Common use of DELIVERY OF OUTPUT Clause in Contracts

DELIVERY OF OUTPUT. This Section 6 shall apply to the delivery of the Purchaser’s Output. Subject to the provisions of this Contract, the District shall make the Purchaser’s Output available to the Purchaser. The District shall make all determinations concerning Rocky Reach’s and Rock Island’s Capacity and minimum generation requirements, and the District shall have the unilateral right to determine the maximum allowable amount of change in Output during any time period. Purchaser’s schedules shall be based on Purchaser’s Output in accordance with Rocky Reach’s and Rock Island’s operational parameters, District Slice Operating Instructions, and the District Business Practices established by the District from time to time. Purchaser’s schedules shall not be less than Purchaser’s Output Percentage of the sum of the minimum generation limits of the Projects as determined by the District, nor shall the sum of all Purchaser’s schedules be greater than Purchaser’s Output Percentage of the sum of the maximum generation limits of the Projects as determined by the District. The Purchaser’s residual reserves equals the Purchaser’s maximum generation limit minus the Purchaser’s aggregated schedules minus the Purchaser’s Canadian Entitlement obligation and any additional reserve obligations required by standards, District Business Practices, and District Slice Operating Instructions. The Purchaser’s residual reserves must be greater than or equal to zero at all times. The Purchaser shall be responsible for keeping its schedules within all Energy production limits applicable, including all limits imposed by the COLA. Purchaser’s schedules are also subject to immediate curtailment in the event of an unplanned outage or other sudden reduction in the Capacity of Rocky Reach and/or Rock Island as a result of Operational Constraints or otherwise. Purchaser’s net schedules are also subject to immediate increase in the event of a sudden increase in the minimum generation limits of Rocky Reach and/or Rock Island as a result of Operational Constraints or otherwise. If the Purchaser pseudo-ties Purchaser’s Output to another BAA, this subsection (c) does not apply. If the Purchaser’s actual schedules after curtailments and adjustments do not comply with this Section (either above the maximum generation limit or below the minimum generation limit), for any hour or portion thereof, the District, at its sole discretion may charge to the Purchaser non-compliance fees in addition to any imbalance charges assessed to Purchaser due to its Organized Market Participation by a market operator or similar entity. The amount of the non-compliance fees shall be calculated by the District for each hour using the following methodology: multiply the absolute value of the maximum 10-minute deviation in the hour (in MW), either over the maximum generation limit or under the minimum generation limit, by $50/MW. If the Purchaser’s actual hourly integrated schedules do not comply with this Section, there will also be an Energy charge for the hourly deviation. The District will enter a transaction with the Purchaser so that the Purchaser’s actual integrated schedule complies with this Section. The price for the Energy that the District provides to the Purchaser pursuant to this subsection will be the greater of Mid-Columbia Powerdex Real Time Hourly Index Price plus $50/MWh or zero. The price for the Energy that the District receives from the Purchaser pursuant to this subsection will be the Mid-Columbia Powerdex Real Time Hourly Index Price minus $50/MWh. If the Mid-Columbia Powerdex Real Time Hourly Index Price is no longer published or not primarily utilized by the industry, the District will select another industry recognized hourly index and notify Purchaser of the index to be used for all hours. If the Purchaser pseudo-ties Purchaser’s Output to another BAA, Purchaser may use Purchaser’s Output to participate in an organized market whether participation occurs by that other BAA joining an organized market, Purchaser offering Puchaser’s Output into the organized market as an external resource, or any other manner allowed within that organized market, provided that Purchaser’s use of Purchaser’s Output also complies with the requirements of the Dynamic Transfer Agreement. If the Purchaser pseudo-ties Purchaser’s Output to another BAA, the remainder of this subsection (d) does not apply. During the term of this Contract, the District may, at its sole discretion, join, contract with, or enable third party participation with a market operator or similar entity (e.g., joining an organized market) which would cause imbalances to be settled by a third party or pursuant to a different methodology. Purchaser shall be responsible for all charges, fees or costs attributable to Purchaser or imposed as a result of Purchaser’s conduct as determined by the District. The District will invoice Purchaser for any charges, fees or costs assessed against the District related to Purchaser’s activities or conduct. In addition, the District shall be entitled to assess Purchaser non-compliance fees related to Purchaser’s scheduling conduct calculated as set forth in this Section 6(d) or District Business Practices. If the Purchaser pseudo-ties Purchaser’s Output to another BAA, this subsection (e) does not apply The amounts owing by the Purchaser to the District pursuant to this Section 6 shall be due and payable per Section 5(c) and subject to the provisions of Sections 5(d), (f), and (g) of this Contract. All commercial efforts must be taken to comply with Section 6. Persistent or repeated non-compliance by Purchaser with Section 6(b) shall also be an Event of Default by the Purchaser as further defined in Section 15 hereof. If Purchaser fails to comply with Section 6(b) for more than 20 hours in any month, the District may at its sole discretion collect additional penalties including tripling the amount of any applicable non-compliance fee for the remainder of the month. Non-compliance by Purchaser due to unexpected reductions in Capacity or increases in minimum generation limits at Rocky Reach or Rock Island may be excused by the District in its sole discretion. If Purchaser fails to comply with Section 6(b) for more than 60 cumulative hours in any three consecutive months of any twelve month period, the District may at its sole discretion consider this to be persistent non-compliance and an Event of Default by the Purchaser as further defined in Section 15 hereof. For the purposes of computing hourly totals in this subsection, if Purchaser fails to comply with Section 6(b) for any portion of an hour, that failure will be counted as if Purchaser had failed to comply for the whole hour. Pond/Storage Account. Purchaser shall be entitled to utilize the Purchaser’s Output Percentage of the Pond/Storage, as defined in Appendix A, available at Rocky Reach and Rock Island. The District shall make determinations concerning the minimum and maximum available Pond/Storage in accordance with Rocky Reach’s and Rock Island’s operational parameters. Purchaser shall make commercially reasonable efforts not to exceed the Purchaser’s Output Percentage of Pond/Storage limits. If Purchaser is utilizing Pond/Storage above or below the Purchaser’s Output Percentage of the Pond/Storage limits in any hour, they will be subject to a non-compliance fee for each hour the Purchaser exceeds or goes below the Purchaser’s Output Percentage of Pond/Storage limits. The amount charged to the Purchaser shall be calculated by the District and will be (a) $3 per MWh for each MWh that the Purchaser’s Pond/Storage account balance exceeds 115 percent of the Purchaser’s Output Percentage of the maximum Pond/Storage limit and (b) $3 per MWh for each MWh that the Purchaser’s Pond/Storage account balance is below the Purchaser’s Output Percentage of the Pond/Storage minimum limit. Purchaser will not be subject to such fees if it is directed by the District to be outside Purchaser’s Output Percentage of Pond/Storage limits. The District will establish and maintain for Purchaser a Pond/Storage account that will reflect the use of Pond/Storage by the Purchaser associated with the Purchaser’s Output Percentage of Rocky Reach and Rock Island during the Contract Term. The District will transfer 30 MWh of Pond/Storage from its Pond/Storage account to the Purchaser’s Pond/Storage account in order to establish a starting balance. The Purchaser must have a minimum Pond/Storage balance of 30 MWh on the last hour of the term of this Contract, which will then be transferred to the District’s Pond/Storage account. If the Purchaser’s Pond/Storage balance is less than 30 MWh, then the District will invoice the Purchaser for the shortage quantity (MWh) at an hourly price equal to the Powerdex hourly Mid-Columbia index ($/MWh) or other recognized hourly index for the last hour of the Contract term. If the Powerdex hourly Mid-Columbia index is no longer published or primarily utilized by the industry, the District will select another industry recognized hourly index and notify Purchaser of the index to be used for all hours. The Purchaser shall make payment pursuant to Sections 5(c), (d), (f), and (g) above. The Purchaser may schedule more than its share of Rocky Reach and Rock Island hourly inflows, determined in accordance with Section 6(b), if the Purchaser has sufficient amount of Energy in its Pond/Storage account. The amount of the Energy scheduled from the Pond/Storage account shall not exceed the Purchaser’s Output Percentage of the sum of the maximum Capacity of the Projects. As allowed under COLA, the Purchaser may buy and/or sell Pond/Storage from or to other Rocky Reach and Rock Island purchasers in order to manage its Pond/Storage balance. Transactions to transfer Pond/Storage shall be made in accordance with COLA. Pond/Storage transfers from one purchaser’s account to another purchaser’s account can be initiated and effectuated in COLA. The Purchaser will be solely responsible to make all commercial arrangements for these transactions. During any hour that spill occurred at either Project due to any reason, the spill will be allocated to purchasers and the District according to COLA. Purchaser Allowable Start Cycles The generating units at the Projects were designed for a limited number of Physical Start Cycles. The Purchaser shall be allocated 412 Purchaser Allowable Start Cycles per calendar year, which is its pro-rata allocation of allowable Physical Start Cycles at the Projects. The Purchaser Allowable Start Cycles per calendar year may increase over the Term of the Contract from 412 per calendar year in 2024 as units are rehabilitated. The District shall provide the Purchaser a monthly assessment of its Purchaser Start Cycles. If the Purchaser Start Cycles exceed the Purchaser Allowable Start Cycles, as determined by the methodology in Appendix C, after each calendar year for the prior year, or at any time at the Purchaser’s request for any period, the Parties shall meet to discuss conditions contributing to the frequency of Purchaser Start Cycles and potential solutions to reduce the frequency of Purchaser Start Cycles without unduly impairing the value of this Contract. The District may establish new or additional District Business Practices and District Slice Operating Instructions that the District considers necessary. Changes may also be made to conform to mandatory reliability standards and any applicable business practices, criteria, and procedures of NERC, WECC, ▇▇ ▇▇▇▇, NWPP, and transmission service providers. In the event the Purchaser determines or has reason to believe that an error has occurred in the District’s after-the-fact COLA accounting, the Purchaser shall notify the District immediately. The District will assist the Purchaser in determining if an error occurred and if so, assist in correcting the error. Any error correction as a result of such errors shall not include or give rise to any monetary compensation or other adjustments to the payments by the Purchaser. Purchaser shall provide to the District, on a real time basis, an estimate of Purchaser’s projected hourly generation requests for Energy from the Projects at xx:20 PPT for the proceeding 96 hours. The accuracy of these hourly generation estimates shall meet the District’s suggested targets. If the Purchaser pseudo-ties Purchaser’s Output to another BAA, this subsection (l) does not apply. During the Term of this Contract, the District will allow up to eight tags sourced at its BAA during the Pre-Schedule Day time frame and up to three additional tags sourced at its BAA per hour during real-time. If the Purchaser pseudo-ties Purchaser’s Output to another BAA, this subsection (m) does not apply. Tags that sink in the District’s BAA will only be allowed for the purpose of pond account management during real-time as defined by the District’s Business Practice. One tag per hour is the limit for real-time tags. No preschedule tags that sink in the District’s BAA are allowed. It is the Purchaser’s responsibility to follow all ▇▇ ▇▇▇▇/WECC/NERC standards, guidelines, and criteria for scheduling and tagging applicable to Purchaser. Further, it is Purchaser’s responsibility to follow all District Slice Operating Instructions and District Business Practices. If the Purchaser pseudo-ties Purchaser’s Output to another BAA, this subsection (o) does not apply. New real-time schedules and adjustments to existing schedules may be made upon request by the Purchaser but must be communicated and tagged by the Purchaser at least 30 minutes prior to the start of each hour except when specifically allowed by District Business Practices or directed by the District. If the Purchaser pseudo-ties Purchaser’s Output to another BAA, this subsection (p) does not apply. Purchaser must provide sufficient reserves to meet the applicable WECC and NERC reliability standards, NWPP Reserve Sharing Agreement obligations, District Business Practices, and District Slice Operating Instructions. The