Common use of NY-NJ PAR Target Values Clause in Contracts

NY-NJ PAR Target Values. A Target Value for flow between the NYISO and PJM shall be determined for each NY-NJ PAR based on the net interchange schedule between the Parties. These Target Values shall be used for settlement purposes as: Where: Calculated Target Value for the flow on each NY-NJ PAR For purposes of this equation, a positive value* indicates a flow from PJM to the NYISO. * The sign conventions apply to the formulas used in this Agreement. The Parties may utilize different sign conventions in their market software so long as the software produces results that are consistent with the rules set forth in this Agreement. The MW value of the net interchange schedule between PJM and NYISO over the AC tie lines distributed across each in-service NY-NJ PAR calculated as net interchange schedule times the interchange percentage. The interchange percentage for each NY-NJ PAR is listed in Table 5. If a NY-NJ PAR is out-of-service or is bypassed, or if the RTOs mutually agree that a NY-NJ PAR is incapable of facilitating interchange, the percentage of net interchange normally assigned to that NY-NJ PAR will be transferred over the western AC tie lines between the NYISO and PJM. The remaining in-service NY-NJ PARs will continue to be assigned the interchange percentages specified in Table 5. The MW value of OBF distributed across each of the in-service ABC PARs and Waldwick PARs. Either Party may establish a temporary OBF to address a reliability issue until a long-term solution to the identified reliability issue can be implemented. Any temporary OBF that is established shall be at a level that both Parties can reliably support. The Party that establishes the OBF shall: (1) explain the reliability need to the other Party; (2) describe how the OBF addresses the identified reliability need; and (3) identify the expected long-term solution to address the reliability need. The initial 400 MW OBF, effective on May 1, 2017, is expected to be reduced to zero MW by June 1, 2021. The Parties may mutually agree to modify an established OBF value that normally applies when all of the ABC PARs and Waldwick PARs are in service. Modification of the normally applied OBF value will be implemented no sooner than two years after mutual agreement on such modification has been reached, unless NYISO and PJM mutually agree to an earlier implementation date. The NYISO and PJM shall post the OBF values, in MW, normally applied to each ABC PAR and Waldwick PAR when all of the ABC PARs and Waldwick PARs are in service, on their respective websites. The NYISO and PJM shall also post the methodology used to reduce the OBF under certain outage conditions on their respective websites. The NYISO and PJM shall review the OBF MW value at least annually. The MW value of the telemetered real-time Rockland Electric Company Load to be delivered over a NY-NJ PAR shall be calculated as real-time RECo Load times the RECo Load percentage listed in Table 5. RECo Load is the portion of Orange and Rockland load that is part of PJM. The primary objective of the NY-NJ PARs is the delivery of scheduled interchange. Deliveries to serve RECo Load over the Ramapo PARs will only be permitted to the extent there is unused transfer capability on the Ramapo PARs after accounting for interchange. Subject to the foregoing limitation, when one of the Ramapo PARs is out of service the full RECo Load percentage (80%) will be applied to the in-service Ramapo PAR. The RECo Load percentage ordinarily used for each NY-NJ PAR is listed in Table 5: Table 5 PAR Name Description Interchange Percentage RECo Load Percentage 3500 RAMAPO PAR3500 16% 40%^ 4500 RAMAPO PAR4500 16% 40%^ X XXXXXXXX X0000 5% 0% F WALDWICK F2258 5% 0% O WALDWICK O2267 5% 0% A GOETHSLN BK_1N 7% 0% B FARRAGUT TR11 7% 0% C FARRAGUT TR12 7% 0% ^ Subject to the foregoing limitation, when one of the Ramapo PARs is out of service the full RECo Load Percentage (80%) will be applied to the in-service Ramapo PAR.

NY-NJ PAR Target Values. A Target Value for flow between the NYISO and PJM shall be determined for each NY-NJ PAR based on the net interchange schedule between the Parties. These Target Values shall be used for settlement purposes as: Where: Calculated Target Value for the flow on each NY-NJ PAR For purposes of this equation, a positive value* indicates a flow from PJM to the NYISO. * The sign conventions apply to the formulas used in this Agreement. The Parties may utilize different sign conventions in their market software so long as the software produces results that are consistent with the rules set forth in this Agreement. The MW value of the net interchange schedule between PJM and NYISO over the AC tie lines distributed across each in-service NY-NJ PAR calculated as net interchange schedule times the interchange percentage. The interchange percentage for each NY-NJ PAR is listed in Table 5. If a NY-NJ PAR is out-of-service or is bypassed, or if the RTOs mutually agree that a NY-NJ PAR is incapable of facilitating interchange, the percentage of net interchange normally assigned to that NY-NJ PAR will be transferred over the western AC tie lines between the NYISO and PJM. The remaining in-service NY-NJ PARs will continue to be assigned the interchange percentages specified in Table 5. The MW value of OBF distributed across each of the in-service ABC PARs and Waldwick PARs. Either Party may establish a temporary OBF to address a reliability issue until a long-term solution to the identified reliability issue can be implemented. Any temporary OBF that is established shall be at a level that both Parties can reliably support. The Party that establishes the OBF shall: (1) explain the reliability need to the other Party; (2) describe how the OBF addresses the identified reliability need; and (3) identify the expected long-term solution to address the reliability need. The initial 400 MW OBF, effective on May 1, 2017, is expected to be reduced to zero MW by June 1, 2021. The Parties may mutually agree to modify an established OBF value that normally applies when all of the ABC PARs and Waldwick PARs are in service. Modification of the normally applied OBF value will be implemented no sooner than two years after mutual agreement on such modification has been reached, unless NYISO and PJM mutually agree to an earlier implementation date. The NYISO and PJM shall post the OBF values, in MW, normally applied to each ABC PAR and Waldwick PAR when all of the ABC PARs and Waldwick PARs are in service, on their respective websites. The NYISO and PJM shall also post the methodology used to reduce the OBF under certain outage conditions on their respective websites. The NYISO and PJM shall review the OBF MW value at least annually. The MW value of the telemetered real-time Rockland Electric Company Load to be delivered over a NY-NJ PAR shall be calculated as real-time RECo Load times the RECo Load percentage listed in Table 5. RECo Load is the portion of Orange and Rockland load that is part of PJM. The primary objective of the NY-NJ PARs is the delivery of scheduled interchange. Deliveries to serve RECo Load over the Ramapo PARs will only be permitted to the extent there is unused transfer capability on the Ramapo PARs after accounting for interchange. Subject to the foregoing limitation, when one of the Ramapo PARs is out of service the full RECo Load percentage (80%) will be applied to the in-service Ramapo PAR. The RECo Load percentage ordinarily used for each NY-NJ PAR is listed in Table 5: Table 5 PAR Name Description Interchange Percentage RECo Load Percentage 3500 RAMAPO PAR3500 16% 40%^ 4500 RAMAPO PAR4500 16% 40%^ X XXXXXXXX X0000 E WALDWICK E2257 5% 0% F WALDWICK F2258 5% 0% O WALDWICK O2267 5% 0% A GOETHSLN BK_1N 7% 0% B FARRAGUT TR11 7% 0% C FARRAGUT TR12 7% 0% ^ Subject to the foregoing limitation, when one of the Ramapo PARs is out of service the full RECo Load Percentage (80%) will be applied to the in-service Ramapo PAR.

NY-NJ PAR Target Values. A Target Value for flow between the NYISO and PJM shall be determined for each NY-NY- NJ PAR based on the net interchange schedule between the Parties. These Target Values shall be used for settlement purposes as: 𝑇𝑎𝑟𝑔𝑒𝑡𝑃𝐴𝑅𝑥 = (𝐼𝑛𝑡𝑒𝑟𝑐ℎ𝑎𝑛𝑔𝑒𝐹𝑎𝑐𝑡𝑜𝑟𝑃𝐴𝑅𝑥 ) + (𝑂𝑝𝑒𝑟𝑎𝑡𝑖𝑜𝑛𝑎𝑙 𝐵𝑎𝑠𝑒 𝐹𝑙𝑜𝑤𝑃𝐴𝑅𝑥 ) + (𝑅𝐸𝐶𝑜_𝐿𝑜𝑎𝑑𝑃𝐴𝑅𝑥) Where: 𝑇𝑎𝑟𝑔𝑒𝑡𝑃𝐴𝑅𝑥 = Calculated Target Value for the flow on each NY-NJ PAR For purposes of this equation, a positive value* indicates a flow from PJM to the NYISO. * The sign conventions apply to the formulas used in this Agreement. The Parties may utilize different sign conventions in their market software so long as the software produces results that are consistent with the rules set forth in this Agreement. 𝐼𝑛𝑡𝑒𝑟𝑐ℎ𝑎𝑛𝑔𝑒𝐹𝑎𝑐𝑡𝑜𝑟𝑃𝐴𝑅𝑥 = The MW value of the net interchange schedule between PJM and NYISO over the AC tie lines distributed across each in-service NY-NJ PAR calculated as net interchange schedule times the interchange percentage. The interchange percentage for each NY-NJ PAR is listed in Table 5. If a NY-NJ PAR is out-of-service or is bypassed, or if the RTOs mutually agree that a NY-NJ PAR is incapable of facilitating interchange, the percentage of net interchange normally assigned to that NY-NJ PAR will be transferred over the western AC tie lines between the NYISO and PJM. The remaining in-service NY-NJ PARs will continue to be assigned the interchange percentages specified in Table 5. OperationalBaseFlowPARx = The MW value of OBF distributed across each of the in-in- service ABC PARs and Waldwick PARs. Either Party may establish a temporary OBF to address a reliability issue until a long-term solution to the identified reliability issue can be implemented. Any temporary OBF that is established shall be at a level that both Parties can reliably support. The Party that establishes the OBF shall: (1) explain the reliability need to the other Party; (2) describe how the OBF addresses the identified reliability need; and (3) identify the expected long-term solution to address the reliability need. The initial 400 MW OBF, effective on May 1, 2017, is expected to be reduced to zero MW by June 1, 2021. The Parties may mutually agree to modify an established OBF value that normally applies when all of the ABC PARs and Waldwick PARs are in service. Modification of the normally applied OBF value will be implemented no sooner than two years after mutual agreement on such modification has been reached, unless NYISO and PJM mutually agree to an earlier implementation date. The NYISO and PJM shall post the OBF values, in MW, normally applied to each ABC PAR and Waldwick PAR when all of the ABC PARs and Waldwick PARs are in service, on their respective websites. The NYISO and PJM shall also post the methodology used to reduce the OBF under certain outage conditions on their respective websites. The NYISO and PJM shall review the OBF MW value at least annually. The MW value of the telemetered real-time Rockland Electric Company Load to be delivered over a NY-NJ PAR shall be calculated as real-time RECo Load times the RECo Load percentage listed in Table 5. RECo Load is the portion of Orange and Rockland load that is part of PJM. The primary objective of the NY-NJ PARs is the delivery of scheduled interchange. Deliveries to serve RECo Load over the Ramapo PARs will only be permitted to the extent there is unused transfer capability on the Ramapo PARs after accounting for interchange. Subject to the foregoing limitation, when one of the Ramapo PARs is out of service the full RECo Load percentage (80%) will be applied to the in-service Ramapo PAR. The RECo Load percentage ordinarily used for each NY-NJ PAR is listed in Table 5: Table 5 PAR Name Description Interchange Percentage RECo Load Percentage 3500 RAMAPO PAR3500 16% 40%^ 4500 RAMAPO PAR4500 16% 40%^ X XXXXXXXX X0000 5% 0% F WALDWICK F2258 5% 0% O WALDWICK O2267 5% 0% A GOETHSLN BK_1N 7% 0% B FARRAGUT TR11 7% 0% C FARRAGUT TR12 7% 0% ^ Subject to the foregoing limitation, when one of the Ramapo PARs is out of service the full RECo Load Percentage (80%) will be applied to the in-service Ramapo PAR.:

