Common use of Outages Clause in Contracts

Outages. The NYISO and PJM will identify critical outages that may impact redispatch costs incurred for the delivery of energy, under the 600/400 MW transactions. Identified outages may have the following consequences: The outage of any A, B, C, J, or K facility will result in the NY-DAE, PJM-DAE, and/or RTE (as appropriate) being limited to a value no greater than the remaining thermal capability of the most limiting of the ABC interface or the JK interface. The remaining thermal capability of either the ABC interface or the JK interface may be limited by other facilities directly in series with the A, B, C, J, or K lines. 1. It is not anticipated that one primary facility outage will preclude PJM from providing redispatch for the 600 MW or 400 MW transaction. However, combinations of two or more outages of the facilities, listed on the PJM OASIS or web page, could preclude PJM from accommodating all or part of the delivery, even with redispatch. In this case, PJM will provide notification to NYISO. PJM will provide notification7 of all outages by posting these outages (transmission only) on the PJM OASIS or web site. NYISO will provide notification of all outages by posting these outages (transmission only) on the NYISO OASIS or web site. PJM and the NYISO will review and revise, as necessary, the list of primary and secondary facilities on an annual basis. 7 PJM can also provide the option of automated email outage notification through the PJM eDart tool. The following shall be the formula for calculating Day-Ahead Market (DAM) and Real- Time Market (RTM) desired flows: NYDFABC = [NY-DAE] + [A]*[PJM-NYISO DAM Schedule] + [B] *[OH-NYISO DAM Schedule] + [C] *[West-PJM DAM Schedule] + [D]*[DAM Lake Erie Circulation] NYDFJK = [NY-DAE] - [A]*[PJM-NYISO DAM Schedule] - [B] *[OH-NYISO DAM Schedule] - [C] *[West-PJM DAM Schedule] - [D]*[ DAM Lake Erie Circulation] PJMDFABC = [PJM-DAE] + [A]*[PJM-NYISO DAM Schedule] + [B] *[OH-NYISO DAM Schedule] + [C] *[West-PJM DAM Schedule] + [D]*[ DAM Lake Erie Circulation] PJMDFJK = [PJM-DAE] - [A]*[PJM-NYISO DAM Schedule] - [B] *[OH-NYISO DAM Schedule] - [C] *[West-PJM DAM Schedule] - [D]*[ DAM Lake Erie Circulation] RTMDFABC = [RTE] + [A]*[PJM-NYISO RTM Schedule] + [B] *[OH-NYISO RTM Schedule] + [C] *[West-PJM RTM Schedule] + [D]*[RTM Lake Erie Circulation] + Auto Correction Factor RTMDFJK = [RTE] - [A]*[PJM-NYISO RTM Schedule] - [B] *[OH-NYISO RTM Schedule] - [C] *[West-PJM RTM Schedule] - [D]*[RTM Lake Erie Circulation] + Auto Correction Factor • The DAM and RTM desired flows will be limited to the facility rating. • The Auto Correction Factor component of the desired flow is the on-peak and off- peak aggregations of MW deviation in a calendar day to be included in a subsequent day’s on-peak or off-peak period as applicable and agreed upon by PJM and NYISO. The Auto Correction Factor “pays-back” MW in kind during a subsequent day on-peak or off-peak period as agreed upon by NYISO and PJM. On-peak aggregation shall be paid back in a subsequent day on-peak period. Off- peak aggregation shall be paid back in a subsequent day off-peak period. • The Auto Correction Factor shall not apply to under-deliveries over the A, B, and C Feeders that occur during the first hour following a thunderstorm alert. • The Auto Correction Factor shall be the sole and exclusive remedy available to any person or entity for any under- or over-delivery of power pursuant to the 600/400 MW transactions, unless such under- or over-delivery is the result of gross negligence or intentional misconduct. A Up to 13 % Adjustment for NYISO-PJM Schedule B 0 % Adjustment for OH-NYISO Schedule C 0 % Adjustment for West-PJM Schedules D 0 % Adjustment for Lake Erie Circulation Other impacts will be part of the real time bandwidth operation – not the desired flow calculation. These impacts will be reviewed by PJM and the NYISO on an annual basis. Except as provided in the last sentence of this paragraph with regard to distribution factor A, the above distribution factors (A, B, C, D) will be used in the calculation unless otherwise agreed by PJM and the NYISO based upon operating analysis conducted in response to major topology changes or outages referenced in Appendix 2. Such modifications will be posted by PJM and the NYISO on the PJM and NY OASIS sites or web sites. Distribution factor A will apply only when steps taken by PJM and NYISO to coordinate tap changes on the PARs to control power flow on transmission lines between New York and New Jersey are unable to maintain the desired flow. If necessary, in order to maintain the desired flow after applying distribution factor A, PJM and NYISO may issue TLRs concerning third-party non-firm transmission service.