Purchaser’s Output Percentage of the maximum Capacity of the Projects will be reduced by the reserve obligation as described in the District Slice Operating Instructions. The hourly Purchaser’s Canadian Entitlement obligation shall be counted toward meeting the Purchaser’s Output Percentage of the minimum generation limits of the Projects. Scheduling Purchaser’s Output with Hourly or Sub-hourly Schedules Scheduling of Purchaser’s Output shall be as requested by the Purchaser, or its designated scheduling agent, and shall be subject to the limitations set forth in this Contract. Purchaser must schedule its Purchaser’s Output by the use of hourly schedules unless a Dynamic Transfer Agreement or Organized Market Participation Operating Agreement is executed with the District as is described in Section 6(s), (t) and (u). The Purchaser, or its designated scheduling agent, shall provide the District each Pre-Schedule Day, in conformance with prevailing scheduling procedures for scheduling generating resources in the WECC region, hourly schedules of desired Purchaser’s Output deliveries for the following day or days. The schedules will be completed in a time frame consistent with standard industry practices in the WECC region and this Section 6. Such schedules shall be based on the Purchaser’s rights to, and the limits of, Output, and on the probable water supply based on the District’s forecasts of Rocky Reach and Rock Island inflow. The scheduling limits shall be as described in the District Slice Operating Instructions and the District Business Practices, as may be amended by the District from time to time. Scheduling Purchaser’s Output with Dynamic Signal Purchaser may schedule all or a portion of Purchaser’s Output via a dynamic schedule. Dynamic schedules require Purchaser to execute a Dynamic Transfer Agreement with the District. Terms and conditions of the Dynamic Transfer Agreement and timeline for implementation shall be at the sole discretion of the District, and Purchaser shall reimburse the District for all costs associated with setup and implementation of the Dynamic Transfer Agreement. The District may at its sole discretion provide host BA services for purchasers wishing to use a dynamic schedule. Purchaser may schedule all or a portion of Purchase

DELIVERY OF OUTPUT. This Section 6 shall apply to the delivery of the Purchaser’s Output. Subject to the provisions of this Contract, the District shall make the Purchaser’s Output available to the Purchaser. The District shall make all determinations concerning Rocky Reach’s and Rock Island’s Capacity and minimum generation requirements, and the District shall have the unilateral right to determine the maximum allowable amount of change in Output during any time period. Purchaser’s schedules shall be based on Purchaser’s Output in accordance with Rocky Reach’s and Rock Island’s operational parameters, District Slice Operating Instructions, and the District Business Practices established by the District from time to time. Purchaser’s schedules shall not be less than Purchaser’s Output Percentage of the sum of the minimum generation limits of the Projects as determined by the District, nor shall the sum of all Purchaser’s export schedules be greater than Purchaser’s Output Percentage of the sum of the maximum generation limits of the Projects as determined by the District. The Purchaser’s residual reserves equals the Purchaser’s maximum generation limit minus the Purchaser’s aggregated schedules minus the Purchaser’s Canadian Entitlement obligation and any additional reserve obligations required by standards, District Business Practices, and District Slice Operating Instructions. The Purchaser’s residual reserves must be greater than or equal to zero at all times. The Purchaser shall be responsible for keeping its schedules within all Energy production limits applicable, including all limits imposed by the COLA. Purchaser’s schedules are also subject to immediate curtailment in the event of an unplanned outage or other sudden reduction in the Capacity of Rocky Reach and/or Rock Island as a result of Operational Constraints or otherwise. Purchaser’s net schedules are also subject to immediate increase in the event of a sudden increase in the minimum generation limits of Rocky Reach and/or Rock Island as a result of Operational Constraints or otherwise. If the Purchaser pseudo-ties Purchaser’s Output to another BAA, this subsection (c) does not apply. If the Purchaser’s actual schedules after curtailments and adjustments do not comply with this Section (either above the maximum generation limit or below the minimum generation limit), for any hour or portion thereof, the District, at its sole discretion may charge to the Purchaser non-compliance fees in addition to any imbalance charges assessed to Purchaser due to its Organized Market Participation as an EIM Participant by a market operator or similar entity. The amount of the non-compliance fees shall be calculated by the District for each hour using the following methodology: multiply the absolute value of the maximum 10-minute deviation in the hour (in MW), either over the maximum generation limit or under the minimum generation limit, by $50/MW. If the Purchaser’s actual hourly integrated schedules do not comply with this Section, there will also be an Energy charge for the hourly deviation. The District will enter a transaction with the Purchaser so that the Purchaser’s actual integrated schedule complies with this Section. The price for the Energy that the District provides to the Purchaser pursuant to this subsection will be the greater of Mid-Columbia Powerdex Real Time Hourly Index Price plus $50/MWh or zero. The price for the Energy that the District receives from the Purchaser pursuant to this subsection will be the Mid-Columbia Powerdex Real Time Hourly Index Price minus $50/MWh. If the Mid-Columbia Powerdex Real Time Hourly Index Price is no longer published or not primarily utilized by the industry, the District will select another industry recognized hourly index and notify Purchaser of the index to be used for all hours. If the Purchaser pseudo-ties Purchaser’s Output to another BAA, Purchaser may use Purchaser’s Output to participate in an organized market whether participation occurs by that other BAA joining an organized market, Purchaser offering Puchaser’s Output into the organized market as an external resource, or any other manner allowed within that organized market, provided that Purchaser’s use of Purchaser’s Output also complies with the requirements of the Dynamic Transfer Agreement. If the Purchaser pseudo-ties Purchaser’s Output to another BAA, the remainder of this subsection (d) does not apply. During the term of this Contract, the District may, at its sole discretion, join, contract with, or enable third party participation with a market operator or similar entity (e.g., joining an organized marketEIM) which would cause imbalances to be settled by a third party or pursuant to a different methodology. Purchaser shall be responsible for all charges, fees or costs attributable to Purchaser or imposed as a result of Purchaser’s conduct as determined by the District. The District will invoice Purchaser for any charges, fees or costs assessed against the District related to Purchaser’s activities or conduct. In addition, the District shall be entitled to assess Purchaser non-compliance fees related to Purchaser’s scheduling conduct calculated as set forth in this Section 6(d) or District Business Practices. If the Purchaser pseudo-ties Purchaser’s Output to another BAA, this subsection (e) does not apply The amounts owing by the Purchaser to the District pursuant to this Section 6 shall be due and payable per Section 5(c) and subject to the provisions of Sections 5(d), (f), and (g) of this Contract. All commercial efforts must be taken to comply with Section 6. Persistent or repeated non-compliance by Purchaser with Section 6(b) shall also be an Event of Default by the Purchaser as further defined in Section 15 hereof. If Purchaser fails to comply with Section 6(b) for more than 20 hours in any month, the District may at its sole discretion collect additional penalties including tripling the amount of any applicable non-compliance fee for the remainder of the month. Non-compliance by Purchaser due to unexpected reductions in Capacity or increases in minimum generation limits at Rocky Reach or Rock Island may be excused by the District in its sole discretionexcused. If Purchaser fails to comply with Section 6(b) for more than 60 cumulative hours in any three consecutive months of any twelve month period, the District may at its sole discretion consider this to be persistent non-compliance and an Event of Default by the Purchaser as further defined in Section 15 hereof. For the purposes of computing hourly totals in this subsection, if Purchaser fails to comply with Section 6(b) for any portion of an hour, that failure will be counted as if Purchaser had failed to comply for the whole hour. Pond/Storage Account. Purchaser shall be entitled to utilize the Purchaser’s Output Percentage of the Pond/Storage, as defined in Appendix A, available at Rocky Reach and Rock Island. The District shall make determinations concerning the minimum and maximum available Pond/Storage in accordance with Rocky Reach’s and Rock Island’s operational parameters. Purchaser shall make commercially reasonable efforts not to exceed the Purchaser’s Output Percentage of Pond/Storage limits. If Purchaser is utilizing Pond/Storage above or below the Purchaser’s Output Percentage of the Pond/Storage limits in any hour, they will be subject to a non-compliance fee for each hour the Purchaser exceeds or goes below the Purchaser’s Output Percentage of Pond/Storage limits. The amount charged to the Purchaser shall be calculated by the District and will be (a) $3 per MWh for each MWh that the Purchaser’s Pond/Storage account balance exceeds 115 percent of the Purchaser’s Output Percentage of the maximum Pond/Storage limit and (b) $3 per MWh for each MWh that the Purchaser’s Pond/Storage account balance is below the Purchaser’s Output Percentage of the Pond/Storage minimum limit. Purchaser will not be subject to such fees if it is directed by the District to be outside Purchaser’s Output Percentage of Pond/Storage limits. The District will establish and maintain for Purchaser a Pond/Storage account that will reflect the use of Pond/Storage by the Purchaser associated with the Purchaser’s Output Percentage of Rocky Reach and Rock Island during the Contract Term. The District will transfer 30 MWh of Pond/Storage from its Pond/Storage account to the Purchaser’s Pond/Storage account in order to establish a starting balance. The Purchaser must have a minimum Pond/Storage balance of 30 MWh on the last hour of the term of this Contract, which will then be transferred to the District’s Pond/Storage account. If the Purchaser’s Pond/Storage balance is less than 30 MWh, then the District will invoice the Purchaser for the shortage quantity (MWh) at an hourly price equal to the Powerdex hourly Mid-Columbia index ($/MWh) or other recognized hourly index for the last hour of the Contract term. If the Powerdex hourly Mid-Columbia index is no longer published or primarily utilized by the industry, the District will select another industry recognized hourly index and notify Purchaser of the index to be used for all hours. The Purchaser shall make payment pursuant to Sections 5(c), (d), (f), and (g) above. The Purchaser may schedule more than its share of Rocky Reach and Rock Island hourly inflows, determined in accordance with Section 6(b), if the Purchaser has sufficient amount of Energy in its Pond/Storage account. The amount of the Energy scheduled from the Pond/Storage account shall not exceed the Purchaser’s Output Percentage of the sum of the maximum Capacity of the Projects. As allowed under COLA, the Purchaser may buy and/or sell Pond/Storage pond from or to other Rocky Reach and Rock Island purchasers in order to manage its Pond/Storage their pond balance. Transactions to The pond transaction/transfer Pond/Storage shall may be made in accordance with COLA. Pond/Storage COLA transfers from one purchaser’s account to another purchaser’s account can be initiated as directed by the Purchaser and effectuated in COLAsupported by proper documentation. The Purchaser will be solely responsible to make all commercial arrangements for these transactions. During any hour that spill occurred at either Project due to any reason, the spill will be allocated to purchasers and the District according to COLA. Purchaser Allowable Start Cycles The generating units at the Projects were designed for a limited number of Physical Start Cycles. The Purchaser shall be allocated 412 Purchaser Allowable Start Cycles per calendar year, which is its pro-rata allocation of allowable Physical Start Cycles at the Projects. The Purchaser Allowable Start Cycles per calendar year may increase over the Term of the Contract from 412 per calendar year in 2024 as units are rehabilitated. The District shall provide the Purchaser a monthly assessment of its Purchaser Start Cycles. If the Purchaser Start Cycles exceed the Purchaser Allowable Start Cycles, as determined by the methodology in Appendix C, after each calendar year for the prior year, or at any time at the Purchaser’s request for any period, the Parties shall meet to discuss conditions contributing to the frequency of Purchaser Start Cycles and potential solutions to reduce the frequency of Purchaser Start Cycles without unduly impairing the value of this Contract. The District may establish new or additional District Business Practices and District Slice Operating Instructions that the District considers necessary. Changes may also be made to conform to mandatory reliability standards and any applicable business practices, criteria, and procedures of NERC, WECC, ▇▇ ▇▇▇▇, NWPP, and transmission service providers. In the event the Purchaser determines or has reason to believe that an error