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                                                                    Exhibit 10.5

                                     FORM OF
                    MORTGAGE, ASSIGNMENT OF LEASES AND RENTS,
                      SECURITY AGREEMENT AND FIXTURE FILING

Recording requested by:
COMMONWEALTH LAND TITLE
INSURANCE COMPANY

This Mortgage was prepared by and
when recorded should be mailed to:

Bruce T. Gardner, Esq.
Milbank, Tweed, Hadley & McCloy LLP
1 Chase Manhattan Plaza
New York, New York  10005

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                    Space above this line for recorder's use

                    MORTGAGE, ASSIGNMENT OF LEASES AND RENTS,
                      SECURITY AGREEMENT AND FIXTURE FILING

                       KNOW ALL PERSONS BY THESE PRESENTS:

            THIS MORTGAGE, ASSIGNMENT OF LEASES AND RENTS, SECURITY AGREEMENT
AND FIXTURE FILING (this "MORTGAGE") is made as of October 18, 2001 by NORTHEAST
GENERATION COMPANY, a corporation duly organized and validly existing under the
laws of the State of Connecticut and having an office at 107 Selden Street,
Berlin, Connecticut 06037 (the "MORTGAGOR"), in favor of THE BANK OF NEW YORK,
not in its individual capacity, but solely as trustee for the benefit of the
Holders, a banking corporation duly organized and validly existing under the
laws of the State of New York and having an office at 101 Barclay Street, Floor
21W, New York, New York 10286 (the "MORTGAGEE").

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                              W I T N E S S E T H:

            WHEREAS, the Mortgagor and the Mortgagee are parties to an Indenture
dated as of October 18, 2001 (the "ORIGINAL INDENTURE"), supplemented by a First
Supplemental Indenture dated as of October 18, 2001 (the "FIRST SUPPLEMENTAL
INDENTURE") (the Original Indenture, as supplemented by the First Supplemental
Indenture, and as further modified and supplemented and in effect from time to
time, being herein called the "INDENTURE"; except as otherwise herein expressly
provided, all terms defined in the Indenture being used herein as defined
therein) pursuant to which Indenture and one or more Series Supplemental
Indentures the Mortgagor has authorized the issuance of bonds, debentures, notes
and other evidences of indebtedness, to be issued in one or more series;

            WHEREAS, pursuant to the First Supplemental Indenture, the issuance
of series of bonds (i) designated 4.998% Series A Senior Secured Bonds Due 2005,
in the aggregate principal amount that at any time may not exceed $120,000,000
(the "SERIES A BONDS") and (ii) 8.812% Series B Senior Secured Bonds Due 2026,
in the aggregate principal amount that any time may not exceed $320,000,000 (the
"SERIES B BONDS"; collectively, the Series A Bonds and the Series B Bonds, being
known herein as the "BONDS") has been authorized;

            WHEREAS, the Series A Bonds were issued on October 18, 2001 and
mature on October 15, 2005; and the Series B Bonds were issued on October 18,
2001 and mature on October 15, 2026;

            WHEREAS, it is a condition to the issuance of the Bonds that the
Mortgagor execute and deliver this Mortgage;

            NOW, THEREFORE, for good and valuable consideration, the receipt of
which is hereby acknowledged, and FOR THE PURPOSE OF SECURING the following
(collectively, the "OBLIGATIONS"):

      (a) the payment of all indebtedness, liabilities and other obligations of
the Mortgagor (including, but not limited to, all such obligations in respect of
principal, premiums, interest, fees, reimbursement obligations, penalties,
indemnities, legal expenses, costs and other expenses, whether due after
acceleration or otherwise) to the Secured Parties (as defined in the Security
Agreement) (of whatsoever nature and howsoever evidenced) under or pursuant to
the Collateral Documents and the other Financing Documents, in each case, direct
or indirect, primary or secondary, fixed or contingent, now or hereafter arising
out of or relating to any such agreement or document (this shall include any
interest accruing after the date of any filing by the Mortgagor of any petition
in bankruptcy or the commencing of any bankruptcy, insolvency or similar
proceedings with respect to the Issuer, whether or not such interest is
allowable as a claim in any such proceeding);

      (b) the performance and payment of the covenants, agreements and
obligations hereinafter contained and all other monies secured hereby,
including, without limitation, any and all sums expended by the Mortgagee
pursuant to Section 1.11 hereof, together with interest thereon; and

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      (c)  the payment of all other obligations, including any indebtedness,
of the Mortgagor to the Mortgagee or the Holders under the Loan Instruments
(as hereinafter defined);

the Mortgagor hereby irrevocably grants, bargains, sells, releases, conveys,
warrants, assigns, transfers, mortgages, pledges, sets over and confirms unto
the Mortgagee, WITH MORTGAGE COVENANTS, under and subject to the terms and
conditions hereinafter set forth, all estate, right, title and interest of the
Mortgagor in and to the land and premises (collectively, the "PROPERTY")
described in Schedule I;

            TOGETHER WITH all interests, estates or other claims, both in law
and in equity, that the Mortgagor now has or may hereafter acquire in (a) the
Property, (b) all easements, rights of way and rights used in connection
therewith or as a means of access thereto and (c) all tenements, hereditaments
and appurtenances in any manner belonging, relating or appertaining thereto (all
of the foregoing interests, estates and other claims being hereinafter
collectively called "EASEMENTS AND RIGHTS OF WAY"); and

            TOGETHER WITH all estate, right, title and interest of the
Mortgagor, now owned or hereafter acquired, in and to any land lying within the
right of way of any streets, open or proposed, adjoining the Property, and any
and all sidewalks, alleys and strips and gores of land adjacent to or used in
connection therewith (all of the foregoing estate, right, title and interest
being hereinafter called "ADJACENT RIGHTS"); and

            TOGETHER WITH all estate, right, title and interest of the
Mortgagor, now owned or hereafter acquired, in and to any and all buildings and
other improvements now or hereafter located on the Property and all building
materials, building equipment and fixtures of every kind and nature located on
the Property or, attached to, contained in or used in any such buildings and
other improvements, and all appurtenances and additions thereto and betterments,
substitutions and replacements thereof (all of the foregoing estate, right,
title and interest being hereinafter collectively called "IMPROVEMENTS"); and

            TOGETHER WITH all estate, right, title and interest of the Mortgagor
in and to all such tangible property now owned or hereafter acquired by the
Mortgagor (including all turbines, control machinery and other equipment related
to the generation of hydroelectric power and all other machinery, apparatus,
equipment, fittings and articles of personal property) and now or hereafter
located on or at or attached to the Property that an interest in such tangible
property arises under applicable real estate law, and any and all products and
accessions to any such property that may exist at any time (all of the foregoing
estate, right, title and interest, and products and accessions, being
hereinafter called "FIXTURES"); and

            TOGETHER WITH all estate, right, title and interest of the Mortgagor
in and to all rights, royalties and profits in connection with all minerals, oil
and gas and other hydrocarbon substances on or in the Property, development
rights or credits, air rights, water, water rights (whether riparian,
appropriative, or otherwise and whether or not appurtenant) and water stock (all
of the foregoing estate, right, title and interest being hereinafter
collectively called "MINERAL AND RELATED RIGHTS"); and

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            TOGETHER WITH all leases, subleases, lettings and licenses of, and
all other contracts, bonds and agreements affecting, the Property and
Improvements or any part thereof now or hereafter entered into, and all
amendments, modifications, supplements, additions, extensions and renewals
thereof (all of the foregoing hereinafter collectively called the "LEASES"), and
all reversion or reversions and remainder or remainders of the Property and
Improvements (all of the foregoing hereinafter collectively called the
"REVERSIONS"), and all rents, revenues, proceeds, issues, profits, royalties,
income and other benefits now or hereafter derived from the Property,
Improvements and Fixtures, subject to the right, power and authority hereinafter
given to the Mortgagor to collect and apply the same (all of the foregoing being
hereinafter collectively called "RENTS"; and together with the Leases and the
Reversions being hereinafter collectively called "LEASES AND RENTS"); and

            TOGETHER WITH all estate, right, title and interest and other claim
or demand that the Mortgagor now has or may hereafter acquire with respect to
any damage to the Property, Improvements or Fixtures and any and all proceeds of
insurance in effect with respect to Improvements or Fixtures, and any and all
awards made for the taking by eminent domain, or by any proceeding or purchase
in lieu thereof, of the Property, Improvements or Fixtures, including without
limitation any awards resulting from a change of grade of streets or as the
result of any other damage to the Property, Improvements or Fixtures for which
compensation shall be given by any governmental authority (all of the foregoing
estate, right, title and interest and other claims or demand, and any such
proceeds or awards, being hereinafter collectively called "DAMAGE RIGHTS"); and

            TOGETHER WITH all the estate, right, title, interest and other claim
of the Mortgagor with respect to any parking facilities located other than on
the Property and used or intended to be used in connection with the operation,
ownership or use of the Property, any and all replacements and substitutions for
the same, and any other parking rights, easements, covenants and other interests
in parking facilities acquired by the Mortgagor for the use of tenants or
occupants of Improvements (all of the foregoing estate, right, title, interest
and other claim being hereinafter collectively called "PARKING RIGHTS"); and

            TOGETHER WITH all estate, right, title and interest of the Mortgagor
in respect of any and all air rights, development rights, zoning rights or other
similar rights or interests that benefit or are appurtenant to the Property or
Improvements (all of the foregoing estate, right, title and interest being
hereinafter collectively called "AIR AND DEVELOPMENT RIGHTS");

            All of the foregoing Easements and Rights of Way, Adjacent Rights,
Improvements, Fixtures, Mineral and Related Rights, Leases and Rents, Damage
Rights, Parking Rights and Air and Development Rights being sometimes
hereinafter referred to collectively as the "ANCILLARY RIGHTS AND PROPERTIES"
and the Property and Ancillary Rights and Properties being sometimes hereinafter
referred to collectively as the "MORTGAGE ESTATE";

            TO HAVE AND TO HOLD the Mortgage Estate with all privileges and
appurtenances thereunto belonging, to the Mortgagee and its successors and
assigns, forever, upon the terms and conditions and for the uses hereinafter set
forth;

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            PROVIDED ALWAYS, that if the Obligations shall be paid in full, and
the Mortgagor shall abide by and comply with each and every covenant contained
herein and in the Indenture and in any and all Series Supplemental Indentures,
then this Mortgage and the estate hereby granted shall cease, terminate and
become void.

            This Mortgage, the other Financing Documents and any other
instrument given to evidence or further secure the payment and performance of
any Obligation are sometimes hereinafter collectively referred to as the "LOAN
INSTRUMENTS".

            This Mortgage is also upon the STATUTORY CONDITIONS (as well as the
terms, covenants, conditions and other provisions herein set forth), for any
breach of which (or default under which) the Mortgagee shall have the STATUTORY
POWER OF SALE.

            TO PROTECT THE SECURITY OF THIS MORTGAGE, THE MORTGAGOR HEREBY
COVENANTS AND AGREES AS FOLLOWS:

                                    ARTICLE 1

              PARTICULAR COVENANTS AND AGREEMENTS OF THE MORTGAGOR

            Section 1.01. PAYMENT OF SECURED OBLIGATIONS. The Mortgagor shall
pay when due all Obligations as provided in the Loan Instruments.

            Section 1.02. TITLE, ETC. The Mortgagor represents and warrants that
it has good and marketable title in and to the Property and the related
Ancillary Rights and Properties, in each case subject to no mortgage, deed of
trust, lien, pledge, charge, security interest or other encumbrance or adverse
claim of any nature, except those listed as exceptions to title in the title
policy insuring the estate created by this Mortgage and other Permitted Liens.

            The Mortgagor represents and warrants that it has the full power and
lawful authority to grant, bargain, sell, release, convey, warrant, assign,
transfer, mortgage, pledge, set over and confirm unto the Mortgagee the Mortgage
Estate as hereinabove provided and warrants that it will forever defend the
title to the Mortgage Estate and the validity and priority of the lien or estate
hereof against the claims and demands of all persons whomsoever, subject as
aforesaid.

            Section 1.03. FURTHER ASSURANCES; FILING; REFILING; ETC.

            (a) FURTHER INSTRUMENTS. The Mortgagor shall execute, acknowledge
and deliver, from time to time, such further instruments as the Mortgagee may
require to accomplish the purposes of this Mortgage.

            (b) FILING AND REFILING. The Mortgagor, immediately upon the
execution and delivery of this Mortgage, and thereafter from time to time, shall
cause this Mortgage, any security agreement or mortgage supplemental hereto and
each instrument of further assurance to be filed, registered or recorded and
refiled, re-registered or re-recorded in such manner and in such places as

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may be required by any present or future law in order to publish notice of and
perfect the lien or estate of this Mortgage upon the Mortgage Estate.

            (c) FEES AND EXPENSES. The Mortgagor shall pay all filing,
registration and recording fees, all refiling, re-registration and re-recording
fees, and all expenses incident to the execution, filing, recording and
acknowledgment of this Mortgage, any security agreement or mortgage supplemental
hereto and any instrument of further assurance, and all Federal, State, county
and municipal stamp taxes and other taxes, duties, imposts, assessments and
charges arising out of or in connection with the execution, delivery, filing and
recording of this Mortgage or any of the other Loan Instruments, any security
agreement or mortgage supplemental hereto or any instruments of further
assurance.

            Section 1.04. LIENS. Except as otherwise provided in Section 5.9 of
the Original Indenture, but without limiting the obligations of the Mortgagor
under Section 1.07 of this Mortgage, the Mortgagor shall not create or suffer to
be created any mortgage, deed of trust, lien, security interest, charge or
encumbrance upon the Mortgage Estate prior to, on a parity with, or subordinate
to the lien of this Mortgage. Subject to the provisions of Section 5.9 of the
Original Indenture and Section 1.07 of this Mortgage, the Mortgagor shall pay
and promptly discharge at the Mortgagor's cost and expense, any such mortgages,
deeds of trust, liens, security interests, charges or encumbrances upon the
Mortgage Estate or any portion thereof or interest therein.

            Section 1.05. INSURANCE. The Mortgagor shall purchase and maintain
in full force and effect policies of insurance in such form and (subject to the
limitations imposed by the laws of the State in which the Mortgage Estate is
located) amounts, covering such risks, satisfying such requirements, and issued
by such companies, in each case in the manner and to the extent required
pursuant to Section 5.5 of the Original Indenture and shall cause each of such
policies to name the Mortgagee as loss payee (to the extent covering risk of
loss or damage to tangible property) and as an additional named insured as its
interests may appear (to the extent covering any other risk) in the manner and
to the extent specified in said Section 5.5 of the Original Indenture. The
Mortgagor expressly assumes all risk of loss, including a decrease in the use,
enjoyment or value of the Mortgage Estate from any Peril (as defined below),
whether or not insurable or insured against.

            Each policy referred to in this Section 1.05 shall provide that it
will not be canceled or reduced, or allowed to lapse without renewal, except
after not less than 30 days' notice to the Mortgagee and shall also provide that
the interests of the Mortgagee shall not be invalidated by any act or negligence
of the Mortgagor or any Person having an interest in the Mortgage Estate nor by
occupancy or use of any of the Mortgage Estate for purposes more hazardous than
permitted by such policy nor by any foreclosure or other proceedings relating to
the Mortgage Estate. The Mortgagor will advise the Mortgagee promptly of any
policy cancellation, reduction or amendment.

            On or before the date hereof, the Mortgagor will deliver to the
Mortgagee certificates of insurance satisfactory to the Mortgagee evidencing the
existence of all insurance required to be maintained by the Mortgagor hereunder
setting forth the respective coverages, limits of liability, carrier, policy
number and period of coverage and showing that such insurance will remain in
effect through December 31, 2001, subject only to the payment of premiums as
they become due (and attaching original copies of any policies with respect to
casualty insurance).

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Thereafter, on each November 15 in each year (commencing with November 15, 2001)
the Mortgagor will deliver to the Mortgagee certificates of insurance evidencing
that all insurance required to be maintained by the Mortgagor hereunder will be
in effect through the December 31 of the calendar year following the calendar
year of the current November 15, subject only to the payment of premiums as they
become due. In addition, the Mortgagor will not modify any of the provisions of
any policy with respect to casualty insurance without delivering the original
copy of the endorsement reflecting such modification to the Mortgagee; such
policy (as so modified) must be in compliance with the provisions of this
Section 1.05 and Section 5.5 of the Original Indenture. The Mortgagor will not
obtain or carry separate insurance concurrent in form or contributing in the
event of loss with that required by this Section 1.05 unless the Mortgagee is
the named insured thereunder, with loss payable as provided herein. The
Mortgagor will immediately notify the Mortgagee whenever any such separate
insurance is obtained and shall deliver to the Mortgagee the certificates
evidencing the same.

