Common use of Demonstrated Capacity Clause in Contracts

Demonstrated Capacity. (a) Each invoice submitted by Seller to Buyer pursuant to Section 4.2 shall include a statement, in a form substantially similar to Exhibit C, of the amount of the Qualifying Capacity for each type of Product for such Showing Month that Seller was capable of delivering (“Demonstrated Capacity”), utilizing the results from one of the following methods, as provided below (subject to the additional restrictions set forth in Section 1.6(b)): (i) The results of a DC Dispatch of the applicable PDR in the DRAM Resource during such Showing Month. The Demonstrated Capacity for System and Local Capacity will equal maximum hourly load reduction of such DC Dispatch as calculated using the Capacity Baseline; provided that, for the Showing Month of August, the Demonstrated Capacity for System and Local Capacity will equal the average hourly load reduction of such DC Dispatch as calculated using the Capacity Baseline. The Demonstrated Capacity for Flexible Capacity will equal the average hourly load reduction of such DC Dispatch as calculated using the Capacity Baseline. Demonstrated Capacity based on a DC Dispatch must align with the Clock Hours on which the applicable CAISO dispatch instructions are based; provided that, for any Real-Time Market award for which the CAISO dispatch instructions do not start or end on a Clock Hour, Demonstrated Capacity shall align with the same interval associated with the applicable CAISO dispatch instructions. If the CAISO issues a dispatch instruction for less than one hundred percent (100%) of the Qualifying Capacity of the applicable PDR in the DRAM Resource (a “Partial DC Dispatch”), then Seller may elect to submit the results of such Partial DC Dispatch during such Showing Month for its Demonstrated Capacity showing. Upon such election, the load reduction resulting from such Partial DC Dispatch shall be compared to the Qualifying Capacity of the entire PDR for purposes of deriving the DC-QC Ratio of the DRAM Resource in accordance with Section 4.1. (ii) The results of a DC Test in the event that (A) there is no DC Dispatch of the PDR in the DRAM Resource for one hundred percent (100%) of the Qualifying Capacity of the applicable Showing Month, and (B) Seller does not submit the results of a Partial DC Dispatch during the Showing Month as contemplated under 1.6(a)(i) above. The Demonstrated Capacity for System and Local Capacity will equal the maximum hourly load reduction during any hour of such DC Test as calculated using the Capacity Baseline; provided that, for the Showing Month of August the Demonstrated Capacity for System and Local Capacity will equal the average hourly load reduction during any two (2) consecutive hours as calculated using the Capacity Baseline. The Demonstrated Capacity for Flexible Capacity will equal the average hourly load reduction during any hour of such DC Test as calculated using the Capacity Baseline; provided that, for the Showing Month of August the Demonstrated Capacity for Flexible Capacity will equal the average hourly load reduction during any two (2) consecutive hours as calculated using the Capacity Baseline. (iii) In the event that (A) there is no DC Dispatch of the PDR in the DRAM Resource during the Showing Month for one hundred percent (100%) of the Qualifying Capacity of the applicable Showing Month, (B) Seller does not submit the results of a Partial DC Dispatch as contemplated under 1.6(a)(i) above, and (C) there is no DC Test of the PDR in the DRAM Resource during the Showing Month as contemplated under 1.6(a)(ii) above, the Demonstrated Capacity will equal the average amount of capacity for such PDR in the DRAM Resource that the Seller bid into the applicable CAISO Markets solely during the Availability Assessment Hours of the Showing Month in compliance with the CAISO Must-Offer Obligation. (b) Seller’s use of the methods described in Sections 1.6(a)(i)-(iii) is subject to the following additional restrictions: (i) Demonstrated Capacity for each PDR in the DRAM Resource must be calculated under Section 1.6(a)(i) or 1.6(a)(ii) for the August Showing Month of each year and for at least fifty percent (50%) of all contracted Showing Months during the Delivery Period (rounded downward if the Delivery Period is an odd number of Showing Months). For example, if the Delivery Period consists of seven (7) Showing Months, then a DC Test or DC Dispatch shall be required for at least three (3) of such Showing Months, including the Showing Month of August. (ii) Demonstrated Capacity for any PDR in the DRAM Resource shall not be calculated under Section 1.6(a)(iii) for more than five (5) consecutive Showing Months during the Delivery Period (prorated, if the Delivery Period is less than twelve (12) Showing Months, to a number equal to half of the Showing Months in the Delivery Period minus one: e.g., two consecutive Showing Months for a six-month Delivery Period). (iii) Demonstrated Capacity for each PDR in the DRAM Resource shall be calculated under Section 1.6(a)(i) or 1.6(a)(ii) for any Showing Month for which a QC De- Rate Notice was issued without a corresponding agreed reduction in Supply Plan quantities, as further provided in Section 3.1(b). (c) The same Capacity Baseline must be used (i) to estimate Qualifying Capacity for Seller’s month-ahead submissions pursuant to Section 3.1(a) for a Showing Month; (ii) to calculate Demonstrated Capacity for the applicable Showing Month; and (iii) for energy settlement at the CAISO for the applicable Showing Month. (d) Solely for purposes of establishing the Demonstrated Capacity pursuant to Section 1.6(a), Seller shall use data available through Buyer’s Customer Data Access Systems that has been designated by Buyer as final Revenue Quality Meter Data and such data shall be considered final by the Parties as of the date Seller submits its invoice for the applicable Showing Month to Buyer. (e) If Seller has not received all Revenue Quality Meter Data for any Resource ID within fifteen (15) calendar days after the end of any Showing Month, Seller shall provide Notice to Buyer of the Resource IDs (and customer service accounts with missing Revenue Quality Meter Data within each such Resource ID), and the dispatch days and hours during such Showing Month, for which Revenue Quality Meter Data has not been received. Seller and Buyer shall comply with the communication protocols set forth in Exhibit D with respect to data issues. (f) If the DRAM Resource is composed of more than one PDR, then: (i) Seller shall establish the portion of the Demonstrated Capacity for each such PDR by using the methods described in Sections 1.6(a)(i) through (iii), in which case the Demonstrated Capacity will equal the sum of the individual PDRs’ Demonstrated Capacities. (ii) The Showing Months in which DC Dispatches or DC Tests are conducted may be different for each such PDR except for the Showing Month of August, in which a DC Dispatch or DC Test is required for every PDR in the DRAM Resource pursuant to Section 1.6(b)(i). (iii) In the event that multiple Resource IDs are dispatched concurrently in a Showing Month, Seller may aggregate the performance of the concurrently dispatched Resource IDs for the purpose of Demonstrated Capacity invoicing and compare the sum of such aggregated performance against the sum of the Qualifying Capacity of those Resource IDs as listed on the applicable Supply Plan. For Local Capacity products, the aggregation of concurrently dispatched Resource IDs shall be limited to resources within the same SubLAP. (g) With respect to any DRAM Resource Customer service account that was moved in a Showing Month pursuant to Section 3.4(d), Seller shall include the performance of such DRAM Resource Customer service account only in one PDR for purposes of the calculation of Demonstrated Capacity for such Showing Month. (h) If the type of Product Seller delivers under this Agreement is a Residential Customer Product, Seller’s invoice shall indicate the number of Residential Customer SAID agreements and the number of Small Commercial SAID accounts in each PDR for such type of Product. (i) In addition to the requirements in Section 1.6(a), if Seller is electing Demonstrated Capacity for Local Capacity, then, as part of Seller’s Demonstrated Capacity for Local Capacity, Seller’s invoice shall indicate the number of SAID agreements in the applicable LCA that are associated with the Local Capacity as indicated in Table 1.1(b) and Exhibit C.

Demonstrated Capacity. (a) Each invoice submitted by Seller to Buyer pursuant to Section 4.2 shall include a statement, in a form substantially similar to Exhibit C, of the amount of the Qualifying Capacity for each type of Product for such Showing Month that Seller was capable of delivering (“Demonstrated Capacity”), utilizing the results from one of the following methods, as provided below (subject to the additional restrictions set forth in Section 1.6(b)): (i) The results of a DC Dispatch of the applicable PDR in the DRAM Resource during such Showing Month1. The Demonstrated Capacity for System and Local Capacity will equal maximum hourly load reduction of such DC Dispatch as calculated using the Capacity Baseline; provided that, for the Showing Month of August, the Demonstrated Capacity for System and Local Capacity will equal the average hourly load reduction of such DC Dispatch as calculated using the Capacity Baseline. The Demonstrated Capacity for Flexible Capacity will equal the average hourly load reduction of such DC Dispatch as calculated using the Capacity Baseline. Demonstrated Capacity based on a DC Dispatch must align with the Clock Hours on which the applicable CAISO dispatch instructions are based; provided that, for any Real-Time Market award for which the CAISO dispatch instructions do not start or end on a Clock Hour, Demonstrated Capacity shall align with the same interval associated with the applicable CAISO dispatch instructions. If the CAISO issues a dispatch instruction for less than one hundred percent (100%) of the Qualifying Capacity of the applicable PDR in the DRAM Resource (a “Partial DC Dispatch”), then Seller may elect to submit the results of such Partial DC Dispatch during such Showing Month for its Demonstrated Capacity showing. Upon such election, the load reduction resulting from such Partial DC Dispatch shall be compared to the Qualifying Capacity of the entire PDR for purposes of deriving the DC-QC Ratio of the DRAM Resource in accordance with Section 4.1. (ii) The results of a DC Test in the event that (A) there is no DC Dispatch of the PDR in the DRAM Resource for one hundred percent (100%) of the Qualifying Capacity of the applicable Showing Month, and (B) Seller does not submit the results of a Partial DC Dispatch during the Showing Month as contemplated under 1.6(a)(i) above. The Demonstrated Capacity for System and Local Capacity will equal the maximum hourly load reduction during any hour of such DC Test as calculated using the Capacity Baseline; provided that, for the Showing Month of August the Demonstrated Capacity for System and Local Capacity will equal the average hourly load reduction during any two (2) consecutive hours as calculated using the Capacity Baseline. The Demonstrated Capacity for Flexible Capacity will equal the average hourly load reduction during any hour of such DC Test as calculated using the Capacity Baseline; provided that, for the Showing Month of August the Demonstrated Capacity for Flexible Capacity will equal the average hourly load reduction during any two (2) consecutive hours as calculated using the Capacity Baseline. (iii) . In the event that (A) there is no DC Dispatch of the PDR in the DRAM Resource during the Showing Month for one hundred percent (100%) of the Qualifying Capacity of the applicable Showing Month, (B) Seller does not submit the results of a Partial DC Dispatch as contemplated under 1.6(a)(i) above, and (C) there is no DC Test of the PDR in the DRAM Resource during the Showing Month as contemplated under 1.6(a)(ii) above, the Demonstrated Capacity will equal the average amount of capacity for such PDR in the DRAM Resource that the Seller bid into the applicable CAISO Markets solely during the Availability Assessment Hours of the Showing Month in compliance with the CAISO Must-Offer Obligation. (b) . Seller’s use of the methods described in Sections 1.6(a)(i)-(iii) is subject to the following additional restrictions: (i) : Demonstrated Capacity for each PDR in the DRAM Resource must be calculated under Section 1.6(a)(i) or 1.6(a)(ii) for the August Showing Month of each year and for at least fifty percent (50%) of all contracted Showing Months during the Delivery Period (rounded downward if the Delivery Period is an odd number of Showing Months). For example, if the Delivery Period consists of seven (7) Showing Months, then a DC Test or DC Dispatch shall be required for at least three (3) of such Showing Months, including the Showing Month of August. (ii) . Demonstrated Capacity for any PDR in the DRAM Resource shall not be calculated under Section 1.6(a)(iii) for more than five (5) consecutive Showing Months during the Delivery Period (prorated, if the Delivery Period is less than twelve (12) Showing Months, to a number equal to half of the Showing Months in the Delivery Period minus one: e.g., two consecutive Showing Months for a six-month Delivery Period). (iii) . Demonstrated Capacity for each PDR in the DRAM Resource shall be calculated under Section 1.6(a)(i) or 1.6(a)(ii) for any Showing Month for which a QC De- De-Rate Notice was issued without a corresponding agreed reduction in Supply Plan quantities, as further provided in Section 3.1(b). (c) . The same Capacity Baseline must be used (i) to estimate Qualifying Capacity for Seller’s month-ahead submissions pursuant to Section 3.1(a) for a Showing Month; (ii) to calculate Demonstrated Capacity for the applicable Showing Month; and (iii) for energy settlement at the CAISO for the applicable Showing Month. (d) . Solely for purposes of establishing the Demonstrated Capacity pursuant to Section 1.6(a), Seller shall use data available through Buyer’s Customer Data Access Systems that has been designated by Buyer as final Revenue Quality Meter Data and such data shall be considered final by the Parties as of the date Seller submits its invoice for the applicable Showing Month to Buyer. (e) . If Seller has not received all Revenue Quality Meter Data for any Resource ID within fifteen (15) calendar days after the end of any Showing Month, Seller shall provide Notice to Buyer of the Resource IDs (and customer service accounts with missing Revenue Quality Meter Data within each such Resource ID), and the dispatch days and hours during such Showing Month, for which Revenue Quality Meter Data has not been received. Seller and Buyer shall comply with the communication protocols set forth in Exhibit D with respect to data issues. (f) . If the DRAM Resource is composed of more than one PDR, then: (i) : Seller shall establish the portion of the Demonstrated Capacity for each such PDR by using the methods described in Sections 1.6(a)(i) through (iii), in which case the Demonstrated Capacity will equal the sum of the individual PDRs’ Demonstrated Capacities. (ii) . The Showing Months in which DC Dispatches or DC Tests are conducted may be different for each such PDR except for the Showing Month of August, in which a DC Dispatch or DC Test is required for every PDR in the DRAM Resource pursuant to Section 1.6(b)(i). (iii) . In the event that multiple Resource IDs are dispatched concurrently in a Showing Month, Seller may aggregate the performance of the concurrently dispatched Resource IDs for the purpose of Demonstrated Capacity invoicing and compare the sum of such aggregated performance against the sum of the Qualifying Capacity of those Resource IDs as listed on the applicable Supply Plan. For Local Capacity products, the aggregation of concurrently dispatched Resource IDs shall be limited to resources within the same SubLAP. (g) . With respect to any DRAM Resource Customer service account that was moved in a Showing Month pursuant to Section 3.4(d), Seller shall include the performance of such DRAM Resource Customer service account only in one PDR for purposes of the calculation of Demonstrated Capacity for such Showing Month. (h) . If the type of Product Seller delivers under this Agreement is a Residential Customer Product, Seller’s invoice shall indicate the number of Residential Customer SAID agreements and the number of Small Commercial SAID accounts in each PDR for such type of Product. (i) . In addition to the requirements in Section 1.6(a), if Seller is electing Demonstrated Capacity for Local Capacity, then, as part of Seller’s Demonstrated Capacity for Local Capacity, Seller’s invoice shall indicate the number of SAID agreements in the applicable LCA that are associated with the Local Capacity as indicated in Table 1.1(b) and Exhibit C.C. If Buyer is unable to validate, or disputes, any amount shown in Seller’s invoice and Notice of Demonstrated Capacity, then Buyer shall issue a Notice to that effect to Seller in accordance with Section 1.6(k)(i) below. Pursuant to Section 1.6(k)(ii), Seller shall be required to provide additional documentation from Seller or Seller’s SC in the form or format requested by Buyer that establishes to Buyer’s reasonable satisfaction that the Demonstrated Capacity of each Product type from a PDR is as stated by Seller in its invoice for the applicable Showing Month. Buyer shall issue such Notice on or before the later of: (A) the twentieth (20th) calendar day of the month and (B) the tenth (10th) calendar day after receipt of Seller’s invoice and Demonstrated Capacity; provided that, if such day is not a Business Day, then on the next Business Day. No later than ten (10) Business Days after receipt of Xxxxx’s Notice, Seller shall provide the additional documentation to Buyer. If Seller fails to provide the additional documentation within such ten (10) Business Day deadline, then Buyer shall either (A) pay the subject invoice or (B) initiate an audit of Seller’s or Seller’s SC records by issuing a Notice (“Audit Notice”) to Seller, in each case no later than fifteen (15) Business Days after the expiration of such ten (10) Business Day deadline. No later than fifteen (15) Business Days after receiving the additional documentation from Seller, Buyer shall either: (A) pay the subject invoice or (B) initiate an audit of Seller or Seller’s SC records by issuing an Audit Notice to Seller if the additional documentation is unsatisfactory to Buyer in its reasonable discretion. With respect to an Audit Notice issued under Section 1.6(k)(ii) or (iii), no later than five (5) Business Days after Seller’s receipt of an Audit Notice, Seller shall allow, or cause its SC to allow, Buyer or its designated independent third-party auditor to have access to the records and data, which must be in the form or format requested by Buyer under Section 1.6(k) above, necessary to conduct such audit; provided, such audit will be limited solely to verification of the data upon which Seller based its claim of the amount of the Demonstrated Capacity. If the type of Product designated in Section 1.1(b) is a Residential Customer Product, then, in addition to the documentation specified above, Buyer may, in its Audit Notice, require Seller or Seller’s SC to provide additional documentation in the form or format requested by Buyer, that establishes to Buyer’s reasonable satisfaction that the type of Product is Residential Customer Product as stated by Seller in its invoice for the applicable Showing Month. Buyer’s costs, including the costs for any third-party auditor, incurred in connection with conducting such audit are the sole responsibility of Buyer. Buyer shall make a reasonable effort to conclude its audit within sixty (60) calendar days after receiving all records and data that Buyer deems necessary to complete or resolve the disputed invoice. If the audit does not result in the resolution of the disputed invoice, then either Party may initiate the Dispute Resolution process pursuant to Article 10.

