River Cogeneration Company (general partnership) 50%
03     THOROFARE ENERGY COMPANY (inactive)
03     VIEJO ENERGY COMPANY (GP)
04        Sargent Canyon Cogeneration Company 50%
03     VISTA ENERGY COMPANY (New Jersey corporation) (inactive)
03     WESTERN SIERRA ENERGY COMPANY (GP)
04        Sycamore Cogeneration Company (general partnership) 50%

EDISON MISSION ENERGY INTERNATIONAL COMPANIES:
04        MEC International B.V. (Netherlands corporation) (Holding Company
          100% owned by MEC Holdings International, Inc. (California corp.))
          Address:  Apoliolaan 15, 1077 AB Amsterdam, The Netherlands
05            Adelaide Ventures Ltd. (Cayman Island company) 100%
05            Beheer-en Beleggingsmaatschappij Botara B.V. (LYB Peakers Project)
              100%
              Address:  Croeselaan 18, 3500 GT Utrecht, The Netherlands
06               Valley Power Pty Ltd. (proprietary limited Australia company;
                 LYB Peakers Project)
05            Beheer-en Beleggingsmaatschappij Hagra B.V. 100%
              Address:  Croeselaan 18, 3500 GT Utrecht, The Netherlands
05            Beheer-en Beleggingsmaatschappij Trepo B.V. 100%
              Address:  Croeselaan 18, 3500 GT Utrecht, The Netherlands
05            Edison Mission Energy Asia Pte Ltd. (Singapore private company
              limited by shares) 100% (EME's Regional Asia Pacific Headquarters)
              Address:  391-B Orchard Road, Ngee Ann City, Tower B,
              14th Floor, #14-08/10, Singapore 238874
06               Edison Mission Energy Asia Pacific Pte Ltd. (Singapore
                 corporation) 100%
                 Address:  391-B Orchard Road, Ngee Ann City, Tower B,
                 14th Floor, #14-08/10, Singapore 238874
06               Edison Mission Energy Fuel Company Pte Ltd. (Singapore
                 corporation) 100%
                 Address:  391-B Orchard Road, Ngee Ann City, Tower B,
                 14th Floor, #14-08/10, Singapore 238874

                                      20
<PAGE>

06               Edison Mission Operation & Maintenance Services Pte Ltd 100%
                 Address:  391-B Orchard Road, Ngee Ann City, Tower B,
                 14th Floor, #14-08/10, Singapore 238874
06               P.T. Edison Mission Operation and Maintenance Indonesia
                 (Indonesian company) 99%
                 Address:  Jl. Gen. A Yani No. 54
                 Probolinggo, East Java, Indonesia
05            Edison Mission Energy International B.V. (Netherlands company) 99%
              Address:  Croeselaan 18, 3500 GT Utrecht, The Netherlands
05            Edison Mission Energy Services B.V. (Netherlands company) 100%
              Address:  Croeselaan 18, 3500 GT Utrecht, The Netherlands
05            Edison Mission Operation & Maintenance Services B.V.
              (Netherlands company) 100%
              Address:  Croeselaan 18, 3500 GT Utrecht, The Netherlands
06               Edison Mission Operation & Maintenance (Thailand) 100%
05            EME Tri Gen B.V. 100%
              Address:  Croeselaan 18, 3500 GT Utrecht, The Netherlands
06               Tri Energy Company Limited (Thai limited liability company)
                 (Tri Energy Project) (equity) 25% [see 4.17]
                 Address:  16th Floor, Grant Amarin Tower, New Petchburi Road,
                 Ratchathewi, Bangkok 10320 Thailand
05            EME Victoria B.V. 100% (inactive)
              Address:  Croeselaan 18, 3500 GT Utrecht, The Netherlands
05            Global Generation B.V. 100%
              Address:  Apoliolaan 15, 1077 AB Amsterdam, The Netherlands
06               Caresale Services Limited
06               Edison First Power Holdings I 100% [PowerGen project]
07                  Edison Mission Marketing and Services Limited (UK company)
                    100%
07                  EME Finance UK Limited 100%
07                  Energy Generation Finance PLC 100%
07                  Maplekey Holdings Limited 100%
08                      Maplekey UK Finance Limited (UK company) 100% [Steamboat
                        project]
09                         Maplekey UK Limited (UK company) 100% [Steamboat
                           project]
10                            Edison First Power Limited (Guernsey company) 100%
07                  South Australia Holdings Ltd. 100%
08                      Edison Mission Ausone Pty Ltd. (Australian company) 100%
08                      EME Adelaide Energy Ltd. (UK company) 100%
08                      EME Monet Ltd. (UK company) 100%
09                         Edison Mission De Laide Pty Ltd. (Australian company)
                           100%
09                         Edison Mission Vendesi Pty Ltd. (Australian company)
                           100%
09                         Edison Mission Utilities Pty. Ltd. (Australian
                           company) 100%
06               Redbill Contracts Limited 100%
05            Hydro Energy B.V. (Netherlands limited liability company) 10%
              Address:  Croeselaan 18, 3500 GT Utrecht, The Netherlands
06               Iberica de Energias, S.A. (Spain corp) 96.65% [see 4.08]
                 Address:  Paseo de Gracia 18, Planta 4, 08007,
                 Barcelona, Spain
07                  Electrometalurgica del Ebro, S.A. ("EMESA") (Spain
                    corporation) 91.32% [see 4.09]
                    Address: Paseo de Gracia 18, Planta 4, 08007,
                    Barcelona, Spain
08                      Monasterio de Rueda, S.L. (Spain) 100%
                        Address: Paseo de Gracia 18, Planta 4, 08007,
                        Barcelona, Spain
05            Iberian Hy-Power Amsterdam B.V. (Netherlands limited liability
              company) 100%
              Address:  Strawinskylaan 1725, Amsterdam, NOORD-HOLL 1077 XX
06               Hydro Energy B.V. (Netherlands company) 90%
07                  Iberica de Energias, S.A. (Spain corporation) 96.65% [see
                    4.08]
08                      Electrometalurgica del Ebro, S.A. ("EMESA") (Spain
                        corporation) 91.32% [see 4.09]
09                         Monasterio de Rueda, S.L. (Spain) 100%
06               Iberica de Energias, S.A. (Spain corporation) 3.35% [see 4.08]
07                  Electrometalurgica del Ebro, S.A. ("EMESA") (Spain

                                      21
<PAGE>

                    corporation) 91.32% [see 4.09]
08                      Monasterio de Rueda, S.L. (Spain) 100%
05            Latrobe Power Pty. Ltd. (Australian corporation) 99%
              Address: Southgate Complex, Level 20, Tower East,
              40 City Road, South Melbourne, Victoria 3205
06               Mission Victoria Partnership (Australian partnership) 52.31%
                 (100% w/ Traralgon PPL 46.69% and MEVALP 1%)
07                  Latrobe Power Partnership (Australian partnership) 99% (owns
                    51% of the Loy Yang B facility; 49% to Gippsland
05            Loy Yang Holdings Pty Ltd (Australia corporation) 100%
              Address:  Southgate Complex, Level 20, Tower East,
              40 City Road, South Melbourne, Victoria 3205
06               Edison Mission Energy Holdings Pty Ltd (Australian corp.) 100%
                 Address: Southgate Complex, Level 20, Tower East,
                 40 City Road, South Melbourne, Victoria 3205
07                  Edison Mission Energy Australia Ltd. (Australian public
                    company) 100%
                    Address: Southgate Complex, Level 20, Tower East,
                    40 City Road, South Melbourne, Victoria 3205
08                      Latrobe Power Partnership (Australian partnership) 1% %
                        (owns
                        51% of the Loy Yang B facility; 49% to Gippsland
07                  Edison Mission Energy Australia Pilbara Power Pty Ltd.
                    (Australia company) 100%
                    Address:  Southgate Complex, Level 20, Tower East,
                    40 City Road, South Melbourne, Victoria 3205
07                  Edison Mission Operation & Maintenance Kwinana Pty Ltd.
                    (Australia) 100% (Operator of Kwinana Project)
                    Address:  Southgate Complex, Level 20, Tower East,
                    40 City Road, South Melbourne, Victoria 3205
07                  Edison Mission Operation & Maintenance Loy Yang Pty Ltd.
                          (Australian corporation) 100%
                    Address:  P.O. Box 1792, Traralgon, Victoria 3844,Australia
07                  Mission Energy Development Australia Pty Ltd.
08                      Gippsland Power Pty Ltd 100% (owns 49% of the Loy
                        Yang B facility; 51% to Latrobe Power Partnership)
07                  Mission Energy Holdings Superannuation Fund Pty Ltd.
                    (retirement fund required by Australia law) 100%
07                  Mission Energy (Kwinana) Pty Ltd. (Australia) 100%
                    Address:  Southgate Complex, Level 20, Tower East,
                    40 City Road, South Melbourne, Victoria 3205
08                      Kwinana Power Partnership (Australian G.P.) 1%
                        Address:  Level 23, St. Martins Tower
                        44 St George's Terrace, Perth WA 6000
06               Latrobe Power Pty. Ltd. (Australian corporation) 1%
07                  Mission Victoria Partnership (Australian partnership) 52.31%
08                      Latrobe Power Partnership (Australian partnership) 99%
                        (owns
                        51% of the Loy Yang B facility; 49% to Gippsland
06               Mission Energy Ventures Australia Pty. Ltd. (Australian
                 company) 100%
                 Address:  Southgate Complex, Level 20, Tower East,
                 40 City Road, South Melbourne, Victoria 3205
07                  Mission Victoria Partnership (Australian partnership) 1%
08                      Latrobe Power Partnership (Australian partnership) 99%
                        (owns
                        51% of the Loy Yang B facility; 49% to Gippsland
06               Traralgon Power Pty. Ltd. (Australian corporation) 1%
                 Address: Southgate Complex, Level 20, Tower East,
                 40 City Road, South Melbourne, Victoria 3205
07                  Mission Victoria Partnership (Australian partnership)
                    46.69%
08                      Latrobe Power Partnership (Australian partnership) 99%
                        (owns
                        51% of the Loy Yang B facility; 49% to Gippsland
05            MEC Esenyurt B.V. (Netherlands company) (Doga Project) 99%
              Address:  Croeselaan 18, 3500 GT Utrecht, The Netherlands
06               Doga Enerji Uretim Sanayi ve Ticaret L.S. (Turkish
                 corporation) (Project company) 80%

