Common use of Repayment of Amounts Advanced for Network Upgrades Clause in Contracts

Repayment of Amounts Advanced for Network Upgrades. The Parties acknowledge that the Transmission Provider is not a jurisdictional public utility subject to FERC’s rate jurisdiction under Section 205 or 206 of the Federal Power Act. The responsibility to provide transmission rate credits under FERC’s generation interconnection regulations, therefore, does not extend to Transmission Provider. (See, e.g., Order No. 2003-C, 111 FERC ¶ 61,401, at P 18 (2005) (citing Order No. 2003, 104 FERC ¶ 61,103, at P 843 (2003)). Notwithstanding its non-jurisdictional status, Transmission Provider hereby voluntarily agrees to provide transmission rate credits to Interconnection Customer (or any other qualified person to whom Interconnection Customer assigns its rights to such transmission rate credits) when transmission service is taken on Transmission Provider’s Transmission System as follows: Interconnection Customer shall be entitled to transmission rate credits, equal to the total amount paid by Interconnection Customer to Transmission Provider, if any, for Network Upgrades to Transmission Provider’s Transmission System, which is not refunded to Interconnection Customer pursuant to Articles 5, 12, 17, 18 or otherwise. Such rate credits shall be provided by Transmission Provider, on a dollar-for-dollar basis, for the base transmission charges (including the traditional standard offer yearly delivery charge($/kW of Reserved Capacity) or the economic development yearly delivery charge($/MWh of capacity used)), as payments are made by Interconnection Customer (or any qualified person to whom Interconnection Customer assigns its rights to transmission rate credits) to Transmission Provider for transmission service taken under Transmission Provider's Tariff or under a grandfathered agreement executed with Transmission Provider prior to August 7, 2001, when Transmission Provider’s Tariff was first adopted. Transmission Provider’s obligation to provide such rate credits shall be limited to a period no longer than twenty- five (25) years from the Commercial Operation Date. In no event shall the Transmission Provider be obligated to pay interest on the Network Upgrade costs or transmission rate credits. Interconnection Customer may assign its rights to the transmission rate credits to any person which qualifies as an Eligible Customer for Point-to-Point Transmission Service under Transmission Provider’s Tariff or takes transmission service from Transmission Provider under a grandfathered agreement executed with Transmission Provider prior to August 7, 2001, when Transmission Provider’s Tariff was first adopted. Notwithstanding the foregoing, Interconnection Customer and Transmission Provider may adopt any alternative payment schedule that is mutually agreeable. If the Generating Facility fails to achieve commercial operation, but it or another Generating Facility is later constructed and makes use of the Network Upgrades financed by Interconnection Customer, to the extent not already refunded, Transmission Provider shall reimburse Interconnection Customer (or any qualified person to whom Interconnection Customer assigns its rights to transmission rate credits) for the amounts advanced by Interconnection Customer for the Network Upgrades if and when Transmission Provider receives payment of those amounts from the entity making use of the Network Upgrades. Before any such reimbursement can occur, the Interconnection Customer, or the entity that ultimately constructs the Generating Facility, if different, is responsible for identifying the entity to which reimbursement must be made.

Repayment of Amounts Advanced for Network Upgrades. The Parties acknowledge that the Transmission Provider is not a jurisdictional public utility subject to FERC’s rate jurisdiction under Section 205 or 206 of the Federal Power Act. The responsibility to provide transmission rate credits under FERC’s generation interconnection regulations, therefore, does not extend to Transmission Provider. (See, e.g., Order No. 2003-C, 111 FERC ¶ 61,401, at P 18 (2005) (citing Order No. 2003, 104 FERC ¶ 61,103, at P 843 (2003)). Notwithstanding its non-jurisdictional status, Transmission Provider hereby voluntarily agrees to provide transmission rate credits for Network Upgrades , as delineated in Appendix A-1, to Interconnection Customer (or any other qualified person to whom Interconnection Customer assigns its rights to such transmission rate credits) when transmission service is taken on Transmission Provider’s Transmission System as follows: Interconnection Customer shall be entitled to transmission rate credits, equal to the total amount paid by Interconnection Customer to Transmission Provider, if any, for Network Upgrades to Transmission Provider’s Transmission System, which is not refunded to Interconnection Customer pursuant to Articles 5, 11.5.1 (a), 12, 17, 18 or otherwise. Such rate credits shall be provided by Transmission Provider, on a dollar-for-dollar basis, for the base transmission charges (including the traditional standard offer yearly delivery charge($/kW of Reserved Capacity) or the economic development yearly delivery charge($/MWh of capacity used)), as payments are made by Interconnection Customer (or any qualified person to whom Interconnection