Demonstrated Capacity. (a) Each invoice submitted by Seller to Buyer pursuant to Section 4.2 shall include a statement, in a form substantially similar to Exhibit C, of the amount of the Qualifying Capacity Product Monthly Quantity for each type of Product for such Showing Month that Seller was capable of delivering (“Demonstrated Capacity”), utilizing the results from including, at Seller’s election in its sole discretion, any one of the following methods, as provided below (subject to the additional restrictions set forth in Section 1.6(b)):following: (i) The results of a DC Dispatch capacity test conducted by the Seller’s SC during the applicable Showing Month. Such test shall consist of at least two (2) continuous hours of load reduction by the applicable PDR or RDRR in the DRAM Resource during such Showing MonthResource. The Demonstrated Capacity for System and or Local Capacity with respect to such PDR or RDRR will equal the maximum hourly load reduction of during such DC Dispatch test as calculated using the Capacity Baseline; provided that, for the Showing Month of August, Baseline and the Demonstrated Capacity for System and Local Flexible Capacity with respect to such PDR will equal the average hourly load reduction of during such DC Dispatch test as calculated using the Capacity Baseline. The Demonstrated Capacity for Flexible Capacity will equal the average hourly load reduction of such DC Dispatch as calculated using the Capacity Baseline. Demonstrated Capacity based on a DC Dispatch must align with the Clock Hours on which the applicable CAISO dispatch instructions are based; provided that, for any Real-Time Market award for which the CAISO dispatch instructions do not start or end on a Clock Hour, Demonstrated Capacity shall align with the same interval associated with the applicable CAISO dispatch instructions. If the CAISO issues a dispatch instruction for less than one hundred percent (100%) of the Qualifying Capacity of the applicable PDR in the DRAM Resource (a “Partial DC Dispatch”), then Seller may elect to submit the results of such Partial DC Dispatch during such Showing Month for its Demonstrated Capacity showing. Upon such election, the load reduction resulting from such Partial DC Dispatch shall be compared to the Qualifying Capacity of the entire PDR for purposes of deriving the DC-QC Ratio of the DRAM Resource in accordance with Section 4.1.; (ii) The results average amount of a DC Test in capacity for the event that (A) there is no DC Dispatch of the applicable PDR or RDRR in the DRAM Resource for one hundred percent (100%) that the Seller Bid into the applicable CAISO Markets solely during the hours of the Qualifying Capacity Showing Month in compliance with the MOO; or (iii) The results of a Dispatch of the applicable PDR or RDRR in the DRAM Resource during the Showing Month, and (B) Seller does not submit provided that the results PDR or RDRR provided load reduction during all of a Partial DC the hours referenced in the Dispatch during Instruction corresponding to the Showing Month as contemplated under 1.6(a)(i) aboveapplicable MOO hours. The Demonstrated Capacity for System and Local Capacity will equal the maximum hourly load reduction during any hour of such DC Test Dispatch as calculated using the Capacity Baseline; provided that, for the Showing Month of August the Demonstrated Capacity for System Baseline and Local Capacity will equal the average hourly load reduction during any two (2) consecutive hours as calculated using the Capacity Baseline. The Demonstrated Capacity for Flexible Capacity will equal the average hourly load reduction during any hour of such DC Test as calculated using the Capacity Baseline; provided that, for the Showing Month of August the Demonstrated Capacity for Flexible Capacity will equal the average hourly load reduction during any two (2) consecutive hours as calculated using the Capacity Baseline. (iii) In the event that (A) there is no DC Dispatch of the PDR in the DRAM Resource during the Showing Month for one hundred percent (100%) of the Qualifying Capacity of the applicable Showing Month, (B) Seller does not submit the results of a Partial DC Dispatch as contemplated under 1.6(a)(i) above, and (C) there is no DC Test of the PDR in the DRAM Resource during the Showing Month as contemplated under 1.6(a)(ii) above, the Demonstrated Capacity will equal the average amount of capacity for such PDR in the DRAM Resource that the Seller bid into the applicable CAISO Markets solely during the Availability Assessment Hours of the Showing Month in compliance with the CAISO Must-Offer Obligation. (b) Seller’s use of the methods described in Sections 1.6(a)(i)-(iii) is subject to the following additional restrictions: (i) Demonstrated Capacity for each PDR in the DRAM Resource must be calculated under Section 1.6(a)(i) or 1.6(a)(ii) for the August Showing Month of each year and for at least fifty percent (50%) of all contracted Showing Months during the Delivery Period (rounded downward if the Delivery Period is an odd number of Showing Months). For example, if the Delivery Period consists of seven (7) Showing Months, then a DC Test or DC Dispatch shall be required for at least three (3) of such Showing Months, including the Showing Month of August. (ii) Demonstrated Capacity for any PDR in the DRAM Resource shall not be calculated under Section 1.6(a)(iii) for more than five (5) consecutive Showing Months during the Delivery Period (prorated, if the Delivery Period is less than twelve (12) Showing Months, to a number equal to half of the Showing Months in the Delivery Period minus one: e.g., two consecutive Showing Months for a six-month Delivery Period). (iii) Demonstrated Capacity for each PDR in the DRAM Resource shall be calculated under Section 1.6(a)(i) or 1.6(a)(ii) for any Showing Month for which a QC De- Rate Notice was issued without a corresponding agreed reduction in Supply Plan quantities, as further provided in Section 3.1(b). (c) The same Capacity Baseline must be used (i) to estimate Qualifying Capacity for Seller’s month-ahead submissions pursuant to Section 3.1(a) for a Showing Month; (ii) to calculate Demonstrated Capacity for the applicable Showing Month; and (iii) for energy settlement at the CAISO for the applicable Showing Month. (d) Solely for purposes of establishing the Demonstrated Capacity pursuant to Section 1.6(a), Seller shall use data available through Buyer’s Customer Data Access Systems that has been designated by Buyer as final Revenue Quality Meter Data and such data shall be considered final by the Parties as of the date Seller submits its invoice for the applicable Showing Month to Buyer. (e) If Seller has not received all Revenue Quality Meter Data for any Resource ID within fifteen (15) calendar days after the end of any Showing Month, Seller shall provide Notice to Buyer of the Resource IDs (and customer service accounts with missing Revenue Quality Meter Data within each such Resource ID), and the dispatch days and hours during such Showing Month, for which Revenue Quality Meter Data has not been received. Seller and Buyer shall comply with the communication protocols set forth in Exhibit D with respect to data issues. (fc) If the DRAM Resource is composed comprised of more than one PDRPDR or RDRR, then: (i) then Seller shall may establish the portion of the Demonstrated Capacity for a specific type of Product associated with each such PDR or RDRR by using any one of the methods described in Sections 1.6(a)(i) through (iii1.6(a)(i)-(iii), in which case the Demonstrated Capacity for a specific type of Product will equal the sum of the individual PDRs’ Demonstrated CapacitiesPDR or RDRRs demonstrated capacities. (iid) The Showing Months in which DC Dispatches If any respective PDR or DC Tests are conducted may be different for each such PDR except for the Showing Month of August, in which a DC Dispatch or DC Test is required for every PDR RDRR in the DRAM Resource pursuant is a Joint Resource, Seller’s invoice shall indicate (x) the amount of the capacity of such Joint Resource used to Section 1.6(b)(i)show Demonstrated Capacity for a specific type of Product for such month and (y) the total capacity of such Joint Resource during such month. (iii) In the event that multiple Resource IDs are dispatched concurrently in a Showing Month, Seller may aggregate the performance of the concurrently dispatched Resource IDs for the purpose of Demonstrated Capacity invoicing and compare the sum of such aggregated performance against the sum of the Qualifying Capacity of those Resource IDs as listed on the applicable Supply Plan. For Local Capacity products, the aggregation of concurrently dispatched Resource IDs shall be limited to resources within the same SubLAP. (g) With respect to any DRAM Resource Customer service account that was moved in a Showing Month pursuant to Section 3.4(d), Seller shall include the performance of such DRAM Resource Customer service account only in one PDR for purposes of the calculation of Demonstrated Capacity for such Showing Month. (he) If the type of Product Seller delivers under this Agreement is a Residential Customer Product, Seller’s invoice shall indicate the number of Residential Customer SAID agreements and the number of Small Commercial SAID accounts in each PDR or RDRR for such type of Product. (if) In addition to the requirements in Section 1.6(a), if Seller is electing Demonstrated Capacity for Local Capacity, then, as part of Seller’s Demonstrated Capacity for Local Capacity, Seller’s invoice shall indicate the number of SAID agreements in the applicable LCA that are associated with the Local Capacity as indicated in Table 1.1(b) and Exhibit C. (g) Following Buyer’s receipt of Seller’s invoice and Notice of Demonstrated Capacity, Buyer may, upon Notice to Seller, require Seller to provide documentation from Seller or Seller’s SC that establishes to Buyer’s reasonable satisfaction the Demonstrated Capacity of each Product type from a PDR, RDRR or Joint Resource as stated by Seller in its invoice for the applicable Showing Month. In the event that Seller does not provide such documentation within ten

Demonstrated Capacity. (a) Each invoice submitted by Seller to Buyer pursuant to Section 4.2 shall include a statement, in a form substantially similar to Exhibit C, of the amount of the Qualifying Capacity for each type of Product for such Showing Month that Seller was capable of delivering (“Demonstrated Capacity”), utilizing the results from one of the following methods, as provided below (subject to the additional restrictions set forth in Section 1.6(b)): (i) The results of a DC Dispatch of the applicable PDR in the DRAM Resource during such Showing Month. The Demonstrated Capacity for System and Local Capacity will equal the maximum hourly load reduction of such DC Dispatch as calculated using the Capacity Baseline; provided that, for the Showing Month of August, the Demonstrated Capacity for System and Local Capacity will equal the average hourly load reduction of such DC Dispatch as calculated using the Capacity Baseline. The Demonstrated Capacity for Flexible Capacity will equal the average hourly load reduction of such DC Dispatch as calculated using the Capacity Baseline. Demonstrated Capacity based on a DC Dispatch must align with the Clock Hours on which the applicable CAISO dispatch instructions are based; provided that, for any Real-Time Market award for which the CAISO dispatch instructions do not start or end on a Clock Hour, Demonstrated Capacity shall align with the same interval associated with the applicable CAISO dispatch instructions. If the CAISO issues a dispatch instruction for less than one hundred percent (100%) of the Qualifying Capacity of the applicable PDR in the DRAM Resource (a “Partial DC Dispatch”), then Seller may elect to submit the results of such Partial DC Dispatch during such Showing Month for its Demonstrated Capacity showing. Upon such election, the load reduction resulting from such Partial DC Dispatch shall be compared to the Qualifying Capacity of the entire PDR for purposes of deriving the DC-QC Ratio of the DRAM Resource in accordance with Section 4.1. (ii) The results of a DC Test in the event that (A) there is no DC Dispatch of the PDR in the DRAM Resource for one hundred percent (100%) of the Qualifying Capacity of the applicable Showing Month, and (B) Seller does not submit the results of a Partial DC Dispatch during the Showing Month as contemplated under 1.6(a)(i) above. The Demonstrated Capacity for System and Local Capacity will equal the maximum hourly load reduction during any hour of such DC Test as calculated using the Capacity Baseline; provided that, for the Showing Month of August the Demonstrated Capacity for System and Local Capacity will equal the average hourly load reduction during any two (2) consecutive hours as calculated using the Capacity Baseline. The Demonstrated Capacity for Flexible Capacity will equal the average hourly load reduction during any hour of such DC Test as calculated using the Capacity Baseline; provided that, for the Showing Month of August the Demonstrated Capacity for Flexible Capacity will equal the average hourly load reduction during any two (2) consecutive hours as calculated using the Capacity Baseline. (iii) In the event that (A) there is no DC Dispatch of the PDR in the DRAM Resource during the Showing Month for one hundred percent (100%) of the Qualifying Capacity of the applicable Showing Month, (B) Seller does not submit the results of a Partial DC Dispatch as contemplated under 1.6(a)(i) above, and (C) there is no DC Test of the PDR in the DRAM Resource during the Showing Month as contemplated under 1.6(a)(ii) above, the Demonstrated Capacity will equal the average amount of capacity for such PDR in the DRAM Resource that the Seller bid into the applicable CAISO Markets solely during the Availability Assessment Hours of the Showing Month in compliance with the CAISO Must-Offer ObligationMOO. (b) Seller’s use of the methods described in Sections 1.6(a)(i)-(iii) is subject to the following additional restrictions: (i) Demonstrated Capacity for each PDR in the DRAM Resource must be calculated under Section 1.6(a)(i) or 1.6(a)(ii) for the August Showing Month of each year and for at least fifty percent (50%) of all contracted Showing Months during the Delivery Period (rounded downward if the Delivery Period is an odd number of Showing Months). For example, if the Delivery Period consists of seven (7) Showing Months, then a DC Test or DC Dispatch shall be required for at least three (3) of such Showing Months, including the Showing Month of August. (ii) Demonstrated Capacity for any PDR in the DRAM Resource shall not be calculated under Section 1.6(a)(iii) for more than five (5) consecutive Showing Months during the Delivery Period (prorated, if the Delivery Period is less than twelve (12) Showing Months, to a number equal to half of the Showing Months in the Delivery Period minus one: e.g., two consecutive Showing Months for a six-month Delivery Period). (iii) Demonstrated Capacity for each PDR in the DRAM Resource shall be calculated under Section 1.6(a)(i) or 1.6(a)(ii) for any Showing Month for which a QC De- Rate Notice was issued without a corresponding agreed reduction in Supply Plan quantities, as further provided in Section 3.1(b). (c) The same Capacity Baseline must be used (i) to estimate Qualifying Capacity for Seller’s month-ahead submissions pursuant to Section 3.1(a) for a Showing Month; (ii) to calculate Demonstrated Capacity for the applicable Showing Month; and (iii) for energy settlement at the CAISO for the applicable Showing Month. (d) Solely for purposes of establishing the Demonstrated Capacity pursuant to Section 1.6(a), Seller shall use data available through Buyer’s Customer Data Access Systems that has been designated by Buyer as final Revenue Quality Meter Data and such data shall be considered final by the Parties as of the date Seller submits its invoice for the applicable Showing Month to Buyer. (e) If Seller has not received all Revenue Quality Meter Data for any Resource ID within fifteen (15) calendar days after the end of any Showing Month, Seller shall provide Notice to Buyer of the Resource IDs (and customer service accounts with missing Revenue Quality Meter Data within each such Resource ID), and the dispatch days and hours during such Showing Month, for which Revenue Quality Meter Data has not been received. Seller and Buyer shall comply with the communication protocols set forth in Exhibit D with respect to data issues. (f) If the DRAM Resource is composed of more than one PDR, then: (i) Seller shall may establish the portion of the Demonstrated Capacity for each such PDR by using the methods described in Sections 1.6(a)(i) through (iii), in which case the Demonstrated Capacity will equal the sum of the individual PDRs’ Demonstrated Capacities. (ii) The Showing Months in which DC Dispatches or DC Tests are conducted may be different for each such PDR except for the Showing Month of August, in which a DC Dispatch or DC Test is required for every PDR in the DRAM Resource pursuant to Section 1.6(b)(i). (iii) In the event that multiple Resource IDs are dispatched concurrently in a Showing Month, Seller may aggregate the performance of the concurrently dispatched Resource IDs for the purpose of Demonstrated Capacity invoicing and compare the sum of such aggregated performance against the sum of the Qualifying Capacity of those Resource IDs as listed on the applicable Supply Plan. For Local Capacity products, the aggregation of concurrently dispatched Resource IDs shall be limited to resources within the same SubLAP. (gf) With respect to any DRAM Resource Customer service account that was moved in a Showing Month pursuant to Section 3.4(d), Seller shall include the performance of such DRAM Resource Customer service account only in one PDR for purposes of the calculation of Demonstrated Capacity for such Showing Month. (g) If any respective PDR in the DRAM Resource is a Joint Resource, Seller’s invoice shall indicate (i) the amount of the capacity of such Joint Resource used to show Demonstrated Capacity for a specific type of Product for such Showing Month and (ii) the total capacity of such Joint Resource during such Showing Month. (h) If the type of Product Seller delivers under this Agreement is a Residential Customer Product, Seller’s invoice shall indicate the number of Residential Customer SAID agreements and the number of Small Commercial SAID accounts in each PDR for such type of Product. (i) In addition to the requirements in Section 1.6(a), if Seller is electing Demonstrated Capacity for Local Capacity, then, as part of Seller’s Demonstrated Capacity for Local Capacity, Seller’s invoice shall indicate the number of SAID agreements in the applicable LCA that are associated with the Local Capacity as indicated in Table 1.1(b) and Exhibit C. (j) Following Buyer’s receipt of Seller’s invoice and Notice of Demonstrated Capacity, Buyer may, upon Notice to Seller, require Seller to provide documentation from Seller or Seller’s SC that establishes to Buyer’s reasonable satisfaction the Demonstrated Capacity of each Product type from a PDR or Joint Resource as stated by Seller in its invoice for the applicable Showing Month. In the event that Seller does not provide such documentation within ten (10) Business Days from Buyer’s Notice or such documentation is not reasonably satisfactory to Buyer, then Buyer may require an audit of Seller or Seller’s SC records upon Notice (“Audit Notice”). With respect to an Audit Notice, Seller shall cause its SC to allow Buyer or its designated independent third-party auditor to have access to the records and data necessary to conduct such audit within five