            Without limiting the obligations of the Mortgagor under the
foregoing provisions of this Section 1.05, in the event the Mortgagor shall fail
to maintain in full force and effect insurance as required by the foregoing
provisions of this Section 1.05, then the Mortgagee may, but shall have no
obligation so to do, procure insurance covering the interests of the Mortgagee
in such amounts and against such risks as the Mortgagee shall deem appropriate
and the Mortgagor shall reimburse the Mortgagee in respect of any premiums paid
by the Mortgagee in respect thereof.

            For purposes hereof, the term "Peril" means, collectively, fire,
lightning, flood, windstorm, hail, earthquake, explosion, riot and civil
commotion, vandalism and malicious mischief, damage from aircraft, vehicles and
smoke and all other perils covered by the "all risk" endorsement then in use in
the jurisdictions where the Mortgage Estate is located.

            Nothing in this Section 1.05 shall be deemed to limit in any respect
the obligations under Section 5.5 of the Original Indenture and this Section
1.05 shall be subject to Section 5.5 of the Original Indenture.

            Section 1.06. EVENTS OF LOSS.

            (a) EVENT OF LOSS. Should the Mortgage Estate or any part thereof be
taken or damaged by reason of any Event of Loss or should the Mortgagor receive
any notice or other information regarding any such proceeding, the Mortgagor
shall give prompt notice thereof to the Mortgagee. The Mortgagee shall be
entitled to receive all Loss Proceeds, and all such Loss Proceeds, together with
all rights and causes of action relating thereto or arising out of any such
Event of Loss, are hereby assigned to the Mortgagee. The Mortgagor shall execute
such further assignments of the Loss Proceeds as the Mortgagee may from time to
time reasonably require.

            (b) RESTORATION ACCOUNT. Following the occurrence of any Event of
Loss involving the Mortgage Estate or any part thereof, but which Event of Loss
or a discontinuance of operations at the Property as a result of such Event of
Loss would not reasonably be expected to have a Material Adverse Effect, the
Mortgagor shall be entitled to retain Loss Proceeds. Notwithstanding the
foregoing, all Loss Proceeds in excess of $10,000,000 shall be applied as
provided in Article 6 of the Original Indenture. Following the occurrence of any
other Event of Loss involving the

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Mortgage Estate or any part thereof, if the discontinuance of operations at the
Property as a result of such Event of loss would be reasonably expected to have
a Material Adverse Effect, the Mortgagor shall cause all Loss Proceeds to be
paid to the Mortgagee as additional collateral security hereunder subject to the
lien of this Mortgage. Upon receipt by the Mortgagee of any such proceeds
(including, without limitation, any Loss Proceeds payable directly to the
Mortgagee as loss payee under the respective policies maintained pursuant to
Section 1.05), the Mortgagee shall deposit the same into a cash collateral
account (the "RESTORATION ACCOUNT") in the name and under the control of the
Mortgagee. The balance from time to time in the Restoration Account shall
constitute part of the Mortgage Estate hereunder and shall not constitute
payment of the Obligations until applied as hereinafter provided.

            (c) APPLICATION OF LOSS PROCEEDS. Following the occurrence of any
Event of Loss involving the Mortgage Estate or any part thereof, but which Event
of Loss or a discontinuance of operations at the Property as a result of such
Event of Loss would not reasonably be expected to have a Material Adverse
Effect, the Mortgagor shall be entitled to retain Loss Proceeds. Notwithstanding
the foregoing, all Loss Proceeds in excess of $10,000,000 shall be applied as
provided in Article 6 of the Original Indenture. Following the occurrence of any
other Event of Loss involving the Mortgage Estate or any part thereof, if the
discontinuance of operations at the Property as a result of such Event of Loss
would reasonably be expected to have a Material Adverse Effect, the Mortgagor
may, at its option, to be exercised by delivery of notice to the Mortgagee
within 30 days of such Event of Loss, elect to either apply any Loss Proceeds
received as a result of such event: (i) to the restoration and repair of the
Affected Property; or (ii) to the redemption of the Bonds and prepayment of
other indebtedness constituting the Obligations hereunder in the manner and to
the extent specified in Article 6 of the Original Indenture. Failure of the
Mortgagor to make such an election within 30 days from the date of the
respective Event of Loss shall automatically constitute an election to so apply
the respective Loss Proceeds to the redemption or prepayment as aforesaid of the
indebtedness secured hereby.

            If the Mortgagor elects to so restore and repair the Affected
Property, any amounts (and any earnings thereon) held in the Restoration Account
shall be applied by the Mortgagee to the restoration and repair of the Affected
Property and advanced to the Mortgagor in periodic installments upon compliance
by the Mortgagor with such reasonable conditions to disbursement as may be
imposed by the Mortgagee, including, but not limited to, reasonable retention
amounts and receipt of lien releases.

            Anything in this Section 1.06 to the contrary notwithstanding, the
Mortgagee shall have no obligation to release any amounts held in the
Restoration Account to the Mortgagor for restoration or repair of the Affected
Property if an Event of Default under the Indenture (a "DEFAULT"), or any event
that with lapse of time or with notice and lapse of time would become a Default,
has occurred and is continuing. If a Default, or any event that with lapse of
time or with notice and lapse of time would become a Default, has occurred and
is continuing, the Mortgagee may, in its sole discretion, apply any Loss
Proceeds either: (A) to the payment of the Obligations as provided in Section
4.02(a) or (B) to the restoration or repair of the Affected Property; PROVIDED,
HOWEVER, that if the Mortgagee requires such proceeds to be applied to the
restoration or repair of the Affected Property, the Mortgagee will advance to
the Mortgagor in accordance with the foregoing provisions of this Section
1.06(c), the Loss Proceeds, less such amounts that may have

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been expended by the Mortgagee to effectuate any cure of such Default. All Loss
Proceeds remaining after the payment for restoration and repair of the Affected
Property pursuant to this Section 1.06(c) shall be released to the Mortgagor.

            (d) FORECLOSURE, ETC. In the event of foreclosure of the lien of
this Mortgage or other transfer of title or assignment of the Mortgage Estate in
extinguishment, in whole or in part, of the Obligations, all right, title and
interest of the Mortgagor in and to all policies of casualty insurance covering
all or any part of the Mortgage Estate shall inure to the benefit of and pass to
the successors in interest to the Mortgagor or the purchaser or grantee of the
Mortgage Estate or any part thereof.

            Section 1.07. IMPOSITIONS.

            (a) PAYMENT OF IMPOSITIONS. Subject to the provisions of Section 5.6
of the Original Indenture, the Mortgagor shall pay or cause to be paid, before
any fine, penalty, interest or cost attaches thereto, all taxes, assessments,
water and sewer rates, utility charges and all other governmental or
nongovernmental charges or levies now or hereafter assessed or levied against
any part of the Mortgage Estate (including, without limitation, nongovernmental
levies or assessments such as maintenance charges, owner association dues or
charges or fees, levies or charges resulting from covenants, conditions and
restrictions affecting the Mortgage Estate) or upon the lien or estate of the
Mortgagee therein (collectively, "IMPOSITIONS"), as well as all claims for
labor, materials or supplies that, if unpaid, might by law become a prior lien
thereon, and within 10 days after request by the Mortgagee will exhibit receipts
showing payment of any of the foregoing; PROVIDED, HOWEVER, that if by law any
such Imposition may be paid in installments (whether or not interest shall
accrue on the unpaid balance thereof), the Mortgagor may pay the same in
installments (together with accrued interest on the unpaid balance thereof) as
the same respectively become due, before any fine, penalty or cost attaches
thereto.

            (b) RIGHT TO CONTEST IMPOSITIONS. To the extent not inconsistent
with the Indenture, the Mortgagor at its expense may contest by appropriate
legal, administrative or other proceedings conducted in good faith and with due
diligence, the amount or validity or application, in whole or in part, of any
Imposition or lien therefor or any claims of mechanics, materialmen, suppliers
or vendors or lien thereof.

            Section 1.08. INTENTIONALLY DELETED.

            Section 1.09. COMPLIANCE WITH LAWS.

            (a) REPRESENTATION. The Mortgagor represents and warrants that it is
not in violation or default of any statute, laws, rule, regulation, judgment,
order or decree applicable to the Mortgagor of any court, regulatory body,
administrative agency, governmental body, arbitrator or other authority having
jurisdiction over the Mortgagor or any of its properties, as applicable, except
for such violations or defaults as would not have a material adverse effect on
the condition (financial or otherwise), prospects, earnings, business or
properties of the Mortgagor.

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            (b) COMPLIANCE WITH ENVIRONMENTAL LAWS. The Mortgagor represents and
warrants that, except as set forth in or contemplated in the "Final Memorandum"
(as defined in the Purchase Agreement dated as of October 12, 2001 by the
Mortgagor to Salomon Smith Barney Inc., as representative of the Initial
Purchasers), (exclusive of any amendment or supplement thereto), the Mortgagor
(i) is in compliance with any and all applicable foreign, Federal, State and
local laws and regulations relating to the protection of human health and
safety, the environment or hazardous or toxic substances or wastes, pollutants
or contaminants ("ENVIRONMENTAL LAWS"); (ii) has received and is in compliance
with all permits, license or other approvals required of it under applicable
Environmental Laws to conduct its business; and (iii) has not received notice of
any actual or potential liability for the investigation or remediation of any
disposal or release of hazardous or toxic substances or wastes, pollutants or
contaminants, except where such non-compliance with Environmental Laws, failure
to receive required permits, licenses or other approvals, or liability would
not, individually or in the aggregate, have a material adverse effect on the
condition (financial or otherwise), prospects, earnings, business or properties
of the Mortgagor, whether or not arising from transactions in the ordinary
course of business; except as set forth in the Final Memorandum, the Company has
not been named as a "potentially responsible party" under the Comprehensive
Environmental Response, Compensation, and Liability Act of 1980, as amended.

            (c) NOTIFICATION OF NOTICES AND ORDERS. The Mortgagor shall notify
the Mortgagee promptly of any notice or order that the Mortgagor receives from
any agency or instrumentality of the Federal, or any State or local, government
with respect to the Mortgagor's compliance with any laws or regulations referred
to in Section 1.09 (including Environmental Laws) and promptly take any and all
actions necessary to bring its operations at the Property into compliance with
such laws or regulations, to the extent required under the applicable provisions
of the Indenture.

            (d) RIGHT TO CURE NON-COMPLIANCE WITH ENVIRONMENTAL LAWS. The
Mortgagee, at its election and in its sole discretion may, without obligation to
do so, and upon notice to the Mortgagor (except in an emergency), cure any
failure on the part of the Mortgagor to comply with the provisions of this
Section 1.09. Any partial exercise by the Mortgagee of the remedies hereinafter
set forth, or any partial undertaking on the part of the Mortgagee to cure the
Mortgagor's failure to comply with the provisions of this Section 1.09, shall
not obligate the Mortgagee to complete the actions taken or require the
Mortgagee to expend further sums to cure the Mortgagor's noncompliance; nor
shall the exercise of any such remedies operate to place upon the Mortgagee any
responsibility for the operation, control, care, management or repair of the
Property or make the Mortgagee the "operator" of the Property within the meaning
of any Environmental Laws. Any amount paid or costs incurred by the Mortgagee as
a result of the exercise by the Mortgagee of any of the rights hereinabove set
forth, together with interest thereon at the highest default rate provided in
any Outstanding series of Bonds, shall be immediately due and payable by the
Mortgagor to the Mortgagee, and until paid shall be added to and become a part
of the Obligations secured hereby; and the Mortgagee, by making any such payment
or incurring any such costs, shall be subrogated to any rights of the Mortgagor
to seek reimbursement from any third parties, including, without limitation, a
predecessor-in-interest to the Mortgagor's title who may be a "responsible
party" or otherwise liable under any Environmental Law in connection with any
such Release or threat of Release of Hazardous Materials.

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            (e) ENVIRONMENTAL SURVEY AND RISK ASSESSMENT. If after the
occurrence and during the continuance of any Default that relates to an
Environmental Law the Mortgagee desires that an environmental survey and risk
assessment with respect to the Property be prepared, the Mortgagor agrees to
supply such a survey and risk assessment by an independent engineering firm
selected by the Mortgagor and satisfactory to the Mortgagee, in form and detail
satisfactory to the Mortgagee (including test borings of the ground and chemical
analyses of air, water and waste discharges), estimating current liabilities and
assessing potential sources of future liabilities of the Mortgagor or any other
owner or operator of the Property under applicable Environmental Laws.

            (f) INDEMNITY. Without limiting the provisions of Section 9.5 of the
Original Indenture, the Mortgagor shall indemnify and hold the Mortgagee
harmless from and against any and all losses, liabilities, claims, damages or
expenses (including any lien filed against the Property or any part of the
Mortgage Estate in favor of any governmental entity, but excluding any loss,
liability, claim, damage or expense incurred by reason of the gross negligence
or willful misconduct of the Mortgagee) arising under any Environmental Law as a
result of the past, present or future operations of the Mortgagor (or any
predecessor-in-interest to the Mortgagor), or the past, present or future
condition of the Property, or any Release or threatened Release of any Hazardous
Materials from the Property, excluding any such Release or threatened Release
that shall occur during any period when the Mortgagee shall be in possession of
the Property following the exercise by the Mortgagee of any of its rights and
remedies hereunder, but including any such Release or threatened Release
occurring during such period that is a continuation of conditions previously in
existence, or of practices employed by the Mortgagor, at the Property.

            Section 1.10. LIMITATIONS OF USE. The Mortgagor shall not initiate,
join in or consent to any change in any private restrictive covenant, zoning
ordinance or other public or private restrictions limiting or defining the uses
that may be made of the Property and Improvements or any part thereof that would
have a Material Adverse Effect on the value of the Property or Improvements. The
Mortgagor shall comply in all material respects with the provisions of all
material leases, licenses, agreements and private covenants, conditions and
restrictions that at any time are applicable to the Mortgage Estate.

            Section 1.11. ACTIONS TO PROTECT MORTGAGE ESTATE. If the Mortgagor
shall fail to (a) effect the insurance required by Section 1.05 or (b) make the
payments required by Section 1.07 or (c) perform or observe any of its other
covenants or agreements hereunder, the Mortgagee may, without obligation to do
so, and upon notice to the Mortgagor (except in an emergency) effect or pay the
same. To the maximum extent permitted by law, all sums, including reasonable
attorneys' fees and disbursements, so expended or expended to sustain the lien
or estate of this Mortgage or its priority, or to protect or enforce any of the
rights hereunder, or to recover any of the Obligations, shall be a lien on the
Mortgage Estate, shall be deemed to be added to the Obligations secured hereby,
and shall be paid by the Mortgagor within 10 days after demand therefor,
together with interest thereon at the highest default rate provided in any
Outstanding series of Bonds.

            Section 1.12. LOSS PROCEEDS. Any Loss Proceeds, shall, as provided
in Section 1.06, be held by the Mortgagee in the Restoration Account and any
interest or other amounts, if any, actually earned on the balance held by the
Mortgagee in the Restoration Account shall be credited to the Restoration
Account, for the benefit of the Mortgagor. So long as no Default shall

                                       11
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have occurred and be continuing, at the written request of the Mortgagor, any
monies held in the Restoration Account shall be invested or reinvested in such
Permitted Investments as the Mortgagor shall from time to time specify. Such
Permitted Investments shall be held by the Mortgagee pursuant to this Section
1.12; but, upon request of the Mortgagor, the Mortgagee shall sell all or any
designated part of the same and the proceeds of such sale shall be held by the
Mortgagee in the Restoration Account subject to the provisions hereof in the
same manner as the cash used by it to purchase the Permitted Investments so
sold. The Mortgagor agrees to pay the Mortgagee, on demand, amounts equal to any
loss resulting from any investment or reinvestment pursuant to this Section 1.12
(and any such payments made by the Mortgagor shall be deposited by the Mortgagee
into the Restoration Account), it being understood that the Mortgagee shall not
be liable or responsible for any such loss.