Customer assigns its rights to transmission rate credits) to Transmission Provider for transmission service taken under Transmission Provider's Tariff or under a grandfathered agreement executed with Transmission Provider prior to August 7, 2001, when Transmission Provider’s Tariff was first adopted. Transmission Provider’s obligation to provide such rate credits shall be limited to a period no longer than twenty- twenty-five (25) years from the Commercial Operation Date. In no event shall the Transmission Provider be obligated to pay interest on the Network Upgrade costs or transmission rate credits. Interconnection Customer may assign its rights to the transmission rate credits to any person which qualifies as an Eligible Customer for Point-to-to- Point Transmission Service under Transmission Provider’s Tariff or takes transmission service from Transmission Provider under a grandfathered agreement executed with Transmission Provider prior to August 7, 2001, when Transmission Provider’s Tariff was first adopted. Notwithstanding the foregoing, Interconnection Customer and Transmission Provider may adopt any alternative payment schedule that is mutually agreeable. If the Generating Facility fails to achieve commercial operation, but it or another Generating Facility is later constructed and makes use of the Network Upgrades identified in Appendix A-1 that were financed by Interconnection Customer, to the extent not already refunded, Transmission Provider shall reimburse Interconnection Customer (or any qualified person to whom Interconnection Customer assigns its rights to transmission rate credits) for the amounts advanced by Interconnection Customer for the such Network Upgrades if and when Transmission Provider receives payment of those amounts from the entity making use of the Network Upgrades. Before any such reimbursement can occur, the Interconnection Customer, or the entity that ultimately constructs the Generating Facility, if different, is responsible for identifying the entity to which reimbursement must be made.

Repayment of Amounts Advanced for Network Upgrades. The Parties acknowledge that the Transmission Provider is not a jurisdictional public utility subject to FERC’s rate jurisdiction under Section 205 or 206 of the Federal Power Act. The responsibility to provide transmission rate credits under FERC’s generation interconnection regulations, therefore, does not extend to Transmission Provider. (See, e.g., Order No. 2003-C, 111 FERC ¶ 61,401, at P 18 (2005) (citing Order No. 2003, 104 FERC ¶ 61,103, at P 843 (2003)). Notwithstanding its non-jurisdictional status, Transmission Provider hereby voluntarily agrees to provide transmission rate credits to Interconnection Customer (or any other qualified person to whom Interconnection Customer assigns its rights to such transmission rate credits) when transmission service is taken on Transmission Provider’s Transmission System as follows: Interconnection Customer shall be entitled to transmission rate creditsa cash repayment by Transmission Owner(s) and the Affected System Owner(s) that own the Network Upgrades, equal to of the total amount paid by Interconnection Customer respectively to Transmission ProviderOwner and Affected System Operator, if any, for the Network Upgrades to Transmission Provider’s Transmission SystemUpgrades, which is as provided under Attachment FF of this Tariff and including any tax gross-up or other tax-related payments associated with the repayable portion of the Network Upgrades, and not refunded repaid to Interconnection Customer pursuant to Articles 5, 12, 17, 18 Article 5.17.8 or otherwise. Such rate credits shall , to be provided by Transmission Provider, paid to Interconnection Customer on a dollar-for-dollar basis, basis for the base non-usage sensitive portion of transmission charges (including the traditional standard offer yearly delivery charge($/kW of Reserved Capacity) or the economic development yearly delivery charge($/MWh of capacity used))charges, as payments are made by under the Tariff and Affected System’s Tariff for Transmission Services with respect to the Generating Facility. Any repayment shall include interest calculated in accordance with the methodology set forth in FERC’s regulations at 18 C.F.R. § 35.19 (a)(2)(iii) from the date of any payment for Network Upgrades through the date on which Interconnection Customer (or any qualified person receives a repayment of such payment pursuant to whom this subparagraph. Interest shall not accrue during periods in which Interconnection Customer assigns its rights has suspended construction pursuant to transmission rate credits) to Transmission Provider for transmission service taken under Transmission Provider's Tariff Article 11 or under a grandfathered agreement executed with Transmission Provider prior to August 7, 2001, when Transmission Provider’s Tariff was first adopted. Transmission Provider’s obligation to provide such rate credits shall be limited to a period no longer than twenty- five (25) years from the Commercial Operation Date. In no event shall the Transmission Provider be obligated to pay interest on the Network Upgrade costs or transmission rate creditsUpgrades have been determined not to be needed pursuant to this Article 11. 