Demonstrated Capacity. (a) Each invoice submitted by Seller to Buyer pursuant to Section 4.2 shall include a statement, in a form substantially similar to Exhibit C, of the amount of the Qualifying Capacity for each type of Product for such Showing Month that Seller was capable of delivering (“Demonstrated Capacity”), utilizing the results from one of the following methods, as provided below (subject to the additional restrictions set forth in Section 1.6(b)): (i) The results of a DC Dispatch of the applicable PDR in the DRAM Resource during such Showing Month. The Demonstrated Capacity for System and Local Capacity will equal the maximum hourly load reduction of such DC Dispatch as calculated using the Capacity Baseline; provided that, for the Showing Month of August, the Demonstrated Capacity for System and Local Capacity will equal the average hourly load reduction of such DC Dispatch as calculated using the Capacity Baseline. The Demonstrated Capacity for Flexible Capacity will equal the average hourly load reduction of such DC Dispatch as calculated using the Capacity Baseline. Demonstrated Capacity based on a DC Dispatch must align with the Clock Hours on which the applicable CAISO dispatch instructions are based; provided that, for any Real-Time Market award for which the CAISO dispatch instructions do not start or end on a Clock Hour, Demonstrated Capacity shall align with the same interval associated with the applicable CAISO dispatch instructions. If the CAISO issues a dispatch instruction for less than one hundred percent (100%) of the Qualifying Capacity of the applicable PDR in the DRAM Resource (a “Partial DC Dispatch”), then Seller may elect to submit the results of such Partial DC Dispatch during such Showing Month for its Demonstrated Capacity showing. Upon such election, the load reduction resulting from such Partial DC Dispatch shall be compared to the Qualifying Capacity of the entire PDR for purposes of deriving the DC-QC Ratio of the DRAM Resource in accordance with Section 4.1. (ii) The results of a DC Test in the event that (A) there is no DC Dispatch of the PDR in the DRAM Resource for one hundred percent (100%) of the Qualifying Capacity of the applicable Showing Month, and (B) Seller does not submit the results of a Partial DC Dispatch during the Showing Month as contemplated under 1.6(a)(i) above. The Demonstrated Capacity for System and Local Capacity will equal the maximum hourly load reduction during any hour of such DC Test as calculated using the Capacity Baseline; provided that, for the Showing Month of August the Demonstrated Capacity for System and Local Capacity will equal the average hourly load reduction during any two (2) consecutive hours as calculated using the Capacity Baseline. The Demonstrated Capacity for Flexible Capacity will equal the average hourly load reduction during any hour of such DC Test as calculated using the Capacity Baseline; provided that, for the Showing Month of August the Demonstrated Capacity for Flexible Capacity will equal the average hourly load reduction during any two (2) consecutive hours as calculated using the Capacity Baseline. (iii) In the event that (A) there is no DC Dispatch of the PDR in the DRAM Resource during the Showing Month for one hundred percent (100%) of the Qualifying Capacity of the applicable Showing Month, (B) Seller does not submit the results of a Partial DC Dispatch as contemplated under 1.6(a)(i) above, and (C) there is no DC Test of the PDR in the DRAM Resource during the Showing Month as contemplated under 1.6(a)(ii) above, the Demonstrated Capacity will equal the average amount of capacity for such PDR in the DRAM Resource that the Seller bid into the applicable CAISO Markets solely during the Availability Assessment Hours of the Showing Month in compliance with the CAISO Must-Offer Obligation. (b) Seller’s use of the methods described in Sections 1.6(a)(i)-(iii) is subject to the following additional restrictions: (i) Demonstrated Capacity for each PDR in the DRAM Resource must be calculated under Section 1.6(a)(i) or 1.6(a)(ii) for the August Showing Month of each year and for at least fifty percent (50%) of all contracted Showing Months during the Delivery Period (rounded downward if the Delivery Period is an odd number of Showing Months). For example, if the Delivery Period consists of seven (7) Showing Months, then a DC Test or DC Dispatch shall be required for at least three (3) of such Showing Months, including the Showing Month of August. (ii) Demonstrated Capacity for any PDR in the DRAM Resource shall not be calculated under Section 1.6(a)(iii) for more than five (5) consecutive Showing Months during the Delivery Period (prorated, if the Delivery Period is less than twelve (12) Showing Months, to a number equal to half of the Showing Months in the Delivery Period minus one: e.g., two consecutive Showing Months for a six-month Delivery Period). (iii) Demonstrated Capacity for each PDR in the DRAM Resource shall be calculated under Section 1.6(a)(i) or 1.6(a)(ii) for any Showing Month for which a QC De- De-Rate Notice was issued without a corresponding agreed reduction in Supply Plan quantities, as further provided in Section 3.1(b). (c) The same Capacity Baseline must be used (i) to estimate Qualifying Capacity for Seller’s month-ahead submissions pursuant to Section 3.1(a) for a Showing Month; (ii) to calculate Demonstrated Capacity for the applicable Showing Month; and (iii) for energy settlement at the CAISO for the applicable Showing Month. (d) Solely for purposes of establishing the Demonstrated Capacity pursuant to Section 1.6(a), Seller shall use data available through Buyer’s Customer Data Access Systems that has been designated by Buyer as final Revenue Quality Meter Data and such data shall be considered final by the Parties as of the date Seller submits its invoice for the applicable Showing Month to Buyer. (e) If Seller has not received all Revenue Quality Meter Data for any Resource ID within fifteen (15) calendar days after the end of any Showing Month, Seller shall provide Notice to Buyer of the Resource IDs (and customer service accounts with missing Revenue Quality Meter Data within each such Resource ID), and the dispatch days and hours during such Showing Month, for which Revenue Quality Meter Data has not been received. Seller and Buyer shall comply with the communication protocols set forth in Exhibit D with respect to data issues. (f) If the DRAM Resource is composed of more than one PDR, then: (i) Seller shall establish the portion of the Demonstrated Capacity for each such PDR by using the methods described in Sections 1.6(a)(i) through (iii), in which case the Demonstrated Capacity will equal the sum of the individual PDRs’ Demonstrated Capacities. (ii) The Showing Months in which DC Dispatches or DC Tests are conducted may be different for each such PDR except for the Showing Month of August, in which a DC Dispatch or DC Test is required for every PDR in the DRAM Resource pursuant to Section 1.6(b)(i). (iii) In the event that multiple Resource IDs are dispatched concurrently in a Showing Month, Seller may aggregate the performance of the concurrently dispatched Resource IDs for the purpose of Demonstrated Capacity invoicing and compare the sum of such aggregated performance against the sum of the Qualifying Capacity of those Resource IDs as listed on the applicable Supply Plan. For Local Capacity products, the aggregation of concurrently dispatched Resource IDs shall be limited to resources within the same SubLAP. (g) With respect to any DRAM Resource Customer service account that was moved in a Showing Month pursuant to Section 3.4(d), Seller shall include the performance of such DRAM Resource Customer service account only in one PDR for purposes of the calculation of Demonstrated Capacity for such Showing Month. (h) If the type of Product Seller delivers under this Agreement is a Residential Customer Product, Seller’s invoice shall indicate the number of Residential Customer SAID agreements and the number of Small Commercial SAID accounts in each PDR for such type of Product. (i) In addition to the requirements in Section 1.6(a), if Seller is electing Demonstrated Capacity for Local Capacity, then, as part of Seller’s Demonstrated Capacity for Local Capacity, Seller’s invoice shall indicate the number of SAID agreements in the applicable LCA that are associated with the Local Capacity as indicated in Table 1.1(b) and Exhibit C. (j) If Buyer is unable to validate, or disputes, any amount shown in Seller’s invoice and Notice of Demonstrated Capacity, then Buyer shall issue a Notice to that effect to Seller in accordance with Section 1.6(k)(i) below. Pursuant to Section 1.6(k)(ii), Seller shall be required to provide additional documentation from Seller or Seller’s SC in the form or format requested by Buyer that establishes to Buyer’s reasonable satisfaction that the Demonstrated Capacity of each Product type from a PDR is as stated by Seller in its invoice for the applicable Showing Month. (i) Buyer shall issue such Notice on or before the later of: (A) the twentieth (20th) calendar day of the month and (B) the tenth (10th) calendar day after receipt of Seller’s invoice and Demonstrated Capacity; provided that, if such day is not a Business Day, then on the next Business Day. (ii) No later than ten (10) Business Days after receipt of Buyer’s Notice, Seller shall provide the additional documentation to Buyer. If Seller fails to provide the additional documentation within such ten (10) Business Day deadline, then Buyer shall either (A) pay the subject invoice or (B) initiate an audit of Seller’s or Seller’s SC records by issuing a Notice (“Audit Notice”) to Seller, in each case no later than fifteen (15) Business Days after the expiration of such ten (10) Business Day deadline. (iii) No later than fifteen (15) Business Days after receiving the additional documentation from Seller, Buyer shall either: (A) pay the subject invoice or (B) initiate an audit of Seller or Seller’s SC records by issuing an Audit Notice to Seller if the additional documentation is unsatisfactory to Buyer in its reasonable discretion. (k) With respect to an Audit Notice issued under Section 1.6(k)(ii) or (iii), no later than five (5) Business Days after Seller’s receipt of an Audit Notice, Seller shall allow, or cause its SC to allow, Buyer or its designated independent third-party auditor to have access to the records and data, which must be in the form or format requested by Buyer under Section 1.6(k) above, necessary to conduct such audit; provided, such audit will be limited solely to verification of the data upon which Seller based its claim of the amount of the Demonstrated Capacity. If the type of Product designated in Section 1.1(b) is a Residential Customer Product, then, in addition to the documentation specified above, Buyer may, in its Audit Notice, require Seller or Seller’s SC to provide additional documentation in the form or format requested by Buyer, that establishes to Buyer’s reasonable satisfaction that the type of Product is Residential Customer Product as stated by Seller in its invoice for the applicable Showing Month. Buyer’s costs, including the costs for any third-party auditor, incurred in connection with conducting such audit are the sole responsibility of Buyer. Buyer shall make a reasonable effort to conclude its audit within sixty (60) calendar days after receiving all records and data that Buyer deems necessary to complete or resolve the disputed invoice. If the audit does not result in the resolution of the disputed invoice, then either Party may initiate the Dispute Resolution process pursuant to Article 10.

Demonstrated Capacity. (a) Each invoice submitted by Seller to Buyer pursuant to Section 4.2 shall include a statement, in a form substantially similar to Exhibit C, of the amount of the Qualifying Capacity Product Monthly Quantity for each type of Product for such Showing Month that Seller was capable of delivering (“Demonstrated Capacity”), utilizing the results from including one of the following methodsfollowing, as provided below (subject to the additional restrictions set forth in Section 1.6(b)):below: (i) The results of a DC Dispatch of the applicable PDR or RDRR in the DRAM Resource during such Showing Month. The Demonstrated Capacity for System and Local Capacity will equal maximum hourly load reduction of such DC Dispatch as calculated using the Capacity Baseline; provided that, for the Showing Month of August, the Demonstrated Capacity for System and Local Capacity will equal the average hourly load reduction of such DC Dispatch as calculated using the Capacity Baseline. The Demonstrated Capacity for Flexible Capacity will equal the average hourly load reduction of such DC Dispatch as calculated using the Capacity Baseline. Demonstrated Capacity based on a DC Dispatch must align with the Clock Hours on which the applicable CAISO dispatch instructions are based; provided that, for any Real-Time Market award for which the CAISO dispatch instructions do not start or end on a Clock Hour, Demonstrated Capacity shall align with the same interval associated with the applicable CAISO dispatch instructions. If the CAISO issues a dispatch instruction for less than one hundred percent (100%) of the Qualifying Capacity of the applicable PDR in the DRAM Resource (a “Partial DC Dispatch”), then Seller may elect to submit the results of such Partial DC Dispatch during such Showing Month for its Demonstrated Capacity showing. Upon such election, the load reduction resulting from such Partial DC Dispatch shall be compared to the Qualifying Capacity of the entire PDR for purposes of deriving the DC-QC Ratio of the DRAM Resource in accordance with Section 4.1. (ii) The results of a DC Test in the event that (A) there is no DC Dispatch of the PDR in the DRAM Resource for one hundred percent (100%) of the Qualifying Capacity of the applicable Showing Month, and (B) Seller does not submit provided that the results PDR or RDRR provided load reduction during all of a Partial DC the hours referenced in the Dispatch during Instruction corresponding to the Showing Month as contemplated under 1.6(a)(i) aboveapplicable MOO hours. The Demonstrated Capacity for System and Local Capacity will equal the maximum hourly load reduction during any hour of such DC Test Dispatch as calculated using the Capacity Baseline; provided that, for the Showing Month of August Baseline and the Demonstrated Capacity for System and Local Flexible Capacity will equal the average hourly load reduction calculated using the Capacity Baseline. (ii) In the event that there is no Full Dispatch of the PDR or RDRR in the DRAM Resource during any two (2the Showing Month under 1.6(a)(i) consecutive hours above the results of a capacity test conducted by the Seller’s SC during the applicable Showing Month, if and as required under Section 3.3(b) below. The Demonstrated Capacity for System or Local Capacity with respect to such PDR or RDRR will equal the maximum hourly load reduction during such test as calculated using the Capacity Baseline. The Demonstrated Capacity for Flexible Capacity with respect to such PDR will equal the average hourly load reduction during any hour of such DC Test test as calculated using the Capacity Baseline; provided that, for the Showing Month of August the Demonstrated Capacity for Flexible Capacity will equal the average hourly load reduction during any two (2) consecutive hours as calculated using the Capacity Baseline.or (iii) In the event that (A) there is no DC Full Dispatch of the applicable PDR or RDRR in the DRAM Resource during the Showing Month for one hundred percent (100%) of the Qualifying Capacity of the applicable Showing Month, (B) Seller does not submit the results of a Partial DC Dispatch as contemplated under 1.6(a)(i) above, and (C) there is no DC Test or test of the applicable PDR or RDRR in the DRAM Resource during the Showing Month as contemplated under 1.6(a)(ii) above, the Demonstrated Capacity will equal the average amount of capacity for such the applicable PDR or RDRR in the DRAM Resource that the Seller bid into the applicable CAISO Markets solely during the Availability Assessment Hours hours of the Showing Month in compliance with the CAISO Must-Offer ObligationMOO. (b) Seller’s use of the methods described in Sections 1.6(a)(i)-(iii) is subject to the following additional restrictions: (i) Demonstrated Capacity for each PDR in the DRAM Resource must be calculated under Section 1.6(a)(i) or 1.6(a)(ii) for the August Showing Month of each year and for at least fifty percent (50%) of all contracted Showing Months during the Delivery Period (rounded downward if the Delivery Period is an odd number of Showing Months). For example, if the Delivery Period consists of seven (7) Showing Months, then a DC Test or DC Dispatch shall be required for at least three (3) of such Showing Months, including the Showing Month of August. (ii) Demonstrated Capacity for any PDR in the DRAM Resource shall not be calculated under Section 1.6(a)(iii) for more than five (5) consecutive Showing Months during the Delivery Period (prorated, if the Delivery Period is less than twelve (12) Showing Months, to a number equal to half of the Showing Months in the Delivery Period minus one: e.g., two consecutive Showing Months for a six-month Delivery Period). (iii) Demonstrated Capacity for each PDR in the DRAM Resource shall be calculated under Section 1.6(a)(i) or 1.6(a)(ii) for any Showing Month for which a QC De- Rate Notice was issued without a corresponding agreed reduction in Supply Plan quantities, as further provided in Section 3.1(b). (c) The same Capacity Baseline must be used (i) to estimate Qualifying Capacity for Seller’s month-ahead submissions pursuant to Section 3.1(a) for a Showing Month; (ii) to calculate Demonstrated Capacity for the applicable Showing Month; and (iii) for energy settlement at the CAISO for the applicable Showing Month. (d) Solely for purposes of establishing the Demonstrated Capacity pursuant to Section 1.6(a), Seller shall use data available through Buyer’s Customer Data Access Systems that has been designated by Buyer as final Revenue Quality Meter Data and such data shall be considered final by the Parties as of the date Seller submits its invoice for the applicable Showing Month to Buyer. (e) If Seller has not received all Revenue Quality Meter Data for any Resource ID within fifteen (15) calendar days after the end of any Showing Month, Seller shall provide Notice to Buyer of the Resource IDs (and customer service accounts with missing Revenue Quality Meter Data within each such Resource ID), and the dispatch days and hours during such Showing Month, for which Revenue Quality Meter Data has not been received. Seller and Buyer shall comply with the communication protocols set forth in Exhibit D with respect to data issues. (fc) If the DRAM Resource is composed of more than one PDRPDR or RDRR, then: (i) then Seller shall may establish the portion of the Demonstrated Capacity for a specific type of Product associated with each such PDR or RDRR by using the methods described based on the descriptions in Sections 1.6(a)(i) through (iii1.6(a)(i)-(iii), in which case the Demonstrated Capacity for a specific type of Product will equal the sum of the individual PDRs’ Demonstrated CapacitiesPDR or RDRRs demonstrated capacities. (iid) The Showing Months in which DC Dispatches If any respective PDR or DC Tests are conducted may be different for each such PDR except for the Showing Month of August, in which a DC Dispatch or DC Test is required for every PDR RDRR in the DRAM Resource pursuant is a Joint Resource, Seller’s invoice shall indicate (x) the amount of the capacity of such Joint Resource used to Section 1.6(b)(i)show Demonstrated Capacity for a specific type of Product for such month and (y) the total capacity of such Joint Resource during such month. (iii) In the event that multiple Resource IDs are dispatched concurrently in a Showing Month, Seller may aggregate the performance of the concurrently dispatched Resource IDs for the purpose of Demonstrated Capacity invoicing and compare the sum of such aggregated performance against the sum of the Qualifying Capacity of those Resource IDs as listed on the applicable Supply Plan. For Local Capacity products, the aggregation of concurrently dispatched Resource IDs shall be limited to resources within the same SubLAP. (g) With respect to any DRAM Resource Customer service account that was moved in a Showing Month pursuant to Section 3.4(d), Seller shall include the performance of such DRAM Resource Customer service account only in one PDR for purposes of the calculation of Demonstrated Capacity for such Showing Month. (he) If the type of Product Seller delivers under this Agreement is a Residential Customer Product, Seller’s invoice shall indicate the number of Residential Customer SAID agreements and the number of Small Commercial SAID accounts in each PDR or RDRR for such type of Product. (if) In addition to the requirements in Section 1.6(a), if Seller is electing Demonstrated Capacity for Local Capacity, then, as part of Seller’s Demonstrated Capacity for Local Capacity, Seller’s invoice shall indicate the number of SAID agreements in the applicable LCA that are associated with the Local Capacity as indicated in Table 1.1(b) and Exhibit C. (g) Following Buyer’s receipt of Seller’s invoice and Notice of Demonstrated Capacity, Buyer may, upon Notice to Seller, require Seller to provide documentation from Seller or Seller’s SC that establishes to Buyer’s reasonable satisfaction the Demonstrated Capacity of each Product type from a PDR, RDRR or Joint Resource as stated by Seller in its invoice for the applicable Showing Month. In the event that Seller does not provide such documentation within ten (10) Business Days from Buyer’s Notice or such documentation is not reasonably satisfactory to Buyer, then Buyer may require an audit of Seller or Seller’s SC records upon Notice (“Audit Notice”). With respect to an Audit Notice, Seller shall cause its SC to allow Buyer or its designated independent third-party auditor to have access to the records and data necessary to conduct such audit within five (5) Business Days of Seller’s receipt of an Audit Notice; provided, such audit will be limited solely to verification of the data upon which Seller based its claim of the amount of the Demonstrated Capacity. If the type of Product designated in Section 1.1(b) is a Residential Customer Product, then, in addition to the documentation specified above, Buyer may, in its Audit Notice, require Seller or Seller’s SC to provide additional documentation that establishes to Buyer’s reasonable satisfaction that the type of Product is Residential Customer Product as stated by Seller in its invoice for the applicable Showing Month. Buyer’s costs, including the costs for any third-party auditor, incurred in connection with the conducting such audit are the sole responsibility of Buyer.

