Common use of Basic Understandings Clause in Contracts

Basic Understandings. Connecticut Yankee was organized in 1962 to provide 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 582 megawatts electric (the "Unit") at a site in Haddam Neck, Connecticut. Connecticut Yankee was issued a full-term, Facility Operating License for the Unit by the Nuclear Regulatory Commission (which, together with any successor agencies, is hereafter called the "NRC"), which license is now dated to expire on June 29, 2007. The Unit has been in commercial operation since January 1, 1968. The Unit was conceived to supply economic power on a cost of service formula basis to the Purchasers. 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 similar contracts (collectively, the "Initial Power Contracts") between Connecticut Yankee and the other Purchasers, 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, 1968. Connecticut Yankee and the Purchaser are also parties to an Additional Power contract, dated as of April 30, 1984 ("Additional Power Contract"). The Additional Power Contract and other similar contracts (collectively, the "Additional Power Contracts") between Connecticut Yankee and the other Purchasers provide for an operative term stated to commence on January 1, 1998 (when the Initial Power Contracts terminate) and extending until a date (the "End of Term Date") which is 30 days after the later of the date on which the last of the financial obligations of Connecticut Yankee has been extinguished or the date on which Connecticut Yankee is finally relieved of any obligations under the last of the licenses (operating or possessory) which it holds, or hereafter receives, from the NRC wit+ respect to the 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 costs incurred prior to such cancellation. 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 Connecticut Yankee's cost of service, including decommissioning costs, whether or not the Unit is operated. 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. On December 4, 1996, the board of directors of 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 Connecticut Yankee and the Purchasers, determined that the Unit should be permanently shut down effective December 4, 1996. The Purchaser concurs in that decision. As a consequence of the shutdown decision, 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 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. 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. Connecticut Yankee was organized in 1962 1952 to provide 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 582 megawatts electric (the "Unit") at a site in Haddam Neck, Connecticut. Connecticut Yankee was issued a full-full- term, Facility Operating License for the Unit by the Nuclear Regulatory Commission (which, together with any successor agencies, is hereafter called the "NRC"), which license is now dated stated to expire on June 29, 2007. The Unit has been in commercial operation since January 1, 1968. The Unit was conceived to supply economic power on a cost of service formula basis to the Purchasers. 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 similar contracts (collectively, the "Initial Power Contracts") between Connecticut Yankee and the other Purchasers, 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, 1968. Connecticut Yankee and the Purchaser are also parties to an Additional Power contractContract, dated as of April 30, 1984 ("Additional Power Contract"). The Additional Power Contract and other similar contracts (collectively, the "Additional Power Contracts") between Connecticut Yankee and the other Purchasers provide for an operative term stated to commence on January 1, 1998 (when the Initial Power Contracts terminate) and extending until a date (the "End of Term Date") which is 30 days after the later of the date on which the last of the financial obligations of Connecticut Yankee has been extinguished or the date on which Connecticut Yankee is finally relieved of any obligations under the last of the licenses (operating or possessory) which it holds, or hereafter receives, from the NRC wit+ with respect to the 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 costs billinxx xx xxsts incurred prior to such cancellation. Xxxxxant 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 Connecticut Yankee's cost of service, including decommissioning costs, whether or not the Unit is operated. Connecticut Yankee and the Purchaser are also parties to a 1987 Supplementary Power Contract, dated as of April 1l, 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 terms of the Initial Power Contracts and Additional Power Contracts. On December 4, 1996, the board of directors of 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 Connecticut Yankee and the Purchasers, determined that the Unit should be permanently shut down effective December 4, 1996. The Purchaser concurs in that decision. As a consequence of the shutdown decision, 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 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. 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. Connecticut Yankee was organized in 1962 to provide 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 582 megawatts electric (the "Unit") at a site in Haddam Neck, Connecticut. Connecticut Yankee was issued a full-termfullterm, Facility Operating License for the Unit by the Nuclear Regulatory Commission (which, together with any successor agencies, is hereafter called the "NRC"), which license is now dated stated to expire on June 29, 2007. The Unit has been in commercial operation since January 1, 1968. The Unit was conceived to supply economic power on a cost of service formula basis to the Purchasers. Connecticut Yankee and the Purchaser are parties to a Power Contract dated as of July 1, 1964 l964 ("Initial Power Contract"). Pursuant to the Initial Power Contract and other similar contracts (collectively, the "Initial Power Contracts") between Connecticut Yankee and the other Purchasers, 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, 1968. Connecticut Yankee and the Purchaser are also parties to an Additional Power contractContract, dated as of April 30, 1984 ("Additional Power Contract"). The Additional Power Contract and other similar contracts (collectively, the "Additional Power Contracts") between Connecticut Yankee and the other Purchasers provide for an operative term stated to commence on January 1, 1998 (when the Initial Power Contracts terminate) and extending until a date (the "End of Term Date") which is 30 days after the later of the date on which the last of the financial obligations of Connecticut Yankee has been extinguished or the date on which Connecticut Yankee is finally relieved of any obligations under the last of the licenses (operating or possessory) which it holds, or hereafter receives, from the NRC wit+ with respect to the 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 xxxxxxxx of costs incurred prior to such cancellation. Xxxxxant 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 Connecticut Yankee's cost of service, including decommissioning costs, whether or not the Unit is operated. 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. On December 4, 1996, the board of directors of 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 Connecticut Yankee and the Purchasers, determined that the Unit should be permanently shut down effective December 4, 1996. The Purchaser concurs in that decision. As a consequence of the shutdown decision, 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 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. 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.Supplementary

