Common use of Ratemaking Clause in Contracts

Ratemaking. 5.1 The fully-reconciling formula tariff, Solar Program Cost Adjustment (“SPCA”) (attached hereto as Attachment A and incorporated into this Agreement), is an appropriate method of cost recovery for the investments in the Company’s Program. Recovery should occur equitably across customer classes and recovery through a non-bypassable element of electric charges is appropriate. 5.2 The SPCA defines the form and function of this ratemaking as a reconciling tariff, with specific components, criteria, calculations and its formula for application in rates. 5.3 The Department approves the ratemaking mechanism applicable to WMECO’s Program, as shown in the SPCA. In the event that the implementation of this mechanism occurs by way of another proceeding, the form and function of this ratemaking mechanism shall not change from that approved in this proceeding. The ratemaking mechanism defined in this Article 5 will become effective the earlier of (a) the effective date of the Department’s approval of new rates for WMECO resulting from the Company’s next filing for a general increase in base distribution rates under ▇. ▇. ▇. 164, § 94, or (b) January 1, 2011. 5.4 For purposes of this Agreement, the term “commissioning” shall mean the instant in which the Company interconnects a solar facility with its distribution system and commences commercial operation.