Demonstrated Capacity. (a) Each invoice submitted by Seller to Buyer pursuant to Section 4.2 shall include a statement, in a form substantially similar to Exhibit C, of the amount of the Qualifying Capacity Product Monthly Quantity for each type of Product for such Showing Month that Seller was capable of delivering (“Demonstrated Capacity”), utilizing the results from including one of the following methodsfollowing, as provided below (subject to the additional restrictions set forth in Section 1.6(b)):below: (i) The results of a DC Dispatch of the applicable PDR or RDRR in the DRAM Resource during such Showing Month. The Demonstrated Capacity for System and Local Capacity will equal maximum hourly load reduction of such DC Dispatch as calculated using the Capacity Baseline; provided that, for the Showing Month of August, the Demonstrated Capacity for System and Local Capacity will equal the average hourly load reduction of such DC Dispatch as calculated using the Capacity Baseline. The Demonstrated Capacity for Flexible Capacity will equal the average hourly load reduction of such DC Dispatch as calculated using the Capacity Baseline. Demonstrated Capacity based on a DC Dispatch must align with the Clock Hours on which the applicable CAISO dispatch instructions are based; provided that, for any Real-Time Market award for which the CAISO dispatch instructions do not start or end on a Clock Hour, Demonstrated Capacity shall align with the same interval associated with the applicable CAISO dispatch instructions. If the CAISO issues a dispatch instruction for less than one hundred percent (100%) of the Qualifying Capacity of the applicable PDR in the DRAM Resource (a “Partial DC Dispatch”), then Seller may elect to submit the results of such Partial DC Dispatch during such Showing Month for its Demonstrated Capacity showing. Upon such election, the load reduction resulting from such Partial DC Dispatch shall be compared to the Qualifying Capacity of the entire PDR for purposes of deriving the DC-QC Ratio of the DRAM Resource in accordance with Section 4.1. (ii) The results of a DC Test in the event that (A) there is no DC Dispatch of the PDR in the DRAM Resource for one hundred percent (100%) of the Qualifying Capacity of the applicable Showing Month, and (B) Seller does not submit provided that the results PDR or RDRR provided load reduction during all of a Partial DC the hours referenced in the Dispatch during Instruction corresponding to the Showing Month as contemplated under 1.6(a)(i) aboveapplicable MOO hours. The Demonstrated Capacity for System and Local Capacity will equal the maximum hourly load reduction during any hour of such DC Test Dispatch as calculated using the Capacity Baseline; provided that, for the Showing Month of August Baseline and the Demonstrated Capacity for System and Local Flexible Capacity will equal the average hourly load reduction calculated using the Capacity Baseline. (ii) In the event that there is no Full Dispatch of the PDR or RDRR in the DRAM Resource during any two (2the Showing Month under 1.6(a)(i) consecutive hours above the results of a capacity test conducted by the Seller’s SC during the applicable Showing Month, if and as required under Section 3.3(b) below. The Demonstrated Capacity for System or Local Capacity with respect to such PDR or RDRR will equal the maximum hourly load reduction during such test as calculated using the Capacity Baseline. The Demonstrated Capacity for Flexible Capacity with respect to such PDR will equal the average hourly load reduction during any hour of such DC Test test as calculated using the Capacity Baseline; provided that, for the Showing Month of August the Demonstrated Capacity for Flexible Capacity will equal the average hourly load reduction during any two (2) consecutive hours as calculated using the Capacity Baseline.or (iii) In the event that (A) there is no DC Full Dispatch of the applicable PDR or RDRR in the DRAM Resource during the Showing Month for one hundred percent (100%) of the Qualifying Capacity of the applicable Showing Month, (B) Seller does not submit the results of a Partial DC Dispatch as contemplated under 1.6(a)(i) above, and (C) there is no DC Test or test of the applicable PDR or RDRR in the DRAM Resource during the Showing Month as contemplated under 1.6(a)(ii) above, the Demonstrated Capacity will equal the average amount of capacity for such the applicable PDR or RDRR in the DRAM Resource that the Seller bid into the applicable CAISO Markets solely during the Availability Assessment Hours hours of the Showing Month in compliance with the CAISO Must-Offer ObligationMOO. (b) Seller’s use of the methods described in Sections 1.6(a)(i)-(iii) is subject to the following additional restrictions: (i) Demonstrated Capacity for each PDR in the DRAM Resource must be calculated under Section 1.6(a)(i) or 1.6(a)(ii) for the August Showing Month of each year and for at least fifty percent (50%) of all contracted Showing Months during the Delivery Period (rounded downward if the Delivery Period is an odd number of Showing Months). For example, if the Delivery Period consists of seven (7) Showing Months, then a DC Test or DC Dispatch shall be required for at least three (3) of such Showing Months, including the Showing Month of August. (ii) Demonstrated Capacity for any PDR in the DRAM Resource shall not be calculated under Section 1.6(a)(iii) for more than five (5) consecutive Showing Months during the Delivery Period (prorated, if the Delivery Period is less than twelve (12) Showing Months, to a number equal to half of the Showing Months in the Delivery Period minus one: e.g., two consecutive Showing Months for a six-month Delivery Period). (iii) Demonstrated Capacity for each PDR in the DRAM Resource shall be calculated under Section 1.6(a)(i) or 1.6(a)(ii) for any Showing Month for which a QC De- Rate Notice was issued without a corresponding agreed reduction in Supply Plan quantities, as further provided in Section 3.1(b). (c) The same Capacity Baseline must be used (i) to estimate Qualifying Capacity for Seller’s month-ahead submissions pursuant to Section 3.1(a) for a Showing Month; (ii) to calculate Demonstrated Capacity for the applicable Showing Month; and (iii) for energy settlement at the CAISO for the applicable Showing Month. (d) Solely for purposes of establishing the Demonstrated Capacity pursuant to Section 1.6(a), Seller shall use data available through Buyer’s Customer Data Access Systems that has been designated by Buyer as final Revenue Quality Meter Data and such data shall be considered final by the Parties as of the date Seller submits its invoice for the applicable Showing Month to Buyer. (e) If Seller has not received all Revenue Quality Meter Data for any Resource ID within fifteen (15) calendar days after the end of any Showing Month, Seller shall provide Notice to Buyer of the Resource IDs (and customer service accounts with missing Revenue Quality Meter Data within each such Resource ID), and the dispatch days and hours during such Showing Month, for which Revenue Quality Meter Data has not been received. Seller and Buyer shall comply with the communication protocols set forth in Exhibit D with respect to data issues. (fc) If the DRAM Resource is composed comprised of more than one PDRPDR or RDRR, then: (i) then Seller shall may establish the portion of the Demonstrated Capacity for a specific type of Product associated with each such PDR or RDRR by using the methods described based on the descriptions in Sections 1.6(a)(i) through (iii1.6(a)(i)-(iii), in which case the Demonstrated Capacity for a specific type of Product will equal the sum of the individual PDRs’ Demonstrated CapacitiesPDR or RDRRs demonstrated capacities. (iid) The Showing Months in which DC Dispatches If any respective PDR or DC Tests are conducted may be different for each such PDR except for the Showing Month of August, in which a DC Dispatch or DC Test is required for every PDR RDRR in the DRAM Resource pursuant is a Joint Resource, Seller’s invoice shall indicate (x) the amount of the capacity of such Joint Resource used to Section 1.6(b)(i)show Demonstrated Capacity for a specific type of Product for such month and (y) the total capacity of such Joint Resource during such month. (iii) In the event that multiple Resource IDs are dispatched concurrently in a Showing Month, Seller may aggregate the performance of the concurrently dispatched Resource IDs for the purpose of Demonstrated Capacity invoicing and compare the sum of such aggregated performance against the sum of the Qualifying Capacity of those Resource IDs as listed on the applicable Supply Plan. For Local Capacity products, the aggregation of concurrently dispatched Resource IDs shall be limited to resources within the same SubLAP. (g) With respect to any DRAM Resource Customer service account that was moved in a Showing Month pursuant to Section 3.4(d), Seller shall include the performance of such DRAM Resource Customer service account only in one PDR for purposes of the calculation of Demonstrated Capacity for such Showing Month. (he) If the type of Product Seller delivers under this Agreement is a Residential Customer Product, Seller’s invoice shall indicate the number of Residential Customer SAID agreements and the number of Small Commercial SAID accounts in each PDR or RDRR for such type of Product. (if) In addition to the requirements in Section 1.6(a), if Seller is electing Demonstrated Capacity for Local Capacity, then, as part of Seller’s Demonstrated Capacity for Local Capacity, Seller’s invoice shall indicate the number of SAID agreements in the applicable LCA that are associated with the Local Capacity as indicated in Table 1.1(b) and Exhibit C. (g) Following Buyer’s receipt of Seller’s invoice and Notice of Demonstrated Capacity, Buyer may, upon Notice to Seller, require Seller to provide documentation from Seller or Seller’s SC that establishes to Buyer’s reasonable satisfaction the Demonstrated Capacity of each Product type from a PDR, RDRR or Joint Resource as stated by Seller in its invoice for the applicable Showing Month. In the event that Seller does not provide such documentation within ten (10) Business Days from Buyer’s Notice or such documentation is not reasonably satisfactory to Buyer, then Buyer may require an audit of Seller or Seller’s SC records upon Notice (“Audit Notice”). With respect to an Audit Notice, Seller shall cause its SC to allow Buyer or its designated independent third-party auditor to have access to the records and data necessary to conduct such audit within five (5) Business Days of Seller’s receipt of an Audit Notice; provided, such audit will be limited solely to verification of the data upon which Seller based its claim of the amount of the Demonstrated Capacity. If the type of Product designated in Section 1.1(b) is a Residential Customer Product, then, in addition to the documentation specified above, Buyer may, in its Audit Notice, require Seller or Seller’s SC to provide additional documentation that establishes to Buyer’s reasonable satisfaction that the type of Product is Residential Customer Product as stated by Seller in its invoice for the applicable Showing Month. Buyer’s costs, including the costs for any third-party auditor, incurred in connection with the conducting such audit are the sole responsibility of Buyer.

Demonstrated Capacity. ‌ (a) Each invoice submitted by Seller to Buyer pursuant to Section 4.2 shall include a statement, in a form substantially similar to Exhibit C, of the amount of the Qualifying Capacity for each type of Product Monthly Quantity for such Showing Month that Seller was capable of delivering (“Demonstrated Capacity”), utilizing the results from one of the following methodsincluding, as provided below (subject to the additional restrictions set forth at Seller’s election in Section 1.6(b)):its sole discretion either: (i) The results of a DC capacity test conducted by the Seller’s SC during the applicable Showing Month. Such test shall consist of at least two (2) continuous hours of load reduction by a PDR in the DRAM Resource. The Demonstrated Capacity with respect to such PDR will equal the maximum hourly load reduction during such test as calculated using the PDR Capacity Baseline; (ii) The average amount of capacity Seller bid a PDR in the DRAM Resource into the CAISO Day-Ahead Market solely during the hours of the Showing Month in compliance with the MOO; or (iii) The results of a Dispatch of the applicable a PDR in the DRAM Resource during such the Showing Month, provided that the PDR provided load reduction during all of the hours referenced in the Dispatch Instruction corresponding to the MOO hours from the Day-Ahead Schedule. The Demonstrated Capacity for System and Local Capacity will equal maximum hourly load reduction of such DC Dispatch as calculated using the Capacity Baseline; provided that, for the Showing Month of August, the Demonstrated Capacity for System and Local Capacity will equal the average hourly load reduction of such DC Dispatch as calculated using the Capacity Baseline. The Demonstrated Capacity for Flexible Capacity will equal the average hourly load reduction of such DC Dispatch as calculated using the Capacity Baseline. Demonstrated Capacity based on a DC Dispatch must align with the Clock Hours on which the applicable CAISO dispatch instructions are based; provided that, for any Real-Time Market award for which the CAISO dispatch instructions do not start or end on a Clock Hour, Demonstrated Capacity shall align with the same interval associated with the applicable CAISO dispatch instructions. If the CAISO issues a dispatch instruction for less than one hundred percent (100%) of the Qualifying Capacity of the applicable PDR in the DRAM Resource (a “Partial DC Dispatch”), then Seller may elect to submit the results of such Partial DC Dispatch during such Showing Month for its Demonstrated Capacity showing. Upon such election, the load reduction resulting from such Partial DC Dispatch shall be compared to the Qualifying Capacity of the entire PDR for purposes of deriving the DC-QC Ratio of the DRAM Resource in accordance with Section 4.1. (ii) The results of a DC Test in the event that (A) there is no DC Dispatch of the PDR in the DRAM Resource for one hundred percent (100%) of the Qualifying Capacity of the applicable Showing Month, and (B) Seller does not submit the results of a Partial DC Dispatch during the Showing Month as contemplated under 1.6(a)(i) above. The Demonstrated Capacity for System and Local Capacity will equal the maximum hourly load reduction during any hour of such DC Test Dispatch as calculated using the Capacity Baseline; provided that, for the Showing Month of August the Demonstrated Capacity for System and Local Capacity will equal the average hourly load reduction during any two (2) consecutive hours as calculated using the Capacity Baseline. The Demonstrated Capacity for Flexible Capacity will equal the average hourly load reduction during any hour of such DC Test as calculated using the Capacity Baseline; provided that, for the Showing Month of August the Demonstrated Capacity for Flexible Capacity will equal the average hourly load reduction during any two (2) consecutive hours as calculated using the PDR Capacity Baseline. (iii) In the event that (A) there is no DC Dispatch of the PDR in the DRAM Resource during the Showing Month for one hundred percent (100%) of the Qualifying Capacity of the applicable Showing Month, (B) Seller does not submit the results of a Partial DC Dispatch as contemplated under 1.6(a)(i) above, and (C) there is no DC Test of the PDR in the DRAM Resource during the Showing Month as contemplated under 1.6(a)(ii) above, the Demonstrated Capacity will equal the average amount of capacity for such PDR in the DRAM Resource that the Seller bid into the applicable CAISO Markets solely during the Availability Assessment Hours of the Showing Month in compliance with the CAISO Must-Offer Obligation. (b) Seller’s use of the methods described in Sections 1.6(a)(i)-(iii) is subject to the following additional restrictions: (i) Demonstrated Capacity for each PDR in the DRAM Resource must be calculated under Section 1.6(a)(i) or 1.6(a)(ii) for the August Showing Month of each year and for at least fifty percent (50%) of all contracted Showing Months during the Delivery Period (rounded downward if the Delivery Period is an odd number of Showing Months). For example, if the Delivery Period consists of seven (7) Showing Months, then a DC Test or DC Dispatch shall be required for at least three (3) of such Showing Months, including the Showing Month of August. (ii) Demonstrated Capacity for any PDR in the DRAM Resource shall not be calculated under Section 1.6(a)(iii) for more than five (5) consecutive Showing Months during the Delivery Period (prorated, if the Delivery Period is less than twelve (12) Showing Months, to a number equal to half of the Showing Months in the Delivery Period minus one: e.g., two consecutive Showing Months for a six-month Delivery Period). (iii) Demonstrated Capacity for each PDR in the DRAM Resource shall be calculated under Section 1.6(a)(i) or 1.6(a)(ii) for any Showing Month for which a QC De- Rate Notice was issued without a corresponding agreed reduction in Supply Plan quantities, as further provided in Section 3.1(b). (c) The same Capacity Baseline must be used (i) to estimate Qualifying Capacity for Seller’s month-ahead submissions pursuant to Section 3.1(a) for a Showing Month; (ii) to calculate Demonstrated Capacity for the applicable Showing Month; and (iii) for energy settlement at the CAISO for the applicable Showing Month. (d) Solely for purposes of establishing the Demonstrated Capacity pursuant to this Section 1.6(a), Seller shall use data available through Buyer’s Customer Data Access Systems that has been designated by Buyer as final Revenue Quality Meter Data and such data shall be considered final by the Parties as of the date Seller submits its invoice for the applicable Showing Month to Buyer. (e) If Seller has not received all Revenue Quality Meter Data for any Resource ID within fifteen (15) calendar days after the end of any Showing Month, Seller shall provide Notice to Buyer of the Resource IDs (and customer service accounts with missing Revenue Quality Meter Data within each such Resource ID), and the dispatch days and hours during such Showing Month, for which Revenue Quality Meter Data has not been received. Seller and Buyer shall comply with the communication protocols set forth in Exhibit D with respect to data issues. (fc) If the DRAM Resource is composed comprised of more than one PDR, then: (i) then Seller shall may establish the portion of the Demonstrated Capacity for associated with each such PDR by using any of the methods described in Sections 1.6(a)(i) through (iii1.6(a)(i)-(iii), in which case the Demonstrated Capacity will equal the sum of the individual PDRs’ Demonstrated CapacitiesPDR demonstrated capacities. (iid) The Showing Months in which DC Dispatches or DC Tests are conducted may be different for each such PDR except for the Showing Month of August, in which a DC Dispatch or DC Test is required for every If any PDR in the DRAM Resource pursuant to Section 1.6(b)(i). is a Joint PDR, Seller’s invoice shall indicate (iiix) In the event that multiple Resource IDs are dispatched concurrently in a Showing Month, Seller may aggregate the performance amount of the concurrently dispatched Resource IDs for the purpose of Demonstrated Capacity invoicing and compare the sum capacity of such aggregated performance against the sum of the Qualifying Capacity of those Resource IDs as listed on the applicable Supply Plan. For Local Capacity products, the aggregation of concurrently dispatched Resource IDs shall be limited Joint PDR used to resources within the same SubLAP. (g) With respect to any DRAM Resource Customer service account that was moved in a Showing Month pursuant to Section 3.4(d), Seller shall include the performance of such DRAM Resource Customer service account only in one PDR for purposes of the calculation of show Demonstrated Capacity for such Showing Monthmonth and (y) the total capacity of such Joint PDR during such month. (he) If the type of Product Seller delivers under this Agreement is a Residential Customer Product, Seller’s invoice Seller shall indicate confirm in writing to Buyer the number of Residential Customer SAID agreements accounts and the number of Small Commercial SAID accounts in each PDR for such type of ProductPDR. (if) Following Xxxxx’s receipt of Seller’s invoice and Notice of Demonstrated Capacity, Buyer may, upon Notice to Seller, require Seller to provide documentation from Seller or Seller’s SC that establishes to Buyer’s reasonable satisfaction the Demonstrated Capacity of a PDR or Joint PDR as stated by Seller in its invoice for the applicable Showing Month. In the event that Seller does not provide such documentation within ten (10) Business Days from Buyer’s Notice or such documentation is not reasonably satisfactory to Buyer, then Buyer may require an audit of Seller or Seller’s SC records upon Notice (“Audit Notice”). With respect to an Audit Notice, Seller shall cause its SC to allow Buyer or its designated independent third-party auditor to have access to the records and data necessary to conduct such audit within five (5) Business Days of Seller’s receipt of an Audit Notice; provided, such audit will be limited solely to verification of the data upon which Seller based its claim of the amount of the Demonstrated Capacity. If the Product designated in Section 1.1(b) is a Residential Customer Product, then, in addition to the requirements documentation specified above, Buyer may, in Section 1.6(a)its Audit Notice, if require Seller is electing Demonstrated Capacity for Local Capacity, then, as part of or Seller’s Demonstrated Capacity SC to provide additional documentation that establishes to Buyer’s reasonable satisfaction that the Product is Residential Customer Product as stated by Seller in its invoice for Local Capacity, Seller’s invoice shall indicate the number of SAID agreements in the applicable LCA that are associated Showing Month. Buyer’s costs, including the costs for any third-party auditor, incurred in connection with the Local Capacity as indicated in Table 1.1(b) and Exhibit C.conducting such audit are the sole responsibility of Buyer.