4.1. Interconnection Customer may assign its such repayment rights to the transmission rate credits to any person which qualifies as an Eligible Customer for Point-to-Point Transmission Service under Transmission Provider’s Tariff or takes transmission service from Transmission Provider under a grandfathered agreement executed with Transmission Provider prior to August 7, 2001, when Transmission Provider’s Tariff was first adopted. Notwithstanding the foregoing, Interconnection Customer and Transmission Provider may adopt any alternative payment schedule that is mutually agreeableperson. If the Generating Facility fails to achieve commercial operationis designated a Network Resource under the Tariff, but it or another Generating Facility is later constructed and makes if there are otherwise no incremental payments for Transmission Service resulting from the use of the Network Upgrades financed Generating Facility by Interconnection Transmission Customer, and in the absence of another mutually agreeable payment schedule any repayments provided under Attachment FF shall be established equal to the extent not already refunded, applicable rate for Firm Point-To-Point Transmission Provider shall reimburse Interconnection Customer (or any qualified person to whom Interconnection Customer assigns its rights to transmission rate credits) Service for the amounts advanced by Interconnection Customer for pricing zone where the Network Upgrades if and when Transmission Provider receives payment of those amounts from Load is located multiplied by the entity making use portion of the Network Upgrades. Before any such reimbursement can occur, the Interconnection Customer, or the entity that ultimately constructs demonstrated output of the Generating FacilityFacility designated as a Network Resource by the Network Customer(s) or in the absence of such designation, if different, is responsible for identifying equal to the entity to which reimbursement must be made.monthly firm

Repayment of Amounts Advanced for Network Upgrades. The Parties acknowledge that the Transmission Provider is not a jurisdictional public utility subject to FERC’s rate jurisdiction under Section 205 or 206 of the Federal Power Act. The responsibility to provide transmission rate credits under FERC’s generation interconnection regulations, therefore, does not extend to Transmission Provider. (See, e.g., Order No. 2003-C, 111 FERC ¶ 61,401, at P 18 (2005) (citing Order No. 2003, 104 FERC ¶ 61,103, at P 843 (2003)). Notwithstanding its non-jurisdictional status, Transmission Provider hereby voluntarily agrees to provide transmission rate credits to Interconnection Customer (or any other qualified person to whom Interconnection Customer assigns its rights to such transmission rate credits) when transmission service is taken on Transmission Provider’s Transmission System as follows: Interconnection Customer shall be entitled to transmission rate creditsa cash repayment by the Transmission Owner(s) and the Affected System Owner(s) that own the Network Upgrades, equal to of the total amount paid by Interconnection Customer respectively to Transmission ProviderOwner and Affected System Operator, if any, for the Network Upgrades to Transmission Provider’s Transmission SystemUpgrades, which is as provided under Attachment FF of this Tariff and including any tax gross-up or other tax-related payments associated with the repayable portion of the Network Upgrades, and not refunded repaid to Interconnection Customer pursuant to Articles 5, 12, 17, 18 Article 5.17.8 or otherwise. Such rate credits shall , to be provided by Transmission Provider, paid to Interconnection Customer on a dollar-for-dollar basis, basis for the base non-usage sensitive portion of transmission charges (including the traditional standard offer yearly delivery charge($/kW of Reserved Capacity) or the economic development yearly delivery charge($/MWh of capacity used))charges, as payments are made by under the Tariff and Affected System’s Tariff for transmission services with respect to the Large Generating Facility. Any repayment shall include interest calculated in accordance with the methodology set forth in FERC’s regulations at 18 C.F.R. § 35.19 (a)(2)(iii) from the date of any payment for Network Upgrades through the date on which the Interconnection Customer (or any qualified person receives a repayment of such payment pursuant to whom this subparagraph. Interest shall not accrue during periods in which the Interconnection Customer assigns its rights has suspended construction pursuant to transmission rate credits) to Transmission Provider for transmission service taken under Transmission Provider's Tariff Article 11 or under a grandfathered agreement executed with Transmission Provider prior to August 7, 2001, when Transmission Provider’s Tariff was first adopted. Transmission Provider’s obligation to provide such rate credits shall be limited to a period no longer than twenty- five (25) years from the Commercial Operation Date. In no event shall the Transmission Provider be obligated to pay interest on the Network Upgrade costs or transmission rate creditsUpgrades have been determined not to be needed pursuant to this Article 11.4.1. Interconnection Customer may assign its such repayment rights to any person. If the transmission Generating Facility is designated a Network Resource under the Tariff, or if there are otherwise no incremental payments