Outages. The NYISO and PJM will identify critical outages that may impact redispatch costs incurred for the delivery of energy, under the 600/400 MW transactions. Identified outages may have the following consequences: The outage of any A, B, C, J, or K facility will result in the NY-DAE, PJM-DAE, and/or RTE (as appropriate) being limited to a value no greater than the remaining thermal capability of the most limiting of the ABC interface or the JK interface. The remaining thermal capability of either the ABC interface or the JK interface may be limited by other facilities directly in series with the A, B, C, J, or K lines. 1. It is not anticipated that one primary facility outage will preclude PJM from providing redispatch for the 600 MW or 400 MW transaction. However, combinations of two or more outages of the facilities, listed on the PJM OASIS or web page, could preclude PJM from accommodating all or part of the delivery, even with redispatch. In this case, PJM will provide notification to NYISO. PJM will provide notification7 notification5 of all outages by posting these outages (transmission only) on the PJM OASIS or web site. NYISO will provide notification of all outages by posting these outages (transmission only) on the NYISO OASIS or web site. PJM and the NYISO will review and revise, as necessary, the list of primary and secondary facilities on an annual basis. 7 5 PJM can also provide the option of automated email outage notification through the PJM eDart tool. The following shall be the formula for calculating Day-Ahead Market (DAM) and Real- Time Market (RTM) desired flows: NYDFABC = [NY-DAE] + [A]*[PJM-NYISO DAM Schedule] + [B] *[OH-NYISO DAM Schedule] + [C] *[West-PJM DAM Schedule] + [D]*[DAM Lake Erie Circulation] NYDFJK = [NY-DAE] - [A]*[PJM-NYISO DAM Schedule] - [B] *[OH-NYISO DAM Schedule] - [C] *[West-PJM DAM Schedule] - [D]*[ DAM Lake Erie Circulation] PJMDFABC = [PJM-DAE] + [A]*[PJM-NYISO DAM Schedule] + [B] *[OH-NYISO DAM Schedule] + [C] *[West-PJM DAM Schedule] + [D]*[ DAM Lake Erie Circulation] PJMDFJK = [PJM-DAE] - [A]*[PJM-NYISO DAM Schedule] - [B] *[OH-NYISO DAM Schedule] - [C] *[West-PJM DAM Schedule] - [D]*[ DAM Lake Erie Circulation] RTMDFABC = [RTE] + [A]*[PJM-NYISO RTM Schedule] + [B] *[OH-NYISO RTM Schedule] + [C] *[West-PJM RTM Schedule] + [D]*[RTM Lake Erie Circulation] + Auto Correction Factor RTMDFJK = [RTE] - [A]*[PJM-NYISO RTM Schedule] - [B] *[OH-NYISO RTM Schedule] - [C] *[West-PJM RTM Schedule] - [D]*[RTM Lake Erie Circulation] + Auto Correction Factor • The DAM and RTM desired flows will be limited to the facility rating. • The Auto Correction Factor component of the desired flow is the on-peak and off- peak aggregations of MW deviation in a calendar day to be included in a subsequent day’s on-peak or off-peak period as applicable and agreed upon by PJM and NYISO. The Auto Correction Factor “pays-back” MW in kind during a subsequent day on-peak or off-peak period as agreed upon by NYISO and PJM. On-peak aggregation shall be paid back in a subsequent day on-peak period. Off- peak aggregation shall be paid back in a subsequent day off-peak period. • The Auto Correction Factor shall not apply to under-deliveries over the A, B, and C Feeders that occur during the first hour following a thunderstorm alert. • The Auto Correction Factor shall be the sole and exclusive remedy available to any person or entity for any under- or over-delivery of power pursuant to the 600/400 MW transactions, unless such under- or over-delivery is the result of gross negligence or intentional misconduct. A Up to 13 % Adjustment for NYISO-PJM Schedule B 0 % Adjustment for OH-NYISO Schedule C 0 % Adjustment for West-PJM Schedules D 0 % Adjustment for Lake Erie Circulation Other impacts will be part of the real time bandwidth operation – not the