Demonstrated Capacity. ‌ (a) Each invoice submitted by Seller to Buyer pursuant to Section 4.2 shall include a statement, in a form substantially similar to Exhibit C, of the amount of the Qualifying Capacity for each type of Product for such Showing Month that Seller was capable of delivering (“Demonstrated Capacity”), utilizing the results from one of the following methods, as provided below (subject to the additional restrictions set forth in Section 1.6(b)): (i) The results of a DC Dispatch of the applicable PDR in the DRAM Resource during such Showing Month. The Demonstrated Capacity for System and Local Capacity will equal the maximum hourly load reduction of such DC Dispatch as calculated using the Capacity Baseline; provided that, for the Showing Month of August, the Demonstrated Capacity for System and Local Capacity will equal the average hourly load reduction of such DC Dispatch as calculated using the Capacity Baseline. The Demonstrated Capacity for Flexible Capacity will equal the average hourly load reduction of such DC Dispatch as calculated using the Capacity Baseline. Demonstrated Capacity based on a DC Dispatch must align with the Clock Hours on which the applicable CAISO dispatch instructions are based; provided that, for any Real-Time Market award for which the CAISO dispatch instructions do not start or end on a Clock Hour, Demonstrated Capacity shall align with the same interval associated with the applicable CAISO dispatch instructions. If the CAISO issues a dispatch instruction for less than one hundred percent (100%) of the Qualifying Capacity of the applicable PDR in the DRAM Resource (a “Partial DC Dispatch”), then Seller may elect to submit the results of such Partial DC Dispatch during such Showing Month for its Demonstrated Capacity showing. Upon such election, the load reduction resulting from such Partial DC Dispatch shall be compared to the Qualifying Capacity of the entire PDR for purposes of deriving the DC-QC Ratio of the DRAM Resource in accordance with Section 4.1. (ii) The results of a DC Test in the event that (A) there is no DC Dispatch of the PDR in the DRAM Resource for one hundred percent (100%) of the Qualifying Capacity of the applicable Showing Month, and (B) Seller does not submit the results of a Partial DC Dispatch during the Showing Month as contemplated under 1.6(a)(i) above. The Demonstrated Capacity for System and Local Capacity will equal the maximum hourly load reduction during any hour of such DC Test as calculated using the Capacity Baseline; provided that, for the Showing Month of August the Demonstrated Capacity for System and Local Capacity will equal the average hourly load reduction during any two (2) consecutive hours as calculated using the Capacity Baseline. The Demonstrated Capacity for Flexible Capacity will equal the average hourly load reduction during any hour of such DC Test as calculated using the Capacity Baseline; provided that, for the Showing Month of August the Demonstrated Capacity for Flexible Capacity will equal the average hourly load reduction during any two (2) consecutive hours as calculated using the Capacity Baseline. (iii) In the event that (A) there is no DC Dispatch of the PDR in the DRAM Resource during the Showing Month for one hundred percent (100%) of the Qualifying Capacity of the applicable Showing Month, (B) Seller does not submit the results of a Partial DC Dispatch as contemplated under 1.6(a)(i) above, and (C) there is no DC Test of the PDR in the DRAM Resource during the Showing Month as contemplated under 1.6(a)(ii) above, the Demonstrated Capacity will equal the average amount of capacity for such PDR in the DRAM Resource that the Seller bid into the applicable CAISO Markets solely during the Availability Assessment Hours of the Showing Month in compliance with the CAISO Must-Offer ObligationMOO. (b) Seller’s use of the methods described in Sections 1.6(a)(i)-(iii) is subject to the following additional restrictions: (i) Demonstrated Capacity for each PDR in the DRAM Resource must be calculated under Section 1.6(a)(i) or 1.6(a)(ii) for the August Showing Month of each year and for at least fifty percent (50%) of all contracted Showing Months during the Delivery Period (rounded downward if the Delivery Period is an odd number of Showing Months). For example, if the Delivery Period consists of seven (7) Showing Months, then a DC Test or DC Dispatch shall be required for at least three (3) of such Showing Months, including the Showing Month of August. (ii) Demonstrated Capacity for any PDR in the DRAM Resource shall not be calculated under Section 1.6(a)(iii) for more than five (5) consecutive Showing Months during the Delivery Period (prorated, if the Delivery Period is less than twelve (12) Showing Months, to a number equal to half of the Showing Months in the Delivery Period minus one: e.g., two consecutive Showing Months for a six-month Delivery Period). (iii) Demonstrated Capacity for each PDR in the DRAM Resource shall be calculated under Section 1.6(a)(i) or 1.6(a)(ii) for any Showing Month for which a QC De- Rate Notice was issued without a corresponding agreed reduction in Supply Plan quantities, as further provided in Section 3.1(b). (c) The same Capacity Baseline must be used (i) to estimate Qualifying Capacity for Seller’s month-ahead submissions pursuant to Section 3.1(a) for a Showing Month; (ii) to calculate Demonstrated Capacity for the applicable Showing Month; and (iii) for energy settlement at the CAISO for the applicable Showing Month. (d) Solely for purposes of establishing the Demonstrated Capacity pursuant to Section 1.6(a), Seller shall use data available through Buyer’s Customer Data Access Systems that has been designated by Buyer as final Revenue Quality Meter Data and such data shall be considered final by the Parties as of the date Seller submits its invoice for the applicable Showing Month to Buyer. (e) If Seller has not received all Revenue Quality Meter Data for any Resource ID within fifteen (15) calendar days after the end of any Showing Month, Seller shall provide Notice to Buyer of the Resource IDs (and customer service accounts with missing Revenue Quality Meter Data within each such Resource ID), and the dispatch days and hours during such Showing Month, for which Revenue Quality Meter Data has not been received. Seller and Buyer shall comply with the communication protocols set forth in Exhibit D with respect to data issues. (f) If the DRAM Resource is composed of more than one PDR, then: (i) Seller shall may establish the portion of the Demonstrated Capacity for each such PDR by using the methods described in Sections 1.6(a)(i) through (iii), in which case the Demonstrated Capacity will equal the sum of the individual PDRs’ Demonstrated Capacities. (ii) The Showing Months in which DC Dispatches or DC Tests are conducted may be different for each such PDR except for the Showing Month of August, in which a DC Dispatch or DC Test is required for every PDR in the DRAM Resource pursuant to Section 1.6(b)(i). (iii) In the event that multiple Resource IDs are dispatched concurrently in a Showing Month, Seller may aggregate the performance of the concurrently dispatched Resource IDs for the purpose of Demonstrated Capacity invoicing and compare the sum of such aggregated performance against the sum of the Qualifying Capacity of those Resource IDs as listed on the applicable Supply Plan. For Local Capacity products, the aggregation of concurrently dispatched Resource IDs shall be limited to resources within the same SubLAP. (g) With respect to any DRAM Resource Customer service account that was moved in a Showing Month pursuant to Section 3.4(d), Seller shall include the performance of such DRAM Resource Customer service account only in one PDR for purposes of the calculation of Demonstrated Capacity for such Showing Month. (h) If any respective PDR in the DRAM Resource is a Joint Resource, Seller’s invoice shall indicate (i) the amount of the capacity of such Joint Resource used to show Demonstrated Capacity for a specific type of Product for such Showing Month and (ii) the total capacity of such Joint Resource during such Showing Month. (i) If the type of Product Seller delivers under this Agreement is a Residential Customer Product, Seller’s invoice shall indicate the number of Residential Customer SAID agreements and the number of Small Commercial SAID accounts in each PDR for such type of Product. (ij) In addition to the requirements in Section 1.6(a), if Seller is electing Demonstrated Capacity for Local Capacity, then, as part of Seller’s Demonstrated Capacity for Local Capacity, Seller’s invoice shall indicate the number of SAID agreements in the applicable LCA that are associated with the Local Capacity as indicated in Table 1.1(b) and Exhibit C. (k) If Buyer is unable to validate, or disputes, any amount shown in Seller’s invoice and Notice of Demonstrated Capacity, then Buyer shall issue a Notice to that effect to Seller in accordance with Section 1.6(k)(i) below. Pursuant to Section 1.6(k)(ii), Seller shall be required to provide additional documentation from Seller or Seller’s SC in the form or format requested by Buyer that establishes to Buyer’s reasonable satisfaction that the Demonstrated Capacity of each Product type from a PDR or Joint Resource is as stated by Seller in its invoice for the applicable Showing Month. (i) Buyer shall issue such Notice on or before the later of: (A) the twentieth (20th) calendar day of the month and (B) the tenth (10th) calendar day after receipt of Seller’s invoice and Demonstrated Capacity; provided that, if such day is not a Business Day, then on the next Business Day. (ii) No later than ten (10) Business Days after receipt of Buyer’s Notice, Seller shall provide the additional documentation to Buyer. If Seller fails to provide the additional documentation within such ten (10) Business Day deadline, then Buyer shall either (A) pay the subject invoice or (B) initiate an audit of Seller’s or Seller’s SC records by issuing a Notice (“Audit Notice”) to Seller, in each case no later than fifteen (15) Business Days after the expiration of such ten (10) Business Day deadline. (iii) No later than fifteen (15) Business Days after receiving the additional documentation from Seller, Buyer shall either: (A) pay the subject invoice or (B) initiate an audit of Seller or Seller’s SC records by issuing an Audit Notice to Seller if the additional documentation is unsatisfactory to Buyer in its reasonable discretion. (l) With respect to an Audit Notice issued under Section 1.6(k)(ii) or (iii), no later than five

Demonstrated Capacity. (a) Each invoice submitted by Seller to Buyer pursuant to Section 4.2 shall include a statement, in a form substantially similar to Exhibit C, of the amount of the Qualifying Capacity Product Monthly Quantity for each type of Product for such Showing Month that Seller was capable of delivering (“Demonstrated Capacity”), utilizing the results from including one of the following methodsfollowing, as provided below (subject to the additional restrictions set forth in Section 1.6(b)):below: (i) The results of a DC Dispatch of the applicable PDR or RDRR in the DRAM Resource during such Showing Month. The Demonstrated Capacity for System and Local Capacity will equal maximum hourly load reduction of such DC Dispatch as calculated using the Capacity Baseline; provided that, for the Showing Month of August, the Demonstrated Capacity for System and Local Capacity will equal the average hourly load reduction of such DC Dispatch as calculated using the Capacity Baseline. The Demonstrated Capacity for Flexible Capacity will equal the average hourly load reduction of such DC Dispatch as calculated using the Capacity Baseline. Demonstrated Capacity based on a DC Dispatch must align with the Clock Hours on which the applicable CAISO dispatch instructions are based; provided that, for any Real-Time Market award for which the CAISO dispatch instructions do not start or end on a Clock Hour, Demonstrated Capacity shall align with the same interval associated with the applicable CAISO dispatch instructions. If the CAISO issues a dispatch instruction for less than one hundred percent (100%) of the Qualifying Capacity of the applicable PDR in the DRAM Resource (a “Partial DC Dispatch”), then Seller may elect to submit the results of such Partial DC Dispatch during such Showing Month for its Demonstrated Capacity showing. Upon such election, the load reduction resulting from such Partial DC Dispatch shall be compared to the Qualifying Capacity of the entire PDR for purposes of deriving the DC-QC Ratio of the DRAM Resource in accordance with Section 4.1. (ii) The results of a DC Test in the event that (A) there is no DC Dispatch of the PDR in the DRAM Resource for one hundred percent (100%) of the Qualifying Capacity of the applicable Showing Month, and (B) Seller does not submit provided that the results PDR or RDRR provided load reduction during all of a Partial DC the hours referenced in the Dispatch during Instruction corresponding to the Showing Month as contemplated under 1.6(a)(i) aboveapplicable MOO hours. The Demonstrated Capacity for System and Local Capacity will equal the maximum hourly load reduction during any hour of such DC Test Dispatch as calculated using the Capacity Baseline; provided that, for the Showing Month of August Baseline and the Demonstrated Capacity for System and Local Flexible Capacity will equal the average hourly load reduction calculated using the Capacity Baseline. (ii) In the event that there is no Full Dispatch of the PDR or RDRR in the DRAM Resource during any two (2the Showing Month under 1.6(a)(i) consecutive hours above the results of a capacity test conducted by the Seller’s SC during the applicable Showing Month, if and as required under Section 3.3(b) below. The Demonstrated Capacity for System or Local Capacity with respect to such PDR or RDRR will equal the maximum hourly load reduction during such test as calculated using the Capacity Baseline. The Demonstrated Capacity for Flexible Capacity with respect to such PDR will equal the average hourly load reduction during any hour of such DC Test test as calculated using the Capacity Baseline; provided that, for the Showing Month of August the Demonstrated Capacity for Flexible Capacity will equal the average hourly load reduction during any two (2) consecutive hours as calculated using the Capacity Baseline.or (iii) In the event that (A) there is no DC Full Dispatch of the applicable PDR or RDRR in the DRAM Resource during the Showing Month for one hundred percent (100%) of the Qualifying Capacity of the applicable Showing Month, (B) Seller does not submit the results of a Partial DC Dispatch as contemplated under 1.6(a)(i) above, and (C) there is no DC Test or test of the applicable PDR or RDRR in the DRAM Resource during the Showing Month as contemplated under 1.6(a)(ii) above, the Demonstrated Capacity will equal the average amount of capacity for such the applicable PDR or RDRR in the DRAM Resource that the Seller bid into the applicable CAISO Markets solely during the Availability Assessment Hours hours of the Showing Month in compliance with the CAISO Must-Offer ObligationMOO. (b) Seller’s use of the methods described in Sections 1.6(a)(i)-(iii) is subject to the following additional restrictions: (i) Demonstrated Capacity for each PDR in the DRAM Resource must be calculated under Section 1.6(a)(i) or 1.6(a)(ii) for the August Showing Month of each year and for at least fifty percent (50%) of all contracted Showing Months during the Delivery Period (rounded downward if the Delivery Period is an odd number of Showing Months). For example, if the Delivery Period consists of seven (7) Showing Months, then a DC Test or DC Dispatch shall be required for at least three (3) of such Showing Months, including the Showing Month of August. (ii) Demonstrated Capacity for any PDR in the DRAM Resource shall not be calculated under Section 1.6(a)(iii) for more than five (5) consecutive Showing Months during the Delivery Period (prorated, if the Delivery Period is less than twelve (12) Showing Months, to a number equal to half of the Showing Months in the Delivery Period minus one: e.g., two consecutive Showing Months for a six-month Delivery Period). (iii) Demonstrated Capacity for each PDR in the DRAM Resource shall be calculated under Section 1.6(a)(i) or 1.6(a)(ii) for any Showing Month for which a QC De- Rate Notice was issued without a corresponding agreed reduction in Supply Plan quantities, as further provided in Section 3.1(b). (c) The same Capacity Baseline must be used (i) to estimate Qualifying Capacity for Seller’s month-ahead submissions pursuant to Section 3.1(a) for a Showing Month; (ii) to calculate Demonstrated Capacity for the applicable Showing Month; and (iii) for energy settlement at the CAISO for the applicable Showing Month. (d) Solely for purposes of establishing the Demonstrated Capacity pursuant to Section 1.6(a), Seller shall use data available through Buyer’s Customer Data Access Systems that has been designated by Buyer as final Revenue Quality Meter Data and such data shall be considered final by the Parties as of the date Seller submits its invoice for the applicable Showing Month to Buyer. (e) If Seller has not received all Revenue Quality Meter Data for any Resource ID within fifteen (15) calendar days after the end of any Showing Month, Seller shall provide Notice to Buyer of the Resource IDs (and customer service accounts with missing Revenue Quality Meter Data within each such Resource ID), and the dispatch days and hours during such Showing Month, for which Revenue Quality Meter Data has not been received. Seller and Buyer shall comply with the communication protocols set forth in Exhibit D with respect to data issues. (fc) If the DRAM Resource is composed of more than one PDRPDR or RDRR, then: (i) then Seller shall may establish the portion of the Demonstrated Capacity for a specific type of Product associated with each such PDR or RDRR by using the methods described based on the descriptions in Sections 1.6(a)(i) through (iii1.6(a)(i)-(iii), in which case the Demonstrated Capacity for a specific type of Product will equal the sum of the individual PDRs’ Demonstrated CapacitiesPDR or RDRRs demonstrated capacities. (iid) The Showing Months in which DC Dispatches If any respective PDR or DC Tests are conducted may be different for each such PDR except for the Showing Month of August, in which a DC Dispatch or DC Test is required for every PDR RDRR in the DRAM Resource pursuant is a Joint Resource, Seller’s invoice shall indicate (x) the amount of the capacity of such Joint Resource used to Section 1.6(b)(i)show Demonstrated Capacity for a specific type of Product for such month and (y) the total capacity of such Joint Resource during such month. (iii) In the event that multiple Resource IDs are dispatched concurrently in a Showing Month, Seller may aggregate the performance of the concurrently dispatched Resource IDs for the purpose of Demonstrated Capacity invoicing and compare the sum of such aggregated performance against the sum of the Qualifying Capacity of those Resource IDs as listed on the applicable Supply Plan. For Local Capacity products, the aggregation of concurrently dispatched Resource IDs shall be limited to resources within the same SubLAP. (g) With respect to any DRAM Resource Customer service account that was moved in a Showing Month pursuant to Section 3.4(d), Seller shall include the performance of such DRAM Resource Customer service account only in one PDR for purposes of the calculation of Demonstrated Capacity for such Showing Month. (he) If the type of Product Seller delivers under this Agreement is a Residential Customer Product, Seller’s invoice shall indicate the number of Residential Customer SAID agreements and the number of Small Commercial SAID accounts in each PDR or RDRR for such type of Product. (if) In addition to the requirements in Section 1.6(a), if Seller is electing Demonstrated Capacity for Local Capacity, then, as part of Seller’s Demonstrated Capacity for Local Capacity, Seller’s invoice shall indicate the number of SAID agreements in the applicable LCA that are associated with the Local Capacity as indicated in Table 1.1(b) and Exhibit C. (g) Following Buyer’s receipt of Seller’s invoice and Notice of Demonstrated Capacity, Buyer may, upon Notice to Seller, require Seller to provide documentation from Seller or Seller’s SC that establishes to Buyer’s reasonable satisfaction the Demonstrated Capacity of each Product type from a PDR, RDRR or Joint Resource as stated by Seller in its invoice for the applicable Showing Month. In the event that Seller does not provide such documentation within ten