for Transmission Service resulting from the use of the Generating Facility by Transmission Customer, and in the absence of another mutually agreeable payment schedule any repayments provided under Attachment FF shall be established equal to the applicable rate credits to any person which qualifies as an Eligible Customer for Firm Point-toTo-Point Transmission Service for the pricing zone where the Network Load is located multiplied by the portion of the demonstrated output of the Generating Facility designated as a Network Resource by the Network Customer(s) or in the absence of such designation, equal to the monthly firm single system-wide rate defined under Transmission Provider’s Tariff or takes transmission service from Transmission Provider Schedule 7 multiplied by the portion of the demonstrated output of the Generating Facility under a grandfathered agreement executed contract to Network Customer(s) and consistent with Transmission Provider prior studies pursuant to August 7, 2001, when Transmission Provider’s Tariff was first adoptedSection 3.2.2.2 of the LGIP. Notwithstanding the foregoing, as applicable and consistent with the provisions of Attachment FF of this Tariff, Interconnection Customer Customer, Transmission Provider, Transmission Owner, and Transmission Provider Affected System Operator may adopt any alternative payment schedule that is mutually agreeableagreeable so long as Transmission Owner and Affected System Operator take one of the following actions no later than five (5) years from the Commercial Operation Date: (1) return to Interconnection Customer any amounts advanced for Network Upgrades not previously repaid, or (2) declare in writing that Transmission Owner or Affected System Operator will continue to provide payments to Interconnection Customer on a dollar-for-dollar basis for the non-usage sensitive portion of transmission charges, or develop an alternative schedule that is mutually agreeable and provides for the return of all amounts advanced for Network Upgrades not previously repaid; however, full reimbursement shall not extend beyond twenty (20) years from the Commercial Operation Date. If the Generating Facility fails to achieve commercial operation, but it or another Generating Facility generating facility is later constructed and makes use of the Network Upgrades financed by Interconnection Customer, to the extent not already refundedUpgrades, Transmission Provider Owner and Affected System Operator shall at that time reimburse Interconnection Customer (or any qualified person to whom Interconnection Customer assigns its rights to transmission rate credits) for the amounts advanced by Interconnection Customer for the remaining applicable amounts that may be refundable pursuant to Attachment FF of this Tariff that were advanced for the Network Upgrades if and when Transmission Provider receives payment of those amounts from the entity making use of the Network Upgradeson their respective systems as described above. Before any such reimbursement can occur, the Interconnection Customer, or the entity that ultimately constructs the Generating Facility, if different, is responsible for identifying the entity to which the reimbursement must be made.

Repayment of Amounts Advanced for Network Upgrades. The Parties acknowledge that the Transmission Provider is not a jurisdictional public utility subject to FERC’s rate jurisdiction under Section 205 or 206 of the Federal Power Act. The responsibility to provide transmission rate credits under FERC’s generation interconnection regulations, therefore, does not extend to Transmission Provider. (See, e.g., Order No. 2003-C, 111 FERC ¶ 61,401, at P 18 (2005) (citing Order No. 2003, 104 FERC ¶ 61,103, at P 843 (2003)). Notwithstanding its non-jurisdictional status, Transmission Provider hereby voluntarily agrees to provide transmission rate credits to Interconnection Customer (or any other qualified person to whom Interconnection Customer assigns its rights to such transmission rate credits) when transmission service is taken on Transmission Provider’s Transmission System as follows: Except as otherwise provided in Articles 3.4 and 3.6, Interconnection Customer shall be entitled to transmission rate credits, equal to the total amount paid by Interconnection Customer to Transmission Provider, if any, for Network Upgrades to Transmission Provider’s Transmission System, which is not refunded to Interconnection Customer pursuant to Articles 3, 5, 12, 17, 18 or otherwise. Such rate credits shall be provided by Transmission Provider, on a dollar-for-dollar basis, for the base non-usage sensitive portion of Transmission Provider’s transmission charges (including i.e., the traditional standard offer yearly delivery charge($/kW of Reserved Capacity) or the economic development yearly delivery charge($/MWh of capacity used)demand charge for reserved capacity), as payments are made by Interconnection Customer (or any qualified person to whom Interconnection Customer assigns its rights to transmission rate credits) to Transmission Provider for transmission service taken under Transmission Provider's Tariff or under a grandfathered agreement executed with Transmission Provider prior to August 7, 2001, when Transmission Provider’s Tariff was first adopted. Transmission Provider’s obligation to provide such rate credits shall be