has occurred in the District’s after-the-fact COLA accounting, the Purchaser shall notify the District immediately. The District will assist the Purchaser in determining if an error occurred and if so, assist in correcting the error. Any error correction as a result of such errors shall not include or give rise to any monetary compensation or other adjustments to the payments by the Purchaser. Purchaser shall provide to the District, on a real time basis, an estimate of Purchaser’s projected hourly generation requests for Energy from the Projects at xx:20 PPT for the proceeding 96 hours. The accuracy of these hourly generation estimates shall meet the District’s suggested targets. If the Purchaser pseudo-ties Purchaser’s Output to another BAA, this subsection (l) does not apply. During the Term of this Contract, the District will allow up to eight tags sourced at its BAA during the Pre-Schedule Day time frame and up to three additional tags sourced at its BAA per hour during real-time. If the Purchaser pseudo-ties Purchaser’s Output to another BAA, this subsection (m) does not apply. Tags that sink in the District’s BAA will only be allowed for the purpose of pond account management during real-time as defined by the District’s Business Practice. One tag per hour is the limit for real-time tags. No preschedule tags that sink in the District’s BAA are allowed. It is the Purchaser’s responsibility to follow all applicable ▇▇ ▇▇▇▇/WECC/NERC standards, guidelines, and criteria for scheduling and tagging applicable to Purchasertagging. Further, it is Purchaser’s responsibility to follow all District Slice Operating Instructions and District Business Practices. If the Purchaser pseudo-ties Purchaser’s Output to another BAA, this subsection (o) does not apply. New real-time schedules and adjustments to existing schedules may be made upon request by the Purchaser but must be communicated and tagged by the Purchaser at least 30 minutes prior to the start of each hour except when specifically allowed by District Business Practices or directed by the District. If the Purchaser pseudo-ties Purchaser’s Output to another BAA, this subsection (p) does not apply. Purchaser must provide sufficient reserves to meet the applicable WECC and NERC reliability standards, NWPP Reserve Sharing Agreement obligations, District Business Practices, and District Slice Operating Instructions. The Purchaser’s Output Percentage of the maximum Capacity of the Projects will be reduced by the reserve obligation as described in the District Slice Operating Instructions. The hourly Purchaser’s Canadian Entitlement obligation associated with Purchaser’s Output Percentage shall be counted toward meeting the Purchaser’s Output Percentage of the minimum generation limits of the Projects. Scheduling Purchaser’s Output with Hourly or Sub-hourly Schedules Scheduling of Purchaser’s Output shall be as requested by the Purchaser, or its designated scheduling agent, and shall be subject to the limitations set forth in this Contract. Purchaser must schedule its Purchaser’s Output by the use of hourly schedules unless a Dynamic Transfer Agreement or Organized Market EIM Participation Operating Agreement is executed with the District as is described in Section 6(s6(r), (ts) and (ut). The Purchaser, or its designated scheduling agent, shall provide the District each Pre-Schedule Day, in conformance with prevailing scheduling procedures for scheduling generating resources in the WECC region, hourly schedules of desired Purchaser’s Output deliveries for the following day or days. The schedules will be completed in a time frame consistent with standard industry practices in the WECC region and this Section 6. Such schedules shall be based on the Purchaser’s rights to, and the limits of, Capacity and Output, and on the probable water supply based on the District’s forecasts of Rocky Reach and Rock Island inflow. The scheduling limits shall be as described in the District Slice Operating Instructions and the District Business Practices, as may be amended by the District from time to time. Scheduling Purchaser’s Output with Dynamic Signal Purchaser may schedule all or a portion of Purchaser’s Output via a dynamic schedule. Dynamic schedules require Purchaser to execute a Dynamic Transfer Agreement with the District. Terms and conditions of the Dynamic Transfer Agreement and timeline for implementation shall be at the sole discretion of the District, and Purchaser shall reimburse the District for all costs associated with setup and implementation of the Dynamic Transfer Agreement. The District may at its sole discretion provide host BA services for purchasers wishing to use a dynamic schedule. Purchaser may schedule all or a portion of PurchasePurchaser’s Output by dynamic signal in accordance with applicable NERC, WECC, and ▇▇ ▇▇▇▇ reliability criteria and in accordance with the requirements of this Section 6 and a Dynamic Transfer Agreement. EIM Participation If the District chooses to become an EIM participant during the term of this Agreement, Purchaser’s Output will be subject to the terms of any EIM agreements with the market operator. The decision to join any EIM, the terms and conditions of any EIM agreements, and the timeline for implementation shall be at the sole discretion of the District. Delivery of Output via a Pseudo Tie Purchaser may elect to take Purchaser’s Output via a pseudo tie with a host BA. A pseudo tie requires Purchaser to execute a Dynamic Transfer Agreement with the District. Terms and conditions of the Dynamic Transfer Agreement and timeline for implementation shall be at the sole discretion of the District and Purchaser shall reimburse the District for all costs associated with setup and implementation of the Dynamic Transfer Agreement. The Purchaser shall preschedule and deliver Purchaser’s share of the Canadian Entitlement from Purchaser’s Output and not from an alternate source. The District may request documentation of the source of such schedules. If Purchaser elects to take Purchaser’s Output via a pseudo tie with a host BA, Purchaser shall preschedule and deliver its share of the Canadian Entitlement obligation from the Purchaser’s host BAA to the District’s BAA. This Canadian Entitlement Energy schedule shall be supplied by the Purchaser’s Output and not from an alternate source. The District may request documentation of the source of such schedules. Purchaser shall be solely responsible for any and all carbon, and/or carbon mitigation costs and obligations caused by Purchaser’s schedules, imports or other activity impacting the District’s BAA for any purpose. Purchaser shall reimburse the District for all costs and expenses incurred by the District as a result of any carbon, and/or carbon mitigation costs and obligations caused by Purchaser’s schedules, imports or other activity impacting the District’s BAA. Any amounts owing by the Purchaser to the District pursuant to this provision shall be due and payable per Section 5(c) and subject to the provisions of Sections 5(d), (f), and (g) of this Contract.

DELIVERY OF OUTPUT. This Section 6 shall apply to the delivery of the Purchaser’s Output. Subject to the provisions of this Contract, the District shall make the Purchaser’s Output available to the Purchaser. The District shall make all determinations concerning Rocky Reach’s and Rock Island’s Capacity and minimum generation requirements, and the District shall have the unilateral right to determine the maximum allowable amount of change in Output during any time period. Purchaser’s schedules shall be based on Purchaser’s Output in accordance with Rocky Reach’s and Rock Island’s operational parameters, District Slice Operating Instructions, and the District Business Practices established by the District from time to time. Purchaser’s schedules shall not be less than Purchaser’s Output Percentage of the sum of the minimum generation limits of the Projects as determined by the District, nor shall the sum of all Purchaser’s export schedules be greater than Purchaser’s Output Percentage of the sum of the maximum generation limits of the Projects as determined by the District. The Purchaser’s residual reserves equals the Purchaser’s maximum generation limit minus the Purchaser’s aggregated schedules minus the Purchaser’s Canadian Entitlement obligation and any additional reserve obligations required by standards, District Business Practices, and District Slice Operating Instructions. The Purchaser’s residual reserves must be greater than or equal to zero at all times. The Purchaser shall be responsible for keeping its schedules within all Energy production limits applicable, including all limits imposed by the COLA. Purchaser’s schedules are also subject to immediate curtailment in the event of an unplanned outage or other sudden reduction in the Capacity of Rocky Reach and/or Rock Island as a result of Operational Constraints or otherwise. Purchaser’s net schedules are also subject to immediate increase in the event of a sudden increase in the minimum generation limits of Rocky Reach and/or Rock Island as a result of Operational Constraints or otherwise. If the Purchaser pseudo-ties Purchaser’s Output to another BAA, this subsection (c) does not apply. If the Purchaser’s actual schedules after curtailments and adjustments do not comply with this Section (either above the maximum generation limit or below the minimum generation limit), for any hour or portion thereof, the District, at its sole discretion may charge to the Purchaser non-compliance fees in addition to any imbalance charges assessed to Purchaser due to its Organized Market Participation by a market operator or similar entitycharges. The amount of the non-compliance fees shall be calculated by the District for each hour using the following methodology: multiply the absolute value of the maximum 10-minute deviation in the hour (in MW), either over the maximum generation limit or under the minimum generation limit, by $50/MW. If the Purchaser’s actual hourly integrated schedules do not comply with this Section, there will also be an Energy charge for the hourly deviation. The District will enter a transaction with the Purchaser so that the Purchaser’s actual integrated schedule complies with this Section. The price for the Energy that the District provides to the Purchaser pursuant to this subsection will be the greater of Mid-Columbia Powerdex Real Time Hourly Index Price plus $50/MWh plus the greater of the Powerdex hourly Mid-Columbia index or zero. The price for the Energy that the District receives from the Purchaser pursuant to this subsection will be the Powerdex hourly Mid-Columbia Powerdex Real Time Hourly Index Price index minus $50/MWh. If the Powerdex hourly Mid-Columbia Powerdex Real Time Hourly Index Price index is no longer published or not primarily utilized by the industry, the District will select another industry recognized hourly index and notify Purchaser of the index to be used for all hoursused. If the Purchaser pseudo-ties Purchaser’s Output to another BAA, Purchaser may use Purchaser’s Output to participate in an organized market whether participation occurs by that other BAA joining an organized market, Purchaser offering Puchaser’s Output into the organized market as an external resource, or any other manner allowed within that organized market, provided that Purchaser’s use of Purchaser’s Output also complies with the requirements of the Dynamic Transfer Agreement. If the Purchaser pseudo-ties Purchaser’s Output to another BAA, the remainder of this subsection (d) does not apply. During the term of this Contract, the District may, at its sole discretion, join, contract with, or enable third party participation with a market operator or similar entity (e.g., joining an organized market) which would cause imbalances to be settled by a third party or pursuant to a different methodology. Purchaser shall be responsible for all charges, fees or costs attributable to Purchaser or imposed as a result of Purchaser’s conduct as determined by the District. The District will invoice Purchaser for any charges, fees or costs assessed against the District related to Purchaser’s activities or conduct. In addition, the District shall be entitled to assess Purchaser non-compliance fees related to Purchaser’s scheduling conduct calculated as set forth in this Section 6(d) or District Business Practices. If the Purchaser pseudo-ties Purchaser’s Output to another BAA, this subsection (e) does not apply The amounts owing by the Purchaser to the District pursuant to this Section 6 provision shall be due and payable per Section 5(c) and subject to the provisions of Sections 5(d), (f), 5(d)(f) and (g) of this Contract. All commercial efforts must be taken to comply with Section 6. Persistent or repeated non-compliance by Purchaser with Section 6(b) shall also be an Event of Default by the Purchaser as further defined in Section 15 hereof. If Purchaser fails to comply with Section 6(b) for more than 20 hours in any month, the District may at its sole discretion collect additional penalties including tripling the amount of any applicable non-compliance fee for the remainder of the month. Non-compliance by Purchaser due to unexpected reductions in Capacity or increases in minimum generation limits at Rocky Reach or Rock Island may be excused by the District in its sole discretionexcused. If Purchaser fails to comply with Section 6(b) for more than 60 cumulative hours in any three consecutive months of any twelve month period, the District may at its sole discretion consider this to be persistent non-compliance and an Event of Default by the Purchaser as further defined in Section 15 hereof. For the purposes of computing hourly totals in this subsection, if Purchaser fails to comply with Section 6(b) for any portion of an hour, that failure will be counted as if Purchaser had failed to comply for the whole hour. During the term of this Contract, the District may, at its sole discretion, join, contract with, or enable third party participation with a