Common use of Basic Understandings Clause in Contracts

Basic Understandings. Maine Yankee was organized in 1966 to provide a supply of power to its sponsoring utility companies, including the Purchaser (collectively the "Purchasers"). It constructed a nuclear electric generating unit, having a net capability of approximately 830 megawatts electric (the "Unit") at a site on tidewater in the Town of Wiscasset, Maine. On June 27, 1973, Maine Yankee was issued a full-term, Facility Operating License for the Unit by the Atomic Energy Commission (predecessor to the Nuclear Regulatory Commission which, together with any successor agencies, is hereafter called the "NRC "), which license is now stated to expire on October 21, 2008. The Unit has been in commercial operation since January 1, 1973. The Unit was conceived to supply economic power on a cost of service formula basis to the Purchasers. Maine Yankee and the Purchaser are parties to a Power Contract dated as Contract and other identical contracts (collectively, the "Power Contracts") between Maine Yankee and the other Purchasers, Maine Yankee contracted to supply to the Purchasers all of the capacity and electric energy available from the Unit for a term of thirty (30) years following January 1, 1973. Maine Yankee and the Purchaser are also parties to an Additional Power Contract, dated as of February 1, 1984 ("Additional Power Contract"). The Additional Power Contract and other similar contracts (collectively, the "Additional Power Contracts") between Maine Yankee and the other Purchasers provide for an operative term stated to commence on January 2, 2003 (when the Power Contracts terminate) and extending until a date which is the later to occur of (i) 30 days after the date on which the last of the financial obligations of Maine Yankee which constitute elements of the purchase price thereunder has been extinguished by Maine Yankee or (ii) 30 days after the date on which Maine Yankee is finally relieved of any obligations under the last of the licenses (operating and/or possessory) which it holds from, or which may hereafter be issued to it by, the NRC with respect to the Unit under applicable provisions of the Atomic Energy Act of 1954, as amended from time to time (the "Act"). Pursuant to the Power Contract and the Additional Power Contract, the Purchaser is entitled and obligated to take its entitlement percentage of the capacity and net electrical output of the Unit during the service life of the Unit and is obligated to pay therefor monthly its entitlement percentage of Maine Yankee's cost of service, including decommissioning costs, whether or not the Unit is operated or whether or not net electrical output is delivered. The Power Contracts and the Additional Power Contracts also provide, in the event of their earlier cancellation, for the survival of the decommissioning cost obligation and for the applicable provisions thereof to remain in effect to permit final xxxxxxxx of costs incurred prior to such cancellation. On August 6, 1997, the board of directors of Maine Yankee, after conducting a thorough review of the economics of continued operation of the Unit for the remainder of the term of the Facility Operating License for the Unit in light of other alternatives available to Maine Yankee and the Purchasers, determined that the Unit should be permanently shut down effective August 6, 1997. The Purchaser concurs in that decision. As a consequence of the shutdown decision, Maine Yankee and the Purchaser propose at this time to amend the Power Contract and the Additional Power Contract in various respects in order to clarify and confirm provisions for the recovery under said contracts of the full costs previously incurred by Maine Yankee in providing power from the Unit during its useful life and of all costs of decommissioning the Unit, including the costs of maintaining the Unit in a safe condition following the shutdown and prior to its decontamination and dismantlement. Maine Yankee and each of the other Purchasers are entering into agreements which are identical to this Agreement except for necessary changes in the names of the parties.