            Notwithstanding anything herein or at law or in equity to the
contrary, none of the Loss Proceeds paid to the Mortgagee as herein provided,
and none of the other amounts from time to time held in the Restoration Account,
shall be deemed trust funds, and the Mortgagee shall be entitled to advance
amounts from time to time held in the Restoration Account to the Mortgagor, or
to apply the same to the redemption of the Bonds or prepayment of other
indebtedness constituting the Obligations hereunder, as provided in Section
1.06(c), all subject to the applicable provisions of the Indenture.

                                    ARTICLE 2

                 ASSIGNMENT OF LEASES, RENTS, ISSUES AND PROFITS

            Section 2.01. ASSIGNMENT OF LEASES, RENTS, ISSUES AND PROFITS. The
Mortgagor hereby assigns and transfers to the Mortgagee, FOR THE PURPOSE OF
SECURING the Obligations, all of its right, title and interest in and to the
Leases and all rights of the Mortgagor thereunder and all Rents and all deposits
held as security under the Leases, and shall, upon demand, deliver to the
Mortgagee an executed counterpart of each Lease. The Mortgagor irrevocably
appoints the Mortgagee its true and lawful attorney-in-fact, at its option at
any time and from time to time following the occurrence and during the
continuance of a Default, to demand, receive and enforce payment, to give
receipts, releases and satisfactions, and to sue, in the name of the Mortgagor
or otherwise, for Rents and apply the same to the Obligations as provided in
Section 4.02(a); PROVIDED, HOWEVER, that the Mortgagor shall have the right to
collect Rents at any time prior to the occurrence of a Default (but not more
than one month in advance, except in the case of security deposits).

            The Mortgagor shall, as and when requested from time to time by the
Mortgagee, execute, acknowledge and deliver to the Mortgagee, in form reasonably
acceptable to the Mortgagee, one or more general or specific assignments of the
lessor's interest under any Lease. The Mortgagor shall, on demand, pay to the
Mortgagee, or reimburse the Mortgagee for the payment of any reasonable costs or
expenses incurred in connection with the preparation or recording of any such
assignment.

                                       12
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            Section 2.02. COLLECTION UPON DEFAULT. To the extent permitted by
law, upon the occurrence of any Default, the right of the Mortgagor to collect
and receive Rents shall be automatically revoked and the Mortgagee may, at any
time without notice, either in person, by agent or by a receiver appointed by a
court, and without regard to the adequacy of any security for the Obligations or
the solvency of the Mortgagor, enter upon and take possession of the Property,
Improvements and Fixtures or any part thereof, in its own name, sue for or
otherwise collect Rents including those past due and unpaid, and, subject to the
applicable provisions of the Indenture, apply the same, less costs and expenses
of operation and collection, including attorneys' fees and disbursements, to the
payment of the Obligations as provided in paragraph (a) of Section 4.02, and in
such order as the Mortgagee may determine. Upon the occurrence of any Default
and during the continuance thereof, the Mortgagor shall promptly pay to the
Mortgagee (i) all rent prepayments and security or other deposits paid to the
Mortgagor pursuant to any Lease assigned hereunder and (ii) all charges for
services or facilities or for escalation that were paid pursuant to any such
Lease to the extent allocable to any period from and after the occurrence of
such Default. The collection of Rents or the entering upon and taking possession
of the Property, Improvements or Fixtures or any part thereof, or the
application thereof as aforesaid, shall not cure or waive any Default or notice
thereof or invalidate any act done in response to such Default or pursuant to
notice thereof.

            Nothing contained in this Section 2.02 shall be construed to bind
the Mortgagee to the performance of any of the covenants, conditions or
provisions contained in any Lease or otherwise to impose any obligation on the
Mortgagee prior to accepting receipt of such Rent (including liability under the
covenant of quiet enjoyment contained in any Lease or under any applicable law
in the event that any tenant shall have been joined as a party defendant in any
action to foreclose this Mortgage and shall have been barred and foreclosed
thereby of all right, title and interest and equity of redemption in the
Mortgage Estate), except that the Mortgagee shall be accountable for any money
actually received pursuant to such assignment. The Mortgagor hereby further
grants to the Mortgagee the right, after the occurrence of a Default, to notify
the tenant under any Lease of the assignment thereof and to demand that the
tenant under any Lease pay all amounts due thereunder directly to the Mortgagee
or its designee.

            Section 2.03. LEASES. The Mortgagor shall (i) perform or cause to be
performed all of the lessor's obligations under any Lease, (ii) enforce
(including the termination and cancellation of any Lease, so long as the same is
a bona fide enforcement of the Mortgagor's right as lessor under any such Lease
and such termination or cancellation, either by itself or in the aggregate with
other terminations and cancellations, shall not diminish or impair the security
of this Mortgage) the performance by the lessee under its respective Lease of
all of said lessee's obligations thereunder, and (iii) give the Mortgagee prompt
notice and a copy of any notice of default, event of default, termination or
cancellation sent or received by the Mortgagor in respect of any Lease if such
notice of default, event of default, termination or cancellation would
reasonably be expected to diminish or impair the security of this Mortgage;
unless failure to comply with (i), (ii) or (iii) above would not reasonably be
expected to have a Material Adverse Effect.

                                       13
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                                    ARTICLE 3

                               SECURITY AGREEMENT

            Section 3.01. CREATION OF SECURITY INTEREST. The Mortgagor hereby
grants to the Mortgagee a security interest in Fixtures for the purpose of
securing the Obligations. The Mortgagee shall have, in addition to all rights
and remedies provided herein and in the other Loan Instruments, all the rights
and remedies of a secured party under the Uniform Commercial Code of the State
in which the applicable portion of Fixtures is located.

            Section 3.02. WARRANTIES, REPRESENTATIONS AND COVENANTS. The
Mortgagor hereby warrants, represents and covenants that: (a) all covenants and
obligations of the Mortgagor contained herein relating to the Mortgage Estate
shall be deemed to apply to Fixtures whether or not expressly referred to herein
and (b) this Mortgage constitutes a security agreement and "fixture filing" as
those terms are used in the applicable Uniform Commercial Code. Information
relative to the security interest created hereby may be obtained by application
to the Mortgagee (secured party) at the mailing address set forth on Page 1
hereof. The mailing address of the Mortgagor is set forth on Page 1 hereof.

                                    ARTICLE 4

                               DEFAULTS; REMEDIES

            Section 4.01. DEFAULT REMEDIES.

            (a) REMEDIES GENERALLY. Following the acceleration of each Series of
Bonds then Outstanding, this Mortgage may, to the maximum extent permitted by
law, be enforced, and, subject to the Indenture, the Mortgagee may exercise any
right, power or remedy permitted to it hereunder or under any of the other Loan
Instruments or by law, and, without limiting the generality of the foregoing,
the Mortgagee may, personally or by its agents, to the maximum extent permitted
by law:

            (i) enter into and take possession of the Mortgage Estate or any
      part thereof, exclude the Mortgagor and all persons claiming under the
      Mortgagor whose claims are junior to this Mortgage, wholly or partly
      therefrom, and use, operate, manage and control the same either in the
      name of the Mortgagor or otherwise as the Mortgagee shall deem best, and
      upon such entry, from time to time at the expense of the Mortgagor and the
      Mortgage Estate, make all such repairs, replacements, alterations,
      additions or improvements to the Mortgage Estate or any part thereof as
      the Mortgagee may deem proper and, whether or not the Mortgagee has so
      entered and taken possession of the Mortgage Estate or any part thereof,
      collect and receive all Rents and apply the same to the payment of all
      expenses that the Mortgagee may be authorized to make under this Mortgage,
      the remainder to be applied to the payment of the Obligations in
      accordance with the Indenture; if the Mortgagee demands or attempts to
      take possession of the Mortgage Estate or any portion thereof in the
      exercise of any rights hereunder, the Mortgagor shall promptly turn over
      and deliver complete possession thereof to the Mortgagee; and

                                       14
<Page>

            (ii) personally or by agents, with or without entry, if the
      Mortgagee shall deem it advisable:

                  (x) sell, pursuant to the STATUTORY POWER OF SALE herein
            granted to Mortgagee, the Mortgage Estate at a sale or sales held at
            such place or places and time or times and upon such notice and
            otherwise in such manner as may be required by law, or, in the
            absence of any such requirement, as the Mortgagee may deem
            appropriate, and from time to time adjourn any such sale by
            announcement at the time and place specified for such sale or for
            such adjourned sale without further notice, except such as may be
            required by law;

                  (y) proceed to protect and enforce its rights under this
            Mortgage, by suit for specific performance of any covenant contained
            herein or in the Loan Instruments or in aid of the execution of any
            power granted herein or in the Loan Instruments, or for the
            foreclosure of this Mortgage (as a mortgage or otherwise) and the
            sale of the Mortgage Estate under the judgment or decree of a court
            of competent jurisdiction, or for the enforcement of any other right
            as the Mortgagee shall deem most effectual for such purpose;
            PROVIDED, that in the event of a sale, by foreclosure or otherwise,
            of less than all of the Mortgage Estate, this Mortgage shall
            continue as a lien on, and security interest in, the remaining
            portion of the Mortgage Estate; or

                  (z) exercise any or all of the remedies available to a secured
            party under the applicable Uniform Commercial Code, including,
            without limitation:

                        (1) either personally or by means of a court appointed
                  receiver, take possession of all or any Fixtures and exclude
                  therefrom the Mortgagor and all persons claiming under the
                  Mortgagor, and thereafter hold, store, use, operate, manage,
                  maintain and control, make repairs, replacements, alterations,
                  additions and improvements to and exercise all rights and
                  powers of the Mortgagor in respect of Fixtures or any part
                  thereof; if the Mortgagee demands or attempts to take
                  possession of Fixtures in the exercise of any rights
                  hereunder, the Mortgagor shall promptly turn over and deliver
                  complete possession thereof to the Mortgagee;

                        (2) without notice to or demand upon the Mortgagor, make
                  such payments and do such acts as the Mortgagee may deem
                  necessary to protect its security interest in Fixtures,
                  including, without limitation, paying, purchasing, contesting
                  or compromising any encumbrance that is prior to or superior
                  to the security interest granted hereunder, and in exercising
                  any such powers or authority paying all expenses incurred in
                  connection therewith;

                        (3) require the Mortgagor to assemble Fixtures or any
                  portion thereof, at a place designated by the Mortgagee and
                  reasonably convenient to both parties, and promptly to deliver
                  Fixtures to the Mortgagee, or an agent or representative
                  designated by it; the Mortgagee, and its agents and

                                       15
<Page>

                  representatives, shall have the right to enter upon the
                  premises and property of the Mortgagor to exercise the
                  Mortgagee's rights hereunder; and

                        (4) sell, lease or otherwise dispose of Fixtures, with
                  or without having Fixtures at the place of sale, and upon such
                  terms and in such manner as the Mortgagee may determine (and
                  the Mortgagee may be a purchaser at any such sale).

            (b) APPOINTMENT OF RECEIVER. Following the acceleration of each
Series of Bonds then Outstanding, the Mortgagee, to the maximum extent permitted
by law, shall be entitled, as a matter of right, to the appointment of a
receiver of the Mortgage Estate, without notice or demand, and without regard to
the adequacy of the security for the Obligations or the solvency of the
Mortgagor. The Mortgagor hereby irrevocably consents to such appointment and
waives notice of any application therefor. Any such receiver or receivers shall
have all the usual powers and duties of receivers in like or similar cases and
all the powers and duties of the Mortgagee in case of entry and shall continue
as such and exercise all such powers until the date of confirmation of sale of
the Mortgage Estate, unless such receivership is sooner terminated.

            (c) RENTS. Following the acceleration of each Series of Bonds then
Outstanding, the Mortgagor shall, to the maximum extent permitted by law, pay
monthly in advance to the Mortgagee, or to any receiver appointed at the request
of the Mortgagee to collect Rents, the fair and reasonable rental value for the
use and occupancy of the Property, Improvements and Fixtures or of such part
thereof as may be in the possession of the Mortgagor. Upon default in the
payment thereof, the Mortgagor shall vacate and surrender possession of the
Property, Improvements and Fixtures to the Mortgagee or such receiver, and upon
a failure so to do may be evicted by summary proceedings.

            (d) SALE. In any sale under any provision of this Mortgage or
pursuant to any judgment or decree of court, the Mortgage Estate, to the maximum
extent permitted by law, may be sold in one or more parcels or as an entirety
and in such order as the Mortgagee may elect, pursuant to the STATUTORY POWER OF
SALE, without regard to the right of the Mortgagor or any person claiming under
the Mortgagor to the marshaling of assets. The purchaser at any such sale shall
take title to the Mortgage Estate or the part thereof so sold free and
discharged of the estate of the Mortgagor therein, the purchaser being hereby
discharged from all liability to see to the application of the purchase money.
Any person, including the Mortgagee, may purchase at any such sale. Upon the
completion of any such sale by virtue of this Section 4.01 the Mortgagee shall
execute and deliver to the purchaser an appropriate instrument that shall
effectively transfer all of the Mortgagor's estate, right, title, interest,
property, claim and demand in and to the Mortgage Estate or portion thereof so
sold, but without any covenant or warranty, express or implied. The Mortgagee is
hereby irrevocably appointed the attorney-in-fact of the Mortgagor in its name
and stead to make all appropriate transfers and deliveries of the Mortgage
Estate or any portions thereof so sold and, for that purpose, the Mortgagee may
execute all appropriate instruments of transfer, and may substitute one or more
persons with like power, the Mortgagor hereby ratifying and confirming all that
said attorneys or such substitute or substitutes shall lawfully do by virtue
hereof. Nevertheless, the Mortgagor shall ratify and confirm, or cause to be
ratified and confirmed, any such sale or sales by executing and delivering, or
by causing to be executed and delivered, to the

                                       16
<Page>

Mortgagee or to such purchaser or purchasers all such instruments as may be
advisable, in the judgment of the Mortgagee, for such purpose, and as may be
designated in such request. Any sale or sales made under or by virtue of this
Mortgage, to the extent not prohibited by law, shall operate to divest all the
estate, right, title, interest, property, claim and demand whatsoever, whether
at law or in equity, of the Mortgagor in, to and under the Mortgage Estate, or
any portions thereof so sold, and shall be a perpetual bar both at law and in
equity against the Mortgagor and against any and all persons claiming or who may
claim the same, or any part thereof, by, through or under the Mortgagor. The
powers and agency herein granted are coupled with an interest and are
irrevocable.

            (e) POSSESSION OF LOAN INSTRUMENTS NOT NECESSARY. All rights of
action under the Loan Instruments and this Mortgage may be enforced by the
Mortgagee without the possession of the Loan Instruments and without the
production thereof at any trial or other proceeding relative thereto.

            Section 4.02. APPLICATION OF PROCEEDS.

            (a) APPLICATION OF PROCEEDS GENERALLY. Subject to the applicable
provisions of the Indenture, the proceeds of any sale made either under the
power of sale hereby given or under a judgment, order or decree made in any
action to foreclose or to enforce this Mortgage, or of any monies held by the
Mortgagee hereunder shall, to the maximum extent permitted by law, be applied:

            (i) first to the payment of all costs and expenses of such sale,
      including the Mortgagee's reasonable attorneys' fees and disbursements;

            (ii) then to the payment of all charges, expenses and advances
      incurred or made by the Mortgagee in order to protect the lien and estate
      of this Mortgage or the security afforded hereby;

            (iii) then to the payment in full of the Obligations, ratably in
      accordance with the respective amounts then due and owing or as the
      Mortgagee may otherwise agree;

and after payment in full of all Obligations any surplus remaining shall be paid
to the Mortgagor or to whomsoever may be lawfully entitled to receive the same.

            (b) LIABILITY FOR DEFICIENCIES. No sale or other disposition of all
or any part of the Mortgage Estate pursuant to Section 4.01 shall be deemed to
relieve the Mortgagor of its obligations under any Loan Instrument except to the
extent the proceeds thereof are applied to the payment of such obligations. If
the proceeds of sale, collection or other realization of or upon the Mortgage
Estate are insufficient to cover the costs and expenses of such realization and
the payment in full of the Obligations, the Mortgagor shall remain liable for
any deficiency, to the extent permitted by applicable law.