market operator or similar entity (EIM Participation) which would cause imbalances to be settled by a third party or pursuant to a different methodology. Purchaser shall be responsible for all charges, fees or costs attributable to Purchaser or imposed as a result of Purchaser’s conduct as determined by the District. The District will invoice Purchaser for any charges, fees or costs assessed to the District related to Purchaser’s activities or conduct. In addition, the District shall be entitled to assess Purchaser non-compliance fees related to Purchaser’s scheduling conduct calculated as set forth in Section 6(c) or District Business Practices. Pond/Storage Account. Purchaser shall be entitled to utilize the Purchaser’s Output Percentage of the Pond/Storage, as defined in Appendix A, available at Rocky Reach and Rock Island. The District shall make determinations concerning the minimum and maximum available Pond/Storage in accordance with Rocky Reach’s and Rock Island’s operational parameters. In no case shall the Purchaser shall make commercially reasonable efforts not to exceed the Purchaser’s Output Percentage of Pond/Storage limits. If Purchaser is utilizing Pond/Storage above or below the Purchaser’s Output Percentage of the Pond/Storage limits in any hour, they will be subject to a non-compliance fee for each hour the Purchaser exceeds or goes below the Purchaser’s Output Percentage of Pond/Storage limits. The amount charged to the Purchaser shall be calculated by the District and will be (a) $3 per MWh for each MWh that the Purchaser’s Pond/Storage account balance exceeds 115 percent of the Purchaser’s Output Percentage of the maximum Pond/Storage limit and (b) $3 per MWh for each MWh that the Purchaser’s Pond/Storage account balance is below the Purchaser’s Output Percentage of the Pond/Storage minimum limit. Purchaser will not be subject to such fees if it is directed by the District to be outside Purchaser’s Output Percentage of Pond/Storage limits. The District will establish and maintain for Purchaser a Pond/Storage account that will reflect the use of Pond/Storage by the Purchaser associated with the Purchaser’s Output Percentage of Rocky Reach and Rock Island during the Contract Termrelevant Delivery Periods. The District will transfer 30 MWh of Pond/Storage from its Pond/Storage account to the Purchaser’s Pond/Storage account in order to establish a starting balance. The Purchaser must have a minimum Pond/Storage balance of 30 MWh on the last hour of the term of this Contract, which will then be transferred to the District’s Pond/Storage account. If the Purchaser’s Pond/Storage balance is less than 30 MWh, then the District will invoice the Purchaser for the shortage quantity (MWh) at an hourly price equal to the Powerdex hourly Mid-Columbia index ($/MWh) or other recognized hourly index for the last hour of the Contract term. If the Powerdex hourly Mid-Columbia index is no longer published or primarily utilized by the industry, the District will select another industry recognized hourly index and notify Purchaser of the index to be used for all hoursused. The Purchaser shall make payment pursuant to Sections 5(c), (d), 5(c)(d) (f), ) and (g) above. The Purchaser may schedule more than its share of Rocky Reach and Rock Island hourly inflows, determined in accordance with Section 6(b), if the Purchaser has sufficient amount of Energy in its Pond/Storage account. The amount of the Energy scheduled from the Pond/Storage account shall not exceed the Purchaser’s Output Percentage of the sum of the maximum Capacity of the Projects. As allowed under COLA, the Purchaser may buy and/or sell Pond/Storage pond from or to other Rocky Reach and Rock Island purchasers in order to manage its Pond/Storage their pond balance. Transactions to The pond transaction/transfer Pond/Storage shall may be made in accordance with COLA. Pond/Storage COLA transfers from one purchaser’s account to another purchaser’s account can be initiated as directed by the Purchaser and effectuated in COLAsupported by proper documentation. The Purchaser will be solely responsible to make all commercial arrangements for these transactions. During any hour that spill occurred at either Project due to any reason, the spill will be allocated to purchasers and the District according to COLA. Purchaser Allowable Start Cycles The generating units at the Projects were designed for a limited number of Physical Start Cycles. The Purchaser shall be allocated 412 Purchaser Allowable Start Cycles per calendar year, which is its pro-rata allocation of allowable Physical Start Cycles at the Projects. The Purchaser Allowable Start Cycles per calendar year may increase over the Term of the Contract from 412 per calendar year in 2024 as units are rehabilitated. The District shall provide the Purchaser a monthly assessment of its Purchaser Start Cycles. If the Purchaser Start Cycles exceed the Purchaser Allowable Start Cycles, as determined by the methodology in Appendix C, after each calendar year for the prior year, or at any time at the Purchaser’s request for any period, the Parties shall meet to discuss conditions contributing to the frequency of Purchaser Start Cycles and potential solutions to reduce the frequency of Purchaser Start Cycles without unduly impairing the value of this Contract. The District may establish new or additional District Business Practices and District Slice Operating Instructions that the District considers necessary. Changes may also be made to conform to mandatory reliability standards and any applicable business practices, criteria, and procedures of NERC, WECC, ▇▇ ▇▇▇▇CAISO RC, NWPP, and transmission service providers. In the event the Purchaser determines or has reason to believe that an error has occurred in the District’s after-the-fact COLA accounting, the Purchaser shall notify the District immediately. The District will assist the Purchaser in determining if an error occurred and if so, assist in correcting the error. Any error correction as a result of such errors shall not include or give rise to any monetary compensation or other adjustments to the payments by the Purchaser. Purchaser shall provide to the District, on a real time basis, an estimate of Purchaser’s projected hourly generation requests for Energy from the Projects at xx:20 PPT for the proceeding 96 hours. The accuracy of these hourly generation estimates shall meet the District’s suggested targets. If the Purchaser pseudo-ties Purchaser’s Output to another BAA, this subsection (l) does not apply. During the Term of this Contractall Delivery Periods for Slice Products 32 and 33, the District will allow up to eight four tags sourced at its BAA balancing authority area during the Pre-Schedule Day time frame and up to three additional tags sourced at its BAA balancing authority area per hour during real-time. If During all Delivery Periods for Slice Product 34, the Purchaser pseudoDistrict will allow up to eight tags sourced at its balancing authority area during the Pre-ties Purchaser’s Output Schedule Day time frame and up to another BAA, this subsection (m) does not applythree additional tags sourced at its balancing authority area per hour during real-time. Tags that sink in the District’s BAA balancing authority area will only be allowed for the purpose of pond account management during real-time as defined by the District’s Business Practicetime. One tag per hour is the limit for real-time tags. No preschedule tags that sink in the District’s BAA balancing authority area are allowed. Pond account or pond management purposes are defined by the District’s Business Practices. It is the Purchaser’s responsibility to follow all ▇▇ ▇▇▇▇/WECCapplicable CAISO RC/WECC/NERC standards, guidelines, and criteria for scheduling and tagging applicable to Purchasertagging. Further, it is Purchaser’s responsibility to follow all District Slice Operating Instructions and District Business Practices. If the Purchaser pseudo-ties Purchaser’s Output to another BAA, this subsection (o) does not apply. New real-time schedules and adjustments to existing schedules may be made upon request by the Purchaser but must be communicated and tagged by the Purchaser at least 30 minutes prior to the start of each hour except when specifically allowed by District Business Practices or directed by the District. If the Purchaser pseudo-ties Purchaser’s Output to another BAA, this subsection (p) does not apply. Purchaser must provide sufficient reserves to meet the applicable WECC and NERC reliability standards, NWPP Reserve Sharing Agreement obligations, District Business Practices, and District Slice Operating Instructions. The Purchaser’s Output Percentage of the maximum Capacity of the Projects will be reduced by the reserve obligation as described in the District Slice Operating Instructions. The hourly Purchaser’s Canadian Entitlement Allocation Extension Agreement obligation shall be counted toward meeting the Purchaser’s Output Percentage of the minimum generation limits of the Projects. Scheduling Purchaser’s Output with Hourly or Sub-hourly Schedules Scheduling of Purchaser’s Output shall be as requested by the Purchaser, or its designated scheduling agent, and shall be subject to the limitations set forth in this Contract. Purchaser must schedule its Purchaser’s Output by the use of hourly schedules unless a Dynamic Transfer Agreement or Organized Market EIM Participation Operating Agreement is executed with the District as is described in Section 6(s), 6(q) (tr) and (us). The Purchaser, or its designated scheduling agent, shall provide the District each Pre-Schedule Day, in conformance with prevailing scheduling procedures for scheduling generating resources in the WECC region, hourly schedules of desired Purchaser’s Output deliveries for the following day or days. The schedules will be completed in a time frame consistent with standard industry practices in the WECC region and this Section 6. Such schedules shall be based on the Purchaser’s rights to, and the limits of, Capacity and Output, and on the probable water supply based on the U.S. Army Corp of Engineers Chief ▇▇▇▇▇▇ discharge estimates (or if those estimates are unavailable, the District’s Chief ▇▇▇▇▇▇ discharge estimates) and the District’s forecasts of side streams (inflow) of Rocky Reach and Rock Island inflowIsland. The scheduling limits shall be as described in the District Slice Operating Instructions and the District Business Practices, as may be amended by the District from time to time. Scheduling Purchaser’s Output with Dynamic Signal Purchaser may schedule all or a portion of Purchaser’s Output via a dynamic schedule. Dynamic schedules require Purchaser to execute a Dynamic Transfer Agreement with the District. Terms and conditions of the Dynamic Transfer Agreement and timeline for implementation shall be at the sole discretion of the District, and Purchaser shall reimburse the District for all costs associated with setup and implementation of the Dynamic Transfer Agreement. The District may at its sole discretion provide host BA services for purchasers wishing to use a dynamic schedule. Purchaser may schedule all or a portion of PurchasePurchaser’s Output by dynamic signal in accordance with applicable NERC, WECC, and CAISO RC reliability criteria and in accordance with the requirements of this Section 6 and a Dynamic Transfer Agreement. EIM Participation If the District chooses to become an EIM participant during the term of this Agreement, Purchaser’s Output will be subject to the terms of any EIM agreements with the market operator. The decision to join any EIM, the terms and conditions of any EIM agreements, and the timeline for implementation shall be at the sole discretion of the District. Delivery of Output via a Pseudo Tie Purchaser may elect to take Purchaser’s Output via a pseudo tie with a host BA. A pseudo tie requires Purchaser to execute a pseudo tie agreement with the District. Terms and conditions of the pseudo tie agreement and timeline for implementation shall be at the sole discretion of the District and Purchaser shall reimburse the District for all costs associated with setup and implementation of the pseudo tie agreement. The Purchaser shall preschedule and deliver the Canadian Entitlement Allocation Extension Agreement obligation from the Purchaser’s host balancing authority area to the District’s balancing authority area. This Canadian Entitlement Energy schedule shall be supplied by the Purchaser’s Output and not from an alternate source. The District may request documentation of the source of such schedules. Purchaser shall be solely responsible for any and all carbon, and/or carbon mitigation costs and obligations caused by Purchaser’s schedules, imports or other activity impacting the District’s balancing authority area for any purpose. Purchaser shall reimburse the District for all costs and expenses incurred by the District as a result of any carbon, and/or carbon mitigation costs and obligations caused by Purchaser’s schedules, imports or other activity impacting the District’s balancing authority area. Any amounts owing by the Purchaser t