desired flow calculation. These impacts will be reviewed by PJM and the NYISO on an annual basis. Except as provided in the last sentence of this paragraph with regard to distribution factor A, the above distribution factors (A, B, C, D) will be used in the calculation unless otherwise agreed by PJM and the NYISO based upon operating analysis conducted in response to major topology changes or outages referenced in Appendix 2. Such modifications will be posted by PJM and the NYISO on the PJM and NY OASIS sites or web sites. Distribution factor A will apply only when steps taken by PJM and NYISO XXXXX to coordinate tap changes on the PARs to control power flow on transmission lines between New York and New Jersey are unable to maintain the desired flow. If necessary, in order to maintain the desired flow after applying distribution factor A, PJM and NYISO may issue TLRs concerning third-party non-firm transmission service.

Outages. The NYISO and PJM will identify critical outages that may impact redispatch costs incurred for the delivery of energy, under the 600/400 MW transactions. Identified outages may have the following consequences: The outage of any A, B, C, J, or K facility will result in the NY-DAE, PJM-DAE, and/or RTE (as appropriate) being limited to a value no greater than the remaining thermal capability of the most limiting of the ABC interface or the JK interface. The remaining thermal capability of either the ABC interface or the JK interface may be limited by other facilities directly in series with the A, B, C, J, or K lines. 1. It is not anticipated that one primary facility outage will preclude PJM from providing redispatch for the 600 MW or 400 MW transaction. However, combinations of two or more outages of the facilities, listed on the PJM OASIS or web page, could preclude PJM from accommodating all or part of the delivery, even with redispatch. In this case, PJM will provide notification to NYISO. PJM will provide notification7 notification5 of all outages by posting these outages (transmission only) on the PJM OASIS or web site. NYISO will provide notification of all outages by posting these outages (transmission only) on the NYISO OASIS or web site. PJM and the NYISO will review and revise, as necessary, the list of primary and secondary facilities on an annual basis. 7 5 PJM can also provide the option of automated email outage notification through the PJM eDart tool. The following shall be the formula for calculating Day-Ahead Market (DAM) and Real- Real-Time Market (RTM) desired flows: NYDFABC = [NY-DAE] + [A]*[PJM-NYISO DAM Schedule] + [B] *[OH-NYISO DAM Schedule] + [C] *[West-PJM DAM Schedule] + [D]*[DAM Lake Erie Circulation] NYDFJK = [NY-DAE] - [A]*[PJM-NYISO DAM Schedule] - [B] *[OH-NYISO DAM Schedule] - [C] *[West-PJM DAM Schedule] - [D]*[ DAM Lake Erie Circulation] PJMDFABC = [PJM-DAE] + [A]*[PJM-NYISO DAM Schedule] + [B] *[OH-NYISO DAM Schedule] + [C] *[West-PJM DAM Schedule] + [D]*[ DAM Lake Erie Circulation] PJMDFJK = [PJM-DAE] - [A]*[PJM-NYISO DAM Schedule] - [B] *[OH-NYISO DAM Schedule] - [C] *[West-PJM DAM Schedule] - [D]*[ DAM Lake Erie Circulation] RTMDFABC = [RTE] + [A]*[PJM-NYISO RTM Schedule] + [B] *[OH-NYISO RTM Schedule] + [C] *[West-PJM RTM Schedule] + [D]*[RTM Lake Erie Circulation] + Auto Correction Factor RTMDFJK = [RTE] - [A]*[PJM-NYISO RTM Schedule] - [B] *[OH-NYISO RTM Schedule] - [C] *[West-PJM RTM Schedule] - [D]*[RTM Lake Erie Circulation] + Auto Correction Factor • The DAM and RTM desired flows will be limited to the facility rating. • The Auto Correction Factor component of the desired flow is the on-peak and off- peak aggregations of MW deviation in a calendar day to be included in a subsequent day’s on-peak or off-peak period as applicable and agreed upon by PJM and NYISO. The Auto Correction Factor “pays-back” MW in kind during a subsequent day on-peak or off-peak period as agreed upon by NYISO and PJM. On-peak aggregation shall be paid back in a subsequent day on-peak period. Off- Off-peak aggregation shall be paid back in a subsequent day off-peak period. • The Auto Correction Factor shall not apply to under-deliveries over the A, B, and C Feeders that occur during the first hour following a thunderstorm alert. • The Auto Correction Factor shall be the sole and exclusive remedy available to any person or entity for any under- or over-delivery of power pursuant to the 600/400 MW transactions, unless such under- or over-delivery is the result of gross negligence or intentional misconduct. A Up to 13 % Adjustment for NYISO-PJM Schedule B 0 % Adjustment for OH-NYISO Schedule C 0 % Adjustment for West-PJM Schedules D 0 % Adjustment for Lake Erie Circulation Other impacts will be part of the real time bandwidth operation – not the desired flow calculation. These impacts will be reviewed by PJM and the NYISO on an annual basis. Except as provided in the last sentence of this paragraph with regard to distribution factor A, the above distribution factors (A, B, C, D) will be used in the calculation unless otherwise agreed by PJM and the NYISO based upon operating analysis conducted in response to major topology changes or outages referenced in Appendix 2. Such modifications will be posted by PJM and the NYISO on the PJM and NY OASIS sites or web sites. Distribution factor A will apply only when steps taken by PJM and NYISO to coordinate tap changes on the PARs to control power flow on transmission lines between New York and New Jersey are unable to maintain the desired flow. If necessary, in order to maintain the desired flow after applying distribution factor A, PJM and NYISO may issue TLRs concerning third-party non-firm transmission service.

Outages. The NYISO and PJM will identify critical outages that may impact redispatch costs incurred for the delivery of energy, under the 600/400 MW transactions. Identified outages may have the following consequences: The outage of any A, B, C, J, or K facility will result in the NY-DAE, PJM-DAE, and/or RTE (as appropriate) being limited to a value no greater than the remaining thermal capability of the most limiting of the ABC interface or the JK interface. The remaining thermal capability of either the ABC interface or the JK interface may be limited by other facilities directly in series with the A, B, C, J, or K lines. 1. It is not anticipated that one primary facility outage will preclude PJM from providing redispatch for the 600 MW or 400 MW transaction. However, combinations of two or more outages of the facilities, listed on the PJM OASIS or web page, could preclude PJM from accommodating all or part of the delivery, even with redispatch. In this case, PJM will provide notification to NYISO. PJM will provide notification7 notification6 of all outages by posting these outages (transmission only) on the PJM OASIS or web site. NYISO will provide notification of all outages by posting these outages (transmission only) on the NYISO OASIS or web site. PJM and the NYISO will review and revise, as necessary, the list of primary and secondary facilities on an annual basis. 