                                      22
<PAGE>

                 Address: Merkez Man, Mahallesi Caddesi 11/8,
                 Esenyurt, Istanbul, Turkey
06               Doga Isi Satis Hizmetleri ve Ticaret L.S. (Turkish corporation)
                 (Heat company) 80%
                 Address: Merkez Man, Mahallesi Caddesi 11/8,
                 Esenyurt, Istanbul, Turkey
06               Doga Isletme ve Bakim Ticaret L.S. (Turkish corporation) (O&M
                 company) 80%
                 Address: Merkez Man, Mahallesi Caddesi 11/8,
                 Esenyurt, Istanbul, Turkey
05            MEC IES B.V. (Netherlands company) (ISAB Project) 99%
              Address: Croeselaan 18, 3500 GT Utrecht, The Netherlands
06               ISAB Energy Services s.r.l. 49% (services co ISAB
                 Project)
05            MEC India B.V. (Netherlands company) (Jojobera Project) 99%
              Address: Croeselaan 18, 3500 GT Utrecht, The Netherlands
06               Edison Mission Energy Power (Mauritius corporation) (Branch
                 office in India)
                 Address: Louis Leconte Street, Curepipe, Mauritius
05            MEC Indo Coal B.V. (Netherlands company) (Adaro Project) 99%
              Address: Croeselaan 18, 3500 GT Utrecht, The Netherlands
06               P. T. Adaro Indonesia (equity) 10%
                 Address:  Suite 704, World Trade Centre, Jl. Jend.
                 Sudirman Kav. 31, Jakarta 12920 Indonesia
05            MEC Indonesia B.V. (Netherlands company) 99%
              Address:  Croeselaan 18, 3500 GT Utrecht, The Netherlands
06               P. T. Paiton Energy Company (Indonesia company) (equity)
                 (Paiton Project) 40% [see 4.11]
                 Address:  Menara Batavia, 8th Floor, Jl. K. H.
                 Mas Mansyur Kav. 126, Jakarta 10220 Indonesia
05            MEC International Holdings B.V. (Netherlands corp) 100%
              Address:  Croeselaan 18, 3500 GT Utrecht, The Netherlands
06               Edison Mission Energy International B.V. (Netherlands company)
                 1%
06               MEC Esenyurt B.V. (Netherlands company) (Doga Project) 1%
07                  Doga Enerji Uretim Sanayi ve Ticaret L.S. (Turkish
                    corporation) (Project company) 80%
07                  Doga Isi Satis Hizmetleri ve Ticaret L.S. (Turkish
                    corporation) (Heat company) 80%
07                  Doga Isletme Bakim Ticaret L.S. (Turkish corporation)
                    (O&M company) 80%
06               MEC IES B.V. (Netherlands company) (ISAB Project) 1%
07                  ISAB Energy Services s.r.l. 49%
06               MEC India B.V. (Netherlands company) 1%
07                      Edison Mission Energy Power (Mauritius corporation)
06               MEC Indo Coal B.V. (Netherlands company) (Adaro Project) 1%
07                  P. T. Adaro Indonesia (equity) 10%
06               MEC Indonesia B.V. (Netherlands company) 1%
07                  P. T. Paiton Energy Company (Indonesia company) (equity)
                    (Paiton Project) 40% [see 4.11]
06               MEC Laguna Power B.V. (Netherlands company) (Thailand
                 Project) 1%
07                  Gulf Power Generation Co. Ltd. (Bangkok corporation) 40%
06               MEC Perth B.V. (Netherlands company) (Kwinana Project) 1%
07                  Kwinana Power Partnership (Australian G.P.) [see 4.16]
06               MEC Priolo B.V. (Netherlands company) (ISAB Project) 1%
07                  ISAB Energy, s.r.l. (Italian J.V. company) (equity) [see
                    4.12] 1% of 49% (quota, not shares)
06               MEC San Pascual B.V. (Netherlands company) 1%
07                  San Pascual Cogeneration Company International B.V. 50%
08                      San Pascual Cogeneration Company (Philippines) Ltd.
                        (San Pascual Project) (equity) 1%GP and 74%LP
07                  Morningstar Holdings B.V. (formerly Beheer-en
                    Beleggingsmaatschappij Vestra B.V.) 50%
06               MEC Sidi Krir B.V. (Netherlands company) 1%

                                      23
<PAGE>

06               MEC Sumatra B.V. (Netherlands company) 1%
06               MEC Wales B.V. (Netherlands Company) 1%
07                  Mission Hydro Limited Partnership (UK limited partnership)
08                      EME Generation Holdings Limited (UK company) 100%
09                         Loyvic Pty Ltd. (Australia company) 100%
10                            Energy Capital Partnership (Australia partnership)
                              1%
11                               Enerloy Pty Ltd. (Australia company) 100%
09                         EME Victoria Generation Limited (UK company) 100%
10                            Energy Capital Partnership (Australia partnership
                              98%
11                               Enerloy Pty Ltd. (Australia company) 100%
09                         Energy Capital Partnership (Australia partnership)
                           1%LP
10                            Enerloy Pty Ltd. (Australia company) 100%
09                         First Hydro Holdings Company (Australia partnership)
                           99%
10                            First Hydro Company [see 4.13] 99%
10                            First Hydro Finance plc
11                               First Hydro Company [see 4.13] 1%
06               Mission Energy Italia s.r.l. 10% (Office in Italy)
06               P.T. Edison Mission Operation and Maintenance Indonesia
                 (Indonesian company) 1%
05            MEC Laguna Power B.V. (Netherlands co) (Malaya Project) 99%
              Address: Croeselaan 18, 3500 GT Utrecht, The Netherlands
06               Gulf Power Generation Co. Ltd. (Bangkok corporation) 40%
                 Address:  888/101 Mahatun Plaza Tower, 10th Floor, Ploenchit,
                 Lumphini, Patumwan, Bangkok 10330
05            MEC Perth B.V. (Netherlands company) (Kwinana Project) 99%
06               Kwinana Power Partnership (Australian G.P.) 99% [See 4.16]
                 Address:  Level 23, St. Martins Tower
                 44 St George's Terrace, Perth WA 6000
05            MEC Priolo B.V. (Netherlands company) (ISAB Project) 99%
              Address:  Croeselaan 18, 3500 GT Utrecht, The Netherlands
06               ISAB Energy, s.r.l. (Italian J.V. company) (equity) [see
                 4.12] 99% of 49% (quota, not shares)
                 Address:  Corso Gelone No. 103, Siracusa, Sicily, Italy
05            MEC San Pascual B.V. (Netherlands company) 99%
              Address:  Croeselaan 18, 3521 CB Utrecht, The Netherlands
06               San Pascual Cogeneration Company International B.V. 50%
                 Address:  Croeselaan 18, 3521 CB Utrecht, The Netherlands
07                  San Pascual Cogeneration Company (Philippines) Ltd (San
                    Pascual Project) (equity) 1%GP and 74%LP
                    Address:  Unit 1610/1611, Tower One, Ayala Triangle, Ayala
                    Avenue, 1200 Makati City, Metro Manila, Republic of the
                    Philippines
06               Morningstar Holdings B.V. (formerly Beheer-en
                 Beleggingsmaatschappij Vestra B.V.) 50%
                 Address:  Croeselaan 18, 3521 CB Utrecht, The Netherlands
05            MEC Sidi Krir B.V. (Netherlands company) 99%
              Address:  Croeselaan 18, 3500 GT Utrecht, The Netherlands
05            MEC Sumatra B.V. (Netherlands company) 99%
              Address:  Croeselaan 18, 3500 GT Utrecht, The Netherlands
05            MEC Wales B.V. (Netherlands company) 99%
              Address:  Croeselaan 18, 3500 GT Utrecht, The Netherlands
06               Mission Hydro Limited Partnership 69%
                 Address:  Lansdowne House, Berkeley Square,
                 London W1X5DH England
07                  EME Generation Holdings Limited (UK company) 100%
08                      Loyvic Pty Ltd. (Australia company) 100%
09                         Energy Capital Partnership (Australia partnership) 1%
10                            Enerloy Pty Ltd. (Australia company) 100%
08                      EME Victoria Generation Limited (UK company) 100%
09                         Energy Capital Partnership (Australia partnership 98%
10                            Enerloy Pty Ltd. (Australia company) 100%
08                      Energy Capital Partnership (Australia partnership) 1%LP
09                         Enerloy Pty Ltd. (Australia company) 100%
08                      First Hydro Holdings Company (Australia partnership) 99%

                                      24
<PAGE>

                        Address:  Lansdowne House, Berkeley Square,
                              London W1X5DH England
09                         First Hydro Company [see 4.13] 99%
                           Address:  Bala House, St. David's Park
                           Ewloe, Dlwyd, Wales CH5 3XJ
09                         First Hydro Finance plc 100%
                           Address:  Lansdowne House, Berkeley Square,
                              London W1X5DH England
10                            First Hydro Company [see 4.13] 1%
                              Address:  Bala House, St. David's Park
                              Ewloe, Dlwyd, Wales CH5 3XJ
05            Mission Energy Company (UK) Limited (United Kingdom private
              limited company) 100%
              Address: Lansdowne House, Berkeley Square,
              London W1X5DH England
06               Derwent Cogeneration Limited (United Kingdom private limited
                 liability company) (equity) [see 4.14] 33%
                 Address: Lansdowne House, Berkeley Square,
                 London W1X5DH England
06               Edison Mission Energy Limited (UK private limited company) 100%
                 Address:  Lansdowne House, Berkeley Square,
                 London W1X5DH England
06               Edison Mission Operation & Maintenance Limited (a United
                 Kingdom corporation) 100%
                 Address:  Lansdowne House, Berkeley Square,
                 London W1X5DH England
06               Edison Mission Services Limited (UK private limited company)
                 100%
                 Address:  Lansdowne House, Berkeley Square,
                 London W1X5DH England
06               Mission Hydro (UK) Limited 100%
                 Address:  Lansdowne House, Berkeley Square,
                 London W1X5DH England
07                  First Hydro Holdings Company 1%
08                      First Hydro Company [see 4.13] 99%
08                      First Hydro Finance plc 100%
09                         First Hydro Company [see 4.13] 1%
07                  Mission Hydro Limited Partnership 1%GP
08                      EME Generation Holdings Limited (UK company) 100%
09                         Loyvic Pty Ltd. (Australia company) 100%
10                            Energy Capital Partnership (Australia partnership)
                              1%
11                               Enerloy Pty Ltd. (Australia company) 100%
09                         EME Victoria Generation Limited (UK company) 100%
10                            Energy Capital Partnership (Australia partnership
                              98%
11                               Enerloy Pty Ltd. (Australia company) 100%
09                         Energy Capital Partnership (Australia partnership)
                           1%LP
10                            Enerloy Pty Ltd. (Australia company) 100%
09                         First Hydro Holdings Company (Australia partnership)
                           99%
10                            First Hydro Company [see 4.13] 99%
10                            First Hydro Finance plc 99%
11                               First Hydro Company [see 4.13] 1%
06               Mission (No. 2) Limited (UK private limited company) 100%
                 Address:  Lansdowne House, Berkeley Square,
                 London W1X5DH England
06               Pride Hold Limited (United Kingdom corporation) 99%
                 Address:  Lansdowne House, Berkeley Square,
                 London W1X5DH England
07                  Lakeland Power Ltd. (United Kingdom private limited
                    liability company) [see 4.15] 80%
                    Address:  Roosecote Power Station, Barrow-In-Furness,
                    Cumbria, England LA13 OPX
07                  Lakeland Power Development Company (UK corporation) 100%
                    Address:  Lansdowne House, Berkeley Square,
                    London W1X5DH England
06               Rapid Energy Limited
05            Mission Energy Italia s.r.l. 90% Representative Office in Italy