DELIVERY OF OUTPUT. This Section 6 shall apply to the delivery of the Purchaser’s Output. Subject to the provisions of this Contract, the District shall make the Purchaser’s Output available to the Purchaser. The District shall make all determinations concerning Rocky Reach’s and Rock Island’s Capacity and minimum generation requirements, and the District shall have the unilateral right to determine the maximum allowable amount of change in Output during any time period. Purchaser’s schedules shall be based on Purchaser’s Output in accordance with Rocky Reach’s and Rock Island’s operational parameters, District Slice Operating Instructions, and the District Business Practices established by the District from time to time. Purchaser’s schedules shall not be less than Purchaser’s Output Percentage of the sum of the minimum generation limits of the Projects as determined by the District, nor shall the sum of all Purchaser’s export schedules be greater than Purchaser’s Output Percentage of the sum of the maximum generation limits of the Projects as determined by the District. The Purchaser’s residual reserves equals the Purchaser’s maximum generation limit minus the Purchaser’s aggregated schedules minus the Purchaser’s Canadian Entitlement obligation and any additional reserve obligations required by standards, District Business Practices, and District Slice Operating Instructions. The Purchaser’s residual reserves must be greater than or equal to zero at all times. The Purchaser shall be responsible for keeping its schedules within all Energy production limits applicable, including all limits imposed by the COLA. Purchaser’s schedules are also subject to immediate curtailment in the event of an unplanned outage or other sudden reduction in the Capacity of Rocky Reach and/or Rock Island as a result of Operational Constraints or otherwise. Purchaser’s net schedules are also subject to immediate increase in the event of a sudden increase in the minimum generation limits of Rocky Reach and/or Rock Island as a result of Operational Constraints or otherwise. If the Purchaser pseudo-ties Purchaser’s Output to another BAA, this subsection (c) does not apply. If the Purchaser’s actual schedules after curtailments and adjustments do not comply with this Section (either above the maximum generation limit or below the minimum generation limit), for any hour or portion thereof, the District, at its sole discretion may charge to the Purchaser non-compliance fees in addition to any imbalance charges assessed to Purchaser due to its Organized Market Participation as an EIM Participant by a market operator or similar entity. The amount of the non-compliance fees shall be calculated by the District for each hour using the following methodology: multiply the absolute value of the maximum 10-minute deviation in the hour (in MW), either over the maximum generation limit or under the minimum generation limit, by $50/MW. If the Purchaser’s actual hourly integrated schedules do not comply with this Section, there will also be an Energy charge for the hourly deviation. The District will enter a transaction with the Purchaser so that the Purchaser’s actual integrated schedule complies with this Section. The price for the Energy that the District provides to the Purchaser pursuant to this subsection will be the greater of Mid-Columbia Powerdex Real Time Hourly Index Price plus $50/MWh or zero. The price for the Energy that the District receives from the Purchaser pursuant to this subsection will be the Mid-Columbia Powerdex Real Time Hourly Index Price minus $50/MWh. If the Mid-Columbia Powerdex Real Time Hourly Index Price is no longer published or not primarily utilized by the industry, the District will select another industry recognized hourly index and notify Purchaser of the index to be used for all hours. If the Purchaser pseudo-ties Purchaser’s Output to another BAA, Purchaser may use Purchaser’s Output to participate in an organized market whether participation occurs by that other BAA joining an organized market, Purchaser offering Puchaser’s Output into the organized market as an external resource, or any other manner allowed within that organized market, provided that Purchaser’s use of Purchaser’s Output also complies with the requirements of the Dynamic Transfer Agreement. If the Purchaser pseudo-ties Purchaser’s Output to another BAA, the remainder of this subsection (d) does not apply. During the term of this Contract, the District may, at its sole discretion, join, contract with, or enable third party participation with a market operator or similar entity (e.g., joining an organized marketEIM) which would cause imbalances to be settled by a third party or pursuant to a different methodology. Purchaser shall be responsible for all charges, fees or costs attributable to Purchaser or imposed as a result of Purchaser’s conduct as determined by the District. The District will invoice Purchaser for any charges, fees or costs assessed against the District related to Purchaser’s activities or conduct. In addition, the District shall be entitled to assess Purchaser non-compliance fees related to Purchaser’s scheduling conduct calculated as set forth in this Section 6(d) or District Business Practices. If the Purchaser pseudo-ties Purchaser’s Output to another BAA, this subsection (e) does not apply The amounts owing by the Purchaser to the District pursuant to this Section 6 shall be due and payable per Section 5(c) and subject to the provisions of Sections 5(d), (f), and (g) of this Contract. All commercial efforts must be taken to comply with Section 6. Persistent or repeated non-compliance by Purchaser with Section 6(b) shall also be an Event of Default by the Purchaser as further defined in Section 15 hereof. If Purchaser fails to comply with Section 6(b) for more than 20 hours in any month, the District may at its sole discretion collect additional penalties including tripling the amount of any applicable non-compliance fee for the remainder of the month. Non-compliance by Purchaser due to unexpected reductions in Capacity or increases in minimum generation limits at Rocky Reach or Rock Island may be excused by the District in its sole discretionexcused. If Purchaser fails to comply with Section 6(b) for more than 60 cumulative hours in any three consecutive months of any twelve month period, the District may at its sole discretion consider this to be persistent non-compliance and an Event of Default by the Purchaser as further defined in Section 15 hereof. For the purposes of computing hourly totals in this subsection, if Purchaser fails to comply with Section 6(b) for any portion of an hour, that failure will be counted as if Purchaser had failed to comply for the whole hour. Pond/Storage Account. Purchaser shall be entitled to utilize the Purchaser’s Output Percentage of the Pond/Storage, as defined in Appendix A, available at Rocky Reach and Rock Island. The District shall make determinations concerning the minimum and maximum available Pond/Storage in accordance with Rocky Reach’s and Rock Island’s operational parameters. Purchaser shall make commercially reasonable efforts not to exceed the Purchaser’s Output Percentage of Pond/Storage limits. If Purchaser is utilizing Pond/Storage above or below the Purchaser’s Output Percentage of the Pond/Storage limits in any hour, they will be subject to a non-compliance fee for each hour the Purchaser exceeds or goes below the Purchaser’s Output Percentage of Pond/Storage limits. The amount charged to the Purchaser shall be calculated by the District and will be (a) $3 per MWh for each MWh that the Purchaser’s Pond/Storage account balance exceeds 115 percent of the Purchaser’s Output Percentage of the maximum Pond/Storage limit and (b) $3 per MWh for each MWh that the Purchaser’s Pond/Storage account balance is below the Purchaser’s Output Percentage of the Pond/Storage minimum limit. Purchaser will not be subject to such fees if it is directed by the District to be outside Purchaser’s Output Percentage of Pond/Storage limits. The District will establish and maintain for Purchaser a Pond/Storage account that will reflect the use of Pond/Storage by the Purchaser associated with the Purchaser’s Output Percentage of Rocky Reach and Rock Island during the Contract Term. The District will transfer 30 MWh of Pond/Storage from its Pond/Storage account to the Purchaser’s Pond/Storage account in order to establish a starting balance. The Purchaser must have a minimum Pond/Storage balance of 30 MWh on the last hour of the term of this Contract, which will then be transferred to the District’s Pond/Storage account. If the Purchaser’s Pond/Storage balance is less than 30 MWh, then the District will invoice the Purchaser for the shortage quantity (MWh) at an hourly price equal to the Powerdex hourly Mid-Columbia index ($/MWh) or other recognized hourly index for the last hour of the Contract term. If the Powerdex hourly Mid-Columbia index is no longer published or primarily utilized by the industry, the District will select another industry recognized hourly index and notify Purchaser of the index to be used for all hours. The Purchaser shall make payment pursuant to Sections 5(c), (d), (f), and (g) above. The Purchaser may schedule more than its share of Rocky Reach and Rock Island hourly inflows, determined in accordance with Section 6(b), if the Purchaser has sufficient amount of Energy in its Pond/Storage account. The amount of the Energy scheduled from the Pond/Storage account shall not exceed the Purchaser’s Output Percentage of the sum of the maximum Capacity of the Projects. As allowed under COLA, the Purchaser may buy and/or sell Pond/Storage pond from or to other Rocky Reach and Rock Island purchasers in order to manage its Pond/Storage their pond balance. Transactions to The pond transaction/transfer Pond/Storage shall may be made in accordance with COLA. Pond/Storage COLA transfers from one purchaser’s account to another purchaser’s account can be initiated as directed by the Purchaser and effectuated in COLAsupported by proper documentation. The Purchaser will be solely responsible to make all commercial arrangements for these transactions. During any hour that spill occurred at either Project due to any reason, the spill will be allocated to purchasers and the District according to COLA. Purchaser Allowable Start Cycles Virtual Unit Start/Stop allowance. The generating units at the Projects were designed for a limited number of Physical Start Cyclesstart/stop cycles. The Purchaser shall be allocated 412 Purchaser Allowable Start Cycles have an allowance of 318 adjusted virtual start cycles per calendar year, which is its pro-rata allocation of target allowable Physical Start Cycles virtual start cycles at the Projects. The Purchaser Allowable Start Cycles target allowable virtual start cycles per calendar year may increase over the Term term of the Contract contract from 412 318 per calendar year in 2024 2022 as the Rock Island powerhouse two units are rehabilitated. The District shall provide the Purchaser a monthly assessment of its Purchaser Start Cyclesvirtual start cycles. If the Purchaser Start Cycles exceed the Purchaser Allowable Start Cyclesexceeds its annual allowance, as determined by the methodology in Appendix C, after each calendar year for the prior year, of virtual start cycles, or at any time at the Purchaser’s request for any periodrequest, the Parties shall meet to discuss conditions contributing to the frequency of Purchaser Start Cycles virtual start cycles and potential solutions to reduce the frequency of Purchaser Start Cycles virtual start cycles without unduly impairing the value of this ContractAgreement. The District may establish new or additional District Business Practices and District Slice Operating Instructions that the District considers necessary. Changes may also be made to conform to mandatory reliability standards and any applicable business practices, criteria, and procedures of NERC, WECC, ▇▇ ▇▇▇▇, NWPP, and transmission service providers. In the event the Purchaser determines or has reason to believe that an error has occurred in the District’s after-the-fact COLA accounting, the Purchaser shall notify the District immediately. The District will assist the Purchaser in determining if an error occurred and if so, assist in correcting the error. Any error correction as a result of such errors shall not include or give rise to any monetary compensation or other adjustments to the payments by the Purchaser. Purchaser shall provide to the District, on a real time basis, an estimate of Purchaser’s projected hourly generation requests for Energy from the Projects at xx:20 PPT for the proceeding 96 hours. The accuracy of these hourly generation estimates shall meet the District’s suggested targets. If the Purchaser pseudo-ties Purchaser’s Output to another BAA, this subsection (l) does not apply. During the Term of this Contract, the District will allow up to eight tags sourced at its BAA balancing authority areaBAA during the Pre-Schedule Day time frame and up to three additional tags sourced at its BAA balancing authority areaBAA per hour during real-time. If the Purchaser pseudo-ties Purchaser’s Output to another BAA, this subsection (m) does not apply. Tags that sink in the District’s BAA balancing authority areaBAA will only be allowed for the purpose of pond account management during real-time as defined by the District’s Business Practice. One tag per hour is the limit for real-time tags. No preschedule tags that sink in the District’s BAA balancing authority areaBAA are allowed. It is the Purchaser’s responsibility to follow all applicable ▇▇ ▇▇▇▇/WECC/NERC standards, guidelines, and criteria for scheduling and tagging applicable to Purchasertagging. Further, it is Purchaser’s responsibility to follow all District Slice Operating Instructions and District Business Practices. If the Purchaser pseudo-ties Purchaser’s Output to another BAA, this subsection (o) does not apply. New real-time schedules and adjustments to existing schedules may be made upon request by the Purchaser but must be communicated and tagged by the Purchaser at least 30 minutes prior to the start of each hour except when specifically allowed by District Business Practices or directed by the District. If the Purchaser pseudo-ties Purchaser’s Output to another BAA, this subsection (p) does not apply. Purchaser must provide sufficient reserves to meet the applicable WECC and NERC reliability standards, NWPP Reserve Sharing Agreement obligations, District Business Practices, and District Slice Operating Instructions. The Purchaser’s Output Percentage of the maximum Capacity of the Projects will be reduced by the reserve obligation as described in the District Slice Operating Instructions. The hourly Purchaser’s Canadian Entitlement obligation associated with Purchaser’s Output Percentage shall be counted toward meeting the Purchaser’s Output Percentage of the minimum generation limits of the Projects. Scheduling Purchaser’s Output with Hourly or Sub-hourly Schedules Scheduling of Purchaser’s Output shall be as requested by the Purchaser, or its designated scheduling agent, and shall be subject to the limitations set forth in this Contract. Purchaser must schedule its Purchaser’s Output by the use of hourly schedules unless a Dynamic Transfer Agreement or Organized Market EIM Participation Operating Agreement is executed with the District as is described in Section 6(s6(r), (s), (t) and (uut). The Purchaser, or its designated scheduling agent, shall provide the District each Pre-Schedule Day, in conformance with prevailing scheduling procedures for scheduling generating resources in the WECC region, hourly schedules of desired Purchaser’s Output deliveries for the following day or days. The schedules will be completed in a time frame consistent with standard industry practices in the WECC region and this Section 6. Such schedules shall be based on the Purchaser’s rights to, and the limits of, Capacity and Output, and on the probable water supply based on the District’s forecasts of Rocky Reach and Rock Island inflow. The scheduling limits shall be as described in the District Slice Operating Instructions and the District Business Practices, as may be amended by the District from time to time. Scheduling Purchaser’s Output with Dynamic Signal Purchaser may schedule all or a portion of Purchaser’s Output via a dynamic schedule. Dynamic schedules require Purchaser to execute a Dynamic Transfer Agreement with the District. Terms and conditions of the Dynamic Transfer Agreement and timeline for implementation shall be at the sole discretion of the District, and Purchaser shall reimburse the District for all costs associated with setup and implementation of the Dynamic Transfer Agreement. The District may at its sole discretion provide host BA services for purchasers wishing to use a dynamic schedule. Purchaser may schedule all or a portion of PurchasePurchaser’s Output by dynamic signal in accordance with applicable NERC, WECC, and ▇▇ ▇▇▇▇ reliability criteria and in accordance with the requirements of this Section 6 and a Dynamic Transfer Agreement. EIM Participation If the District chooses to become an EIM participant during the term of this Agreement, Purchaser’s Output will be subject to the terms of any EIM agreements with the market operator. The decision to join any EIM, the terms and conditions of any EIM agreements, and the timeline for implementation shall be at the sole discretion of the District. Delivery of Output via a Pseudo Tie Purchaser may elect to take Purchaser’s Output via a pseudo tie with a host BA. A pseudo tie requires Purchaser to execute a Dynamic Transfer Agreement with the District. Terms and conditions of the Dynamic Transfer Agreement and timeline for implementation shall be at the sole discretion of the District and Purchaser shall reimburse the District for all costs associated with setup and implementation of the Dynamic Transfer Agreement. The Purchaser shall preschedule and deliver Purchaser’s share of the Canadian Entitlement from Purchaser’s Output and not from an alternate source. The District may request documentation of the source of such schedules. If Purchas

DELIVERY OF OUTPUT. This Section 6 shall apply to the delivery of the Purchaser’s Output. Subject to the provisions of this Contract, the District shall make the Purchaser’s Output available to the Purchaser. The District shall make all determinations concerning Rocky Reach’s and Rock Island’s Capacity and minimum generation requirements, and the District shall have the unilateral right to determine the maximum allowable amount of change in Output during any time period. Purchaser’s schedules shall be based on Purchaser’s Output in accordance with Rocky Reach’s and Rock Island’s operational parameters, District Slice Operating Instructions, and the District Business Practices established by the District from time to time. Purchaser’s schedules shall not be less than Purchaser’s Output Percentage of the sum of the minimum generation limits of the Projects as determined by the District, nor shall the sum of all Purchaser’s export schedules be greater than Purchaser’s Output Percentage of the sum of the maximum generation limits of the Projects as determined by the District. The Purchaser’s residual reserves equals the Purchaser’s maximum generation limit minus the Purchaser’s aggregated schedules minus the Purchaser’s Canadian Entitlement obligation and any additional reserve obligations required by standards, District Business Practices, and District Slice Operating Instructions. The Purchaser’s residual reserves must be greater than or equal to zero at all times. The Purchaser shall be responsible for keeping its schedules within all Energy production limits applicable, including all limits imposed by the COLA. Purchaser’s schedules are also subject to immediate curtailment in the event of an unplanned outage or other sudden reduction in the Capacity of Rocky Reach and/or Rock Island as a result of Operational Constraints or otherwise. Purchaser’s net schedules are also subject to immediate increase in the event of a sudden increase in the minimum generation limits of Rocky Reach and/or Rock Island as a result of Operational Constraints or otherwise. If the Purchaser pseudo-ties Purchaser’s Output to another BAA, this subsection (c) does not apply. If the Purchaser’s actual schedules after curtailments and adjustments do not comply with this Section (either above the maximum generation limit or below the minimum generation limit), for any hour or portion thereof, the District, at its sole discretion may charge to the Purchaser non-compliance fees in addition to any imbalance charges assessed to Purchaser due to its Organized Market Participation as an EIM Participant by a market operator or similar entity. The amount of the non-compliance fees shall be calculated by the District for each hour using the following methodology: multiply the absolute value of the maximum 10-minute deviation in the hour (in MW), either over the maximum generation limit or under the minimum generation limit, by $50/MW. If the Purchaser’s actual hourly integrated schedules do not comply with this Section, there will also be an Energy charge for the hourly deviation. The District will enter a transaction with the Purchaser so that the Purchaser’s actual integrated schedule complies with this Section. The price for the Energy that the District provides to the Purchaser pursuant to this subsection will be the greater of Mid-Columbia Powerdex Real Time Hourly Index Price plus $50/MWh or zero. The price for the Energy that the District receives from the Purchaser pursuant to this subsection will be the Mid-Columbia Powerdex Real Time Hourly Index Price minus $50/MWh. If the Mid-Columbia Powerdex Real Time Hourly Index Price is no longer published or not primarily utilized by the industry, the District will select another industry recognized hourly index and notify Purchaser of the index to be used for all hours. If the Purchaser pseudo-ties Purchaser’s Output to another BAA, Purchaser may use Purchaser’s Output to participate in an organized market whether participation occurs by that other BAA joining an organized market, Purchaser offering Puchaser’s Output into the organized market as an external resource, or any other manner allowed within that organized market, provided that Purchaser’s use of Purchaser’s Output also complies with the requirements of the Dynamic Transfer Agreement. If the Purchaser pseudo-ties Purchaser’s Output to another BAA, the remainder of this subsection (d) does not apply. During the term of this Contract, the District may, at its sole discretion, join, contract with, or enable third party participation with a market operator or similar entity (e.g., joining an organized marketEIM) which would cause imbalances to be settled by a third party or pursuant to a different methodology. Purchaser shall be responsible for all charges, fees or costs attributable to Purchaser or imposed as a result of Purchaser’s conduct as determined by the District. The District will invoice Purchaser for any charges, fees or costs assessed against the District related to Purchaser’s activities or conduct. In addition, the District shall be entitled to assess Purchaser non-compliance fees related to Purchaser’s scheduling conduct calculated as set forth in this Section 6(d) or District Business Practices. If the Purchaser pseudo-ties Purchaser’s Output to another BAA, this subsection (e) does not apply The amounts owing by the Purchaser to the District pursuant to this Section 6 shall be due and payable per Section 5(c) and subject to the provisions of Sections 5(d), (f), and (g) of this Contract. All commercial efforts must be taken to comply with Section 6. Persistent or repeated non-compliance by Purchaser with Section 6(b) shall also be an Event of Default by the Purchaser as further defined in Section 15 hereof. If Purchaser fails to comply with Section 6(b) for more than 20 hours in any month, the District may at its sole discretion collect additional penalties including tripling the amount of any applicable non-compliance fee for the remainder of the month. Non-compliance by Purchaser due to unexpected reductions in Capacity or increases in minimum generation limits at Rocky Reach or Rock Island may be excused by the District in its sole discretionexcused. If Purchaser fails to comply with Section 6(b) for more than 60 cumulative hours in any three consecutive months of any twelve month period, the District may at its sole discretion consider this to be persistent non-compliance and an Event of Default by the Purchaser as further defined in Section 15 hereof. For the purposes of computing hourly totals in this subsection, if Purchaser fails to comply with Section 6(b) for any portion of an hour, that failure will be counted as if Purchaser had failed to comply for the whole hour. Pond/Storage Account. Purchaser shall be entitled to utilize the Purchaser’s Output Percentage of the Pond/Storage, as defined in Appendix A, available at Rocky Reach and Rock Island. The District shall make determinations concerning the minimum and maximum available Pond/Storage in accordance with Rocky Reach’s and Rock Island’s operational parameters. Purchaser shall make commercially reasonable efforts not to exceed the Purchaser’s Output Percentage of Pond/Storage limits. If Purchaser is utilizing Pond/Storage above or below the Purchaser’s Output Percentage of the Pond/Storage limits in any hour, they will be subject to a non-compliance fee for each hour the Purchaser exceeds or goes below the Purchaser’s Output Percentage of Pond/Storage limits. The amount charged to the Purchaser shall be calculated by the District and will be (a) $3 per MWh for each MWh that the Purchaser’s Pond/Storage account balance exceeds 115 percent of the Purchaser’s Output Percentage of the maximum Pond/Storage limit and (b) $3 per MWh for each MWh that the Purchaser’s Pond/Storage account balance is below the Purchaser’s Output Percentage of the Pond/Storage minimum limit. Purchaser will not be subject to such fees if it is directed by the District to be outside Purchaser’s Output Percentage of Pond/Storage limits. The District will establish and maintain for Purchaser a Pond/Storage account that will reflect the use of Pond/Storage by the Purchaser associated with the Purchaser’s Output Percentage of Rocky Reach and Rock Island during the Contract Term. The District will transfer 30 MWh of Pond/Storage from its Pond/Storage account to the Purchaser’s Pond/Storage account in order to establish a starting balance. The Purchaser must have a minimum Pond/Storage balance of 30 MWh on the last hour of the term of this Contract, which will then be transferred to the District’s Pond/Storage account. If the Purchaser’s Pond/Storage balance is less than 30 MWh, then the District will invoice the Purchaser for the shortage quantity (MWh) at an hourly price equal to the Powerdex hourly Mid-Columbia index ($/MWh) or other recognized hourly index for the last hour of the Contract term. If the Powerdex hourly Mid-Columbia index is no longer published or primarily utilized by the industry, the District will select another industry recognized hourly index and notify Purchaser of the index to be used for all hours. The Purchaser shall make payment pursuant to Sections 5(c), (d), (f), and (g) above. The Purchaser may schedule more than its share of Rocky Reach and Rock Island hourly inflows, determined in accordance with Section 6(b), if the Purchaser has sufficient amount of Energy in its Pond/Storage account. The amount of the Energy scheduled from the Pond/Storage account shall not exceed the Purchaser’s Output Percentage of the sum of the maximum Capacity of the Projects. As allowed under COLA, the Purchaser may buy and/or sell Pond/Storage pond from or to other Rocky Reach and Rock Island purchasers in order to manage its Pond/Storage their pond balance. Transactions to The pond transaction/transfer Pond/Storage shall may be made in accordance with COLA. Pond/Storage COLA transfers from one purchaser’s account to another purchaser’s account can be initiated as directed by the Purchaser and effectuated in COLAsupported by proper documentation. The Purchaser will be solely responsible to make all commercial arrangements for these transactions. During any hour that spill occurred at either Project due to any reason, the spill will be allocated to purchasers and the District according to COLA. Purchaser Allowable Start Cycles Virtual Unit Start/Stop allowance. The generating units at the Projects were designed for a limited number of Physical Start Cyclesstart/stop cycles. The Purchaser shall be allocated 412 Purchaser Allowable Start Cycles have an allowance of 318 adjusted virtual start cycles per calendar year, which is its pro-rata allocation of target allowable Physical Start Cycles virtual start cycles at the Projects. The Purchaser Allowable Start Cycles target allowable virtual start cycles per calendar year may increase over the Term term of the Contract contract from 412 318 per calendar year in 2024 2022 as the Rock Island powerhouse two units are rehabilitated. The District shall provide the Purchaser a monthly assessment of its Purchaser Start Cyclesvirtual start cycles. If the Purchaser Start Cycles exceed the Purchaser Allowable Start Cyclesexceeds its annual allowance, as determined by the methodology in Appendix C, after each calendar year for the prior year, of virtual start cycles, or at any time at the Purchaser’s request for any periodrequest, the Parties shall meet to discuss conditions contributing to the frequency of Purchaser Start Cycles virtual start cycles and potential solutions to reduce the frequency of Purchaser Start Cycles virtual start cycles without unduly impairing the value of this ContractAgreement. The District may establish new or additional District Business Practices and District Slice Operating Instructions that the District considers necessary. Changes may also be made to conform to mandatory reliability standards and any applicable business practices, criteria, and procedures of NERC, WECC, ▇▇ ▇▇▇▇, NWPP, and transmission service providers. In the event the Purchaser determines or has reason to believe that an error has occurred in the District’s after-the-fact COLA accounting, the Purchaser shall notify the District immediately. The District will assist the Purchaser in determining if an error occurred and if so, assist in correcting the error. Any error correction as a result of such errors shall not include or give rise to any monetary compensation or other adjustments to the payments by the Purchaser. Purchaser shall provide to the District, on a real time basis, an estimate of Purchaser’s projected hourly generation requests for Energy from the Projects at xx:20 PPT for the proceeding 96 hours. The accuracy of these hourly generation estimates shall meet the District’s suggested targets. If the Purchaser pseudo-ties Purchaser’s Output to another BAA, this subsection (l) does not apply. During the Term of this Contract, the District will allow up to eight tags sourced at its BAA balancing authority area during the Pre-Schedule Day time frame and up to three additional tags sourced at its BAA balancing authority area per hour during real-time. If the Purchaser pseudo-ties Purchaser’s Output to another BAA, this subsection (m) does not apply. Tags that sink in the District’s BAA balancing authority area will only be allowed for the purpose of pond account management during real-time as defined by the District’s Business Practice. One tag per hour is the limit for real-time tags. No preschedule tags that sink in the District’s BAA balancing authority area are allowed. It is the Purchaser’s responsibility to follow all applicable ▇▇ ▇▇▇▇/WECC/NERC standards, guidelines, and criteria for scheduling and tagging applicable to Purchasertagging. Further, it is Purchaser’s responsibility to follow all District Slice Operating Instructions and District Business Practices. If the Purchaser pseudo-ties Purchaser’s Output to another BAA, this subsection (o) does not apply. New real-time schedules and adjustments to existing schedules may be made upon request by the Purchaser but must be communicated and tagged by the Purchaser at least 30 minutes prior to the start of each hour except when specifically allowed by District Business Practices or directed by the District. If the Purchaser pseudo-ties Purchaser’s Output to another BAA, this subsection (p) does not apply. Purchaser must provide sufficient reserves to meet the applicable WECC and NERC reliability standards, NWPP Reserve Sharing Agreement obligations, District Business Practices, and District Slice Operating Instructions. The Purchaser’s Output Percentage of the maximum Capacity of the Projects will be reduced by the reserve obligation as described in the District Slice Operating Instructions. The hourly Purchaser’s Canadian Entitlement obligation associated with Purchaser’s Output Percentage shall be counted toward meeting the Purchaser’s Output Percentage of the minimum generation limits of the Projects. Scheduling Purchaser’s Output with Hourly or Sub-hourly Schedules Scheduling of Purchaser’s Output shall be as requested by the Purchaser, or its designated scheduling agent, and shall be subject to the limitations set forth in this Contract. Purchaser must schedule its Purchaser’s Output by the use of hourly schedules unless a Dynamic Transfer Agreement or Organized Market EIM Participation Operating Agreement is executed with the District as is described in Section 6(s), (t) and (u). The Purchaser, or its designated scheduling agent, shall provide the District each Pre-Schedule Day, in conformance with prevailing scheduling procedures for scheduling generating resources in the WECC region, hourly schedules of desired Purchaser’s Output deliveries for the following day or days. The schedules will be completed in a time frame consistent with standard industry practices in the WECC region and this Section 6. Such schedules shall be based on the Purchaser’s rights to, and the limits of, Capacity and Output, and on the probable water supply based on the District’s forecasts of Rocky Reach and Rock Island inflow. The scheduling limits shall be as described in the District Slice Operating Instructions and the District Business Practices, as may be amended by the District from time to time. Scheduling Purchaser’s Output with Dynamic Signal Purchaser may schedule all or a portion of Purchaser’s Output via a dynamic schedule. Dynamic schedules require Purchaser to execute a Dynamic Transfer Agreement with the District. Terms and conditions of the Dynamic Transfer Agreement and timeline for implementation shall be at the sole discretion of the District, and Purchaser shall reimburse the District for all costs associated with setup and implementation of the Dynamic Transfer Agreement. The District may at its sole discretion provide host BA services for purchasers wishing to use a dynamic schedule. Purchaser may schedule all or a portion of PurchasePurchaser’s Output by dynamic signal in accordance with applicable NERC, WECC, and ▇▇ ▇▇▇▇ reliability criteria and in accordance with the requirements of this Section 6 and a Dynamic Transfer Agreement. EIM Participation If the District chooses to become an EIM participant during the term of this Agreement, Purchaser’s Output will be subject to the terms of any EIM agreements with the market operator. The decision to join any EIM, the terms and conditions of any EIM agreements, and the timeline for implementation shall be at the sole discretion of the District. Delivery of Output via a Pseudo Tie Purchaser may elect to take Purchaser’s Output via a pseudo tie with a host BA. A pseudo tie requires Purchaser to execute a Dynamic Transfer Agreement with the District. Terms and conditions of the Dynamic Transfer Agreement and timeline for implementation shall be at the sole discretion of the District and Purchaser shall reimburse the District for all costs associated with setup and implementation of the Dynamic Transfer Agreement. The Purchaser shall preschedule and deliver Purchaser’s share of the Canadian Entitlement from Purchaser’s Output and not from an alternate source. The District may request documentation of the source of such schedules. If Purchaser elects to take

DELIVERY OF OUTPUT. This Section 6 shall apply to the delivery of the Purchaser’s Output. Subject to the provisions of this Contract, the District shall make the Purchaser’s Output available to the Purchaser. The District and/or MCHC shall make all determinations concerning Rocky Reach’s and Rock Island’s Capacity and minimum generation requirements, and the District shall have the unilateral right to determine the maximum allowable amount of change in Output during any time period. Purchaser’s schedules shall be based on Purchaser’s Output in accordance with Rocky Reach’s and Rock Island’s operational parameters, District Slice Operating Instructions, and the District Business Practices established by the District from time to time. Purchaser’s schedules shall not be less than Purchaser’s Output Percentage of the sum of the minimum generation limits of the Projects as determined by the DistrictDistrict or MCHC, nor shall the sum of all Purchaser’s export schedules be greater than Purchaser’s Output Percentage of the sum of the maximum generation limits of the Projects as determined by the DistrictDistrict or MCHC. The Purchaser’s residual reserves equals the Purchaser’s maximum generation limit minus the Purchaser’s aggregated schedules minus the Purchaser’s Canadian Entitlement obligation and any additional reserve obligations required by standards, District Business Practices, and District Slice Operating Instructions. The Purchaser’s residual reserves must be greater than or equal to zero at all times. The Purchaser shall be responsible for keeping its schedules within all Energy production limits applicable, including all limits imposed by the COLAterms of the MCHC. Purchaser’s schedules are also subject to immediate curtailment in the event of an unplanned outage or other sudden reduction in the Capacity of Rocky Reach and/or Rock Island as a result of Operational Constraints or otherwise. Purchaser’s net schedules are also subject to immediate increase in the event of a sudden increase in the minimum generation limits of Rocky Reach and/or Rock Island as a result of Operational Constraints or otherwise. If the Purchaser pseudo-ties Purchaser’s Output to another BAA, this subsection (c) does not apply. If the Purchaser’s actual schedules after curtailments and adjustments do not comply with this Section (either above the maximum generation limit or below the minimum generation limit), for any hour or portion thereof, the District, at its sole discretion may charge to the Purchaser non-compliance fees in addition to any imbalance charges assessed to Purchaser due to its Organized Market Participation by a market operator or similar entityfees. The amount of the non-compliance fees shall be calculated by the District for each hour using the following methodology: multiply the absolute value of the maximum 10-minute deviation in the hour (in MW), either over the maximum generation limit or under the minimum generation limit, by $50/MW. If the Purchaser’s actual hourly integrated schedules do not comply with this Section, there will also be an Energy charge for the hourly deviation. The District will enter a transaction with the Purchaser so that the Purchaser’s actual integrated schedule complies with this Section. The price for the Energy that the District provides to the Purchaser pursuant to this subsection will be the $50/MWh plus the greater of the Mid-Columbia Powerdex Real Time Hourly Index Price plus $50/MWh hourly index or zero. The price for the Energy that the District receives from the Purchaser pursuant to this subsection will be the Mid-Columbia Powerdex Real Time Hourly Index Price hourly index minus $50/MWh. If the Mid-Columbia Powerdex Real Time Hourly Index Price hourly index is no longer published or not primarily utilized by the industry, the District will select another industry recognized hourly index and notify Purchaser of the index to be used for all hours. If the Purchaser pseudo-ties Purchaser’s Output to another BAA, Purchaser may use Purchaser’s Output to participate in an organized market whether participation occurs by that other BAA joining an organized market, Purchaser offering Puchaser’s Output into the organized market as an external resource, or any other manner allowed within that organized market, provided that Purchaser’s use of Purchaser’s Output also complies with the requirements of the Dynamic Transfer Agreement. If the Purchaser pseudo-ties Purchaser’s Output to another BAA, the remainder of this subsection (d) does not apply. During the term of this Contract, the District may, at its sole discretion, join, contract with, or enable third party participation with a market operator or similar entity (e.g., joining an organized market) which would cause imbalances to be settled by a third party or pursuant to a different methodology. Purchaser shall be responsible for all charges, fees or costs attributable to Purchaser or imposed as a result of Purchaser’s conduct as determined by the District. The District will invoice Purchaser for any charges, fees or costs assessed against the District related to Purchaser’s activities or conduct. In addition, the District shall be entitled to assess Purchaser non-compliance fees related to Purchaser’s scheduling conduct calculated as set forth in this Section 6(d) or District Business Practices. If the Purchaser pseudo-ties Purchaser’s Output to another BAA, this subsection (e) does not apply The amounts owing by the Purchaser to the District pursuant to this Section 6 provision shall be due and payable per Section 5(c) and subject to the provisions of Sections 5(d), (f), 5(d)(f) and (g) of this Contract. All commercial efforts must be taken to comply with Section 6. Persistent or repeated non-compliance by Purchaser with Section 6(b) shall also be an Event of Default by the Purchaser as further defined in Section 15 hereof. If Purchaser fails to comply with Section 6(b) for more than 20 hours in any month, the District may at its sole discretion collect additional penalties including tripling the amount of any applicable non-compliance fee for the remainder of the month. Non-compliance by Purchaser due to unexpected reductions in Capacity or increases in minimum generation limits at Rocky Reach or Rock Island may be excused by the District in its sole discretionexcused. If Purchaser fails to comply with Section 6(b) for more than 60 cumulative hours in any three consecutive months of any twelve month period, the District may at its sole discretion consider this to be persistent non-compliance and an Event of Default by the