            Section 4.03. RIGHT TO SUE. The Mortgagee shall have the right from
time to time to sue for any sums required to be paid by the Mortgagor under the
terms of this Mortgage as the same become due, without regard to whether or not
the Obligations shall be, or have become, due

                                       17
<Page>

and without prejudice to the right of the Mortgagee thereafter to bring any
action or proceeding of foreclosure or any other action upon the occurrence of
any Default existing at the time such earlier action was commenced.

            Section 4.04. POWERS OF THE MORTGAGEE. The Mortgagee may at any time
or from time to time (with the agreement of the Mortgagor) alter or modify this
Mortgage in any way, or waive any of the terms, covenants or conditions hereof
or thereof, in whole or in part, and may release any portion of the Mortgage
Estate or any other security, and grant such extensions and indulgences in
relation to the Obligations, or release any person liable therefor as the
Mortgagee may determine without the consent of any junior lienor or
encumbrancer, without any obligation to give notice of any kind thereto, without
in any manner affecting the priority of the lien and estate of this Mortgage on
or in any part of the Mortgage Estate, and without affecting the liability of
any other person liable for any of the Obligations.

            Section 4.05. REMEDIES CUMULATIVE.

            (a) REMEDIES CUMULATIVE. No right or remedy herein conferred upon or
reserved to the Mortgagee is intended to be exclusive of any other right or
remedy, and each and every right and remedy shall be cumulative and in addition
to any other right or remedy under this Mortgage, or under applicable law,
whether now or hereafter existing; the failure of the Mortgagee to insist at any
time upon the strict observance or performance of any of the provisions of this
Mortgage or to exercise any right or remedy provided for herein or under
applicable law, shall not impair any such right or remedy nor be construed as a
waiver or relinquishment thereof.

            (b) OTHER SECURITY. The Mortgagee shall be entitled to enforce
payment and performance of any of the obligations of the Mortgagor and to
exercise all rights and powers under this Mortgage or under any Loan Instrument
or any laws now or hereafter in force, notwithstanding that some or all of the
Obligations may now or hereafter be otherwise secured, whether by mortgage, deed
of trust, pledge, lien, assignment or otherwise; neither the acceptance of this
Mortgage nor its enforcement, whether by court action or pursuant to the power
of sale or other powers herein contained, shall prejudice or in any manner
affect the Mortgagee's right to realize upon or enforce any other security now
or hereafter held by the Mortgagee, it being stipulated that the Mortgagee shall
be entitled to enforce this Mortgage and any other security now or hereafter
held by the Mortgagee in such order and manner as the Mortgagee, in its sole
discretion, may determine; every power or remedy given by the Indenture, this
Mortgage or any of the other Loan Instruments to the Mortgagee, or to which the
Mortgagee is otherwise entitled, may be exercised, concurrently or
independently, from time to time and as often as may be deemed expedient by the
Mortgagee, and the Mortgagee may pursue inconsistent remedies.

            Section 4.06. WAIVER OF STAY, EXTENSION, MORATORIUM LAWS; EQUITY OF
REDEMPTION. To the maximum extent permitted by law, the Mortgagor shall not at
any time insist upon, or plead, or in any manner whatever claim or take any
benefit or advantage of any applicable present or future stay, extension or
moratorium law, that may affect observance or performance of the provisions of
this Mortgage; nor claim, take or insist upon any benefit or advantage of any
present or future law providing for the valuation or appraisal of the Mortgage
Estate or any portion thereof prior to any sale or sales thereof that may be
made under or by virtue of Section 4.01; and the

                                       18
<Page>

Mortgagor, to the extent that it lawfully may, hereby waives all benefit or
advantage of any such law or laws. The Mortgagor for itself and all who may
claim under it, hereby waives, to the maximum extent permitted by applicable
law, any and all rights and equities of redemption from sale under the power of
sale created hereunder or from sale under any order or decree of foreclosure of
this Mortgage and (if a Default shall have occurred) all notice or notices of
seizure, and all right to have the Mortgage Estate marshaled upon any
foreclosure hereof. The Mortgagee shall not be obligated to pursue or exhaust
its rights or remedies as against any other part of the Mortgage Estate and the
Mortgagor hereby waives any right or claim of right to have the Mortgagee
proceed in any particular order.

                                    ARTICLE 5

                                  MISCELLANEOUS

            Section 5.01. RELEASE BY THE MORTGAGEE. Upon the payment in full of
all Obligations and the termination of all other Loan Instruments, the Mortgagee
shall discharge this Mortgage. In addition, the Mortgage Estate or portions
thereof or interests therein may be released in accordance with the procedures
set forth in Article 15 of the Indenture.

            Section 5.02. NOTICES. Except as otherwise required by the law of
the State where the Mortgage Estate is located, all notices, demands, consents,
requests or other communications (collectively, "NOTICES") that are permitted or
required to be given by any party to the other hereunder shall be in writing and
given in the manner specified in the Indenture.

            Section 5.03. AMENDMENTS; WAIVERS; ETC. This Mortgage cannot be
modified, changed or discharged except by an agreement in writing, duly
acknowledged in form for recording, signed by the Mortgagor and the Mortgagee
and in accordance with Section 5.11 of the Original Indenture.

            Section 5.04. SUCCESSORS AND ASSIGNS. This Mortgage applies to,
inures to the benefit of and binds the Mortgagor and the Mortgagee and their
respective successors and assigns and shall run with the Property.

            Section 5.05. CAPTIONS. The captions or headings at the beginning of
Articles, Sections and paragraphs hereof are for convenience of reference and
are not a part of this Mortgage.

            Section 5.06. SEVERABILITY. If any term or provision of this
Mortgage or the application thereof to any person or circumstance shall to any
extent be invalid or unenforceable, the remainder of this Mortgage, or the
application of such term or provision to persons or circumstances other than
those as to which it is invalid or unenforceable, shall not be affected thereby,
and each term and provision of this Mortgage shall be valid and enforceable to
the maximum extent permitted by law. If any portion of the Obligations shall for
any reason not be secured by a valid and enforceable lien upon any part of the
Mortgage Estate, then any payments made in respect of the Obligations (whether
voluntary or under foreclosure or other enforcement

                                       19
<Page>

action or procedure or otherwise) shall, for purposes of this Mortgage (except
to the extent otherwise required by applicable law) be deemed to be made (i)
first, in respect of the portion of the Obligations not secured by the lien of
this Mortgage, (ii) second, in respect of the portion of the Obligations secured
by the lien of this Mortgage, but which lien is on less than all of the Mortgage
Estate, and (iii) last, to the portion of the Obligations secured by the lien of
this Mortgage, and which lien is on all of the Mortgage Estate.

            Section 5.07. GOVERNING LAW. This Mortgage shall be governed by and
construed in accordance with the internal law of the State where the Mortgage
Estate is located.

                                       20
<Page>

            IN WITNESS WHEREOF, this Mortgage has been duly executed by the
Mortgagor under seal as of the day and year first above written.

Signed and acknowledged             NORTHEAST GENERATION COMPANY
in the presence of:

                                    By:
------------------------------         ----------------------------------
Print Name:                            Name:   William J. Nadeau
                                       Title:  Vice President

------------------------------
Print Name:

                                    By:
------------------------------         ----------------------------------
Print Name:                            Name:   Frank P. Sabatino
                                       Title:  Vice President

------------------------------
Print Name:

                         [followed by notarization page]

<Page>

                                   SCHEDULE I

                             DESCRIPTION OF PROPERTY

[Legal descriptions of the properties will be provided by Northeast Generation
Company to the SEC upon request.]

[Locations: The Mortgage, Assignment of Leases and Rents, Security Agreement and
Fixture Filing dated as of October 18, 2001, by Northeast Generation Company in
favor of The Bank of New York, as trustee, was recorded (i) in the Land Records
of the Towns of Bridgewater, Brookfield, Canaan, Colebrook, Danbury, Franklin,
Kent, Lisbon, Litchfield, Monroe, New Fairfield, New Milford, Newtown, Norwich,
Oxford, Preston, Roxbury, Salisbury, Scotland, Sherman, Southbury, Sprague,
Winchester, and Windham, Connecticut, (ii) with the Franklin County,
Massachusetts, Registry of Deeds, (iii) with the Cheshire County, New Hampshire,
Registry of Deeds, and (iv) with the Land Records of the Town of Vernon,
Vermont.]<Page>

                                                                    EXHIBIT 10.6

       NORTHEAST GENERATION COMPANY--NORTHEAST GENERATION SERVICES COMPANY
                       MANAGEMENT AND OPERATION AGREEMENT

MANAGEMENT AND OPERATION AGREEMENT ("Agreement") made and entered into as of the
1st day of February, 2000, by and between NORTHEAST GENERATION COMPANY, a
Connecticut corporation with its principal place of business in Berlin,
Connecticut ("NGC"), and NORTHEAST GENERATION SERVICES COMPANY, a Connecticut
corporation with its principal place of business in Rocky Hill, Connecticut
("NGS"). NGC and NGS shall be referred to individually as the "Party" and
collectively as the "Parties".

WHEREAS, NGC and NGS are wholly-owned subsidiaries of NU Enterprises, Inc.,
which in turn is wholly-owned by Northeast Utilities;

WHEREAS, NGC has acquired or will acquire through a public auction process
certain electric generation facilities listed on Exhibit 1 hereto (the
"Facilities") from The Connecticut Light and Power Company ("CL&P") and Western
Massachusetts Electric Company ("WMECO"), which NGC intends to own and operate
as exempt wholesale generators ("EWGs);

WHEREAS, NGC desires to have NGS manage and operate the Facilities on behalf of
and as agent for NGC on the terms and conditions stated in this Agreement and
NGS has agreed to do so; and

WHEREAS, pursuant to the NU Guaranty (as defined herein), Northeast Utilities
has guaranteed the obligations of NGS.

NOW, THEREFORE, in consideration of the premises and the mutual agreements
herein, it is agreed as follows:

                            SECTION 1 - DEFINED TERMS

1.1 DEFINITIONS. For the purposes of this Agreement, the following terms shall
have the following meanings:

                                       1
<Page>

"Affiliate" means, with respect to any entity, any other entity that, directly
or indirectly, through one or more intermediaries, controls, or is controlled
by, or is under common control with, such entity. For this purpose, "control"
means the direct or indirect ownership of fifty percent (50%) or more of the
outstanding capital stock or other equity interests having ordinary voting
power.

"Ancillary Services" means 10-Minute Spinning Reserve ("TMSR"), 10-Minute
Non-Spinning Reserve ("TMNSR"), 30-Minute Operating Reserves ("TMOR"), and
Automatic Generation Control ("AGC"), all having the meanings as defined in the
NEPOOL Agreement.

"Bankrupt" means with respect to a Party, such Party (i) files a petition or
otherwise commences a proceeding under any bankruptcy, insolvency,
reorganization or similar law, or has any such petition filed or commenced
against it, (ii) makes an assignment or any general arrangement (other than an
assignment undertaken in connection with a financing) for the benefit of
creditors, (iii) otherwise becomes bankrupt or insolvent (however evidenced),
(iv) has a liquidator, administrator, receiver, trustee, conservator or similar
official appointed with respect to it or any substantial portion of its property
or assets, or (v) is generally unable to pay its debts as they fall due.

"Business Day" means any day except Saturday, Sunday, a Federal Reserve Bank
holiday or a holiday according to the North American Electric Reliability
Council or any successor organization thereto; and a Business Day shall open at
8:00 a.m. and close at 5:00 p.m. Eastern Standard (or Daylight) time.

"Buyer" means the entity or entities (which may or may not be Affiliates of
NGC), which NGC designates and contracts, in each case from time to time, to
sell or broker Products from the Facilities.

"Credit Agreement" means the Credit Agreement dated as of January __, 2000 among
NGC, Citibank, N.A. as Administrative Agent and Collateral Agent and the
Lenders party thereto.

"Delivery Point" means the point(s) at which the Energy of the Facilities will
be delivered by NGS and received by NGC or its Designee. For the purposes of
this Agreement, the Delivery Point shall be Ownership Demarcation Points
described in the Asset Demarcation Agreements by and between NGC and CL&P, and
by and between NGC and WMECO, each dated as of _________, 2000.

                                       2
<Page>

"Designee" means the corporate entity (which may or may not be an Affiliate)
which NGC may designate in writing to NGS from time to time to exercise certain
specified rights and duties of NGC under this Agreement.

"Energy" means electric energy in the form of merchantable electricity expressed
in megawatt hours and shall be three-phase, 60-cycle alternating current as
delivered to the Delivery Points.

"FERC" means the Federal Energy Regulatory Commission or any successor
government agency.

"Fuel Delivery Point" means the inlet flange of the jet fuel tank at the Tunnel
Jet Facility site.

"Good Industry Practice" means any of the practices, methods, and acts engaged
in or approved by a significant portion of the electric generation facility
operation industry during the relevant time period, or any of the practices,
methods, and acts which, in the exercise of reasonable judgment in light of the
facts known or that should have been known at the time a decision was made,
could have been reasonably expected to accomplish the desired result at a
reasonable cost consistent with full compliance with applicable laws and
regulations, good practices, reliability, safety, environmental protection,
sound business practices and expedition. Good Industry Practice is not limited
to a single, optimum practice, method or act to the exclusion of others, but
rather is intended to include all acceptable practices, methods or acts
generally accepted in the industry. With respect to the Facilities, Good
Industry Practice includes but is not limited to taking reasonable steps to
ensure that:

         (1) Adequate materials, resources and supplies are available to meet
         each Facility's needs.

         (2) Sufficient operating personnel are available and are adequately
         experienced and trained to operate the Facilities properly and
         efficiently and are capable of responding to emergency conditions.

         (3) Preventative, routine and non-routine maintenance and repairs are
         performed on a basis that ensures reliable long-term and safe
         operation, and are performed by knowledgeable, trained and experience
         personnel utilizing proper equipment and tools.

                                       3
<Page>

         (4) Appropriate monitoring and testing is done to ensure equipment is
         functioning as designed and to provide assurance that equipment will
         function properly under both normal and emergency conditions.

         (5) Equipment is not operated in a reckless manner, or in a manner
         unsafe to workers or the general public or without regard to defined
         limitations such as operating voltage, current, frequency, rotational
         speed, synchronization and control system limits.

"Interconnection Agreement" means the Interconnection Agreements by and between
NGC and CL&P and, by and between NGC and WMECO, each dated as of July 2, 1999.

"Interest Rate" means, for any date, the per annum rate of interest equal to the
lesser of (a) prime lending rate as may from time to time be published in the
WALL STREET JOURNAL under "Money Rates"; (or if not published on such day on the
most recent preceding day when published) and (b) the maximum rate permitted by
applicable law.

"ISO-NE" means the New England Independent System Operator, or its successor.

"Lead Participant" shall have the meaning stated in the NEPOOL Market Rules.

"Lender" means any financial institution, other entity or individual or any duly
authorized agent thereof providing financing or refinancing to NGC for any or
all of the Facilities, whether on a senior or subordinated basis.

"NEPOOL" means the New England Power Pool or its successor in interest.

"NEPOOL Agreement" means the Restated NEPOOL Agreement, dated as of December 1,
1996 as amended from time to time.

"NEPOOL Standards" means all Criteria, Rules, Standards, NEPOOL Automated
Billing System Procedures, NEPOOL Operating Procedures and NEPOOL Market Rules
issued or adopted by NEPOOL, ISO-NE and their satellite agencies, or their
successors, as amended from time to time.

                                       4
<Page>

"NU Guaranty" shall mean the guaranty by Northeast Utilities of NGS's
obligations hereunder in the form contained in Appendix A.

"Operable Capability" shall have the meaning as stated in the NEPOOL Agreement.

"Participant" shall have the meaning stated in the NEPOOL Agreement.

"Product" means the various electrical products, services, and capabilities
(including, but not limited to, for example, energy-related products,
capacity-related products, and generation ancillary services related products)
recognized as market products that can be produced or offered by the Facilities.
For the purposes of this Agreement, at this time, Product shall include, but not
be limited to the Seasonal Claimed Capability, Operable Capability, Energy and
Ancillary Services bought and sold pursuant to the Purchase Agreement or in any
other purchase agreement entered into by NGC and a Buyer.

"Purchase Agreement" shall mean the Power Purchase and Sales Agreement dated as
of ___, 1999, between Select Energy, Inc. and NGC, as the same may be amended,
supplemented and otherwise modified from time to time.

