Common use of Additional Guidelines Clause in Contracts

Additional Guidelines. In the case of any exposure to foreign currency (“FX”) markets or interest rate (“IR”) risk associated with the sale or purchase of any commodity (including in connection with nuclear fuel procurement activities), the Company will ensure that its FX and IR risk allocation process is consistent with the hedging strategies it employs in connection with the related commodities. · With respect to counterparty credit risk, the Company will have no non-collateralized exposure to counterparties that fail to meet a credit rating threshold. This provision will not apply to the CECG Power Purchase Agreements, EDFTNA Power Purchase Agreements and any other contracts in effect as of the Effective Date. · Any transaction or investment to be entered into by the Company or any Company Generation-Sub with a term greater than three years must be approved by the Board of Directors. · The Company will ensure that long-term investment or contractual decisions are based on an explicit consideration of risk exposure, employ a consistent risk/return approach (identifying the impact of the transaction on the Company’s net consolidated exposure) and serve to implement the Company’s risk management strategy. · The Company’s consolidated physical and financial exposure will be continually assessed and managed by its risk personnel (the “Risk Group”). Certain functions to be provided by the Risk Group may be outsourced to Constellation’s Corporate Risk personnel as of the Effective Date; provided, that the Company establishes an internal risk function within a reasonable period of time after the Effective Date. · The Risk Group will assess exposure through the use of various risk indicators, including open position analysis, value-at-risk, earnings-at-risk, cash-at-risk, credit risk, operational risk and liquidity risk. · The Risk Group will develop and implement an auditable deal capture and risk management information system. This system will be designed to update market information (e.g., price, volatilities, volumes) as frequently as possible. · The Risk Group will deliver risk reports at least monthly to the Board of Directors. Such reports will include a quantitative assessment of the Company’s and each Company Generation-Sub’s financial and physical exposure. · The Risk Group will develop and implement “alert procedures” which will notify the Board of Directors upon the occurrence of a breach of these Risk Profile Guidelines.

Additional Guidelines. In the case of any exposure to foreign currency (“FX”) markets or interest rate (“IR”) risk associated with the sale or purchase of any commodity (including in connection with nuclear fuel procurement activities), the Company will ensure that its FX and IR risk allocation process is consistent with the hedging strategies it employs in connection with the related commodities. · • With respect to counterparty credit risk, the Company will have no non-collateralized exposure to counterparties that fail to meet a credit rating threshold. This provision will not apply to the CECG Power Purchase Agreements, EDFTNA Power Purchase Agreements and any other contracts in effect as of the Effective Date. · • Any transaction or investment to be entered into by the Company or any Company Generation-Sub with a term greater than three years must be approved by the Board of Directors. · • The Company will ensure that long-term investment or contractual decisions are based on an explicit consideration of risk exposure, employ a consistent risk/return approach (identifying the impact of the transaction on the Company’s net consolidated exposure) and serve to implement the Company’s risk management strategy. · • The Company’s consolidated physical and financial exposure will be continually assessed and managed by its risk personnel (the “Risk Group”). Certain functions to be provided by the Risk Group may be outsourced to Constellation’s Corporate Risk personnel as of the Effective Date; provided, that the Company establishes an internal risk function within a reasonable period of time after the Effective Date. · • The Risk Group will assess exposure through the use of various risk indicators, including open position analysis, value-at-risk, earnings-at-risk, cash-at-risk, credit risk, operational risk and liquidity risk. · • The Risk Group will develop and implement an auditable deal capture and risk management information system. This system will be designed to update market information (e.g., price, volatilities, volumes) as frequently as possible. · • The Risk Group will deliver risk reports at least monthly to the Board of Directors. Such reports will include a quantitative assessment of the Company’s and each Company Generation-Sub’s financial and physical exposure. · • The Risk Group will develop and implement “alert procedures” which will notify the Board of Directors upon the occurrence of a breach of these Risk Profile Guidelines.

Additional Guidelines. In the case of any exposure to foreign currency (“FX”) markets or interest rate (“IR”) risk associated with the sale or purchase of any commodity (including in connection with nuclear fuel procurement activities), the Company will ensure that its FX and IR risk allocation process is consistent with the hedging strategies it employs in connection with the related commodities. · With respect to counterparty credit risk, the Company will have no non-collateralized exposure to counterparties that fail to meet a credit rating threshold. This provision will not apply to the CECG Power Purchase Agreements, EDFTNA Power Purchase Agreements and any other contracts in effect as of the Effective Date. · Any transaction or investment to be entered into by the Company or any Company Generation-Sub with a term greater than three years must be approved by the Board of Directors. · The Company will ensure that long-term investment or contractual decisions are based on an explicit consideration of risk exposure, employ a consistent risk/return approach (identifying the impact of the transaction on the Company’s net consolidated exposure) and serve to implement the Company’s risk management strategy. · The Company’s consolidated physical and financial exposure will be continually assessed and managed by its risk personnel (the “Risk Group”). Certain functions to be provided by the Risk Group may be outsourced to Constellation’s Corporate Risk personnel as of the Effective Date; provided, that the Company establishes an internal risk function within a reasonable period of time after the Effective Date. · The Risk Group will assess exposure through the use of various risk indicators, including open position analysis, value-at-risk, earnings-at-risk, cash-at-risk, credit risk, operational risk and liquidity risk. · The Risk Group will develop and implement an auditable deal capture and risk management information system. This system will be designed to update market information (e.g., price, volatilities, volumes) as frequently as possible. · The Risk Group will deliver risk reports at least monthly to the Board of Directors. Such reports will include a quantitative assessment of the Company’s and each Company Generation-Sub’s financial and physical exposure. · The Risk Group will develop and implement “alert procedures” which will notify the Board of Directors upon the occurrence of a breach of these Risk Profile Guidelines. · Through the end of 2014, the Risk Group will deliver to the CEG Risk Group and the EDF Risk Group summaries of any agreements in which third-party products are utilized to hedge future deliveries by the Nuclear Units.