Common use of Exhibit E: MRO Funding Clause in Contracts

Exhibit E: MRO Funding. Exhibit E to the MRO Delegation Agreement includes two alternative exhibits, both of which adopt the pro forma Exhibit E, subject to deviations. Exhibit E, version 7 is based on the pro forma Exhibit E, as it was accepted by the Commission in the ERO Certification Order. 163 Exhibit E, version 7.1 is based on NERC’s compliance filing submission, subject to the following deviations: (i) deletion of “data gathering activities” as an activity to be funded through NERC; (ii) deletion of the modifier “this Exhibit E” from the section 3 requirement that NERC shall fund each Regional Entities’ costs identified in four equal quarterly payments; (iii) the addition of a new section 4, 162 See 18 C.F.R. §§ 39.1 and 39.10 (2006). See also Order No. 672, FERC Stats & Regs ¶ 31,204 at P 113. 163 Deviations from pro forma Exhibit E include the following changes to section 4 (addressing the application of penalties): (i) deletion of the provision clarifying “that the Regional Entity that initiates an investigation . . . shall receive any penalty monies that result ;” and (ii) addition of the requirement that “no financial penalties will be co- mingled between the U.S. and Canada.” In addition, MRO omits, as an activity to be funded through NERC, “necessary data gathering activities.” providing a definition of the term “Load Serving Entity” and a new section 5, providing a definition for the term “Net Energy for Load;” and (iv) the attachment, at Exhibit E version 7.2, of a list of MRO’s load serving entities.