"Schedule" or "Scheduling" means the acts of NGC, its Designee and/or their
designated representatives, if applicable, of notifying, requesting and
confirming to each other the quantity and type of Product to be provided from
each Facility on any given day or days.

"Seasonal Claimed Capability" of the Facilities shall have the meaning as set
forth in the NEPOOL Standards.

"Tunnel Jet Facility" means the approximately 20 MW internal combustion unit
located at the Tunnel hydroelectric station in Preston, Connecticut, and
including the gas turbine enclosure building, a gas turbine control building and
an above ground fuel oil storage tank.

                                       5
<Page>

                        SECTION 2 - TERM OF THE AGREEMENT

2.1 TERM. The term of this Agreement ("Term") shall commence on the date that
NGC first obtains ownership of any or all of the Facilities, shall remain in
effect for an initial period of six (6) years (the "Initial Period"), and shall
continue thereafter on a year-to-year basis from the end of the Initial Period
unless and until terminated by either Party by (i) one (1) year advance written
notice by that Party to the other Party, in the case of the Initial Period,
given prior to the commencement of the fifth (5th) year of the Initial Period,
and in the case of any other year, given prior to the commencement of such year,
or (ii) upon a sale by NGC of a particular Facility, this Agreement shall
terminate with respect to such Facility, in which case the fees payable by NGC
to NGS shall be adjusted accordingly to reflect such sales in accordance with
Exhibit 6, and NGC shall also pay NGS's reasonable demobilization costs.
Provided, however that the Parties' obligations under this Agreement with
respect to a particular Facility shall not commence until the date NGC obtains
full ownership of that Facility and the payment described in Section 4 shall be
prorated accordingly. In the event that a termination notice is given by one
Party to the other Party, the Parties shall reasonably cooperate to ensure a
smooth transition to a new manager and operator without adversely affecting the
physical condition, operations or costs of the Facilities.

2.2 MATERIAL CHANGES. In the event that any regulatory agency with jurisdiction
over this Agreement makes substantial changes or modifications to any of the
terms or conditions contained herein or a change in any statute, regulation or
regulatory order affecting the operation or maintenance of any Facility in a
manner that would cause material economic harm to either Party, the Parties
shall cooperate to make such changes as will keep the Parties on substantially
the same economic terms as contained herein. If the Parties cannot reach
agreement, either Party may terminate this Agreement, without further
obligation, upon sixty (60) days prior written notice. In the event of such
termination, NGC shall pay NGS its actual incremental demobilization costs, not
to exceed ten (10) percent of the average annual fixed fee described in Section
4.2.

2.3 TERMINATION RIGHTS. Termination by either Party in accordance with the terms
of this Agreement shall not affect or excuse the performance of either Party
under any provision of this Agreement that by its terms survives any such
termination, including, but not limited to billings, and indemnification and
liability.

                          SECTION 3 - SCOPE OF SERVICES

                                       6
<Page>

3.1 GENERAL SCOPE OF SERVICES. For the Term of this Agreement, NGS will manage,
operate, and maintain the Facilities and provide the administrative services
required for the Facilities, on behalf of and as agent for NGC as more fully
described in Exhibit 2 hereto (the "Services") and any applicable operation and
maintenance requirements of the Purchase Agreement. The Services shall be
provided in accordance with Good Industry Practice and NEPOOL Standards. NGS's
obligations to NGC shall pertain solely to the Services provided under this
Agreement, and NGS shall not be deemed to be assuming any of the risks of
ownership of the Facilities.

3.2 SPECIFIC PURCHASE AND SALE AGREEMENT OBLIGATIONS. NGS recognizes that NGC in
its Purchase and Sales Agreements with CL&P and WMECO, each dated July 2, 1999
(the "PSAs") has agreed to certain continuing obligations to CL&P and WMECO. NGS
agrees to comply with, and assist NGC in complying with the obligations listed
on Exhibit 3 hereto in the course of providing the Services to NGC with respect
to the Facilities.

3.3 EXCLUDED COSTS. Exhibit 4 lists cost items ("Excluded Costs") which NGS will
not be responsible for paying or bearing, unless otherwise agreed by the
Parties. If NGS pays any such Excluded Cost as part of its Services, it shall
invoice NGC, which shall reimburse NGS within thirty (30) days of its receipt of
such invoice. In addition, NGS will not pay or bear the cost of (a) any
unanticipated major repairs requiring single occurrence cost of greater than
$100,000, or (b) any Approved Capital Expenditures set forth in Exhibit 5 hereto
or other capital expenditures.

3.4 ADDITIONAL CAPITAL EXPENDITURES. NGC, or its Designee with NGC's consent,
shall have the right to request NGS to incur additional capital expenditures
beyond the total capital expenditures included in the Approved Capital
Expenditures in Exhibit 5 for a particular year, as long as NGC pays the
associated capital cost.

3.5 ADDITIONAL OPERATION AND MAINTENANCE COSTS. NGC, or its Designee with NGC's
consent, shall have the right to request NGS to make changes in its operation or
maintenance practices for the Facilities or to undertake additional activities
not required by Section 3 of this Agreement or by Good Industry Practice. NGS
shall make such change, or undertake such additional activities, provided that
NGC fully compensates NGS for any incremental costs it incurs and that such
change is consistent with Good Industry Practice. Additionally, if NGC fails to
fund any Approved Capital Expenditures and such failure results in additional
operating and maintenance costs to NGS, NGC shall fully compensate NGS for any
resulting incremental costs NGS incurs.

                                       7
<Page>

3.6 MAINTENANCE SCHEDULES. The annual fixed fee and Approved Capital
Expenditures were developed based upon the Assumed Maintenance Schedule
contained in Exhibit 7 hereto and the scope of Services to be provided. Any
deviations from such schedule or scope are subject to the approval of NGC . The
Parties shall mutually agree to adjustments to the annual fixed fee to reflect
the economic impacts of any such change in schedule or scope. NGS shall use all
reasonable efforts to not schedule maintenance during peak production periods,
except with the consent of NGC or as required by Good Industry Practice.

                              SECTION 4 - PAYMENTS

4.1 PAYMENTS. The payments from NGC to NGS for the Services NGS provides under
Section 3 of this Agreement shall consist of two (2) components: an annual fixed
fee as described in Section 4.2 to be paid in monthly installments, and an
annual incentive payment or credit as described in Section 4.3.

4.2 ANNUAL FIXED FEE. NGC shall pay NGS the annual fixed fee stated on Exhibit 6
applicable for each Facility owned by NGC for each calendar year for the
Services NGS provides under Section 3 of this Agreement. The fixed fee for a
calendar year shall be paid by NGC in twelve (12) equal annual monthly
installments on the first Business Day of each month for that month, or in
amounts predetermined and agreed upon by the Parties based on scheduled
maintenance activity. The Annual Fee shall be readjusted based upon the formula
described in Exhibit 6 upon (i) the sale of a Facility by NGC, (ii) upon the
suspension of any portion or all of the Services at any Facility, or (iii) the
termination of Services at a particular Facility due to the closure by NGC of
such Facility. Except as otherwise specifically stated in this agreement, the
fixed fee will cover all Services rendered by NGS under this Agreement. No later
than eighteen (18) months prior to the end of the Term, the Parties will
negotiate in good faith the annual fixed fee(s) for any extension of the Term.

4.3 ANNUAL INCENTIVE PAYMENT OR CREDIT. In addition to the annual fixed fee, NGC
shall pay NGS an annual incentive payment for each calendar year of up to ten
(10) percent, but not exceeding $2.5 million, of the applicable year's fixed
fee, or receive an incentive credit from NGS of up to five (5) percent of the
applicable year's fixed fee, but not exceeding $1.25 million, based on the
formula described in Exhibit 6 or using such other incentive payment formula
agreed to by the Parties in writing. Any incentive payment shall be made within
sixty (60) days after the end of the calendar year. Any incentive credit shall
be applied as a reduction to the annual fixed fee within sixty (60) days

                                       8
<Page>

after the end of a calendar year. NGS will calculate the appropriate incentive
payment or credit as an invoice charge or credit to NGC.

4.4  BILLING AND PAYMENT.

4.4.1 All payments required under this Agreement shall be made no later than the
date required by this Agreement, or if no date is specifically required, within
thirty (30) days of receipt by the Party being charged of an invoice or bill
from the other Party. Each Party will make payments by wire transfer, or by
other mutually agreeable method(s), to the account designated by the other
Party. Any amounts, both principal and interest, not paid by the due date will
be deemed delinquent and will accrue interest at the Interest Rate, such
interest to be calculated from the due date to the date the unpaid amount is
paid in full.

4.5 DISPUTES AND ADJUSTMENTS OF INVOICES. NGC may, in good faith, challenge the
correctness of any invoice rendered by NGS under the Agreement, and NGS may
adjust any invoice rendered for any arithmetic, computational or other error,
within twelve (12) months of the date the invoice was rendered. In the event NGC
challenges an invoice or portion thereof, or any other claim or adjustment
arising hereunder, is challenged, or NGS adjusts any invoice, payment of the
invoice in full shall be made when due by NGC, with payment of the disputed
amount only to be made to an escrow account pending resolution of such good
faith dispute, and NGC shall give notice of the objection as to the disputed
portion to NGS at the same time. Any billing challenge or billing adjustment
shall be in writing and shall state the specific basis for the challenge or
adjustment. If it is determined that an adjustment to the invoice is
appropriate, then such payment shall be made within two (2) Business Days of
such determination along with interest accrued on such amount in the escrow
account from the due date until the date paid and any excess amount deposited in
the escrow account by NGC shall be returned to NGC together with any accrued
interest. An invoice rendered under the Agreement shall be binding on NGC and
NGS unless challenged by NGC or adjusted by NGS in accordance with this
subsection within twelve (12) months after the invoice is rendered.

               SECTION 5 - COORDINATION WITH NGC, BUYER AND ISO-NE

5.1 CAPACITY AUDITS. NGC may request and NGS shall perform capacity audits of
the Facilities at least annually and NGS shall submit the result of such audits
to ISO-NE in accordance with NEPOOL procedures in effect from time to time. In
the event that any capacity audit results in a change in the capacity rating of
a Facility, NGS will promptly advise NGC and Buyer of the change.

                                       9
<Page>

5.2 GENERATION QUALIFICATION. NGS shall have sole responsibility for the
qualification of each of the Facilities with ISO-NE as a generation resource in
New England and compliance with applicable NEPOOL Standards.

5.3 DISPATCH. Subject to Good Industry Practice, NGC, or its Designee, shall
have sole discretion to request commitment and dispatch of the Products from
each Facility, up to the capacity available from the Facilities at the time.

5.4 BIDDING AND SCHEDULING AUTHORITY. NGC, or its Designee, shall be the Lead
Participant for the Facilities with ISO-NE. NGC, or its Designee, shall have
sole right and responsibility for bidding and scheduling of the Facilities with
ISO-NE in accordance with the NEPOOL Agreement. NGC, or its Designee, shall
communicate to NGS all scheduling and bidding information in a manner consistent
with the timing requirements of ISO-NE and NEPOOL. NGS shall provide such
support, as may be reasonably requested by NGC, or its Designee, in order to
enable them to perform such obligations. All bidding and scheduling set by NGC,
or its Designee, shall be based upon operating parameters set by NGS in
accordance with the operation and maintenance of each of the Facilities as
specified herein.

5.5 EMERGENCY CURTAILMENT. NGS may curtail, reduce or interrupt its delivery of
all or a portion of the Product of any of the Facilities whenever: (a) continued
operation of such Facility would result in damage to the Facility or to a
transmission or distribution system with which such Facility is directly
interconnected, or (b) if a transmission or distribution system with which such
Facility is directly interconnected experiences an emergency, as designated by
the affected utility, or (c) whenever it is necessary to aid in the restoration
of service on a system with which such Facility is directly or indirectly
interconnected, or (d) whenever requested by ISO-NE or a governmental authority
with applicable jurisdiction, or (e) as required by Good Industry Practice. NGS
shall notify NGC, or its Designee, as soon as reasonably practicable of any such
curtailment, reduction or interruption, it being understood that is may not be
reasonably practicable to provide such notice in advance of such an event. Such
notice may be either written or oral with length and content as mutually agreed
by the Parties depending on the nature of the incident. Any such curtailment,
reduction or interruption shall continue only for as long as reasonably
necessary.

                                       10
<Page>

5.6 COMMUNICATIONS WITH ISO-NE. NGS shall be responsible for direct
communications with ISO-NE or its satellite operator with regards to the hourly
actual operation of each of the Facilities. NGS shall be responsible for
communications with NGC, or its Designee, regarding any and all directions
received from the ISO-NE or its satellite operator. NGC, or its Designee, shall
have sole responsibility for direct communications with ISO-NE regarding bidding
and scheduling of each of the Facilities.

                       SECTION 6 - PUMPING POWER AND FUEL

6.1 NORTHFIELD AND ROCKY RIVER FACILITIES. NGC, or its Designee, shall bear the
cost of and make appropriate arrangements for supplying electrical energy for
pumping operation and for the associated pumping costs for the Northfield
Facility and the Rocky River Facility. NGC, or its Designee, shall communicate
to NGS all pumping scheduling information in a manner consistent with the timing
requirements of ISO-NE and NEPOOL.

6.2 TUNNEL JET FUEL. NGC, or its Designee, shall supply and deliver to the Fuel
Delivery Point the fuel required to operate the Tunnel Jet Facility. NGS will be
responsible for the safe and efficient handling of such fuel after the Fuel
Delivery Point. NGC, or its Designee, will coordinate the schedule of such fuel
deliveries with NGS to provide for the efficient and reliable acquisition and
delivery of fuel for the Tunnel Jet Facility.

                              SECTION 7 - BUDGETING

7.1 ANNUAL BUDGET. On or before October 1 of each year of this Agreement, NGS
will provide NGC and its Designee with an estimate of NGC's costs under Sections
3 and 4 of this Agreement, including the fees payable to NGS hereunder and any
additional operating and maintenance costs, capital costs, and other costs, if
any, of the Facilities to be paid by NGC on a Facility by Facility basis. The
budget for the first year of the Services is attached herein as Exhibit 8.

7.2 ADDITIONAL BUDGET AND PLANNING INFORMATION. To assist NGC and its Designee
with their financial planning and budget management, NGS shall respond to any
reasonable requests from NGC and its Designee for additional budget and
projected cost information such as five (5) year budget planning assumptions and
projections.

                              SECTION 8 - REPORTING

                                       11
<Page>

8.1 GENERAL REPORTING. NGS will provide NGC and its Designee with any and all
reports reasonably necessary to fulfill Lender, ISO-NE, regulatory, legal or
other requirements.

8.2 INCIDENT REPORTS. NGS will promptly inform NGC and its Designee of any
existing or potential permit violations or incidents, or operating deficiencies
which may materially impede operation of any Facility, materially add to cost or
result in potential legal claims or actions. Such notification may be either
written or oral, with length and content as reasonably requested by NGC, or its
Designee.

8.3 REGULAR, PERIODIC REPORTS. NGS shall furnish to NGC in writing a report as
soon as available but in no event more than thirty (30) days after the end of
each calendar quarter of each fiscal year, in the form of Exhibit 9 attached
hereto, a summary of such quarter's operations and a summary of the calendar
year-to-date operations compared to the budget and forecasts delivered pursuant
to this Agreement, including information in reasonable detail concerning (i)
each Facility's production and availability during such period, (ii) revenues
received during such period, (iii) NGC operating costs during such period as
compared to the operating budget last delivered to NGC, (iv) capital
expenditures during such period as compared to the capital additions and
replacement budget last delivered to NGC and (v) any material developments
during such period in the operations of each of the Facilities, including
material technical problems, discovery of any material defects in the physical
plants and equipment of the Facilities, material interruptions to operation,
material disputes with any governmental body (including tax authorities) or
material labor difficulties. In the event of a material deviation of operating
results from budgets and forecasts delivered pursuant hereto, NGS shall promptly
notify NGC describing such deviation in reasonable detail, and together with
such notice or as soon thereafter as possible, a description of the action that
NGS proposes to take with respect thereto.

8.4 NOTICES OF MATERIAL EVENTS. NGS shall furnish to NGC, in writing, promptly
after NGS obtains knowledge thereof, notice of:

         (a)      all legal or arbitral proceedings, and of all proceedings by
                  or before any governmental or regulatory authority or agency,
                  and of any material development in such legal or other
                  proceedings, materially affecting any of the Facilities,
                  including without limitation, any pending or threatened
                  environmental claim.