Demonstrated Capacity. (a) Each invoice submitted by Seller to Buyer pursuant to Section 4.2 shall include a statement, in a form substantially similar to Exhibit C, of the amount of the Qualifying Capacity for each type of Product for such Showing Month that Seller was capable of delivering delivered (“Demonstrated Capacity”), utilizing the results from one of the following methods, as provided below (subject to the additional restrictions set forth in Section 1.6(b)):). Any invoice submitted to Buyer that fails to comply with the requirements in this Section 1.6(a), including the utilization of one of the prescribed methods for the calculation of Demonstrated Capacity, shall be deemed null and void in its entirety and Buyer shall not be required to make any payment thereunder. (i) The results of a DC Dispatch of the applicable PDR in the DRAM Resource during such Showing Month. The Demonstrated Capacity for System and Local Capacity will equal maximum hourly load reduction of such DC Dispatch as calculated using the Capacity Baseline; provided that, for the Showing Month of August, the Demonstrated Capacity for System and Local Capacity will equal the average hourly load reduction of such DC Dispatch as calculated using the Capacity Baseline. The Demonstrated Capacity for Flexible Capacity will equal the average hourly load reduction of such DC Dispatch as calculated using the Capacity Baseline. Demonstrated Capacity based on a DC Dispatch must align with the Clock Hours on which the applicable CAISO dispatch instructions are based; provided that, for any Real-Time Market award for which the CAISO dispatch instructions do not start or end on a Clock Hour, Demonstrated Capacity shall align with the same interval associated with the applicable CAISO dispatch instructions. If the CAISO issues a dispatch instruction for less than one hundred percent (100%) of the Qualifying Capacity of the applicable PDR in the DRAM Resource (a “Partial DC Dispatch”), then Seller may elect to submit the results of such Partial DC Dispatch during such Showing Month for its Demonstrated Capacity showing. Upon such election, the load reduction resulting from such Partial DC Dispatch shall be compared to the Qualifying Capacity of the entire PDR for purposes of deriving the DC-QC Ratio of the DRAM Resource in accordance with Section 4.1. (ii) The results of a DC Test in the event that (A) there is no DC Dispatch of the PDR in the DRAM Resource for one hundred percent (100%) of the Qualifying Capacity of the applicable Showing Month, and (B) Seller does not submit the results of a Partial DC Dispatch during the Showing Month as contemplated under 1.6(a)(i) above. The Demonstrated Capacity for System and Local Capacity will equal the maximum hourly load reduction during any hour of such DC Test as calculated using the Capacity Baseline; provided that, for the Showing Month of August the Demonstrated Capacity for System and Local Capacity will equal the average hourly load reduction during any two (2) consecutive hours as calculated using the Capacity Baseline. The Demonstrated Capacity for Flexible Capacity will equal the average hourly load reduction during any four hour of such DC Test as calculated using the Capacity Baseline; provided that, for the Showing Month of August the Demonstrated Capacity for Flexible Capacity will equal the average hourly load reduction during any two (2) consecutive hours as calculated using the Capacity Baseline. (iii) In the event that (A) there is no DC Dispatch of the PDR in the DRAM Resource during the Showing Month for one hundred percent (100%) of the Qualifying Capacity of the applicable Showing Month, (B) Seller does not submit the results of a Partial DC Dispatch as contemplated under 1.6(a)(i) above, and (C) there is no DC Test of the PDR in the DRAM Resource during the Showing Month as contemplated under 1.6(a)(ii) above, the Demonstrated Capacity will equal the average amount of capacity for such PDR in the DRAM Resource that the Seller bid into the applicable CAISO Markets solely during the Availability Assessment Hours of the Showing Month in compliance with the CAISO Must-Offer ObligationMOO. (b) Seller’s use of the methods described in Sections 1.6(a)(i)-(iii) is subject to the following additional restrictions: (i) Demonstrated Capacity for each PDR in the DRAM Resource must be calculated under Section 1.6(a)(i) or 1.6(a)(ii) for the August Showing Month of each year and for at least fifty percent (50%) of all contracted Showing Months during the Delivery Period (rounded downward if the Delivery Period is an odd number of Showing Months). For example, if the Delivery Period consists of seven (7) Showing Months, then a DC Test or DC Dispatch shall be required for at least three (3) of such Showing Months, including the Showing Month of August. (ii) Demonstrated Capacity for any PDR in the DRAM Resource shall not be calculated under Section 1.6(a)(iii) for more than five three (53) consecutive Showing Months during the Delivery Period (prorated, if the Delivery Period is less than twelve (12) Showing Months, to a number equal to half of the Showing Months in the Delivery Period minus one: e.g., two consecutive Showing Months for a six-month Delivery Period). (iii) Demonstrated Capacity for each PDR in the DRAM Resource shall be calculated under Section 1.6(a)(i) or 1.6(a)(ii) for any Showing Month for which a QC De- Rate Notice was issued without a corresponding agreed reduction in Supply Plan quantities, as further provided in Section 3.1(b). (c) The same Capacity Baseline must be used (i) to estimate Qualifying Capacity for Seller’s month-ahead submissions pursuant to Section 3.1(a) for a Showing Month; (ii) to calculate Demonstrated Capacity for the applicable Showing Month; and (iii) for energy settlement at the CAISO for the applicable Showing Month. (d) Solely for purposes of establishing the Demonstrated Capacity pursuant to Section 1.6(a), Seller shall use data available through Buyer’s Customer Data Access Systems that has been designated by Buyer as final Revenue Quality Meter Data and such data shall be considered final by the Parties as of the date Seller submits its invoice for the applicable Showing Month to Buyer. (e) If Seller has not received all Revenue Quality Meter Data for any Resource ID within fifteen (15) calendar days after the end of any Showing Month, Seller shall provide Notice to Buyer of the Resource IDs (and customer service accounts with missing Revenue Quality Meter Data within each such Resource ID), and the dispatch days and hours during such Showing Month, for which Revenue Quality Meter Data has not been received. Seller and Buyer shall comply with the communication protocols set forth in Exhibit D with respect to data issues. (f) If the DRAM Resource is composed of more than one PDR, then: (i) Seller shall may establish the portion of the Demonstrated Capacity for each such PDR by using the methods described in Sections 1.6(a)(i) through (iii), in which case the Demonstrated Capacity will equal the sum of the individual PDRs’ Demonstrated Capacities. (ii) The Showing Months in which DC Dispatches or DC Tests are conducted may be different for each such PDR except for the Showing Month of August, in which a DC Dispatch or DC Test is required for every PDR in the DRAM Resource pursuant to Section 1.6(b)(i). (iii) In the event that multiple Resource IDs are dispatched concurrently in a Showing Month, Seller may aggregate the performance of the concurrently dispatched Resource IDs for the purpose of Demonstrated Capacity invoicing and compare the sum of such aggregated performance against the sum of the Qualifying Capacity of those Resource IDs as listed on the applicable Supply Plan. For Local Capacity products, the aggregation of concurrently dispatched Resource IDs shall be limited to resources within the same SubLAP. (g) With respect to any DRAM Resource Customer service account that was moved in a Showing Month pursuant to Section 3.4(d), Seller shall include the performance of such DRAM Resource Customer service account only in one PDR for purposes of the calculation of Demonstrated Capacity for such Showing Month. (h) If the type of Product Seller delivers under this Agreement is a Residential Customer Product, Seller’s invoice shall indicate the number of Residential Customer SAID agreements and the number of Small Commercial SAID accounts in each PDR for such type of Product. (i) In addition to the requirements in Section 1.6(a), if Seller is electing Demonstrated Capacity for Local Capacity, then, as part of Seller’s Demonstrated Capacity for Local Capacity, Seller’s invoice shall indicate the number of SAID agreements in the applicable LCA that are associated with the Local Capacity as indicated in Table 1.1(b) and Exhibit C. (i) If Buyer is unable to validate, or disputes, any amount shown in Seller’s invoice and Notice of Demonstrated Capacity, then Buyer shall issue a Notice to that effect to Seller in accordance with Section 1.6(k)(i) below. Pursuant to Section 1.6(k)(ii), Seller shall be required to provide additional documentation from Seller or Seller’s SC in the form or format requested by Buyer that establishes to Buyer’s reasonable satisfaction that the Demonstrated Capacity of each Product type from a PDR or Joint Resource is as stated by Seller in its invoice for the applicable Showing Month. (i) Buyer shall issue such Notice no later than twenty (20) Business Days after receipt of Seller’s invoice (ii) No later than twenty (20) Business Days after receipt of Buyer’s Notice, Seller shall provide the additional documentation to Buyer. If Seller fails to provide the additional documentation within such twenty (20) Business Day deadline, then Buyer shall either (A) pay the subject invoice or (B) initiate an audit of Seller’s or Seller’s SC records by issuing a Notice (“Audit Notice”) to Seller, in each case no later than fifteen (15) Business Days after the expiration of such twenty (20) Business Day deadline. (iii) No later than fifteen (15) Business Days after receiving the additional documentation from Seller, Buyer shall either: (A) pay the subject invoice or (B) initiate an audit of Seller or Seller’s SC records by issuing an Audit Notice to Seller if the additional documentation is unsatisfactory to Buyer in its reasonable discretion. (j) With respect to an Audit Notice issued under Section 1.6(k)(ii) or (iii), no later than five (5) Business Days after Seller’s receipt of an Audit Notice, Seller shall allow, or cause its SC to allow, Buyer or its designated independent third-party auditor to have access to the records and data, which must be in the form or format requested by Buyer under Section 1.6(k) above, necessary to fully conduct such audit and that Buyer deems necessary to resolve the disputed invoice.. Buyer’s costs, including the costs for any third-party auditor, incurred in connection with conducting such audit are the sole responsibility of Buyer. Buyer shall make a reasonable effort to conclude its audit within sixty (60) Business Days after receiving all records and data that Buyer deems necessary to complete the audit or resolve the disputed invoice. If the audit does not result in the resolution of the disputed invoice, then either Party may initiate the Dispute Resolution process pursuant to Article 10.

Demonstrated Capacity. (a) Each invoice submitted by Seller to Buyer pursuant to Section 4.2 shall include a statement, in a form substantially similar to Exhibit C, of the amount of the Qualifying Capacity for each type of Product for such Showing Month that Seller was capable of delivering (“Demonstrated Capacity”), utilizing the results from one of the following methods, as provided below (subject to the additional restrictions set forth in Section 1.6(b)): (i) The results of a DC Dispatch of the applicable PDR in the DRAM Resource during such Showing Month. The Demonstrated Capacity for System and Local Capacity will equal the maximum hourly load reduction of such DC Dispatch as calculated using the Capacity Baseline; provided that, for the Showing Month of August, the Demonstrated Capacity for System and Local Capacity will equal the average hourly load reduction of such DC Dispatch as calculated using the Capacity Baseline. The Demonstrated Capacity for Flexible Capacity will equal the average hourly load reduction of such DC Dispatch as calculated using the Capacity Baseline. Demonstrated Capacity based on a DC Dispatch must align with the Clock Hours on which the applicable CAISO dispatch instructions are based; provided that, for any Real-Time Market award for which the CAISO dispatch instructions do not start or end on a Clock Hour, Demonstrated Capacity shall align with the same interval associated with the applicable CAISO dispatch instructions. If the CAISO issues a dispatch instruction for less than one hundred percent (100%) of the Qualifying Capacity of the applicable PDR in the DRAM Resource (a “Partial DC Dispatch”), then Seller may elect to submit the results of such Partial DC Dispatch during such Showing Month for its Demonstrated Capacity showing. Upon such election, the load reduction resulting from such Partial DC Dispatch shall be compared to the Qualifying Capacity of the entire PDR for purposes of deriving the DC-QC Ratio of the DRAM Resource in accordance with Section 4.1. (ii) The results of a DC Test in the event that (A) there is no DC Dispatch of the PDR in the DRAM Resource for one hundred percent (100%) of the Qualifying Capacity of the applicable Showing Month, and (B) Seller does not submit the results of a Partial DC Dispatch during the Showing Month as contemplated under 1.6(a)(i) above. The Demonstrated Capacity for System and Local Capacity will equal the maximum hourly load reduction during any hour of such DC Test as calculated using the Capacity Baseline; provided that, for the Showing Month of August the Demonstrated Capacity for System and Local Capacity will equal the average hourly load reduction during any two (2) consecutive hours as calculated using the Capacity Baseline. The Demonstrated Capacity for Flexible Capacity will equal the average hourly load reduction during any hour of such DC Test as calculated using the Capacity Baseline; provided that, for the Showing Month of August the Demonstrated Capacity for Flexible Capacity will equal the average hourly load reduction during any two (2) consecutive hours as calculated using the Capacity Baseline. (iii) In the event that (A) there is no DC Dispatch of the PDR in the DRAM Resource during the Showing Month for one hundred percent (100%) of the Qualifying Capacity of the applicable Showing Month, (B) Seller does not submit the results of a Partial DC Dispatch as contemplated under 1.6(a)(i) above, and (C) there is no DC Test of the PDR in the DRAM Resource during the Showing Month as contemplated under 1.6(a)(ii) above, the Demonstrated Capacity will equal the average amount of capacity for such PDR in the DRAM Resource that the Seller bid into the applicable CAISO Markets solely during the Availability Assessment Hours of the Showing Month in compliance with the CAISO Must-Offer ObligationMOO. (b) Seller’s use of the methods described in Sections 1.6(a)(i)-(iii) is subject to the following additional restrictions: (i) Demonstrated Capacity for each PDR in the DRAM Resource must be calculated under Section 1.6(a)(i) or 1.6(a)(ii) for the August Showing Month of each year and for at least fifty percent (50%) of all contracted Showing Months during the Delivery Period (rounded downward if the Delivery Period is an odd number of Showing Months). For example, if the Delivery Period consists of seven (7) Showing Months, then a DC Test or DC Dispatch shall be required for at least three (3) of such Showing Months, including the Showing Month of August. (ii) Demonstrated Capacity for any PDR in the DRAM Resource shall not be calculated under Section 1.6(a)(iii) for more than five (5) consecutive Showing Months during the Delivery Period (prorated, if the Delivery Period is less than twelve (12) Showing Months, to a number equal to half of the Showing Months in the Delivery Period minus one: e.g., two consecutive Showing Months for a six-month Delivery Period). (iii) Demonstrated Capacity for each PDR in the DRAM Resource shall be calculated under Section 1.6(a)(i) or 1.6(a)(ii) for any Showing Month for which a QC De- Rate Notice was issued without a corresponding agreed reduction in Supply Plan quantities, as further provided in Section 3.1(b). (c) The same Capacity Baseline must be used (i) to estimate Qualifying Capacity for Seller’s month-ahead submissions pursuant to Section 3.1(a) for a Showing Month; (ii) to calculate Demonstrated Capacity for the applicable Showing Month; and (iii) for energy settlement at the CAISO for the applicable Showing Month. (d) Solely for purposes of establishing the Demonstrated Capacity pursuant to Section 1.6(a), Seller shall use data available through Buyer’s Customer Data Access Systems that has been designated by Buyer as final Revenue Quality Meter Data and such data shall be considered final by the Parties as of the date Seller submits its invoice for the applicable Showing Month to Buyer. (e) If Seller has not received all Revenue Quality Meter Data for any Resource ID within fifteen (15) calendar days after the end of any Showing Month, Seller shall provide Notice to Buyer of the Resource IDs (and customer service accounts with missing Revenue Quality Meter Data within each such Resource ID), and the dispatch days and hours during such Showing Month, for which Revenue Quality Meter Data has not been received. Seller and Buyer shall comply with the communication protocols set forth in Exhibit D with respect to data issues. (f) If the DRAM Resource is composed of more than one PDR, then: (i) Seller shall may establish the portion of the Demonstrated Capacity for each such PDR by using the methods described in Sections 1.6(a)(i) through (iii), in which case the Demonstrated Capacity will equal the sum of the individual PDRs’ Demonstrated Capacities. (ii) The Showing Months in which DC Dispatches or DC Tests are conducted may be different for each such PDR except for the Showing Month of August, in which a DC Dispatch or DC Test is required for every PDR in the DRAM Resource pursuant to Section 1.6(b)(i). (iii) In the event that multiple Resource IDs are dispatched concurrently in a Showing Month, Seller may aggregate the performance of the concurrently dispatched Resource IDs for the purpose of Demonstrated Capacity invoicing and compare the sum of such aggregated performance against the sum of the Qualifying Capacity of those Resource IDs as listed on the applicable Supply Plan. For Local Capacity products, the aggregation of concurrently dispatched Resource IDs shall be limited to resources within the same SubLAP. (gf) With respect to any DRAM Resource Customer service account that was moved in a Showing Month pursuant to Section 3.4(d), Seller shall include the performance of such DRAM Resource Customer service account only in one PDR for purposes of the calculation of Demonstrated Capacity for such Showing Month. (g) If any respective PDR in the DRAM Resource is a Joint Resource, Seller’s invoice shall indicate (i) the amount of the capacity of such Joint Resource used to show Demonstrated Capacity for a specific type of Product for such Showing Month and (ii) the total capacity of such Joint Resource during such Showing Month. (h) If the type of Product Seller delivers under this Agreement is a Residential Customer Product, Seller’s invoice shall indicate the number of Residential Customer SAID agreements and the number of Small Commercial SAID accounts in each PDR for such type of Product. (i) In addition to the requirements in Section 1.6(a), if Seller is electing Demonstrated Capacity for Local Capacity, then, as part of Seller’s Demonstrated Capacity for Local Capacity, Seller’s invoice shall indicate the number of SAID agreements in the applicable LCA that are associated with the Local Capacity as indicated in Table 1.1(b) and Exhibit C. (j) Following Buyer’s receipt of Seller’s invoice and Notice of Demonstrated Capacity, Buyer may, upon Notice to Seller, require Seller to provide documentation from Seller or Seller’s SC that establishes to Buyer’s reasonable satisfaction the Demonstrated Capacity of each Product type from a PDR or Joint Resource as stated by Seller in its invoice for the applicable Showing Month. In the event that Seller does not provide such documentation within ten (10) Business Days from Buyer’s Notice or such documentation is not reasonably satisfactory to Buyer, then Buyer may require an audit of Seller or Seller’s SC records upon Notice (“Audit Notice”). With respect to an Audit Notice, Seller shall cause its SC to allow Buyer or its designated independent third-party auditor to have access to the records and data necessary to conduct such audit within five (5) Business Days of Seller’s receipt of an Audit Notice; provided, such audit will be limited solely to verification of the data upon which Seller based its claim of the amount of the Demonstrated Capacity. If the type of Product designated in Section 1.1(b) is a Residential Customer Product, then, in addition to the documentation specified above, Buyer may, in its Audit Notice, require Seller or Seller’s SC to provide additional documentation that establishes to Buyer’s reasonable satisfaction that the type of Product is Residential Customer Product as stated by Seller in its invoice for the applicable Showing Month. Buyer’s costs, including the costs for any third-party auditor, incurred in connection with the conducting such audit are the sole responsibility of Buyer.

Demonstrated Capacity. (a) Each invoice submitted by Seller to Buyer pursuant to Section 4.2 shall include a statement, in a form substantially similar to Exhibit C, of the amount of the Qualifying Capacity Product Monthly Quantity for each type of Product for such Showing Month that Seller was capable of delivering (“Demonstrated Capacity”), utilizing the results from including one of the following methodsfollowing, as provided below (subject to the additional restrictions set forth in Section 1.6(b)):below: (i) The results of a DC Dispatch of the applicable PDR or RDRR in the DRAM Resource during such Showing Month. The Demonstrated Capacity for System and Local Capacity will equal maximum hourly load reduction of such DC Dispatch as calculated using the Capacity Baseline; provided that, for the Showing Month of August, the Demonstrated Capacity for System and Local Capacity will equal the average hourly load reduction of such DC Dispatch as calculated using the Capacity Baseline. The Demonstrated Capacity for Flexible Capacity will equal the average hourly load reduction of such DC Dispatch as calculated using the Capacity Baseline. Demonstrated Capacity based on a DC Dispatch must align with the Clock Hours on which the applicable CAISO dispatch instructions are based; provided that, for any Real-Time Market award for which the CAISO dispatch instructions do not start or end on a Clock Hour, Demonstrated Capacity shall align with the same interval associated with the applicable CAISO dispatch instructions. If the CAISO issues a dispatch instruction for less than one hundred percent (100%) of the Qualifying Capacity of the applicable PDR in the DRAM Resource (a “Partial DC Dispatch”), then Seller may elect to submit the results of such Partial DC Dispatch during such Showing Month for its Demonstrated Capacity showing. Upon such election, the load reduction resulting from such Partial DC Dispatch shall be compared to the Qualifying Capacity of the entire PDR for purposes of deriving the DC-QC Ratio of the DRAM Resource in accordance with Section 4.1. (ii) The results of a DC Test in the event that (A) there is no DC Dispatch of the PDR in the DRAM Resource for one hundred percent (100%) of the Qualifying Capacity of the applicable Showing Month, and (B) Seller does not submit provided that the results PDR or RDRR provided load reduction during all of a Partial DC the hours referenced in the Dispatch during Instruction corresponding to the Showing Month as contemplated under 1.6(a)(i) aboveapplicable MOO hours. The Demonstrated Capacity for System and Local Capacity will equal the maximum hourly load reduction during any hour of such DC Test Dispatch as calculated using the Capacity Baseline; provided that, for the Showing Month of August Baseline and the Demonstrated Capacity for System and Local Flexible Capacity will equal the average hourly load reduction calculated using the Capacity Baseline. (ii) In the event that there is no Full Dispatch of the PDR or RDRR in the DRAM Resource during any two (2the Showing Month under 1.6(a)(i) consecutive hours above the results of a capacity test conducted by the Seller’s SC during the applicable Showing Month, if and as required under Section 3.3(b) below. The Demonstrated Capacity for System or Local Capacity with respect to such PDR or RDRR will equal the maximum hourly load reduction during such test as calculated using the Capacity Baseline. The Demonstrated Capacity for Flexible Capacity with respect to such PDR will equal the average hourly load reduction during any hour of such DC Test test as calculated using the Capacity Baseline; provided that, for the Showing Month of August the Demonstrated Capacity for Flexible Capacity will equal the average hourly load reduction during any two (2) consecutive hours as calculated using the Capacity Baseline.or (iii) In the event that (A) there is no DC Full Dispatch of the applicable PDR or RDRR in the DRAM Resource during the Showing Month for one hundred percent (100%) of the Qualifying Capacity of the applicable Showing Month, (B) Seller does not submit the results of a Partial DC Dispatch as contemplated under 1.6(a)(i) above, and (C) there is no DC Test or test of the applicable PDR or RDRR in the DRAM Resource during the Showing Month as contemplated under 1.6(a)(ii) above, the Demonstrated Capacity will equal the average amount of capacity for such the applicable PDR or RDRR in the DRAM Resource that the Seller bid into the applicable CAISO Markets solely during the Availability Assessment Hours hours of the Showing Month in compliance with the CAISO Must-Offer ObligationMOO. (b) Seller’s use of the methods described in Sections 1.6(a)(i)-(iii) is subject to the following additional restrictions: (i) Demonstrated Capacity for each PDR in the DRAM Resource must be calculated under Section 1.6(a)(i) or 1.6(a)(ii) for the August Showing Month of each year and for at least fifty percent (50%) of all contracted Showing Months during the Delivery Period (rounded downward if the Delivery Period is an odd number of Showing Months). For example, if the Delivery Period consists of seven (7) Showing Months, then a DC Test or DC Dispatch shall be required for at least three (3) of such Showing Months, including the Showing Month of August. (ii) Demonstrated Capacity for any PDR in the DRAM Resource shall not be calculated under Section 1.6(a)(iii) for more than five (5) consecutive Showing Months during the Delivery Period (prorated, if the Delivery Period is less than twelve (12) Showing Months, to a number equal to half of the Showing Months in the Delivery Period minus one: e.g., two consecutive Showing Months for a six-month Delivery Period). (iii) Demonstrated Capacity for each PDR in the DRAM Resource shall be calculated under Section 1.6(a)(i) or 1.6(a)(ii) for any Showing Month for which a QC De- Rate Notice was issued without a corresponding agreed reduction in Supply Plan quantities, as further provided in Section 3.1(b). (c) The same Capacity Baseline must be used (i) to estimate Qualifying Capacity for Seller’s month-ahead submissions pursuant to Section 3.1(a) for a Showing Month; (ii) to calculate Demonstrated Capacity for the applicable Showing Month; and (iii) for energy settlement at the CAISO for the applicable Showing Month. (d) Solely for purposes of establishing the Demonstrated Capacity pursuant to Section 1.6(a), Seller shall use data available through Buyer’s Customer Data Access Systems that has been designated by Buyer as final Revenue Quality Meter Data and such data shall be considered final by the Parties as of the date Seller submits its invoice for the applicable Showing Month to Buyer. (e) If Seller has not received all Revenue Quality Meter Data for any Resource ID within fifteen (15) calendar days after the end of any Showing Month, Seller shall provide Notice to Buyer of the Resource IDs (and customer service accounts with missing Revenue Quality Meter Data within each such Resource ID), and the dispatch days and hours during such Showing Month, for which Revenue Quality Meter Data has not been received. Seller and Buyer shall comply with the communication protocols set forth in Exhibit D with respect to data issues. (fc) If the DRAM Resource is composed comprised of more than one PDRPDR or RDRR, then: (i) then Seller shall may establish the portion of the Demonstrated Capacity for a specific type of Product associated with each such PDR or RDRR by using the methods described based on the descriptions in Sections 1.6(a)(i) through (iii1.6(a)(i)-(iii), in which case the Demonstrated Capacity for a specific type of Product will equal the sum of the individual PDRs’ Demonstrated CapacitiesPDR or RDRRs demonstrated capacities. (iid) The Showing Months in which DC Dispatches If any respective PDR or DC Tests are conducted may be different for each such PDR except for the Showing Month of August, in which a DC Dispatch or DC Test is required for every PDR RDRR in the DRAM Resource pursuant is a Joint Resource, Seller’s invoice shall indicate (x) the amount of the capacity of such Joint Resource used to Section 1.6(b)(i)show Demonstrated Capacity for a specific type of Product for such month and (y) the total capacity of such Joint Resource during such month. (iii) In the event that multiple Resource IDs are dispatched concurrently in a Showing Month, Seller may aggregate the performance of the concurrently dispatched Resource IDs for the purpose of Demonstrated Capacity invoicing and compare the sum of such aggregated performance against the sum of the Qualifying Capacity of those Resource IDs as listed on the applicable Supply Plan. For Local Capacity products, the aggregation of concurrently dispatched Resource IDs shall be limited to resources within the same SubLAP. (g) With respect to any DRAM Resource Customer service account that was moved in a Showing Month pursuant to Section 3.4(d), Seller shall include the performance of such DRAM Resource Customer service account only in one PDR for purposes of the calculation of Demonstrated Capacity for such Showing Month. (he) If the type of Product Seller delivers under this Agreement is a Residential Customer Product, Seller’s invoice shall indicate the number of Residential Customer SAID agreements and the number of Small Commercial SAID accounts in each PDR or RDRR for such type of Product. (if) In addition to the requirements in Section 1.6(a), if Seller is electing Demonstrated Capacity for Local Capacity, then, as part of Seller’s Demonstrated Capacity for Local Capacity, Seller’s invoice shall indicate the number of SAID agreements in the applicable LCA that are associated with the Local Capacity as indicated in Table 1.1(b) and Exhibit C. (g) Following Buyer’s receipt of Seller’s invoice and Notice of Demonstrated Capacity, Buyer may, upon Notice to Seller, require Seller to provide documentation from Seller or Seller’s SC that establishes to Buyer’s reasonable satisfaction the Demonstrated Capacity of each Product type from a PDR, RDRR or Joint Resource as stated by Seller in its invoice for the applicable Showing Month. In the event that Seller does not provide such documentation within ten

Demonstrated Capacity. (a) Each invoice submitted by Seller to Buyer pursuant to Section 4.2 shall include a statement, in a form substantially similar to Exhibit C, of the amount of the Qualifying Capacity for each type of Product Monthly Quantity for such Showing Month that Seller was capable of delivering (“Demonstrated Capacity”), utilizing the results from one of the following methodsincluding, as provided below (subject to the additional restrictions set forth at Seller’s election in Section 1.6(b)):its sole discretion either: (i) The results of a DC capacity test conducted by the Seller’s SC during the applicable Showing Month. Such test shall consist of at least two (2) continuous hours of load reduction by a PDR in the DRAM Resource. The Demonstrated Capacity with respect to such PDR will equal the maximum hourly load reduction during such test as calculated using the PDR Capacity Baseline; (ii) The average amount of capacity Seller bid a PDR in the DRAM Resource into the CAISO Day-Ahead Market solely during the hours of the Showing Month in compliance with the MOO; or (iii) The results of a Dispatch of the applicable a PDR in the DRAM Resource during such the Showing Month, provided that the PDR provided load reduction during all of the hours referenced in the Dispatch Instruction corresponding to the MOO hours from the Day-Ahead Schedule. The Demonstrated Capacity for System and Local Capacity will equal maximum hourly load reduction of such DC Dispatch as calculated using the Capacity Baseline; provided that, for the Showing Month of August, the Demonstrated Capacity for System and Local Capacity will equal the average hourly load reduction of such DC Dispatch as calculated using the Capacity Baseline. The Demonstrated Capacity for Flexible Capacity will equal the average hourly load reduction of such DC Dispatch as calculated using the Capacity Baseline. Demonstrated Capacity based on a DC Dispatch must align with the Clock Hours on which the applicable CAISO dispatch instructions are based; provided that, for any Real-Time Market award for which the CAISO dispatch instructions do not start or end on a Clock Hour, Demonstrated Capacity shall align with the same interval associated with the applicable CAISO dispatch instructions. If the CAISO issues a dispatch instruction for less than one hundred percent (100%) of the Qualifying Capacity of the applicable PDR in the DRAM Resource (a “Partial DC Dispatch”), then Seller may elect to submit the results of such Partial DC Dispatch during such Showing Month for its Demonstrated Capacity showing. Upon such election, the load reduction resulting from such Partial DC Dispatch shall be compared to the Qualifying Capacity of the entire PDR for purposes of deriving the DC-QC Ratio of the DRAM Resource in accordance with Section 4.1. (ii) The results of a DC Test in the event that (A) there is no DC Dispatch of the PDR in the DRAM Resource for one hundred percent (100%) of the Qualifying Capacity of the applicable Showing Month, and (B) Seller does not submit the results of a Partial DC Dispatch during the Showing Month as contemplated under 1.6(a)(i) above. The Demonstrated Capacity for System and Local Capacity will equal the maximum hourly load reduction during any hour of such DC Test Dispatch as calculated using the Capacity Baseline; provided that, for the Showing Month of August the Demonstrated Capacity for System and Local Capacity will equal the average hourly load reduction during any two (2) consecutive hours as calculated using the Capacity Baseline. The Demonstrated Capacity for Flexible Capacity will equal the average hourly load reduction during any hour of such DC Test as calculated using the Capacity Baseline; provided that, for the Showing Month of August the Demonstrated Capacity for Flexible Capacity will equal the average hourly load reduction during any two (2) consecutive hours as calculated using the PDR Capacity Baseline. (iii) In the event that (A) there is no DC Dispatch of the PDR in the DRAM Resource during the Showing Month for one hundred percent (100%) of the Qualifying Capacity of the applicable Showing Month, (B) Seller does not submit the results of a Partial DC Dispatch as contemplated under 1.6(a)(i) above, and (C) there is no DC Test of the PDR in the DRAM Resource during the Showing Month as contemplated under 1.6(a)(ii) above, the Demonstrated Capacity will equal the average amount of capacity for such PDR in the DRAM Resource that the Seller bid into the applicable CAISO Markets solely during the Availability Assessment Hours of the Showing Month in compliance with the CAISO Must-Offer Obligation. (b) Seller’s use of the methods described in Sections 1.6(a)(i)-(iii) is subject to the following additional restrictions: (i) Demonstrated Capacity for each PDR in the DRAM Resource must be calculated under Section 1.6(a)(i) or 1.6(a)(ii) for the August Showing Month of each year and for at least fifty percent (50%) of all contracted Showing Months during the Delivery Period (rounded downward if the Delivery Period is an odd number of Showing Months). For example, if the Delivery Period consists of seven (7) Showing Months, then a DC Test or DC Dispatch shall be required for at least three (3) of such Showing Months, including the Showing Month of August. (ii) Demonstrated Capacity for any PDR in the DRAM Resource shall not be calculated under Section 1.6(a)(iii) for more than five (5) consecutive Showing Months during the Delivery Period (prorated, if the Delivery Period is less than twelve (12) Showing Months, to a number equal to half of the Showing Months in the Delivery Period minus one: e.g., two consecutive Showing Months for a six-month Delivery Period). (iii) Demonstrated Capacity for each PDR in the DRAM Resource shall be calculated under Section 1.6(a)(i) or 1.6(a)(ii) for any Showing Month for which a QC De- Rate Notice was issued without a corresponding agreed reduction in Supply Plan quantities, as further provided in Section 3.1(b). (c) The same Capacity Baseline must be used (i) to estimate Qualifying Capacity for Seller’s month-ahead submissions pursuant to Section 3.1(a) for a Showing Month; (ii) to calculate Demonstrated Capacity for the applicable Showing Month; and (iii) for energy settlement at the CAISO for the applicable Showing Month. (d) Solely for purposes of establishing the Demonstrated Capacity pursuant to this Section 1.6(a), Seller shall use data available through Buyer’s Customer Data Access Systems that has been designated by Buyer as final Revenue Quality Meter Data and such data shall be considered final by the Parties as of the date Seller submits its invoice for the applicable Showing Month to Buyer. (e) If Seller has not received all Revenue Quality Meter Data for any Resource ID within fifteen (15) calendar days after the end of any Showing Month, Seller shall provide Notice to Buyer of the Resource IDs (and customer service accounts with missing Revenue Quality Meter Data within each such Resource ID), and the dispatch days and hours during such Showing Month, for which Revenue Quality Meter Data has not been received. Seller and Buyer shall comply with the communication protocols set forth in Exhibit D with respect to data issues. (fc) If the DRAM Resource is composed comprised of more than one PDR, then: (i) then Seller shall may establish the portion of the Demonstrated Capacity for associated with each such PDR by using any of the methods described in Sections 1.6(a)(i) through (iii1.6(a)(i)-(iii), in which case the Demonstrated Capacity will equal the sum of the individual PDRs’ Demonstrated CapacitiesPDR demonstrated capacities. (iid) The Showing Months in which DC Dispatches or DC Tests are conducted may be different for each such PDR except for the Showing Month of August, in which a DC Dispatch or DC Test is required for every If any PDR in the DRAM Resource pursuant to Section 1.6(b)(i). (iii) In the event that multiple Resource IDs are dispatched concurrently in a Showing Month, Seller may aggregate the performance of the concurrently dispatched Resource IDs for the purpose of Demonstrated Capacity invoicing and compare the sum of such aggregated performance against the sum of the Qualifying Capacity of those Resource IDs as listed on the applicable Supply Plan. For Local Capacity products, the aggregation of concurrently dispatched Resource IDs shall be limited to resources within the same SubLAP. (g) With respect to any DRAM Resource Customer service account that was moved in a Showing Month pursuant to Section 3.4(d), Seller shall include the performance of such DRAM Resource Customer service account only in one PDR for purposes of the calculation of Demonstrated Capacity for such Showing Month. (h) If the type of Product Seller delivers under this Agreement is a Residential Customer ProductJoint PDR, Seller’s invoice shall indicate the number of Residential Customer SAID agreements and the number of Small Commercial SAID accounts in each PDR for such type of Product. (i) In addition to the requirements in Section 1.6(a), if Seller is electing Demonstrated Capacity for Local Capacity, then, as part of Seller’s Demonstrated Capacity for Local Capacity, Seller’s invoice shall indicate the number of SAID agreements in the applicable LCA that are associated with the Local Capacity as indicated in Table 1.1(b) and Exhibit C.indicate

Demonstrated Capacity. (a) Each invoice submitted by Seller to Buyer pursuant to Section 4.2 shall include a statement, in a form substantially similar to Exhibit C, of the amount of the Qualifying Capacity for each type of Product for such Showing Month that Seller was capable of delivering (“Demonstrated Capacity”), utilizing the results from one of the following methods, as provided below (subject to the additional restrictions set forth in Section 1.6(b)): (i) The results of a DC Dispatch of the applicable PDR in the DRAM Resource during such Showing Month1. The Demonstrated Capacity for System and Local Capacity will equal maximum hourly load reduction of such DC Dispatch as calculated using the Capacity Baseline; provided that, for the Showing Month of August, the Demonstrated Capacity for System and Local Capacity will equal the average hourly load reduction of such DC Dispatch as calculated using the Capacity Baseline. The Demonstrated Capacity for Flexible Capacity will equal the average hourly load reduction of such DC Dispatch as calculated using the Capacity Baseline. Demonstrated Capacity based on a DC Dispatch must align with the Clock Hours on which the applicable CAISO dispatch instructions are based; provided that, for any Real-Time Market award for which the CAISO dispatch instructions do not start or end on a Clock Hour, Demonstrated Capacity shall align with the same interval associated with the applicable CAISO dispatch instructions. If the CAISO issues a dispatch instruction for less than one hundred percent (100%) of the Qualifying Capacity of the applicable PDR in the DRAM Resource (a “Partial DC Dispatch”), then Seller may elect to submit the results of such Partial DC Dispatch during such Showing Month for its Demonstrated Capacity showing. Upon such election, the load reduction resulting from such Partial DC Dispatch shall be compared to the Qualifying Capacity of the entire PDR for purposes of deriving the DC-QC Ratio of the DRAM Resource in accordance with Section 4.1. (ii) The results of a DC Test in the event that (A) there is no DC Dispatch of the PDR in the DRAM Resource for one hundred percent (100%) of the Qualifying Capacity of the applicable Showing Month, and (B) Seller does not submit the results of a Partial DC Dispatch during the Showing Month as contemplated under 1.6(a)(i) above. The Demonstrated Capacity for System and Local Capacity will equal the maximum hourly load reduction during any hour of such DC Test as calculated using the Capacity Baseline; provided that, for the Showing Month of August the Demonstrated Capacity for System and Local Capacity will equal the average hourly load reduction during any two (2) consecutive hours as calculated using the Capacity Baseline. The Demonstrated Capacity for Flexible Capacity will equal the average hourly load reduction during any hour of such DC Test as calculated using the Capacity Baseline; provided that, for the Showing Month of August the Demonstrated Capacity for Flexible Capacity will equal the average hourly load reduction during any two (2) consecutive hours as calculated using the Capacity Baseline. (iii) . In the event that (A) there is no DC Dispatch of the PDR in the DRAM Resource during the Showing Month for one hundred percent (100%) of the Qualifying Capacity of the applicable Showing Month, (B) Seller does not submit the results of a Partial DC Dispatch as contemplated under 1.6(a)(i) above, and (C) there is no DC Test of the PDR in the DRAM Resource during the Showing Month as contemplated under 1.6(a)(ii) above, the Demonstrated Capacity will equal the average amount of capacity for such PDR in the DRAM Resource that the Seller bid into the applicable CAISO Markets solely during the Availability Assessment Hours of the Showing Month in compliance with the CAISO Must-Offer Obligation. (b) MOO. Seller’s use of the methods described in Sections 1.6(a)(i)-(iii) is subject to the following additional restrictions: (i) : Demonstrated Capacity for each PDR in the DRAM Resource must be calculated under Section 1.6(a)(i) or 1.6(a)(ii) for the August Showing Month of each year and for at least fifty percent (50%) of all contracted Showing Months during the Delivery Period (rounded downward if the Delivery Period is an odd number of Showing Months). For example, if the Delivery Period consists of seven (7) Showing Months, then a DC Test or DC Dispatch shall be required for at least three (3) of such Showing Months, including the Showing Month of August. (ii) . Demonstrated Capacity for any PDR in the DRAM Resource shall not be calculated under Section 1.6(a)(iii) for more than five (5) consecutive Showing Months during the Delivery Period (prorated, if the Delivery Period is less than twelve (12) Showing Months, to a number equal to half of the Showing Months in the Delivery Period minus one: e.g., two consecutive Showing Months for a six-month Delivery Period). (iii) Demonstrated Capacity for each PDR in the DRAM Resource shall be calculated under Section 1.6(a)(i) or 1.6(a)(ii) for any Showing Month for which a QC De- Rate Notice was issued without a corresponding agreed reduction in Supply Plan quantities, as further provided in Section 3.1(b). (c) . The same Capacity Baseline must be used (i) to estimate Qualifying Capacity for Seller’s month-ahead submissions pursuant to Section 3.1(a) for a Showing Month; (ii) to calculate Demonstrated Capacity for the applicable Showing Month; and (iii) for energy settlement at the CAISO for the applicable Showing Month. (d) . Solely for purposes of establishing the Demonstrated Capacity pursuant to Section 1.6(a), Seller shall use data available through Buyer’s Customer Data Access Systems that has been designated by Buyer as final Revenue Quality Meter Data and such data shall be considered final by the Parties as of the date Seller submits its invoice for the applicable Showing Month to Buyer. (e) If Seller has not received all Revenue Quality Meter Data for any Resource ID within fifteen (15) calendar days after the end of any Showing Month, Seller shall provide Notice to Buyer of the Resource IDs (and customer service accounts with missing Revenue Quality Meter Data within each such Resource ID), and the dispatch days and hours during such Showing Month, for which Revenue Quality Meter Data has not been received. Seller and Buyer shall comply with the communication protocols set forth in Exhibit D with respect to data issues. (f) If the DRAM Resource is composed of more than one PDR, then: (i) : Seller shall may establish the portion of the Demonstrated Capacity for each such PDR by using the methods described in Sections 1.6(a)(i) through (iii), in which case the Demonstrated Capacity will equal the sum of the individual PDRs’ Demonstrated Capacities. (ii) . The Showing Months in which DC Dispatches or DC Tests are conducted may be different for each such PDR except for the Showing Month of August, in which a DC Dispatch or DC Test is required for every PDR in the DRAM Resource pursuant to Section 1.6(b)(i). (iii) In the event that multiple Resource IDs are dispatched concurrently in a Showing Month, Seller may aggregate the performance of the concurrently dispatched Resource IDs for the purpose of Demonstrated Capacity invoicing and compare the sum of such aggregated performance against the sum of the Qualifying Capacity of those Resource IDs as listed on the applicable Supply Plan. For Local Capacity products, the aggregation of concurrently dispatched Resource IDs shall be limited to resources within the same SubLAP. (g) With respect to any DRAM Resource Customer service account that was moved in a Showing Month pursuant to Section 3.4(d), Seller shall include the performance of such DRAM Resource Customer service account only in one PDR for purposes of the calculation of Demonstrated Capacity for such Showing Month. . If any respective PDR in the DRAM Resource is a Joint Resource, Seller’s invoice shall indicate (hi) the amount of the capacity of such Joint Resource used to show Demonstrated Capacity for a specific type of Product for such Showing Month and (ii) the total capacity of such Joint Resource during such Showing Month. If the type of Product Seller delivers under this Agreement is a Residential Customer Product, Seller’s invoice shall indicate the number of Residential Customer SAID agreements and the number of Small Commercial SAID accounts in each PDR for such type of Product. (i) . In addition to the requirements in Section 1.6(a), if Seller is electing Demonstrated Capacity for Local Capacity, then, as part of Seller’s Demonstrated Capacity for Local Capacity, Seller’s invoice shall indicate the number of SAID agreements in the applicable LCA that are associated with the Local Capacity as indicated in Table 1.1(b) and Exhibit C.C. Following Buyer’s receipt of Seller’s invoice and Notice of Demonstrated Capacity, Buyer may, upon Notice to Seller, require Seller to provide documentation from Seller or Seller’s SC that establishes to Buyer’s reasonable satisfaction the Demonstrated Capacity of each Product type from a PDR or Joint Resource as stated by Seller in its invoice for the applicable Showing Month. In the event that Seller does not provide such documentation within ten (10) Business Days from Buyer’s Notice or such documentation is not reasonably satisfactory to Buyer, then Buyer may require an audit of Seller or Seller’s SC records upon Notice (“Audit Notice”). With respect to an Audit Notice, Seller shall cause its SC to allow Buyer or its designated independent third-party auditor to have access to the records and data necessary to conduct such audit within five (5) Business Days of Seller’s receipt of an Audit Notice; provided, such audit will be limited solely to verification of the data upon which Seller based its claim of the amount of the Demonstrated Capacity. If the type of Product designated in Section 1.1(b) is a Residential Customer Product, then, in addition to the documentation specified above, Buyer may, in its Audit Notice, require Seller or Seller’s SC to provide additional documentation that establishes to Buyer’s reasonable satisfaction that the type of Product is Residential Customer Product as stated by Seller in its invoice for the applicable Showing Month. Buyer’s costs, including the costs for any third-party auditor, incurred in connection with the conducting such audit are the sole responsibility of Buyer.

Demonstrated Capacity. (a) Each invoice submitted by Seller to Buyer pursuant to Section 4.2 shall include a statement, in a form substantially similar to Exhibit C, of the amount of the Qualifying Capacity for each type of Product for such Showing Month that Seller was capable of delivering (“Demonstrated Capacity”), utilizing the results from one of the following methods, as provided below (subject to the additional restrictions set forth in Section 1.6(b)): (i) The results of a DC Dispatch of the applicable PDR in the DRAM Resource during such Showing Month. The Demonstrated Capacity for System and Local Capacity will equal the maximum hourly load reduction of such DC Dispatch as calculated using the Capacity Baseline; provided that, for the Showing Month of August, the Demonstrated Capacity for System and Local Capacity will equal the average hourly load reduction of such DC Dispatch as calculated using the Capacity Baseline. The Demonstrated Capacity for Flexible Capacity will equal the average hourly load reduction of such DC Dispatch as calculated using the Capacity Baseline. Demonstrated Capacity based on a DC Dispatch must align with the Clock Hours on which the applicable CAISO dispatch instructions are based; provided that, for any Real-Time Market award for which the CAISO dispatch instructions do not start or end on a Clock Hour, Demonstrated Capacity shall align with the same interval associated with the applicable CAISO dispatch instructions. If the CAISO issues a dispatch instruction for less than one hundred percent (100%) of the Qualifying Capacity of the applicable PDR in the DRAM Resource (a “Partial DC Dispatch”), then Seller may elect to submit the results of such Partial DC Dispatch during such Showing Month for its Demonstrated Capacity showing. Upon such election, the load reduction resulting from such Partial DC Dispatch shall be compared to the Qualifying Capacity of the entire PDR for purposes of deriving the DC-QC Ratio of the DRAM Resource in accordance with Section 4.1. (ii) The results of a DC Test in the event that (A) there is no DC Dispatch of the PDR in the DRAM Resource for one hundred percent (100%) of the Qualifying Capacity of the applicable Showing Month, and (B) Seller does not submit the results of a Partial DC Dispatch during the Showing Month as contemplated under 1.6(a)(i) above. The Demonstrated Capacity for System and Local Capacity will equal the maximum hourly load reduction during any hour of such DC Test as calculated using the Capacity Baseline; provided that, for the Showing Month of August the Demonstrated Capacity for System and Local Capacity will equal the average hourly load reduction during any two (2) consecutive hours as calculated using the Capacity Baseline. The Demonstrated Capacity for Flexible Capacity will equal the average hourly load reduction during any hour of such DC Test as calculated using the Capacity Baseline; provided that, for the Showing Month of August the Demonstrated Capacity for Flexible Capacity will equal the average hourly load reduction during any two (2) consecutive hours as calculated using the Capacity Baseline. (iii) In the event that (A) there is no DC Dispatch of the PDR in the DRAM Resource during the Showing Month for one hundred percent (100%) of the Qualifying Capacity of the applicable Showing Month, (B) Seller does not submit the results of a Partial DC Dispatch as contemplated under 1.6(a)(i) above, and (C) there is no DC Test of the PDR in the DRAM Resource during the Showing Month as contemplated under 1.6(a)(ii) above, the Demonstrated Capacity will equal the average amount of capacity for such PDR in the DRAM Resource that the Seller bid into the applicable CAISO Markets solely during the Availability Assessment Hours of the Showing Month in compliance with the CAISO Must-Offer ObligationMOO. (b) Seller’s use of the methods described in Sections 1.6(a)(i)-(iii) is subject to the following additional restrictions: (i) Demonstrated Capacity for each PDR in the DRAM Resource must be calculated under Section 1.6(a)(i) or 1.6(a)(ii) for the August Showing Month of each year and for at least fifty percent (50%) of all contracted Showing Months during the Delivery Period (rounded downward if the Delivery Period is an odd number of Showing Months). For example, if the Delivery Period consists of seven (7) Showing Months, then a DC Test or DC Dispatch shall be required for at least three (3) of such Showing Months, including the Showing Month of August. (ii) Demonstrated Capacity for any PDR in the DRAM Resource shall not be calculated under Section 1.6(a)(iii) for more than five (5) consecutive Showing Months during the Delivery Period (prorated, if the Delivery Period is less than twelve (12) Showing Months, to a number equal to half of the Showing Months in the Delivery Period minus one: e.g., two consecutive Showing Months for a six-month Delivery Period). (iii) Demonstrated Capacity for each PDR in the DRAM Resource shall be calculated under Section 1.6(a)(i) or 1.6(a)(ii) for any Showing Month for which a QC De- De-Rate Notice was issued without a corresponding agreed reduction in Supply Plan quantities, as further provided in Section 3.1(b). (c) The same Capacity Baseline must be used (i) to estimate Qualifying Capacity for Seller’s month-ahead submissions pursuant to Section 3.1(a) for a Showing Month; (ii) to calculate Demonstrated Capacity for the applicable Showing Month; and (iii) for energy settlement at the CAISO for the applicable Showing Month. (d) Solely for purposes of establishing the Demonstrated Capacity pursuant to Section 1.6(a), Seller shall use data available through Buyer’s Customer Data Access Systems that has been designated by Buyer as final Revenue Quality Meter Data and such data shall be considered final by the Parties as of the date Seller submits its invoice for the applicable Showing Month to Buyer. (e) If Seller has not received all Revenue Quality Meter Data for any Resource ID within fifteen (15) calendar days after the end of any Showing Month, Seller shall provide Notice to Buyer of the Resource IDs (and customer service accounts with missing Revenue Quality Meter Data RQMD within each such Resource ID), and the dispatch days and hours during such Showing Month, for which Revenue Quality Meter Data has not been received. Seller and Buyer shall comply with the communication protocols set forth in Exhibit D with respect to data issues. (f) If the DRAM Resource is composed of more than one PDR, then: (i) Seller shall may establish the portion of the Demonstrated Capacity for each such PDR by using the methods described in Sections 1.6(a)(i) through (iii), in which case the Demonstrated Capacity will equal the sum of the individual PDRs’ Demonstrated Capacities. (ii) The Showing Months in which DC Dispatches or DC Tests are conducted may be different for each such PDR except for the Showing Month of August, in which a DC Dispatch or DC Test is required for every PDR in the DRAM Resource pursuant to Section 1.6(b)(i). (iii) In the event that multiple Resource IDs are dispatched concurrently in a Showing Month, Seller may aggregate the performance of the concurrently dispatched Resource IDs for the purpose of Demonstrated Capacity invoicing and compare the sum of such aggregated performance against the sum of the Qualifying Capacity of those Resource IDs as listed on the applicable Supply Plan. For Local Capacity products, the aggregation of concurrently dispatched Resource IDs shall be limited to resources within the same SubLAP. (g) With respect to any DRAM Resource Customer service account that was moved in a Showing Month pursuant to Section 3.4(d), Seller shall include the performance of such DRAM Resource Customer service account only in one PDR for purposes of the calculation of Demonstrated Capacity for such Showing Month. (h) If any respective PDR in the DRAM Resource is a Joint Resource, Seller’s invoice shall indicate (i) the amount of the capacity of such Joint Resource used to show Demonstrated Capacity for a specific type of Product for such Showing Month and (ii) the total capacity of such Joint Resource during such Showing Month. (i) If the type of Product Seller delivers under this Agreement is a Residential Customer Product, Seller’s invoice shall indicate the number of Residential Customer SAID agreements and the number of Small Commercial SAID accounts in each PDR for such type of Product. (ij) In addition to the requirements in Section 1.6(a), if Seller is electing Demonstrated Capacity for Local Capacity, then, as part of Seller’s Demonstrated Capacity for Local Capacity, Seller’s invoice shall indicate the number of SAID agreements in the applicable LCA that are associated with the Local Capacity as indicated in Table 1.1(b) and Exhibit C. (k) If Buyer is unable to validate, or disputes, any amount shown in Seller’s invoice and Notice of Demonstrated Capacity, then Buyer shall issue a Notice to Seller. Pursuant to Buyer’s issuance of such Notice, Seller shall be required to provide additional documentation from Seller or Seller’s SC in the form or format requested by Buyer that establishes to Buyer’s reasonable satisfaction that the Demonstrated Capacity of each Product type from a PDR or Joint Resource is as stated by Seller in its invoice for the applicable Showing Month. (i) Buyer shall issue such Notice on or before the later of: (A) the twentieth (20th) calendar day of the month and (B) the tenth (10th) calendar day after receipt of Seller’s invoice and Demonstrated Capacity; provided that, if such day is not a Business Day, then on the next Business Day. (ii) No later than ten (10) Business Days after receipt of Buyer’s Notice, Seller shall provide the additional documentation to Buyer. If Seller fails to provide the additional documentation within such ten (10) Business Day deadline, then Buyer shall either (A) pay the subject invoice or (B) initiate an audit of Seller’s or Seller’s SC records by issuing a notice (“Audit Notice”) to Seller, in each case no later than fifteen (15) Business Days after the expiration of such ten (10) Business Day deadline. (iii) No later than fifteen (15) Business Days after receiving the additional documentation from Seller, Buyer shall either: (A) pay the subject invoice or (B) initiate an audit of Seller or Seller’s SC records by issuing an Audit Notice to Seller if the additional documentation is unsatisfactory to Buyer in its reasonable discretion. (l) With respect to an Audit Notice issued under Section 1.6(k)(ii) or (iii), Seller shall allow, or cause its SC to allow, Buyer or its designated independent third-party auditor to have access to the records and data necessary to conduct such audit that are in the form or format requested by Buyer no later than five (5) Business Days after Seller’s receipt of an Audit Notice; provided, such audit will be limited solely to verification of the data upon which Seller based its claim of the amount of the Demonstrated Capacity. If the type of Product designated in Section 1.1(b) is a Residential Customer Product, then, in addition to the documentation specified above, Buyer may, in its Audit Notice, require Seller or Seller’s SC to provide additional documentation that establishes to Buyer’s reasonable satisfaction that the type of Product is Residential Customer Product as stated by Seller in its invoice for the applicable Showing Month. Buyer’s costs, including the costs for any third-party auditor, incurred in connection with conducting such audit are the sole responsibility of Buyer. Buyer shall make a reasonable effort to conclude its audit within sixty (60) calendar days after receiving all records and data, in the form or format requested by Xxxxx, that Buyer deems necessary to complete or resolve the disputed invoice. If the audit does not result in the resolution of the disputed invoice, then either Party may initiate the Dispute Resolution process pursuant to Article 10.