Basic Understandings. Maine Yankee was organized in 1966 to provide a supply of power to its sponsoring utility companies, including the Purchaser (collectively the "Purchasers"). It constructed a nuclear electric generating unit, having a net capability of approximately 830 megawatts electric (the "Unit") at a site on tidewater in the Town of Wiscasset, Maine. On June 27, 1973, Maine Yankee was issued a full-full term, Facility Operating License for the Unit by the Atomic Energy Commission (predecessor to the Nuclear Regulatory Commission which, together with any successor agencies, is hereafter called the "NRC NRC"), which license is now stated to expire on October 21, 2008. The Unit has been in commercial operation since January 1, 1973l973. The Unit was conceived to supply economic power on a cost of service formula basis to the Purchasers. Maine Yankee and the Purchaser are parties to a Power Contract dated as of May 20, 1968 (as herefore amended, the "Power Contract"). Pursuant to the Power Contract and other identical contracts (collectively, the "Power Contracts") between Maine Yankee and the other Purchasers, Maine Yankee contracted to supply to the Purchasers all of the capacity and electric energy available from the Unit for a term of thirty (30) years following January 1, 1973. Maine Yankee and the Purchaser are also parties to an Additional Power Contract, dated as of February 1, 1984 ("Additional Power Contract"). The Additional Power Contract and other similar contracts (collectively, the "Additional Power Contracts") between Maine Yankee and the other Purchasers provide for an operative term stated to commence on January 2, 2003 (when the Power Contracts terminate) and extending until a date which is the later to occur of (i) 30 days after the date on which the last of the financial obligations of Maine Yankee which constitute elements of the purchase price thereunder has been extinguished by Maine Yankee or (ii) 30 days after the date on which Maine Yankee is finally relieved of any obligations under the last of the licenses (operating and/or possessory) which it holds from, or which may hereafter be issued to it by, the NRC with respect to the Unit under applicable provisions of the Atomic Energy Act of 1954, as amended from time to time (the "Act"). Pursuant to the Power Contract and the Additional Power Contract, the Purchaser is entitled and obligated to take its entitlement percentage of the capacity and net electrical output of the Unit during the service life of the Unit and is obligated to pay therefor monthly its entitlement percentage of Maine Yankee's cost of service, including decommissioning costs, whether or not the Unit is operated or whether or not net electrical output is delivered. The Power Contracts and the Additional Power Contracts also provide, in the event of their earlier cancellation, for the survival of the decommissioning cost obligation and for the applicable provisions thereof to remain in effect to permit final xxxxxxxx of costs incurred prior to such cancellation. On August 6, 1997, the board of directors of Maine Yankee, after conducting a thorough review of the economics of continued operation of the Unit for the remainder of the term of the Facility Operating License for the Unit in light of other alternatives available to Maine Yankee and the Purchasers, determined that the Unit should be permanently shut down effective August 6, 1997. The Purchaser concurs in that decision. As a consequence of the shutdown decision, Maine Yankee and the Purchaser propose at this time to amend the Power Contract and the Additional Power Contract in various respects in order to clarify and confirm provisions for the recovery under said contracts of the full costs previously incurred by Maine Yankee in providing power from the Unit during its useful life and of all costs of decommissioning the Unit, including the costs of maintaining the Unit in a safe condition following the shutdown and prior to its decontamination and dismantlement. Maine Yankee and each of the other Purchasers are entering into agreements which are identical to this Agreement except for necessary changes in the names of the parties.