                                       12
<Page>

         (b)      any other development that results in, or could reasonably be
                  expected to result in, a material adverse effect on any of the
                  Facilities.

         (c)      any Event of Default, together with a description of any
                  action being taken or proposed to be taken with respect
                  thereto.

         (d)      any casualty, damage or loss to the Facilities, whether or not
                  insured, through fire, theft, other hazard or casualty,
                  involving a probable loss of $500,000 or more (such amount to
                  be deemed increased annually consistent with increases in the
                  consumer price index on each anniversary of the execution
                  hereof).

         (e)      any cancellation, notice of threatened or potential
                  cancellation or material change in the terms, coverage or
                  amounts of any policy of insurance required to be maintained
                  by NGS hereunder.

         (f)      any event, occurrence or circumstance that reasonably could be
                  expected to render NGS incapable of or prevent NGS from
                  performing the Services hereunder.

         (g)      any fact, circumstance, condition or occurrence at, on, or
                  arising from, any Facility that results in noncompliance with
                  any environmental law that has resulted or could reasonably be
                  expected to result in a material adverse effect on the
                  operations of any Facility.

         (h)      any lien, except liens incurred in the ordinary course of
                  business such as mechanics liens.

Each notice delivered under this Section shall be accompanied by a statement
from NGS setting forth the details of the event or development requiring such
notice and any action taken or proposed to be taken with respect thereto.

8.5 OTHER REQUESTED INFORMATION. Throughout the period of this Agreement, the
Parties shall negotiate, discuss and work together in good faith, and exchange
and provide each other with such information as they can reasonably provide and
which would or might assist the other in performing its obligations under this
Agreement or NGC in satisfying any of its obligations under any of the

                                       13
<Page>

financing documents to which it is a party. In particular, NGS shall keep NGC
reasonably informed of matters relating to the Facilities and the business of
NGC relating to the Facilities and the Services, and shall provide NGC with the
relevant documentation to the extent that such information and documentation is
reasonably available to NGS and provision thereof may occur without material
additional work or cost to NGS.

                            SECTION 9 - SUBCONTRACTS

9.1 SUBCONTRACTS. NGS may not subcontract Services which aggregate $1.5 million
or greater per calendar year for any single non-Affiliate subcontractor or
vendor, or $5 million in total for all non-Affiliate subcontractors and vendors
in a calendar year, without prior written consent of NGC. In any case, NGS is
solely responsible to NGC for the management and operations of the Facilities,
and subcontracting the Services or any portion thereof to an affiliate (other
than Northeast Utilities Service Company ("NUSCO")) or a non-Affiliate shall not
relieve NGS of any of its duties, liabilities or obligations under this
Agreement. NGS shall remain directly liable to NGC for the performance of such
subcontracted Services as if such services had been performed directly by NGC
and not by an Affiliate or a non-Affiliate.

                             SECTION 10 - INSURANCE

10.1 INSURANCE. NGS shall obtain and maintain, at NGS's sole cost and expense,
Employer's Liability and/or Worker's Compensation insurance, in accordance with
applicable laws, in statutory amounts. NGS will obtain and maintain Automobile
Liability and Commercial General Liability insurance in such amounts and form as
NGC may reasonably require. Upon NGC's request, NGS will provide copies of
policies or other proof of insurance coverage as NGC may reasonably require.
With NGC's consent, NGS may self-insure such exposures.

All policies, other than Worker's Compensation, shall be endorsed to name NGC
and its Lenders as additional insureds with respect to any and all third party
bodily injury and/or property damage claims arising from NGS's performance
hereunder.

                               SECTION 11 - TITLE

11.1 TITLE. Title to all capitalized equipment and tools and to all materials
and supplies and fuel held in inventory, provided or procured by NGS pursuant to
this Agreement for the Facilities will pass to

                                       14
<Page>

NGC immediately upon delivery of the materials to NGS or the applicable Facility
site (whichever occurs first).

                           SECTION 12 - ENVIRONMENTAL

12.1 ENVIRONMENTAL LIABILITY. Subject to the limitations in Section 14, NGS
shall be liable to NGC for, hold NGC harmless against and indemnify NGC against
any on or off-site environmental liabilities attributable to negligence, gross
negligence or wanton or willful misconduct by NGS. NGS shall not be liable to
NGC, hold NGC harmless against or indemnify NGC with respect to any other
environmental liabilities.

                    SECTION 13 - EVENTS OF DEFAULT; REMEDIES

13.1 EVENTS OF DEFAULT. (a) An "Event of Default" shall mean, with respect to a
Party ("Defaulting Party"), the occurrence of any of the following:

         (i)      the failure to make, when due, any payment required pursuant
                  to this Agreement, except if such payment is being contested
                  in good faith pursuant to Sections 4.5 and 15, if such failure
                  to pay such uncontested amount is not remedied within one
                  hundred twenty (120) days after written notice of such
                  failure;

         (ii)     any representation or warranty made by the Defaulting Party
                  herein shall be false or misleading in any material respect
                  when made or when deemed to be repeated;

         (iii)    the willful contravention of any applicable law or regulation
                  relating to the operation of the Facilities;

         (iv)     the failure to perform any material obligation set forth in
                  this Agreement (other than the events that are otherwise
                  specifically covered as a separate Event of Default), and such
                  failure is not cured within sixty (60) days after written
                  notice of such failure; or

(b)      An "Event of Default" shall mean, with respect to NGS (the "Defaulting
         Party"), the occurrence of any of the following:

                           (i)      NGS or NU shall be Bankrupt.

                                       15
<Page>

                           (ii)     if at any time the outstanding liability of
                                    NGS under this Agreement exceeds the
                                    limitation on damages set forth in Section
                                    14.2; PROVIDED, HOWEVER, exceeding the
                                    limitation on damages set forth in Section
                                    14.2 shall not constitute an Event of
                                    Default if NGS waives its rights in writing
                                    under Section 14.2 for such calendar year.

                           (iii)    if NGS fails to comply with or hold any
                                    permits required under any law or regulation
                                    to perform its material obligations
                                    hereunder, and such failure cannot be
                                    remedied by NGS within sixty (60) days of
                                    becoming aware of such issue.

                           (iv)     Except as permitted by Section 6.01 of the
                                    Credit Agreement, Northeast Utilities shall
                                    fail to own 100% of the voting stock of NGS.

                           (v)      Any provision of the NU Guaranty shall cease
                                    to be valid and binding on or enforceable
                                    against Northeast Utilities, or Northeast
                                    Utilities shall so state in writing.

13.2 REMEDIES. Upon an Event of Default, the non-Defaulting Party has the right
to terminate this Agreement upon thirty (30) days written notice to the
Defaulting Party. This Agreement shall not be terminated if the default is cured
within the thirty (30) day notice period.

                       SECTION 14 - LIABILITY AND DAMAGES

14.1 LIMITATION OF LIABILITY. Notwithstanding anything to the contrary express
or implied in this Agreement neither Party shall be liable to the other Party
hereto in tort, contract, indemnity provision, under statute or otherwise in law
or equity or by contract for any indirect, consequential, incidental, punitive
or exemplary damages, lost profits or other business interruption damages.

14.2 LIMITATION OF DAMAGES. Notwithstanding anything to the contrary expressed
or implied in this Agreement, in no event shall either Party be liable to the
other Party for damages for all events and occurrences that occur in a calendar
year that exceed the sum of the annual amounts paid by NGC to NGS for that
calendar year pursuant to Section 4 plus any applicable insurance proceeds,
unless such occurrence is or was caused by the gross negligence or willful
misconduct of either Party , in which case such Party shall be responsible for
the full amount of the damages.

                                       16
<Page>

                         SECTION 15 - DISPUTE RESOLUTION

15.1 STEP NEGOTIATION. In the event of a dispute regarding this Agreement, the
Parties shall attempt, in good faith, to resolve the dispute amicably and
promptly by appointing a senior executive of each Party to attempt to mutually
agree upon a resolution. Either Party may give the other Party written notice of
any dispute or claim. Within ten (10) days after delivery of said notice, the
executives will meet at a mutually acceptable time and place and thereafter as
often as they reasonably deem necessary to exchange information and attempt to
resolve the dispute or claim within thirty (30) days. If the two senior
executives cannot reach a resolution, the dispute may be set for arbitration as
described herein.

15.2 ARBITRATION. If the senior executives of the Parties are unable to resolve
the dispute, and adjudication of the dispute is not within the exclusive
jurisdiction of the FERC, the dispute may be submitted upon request of either
Party to binding arbitration by one arbitrator who has not previously been
employed by either Party, and does not have a direct or indirect interest in
either Party or the subject matter of the arbitration. Such arbitrator shall
either be as mutually agreed by the Parties within thirty (30) days after
written notice from either Party requesting arbitration, or failing agreement,
shall be selected under the expedited rules of the American Arbitration
Association (the "AAA") unless otherwise agreed by the Parties. Such arbitration
shall be held in alternating locations of the home offices of the Parties or in
any other mutually agreed upon location. The rules of the AAA shall apply to the
extent not inconsistent with the rules herein specified. The judgment rendered
by the arbitrator may be enforced in any court having jurisdiction of the
subject matter and the Parties. All costs of the arbitration shall be paid
equally by the Parties, unless the award shall specify a different division of
the costs. Each Party shall be responsible for its own expenses, including
attorney's fees. Both Parties shall be afforded adequate opportunity to present
information in support of its position on the dispute being arbitrated. The
arbitrator may also request additional information from the Parties.

15.3 ARBITRATION RULES. The arbitrator shall be bound by the terms of this
Agreement and may not detract from or add to its terms. The Parties may by
mutual agreement specify the rules that are to govern the arbitration
proceedings and limit the matters to be considered. The findings and award of
the arbitrator shall be final and conclusive and shall be binding upon the
Parties, except as otherwise provided by law. Each Party agrees that it will not
bring a lawsuit concerning any dispute covered by this arbitration provision.
Any monetary award of the arbitrator may be enforced by the Party in whose favor
such monetary award is made in any court of competent jurisdiction.

                                       17
<Page>

                           SECTION 16 - FORCE MAJEURE

16.1 FORCE MAJEURE. As used in this Agreement, "Force Majeure" means an event or
circumstances which prevents one party from performing its obligations under
this Agreement, which event or circumstances was not anticipated as of the date
of the Agreement and is not within the reasonable control of, and without fault
or negligence of, the Party claiming Force Majeure (the "Claiming Party"), and
which, by the exercise of due diligence, the Claiming Party is unable to
overcome or avoid or cause to be avoided. Consistent with the above, Force
Majeure includes, without limitation, sabotage, strikes or other labor
difficulties, riots or civil disturbance, acts of God, act of public enemy,
drought, earthquake, flood, explosion, fire, lightning, landslide, or similarly
cataclysmic occurrence, or appropriation or diversion of electricity by sale or
binding order of any court or governmental authority having jurisdiction thereof
(so long as the Claiming Party has not applied for or assisted in the
application for such Court or government action or any other case, whether of
the kind herein enumerated or otherwise). In the event of a strike or other
labor difficulties, NGS will use all reasonable efforts to ensure that the
Facilities are operated as if there were no strike or other labor difficulties
during the time such events exist.

                                       18
<Page>

16.2 PROCEDURE ON FORCE MAJEURE CLAIM.

         (a)      If a Claiming Party wishes to claim relief by reason of Force
                  Majeure, it shall give written notice stating the date of
                  commencement of such Force Majeure event and the predicted
                  extent, estimated consequences and the cause thereof, to the
                  other Party as soon as reasonably possible and in any case
                  within five (5) days of it becoming aware of such event or
                  circumstances, time being of the essence.

         (b)      The Claiming Party shall keep the other Party fully informed
                  of any developments with respect to the Force Majeure.

         (c)      If either Party claims relief for Force Majeure pursuant to
                  Section 16.1 and the other Party disputes the existence,
                  nature, extent or condition of the event of circumstances
                  giving rise to such claim for relief, then:

                  (i)      the Parties shall meet promptly in order to resolve
                           such dispute within such period as the Parties hereto
                           may agree (or, failing agreement, within thirty (30)
                           days); and

                  (ii)     if such dispute is not resolved by the Parties
                           pursuant to paragraph (i) above, then such dispute
                           shall be resolved pursuant to Section 15.

         (d)      The Claiming Party shall give notice to the other Party of
                  the cessation of the relevant event or circumstances of Force
                  Majeure as soon as practicable after becoming aware of such
                  cessation.

         (e)      In the event that Force Majeure causes any Party to be unable
                  to serve any notice hereunder, the period for the serving of
                  such notice (if any) shall be extended for every day while
                  such event or circumstance of Force Majeure prevents the
                  service of such notice.

16.3 EFFECTS OF FORCE MAJEURE. If either Party to this Agreement is rendered
wholly or partly unable to perform its obligations hereunder because of Force
Majeure as defined above, that Party shall be

                                       19
<Page>

excused from whatever performance is affected by the Force Majeure to the extent
so affected, provided that:

         (a)      the non-performing Party promptly, but in no case longer than
                  five (5)days after the occurrence of the Force Majeure, gives
                  the other Party written notice describing the particulars of
                  the occurrence;

         (b)      the suspension of performance shall be of no greater scope and
                  of no longer duration than is reasonably required by the Force
                  Majeure; and

         (c)      the non-performing Party uses due diligence to remedy its
                  inability to perform.

In the event that the Force Majeure is of a duration greater than ninety (90)
days the performing Party may terminate this Agreement with respect to the
Facility or Facilities whose performance is affected by the Force Majeure upon
thirty (30) days prior written notice, unless the Force Majeure has been cured
within that later thirty (30) day period.

                               SECTION 17 DELIVERY

17.1 DELIVERY. (a) NGS shall deliver each Facility to NGC on the termination
date of this Agreement in the state and condition as shall be reasonably
expected, subject to ordinary wear and tear, on the assumption that each
Facility has been consistently operated and maintained in accordance with Good
Industry Practice and as otherwise provided in this Agreement.

(b) NGS shall deliver to, or relinquish custody to NGC or (at the direction of
NGC) to any person appointed by NGC to operate and/or maintain the Facilities in
succession to NGS (a "Successor Operator") all funds held by NGS as agent or
trustee for NGC as operator of the Facilities, all books, records and
inventories and all property of NGC relating to the operation and maintenance of
the Facilities, in such condition as reflects full compliance with NGS's
obligations under this Agreement.

(c) NGS shall, to the extent allowed by such contracts, transfer to any
Successor Operator, effective as of the termination date of this Agreement with
respect to any of the Facilities, the benefit of all contracts it has relating
to the performance of the Services. Pending such transfer, NGS shall hold it
rights and interests in relation to all such contracts for the Successor
Operator.

                                       20
<Page>

17.2 CONTINUITY OF OPERATION (a) NGS shall provide reasonable assistance to NGC
and any Successor Operator to transfer the operation and maintenance of the
Facilities to NGC or any Successor Operator, so as to prevent, limit or mitigate
any harm or disruption to the normal operation and maintenance of the Facilities
and the business of NGC.

(b) If this Agreement is terminated by NGC, NGS shall, if required by NGC,
continue to operate the Facility for a period specified by NGC but not exceeding
90 days from the date of such termination. During such period, NGS and NGC shall
both continue to comply with this Agreement as if it had not been terminated and
both Parties' obligations had continued during such period. NGC shall pay NGS
during such period the same amount as would have been due during such period if
the Agreement had not been terminated.

                    SECTION 18 - INSPECTION AND AUDIT RIGHTS

18.1 AUDIT RIGHTS. NGC shall have the right throughout the Term and for a period
of three (3) years following the end of the Term, upon reasonable prior notice,
to inspect the Facilities, to request copies of and review documents and to
examine the books and records of NGS to the extent reasonably necessary to
verify the accuracy and basis for any claim by NGS for payments from NGC or to
determine NGS's compliance with the terms of this Agreement. NGS shall make all
such records available as appropriate at each Facility or NGS's office in Rocky
Hill, Connecticut during normal business hours.

