External Deliveries to Satisfy B.C. Hydro Interutility Agreement Obligations. The parties acknowledge that, pursuant to certain agreements among the Province of British Columbia, the City of Seattle (including its division Seattle City Light) and B.C. Hydro, B.C. Hydro is the assignee of certain obligations to deliver electricity to Seattle City Light, and that B.C. Hydro subsequently assigned to Powerex certain of the operating obligations as they relate to delivery of electricity (the “Skagit Agreements”). In connection with Powerex delivering electricity under the Skagit Agreements, Powerex has the discretion whether to supply electricity to Seattle City Light from the B.C. Hydro System or from sources outside of the B.C. Hydro System. If, in an hour, Powerex schedules energy to Seattle City Light that it has acquired from sources outside of the
