Confidential Proprietary July 6 2000 Genco Overview Roadshow

Confidential & Proprietary July 6, 2000 Genco Overview Roadshow. ppt. Peakers. ppt

CONFIDENTIAL Overview of Enron’s Gen. Co What is Genco? u Genco is Enron’s merchant generation and today includes the six “peaker” plants located in the Southeast and Midwest having total generation capacity of 3, 094 MW’s (ISO) u Potential additions to Genco include the Moore Project, Pastoria, LV Cogen II and other merchant development sites u Enron is not the natural long term holder of Genco’s assets. Currently, we are pursuing several options · Create JV with third party utility with subsequent IPO · Outright sale of merchant generation to third party · Enron would maintain access to MW’s through multi-year (S-T) tolling arrangement 2

CONFIDENTIAL Overview of Enron’s Gen. Co Genco’s Peaker Projects • 494 MW ISO 504 MW ISO 396 MW ISO SERC 2000 Projects Manhattan, Illinois Gleason, Tennessee Wheatland, Indiana 656 MW ISO 536 MW ISO 508 MW ISO MAIN SERC ECAR 1999 Projects were complete and operational in the Summer of 1999 • 1999 Projects Brownsville, Tennessee Caledonia, Mississippi New Albany, Mississippi 1, 394 MWs total output at ISO 2000 Projects are complete and operational 1, 700 MWs total output at ISO 3

CONFIDENTIAL Overview of Enron’s Gen. Co Location of Genco’s Peakers NPCC MAPP Manhattan (656) MAIN SPP MAAC ECAR Wheatland (508) Gleason (536) Brownsville (494) New Albany (396) Caledonia (504) ERCOT SERC • 3, 094 MWs positioned in multiple high value energy markets TVA SERC CINergy ECAR Com. Ed MAIN • Access to: 55% of total US electricity demand 80% of Eastern Interconnect • Proximity to: Multiple major interstate gas pipelines 3 gas supply basin 34 electric transmission systems Several power trading hubs, including, • TVA CBOT • CINergy Nymex • Com. Ed CBOT 4

CONFIDENTIAL Overview of Enron’s Gen. Co Genco’s Value Maximization Options u Joint Venture with New. Co IPO: · · · Frees up capital invested in assets Limits exposure to back end power prices/risks Captures high P/E stock market currently affords IPP’s Provides manageable equity investment in growth generation company Creates opportunity for Enron to provide ancillary services to New. Co u Sale to Third Party: · Frees up capital invested in peakers · Limits exposure to back end power prices/risks 5

CONFIDENTIAL Overview of Enron’s Gen. Co Potential Genco JV Structure ENRON Peakers, Development Projects & Turbines (Total 5, 000 MWs) Sites, People, 3 year toll FPL $/Note/Equity Services Agreements NEWCO Shares INVESTORS $ $/Note/Equity Services Agreements (20, 000+ MWs) Enron Contributing: Peakers (3, 094 MWs) Moore Project PDA (452 MWs), LV (216 MWs) and Pastoria (750 MWs) (developments) LM 6000 turbines (6+ turbines, 300 MWs) Development sites People (including plant staff) ROFR on development Temporary credit support Projects, Development Projects & Turbines (Total 15, 427 MWs) Sites, People $ Notes LENDERS, DEBT HOLDERS FPL Contributing: Generating assets (3, 771 MWs) Project's in advance development (3, 406 MWs) 31 GE 7 FA turbines (7, 750 MWs) Development sites People (including 800 1000 operating staff) ROFR on development Temporary credit support Receiving: Stock/cash/note 3 year toll on peakers; ROFR on some % of Fuel/Power Services Agreement for technical support Services Agreement for trading systems and QF restructurings 6