Purchaser as further defined in Section 15 hereof. For the purposes of computing hourly totals in this subsection, if Purchaser fails to comply with Section 6(b) for any portion of an hour, that failure will be counted as if Purchaser had failed to comply for the whole hour. During the term of this Contract, the District may, at its sole discretion, join, contract with, or enable third party participation with a market operator or similar entity (EIM Participation) which would cause imbalances to be settled by a third party or pursuant to a different methodology. Purchaser shall be responsible for all charges, fees or costs attributable to Purchaser or imposed as a result of Purchaser’s conduct as determined by the District. The District will invoice Purchaser for any charges, fees or costs assessed to the District related to Purchaser’s activities or conduct. In addition, the District shall be entitled to assess Purchaser non-compliance fees related to Purchaser’s scheduling conduct calculated as set forth in Section 6(c) or District Business Practices. Pond/Storage Account. Purchaser shall be entitled to utilize the Purchaser’s Output Percentage of the Pond/Storage, as defined in Appendix A, available at Rocky Reach and Rock Island. The District shall make determinations concerning portion of the minimum and maximum available Purchaser’s Output Percentage of Pond/Storage in accordance with Rocky Reach’s and Rock Island’s operational parametersavailable shall be determined per MCHC. In no case shall the Purchaser shall make commercially reasonable efforts not to exceed the Purchaser’s Output Percentage of Pond/Storage limits. If Purchaser is utilizing Pond/Storage above or below the Purchaser’s Output Percentage of the Pond/Storage limits in any hour, they will be subject to a non-compliance fee for each hour the Purchaser exceeds or goes below the Purchaser’s Output Percentage of Pond/Storage limits. The amount charged to the Purchaser shall be calculated by the District and will be (a) $3 10 per MWh for each MWh that the Purchaser’s Pond/Storage account balance exceeds 115 percent of the Purchaser’s Output Percentage of the maximum Pond/Storage limit and (b) $3 per MWh for each MWh that the Purchaser’s Pond/Storage account balance is above or below the Purchaser’s Output Percentage of the Pond/Storage minimum limitlimits. Purchaser Purchasers will not be subject to such fees if it is they are directed by the District or MCHC to be outside Purchaser’s Output Percentage of Pond/Storage limits. The District MCHC will establish and maintain for Purchaser a Pond/Storage account that will reflect the use of Pond/Storage by the Purchaser associated with the Purchaser’s Output Percentage of Rocky Reach and Rock Island during the Contract Termrelevant Delivery Periods. The District will transfer 30 MWh of Pond/Storage from its Pond/Storage account to the Purchaser’s Pond/Storage account in order to establish a starting balance. The Purchaser must have a minimum Pond/Storage balance of 30 MWh on the last hour of the term of this Contract, which will then be transferred to the District’s Pond/Storage account. If the Purchaser’s Pond/Storage balance is less than 30 MWh, then the District will invoice the Purchaser for the shortage quantity (MWh) at an hourly price equal to the Powerdex hourly Mid-Columbia index ($/MWh) or other recognized hourly index for the last hour of the Contract term. If the Powerdex hourly Mid-Columbia index is no longer published or primarily utilized by the industry, the District will select another industry recognized hourly index and notify Purchaser of the index to be used for all hours. The Purchaser shall make payment pursuant to Sections 5(c), (d), 5(c)(d) (f), ) and (g) above. The Purchaser may schedule more than its share of Rocky Reach and Rock Island hourly inflows, determined in accordance with Section 6(b), if the Purchaser has sufficient amount of Energy in its Pond/Storage account. The amount of the Energy scheduled from the Pond/Storage account shall not exceed the Purchaser’s Output Percentage of the sum of the maximum Capacity of the Projects. As allowed under COLAMCHC, the Purchaser may buy and/or sell Pond/Storage from or to other Rocky Reach and Rock Island purchasers pond in order to manage its Pond/Storage their pond balance. Transactions to The pond transaction/transfer Pond/Storage shall may be made in accordance with COLAMCHC. Pond/Storage MCHC transfers from one purchaser’s account to another purchaser’s account can be initiated and effectuated in COLAas directed by the Purchaser. The Purchaser will be solely responsible to make all commercial arrangements for these transactions. During any hour that spill occurred at either any non-federal Mid-C Project due to any reason, the spill spill, if any, will be allocated to purchasers and the District according to COLA. Purchaser Allowable Start Cycles The generating units at the Projects were designed for a limited number of Physical Start Cycles. The Purchaser shall be allocated 412 Purchaser Allowable Start Cycles per calendar year, which is its pro-rata allocation of allowable Physical Start Cycles at the Projects. The Purchaser Allowable Start Cycles per calendar year may increase over the Term of the Contract from 412 per calendar year in 2024 as units are rehabilitated. The District shall provide the Purchaser a monthly assessment of its Purchaser Start Cycles. If the Purchaser Start Cycles exceed the Purchaser Allowable Start Cycles, as determined by the methodology in Appendix C, after each calendar year for the prior year, or at any time at the Purchaser’s request for any period, the Parties shall meet to discuss conditions contributing to the frequency of Purchaser Start Cycles and potential solutions to reduce the frequency of Purchaser Start Cycles without unduly impairing the value of this Contractaccordance with MCHC. The District may establish new or additional District Business Practices and District Slice Operating Instructions that the District considers necessary. Changes may also be made to conform to mandatory reliability standards and any applicable business practices, criteria, and procedures of NERC, WECC, ▇▇ ▇▇▇▇PEAK RC, NWPP, and transmission service providers. In the event the Purchaser determines or has reason to believe that an error has occurred in the District’s after-the-fact COLA MCHC accounting, the Purchaser shall notify the District immediately. The District will assist the Purchaser in determining if an error occurred and if so, assist in correcting the error. Any error correction as a result of such errors shall not include or give rise to any monetary compensation or other adjustments to the payments by the Purchaser. Purchaser shall provide to the District, District or to MCHC on a real time basis, an estimate of Purchaser’s projected hourly generation requests for Energy from the Projects at xx:20 PPT for the proceeding 96 hours. The accuracy of these hourly generation estimates shall meet MCHC’s or the District’s suggested targets. If the Purchaser pseudo-ties Purchaser’s Output to another BAA, this subsection (l) does not apply. During the Term of this Contractall Delivery Periods for Slice Products 27 and 28, the District will allow up to eight four tags sourced at its BAA balancing authority area during the Pre-Schedule Day time frame and up to three additional tags sourced at its BAA balancing authority area per hour during real-time. If During all Delivery Periods for Slice Product 29, the Purchaser pseudoDistrict will allow up to eight tags sourced at its balancing authority area during the Pre-ties Purchaser’s Output Schedule Day time frame and up to another BAA, this subsection (m) does not applythree additional tags sourced at its balancing authority area per hour during real-time. Tags that sink in the District’s BAA balancing authority area will only be allowed for the purpose of pond account management during real-time as defined by the District’s Business Practicetime. One tag per hour is the limit for real-time tags. No preschedule tags that sink in the District’s BAA balancing authority area are allowed. Pond account or pond management purposes are defined by the District’s Business Practices. It is the Purchaser’s responsibility to follow all ▇▇ ▇▇▇▇/WECCapplicable PEAK RC/WECC/NERC standards, guidelines, and criteria for scheduling and tagging applicable to Purchasertagging. Further, it is Purchaser’s responsibility to follow all District Slice Operating Instructions and District Business Practices. If the Purchaser pseudo-ties Purchaser’s Output to another BAA, this subsection (o) does not apply. New real-time schedules and adjustments to existing schedules may be made upon request by the Purchaser but must be communicated and tagged by the Purchaser at least 30 minutes prior to the start of each hour except when specifically allowed by District Business Practices or directed by the District. If the Purchaser pseudo-ties Purchaser’s Output to another BAA, this subsection (p) does not apply. Purchaser must provide sufficient reserves to meet the applicable WECC and NERC reliability standards, NWPP Reserve Sharing Agreement obligations, District Business Practices, and District Slice Operating Instructions. The Purchaser’s Output Percentage of the maximum Capacity of the Projects will be reduced by the reserve obligation as described in the District Slice Operating Instructions. The hourly Purchaser’s Canadian Entitlement Allocation Extension Agreement obligation shall be counted toward meeting the Purchaser’s Output Percentage of the minimum generation limits of the Projects. Scheduling Purchaser’s Output with Hourly or Sub-hourly Schedules Scheduling of Purchaser’s Output shall be as requested by the Purchaser, or its designated scheduling agent, and shall be subject to the limitations set forth in this Contract. Purchaser must schedule its Purchaser’s Output by the use of hourly schedules unless a Dynamic Transfer Agreement or Organized Market EIM Participation Operating Agreement is executed with the District as is described in Section 6(s), 6(q) (tr) and (us). The Purchaser, or its designated scheduling agent, shall provide the District each Pre-Schedule Day, in conformance with prevailing scheduling procedures for scheduling generating resources in the WECC region, hourly schedules of desired Purchaser’s Output deliveries for the following day or days. The schedules will be completed in a time frame consistent with standard industry practices in the WECC region and this Section 6. Such schedules shall be based on the Purchaser’s rights to, and the limits of, Capacity and Output, and on the probable water supply based on the U.S. Army Corp of Engineers Chief ▇▇▇▇▇▇ discharge estimates and the District’s forecasts of side streams (inflow) of Rocky Reach and Rock Island inflowIsland. The scheduling limits shall be as described in the District Slice Operating Instructions and the District Business Practices, as may be amended by the District from time to time. Scheduling Purchaser’s Output with Dynamic Signal Purchaser may schedule all or a portion of Purchaser’s Output via a dynamic schedule. Dynamic schedules require Purchaser to execute a Dynamic Transfer Agreement with the District. Terms and conditions of the Dynamic Transfer Agreement and timeline for implementation shall be at the sole discretion of the District, and Purchaser shall reimburse the District for all costs associated with setup and implementation of the Dynamic Transfer Agreement. The District may at its sole discretion provide host BA services for purchasers Purchasers wishing to use a dynamic schedule. Purchaser may schedule all or a portion of PurchasePurchaser’s Output by dynamic signal in accordance with applicable NERC, WECC, and PEAK RC reliability criteria and in accordance with the requirements of this Section 6 and a Dynamic Transfer Agreement. EIM Participation If EIM Participation becomes available during the term of this Agreement or if the Purchaser desires to use Purchaser’s Output for EIM Participation it will be subject to the terms of an EIM Participation Operating Agreement. The decision to enter into an EIM Participation Operating Agreement, the terms and conditions of the EIM Participation Operating Agreement, and the timeline for implementation shall be at the sole discretion of the District. Purchaser shall reimburse the District for all costs associated with setup and implementation of EIM Participation. The District may, at its sole discretion, provide host BA services for EIM Participation. Delivery of Output via a Pseudo Tie Purchaser may elect to take Purchaser’s Output via a pseudo tie with a host BA. A pseudo tie requires Purchaser to execute a pseudo tie agreement with the District. Terms and conditions of the pseudo tie agreement and timeline for implementation shall be at the sole discretion of the District and Purchaser shall reimburse the District for all costs associated with setup and implementation of the pseudo tie agreement. The Purchaser shall preschedule and deliver the Canadian Entitlement Allocation Extension Agreement obligation from the Purchaser’s host balancing authority area to the District’s balancing authority area. This Canadian Entitlement Energy schedule may be supplied by the Purchaser’s Output or, if mutually agreed, an alternate firm source. Purchaser shall be solely responsible for any and all carbon, and/or carbon mitigation costs and obligations caused by Purchaser’s schedules, imports or other activity impacting the District’s balancing authority area for any purpose. Purchaser shall reimburse the District for all costs and expenses incurred by the District as a result of any carbon, and/or carbon mitigation costs and obligations caused by Purchaser’s schedules, imports or other activity impacting the District’s balancing authority area. Any amounts owing by the Purchaser to the District pursuant to this provision shall be due and payable per Section 5(c) and subject to the provisions of Sections 5(d)(f) and (g) of