                                      25
<PAGE>

              Address:  Villa Brasini, Via Flaminia 497, 00191 Rome Italy
05            Pride Hold Limited (United Kingdom corporation) 1%
              Address:  Lansdowne House, Berkeley Square,
              London W1X5DH England
06               Lakeland Power Ltd. (United Kingdom private limited liability
                 company) [see 4.15] 80%
                 Address:  Roosecote Power Station, Barrow-In-Furness,
                 Cumbria, England LA13 OPX
06               Lakeland Power Development Company (UK corporation) 100%
                 Address:  Lansdowne House, Berkeley Square,
                 London W1X5DH England
05            Rillington Holdings Limited (Gibraltar)
              Address:  57/63 Line Wall Road, Gibraltar
06               EcoElectrica S.a.r.l. (Luxemburg) to be dissolved by 08/99
                 Address:                        Luxemburg
07                  EME del Caribe Holding GmbH (Austria)
                    Address:  4020 Linz, Landstrasse 12, Austria
08                      EME del Caribe (Cayman Islands)
                        Address:  First Floor, Caledonian House, Mary Street,
                        George Town, Grand Cayman, Cayman Islands
09                         EcoElectrica Holdings, Ltd. (Cayman Islands) 50%
                           Address:  1350 GT, The Huntlaw Building, Fort Street,
                           Grand Cayman, Cayman Islands
10                            EcoElectrica Ltd. (Cayman Islands) 100%
                              Address: 1350 GT, The Huntlaw Building, Fort
                              Street,
                              Grand Cayman, Cayman Islands
11                               EcoElectrica LP (Bermuda partnership) (equity)
                                 1%
                                 Address: Plaza Scotiabank, 273 Ponce de Leon
                                 Avenue,
                                 Suite 902, Hato Rey, Puerto Rico 00918
10                            EcoElectrica LP (Bermuda partnership) (equity) 99%
                              Address: Plaza Scotiabank, 273 Ponce de Leon
                              Avenue,
                              Suite 902, Hato Rey, Puerto Rico 00918
05            Southwestern Generation B.V. 100%
              Address:  Croeselaan 18, 3521 CB Utrecht, The Netherlands
05            Traralgon Power Pty. Ltd. (Australian corporation) 99%
              Address:  Southgate Complex, Level 20, Tower East,
              40 City Road, South Melbourne, Victoria 3205
06               Mission Victoria Partnership (Australian partnership) 46.69%
                 (100% w/ Latrobe PPL 52.31% and MEVALP 1%)
07                  Latrobe Power Partnership (Australian partnership) (owns 49%
                    of the Loy Yang B facility; 51% to Latrobe Power
                    Partnership)

                                      26<PAGE>

                                                                   Exhibit 10.77

                                                                  Execution Copy

                                   AGREEMENT

                                By And Between

                               S. Linn Williams

                                      And

                             Edison Mission Energy

                               February 5, 2000
<PAGE>

                                                                  Execution Copy

                               Table of Contents

<TABLE>
<CAPTION>
                                                                                         Page
                                                                                         ----
<S>                                                                                      <C>

ARTICLE 1:  DEFINITIONS; INTERPRETIVE MATTERS.........................................    1
     Section 1.01    Definitions......................................................    1
     Section 1.02    Interpretive Matters.............................................    3

ARTICLE 2:  EMPLOYMENT AND COMPENSATION...............................................    3
     Section 2.01    Resignation......................................................    3
     Section 2.02    Further Assurances...............................................    4
     Section 2.03    Effect of Resignation............................................    4
     Section 2.04    Compensation and Benefits........................................    4
     Section 2.05    Withholding......................................................    8
     Section 2.06    Company Property.................................................    8
     Section 2.07    Releases.........................................................    8

ARTICLE 3:  ADDITIONAL COVENANTS OF EXECUTIVE.........................................    9
     Section 3.01    Confidentiality..................................................    9
     Section 3.02    Stock Activity...................................................   11
     Section 3.03    Intentionally Omitted............................................   12
     Section 3.04    Non-Solicitation; Non-Disparagement; Non-Interference............   12
     Section 3.05    Ownership of Works...............................................   13
     Section 3.06    Cooperation With Legal Process...................................   13

ARTICLE 4:  GENERAL PROVISIONS........................................................   14
     Section 4.01    Opportunity to Review With Counsel...............................   14
     Section 4.02    Choice of Law....................................................   14
     Section 4.03    Remedies.........................................................   14
     Section 4.04    Severability.....................................................   14
     Section 4.05    No Amendment; Entire Agreement; No Waiver........................   14
     Section 4.06    Right Of Offset..................................................   15
     Section 4.07    Parties of Interest..............................................   15
     Section 4.08    Notices..........................................................   15
     Section 4.09    Counterparts.....................................................   15
     Section 4.10    Publicity........................................................   16
     Section 4.11    Headings.........................................................   16
     Section 4.12    Attorneys Fees...................................................   16
     Section 4.13    Further Assurances...............................................   16
     Section 4.14    Additional Covenants of the Company..............................   16
     Section 4.15    Dispute Resolution...............................................   16
     Section 4.16    Approvals........................................................   17
</TABLE>

                                       i
<PAGE>

                                                                  Execution Copy

SCHEDULE OF ADDRESSES

SCHEDULE OF DEFERRED COMPENSATION

SCHEDULE OF OTHER TERMINATED BENEFITS

SCHEDULE OF RETIREMENT BENEFITS

SCHEDULE OF VESTED OPTIONS

FORM OF GENERAL RELEASE

FORM OF AGE DISCRIMINATION RELEASE

                                      ii
<PAGE>

                                                                  Execution Copy

                                   AGREEMENT

     THIS AGREEMENT ("Agreement") is entered into as of February 5, 2000 by and
between S. Linn Williams (the "Executive") and Edison Mission Energy, a
California corporation (the "Company").

                                   RECITALS

     WHEREAS, the Executive is an American citizen who was hired by the Company
in California and employed there during most of his employment with the Company;

     WHEREAS, the Executive has recently been working for the Company in the
United Kingdom as Senior Vice President of the Company with responsibility for
its European operations; and

     WHEREAS, the Company has requested and Executive has agreed to resign from
his positions at the Company on the terms set forth herein;

     NOW, THEREFORE, in consideration of the mutual agreements and covenants of
the parties herein contained, and for other good and valuable consideration the
receipt and sufficiency of which are hereby acknowledged, the parties do hereby
agree as follows.

                ARTICLE 1:    DEFINITIONS; INTERPRETIVE MATTERS

     SECTION 1.01   DEFINITIONS.  As used herein the following terms have the
following meanings:

          (a)   "Affiliate" means, with respect to a specified Person, any
Person that, directly or indirectly, through one or more intermediaries,
controls, is controlled by, or is under common control with, such specified
Person.

          (b)   "Agreement" has the meaning specified in the introductory
paragraph of this Agreement.

          (c)   "Claims" has the meaning specified in the form of General
Release attached hereto.

          (d)   "Company" has the meaning specified in the introductory
paragraph of this Agreement.

          (e)   "Confidential Information" has the meaning specified in Section
3.01(a).

                                       1

<PAGE>

          (f)   "Deferral Plans" means the Edison International Executive
Deferred Compensation Plan and the Edison International Option Gain Deferral
Plan.

          (g)   "Effective Date" shall be February 8, 2000.

          (h)   "Equity Plans" has the meaning specified in Section 2.04(d).

          (i)   "Exchange Offer" means the exchange offer for the Company's
phantom options contemplated by that certain memorandum dated January 17, 2000
from Alan J. Fohrer to holders of the Company's phantom options, which is based
on an Exchange Offer assumed gross amount of $471.0647 per phantom EME Share
(less exercise prices) as the terms of which may be amplified, extended or
modified by the Company in the future, but the term "Exchange Offer" shall not
include any exchange offer made after the expiration or termination of the first
such exchange offer.

          (j)   "Executive" has the meaning specified in the introductory
paragraph of this Agreement.

          (k)   "Group" means two or more Persons which agree to act together
for the purpose of acquiring, holding, voting or disposing of Voting Stock or of
acquiring, holding or disposing of any significant subsidiary, or significant
amount of assets, of the Company or any Affiliate of the Company.

          (l)   "Materials" has the meaning specified in Section 3.05.

          (m)   "Options" has the meaning specified in Section 2.04(d).

          (n)   "Parent" means Edison International, a California corporation.

          (o)   "Person" means and includes an individual, a partnership, a
limited liability company, a joint venture, a corporation, a trust, an
unincorporated organization, a government or any department or agency thereof or
any entity similar to any of the foregoing.

          (p)   "Releasee" has the meaning specified in the form of General
Release attached hereto.

          (q)   "Releasor" has the meaning specified in the form of General
Release attached hereto.

          (r)   "Schedule of Addresses" means the Schedule of Addresses attached
hereto and incorporated herein by reference.

          (s)   "Schedule of Deferred Compensation" means the Schedule of
Deferred Compensation attached hereto and incorporated herein by reference.

                                       2
<PAGE>

          (t)   "Schedule of Other Terminated Benefits" means the Schedule of
Other Terminated Benefits attached hereto and incorporated herein by reference.

          (u)   "Schedule of Retirement Benefits" means the Schedule of
Retirement Benefits attached hereto and incorporated herein by reference.

          (v)   "Schedule of Vested Options" means the Schedule of Vested
Options attached hereto and incorporated herein by reference.