7 6 PJM can also provide the option of automated email outage notification through the PJM eDart tool. Appendix 3 - The Day-Ahead Market and Real-Time Market - Desired Flow Calculation‌ The following shall be the formula for calculating Day-Ahead Market (DAM) and Real- Time Market (RTM) desired flows: NYDFABC = [NY-DAE] + [A]*[PJM-NYISO DAM Schedule] + [B] *[OH-NYISO DAM Schedule] + [C] *[West-PJM DAM Schedule] + [D]*[DAM Lake Erie Circulation] NYDFJK = [NY-DAE] - [A]*[PJM-NYISO DAM Schedule] - [B] *[OH-NYISO DAM Schedule] - [C] *[West-PJM DAM Schedule] - [D]*[ DAM Lake Erie Circulation] PJMDFABC = [PJM-DAE] + [A]*[PJM-NYISO DAM Schedule] + [B] *[OH-NYISO DAM Schedule] + [C] *[West-PJM DAM Schedule] + [D]*[ DAM Lake Erie Circulation] PJMDFJK = [PJM-DAE] - [A]*[PJM-NYISO DAM Schedule] - [B] *[OH-NYISO DAM Schedule] - [C] *[West-PJM DAM Schedule] - [D]*[ DAM Lake Erie Circulation] RTMDFABC = [RTE] + [A]*[PJM-NYISO RTM Schedule] + [B] *[OH-NYISO RTM Schedule] + [C] *[West-PJM RTM Schedule] + [D]*[RTM Lake Erie Circulation] + Auto Correction Factor RTMDFJK = [RTE] - [A]*[PJM-NYISO RTM Schedule] - [B] *[OH-NYISO RTM Schedule] - [C] *[West-PJM RTM Schedule] - [D]*[RTM Lake Erie Circulation] + Auto Correction Factor • The DAM and RTM desired flows will be limited to the facility rating. • The Auto Correction Factor component of the desired flow is the on-peak and off- peak aggregations of MW deviation in a calendar day to be included in a subsequent day’s on-peak or off-peak period as applicable and agreed upon by PJM and NYISO. The Auto Correction Factor “pays-back” MW in kind during a subsequent day on-peak or off-peak period as agreed upon by NYISO and PJM. On-peak aggregation shall be paid back in a subsequent day on-peak period. Off- peak aggregation shall be paid back in a subsequent day off-peak period. • The Auto Correction Factor shall not apply to under-deliveries over the A, B, and C Feeders that occur during the first hour following a thunderstorm alert. • The Auto Correction Factor shall be the sole and exclusive remedy available to any person or entity for any under- or over-delivery of power pursuant to the 600/400 MW transactions, unless such under- or over-delivery is the result of gross negligence or intentional misconduct. A Up to 13 % Adjustment for NYISO-PJM Schedule B 0 % Adjustment for OH-NYISO Schedule C 0 % Adjustment for West-PJM Schedules D 0 % Adjustment for Lake Erie Circulation Other impacts will be part of the real time bandwidth operation – not the desired flow calculation. These impacts will be reviewed by PJM and the NYISO on an annual basis. Except as provided in the last sentence of this paragraph with regard to distribution factor A, the above distribution factors (A, B, C, D) will be used in the calculation unless otherwise agreed by PJM and the NYISO based upon operating analysis conducted in response to major topology changes or outages referenced in Appendix 2. Such modifications will be posted by PJM and the NYISO on the PJM and NY OASIS sites or web sites. Distribution factor A will apply only when steps taken by PJM and NYISO XXXXX to coordinate tap changes on the PARs to control power flow on transmission lines between New York and New Jersey are unable to maintain the desired flow. If necessary, in order to maintain the desired flow after applying distribution factor A, PJM and NYISO may issue TLRs concerning third-party non-firm transmission service.

Outages. The NYISO and PJM will identify critical outages that may impact redispatch costs incurred for the delivery of energy, under the 600/400 MW transactions. Identified outages may have the following consequences: The outage of any A, B, C, J, or K facility will result in the NY-DAE, PJM-DAE, and/or RTE (as appropriate) being limited to a value no greater than the remaining thermal capability of the most limiting of the ABC interface or the JK interface. The remaining thermal capability of either the ABC interface or the JK interface may be limited by other facilities directly in series with the A, B, C, J, or K lines. 1. It is not anticipated that one primary facility outage will preclude PJM from providing redispatch for the 600 MW or 400 MW transaction. However, combinations of two or more outages of the facilities, listed on the PJM OASIS or web page, could preclude PJM from accommodating all or part of the delivery, even with redispatch. In this case, PJM will provide notification to NYISO. PJM will provide notification7 notification5 of all outages by posting these outages (transmission only) on the PJM OASIS or web site. NYISO will provide notification of all outages by posting these outages (transmission only) on the NYISO OASIS or web site. PJM and the NYISO will review and revise, as necessary, the list of primary and secondary facilities on an annual basis. 7 5 PJM can also provide the option of automated email outage notification through the PJM eDart tool. The following shall be the formula for calculating Day-Ahead Market (DAM) and Real- Time Market (RTM) desired flows: NYDFABC = [NY-DAE] + [A]*[PJM-NYISO DAM Schedule] + [B] *[OH-NYISO DAM Schedule] + [C] *[West-PJM DAM Schedule] + [D]*[DAM Lake Erie Circulation] NYDFJK = [NY-DAE] - [A]*[PJM-NYISO DAM Schedule] - [B] *[OH-NYISO DAM Schedule] - [C] *[West-PJM DAM Schedule] - [D]*[ DAM Lake Erie Circulation] PJMDFABC = [PJM-DAE] + [A]*[PJM-NYISO DAM Schedule] + [B] *[OH-NYISO DAM Schedule] + [C] *[West-PJM DAM Schedule] + [D]*[ DAM Lake Erie Circulation] PJMDFJK = [PJM-DAE] - [A]*[PJM-NYISO DAM Schedule] - [B] *[OH-NYISO DAM Schedule] - [C] *[West-PJM DAM Schedule] - [D]*[ DAM Lake Erie Circulation] RTMDFABC = [RTE] + [A]*[PJM-NYISO RTM Schedule] + [B] *[OH-NYISO RTM Schedule] + [C] *[West-PJM RTM Schedule] + [D]*[RTM Lake Erie Circulation] + Auto Correction Factor RTMDFJK = [RTE] - [A]*[PJM-NYISO RTM Schedule] - [B] *[OH-NYISO RTM Schedule] - [C] *[West-PJM RTM Schedule] - [D]*[RTM Lake Erie Circulation] + Auto Correction Factor • The DAM and RTM desired flows will be limited to the facility rating. • The Auto Correction Factor component of the desired flow is the on-peak and off- peak aggregations of MW deviation in a calendar day to be included in a subsequent day’s on-peak or off-peak period as applicable and agreed upon by PJM and NYISO. The Auto Correction Factor “pays-back” MW in kind during a subsequent day on-peak or off-peak period as agreed upon by NYISO and PJM. On-peak aggregation shall be paid back in a subsequent day on-peak period. Off- peak aggregation shall be paid back in a subsequent day off-peak period. • The Auto Correction Factor shall not apply to under-deliveries over the A, B, and C Feeders that occur during the first hour following a thunderstorm alert. • The Auto Correction Factor shall be the sole and exclusive remedy available to any person or entity for any under- or over-delivery of power pursuant to the 600/400 MW transactions, unless such under- or over-delivery is the result of gross negligence or intentional misconduct. A Up to 13 % Adjustment for NYISO-PJM Schedule B 0 % Adjustment for OH-NYISO Schedule C 0 % Adjustment for West-PJM Schedules D 0 % Adjustment for Lake Erie Circulation Other impacts will be part of the real time bandwidth operation – not the desired flow calculation. These impacts will be reviewed by PJM and the NYISO on an annual basis. Except as provided in the last sentence of this paragraph with regard to distribution factor A, the above distribution factors (A, B, C, D) will be used in the calculation unless otherwise agreed by PJM and the NYISO based upon operating analysis conducted in response to major topology changes or outages referenced in Appendix 2. Such modifications will be posted by PJM and the NYISO on the PJM and NY OASIS sites or web sites. Distribution factor A will apply only when steps taken by PJM and NYISO XXXXX to coordinate tap changes on the PARs to control power flow on transmission lines between New York and New Jersey are unable to maintain the desired flow. If necessary, in order to maintain the desired flow after applying distribution factor A, PJM and NYISO may issue TLRs concerning third-party non-firm transmission service.

Outages. The NYISO and PJM will identify critical outages that may impact redispatch costs incurred for the delivery of energy, under the 600/400 MW transactions. Identified outages may have the following consequences: The outage of any A, B, C, J, or K facility will result in the NY-DAE, PJM-DAE, and/or RTE (as appropriate) being limited to a value no greater than the remaining thermal capability of the most limiting of the ABC interface or the JK interface. The remaining thermal capability of either the ABC interface or the JK interface may be limited by other facilities directly in series with the A, B, C, J, or K lines. 1. It is not anticipated that one primary facility outage will preclude PJM from providing redispatch for the 600 MW or 400 MW transaction. However, combinations of two or more outages of the facilities, listed on the PJM OASIS or web page, could preclude PJM from accommodating all or part of the delivery, even with redispatch. In this case, PJM will provide notification to NYISO. PJM will provide notification7 of all outages by posting these outages (transmission only) on the PJM OASIS or web site. NYISO will provide notification of all outages by posting these outages (transmission only) on the NYISO OASIS or web site. PJM and the NYISO will review and revise, as necessary, the list of primary and secondary facilities on an annual basis. 7 PJM can also provide the option of automated email outage notification through the PJM eDart tool. The following shall be the formula for calculating Day-Ahead Market (DAM) and Real- Time Market (RTM) desired flows: NYDFABC = [NY-DAE] + [A]*[PJM-NYISO DAM Schedule] + [B] *[OH-NYISO DAM Schedule] + [C] *[West-PJM DAM Schedule] + [D]*[DAM Lake Erie Circulation] NYDFJK = [NY-DAE] - [A]*[PJM-NYISO DAM Schedule] - [B] *[OH-NYISO DAM Schedule] - [C] *[West-PJM DAM Schedule] - [D]*[ DAM Lake Erie Circulation] PJMDFABC = [PJM-DAE] + [A]*[PJM-NYISO DAM Schedule] + [B] *[OH-NYISO DAM Schedule] + [C] *[West-PJM DAM Schedule] + [D]*[ DAM Lake Erie Circulation] PJMDFJK = [PJM-DAE] - [A]*[PJM-NYISO DAM Schedule] - [B] *[OH-NYISO DAM Schedule] - [C] *[West-PJM DAM Schedule] - [D]*[ DAM Lake Erie Circulation] RTMDFABC = [RTE] + [A]*[PJM-NYISO RTM Schedule] + [B] *[OH-NYISO RTM Schedule] + [C] *[West-PJM RTM Schedule] + [D]*[RTM Lake Erie Circulation] + Auto Correction Factor RTMDFJK = [RTE] - [A]*[PJM-NYISO RTM Schedule] - [B] *[OH-NYISO RTM Schedule] - [C] *[West-PJM RTM Schedule] - [D]*[RTM Lake Erie Circulation] + Auto Correction Factor • The DAM and RTM desired flows will be limited to the facility rating. • The Auto Correction Factor component of the desired flow is the on-peak and off- peak aggregations of MW deviation in a calendar day to be included in a subsequent day’s on-peak or off-peak period as applicable and agreed upon by PJM and NYISO. The Auto Correction Factor “pays-back” MW in kind during a subsequent day on-peak or off-peak period as agreed upon by NYISO and PJM. On-peak aggregation shall be paid back in a subsequent day on-peak period. Off- peak aggregation shall be paid back in a subsequent day off-peak period. • The Auto Correction Factor shall not apply to under-deliveries over the A, B, and C Feeders that occur during the first hour following a thunderstorm alert. • The Auto Correction Factor shall be the sole and exclusive remedy available to any person or entity for any under- or over-delivery of power pursuant to the 600/400 MW transactions, unless such under- or over-delivery is the result of gross negligence or intentional misconduct. A Up to 13 % Adjustment for NYISO-PJM Schedule B 0 % Adjustment for OH-NYISO Schedule C 0 % Adjustment for West-PJM Schedules D 0 % Adjustment for Lake Erie Circulation Other impacts will be part of the real time bandwidth operation – not the desired flow calculation. These impacts will be reviewed by PJM and the NYISO on an annual basis. Except as provided in the last sentence of this paragraph with regard to distribution factor A, the above distribution factors (A, B, C, D) will be used in the calculation unless otherwise agreed by PJM and the NYISO based upon operating analysis conducted in response to major topology changes or outages referenced in Appendix 2. Such modifications will be posted by PJM and the NYISO on the PJM and NY OASIS sites or web sites. Distribution factor A will apply only when steps taken by PJM and NYISO XXXXX to coordinate tap changes on the PARs to control power flow on transmission lines between New York and New Jersey are unable to maintain the desired flow. If necessary, in order to maintain the desired flow after applying distribution factor A, PJM and NYISO may issue TLRs concerning third-party non-firm transmission service.