2.4. ERMUSR 03-13-2013 - Laserfiche WebLink

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ERMU/GRE March 6, 2013 Page 2 3. Operations. Testing. Reporting and Environmental Compliance: GRE will have the right to report the active units as Behind the Meter Generation (BTMG) in MISO's Module E and utilize the active units as Local Resource Zone 1 Zonal Resource Credits (ZRC)for resource adequacy compliance. a. The UCAP ratings will be updated by GRE as needed to reflect all MISO rules and adjustments applicable to the active units including the quarterly results of the Generating Availability Data System (GADS) report as provided by ERMU to GRE, which must also satisfy MISO reporting requirements. b. ERMU must also provide GRE with the annual Generator Verification Test Capability (GVTC) results no later than October 1 of each year. ERMU is solely responsible for the operation, maintenance, testing and environmental compliance of all four generation units and shall have the right to operate the units at any time provided that such operation: c. Shall not conflict with any provision of any electric supply contract between Connexus Energy and ERMU; and d. Shall not be used to reduce ERMU's electric load during GRE's monthly capacity billing peak hour. ERMU shall use prudent utility practice to ensure the active units are available for operation during the entire MISO Planning Year. ERMU shall be obligated to operate the active units as directed by MISO to GRE for up to five separate 4-hour periods during the months of June through September of each Planning Year, or as required by MISO for BTMG resources used for resource adequacy reporting. The active units must be started as soon as possible, but no later than four(4) hours, after GRE notifies ERMU to start. 4. Capacity payment: For the active units that GRE is able to register as capacity resources in MISO's Module E, GRE will pay ERMU a capacity payment each month that is equal to the sum of the then effective ZRC amounts multiplied by $0.20/kW-month. 5. Energy payment: Prior to the start of each month, ERMU will provide written notice to GRE of the estimated production cost per kilowatt-hour ($/kWh) for the active units during the month ("Energy Price"). ERMU may revise such Energy Price any time within the month upon written notice to GRE, provided such revision shall only apply to energy production occurring more than two (2)days after such notice is received by GRE. a. GRE shall pay ERMU 110% of the effective Energy Price multiplied by the actual energy (kWh) produced by the active units during times when operation is requested by GRE, and for one GVTC test each calendar year. b. ERMU shall be responsible for and pay all costs associated with owning and maintaining the units, including the cost of other testing, and operation not required for testing. 6. MISO capacity markets: GRE shall have the right to offer the active units into any current or future MISO capacity markets and retain any revenue received related to the participation of the active units in such capacity markets. 7. MISO energy and ancillary services markets: None of the units are currently eligible to participate in MISO's energy markets or ancillary services markets and will not be offered into these markets during the term of this agreement. The parties agree to discuss additional amendments to the contract in the event that any units become eligible to participate in these MISO markets.