Common use of Planned Net Revenues for Risk Clause in Contracts

Planned Net Revenues for Risk. The rates under this Agreement are based on the assumption that Bonneville’s power revenue requirement will not contain Planned Net Revenues for Risk or any risk mitigation tool that: (1) supports Bonneville’s power Treasury Payment Probability; (2) supports Bonneville’s credit rating; or (3) enhances Bonneville’s financial strength or financial standing by improving Bonneville’s cash position (“Risk Mitigation Tool” or “RMT”). If Bonneville adopts any RMT in its overall power revenue requirement as determined in the BP- 16 Final Proposal, then the following will apply: (i) The Annual Budget will decrease by 4.27% multiplied by the RMT. (ii) Notwithstanding section 12 above, Power Services will receive a payment of at least $50,834,800 + [8.2% × RMT] each year of the Rate Period from Transmission Services in exchange for planned balancing reserve capacity provided from the FCRPS as described in sections 3, 4 and 5 above. Power Services will set power rates with the revenue credit expectation that it will receive $54,834,800 + [8.2% × RMT] from Transmission Services. (iii) The ancillary and control area service rates in Attachment 2, ACS-16, sections II and III, will increase to collect each rate’s percentage share of the [8.2% × RMT] amount based on the following table: Regulating and Frequency Response Service 0.46% Dispatchable Energy Resource Balancing Service (DERBS) Inc 0.09% DERBS Dec 0.09% Operating Reserve - Spinning 1.65% Operating Reserve – Spinning default Function of Operating Reserves Spinning (115%) Operating Reserve - Supplemental 1.65% Operating Reserve – Supplemental default Function of Operating Reserves Supplemental (115%)

Planned Net Revenues for Risk. The rates under this Agreement are based on the assumption that Bonneville’s power revenue requirement will not contain Planned Net Revenues for Risk or any risk mitigation tool that: (1) supports Bonneville’s power Treasury Payment Probability; (2) supports Bonneville’s credit rating; or (3) enhances Bonneville’s financial strength or financial standing by improving Bonneville’s cash position (“Risk Mitigation Tool” or “RMT”). If Bonneville adopts any RMT in its overall power revenue requirement as determined in the BP- 16 Final Proposal, then the following will apply: (i) The Annual Budget will decrease by 4.27% multiplied by the RMT. (ii) Notwithstanding section 12 above, Power Services will receive a payment of at least $50,834,800 + [8.2% × RMT] each year of the Rate Period from Transmission Services in exchange for planned balancing reserve capacity provided from the FCRPS as described in sections 3, 4 and 5 above. Power Services will set power rates with the revenue credit expectation that it will receive $54,834,800 + [8.2% × RMT] from Transmission Services. (iii) The ancillary and control area service rates in Attachment 2, ACS-16, sections II and III, will increase to collect each rate’s percentage share of the [8.2% × RMT] amount based on the following table: Rates Percent Share of RMT Regulating and Frequency Response Service 0.46% Dispatchable Energy Resource Balancing Service (DERBS) Inc 0.09% DERBS Dec 0.09% Operating Reserve - Spinning 1.65% Operating Reserve – Spinning default Function of Operating Reserves Spinning (115%) Operating Reserve - Supplemental 1.65% Operating Reserve – Supplemental default Function of Operating Reserves Supplemental (115%)

Planned Net Revenues for Risk. The rates under this Agreement are based on the assumption that Bonneville’s power revenue requirement will not contain Planned Net Revenues for Risk (“PNRR”) or any risk mitigation tool thatother non-cost driven component to: (1) supports support Bonneville’s power Treasury Payment Probability; , (2) supports support Bonneville’s credit rating; , or (3) enhances enhance Bonneville’s financial strength or financial standing by improving Bonneville’s cash position (“Risk Mitigation Tool” or “RMT”)position. If Bonneville adopts any RMT such non-cost driven revenue requirement component (“NonCostPNRR”) in its overall power revenue requirement as determined in the BP- 16 BP-16 Final Proposal, then the following will apply: (i) The Annual Budget will decrease by 4.27% multiplied by the RMTNonCostRR. (ii) Notwithstanding section 12 above, Power Services will receive a payment of at least least: $50,834,800 + [8.2% × RMTNonCostRR] each year of the Rate Period from Transmission Services in exchange for planned balancing reserve capacity provided from the FCRPS as described in sections 3, 4 and 5 above. Power Services will set power rates with the revenue credit expectation that it will receive $54,834,800 + [8.2% × RMT] NonCostRR]) from Transmission Services. (iii) The ancillary and control area service rates in Attachment 2, ACS-16, sections II and III, will increase to collect each rate’s percentage share of the [8.2% × RMTNonCostRR] amount based on the following table: Rates Percent Share of NonCostPNRR Regulating and Frequency Response Service 0.46% Dispatchable Energy Resource Balancing Service (DERBS) Inc 0.09% DERBS Dec 0.09% Operating Reserve - Spinning 1.65% Operating Reserve – Spinning default Function of Operating Reserves Spinning (115%) Operating Reserve - Supplemental 1.65% Operating Reserve – Supplemental default Function of Operating Reserves Supplemental (115%)