Document:

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                                                                   Exhibit 10.6

                      OPERATIONS AND MAINTENANCE AGREEMENT

                                     BETWEEN

                         TENASKA GEORGIA PARTNERS, L.P.

                                       AND

                            TENASKA OPERATIONS, INC.

                            DATED September 10, 1999

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<S>                                                                                                              <C>
1.    DEFINITIONS ..............................................................................................  1

2.    SCOPE OF SERVICES ........................................................................................  5

   2.1   PURPOSE ...............................................................................................  5

   2.2   CHANGES IN OPERATION AND MAINTENANCE ..................................................................  5

   2.3   OPERATIONAL SERVICES ..................................................................................  5
      2.3.1    General Requirements ............................................................................  5
         (a)   Pre-Commercial Operating Period .................................................................  6
         (b)   Commercial Operating Period .....................................................................  9
      2.3.2    Operating Reports ............................................................................... 12
      2.3.3    Opening the Interconnections .................................................................... 13
      2.3.4    Staffing ........................................................................................ 13
      2.3.5    General Operation ............................................................................... 13

   2.4 ELECTRICAL GENERATING OPERATIONS ........................................................................ 13
      2.4.1 Energy Delivery .................................................................................... 13
      2.4.2 Coordination with PECO ............................................................................. 13
      2.4.3 Plant Maintenance and Scheduled Outages ............................................................ 14
         (a)   Scheduled Outages ............................................................................... 14
         (b)   Forced Outage. .................................................................................. 15
      2.4.4    Operation on Backup Fuel ........................................................................ 16
      2.4.5    Metering ........................................................................................ 16
      2.4.6    Disconnection by Utility ........................................................................ 16
      2.4.7    Inspection ...................................................................................... 16
      2.4.8    Access .......................................................................................... 17
      2.4.9    Inspection of Charts and Records ................................................................ 17

   2.5   PROCESS WASTE WATER DISPOSAL .......................................................................... 17

   2.6   PLANT MAINTENANCE ..................................................................................... 17
      2.6.1    Monthly Maintenance Reports ..................................................................... 19

   2.7   INVENTORY AND TESTED CAPACITY ......................................................................... 19
      2.7.1    Tests ........................................................................................... 20

   2.8   PLANT PERMITS ......................................................................................... 20

3.    TERM OF THE AGREEMENT .................................................................................... 20

   3.1   TERM .................................................................................................. 20

4.    TESTING OF THE PLANT ..................................................................................... 21

   4.1   ACCESS DURING TESTING ................................................................................. 21

5.    COMPENSATION AND PAYMENT ................................................................................. 21

   5.1   OPERATING ACCOUNT ..................................................................................... 21

   5.2   PRE-COMMERCIAL OPERATING PERIOD BUDGET AND COMPENSATION ............................................... 21

   5.3   OPERATING BUDGET ...................................................................................... 23

   5.4   COMPENSATION DURING COMMERCIAL OPERATING PERIOD ....................................................... 24

   5.5   DETERMINATION OF AVAILABILITY PERCENTAGES ............................................................. 26

   5.6   ADJUSTMENT FOR ESCALATION ............................................................................. 26
</TABLE>

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<TABLE>
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<S>                                                                                                              <C>
6.    FURTHER AGREEMENTS ....................................................................................... 27

   6.1   LICENSES, APPROVALS AND PERMITS ....................................................................... 27

   6.2   FUEL AND WATER ........................................................................................ 27

   6.3   ACCESS ................................................................................................ 27

7.    WARRANTIES ............................................................................................... 28

   7.1   WARRANTY OF OPERATOR .................................................................................. 28

   7.2   REMEDIES .............................................................................................. 29

   7.3   NO IMPLIED WARRANTIES ................................................................................. 29

8.    TERMINATION OF AGREEMENT ................................................................................. 29

   8.1   OWNER TERMINATION ..................................................................................... 29

   8.2   TERMINATION DUE TO PLANT SALE,  LEASE OR OPERATOR'S DEFAULT ........................................... 29

   8.3   CONTINUED PERFORMANCE DURING DISPUTE .................................................................. 31

   8.5   TERMINATION - PROJECT AGREEMENTS ...................................................................... 32

   8.6   TERMINATION -CHANGE IN OWNERSHIP ...................................................................... 33

9.    INDEMNITY ................................................................................................ 33

   9.1   INDEMNIFICATION OF OWNER .............................................................................. 33

   9.2   INDEMNIFICATION OF OPERATOR ........................................................................... 33

   9.3   NOTICE OF CLAIM AND CLAIM FOR INDEMNITY ............................................................... 34

10.   INSURANCE ................................................................................................ 34

   10.1  CONSTRUCTION CONTRACTOR INSURANCE ..................................................................... 34

   10.2  OPERATOR INSURANCE .................................................................................... 34
      (a)   Worker's Compensation .............................................................................. 34
      (b)   Liability Insurance ................................................................................ 35

   10.3 OWNER INSURANCE ........................................................................................ 35
      10.3.1 All Risk Property and Boiler and Machinery Insurance .............................................. 35
      10.3.2 Liability Insurance ............................................................................... 36

   10.4     SUBMISSION OF CERTIFICATES OF INSURANCE ............................................................ 36

   10.5     WAIVER OF SUBROGATION .............................................................................. 37

   10.6     UNAVAILABILITY OF COVERAGE ......................................................................... 37

   10.7     NO LIMITATION OF LIABILITY ......................................................................... 37

   10.8     INDEPENDENT CONTRACTOR'S INSURANCE ................................................................. 38

   10.9     OWNER'S EQUIPMENT .................................................................................. 38

   10.10    FAILURE TO INSURE .................................................................................. 38

11.   LIABILITY LIMITATIONS .................................................................................... 38

   11.1     DAMAGES ............................................................................................ 38
</TABLE>

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<TABLE>
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<S>                                                                                                              <C>
12.   DISPUTE - CONTINUING AGREEMENT PERFORMANCE ............................................................... 39

   12.1     UNASSISTED SETTLEMENT .............................................................................. 39

   12.2     MEDIATION .......................................................................................... 39

   12.3     LITIGATION ......................................................................................... 40

13.   FORCE MAJEURE ............................................................................................ 40

   13.1     FORCE MAJEURE ...................................................................................... 40

   13.2     CHANGE OF LAW ...................................................................................... 42

   13.3     REMEDY FOR FORCE MAJEURE TERMINATION ............................................................... 42

14.   MISCELLANEOUS PROVISIONS ................................................................................. 43

   14.1     ASSIGNMENT ......................................................................................... 43

   14.2     AUTHORITY TO PROCURE GOODS AND SERVICES ............................................................ 44

   14.3     CONFIDENTIALITY OF INFORMATION ..................................................................... 45

   14.4     CONFIDENTIAL ....................................................................................... 45

   14.5     EXCEPTIONS TO CONFIDENTIALITY ...................................................................... 46

   14.6     LENDER APPROVAL .................................................................................... 46

   14.7     BOOKS, RECORDS, ACCESS THERETO ..................................................................... 46

   14.8     NOTICES ............................................................................................ 47

   14.9     REPRESENTATIVES .................................................................................... 48

   14.10    EQUAL EMPLOYMENT OPPORTUNITY ....................................................................... 48

   14.11    ENTIRE AGREEMENT ................................................................................... 48

   14.12    NO WAIVER .......................................................................................... 48

   14.13    SEVERABILITY ....................................................................................... 49

   14.14    APPLICABLE LAW ..................................................................................... 49

   14.15    COMPLIANCE WITH GOVERNMENTAL REQUIREMENTS .......................................................... 49

   14.16    EXCLUDED REPRESENTATIONS AND INTERESTS ............................................................. 49

   14.17    LIMIT OF LIABILITY ................................................................................. 49

   14.18    COUNTERPARTS ....................................................................................... 50

   14.19    PROJECT AGREEMENTS ................................................................................. 50

   14.20    NO JOINT VENTURE ................................................................................... 50

   14.21    CORPORATE AUTHORIZATION ............................................................................ 51

   14.22    LIENS .............................................................................................. 52

   14.23    SET OFF ............................................................................................ 52

   14.24    RELEASE OF INFORMATION AND SITE VISIT APPROVAL ..................................................... 52

   14.25    CONTRACTS WITH AFFILIATES .......................................................................... 53
</TABLE>

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                      OPERATIONS AND MAINTENANCE AGREEMENT

         THIS OPERATIONS AND MAINTENANCE AGREEMENT ("AGREEMENT") dated as of
this 10th day of September, 1999, is by and between Tenaska Georgia Partners,
L.P., a Georgia limited partnership, having its principal place of business at
Omaha, Nebraska, hereinafter called "Owner", and Tenaska Operations, Inc., a
Delaware corporation, having its principal place of business at Omaha,
Nebraska,hereinafter called "Operator."

         WHEREAS, Owner desires that Operator provide initial startup support
during turnover, testing and operation, operate and maintain the completed Plant
and perform certain other defined services under the terms and conditions set
forth in this Operations and Maintenance Agreement (the "Agreement");

         NOW THEREFORE, in consideration of the premises contained in this
Agreement, the Parties hereto, intending to be legally bound, agree as follows:

1.       DEFINITIONS

         The following terms when used in this Agreement shall have the
following meanings (such meanings to be equally applicable to the singular and
plural forms thereof):

         "AFFILIATE" means, as to any Person, another Person which, directly or
         indirectly, controls or is controlled by or under common control with,
         such other Person. For purposes of this definition, the concept of
         "control", when used with respect to any specified Person, shall
         signify the possession of the power to direct the management and
         policies of such Person, directly or indirectly, whether through the
         ownership of voting securities or partnership or other ownership
         interests, by contract or otherwise.

         "AGENCY  SUPPLIERS" means those entities with whom contractual
         agreements for Materials and services have been entered into by
         Operator acting as agent for Owner pursuant to Section 14.2.

         "AGREEMENT" means this agreement as amended, supplemented, restated, or
         otherwise modified from time to time.

         "ANNUAL AVAILABILITY PERCENTAGE" is defined in the Power Purchase
         Agreement,, except that, for purposes of this Agreement, adjustments
         shall be made in the computation of the Annual Availability Percentage
         so that Operator is in no way penalized or disadvantaged by
         unavailability of the Plant due to (i) turbine malfunction (the cause
         of which is not contributed to by Operator), (ii) unavailability of
         natural gas as fuel for the Plant caused by a failure of gas supply or
         transportation, or (iii) the inability to export energy from the Plant
         because of the unavailability of the Utility's transmission system.

         "AVAILABILITY ADJUSTMENT" is defined in Section 5.4(c).

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         "BANKRUPTCY EVENT" means, with respect to a Party, (a) a general
         assignment by that Party for the benefit of its creditors, (b) any
         action taken or initiated for the winding-up or liquidation of that
         Party or for the appointment of a receiver, trustee or similar officer
         for it or any of its revenues or assets, or (c) the institution by or
         against that Party of liquidation proceedings or other proceedings for
         relief under any bankruptcy Law or any other Law for the relief of
         debtors.

         "CHANGE OF LAW" is defined in Section 13.2(a).

         "COMMERCIAL OPERATING PERIOD" means the period of time between
         Commercial Operation and the termination of this Agreement.

         "CONFIDENTIAL" is defined in Section 14.4.

         "CONSTRUCTION AGREEMENT" means the Engineering, Procurement and
         Construction Agreement between Owner and Construction Contractor for
         construction of the Plant as from time to time amended, supplemented,
         or otherwise modified.

         "CONSTRUCTION CONTRACTOR" means the prime contractor for construction
         of the Plant that is party signatory to the Construction Agreement.

         "CONTRACT YEAR" is defined in the Power Purchase Agreement.

         "CREDIT AGREEMENT" means the Construction and Term Loan and
         Reimbursement Agreement among Owner and the Lenders, as from time to
         time amended, supplemented, otherwise modified, for financing
         construction of the Plant.

         "DATE OF COMMERCIAL OPERATION" is defined in the Power Purchase
         Agreement.

         "DISPUTE" is defined in Section 12.

         "DISPUTE NOTICE" is defined in Section 12.1.

         "DISPUTE PROCEDURE" is defined in Section 12.

         "EFFECTIVE DATE" means the date set forth in the first paragraph of
         this Agreement.

         "FORCE MAJEURE" is defined in Section 13.1(a).

         "FORCED OUTAGE" is defined in the Power Purchase Agreement.

         "INTERCONNECTION AGREEMENT" is defined in the Power Purchase Agreement.

         "INTERCONNECTION FACILITIES" is defined in the Power Purchase
         Agreement.

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         "LAW" means any act and any requirement, permit, ordinance, standard,
         code, rule, resolution or regulation of any governmental authority or
         agency (federal, national, state, municipal, local or other) including
         all environmental and hazardous waste laws which are applicable to the
         Plant and which are at any time applicable to performing the services.

         "LENDERS" means all construction lenders and all subsequent lenders
         that provide financing for the Plant.

         "LONG TERM SERVICE AGREEMENT" means the Long Term Parts & Long Term
         Service Contract between Owner and General Electric International
         Incorporated, as from time to time amended, supplemented, or otherwise
         modified.

         "MAINTENANCE SERVICES" is defined in Section 2.6(a).

         "MATERIALS" means all consumables, tools and spare parts required to
         operate and maintain the Plant.

         "MEDIATION NOTICE" is defined in Section 12.2.

         "METERING EQUIPMENT" means the meters and measuring equipment at each
         Point of Delivery to measure capacity and energy delivered by the Plant
         to PECO

         "OPERATING ACCOUNT" is defined in Section 5.1.

         "OPERATING BUDGET" is defined in Section 5.3(a).

         "OPERATOR'S REPRESENTATIVE" means the person designated in writing by
         Operator and authorized to act on behalf of Operator under this
         Agreement.

         "OWNER'S REPRESENTATIVE" means the person designated in writing by
         Owner and authorized to act on behalf of Owner under this Agreement.

         "PARTY(IES)" means Owner or Operator, or both, as appropriate.

         "PECO" means PECO Energy Company, a Pennsylvania corporation.

         "PERSON" means an individual, partnership, limited liability company,
         corporation, business trust, joint stock company, trust, unincorporated
         association, joint venture, governmental authority or other entity of
         whatever nature.

         "PLANT" is defined in Article I of the Power Purchase Agreement.

         "PLANT MANUALS" means the manuals prepared by Operator and approved by
         Owner, including but not limited to operation, maintenance,
         administration, chemistry, environmental quality assurance/quality
         control and safety manuals using information from the equipment
         manufacturers, Construction Contractor, Operator's experience and other

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         sources which are to be used as the basis for operation of the Plant in
         accordance with generally acceptable industry practices and Prudent
         Utility Practice.

         "PLANT PERMITS" is defined in Section 6.1.

         "POINTS OF DELIVERY" is defined in the Power Purchase Agreement.

         "POWER PURCHASE AGREEMENT" means the Power Purchase Agreement between
         Owner and, PECO as from time to time amended, supplemented, or
         otherwise modified, a composite conformed copy of which is attached
         hereto as Exhibit A.

         "PRE-COMMERCIAL OPERATING BUDGET" is defined in Section 5.2(a).

         "PRE-COMMERCIAL OPERATING PERIOD" means the time period between the
         Effective Date of this Agreement and the Date of Commercial Operation.

         "PROJECT AGREEMENTS" is defined in Section 14.19.

         "PRUDENT UTILITY PRACTICE" is defined in the Power Purchase Agreement.

         "REQUEST FOR PAYMENT" is defined in Section 7.1.

         "SCHEDULED DATE OF COMMERCIAL OPERATION" is defined in the Power
         Purchase Agreement.

         "SCHEDULED OUTAGES" is defined in the Power Purchase Agreement.

         "SCOPE OF SERVICES" means the services set out in Section 2.

         "SERC" means the Southeastern Electric Reliability Council.

         "SITE" OR "PLANT SITE" means the real property related to the Plant.

         "SUBCONTRACTOR" means any entity, including but not limited to
         Affiliates of Operator, contracting directly with Operator or with any
         contractor or subcontractor of any tier under Operator (not including
         Agency Suppliers) to perform service or supply material to the Plant.

         "SYSTEM" means the equipment and all associated components including
         but not limited to piping, valves, wiring, controls and components
         required to perform a given function or combination of functions of the
         Plant.

         "TERM" is defined in Section 3.1.

         "TERMINATION PAYMENT" is defined in Section 8.2(d).

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         "TESTED CAPACITY" is defined in Section 2.7(b).

         "TESTING PERIOD" is defined in Section 4.1.