Basic Understandings. Maine Connecticut Yankee was organized in 1966 1952 to provide a for the supply of power to its sponsoring utility companies, including the Purchaser (collectively the "Purchasers"). It constructed a nuclear electric generating unit, having a net capability of approximately 830 582 megawatts electric (the "Unit") at a site on tidewater in the Town of WiscassetHaddam Neck, MaineConnecticut. On June 27, 1973, Maine Connecticut Yankee was issued a full-full- term, Facility Operating License for the Unit by the Atomic Energy Commission (predecessor to the Nuclear Regulatory Commission (which, together with any successor agencies, is hereafter called the "NRC NRC"), which license is now stated to expire on October 21June 29, 20082007. The Unit has been in commercial operation since January 1, 19731968. The Unit was conceived to supply economic power on a cost of service formula basis to the Purchasers. Maine Connecticut Yankee and the Purchaser are parties to a Power power Contract dated as of July 1, 1964 ("Initial Power Contract"). Pursuant to the Initial Power Contract and other identical similar contracts (collectively, the "Initial Power Contracts") between Maine Connecticut Yankee and the other Purchasers, Maine Connecticut Yankee contracted to supply to the Purchasers all of the capacity and electric energy available from the Unit for a term of thirty (30) years following January 1l, 19731968. Maine Connecticut Yankee and the Purchaser are also parties to an Additional Power Contract, dated as of February 1April 30, 1984 ("Additional Power Contract"). The Additional Power Contract and other similar contracts (collectively, the "Additional Power Contracts") between Maine Connecticut Yankee and the other Purchasers provide for an operative term stated to commence on January 21, 2003 1998 (when the Initial Power Contracts terminate) and extending until a date (the "End of Term Date") which is the later to occur of (i) 30 days after the later of the date on which the last of the financial obligations of Maine Connecticut Yankee which constitute elements of the purchase price thereunder has been extinguished by Maine Yankee or (ii) 30 days after the date on which Maine Connecticut Yankee is finally relieved of any obligations under the last of the licenses (operating and/or or possessory) which it holds fromholds, or which may hereafter be issued to it byreceives, from the NRC with respect to the Unit under Unit. The Additional Power Contracts also provide, in the event of their earlier cancellation, for the survival of the decommissioning cost obligation and for the applicable provisions of the Atomic Energy Act of 1954, as amended from time thereof to time (the "Act")remain in effect to permit final billinxx xx xxsts incurred prior to such cancellation. Pursuant to the Power Contract and the Additional Power Contract, the Purchaser is entitled and obligated to take its entitlement percentage of the capacity and net electrical output of the Unit during the service life of the Unit and is obligated to pay therefor monthly its entitlement percentage of Maine Connecticut Yankee's cost of service, including decommissioning costs, whether or not the Unit is operated or whether or not net electrical output is deliveredoperated. Connecticut Yankee and the Purchaser are also parties to a 1987 Supplementary Power Contract, dated as of April l, 1987 ("1987 Supplementary Power Contract"). The 1987 Supplementary Power Contract and other similar contracts (collectively, the "1987 Supplementary Power Contracts") between Connecticut Yankee and the other Purchasers restate and supersede earlier Supplementary Power Contracts and Agreements Amending Supplementary Power Contracts between Connecticut Yankee and the Purchasers. Pursuant to the 1987 Supplementary Power Contracts, the Purchasers make monthly certain supplementary payments to Connecticut Yankee during the terms of the Initial Power Contracts and Additional Power Contracts also provide, in the event of their earlier cancellation, for the survival of the decommissioning cost obligation and for the applicable provisions thereof to remain in effect to permit final xxxxxxxx of costs incurred prior to such cancellationContracts. On August 6December 4, 19971996, the board of directors of Maine Connecticut Yankee, after conducting a thorough review of the economics of continued operation of the Unit for the remainder of the term of the Facility Operating License for the Unit in light of other alternatives available to Maine Connecticut Yankee and the Purchasers, determined that the Unit should be permanently shut down effective August 6December 4, 19971996. The Purchaser concurs in that decision. As a consequence of the shutdown decision, Maine Connecticut Yankee and the Purchaser propose at this time to amend the 1987 Supplementary Power Contract and the Additional Power Contract in various respects in order to clarify and confirm provisions for the recovery under said contracts of the full costs previously incurred by Maine Connecticut Yankee in providing power from the Unit during its useful life and of all costs of decommissioning the Unit, including the costs of maintaining the Unit in a safe condition following the shutdown and prior to its decontamination and dismantlement. Maine Connecticut Yankee and each of the other Purchasers are entering into agreements which are identical to this Agreement except for necessary changes in the names of the parties.

