Common use of Annual Tax Security Reassessment Clause in Contracts

Annual Tax Security Reassessment. The annual reassessment of the current tax liability in accordance with the directives of FERC Orders 2003-A and 2003-B, which will commence the first year after Interconnection Customer’s in-service date. Applicable Laws and Regulations - All duly promulgated applicable federal, state and local laws, regulations, rules, ordinances, codes, decrees, judgments, directives, or judicial or administrative orders, permits and other duly authorized actions of any Governmental Authority. Applicable Reliability Council – The reliability council applicable to the Distribution System to which the Generating Facility is directly interconnected. Applicable Reliability Standards – The requirements and guidelines of NERC, the Applicable Reliability Council, and the control area of the Distribution System to which the Generating Facility is directly interconnected, including the requirements pursuant to Section 215 of the Federal Power Act. Business Day - Monday through Friday, excluding Federal Holidays. Customer-Financed Monthly Rate for Non-ISO-Controlled Facilities – As defined in Attachment J of the Tariff. The currently effective Customer-Financed Monthly Rate for Non- ISO-Controlled Facilities is as provided in Attachment J of the Tariff. Default - The failure of a breaching Party to cure its breach under the Generator Interconnection Agreement. Distribution Owner - The entity that owns, leases or otherwise possesses an interest in the portion of the Distribution System at the Point of Interconnection and may be a Party to the Generator Interconnection Agreement to the extent necessary. Distribution Provider - The public utility (or its designated agent) that owns, controls, or operates transmission or distribution facilities used for the transmission of electricity in interstate commerce and provides transmission service under the Tariff. The term Distribution Provider should be read to include the Distribution Owner when the Distribution Owner is separate from the Distribution Provider. Distribution System - Those non-ISO transmission and distribution facilities, owned, controlled and operated by the Distribution Provider that are used to provide distribution service under the Tariff, which facilities and equipment are used to transmit electricity to ultimate usage points such as homes and industries directly from nearby generators or from interchanges with higher voltage transmission networks which transport bulk power over longer distances. The voltage levels at which Distribution Systems operate differ among areas. Distribution Upgrades - The additions, modifications, and upgrades to the Distribution Provider's Distribution System at or beyond the Point of Interconnection to facilitate interconnection of the Generating Facility and render the service necessary to effect the Interconnection Customer's wholesale sale of electricity in interstate commerce. Distribution Upgrades do not include Interconnection Facilities. Distribution Upgrades Charge – The monthly charge to the Interconnection Customer to recover the revenue requirements for the Distribution Provider’s Distribution Upgrades, calculated as the product of the Customer-Financed Monthly Rate for Non-ISO-Controlled Facilities and the Distribution Upgrades Cost. The Distribution Upgrades Charge is provided in Attachment 2 to the GIA. Distribution Upgrades Completion Date – The date upon which the construction of the Distribution Upgrades is complete and such facilities are successfully tested and ready for service. Distribution Upgrades Cost – The Interconnection Customer’s allocated share of all costs, excluding One-Time Cost, determined by the Distribution Provider to be associated with the design, engineering, procurement, construction and installation of the Distribution Upgrades. The Distribution Upgrades Cost is provided in Attachment 2 to the GIA. Fast Track Process - The interconnection study process set forth in Section 6 of the Generator Interconnection Procedures for a proposed certified Generating Facility that is no larger than 2 MW and that meets the codes, standards, and certification requirements of Appendices 8 and 9 of the Generator Interconnection Procedures, or the Distribution Provider has review the design or tested the proposed Generating Facility and is satisfied that it is safe to operate. Generating Facility -The Interconnection Customer's device for the production and/or storage for later injection of electricity identified in the Interconnection Request being interconnected under the Fast Track Process, but shall not include the Interconnection Customer's Interconnection Facilities. Good Utility Practice - Any of the practices, methods and acts engaged in or approved by a significant portion of the electric industry during the relevant time period, or any of the practices, methods and acts which, in the exercise of reasonable judgment in light of the facts known at the time the decision was made, could have been expected to accomplish the desired result at a reasonable cost consistent with good business practices, reliability, safety and expedition. Good Utility Practice is not intended to be limited to the optimum practice, method, or act to the exclusion of all others, but rather to be acceptable practices, methods, or acts generally accepted in the region. Governmental Authority - Any federal, state, local or other governmental regulatory or administrative agency, court, commission, department, board, or other governmental subdivision, legislature, rulemaking board, tribunal, or other governmental authority having jurisdiction over the Parties, their respective facilities, or the respective services they provide, and exercising or entitled to exercise any administrative, executive, police, or taxing authority or power; provided, however, that such term does not include the Interconnection Customer, the Distribution Provider, or any affiliate thereof. Interconnection Customer - Any entity, including the Distribution Provider, Distribution Owner or any of the affiliates or subsidiaries of either, that proposes to interconnect its Generating Facility with the Distribution Provider's Distribution System. Interconnection Facilities - The Distribution Provider's Interconnection Facilities and the Interconnection Customer's Interconnection Facilities. Collectively, Interconnection Facilities include all facilities and equipment between the Generating Facility and the Point of Interconnection, including any modification, additions or upgrades that are necessary to physically and electrically interconnect the Generating Facility to the Distribution Provider's Distribution System. Interconnection Facilities are sole use facilities and shall not include Distribution Upgrades or Network Upgrades.