         "TRANSITION PERIOD" defined in Section 8.2(c).

         "UTILITY" shall have the meaning set forth for the term "Local Utility"
         in the Power Purchase Agreement.

         "YEAR" means calendar year from January 1 through December 31.

2.       SCOPE OF SERVICES

2.1      PURPOSE

         The purpose of this Agreement is to establish the terms and conditions
         pursuant to which Operator shall perform its management and operating
         and maintenance services including providing initial startup support
         during the Pre-Commercial Operating Period, testing, operation,
         maintenance and management of the Plant, all of which Operator shall
         perform in accordance with the terms and conditions of this Agreement
         and in accordance with Owner's obligations under the Project
         Agreements.

2.2      CHANGES IN OPERATION AND MAINTENANCE

         Owner may request Operator to make reasonable changes to the services
         outlined in this Section 2 and Operator shall use reasonable efforts to
         make such requested changes, so long as such changes are reasonably
         related to the operation and maintenance of the Plant, and Operator is
         technically capable of making such changes. Owner shall bear the cost
         for the changes on a cost reimbursement basis.

2.3      OPERATIONAL SERVICES

2.3.1    GENERAL REQUIREMENTS

         Operator shall provide skilled personnel, procedures, training, and
         administrative, management, and professional/technical services
         necessary for the safe and reliable start-up, commissioning, operation,
         and maintenance of the Plant, in accordance with this Agreement.

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         (a)      PRE-COMMERCIAL OPERATING PERIOD

                  During the Pre-Commercial Operating Period, without limitation
                  of its other obligations contained in this Agreement, Operator
                  shall, in accordance with the standards set forth in this
                  Agreement:

                  (i)      Provide the services of a plant manager and a project
                           manager to represent Operator during the
                           Pre-Commercial Operating Period to implement the
                           obligations of this Section 2.3.1(a) and to oversee
                           the smooth transition of the Plant from construction
                           to Commercial Operation;

                  (ii)     Provide assistance to Owner, as reasonably requested,
                           with the execution of Owner's responsibilities
                           relative to construction and operation of the Plant.
                           This task includes, but is not limited to, such
                           things as the preparation of punch lists related to
                           construction deficiencies, preparation of
                           applications for licenses and permits, and oversight
                           of warranty and punch list repairs;

                  (iii)    Review Construction Contractor planning and Plant
                           engineering design with regard to Plant reliability,
                           availability and maintainability and provide comments
                           to Owner. Operator shall review design manuals,
                           system descriptions, tool lists, spare parts lists,
                           training programs, and operation methodology of the
                           Plant prepared by Construction Contractor and provide
                           comments to Owner;

                  (iv)     Review Plant/machinery plans, specifications and
                           drawings with respect to their impact on long term
                           Plant operations and maintenance and provide
                           recommendations to Owner;

                  (v)      Plan implementation programs to meet the operating
                           and reporting requirements set forth in this
                           Agreement, including references from the Power
                           Purchase Agreement, Interconnection Agreement, Plant
                           Permits, and all applicable Laws;

                  (vi)     Provide site-specific Plant Manuals related to
                           operation of the Plant including operations and
                           maintenance procedures, and policies and procedures
                           related to administration, safety, training,
                           environmental quality assurance and quality control,
                           and water chemistry control. In order to facilitate
                           the preparation of the Plant Manuals, Owner shall
                           provide the following data and information to
                           Operator seven (7) months prior to the Scheduled Date
                           of Commercial Operation: (1) P&IDs of Plant systems,
                           (2) electrical drawings of Plant equipment, (3) logic
                           diagrams, (4) control wiring diagrams and drawings,
                           (5) vendor manuals and drawings of Plant Systems and
                           equipment, (6) hard copies of control System screens,
                           (7) Plant layout drawings, and (8) System
                           descriptions;

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                  (vii)    Develop an overall plan for the operation of the
                           Plant including procedures to be developed and
                           implemented, in accordance with the Project
                           Agreements, Plant Permits, all applicable Laws and
                           environmental controls, and submit for Owner
                           approval;

                  (viii)   Prepare the Pre-Commercial Operating Budget nine (9)
                           months prior to the Scheduled Date of Commercial
                           Operation and submit it for Owner approval;

                  (ix)     Work with the Owner and Construction Contractor to
                           develop mutually agreeable procedures for Systems
                           turnover, including appropriate tagging and lockout
                           protocols;

                  (x)      Under supervision of the Construction Contractor,
                           support the Construction Contractor with Plant
                           startup and testing activities. Operator shall not be
                           responsible to provide supervision, construction
                           utilities, procure for, construct or direct startup
                           of the Plant. This task includes operating the Plant
                           under the direction of the Construction Contractor in
                           accordance with the Construction Agreement and in
                           accordance with this Agreement and operating and
                           maintaining Plant Systems as they are turned over to
                           Operator. Any disagreement between Operator and
                           Construction Contractor with respect to Operator's
                           obligations shall immediately be referred by Operator
                           to Owner's Representative;

                  (xi)     Perform routine maintenance and scheduled maintenance
                           actions on Plant Systems and equipment as they are
                           turned over to Operator;

                  (xii)    Prepare a maintenance plan for the Plant to include
                           planning for Scheduled Outages, handling of Forced
                           Outages, preventive and predictive maintenance
                           philosophy, and implementation of the Long Term
                           Service Agreement;

                  (xiii)   Prepare lists of the initial inventory of tools and
                           spare parts to be purchased for maintenance and
                           repair of the Plant and its equipment. Set up the
                           Owner/Operator-approved procurement system at the
                           Plant and purchase as agent for Owner the initial
                           inventory of tools, spare parts, consumables, and
                           other supplies required for operation and maintenance
                           of the Plant;

                  (xiv)    Set up and implement the inventory control system for
                           the Plant. Install computer software as required,
                           train user personnel, integrate the software with the
                           Plant's purchasing and accounting systems and
                           initiate vendor contacts;

                  (xv)     Recruit, hire, transfer, or otherwise obtain
                           qualified personnel in accordance with the
                           Owner-approved mobilization plan prepared by Operator
                           for the Plant;

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                  (xvi)    Implement all personnel and human resources functions
                           including payroll, personnel records, benefit plans,
                           and insurance, and establish an Owner-approved
                           employee relations and community relations program;

                  (xvii)   Set up and implement in accordance with the
                           requirements of the Owner, and government agencies,
                           the Owner/Operator-approved accounting and payroll
                           systems, and Plant performance monitoring systems at
                           the Plant. Install computer software as required,
                           train office personnel and initiate all reporting
                           systems for accounting, budgeting and Plant
                           performance;

                  (xviii)  Develop an Owner approved Plant safety program and
                           implement Plant safety procedures in accordance with
                           the Plant safety manual;

                  (xix)    Review all Plant processes and equipment for their
                           impact on water chemistry/environmental control and
                           develop an overall plan and reporting system for the
                           Plant chemistry program;

                  (xx)     Prepare a plan nine (9) months prior to the Scheduled
                           Date of Commercial Operation to conduct initial
                           training of Plant personnel and submit it to Owner
                           for Owner approval. This pre-operational training
                           shall include, among other things, the following
                           subjects: Plant overview, Plant systems, major
                           equipment items, Plant safety, Plant environmental,
                           Plant emergency response, Plant control and emission
                           monitoring systems, water chemistry control, and
                           integrated Plant operations. Prepare training
                           materials, conduct classes, conduct system walkdowns,
                           and coordinate vendor training with overall operator
                           and maintenance training program. Training shall be
                           scheduled to be completed in time for Plant personnel
                           to support Plant startup and testing activities;

                  (xxi)    Send selected operations and maintenance personnel to
                           outside specialty schools to develop the skills
                           required for proper operation and maintenance of the
                           Plant;

                  (xxii)   Implement an employee qualification program that will
                           ensure continuous certification/qualification of all
                           operations and maintenance personnel;

                  (xxiii)  Set up a regulatory reporting program in accordance
                           with the Plant Permits and all applicable Laws;

                  (xxiv)   Develop a Spill Prevention Control and Countermeasure
                           Plan that meets the requirements of 40 CFR Part 112
                           and other applicable Laws;

                  (xxv)    Prepare a Solid and Hazardous Waste Management Plan
                           that describes the management of Plant-generated
                           wastes and meets all applicable Laws;

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                  (xxvi)   Prepare a plan to comply with Federal, State and
                           local noise standards and regulations;

                  (xxvii)  Establish contact with PECO, General Electric
                           International Incorporated and the Utility and
                           maintain good working relations with each of such
                           entities;

                  (xxviii) Create a filing system to store and retrieve all
                           information related to design, operation and
                           maintenance of the Plant;

                  (xxix)   Procure, for the account of the Owner, all Materials,
                           equipment, chemicals, supplies, services, and parts
                           required for daily operation and maintenance of the
                           Plant in accordance with the Owner-approved
                           Pre-Commercial Operating Budget;

                  (xxx)    In the event of personal injury or property damage
                           accident or incident, or mechanical failure or
                           breakdown at the Plant, act in accordance with
                           Prudent Utility Practice to minimize personal injury
                           or property damage accident or incident or mechanical
                           failure or breakdown at the Plant and to mitigate any
                           loss, injury and damage resulting from such event
                           provided that Operator shall be compensated by Owner
                           for reasonable costs outside the Pre-Commercial
                           Operating Budget incurred by Operator in complying
                           with this Section 2.3(a)(xxx); and

                  (xxxi)   Provide such other reasonable functions and services
                           as may be directed by Owner. Prior to implementation
                           of any such functions and services, Owner shall agree
                           to an appropriate amendment to the Pre-Commercial
                           Operating Budget covering any incremental operating
                           expenses to be incurred by Operator.

         (b)      COMMERCIAL OPERATING PERIOD

                  During the Commercial Operating Period, Operator will operate
                  and maintain the Plant in accordance with the standards set
                  forth in this Agreement. Operator shall continue applicable
                  services of the Pre-Commercial Operating Period and, without
                  limitation of its other obligations contained herein, shall:

                  (i)      Provide assistance to Owner pursuant to this
                           Agreement, including the preparation and coordination
                           of warranty claims, insurance claims, and license and
                           permit renewals;

                  (ii)     Maintain a filing system and update all Plant Manuals
                           and vendor service manuals, and arrange for updating
                           Plant facilities/System drawings to reflect the
                           Plant's current "as-built" configuration;

<PAGE>

                  (iii)    Prepare annual Operating Budgets in accordance with
                           this Agreement. Report to Owner monthly on the status
                           of the Operating Budget and process budget variance
                           reports, as required. To the extent Operator has the
                           information, Operator will meet requirements of Owner
                           for providing information to Lenders regarding the
                           operation of the Plant as set forth in the Credit
                           Agreement;

                  (iv)     Perform or arrange for all maintenance required on
                           all Plant Systems and equipment;

                  (v)      Maintain a predictive maintenance program and oversee
                           services provided by the predictive maintenance
                           Subcontractor and perform routine testing, record
                           keeping and performance/failure reporting activities;

                  (vi)     Arrange for scheduled inspections and overhauls on
                           major equipment items in accordance with the Long
                           Term Service Agreement and other maintenance
                           schedules. This shall include subcontracting for
                           major repairs between Owner and equipment suppliers
                           in accordance with the Owner's instructions and/or
                           coordinating unplanned maintenance and planned
                           maintenance under the Long Term Service Agreement;

                  (vii)    Arrange for necessary janitorial, garbage pickup,
                           snow removal, and landscape services and maintain all
                           access roads within the Plant Site in good repair and
                           open to traffic at all times;

                  (viii)   Schedule, coordinate and implement, as required,
                           calibration/testing of all gauges, meters and
                           recording devices related to the consumption of fuels
                           and water, and to the sale of electricity;

                  (ix)     Recruit, hire, transfer or otherwise obtain and
                           retain qualified personnel to maintain the staffing
                           levels and skill mix required for successful
                           long-term operation of the Plant;

                  (x)      Implement accounting procedures for the Plant
                           including payroll, cash disbursements and journals,
                           client accounting, accounts payable and fixed asset
                           management;

                  (xi)     Implement a cost-effective inventory control system
                           and install a computerized inventory management
                           system designed to ensure that equipment, spare
                           parts, Materials, supplies and tools are properly
                           stored, maintained in operable condition and
                           accounted for and that adequate supplies are
                           available at all times to support daily operation and
                           maintenance of the Plant;

                  (xii)    Install and commission a computerized maintenance
                           management system to effectively plan and control
                           maintenance operations for the Plant, including

<PAGE>

                           emergency maintenance, corrective maintenance,
                           preventative maintenance, safety inspections and
                           Scheduled Outages. The inventory control and
                           management system and maintenance management system
                           will be fully integrated with the Plant's purchasing
                           and accounting systems.

                  (xiii)   Conduct a community relations program with activities
                           coordinated with Owner and an employee relations
                           program designed to maintain an enhanced image of the
                           Plant in the community and maintain good employee
                           relations;

                  (xiv)    Prepare and submit periodic reports relative to daily
                           operation and maintenance of the Plant including
                           environmental compliance records, maintenance and
                           repair status, Plant operating data, and any other
                           information reasonably requested by Owner;

                  (xv)     Implement Spill Prevention Control and Countermeasure
                           Plan in compliance with the requirements of 40 CFR
                           Part 112 and other applicable Laws;

                  (xvi)    Comply with all applicable Laws regarding solid and
                           hazardous wastes;

                  (xvii)   Comply with Federal, State and local noise standards
                           and regulations;

                  (xviii)  Implement, or arrange for implementation of, Plant
                           security measures in accordance with an
                           Owner-approved Plant security plan;

                  (xix)    Implement a Plant safety program and report any
                           injuries in accordance with the requirements of Law
                           and to Owner;

                  (xx)     Implement a continuing program of training designed
                           to orient new employees, refresh/cross-train existing
                           employees, qualify/re-qualify operating personnel,
                           and keep all Plant personnel abreast of Plant safety
                           and environmental requirements and emergency
                           procedures;

                  (xxi)    Send new/replacement operations and maintenance
                           personnel to outside specialty schools to maintain
                           the skill levels required for proper operation and
                           maintenance of the Plant. Examples: I&E technicians
                           to DCS School and mechanics to turbine maintenance
                           school;

                  (xxii)   Implement a Plant chemistry program which shall
                           include minimizing chemical use and maximizing resin
                           life;

                  (xxiii)  Recommend Plant improvements and supervise
                           contractors, subcontractors and suppliers; and

<PAGE>

                  (xxiv)   Provide such other reasonable functions and services
                           as may be directed by Owner.

2.3.2    OPERATING AND MAINTENANCE REPORTS

         (a) Operator shall report to Owner electronically or in writing, on a
             monthly basis, the following information:

                  (i)    Hourly, daily and weekly electric energy generated and
                         the electric energy exported from the Plant to the
                         Utility grid and in total;

                  (ii)   Hourly, daily and weekly fuel consumption (natural gas
                         and fuel oil) stating by unit fuel flow and calorific
                         value;

                  (iii)  Daily and weekly makeup water received and pipeline
                         status;

                  (iv)   Weekly and monthly consumption of chemicals for water
                         treatment plant;

                  (v)    Annual inventory accounting;

                  (vi)   Daily personnel status;

                  (vii)  Records and results of any performance test requested
                         pursuant to Section 2.7(b) of this Agreement;

                  (viii) Emissions data in support of federal and state and
                         local reporting requirements;

                  (ix)   Wastewater effluent data in support of federal, state
                         and local permits; and

                  (x)    Any other information and report regarding the
                         operation of the Plant reasonably requested by Owner or
                         required by the Power Purchase Agreement; and

                  (xi)   All significant maintenance activities, summarized on a
                         monthly basis.

         (b)      Operator shall maintain performance data in accordance with
                  the then current standard Generating Availability Data System
                  (GADS) of the North American Electric Reliability Council
                  (NERC) and/or similar requirements. All GADS data is to be
                  reported on a monthly basis to Owner.

<PAGE>

2.3.3    OPENING THE INTERCONNECTIONS

         Operator shall immediately open the electrical connection between the
         Plant and the Interconnection Facilities upon request of Owner when
         inspection of the Plant has revealed a lack of maintenance or the
         records required by this Agreement, if Operator has been notified by
         Owner of such lack, and such lack has not been corrected within a
         reasonable period considering the circumstances of each request after
         such notice.