limited to a period no longer than twenty- twenty-five (25) years from the Commercial Operation Date. In no event shall the Transmission Provider be obligated to pay interest on the Network Upgrade costs or transmission rate credits. Interconnection Customer may assign its rights to the transmission rate credits to any person which qualifies as an Eligible Customer for Point-to-Point Transmission Service under Transmission Provider’s Tariff or takes transmission service from Transmission Provider under a grandfathered agreement executed with Transmission Provider prior to August 7, 2001, when Transmission Provider’s Tariff was first adopted. Notwithstanding the foregoingforegoing and subject to the limitation , in Articles 3.4 and 3.6, Interconnection Customer and Transmission Provider may adopt any alternative payment schedule that is mutually agreeable. If the Generating Facility fails to achieve commercial operation, but it or another Generating Facility is later constructed and makes use of the Network Upgrades financed by Interconnection Customer, to the extent not already refundedrefunded and subject to the limitation in Articles 3.4 and 3.6, Transmission Provider shall reimburse Interconnection Customer (or any qualified person to whom Interconnection Customer assigns its rights to transmission rate credits) for the amounts advanced by Interconnection Customer for the Network Upgrades if and when Transmission Provider receives payment of those amounts from the entity making use of the Network Upgrades. Before any such reimbursement can occur, the Interconnection Customer, or the entity that ultimately constructs the Generating Facility, if different, is responsible for identifying the entity to which reimbursement must be made.

Repayment of Amounts Advanced for Network Upgrades. The Parties acknowledge that the Transmission Provider is not a jurisdictional public utility subject to FERC’s rate jurisdiction under Section 205 or 206 of the Federal Power Act. The responsibility to provide transmission rate credits under FERC’s generation interconnection regulations, therefore, does not extend to Transmission Provider. (See, e.g., Order No. 2003-C, 111 FERC ¶ 61,401, at P 18 (2005) (citing Order No. 2003, 104 FERC ¶ 61,103, at P 843 (2003)). Notwithstanding its non-jurisdictional status, Transmission Provider hereby voluntarily agrees to provide transmission rate credits to Interconnection Customer (or any other qualified person to whom Interconnection Customer assigns its rights to such transmission rate credits) when transmission service is taken on Transmission Provider’s Transmission System as follows: Interconnection Customer shall be entitled to transmission rate credits, equal to the total amount paid by Interconnection Customer to Transmission Provider, if any, for Network Upgrades to Transmission Provider’s Transmission System, which is not refunded to Interconnection Customer pursuant to Articles 5, 12, 17, 18 or otherwise. Such rate credits shall be provided by Transmission Provider, on a dollar-for-dollar basis, for the base transmission charges (including the traditional standard offer yearly delivery charge($/kW of Reserved Capacity) or the economic development yearly delivery charge($/MWh of capacity used)), as payments are made by Interconnection Customer (or any qualified person to whom Interconnection Customer assigns its rights to transmission rate credits) to Transmission Provider for transmission service taken under Transmission Provider's Tariff or under a grandfathered agreement executed with Transmission Provider prior to August 7, 2001, when Transmission Provider’s Tariff was first adopted. Transmission Provider’s obligation to provide such rate credits shall be limited to a period no longer than twenty- five (25) years from the Commercial Operation Date. In no event shall the Transmission Provider be obligated to pay interest on the Network Upgrade costs or transmission rate credits. Interconnection Customer may assign its rights to the transmission rate credits to any person which qualifies as an Eligible Customer for Point-to-Point Transmission Service under Transmission Provider’s Tariff or takes transmission service from Transmission Provider under a grandfathered agreement executed with Transmission Provider prior to August 7, 2001, when Transmission Provider’s Tariff was first adopted. . Notwithstanding the foregoing, Interconnection Customer and Transmission Provider may adopt any alternative payment schedule that is mutually agreeable. If the Generating Facility fails to achieve commercial operation, but it or another Generating Facility is later constructed and makes use of the Network Upgrades financed by Interconnection Customer, to the extent not already refunded, Transmission Provider shall reimburse Interconnection Customer (or any qualified person to whom Interconnection Customer assigns its rights to transmission rate credits) for the amounts advanced by Interconnection Customer for the Network Upgrades if and when Transmission Provider receives payment of those amounts from the entity making use of the Network Upgrades. Before any such reimbursement can occur, the Interconnection Customer, or the entity that ultimately constructs the Generating Facility, if different, is responsible for identifying the entity to which reimbursement must be made.