                          SECTION 19 - INDEMNIFICATION

19.1 INDEMNIFICATION. NGC and NGS shall each be liable to, indemnify, defend and
hold the other Party, its directors, officers, employees and agents (including
but not limited to affiliates and contractors and their employees), harmless
from and against all third party liabilities, damages, losses, penalties,
claims, demands, suits, expenses, attorneys' fees and proceedings of any nature
whatsoever for personal injury (including death) or property damage that arise
out of the performance of this Agreement or other actions or omissions by that
party, except to the extent that such injury or damage may be attributable to
the negligence, gross negligence or willful misconduct of the Party seeking to
be indemnified. The obligations of NGS and NGC in relation to bona fide,
independent third parties, under this Section 19 shall not be limited by Section
14.

19.2 EMPLOYEE OBLIGATIONS. NGS, either directly or through its Affiliate NUSCO,
shall be solely responsible for employing the employees who shall perform the
Services and other obligations

                                       21
<Page>

hereunder on behalf of NGS (the "EMPLOYEES") and shall maintain employment of
Employees with such qualifications and expertise as necessary for NGS to provide
the Services to NGC pursuant hereto. NGS, either directly or through NUSCO,
shall be responsible for the payment of all salaries and benefits, whether
contractual or statutory, associated with the employment of the Employees,
including but not limited to, expense reimbursements, health insurance, workers
compensation and social security, and NGS shall indemnify and hold harmless NGC
from and against all claims, demands, costs, expenses (including reasonable
attorneys' fees) as incurred, liabilities and losses which may result from the
failure of NGS to comply with such responsibilities in connection with its
employees.

19.3 NOTICE. The indemnifying Party shall be promptly notified of any claim made
against the indemnified Party arising out of the matters specified in this
Section 19.

19.4 PROCEEDINGS. (a) The indemnifying Party may at its own cost conduct
         negotiations for the settlement of any claim made against the
         indemnified Party arising out of the matters specified in this Section
         19 and any litigation that may arise therefrom in such reasonable
         manner as the indemnified Party shall from time to time approve (such
         approval not to be unreasonably withheld).

19.4     (b) The indemnified Party shall not make any admission which might be
         prejudicial to the indemnifying Party unless the indemnifying Party has
         failed to take over the conduct of the negotiations or litigation or
         provide security under this Section 19.4 within a reasonable time of
         having been so requested.

                       SECTION 20 - INTELLECTUAL PROPERTY

20.1 DEFINITION. "Intellectual Property Rights" means: (a)

                           (i)      patents, trade marks, service marks, rights
                                    in designs, trade names, copyrights and
                                    topography rights, in each case whether
                                    registered or not;

                           (ii)     applications for registration of any of the
                                    above;

                                       22
<Page>

                           (iii)    rights under licenses and consents in
                                    relation to any of the above; and

                           (iv)     all forms of protection of a similar nature
                                    or having equivalent or similar effect to
                                    any of them which may subsist anywhere in
                                    the world.

         (b)      NGC INTELLECTUAL PROPERTY. Designs, drawings, specifications,
                  instructions, manuals and other documents created, produced or
                  commissioned by NGC and relating to the Facilities and to the
                  carrying out of the Services at the Facilities and copyright
                  therein and all Intellectual Property Rights relating thereto
                  ("NGC INTELLECTUAL PROPERTY") are, shall be, and shall remain
                  the property of NGC. NGC hereby grants to NGS a revocable,
                  non-exclusive, royalty free, non-transferable license to use
                  NGC Intellectual Property in connection with the providing of
                  the Services to NGC only.

         (c)      OPERATOR INTELLECTUAL PROPERTY. NGS hereby grants to NGC an
                  irrevocable, non-exclusive, royalty-free, transferable license
                  to use solely with regard to the providing of Services to NGC
                  any Intellectual Property Rights owned by NGS required in
                  connection with the Services.

         (d)      THIRD PARTY INTELLECTUAL PROPERTY. Prior to concluding any
                  contract with any third parties relating to the supply of
                  materials or services specifically created by third parties
                  for the purposes of providing the Services, NGS shall use
                  reasonable efforts to provide that such third party grant
                  irrevocable non-exclusive, royalty-free licenses to each of
                  NGS and NGC to use all Intellectual Property Rights pertaining
                  to such contract with the right for NGC to assign such license
                  to, or grant a sub-license to, any person appointed operator
                  of the Facilities from time to time.

                           SECTION 21 - MISCELLANEOUS

21.1 AMENDMENTS. This Agreement may be amended only by a writing executed by the
Parties hereto.

21.2 GOVERNING LAW.

                                       23
<Page>

21.2.1. CHOICE OF LAW AND JURISDICTION. This Agreement and the rights and duties
of the Parties hereunder shall be governed by and construed, enforced and
performed in accordance with the laws of the State of Connecticut, without
regard to principles of conflicts of law. Each Party waives its respective right
to any jury trial with respect to any litigation arising under or in connection
with this Agreement.

21.2.2. APPLICABLE LAWS, REGULATIONS, ORDERS, APPROVALS AND PERMITS. This
Agreement is made subject to all existing or future applicable federal, state,
and local laws and to all existing or future duly promulgated orders or other
duly authorized actions of governmental authorities having jurisdiction over the
matters contained in this Agreement.

21.3 NOTICES. All notices, requests, statements, or payments required to be made
under this Agreement shall be made as specified below. Notices required to be in
writing shall be delivered in person, by letter, facsimile or other documentary
form. Notice by facsimile or hand delivery shall be deemed to have been received
by the close of the Business Day on which it was transmitted or hand delivered
(unless transmitted or hand delivered after close, in which case it shall be
deemed received by the close of the next Business Day). Notice by overnight mail
or courier shall be deemed to have been received the next Business Day after it
was sent. A Party may change its addresses by providing notice of same in
accordance herewith:

To NGC:           Northeast Generation Company
                  107 Selden Street
                  Berlin, CT 06037
                  Attn:     Asset Management Division,
                            Joseph J. Staszowski, Director
                  FAX: (860) 665-5798

To NGS:           Northeast Generation Services Company
                  273 Dividend Road
                  Rocky Hill, CT  06067
                  Attn:  William J. Nadeau
                  Vice President
                  FAX:  (860) 665-6263

                                       24
<Page>

Either Party by written notice to the other Party may change the address or the
persons to whom notices or copies thereof shall be directed.

21.4 COUNTERPARTS. This Agreement may be executed in any number of counterparts,
each of which shall be deemed to be an original, and all of which together shall
constitute one and the same instrument.

21.5 ASSIGNMENT. This Agreement shall be binding upon and inure to the benefit
of the successors and assigns of each Party hereto. Neither Party shall assign
its obligations hereunder to any other Person without the prior written consent
of the other Party, which in the case of a proposed assignment by NGS may be
withheld by NGC in its sole discretion, and in the case of a proposed assignment
by NGC may not be unreasonably withheld by NGS; provided, however, that NGC may
assign its rights hereunder to an Affiliate or to a Lender in connection with
financing or refinancing of the Facilities without the consent of NGS.

21.6 WAIVERS. The failure of either Party hereto to enforce at any time any
provision of this Agreement shall not be construed to be a waiver of such
provision, nor in any way to affect the validity of this Agreement or any part
hereof or the right of a Party thereafter to enforce each and every such
provision. No waiver of any breach of this Agreement shall be held to constitute
a waiver of any other or subsequent breach.

21.7 NO THIRD PARTY BENEFICIARIES. Nothing in this Agreement, whether express or
implied, is intended to confer any rights or remedies under or by reason of this
Agreement on any persons other than the Parties and their respective permitted
successors and assigns, nor is anything in this Agreement intended to relieve or
discharge the obligation or liability of any third persons to either Party, nor
to give any third persons any right of subrogation or action against either
Party.

21.8 SECTION HEADINGS. The section headings used in this Agreement are for
convenience only and shall not be deemed to be a binding portion of this
Agreement.

21.9 INDEPENDENT CONTRACTORS. The Parties are independent contractors. Except as
otherwise specified in this Agreement, nothing contained herein shall be deemed
to create association, joint venture, partnership or principal/agent
relationship between the Parties hereto or impose any partnership obligation or
liability on either Party, and neither Party shall have any right, power or

                                       25
<Page>

authority to enter into any agreement or commitment, act on behalf of or
otherwise bind the other Party in any way.

21.10 SUCCESSORS INCLUDED. Reference to any individual, corporation or other
entity shall be deemed a reference to such individual, corporation or other
entity, together with its successors and permitted assigns from time to time.

21.11 ENTIRE AGREEMENT. This Agreement (including the Schedules hereto)
constitute the entire agreement between the Parties relating to the subject
matter contemplated by this Agreement. This Agreement shall be considered for
all purposes as prepared through the joint efforts of the parties and shall not
be construed against one party or the other as a result of the preparation,
substitution, submission or other event of negotiation, drafting or execution
hereof.

21.12 PARTIAL INVALIDITY. Wherever possible, each provision hereof shall be
interpreted in such manner as to be effective and valid under applicable law,
and any provision declared or rendered unlawful by any applicable court of law
or regulatory agency or deemed unlawful because of a statutory change will not
otherwise affect the remaining lawful obligations that arise under this
Agreement, unless such a construction of the remainder of the Agreement would be
unreasonable or deprive a Party of a material benefit under this Agreement. In
such event, the Parties shall seek to amend this Agreement to remove the invalid
provision and otherwise provide the benefit unless prohibited by law.

21.13 SURVIVING RIGHTS. All indemnity and audit rights shall survive the
termination of this Agreement for three (3) years.

                   SECTION 22 - REPRESENTATIONS AND WARRANTIES

         On the date of this Agreement, each Party represents and warrants to
the other Party that: (i) it is duly organized, validly existing and in good
standing under the laws of the jurisdiction of its formation, (ii) it has all
regulatory authorizations necessary for it to legally perform its obligations
under this Agreement and any other documentation relating to this Agreement to
which it is a party, (iii) the execution, delivery and performance of this
Agreement and any other documentation relating to this Agreement to which it is
a party are within its powers, have been duly authorized by all necessary action
and do not violate any of the terms and conditions in its governing documents,
any

                                       26
<Page>

contracts to which it is a party or any law, rule, regulation, order or the like
applicable to it, (iv) this Agreement and each other document executed and
delivered in accordance with this Agreement constitutes its legally valid and
binding obligation enforceable against it in accordance with its terms, (v)
there are no bankruptcy proceedings pending or being contemplated by it or, to
its knowledge, threatened against it, (vi) there is not pending or, to its
knowledge, threatened against it or any of its affiliates any legal proceedings
that could materially adversely affect its ability to perform its obligations
under this Agreement or any other document relating to this Agreement to which
it is a party, (vii) no Event of Default or event which, absent a cure, with the
giving of notice or lapse of time, or both, would constitute an Event of Default
with respect to it has occurred and is continuing and no such event or
circumstance would occur as a result of its entering into or performing its
obligations under this Agreement or any other document relating to this
Agreement.

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

Northeast Generation Company

By: /s/ David R. McHale
   -------------------------------
Name:  David R. McHale
Title: Vice President and Treasurer

Northeast Generation Services Company

By: /s/ William J. Nadeau
   -------------------------------
Name:  William J. Nadeau
Title: Vice President and
       Chief Operating Officer

                                       27
<Page>

                                    EXHIBIT 1

                         ELECTRIC GENERATING FACILITIES

HOUSATONIC HYDROELECTRIC SYSTEM
Falls Village Station
Bulls Bridge Station
Rocky River Station
Shepaug Station
Stevenson Station
Robertsville Station
Bantam Station

EASTERN HYDROELECTRIC SYSTEM
Tunnel Station
Taftville Station
Scotland Station
Tunnel ICU

NORTHFIELD MOUNTAIN HYDROELECTRIC SYSTEM
Northfield Mountain Pumped Storage Station and Northfield Environmental
  Recreation Center
Cabot Station
Turner Falls #1 Station

                                       28
<Page>

                                    EXHIBIT 2

                                SCOPE OF SERVICES

The Services provided under Section 3 of the Agreement include management,
operations, maintenance, administrative, labor, consumable materials (except
station services for electrical needs and fuel for electric generation), water,
supervision and other goods and services necessary for the safe, efficient, and
reliable management, operation and maintenance of the Facilities on a daily
basis.

The scope of services includes, the following:

A.       FACILITY MANAGEMENT

1.       Recruiting, hiring and training of qualified personnel, vendors and
         subcontractors;

2.       Strategic planning to ensure that the Facilities' day-to-day and
         long-term operational and maintenance needs are satisfied;

3.       Compliance with and maintenance of standard operating procedures;

4.       Preparation and maintenance of operating and maintenance records and
         reports;

5.       Preparation and processing of invoices to support payments by NGC of
         items directly charged to NGC;

6.       Procurement and payment for goods, services and supplies provided by
         vendors, suppliers and contractors;

7.       Development and implementation of policies and procedures relating to
         safety, environmental and security practices;

8.       Development and maintenance of an effective inventory management
         system;

<Page>

9.       Supervision of all personnel, vendors and subcontractors;

10.      Development of operating reports and budgets for NGC;

11.      Development of recommendations for Facility capital improvements and
         programs which may be of benefit to NGC;

12.      Reasonable coordination with NGC and Buyer;

13.      Development and implementation of an effective maintenance process
         including all necessary procedures;

14.      Utilization of predictive maintenance program;

15.      Utilization of computer based maintenance management system;

16.      Inspection of dams as required;

17.      Operation and maintenance of all recreational facilities associated
         with the Facilities;

18.      Provision of hand tools and equipment determined to be less than units
         of property under NGC's retirement catalogue;

19.      Administration and assurance of compliance with and maintenance of all
         licenses, permits, leases, and contracts associated with the
         Facilities;

20.      Coordinating with CL&P, WMECO, NGC and Buyer under the terms of the
         Interconnection Agreements with NGC dated 7/2/99;

21.      Community Relations.

22.      Management and administrative support.

                                       2
<Page>

23.      Technical and engineering support for operation and maintenance of the
         Facilities in their current status.

B.       OPERATIONS

NGS will provide all services necessary to operate the Facilities in strict
compliance with all legal requirements and government authorizations or licenses
and in accordance with Good Industry Practices, NEPOOL Standards and operation
and maintenance requirements of the Purchase Agreement. Operations shall
include, but not be limited to the following:

1.       Operating the hydroelectric, pumped storage and jet plants ; this
         includes all auxiliary systems, motor control centers and electrical
         switchgear;

2.       Scheduling of operations and personnel;

3.       Coordinating with transmission/distribution tagging;

4.       Removal of debris and ice from trash racks;

5.       Operation of  intakes, spillways, gateways and outlet works;

6.       Public notification of draw down events;

7.       Assuring compliance with applicable environmental safety and health
         regulations;

8.       Maintenance of NGC's spare parts inventory to enable performance of all
         maintenance and continued operations;

9.       Operation of lubrication and control systems;

10.      Performance of equipment testing and adjustments;

11.      Providing Facility security;

                                       3
<Page>

12.      Caring for Facilities and grounds, including housekeeping.

C.       MAINTENANCE

To ensure the long-term operability of systems and equipment, NGS will provide
services necessary to maintain the Facilities' equipment, including on-site
electrical interconnection Facilities owned by NGC, in proper working condition
under the current mode of operation as of the effective date of this Agreement.
Maintenance includes but not be limited to the following:

1.       Ordinary Maintenance - daily repairs, maintenance and upkeep of the
         Facilities to maintain plant capacity and uninterrupted, economical
         production and delivery of electricity.

2.       Scheduled Maintenance - overhauls, repairs, maintenance and upkeep to
         the Facilities at scheduled intervals to preserve and maintain plant
         capacity and uninterrupted and economical production and delivery of
         electricity.

3.       Forced Maintenance - repairs and maintenance of the Facilities not
         reasonably anticipated which must be performed to preserve and maintain
         plant capacity and uninterrupted economical production of electricity
         and energy products.

4.       Facility Maintenance - inspection, and minor maintenance and repair of
         all buildings, structures, facilities and grounds.

