Common use of Risk Sharing Clause in Contracts

Risk Sharing. In connection with the evaluation of Phase 2, Liberty may propose for Commission consideration and approval a symmetrical mechanism through which it would share with its customers in the financial risks associated with the need to predict monthly ISO-NE coincident system peak hourly load so as to dispatch the battery output to reduce that peak hour load. Such risk-sharing may apply to those batteries installed in both Phase 1 and Phase 2, and may consist of upward and downward adjustments to the return on equity (▇▇▇) associated with Liberty’s investment in the batteries and related equipment, including meters, based on Liberty’s ability to accurately forecast ISO-NE coincident system peak hours and dispatch installed battery output to reduce that peak hour load. The Settling Parties stipulate and agree that such a risk-sharing mechanism may be considered by the Commission consistent with RSA 374-G:5, IV, which provision authorizes the Commission to “add an incentive to the return on equity component as it deems appropriate to encourage investments in distributed energy resources.”