          (w)   "Voting Stock" means shares of capital stock of the Parent that
are entitled to vote in periodic elections for directors and any shares of
capital stock, or similar securities, of the Company and any Affiliate of the
Parent which are entitled to vote in periodic elections for directors or other
similar governing board members.

          (x)   "Works" has the meaning specified in Section 3.05.

     SECTION 1.02   INTERPRETIVE MATTERS.  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 "includes" or
"including" shall mean "including without limitation."  References to a Section,
Article, Exhibit or Schedule shall mean a Section, Article, Exhibit or Schedule
of this Agreement, and 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.  This Agreement
and any documents or instruments delivered pursuant hereto shall be construed
without regard to the identity of the Person who drafted the various provisions
of the same.  Each and every provision of this Agreement and such other
documents and instruments shall be construed as though the parties participated
equally in the drafting of the same.  Consequently, the parties acknowledge and
agree that any rule of construction that a document is to be construed against
the drafting party shall not be applicable either to this Agreement or such
other documents and instruments.

                   ARTICLE 2: EMPLOYMENT AND COMPENSATION

     SECTION 2.01   RESIGNATION.  Effective upon the Company's approval and
execution of this Agreement, Executive does hereby resign from any and all
positions of responsibility or authority at the Company, any subsidiary, parent
or Affiliate of the Company, any other entity in which the Company or any of its
Affiliates has an investment where Executive's position with such entity is
related to such investment, and any division, unit, plan, program, trust, fund,
project or other subdivision established, organized or sponsored by the Company
or any of its subsidiaries, parents or Affiliates or any such other entity,
whether such position is that of an agent, officer, manager, member, partner,
executive, trustee,

                                       3
<PAGE>

administrator, director or otherwise. Notwithstanding the foregoing, if the
Effective Date is after the date hereof, then between the date hereof and the
Effective Date, Executive shall remain an employee of the Company on
administrative leave, entitled to compensation for such period at his current
base rate of salary and existing fringe benefits, but it is understood that
Executive shall have no authority to bind or to determine or direct any activity
of, or represent, the Company or any of its Affiliates during such period. Upon
the Effective Date, and without any further action by Executive or the Company,
Executive's employment with the Company shall end.

     SECTION 2.02   FURTHER ASSURANCES.  To the extent necessary, Executive
agrees from time-to-time, upon the Company's reasonable request, to execute any
and all documents as may be necessary or desirable, in the reasonable and good
faith judgment of the Company or any of its Affiliates, to further confirm
and/or effectuate the aforesaid resignations.

     SECTION 2.03   EFFECT OF RESIGNATION. Executive and the Company agree that
the resignation contained herein arises from the mutual agreement of the
Executive and the Company, resulting in a cessation of Executive's continued
employment.  Such resignation shall be given the same effect as a termination of
Executive's employment by the Company without cause for purposes of the
Company's benefit plans including the Deferral and Equity Plans, but shall not
constitute or be deemed to be any breach of any employment or other obligation
or duty by either the Executive or by the Company or any of its Affiliates,
whether express or implied, for any purpose.

     SECTION 2.04   COMPENSATION AND BENEFITS.  Executive hereby agrees that the
following accurately reflect all of the compensation, benefits or perquisites
payable or otherwise to be provided to Executive by the Company and its
Affiliates on and after the Effective Date as a result of Executive's employment
by and separation from the Company and its Affiliates and that Executive is not
entitled to any other compensation, benefits, or perquisites except as set forth
in this Agreement:

          (a)   Salary.  On the Effective Date, Executive will receive accrued
base salary from the end of the immediately preceding payroll period for which
payment has been made through the Effective Date.

          (b)   Accrued Vacation.  On the Effective Date, the Company will pay
Executive such amounts as are due Executive for accrued and unused vacation time
in accordance with the Company's usual policies.

          (c)   Executive Incentive Compensation Plan.  On the Effective Date,
the Company will pay Executive a bonus amount for the 1999 year under the
Company's Executive Incentive Compensation Plan equal to a gross amount, before
withholding, of One Hundred Seventy-Seven Thousand Five Hundred U.S. Dollars
Exactly (U.S.$177,500).  Executive shall not be entitled to any further payments
under the Company's Executive Incentive Compensation Plan, including for any
period after 1999.  Nothing in this paragraph shall

                                       4
<PAGE>

create any inference or expectation regarding bonuses actually to be paid to
participants in such Plan for the 1999 year, which may be above or below target
amounts for individuals or in the aggregate.

          (d)   Options.  For purposes of the vesting of any unvested awards
previously made to Executive under the Edison International Equity Compensation
Plan or under the Edison International Management and Officer Long-Term
Incentive Compensation Plans (the "Equity Plans"), Executive's employment by the
Company shall be given the same effect as if Executive had remained regularly
employed through the Effective Date.  Executive and the Company agree that, as
of the Effective Date, Executive's vested options to acquire stock of the Parent
have been exercised in full and that vested phantom options in respect of the
Company are as set forth in the Schedule of Vested Options attached hereto and
incorporated herein by reference (the "Options").  From and after the Effective
Date, the Executive shall no longer be eligible for grants of any awards under
the Equity Plans or under any other long-term incentive plan of the Company or
its Affiliates, and all unvested awards shall terminate as of the Effective
Date.  On March 16, 2000, the Company shall pay to Executive, by wire transfer
in accordance with Executive's reasonable written instructions given at least
forty-eight (48) hours in advance, a gross amount, before withholding, that is
equal to the difference between U.S.$441.008 per phantom share and the pertinent
exercise price of such share as shown on the Schedule of Vested Options for each
vested phantom Option of the Company.  From and after the date hereof, Executive
shall have no further rights or entitlements in respect of such phantom Options
or any phantom options in respect of the Company subject to the following:
provided that in the event that (i) such Exchange Offer is closed, and (ii) the
terms on which such Exchange Offer is closed provide to holders of phantom
options who were employed on the Effective Date (excluding any employee whose
employment ends due to death, disability or normal retirement) a non-contingent
exchange value per phantom share (excluding interest and anything of value that
is subject to vesting on the performance of future services) that exceeds, as of
the consummation of the Exchange Offer, U.S.$441.008 per phantom share, then and
in such event, within thirty (30) days following the close of such Exchange
Offer, the Company shall pay to Executive a gross amount, in cash, before
withholding, equal to such excess multiplied by the number of total phantom
Options of Executive shown on the Schedule of Vested Options.  For the purpose
of this section, the Exchange Offer will close when the Company determines that
the conditions of the Exchange Offer are met and the Exchange Offer is
consummated which is currently contemplated for April 1, 2000.

          (e)   Deferral Plans.  The Schedule of Deferred Compensation attached
hereto and incorporated herein by reference sets forth, as of the date shown,
the vested balance of Executive's deferral account in the Edison International
Executive Deferred Compensation Plan and units credited to Executive's stock
unit account in the Edison International Option Gain Deferral Plan.  All
deferred compensation benefits shown on the Schedule of Deferred Compensation,
following the Effective Date, shall remain subject to the terms of the Deferred
Compensation Plan applicable thereto.

                                       5
<PAGE>

          (f)   Retirement Benefits.  The Schedule of Retirement Benefits
attached hereto and incorporated herein by reference sets forth, as of the
Effective Date, the vested benefits payable to Executive under retirement plans
of the Company and its Affiliates in which he has been a participant.  All such
benefits shown on the Schedule of Retirement Benefits, following the Effective
Date, shall remain subject to the terms of the pertinent retirement plan
applicable thereto, including the conditions to payment set forth therein.
After the Effective Date, there will be no further accrual of benefits for
Executive under such retirement plans.

          (g)   Health Benefits.  From the Effective Date until eighteen (18)
months thereafter, Executive and his family shall remain eligible to continue to
participate in medical and dental plans of the Company and its Affiliates on the
same basis as if Executive had remained employed by the Company in his current
position, provided that Executive shall be responsible for paying the premium
costs therefor in accordance with the Company's ordinary practices in respect of
former employees.

          (h)   Other Insurance Coverage.  Executive acknowledges that, except
as provided in Section 2.04(g) above, no life, health, accident, disability or
other insurance policies or health or welfare benefits will be provided for him
by the Company or its Affiliates after the Effective Date.

          (i)   Contract Costs.  The Company will reimburse Executive for the
reasonable fees and costs of any attorney, financial advisor, accountant and/or
other professional advising and assisting Executive in the negotiations of this
Agreement, up to Twenty-Five Thousand U.S. Dollars Exactly (U.S$25,000) in the
aggregate.

          (j)   Outstanding Expense Reports.  Executive agrees to submit to the
Company an expense report for all reimbursable and reasonable expenses he has
incurred as an employee of the Company no later than the fifteenth business day
following the Effective Date, and acknowledges that the business expenses to be
contained in such expense report will be the only remaining reimbursable
business expenses incurred by Executive while in the Company's employ.  The
Company will reimburse Executive for such expenses within thirty (30) days of
Executive's submission of the report, to the extent such expenses are valid and
reimbursable under Company policy.

          (k)   Severance.  As further consideration for Executive's execution
of this Agreement, the Company agrees to provide the following severance
benefits to Executive:

               (i)   On the Effective Date, the Company shall make a one-time
severance payment to Executive in an amount, prior to withholding, that is equal
to Three Hundred Seventy-Five Thousand U.S. Dollars Exactly (U.S.$375,000).

               (ii)  The Company currently pays Executive One Thousand Eight
Hundred Twenty-Five U.S. Dollars Exactly (U.S.$1,825), before withholding, every
other week as an overseas living allowance. The Company shall continue to make
such payments

                                       6
<PAGE>

until the earlier of (x) the first anniversary of this Agreement, and (y) the
relocation of the primary residence of Executive's family back to the United
States.

               (iii)  In the event that the primary residence of Executive's
family is relocated from London, England to the United States prior to the
second anniversary of the date hereof, then the Company shall reimburse the
reasonable costs of such relocation in accordance with the usual policies and
practices of the Company in respect of similar relocations, including provision
of supporting documentation, provided that, the Company's obligation for such
reimbursement shall not exceed One Hundred Fifty Thousand U.S. Dollars Exactly
(U.S.$150,000) in the aggregate. Notwithstanding the foregoing, such reasonable
costs shall not include any costs related to finding or acquiring a residence in
the United States and the Company shall have the right to select and/or approve
all providers of services to Executive and his family in connection with such
relocation if the Company is responsible for the reimbursement of the costs of
same.