                                       4
<Page>

                                    EXHIBIT 3

                 ONGOING PURCHASE AND SALE AGREEMENT OBLIGATION

CL&P AND WMECO PSAS

Section 5.7  Employee Matters

Section 5.8  Access After Closing to Records and Employees

Section 5.13  Discharge of Environmental Liabilities

Section 7.0 Confidentiality

Section 11.1 Press Releases and Public Announcement

Exhibit E - Interconnection Agreements Dated 7/2/99

<Page>

                                    EXHIBIT 4

                               NGS EXCLUDED COSTS

NGS will not be responsible for paying or bearing the costs of the following
items, although NGS may process invoices or bills for such costs for payment by
NGC as part of the administrative service it provides:

1.       Fuel, fuel testing, and emission fees for the Tunnel Jet Facility.

2.       Pumping Costs for either the Rocky River facility or Northfield
         Mountain facility

3.       Property taxes for the Facilities

4.       Insurance premiums for property, liability or business interruption
         insurance for the Facilities

5.       Costs associated with any headwater or backwater benefit agreements
         entered into by NGC for the Facilities, including fees for FERC gauging
         stations

6.       Inventory carrying charges associated with the Facilities

7.       Costs associated with Stand-By/Back-up Services for the Facilities and
         those related for use of non-PTF or distribution Facilities.

8.       FERC annual hydroelectric license fee.

9.       FERC hydroelectric license related expenses beyond those required for
         compliance on a daily basis with the FERC licenses which are not
         included in the Annual Fee in Exhibit 6

10.      Environmental fees for the Facilities which are not included in the
         Annual Fee in Exhibit 6

11.      Costs payable under contracts that are not included in the Annual Fee
         in Exhibit 6.

<Page>

12.      Sales, gross receipts, value added and similar taxes.

                                       2
<Page>

                                    EXHIBIT 5
                          APPROVED CAPITAL EXPENDITURES
                                     ($000)

<Table>
<Caption>
               Facility                 2000          2001       2002         2003        2004        2005
               --------                 ----          ----       ----         ----        ----        ----

<S>                                    <C>         <C>          <C>         <C>          <C>         <C>
HOUSATONIC HYDROELECTRIC SYSTEM
Falls Village Station                    197.1        121.4       107.7        100.3        67.3        69.0
Bulls Bridge Station                     192.7        126.5       126.7        130.6        78.5        80.5
Rocky River Station                      113.8         60.8       158.4        162.7       387.3     1,252,3
Shepaug Station                          595.7      1,460.6       297.1        304.9       201.9       206.9
Stevenson Station                        216.0        165.2       265.1        272.1       168.2       197.1
Roberstville Station                       7.2          7.3         7.5          7.7         7.9         8.0
Bantam Station                             5.1          5.2         5.3          5.5         5.6         5.7

EASTERN HYDROELECTRIC SYSTEM
Tunnel Hydro Station                      35.8         36.6        37.4         38.3        39.3        40.2
Taftville Station                         35.8         36.6        37.4         38.3        39.3        40.2
Scotland Station                          35.8         36.6        37.4         38.3        39.3        40.2
Tunnel ICU                                 0.0          0.0       182.0         19.0

NORTHFIELD MOUNTAIN HYDROELECTRIC
SYSTEM
Northfield Mountain Pumped Storage     1,509.2        754.6       772.8        792.1       578.5       593.0
Station
Cabot Station                            518.2      7,620.3     7,455.8     11,226.0       198.3       203.3
Turners Falls # 1 Station                  3.2         20.8        27.3          0.0
Total                                  3,465.3     10,452.3     9,518.2     13,136.2     1,811.3     2,736.4
</Table>

<Page>

                                    EXHIBIT 6

                               a. ANNUAL FIXED FEE
                                     ($000)

<Table>
<Caption>
            Facility                    2000          2001         2002          2003         2004         2005
            --------                    ----          ----         ----          ----         ----         ----

<S>                                  <C>           <C>          <C>           <C>          <C>          <C>
HOUSATONIC HYDROELECTRIC SYSTEM
Falls Village Station                   731.9        1019.1        611.5         627.2        643.3        754.7
Bulls Bridge Station                    580.4       1,230.0        383.7         394.4        405.3        416.6
Rocky River Station                     871.6       1,025.0        917.8         942.3        970.4      1,140.0
Shepaug Station                       1,276.6       2,399.3      1,369.7       1,405.1      1,441.2      1,803.9
Stevenson Station                     1,241.8       1,399.9      1,044.8       2,552.3      2,623.8      1,190.1
Roberstville Station                     13.4          82.3         13.6          14.0         14.2         14.6
Bantam Station                            6.4          75.2          6.4           6.5          6.6          6.8

EASTERN HYDROELECTRIC SYSTEM
Tunnel Hydro Station                    170.7         173.4        176.3         180.8        185.3        190.0
Taftville Station                       211.1         352.2        218.0         223.5        229.0       234.98
Scotland Station                        180.6         252.4        186.6         191.5        196.4        201.5
Tunnel ICU                               43.9          43.6         47.4          52.2         69.9         50.7

NORTHFIELD MOUNTAIN
HYDROELECTRIC SYSTEM
Northfield Mountain Pumped           10,614.9      11,103.3      9,309.1       7,687.4      7,964.6      8,036.3
Storage Station
Cabot Station                         2,092.7       2,158.7      1,938.1       2,014.5      2,071.0      2,129.1
Turners Falls # 1 Station               210.1         216.4        166.5         176.5        184.2        192.3

TOTAL ALL FACILITIES                 18,246.1      21,530.8     16,389.5      16,468.2     17,005.2     16,361.5
</Table>

         The fixed fee for a calendar year shall by paid by NGC in twelve (12)
equal annual monthly installments by month on the first Business Day of each
month for that month, or in amounts predetermined and agreed upon by the Parties
based on scheduled maintenance activity.

         Payment for any partial month shall be prorated based on the number of
days in a month that NGS operates a Facility as a percentage of the total number
of days in that month.

         With respect to year 2006 and subsequent years, NGS shall provide NGC
with its proposed annual fixed fee at least eighteen (18) months prior to the
beginning of such calendar year. The Parties shall negotiate in good faith to
agree on such fixed annual fee. If the Parties cannot agree, either Party may
terminate this Agreement in accordance with Section 2.

                      b. INCENTIVE PAYMENT/CREDIT COMPONENT

<Page>

NGC will pay NGS an annual incentive payment of up to ten (10) percent or
receive an annual incentive credit of up to five (5) percent of the Fixed Fee
based on NGS's performance against performance goals such as:

         1.       Overall availability of the Facilities

         2.       Availability of the Facilities during peak periods

         3.       Northfield Mountain Facility only - availability during 200
                  annual highest price hours

         4.       Reductions or increases in scheduled overhaul periods or NGS
                  Excluded Costs in Exhibit 4.

NGC and NGS will work collaboratively to design and implement the specific
performance goals and incentive calculation.

The annual incentive payment shall not exceed $2.5 million, and the annual
incentive credit shall not exceed $1.25 million.

                                       2

<Page>

                                    EXHIBIT 7

                           HYDRO MAINTENANCE SCHEDULE

<Table>
<Caption>
  Station/unit      MW       Year 2000       Year 2001      Year 2002      Year 2003      Year 2004        Year 2005
  ------------      --       ---------       ---------      ---------      ---------      ---------        ---------

<S>                <C>     <C>           <C>              <C>             <C>             <C>              <C>
  Northfield 1      270      3 wks MI          18 wks                      3 wks MI                         3 wks MI
                                              Maj. OH
  Northfield 2      270        18 wks                        3 wks MI                      3 wks MI
                              Maj. OH
  Northfield 3      270                      3 wks MI                      3 wks MI                         3 wks MI
  Northfield 4      270                                        18 wks                      3 wks MI
                                                              Maj. OH
   Northfield Sta.

     Cabot 1       8.83        1 wk MI          20 wks        1 wk MI        1 wk MI        1wk MI           1wk MI
                                               Maj. OH
     Cabot 2       8.83        1 wk MI          20 wks        1 wk MI        1 wk MI        1wk MI           1wk MI
                                               Maj. OH
     Cabot 3       8.83        1 wk MI         1 wk MI         20 wks        1 wk MI        1wk MI           1wk MI
                                                              Maj. OH
     Cabot 4       8.83        1 wk MI         1 wk MI         20 wks        1 wk MI        1wk MI           1wk MI
                                                              Maj. OH
     Cabot 5       8.83        1 wk MI         1 wk MI        1 wk MI         20 wks        1wk MI           1wk MI
                                                                             Maj. OH
     Cabot 6       8.83        1 wk MI         1 wk MI        1 wk MI         20 wks        1wk MI           1wk MI
                                                                             Maj. OH
   Cabot Sta.       53         1 wk CI         1 wk CI        1 wk CI         1wk CI        1wk CI           1wk CI

 Turners Falls 1   1.85        1 wk MI         1 wk MI        1 wk MI        1 wk MI        1wk MI           1wk MI
 Turners Falls 2   0.35        1 wk MI         1 wk MI        1 wk MI        1 wk MI        1wk MI           1wk MI
 Turners Falls 3    1.3        1 wk MI         1 wk MI        1 wk MI        1 wk MI        1wk MI           1wk MI
 Turners Falls 5   1.35        1 wk MI         1 wk MI        1 wk MI        1 wk MI        1wk MI           1wk MI
 Turners Falls 7    1.4        1 wk MI         1 wk MI        1 wk MI        1 wk MI        1wk MI           1wk MI
 Turners Falls     6.25        1 wk CI         1 wk CI        1 wk CI        1 wk CI        1wk CI           1wk CI
      Sta.

    Scotland        2.2        1 wk MI         1 wk MI        1 wk MI        1 wk MI       1 wk MI          1 wk MI

   Taftville 1     0.41
   Taftville 2     0.42
   Taftville 3     0.44
   Taftville 4     0.38
   Taftville 5     0.38
 Taftville Sta.    2.03        1 wk MI         1 wk MI        1 wk MI        1 wk MI       1 wk MI          1 wk MI
</Table>

<Page>
                                  EXHIBIT 7

                           HYDRO MAINTENANCE SCHEDULE

<Table>
<Caption>
  Station/unit      MW       Year 2000       Year 2001      Year 2002      Year 2003      Year 2004        Year 2005
  ------------      --       ---------       ---------      ---------      ---------      ---------        ---------

<S>                <C>     <C>           <C>              <C>             <C>             <C>              <C>
    Tunnel 1       1.05
    Tunnel 2       1.05
   Tunnel Sta.      2.1        1 wk MI         1 wk MI        1 wk MI        1 wk MI       1 wk MI          1 wk MI
     Bantam S         0.3          3 dy MI         3 dy MI           3 dy MI         3 dy MI      3 dy MI       3 dy MI

  Bulls Bridge 1      1.4        1 wk MI          1 wk MI          1 wk MI          1 wk MI
  Bulls Bridge 2      1.4        1 wk MI          1 wk MI          1 wk MI          1 wk MI
  Bulls Bridge 3      1.4        1 wk MI          1 wk MI          1 wk MI          1 wk MI
  Bulls Bridge 4      1.4        1 wk MI          1 wk MI          1 wk MI          1 wk MI
  Bulls Bridge 5      1.4        1 wk MI          1 wk MI          1 wk MI          1 wk MI
  Bulls Bridge 6      1.4        1 wk MI          1 wk MI          1 wk MI          1 wk MI
  Bulls Bridge S      8.4        1 wk MI          1 wk MI          1 wk MI          1 wk MI       1 wk MI       1 wk MI

  Falls Village 1     3.67
  Falls Village 2     3.67
  Falls Village 3     3.67
  Falls Village S      11       2wks MI/CI      2wks MI/CI        2wks MI/CI      2wks MI/CI     2wks MI/CI    2wks MI/CI

  Robertsville 1      0.31
  Robertsville 2      0.31
  Robertsville S      0.62         3 dy MI         3 dy MI           3 dy MI         3 dy MI      3 dy MI       3 dy MI

  Rocky River 1        3
  Rocky River 2        3
  Rocky River 3      25.35
  Rocky River S      31.35         1 wk MI         1 wk MI           1 wk MI         1 wk MI      1 wk MI       1 wk MI

    Shepaug S         43.4          1wk MI         16 wk MI           1wk MI          1wk MI      1 wk MI       1 wk MI

   Stevenson 1        7.11          1wk MI          1wk MI            1wk MI          1wk MI      1 wk MI       1 wk MI
   Stevenson 2        7.11          1wk MI          1wk MI            1wk MI          1wk MI      1 wk MI       1 wk MI
   Stevenson 3        7.11          1wk MI          1wk MI            1wk MI          1wk MI      1 wk MI       1 wk MI
   Stevenson 4        7.57          1wk MI          1wk MI            1wk MI          1wk MI      1 wk MI       1 wk MI
   Stevenson S        28.9
</Table>

     Legend:
MI = Maintenance Inspection
Maj. OH = Major Overhaul
CI = Canal Inspection

                                       2
<Page>

                                    EXHIBIT 8

                       ESTIMATE OF TOTAL FIRST YEAR BUDGET

                                       3
<Page>

                                    EXHIBIT 9
                                QUARTERLY REPORT

                         NGS MANAGE AND OPERATE SERVICES
                                QUARTERLY REPORT
                       NORTHEAST GENERATION COMPANY SITES
                     CURRENT QUARTER ENDING _______________

OPERATIONS SUMMARY:

QUARTERLY STATISTICS:

<Table>
<Caption>
        Location     EAF      FOF    CF        Gross       Station         Net                     Comment
        --------     ---      ---    --        -----       -------         ---                     -------
                                             Generation    Service     Generation
                                             ----------    -------     ----------
------------------------------------------------------------------------------------------------------------------------------------
<S>                  <C>      <C>    <C>     <C>           <C>         <C>                         <C>
Falls Village
------------------------------------------------------------------------------------------------------------------------------------
Bulls Bridge
------------------------------------------------------------------------------------------------------------------------------------
Rocky River
------------------------------------------------------------------------------------------------------------------------------------
Shepaug
------------------------------------------------------------------------------------------------------------------------------------
Stevenson
------------------------------------------------------------------------------------------------------------------------------------
Robertsville
------------------------------------------------------------------------------------------------------------------------------------
Bantam
------------------------------------------------------------------------------------------------------------------------------------
Tunnel Hydro
------------------------------------------------------------------------------------------------------------------------------------
Tunnel ICU
------------------------------------------------------------------------------------------------------------------------------------
Taftville
------------------------------------------------------------------------------------------------------------------------------------
Scotland
------------------------------------------------------------------------------------------------------------------------------------
Northfield Mtn
------------------------------------------------------------------------------------------------------------------------------------
Cabot
------------------------------------------------------------------------------------------------------------------------------------
Turners Falls #1
------------------------------------------------------------------------------------------------------------------------------------

YEAR TO DATE STATISTICS

<Page>

        Location     EAF      FOF    CF        Gross       Station         Net                     Comment
        --------     ---      ---    --        -----       -------         ---                     -------
                                             Generation    Service     Generation
                                             ----------    -------     ----------
------------------------------------------------------------------------------------------------------------------------------------
Falls Village
------------------------------------------------------------------------------------------------------------------------------------
Bulls Bridge
------------------------------------------------------------------------------------------------------------------------------------
Rocky River
------------------------------------------------------------------------------------------------------------------------------------
Shepaug
------------------------------------------------------------------------------------------------------------------------------------
Stevenson
------------------------------------------------------------------------------------------------------------------------------------
Robertsville
------------------------------------------------------------------------------------------------------------------------------------
Bantam
------------------------------------------------------------------------------------------------------------------------------------
Tunnel Hydro
------------------------------------------------------------------------------------------------------------------------------------
Tunnel ICU
------------------------------------------------------------------------------------------------------------------------------------
Taftville
------------------------------------------------------------------------------------------------------------------------------------
Scotland
------------------------------------------------------------------------------------------------------------------------------------
Northfield Mtn
------------------------------------------------------------------------------------------------------------------------------------
Cabot
------------------------------------------------------------------------------------------------------------------------------------
Turners Falls #1
------------------------------------------------------------------------------------------------------------------------------------
</Table>

                                       2
<Page>

<Table>
<Caption>
NGC Expenses           This Quarter        Year to Date         Year End                           Comment
------------           ------------        ------------         --------                           -------

------------------------------------------------------------------------------------------------------------------------------------
<S>                    <C>                 <C>                  <C>                                <C>
M&OS Fixed Fee
------------------------------------------------------------------------------------------------------------------------------------
Add'l O&M
------------------------------------------------------------------------------------------------------------------------------------
Approved Capital
------------------------------------------------------------------------------------------------------------------------------------
Add'l Captital
------------------------------------------------------------------------------------------------------------------------------------
Other
------------------------------------------------------------------------------------------------------------------------------------
</Table>

COMMENTS

                                       3

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00032-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00032-of-00352.parquet"}]]