The balance due to GE is being escrowed at closing, with standing 
instructions to release payments to GE on a fixed payment schedule.  I will 
email you the current draft of the instructions.

Kay




"Shoemaker, Kent (GEAE)" <kent.shoemaker@ae.ge.com> on 04/09/2001 07:24:06 AM
To: Kay.Mann@enron.com
cc: "Lee L Johnson (PS, GE AEP) (E-mail)" <lee.johnson@ps.ge.com> 

Subject: RE: Salmon Energy Turbine Agreement

Kay:

This financing transaction is much more "involved" than others. I know
nothing about Pegasus Power or Salmon.  What comfort are we getting that we
will get paid.  Is there an LOC in place.  Are there guarantees to back up
these debt financing.  Is GE secured in preference to this debt. 

Kent

-----Original Message-----
From: Kay.Mann@enron.com [mailto:Kay.Mann@enron.com]
Sent: Friday, April 06, 2001 4:12 PM
To: kent.shoemaker@ae.ge.com
Subject: Salmon Energy Turbine Agreement


Hi Kent,

I can get a redline done for you if you want to tell me what it should be
redlined against.

I don't know about getting rid of the requirement for the inhouse counsel
opinion.  Maybe after you look at things we can discuss it.

Thanks,

Kay
---------------------- Forwarded by Kay Mann/Corp/Enron on 04/06/2001 03:08
PM ---------------------------


"Thompson, Peter J." <pthompson@akllp.com> on 04/02/2001 04:56:21 PM

To:   "Kay Mann (E-mail)" <kay.mann@enron.com>
cc:   "Pipitone, Paul" <paulpipitone@akllp.com>

Subject:  Salmon Energy Turbine Agreement



     Attached please find the latest Salmon Energy Turbine Agreement
(second document below), as well as a blackline (first document below)
showing changes made to the version circulated last Friday.  Pursuant to
your instructions, the performance values in Article 10 are per the 24
Unit master agreement.  In addition no changes have been made to the
Maximum or Unit Liability Amounts or payment schedule. To complete the
agreement, we will need to insert the date of execution and Exhibit H-2.

 <<Comparison of Versions 2 to 3 of Salmon Energy Agreement.DOC>>
<<Salmon Energy Agreement - Version 3.DOC>>
(See attached file: Comparison of Versions 2 to 3 of Salmon Energy
Agreement.DOC)
(See attached file: Salmon Energy Agreement - Version 3.DOC)