Common use of Security Amount for Estimated Tax Liability Clause in Contracts

Security Amount for Estimated Tax Liability. The Interconnection Customer’s estimated tax liability is as follows: Current Tax Rate x (Gross Income Amount – Present Value of Tax Depreciation)/(1 – Current Tax Rate) = 35% Estimated tax liability for Distribution Upgrades = 35% x (Distribution Upgrades Cost) = 35% x $0 = $0 Estimated tax liability for Participating TO’s Interconnection Facilities = 35% x (Interconnection Facilities Cost) = 35% x $503,525 = $176,234 Estimated tax liability assumes the following costs: Interconnection Facilities Cost = $503,525 Distribution Upgrades Cost = $0 Based upon the total estimated tax liability, the Interconnection Customer shall provide the Participating TO cash or a letter of credit in the amount of $176,234, pursuant to Attachment 4 of the SGIA. The letter of credit or cash shall meet the requirements of Section 9.1 of the GIP, posted as follows. Due Date Security Amount March 20, 2014 $36,997 July 1, 2014 Increase to $123,248 January 1, 2015 Increase to $176,234 Upon notification of the Annual Tax Security Reassessment, the Interconnection Customer shall modify its Tax Security accordingly. If the Annual Tax Security Reassessment results in a deficiency in the Tax Security amount, the Interconnection Customer will be required to increase its Tax Security amount within 30 days after receipt of the deficiency notification. If the Annual Tax Security Reassessment results in a reduction of the Tax Security amount, the Interconnection Customer may choose to reduce its Tax Security amount or maintain the Tax Security in the current amount for the following year. The Annual Tax Security Reassessment will be calculated utilizing the following methodology:

Security Amount for Estimated Tax Liability. The Pursuant to Article 5.17.4 of the CLGIA, the Interconnection Customer’s estimated tax liability is as follows: Current Tax Rate x (Gross Income Amount – Present Value of Tax Depreciation)/(1 – Current Tax Rate) = 35% Estimated tax liability for Distribution Upgrades = 35% x (Distribution Upgrades Cost) = 35% x $0 2,070,000.00) = $0 724,500 Estimated tax liability for Participating TODistribution Provider’s Interconnection Facilities = 35% x (Interconnection Facilities Cost) = 35% x ($503,525 2,753,000.00) = $176,234 963,550.00 Estimated tax liability assumes the following costs: Interconnection Facilities Cost = $503,525 2,753,000.00 Distribution Upgrades Cost = $0 2,070,000.00 Based upon the total estimated tax liability, the Interconnection Customer shall provide the Participating TO Distribution Provider cash or a letter of credit in the amount of $176,2341,688,050.00, pursuant to Attachment 4 Article 5.17.3 and Appendix B of the SGIACLGIA. The letter of credit or cash shall meet the requirements of Section 9.1 8.1 of the GIP, posted as followsCLGIP. Due Date Security Amount March 20, 2014 $36,997 July 1, 2014 Increase to $123,248 January 1, 2015 Increase to $176,234 Upon notification of the Annual Tax Security Reassessment, the Interconnection Customer shall modify its Tax Security accordingly. If the Annual Tax Security Reassessment results in a deficiency in the Tax Security amount, the Interconnection Customer will be required to increase its Tax Security amount within 30 days after receipt of the deficiency notification. If the Annual Tax Security Reassessment results in a reduction of the Tax Security amount, the Interconnection Customer may choose to reduce its Tax Security amount or maintain the Tax Security in the current amount for the following year. The Annual Tax Security Reassessment will be calculated utilizing the following methodology:

Security Amount for Estimated Tax Liability. The Interconnection Customer’s estimated tax liability is as follows: Current Tax Rate x (Gross Income Amount – Present Value of Tax Depreciation)/(1 – Current Tax Rate) = 35% Estimated tax liability for Distribution Upgrades = 35% x (Distribution Upgrades Cost) = 35% x ($0 0.00) = $0 0.00 Estimated tax liability for Participating TOTO’sDistribution Provider’s Interconnection Facilities = 35% x (Interconnection Facilities Cost) = 35% x $503,525 3,893,000.00) = $176,234 1,362,550.00 Estimated tax liability assumes the following costs: Interconnection Facilities Cost = $503,525 3,893,000.00 Distribution Upgrades Cost = $0 0.00 Based upon the total estimated tax liability, the Interconnection Customer shall provide the Participating TO TODistribution Provider cash or a letter of credit in the amount of $176,2341,362,550.00, pursuant to Attachment 4 of the SGIAAgreement. The letter of credit or cash shall meet the requirements of Section 9.1 of the GIP, posted as follows. Due Date Security Amount March 20, 2014 $36,997 July 1, 2014 Increase to $123,248 January 1, 2015 Increase to $176,234 Upon notification of the Annual Tax Security Reassessment, the Interconnection Customer shall modify its Tax Security accordingly. If the Annual Tax Security Reassessment results in a deficiency in the Tax Security amount, the Interconnection Customer will be required to increase its Tax Security amount within 30 days after receipt of the deficiency notification. If the Annual Tax Security Reassessment results in a reduction of the Tax Security amount, the Interconnection Customer may choose to reduce its Tax Security amount or maintain the Tax Security in the current amount for the following year. The Annual Tax Security Reassessment will be calculated utilizing the following methodology:

Security Amount for Estimated Tax Liability. The Pursuant to Article 5.17.4 of the GIACLGIA, the Interconnection Customer’s estimated tax liability is as follows: Current Tax Rate x (Gross Income Amount – Present Value of Tax Depreciation)/(1 – Current Tax Rate) = 35% Estimated tax liability for Distribution Upgrades = 35% x (Distribution Upgrades Cost) = 35% x $0 2,008,000.00) = $0 702,800 Estimated tax liability for Participating TODistribution Provider’s Interconnection Facilities = 35% x (Interconnection Facilities Cost) = 35% x ($503,525 2,673,000.00) = $176,234 935,550.00 Estimated tax liability assumes the following costs: Interconnection Facilities Cost = $503,525 2,673,000.00 Distribution Upgrades Cost = $0 2,008,000.00 Based upon the total estimated tax liability, the Interconnection Customer shall provide the Participating TO Distribution Provider cash or a letter of credit in the amount of $176,2341,638,350.00, pursuant to Attachment 4 Article 5.17.3 and Appendix B of the SGIAGIACLGIA. The letter of credit or cash shall meet the requirements of Section 9.1 4.8.1 of the GIP, posted as followsGIPCLGIP. Due Date Security Amount March 20, 2014 $36,997 July 1, 2014 Increase to $123,248 January 1, 2015 Increase to $176,234 Upon notification of the Annual Tax Security Reassessment, the Interconnection Customer shall modify its Tax Security accordingly. If the Annual Tax Security Reassessment results in a deficiency in the Tax Security amount, the Interconnection Customer will be required to increase its Tax Security amount within 30 days after receipt of the deficiency notification. If the Annual Tax Security Reassessment results in a reduction of the Tax Security amount, the Interconnection Customer may choose to reduce its Tax Security amount or maintain the Tax Security in the current amount for the following year. The Annual Tax Security Reassessment will be calculated utilizing the following methodology:

Security Amount for Estimated Tax Liability. The Pursuant to Article 5.17.4 of the GIA, the Interconnection Customer’s estimated tax liability is as follows: Current Tax Rate x (Gross Income Amount – Present Value of Tax Depreciation)/(1 – Current Tax Rate) = 35% Estimated tax liability for Distribution Upgrades = 35% x (Distribution Upgrades Cost) = 35% x $0 = $0 Estimated tax liability for Participating TO’s Customer-Financed Interconnection Facilities = 35% x (Customer- Financed Interconnection Facilities Cost) = 35% x ($503,525 430,660.00) = $176,234 150,731.00 Estimated tax liability assumes the following costs: Customer-Financed Interconnection Facilities Cost = $503,525 Distribution Upgrades Cost = $0 430,660.00 Based upon the total estimated tax liability, the Interconnection Customer shall provide the Participating TO cash or Distribution Provider cash, a letter of credit credit, or parent guaranty in the amount of $176,234150,731.00, pursuant to Attachment 4 Article 5.17.3 and Appendix B of the SGIAGIA. The letter of credit credit, cash, or cash parent guaranty shall meet the requirements of Section 9.1 5.9 of the GIP, posted as follows. Due Date Security Amount March 20, 2014 $36,997 July 1, 2014 Increase to $123,248 January 1, 2015 Increase to $176,234 Upon notification of the Annual Tax Security Reassessment, the Interconnection Customer shall modify its Tax Security accordingly. If the Annual Tax Security Reassessment results in a deficiency in the Tax Security amount, the Interconnection Customer will be required to increase its Tax Security amount within 30 days Calendar Days after receipt of the deficiency notification. If the Annual Tax Security Reassessment results in a reduction of the Tax Security amount, the Interconnection Customer may choose to reduce its Tax Security amount or maintain the Tax Security in the current amount for the following year. The Annual Tax Security Reassessment will be calculated utilizing the following methodology:

Security Amount for Estimated Tax Liability. The Pursuant to Article 5.17.4 of the UFA, the Interconnection Customer’s estimated tax liability is as follows: Current Tax Rate x (Gross Income Amount – Present Value of Tax Depreciation)/(1 – Current Tax Rate) = 35% Estimated tax liability for Distribution Upgrades = 35% x (Distribution Upgrades Cost) = 35% x $0 = $0 Estimated tax liability for Affected Participating TO’s Interconnection Facilities = 35% x (Interconnection Facilities Cost) = 35% x $503,525 190,174942 = $176,234 66,561830 Estimated tax liability assumes the following costs: Interconnection Facilities Cost = $503,525 Distribution Upgrades Cost = $0 190,174942 Based upon the total estimated tax liability, the Interconnection Customer shall provide the Affected Participating TO cash or a letter of credit in the amount of $176,23466,561830, pursuant to Attachment 4 Article 5.17.3 and Appendix B of the SGIAUFA. The letter of credit or cash shall meet the requirements of Section 9.1 of the GIP, posted as follows. Due Date Security Amount March 20, 2014 $36,997 July 1, 2014 Increase to $123,248 January 1, 2015 Increase to $176,234 Upon notification of the Annual Tax Security Reassessment, the Interconnection Customer shall modify its Tax Security accordingly. If the Annual Tax Security Reassessment results in a deficiency in the Tax Security amount, the Interconnection Customer will be required to increase its Tax Security amount within 30 days after receipt of the deficiency notification. If the Annual Tax Security Reassessment results in a reduction of the Tax Security amount, the Interconnection Customer may choose to reduce its Tax Security amount or maintain the Tax Security in the current amount for the following year. The Annual Tax Security Reassessment will be calculated utilizing the following methodology:

Security Amount for Estimated Tax Liability. The Pursuant to Article 5.17.4 of the GIA, the Interconnection Customer’s estimated tax liability is as follows: Current Tax Rate x (Gross Income Amount – Present Value of Tax Depreciation)/(1 – Current Tax Rate) = 35% Estimated tax liability for new Distribution Upgrades = 35% x (Distribution Upgrades Cost) = 35% x $0 = $0 Estimated tax liability for Participating TOProvider’s Interconnection Facilities = 35% x (Customer-Financed Interconnection Facilities CostCost for new facilities) = 35% x ($503,525 168,000) = $176,234 58,800 Estimated tax liability assumes the following costs: Customer-Financed Interconnection Facilities Cost for new facilities = $503,525 Distribution Upgrades Cost = $0 168,000 Based upon the total estimated tax liability, the Interconnection Customer shall provide the Participating TO Distribution Provider cash or a letter of credit in the amount of $176,23458,800, pursuant to Attachment 4 Article 5.17.3 and Appendix B of the SGIAGIA. The letter of credit or cash shall meet the requirements of Section 9.1 of the GIP, posted as follows. Due Date Security Amount March 20, 2014 $36,997 July 1, 2014 Increase to $123,248 January 1, 2015 Increase to $176,234 Upon notification of the Annual Tax Security Reassessment, the Interconnection Customer shall modify its Tax Security accordingly. If the Annual Tax Security Reassessment results in a deficiency in the Tax Security amount, the Interconnection Customer will be required to increase its Tax Security amount within 30 days after receipt of the deficiency notification. If the Annual Tax Security Reassessment results in a reduction of the Tax Security amount, the Interconnection Customer may choose to reduce its Tax Security amount or maintain the Tax Security in the current amount for the following year. The Annual Tax Security Reassessment will be calculated utilizing the following methodology:

