Common use of Direct NYISO/ISO-NE Emergency Energy Transaction Clause in Contracts

Direct NYISO/ISO-NE Emergency Energy Transaction. These are requests made by either the NYISO or ISO-NE to receive Emergency Energy in support of Emergency conditions and to protect Reliability in the event that there is a need for energy on its system that could not be supplied through the market. The charge for Emergency Energy shall be calculated using the following two-part formula. The first part of the formula calculates the Energy Charge portion of the charge and the second part incorporates any Transmission Charge reasonably associated with the delivery of the Emergency Energy to the Delivery Point. The Energy Charge portion of the Emergency Energy Charge (for an hour) For NYISO as the delivering Party: The Energy Charge portion of the Emergency Energy Charge for an hour equals the sum of the Energy Charges for each real-time interval in the hour. The Energy Charge for each real-time interval = (Emergency Energy supplied in the real-time interval in megawatt hour(s) (“MWh”)) * (Delivering Party’s Cost of Energy in $/MWh) * 110% The Cost of Energy shall be the NYISO final real-time Locational Based Marginal Price (“LBMP”) at the external node associated with the Delivery Point (as used in the NYISO market system for energy exports from the NYISO Balancing Authority Area into the New England Balancing Authority Area, as such pricing node is defined in NYISO Tariffs and as summarized in Table 1), for the real-time interval of the Emergency Energy delivery. For purposes of this calculation, a real-time LBMP for an interval is set to $0.00 if the real-time LBMP in that interval was negative. For ISO-NE as the delivering Party: The Energy Charge portion of the Emergency Energy Charge for an hour equals the sum of the Energy Charges for each five minute settlement interval in the hour * 110%. For purposes of this calculation:

Direct NYISO/ISO-NE Emergency Energy Transaction. These are requests made by either the NYISO or ISO-NE to receive Emergency Energy in support of Emergency conditions and to protect Reliability in the event that there is a need for energy on its system that could not be supplied through the market. The charge for Emergency Energy shall be calculated using the following two-part formula. The first part of the formula calculates the Energy Charge portion of the charge and the second part incorporates any Transmission Charge reasonably associated with the delivery of the Emergency Energy to the Delivery Point. The Energy Charge portion of the Emergency Energy Charge (for an hour) For NYISO as the delivering Party: The Energy Charge portion of the Emergency Energy Charge for an hour equals the sum of the Energy Charges for each real-time interval in the hour. The Energy Charge for each real-time interval = (Emergency Energy supplied in the real-time interval in megawatt hour(smegawatthour(s) (“MWh”)) * (Delivering Party’s Cost of Energy in $/MWh) * 110% The Cost of Energy shall be the NYISO final real-time Locational Based Marginal Price (“LBMP”) at the external node associated with the Delivery Point (as used in the NYISO market system for energy exports from the NYISO Balancing Authority Area into the New England Balancing Authority Area, as such pricing node is defined in NYISO Tariffs and as summarized in Table 1), for the real-time interval of the Emergency Energy delivery. For purposes of this calculation, a real-time LBMP for an interval is set to $0.00 if the real-time LBMP in that interval was negative. For ISO-NE as the delivering Party: The Energy Charge portion of the Emergency Energy Charge for an hour equals the sum of the Energy Charges for each five minute settlement interval in the hour * 110%. For purposes of this calculation:

Direct NYISO/ISO-NE Emergency Energy Transaction. These are requests made by either the NYISO or ISO-NE to receive Emergency Energy in support of Emergency conditions and to protect Reliability in the event that there is a need for energy on its system that could not be supplied through the market. The charge for Emergency Energy shall be calculated using the following two-part formula. The first part of the formula calculates the Energy Charge portion of the charge and the second part incorporates any Transmission Charge reasonably associated with the delivery of the Emergency Energy to the Delivery Point. The Energy Charge portion of the Emergency Energy Charge (for an hour) For NYISO as the delivering Party: The Energy Charge portion of the Emergency Energy Charge for an hour equals the sum of the Energy Charges for each real-time interval in the hour. The Energy Charge for each real-time interval = (Emergency Energy supplied in the hour real-time interval in megawatt hour(s) (“MWh”)) * (Delivering Party’s Cost of Energy in $/MWh) * 110% The In the case of the NYISO as delivering Party, tThe Cost of Energy shall be the NYISO final external time-weighted/integrated real-time Locational Based Marginal Price (“LBMP”) at the external node associated with the Delivery Point (as used in the NYISO market system for energy exports from the NYISO Balancing Authority Area into the New England Balancing Authority Area, as such pricing node is defined in NYISO Tariffs and as summarized in Table 1), for the hour real-time interval of the Emergency Energy delivery. For purposes of this calculation, a real-time LBMP for an interval is set to $0.00 if the real-time LBMP in that interval was negative. For ISO-NE as the delivering Party: The Energy Charge portion of the Emergency Energy Charge for an hour equals the sum of the Energy Charges for each five minute settlement interval in the hour * 110%. For purposes of this calculation:

Direct NYISO/ISO-NE Emergency Energy Transaction. These are requests made by either the NYISO or ISO-NE to receive Emergency Energy in support of Emergency conditions and to protect Reliability in the event that there is a need for energy on its system that could not be supplied through the market. The charge for Emergency Energy shall be calculated using the following two-part formula. The first part of the formula calculates the Energy Charge portion of the charge and the second part incorporates any Transmission Charge reasonably associated with the delivery of the Emergency Energy to the Delivery Point. The Energy Charge portion of the Emergency Energy Charge (for an hour) For NYISO as the delivering Party: The Energy Charge portion of the Emergency Energy Charge for an hour =equals the sum of the Energy Charges for each real-time interval in the hour. The Energy Charge for each real-time interval = (Emergency Energy supplied in the hour real-time interval in megawatt hour(smegawatthour(s) (“MWh”)) * (Delivering Party’s Cost of Energy in $/MWh) * 110% The In the case of the NYISO as delivering Party, tThe Cost of Energy shall be the NYISO final external time-weighted/integrated real-time Locational Based Marginal Price (“LBMP”) at the external node associated with the Delivery Point (as used in the NYISO market system for energy exports from the NYISO Balancing Authority Area into the New England Balancing Authority Area, as such pricing node is defined in NYISO Tariffs and as summarized in Table 1), for the real-time interval intervalhour of the Emergency Energy delivery. For purposes of this calculation, a real-time LBMP for an interval is set to $0.00 if the real-time LBMP in that interval was negative. For ISO-NE as the delivering Party: The Energy Charge portion of the Emergency Energy Charge for an hour equals the sum of the Energy Charges for each five minute settlement interval in the hour * 110%. For purposes of this calculation:: The Energy Charge for a five-minute settlement interval equals the amount of Emergency Energy (in MWh) scheduled in the settlement interval at the external node associated with the Delivery Point (as used in the New England market system for energy exports from the New England Balancing Authority Area into the NYISO Balancing Authority Area), adjusted for any curtailment, multiplied by the Cost of Emergency Energy in the settlement interval and divided by 12. The Cost of Emergency Energy in a five-minute settlement interval equals the LMP In the case of ISO-NE as the delivering Party, the Cost of Energy shall be the ISO-NE final real-time integrated hourly Locational Marginal Price (“LMP”) at the external node associated with the Delivery Point (as used in the New England market system for energy exports from the New England Balancing Authority Area into the NYISO Balancing Authority Area, as such pricing node is defined in the ISO-NE Tariff and as summarized in Table 1), for the settlement intervalhour of the Emergency Energy delivery. For purposes of this calculation, an LMP in a settlement interval is set to $0.00 if the LMP in the settlement interval was negative. Table 1 Delivery Points and Associated Pricing Nodes, as Modeled by the Delivering Party External Nodes for Pricing Node for the Delivering Party (as modeled in the Delivering Party’s system) Delivery Point Delivering Party: ISO-NE Delivering Party: NYISO NY/NE Northern AC Interconnection (excludes the NNC (or 1385 Cable) Intertie) .I.ROSETON 345 1 (4011) N.E._GEN_SANDY PD (24062) NNC Interconnection .I.NRTHPORT 1385 (4017) NPX_1385_GEN (323591) CSC Interconnection .I.SHOREHAM138 99 (4014) NPX_GEN_CSC (323557) The Transmission Charge portion of the Emergency Energy Charge (for an hour) The Transmission charge portion of the Emergency Energy Charge to the Delivery Point for an hour shall equal the actual ancillary services costs and any transmission costs reasonably associated with the delivery of such Emergency Energy for an hour by the delivering Party to the Delivery Point pursuant to the applicable tariff of the delivering Party, as filed with and accepted by the governmental agency with jurisdiction over such tariff.