               (iv)   The Company shall permit Executive and his family to
occupy the Company-owned residence currently occupied by Executive and his
family until the first anniversary of the date hereof on the same terms and
conditions (i.e., rent-free) as such apartment is currently occupied by
Executive. If Executive desires to continue to occupy such premises after such
date, then he shall so notify the Company in writing no later than November 1,
2000. In such event, from and after the first anniversary of the date hereof,
the Executive shall, subject to the availability of and the terms of the lease
for such apartment, assume all of the Company's obligations in respect of such
apartment and shall pay and discharge the same as and when due or, at the
Company's election, reimburse the Company for the actual costs of all such
obligations. Executive shall execute customary documents reasonably requested by
the Company to memorialize such arrangement. Such arrangement shall be
terminable by Executive at any time on sixty (60) days' prior written notice to
the Company and shall be terminable by the Company only for Executive's breach
of his obligations in respect of such apartment and unless such breach has been
cured within thirty (30) days following the Company's written notice of breach,
provided that, Executive's right to occupy such premises shall in all events
expire on July 31, 2001. If Executive fails timely to notify the Company of his
intent to continue to occupy the premises and assume all of the Company's
obligations therefor, he shall voluntarily and entirely vacate the premises by
the first anniversary of the date hereof.

               (v)   Executive hereby acknowledges that he is not entitled to
any of the foregoing severance benefits or compensation described in Section
2.04(k) either by contract or California law. The Company is providing these
severance benefits and compensation in consideration for Executive's execution
of this Agreement and to compensate him for any alleged and/or claimed losses
allegedly due to the resignation of his employment.

               (vi)  If for any reason, any claim, demand, obligation, cause of
action, debt, expense, damage, judgment, order or liability is not released or
is found to survive the Form of General Release and Form of Age Discrimination
Release executed by Ex-

                                       7
<PAGE>

ecutive, the full amount of the monetary benefits provided under Section 2.04(k)
shall be a credit towards and/or a set off against any monetary or other award
on such claim, demand, obligation, cause of action, debt, expense, damage,
judgment, order or liability regardless of the jurisdiction, foreign or
domestic, in which it arises or is issued.

          (l)   Other Compensation.  Executive acknowledges that from and after
the Effective Date, all other compensation, benefits and perquisites to which he
has been entitled as an employee of the Company shall forthwith terminate and
that he shall no longer be entitled to receive the same, including without
limitation, reimbursement for the costs of a car and driver and for private club
memberships.  Without limiting the generality of the foregoing, the other
benefits and perquisites in which Executive currently participates which shall
no longer be available to him after the Effective Date are as set forth in the
Schedule of Other Terminated Benefits attached hereto and incorporated herein by
reference.

     SECTION 2.05   WITHHOLDING.  Executive agrees that all compensation,
benefits and perquisites payable hereunder shall be paid after withholding for
taxes which, in the Company's reasonable good faith judgment, are required to be
withheld by the Company, including income taxes at the then current published
rates unless Executive elects to use higher rates.  Notwithstanding the
foregoing, it is understood that all personal income and related taxes
applicable to any and all compensation, benefits and perquisites payable
hereunder shall be paid by Executive, and the Company shall not be obligated to
pay any such taxes or to provide Executive with funds for the payment of same.

     SECTION 2.06   COMPANY PROPERTY.  Subject to Section 2.04(k)(iv), Executive
agrees to return to the Company, as soon as practicable, but in any event on or
prior to the Effective Date, all Company property, including, but not limited
to, all keys, credit cards, documents, equipment (including computer and
telephone equipment) automobiles, files, data and records of any kind whatsoever
that he has in his possession or control regardless of the form for storage
thereof (whether documentary, on discs or present on other electronic media).
The Company agrees to permit Executive to retain copies of documents that are
contained in his office files and that are personal in nature, subject to the
Company's prior review of such materials and approval of their retention by the
Executive.  Notwithstanding the foregoing, the Company will cooperate and work
together with Executive to facilitate Executive's assumption of the Company's
future obligations in respect of any automobile currently leased by the Company
for Executive if Executive chooses to assume such obligations.

     SECTION 2.07   RELEASES.  In further consideration of the Company's entry
into this Agreement with Executive and its promise to make payments and to
provide benefits hereunder to which Executive is not otherwise entitled,
Executive is, concurrent with the Company's execution of this Agreement,
delivering to the Company executed copies of the forms of releases attached
hereto, respectively, as "Form of General Release" and "Form of Age
Discrimination Release."  In the event that the Executive exercises his right to
rescind

                                       8
<PAGE>

the Age Discrimination Release, then notwithstanding any other provision of this
Agreement, the Company shall have the right, within five (5) days thereafter, to
terminate any and all further obligations of the parties under this Agreement.

                ARTICLE 3:    ADDITIONAL COVENANTS OF EXECUTIVE

     SECTION 3.01   CONFIDENTIALITY.

          (a)   Executive acknowledges that he has held a sensitive management
position with the Company and that, by virtue of having held such position, he
has had access to and has learned the Company's and its subsidiaries' and
Affiliates' confidential and proprietary information and trade secrets
pertaining to its and their past, present, planned or projected operations,
results of operations, prospects, processes, know-how, services, projects,
strategies, techniques, procedures, financial capabilities, assets,
transactions, partners, financing sources and personnel, disclosure of any of
which to present or future competitors, investors, partners or the general
public would be highly detrimental to the best interests of the Company and its
Affiliates.  All such confidential and proprietary information to which
Executive has had access as a result of his position with the Company are herein
referred to as "Confidential Information."  Examples of such confidential and
proprietary information include, but are not limited to, the Company's
investigations of and development and analytical work on potential future
electric generation assets, both those potentially to be constructed and those
potentially to be acquired.  Executive further acknowledges and agrees that the
right to maintain the confidentiality of such Confidential Information
constitutes a proprietary right which the Company and its Affiliates are
entitled to protect.

          (b)   Accordingly, without limiting any obligations of Executive
arising at law or pursuant to any existing agreement to which Executive is
bound, Executive covenants and agrees to and in favor of the Company that,
subject to the further provisions of this Agreement, Executive shall not
disclose any Confidential Information to any Person other than as approved by
the Company in writing in advance, and Executive shall not use for the
Executive's own purposes or for any purpose other than those of the Company and
its Affiliates any Confidential Information until such Confidential Information
has been otherwise publicly disclosed.  Without limiting the generality of the
foregoing, Executive agrees that, except as permitted in writing by the Company,
he will not respond to or in any way participate in or contribute to any public
discussion, notice or other publicity concerning or in any way related to
Confidential Information or, subject to Section 4.10, any confidential matters
concerning his employment at the Company.  Executive agrees that any disclosure
by him of any of the Confidential Information shall constitute a material breach
of this Agreement and of his fiduciary obligations to the Company.

                                       9
<PAGE>

          (c)   For purposes of this Section 3.01, "Confidential Information"
does not include information which (i) is or becomes generally available to the
public other than as a result of disclosure by Executive, or (ii) was within the
Executive's possession prior to being furnished to the Executive by or on behalf
of the Company or its Affiliates, provided that the Executive did not receive
such information in a fiduciary capacity and provided further that the scope of
such information was not known to the Executive to be bound by a confidentiality
agreement with or other contractual, legal or fiduciary obligation of
confidentiality to the Company or any of its Affiliates or any other Person with
respect to such information.

          (d)   If Executive is requested or required (by oral questions,
interrogatories, requests for information or documents in connection with any
legal proceedings, subpoena, civil investigative demand or other similar
process) to disclose any Confidential Information, then Executive shall provide
the Company with prompt written notice of any such request or requirement so
that the Company may seek a protective order or other appropriate remedy and/or
waive compliance with the provisions of this Agreement.  If, in the absence of a
protective order or other remedy or the receipt of a waiver from the Company,
the Executive is, in the written opinion of counsel reasonably acceptable to the
Company (the reasonable attorney's fees and costs of which opinion the Company
shall reimburse), legally compelled to disclose Confidential Information to any
tribunal or else stand liable for contempt, or suffer other censure or penalty,
then Executive may, without liability hereunder, disclose to such tribunal only
that portion of the Confidential Information which such counsel advises the
Executive is legally required to disclose, provided that Executive exercises
commercially reasonable efforts to preserve the confidentiality of the
Confidential Information, including, without limitation, by cooperating with the
Company to obtain an appropriate protective order or other reliable assurance
that confidential treatment will be accorded the Confidential Information by
such tribunal.

          (e)   Without limiting the provisions of Section 2.06, all files,
forms, brochures, books, materials, written correspondence, memoranda,
documents, manuals, computer disks, software products and lists that have in the
past or may in the future come into the possession or control of the Executive
as a result of his being an employee of or consultant to the Company shall at
all times remain as the property of the Company and not of the Executive.  At
the time required by Section 2.06, and at any other time or times demanded by
the Company, Executive shall deliver promptly to the Company all such property
in the possession of the Executive or directly or indirectly under the control
of the Executive.  Executive agrees not to make, for the use of the Executive or
of any other Person, reproductions or copies of any such property or other
property of the Company.

     SECTION 3.02   STOCK ACTIVITY.  Executive hereby agrees that from the date
hereof until the second anniversary of the Effective Date, Executive shall not:

          (a)   Acquire, by purchase or otherwise (except pursuant to
Executive's participation in employee benefit plans), offer to acquire or obtain
the right to acquire, propose

                                       10
<PAGE>

to acquire, announce any intention or plan to acquire, or announce or make any
request for permission to acquire, directly or indirectly, any shares of Voting
Stock, or any other security convertible into or exercisable or exchangeable for
Voting Stock, unless (i) following such acquisition and after giving effect
thereto, the Executive and any Group of which he is a member, would not be
directly or indirectly the beneficial owners of more than five percent (5%) of
the outstanding shares of Voting Stock of the Parent, the Company or any
Affiliate thereof, as the case may be, and (ii) such acquisitions or offers or
agreements to acquire are made in open market transactions (or pursuant to the
Equity Plans);

          (b)   Directly or indirectly engage in, or become a member of a Group
which is engaging or which subsequently engages in, any tender offer or exchange
offer for any shares of Voting Stock;

          (c)   Take any other action, participate in or become a member of any
Group, or make any proposal, offer to acquire or obtain a right to acquire,
propose to acquire, announce any intention or plan to acquire, or announce or
make any request for permission to acquire, directly or indirectly or alone or
together with others, control of the Company or of any Affiliate of the Company
or of any division, business segment or significant amount of assets of the
Company or of any Affiliate of the Company;

          (d)   Enter into any voting agreement or proxy arrangement with
respect to shares of Voting Stock, or deposit any shares of Voting Stock into
any voting trust or similar entity, as a result of which the voting rights
associated with any or all of Executive's Voting Stock are vested in another
Person, other than proxies (or their substitutes) designated by the Board of
Directors of the issuer of such Voting Stock in proxy material for any meeting
of stockholders of such issuer;

          (e)   Conduct or become a participant in any solicitation of proxies
with respect to Voting Stock, or make any announcement with respect to any
solicitation of proxies, for the purpose of opposing a solicitation (for
election of directors or otherwise) approved by a majority of the whole Board of
Directors of the issuer of such Voting Stock, or present any proposal, or
solicit or become a participant in the solicitation of proxies in favor of a
proposal, for action at a meeting of the stockholders of such issuer, which is
not approved by a majority of the whole Board of Directors of such issuer;

          (f)   Enter into any plan, agreement or arrangement, or become a
member of any Group, for the purpose of engaging in any activity prohibited by
the foregoing paragraphs of this Section 3.02 ; or

          (g)   Assist directly or indirectly any other Person in connection
with such other Person's engaging in any activity which, if engaged in by the
Executive, would constitute a violation of this Section 3.02.

