Common use of Condition 2 Clause in Contracts

Condition 2. When a Unit is operating under Condition 2, CAISO shall pay Owner the sum of: (a) the Monthly Option Payment, which shall be equal to the Monthly Availability Payment plus the Monthly Surcharge Payment, minus the sum of all Non- Performance Penalties for the Month. In no event shall (i) the Monthly Option Payment for any month be less than zero, (ii) the sum of the Monthly Availability Payments for a Contract Year exceed the Annual Fixed Revenue Requirement for the Contract Year or (iii) the sum of the Monthly Surcharge Payments for the and (d). Contract Year exceed the Annual Capital Item Cost (as defined in Schedule B) for the Contract Year. The Monthly Availability Payment and the Monthly Surcharge Payment shall each be computed in accordance with Schedule B. The Non-Performance Penalties for the Month shall be calculated in accordance with Section 8.5. (b) the Variable Cost Payment computed in accordance with Schedule C; (c) the sum of all Start-up Payments for the Month until Counted Start-ups equal Maximum Annual Start-ups computed in accordance with Schedule D; (d) the sum for all Settlement Periods in the Month of Motoring Charges calculated in accordance with Schedule E; (e) once the Counted MWh for the Contract Year equals the Maximum Annual MWh or the Counted Service Hours for the Contract Year equals the Maximum Annual Service Hours, a payment for each subsequent Billable MWh at the rate set out on Schedule G; (f) once the Counted Start-ups for the Contract Year equals the Maximum Annual Start-ups, a payment for each additional Start-up calculated in accordance with Schedule G; and (g) charges for services Delivered from Substitute Units pursuant to Section 5.1(c)

Condition 2. When a Unit is operating under Condition 2, CAISO shall pay Owner the sum of: (a) the Monthly Option Payment, which shall be equal to the Monthly Availability Payment plus the Monthly Surcharge Payment, minus the sum of all Non- Performance Penalties for the Month. In no event shall (i) the Monthly Option Payment for any month be less than zero, (ii) the sum of the Monthly Availability Payments for a Contract Year exceed the Annual Fixed Revenue Requirement for the Contract Year or (iii) the sum of the Monthly Surcharge Payments for the and (d). Contract Year exceed the Annual Capital Item Cost (as defined in Schedule B) for the Contract Year. The Monthly Availability Payment and the Monthly Surcharge Payment shall each be computed in accordance with Schedule B. The Non-Performance Penalties for the Month shall be calculated in accordance with Section 8.5. (b) the Variable Cost Payment computed in accordance with Schedule C; (c) the sum of all Start-up Payments for the Month until Counted Start-ups equal Maximum Annual Start-ups computed in accordance with Schedule D; (d) the sum for all Settlement Periods in the Month of Motoring Charges calculated in accordance with Schedule E; (e) once the Counted MWh for the Contract Year equals the Maximum Annual MWh or the Counted Service Hours for the Contract Year equals the Maximum Annual Service Hours, a payment for each subsequent Billable MWh at the rate set out on Schedule G; (f) once the Counted Start-ups for the Contract Year equals the Maximum Annual Start-ups, a payment for each additional Start-up calculated in accordance with Schedule G; and (g) charges for services Delivered from Substitute Units pursuant to Section 5.1(c) and (d).

Condition 2. When a Unit is operating under Condition 2, CAISO shall pay Owner the sum of: (a) the Monthly Option Payment, which shall be equal to the Monthly Availability Payment plus the Monthly Surcharge Payment, minus the sum of all Non- Performance Penalties for the Month. In no event shall (i) the Monthly Option Payment for any month be less than zero, (ii) the sum of the Monthly Availability and (d).‌ Payments for a Contract Year exceed the Annual Fixed Revenue Requirement for the Contract Year or (iii) the sum of the Monthly Surcharge Payments for the and (d). Contract Year exceed the Annual Capital Item Cost (as defined in Schedule B) for the Contract Year. The Monthly Availability Payment and the Monthly Surcharge Payment shall each be computed in accordance with Schedule B. The Non-Performance Penalties for the Month shall be calculated in accordance with Section 8.5. (b) the Variable Cost Payment computed in accordance with Schedule C; (c) the sum of all Start-up Payments for the Month until Counted Start-ups equal Maximum Annual Start-ups computed in accordance with Schedule D; (d) the sum for all Settlement Periods in the Month of Motoring Charges calculated in accordance with Schedule E; (e) once the Counted MWh for the Contract Year equals the Maximum Annual MWh or the Counted Service Hours for the Contract Year equals the Maximum Annual Service Hours, a payment for each subsequent Billable MWh at the rate set out on Schedule G; (f) once the Counted Start-ups for the Contract Year equals the Maximum Annual Start-ups, a payment for each additional Start-up calculated in accordance with Schedule G; and (g) charges for services Delivered from Substitute Units pursuant to Section 5.1(c)