Basic Understandings. Maine Yankee was organized in 1966 to provide a supply of power to its sponsoring utility companies, including the Purchaser (collectively the "Purchasers"). It constructed a nuclear electric generating unit, having a net capability of approximately 830 megawatts electric (the "Unit") at a site on tidewater in the Town of Wiscasset, Maine. On June 27, 1973, Maine Yankee was issued a full-term, Facility Operating License for the Unit by the Atomic Energy Commission (predecessor to the Nuclear Regulatory Commission which, together with any successor agencies, is hereafter called the "NRC NRC"), which license is now stated to expire on October 21, 2008. The Unit has been in commercial operation since January 1, 1973. The Unit was conceived to supply economic power on a cost of service formula basis to the Purchasers. Maine Yankee and the Purchaser are parties to a Power Contract dated as of May 20, 1968 (as herefore amended, the "Power Contract"). Pursuant to the Power Contract and other identical contracts (collectively, the "Power Contracts") between Maine Yankee and the other Purchasers, Maine Yankee contracted to supply to the Purchasers all of the capacity and electric energy available from the Unit for a term of thirty (30) years following January 1, 1973. Maine Yankee and the Purchaser are also parties to an Additional Power Contract, dated as of February 1, 1984 ("Additional Power Contract"). The Additional Power Contract and other similar contracts (collectively, the "Additional Power Contracts") between Maine Yankee and the other Purchasers provide for an operative term stated to commence on January 2, 2003 (when the Power Contracts terminate) and extending until a date which is the later to occur of (i) 30 days after the date on which the last of the financial obligations of Maine Yankee which constitute elements of the purchase price thereunder has been extinguished by Maine Yankee or (ii) 30 days after the date on which Maine Yankee is finally relieved of any obligations under the last of the licenses (operating and/or possessory) which it holds from, or which may hereafter be issued to it by, the NRC with respect to the Unit under applicable provisions of the Atomic Energy Act of 1954, as amended from time to time (the "Act"). Pursuant to the Power Contract and the Additional Power Contract, the Purchaser is entitled and obligated to take its entitlement percentage of the capacity and net electrical output of the Unit during the service life of the Unit and is obligated to pay therefor monthly its entitlement percentage of Maine Yankee's cost of service, including decommissioning costs, whether or not the Unit is operated or whether or not net electrical output is delivered. The Power Contracts and the Additional Power Contracts also provide, in the event of their earlier cancellation, for the survival of the decommissioning cost obligation and for the applicable provisions thereof to remain in effect to permit final xxxxxxxx of costs incurred prior to such cancellation. On August 6, 1997, the board of directors of Maine Yankee, after conducting a thorough review of the economics of continued operation of the Unit for the remainder of the term of the Facility Operating License for the Unit in light of other alternatives available to Maine Yankee and the Purchasers, determined that the Unit should be permanently shut down effective August 6, 1997. The Purchaser concurs in that decision. As a consequence of the shutdown decision, Maine Yankee and the Purchaser propose at this time to amend the Power Contract and the Additional Power Contract in various respects in order to clarify and confirm provisions for the recovery under said contracts of the full costs previously incurred by Maine Yankee in providing power from the Unit during its useful life and of all costs of decommissioning the Unit, including the costs of maintaining the Unit in a safe condition following the shutdown and prior to its decontamination and dismantlement. Maine Yankee and each of the other Purchasers are entering into agreements which are identical to this Agreement except for necessary changes in the names of the parties.

