Common use of Xxxx-to-Market Credit Exposure Methodology Clause in Contracts

Xxxx-to-Market Credit Exposure Methodology. To calculate the Xxxx-to-Market Exposure Amount for each SSO Supplier, the following xxxx-to-market credit exposure methodology will be used. At the time the Solicitation is completed, the Xxxx-to-Market Exposure Amount for each SSO Supplier shall be set equal to zero. Subsequently, the differences between the prevailing market prices on a valuation date and the market prices in effect on the date the Solicitation is completed will be used to calculate the Xxxx-to-Market Exposure Amounts for each SSO Supplier, as described further in Attachment C-2. The total Xxxx-to-Market Exposure Amount will be equal to the sum of the Xxxx-to-Market Exposure Amounts for each Billing Period, or portion thereof, remaining during the Original Delivery Period. Forward Market Prices will be determined with reference to publicly available market price quotations obtained by Duke Energy Ohio, as adjusted by Duke Energy Ohio to more closely approximate the price impact of serving a requirements load which reflects hourly variations due to customer usage patterns. Such adjustment is further described in Attachment C-2. However, if market price quotations are not publicly available, Forward Market Prices will be determined by Duke Energy Ohio using any method which Duke Energy Ohio deems appropriate and which reasonably reflects forward market pricing conditions in PJM. The Xxxx-to-Market Exposure Amount may also be adjusted on a monthly basis to reflect changes in expected SSO Load by means of a volume adjustment factor, if such changes are material to the result of the calculation. The Xxxx-to-Market Exposure Amount will be stated on a present value basis by discounting using the then-prevailing LIBOR rate. The methodology for calculation of the Xxxx-to-Market Exposure Amount is illustrated in the example (using hypothetical numbers) in Attachment C-2.

Xxxx-to-Market Credit Exposure Methodology. To calculate the Xxxx-to-Market Exposure Amount for each SSO the XXXX Supplier, the following xxxx-to-market credit exposure methodology will be used. At the time the Solicitation is completed, the Xxxx-to-Market Exposure Amount for each SSO the XXXX Supplier shall be set equal to zero. Subsequently, the differences between the prevailing market prices on a valuation date and the market prices in effect on the date the Solicitation is completed will be used to calculate the Xxxx-to-Market Exposure Amounts Amount for each SSO the XXXX Supplier, as described further in Attachment C-2. The total Xxxx-to-Market Exposure Amount will be equal to the sum of the Xxxx-to-Market Exposure Amounts for each Billing Period, or portion thereof, remaining during the Original Delivery Period. Forward Market Prices will be determined with reference to publicly available market price quotations obtained by Duke Energy Ohio, as adjusted by Duke Energy Ohio to more closely approximate the price impact of serving a requirements load which reflects hourly variations due to customer usage patterns. Such adjustment is further described in Attachment C-2. However, if market price quotations are not publicly available, Forward Market Prices will be determined by Duke Energy Ohio using any method which Duke Energy Ohio deems appropriate and which reasonably reflects forward market pricing conditions in PJM. The Xxxx-to-Market Exposure Amount may also be adjusted on a monthly basis to reflect changes in expected SSO Load by means of a volume adjustment factor, if such changes are material to the result of the calculation. The Xxxx-to-Market Exposure Amount will be stated on a present value basis by discounting using the then-prevailing LIBOR rate. The methodology for calculation of the Xxxx-to-Market Exposure Amount is illustrated in the example (using hypothetical numbers) in Attachment C-2.

Xxxx-to-Market Credit Exposure Methodology. To calculate the Xxxx-to-Market Exposure Amount for each SSO Supplier, the following xxxx-to-market credit exposure methodology will be used. A “market value” for each Tranche will be determined at the time the Solicitation is completed based on the then prevailing market prices, as described further in Attachment C-2. At the time the Solicitation is completed, the Xxxx-Xxxx- to-Market Exposure Amount for each SSO Supplier shall be set equal to zero. Subsequently, the differences between the prevailing market prices on a valuation date and the market prices in effect on the date the Solicitation is completed will be used to calculate the Xxxx-to-Market Exposure Amounts for each SSO Supplier, as described further in Attachment C-2. The total Xxxx-to-to- Market Exposure Amount will be equal to the sum of the Xxxx-to-Market Exposure Amounts for each Billing Period, or portion thereof, remaining during the Original Delivery Period. Forward Market Prices will be determined with reference to publicly available market price quotations obtained by Duke Energy AEP Ohio, as adjusted by Duke Energy AEP Ohio to more closely approximate the price impact of serving a requirements load slice-of-system product which reflects hourly variations due to customer usage patterns. Such adjustment is further described in Attachment C-2. However, if market price quotations are not publicly available, Forward Market Prices will be determined by Duke Energy AEP Ohio using any method which Duke Energy AEP Ohio deems appropriate and which reasonably reflects forward market pricing conditions in PJM. The Xxxx-to-Market Exposure Amount may will also be adjusted on a monthly basis to reflect changes in expected SSO Load by means of a volume adjustment factor, if such changes are material to the result of the calculation. The Xxxx-Xxxx- to-Market Exposure Amount will be stated on a present value basis by discounting using the then-then- prevailing LIBOR rate. The methodology for calculation of the Xxxx-to-Market Exposure Amount is illustrated in the example (using hypothetical numbers) in Attachment C-2.

