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ORDER NO. PSC -2018 -0085 -PAA -EQ DOCKET NO. 20170226 -EQ PAGE 42 1`lAJK1tPA FOW14,11 & JAWIl- tY)MrANY Vr1Rma1 ilnect iNo. ittsta APPENDIX C TO THE STANDARD OFFER CONTRACT TERMINATION FEE The Terhirmtion Fee shall be the sum oftheaalues for each month beginning with the month in which the Capacity DeliveryDateocctus through Ute month of termination (or month of calculation, as the case maybe), computed according to the following formhda: Termination Fee - Termination Fee applicable to Capacity Payment Option plus Termination Fee applicable to Fixed Firm Enerp• Option Termination Fee anolicable to Capacity Pavmtent Options B. C. D and E where: (MCI; - MCPC,) x tv`°i with: MCM - 0 for all periods prior to the in-service date of the Company's Avoided Unit i number of the Monthly Billing Period commencing with the Capacity Delivery Dale (i.e., the month in which Capacity Delivery Date rnxms = 1; the month following the month in which Capacity Delivery Date otters= 2; etc) It = the number ofMonthly Billing Periods which. have elapsed from the month in which the Capacity Delivery (Yate occurs through the month of termination (or month of calculation, as the case may be) 1 = the future value of an amourd factor necessary to compound a sum monthly so the maul percentage rate derived will equal FPI: s incremental after-tax avoided cost of capital (defined as r in QS -2). For any Monthly Billing Period in which MCPQ is gnvlcr than MCP„ t shall equal 1. MCP, - Monthly Capacity Payment paid to QS corresponding to the Monthly Billing Period i, calculated in accordance with Appendix B. MCPr- = Monthly Capacity Payment for Option A corresponding to the Monthly Billing Period i. calculated in accordance with QS -2 In die event that for any Monthly Billing Period, the computation of the value ofte Capacity Payment Termination Fee fe such Monthly Billing Period (as set forth above) yields a valine equal to or greater than zero, the amount ofthe Capacity Payment Termination Fee shall be increased by the amount of tmdn value. In the event that for any Monthly Billing Period, the computation of the value of the Capacity Payment Termination Fee for such Monthly Billing Period (as set forth above) yields a value loss than zcm, the amount of the Capacity Payment Termination Fee shall be decreased by the amount of such value expressed as a positive number (tae "Initial Reduction Value'); provided, however, that such Initial Reduction Valine shall be subject to the following adjustments (the Initial Reduction Value, as adjusted, Ute "Reduction Value): a. In the event that in the applicable Monthly Billing Period the Annual Capacity Billing Factor (ACBI), as defined in Appendix B is less that 80%, then the Initial Reduction Value shall be adjusted to equal zero (Reduction Valero - 0), and the Capacity Payment Termination Fee shall not be reduced for the applicable Monthly Billing Period, b. In tie event that in the applicable Monthly Billing Period Ue Annual Capacity Billing Factor (ACBF), as defined in Appendix B, is equal to or greater than 80% but loss than 9790, then the Reduction Value shall be determined as follows: Reduction Value =Initial Reduction Value [0.04 x (ACBF-72)) For the applicable Monthly Billing Period, the Termination Fee shall be reduced by the amount ofsuch Reduction Value. In no event shall FPI, In liable to the QS at any time for any ammmt by which the Capacity payment Termination Fee, adjusted in accordance with the foregoing, is lass than zero (0). Termination Fee applicable to the Fixed Firm Energy Paymhent Option D Rion to in-senice date ofavoided unit The Termination Fee forthe Fixed Firnh Eurgy Option shall be equal to the cunhdaticT sum of Uhe Fixed Firm Energy PaYinenis made to the QS pursuant to Option D, starting with the in-senice date of the QS facility, for cath billing cycle. Such number shall reach the maximum amount on the billing cycle immediately preceding the billing cycle associated with the in-service date of the Avoided Unit. After in-service date of:woided unit the Termination Fee shall be deercased each lulling cycle following the in-service date of the avoided unit by an amount equal to the dilfemnce between the projected Fired Energy Cost tint was used in the calculation to determine the base energy cart to be fired and amortized pm munil to Option D for such billing cycle and the amortized Fixed Firm Energy Payment in cenlslkW l l times the energy delivered by the QS not to exceed the MWH block specified in Appendix E. Issued try: S. E. Romig, Director, Rates and Tariffs Effective. May 22, 2007 q. 4Z