2.3.4    STAFFING

         Operator shall staff the Plant with experienced and competent personnel
         to monitor, operate and maintain the equipment, train and supervise
         personnel in the specific operation of the Plant in accordance with the
         equipment and the Project Agreements, and staff the control room of the
         Plant with at least one qualified operator during all hours when the
         Plant and/or switchyard is in operation.

2.3.5    GENERAL OPERATION

         Operator shall operate the Plant on a continuous, reliable and
         sustained basis and in a good and workmanlike manner in accordance
         with: (i) the terms and conditions of this Agreement and the Project
         Agreements, (ii) the Plant Manuals and written procedures, (iii)
         generally accepted practices for the operation of similar facilities,
         (iv) all equipment manufacturers' recommended procedures and
         warranties, (v) Prudent Utility Practice, (vi) applicable Law, (vii)
         the limitations of the design and construction of the Plant, (viii)
         Plant Permits and (ix) the requirements of insurance policies
         applicable to the Plant.

2.4      ELECTRICAL GENERATING OPERATIONS

2.4.1    ENERGY DELIVERY

         Operator shall operate the Plant so that all electrical energy
         generated at the Plant and delivered to PECO at each Point of Delivery
         shall be in accordance  with the Power Purchase Agreement.

2.4.2    COORDINATION WITH PECO

         (a)      Owner shall notify PECO and the Utility of the identity of and
                  contact information for Operator's Representative. Operator's
                  Representative so designated will be authorized by Owner to
                  administer the terms of these Sections 2.4.2 and 2.4.3 with
                  any representatives properly designated by PECO and/or the
                  Utility.

<PAGE>

         (b)      Operator shall maintain 24-hour telephone numbers (voice and
                  fax) that can be used by representatives of PECO and the
                  Utility to contact Operator's Representative.

         (c)      Notification under Sections 2.4.2 and 2.4.3 shall be by
                  telephone followed by telecopy unless explicitly stated
                  otherwise for a particular application.

         (d)      Operator shall timely perform all of the obligations and
                  requirements of Owner set forth in the Power Purchase
                  Agreement in order to coordinate scheduling with PECO.
                  Operator will work with PECO prior to Commercial Operation to
                  develop reliable telephone dispatch procedures for intra-day
                  scheduling which will ensure that telephonic dispatch notices
                  are not given by or on behalf of PECO without proper
                  authorization. Operator is entitled to rely upon telephonic
                  dispatch orders which it believes in good faith to have been
                  properly authorized by PECO.

         (e)      Operator shall operate the Plant on a continuous, reliable and
                  sustained basis until the end of the Commercial Operating
                  Period, subject to the following:

                  (i)      Shutdowns or interruptions at the direction of Owner,
                           PECO or the Utility; and

                  (ii)     Displacements and outages in accordance with Section
                           2.4.3. Operator shall, with Owner, PECO and the
                           Utility, coordinate operation of the Plant with the
                           Utility's electric system in accordance with Sections
                           2.4.2, 2.4.3 and 2.4.4.

2.4.3    PLANT MAINTENANCE AND SCHEDULED OUTAGES

         (a)      SCHEDULED OUTAGES

                  (i)      LONG TERM PREVENTIVE MAINTENANCE PROGRAM. Within
                           ninety (90) days after Commercial Operation,
                           Operator, with the approval of Owner, will furnish
                           PECO with a long-term preventative maintenance
                           program for each major item of equipment constituting
                           a part of the Plant. Such program shall reflect
                           planned outages for inspection, repair, maintenance
                           and overhaul and will be based, at least in part, on
                           manufacturer's recommendations and may be altered,
                           with the approval of Owner, from time to time by
                           reason of later manufacturers' releases pertaining to
                           major items of equipment of the Plant and Plant
                           operating experience.

                  (ii)     ANNUAL FORECAST OF SCHEDULE OUTAGE. No later than
                           ninety (90) days prior to April 1 of each Year,
                           Operator shall submit to PECO a schedule, as approved
                           by Owner, for the annual maintenance for the next
                           five (5) Contract Years and the level of capacity
                           available, if any, during such maintenance. The
                           annual maintenance will be scheduled in accordance
                           with the provisions of the Power Purchase Agreement
                           and submitted to

<PAGE>

                           PECO for approval in accordance with the Power
                           Purchase Agreement. In the event that PECO does not
                           approve the proposed annual maintenance schedule,
                           Operator shall work with PECO to arrive at an annual
                           schedule which is acceptable to PECO and Owner.

                  (iii)    RESCHEDULING OF OUTAGES. Operator, with the approval
                           of Owner, may shift the start date of an outage up to
                           seven (7) days, or extend a Scheduled Outage by up to
                           seven (7) days, by providing PECO with written notice
                           forty-five (45) days before the earlier of the
                           original Scheduled Outage start date or the new
                           Scheduled Outage start date, unless the change in the
                           outage start date or duration would result in more
                           units of the Plant being in a Scheduled Outage than
                           would have occurred under the original schedule, in
                           which case Operator will provide PECO with sixty-five
                           (65) days prior written notice for the outage change.

                  (iv)     NOTIFICATION. Not less than seven (7) days prior to a
                           Scheduled Outage, Operator shall notify PECO and the
                           Utility of the timing, expected duration and the
                           impact upon the Plant output. Prior to reducing the
                           Plant output for a Scheduled Outage, Operator shall
                           notify PECO and the Utility of the latest information
                           regarding the timing, the rate at which the Plant
                           will be removed, or ramped down, from service,
                           expected duration and the impact upon Plant output.
                           During the Scheduled Outage, Operator shall notify
                           PECO and the Utility of any changes to the expected
                           duration of the Scheduled Outage as soon as
                           practicable.

                  (v)      RETURN TO SERVICE. Operator shall notify PECO and the
                           Utility prior to returning the Plant to service
                           following a Scheduled Outage. Operator shall notify
                           Owner of all plans to return the Plant to service,
                           but shall not let such notification delay returning
                           the Plant to service. Such notification shall include
                           the timing of the start-up and the rate at which the
                           Plant will be returned, or ramped up, to service.

         (b)      FORCED OUTAGE

                  (i)   NOTIFICATION. Upon the occurrence of an event
                        necessitating a Forced Outage, Operator shall as soon as
                        practicable notify PECO, the Utility and Owner of the
                        reason, timing, expected duration, the impact upon Plant
                        output, and the scheduling flexibility of each Forced
                        Outage.

                  (ii)  UPDATES. During any Forced  Outage, Operator shall
                        notify Owner, PECO and the Utility of any changes to the
                        expected duration of the outage as they become known.

                  (iii) RETURN TO SERVICE. Operator shall not return the Plant
                        to service following a full or partial outage without
                        notifying PECO and the Utility. Operator shall

<PAGE>

                        notify Owner of all plans to return the Plant to
                        service, but shall not let such notification delay
                        returning the Plant to service. Such notification shall
                        include the timing of the start-up and the ramp up rate
                        of that portion of the Plant returning to service.

         (c)      OUTAGE REPORTS

                  PECO may, from time to time, request a report of the cause of
                  any Plant outage and the actions taken by Operator to correct
                  the situation. Operator shall provide such reports upon
                  request of PECO and with Owner approval.

2.4.4    OPERATION ON BACKUP FUEL

         During the period of any interruption of the Plant's primary fuel
         supply, Operator shall include, with hourly generation forecasts
         prepared under Section 2.4.2(d), updated estimates of the remaining
         backup fuel supply.

2.4.5    METERING

         (a)      Operator shall perform all inspections and testing of meters
                  required of Owner under the Interconnection Agreement in
                  accordance with the requirements of such agreement and shall
                  provide the Utility and PECO with access to observe such
                  inspection and testing, as applicable. Operator, with approval
                  from Owner, may request a Utility to perform additional tests
                  of its meters at any time.

         (b)      The Utility is to give reasonable notice to Operator of the
                  time when any inspection or test of relevant meters shall take
                  place, and Operator and PECO may have representatives present
                  at the test or inspection.

2.4.6    DISCONNECTION BY UTILITY

         The Utility has the right to disconnect the Plant from the Utility's
         electric system or interrupt, suspend or curtail delivery, receipt or
         acceptance of delivery of energy at the applicable Points of Delivery
         in accordance with the provisions of the applicable Interconnection
         Agreement. Operator shall notify Owner immediately of any notice from
         the Utility of any such disconnection, interruption, suspension or
         curtailment and of the reasons for any such disconnection,
         interruption, suspension or curtailment.

2.4.7    INSPECTION

         Operator shall permit PECO to be present at the capacity test of the
         Plant pursuant to Section 5.01 of the Power Purchase Agreement.

<PAGE>

2.4.8    ACCESS

         Operator shall provide PECO and the Utility the right of sufficient
         access to the Plant for those purposes provided in the Power Purchase
         Agreement and the Interconnection Agreement, as applicable. Owner shall
         receive reasonable advance notice from Operator of any access required
         under this Section. Further, Operator shall provide such access subject
         to limitations required by Prudent Utility Practice.

2.4.9    INSPECTION OF CHARTS AND RECORDS

         The charts and records from the Metering Equipment shall remain the
         property of Owner and shall be kept on file by Operator for a period of
         not less than six (6) years. At any time, upon request of the Owner,
         the Operator will submit records and charts from the Metering
         Equipment, together with calculations therefrom, for inspection,
         verification and copying by Owner.

2.5      PROCESS WASTE WATER DISPOSAL

         (a)      Operator shall comply with the wastewater discharge permit for
                  the Plant and those agreements entered into by Owner with
                  adjacent landowners.

         (b)      Process wastewater will be metered and sampled by Operator
                  within the Plant according to requirements of the agencies
                  issuing wastewater permits. Operator will monitor ground water
                  quality according to any applicable requirements of the
                  wastewater discharge permit for the Plant and those agreements
                  entered into by Owner with adjacent landowners.

         (c)      Operator shall operate, inspect, repair and maintain all
                  equipment, structures and work necessary for the processing
                  and delivery of the Plant waste water from the Plant in
                  accordance with the limitations and specifications of any
                  wastewater permit and all other Laws regarding water disposal
                  now and hereafter in effect.

2.6      PLANT MAINTENANCE

         Operator shall perform Maintenance Services (as defined below) pursuant
         to Prudent Utility Practice and in a good and workmanlike manner, with
         competent personnel trained and experienced in those services which
         they perform, in accordance with: (i) the terms and conditions of this
         Agreement and the Project Agreements, including the Long Term Service
         Agreement, (ii) the Plant Manuals and written procedures, (iii)
         generally accepted practices for the maintenance of similar facilities,
         (iv) applicable Laws and Plant Permits, (v) manufacturer's recommended
         procedures and tolerances, and (vi) proper safety procedures and
         requirements for such services.

<PAGE>

         With respect to the Maintenance Services, Operator agrees that no used
         parts, equipment or components will be used without the consent of
         Owner. Operator shall secure, when possible, the regular and extended
         manufacturer/supplier warranties for new parts and equipment without
         additional cost. Operator shall secure regular warranties for used
         parts and equipment whenever possible. Operator shall cooperate with
         Owner to enforce manufacturer/supplier parts and equipment warranties.

         (a)      As used in this Agreement, the term "Maintenance Services" has
                  reference to the Plant, the Site and the Plant wastewater
                  and communication lines to the Utility's substation
                  (excluding the items for which the Utility is responsible
                  under the Interconnection Agreement) and means, in relation
                  to the Plant, normal maintenance services required in order
                  to keep the Plant in good working order and prevent the
                  Plant from prematurely deteriorating or wearing out. Such
                  normal maintenance services include visual inspection of the
                  Plant, cleaning and lubrication of parts thereof as
                  required, keeping the Plant Site safe and free of debris,
                  and taking of any other generally accepted protective
                  measures with respect thereto. Operator shall repair or
                  replace those parts of the Plant which have worn out,
                  deteriorated or ceased to function properly so as to restore
                  the component being replaced or repaired to good working
                  order. Operator shall procure on behalf of the Owner such
                  special tools, toolings and assembly devices as are required
                  to perform such services after obtaining budget approval
                  from Owner. Operator shall be responsible for all the
                  repairs, replacements, maintenance and upkeep of the Site,
                  the Plant and all other structures located thereon
                  including, without limitation: structural repair and
                  interior and exterior maintenance of buildings; repair of
                  access and Site roads or sidewalks; upkeep of trees,
                  underground systems and appurtenances, shrubbery, lawns or
                  other aesthetic improvements to land; and upkeep of sewers
                  and drainage systems.

         (b)      Operator will furnish Owner as part of each annual Operating
                  Budget its long-term (not less than five (5) years)
                  preventive maintenance program for each major item of
                  equipment of the Plant reflecting Scheduled Outages for
                  inspection, repair, maintenance and overhaul and coordinated
                  with the provisions of the Long Term Service Agreement. Such
                  program will be based, at least in part, on manufacturers'
                  recommendations and may be altered from time to time, upon
                  mutual agreement of Owner and Operator, by reason of more
                  recent manufacturers' releases pertaining to major items of
                  equipment of the Plant and experience of Operator in
                  operating the Plant; Owner or Operator will promptly advise
                  the other of any such changes. The specific times for
                  Scheduled Outages of the Plant will be scheduled annually in
                  advance by agreement of Owner and Operator so as to
                  coordinate Scheduled Outages with PECO as described in
                  Section 2.4.3(a) of this Agreement. Owner may, upon
                  reasonable advance written notice to Operator, require
                  Operator to adjust the projected time schedule for such
                  major Scheduled Outages (other than emergency repairs) as
                  necessary in order to comply with Owner's obligations under
                  the Long Term Service Agreement, the Power Purchase
                  Agreement and other Project Agreements.

<PAGE>

2.6.1    MONTHLY MAINTENANCE REPORTS

         Operator shall provide Owner on a monthly basis with a written report
         in a form acceptable to Owner of all repairs, replacements or
         maintenance performed on the Plant or any portion thereof within the
         previous month and of all major repairs or maintenance projected during
         the next month, together with the projected time schedule for such
         intended major repairs or maintenance. With respect to any such repair,
         replacement or maintenance performed, the report shall specify the
         equipment repaired, replaced or maintained and the reason therefor.

2.7      INVENTORY AND TESTED CAPACITY

         (a)      Operator, as agent for Owner, shall purchase with Owner's
                  approval an adequate initial inventory of spare parts, tools
                  and supplies, the adequacy of such inventory to be determined
                  with reference to the recommendations of Operator, equipment
                  manufacturers and providers of extended service agreements
                  including the Long Term Service Agreement and to minimize the
                  duration of outages. Operator shall provide Owner on an annual
                  basis a written report, in a form reasonably acceptable to
                  Owner, of all spare parts, tools and supplies.

         (b)      On an annual basis in accordance with the Power Purchase
                  Agreement, at the direction of Owner, Operator shall determine
                  the electrical output capability of the Plant ("Tested
                  Capacity"). Owner, at any time, may request and Operator shall
                  perform a performance test of the Plant using in-place station
                  meters. Determination of Tested Capacity shall be in
                  accordance with the procedures set forth in the Power Purchase
                  Agreement.

         (c)      Owner shall be given reasonable prior notice by Operator of
                  any performance test planned by Operator and shall have the
                  right to have representatives present during any performance
                  test. Operator shall furnish Owner with preliminary results
                  within forty-eight (48) hours after any performance test is
                  completed and final written results of any performance test
                  within ten (10) days after the test is completed.

         (d)      If either Owner or Operator determines that the performance
                  test was conducted in a manner or under conditions that make
                  the results of the test unrepresentative or inaccurate, then,
                  upon written notice to Owner or Operator, as the case may be,
                  which specifies the defects in the test and requests a retest,
                  Operator will rerun the test, with the defects corrected,
                  within a reasonable time after the notice; such notice must be
                  given within ten (10) days after the test results are provided
                  to Owner in a performance test final report.

         (e)      Operator shall operate the Plant in synchronization with the
                  Utility's system and subject to and in compliance with the
                  then-current established guidelines of the Utility and subject
                  to the Utility's reasonable directions. Operator shall be
                  responsible for the proper synchronization of the Plant
                  generators with the Utility's system. Operator shall indemnify
                  Owner for loss due to damages to the Utility's

<PAGE>

                  physical plant, electric system, or equipment to the extent
                  that any breach of this Agreement by Operator or negligence
                  on the part of Operator causes improper synchronization. The
                  provisions of Section 11 shall apply to this Section.

2.7.1    TESTS

         The tests to be performed by Operator shall include tests required
         under Project Agreements and other tests requested by Owner.

2.8      PLANT PERMITS

         As the same are procured, Owner will supply Operator with copies of all
         Plant Permits and copies of all applicable agreements with adjacent
         landowners. Operator shall become familiar with the Plant Permits and
         agreements with adjacent landowners. Operator shall operate and
         maintain the Plant, including the requirement to monitor, maintain
         quality assurance/quality control of monitoring equipment, keep
         records, notify proper authorities and Owner of any non-compliance, and
         report, with a copy to Owner, in such a manner as to comply with the
         Plant Permits and agreements with adjacent landowners.

3.       TERM OF THE AGREEMENT

3.1      TERM

         The primary term of this Agreement shall commence on the Effective Date
         and shall continue, subject to the provisions of this Agreement on
         termination, for a period of twenty-nine (29) years from the Date of
         Commercial Operation, except that the primary term shall automatically
         be extended thereafter in annual increments unless either Party
         notifies the other in writing no later than ninety (90) days prior to
         the end of the primary term or the anniversary of any subsequent
         extension term. The primary term and any extension term are sometimes
         collectively referred to herein as the "Term".

3.2      Both Owner and Operator shall have all rights provided by this
         Agreement, including their rights of termination, during any such
         extension.

<PAGE>

4.       TESTING OF THE PLANT

4.1      ACCESS DURING TESTING

         Prior to the period when the Plant is being tested for Commercial
         Operation, Operator shall have personnel trained and prepared to assist
         Construction Contractor and Owner in determining Mechanical Completion
         as defined in the Construction Agreement and to start the Plant for
         testing ("Testing Period"). Operator shall be responsible for the
         startup support of the Plant at Commercial Operation under the
         direction of a start-up manager selected by the Construction
         Contractor. After testing, Operator's responsibilities in respect to
         the Systems shall commence pursuant to Section 2.3.1(b).

5.       COMPENSATION AND PAYMENT

5.1      OPERATING ACCOUNT

         Operator shall not be required to bear the expense of funding the
         reimbursable operating expenses to the extent approved in the Operating
         Budget. Owner shall establish a bank account ("Operating Account") for
         the funding of reimbursable operating expenses. Owner shall deposit,
         once each month, sufficient funds in the Operating Account to cover all
         expenses set forth in the approved Operating Budget and anticipated to
         be paid during such month. Operator shall nominate officers or
         employees of Operator, to be approved by Owner, who shall have the
         written authority to sign checks against the Operating Account.
         Operator's expenditures shall be made in accordance with the guidelines
         established by the Operating Budget. Operator shall not make any
         unauthorized expenditures or withdrawals from the Operating Account and
         shall be responsible for such sums. In the event that there are
         insufficient funds in the Operating Account to satisfy expenses set
         forth in the approved Operating Budget, Operator shall notify Owner of
         such condition immediately after Operator has notice or knowledge
         thereof and Owner shall immediately make sufficient funds available in
         the Operating Account to cover such expenses. Operator shall submit
         documentation to Owner of expenditures by the fifteenth (15th) day of
         the subsequent month for the previous month.

5.2      PRE-COMMERCIAL OPERATING PERIOD BUDGET AND COMPENSATION

         (a)      Eleven (11) months prior to the Scheduled Date of Commercial
                  Operation, Operator shall submit the anticipated costs
                  associated with Operator's planned salary and benefit program
                  to Owner for Owner's approval, which approval shall not be
                  unreasonably withheld. If requested by Owner, and not later
                  than thirty (30) days prior to the date upon which Operator is
                  obliged to submit the Pre-Commercial Operating Budget (as
                  defined below) to Owner, Operator and Owner shall meet to

                                       21

<PAGE>

                  discuss the anticipated costs associated with planned salary
                  and benefits program. The approved salary and benefits program
                  shall form the basis for the pre-commercial operating budget
                  (the "Pre-Commercial Operating Budget").

         (b)      Nine (9) months prior to the Scheduled Date of Commercial
                  Operation,  Operator shall submit to Owner the
                  Pre-Commercial Operating Budget for approval by Owner. Owner
                  and Operator shall use all reasonable efforts to resolve all
                  budget differences. All documented and approved costs
                  described hereafter and included in the approved
                  Pre-Commercial Operating Budget and costs not included in
                  the Pre-Commercial Operating Budget but approved by Owner,
                  which are incurred by Operator pursuant to this Agreement,
                  shall be paid through the Operating Account: (i)(A) the
                  actual payroll cost in accordance with the approved
                  Pre-Commercial Operating Budget, for all of Operator's
                  employees involved in the operation of the Plant, including
                  paid absences; (B) the cost of payroll burden in accordance
                  with the following: (1) the actual cost of payroll taxes,
                  unemployment, insurance, and disability/workers'
                  compensation insurance; (2) the actual cost of
                  medical/dental/vision, life, long term disability and
                  accidental death and dismemberment insurance; (3) the actual
                  cost of the retirement and 401(k) plans, including plan
                  administration expenses, provided that such cost shall not
                  exceed nine percent (9%) of the actual payroll cost
                  described in Section 5.2(b)(i)(A) above; and (4) the actual
                  cost of any Owner-approved employee assistance and education
                  assistance plans, and (C) specific additional costs approved
                  by Owner in the Pre-Commercial Operating Budget; (ii)
                  non-labor expenses directly related to the operation of the
                  Plant as follows: (A) the actual cost of insurance premiums
                  for coverage required by Section 10, including deductibles
                  and self-insured retentions for loss directly arising out of
                  the Scope of Services, if paid by Operator, except as
                  otherwise provided in Section 5.2(c), (B) the relocation and
                  recruitment costs of employees, (C) training costs approved
                  by Owner, (D) costs for community and employee relations
                  services provided by non-Operator personnel approved by
                  Owner, (E) all costs, including attorneys' fees, expenses
                  and judgments and advisor costs associated with union and
                  organizing activities and contesting such activities and (F)
                  all costs associated with Plant employee disputes and
                  litigation, including attorneys' fees, expenses and judgments
                  and (iii) costs for non-incidental services related directly
                  to the operation of the Plant approved by Owner at rates
                  approved by Owner. In addition to the above costs during the
                  Pre-Commercial Operating Period, Operator shall invoice
                  Owner within fifteen (15) days of the commencement of the
                  Pre-Commercial Operating Period, for the amount of
                  Seventy-Five Thousand Dollars ($75,000) to cover all costs
                  of overhead during the Pre-Commercial Operating Period
                  ("Fixed Management Fee") which amount shall be paid to
                  Operator by Owner within twenty-five (25) days of receipt of
                  invoice.

         (c)      During or prior to the Pre-Commercial Operating Period, Owner
                  and Operator shall mutually agree upon the incentive criteria
                  for the Operator to earn an Incentive Fee (defined in Section
                  5.4(b) during the Pre-Commercial Operating Period and Owner
                  shall advise Operator of the information required to be
                  submitted by Operator to enable Owner to determine the amount
                  of the Incentive Fee. The maximum value

                                       22

<PAGE>

                  of the Incentive Fee shall be Seventy-Five Thousand Dollars
                  ($75,000). The Incentive Fee criteria shall include, but not
                  be limited to, the performance of Operator in following a
                  manpower plan, availability of the Plant during the
                  Pre-Commercial Operating Period, training personnel to run the
                  Plant and the ability of Operator to control spending in
                  accordance with the approved Pre-Commercial Operating Budget.
                  The Incentive Fee shall be paid to Operator within twenty (20)
                  days after Owner receives the information provided by Operator
                  to determine the amount of such Incentive Fee earned.

5.3      OPERATING BUDGET

         (a)      Ninety (90) days prior to the Scheduled  Date of Commercial
                  Operation, Operator shall prepare and submit to Owner an
                  Operating Budget for approval by Owner for the period from the
                  Date of Commercial Operation until December 31 of the Year in
                  which the Date of Commercial Operation occurred which shall
                  include information required by the Credit Agreement. After
                  the Date of Commercial Operation and at least one hundred
                  twenty (120) days prior to the effective date of each annual
                  budget, Operator shall submit to Owner a budget, which shall
                  include the information required by the Credit Agreement, for
                  approval by Owner for the next Year. Such budget shall be for
                  all reimbursable costs to be incurred in the operation of the
                  Plant and shall include, but not be limited to, all
                  reimbursable labor costs, expendable supplies, parts, office
                  equipment and supplies, training and travel expenses, tools,
                  subcontract maintenance, insurance and chemicals required to
                  operate the Plant in accordance with this Agreement
                  ("Operating Budget"). Owner and Operator shall use all
                  reasonable efforts to resolve all budget differences. If, with
                  respect to any operating year, Owner and Operator do not
                  resolve all budget differences, the most recently approved
                  Operating Budget (escalated by three and one-half percent
                  (3.5%)), without regard to amounts budgeted for extraordinary
                  or non-recurring items, but including all costs for the Long
                  Term Service Agreement and all contingency funds, shall be
                  applicable until an Operating Budget is approved for such
                  operating year.

         (b)      During any Operating Budget period Operator may request Owner
                  to approve an increase or decrease in the approved Operating
                  Budget, which approval shall not be unreasonably withheld.
                  Operator shall not make a change in the quality of the
                  services and/or equipment, alter the Scope of Services or
                  alter the equipment described in the approved Operating Budget
                  without the written consent of the Owner.

         (c)      Operator shall make payments from the Operating Account only
                  for expenses which are in the approved Operating Budget or
                  which are approved in writing by Owner.

         (d)      For the purposes of reviewing the performance of Operator in
                  managing the Operating Budget, such reimbursable costs as
                  fuel, service fees charged by the

                                       23

<PAGE>

                  Utility, property and ad valorem taxes, shall not be
                  considered. Operator will include and report all costs to
                  Owner as a part of the Operating Budget.

5.4      COMPENSATION DURING COMMERCIAL OPERATING PERIOD

         (a)      During the Commercial  Operating Period, the following actual
                  expenses shall be included in the annual Operating Budget and
                  paid through the Operating Account: (i)(A) the actual payroll
                  cost included in the approved Operating Budget, for all
                  Operator's employees directly involved in the operation of the
                  Plant, including paid absences in accordance with Operator's
                  normal policy; (B) the cost of payroll burden in accordance
                  with the following: (1) the actual cost of payroll taxes,
                  unemployment insurance premiums, and disability/workers'
                  compensation insurance premiums; (2) the actual cost of
                  medical/dental/ vision, life, long term disability and
                  accidental death and dismemberment insurance premiums; (3) the
                  actual cost of the retirement and 401(k) plans, including plan
                  administration expenses, provided that such cost shall not
                  exceed nine percent (9%) of the actual payroll cost described
                  in Section 5.4(a)(i)(A) above; and (4) the actual cost of any
                  Owner-approved employee assistance and education assistance
                  plans, and (C) specific additional costs approved by Owner in
                  the Operating Budget; (ii) non-labor expenses directly related
                  to the operation of the Plant as follows: (A) the actual cost
                  of insurance premiums for coverage required by Section 10,
                  including deductibles and self-insured retentions for loss
                  directly arising out of the Scope of Services, if paid by
                  Operator, (B) the relocation and recruitment costs of
                  employees, (C) training costs approved by Owner, and (D) costs
                  for community and employee relations services provided by
                  non-Operator personnel and approved by Owner, (E) all costs,
                  including attorneys' fees, expenses and judgments, and advisor
                  costs associated with union and organizing activities and
                  contesting such activities, and (F) all costs associated with
                  Plant employee disputes and litigation, including attorneys'
                  fees, expenses and judgments; and (iii) costs for
                  non-incidental services related directly to the operation of
                  the Plant approved by Owner at rates approved by Owner. In
                  addition to the above costs, Owner shall pay to Operator an
                  annual Fixed Management Fee of Two Hundred Twenty-Five
                  Thousand Dollars ($225,000). Operator shall invoice Owner for
                  the annual Fixed Management Fee at the rate of Eighteen
                  Thousand Seven Hundred Fifty Dollars ($18,750.00) per month
                  adjusted annually in accordance with Section 5.6(a) to cover
                  all costs of overhead which amount shall be paid to Operator
                  by Owner within twenty-five (25) days of receipt of invoice.

         (b)      Annually  during the  Commercial  Operating  Period,  Operator
                  shall be eligible to earn an incentive fee which shall be paid
                  on the basis of Owner's assessment of Operator's performance
                  against mutually agreed upon incentive criteria including, but
                  not limited to, Operator's ability to maintain spending within
                  the Operating Budget and manage the operation of the Plant in
                  an effective, efficient and professional manner ("Incentive
                  Fee"). The maximum value of the Incentive Fee to be earned for
                  the first full Year of the Commercial Operating Period and
                  each subsequent Year of this Agreement shall be One Hundred
                  Thousand Dollars

                                       24

<PAGE>

                  ($100,000) for each such period and shall be adjusted annually
                  for escalation in each subsequent Year in accordance with
                  Section 5.6(b). Each month the Incentive Fee will be invoiced
                  and paid at five percent (5%) of the maximum Incentive Fee
                  value for the current Year and in the event Operator does not
                  earn at least sixty percent (60%) of the maximum Incentive
                  Fee, then the unearned portion shall be returned to Owner. The
                  incentive criteria shall be determined prior to the beginning
                  of each Year other than the first partial year of the
                  Commercial Operating Period. The criteria for such partial
                  year will be developed seven (7) months prior to the Date of
                  Commercial Operation. Concurrently with developing the
                  incentive criteria, Owner and Operator shall develop the type
                  of information and the method of reporting to be used by
                  Operator to enable Owner to determine the amount of the
                  Incentive Fee. Operator's performance shall be evaluated and
                  reviewed with Operator on a quarterly basis. If Owner requests
                  additional information, Owner shall notify Operator within
                  seven (7) business days after receipt of the information by
                  Owner. The Incentive Fee earned for the Year shall be paid to
                  Operator within twenty (20) days after Owner receives
                  acceptable information or within twenty (20) days after the
                  expiration of such seven (7) business days if no request for
                  further information is made by Owner. In the event that the
                  period of Operator's performance being assessed by Owner ends
                  other than at the end of a calendar year, Owner shall pay
                  Operator for the earned Incentive Fee within sixty (60) days
                  of the end of such period. In the event that the period of
                  Operator's performance being assessed by Owner is less than a
                  full calendar year, the maximum Incentive Fee available for
                  payment to Operator shall be prorated on the basis of the
                  number of days in the period of Operator's performance being
                  assessed in relation to the number 365. The maximum Incentive
                  Fee available for payment to Operator shall be adjusted
                  annually for escalation in accordance with Section 5.6(b).

         (c)      For each Contract Year during the Commercial Operating Period,
                  there shall be an availability adjustment which shall vary
                  with the performance of Operator in maintaining the Annual
                  Availability Percentage for the Plant during the Contract Year
                  (the "Availability Adjustment"). If the Annual Availability
                  Percentage for the Contract Year is greater than ninety-seven
                  percent (97%) Operator shall be paid an Availability
                  Adjustment determined from the formula:

                                    [(A-97%) x 100/100%] x $25,000

                  where A is the Annual Availability Percentage for such
                  Contract Year.

                  If the Annual Availability Percentage for the Contract Year is
                  less than ninety-seven percent (97%), Operator shall pay an
                  Availability Adjustment to Owner determined from the formula:

                                    [(97%-A)x100/100%] x $25,000

                  where A is the Annual Availability Percentage for such
                  Contract Year, provided that for purposes of such formula, A
                  shall not be less than ninety-three percent 93%.

                                       25

<PAGE>

                  The maximum value of the Availability Adjustment to be paid
                  shall be Seventy-Five Thousand Dollars ($75,000) with the
                  maximum value adjusted annually for escalation in accordance
                  with Section 5.6(b).

                  Operator shall provide Owner with all information requested by
                  Owner to determine the Availability Adjustment. The
                  Availability Adjustment shall be paid annually by Owner or
                  Operator, as applicable, within thirty (30) days after the end
                  of each Contract Year. For any Contract Year of more or less
                  than 365 days duration, the amount of the Availability
                  Adjustment shall be adjusted by multiplying the Availability
                  Adjustment by a fraction, the numerator of which is the number
                  of days in such Contract Year and the denominator of which is
                  the number 365.

5.5      DETERMINATION OF AVAILABILITY PERCENTAGES

         (a)      The "Annual Availability Percentage" shall mean the Annual
                  Availability Percentage for the Contract Year as determined
                  pursuant to the Power Purchase Agreement.

         (b)      For purposes of computing the Availability Adjustment payable
                  by Operator to Owner as set forth in Section 5.4(c),
                  adjustments shall be made in the computation of the Annual
                  Availability Percentage so that Operator is in no way
                  penalized or disadvantaged by unavailability of the Plant due
                  to (i) turbine malfunction (the cause of which is not
                  contributed to by Operator), (ii) unavailability of natural
                  gas as fuel for the Plant caused by a failure of gas supply or
                  transportation, or (iii) the inability to export energy from
                  the Plant because of the unavailability of a Utility's
                  transmission system.

5.6      ADJUSTMENT FOR ESCALATION

         (a)      The amount of the Fixed  Management  Fee,  as set forth in
                  Sections 5.2(b) and 5.4(a) shall be adjusted annually. The
                  annual adjustment of each amount shall be in accordance with
                  the following equation:

                    FIXED MANAGEMENT FEE X (INDEX IN YEAR N)

                                   Base Index

                  The Base Index shall be Compensation per Hour-Non farm
                  Business for the Year 1999 as reported by the Department of
                  Labor, Bureau of Labor Statistics. The Index in Year N
                  represents the value of the index in each Year subsequent to
                  Year 1999. Since the index value may be revised after the
                  initial reporting, any effects of revision shall be made for
                  the prior year and credited or debited from future payments.
                  If no future payments are pending, then Owner and Operator
                  shall reconcile the difference within

                                       26

<PAGE>

                  one hundred eighty (180) days of first reporting of the index
                  using the most current value. In no year shall the value of
                  the Fixed Management Fee be less than the previous Year.

         (b)      The maximum annual amounts of the Incentive Fee, the
                  Availability Bonus and the Availability Adjustment shall be
                  escalated by three and one-half percent (3.5%) per Year
                  compounded on the first day of each Year beginning with
                  January 1, 2001.

6.       FURTHER AGREEMENTS

6.1      LICENSES, APPROVALS AND PERMITS

         Owner shall be responsible for obtaining and maintaining all federal,
         state and local permits, authorizations, franchises, licenses and other
         approvals necessary for the Plant to be legally authorized to operate.
         Operator shall provide full and reasonable continuing cooperation in
         obtaining and maintaining in effect all such permits, authorizations,
         franchises, licenses and other approvals necessary to permit it to
         operate the Plant ("Plant Permits"). Operator shall review Owner's
         applications for accuracy and completeness, as required. Operator shall
         be responsible for obtaining and maintaining all permits,
         authorizations, franchises, licenses and other approvals required for
         performance of Operator's services under this Agreement.

6.2      FUEL AND WATER

         Operator shall report to Owner the daily volume of natural gas and fuel
         oil consumed and the correlation of such with the forecasted electric
         generation plan. Owner shall supply Operator with water of sufficient
         quality and quantity to permit the uninterrupted operation of the
         Plant.

6.3      ACCESS

         Owner shall provide Operator and the agents, employees, Subcontractors
         and consultants of Operator access to the Plant to perform the services
         under this Agreement, provided that Operator shall give Owner
         reasonable prior notice to approve access to the Plant of any persons
         (other than direct employees of Operator) that Operator proposes to
         give access to the Plant to perform such services. Owner will notify
         Operator at least two (2) hours prior to the need for employees of PECO
         or the Utility to access the Plant site. As of the submission of the
         Pre-Commercial Operating Budget, Operator shall furnish Owner with a
         list of the employees engaged in the day-to-day operation of the Plant
         and shall inform Owner prior to changes in the list.

                                       27

<PAGE>

7.       WARRANTIES

7.1      WARRANTY OF OPERATOR

         Operator warrants and represents that the services performed by
         Operator and/or Subcontractors and Agency Suppliers shall be done in a
         good and workmanlike manner in accordance with the requirements of this
         Agreement, Prudent Utility Practice and standard industry practice and
         in accordance with the Plant Manuals. Operator, Subcontractors and
         Agency Suppliers shall be competent and appropriately licensed, to
         perform services and/or furnish Materials and equipment. Operator shall
         monitor all services performed by Operator and Subcontractors and
         Agency Suppliers. Operator shall carry out its obligations under
         Section 14.2 and shall utilize its best judgment, recognizing Owner's
         interest, to obtain the best warranty reasonably available from each
         Subcontractor and Agency Supplier. Operator shall require and use
         reasonable efforts to verify that all parts and equipment furnished
         meet manufacturer's description specifications and performance
         specifications and that the Suppliers comply with the terms and
         conditions of their contracts. Operator shall pay Subcontractors and
         Agency Suppliers in a timely manner and, subject to Owner's prior
         approval, all disputes with Subcontractors and Agency Suppliers shall
         be resolved expeditiously by Operator. Operator shall cooperate with
         Owner in the prosecution of any claims against such Subcontractors and
         Agency Suppliers.

         Operator shall operate the Plant in compliance with the Interconnection
         Agreement. Operator shall indemnify Owner for loss due to damages to
         any Utility's physical plant, electric system, or equipment to the
         extent that any breach of this Agreement or the Interconnection
         Agreement by Operator, such indemnity to be limited to damage amounts
         not covered by Owner's insurance. The provisions of Section 11 shall
         apply to this Section.

         Operator warrants and agrees, and by submission of each reimbursement
         request or invoice for payment of Subcontractors (a "Request for
         Payment") rewarrants, that:

         (i)      Title to all Materials (including spare parts, operating
                  manuals and procedures, and consumables) covered by a Request
                  for Payment will pass to Owner either by incorporation into
                  the Plant in the case of parts and consumables or upon payment
                  for any of such items, whichever occurs first;

         (ii)     Materials covered by previous Requests for Payment are free
                  and clear of liens, claims, security interests and
                  encumbrances and upon payment for equipment and other services
                  covered by a Request for Payment, no person shall have a right
                  to file a lien against the Plant or have a claim or security
                  interest with respect to such Materials and/or services; and

         (iii)    No interest in nor encumbrance on any Materials covered by a
                  Request for Payment will have been acquired or imposed or
                  retained by Operator or any other Person performing any
                  services or supplying any Materials with respect to the Plant.

                                       28

<PAGE>

7.2      REMEDIES

         Owner's remedies for Operator's breach of warranty set out in Section
         7.1 shall be the same as those set forth in this Agreement for default
         by Operator.

7.3      NO IMPLIED WARRANTIES

         ANY IMPLIED WARRANTIES BY OPERATOR OF MERCHANTABILITY, QUALITY,
         SUITABILITY AND FITNESS ARE EXCLUDED. OPERATOR'S WARRANTIES IN
         SECTION 7.1 ARE EXCLUSIVE AND IN LIEU OF ANY OTHER WARRANTIES, EXPRESS
         OR IMPLIED.

8.       TERMINATION OF AGREEMENT

8.1      OWNER TERMINATION

         Each right of Owner to terminate this Agreement, as set forth in this
         Agreement, is in addition to and not in lieu of any other right of
         Owner to terminate this Agreement. In the event of termination by
         Owner, Owner shall have the right to require Operator to remove itself,
         its employees, Subcontractors, and equipment from the Plant and the
         right to specify the Transition Period in accordance with Section
         8.2(c).

8.2      OWNER TERMINATION EVENTS

         (a)      At any time after the Effective Date of this Agreement, Owner
                  may terminate this Agreement if the Plant is sold or leased to
                  a third party (other than an Affiliate), or if Owner's
                  interest in said Plant is sold to a third party (other than an
                  Affiliate), or if the Plant or a material portion of the Plant
                  is condemned or taken by a public authority by giving Operator
                  at least thirty (30) days prior written notice.

         (b)      Owner shall have the right to terminate this Agreement after
                  thirty (30) days' notice to Operator if any of the following
                  events occur, by delivering a written notice of termination to
                  Operator:

                  (i)      Operator undergoes a Bankruptcy Event;

                  (ii)     Operator fails in any material respect to comply
                           with applicable Laws or Plant Permits other than a
                           failure to file any report required thereunder, or
                           any Plant permit is lost or is no longer in effect by
                           fault of Operator and is not subject to renewal
                           (including by way of refusal by the permitting
                           authority to renew any material Plant Permit as a
                           result of an act or omission of Operator);

                                       29

<PAGE>

                  (iii)    A material default or breach occurs (and is not
                           cured or curable) under any Project Agreement as a
                           result of any failure by Operator to comply with the
                           provisions of this Agreement;

                  (iv)     Operator fails in any material respect to obtain
                           or maintain in effect any insurance required to be
                           obtained by Operator under Section 10, and such
                           failure continues for fifteen (15) days;

                  (v)      Operator fails to pay any amount when due under this
                           Agreement and such failure continues for fifteen (15)
                           days;

                  (vi)     Any lien or other encumbrance is filed against or
                           attaches to the Plant or any portion thereof or the
                           Plant Site as a result of any failure by Operator or
                           any Subcontractor or any Agency Supplier to comply
                           with the provisions of this Agreement and such lien
                           or other encumbrance is not removed or appropriate
                           security therefor is not provided within fifteen (15)
                           days; or

                  (vii)    Operator fails in any material respect to perform
                           its obligations hereunder (other than any failure
                           that is the subject of another event of default) and
                           such failure continues for thirty (30) days after
                           receipt from Owner of notice specifying such failure;

         (c)      Owner has the right to specify a reasonable period not to
                  exceed six (6) months following the effective date of
                  termination of this Agreement as a period of transition
                  ("Transition Period") during which Operator will continue to
                  operate the Plant in accordance with this Agreement. During
                  this Transition Period, Operator shall also cooperate with
                  Owner in planning and implementing the closing of the Plant or
                  cooperate with Owner's lessee or purchaser or a successor
                  operator, as applicable to facilitate the transition. The
                  Parties shall mutually agree to a schedule for the orderly
                  removal of Operator from its operational responsibilities.
                  Operator shall also provide Owner, Owner's lessee or purchaser
                  or a successor operator (if such operator is some entity other
                  than Owner) reasonable access to the Plant to facilitate the
                  orderly transition of responsibilities.

         (d)      Upon Owner's  termination of this Agreement  pursuant to
                  Section 8.2(a) above and in addition to all reimbursement
                  costs otherwise authorized under this Agreement, Operator
                  shall be entitled to receive a termination payment (the
                  "Termination Payment") equal to the sum of: (i) the direct
                  cost reasonably incurred by Operator in withdrawing its
                  personnel and retaining its personnel during the Transition
                  Period (including any reasonable severance expenses and
                  employee retainage bonus expenses incurred by Operator, if
                  such expenses were approved by Owner in advance, which
                  approval shall not be unreasonably withheld) are consistent
                  with Operator's corporate policies and result solely from
                  termination of this Agreement) from the Site and otherwise
                  demobilizing its operations at the Plant, and (ii) the direct
                  costs, including damages, attorney fees, expenses and
                  judgments reasonably incurred by Operator in terminating
                  contracts entered into by Operator with

                                       30

<PAGE>

                  Subcontractors to carry out Operator's contractual obligations
                  under this Agreement. Operator shall not voluntarily modify or
                  terminate any contract entered into by Operator pursuant to
                  Section 14.2 without the prior written consent of Owner,
                  except as ordered by a court of competent jurisdiction.
                  Operator shall document the costs claimed under clause (i)
                  above to Owner's reasonable satisfaction and shall supply
                  Owner with copies of the Subcontractor invoices covering
                  amounts claimed under clause (ii) above. After the effective
                  date of termination, Operator shall submit an invoice to Owner
                  for the Termination Payment with the supporting information
                  and documents referred to above and Owner shall pay such
                  invoice within thirty (30) days after receipt of same unless
                  it disputes certain elements thereof, in which event only the
                  undisputed portion of the Termination Payment needs to be paid
                  within such 30-day period and the dispute over the remainder
                  of the Termination Payment shall be submitted to the Dispute
                  Procedure pursuant to Section 12.

         (e)      Operator shall have no further obligations to Owner under this
                  Agreement after Operator has vacated the Plant, except
                  pursuant to Sections 7, 14.3, 14.4, 14.5, 14.7, 14.22 and
                  14.24. Notwithstanding this cessation of obligations, neither
                  Party shall be relieved from any obligations or liabilities
                  for actions or inactions prior to the effective date of
                  termination and during the Transition Period.

8.3      CONTINUED PERFORMANCE DURING DISPUTES

                  During the Dispute Procedure, as described in Section 12, all
                  terms of this Agreement including the application of Section
                  13 shall remain in full force and effect and the Parties shall
                  continue to perform their obligations. If Operator has been
                  terminated and Owner has demanded that Operator vacate the
                  Plant premises in accordance with Section 8.1 then only
                  Sections 7, 8, 14.3, 14.4, 14.5, 14.7, 14.22 and 14.24 shall
                  survive the termination of this Agreement. Notwithstanding
                  this cessation of obligations, neither Party shall be relieved
                  from any obligations or liabilities for actions or inaction
                  prior to the effective date of termination or during the
                  Transition Period.

8.4      OWNER'S DEFAULT

         Owner shall be in default, except as otherwise provided in Section
         8.4(a), under this Agreement (i) if Owner undergoes a Bankruptcy Event
         , (ii) in the event that it fails to make payment of all amounts
         payable in accordance with this Agreement, or (iii) in the event of a
         material breach hereunder or an unexcused failure to perform any of its
         other obligations hereunder whether by repudiation, anticipatory breach
         or otherwise.

         (a)      Any alleged default for nonpayment by Owner may be remedied
                  within fifteen (15) days after Operator tenders notice of such
                  default to Owner and the Lenders. Operator agrees not to
                  exercise its rights under this Section 8.4 if the Lenders pay
                  to

                                       31
<PAGE>

                  Operator the sums due Operator under this Agreement within the
                  time specified in the consent and agreement between Operator
                  and the Lenders.

         (b)      Any alleged events of default other than default for
                  nonpayment may be remedied within fifteen (15) days after
                  Operator notifies Owner and the Lenders' collateral agent of
                  such breach, specifying the acts or omission on which the
                  notice is based, or if the remedy would reasonably take more
                  than fifteen (15) days then Owner or such collateral agent
                  shall have such additional period of time to remedy such
                  default as may be reasonable under the circumstances so long
                  as Owner commences to remedy same within such 15-day period
                  and thereafter continues diligently to remedy same within a
                  reasonable time consistent with the exercise of best efforts
                  in the prosecution thereof.

8.5      TERMINATION - PROJECT AGREEMENTS

         If any permit or license is not granted or if after being granted is,
         for any reason, no longer in effect, or if any executed Project
         Agreement is legally terminated by a party to such agreement, and as a
         result of any of the foregoing actions, Owner elects to terminate
         operation of the Plant, Owner may terminate this Agreement by delivery
         of written notice to Operator within thirty (30) days after the
         occurrence of such event.

         (a)      Upon Owner's termination of this Agreement under this Section
                  8.8, in addition to all rights for reimbursement of costs set
                  forth in this Agreement, Operator shall be entitled to receive
                  the Termination Payment as set forth in Section 8.2(c),
                  provided Operator complies with Section 8.2(c) and subject to
                  the rights of Owner set forth in Section 8.2(c).

         (b)      If, after such termination, the operation of the Plant is to
                  be restarted and if Owner is in control of the hiring of the
                  Plant operator, Owner shall give Operator notice of such
                  restart as soon as Owner knows of the Plant restart and shall
                  also notify Operator of the date by which Operator must begin
                  operation. Operator shall have two (2) calendar days within
                  which to notify Owner that Operator will accept the
                  obligations to operate the Plant. In the event of such
                  acceptance by Operator within the time provided, Owner and
                  Operator shall enter into a new agreement having terms
                  identical to the terms of this Agreement, excluding those
                  terms which are no longer applicable because of a passage of
                  time and the revision of those terms which are affected by
                  changes to Lenders agreements, permits, licenses, which shall
                  be agreed upon by the Parties.

         (c)      Owner may not terminate this Agreement pursuant to this
                  Section 8.5 if any Project Agreement is terminated by Owner
                  solely for the purpose of terminating this Agreement or if any
                  Project Agreement is terminated as a plan or arrangement,
                  between Owner and any Person, to replace Operator.

                                       32

<PAGE>

8.6      TERMINATION - CHANGE IN OWNERSHIP

         Operator may elect to terminate this Agreement upon sixty (60) days
         advance written notice to Owner in the event that (i) twenty percent
         (20%) or more of the equity ownership percentage (as set forth in
         Owner's partnership agreement) in Owner is transferred by any partner
         in Owner during any six (6) month period during the term of this
         Agreement or (ii) an Affiliate of Tenaska, Inc., ceases to act as the
         managing partner of Owner. Owner has the right to specify a reasonable
         period, not to exceed six (6) months following the effective date of
         notice of termination, as a period of transition ("Transition Period")
         during which Operator will continue to operate the Plant in accordance
         with this Agreement. During this Transition Period, Operator shall also
         cooperate with Owner in planning and implementing an orderly and
         efficient transition of Operator's obligations and responsibilities
         under this Agreement to the replacement operator selected by Owner. The
         Parties shall mutually agree to a schedule for the orderly removal of
         the Operator from its operational responsibilities. Operator shall also
         provide Owner and the successor operator (if such operator is some
         entity other than Owner) reasonable access to the Plant to facilitate
         the orderly transition of responsibilities. Operator shall have no
         further obligations to Owner under this Agreement after the date of
         termination, except for Sections 7, 14.3, 14.4, 14.5, 14.7, 14.22 and
         14.24. Notwithstanding this cessation of obligations, neither Party
         shall be relieved from any obligations or liabilities for actions or
         inactions prior to the effective date of termination and during the
         Transition Period.

9.       INDEMNITY

9.1      INDEMNIFICATION OF OWNER

         Subject to the limitations set forth in Section 11, Operator agrees to
         protect, indemnify, and save harmless Owner, partners in Owner, their
         Affiliates, parents, their respective agents, servants, officers,
         directors, stockholders, employees, successors and assigns from and
         against all claims, losses, liabilities, damages, costs, expenses,
         demands, judgments, and causes of action of every kind and character
         for personal injury to any Person, death or damage to property of any
         Person, including without limitation, PECO and the Utility, Operator's
         agents, servants, and employees, as well as Subcontractors and the
         agents, servants, and employees of Subcontractors and Agency Suppliers,
         to the extent that the claim, loss, liability, damage, cost, expense,
         demand, judgment or cause of action shall have resulted from or in any
         manner arises out of or in connection with the negligence or willful
         misconduct of Operator or Subcontractors or breach of this Agreement by
         Operator.

9.2      INDEMNIFICATION OF OPERATOR

         Subject to the limitations set forth in Section 11, Owner shall
         protect, indemnify and save harmless Operator, its subsidiaries,
         Affiliates and parents, and their respective agents, servants,
         officers, directors, stockholders employees, successors and assigns
         from and against any and all claims, losses, liabilities, damages,
         costs, expenses, demands,

                                       33

<PAGE>

         judgments, and causes of action of every kind and character for
         personal injury to any Person or death or damage to property of any
         Person, including without limitation, PECO and the Utility, Operator's
         agents, servants, and employees, as well as Subcontractors and the
         agents, servants, and employees of Subcontractors, to the extent that
         the claim, loss, liability, damage, cost, expense, demand, judgment, or
         cause of action shall have resulted from or in any manner arises out of
         or in connection with the negligence or willful misconduct of Owner or
         Owner's subcontractors (other than Operator) or the breach of this
         Agreement by Owner.

9.3      NOTICE OF CLAIM AND CLAIM FOR INDEMNITY

         Promptly after receipt by an indemnified party of any claim or notice
         of the commencement of any proceeding as to which the indemnity
         provided for in Section 9.1 or 9.2 applies, the indemnified party shall
         notify the Party providing the indemnity of such fact. The indemnifying
         Party shall assume on behalf of the indemnified party and conduct with
         due diligence and in good faith the defense thereof with counsel
         reasonably satisfactory to the indemnified party; provided, that the
         indemnified party shall have the right to be represented therein by
         advisory counsel of its own selection and at its own expense; and
         provided further, that if the defendants in any such action include
         both the indemnifying Party and one or more indemnified parties and an
         indemnified party shall have reasonably concluded that there may be
         legal defenses available to the indemnifying party, the indemnified
         party shall have the right to select up to one separate counsel to
         participate in the defense of such action on its own behalf at the
         indemnifying Party's expense.

10.      INSURANCE

10.1     CONSTRUCTION CONTRACTOR INSURANCE

         Throughout the Pre-Commercial Operating Period, Owner shall maintain
         and/or cause Construction Contractor to maintain in effect commercial
         general liability insurance, automobile liability insurance, workers'
         compensation insurance and excess or umbrella liability insurance, and
         Owner shall cause Operator to be included as an additional insured on
         all general liability policies.

10.2     OPERATOR INSURANCE

         (a)      WORKER'S COMPENSATION

                  Prior to hiring any employees, and continuing throughout the
                  term of this Agreement, Operator shall maintain in effect
                  workers' compensation insurance as required by the laws of the
                  State of Georgia. In addition Operator shall maintain
                  employer's liability coverage in the minimum amount of
                  $5,000,000.

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<PAGE>

         (b)      LIABILITY INSURANCE

                  During the term of this Agreement, Operator shall obtain and
                  maintain in effect the following liability insurance, provided
                  that the required limits may be satisfied by any combination
                  of primary or excess insurance at Operator's sole discretion.

                  (i)      Commercial General Liability Insurance, including
                           broad form third party property damage, personal
                           injury, premises-operations, independent contractors,
                           products-completed operations, blanket broad form
                           contractual liability, third party bodily injury and
                           explosion, collapse and underground damage (XCU)
                           coverage. The policy shall contain limits of
                           $1,000,000 each occurrence and in the aggregate.

                  (ii)     Automobile Liability Insurance for all owned,
                           non-owned and hired vehicles with limits of liability
                           of $1,000,000 combined single limit.

                  (iii)    Excess or umbrella liability insurance following the
                           terms of the primary insurance set forth in Section
                           10.2 (a) and Section 10.2 (b)(i) and (ii) above, with
                           a combined single limit of $15,000,000 per occurrence
                           and in the aggregate.

                  (iv)     Owner shall review coverages to be obtained by
                           Operator hereunder from time to time and shall have
                           the right to change such coverages provided that
                           Operator shall be reimbursed by Owner for any cost
                           associated with said change.

10.3     OWNER INSURANCE

10.3.1   ALL RISK PROPERTY AND BOILER AND MACHINERY INSURANCE

         (a)      Prior to Commercial Operation and throughout the Commercial
                  Operating Period, Owner shall provide and maintain in effect
                  insurance for "all risk" property damage including boiler and
                  machinery with limits determined by Owner in its sole
                  discretion. Owner shall provide or cause the Builder's Risk
                  policy provided by Construction Contractor to provide coverage
                  to include any performance and hot testing prior to the
                  successful testing of the Plant for Commercial Operation.

         (b)      The Builders' Risk and the All Risk Property and Boiler and
                  Machinery insurance policies shall be endorsed to include
                  Operator as an additional insured with respect to any damage
                  that may ensue from a covered peril as a result of, or in
                  connection with, services performed by Operator under this
                  Agreement.

                                       35

<PAGE>

10.3.2   LIABILITY INSURANCE

         Prior to Commercial Operation and throughout the Commercial Operating
         Period, Owner shall provide and maintain in effect the following
         liability insurance, provided that the required limits may be satisfied
         by any combination of primary or excess insurance at Owner's sole
         discretion.

         (a)      Commercial General Liability Insurance, including broad form
                  third party property damage, personal injury,
                  premises-operations, independent contractors,
                  products-completed operations, blanket broad form contractual
                  liability, third party property damage and explosion, collapse
                  and underground damage (XCU) coverage. The policy shall
                  contain limits of $1,000,000 each occurrence and in the
                  aggregate.

         (b)      Automobile Liability Insurance for all owned, non-owned and
                  hired vehicles with limits of liability of $1,000,000 combined
                  single limit.

         (c)      Excess or umbrella liability insurance following the terms of
                  the primary insurance set forth in Section (a) and Section (b)
                  above, with a combined single limit of $15,000,000 per
                  occurrence and in the aggregate.

10.4     SUBMISSION OF CERTIFICATES OF INSURANCE

         Within thirty (30) days of the Effective Date, the Party required to
         provide insurance shall furnish to the other Party certificates of
         insurance evidencing the required coverages, and providing that the
         Party not carrying the insurance must be given at least thirty (30)
         days' prior written notice of any change in, nonrenewal or cancellation
         of such coverages, except for nonpayment of premiums, which shall be
         cancelable within ten (10) days prior written notice. If requested each
         such insurance policy, or of an insurance policy renewal, shall be
         accompanied by evidence which is reasonably satisfactory to the Party
         not carrying the insurance of the payment in full of the premium (or
         the current premium installment, if the premium is payable in
         installments) for such insurance policy or insurance policy renewal.
         Certificates of insurance shall be sent or delivered to:

                  If to Owner:

                           Tenaska Georgia Partners, L.P.
                           c/o Tenaska, Inc.
                           Suite 400
                           1044 North 115th Street
                           Omaha, Nebraska  68154-4446
                           Attention: Michael C. Lebens, Vice President

                                       36

<PAGE>

                  If to Operator:

                           Tenaska Operations, Inc.
                           Suite 400
                           1044 North 115th Street
                           Omaha, Nebraska  68154-4446
                           Attention: H. Dwight Howell, Vice President

10.5     WAIVER OF SUBROGATION

         Owner and Operator will require the issuers of the insurance policies
         required by this Section 10 to waive, by endorsement on such policies,
         any rights of subrogation against the other Party and its directors,
         officers or employees and the officers, directors, stockholders and
         employees of the partners in Owner, arising from payments made by such
         insurers under such policies. In addition, all policies, except
         Worker's Compensation Insurance, shall provide for waivers of
         subrogation in favor of the Lenders, and any other parties requested by
         Owner including the Utility.

10.6     UNAVAILABILITY OF COVERAGE

         The foregoing provisions of this Section 10 notwithstanding, if any
         insurance coverage specified above is unavailable or is available only
         in an amount less than that required, the Party required to provide
         such insurance shall:

         (i)      In the event that any insurance policy required to be obtained
                  by either Party shall become commercially unreasonable either
                  as to price or deductible amount, at the option of the other
                  Party, the Party obligated to provide such insurance shall
                  insure for such lesser amount or the other Party shall take
                  out such insurance in an amount agreed upon by the Party
                  obligated to provide such insurance.

         (ii)     The Party obligated to provide such insurance shall have a
                  duty to semi-annually confirm that such required insurance is
                  still unavailable on commercially reasonable terms. To the
                  extent such insurance again becomes available, the Party
                  obligated to provide such insurance shall immediately become
                  obligated to secure the same after coordinating with the other
                  Party to avoid creating a duplication of coverage if insurance
                  has been provided pursuant to (i) above.

10.7     NO LIMITATION OF LIABILITY

         The provisions of any insurance hereunder shall not be construed to
         limit the liability of either Party under this Agreement. The
         provisions of this Section 10.7 shall not limit the provisions of
         Section 11.

                                       37

<PAGE>

10.8     INDEPENDENT CONTRACTOR'S INSURANCE

         (a)      Owner shall require all of Owner's independent contractors
                  (other than Operator and Agency Suppliers) to obtain, maintain
                  and keep in force during the time in which they are engaged in
                  performing services at the Plant Site reasonably adequate
                  coverage in accordance with Owner's normal practice and
                  reasonably acceptable to Operator and furnish Operator with
                  acceptable evidence of such insurance upon its request. Such
                  insurance carrier shall have no recourse against Operator for
                  payment of premiums and claims.

         (b)      Operator shall require all Subcontractors and Agency Suppliers
                  to obtain, maintain and keep in force during the time in which
                  they are engaged in performing services at the Plant Site
                  reasonably adequate coverage in accordance with Operator's
                  normal practice and reasonably acceptable to Owner and furnish
                  Owner with acceptable evidence of such insurance upon its
                  request.

10.9     OWNER'S EQUIPMENT

         All equipment, supplies and Materials belonging to Owner or used by or
         on behalf of Owner shall be brought to and kept at the Plant at Owner's
         sole expense and Operator shall be responsible for the care and custody
         of such equipment, supplies and Materials.

10.10    FAILURE TO INSURE

         In the event that the Party obligated to provide insurance hereunder
         fails to provide any of the insurance or the coverage amounts required
         by this Section 10, the other Party shall have the option of paying the
         premium to secure the same and charging the reasonable cost of the same
         to the Party obligated to provide insurance pursuant to the limits of
         coverage in this Agreement.

11.      LIABILITY LIMITATIONS

11.1     DAMAGES

         IN NO EVENT, WHETHER AS A RESULT OF BREACH OF CONTRACT, WARRANTY, TORT
         (INCLUDING NEGLIGENCE), STRICT LIABILITY, INDEMNITY, OR OTHERWISE,
         SHALL A PARTY TO THIS AGREEMENT BE LIABLE TO THE OTHER PARTY FOR ANY
         SPECIAL, CONSEQUENTIAL, INCIDENTAL, INDIRECT, PUNITIVE OR EXEMPLARY
         DAMAGES, INCLUDING, WITHOUT LIMITATION, DAMAGES FOR LOSS OF REVENUE,
         LOSS OF PROFIT, LOSS OF TAX BENEFIT, LOSS OF USE, LOSS ARISING FROM
         OWNER'S PAYMENT TO PECO OF AN AVAILABILITY ADJUSTMENT UNDER THE POWER
         PURCHASE AGREEMENT, LOSS ARISING FROM

                                       38

<PAGE>

         OWNER'S FAILURE TO RECEIVE AN AVAILABILITY INCENTIVE PAYMENT FROM
         PECO UNDER THE POWER PURCHASE AGREEMENT OR THE COST OF REPLACEMENT
         POWER.

12.      DISPUTE - CONTINUING AGREEMENT PERFORMANCE

         In the event of a dispute between Owner and Operator with respect to
         the interpretation or performance of this Agreement, including any
         dispute which may result in a claim ("Dispute"), the procedures
         contained in Sections 12.1, 12.2 and 12.3 shall apply ("Dispute
         Procedure"). Throughout the Dispute Procedure and during litigation,
         the Parties shall continue to carry out their respective obligations in
         good faith pursuant to the provisions of this Agreement without
         prejudice to the rights of Owner and Operator to terminate as
         specifically provided in this Agreement and the rights of Owner as
         provided in Section 8.1.

12.1     UNASSISTED SETTLEMENT

         Prior to litigation, an aggrieved Party must institute and complete
         this Section 12.1 of the Dispute Procedure. The aggrieved Party shall
         notify the other Party in writing of the Dispute then existing
         ("Dispute Notice"). To institute the Dispute Procedure, the Dispute
         Notice must specifically state that the aggrieved Party is invoking the
         Dispute Procedure of this Section 12. Within thirty (30) days following
         the date of such Dispute Notice, Owner and Operator shall meet to
         confer and negotiate in good faith to resolve the Dispute.

12.2     MEDIATION

         If the Dispute is not resolved after compliance with the requirements
         of Section 12.1, either Party may, within thirty (30) days, submit the
         Dispute for mediation before a single impartial mediator selected by
         the American Intermediation Service, upon written notice to the other
         party ("Mediation Notice"). If the Dispute is timely submitted to a
         mediator, within thirty (30) days following the date of such Mediation
         Notice, the mediator shall meet in Dallas, Texas with an officer of
         each Party who shall be duly authorized, on behalf of the Party he or
         she represents, to settle such Dispute. Owner and Operator agree to
         participate in good faith in such mediation meetings and negotiations
         related thereto. Neither Party shall institute litigation with respect
         to a Dispute prior to the earlier of (a) the conclusion of mediation
         proceedings or (b) the date which is sixty (60) days after the date of
         the Mediation Notice, provided that if litigation is instituted before
         a Mediation Notice is given pursuant to Section 14.8, the Mediation
         Notice shall be of no effect and the Parties shall proceed with the
         litigation.

                                       39
<PAGE>

12.3     LITIGATION

         If the Dispute is not resolved after compliance with the requirements
of Sections 12.1 and 12.2, either Party may, in its sole discretion, submit the
Dispute to litigation.

         In addition to the specific rights of termination and suspension as set
         forth in this Agreement and except as limited in this Agreement, Owner
         and Operator shall also have available the remedies, among others, of
         an action for damages, restraining order, temporary or permanent
         injunction, or specific performance of all or any provision hereof
         together with any other rights accruing to it at law or in equity.

13.      FORCE MAJEURE

13.1     FORCE MAJEURE

         (a)      A delay in or failure to carry out the duties imposed upon
                  either Party under this Agreement (except payment) shall not
                  be deemed a breach of this Agreement, if such delay or such
                  failure is caused by any cause beyond the control of the Party
                  affected, including, but not restricted to, failure or threat
                  of failure of facilities (but excluding such failures or
                  threats of failures caused by Owner's or Operator's failure to
                  comply with Prudent Utility Practice), Change of Law, flood,
                  earthquake, storm, fire, lightning, epidemic, war, acts of the
                  public enemy, riot, civil disturbance or disobedience, strike,
                  lockout, work stoppages, other industrial disturbance or
                  dispute, whether determined to have arisen out of an unfair
                  labor practice of any Party, sabotage, restraint by court
                  order or other public authority, and action or nonaction by,
                  or failure to obtain the necessary authorizations or approvals
                  from, any governmental agency or authority, which by the
                  exercise of due diligence such Party could not reasonably have
                  been expected to avoid ("Force Majeure"). Nothing contained
                  herein shall be construed so as to require a Party to settle
                  any strike, lockout, work stoppage, or other industrial
                  disturbance or dispute in which it may be involved.

                  A party claiming Force Majeure shall make reasonable attempts
                  to remedy the cause or causes constituting the Force Majeure,
                  keeping the other Party reasonably informed. Any notice of
                  Force Majeure as required by Section 13.1(b)(i) shall include
                  documentation as to the cause of the Force Majeure and a
                  statement of all facts available that such Force Majeure was
                  not caused by and was beyond the control of acts of the
                  declaring Party. If the non-declaring Party believes that the
                  Force Majeure does not meet the requirements of this Section
                  13.1(a), then that non-declaring Party shall so notify the
                  declaring Party.

         (b)      If either Party because of a Force Majeure event is rendered
                  wholly or partly unable to perform any of its obligations
                  under this Agreement, that Party shall be excused

                                       40

<PAGE>

                  from whatever performance is affected by the Force Majeure
                  event to the extent so affected, provided however:

                  (i)      as a condition of Force Majeure the non-performing
                           Party must provide written notice no later than seven
                           (7) days after becoming aware or when such Party
                           reasonably should have become aware of the Force
                           Majeure event;

                  (ii)     the period of non-performance shall be of no greater
                           scope and of no longer duration than is required by
                           the Force Majeure event;

                  (iii)    the non-performing Party shall continue to perform
                           the services in good faith and with due diligence and
                           use its best efforts to limit and remedy its
                           inability to perform during and after the Force
                           Majeure event, Operator will use its best efforts to
                           fulfill its obligations in accordance with this
                           Agreement;

                  (iv)     when the non-performing Party is able to resume
                           performance of its obligations under this Agreement,
                           that Party shall give the other Party written notice
                           to that effect; and

                  (v)      it is the duty of the claiming Party to prove all the
                           elements of Force Majeure including but not limited
                           to (i) specific action taken to work around or
                           mitigate the impact, (ii) specific event dates,
                           directions, logic and schedule float to support the
                           claim, and (iii) specific cause for the claim of
                           Force Majeure as set forth in this Section 13 and to
                           provide written documentation of such proof to the
                           other Party as soon as reasonably possible. A Party
                           is not required to grant or deny a request for Force
                           Majeure until such documentation has been supplied.

         (d)      No condition of Force Majeure shall extend this Agreement
                  beyond its stated term, nor shall any excuse of performance by
                  reason of a condition of Force Majeure extend for a time
                  period greater than one hundred eighty (180) days except upon
                  the written consent of the performing Party, which the
                  performing Party may give or withhold in its sole discretion;
                  provided, however, that if the condition of Force Majeure is
                  not removed within one hundred eighty (180) days plus any
                  extension upon such written consent of the performing Party,
                  the performing Party may, at its sole option and discretion,
                  terminate this Agreement.

         (e)      Force Majeure shall include, subject to all Force Majeure
                  requirements (i) the inability of Operator to perform due to
                  an inadequate supply of fuel, either natural gas or fuel oil,
                  which was under the control of a Person other than Operator,
                  (the inability to deliver because of late ordering is not an
                  event of Force Majeure), and (ii) design or construction
                  defects or limitations caused by Construction Contractor, and
                  (iii) actions or constraints of the Utility to the extent that
                  they adversely affect the performance of an obligation of this
                  Agreement.

                                       41

<PAGE>

         (f)      During the Transition Period, if a Force Majeure occurs,
                  Operator shall not be considered in default of this Agreement
                  with respect to any obligation of Operator affected by or
                  attributable to such Force Majeure.

         (g)      Any dispute as to a Force Majeure or its effect shall be
                  resolved in accordance with Section 12. Operator shall
                  continue to fulfill its other obligations under this Agreement
                  which are not affected by the Force Majeure.

13.2     CHANGE OF LAW

         (a)      A change of Law which materially alters the obligations or
                  requirements of Operator which occurs after the Effective Date
                  is a "Change of Law." In the event that the Force Majeure is a
                  Change of Law, Owner shall have the option to terminate this
                  Agreement by written notice to Operator within three (3)
                  months of such Change of Law (or when Owner became aware of
                  such Change of Law) if Owner decides that to continue the
                  operation of the Plant considering the cost of implementing
                  and observing such Change of Law would not be exercising good
                  business judgment. If such written notice is not received
                  within such three-(3) month period, this opportunity to
                  terminate pursuant to this Section 13.2 (a) shall be deemed
                  waived.

         (b)      If the operation of the Plant ceases because of a Change of
                  Law, Operator is terminated, and the operation of the Plant is
                  to be restarted within one hundred eighty (180) days of the
                  date of termination and if Owner is in control of the hiring
                  of the Plant operator, Owner shall give Operator notice of
                  such restart and shall also notify Operator of the date by
                  which Operator must begin operation. Operator shall have
                  fifteen (15) calendar days within which to notify Owner that
                  Operator will accept the obligations to operate the Plant. In
                  the event of such acceptance by Operator within the time
                  provided, Owner and Operator shall enter into a new agreement
                  having terms identical to the terms of this Agreement.

13.3     REMEDY FOR FORCE MAJEURE TERMINATION

         In the event of termination by Owner pursuant to Section 13.2, in
         addition to any reimbursement of costs which Operator is entitled to
         receive under the terms of this Agreement, Operator shall be entitled
         to receive a Termination Payment as set forth in Section 8.2(d).
         Operator shall thereafter be relieved of all obligations under this
         Agreement other than the obligations specified in Sections 7, 14.3,
         14.4, 14.5, 14.7 and 14.22. Notwithstanding this cessation of
         obligations, neither Party shall be relieved from any obligations or
         liabilities for actions or inaction prior to the effective date of
         termination.

                                       42

<PAGE>

14.      MISCELLANEOUS PROVISIONS

14.1     ASSIGNMENT

         (a)      Except as provided in this Agreement, neither Party shall
                  assign this Agreement without first obtaining the prior
                  written consent of the other Party. Owner shall be entitled to
                  assign its rights hereunder to any Lender or Lenders or any
                  successor owner of the Plant without the consent of Operator
                  and Operator shall be entitled to assign its right to receive
                  payments under this Agreement upon ten (10) days notice to
                  Owner and shall remain responsible for performance of all
                  obligations under this Agreement. Operator shall be free to
                  subcontract any portion of its obligations hereunder to any
                  third party. Operator shall be free to assign any or all of
                  its obligations hereunder to a wholly-owned subsidiary of
                  Operator, if such subsidiary is capable of performing the
                  obligations of Operator. Operator may assign all of its rights
                  and obligations under this Agreement to a third party, and
                  upon such assignment and the written assumption by such third
                  party of all of the obligations of Operator under this
                  Agreement, Operator shall be fully released from all of the
                  obligations of Operator under this Agreement; provided that
                  Operator shall first obtain the written consent of Owner to
                  any such assignment and assumption, which consent shall not be
                  unreasonably withheld. Anything in this Section 14.1(a) to the
                  contrary notwithstanding, Operator agrees that Owner may sell,
                  convey or assign its interest in the Plant and its rights, or
                  any part thereof, under this Agreement, or that Owner may
                  lease the Plant, to one or more Persons, and such sale,
                  conveyance, assignment or lease shall include without
                  prejudice to Owner's rights in Section 8.2, the transfer of
                  the rights, duties and obligations of Owner, but only such
                  rights, duties and obligations as are contained in this
                  Agreement. The rights, duties and obligations of Operator
                  contained in this Agreement shall not be affected by such
                  sale, conveyance, assignment or lease. Operator shall agree in
                  writing to such sale, conveyance or assignment, and shall
                  release Owner in writing from all obligations hereunder.

         (b)      Except as provided in Section 14.1(a) above, no assignment of
                  Owner's obligations hereunder shall be permitted unless:

                  (i)      the assignee is solvent (its assets exceed its
                           liabilities) at the time of the assignment and will
                           not be rendered insolvent by reason of the
                           assignment;

                  (ii)     assigned by an instrument reasonably satisfactory to
                           Operator's counsel, the assignee represents and
                           warrants that it is solvent, assumes the obligations
                           of Owner hereunder, and agrees to be bound by all of
                           the terms, conditions, covenants and provisions of
                           this Agreement to the same extent as if it were
                           Owner; and

                  (iii)    such assignment is accompanied by a simultaneous
                           assignment of all other Project Agreements to the
                           same assignee or an Affiliate, of Owner's rights
                           under all other Project Agreements relating to the
                           Plant.

                                       43

<PAGE>

         (c)      Upon assignment by Owner, except an assignment to Lenders
                  solely as collateral security, Operator shall deliver to Owner
                  a written release of all of Owner's obligations under this
                  Agreement.

         (d)      This Agreement shall inure to the benefit of and be binding
                  upon Owner and Operator and their respective successors and
                  permitted assigns.

14.2     AUTHORITY TO PROCURE GOODS AND SERVICES

         (a)      Operator shall be authorized to enter into and administer
                  purchase orders and contracts on behalf of and as agent for
                  Owner subject to the following:

         (i)      Any such purchase order or contract shall be made in the name
                  of Owner and not for the benefit of Operator.

                  (ii)     Any such purchase order or contract shall be in
                           writing, or a written memorandum containing all
                           essential terms thereof shall be prepared and signed
                           by the parties to be bound.

                  (iii)    Wherever appropriate, Operator shall attempt to
                           obtain quotations from Agency Suppliers for extended
                           warranty provisions for Owner's consideration prior
                           to execution of purchase orders or contracts.

                  (iv)     Operator shall not enter into any purchase order or
                           contract by the terms of which Operator will exceed
                           the amount budgeted therefor without the prior
                           approval of Owner.

                  (v)      All purchase orders or contracts obligating Owner to
                           pay money for goods or services valued in excess of
                           Seven Thousand Five Hundred Dollars ($7,500) shall be
                           approved in advance by Owner.

                  (vi)     Purchase orders or contracts for the same or similar
                           goods or services with the same or substantially the
                           same parties which in the aggregate for one (1) year
                           would obligate Owner in excess of Seven Thousand Five
                           Hundred Dollars ($7,500) shall be approved in advance
                           by Owner.

                  (vii)    Within ten (10) calendar days following execution a
                           true copy of each purchase order, contract or
                           memorandum executed by Operator shall be sent to
                           Owner.

                  (viii)   Operator may make payments from the Operating Account
                           for such purchase orders and contracts, provided,
                           however, that Operator shall not make any payments in
                           excess of the amounts shown in the applicable
                           requisition and purchase order or contract without
                           first obtaining Owner's approval;

                                       44

<PAGE>

         (b)      Owner shall have the right to modify or revoke the authority
                  of Operator under this Section 14.2 at any time by written
                  notice to Operator and Operator shall immediately give written
                  notice of any such modification or revocation to any persons
                  with whom Operator conducts business on behalf of Owner and
                  shall send Owner true copies of each such notice sent by
                  Operator within ten (10) calendar days of receipt of such
                  notice from Owner.

14.3     CONFIDENTIALITY OF INFORMATION

         (a)      Each Party agrees, for itself, its Affiliates and their
                  respective directors, officers, employees and representatives
                  including, without limitation, attorneys, accountants and
                  consultants, to keep confidential: (i) this Agreement, (ii)
                  all negotiations concerning this Agreement, and (iii) all
                  documents, data, drawings, studies, projections, plans and
                  other information, whether written or oral, which relate to
                  economic benefits to or amounts payable by either Party
                  pursuant to this Agreement or costs of design, construction,
                  and operations of the Plant including, without limitation,
                  cost and quantities of fuel used at the Plant.

         (b)      Each Party agrees, for itself, its Affiliates and their
                  respective directors, officers, employees and representatives
                  including, without limitation, attorneys, accountants and
                  consultants that no adequate remedy at law exists for a
                  material breach or threatened material breach of any of the
                  provisions of this Section 14.3, the continuation of which
                  unremedied will cause the injured Party to suffer irreparable
                  harm. Accordingly, the Parties agree that the injured Party
                  shall be entitled, in addition to other remedies which may be
                  available to it, to immediate injunctive relief from any
                  material breach of any of the provisions of this Section 14.3
                  and to specific performance of its rights hereunder, as well
                  as to any other remedies available at law or in equity.

14.4     CONFIDENTIAL

         "Confidential", as used herein, means that information or a document,
         including the content, substance or effect of such information or
         document shall not be disclosed, discovered or distributed to any other
         person, corporation or other entity except pursuant to the valid order
         of an administrative or judicial officer having jurisdiction, which
         order shall be opposed unless opposition with respect thereto is waived
         by each of the Parties and except as hereinafter provided nor shall the
         information or documents of a Party be used by the other Party for any
         purpose not directly related to such other Party's obligations
         hereunder. No Party shall be required to oppose any order requiring
         disclosure by appeal, separate legal proceeding or extraordinary
         measures in any judicial or administrative proceeding unless the other
         Party, after notice, agrees to pay the costs of such opposition.

                                       45

<PAGE>

14.5     EXCEPTIONS TO CONFIDENTIALITY

         The Parties may, without violating this Section 14, disclose matters
         which are made confidential by this Agreement as follows:

         (a)      Owner may make such disclosures to actual or prospective
                  co-owners, lenders, underwriters, contractors, suppliers and
                  others involved in financing, construction and operations
                  transactions or arrangements or its partners, Affiliates, or
                  to actual or prospective purchase or lessees of the Plant.
                  Operator may make such disclosures, if and as is necessary to
                  carry out its obligations hereunder, to its Affiliates and to
                  those directly involved in the operation of the Plant,
                  provided that Operator obtains, as a condition precedent to
                  the disclosure, a confidentiality agreement with the Person,
                  corporation or other entity to whom the disclosure is being
                  made with terms substantially the same as are required under
                  this Agreement.

         (b)      A Party may make such disclosures to governmental officials
                  and parties involved in any proceeding whereby such Party is
                  seeking a permit, certificate or other regulatory approval or
                  order necessary or appropriate to carry out this Agreement,
                  provided that the Party making the disclosure will exercise
                  reasonable efforts to restrict public access to the
                  information disclosed by way of protective order or otherwise.

         (c)      A Party may make such disclosures to governmental officials or
                  the public as required by any law, regulation or order,
                  including, without limitation, Laws requiring disclosure of
                  financial information, information material to financial
                  matters and filing of financial reports, provided that such
                  Party will exercise reasonable efforts to restrict public
                  access to the information disclosed by way of protective order
                  or otherwise.

         Any disclosure permitted by this Section 14.5 will be only to the
         extent such disclosure is necessary or required.

14.6     LENDER APPROVAL

         This  Agreement is subject to review and approval by the Lenders and,
         as such,  this  Agreement is not effective as to, or binding upon,
         Owner until the Lenders have given the written approval of this
         Agreement.

14.7     BOOKS, RECORDS, ACCESS THERETO

         The Parties agree to maintain adequate books, accounts and records with
         respect to the operation and maintenance of the Plant and the
         collection of revenues therefrom in accordance with generally accepted
         accounting principles consistently applied, and in compliance with the
         regulations of any governmental regulatory body having jurisdiction
         thereof; and to permit employees or agents of the other Party at any
         reasonable time and upon

                                       46
<PAGE>

          reasonable prior notice to inspect such Party's properties, and to
          examine or audit such Party's books, accounts and records and make
          copies and memoranda thereof provided that such agents enter into a
          confidentiality agreement if so requested by the other Party.

14.8     NOTICES

         Except as provided in Section 2.4.2(c), any notice or other
         communication, including approvals, by one Party to the other required
         or permitted by this Agreement shall be in writing and shall be deemed
         to have been given when delivered by hand, or when: (a) deposited in
         the United States mails with postage prepaid for transmittal by
         registered or certified mail, return receipt requested, (b) or
         telecopied with telephone confirmation of receipt or (c) placed in the
         hands of a recognized commercial courier service for overnight
         delivery, addressed as follows:

                  If to Owner:

                           Tenaska Georgia Partners, L.P.
                           c/o Tenaska, Inc.
                           Suite 400
                           1044 North 115th Street
                           Omaha, Nebraska  68154-4446
                           Attention: Michael C. Lebens, Vice President

                  If to Operator:

                           Tenaska Operations, Inc.
                           Suite 400
                           1044 North 115th Street
                           Omaha, Nebraska  68154-4446
                           Attention: H. Dwight Howell, Vice President
                           Operations

                  If to PECO:

                           PECO Energy Company
                           2004 Renaissance Blvd.
                           King of Prussia, Pennsylvania  19406
                           Attention:  Power Contracts Manager

         However, either Party may at any time and from time to time change the
         address for communications to it by delivering written notice of the
         change of address to the other Party.

                                       47
<PAGE>

14.9     REPRESENTATIVES

         (a)      Owner shall designate an Owner's Representative who shall have
                  authority to act on behalf of Owner on all matters relating to
                  this Agreement. Owner's Representative shall have authority to
                  provide notice to and receive notice from Operator and to
                  exercise all other authority of Owner as permitted or required
                  by this Agreement.

         (b)      Operator shall designate an Operator's Representative who
                  shall have authority to act on behalf of Operator on all
                  matters relating to this Agreement. Operator's Representative
                  shall have authority to provide notice to and receive notice
                  from Owner and to exercise all other authority of Operator as
                  permitted or required by this Agreement.

14.10    EQUAL EMPLOYMENT OPPORTUNITY

         In furtherance of its obligations under Section 2, Operator undertakes
         and agrees in the performance of its services pursuant to this
         Agreement not to violate any law of the State of Georgia or of the
         United States of America relating to equal employment opportunity.

14.11    ENTIRE AGREEMENT

         This Agreement contains the entire agreement of the Parties and
         supersedes and replaces any prior or contemporaneous oral or written
         agreements or understandings between them relating to its subject
         matter. No amendment or modification of this Agreement shall be
         effective unless set forth in writing and signed by both Parties except
         as provided in Section 14.2 in respect to Owner's right to modify or
         revoke the authority of Operator. By entering into this Agreement the
         Parties do not intend to create third party rights herein or hereto.

14.12    NO WAIVER

         No failure by either Party to insist upon the strict performance of any
         term, covenant or condition of this Agreement, or to exercise any right
         or remedy upon breach of any provision hereof, and no acceptance of
         payment for performance during the continuation of any such breach and
         no payment under this Agreement by a Party, shall constitute a waiver
         of any term, covenant or condition herein or waiver of any subsequent
         breach or default in the performance of any term, covenant or condition
         herein, or prevent such Party from seeking recovery of any amount paid
         through the Dispute Procedure as set out in Section 12.

                                       48
<PAGE>

14.13    SEVERABILITY

         In the event that any provision of this Agreement, or application
         thereof, is held by any court of competent jurisdiction to be illegal
         or unenforceable, the Parties shall attempt in good faith to agree upon
         an equitable adjustment to this Agreement in order to overcome to the
         extent possible the effect of such illegality or unenforceability and,
         in any event, the validity and enforceability of the remaining portions
         of this Agreement shall not be affected.

14.14    APPLICABLE LAW

          THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH
          THE LAW OF THE STATE OF GEORGIA, EXCLUDING CONFLICT OF LAW RULES WHICH
          MAY CALL FOR THE APPLICATION OF THE LAW OF ANOTHER JURISDICTION.

14.15    COMPLIANCE WITH GOVERNMENTAL REQUIREMENTS

         Operator shall comply with all applicable Laws, and the applicable
         requirements, guidelines, documents and standards referenced throughout
         this Agreement existing at the Effective Date, and Operator shall
         comply with any changes in or additions to such applicable Laws and
         other requirements which become effective after the Effective Date of
         this Agreement. In the event that compliance with such change results
         in an increase in Operator's operating expenses relating to this
         Agreement, Owner shall approve an appropriate increase in the Operating
         Budget to cover such expenses.

14.16    EXCLUDED REPRESENTATIONS AND INTERESTS

         Neither Owner nor Operator has made any representations, warranties or
         covenants other than as expressly set forth in this Agreement. The
         execution of this Agreement shall not be deemed to convey any estate or
         interest in the Plant or the Site or any right to exclusive possession
         thereof, to Operator. The execution of the Agreement shall not be
         construed to impose any liability on Operator which it has not
         expressly assumed pursuant to this Agreement.

14.17    LIMIT OF LIABILITY

         Any claim asserted by Operator under this Agreement against the Owner
         shall be limited to the assets of Owner, and Operator expressly waives
         any right to proceed in law or equity against any partners in Owner
         (unless a partner is a necessary party in an action against the Owner
         in which case Operator agrees that no judgment shall be enforced
         against such partner), their Affiliates, or their respective officers,
         directors, stockholders, agents, servants

                                       49
<PAGE>

          and employees of the partners and the Affiliates. Any claim asserted
          by Owner under this Agreement against the Operator shall be limited to
          the assets of Operator, and Owner expressly waives any right to
          proceed in law or equity against any shareholders in Operator (unless
          a shareholder is a necessary party in an action against the Operator
          in which case Owner agrees that no judgement shall be enforced against
          such shareholders), their affiliates, or their respective officers,
          directors, stockholders, agents, servants and employees of the
          shareholders and the affiliates.

14.18    COUNTERPARTS

         This Agreement may be executed by the Parties hereto in separate
         counterparts, each of which when so executed and delivered shall be an
         original, but all such counterparts shall together constitute but one
         and the same instrument.

14.19    PROJECT AGREEMENTS

         Owner shall provide to Operator in a timely manner a copy of the
         executed Power Purchase Agreement, the executed Construction Agreement,
         the executed Credit Agreement, the executed Interconnection Agreement,
         and the executed Long Term Service Agreement, ("Project Agreements").
         Operator shall familiarize itself with the terms and conditions of each
         of the Project Agreements so as to enable Operator to perform its
         services hereunder in accordance with the applicable terms and
         conditions of this Agreement and the Project Agreements.

         If any Project Agreement is amended or if Owner enters into any
         additional agreements applicable to the Plant and Operator's services
         hereunder or if applicable laws, Plant Permits or manufacturer's
         recommended procedures or the requirements of insurance policies
         relating to the Plant are changed, Operator shall perform its services
         in accordance with such amendments and changes provided that if such
         additional or modified services will cause Operator to incur additional
         expense, then an appropriate increase in the Operating Budget shall be
         made and Owner's approval of such increase shall not be unreasonably
         withheld. The Parties shall make amendments or modifications to this
         Agreement as required by the changes contemplated herein.

14.20    NO JOINT VENTURE

         Operator is performing this Agreement as an independent contractor
         except as otherwise explicitly set forth in this Agreement. Nothing
         contained in this Agreement shall be construed as creating a joint
         venture or partnership relationship between Operator and Owner.

                                       50
<PAGE>

14.21    CORPORATE AUTHORIZATION

         (a)      Operator is a corporation duly organized, validly existing and
                  in good standing under the laws of the State of Delaware.
                  Operator is duly qualified, authorized to do business and in
                  good standing in every jurisdiction in which the nature of its
                  business requires it to be so qualified, and has all requisite
                  power and authority, to enter into and to perform its
                  obligations hereunder, and to carry out the terms hereof and
                  the transactions contemplated hereby.

         (b)      The execution, delivery and performance by Operator of this
                  Agreement have been duly authorized by all necessary corporate
                  action on the part of Operator and do not require any approval
                  or consent of any holder (or any trustee for any holder) of
                  any indebtedness or other contractual obligation of Operator
                  or any other Person, except approvals or consents which have
                  previously been obtained.

         (c)      This Agreement is in full force and effect, has been duly
                  executed and delivered on behalf of, and by the appropriate
                  officers or agents of Operator and constitutes the legal,
                  valid and binding obligation of Operator, enforceable against
                  it in accordance with its terms except as the enforceability
                  thereof may be limited by (i) bankruptcy, insolvency,
                  reorganization or other similar laws affecting the enforcement
                  of creditors' rights generally and (ii general principals of
                  equity whether considered in a proceeding in equity or at law.

         (d)      There is no litigation, action, suit, proceeding or
                  investigation by any third party pending or, to Operator's
                  knowledge after due inquiry, threatened against Operator
                  before or by a court, administrative agency, arbitrator or
                  governmental authority, body or agency which, if adversely
                  determined, individually or in the aggregate, (i) could be
                  reasonably expected to affect adversely the performance by
                  Operator of its obligations hereunder, or which could be
                  reasonably expected to modify or otherwise affect adversely
                  the authorizations to enable Operator to perform this
                  Agreement, (ii) could be reasonably expected to have a
                  material adverse effect on the condition (financial or
                  otherwise), business or operations of Operator, or (iii) could
                  be reasonably expected to impair the validity, binding effect
                  or enforceability hereof, against Operator or of any action
                  taken or to be taken pursuant hereto or any of the
                  transactions contemplated hereby.

         (e)      The execution, delivery and performance by Operator of this
                  Agreement and the consummation of the transactions
                  contemplated hereby will not result in any violation of,
                  breach of or default under any term of (i) Operator's
                  organizational documents, (ii) any contract or agreement to
                  which Operator is a party or by which it is bound, or (iii)
                  any license, permit, franchise, judgment, writ, injunction,
                  decree, order, charter, law, ordinance, rule or regulation
                  applicable to Operator, except for any such violations,
                  breaches or defaults which, individually or in the aggregate,
                  would not adversely affect the performance by Operator of its
                  obligations under this Agreement.

                                       51
<PAGE>

         (f)      No consent, order, authorization, waiver, approval or any
                  other action, or registration, declaration or filing with, any
                  Person, board or body, public or private, is required to be
                  obtained by Operator in connection with the execution,
                  delivery or performance of this Agreement or the consummation
                  of the transactions contemplated thereunder.

14.22    LIENS

         Operator shall not suffer, and Operator shall not permit any of its
         Subcontractors or Agency Suppliers to impose or file any laborers',
         materialmen's, mechanics', construction or other lien, claim or
         encumbrance on any part of the Plant or the Site, provided however,
         that the restriction imposed on Operator with respect to liens by
         Operator pursuant to this Section 14.22 shall not apply to a judgment
         lien duly obtained by Operator and to those liens, if any, which
         Operator is not permitted under the laws of the State of Georgia to
         waive or forfeit. If Operator or any Subcontractor or Agency Supplier
         imposes or files any laborers', materialmen's, mechanics', construction
         or other lien, claim or encumbrance against the Plant or Site and if
         Operator does not cause such lien, claim or encumbrance to be released
         and discharged within ten (10) days, or file a bond and cause such lien
         to be released within ten (10) days, Owner shall have the right to pay
         all sums necessary to obtain such release or to secure such bond and
         all amounts so paid and all costs incurred, including the cost of such
         bond and security required plus attorney fees and administrative
         expenses, shall be charged to Operator. Owner shall have the right to
         deduct all amounts so paid from any amount then or thereafter due
         Operator, or deduct the same from any compensation due Operator under
         this Agreement until the total amount of same shall be recouped, as
         Owner may elect at its sole discretion. Any unpaid balance shall be
         charged to Operator. Operator shall defend, at its expense, and pay all
         attorney's fees and costs of all actions commenced against Owner and
         its property for the enforcement of any such lien arising out of this
         Agreement. If Operator shall fail to defend any such action or
         discharge any such lien, claim or encumbrance, it shall pay to Owner
         all money that Owner may be compelled to pay in defending and
         discharging such lien, claim or encumbrance including all costs and
         attorney's fees.

14.23    SET OFF

         Owner shall have the right to set off any claim of Owner for liability
         of Operator to Owner arising under any provision of this Agreement
         against any debt or obligation of Owner to Operator arising under any
         provision of this Agreement.

14.24    RELEASE OF INFORMATION AND SITE VISIT APPROVAL

         (a)      Prior to the release of any information in any form, to any
                  person, with respect to the Plant, Operator shall obtain
                  written approval from Owner. This includes without limitation,
                  (i) press releases which incorporate photos or descriptions of
                  the Plant, the name Tenaska or the Owner or any affiliated
                  entity of a partner in Owner; and (ii)

                                       52
<PAGE>

                  public relations material, including advertising and
                  photographs, which refer to the Plant or any other project
                  of the Tenaska, Inc. affiliated companies.

         (b)      Prior to allowing access to the Plant of any parties not
                  directly related to the operation or maintenance of the Plant
                  or regulatory authorities with jurisdiction over permits or
                  safety, Operator shall obtain written Owner approval. Such
                  request for approval shall include the names of the
                  individuals who will be on the Site including the name of each
                  such individuals employer or company with whom the individual
                  is affiliated, the intent of the Site visit, the information
                  to be provided to such individuals during such visit and any
                  other information required by Owner for approval.

14.25    CONTRACTS WITH AFFILIATES

         Any contract entered into pursuant to this Agreement by Operator with
         an Affiliate shall have terms no less favorable to the Owner than are
         generally available on an arms-length basis from an unaffiliated party,
         and Operator shall notify Owner of any such contract as soon as
         reasonably practicable.

                                       53
<PAGE>

               IN WITNESS WHEREOF, each Party has caused this Agreement to be
signed in its name and on its behalf by a duly authorized officer, as of the
day and year first above written.

                                            OWNER:

                                            TENASKA GEORGIA PARTNERS, L.P.,
                                            a Delaware limited partnership

                                            By: Tenaska Georgia I, L.P.
                                            Its: Managing General Partner

                                            By: Tenaska Georgia, Inc.
                                            Its: Managing General Partner

                                            By: /s/__________________________
                                            Title: Vice President

                                            OPERATOR:

                                            TENASKA OPERATIONS, INC.,
                                            a Delaware corporation

                                            By: /s/_____________________________
                                            Title: Vice President

                                       54
<PAGE>

                                LIST OF EXHIBITS

        EXHIBIT A                           POWER PURCHASE AGREEMENT

                                       55<PAGE>

                                                                 Exhibit 10.6.1

                                  AMENDMENT TO

                      OPERATIONS AND MAINTENANCE AGREEMENT

         THIS AMENDMENT to Operations and Maintenance Agreement ("Amendment")
dated as of this 26th day of October, 1999, is by and between Tenaska Georgia
Partners, L.P., a Delaware limited partnership ("Owner") and Tenaska Operations,
Inc., a Delaware corporation ("Operator").

         WHEREAS, Owner and Operator desire to amend that certain Operations and
Maintenance Agreement by and between them, dated September 10, 1999 ("O&M
Agreement") to prohibit, among other things, Operator's undertaking of certain
sales and brokering activities.

         NOW, THEREFORE, in consideration of the premises contained in this
Amendment, the Parties hereto, intending to be legally bound, agree as follows:

1.       AMENDMENT

         Article 14 of the O&M Agreement is hereby amended by adding thereto a
         new Section 14.26, which reads as follows:

             "14.26  BROKERING AND MARKETING

              Operator shall not undertake the sale, brokering or marketing of
              electrical energy or capacity. Further, any Affiliate (as defined
              in the Power Purchase Agreement) of Operator that is not an
              Affiliate of Tenaska (as defined in the Power Purchase Agreement)
              shall not conduct business in the ordinary course from the same
              offices as are being used by an Affiliate of Operator that is
              engaging in the sale, brokering or marketing of such electrical
              energy or capacity."

2.       ENTIRE AGREEMENT

         This Amendment contains all of the understandings and agreements
         existing between the Parties with respect to the subject matter of this
         Amendment. All provisions of the O&M Agreement not modified by this
         Amendment shall remain in full force and effect.

3.       GOVERNING LAW

         THIS AMENDMENT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH
         THE LAW OF THE STATE OF GEORGIA, EXCLUDING CONFLICT OF LAW RULES WHICH
         MAY CALL FOR THE APPLICATION OF THE LAW OF ANOTHER JURISDICTION.

                                       1

<PAGE>

         IN WITNESS WHEREOF, each Party has caused this Amendment to be signed
in its name and on its behalf by a duly authorized officer, as of the day and
year first above written.

                                    OWNER:

                                    TENASKA GEORGIA PARTNERS, L.P.,
                                    a Delaware limited partnership

                                    By:      Tenaska Georgia I, L.P.
                                    Its      Managing General Partner

                                    By:      Tenaska Georgia, Inc.
                                    Its:     Managing General Partner

                                    By:      /S/________________________________
                                    Title:   Vice President

                                    OPERATOR:

                                    TENASKA OPERATIONS, INC.,
                                    a Delaware corporation

                                    By:      /S/________________________________
                                    Title:   Vice President

                                       2

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