Annual Tax Security Reassessment. The annual reassessment of the current tax liability in accordance with the directives of FERC Orders 2003-A and 2003-B, which will commence the first year after Interconnection Customer’s in-service date. Applicable Laws and Regulations - – All duly promulgated applicable federal, state and local laws, regulations, rules, ordinances, codes, decrees, judgments, directives, or judicial or administrative orders, permits and other duly authorized actions of any Governmental Authority. Applicable Reliability Council – The reliability council applicable to the Distribution System to which the Generating Facility is directly interconnected. Applicable Reliability Standards – The requirements and guidelines of NERC, the Applicable Reliability Council, and the control area of the Distribution System to which the Generating Facility is directly interconnected, including the requirements pursuant to Section 215 of the Federal Power Act. Business Day - – Monday through Friday, excluding Federal Holidays. Charging Capacity shall mean the load associated with the storage component of a Generating Facility charged from the Distribution System that is used for later redelivery of the associated energy, net of Resource losses, to the Distribution System. Charging Capacity does not include load that is subject to the Distribution Provider’s retail tariff. Customer-Financed Monthly Rate for Non-ISO-Controlled Facilities – As defined in Attachment J of the Tariff. The currently effective Customer-Financed Monthly Rate for Non- ISO-Controlled Facilities is as provided in Attachment J of the Tariff. Default - – The failure of a breaching Party to cure its breach under the Generator Interconnection Agreement. Distribution Owner - – The entity that owns, leases or otherwise possesses an interest in the portion of the Distribution System at the Point of Interconnection and may be a Party to the Generator Interconnection Agreement to the extent necessary. Distribution Provider - – The public utility (or its designated agent) that owns, controls, or operates transmission or distribution facilities used for the transmission of electricity in interstate commerce and provides transmission service under the Tariff. The term Distribution Provider should be read to include the Distribution Owner when the Distribution Owner is separate from the Distribution Provider. Distribution System - Those non-ISO transmission and distribution facilities, owned, controlled and operated by the Distribution Provider that are used to provide distribution service under the Tariff, which facilities and equipment are used to transmit electricity to ultimate usage points such as homes and industries directly from nearby generators or from interchanges with higher voltage transmission networks which transport bulk power over longer distances. The voltage levels at which Distribution Systems operate differ among areas. Distribution Upgrades - The additions, modifications, and upgrades to the Distribution Provider's Distribution System at or beyond the Point of Interconnection to facilitate interconnection of the Generating Facility and render the service necessary to effect the Interconnection Customer's wholesale sale of electricity in interstate commerce. Distribution Upgrades do not include Interconnection Facilities. Distribution Upgrades Charge – The monthly charge to the Interconnection Customer to recover the revenue requirements for the Distribution Provider’s Distribution Upgrades, calculated as the product of the Customer-Financed Monthly Rate for Non-ISO-Controlled Facilities and the Distribution Upgrades Cost. The Distribution Upgrades Charge is provided in Attachment 2 to the GIA. Distribution Upgrades Completion Date – The date upon which the construction of the Distribution Upgrades is complete and such facilities are successfully tested and ready for service. Distribution Upgrades Cost – The Interconnection Customer’s allocated share of all costs, excluding One-Time Cost, determined by the Distribution Provider to be associated with the design, engineering, procurement, construction and installation of the Distribution Upgrades. The Distribution Upgrades Cost is provided in Attachment 2 to the GIA. Fast Track Process - The interconnection study process set forth in Section 6 of the Generator Interconnection Procedures for a proposed certified Generating Facility that is no larger than 2 MW and that meets the codes, standards, and certification requirements of Appendices 8 and 9 of the Generator Interconnection Procedures, or the Distribution Provider has review the design or tested the proposed Generating Facility and is satisfied that it is safe to operate. Generating Facility -The Interconnection Customer's device for the production and/or storage for later injection of electricity identified in the Interconnection Request being interconnected under the Fast Track Process, but shall not include the Interconnection Customer's Interconnection Facilities. Good Utility Practice - Any of the practices, methods and acts engaged in or approved by a significant portion of the electric industry during the relevant time period, or any of the practices, methods and acts which, in the exercise of reasonable judgment in light of the facts known at the time the decision was made, could have been expected to accomplish the desired result at a reasonable cost consistent with good business practices, reliability, safety and expedition. Good Utility Practice is not intended to be limited to the optimum practice, method, or act to the exclusion of all others, but rather to be acceptable practices, methods, or acts generally accepted in the region. Governmental Authority - Any federal, state, local or other governmental regulatory or administrative agency, court, commission, department, board, or other governmental subdivision, legislature, rulemaking board, tribunal, or other governmental authority having jurisdiction over the Parties, their respective facilities, or the respective services they provide, and exercising or entitled to exercise any administrative, executive, police, or taxing authority or power; provided, however, that such term does not include the Interconnection Customer, the Distribution Provider, or any affiliate thereof. Interconnection Customer - Any entity, including the Distribution Provider, Distribution Owner or any of the affiliates or subsidiaries of either, that proposes to interconnect its Generating Facility with the Distribution Provider's Distribution System. Interconnection Facilities - The Distribution Provider's Interconnection Facilities and the Interconnection Customer's Interconnection Facilities. Collectively, Interconnection Facilities include all facilities and equipment between the Generating Facility and the Point of Interconnection, including any modification, additions or upgrades that are necessary to physically and electrically interconnect the Generating Facility to the Distribution Provider's Distribution System. Interconnection Facilities are sole use facilities and shall not include Distribution Upgrades or Network Upgrades.