Basic Understandings. Maine Connecticut Yankee was organized in 1966 1962 to provide a for the supply of power to its sponsoring utility companies, including the Purchaser (collectively the "Purchasers"). It constructed a nuclear electric generating unit, having a net capability of approximately 830 582 megawatts electric (the "Unit") at a site on tidewater in the Town of WiscassetHaddam Neck, MaineConnecticut. On June 27, 1973, Maine Connecticut Yankee was issued a full-termfullterm, Facility Operating License for the Unit by the Atomic Energy Commission (predecessor to the Nuclear Regulatory Commission (which, together with any successor agencies, is hereafter called the "NRC NRC"), which license is now stated to expire on October 21June 29, 20082007. The Unit has been in commercial operation since January 1, 19731968. The Unit was conceived to supply economic power on a cost of service formula basis to the Purchasers. Maine Connecticut Yankee and the Purchaser are parties to a Power Contract dated as of July 1, l964 ("Initial Power Contract"). Pursuant to the Initial Power Contract and other identical similar contracts (collectively, the "Initial Power Contracts") between Maine Connecticut Yankee and the other Purchasers, Maine Connecticut Yankee contracted to supply to the Purchasers all of the capacity and electric energy available from the Unit for a term of thirty (30) years following January 1, 19731968. Maine Connecticut Yankee and the Purchaser are also parties to an Additional Power Contract, dated as of February 1April 30, 1984 ("Additional Power Contract"). The Additional Power Contract and other similar contracts (collectively, the "Additional Power Contracts") between Maine Connecticut Yankee and the other Purchasers provide for an operative term stated to commence on January 21, 2003 1998 (when the Initial Power Contracts terminate) and extending until a date (the "End of Term Date") which is the later to occur of (i) 30 days after the later of the date on which the last of the financial obligations of Maine Connecticut Yankee which constitute elements of the purchase price thereunder has been extinguished by Maine Yankee or (ii) 30 days after the date on which Maine Connecticut Yankee is finally relieved of any obligations under the last of the licenses (operating and/or or possessory) which it holds fromholds, or which may hereafter be issued to it byreceives, from the NRC with respect to the Unit under Unit. The Additional Power Contracts also provide, in the event of their earlier cancellation, for the survival of the decommissioning cost obligation and for the applicable provisions thereof to remain in effect to permit final xxxxxxxx of the Atomic Energy Act of 1954, as amended from time costs incurred prior to time (the "Act")such cancellation. Pursuant to the Power Contract and the Additional Power Contract, the Purchaser is entitled and obligated to take its entitlement percentage of the capacity and net electrical output of the Unit during the service life of the Unit and is obligated to pay therefor monthly its entitlement percentage of Maine Connecticut Yankee's cost of service, including decommissioning costs, whether or not the Unit is operated or whether or not net electrical output is deliveredoperated. The Power Contracts and the Additional Power Contracts also provide, in the event of their earlier cancellation, for the survival of the decommissioning cost obligation and for the applicable provisions thereof to remain in effect to permit final xxxxxxxx of costs incurred prior to such cancellation. On August 6, 1997, the board of directors of Maine Yankee, after conducting a thorough review of the economics of continued operation of the Unit for the remainder of the term of the Facility Operating License for the Unit in light of other alternatives available to Maine Yankee and the Purchasers, determined that the Unit should be permanently shut down effective August 6, 1997. The Purchaser concurs in that decision. As a consequence of the shutdown decision, Maine Connecticut Yankee and the Purchaser propose at this time are also parties to amend the a 1987 Supplementary Power Contract and the Additional Power Contract in various respects in order to clarify and confirm provisions for the recovery under said contracts Contract, dated as of the full costs previously incurred by Maine Yankee in providing power from the Unit during its useful life and of all costs of decommissioning the UnitApril 1, including the costs of maintaining the Unit in a safe condition following the shutdown and prior to its decontamination and dismantlement. Maine Yankee and each of the other Purchasers are entering into agreements which are identical to this Agreement except for necessary changes in the names of the parties.1987 ("1987 Supplementary