Xxxx-to-Market Credit Exposure Methodology. To calculate the Xxxx-to-Market Exposure Amount for each SSO the XXXX Supplier, the following xxxx-to-market credit exposure methodology will be used. A “market value” will be determined at the time the Solicitation is completed based on the then prevailing market prices, as described further in Attachment C-2. At the time the Solicitation is completed, the Xxxx-to-Market Exposure Amount for each SSO the XXXX Supplier shall be set equal to zero. Subsequently, the differences between the prevailing market prices on a valuation date and the market prices in effect on the date the Solicitation is completed will be used to calculate the Xxxx-to-Market Exposure Amounts for each SSO the XXXX Supplier, as described further in Attachment C-2. The total Xxxx-to-Market Exposure Amount will be equal to the sum of the Xxxx-to-Market Exposure Amounts for each Billing Period, or portion thereof, remaining during the Original Delivery Period. Forward Market Prices will be determined with reference to publicly available market price quotations obtained by Duke Energy AEP Ohio, as adjusted by Duke Energy AEP Ohio to more closely approximate the price impact of serving a requirements load XXXX product which reflects hourly variations due to customer usage patterns. Such adjustment is further described in Attachment C-2. However, if market price quotations are not publicly available, Forward Market Prices will be determined by Duke Energy AEP Ohio using any method which Duke Energy AEP Ohio deems appropriate and which reasonably reflects forward market pricing conditions in PJM. The Xxxx-Xxxx- to-Market Exposure Amount may will also be adjusted on a monthly basis to reflect changes in expected SSO XXXX Load by means of a volume adjustment factor, if such changes are material to the result of the calculation. The Xxxx-to-Market Exposure Amount will be stated on a present value basis by discounting using the then-prevailing LIBOR rate. The methodology for calculation of the Xxxx-to-Market Exposure Amount is illustrated in the example (using hypothetical numbers) in Attachment C-2.

Xxxx-to-Market Credit Exposure Methodology. To calculate the Xxxx-to-Market Exposure Amount for each SSO the XXXX Supplier, the following xxxx-to-market credit exposure methodology will be used. A “market value” will be determined at the time the Solicitation is completed based on the then prevailing market prices, as described further in Attachment C-2. At the time the Solicitation is completed, the Xxxx-to-Market Exposure Amount for each SSO the XXXX Supplier shall be set equal to zero. Subsequently, the differences between the prevailing market prices on a valuation date and the market prices in effect on the date the Solicitation is completed will be used to calculate the Xxxx-to-Market Exposure Amounts for each SSO the XXXX Supplier, as described further in Attachment C-2. The total Xxxx-to-to- Market Exposure Amount will be equal to the sum of the Xxxx-to-Market Exposure Amounts for each Billing Period, or portion thereof, remaining during the Original Delivery Period. Forward Market Prices will be determined with reference to publicly available market price quotations obtained by Duke Energy AEP Ohio, as adjusted by Duke Energy AEP Ohio to more closely approximate the price impact of serving a requirements load XXXX product which reflects hourly variations due to customer usage patterns. Such adjustment is further described in Attachment C-2. However, if market price quotations are not publicly available, Forward Market Prices will be determined by Duke Energy AEP Ohio using any method which Duke Energy AEP Ohio deems appropriate and which reasonably reflects forward market pricing conditions in PJM. The Xxxx-to-Market Exposure Amount may will also be adjusted on a monthly basis to reflect changes in expected SSO XXXX Load by means of a volume adjustment factor, if such changes are material to the result of the calculation. The Xxxx-to-Market Exposure Amount will be stated on a present value basis by discounting using the then-prevailing LIBOR rate. The methodology for calculation of the Xxxx-to-Market Exposure Amount is illustrated in the example (using hypothetical numbers) in Attachment C-2.

Xxxx-to-Market Credit Exposure Methodology. To calculate the Xxxx-to-Market Exposure Amount for each SSO Supplier, the following xxxx-to-market credit exposure methodology will be used. A “market value” for each Tranche will be determined at the time the Solicitation is completed based on the then prevailing market prices, as described further in Attachment C-2. At the time the Solicitation is completed, the Xxxx-Xxxx- to-Market Exposure Amount for each SSO Supplier shall be set equal to zero. Subsequently, the differences between the prevailing market prices on a valuation date and the market prices in effect on the date the Solicitation is completed will be used to calculate the Xxxx-to-Market Exposure Amounts for each SSO Supplier, as described further in Attachment C-2. The total Xxxx-to-to- Market Exposure Amount will be equal to the sum of the Xxxx-to-Market Exposure Amounts for each Billing Period, or portion thereof, remaining during the Original Delivery Period. Forward Market Prices will be determined with reference to publicly available market price quotations obtained by Duke Energy AEP Ohio, as adjusted by Duke Energy AEP Ohio to more closely approximate the price impact of serving a requirements load slice-of-system product which reflects hourly variations due to customer usage patterns. Such adjustment is further described in Attachment C-2. However, if market price quotations are not publicly available, Forward Market Prices will be determined by Duke Energy AEP Ohio using any method which Duke Energy AEP Ohio deems appropriate and which reasonably reflects forward market pricing conditions in PJM. The Xxxx-to-Market Exposure Amount may will also be adjusted on a monthly basis to reflect changes in expected SSO Load by means of a volume adjustment factor, if such changes are material to the result of the calculation. The Xxxx-to-Market Exposure Amount will be stated on a present value basis by discounting using the then-prevailing LIBOR rate. The methodology for calculation of the Xxxx-to-Market Exposure Amount is illustrated in the example (using hypothetical numbers) in Attachment C-2.