Basic Understandings. Connecticut Maine Yankee was organized in 1962 1966 to provide for the 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 582 830 megawatts electric (the "Unit") at a site on tidewater in Haddam Neckthe Town of Wiscasset, ConnecticutMaine. Connecticut 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 dated stated to expire on June 29October 21, 20072008. The Unit has been in commercial operation since January 1, 19681973. The Unit was conceived to supply economic power on a cost of service formula basis to the Purchasers. Connecticut Maine Yankee and the Purchaser are parties to a Power Contract dated as of July 1May 20, 1964 1968 (as herefore amended, the "Initial Power Contract"). Pursuant to the Initial Power Contract and other similar identical contracts (collectively, the "Initial Power Contracts") between Connecticut Maine Yankee and the other Purchasers, Connecticut 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, 19681973. Connecticut Maine Yankee and the Purchaser are also parties to an Additional Power contractContract, dated as of April 30February 1, 1984 ("Additional Power Contract"). The Additional Power Contract and other similar contracts (collectively, the "Additional Power Contracts") between Connecticut Maine Yankee and the other Purchasers provide for an operative term stated to commence on January 12, 1998 2003 (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 Connecticut 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 Connecticut Maine Yankee is finally relieved of any obligations under the last of the licenses (operating or and/or possessory) which it holdsholds from, or which may hereafter receivesbe issued to it by, from the NRC wit+ with respect to the Unit. The Additional Power Contracts also provide, in the event of their earlier cancellation, for the survival Unit under applicable provisions of the decommissioning cost obligation and for Atomic Energy Act of 1954, as amended from time to time (the applicable provisions thereof to remain in effect to permit final billings of costs incurred prior to such cancellation. 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 Connecticut Yankee's cost of service, including decommissioning costs, whether or not the Unit is operated. Connecticut Yankee and the Purchaser are also parties to a 1987 Supplementary Power Contract, dated as of April 1, 1987 ("1987 Supplementary Power ContractAct"). 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. On December 4, 1996, the board of directors of 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 Connecticut Yankee and the Purchasers, determined that the Unit should be permanently shut down effective December 4, 1996. The Purchaser concurs in that decision. As a consequence of the shutdown decision, 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 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. 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. Connecticut Maine Yankee was organized in 1962 1966 to provide for the 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 582 830 megawatts electric (the "Unit") at a site on tidewater in Haddam Neckthe Town of Wiscasset, ConnecticutMaine. Connecticut 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"), which license is now dated stated to expire on June 29October 21, 20072008. The Unit has been in commercial operation since January 1, 1968l973. The Unit was conceived to supply economic power on a cost of service formula basis to the Purchasers. Connecticut Maine Yankee and the Purchaser are parties to a Power Contract dated as of July 1May 20, 1964 1968 (as herefore amended, the "Initial Power Contract"). Pursuant to the Initial Power Contract and other similar identical contracts (collectively, the "Initial Power Contracts") between Connecticut Maine Yankee and the other Purchasers, Connecticut 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, 19681973. Connecticut Maine Yankee and the Purchaser are also parties to an Additional Power contractContract, dated as of April 30February 1, 1984 ("Additional Power Contract"). The Additional Power Contract and other similar contracts (collectively, the "Additional Power Contracts") between Connecticut Maine Yankee and the other Purchasers provide for an operative term stated to commence on January 12, 1998 2003 (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 Connecticut 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 Connecticut Maine Yankee is finally relieved of any obligations under the last of the licenses (operating or and/or possessory) which it holdsholds from, or which may hereafter receivesbe issued to it by, from the NRC wit+ with respect to the Unit. The Additional Power Contracts also provide, in the event of their earlier cancellation, for the survival Unit under applicable provisions of the decommissioning cost obligation and for Atomic Energy Act of 1954, as amended from time to time (the applicable provisions thereof to remain in effect to permit final billings of costs incurred prior to such cancellation"Act"). Xxxxxant 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 Connecticut Maine Yankee's cost of service, including decommissioning costs, whether or not the Unit is operated. Connecticut Yankee and the Purchaser are also parties to a 1987 Supplementary Power Contract, dated as of April 1, 1987 ("1987 Supplementary Power Contract")operated or whether or not net electrical output is delivered. 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 the Additional Power Contracts between Connecticut Yankee and also provide, in the Purchasers. Pursuant to event of their earlier cancellation, for the 1987 Supplementary Power Contracts, the Purchasers make monthly certain supplementary payments to Connecticut Yankee during the term survival of the Initial Power Contracts decommissioning cost obligation and Additional Power Contractsfor the applicable provisions thereof to remain in effect to permit final xxxxxxxx of costs incurred prior to such cancellation. On December 4August 6, 19961997, the board of directors of Connecticut 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 Connecticut Maine Yankee and the Purchasers, determined that the Unit should be permanently shut down effective December 4August 6, 19961997. The Purchaser concurs in that decision. As a consequence of the shutdown decision, Connecticut Maine 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 Connecticut 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. Connecticut 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.