An update...
---------------------- Forwarded by Kay Mann/Corp/Enron on 06/19/2000 02:46 
PM ---------------------------


michael.o.sandridge@us.abb.com on 06/19/2000 02:04:19 PM
To: kay.mann@enron.com
cc: karla.hesketh@us.abb.com, frank.chmiel@us.abb.com 

Subject: LM 6000 Transformers




Kay,
Below are the prices as well as the ex-work factory dates (ship dates).  As 
Ben
and Frank and I discussed last Friday this is what we need the option 
extension
to the 30th of June to reflect.  Please give me a call when you can.  We need 
to
get this done this PM if at all possible.  Frank and I will both be out of our
offices for the rest of the week and this will get very difficult.

Thanks

MIIKE
---------------------- Forwarded by Michael O
Sandridge/Field_Marketing/USTRA/ABB on 06/19/2000 01:58 PM
---------------------------

 (Embedded     Frank Chmiel/StLouis/USTRA/ABB
 image moved   06/16/2000 03:48 PM (Phone: +(314) 679-4702)
 to file:
 pic04072.pcx)





To:   Ben.jacoby@enron.com
cc:   Michael O Sandridge/Field_Marketing/USTRA/ABB@ABB_USTRA, Karla
      Hesketh/Field_Marketing/USTRA/ABB@ABB_USTRA, Dennis
      Bowman/StLouis/USTRA/ABB@ABB_USTRA
Subject:  LM 6000 Transformers


Ben,
     This note is based on the information provided to me earlier today by 
Mike
Sandridge and confirms what the adjusted values would be for each tarnsformer
type, making the following conditions:

1-The quantity of transformers released under the agreement would be decreased
to 10.
2-The option payments for the ten production slots have been deducted, as 
shown
below, along with the remaining net price / each transformer type.
3- Two of the $50,000 non-refundable optional production slot payments  are
cancelled. (LNL 9521-3 and 4)
4- In order to meet the terms of the latest agreement, the contract should be
signed by June 19,2000.  If that is not practical, at a minimum, the 10%
progress payment against the value of the contract would be due for wire
transfer immediately. That value would be 10% of $7,884,600 = $788,460.00.


     Therefore the Equipment Pricing Table is revised as shown below.

|----------+----------------+----------------+---------------->
|          |                |                |                |
| Table    | Primary        | ABB Neg.       | ABB Data Sheet |
| Item     | Voltage        | Number         | #              |
|          |                |                |                |
|----------+----------------+----------------+---------------->
  >--------------------------------|
  |                                |
  | Quantity / Net Price ($) /     |
  | Each                           |
  |                                |
  >--------------------------------|
|----------+----------------+----------------+---------------->
|          |                |                |                |
| Item 1   | 138 to         | FC011400-2C    | HU-Enron-2C    |
| (3       | 13.8-13.8      |                |                |
| winding) | (64/85/106)MVA |                |                |
|          |                |                |                |
|----------+----------------+----------------+---------------->
  >--------------------------------|
  |                                |
  | Two (2) @ $610,300.00          |
  |                                |
  | ($768,000-50,000-107,700 =     |
  | $610,300)                      |
  |                                |
  >--------------------------------|
|----------+----------------+----------------+---------------->
|          |                |                |                |
| Item 2   | 230 / 115 kV   | FC011400-1C    | HU-Enron-1C    |
| (3       | to             |                |                |
| winding) | 13.8-13.8 KV   |                |                |
|          | (64/85/106)MVA |                |                |
|          |                |                |                |
|----------+----------------+----------------+---------------->
  >--------------------------------|
  |                                |
  | Six (6) @ $834,000.00          |
  |                                |
  | ($884,000-50,000 =             |
  | $834,000)                      |
  |                                |
  >--------------------------------|
|----------+----------------+----------------+---------------->
|          |                |                |                |
| Item 3   | 138 / 13.8 KV  | FC011400-2D-LS | HU-Enron-2D-LS |
| (2       | (84/112/140)   |                | (Low Sound)    |
| winding) |                |                |                |
|          |                |                |                |
|----------+----------------+----------------+---------------->
  >--------------------------------|
  |                                |
  | Two (2) @ $830,000.00          |
  |                                |
  | ($858,000+22,000-50,000=       |
  |  $830,000)                     |
  |                                |
  >--------------------------------|




     The ABB Performance data sheets that match up to the three designs that
will be shown in the contract are also attached herein.----------------------
(See attached file: TecFC011400_2C.doc)  (See attached file: 
TecFC011400_1C.doc)
(See attached file: TecFC011400_2D_LS.doc)


