---------------------- Forwarded by Kay Mann/Corp/Enron on 10/20/2000 01:14 
PM ---------------------------


Reagan Rorschach
10/19/2000 04:26 PM
To: Jeffrey Keenan/HOU/ECT@ECT, John Moore/Corp/Enron@Enron, Ben 
Jacoby/HOU/ECT@ECT, Tom Chapman/HOU/ECT@ECT, John Hodge/Corp/Enron@ENRON, Kay 
Mann/Corp/Enron@Enron
cc: Reagan Rorschach/NA/Enron@Enron 

Subject: Edgecombe: Please Review and Comment

Based on the development meeting this morning, the strategy for the Edgecombe 
Energy Facility is as follows:

finish development activities with existing momentum,
get long term control (3 to 5 years) of Reierson land and Electricities land, 
as necessary,
get a binding agreement with the city to annex and serve the gas we need once 
the project company executes the land option,
get interconnect study underway, and
monitor regulatory environment for the dawn of the merchant power age in 
North Carolina.

The following "To Do" list is being devleoped, please add as necessary:

Regulatory
Tom Chapman to keep a close eye on the regulatory environment in North 
Carolina.
Air permit application was submitted.  Draft permit expected to be issued for 
Enron review and comment.  Reagan to ensure that flexibility exists such that 
equipment may be changed without jepardizing the permit status.

Fuel
John Hodge to monitor the Rocky Mount/NCNG gas deal as it developes.

Land
Reagan to get the option agreement information specific to the Reierson 
property.  We will be trying to get 40 acres from Ms. Reierson.
Kathleen to facilitate production of draft option agreement for Reierson, Kay 
Mann to finalize.
Reagan to facilitate getting Reierson property surveyed (need a local 
surveyor, Reagan to get with Kay regarding a professional services agreement 
with local consultant).
Reagan to coordinate Enron's activities with reagrd to rezoning hearing 
November 6, 2000 (Electricities 10.1 acres).
Reagan to work with Kay to develop a binding agreement with Rocky Mount to 
establish responsibility for Rocky Mount to annex the property and supply gas 
once the project company (EDC) executes the land purchase.

Interconnect
Gene Preston ran ATC study--looks encouraging.  We should proceed with more 
definitive studies through VEPCO.  Larry Soderquist is the Enron electricial 
engineer and is on the job.
Reagan to follow-up with Heather concerning VEPCO's interconnect study 
progress with regard to Enron/VEPCO letter agreement.  We need to confirm que 
position or re-establish, as necessary.
Reagan to follow-up with Heather to determine if Enron paid VEPCO any of the 
$15,000 contemplated in the letter agreement.
Reagan to begin the process of entering into an interconnect study agreement 
with VEPCO so that study can be finished.