     SECTION 3.03   INTENTIONALLY OMITTED.

                                       11
<PAGE>

     SECTION 3.04   NON-SOLICITATION; NON-DISPARAGEMENT; NON-INTERFERENCE.
During the period that begins on the date hereof and that ends on the second
anniversary of the Effective Date, Executive agrees that he will not, directly
or indirectly, for his own benefit, for the benefit of any Person other than the
Company or its Affiliates, or otherwise:

          (a)   Solicit, encourage or induce, or assist any Person to solicit,
encourage or induce, any officer, director, executive or employee of the Company
or its Affiliates to leave his or her employment with the Company or its
Affiliates for any reason, it being agreed that the foregoing shall not prohibit
Executive from soliciting the employment of his current secretarial assistant;

          (b)   Induce or attempt to induce any customer, supplier, financier,
government agency, independent contractor, developer, promoter or other Person
having any business or regulatory relationship with the Company or any of its
Affiliates to cease, reduce or alter the nature, amount or terms of business
conducted or regulatory oversight or practices followed with respect to the
Company or any of its Affiliates or to engage in any business, regulatory or
other activity which might materially harm the Company or any of its Affiliates
or which is opposed by the Company and its Affiliates;

          (c)   Make or cause to be made any public statement that is
disparaging of the Company or any of its Affiliates or their respective
businesses or that materially injures the business or reputation of the Company
or any of its Affiliates or their respective businesses; or

          (d)   Directly or indirectly advise, consult or discuss with, provide
information to, or assist any Person, including any holder of phantom options in
the Company or any advisor or representative of any such holder, or make any
comment or offer or provide any opinion or otherwise make statements, concerning
the phantom options, or the grant, appreciation, value, or exercise thereof, or
any transaction or proposed transaction in respect of such phantom options,
including without limitation any planned or actual exchange offer by the Company
therefor, or any interpretation or action by the Company planned or actually
made with respect to such phantom options, or any claims or proceedings, whether
pending or threatened, relating to such phantom options, without the prior
written consent of the Chief Executive Officer of the Company, except and to the
extent compelled by law.

     SECTION 3.05   OWNERSHIP OF WORKS.  As between the Company and Executive,
the Company shall be the sole and exclusive owner, throughout the universe, in
perpetuity, of all right, title, interest, benefits and profits of every kind
and nature whatsoever, whether now known or unknown, in, to and from all
programs, financial or business plans, all non-generic ideas and concepts,
logos, discoveries, trade secrets, prospect lists, or other tangible work
product and materials (including, without limitation, tangible materials
containing market, financial and other research) of every kind and nature
whatsoever (collectively, the "Works") written, conceived, developed, furnished
or created by or under the auspices of Executive in connection with his
performance of duties as an employee of or consultant to the Company, and all
results, benefits and proceeds of such Works (all of such Works, results,

                                      12
<PAGE>

benefits and proceeds being collectively referred to as the "Materials").  All
of such Materials shall constitute a "work made for hire" for the Company within
the meaning of the United States Copyright Act of 1976, as amended.  In the
event that the Materials or any portion thereof are for any reason whatsoever
not deemed to be a "work made for hire" for the Company, Executive hereby grants
and assigns to the Company all right, title, interest, benefits and profits of
every kind and nature whatsoever, whether now known or unknown, in, to and from
the Materials.  As between the Company and Executive, the Company shall at all
times have the perpetual and exclusive right to exploit such Materials and all
works derived therefrom throughout the universe, and all revenues and other
benefits and profits derived by the Company from such exploitation, as between
the Company and Executive, shall be the sole and exclusive property of the
Company.  Executive agrees to execute, and to cause each of his employees or
agents to execute, any and all formal assignments, recordations and any other
documents which the Company reasonably deems are necessary or desirable to
effectuate and/or evidence the Company's rights in and to the Materials.

     SECTION 3.06  COOPERATION WITH LEGAL PROCESS.  From and after Executive's
employment with the Company, the Company shall, consistent with the Company's
then existing policies for indemnification of officers, continue to indemnify
Executive for his activities as an officer, director and employee of the Company
to the extent provided under and permitted by, and subject to the provisions and
conditions of, law and the charter documents of the Company in effect at the
time, as though Executive remained an officer, director and/or employee of the
Company.  In return, Executive agrees to provide reasonable cooperation and
assistance to the Company, when and as requested by the Company and without
charge to the Company except for the Executive's reasonable and bona fide out-
of-pocket costs (including reasonable attorney's fees and costs), in connection
with any and all pending or threatened claims, proceedings and investigations
(whether on behalf of or against the Company) arising out of, or alleged to
arise out of, facts or circumstances existing during the term of Executive's
employment by the Company.  Should reasonable cooperation from Executive require
more than two (2) consecutive days in any two (2) month period, the Company will
provide Executive with reasonable compensation for such excess time actually
expended by Executive.

                        ARTICLE 4:    GENERAL PROVISIONS

     SECTION 4.01   OPPORTUNITY TO REVIEW WITH COUNSEL.  Executive represents
that he has discussed all aspects of this Agreement with an attorney of his
choice, that he has carefully read and fully understands all of the provisions
of this Agreement and that he is voluntarily entering into this Agreement.

                                      13
<PAGE>

     SECTION 4.02   CHOICE OF LAW.  This Agreement shall be governed by, and
construed in accordance with, the laws of the State of California, without
reference to the choice of law doctrine of California.

     SECTION 4.03   REMEDIES.  The rights and remedies of each party under this
Agreement are not, except as expressly provided herein to the contrary, to the
exclusion of each other or of any other rights or remedies of such party.  Each
party may exercise or decline to exercise any one or more of its rights and
remedies without waiver of any such subsequent exercise of such right and remedy
or any other rights and remedies of such party.  Executive acknowledges that the
Company cannot be properly protected from adverse consequences if Executive
should default under specified provisions of this Agreement.  Accordingly, the
Executive agrees that in the event of any breach or threatened breach by
Executive of any of the provisions of Sections 3.01, 3.02, 3.04 or 3.05 of the
Agreement or of any warranty or representation in the Form of General Release or
the Form of Age Discrimination Release, the Company, in addition to any other
right or relief to which it may be entitled, shall be entitled to an order
enjoining such breach or threatened breach and specifically enforcing
Executive's compliance with the provisions thereof, Executive agreeing that he
is hereby estopped and prohibited from arguing that damages are an adequate
remedy for any such breach or threatened breach or that such equitable relief is
inappropriate under the circumstances.

     SECTION 4.04   SEVERABILITY.  If any term or other provision of this
Agreement is invalid, illegal or incapable of being enforced by any law or
public policy, all other terms and provisions of this Agreement shall
nevertheless remain in full force and effect so long as the economic or legal
substance of the provisions hereof is not affected in any manner materially
adverse to any party.  Upon such determination that any term or other provision
is invalid, illegal or incapable of being enforced, the parties hereto shall
negotiate in good faith to modify this Agreement so as to effect the original
intent of the parties as closely as possible in an acceptable manner in order
that the provisions hereof are implemented and enforced as originally
contemplated to the greatest extent possible.

     SECTION 4.05   NO AMENDMENT; ENTIRE AGREEMENT; NO WAIVER.  This Agreement
and the Schedules and attachments hereto constitute the entire agreement of the
parties with respect to the subject matter hereof and supersede all prior
agreements and undertakings, both written and oral, between the parties with
respect to the subject matter hereof.  Without limiting the generality of the
foregoing, Executive specifically represents and acknowledges that in executing
this Agreement, he does not rely and has not relied on any representations or
statements made by the Company, or any of the Company's agents, representatives
or attorneys with regard to the subject matter, basis or effect of this
Agreement, or otherwise.  This Agreement may not be amended except by an
instrument in writing signed by the parties. Either party may (a) extend the
time for the performance of any of the obligations or other acts of the other
party, or (b) waive compliance with any of the agreements applicable to the
other party contained herein.  Any such extension or waiver shall be valid only
if set forth in an instrument in writing signed by the party to be

                                      14
<PAGE>

bound thereby. Any waiver of any term or condition shall not be construed as a
waiver of any subsequent breach or a subsequent waiver of the same term or
condition, or a waiver of any other term or condition, of this Agreement. The
failure of a party to assert any of its rights hereunder shall not constitute a
waiver of any of such right.

     SECTION 4.06   RIGHT OF OFFSET.  The Company shall have the right to offset
against amounts owed Executive by the Company (except for Deferral Plans and
Retirement Benefits) any amounts which, in the future, Executive owes to the
Company.

     SECTION 4.07   PARTIES IN INTEREST.  This Agreement may not be assigned or
transferred by either party, by operation of law or otherwise, without the prior
written consent of the other party (which consent may be granted or withheld in
the sole discretion of such other party).  This Agreement shall be binding upon
and inure solely to the benefit of the parties and their permitted assigns and
nothing herein, express or implied, is intended to or shall confer upon any
other Person any legal or equitable right, benefit or remedy of any nature
whatsoever under or by reason of this Agreement.