The revised arrangement for schedules and trigger dates is as follows:
|---------+----------+-----------+--------+-----------+---------+-----------|
|         |          |           |        |           |         |           |
|   ABB   | Trigger  | Delivery  | Number |    MVA    |  High   | Comments  |
|  Item   | Date for |  Date Ex  |   of   |  Rating   |  Side   |           |
|   No.   |  Design  |  Factory  | Windin |           | Voltage |           |
|         |  Issues  |           |   gs   |           |         |           |
|         |          |           |        |           |         |           |
|---------+----------+-----------+--------+-----------+---------+-----------|
|         |          |           |        |           |         |           |
|   LNL   | May 11,  | Oct. 20,  | Three  | 64/85/106 | 138 kV  |  City of  |
| 9521-1  |   2000   |   2000    |        |    MVA    |         |  Austin   |
|         |          |           |        |           |         |           |
|---------+----------+-----------+--------+-----------+---------+-----------|
|         |          |           |        |           |         |           |
|   LNL   | May 11,  | Oct. 20,  | Three  | 64/85/106 | 138 kV  |  City of  |
| 9521-2  |   2000   |   2000    |        |    MVA    |         |  Austin   |
|         |          |           |        |           |         |           |
|---------+----------+-----------+--------+-----------+---------+-----------|
|         |          |           |        |           |         |           |
|   LNL   | May 29,  | Nov. 17,  | Three  | 64/85/106 | 115/230 |   Later   |
| 9517-1  |   2000   |   2000    |        |    MVA    |   kV    |           |
|         |          |           |        |           |         |           |
|---------+----------+-----------+--------+-----------+---------+-----------|
|         |          |           |        |           |         |           |
|   LNL   | May 29,  | Nov. 17,  | Three  | 64/85/106 | 115/230 |   Later   |
| 9517-2  |   2000   |   2000    |        |    MVA    |   kV    |           |
|         |          |           |        |           |         |           |
|---------+----------+-----------+--------+-----------+---------+-----------|
|         |          |           |        |           |         |           |
|   LNL   | May 29,  |  Dec. 1,  | Three  | 64/85/106 | 115/230 |   Later   |
| 9517-3  |   2000   |   2000    |        |    MVA    |   kV    |           |
|         |          |           |        |           |         |           |
|---------+----------+-----------+--------+-----------+---------+-----------|
|         |          |           |        |           |         |           |
|   LNL   | June 19, |  Dec. 1,  | Three  | 64/85/106 | 115/230 |   Later   |
| 9517-4  |   2000   |   2000    |        |    MVA    |   kV    |           |
|         |          |           |        |           |         |           |
|---------+----------+-----------+--------+-----------+---------+-----------|
|         |          |           |        |           |         |           |
|   LNL   | June 19, | Dec. 15,  | Three  | 64/85/106 | 115/230 |   Later   |
| 9517-5  |   2000   |   2000    |        |    MVA    |   kV    |           |
|         |          |           |        |           |         |           |
|---------+----------+-----------+--------+-----------+---------+-----------|
|         |          |           |        |           |         |           |
|     LNL |   June   | Dec.      | Three  | 64/85/106 | 115/230 |   Later   |
| 9517-6  | 19,      | 15,2000   |        |    MVA    |   kV    |           |
|         |   2000   |           |        |           |         |           |
|         |          |           |        |           |         |           |
|---------+----------+-----------+--------+-----------+---------+-----------|
|         |          |           |        |           |         |           |
| LNL9518 | July 10, |  Aug. 1,  |  Two   | 84/112/14 | 138 kV  | Las Vegas |
|    -    |   2000   |   2001    |        |   0 MVA   |         |           |
|    1    |          |           |        |           |         |           |
|         |          |           |        |           |         |           |
|---------+----------+-----------+--------+-----------+---------+-----------|
|         |          |           |        |           |         |           |
| LNL9518 | July 10, |  Aug. 1,  |  Two   | 84/112/14 | 138 kV  | Las Vegas |
|    -    |   2000   |   2001    |        |   0 MVA   |         |           |
|    2    |          |           |        |           |         |           |
|         |          |           |        |           |         |           |
|---------+----------+-----------+--------+-----------+---------+-----------|




Hope this covers the open issues .
     Regards,
     Frank Chmiel




 - pic04072.pcx
 - TecFC011400_2C.doc
 - TecFC011400_1C.doc
 - TecFC011400_2D_LS.doc