NY-NJ PAR Target Values. A Target Value for flow between the NYISO and PJM shall be determined for each NY-NY- NJ PAR based on the net interchange schedule between the Parties. These Target Values shall be used for settlement purposes as: = (ℎ ) + ( ) + (_) Where: = Calculated Target Value for the flow on each NY-NJ PAR For purposes of this equation, a positive value* indicates a flow from PJM to the NYISO. * The sign conventions apply to the formulas used in this Agreement. The Parties may utilize different sign conventions in their market software so long as the software produces results that are consistent with the rules set forth in this Agreement. ℎ = The MW value of the net interchange schedule between PJM and NYISO over the AC tie lines distributed across each in-service NY-NJ PAR calculated as net interchange schedule times the interchange percentage. The interchange percentage for each NY-NJ PAR is listed in Table 5. If a NY-NJ PAR is out-of-service or is bypassed, or if the RTOs mutually agree that a NY-NJ PAR is incapable of facilitating interchange, the percentage of net interchange normally assigned to that NY-NJ PAR will be transferred over the western AC tie lines between the NYISO and PJM. The remaining in-service NY-NJ PARs will continue to be assigned the interchange percentages specified in Table 5. OperationalBaseFlowPARx = The MW value of OBF distributed across each of the in-in- service ABC PARs and Waldwick PARs. Either Party may establish a temporary OBF to address a reliability issue until a long-term solution to the identified reliability issue can be implemented. Any temporary OBF that is established shall be at a level that both Parties can reliably support. The Party that establishes the OBF shall: (1) explain the reliability need to the other Party; (2) describe how the OBF addresses the identified reliability need; and (3) identify the expected long-term solution to address the reliability need. The initial 400 MW OBF, effective on May 1, 2017, is expected to be reduced to zero MW by June 1, 2021. The Parties may mutually agree to modify an established OBF value that normally applies when all of the ABC PARs and Waldwick PARs are in service. Modification of the normally applied OBF value will be implemented no sooner than two years after mutual agreement on such modification has been reached, unless NYISO and PJM mutually agree to an earlier implementation date. The NYISO and PJM shall post the OBF values, in MW, normally applied to each ABC PAR and Waldwick PAR when all of the ABC PARs and Waldwick PARs are in service, on their respective websites. The NYISO and PJM shall also post the methodology used to reduce the OBF under certain outage conditions on their respective websites. The NYISO and PJM shall review the OBF MW value at least annually. The MW value of the telemetered real-time Rockland Electric Company Load to be delivered over a NY-NJ PAR shall be calculated as real-time RECo Load times the RECo Load percentage listed in Table 5. RECo Load is the portion of Orange and Rockland load that is part of PJM. The primary objective of the NY-NJ PARs is the delivery of scheduled interchange. Deliveries to serve RECo Load over the Ramapo PARs will only be permitted to the extent there is unused transfer capability on the Ramapo PARs after accounting for interchange. Subject to the foregoing limitation, when one of the Ramapo PARs is out of service the full RECo Load percentage (80%) will be applied to the in-service Ramapo PAR. The RECo Load percentage ordinarily used for each NY-NJ PAR is listed in Table 5: Table 5 PAR Name Description Interchange Percentage RECo Load Percentage 3500 RAMAPO PAR3500 16% 40%^ 4500 RAMAPO PAR4500 16% 40%^ X XXXXXXXX X0000 5% 0% F WALDWICK F2258 5% 0% O WALDWICK O2267 5% 0% A GOETHSLN BK_1N 7% 0% B FARRAGUT TR11 7% 0% C FARRAGUT TR12 7% 0% ^ Subject to the foregoing limitation, when one of the Ramapo PARs is out of service the full RECo Load Percentage (80%) will be applied to the in-service Ramapo PAR.:

NY-NJ PAR Target Values. A Target Value for flow between the NYISO and PJM shall be determined for each NY-NY- NJ PAR based on the net interchange schedule between the Parties. These Target Values shall be used for settlement purposes as: 𝑇𝑎𝑟𝑔𝑒𝑡𝑃𝐴𝑅𝑥 = (𝐼𝑛𝑡𝑒𝑟𝑐ℎ𝑎𝑛𝑔𝑒𝐹𝑎𝑐𝑡𝑜𝑟𝑃𝐴𝑅𝑥 ) + (𝑂𝑝𝑒𝑟𝑎𝑡𝑖𝑜𝑛𝑎𝑙 𝐵𝑎𝑠𝑒 𝐹𝑙𝑜𝑤𝑃𝐴𝑅𝑥 ) + (𝑅𝐸𝐶𝑜_𝐿𝑜𝑎𝑑𝑃𝐴𝑅𝑥 ) Where: 𝑇𝑎𝑟𝑔𝑒𝑡𝑃𝐴𝑅𝑥 = Calculated Target Value for the flow on each NY-NJ PAR For purposes of this equation, a positive value* indicates a flow from PJM to the NYISO. * The sign conventions apply to the formulas used in this Agreement. The Parties may utilize different sign conventions in their market software so long as the software produces results that are consistent with the rules set forth in this Agreement. 𝐼𝑛𝑡𝑒𝑟𝑐ℎ𝑎𝑛𝑔𝑒𝐹𝑎𝑐𝑡𝑜𝑟𝑃𝐴𝑅𝑥 = The MW value of the net interchange schedule between PJM and NYISO over the AC tie lines distributed across each in-service NY-NJ PAR calculated as net interchange schedule times the interchange percentage. The interchange percentage for each NY-NJ PAR is listed in Table 5. If a NY-NJ PAR is out-of-service or is bypassed, or if the RTOs mutually agree that a NY-NJ PAR is incapable of facilitating interchange, the percentage of net interchange normally assigned to that NY-NJ PAR will be transferred over the western AC tie lines between the NYISO and PJM. The remaining in-service NY-NJ PARs will continue to be assigned the interchange percentages specified in Table 5. OperationalBaseFlowPARx = The MW value of OBF distributed across each of the in-in- service ABC PARs and Waldwick PARs. Either Party may establish a temporary OBF to address a reliability issue until a long-term solution to the identified reliability issue can be implemented. Any temporary OBF that is established shall be at a level that both Parties can reliably support. The Party that establishes the OBF shall: (1) explain the reliability need to the other Party; (2) describe how the OBF addresses the identified reliability need; and (3) identify the expected long-term solution to address the reliability need. The initial 400 MW OBF, effective on May 1, 2017, is expected to be reduced to zero MW by June 1, 2021. The Parties may mutually agree to modify an established OBF value that normally applies when all of the ABC PARs and Waldwick PARs are in service. Modification of the normally applied OBF value will be implemented no sooner than two years after mutual agreement on such modification has been reached, unless NYISO and PJM mutually agree to an earlier implementation date. The NYISO and PJM shall post the OBF values, in MW, normally applied to each ABC PAR and Waldwick PAR when all of the ABC PARs and Waldwick PARs are in service, on their respective websites. The NYISO and PJM shall also post the methodology used to reduce the OBF under certain outage conditions on their respective websites. The NYISO and PJM shall review the OBF MW value at least annually. The MW value of the telemetered real-time Rockland Electric Company Load to be delivered over a NY-NJ PAR shall be calculated as real-time RECo Load times the RECo Load percentage listed in Table 5. RECo Load is the portion of Orange and Rockland load that is part of PJM. The primary objective of the NY-NJ PARs is the delivery of scheduled interchange. Deliveries to serve RECo Load over the Ramapo PARs will only be permitted to the extent there is unused transfer capability on the Ramapo PARs after accounting for interchange. Subject to the foregoing limitation, when one of the Ramapo PARs is out of service the full RECo Load percentage (80%) will be applied to the in-service Ramapo PAR. The RECo Load percentage ordinarily used for each NY-NJ PAR is listed in Table 5: Table 5 PAR Name Description Interchange Percentage RECo Load Percentage 3500 RAMAPO PAR3500 16% 40%^ 4500 RAMAPO PAR4500 16% 40%^ X XXXXXXXX X0000 5% 0% F WALDWICK F2258 5% 0% O WALDWICK O2267 5% 0% A GOETHSLN BK_1N 7% 0% B FARRAGUT TR11 7% 0% C FARRAGUT TR12 7% 0% ^ Subject to the foregoing limitation, when one of the Ramapo PARs is out of service the full RECo Load Percentage (80%) will be applied to the in-service Ramapo PAR.:

NY-NJ PAR Target Values. A Target Value for flow between the NYISO and PJM shall be determined for each NY-NY- NJ PAR based on the net interchange schedule between the Parties. These Target Values shall be used for settlement purposes as: Where: Calculated Target Value for the flow on each NY-NJ PAR For purposes of this equation, a positive value* indicates a flow from PJM to the NYISO. * The sign conventions apply to the formulas used in this Agreement. The Parties may utilize different sign conventions in their market software so long as the software produces results that are consistent with the rules set forth in this Agreement. The MW value of the net interchange schedule between PJM and NYISO over the AC tie lines distributed across each in-service NY-NJ PAR calculated as net interchange schedule times the interchange percentage. The interchange percentage for each NY-NJ PAR is listed in Table 5. If a NY-NJ PAR is out-of-service or is bypassed, or if the RTOs mutually agree that a NY-NJ PAR is incapable of facilitating interchange, the percentage of net interchange normally assigned to that NY-NJ PAR will be transferred over the western AC tie lines between the NYISO and PJM. The remaining in-service NY-NJ PARs will continue to be assigned the interchange percentages specified in Table 5. The MW value of OBF distributed across each of the in-in- service ABC PARs and Waldwick PARs. Either Party may establish a temporary OBF to address a reliability issue until a long-term solution to the identified reliability issue can be implemented. Any temporary OBF that is established shall be at a level that both Parties can reliably support. The Party that establishes the OBF shall: (1) explain the reliability need to the other Party; (2) describe how the OBF addresses the identified reliability need; and (3) identify the expected long-term solution to address the reliability need. The initial 400 MW OBF, effective on May 1, 2017, is expected to be reduced to zero MW by June 1, 2021. The Parties may mutually agree to modify an established OBF value that normally applies when all of the ABC PARs and Waldwick PARs are in service. Modification of the normally applied OBF value will be implemented no sooner than two years after mutual agreement on such modification has been reached, unless NYISO and PJM mutually agree to an earlier implementation date. The NYISO and PJM shall post the OBF values, in MW, normally applied to each ABC PAR and Waldwick PAR when all of the ABC PARs and Waldwick PARs are in service, on their respective websites. The NYISO and PJM shall also post the methodology used to reduce the OBF under certain outage conditions on their respective websites. The NYISO and PJM shall review the OBF MW value at least annually. The MW value of the telemetered real-time Rockland Electric Company Load to be delivered over a NY-NJ PAR shall be calculated as real-time RECo Load times the RECo Load percentage listed in Table 5. RECo Load is the portion of Orange and Rockland load that is part of PJM. The primary objective of the NY-NJ PARs is the delivery of scheduled interchange. Deliveries to serve RECo Load over the Ramapo PARs will only be permitted to the extent there is unused transfer capability on the Ramapo PARs after accounting for interchange. Subject to the foregoing limitation, when one of the Ramapo PARs is out of service the full RECo Load percentage (80%) will be applied to the in-service Ramapo PAR. The RECo Load percentage ordinarily used for each NY-NJ PAR is listed in Table 5: Table 5 PAR Name Description Interchange Percentage RECo Load Percentage 3500 RAMAPO PAR3500 16% 40%^ 4500 RAMAPO PAR4500 16% 40%^ X XXXXXXXX X0000 5% 0% F WALDWICK F2258 5% 0% O WALDWICK O2267 5% 0% A GOETHSLN BK_1N 7% 0% B FARRAGUT TR11 7% 0% C FARRAGUT TR12 7% 0% ^ Subject to the foregoing limitation, when one of the Ramapo PARs is out of service the full RECo Load Percentage (80%) will be applied to the in-service Ramapo PAR.: