Common use of Levels of Responsibility Clause in Contracts

Levels of Responsibility. Each month, the Owner is responsible for all Nonmarket fuel imbalance charges incurred up to and including 2.25 percent of the CAISO Facility Monthly Billed Fuel Cost. The Monthly Fuel Imbalance Charge is equal to 75% of 1st Tier Imbalance plus 100% of 2nd Tier Imbalances; Where: The 1st Tier Imbalances is that portion of the Monthly Sum of Daily Imbalance Charges which exceeds 2.25 percent of the CAISO Facility Monthly Billed Fuel Cost for the Month and is less than or equal to 10.0 percent of the CAISO Facility Monthly Billed Fuel Cost for the Month. The 2nd Tier Imbalances is that portion of the Monthly Sum of Daily Imbalance Charges which is greater than 10.0 percent of the CAISO Facility Monthly Billed Fuel Cost for the Month. The Monthly Sum of Daily Imbalance Charges is the sum for all days in the month of imbalance charges and similar fees and penalties imposed on Owner (or its fuel supplier and paid by Owner) by transportation providers delivering gas to the Units because deliveries were in excess of or less than scheduled for a given day, but only to the extent that (i) the imbalance was caused by Owner compliance with a Dispatch Notice issued after (or less than 30 minutes prior) to the Transporter’s deadline for scheduling transportation, and (ii) Owner issued a notice to the CAISO as soon as possible after the Owner became aware it might incur imbalance charges advising CAISO of such possible charges. In any month in which Owner incurs a 1st Tier or 2nd Tier Imbalance charge, Owner will provide the CAISO with a report showing the allocation of the imbalance charges between Market Transactions and Nonmarket Transactions. If CAISO or the Responsible Utility disagree on allocation, the dispute will be resolved through ADR. To receive payment for a 2nd Tier Imbalance, Owner must document in an informational filing with FERC that the charges were appropriately allocated to Nonmarket Transactions and it was commercially reasonable to incur them. As used in this context and for purposes of calculating imbalance charges, “commercially reasonable” does not mean that Owner is required to acquire storage to avoid imbalances. If either the CAISO or Responsible Utility disagree with the imbalance charges, desires a formal review and gives such notice to the Owner within 30 days of the informational filing, the Owner must file under Section 205 of the Federal Power Act to collect any 2nd Tier Imbalance charges. Pursuant to the above, the Monthly Fuel Imbalance Charge is calculated in accordance with Equation C1-9. Monthly Monthly Sum of Equation C1-9 CAISO Facility Monthly Sum of CAISO Facility Fuel Imbalance Charge = 0.75 ◆ Daily Imbalance Charges – 0.0225 Monthly ◆ Billed Fuel Cost + 0.25 ◆ Daily Imbalance Charges – 0.10 ◆ Monthly Billed Fuel Cost Note that if either of the two bracketed portions of the equation yields a value less than or equal to zero, then that portion of the equation is set to zero.

Levels of Responsibility. Each month, the Owner is responsible for all Nonmarket fuel imbalance charges incurred up to and including 2.25 percent of the CAISO Facility Monthly Billed Fuel Cost. The Monthly Fuel Imbalance Charge is equal to 75% of 1st Tier Imbalance plus 100% of 2nd Tier Imbalances; Where: The 1st Tier Imbalances is that portion of the Monthly Sum of Daily Imbalance Charges which exceeds 2.25 percent of the CAISO Facility Monthly Billed Fuel Cost for the Month and is less than or equal to 10.0 percent of the CAISO Facility Monthly Billed Fuel Cost for the Month. The 2nd Tier Imbalances is that portion of the Monthly Sum of Daily Imbalance Charges which is greater than 10.0 percent of the CAISO Facility Monthly Billed Fuel Cost for the Month. The Monthly Sum of Daily Imbalance Charges is the sum for all days in the month of imbalance charges and similar fees and penalties imposed on Owner (or its fuel supplier and paid by Owner) by transportation providers delivering gas to the Units because deliveries were in excess of or less than scheduled for a given day, but only to the extent that (i) the imbalance was caused by Owner compliance with a Dispatch Notice issued after (or less than 30 minutes prior) to the Transporter’s deadline for scheduling transportation, and (ii) Owner issued a notice to the CAISO as soon as possible after the Owner became aware it might incur imbalance charges advising CAISO of such possible charges. In any month in which Owner incurs a 1st Tier or 2nd Tier Imbalance charge, Owner will provide the CAISO with a report showing the allocation of the imbalance charges between Market Transactions and Nonmarket Transactions. If CAISO or the Responsible Utility disagree on allocation, the dispute will be resolved through ADR. To receive payment for a 2nd Tier Imbalance, Owner must document in an informational filing with FERC that the charges were appropriately allocated to Nonmarket Transactions and it was commercially reasonable to incur them. As used in this context and for purposes of calculating imbalance charges, “"commercially reasonable” " does not mean that Owner is required to acquire storage to avoid imbalances. If either the CAISO or Responsible Utility disagree with the imbalance charges, desires a formal review and gives such notice to the Owner within 30 days of the informational filing, the Owner must file under Section 205 of the Federal Power Act to collect any 2nd Tier Imbalance charges. Pursuant to the above, the Monthly Fuel Imbalance Charge is calculated in accordance with Equation C1-9. Monthly Monthly Sum of Equation C1-9 CAISO Facility Monthly Sum of CAISO Facility Fuel Imbalance Charge = 0.75 ◆ Daily  Imbalance Charges – 0.0225 Monthly ◆  Billed Fuel Cost + 0.25 ◆  Daily Imbalance Charges – 0.10 ◆  Monthly Billed Fuel Cost Note that if either of the two bracketed portions of the equation yields a value less than or equal to zero, then that portion of the equation is set to zero.

Levels of Responsibility. Each month, the Owner is responsible for all Nonmarket fuel imbalance charges incurred up to and including 2.25 percent of the CAISO Facility Monthly Billed Fuel Cost. The Monthly Fuel Imbalance Charge is equal to 75% of 1st Tier Imbalance plus 100% of 2nd Tier Imbalances; Where: The 1st Tier Imbalances is that portion of the Monthly Sum of Daily Imbalance Charges which exceeds 2.25 percent of the CAISO Facility Monthly Billed Fuel Cost for the Month and is less than or equal to 10.0 percent of the CAISO Facility Monthly Billed Fuel Cost for the Month. The 2nd Tier Imbalances is that portion of the Monthly Sum of Daily Imbalance Charges which is greater than 10.0 percent of the CAISO Facility Monthly Billed Fuel Cost for the Month. The Monthly Sum of Daily Imbalance Charges is the sum for all days in the month of imbalance charges and similar fees and penalties imposed on Owner (or its fuel supplier and paid by Owner) by transportation providers delivering gas to the Units because deliveries were in excess of or less than scheduled for a given day, but only to the extent that (i) the imbalance was caused by Owner compliance with a Dispatch Notice issued after (or less than 30 minutes prior) to the Transporter’s deadline for scheduling transportation, and (ii) Owner issued a notice to the CAISO as soon as possible after the Owner became aware it might incur imbalance charges advising CAISO of such possible charges. In any month in which Owner incurs a 1st Tier or 2nd Tier Imbalance charge, Owner will provide the CAISO with a report showing the allocation of the imbalance charges between Market Transactions and Nonmarket Transactions. If CAISO or the Responsible Utility disagree disagrees on allocation, the dispute will be resolved through ADR. To receive payment for a 2nd Tier Imbalance, Owner must document in an informational filing with FERC that the charges were appropriately allocated to Nonmarket Transactions and it was commercially reasonable to incur them. As used in this context and for purposes of calculating imbalance charges, “"commercially reasonable” " does not mean that Owner is required to acquire storage to avoid imbalances. If either the CAISO or Responsible Utility disagree disagrees with the imbalance charges, desires a formal review and gives such notice to the Owner within 30 days of the informational filing, the Owner must file under Section 205 of the Federal Power Act to collect any 2nd Tier Imbalance charges. Pursuant to the above, the Monthly Fuel Imbalance Charge is calculated in accordance with Equation C1-9. Monthly Monthly Sum of Equation C1-9 CAISO Facility Monthly Sum of CAISO Facility Fuel Imbalance Charge = 0.75 ◆ ­ Monthly Sum of Daily Imbalance Charges – 0.0225 ­ CAISO Facility Monthly ◆ Billed Fuel Cost + 0.25 ◆ ­ Monthly Sum of Daily Imbalance Charges – 0.10 ◆ ­ CAISO Facility Monthly Billed Fuel Cost Note that if either of the two bracketed portions of the equation yields a value less than or equal to zero, then that portion of the equation is set to zero.

Levels of Responsibility. Each month, the Owner is responsible for all Nonmarket fuel imbalance charges incurred up to and including 2.25 percent of the CAISO Facility Monthly Billed Fuel Cost. The Monthly Fuel Imbalance Charge is equal to 75% of 1st Tier Imbalance plus 100% of 2nd Tier Imbalances; Where: The 1st Tier Imbalances is that portion of the Monthly Sum of Daily Imbalance Charges which exceeds 2.25 percent of the CAISO Facility Monthly Billed Fuel Cost for the Month and is less than or equal to 10.0 percent of the CAISO Facility Monthly Billed Fuel Cost for the Month. The 2nd Tier Imbalances is that portion of the Monthly Sum of Daily Imbalance Charges which is greater than 10.0 percent of the CAISO Facility Monthly Billed Fuel Cost for the Month. The Monthly Sum of Daily Imbalance Charges is the sum for all days in the month of imbalance charges and similar fees and penalties imposed on Owner (or its fuel supplier and paid by Owner) by transportation providers delivering gas to the Units because deliveries were in excess of or less than scheduled for a given day, but only to the extent that (i) the imbalance was caused by Owner compliance with a Dispatch Notice issued after (or less than 30 minutes prior) to the Transporter’s deadline for scheduling transportation, and (ii) Owner issued a notice to the CAISO as soon as possible after the Owner became aware it might incur imbalance charges advising CAISO of such possible charges. In any month in which Owner incurs a 1st Tier or 2nd Tier Imbalance charge, Owner will provide the CAISO with a report showing the allocation of the imbalance charges between Market Transactions and Nonmarket Transactions. If CAISO or the Responsible Utility disagree on allocation, the dispute will be resolved through ADR. To receive payment for a 2nd Tier Imbalance, Owner must document in an informational filing with FERC that the charges were appropriately allocated to Nonmarket Transactions and it was commercially reasonable to incur them. As used in this context and for purposes of calculating imbalance charges, “commercially reasonable” does not mean that Owner is required to acquire storage to avoid imbalances. If either the CAISO or Responsible Utility disagree with the imbalance charges, desires a formal review and gives such notice to the Owner within 30 days of the informational filing, the Owner must file under Section 205 of the Federal Power Act to collect any 2nd Tier Imbalance charges. Pursuant to the above, the Monthly Fuel Imbalance Charge is calculated in accordance with Equation C1-9. Monthly Monthly Sum of Equation C1-9 CAISO Facility Monthly Sum of CAISO Facility Fuel Imbalance Charge = 0.75 ◆  Daily Imbalance Charges – 0.0225 Monthly ◆  Billed Fuel Cost + 0.25 ◆  Daily Imbalance Charges – 0.10 ◆  Monthly Billed Fuel Cost Note that if either of the two bracketed portions of the equation yields a value less than or equal to zero, then that portion of the equation is set to zero.

Levels of Responsibility. Each month, the Owner is responsible for all Nonmarket fuel imbalance charges incurred up to and including 2.25 percent of the CAISO Facility Monthly Billed Fuel Cost. The Monthly Fuel Imbalance Charge is equal to 75% of 1st Tier Imbalance plus 100% of 2nd Tier Imbalances; Where: The 1st Tier Imbalances is that portion of the Monthly Sum of Daily Imbalance Charges which exceeds 2.25 percent of the CAISO Facility Monthly Billed Fuel Cost for the Month and is less than or equal to 10.0 percent of the CAISO Facility Monthly Billed Fuel Cost for the Month. The 2nd Tier Imbalances is that portion of the Monthly Sum of Daily Imbalance Charges which is greater than 10.0 percent of the CAISO Facility Monthly Billed Fuel Cost for the Month. The Monthly Sum of Daily Imbalance Charges is the sum for all days in the month of imbalance charges and similar fees and penalties imposed on Owner (or its fuel supplier and paid by Owner) by transportation providers delivering gas to the Units because deliveries were in excess of or less than scheduled for a given day, but only to the extent that (i) the imbalance was caused by Owner compliance with a Dispatch Notice issued after (or less than 30 minutes prior) to the Transporter’s deadline for scheduling transportation, and (ii) Owner issued a notice to the CAISO as soon as possible after the Owner became aware it might incur imbalance charges advising CAISO of such possible charges. In any month in which Owner incurs a 1st Tier or 2nd Tier Imbalance charge, Owner will provide the CAISO with a report showing the allocation of the imbalance charges between Market Transactions and Nonmarket Transactions. If CAISO or the Responsible Utility disagree on allocation, the dispute will be resolved through ADR. To receive payment for a 2nd Tier Imbalance, Owner must document in an informational filing with FERC that the charges were appropriately allocated to Nonmarket Transactions and it was commercially reasonable to incur them. As used in this context and for purposes of calculating imbalance charges, “"commercially reasonable” " does not mean that Owner is required to acquire storage to avoid imbalances. If either the CAISO or Responsible Utility disagree with the imbalance charges, desires a formal review and gives such notice to the Owner within 30 days of the informational filing, the Owner must file under Section 205 of the Federal Power Act to collect any 2nd Tier Imbalance charges. Pursuant to the above, the Monthly Fuel Imbalance Charge is calculated in accordance with Equation C1-9. Monthly Monthly Sum of Equation C1-9 CAISO Facility Monthly Sum of CAISO Facility Fuel Imbalance Charge = 0.75 ◆  Monthly Sum of Daily Imbalance Charges – 0.0225  CAISOFacility Monthly ◆ Billed Fuel Cost + 0.25 ◆  Monthly Sum of Daily Imbalance Charges – 0.10 ◆  CAISO Facility Monthly Billed Fuel Cost Note that if either of the two bracketed portions of the equation yields a value less than or equal to zero, then that portion of the equation is set to zero.

Levels of Responsibility. Each month, the Owner is responsible for all Nonmarket fuel imbalance charges incurred up to and including 2.25 percent of the CAISO Facility Monthly Billed Fuel Cost. The Monthly Fuel Imbalance Charge is equal to 75% of 1st Tier Imbalance plus 100% of 2nd Tier Imbalances; Where: The 1st Tier Imbalances is that portion of the Monthly Sum of Daily Imbalance Charges which exceeds 2.25 percent of the CAISO Facility Monthly Billed Fuel Cost for the Month and is less than or equal to 10.0 percent of the CAISO Facility Monthly Billed Fuel Cost for the Month. The 2nd Tier Imbalances is that portion of the Monthly Sum of Daily Imbalance Charges which is greater than 10.0 percent of the CAISO Facility Monthly Billed Fuel Cost for the Month. The Monthly Sum of Daily Imbalance Charges is the sum for all days in the month of imbalance charges and similar fees and penalties imposed on Owner (or its fuel supplier and paid by Owner) by transportation providers delivering gas to the Units because deliveries were in excess of or less than scheduled for a given day, but only to the extent that (i) the imbalance was caused by Owner compliance with a Dispatch Notice issued after (or less than 30 minutes prior) to the Transporter’s deadline for scheduling transportation, and (ii) Owner issued a notice to the CAISO as soon as possible after the Owner became aware it might incur imbalance charges advising CAISO of such possible charges. In any month in which Owner incurs a 1st Tier or 2nd Tier Imbalance charge, Owner will provide the CAISO with a report showing the allocation of the imbalance charges between Market Transactions and Nonmarket Transactions. If CAISO or the Responsible Utility disagree on allocation, the dispute will be resolved through ADR. To receive payment for a 2nd Tier Imbalance, Owner must document in an informational filing with FERC that the charges were appropriately allocated to Nonmarket Transactions and it was commercially reasonable to incur them. As used in this context and for purposes of calculating imbalance charges, “"commercially reasonable” " does not mean that Owner is required to acquire storage to avoid imbalances. If either the CAISO or Responsible Utility disagree with the imbalance charges, desires a formal review and gives such notice to the Owner within 30 days of the informational filing, the Owner must file under Section 205 of the Federal Power Act to collect any 2nd Tier Imbalance charges. Pursuant to the above, the Monthly Fuel Imbalance Charge is calculated in accordance with Equation C1-9. Monthly Monthly Sum of Equation C1-9 CAISO Facility Monthly Sum of CAISO Facility Fuel Imbalance Charge = 0.75 ◆  Monthly Sum of Daily Imbalance Charges – 0.0225  CAISO Facility Monthly ◆ Billed Fuel Cost + 0.25 ◆  Monthly Sum of Daily Imbalance Charges – 0.10 ◆  CAISO Facility Monthly Billed Fuel Cost Note that if either of the two bracketed portions of the equation yields a value less than or equal to zero, then that portion of the equation is set to zero.

Levels of Responsibility. Each month, the Owner is responsible for all Nonmarket fuel imbalance charges incurred up to and including 2.25 percent of the CAISO Facility Monthly Billed Fuel Cost. The Monthly Fuel Imbalance Charge is equal to 75% of 1st Tier Imbalance plus 100% of 2nd Tier Imbalances; Where: The 1st Tier Imbalances is that portion of the Monthly Sum of Daily Imbalance Charges which exceeds 2.25 percent of the CAISO Facility Monthly Billed Fuel Cost for the Month and is less than or equal to 10.0 percent of the CAISO Facility Monthly Billed Fuel Cost for the Month. The 2nd Tier Imbalances is that portion of the Monthly Sum of Daily Imbalance Charges which is greater than 10.0 percent of the CAISO Facility Monthly Billed Fuel Cost for the Month. The Monthly Sum of Daily Imbalance Charges is the sum for all days in the month of imbalance charges and similar fees and penalties imposed on Owner (or its fuel supplier and paid by Owner) by transportation providers delivering gas to the Units because deliveries were in excess of or less than scheduled for a given day, but only to the extent that (i) the imbalance was caused by Owner compliance with a Dispatch Notice issued after (or less than 30 minutes prior) to the Transporter’s deadline for scheduling transportation, and (ii) Owner issued a notice to the CAISO as soon as possible after the Owner became aware it might incur imbalance charges advising CAISO of such possible charges. In any month in which Owner incurs a 1st Tier or 2nd Tier Imbalance charge, Owner will provide the CAISO with a report showing the allocation of the imbalance charges between Market Transactions and Nonmarket Transactions. If CAISO or the Responsible Utility disagree disagrees on allocation, the dispute will be resolved through ADR. To receive payment for a 2nd Tier Imbalance, Owner must document in an informational filing with FERC that the charges were appropriately allocated to Nonmarket Transactions and it was commercially reasonable to incur them. As used in this context and for purposes of calculating imbalance charges, “"commercially reasonable” " does not mean that Owner is required to acquire storage to avoid imbalances. If either the CAISO or Responsible Utility disagree disagrees with the imbalance charges, desires a formal review and gives such notice to the Owner within 30 days of the informational filing, the Owner must file under Section 205 of the Federal Power Act to collect any 2nd Tier Imbalance charges. Pursuant to the above, the Monthly Fuel Imbalance Charge is calculated in accordance with Equation C1-9. Monthly Monthly Sum of Equation C1-9 CAISO Facility Monthly Sum of CAISO Facility Fuel Imbalance Charge = 0.75 ◆ ­ ​​ Monthly Sum of Daily Imbalance Charges – 0.0225 ­ ​​CAISO Facility Monthly ◆ Billed Fuel Cost + 0.25 ◆ ­ ​​ Monthly Sum of Daily Imbalance Charges – 0.10 ◆ ­ CAISO Facility Monthly Billed Fuel Cost ​​ Note that if either of the two bracketed portions of the equation yields a value less than or equal to zero, then that portion of the equation is set to zero.

Levels of Responsibility. Each month, the Owner is responsible for all Nonmarket fuel imbalance charges incurred up to and including 2.25 percent of the CAISO Facility Monthly Billed Fuel Cost. The Monthly Fuel Imbalance Charge is equal to 75% of 1st Tier Imbalance plus 100% of 2nd Tier Imbalances; Where: The 1st Tier Imbalances is that portion of the Monthly Sum of Daily Imbalance Charges which exceeds 2.25 percent of the CAISO Facility Monthly Billed Fuel Cost for the Month and is less than or equal to 10.0 percent of the CAISO Facility Monthly Billed Fuel Cost for the Month. The 2nd Tier Imbalances is that portion of the Monthly Sum of Daily Imbalance Charges which is greater than 10.0 percent of the CAISO Facility Monthly Billed Fuel Cost for the Month. The Monthly Sum of Daily Imbalance Charges is the sum for all days in the month of imbalance charges and similar fees and penalties imposed on Owner (or its fuel supplier and paid by Owner) by transportation providers delivering gas to the Units because deliveries were in excess of or less than scheduled for a given day, but only to the extent that (i) the imbalance was caused by Owner compliance with a Dispatch Notice issued after (or less than 30 minutes prior) to the Transporter’s deadline for scheduling transportation, and (ii) Owner issued a notice to the CAISO as soon as possible after the Owner became aware it might incur imbalance charges advising CAISO of such possible charges. In any month in which Owner incurs a 1st Tier or 2nd Tier Imbalance charge, Owner will provide the CAISO with a report showing the allocation of the imbalance charges between Market Transactions and Nonmarket Transactions. If CAISO or the Responsible Utility disagree on allocation, the dispute will be resolved through ADR. To receive payment for a 2nd Tier Imbalance, Owner must document in an informational filing with FERC that the charges were appropriately allocated to Nonmarket Transactions and it was commercially reasonable to incur them. As used in this context and for purposes of calculating imbalance charges, “"commercially reasonable” " does not mean that Owner is required to acquire storage to avoid imbalances. If either the CAISO or Responsible Utility disagree with the imbalance charges, desires a formal review and gives such notice to the Owner within 30 days of the informational filing, the Owner must file under Section 205 of the Federal Power Act to collect any 2nd Tier Imbalance charges. Pursuant to the above, the Monthly Fuel Imbalance Charge is calculated in accordance with Equation C1-9. Monthly Monthly Sum of Equation C1-9 CAISO Facility Monthly Sum of CAISO Facility Fuel Imbalance Charge = 0.75 ◆  Monthly Sum of Daily Imbalance Charges – 0.0225  CAISOFacility Monthly ◆ Billed Fuel Cost + 0.25 ◆  Monthly Sum of Daily Imbalance Charges – 0.10 ◆  CAISOFacility Monthly Billed Fuel Cost Note that if either of the two bracketed portions of the equation yields a value less than or equal to zero, then that portion of the equation is set to zero.

Levels of Responsibility. Each month, the Owner is responsible for all Nonmarket fuel imbalance charges incurred up to and including 2.25 percent of the CAISO Facility Monthly Billed Fuel Cost. The Monthly Fuel Imbalance Charge is equal to 75% of 1st Tier Imbalance plus 100% of 2nd Tier Imbalances; Where: The 1st Tier Imbalances is that portion of the Monthly Sum of Daily Imbalance Charges which exceeds 2.25 percent of the CAISO Facility Monthly Billed Fuel Cost for the Month and is less than or equal to 10.0 percent of the CAISO Facility Monthly Billed Fuel Cost for the Month. The 2nd Tier Imbalances is that portion of the Monthly Sum of Daily Imbalance Charges which is greater than 10.0 percent of the CAISO Facility Monthly Billed Fuel Cost for the Month. The Monthly Sum of Daily Imbalance Charges is the sum for all days in the month of imbalance charges and similar fees and penalties imposed on Owner (or its fuel supplier and paid by Owner) by transportation providers delivering gas to the Units because deliveries were in excess of or less than scheduled for a given day, but only to the extent that (i) the imbalance was caused by Owner compliance with a Dispatch Notice issued after (or less than 30 minutes prior) to the Transporter’s deadline for scheduling transportation, and (ii) Owner issued a notice to the CAISO as soon as possible after the Owner became aware it might incur imbalance charges advising CAISO of such possible charges. In any month in which Owner incurs a 1st Tier or 2nd Tier Imbalance charge, Owner will provide the CAISO with a report showing the allocation of the imbalance charges between Market Transactions and Nonmarket Transactions. If CAISO or the Responsible Utility disagree on allocation, the dispute will be resolved through ADR. To receive payment for a 2nd Tier Imbalance, Owner must document in an informational filing with FERC that the charges were appropriately allocated to Nonmarket Transactions and it was commercially reasonable to incur them. As used in this context and for purposes of calculating imbalance charges, “"commercially reasonable” " does not mean that Owner is required to acquire storage to avoid imbalances. If either the CAISO or Responsible Utility disagree with the imbalance charges, desires a formal review and gives such notice to the Owner within 30 days of the informational filing, the Owner must file under Section 205 of the Federal Power Act to collect any 2nd Tier Imbalance charges. Pursuant to the above, the Monthly Fuel Imbalance Charge is calculated in accordance with Equation C1-9. Monthly Monthly Sum of Equation C1-9 CAISO Facility Monthly Sum of CAISO Facility Fuel Imbalance Charge = 0.75 ◆ 🟏 Monthly Sum of Daily Imbalance Charges – 0.0225 🟏 CAISOFacility Monthly ◆ Billed Fuel Cost + 0.25 ◆ 🟏 Monthly Sum of Daily Imbalance Charges – 0.10 ◆ 🟏 CAISO Facility Monthly Billed Fuel Cost Note that if either of the two bracketed portions of the equation yields a value less than or equal to zero, then that portion of the equation is set to zero.

Levels of Responsibility. Each month, the Owner is responsible for all Nonmarket fuel imbalance charges incurred up to and including 2.25 percent of the CAISO Facility Monthly Billed Fuel Cost. The Monthly Fuel Imbalance Charge is equal to 75% of 1st Tier Imbalance plus 100% of 2nd Tier Imbalances; Where: The 1st Tier Imbalances is that portion of the Monthly Sum of Daily Imbalance Charges which exceeds 2.25 percent of the CAISO Facility Monthly Billed Fuel Cost for the Month and is less than or equal to 10.0 percent of the CAISO Facility Monthly Billed Fuel Cost for the Month. The 2nd Tier Imbalances is that portion of the Monthly Sum of Daily Imbalance Charges which is greater than 10.0 percent of the CAISO Facility Monthly Billed Fuel Cost for the Month. The Monthly Sum of Daily Imbalance Charges is the sum for all days in the month of imbalance charges and similar fees and penalties imposed on Owner (or its fuel supplier and paid by Owner) by transportation providers delivering gas to the Units because deliveries were in excess of or less than scheduled for a given day, but only to the extent that (i) the imbalance was caused by Owner compliance with a Dispatch Notice issued after (or less than 30 minutes prior) to the Transporter’s deadline for scheduling transportation, and (ii) Owner issued a notice to the CAISO as soon as possible after the Owner became aware it might incur imbalance charges advising CAISO of such possible charges. In any month in which Owner incurs a 1st Tier or 2nd Tier Imbalance charge, Owner will provide the CAISO with a report showing the allocation of the imbalance charges between Market Transactions and Nonmarket Transactions. If CAISO or the Responsible Utility disagree on allocation, the dispute will be resolved through ADR. To receive payment for a 2nd Tier Imbalance, Owner must document in an informational filing with FERC that the charges were appropriately allocated to Nonmarket Transactions and it was commercially reasonable to incur them. As used in this context and for purposes of calculating imbalance charges, “"commercially reasonable” " does not mean that Owner is required to acquire storage to avoid imbalances. If either the CAISO or Responsible Utility disagree with the imbalance charges, desires a formal review and gives such notice to the Owner within 30 days of the informational filing, the Owner must file under Section 205 of the Federal Power Act to collect any 2nd Tier Imbalance charges. Pursuant to the above, the Monthly Fuel Imbalance Charge is calculated in accordance with Equation C1-9. Monthly Monthly Sum of Equation C1-9 CAISO Facility Monthly Sum of CAISO Facility Fuel Imbalance Charge = 0.75 ◆ 🟏 Monthly Sum of Daily Imbalance Charges – 0.0225 🟏 CAISOFacility Monthly ◆ Billed Fuel Cost + 0.25 ◆ 🟏 Monthly Sum of Daily Imbalance Charges – 0.10 ◆ 🟏 CAISOFacility Monthly Billed Fuel Cost Note that if either of the two bracketed portions of the equation yields a value less than or equal to zero, then that portion of the equation is set to zero.

Levels of Responsibility. Each month, the Owner is responsible for all Nonmarket fuel imbalance charges incurred up to and including 2.25 percent of the CAISO Facility Monthly Billed Fuel Cost. The Monthly Fuel Imbalance Charge is equal to 75% of 1st Tier Imbalance plus 100% of 2nd Tier Imbalances; Where: The 1st Tier Imbalances is that portion of the Monthly Sum of Daily Imbalance Charges which exceeds 2.25 percent of the CAISO Facility Monthly Billed Fuel Cost for the Month and is less than or equal to 10.0 percent of the CAISO Facility Monthly Billed Fuel Cost for the Month. The 2nd Tier Imbalances is that portion of the Monthly Sum of Daily Imbalance Charges which is greater than 10.0 percent of the CAISO Facility Monthly Billed Fuel Cost for the Month. The Monthly Sum of Daily Imbalance Charges is the sum for all days in the month of imbalance charges and similar fees and penalties imposed on Owner (or its fuel supplier and paid by Owner) by transportation providers delivering gas to the Units because deliveries were in excess of or less than scheduled for a given day, but only to the extent that (i) the imbalance was caused by Owner compliance with a Dispatch Notice issued after (or less than 30 minutes prior) to the Transporter’s deadline for scheduling transportation, and (ii) Owner issued a notice to the CAISO as soon as possible after the Owner became aware it might incur imbalance charges advising CAISO of such possible charges. In any month in which Owner incurs a 1st Tier or 2nd Tier Imbalance charge, Owner will provide the CAISO with a report showing the allocation of the imbalance charges between Market Transactions and Nonmarket Transactions. If CAISO or the Responsible Utility disagree on allocation, the dispute will be resolved through ADR. To receive payment for a 2nd Tier Imbalance, Owner must document in an informational filing with FERC that the charges were appropriately allocated to Nonmarket Transactions and it was commercially reasonable to incur them. As used in this context and for purposes of calculating imbalance charges, “commercially reasonable” does not mean that Owner is required to acquire storage to avoid imbalances. If either the CAISO or Responsible Utility disagree with the imbalance charges, desires a formal review and gives such notice to the Owner within 30 days of the informational filing, the Owner must file under Section 205 of the Federal Power Act to collect any 2nd Tier Imbalance charges. Pursuant to the above, the Monthly Fuel Imbalance Charge is calculated in accordance with Equation C1-9. Monthly Monthly Sum of Equation C1-9 CAISO Facility Monthly Sum of CAISO Facility Fuel Imbalance Charge = 0.75 ◆  Monthly Sum of Daily Imbalance Charges – 0.0225  CAISO Facility Monthly ◆ Billed Fuel Cost + 0.25 ◆  Monthly Sum of Daily Imbalance Charges – 0.10 ◆  CAISO Facility Monthly Billed Fuel Cost Note that if either of the two bracketed portions of the equation yields a value less than or equal to zero, then that portion of the equation is set to zero.

Levels of Responsibility. Each month, the Owner is responsible for all Nonmarket fuel imbalance charges incurred up to and including 2.25 percent of the CAISO Facility Monthly Billed Fuel Cost. The Monthly Fuel Imbalance Charge is equal to 75% of 1st Tier Imbalance plus 100% of 2nd Tier Imbalances; Where: The 1st Tier Imbalances is that portion of the Monthly Sum of Daily Imbalance Charges which exceeds 2.25 percent of the CAISO Facility Monthly Billed Fuel Cost for the Month and is less than or equal to 10.0 percent of the CAISO Facility Monthly Billed Fuel Cost for the Month. The 2nd Tier Imbalances is that portion of the Monthly Sum of Daily Imbalance Charges which is greater than 10.0 percent of the CAISO Facility Monthly Billed Fuel Cost for the Month. The Monthly Sum of Daily Imbalance Charges is the sum for all days in the month of imbalance charges and similar fees and penalties imposed on Owner (or its fuel supplier and paid by Owner) by transportation providers delivering gas to the Units because deliveries were in excess of or less than scheduled for a given day, but only to the extent that (i) the imbalance was caused by Owner compliance with a Dispatch Notice issued after (or less than 30 minutes prior) to the Transporter’s deadline for scheduling transportation, and (ii) Owner issued a notice to the CAISO as soon as possible after the Owner became aware it might incur imbalance charges advising CAISO of such possible charges. In any month in which Owner incurs a 1st Tier or 2nd Tier Imbalance charge, Owner will provide the CAISO with a report showing the allocation of the imbalance charges between Market Transactions and Nonmarket Transactions. If CAISO or the Responsible Utility disagree on allocation, the dispute will be resolved through ADR. To receive payment for a 2nd Tier Imbalance, Owner must document in an informational filing with FERC that the charges were appropriately allocated to Nonmarket Transactions and it was commercially reasonable to incur them. As used in this context and for purposes of calculating imbalance charges, “"commercially reasonable” " does not mean that Owner is required to acquire storage to avoid imbalances. If either the CAISO or Responsible Utility disagree with the imbalance charges, desires a formal review and gives such notice to the Owner within 30 days of the informational filing, the Owner must file under Section 205 of the Federal Power Act to collect any 2nd Tier Imbalance charges. Pursuant to the above, the Monthly Fuel Imbalance Charge is calculated in accordance with Equation C1-9. Monthly  Monthly Sum of Equation C1-9 CAISO Facility Monthly Sum of CAISO Facility Fuel Imbalance Charge = 0.75 ◆ Daily Imbalance Charges – 0.0225 Monthly ◆  Billed Fuel Cost + 0.25 ◆  Daily Imbalance Charges – 0.10 ◆  Monthly Billed Fuel Cost Note that if either of the two bracketed portions of the equation yields a value less than or equal to zero, then that portion of the equation is set to zero.