Exhibit 10.9
[NRG ENERGY, INC. LETTERHEAD]
0000 Xxxxxxxx Xxxx
Xxxxx 000
Xxxxxxxxxxx, XX 00000-0000 August 25, 1997
Telephone (000) 000-0000
Fax (000) 000-0000
Xx. Xxxxxxx X. Xxxxxxxxx
Mill Controller
Rock Tenn Company
0000 Xxxxxx Xxxxxx
Xx. Xxxx, Xxxxxxxxx 00000
Dear Xxxx:
Please find following NRG's understanding of the agreements reached during our
meeting in your office.
In contract year 1996-1997, the price increase of % was agreed to be spread
over two years. On an actual cost basis, this would have resulted in a price
increase of % for the contract year 1997-98.
It was agreed by both NRG and Waldorf that an increase of this magnitude would
be unacceptable. It was further agreed that the parties would depart from
the provisions of the Energy Agreement and establish a mutually acceptable
increase for contract year #10 (1997-98), and then, starting with contract
year #11 (1998-99), the parties would revert back to the "Sellers Total Cost"
method for all subsequent contract years.
For the 1997-98 rate calculation the parties agreed to modify the Sellers
Total Costs" spreadsheet by simulating a % overall increase, which would
result in an increase in rates retroactive to 7/1/96 of %. The calculation
is as follows:
x = $ Standard Rate
x = $ Premium Rate
For contract year #11 (1998-99), the calculation will revert back to the
actual costs incurred by NRG.
The parties again confirmed that the increased steam rates for contract year
#10, i.e., Standard Rate and Premium Rate, would be retroactive to July 1,
1997.
It was further agreed that this letter, as executed by the parties, would be
included as an addendum to the Energy Agreement dated between NRG and Waldorf.
Earlier this year, it was agreed that the cold iron outage would be moved from
fall, 1997, to spring, 1997. Since NRG had budgeted the cold iron outage for
fall, this decision impacted the project budget. At that time, Rock Tenn agreed
to allow NRG to complete $ of repairs to the condensate line and bill those
services for payment after July 1, 1997. This charge will appear on the August,
1997 bill.
If you agree with NRG's understanding of the agreement between the parties as
explained above, please indicate your acceptance in the space provided. Please
let me know if you have any questions or if NRG can be of further service to
Waldorf.
Sincerely,
NRG ENERGY, INC.
Xxxxxxx X. Xxxxxxx
Managing Director-Thermal Operations
Cc: Xxxxxxxx Xxxxx
Xxxx Xxxxxxx
Xxxx Xxxxxx
Accepted
By: /s/ Xxxxxxx Xxxxxxxxx
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Its: Mill Controller
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Date: September 3, 1997
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