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ERMU/GRE <br /> October 29, 2012 <br /> Page 2 <br /> ERMU is solely responsible for the operation, maintenance, testing and environmental <br /> compliance of all four generation units and shall have the right to operate the units at any <br /> time provided that such operation: <br /> a. Shall not conflict with any provision of any electric supply contract between Connexus <br /> Energy and ERMU; and <br /> b. Shall not be used to reduce ERMU's electric load during GRE's monthly capacity billing <br /> peak hour. <br /> 4. Capacity payment: For the active units that GRE is able to register as capacity resources in <br /> MISO's Module E, GRE will pay ERMU a monthly capacity payment equal to the sum of the <br /> then effective UCAP ratings multiplied by$0.20/kW-month. <br /> 5. Energy payment: Prior to the start of each month, ERMU will provide written notice to GRE <br /> of the energy price for the estimated production cost per kilowatt-hour ($/kWh) for the active <br /> units during the month ("Energy Price"). ERMU may revise such Energy Price any time <br /> within the month upon written notice to GRE, provided such revision shall only apply to <br /> energy production occurring more than two (2) days after such notice is received by GRE. <br /> a. GRE shall pay ERMU 110% of the effective Energy Price multiplied by the actual energy <br /> (kWh) produced by the active units during times when operation is requested by GRE. <br /> b. ERMU shall be responsible for and pay all costs associated with owning and maintaining <br /> the units, including the cost of other testing and operation not required for testing. <br /> 6. MISO capacity markets: GRE shall have the right to offer the active units into any current or <br /> future MISO capacity markets and retain any revenue received from MISO related to the <br /> participation of the active units in such capacity markets. <br /> 7. MISO energy and ancillary services markets: None of the units are currently eligible to <br /> participate in MISO's energy markets or ancillary services markets. The parties agree to <br /> discuss additional amendments to the contract in the event that any units become eligible to <br /> participate in these MISO markets. <br /> 8. Termination provisions: Either ERMU or GRE may terminate the contract effective on the lst <br /> of any month by providing the other party with a written notice of termination at least 31 days <br /> prior to the termination date (i.e. March 31st termination notice would be effective May 1st). <br /> 9. All other terms and conditions of the contract, as amended, will remain in effect as currently <br /> written. <br /> Sincerely, <br /> GREAT RIVER ENERGY ELK RIVER MUNICIPAL UTILITIES <br /> Jo <br /> Troy Adams <br /> Vice President, Member Services Utilities Director <br />