Security Amount for Estimated Tax Liability. The Interconnection Customer’s estimated tax liability is as follows: Current Tax Rate x (Gross Income Amount – Present Value of Tax Depreciation)/(1 – Current Tax Rate) = 35% Estimated tax liability for Distribution Upgrades = 35% x (Distribution Upgrades Cost) = 35% x ($0 10,805.00) = $0 3,782.00 Estimated tax liability for Participating TO’s Interconnection Facilities = 35% x (Interconnection Facilities Cost) = 35% x ($503,525 2,441,000.00) = $176,234 854,350.00 Estimated tax liability assumes the following costs: Interconnection Facilities Cost = $503,525 2,441,000.00 Distribution Upgrades Cost = $0 10,805.00 Based upon the total estimated tax liability, the Interconnection Customer shall provide the Participating TO cash cash, or a letter of credit in the amount of $176,234858,132.00, pursuant to Attachment 4 of the SGIA. The cash or letter of credit or cash shall meet be in the requirements of form provided for in Section 9.1 6.4 of the GIP, posted as followsSGIA. Due Date Security Amount March 20, 2014 $36,997 July 1, 2014 Increase to $123,248 January 1, 2015 Increase to $176,234 Upon notification of the Annual Tax Security Reassessment, the Interconnection Customer shall modify its Tax Security accordingly. If the Annual Tax Security Reassessment results in a deficiency in the Tax Security amount, the Interconnection Customer will be required to increase its Tax Security amount within 30 days after receipt of the deficiency notification. If the Annual Tax Security Reassessment results in a reduction of the Tax Security amount, the Interconnection Customer may choose to reduce its Tax Security amount or maintain the Tax Security in the current amount for the following year. The Annual Tax Security Reassessment will be calculated utilizing the following methodology:

Security Amount for Estimated Tax Liability. The Pursuant to Article 5.17.4 of the CLGIA, the Interconnection Customer’s estimated tax liability is as follows: Current Tax Rate x (Gross Income Amount – Present Value of Tax Depreciation)/(1 – Current Tax Rate) = 35% Estimated tax liability for Distribution Upgrades = 35% x (Distribution Upgrades Cost) = 35% x ($0 1,407,359) = $0 492,576 Estimated tax liability for Participating TODistribution Provider’s Interconnection Facilities = 35% x (Interconnection Facilities CostCost ) = 35% x ($503,525 3,996,063) = $176,234 1,398,622 Estimated tax liability assumes the following costs: Interconnection Facilities Cost = $503,525 3,996,063 Distribution Upgrades Cost = $0 1,407,359 Based upon the total estimated tax liability, the Interconnection Customer shall provide the Participating TO Distribution Provider cash or a letter of credit in the amount of $176,2341,891,198, pursuant to Attachment 4 Article 5.17.3 and Appendix B of the SGIACLGIA. The letter of credit or cash shall meet the requirements of Section 9.1 8.1 of the GIP, posted as followsCLGIP. Due Date Security Amount March 20, 2014 $36,997 July 1, 2014 Increase to $123,248 January 1, 2015 Increase to $176,234 Upon notification of the Annual Tax Security Reassessment, the Interconnection Customer shall modify its Tax Security accordingly. If the Annual Tax Security Reassessment results in a deficiency in the Tax Security amount, the Interconnection Customer will be required to increase its Tax Security amount within 30 days after receipt of the deficiency notification. If the Annual Tax Security Reassessment results in a reduction of the Tax Security amount, the Interconnection Customer may choose to reduce its Tax Security amount or maintain the Tax Security in the current amount for the following year. The Annual Tax Security Reassessment will be calculated utilizing the following methodology:

Security Amount for Estimated Tax Liability. The Interconnection Customer’s estimated tax liability is as follows: Current Tax Rate x (Gross Income Amount – Present Value of Tax Depreciation)/(1 – Current Tax Rate) = 35% Estimated tax liability for Distribution Upgrades = 35% x (Distribution Upgrades Cost) = 35% x ($0 414,879) = $0 145,208 Estimated tax liability for Participating TODistribution Provider’s Interconnection Facilities = 35% x (Interconnection Facilities Cost) = 35% x ($503,525 437,098) = $176,234 152,984 Estimated tax liability assumes the following costs: Interconnection Facilities Cost = $503,525 437,098 Distribution Upgrades Cost = $0 414,879 Based upon the total estimated tax liability, the Interconnection Customer shall provide the Participating TO Distribution Provider cash or a letter of credit in the amount of $176,234298,192, pursuant to Attachment 4 of the SGIA. The letter of credit or cash shall meet the requirements of Section 9.1 of the GIP, posted as follows. Due Date Security Amount March 20, 2014 $36,997 July 1, 2014 Increase to $123,248 January 1, 2015 Increase to $176,234 Upon notification of the Annual Tax Security Reassessment, the Interconnection Customer shall modify its Tax Security accordingly. If the Annual Tax Security Reassessment results in a deficiency in the Tax Security amount, the Interconnection Customer will be required to increase its Tax Security amount within 30 days after receipt of the deficiency notification. If the Annual Tax Security Reassessment results in a reduction of the Tax Security amount, the Interconnection Customer may choose to reduce its Tax Security amount or maintain the Tax Security in the current amount for the following year. The Annual Tax Security Reassessment will be calculated utilizing the following methodology:

Security Amount for Estimated Tax Liability. The Interconnection Customer’s estimated tax liability is as follows: Current Tax Rate x (Gross Income Amount – Present Value of Tax Depreciation)/(1 – Current Tax Rate) = 35% Estimated tax liability for Distribution Upgrades = 35% x (Distribution Upgrades Cost) = 35% x ($0 0) = $0 Estimated tax liability for Participating TO’s Interconnection Facilities = 35% x (Interconnection Facilities Cost) = 35% x $503,525 252,3712,441,000 = $176,234 854,35088,330 Estimated tax liability assumes the following costs: Interconnection Facilities Cost = $503,525 252,3712,441,000 Distribution Upgrades Cost = $0 Based upon the total estimated tax liability, the Interconnection Customer shall provide the Participating TO cash cash, or a letter of credit in the amount of $176,234854,35088,330, pursuant to Attachment 4 of the SGIA. The cash or letter of credit or cash shall meet be in the requirements of form provided for in Section 9.1 6.4 of the GIP, posted as followsSGIA. Due Date Security Amount March 20, 2014 $36,997 July 1, 2014 Increase to $123,248 January 1, 2015 Increase to $176,234 Upon notification of the Annual Tax Security Reassessment, the Interconnection Customer shall modify its Tax Security accordingly. If the Annual Tax Security Reassessment results in a deficiency in the Tax Security amount, the Interconnection Customer will be required to increase its Tax Security amount Amount within 30 days after receipt of the deficiency notification. If the Annual Tax Security Reassessment results in a reduction of the Tax Security amount, the Interconnection Customer may choose to reduce its Tax Security amount or maintain the Tax Security in the current amount for the following year. The Annual Tax Security Reassessment will be calculated utilizing the following methodology:

Security Amount for Estimated Tax Liability. The Interconnection Customer’s estimated tax liability is as follows: Current Tax Rate x (Gross Income Amount – Present Value of Tax Depreciation)/(1 – Current Tax Rate) = 35% Estimated tax liability for Distribution Upgrades = 35% x (Distribution Upgrades Cost) = 35% x ($0 0) = $0 Estimated tax liability for Participating TO’s Interconnection Facilities = 35% x (Interconnection Facilities Cost) = 35% x $503,525 2,441,000 = $176,234 854,350 Estimated tax liability assumes the following costs: Interconnection Facilities Cost = $503,525 2,441,000 Distribution Upgrades Cost = $0 Based upon the total estimated tax liability, the Interconnection Customer shall provide the Participating TO cash cash, or a letter of credit in the amount of $176,234854,350, pursuant to Attachment 4 of the SGIA. The cash or letter of credit or cash shall meet be in the requirements of form provided for in Section 9.1 6.4 of the GIP, posted as followsSGIA. Due Date Security Amount March 20, 2014 $36,997 July 1, 2014 Increase to $123,248 January 1, 2015 Increase to $176,234 Upon notification of the Annual Tax Security Reassessment, the Interconnection Customer shall modify its Tax Security accordingly. If the Annual Tax Security Reassessment results in a deficiency in the Tax Security amount, the Interconnection Customer will be required to increase its Tax Security amount Amount within 30 days after receipt of the deficiency notification. If the Annual Tax Security Reassessment results in a reduction of the Tax Security amount, the Interconnection Customer may choose to reduce its Tax Security amount or maintain the Tax Security in the current amount for the following year. The Annual Tax Security Reassessment will be calculated utilizing the following methodology:

Security Amount for Estimated Tax Liability. The Pursuant to Article 5.17.4 of the GIA, the Interconnection Customer’s estimated tax liability is as follows: Current Tax Rate x (Gross Income Amount – Present Value of Tax Depreciation)/(1 – Current Tax Rate) = 35% Estimated tax liability for Customer-Financed Interconnection Facilities = 35% x (Customer- Financed Interconnection Facilities Cost) = 35% x ($63,982.00) = $22,394.00 Estimated tax liability for Distribution Upgrades = 35% x (Distribution Upgrades Cost) = 35% x ($0 0.00) = $0 Estimated tax liability for Participating TO’s Interconnection Facilities = 35% x (Interconnection Facilities Cost) = 35% x $503,525 = $176,234 0.00 Estimated tax liability assumes the following costs: Customer-Financed Interconnection Facilities Cost = $503,525 63,982.00 Distribution Upgrades Cost = $0 0.00 Based upon the total estimated tax liability, the Interconnection Customer shall provide the Participating TO Distribution Provider cash or a letter of credit in the amount of $176,23422,394.00, pursuant to Attachment 4 Article 5.17.3 and Appendix B of the SGIAGIA. The letter of credit or cash shall meet the requirements of Section 9.1 4.8 of the GIP, posted as follows. Due Date Security Amount March 20, 2014 $36,997 July 1, 2014 Increase to $123,248 January 1, 2015 Increase to $176,234 Upon notification of the Annual Tax Security Reassessment, the Interconnection Customer shall modify its Tax Security accordingly. If the Annual Tax Security Reassessment results in a deficiency in the Tax Security amount, the Interconnection Customer will be required to increase its Tax Security amount within 30 days after receipt of the deficiency notification. If the Annual Tax Security Reassessment results in a reduction of the Tax Security amount, the Interconnection Customer may choose to reduce its Tax Security amount or maintain the Tax Security in the current amount for the following year. The Annual Tax Security Reassessment will be calculated utilizing the following methodology:

Security Amount for Estimated Tax Liability. The Pursuant to Article 5.17.4 of the LGIA, the Interconnection Customer’s estimated tax liability is as follows: Current Tax Rate x (Gross Income Amount – Present Value of Tax Depreciation)/(1 – Current Tax Rate) = 35% Estimated tax liability for Distribution Upgrades = 35% x (Distribution Upgrades Cost) = 35% x ($0 0) = $0 Estimated tax liability for Participating TO’s Interconnection Facilities = 35% x (Interconnection Facilities Cost) = 35% x $503,525 7,403,979.00 = $176,234 2,591,392.65 Estimated tax liability assumes the following costs: Interconnection Facilities Cost = $503,525 Distribution Upgrades Cost = $0 7,403,979.00 Based upon the total estimated tax liability, the Interconnection Customer shall provide the Participating TO cash or a letter of credit in the amount of $176,234, 2,591,392.65 pursuant to Attachment 4 Article 5.17.3 and Appendix B of the SGIALGIA. The letter of credit or cash shall meet the requirements of Section 9.1 of the GIP, posted as follows. Due Date Security Amount March 20, 2014 $36,997 July 1, 2014 Increase to $123,248 January 1, 2015 Increase to $176,234 Upon notification of the Annual Tax Security Reassessment, the Interconnection Customer shall modify its Tax Security accordingly. If the Annual Tax Security Reassessment results in a deficiency in the Tax Security amount, the Interconnection Customer will be required to increase its Tax Security amount within 30 days after receipt of the deficiency notification. If the Annual Tax Security Reassessment results in a reduction of the Tax Security amount, the Interconnection Customer may choose to reduce its Tax Security amount or maintain the Tax Security in the current amount for the following year. The Annual Tax Security Reassessment will be calculated utilizing the following methodology:

Security Amount for Estimated Tax Liability. The Pursuant to Article 5.17.4 of the GIA, the Interconnection Customer’s estimated tax liability is as follows: Current Tax Rate x (Gross Income Amount – Present Value of Tax Depreciation)/(1 – Current Tax Rate) = 35% Estimated tax liability for Distribution Upgrades = 35% x (Distribution Upgrades Cost) = 35% x ($0 58,278.00) = $0 20,397.30 Estimated tax liability for Participating TODistribution Provider’s Interconnection Facilities = 35% x (Interconnection Facilities CostCost ) = 35% x ($503,525 119,761.00) = $176,234 41,916.35 Estimated tax liability assumes the following costs: Interconnection Facilities Cost = $503,525 119,761.00 Distribution Upgrades Cost = $0 58,278.00 Based upon the total estimated tax liability, the Interconnection Customer shall provide the Participating TO Distribution Provider cash or a letter of credit in the amount of $176,23462,313.65, pursuant to Attachment 4 Article 5.17.3 and Appendix B of the SGIAGIA. The letter of credit or cash shall meet the requirements of Section 9.1 4.8 of the GIP, posted as follows. Due Date Security Amount March 20, 2014 $36,997 July 1, 2014 Increase to $123,248 January 1, 2015 Increase to $176,234 Upon notification of the Annual Tax Security Reassessment, the Interconnection Customer shall modify its Tax Security accordingly. If the Annual Tax Security Reassessment results in a deficiency in the Tax Security amount, the Interconnection Customer will be required to increase its Tax Security amount within 30 thirty (30) days after receipt of the deficiency notification. If the Annual Tax Security Reassessment results in a reduction of the Tax Security amount, the Interconnection Customer may choose to reduce its Tax Security amount or maintain the Tax Security in the current amount for the following year. The Annual Tax Security Reassessment will be calculated utilizing the following methodology:

Security Amount for Estimated Tax Liability. The Pursuant to Article 5.17.4 of the GIA, the Interconnection Customer’s estimated tax liability is as follows: Current Tax Rate x (Gross Income Amount – Present Value of Tax Depreciation)/(1 – Current Tax Rate) = 35% Estimated tax liability for Distribution Upgrades = 35% x (Distribution Upgrades Cost) = 35% x ($0 0.00) = $0 0.00 Estimated tax liability for Participating TO’s New Customer-Financed Interconnection Facilities = 35% x (New Customer-Financed Interconnection Facilities Cost) = 35% x ($503,525 143,491.00) = $176,234 50,221.85 Estimated tax liability assumes the following costs: New Customer-Financed Interconnection Facilities Cost = $503,525 143,491.00 Distribution Upgrades Cost = $0 0.00 Based upon the total estimated tax liability, the Interconnection Customer shall provide the Participating TO Distribution Provider cash or a letter of credit in the amount of $176,23450,221.85, pursuant to Attachment 4 Article 5.17.3 and Appendix B of the SGIAGIA. The letter of credit or cash shall meet the requirements of Section 9.1 4.8 of the GIP, posted as follows. Due Date Security Amount March 20, 2014 $36,997 July 1, 2014 Increase to $123,248 January 1, 2015 Increase to $176,234 Upon notification of the Annual Tax Security Reassessment, the Interconnection Customer shall modify its Tax Security accordingly. If the Annual Tax Security Reassessment results in a deficiency in the Tax Security amount, the Interconnection Customer will be required to increase its Tax Security amount within 30 days Calendar Days after receipt of the deficiency notification. If the Annual Tax Security Reassessment results in a reduction of the Tax Security amount, the Interconnection Customer may choose to reduce its Tax Security amount or maintain the Tax Security in the current amount for the following year. The Annual Tax Security Reassessment will be calculated utilizing the following methodology: