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DISCUSSION: <br /> The final ruling from the EPA resulted in an expansion in the definition and the qualifications of <br /> emergency generation. In this rule, those engines that meet the emergency qualification are not <br /> required to make the emission upgrades because of their very limited run time per year. <br /> Under this final ruling, ERMU's engines can qualify as emergency generation if they run for <br /> fewer than 100 hours per year. To not conflict with the EPA definition of emergency generation, <br /> ERMU can qualify as emergency generation in MISO through our agreement with GRE by <br /> defining these generation units as Behind the Meter Generation(BTMG) in MISO's Module E <br /> and utilizing the units as Local Resource Zonel Zonal Resource Credits (ZRC) for resource <br /> adequacy compliance. <br /> By extending the agreement with GRE and having ERMU's engines continue to be registered as <br /> BTMG in MISO's Module E allows ERMU to be grandfathered in under the current <br /> interconnection agreement. To cancel this agreement may require ERMU to conduct an <br /> interconnection study with MISO to register at a later day. The execution of this amendment <br /> also allows ERMU to receive some compensation for resource capacity and energy, delay costly <br /> investment in emission upgrades, allow additional time for analysis, and keep the avenues of <br /> communication open with GRE. <br /> Due to filing deadlines with MISO, an amendment to reflect this additional definition has been <br /> drafted and executed by management. This amendment to the agreement extends the capacity <br /> payments as defined in the most recent amendment through the next MISO planning year,June <br /> 1, 2013 through May 31, 2014. In addition, this amendment also included provisions for energy <br /> payments and annual Generator Verification Test Capability (GVTC) run costs. This <br /> amendment will shift the "evergreen"renewal provisions of the original agreement to align with <br /> the MISO planning year. This agreement will be reviewed by ERMU and GRE in fall of 2013 <br /> prior to the evergreen renewal. This will allow for a reassessment of the agreement provisions. <br /> ACTION REQUESTED: <br /> Staff recommends the Commission receive the executed Capacity Credit Agreement Amendment <br /> Letter. <br /> ATTACHMENTS: <br /> • Capacity Credit Agreement Amendment Letter—dated March 6, 2013 <br /> POREREI I1 <br /> Page 2 of 2 INATURE� <br /> Reliable Public' <br /> Power Provider POWERED To SERVE <br />