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) The Energy Charge portion of the Emergency Energy Charge for an hour = (Emergency Energy supplied in the hour in megawatthour(s) (“MWh”)) * (Delivering Party’s Cost of Energy in $/MWh) * 110% In the case of the NYISO as delivering Party, the 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 of the Emergency Energy delivery. 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 hour of the Emergency Energy delivery. 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.

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) The Energy Charge portion of the Emergency Energy Charge for an hour = (Emergency Energy supplied in the hour in megawatthour(s) (“MWh”)) * (Delivering Party’s Cost of Energy in $/MWh) * 110% In the case of the NYISO as delivering Party, the 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 of the Emergency Energy delivery. 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 hour of the Emergency Energy delivery. Issued by: Xxxxxxx X. Xxxxxxx, President Effective: November 15, 2008 Issued on: November 13, 2008 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.