Basic Understandings. Maine Connecticut Yankee was organized in 1966 1962 to provide a for the supply of power to its sponsoring utility companies, including the Purchaser (collectively the "Purchasers"). It constructed a nuclear electric generating unit, having a net capability of approximately 830 582 megawatts electric (the "Unit") at a site on tidewater in the Town of WiscassetHaddam Neck, MaineConnecticut. On June 27, 1973, Maine Connecticut Yankee was issued a full-term, Facility Operating License for the Unit by the Atomic Energy Commission (predecessor to the Nuclear Regulatory Commission (which, together with any successor agencies, is hereafter called the "NRC NRC"), which license is now stated dated to expire on October 21June 29, 20082007. The Unit has been in commercial operation since January 1, 19731968. The Unit was conceived to supply economic power on a cost of service formula basis to the Purchasers. Maine Connecticut Yankee and the Purchaser are parties to a Power Contract dated as of July 1, 1964 ("Initial Power Contract"). Pursuant to the Initial Power Contract and other identical similar contracts (collectively, the "Initial Power Contracts") between Maine Connecticut Yankee and the other Purchasers, Maine Connecticut Yankee contracted to supply to the Purchasers all of the capacity and electric energy available from the Unit for a term of thirty (30) years following January 1, 19731968. Maine Connecticut Yankee and the Purchaser are also parties to an Additional Power Contractcontract, dated as of February 1April 30, 1984 ("Additional Power Contract"). The Additional Power Contract and other similar contracts (collectively, the "Additional Power Contracts") between Maine Connecticut Yankee and the other Purchasers provide for an operative term stated to commence on January 21, 2003 1998 (when the Initial Power Contracts terminate) and extending until a date (the "End of Term Date") which is the later to occur of (i) 30 days after the later of the date on which the last of the financial obligations of Maine Connecticut Yankee which constitute elements of the purchase price thereunder has been extinguished by Maine Yankee or (ii) 30 days after the date on which Maine Connecticut Yankee is finally relieved of any obligations under the last of the licenses (operating and/or or possessory) which it holds fromholds, or which may hereafter be issued to it byreceives, from the NRC with wit+ respect to the Unit under Unit. The Additional Power Contracts also provide, in the event of their earlier cancellation, for the survival of the decommissioning cost obligation and for the applicable provisions thereof to remain in effect to permit final billings of the Atomic Energy Act of 1954, as amended from time costs incurred prior to time (the "Act")such cancellation. Pursuant Xxxxxant to the Power Contract and the Additional Power Contract, the Purchaser is entitled and obligated to take its entitlement percentage of the capacity and net electrical output of the Unit during the service life of the Unit and is obligated to pay therefor monthly its entitlement percentage of Maine Connecticut Yankee's cost of service, including decommissioning costs, whether or not the Unit is operated or whether or not net electrical output is deliveredoperated. Connecticut Yankee and the Purchaser are also parties to a 1987 Supplementary Power Contract, dated as of April 1, 1987 ("1987 Supplementary Power Contract"). The 1987 Supplementary Power Contract and other similar contracts (collectively, the "1987 Supplementary Power Contracts) between Connecticut Yankee and the other Purchasers restate and supersede earlier Supplementary Power Contracts and Agreements Amending Supplementary Power Contracts between Connecticut Yankee and the Purchasers. Pursuant to the 1987 Supplementary Power Contracts, the Purchasers make monthly certain supplementary payments to Connecticut Yankee during the term of the Initial Power Contracts and Additional Power Contracts also provide, in the event of their earlier cancellation, for the survival of the decommissioning cost obligation and for the applicable provisions thereof to remain in effect to permit final xxxxxxxx of costs incurred prior to such cancellationContracts. On August 6December 4, 19971996, the board of directors of Maine Connecticut Yankee, after conducting a thorough review of the economics of continued operation of the Unit for the remainder of the term of the Facility Operating License for the Unit in light of other alternatives available to Maine Connecticut Yankee and the Purchasers, determined that the Unit should be permanently shut down effective August 6December 4, 19971996. The Purchaser concurs in that decision. As a consequence of the shutdown decision, Maine Connecticut Yankee and the Purchaser propose at this time to amend the 1987 Supplementary Power Contract and the Additional Power Contract in various respects in order to clarify and confirm provisions for the recovery under said contracts of the full costs previously incurred by Maine Connecticut Yankee in providing power from the Unit during its useful life and of all costs of decommissioning the Unit, including the costs of maintaining the Unit in a safe condition following the shutdown and prior to its decontamination and dismantlement. Maine Connecticut Yankee and each of the other Purchasers are entering into agreements which are identical to this Agreement except for necessary changes in the names of the parties.