     SECTION 4.08   NOTICES.  Any notice, payment, demand, or communication
required or permitted to be given by any provision of this Agreement shall be in
writing and shall be deemed to have been delivered, given, and received for all
purposes (a) if delivered personally to the Person to whom it is addressed, or
(b) when the same is actually received, if sent by a nationally recognized
courier service (which provides proof of delivery), by registered or certified
mail (postage and charges prepaid), or by facsimile (if such facsimile is
followed by a hard copy of the facsimile communication sent promptly thereafter
by a nationally recognized courier service (which provides proof of delivery) or
registered or certified mail (postage and charges prepaid)), addressed as set
forth in the Schedule of Addresses attached hereto and incorporated herein by
reference or to such other address as such Person may from time to time specify
by due notice.

     SECTION 4.09   COUNTERPARTS.  This Agreement may be executed in one or more
counterparts, and by the Parties in separate counterparts, each of which when
executed shall be deemed to be an original but all of which taken together shall
constitute one and the same agreement.

     SECTION 4.10   PUBLICITY.  Executive represents that neither he nor his
representatives have communicated with any past, present or prospective employee
of the Company or any of its Affiliates concerning the amounts payable under
this Agreement and the parties agree that, for a period of at least six (6)
months, they will keep the terms, amounts and facts of this Agreement completely
confidential, and that they will not during such period disclose any information
concerning this Agreement to anyone except their respective attorneys or
accountants, including, but not limited to, any past, present or prospective
employees of the Company or any of its Affiliates, except in each case as may be
required by law, including, without limitation, filings required by the Company
and/or by the Parent with the Securities and Exchange Commission.  The parties
agree that any press release by

                                      15
<PAGE>

the Company in respect of the end of Executive's employment with the Company
shall simply refer to the fact that Executive has resigned from the Company.

     SECTION 4.11   HEADINGS.  The descriptive headings contained in this
Agreement and table of contents of this Agreement are for convenience of
reference only and shall not affect in any way the meaning or interpretation of
this Agreement.

     SECTION 4.12   ATTORNEYS FEES.  In any litigation or proceeding relating to
this Agreement, the prevailing party shall be entitled to recover its costs and
reasonable attorney fees.

     SECTION 4.13   FURTHER ASSURANCES.  The parties agree to execute such
further instruments and perform such further acts as may be reasonably necessary
to carry out the intent and purposes of this Agreement.

     SECTION 4.14   ADDITIONAL COVENANTS OF THE COMPANY.  The Company agrees
that, for a period of two (2) years from the Effective Date, the Company and its
Affiliates will not publicly issue any press release that disparages, or
materially injures the business or reputation of, the Executive, and will make
reasonable efforts to prevent their executive officers and official
spokespersons from making public statements on behalf of the Company or its
Affiliates that are disparaging of Executive or materially injure his business
or reputation.  The Company further agrees to exercise reasonable efforts to
cause personal mail addressed to Executive to be forwarded to him in a timely
fashion (Executive agreeing to make reasonable efforts to notify third parties
of the change in his business address).

     SECTION 4.15   DISPUTE RESOLUTION.  All disputes arising out of or relating
to this Agreement shall be resolved pursuant to the reference procedure set
forth in California Code of Civil Procedure 638 et seq.  The parties hereby
agree to submit to the jurisdiction of the Superior Court of Los Angeles County
for such purpose.  Each party hereby acknowledges that it is waiving any right
to a trial by jury.  Either party may initiate the procedure set forth in this
Section by providing the other party with notice setting forth the nature of the
dispute.  The parties shall designate to the Superior Court a referee who is an
active attorney or retired judge living in Los Angeles County who shall resolve
the dispute.  If the parties are unable to designate a referee within 20 days
after the receipt of the original referral notice, the parties shall request
that the Superior Court appoint a referee.  In connection with any proceeding
pursuant to this Section, the parties shall have all discovery rights which
would have been available had the matters which are the subject of the dispute
been decided by the Superior Court.  Discovery proceedings may be noticed and
commenced immediately after delivery of the original referral notice.  The
hearing before the referee shall begin no later than 60 days after the receipt
of such referral notice.  All discovery in connection with the reference
procedure shall be concluded no later than 15 days prior to the commencement of
the hearing.  Judgment upon the award rendered by the referee shall be entered
in the Superior Court.  Nothing in this Section shall be construed to impair the
right of either party to appeal from such judgment.

                                      16
<PAGE>

     SECTION 4.16   APPROVALS.  The effectiveness and implementation of this
Agreement are subject to the approval of the Board of Directors of the Company
and, at the Company's election, the Compensation and Executive Personnel
Committee of the Board of Directors of the Parent.

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

                             /s/ S Linn Williams
                             ---------------------
                             S. Linn Williams

                          EDISON MISSION ENERGY

                          By:/s/ Alan J. Fohrer
                             ---------------------

                          Title:Pres & CEO
                                ------------------

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

                          Title:
                                ------------------

                                      17
<PAGE>

                             SCHEDULE OF ADDRESSES

     Notices to the Company and to the Parent shall be addressed as follows:

          Chief Executive Officer
          Edison Mission Energy
          18101 Von Karman Avenue
          Suite 1700
          Irvine, California  92612-1046

          FAX:  949-757-0807

     Notices to the Executive shall be addressed as follows:

          66 Acacia Road
          London NW8 6 A E
          United Kingdom
          FAX:  011-44171-722-0767

     With a courtesy copy to:

          Ronald M. Greenberg, Esq.
          Rosenfeld, Meyer & Susman
          9601 Wilshire Blvd., 4/th/ Floor
          Beverly Hills, California 90210

          FAX:  (310) 271-6430
<PAGE>

                      SCHEDULE OF DEFERRED COMPENSATION*

Balance as of January 27, 2000:
Edison 401(k) Savings Plan and Profit Sharing       U.S.$ 77,032

Balance as of January 31, 2000:
Executive Deferred Compensation Plan (EDCP)         U.S.$588,652

               Total                                U.S.$665,684

*    Additional amounts, if any, arising from Profit Sharing amounts for
     the 1999 year will be added in the ordinary course when calculated.
     All benefits under these Plans are subject to the expressed terms of
     the relevant Plans.
<PAGE>

                    SCHEDULE OF OTHER TERMINATED BENEFITS*

     Employee Life Insurance
     Executive Incentive Compensation Plan
     Long-Term Incentive Compensation Plan
     Equity Compensation Plan
     Affiliate Long Term Incentive Program
     401(k) Savings Plan
     Executive Deferred Compensation Plan
     Option Gain Deferral Plan
     Executive Retirement Plan
     Retirement Plan
     Estate and Financial Planning
     Comprehensive Disability and Executive Disability Plan
     Long-Term Disability
     Dependent Life Insurance
     Dependent AD&D Insurance
     Dependent Care Reimbursement Account
     Vacation
     Vacation Buying and Selling
     Holidays
     Personal Use of Company Car/Auto Allowance/Driver
     Executive Physical
     Accidental Death and Dismemberment
     24-Hour Business Travel Accident Insurance
     Club Memberships
     Health Care Reimbursement Account
     Preventive Health Care Account
     Employee Assistance Plan (EAP)
     Retiree Health Care and Medicare

________________________
*    Executive is entitled to any vested benefits and/or balances in any of the
     above plans but will have no further entitlements under any of the plans
     except as otherwise provided in this Agreement.
<PAGE>

                     SCHEDULE OF RETIREMENT BENEFITS(1)(2)

Projected annual and lump-sum values(3)

                                              Executive          Retirement
                                           Retirement Plan         Plan
                                           ---------------       ----------
Annual Value of Life Annuity
----------------------------

Payment commencing April 1, 2002                 N/A             U.S.$6,420

Payment commencing July 1, 2002              U.S.$31,200              N/A

Lump Sum Value
--------------

As of March 1, 2000                              N/A            U.S.$84,000 (4)

As of July 1, 2002                       U.S.$358,000 (4)(5)          N/A

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

  (1)  All benefits under these Plans are subject to the express terms of the
       relevant Plans.

  (2)  Benefit payment commencement on April 1, 2000 for the Retirement Plan and
       July 1, 2002 (age 55) for the Executive Retirement Plan, assuming last
       day of employment is during February 2000.

  (3)  Assumes Executive receives a bonus of 50% of base pay (125% of his target
       bonus of 40%) for 1999.

  (4)  The annuity value of the Retirement Plan is determined as of the assumed
       payment commencement date using a 6.07% interest rate. The lump sum for
       the Executive Retirement Plan uses an interest rate of 7.33%.

  (5)  Lump-sum distributions are not available for those employees terminating
       prior to age 55. This value is shown for illustrative purposes only.
<PAGE>

                        SCHEDULE OF VESTED OPTIONS

          -----------------------------------------------------
           Date       Grant     Vesting      Grant       Vested
           Grant      Type      Schedule     Price       Shares
          -----------------------------------------------------
           1/3/95     EME          3       $154.2317     19,890

           1/2/96     EME          3       $181.0666     14,700

           1/2/97     EME          3       $226.6772      9,900

           1/4/98     EME          4       $313.8153      1,610

           1/4/99     EME          4       $334.4392      1,150
                                                         ------
                     Total                               47,250
<PAGE>

                            FORM OF GENERAL RELEASE

          THIS GENERAL RELEASE ("Release") is being delivered as of February 5,
2000 by S. Linn Williams (the "Executive") to Edison Mission Energy, a
California corporation (the "Company"), pursuant to Section 2.07 of that certain
agreement related to Executive's employment with the Company being executed
concurrently herewith by Executive and the Company (the "Agreement").  All
capitalized terms not otherwise defined herein have the same meaning as is given
to them in the Agreement.

          (a)  Executive, on behalf of himself and his descendants, ancestors,
heirs, executors, successors, assigns and administrators (collectively,
"Releasor"), hereby releases, remises, acquits and forever discharges, and
agrees to indemnify and hold harmless, (x) the Company, (y) each of its
Affiliates, and (z) each of its and/or their partners, predecessors, successors,
assigns, officers, directors, shareholders, representatives, insurers,
attorneys, employees and agents, past, present and future, in their respective
capacities as such (collectively, "Releasees"), from and against any and all
claims, demands, obligations, causes of action, debts, expenses, damages,
judgments, orders and liabilities of whatever kind or nature, in law, equity or
otherwise, whether arising under the law of any jurisdiction in the United
States or of any foreign jurisdiction, whether now known or unknown, suspected
or unsuspected, matured or unmatured, and whether concealed or hidden
(collectively, "Claims"), which Executive now owns or holds or has at any time
heretofore owned or held or had, or may at any time own or hold or have, against
the Releasees or any of them, including, but not limited to any Claim arising
out of or in any way connected to any transactions, occurrences, acts or
omissions regarding or relating to his employment with the Company, or the end
of his employment with the Company, including, but not limited to, Claims
arising from any alleged violation by the Company of any federal, state or local
constitutions, statutes, ordinances or common laws, including but not limited
to, the California Fair Employment and Housing Act, Employee Retirement Income
Security Act, Americans With Disabilities Act and Title VII of the Civil Rights
Act of 1964 and/or the Civil Rights Act of 1991.

          (b)  Except for those matters that are expressly excluded, the
release set forth herein is intended as a release of all Claims that the
Releasor may have against the Releasees or any of them, whether now known or
unknown.  In furtherance thereof, Executive expressly waives and relinquishes
any right to assert hereafter that any claim, demand, obligation and/or cause of
action has, through ignorance, oversight, error or otherwise, been omitted from
the terms of this Agreement.  Executive makes this waiver with full knowledge of
his rights, after consulting with legal counsel, and with specific intent to
release both his known and unknown claims.  Accordingly, Releasor specifically
waives all rights and benefits afforded by California Civil Code Section 1542
and does so understanding and acknowledging the significance of such specific
waiver of such statutory protection, which provides as follows:

                                       1
<PAGE>

          "A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS WHICH THE
          CREDITOR DOES NOT KNOW OR SUSPECT TO EXIST IN HIS FAVOR AT
          THE TIME OF EXECUTING THE RELEASE, WHICH IF KNOWN BY HIM
          MUST HAVE MATERIALLY AFFECTED HIS SETTLEMENT WITH THE
          DEBTOR."

Thus, notwithstanding the foregoing provisions of the California Civil Code, and
for the purposes of implementing a full and complete release and discharge of
the Releasees, Executive expressly acknowledges that the foregoing release is
intended to include in its effect, without limitation, all Claims that Executive
does not know or suspect to exist in his favor at the time of the execution
hereof, and the foregoing release contemplates the extinguishment of any such
Claim or Claims except to the extent expressly set forth herein. Executive
further acknowledges that he has been advised to consult with an attorney and is
receiving compensation beyond that to which he is entitled.  Executive
acknowledges that he has been advised by his counsel and hereby confirms that
his employment by the Company has been and is subject to California law.

          (c)  Executive represents and warrants that he has not filed or
caused to be filed any complaints, claim forms or charges against the Company,
any of its Affiliates or any of its or their officers, directors, agents,
employees or representatives with or before any local, state, federal or foreign
governmental agency or court or any arbitrator or other tribunal (including
without limitation, any Industrial Tribunal in England or Wales or English
Courts), and no such complaint or charge by or on behalf of the Executive is
currently pending.  Executive further agrees not to file any complaints, claim
forms, actions or charges of any nature against the Releasees relating to any
event or alleged event including, but not limited to, those arising from
Executive's employment with and/or separation from employment with the Company,
which occurred from the beginning of time until the execution of this Release.
Executive acknowledges that the Company has expressly relied on Executive's
representation and warranty in this section in providing compensation and
benefits under Article 2 of the Agreement in excess of what he would be entitled
to in the absence of the Agreement.  Accordingly, Executive acknowledges and
agrees that if he should file or pursue any such claim in violation of this
section, then the Company shall be entitled to injunctive relief against
Executive to prevent him from pursuing any such claim and/or to rescind the
Agreement and seek repayment of all such excess compensation and benefits.

          (d)  Nothing in this Release shall be construed or interpreted as a
release, acquittal, discharge or waiver of:

               (i)  Executive's rights to the compensation, reimbursements,
     benefits and perquisites described in Article 2 of the Agreement;

               (ii) Any of the Company's other obligations arising under the
     Agreement;

                                       2
<PAGE>

               (iii)  Any right which Executive now has or may have to claim
     indemnity (including advancement of expenses) for liabilities in connection
     with his lawful activities as a director, officer or employee of the
     Company and certain of its Affiliates, pursuant to the terms of any
     applicable statute, under any insurance policy, pursuant to the certificate
     or articles of incorporation, bylaws or similar charter documents of any
     Releasee, or pursuant to the terms of any applicable indemnification
     agreement to which Executive and the Company or any Affiliate of the
     Company are or have been parties; or

               (iv)   Claims arising under the Federal Age Discrimination in
     Employment Act.

          (e)  The provisions of Section 4.01 through 4.05, 4.07, 4.08, and
4.12 through 4.14 of the Agreement apply to this Release and are incorporated
herein by reference as though fully set forth hereat.

     IN WITNESS WHEREOF, the Executive has executed and delivered this Release
as of the day and year first above written.

                              /s/ S. Linn Williams
                              ______________________________________
                                S. Linn Williams

                                       3
<PAGE>

                      FORM OF AGE DISCRIMINATION RELEASE

          THIS AGE DISCRIMINATION RELEASE ("Release") is being delivered as of
February 5, 2000 by S. Linn Williams (the "Executive") to Edison Mission Energy,
a California corporation (the "Company"), pursuant to Section 2.07 of that
certain agreement related to Executive's employment with the Company being
executed concurrently herewith by Executive and the Company (the "Agreement").
All capitalized terms not otherwise defined herein have the same meaning as is
given to them in the Agreement.

          (a)  Executive, on behalf of himself and his descendants, ancestors,
heirs, executors, successors, assigns and administrators (collectively,
"Releasor"), hereby releases, remises, acquits and forever discharges, and
agrees to indemnify and hold harmless, (x) the Company, (y) each of its
Affiliates, and (z) each of its and/or their partners, predecessors, successors,
assigns, officers, directors, shareholders, representatives, insurers,
attorneys, employees and agents, past, present and future, in their respective
capacities as such (collectively, "Releasees"), from and against any and all
claims, demands, obligations, causes of action, debts, expenses, damages,
judgments, orders and liabilities of whatever kind or nature, in law, equity or
otherwise, whether now known or unknown, suspected or unsuspected, matured or
unmatured, and whether concealed or hidden (collectively, "Claims"), which
Executive now owns or holds or has at any time heretofore owned or held or had,
or may at any time own or hold or have, against the Releasees or any of them,
arising out of or in any way connected to the Federal Age Discrimination in
Employment Act.

          (b)  Except for those matters that are expressly excluded, the
release set forth herein is intended as a release of all Claims that the
Releasor may have against the Releasees or any of them, whether now known or
unknown, arising under the Federal Age Discrimination in Employment Act.  In
furtherance thereof, Executive expressly waives and relinquishes any right to
assert hereafter that any such claim, demand, obligation and/or cause of action
has, through ignorance, oversight, error or otherwise, been omitted from the
terms of this Agreement.  Executive makes this waiver with full knowledge of his
rights, after consulting with legal counsel, and with specific intent to release
both his known and unknown claims.  Accordingly, Releasor specifically waives
all rights and benefits afforded by California Civil Code Section 1542 and does
so understanding and acknowledging the significance of such specific waiver of
such statutory protection, which provides as follows:

          "A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS WHICH THE
          CREDITOR DOES NOT KNOW OR SUSPECT TO EXIST IN HIS FAVOR AT
          THE TIME OF EXECUTING THE RELEASE, WHICH IF KNOWN BY HIM
          MUST HAVE MATERIALLY AFFECTED HIS SETTLEMENT WITH THE
          DEBTOR."

                                       1
<PAGE>

Thus, notwithstanding the foregoing provisions of the California Civil Code, and
for the purposes of implementing a full and complete release and discharge of
the Releasees in respect of Claims arising under Federal Age Discrimination in
Employment Act, Executive expressly acknowledges that the foregoing release is
intended to include in its effect, without limitation, all Claims arising under
such Act that Executive does not know or suspect to exist in his favor at the
time of the execution hereof, and the foregoing release contemplates the
extinguishment of any such Claim or Claims except to the extent expressly set
forth herein.  Executive acknowledges that he has been advised by his counsel
and hereby confirms that his employment by the Company has been and is subject
to California law.

          (c)  Executive acknowledges that as of the date hereof, he will have
had at least twenty-one (21) days to consider the terms of the release set forth
herein and that he has been advised that he has a period of seven (7) days
following his execution of this Release in which to revoke the entire release
granted hereby and that any such revocation must be in writing, signed by
Executive, and hand delivered to the Chairman of the Board of the Company prior
to the expiration of such seven (7) day period.  Executive further acknowledges
that he has been advised to consult with an attorney and is receiving
compensation beyond that to which he is entitled.

          (d)  Executive represents and warrants that he has not filed or
caused to be filed any complaints or charges against the Company, any of its
Affiliates or any of its or their officers, directors, agents, employees or
representatives with or before any local, state or federal governmental agency
or court or any arbitrator or other tribunal arising under the Federal Age
Discrimination in Employment Act, and no such complaint or charge by or on
behalf of the Executive is currently pending.  Executive further agrees not to
file any such complaints, actions or charges of any nature against the Releasees
relating to any event or alleged event including, but not limited to, those
arising from Executive's employment with and/or separation from employment with
the Company, which occurred from the beginning of time until the execution of
this Release. Executive acknowledges that the Company has expressly relied on
Executive's representation and warranty in this section in providing
compensation and benefits under Article 2 of the Agreement in excess of what he
would be entitled to in the absence of the Agreement.  Accordingly, Executive
acknowledges and agrees that if he should file or pursue any such claim in
violation of this section, then the Company shall be entitled to injunctive
relief against Executive to prevent him from pursuing any such claim and/or to
rescind the Agreement and seek repayment of all such excess compensation and
benefits.

          (e)  Nothing in this Release shall be construed or interpreted as a
release, acquittal, discharge or waiver of:

                    (i)  Executive's rights to the compensation, reimbursements,
     benefits and perquisites described in Article 2 of the Agreement;

                    (ii) Any of the Company's other obligations arising under
     the Agreement; or

                                       2
<PAGE>

                    (iii)   Any right which Executive now has or may have to
     claim indemnity (including advancement of expenses) for liabilities in
     connection with his lawful activities as a director, officer or employee of
     the Company and certain of its Affiliates, pursuant to the terms of any
     applicable statute, under any insurance policy, pursuant to the certificate
     or articles of incorporation, bylaws or similar charter documents of any
     Releasee, or pursuant to the terms of any applicable indemnification
     agreement to which Executive and the Company or any Affiliate of the
     Company are or have been parties.

          (f)  The provisions of Section 4.01 through 4.05, 4.07, 5.08, and
4.12 through 4.14 of the Agreement apply to this Release and are incorporated
herein by reference as though fully set forth hereat.

     IN WITNESS WHEREOF, the Executive has executed and delivered this Release
as of the day and year first above written.

                              /s/ S. Linn Williams
                              ______________________________________
                                    S. Linn Williams

                                       3

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