***REGIONAL DIALOGUE***

***SLICE/BLOCK CONTRACT TEMPLATE***

***The following directions provide guidance on how to interpret text
throughout this Template that is italicized and/or in different
color.***

*1.* Black non-italicized text indicates draft contract language.

*2. **[All text in italics will be deleted]{.underline}** before the
contracts are finalized.*

> *(a) **Pink italicized text** indicates [notes to BPA AEs and contract
> staff]{.underline} who will tailor the template for each particular
> customer within the limits stated. Pink text will be deleted after
> August 1 when the template is converted to a contract for each
> particular customer.*
>
> *(b) **Blue italicized text** indicates [notes to the reviewers
> (customers and others.)]{.underline} This blue text will be deleted
> after the draft template is finalized on August 1.*
>
> *(c)* **Red text** indicates where a drafter must 'fill-in-the-blank.'
> Red text will be converted to black text and will become part of the
> final contract.
>
> *(d) **Green italicized text** indicates contract provisions that are
> unique to the Slice/Block prototype templates.*

*3. Grey shaded text is used to help reviewers of the template
understand how different versions of a particular clause are [either the
same or different,]{.underline} and is most often used to help reviewers
understand subtle variations between the Load Following, Block and
Slice/Block templates. The shading will be deleted when the templates
are finalized.*

> Contract No. 09PB-«#####»
>
> **DRAFT** 4/15/2008 4:28 PM

**POWER SALES AGREEMENT**

**executed by the**

**BONNEVILLE POWER ADMINISTRATION**

**and**

**«FULL NAME OF CUSTOMER»**

**Table of Contents**

**Section Page**

> **1. T****erm **
>
> **2. Definitions **
>
> **3. Slice/Block Power Purchase Obligation **
>
> **4. Tiered Rate Methodology **
>
> **5. Applicable Rates **
>
> **a. Priority Firm Power Rates and Contract High Water Mark **
>
> **1. Rate Period High Water Mark and Amount of Power Priced\
> at Tier 1 PF Power Rate **
>
> **2. Amount of Power Priced at Tier 2 PF Power Rate **
>
> **3. Purchase Obligation for Load Service Above-RHWM **
>
> **4. Contract Demand Quantities **
>
> **b. New Resource Firm Power Rate **
>
> **c. Firm Power Products and Services Rate **
>
> **d. Additional Charges **
>
> **e. Resource Support Services **
>
> **6. Removal Order of Tier 2 and Non-Federal Resources **
>
> **7. Take-or-Pay **
>
> **8. One-Time Right to Change Purchase Obligation **
>
> **9. Billing Credits **
>
> **10. Scheduling **
>
> **11. Delivery **
>
> **12. Metering **
>
> **13. Billing and Payment **
>
> **14. Information Exchange and Confidentiality **
>
> **15. Conservation and Renewables **
>
> **16. Resource Adequacy **
>
> **17. Notices and Contact Information **
>
> **18. Uncontrollable Forces **
>
> **19. Governing Law and Dispute Resolution **
>
> **20. No Warranty **
>
> **21. Statutory Provisions **
>
> **a. Retail Rate Schedules **
>
> **b. Insufficiency and Allocations **
>
> **c. New Large Single Loads **
>
> **d. Priority of Pacific Northwest Customers **
>
> **e. Prohibition on Resale **
>
> **f. Use of Regional Resources **
>
> **g. BPA Appropriations Refinancing **
>
> **22. Standard Provisions **
>
> **a. Amendments **
>
> **b. Entire Agreement and Order of Precedence **
>
> **c. Assignment **
>
> **d. No Third-Party Beneficiaries**
>
> **e. Waivers **
>
> **f. BPA Policies **
>
> **g. Rate Covenant and Payment Assurance **
>
> **h. Bond Assurances **
>
> **23. Termination **
>
> **24. Signatures **
>
> **Exhibit A Net Requirements**
>
> **Exhibit B High Water Marks and Contract Demand Quantities**
>
> **Exhibit C Purchase Obligations**
>
> **Exhibit D Additional Products and Special Provisions**
>
> **Exhibit E Metering**
>
> *[Drafter's Note]{.underline}: Choose title of Exhibit F to reflect
> scheduling option*
>
> **Exhibit F «Power Scheduling or Transmission Scheduling Service»**
>
> **Exhibit G Principles of Non-Federal Transfer Service**
>
> **Exhibit H Renewable Energy Certificates and Carbon Attributes**

**Exhibit I Critical Slice Amounts**

**Exhibit J Determination of Initial Slice Percentage**

**Exhibit K Slice Percentage**

**Exhibit L Slice System Resources**

**Exhibit M Slice Computer Application and Implementation Procedures**

This POWER SALES AGREEMENT (Agreement) is executed by the UNITED STATES
OF AMERICA, Department of Energy, acting by and through the BONNEVILLE
POWER ADMINISTRATION (BPA), and «FULL NAME OF CUSTOMER» («Customer
Name»), hereinafter collectively referred to as the \"Parties\".
«Customer Name» is a «public utility, cooperative, municipality, etc.»,
organized and authorized under the laws of the State of «State», to
purchase electric power and to serve «State»'s retail consumers from its
distribution system within its service area.

RECITALS*(02/28/08 Version)*

This Agreement will replace «Customer Name»'s current power sales
agreement (Contract No. «##PB‑#####») which continues through
September 30, 2011.

BPA has functionally separated its organization in order to functionally
separate the administration and decision-making activities of BPA's
power and transmission functions. References in this Agreement to Power
Services or Transmission Services are solely for the purpose of
clarifying which BPA function is responsible for administrative
activities that are jointly performed.

BPA is authorized under its organic statutes to market federal power to
qualified entities that are eligible to purchase power. Under
section 5(b)(1) of the Pacific Northwest Electric Power Planning and
Conservation Act, P.L. 96‑501 of 1980 (Northwest Power Act), BPA is
obligated to offer a power sales agreement to eligible customers for
their retail consumer load in the region that is not met by the
customer's use of its non-federal resources.

BPA has proposed the adoption of a tiered rates pricing methodology for
federal power sold to meet BPA's obligations under section 5(b) of the
Northwest Power Act to eligible customers, in order to maintain the
benefits of the federal system in the future and encourage BPA customers
to develop regional power resource infrastructure to meet regional
consumer loads under this Agreement.

To effect that purpose BPA establishes, in this Agreement, a Contract
High Water Mark for «Customer Name» that will define the amounts of
power «Customer Name» may purchase from BPA at lowest cost, as defined
in BPA's Tiered Rate Methodology, for «Customer Name»'s retail loads.

The Parties agree:

**1. TERM***(03/20/08 Version)*

> This Agreement takes effect on the date signed by the Parties and
> expires on September 30, 2028*[Drafters Note]{.underline}: Add the
> following phrase ONLY for the following customers who must obtain RUS
> approval to execute this Agreement: **California**: Surprise Valley
> Electrification Corporation; **Idaho**: Clearwater Power Company,
> Kootenai Electric Cooperative, Inc., Lost River Electric Cooperative,
> Inc., Raft River Rural Electric Cooperative, Inc.; **Montana**:
> Lincoln Electric Cooperative, Inc., Missoula Electric Cooperative,
> Inc., Ravalli County Electric Cooperative, Inc., Vigilante Electric
> Cooperative, Inc.; **Oregon**: Columbia Basin Electric Cooperative,
> Inc., Columbia Power Cooperative Association, Douglas Electric
> Cooperative, Inc., Harney Electric Cooperative, Inc., Tillamook
> People's Utility District, Umatilla Electric Cooperative Association,
> Wasco Electric Cooperative, Inc., West Oregon Electric Cooperative,
> Inc.; **Washington**: Benton Rural Electric Association, Nespelem
> Valley Electric Cooperative, Inc., Orcas Power & Light Cooperative,
> Public Utility District No. 1 of Ferry County, Public Utility District
> No. 1 of Mason County; Tanner Electric Cooperative \[\[*, subject to
> approval of the United States Department of Agriculture Rural
> Utilities Service.*\]\]* Performance by BPA and «Customer Name» shall
> commence on October 1, 2011, with the exception of those actions
> required prior to that date that are included in section 14,
> Information Exchange and Confidentiality; section 15, Conservation and
> Renewables; section 16, Resource Adequacy; Exhibit A, Net
> Requirements; Exhibit B, High Water Marks and Contract Demand
> Quantities; and Exhibit C, Purchase Obligations.

**2. DEFINITIONS** *(04/06/08 Version)*

> *[Reviewer's Note]{.underline}: Many terms are used in both the TRM
> and the contract. We plan to define those only in the TRM to ensure
> consistency. We understand this approach is potentially confusing. We
> will discuss the issue at the upcoming workshops and provide a
> comprehensive list of definitions of all terms for all templates and
> the TRM.*
>
> Capitalized terms below shall have the meaning stated. Capitalized
> terms that are not listed below are either defined within the section
> in which the term is used, or if not so defined, shall have the
> meaning stated in BPA's Tiered Rate Methodology (TRM), or BPA's
> applicable Wholesale Power Rate Schedules, including the General Rate
> Schedule Provisions (GRSPs).
>
> \(a\) "Annexed Load"*(04/04/08 Version)* means existing load and
> distribution system, and/or service territory «Customer Name» acquires
> from another utility, by means of annexation, merger, purchase or
> trade, and authorized by a final state regulatory or court action, for
> which «Customer Name» has the right or has obtained an ownership
> interest in the facilities necessary to serve the load.
>
> \(b\) "Contract Resources"*(03/25/08 Version)* means sources or
> amounts of electric power that «Customer Name» acquires from
> unidentified electricity-producing units by contract purchase from a
> non-federal electricity supplier.
>
> \(c\) "Firm Requirements Power"*(02/28/08 Version)* means federal
> power that is sold under this Agreement and made continuously
> available, except for an Uncontrollable Force, to meet BPA's load
> obligations under section 5(b) of the Northwest Power Act.
>
> *[Reviewer's Note]{.underline}: We will reconcile the following
> definition with the TRM's version of the definition.*
>
> \(d\) "Fiscal Year" or "FY"*(02/28/08 Version)* means the period
> beginning each October 1 and ending the following September 30.
>
> \(e\) "Generating Resources"*(02/29/08 Version)* means sources or
> amounts of electric power from identified electricity-producing units
> owned by, or of which a share is owned by, «Customer Name» or
> «Customer Name»'s retail consumer.
>
> \(f\) "Interchange Points"*(04/01/08 Version)* means the points where
> Balancing Authority Areas interconnect, and at which the interchange
> of energy between Balancing Authority Areas is monitored and measured.
>
> *[Reviewer's Note]{.underline}: We will reconcile the following
> definition with the TRM's version of the definition.*
>
> \(g\) "New Large Single Load" or "NLSL"*(02/28/08 Version)* means a
> large single load as defined in section 3(13) of the Northwest Power
> Act and in BPA's NLSL policy.
>
> \(h\) "Operating Year"*(03/27/08 Version)* means the period, beginning
> each August 1 and ending the following July 31, that is designated
> under the Pacific Northwest Coordination Agreement (PNCA) for resource
> planning and operational purposes.
>
> *[Reviewer's Note]{.underline}: We will reconcile the following
> definition with the TRM's version of the definition.*
>
> \(i\) "Points of Delivery" or "POD"*(03/01/08 Version)* means the
> points where power is transferred from a transmission provider to
> «Customer Name».
>
> \(j\) "Points of Metering" or "POM"*(10/15/07 Version)* means the
> points at which power is measured.
>
> \(k\) "Power Services"*(09/04/07 Version)* means the organization, or
> its successor organization, within BPA that is responsible for the
> management and sale of federal power from the Federal Columbia River
> Power System.
>
> \(l\) "Region"*(09/04/07 Version)* means the Pacific Northwest as
> defined in the Northwest Power Act.
>
> \(m\) "Specified Resources"*(04/04/08 Version)* means a Generating
> Resource or a Contract Resource which «Customer Name» has dedicated to
> serve its Total Retail Load that is ascribed to a particular
> non-federal resource.
>
> \(n\) "Surplus Firm Power"*(02/28/08 Version)* means firm power that
> is in excess of BPA's obligations under sections 5(b), (c), and (d) of
> the Northwest Power Act, as available.
>
> \(o\) "Third Party Transmission Provider"*(03/17/08 Version)* means a
> transmission provider other than BPA that delivers power to «Customer
> Name».
>
> *[Reviewer's Note]{.underline}: The following definition is close, but
> not identical to the TRM's definition. We will reconcile these.*
>
> \(p\) "Total Retail Load"*(04/04/08 Version)* means all retail
> electric power consumption, including electric system losses, within
> «Customer Name»'s electrical system excluding:
>
> \(1\) unmetered loads or generation,
>
> \(2\) nonfirm or interruptible loads agreed to by the Parties,
>
> \(3\) transfer loads of other utilities served by «Customer Name», and
>
> \(4\) any loads not on «Customer Name»'s distribution system that are
> not agreed to by BPA.
>
> \(q\) "Transfer Service"*(03/17/08 Version)* means the transmission,
> distribution and other services provided by a Third Party Transmission
> Provider to deliver electric energy and capacity over its transmission
> system.
>
> \(r\) "Transmission Services"*(09/04/07 Version)* means the
> organization, or its successor organization, within BPA that is
> responsible for the management and sale of transmission service on the
> Federal Columbia River Transmission System.
>
> *[Reviewer's Note]{.underline}: We will reconcile the following
> definition with the TRM's version of the definition.*
>
> \(s\) "Unspecified Resource Amounts"*(03/21/08 Version)* means an
> amount of firm power «Customer Name» has agreed to supply and dedicate
> to serve its Total Retail Load that is not ascribed to a particular
> Generating Resource or Contract Resource.

*Include in **SLICE/BLOCK** templates:*

*[Reviewer's Note]{.underline}: The definitions below apply to the
Slice/Block product only and will be combined with the definitions
above, which are common among Slice/Block, Block and Load Following
agreements.*

() "Actual Energy Slice Output" or "AESO" means the amount of «Customer
Name»'s Slice Output scheduled and delivered at the Point of Delivery
during a given period of time.

> () "Average Megawatts" or "aMW" means the amount of electric energy in
> megawatt-hours (MWh) during a specified period of time divided by the
> number of hours in such period.
>
> []{.mark}
>
> () "Balance of Slice System Complex" or "BOSS Complex" means the Slice
> System generating resources that are not included in the Coulee-Chief
> Complex or Lower Columbia Complex.
>
> () "Base Critical Inventory Amount" means a Critical Inventory Amount
> that is deemed equal to 7,400 aMW and is used to calculate Initial
> Slice Percentages, and Slice Percentage Adjustment Factors.
>
> () "Block Product" means BPA's power product sold to «Customer Name»
> on terms described in section 3(a) of this Agreement.
>
> () "BOSS Module" means the Slice Computer Application module used to
> determine each Slice purchaser's available Slice Output and Delivery
> Limits associated with the BOSS Complex.
>
> () "Business Day(s)" means every Monday through Friday except Federal
> Holidays.
>
> () "Coulee-Chief Complex" means the two hydroelectric projects located
> in the middle reach of the Columbia River, consisting of Grand Coulee
> and Chief Joseph.
>
> *[Reviewer's Note]{.underline}: The following definition is a
> placeholder that may or may not be needed depending upon the outcome
> of section 3(b)(13).*
>
> () "Creditworthiness Agreement" means Contract No. 09PB-XXXXX between
> BPA and «Customer Name».
>
> () "Critical Inventory Amount" means, for each Fiscal Year, BPA's
> forecast of the firm energy to be produced by the Slice System
> resources based upon Critical Water Conditions, as adjusted for
> transmission losses, and System Obligations.
>
> () "Critical Slice Amount" means the forecasted amount of Slice Output
> that «Customer Name» is expected to receive for service to its Net
> Requirement assuming the recurrence of Critical Water Conditions, and
> is equal to the product of «Customer Name»'s Slice Percentage and the
> Critical Inventory Amount.
>
> () "Critical Water Conditions" means the historical stream flows on
> the Columbia River and its tributaries that BPA uses to make
> determinations of the following: the firm energy capability of the
> FCRPS, the Tier 1 System Resources, and the Rate Period High Water
> Marks (RHWM).
>
> () "Delivery Limits" means the limits that govern the availability and
> scheduling of Slice Output by «Customer Name» as determined by the
> Slice Computer Application.
>
> () "Existing Public Augmentation" means Augmentation that is included
> in the Tier 1 System Resources as described in the TRM.

() "Federal Operating Decisions" means decisions made by the Corps,
Reclamation, BPA, or the United States Entity of the Columbia River
Treaty that establish for any period the permissible range of operations
for any project or projects that are part of the FCRPS.

> () "FERC" means the Federal Energy Regulatory Commission, or its
> successor.
>
> () "Individual Charges" means the total charges assigned to «Customer
> Name» each FY pursuant to the implementation the Slice Product.
>
> () "Initial Slice Percentage" means the initial Slice Percentage that
> «Customer Name» states is will purchase from BPA at the time it signs
> this Agreement, as determined pursuant to Exhibit J, Initial Slice
> Percentage.
>
> () "Lower Columbia Complex" or "LCOL Complex" means the four
> hydroelectric projects located on the lower reach of the Columbia
> River, consisting of McNary, John Day, The Dalles, and Bonneville.
>
> () "Obligations to Balancing Authority" means the obligations, if any,
> of PS to provide to the Balancing Authority generation inputs that are
> required by the Balancing Authority to reliably operate the
> transmission facilities of the FCRPS. These generation inputs may
> include, but shall not be limited to, the energy and/or capacity
> utilized or reserved to provide spinning and non-spinning reserves,
> reactive power and voltage control, regulation and frequency response,
> remedial action schemes, substation service and energy imbalance.
>
> () "Operating Constraints" means operating limits, project operating
> requirements, and non-power constraints associated with either the
> Slice System or the individual projects of the Slice System. Operating
> Constraints are the result of implementing Federal Operating Decisions
> and Prudent Operating Decisions (either on a planning basis or in
> real-time). The application of an Operating Constraint may result in
> limits being imposed on a project's operation over time in order to
> achieve a specific objective.
>
> () "Other Augmentation" means Augmentation that is not Existing Public
> Augmentation.
>
> []{.mark}
>
> () "Pacific Northwest Coordination Agreement," or "PNCA" means
> Contract No. 14-02-4822, as such agreement may be amended or replaced,
> among BPA, the Corps, Reclamation, and certain generating utilities in
> the Region that sets forth the terms and conditions for the
> coordinated operation of generating resources in the Region.
>
> []{.mark}
>
> () "Points of Receipt" or means the points on the Pacific Northwest
> transmission system where Slice Output is made available by Power
> Services to «Customer Name» for purposes of transmission scheduling.
>
> () "Preference Act" means the act of August 31, 1964, P.L. 88-552,
> 16 U.S.C. §837-837h, as ammended.
>
> () "Prudent Operating Decision" means a decision that establishes for
> a finite period of time a limitation on the permissible operating
> range of any FCRPS project (or projects) applicable to PS, which
> affects power made available to «Customer Name» and other Slice/Block
> customers under the Slice Product. Prudent Operating Decisions are
> made by the PS hydro scheduler who, in their exercise of reasonable
> judgment, determines such limitation is necessary for the safe and
> reliable operation of the FCRPS. Prudent Operating Decisions do not
> include decisions taken or limitations established by the PS hydro
> scheduler in order to make energy available to PS for marketing within
> and out of the Region to other than Slice/Block, Block and Load
> Following customers.
>
> () "Rate Case" means a wholesale power rate process conducted by BPA
> in accordance with section 7(i) of the Northwest Power Act, or a
> successor provision, which establishes rates of general application in
> a final Record of Decision.
>
> () "Requirements Power Products" means those firm power products that
> BPA offers to serve the Net Requirement of public agency utilities,
> cooperative utilities, and other qualified entities under section
> 5(b)(1) of the Northwest Power Act.

() "Requirements Slice Output" means in each month the portion of Slice
Output energy that is equal to the lesser of: (1) the Critical Slice
Amount, as calculated in Exhibit I, Critical Slice Amounts; (2) the
forecasted Net Requirement determined pursuant to Exhibit A, less the
T1BP and T2BP amounts specified in Exhibit C; or (3) the actual Net
Requirement in such month less the T1BP and T2BP amounts specified in
Exhibit C.

> () "Simulator Project(s)" means any of the hydroelectric projects
> represented in the Simulator, including those projects that comprise
> the Coulee-Chief Complex and the Lower Columbia Complex.
>
> () "Slice/Block Power Sales Agreement" means this Agreement and all
> other agreements that provide for the combined sale of BPA's Slice
> Product and BPA's Block Product.
>
> () "Slice Computer Application" means the BPA proprietary computer
> hardware, software and related processes developed and maintained by
> BPA for the purposes of (i) determining each Slice purchaser's
> available Slice Output and Delivery Limits (ii) maintaining Slice
> accounting, and (iii) implementing electronic scheduling, tagging and
> communications, all as described in Exhibit M, Slice Computer
> Application and Implementation Procedures.
>
> () "Slice Implementation Group" or "SIG" means the group that includes
> representatives from BPA, «Customer Name», and all other customers
> that have executed a Slice/Block Power Sales Agreement, that
> implements the provisions described in section 3(b)(12) of this
> Agreement.
>
> () "Slice Output" means the amount of energy «Customer Name» is
> entitled to purchase under the provisions of the Slice Product,
> including Requirements Slice Output and Surplus Slice Output.

() "Slice Percentage" means the percentage that represents the amount of
the Slice Product «Customer Name» shall purchase, as established
pursuant to Exhibit K.

> () "Slice Product" means BPA's power product sold to «Customer Name»
> on terms described in section 3(b) of this Agreement.
>
> () "Slice System" means those Federal generating resources that
> support the sale of Slice Output, as specified in Exhibit L, Slice
> System Resources.
>
> () "Slice Water Routing Simulator" or "Simulator" means the Slice
> Computer Application module used to determine each Slice purchaser's
> available Slice Output and Delivery Limits associated with the
> Coulee-Chief Complex and LCOL Complex.
>
> () "Storage" means the ability of the Slice System to alter energy
> production among hours, days, and months by impounding water or
> releasing impounded water.
>
> []{.mark}
>
> () "Surplus Slice Output" means, for any month, the amount of Slice
> Output that is made available to «Customer Name» under section 3(b) of
> this Agreement that exceeds «Customer Name»'s Requirements Slice
> Output.

() "System Obligations" means those obligations imposed on BPA by
statutes, treaties and contracts which require the generation or
delivery of power, or forbearance from generating power, in order to
support the operation of the FCRPS, including any Obligations to
Balancing Authority and other BPA contractual obligations that generate
revenues and will exist in FY 2012 and beyond. System Obligations affect
the amount of power available from the FCRPS and the amount of power
available at the Tier 1 rate.

() "Tier 1 Block Power," or "T1BP" means the amount of Firm Requirements
Power available to «Customer Name» under the Block Product to which Tier
1 rates apply and which is within «Customer Name»'s Rate Period High
Water Mark.

> () "Tier 2 Block Power," or "T2BP" means the amount of Firm
> Requirements Power available to «Customer Name» under the Block
> Product to which Tier 2 rates apply and which is above «Customer
> Name»'s Rate Period High Water Mark.

*END **SLICE/BLOCK** templates.*

*Include in **SLICE/BLOCK** templates:*

**3. SLICE/BLOCK POWER PURCHASE OBLIGATION** *(4/08/08 Version)*

> The Slice/Block Product provides Firm Requirements Power for «Customer
> Name»'s Net Requirement load and Surplus Slice Output in certain
> periods of the year. The Slice/Block Product is a combined sale of two
> distinct Requirements Power Products for service to «Customer Name»'s
> forecasted Net Requirement: the Slice Product and the Block Product.
> The Slice Product also includes Surplus Power at times. The Slice
> Product and the Block Product have their own unique terms, as
> described separately below.

\(a\) Block Product

\(1\) Purchase and Sale of Block Product

> Commencing on October 1, 2011, and continuing for the duration of this
> Agreement, BPA shall sell to «Customer Name», and «Customer Name»
> shall purchase from BPA, a planned amount of Requirements Firm Power
> under the Block Product.

\(2\) Block Product General Description

The Block Product shall provide a planned amount of Firm Requirements
Power to serve a portion of «Customer Name»'s forecasted annual Net
Requirement. Firm Requirements Power sold as the Block Product is made
available in equal hourly amounts during each month.

\(3\) Block Product Shapes

\(A\) Tier 1 Block Power Shapes

«Customer Name» shall select one of the following shapes for deliveries
of Tier 1 Block Power: (i) a flat annual block, which delivers an equal
amount of power in all hours during each FY, or (ii) flat monthly
blocks, which delivers an equal amount of power in all hours of each
month and is shaped to «Customer Name»'s monthly Net Requirement. The
shape selected by «Customer Name» shall be specified in section 2 of
Exhibit C, Purchase Obligations, and shall not be changed for the term
of this Agreement.

\(B\) Tier 2 Block Power Shape

The only shape available for deliveries of Tier 2 Block Power is a flat
annual block, which delivers an equal amount of power in all hours
during each FY.

\(C\) Shaping Restrictions

No shaping options for deliveries of «Customer Name»'s Tier 1 Block
Power or Tier 2 Block Power shall be permitted other than those
described in sections 3(a)(3)(A) and 3(a)(3)(B) above.

\(4\) Annual and Monthly Amounts of Tier 1 Block Power

The annual and monthly amounts of Tier 1 Block Power «Customer Name»
shall purchase from BPA shall be determined as follows:

\(A\) Determination of Annual Tier 1 Block Power Amount

No later than 30 days prior to the beginning of FY 2012, and no later
than 30 days prior to the beginning of each Fiscal Year thereafter, BPA
shall determine «Customer Name»s annual Tier 1 Block Power amount as
follows:

> \(i\) Determine «Customer Name»'s Net Requirement from
> section 1(a)(2), Exhibit A, Net Requirements, expressed in annual aMW.
>
> \(ii\) Determine «Customer Name»'s RHWM, expressed in annual aMW.
>
> \(iii\) Determine the lesser of the amounts determined in section
> 3(a)(4)(A)(i) or section 3(a)(4)(A)(ii), expressed in annual aMW.
>
> \(iv\) Determine «Customer Name»'s Critical Slice Amount from Exhibit
> I, Critical Slice Amounts, expressed in annual aMW.
>
> \(v\) Subtract the amount determined in section 3(a)(4)(A)(iv) from
> the amount determined in section 3(a)(4)(A)(iii) to determine
> «Customer Name»'s annual Tier 1 Block Amount for the Fiscal Year,
> expressed in annual aMW.
>
> \(B\) **Determination of Monthly Tier 1 Block Power Amounts**
>
> «Customer Name»'s Tier 1 Block Power amounts for each month of the
> Fiscal Year shall be determined by multiplying the annual Tier 1 Block
> Power amount determined in section 3(a)(4)(A) above, expressed in aMW,
> by the Monthly Distribution Factors specified in section 2(b) of
> Exhibit C, Purchase Obligation.
>
> \(C\) **Annual and Monthly Tier 1 Block Power Amounts Specified in
> Exhibit C**
>
> «Customer Name»'s annual and monthly amounts of Tier 1 Block Power
> determined pursuant to this section 3(a)(4) for each Fiscal Year shall
> be specified in sections 2(a)(2) and 2(c) of Exhibit C, Purchase
> Obligation.

\(5\) Annual Amounts of Tier 2 Block Power

The annual amounts of Tier 2 Block Power «Customer Name» shall purchase
from BPA shall be as specified in section 3 of Exhibit C, Purchase
Obligation.

\(b\) Slice Product

\(1\) Purchase and Sale of Slice Product

> Commencing on October 1, 2011, and continuing for the duration of this
> Agreement, BPA shall sell to «Customer Name», and «Customer Name»
> shall purchase from BPA, Requirements Slice Output and Surplus Slice
> Output under the Slice Product.

\(2\) Slice Product General Description

> The Slice Product shall provide for the sale of Slice Output, which
> includes (A) a planned amount of Requirements Slice Output for service
> to a portion of «Customer Name»'s Net Requirement each month, and (B)
> an amount of Surplus Slice Output that is available to «Customer Name»
> on an as-available basis depending upon the output of the Slice System
> resources. The amount of Slice Output made available to «Customer
> Name» shall be indexed to the variable output of the Slice System
> resources. The Slice Product sold by BPA and purchased by «Customer
> Name» is a power sale, and is not under any circumstances to be
> construed as a sale of Slice System resources, Slice System resource
> capability, or a transfer of control of such Slice System resources.
>
> There is no guarantee that the amount of Slice Output made available,
> combined with Firm Requirements Power made available under the Block
> Product, shall be sufficient to meet «Customer Name»'s load
> obligation, be it hourly, daily, weekly, monthly, or annually.
>
> Reductions in the output of Slice System resources shall reduce the
> amounts of Slice Output BPA makes available to «Customer Name». As
> such, «Customer Name» and other purchasers of the Slice/Block Product
> understand and agree they are exposed to Slice System resource
> performance risk and water supply risk.
>
> The Slice Product does not provide «Customer Name» any within-hour
> services, included, but not limited to load following, dynamic
> scheduling, ancillary services, self-supply of operating reserves, and
> self-supply of energy imbalance.

\(3\) Determination of Available Slice Output and Hourly Scheduling
Flexibility

> «Customer Name» shall have a right to purchase an amount of Slice
> Output equal to its Slice Percentage of Slice System energy production
> capability, after all System Obligations and Operating Constraints are
> met. «Customer Name» shall purchase and have a right to additional
> services, including hourly scheduling flexibility equal to its Slice
> Percentage of Slice System peaking, Storage, and ramping capability,
> after all System Obligations and Operating Constraints are met. The
> amounts of energy and hourly scheduling flexibility available to
> «Customer Name» shall be determined by indexing «Customer Name»'s
> hourly scheduling flexibility to the results of the Slice Water
> Routing Simulator (Simulator) and BOSS Module. The Simulator and BOSS
> Module are intended to reasonably represent the energy, peaking,
> Storage, and ramping capability and limits of the Slice System
> resources available to PS. Notwithstanding any provision of this
> Agreement to the contrary, or «Customer Name»'s rights under this
> Agreement, BPA and federal operating agencies at all times shall
> retain operational control of all federal generating resources and
> reservoir storage.
>
> PS shall ensure «Customer Name» has access to appropriate amounts of
> Slice Output and hourly scheduling flexibility by incorporating into
> the Simulator, processes and calculations that account and correct for
> changes and deviations between forecasted and measured stream flows
> and project water-to-power conversion factors. Because such deviation
> accounting will be in terms of water and not energy, «Customer Name»
> shall receive an amount of Slice Output during the term of this
> Agreement that is not precisely equal to the product of its Slice
> Percentage and the actual Slice System generation netted with System
> Obligations.
>
> «Customer Name»'s hourly scheduling flexibility shall be established
> based on a reasonable representation of the operational flexibility of
> three subsystems of the Slice System, as described in Exhibit M, Slice
> Computer Application and Implementation Procedures. This reasonable
> representation shall be implemented through: (1) the Slice Water
> Routing Simulator, and (2) the BOSS Module, and (3) the implementation
> procedures, all as established in Exhibit M, Slice Computer
> Application and Implementation Procedures.

\(4\) Slice Percentage

«Customer Name»'s Slice Percentage shall be: (A) determined pursuant to
Exhibit J, Determination of Initial Slice Percentage, and (B) specified
in Exhibit K, Slice Percentage. «Customer Name»'s Slice Percentage is
subject to change as specified in section 3(b)(8) below, and as
specified in Exhibit K, Slice Percentage.

\(5\) Critical Slice Amount

«Customer Name»'s Critical Slice Amount shall be determined prior to
FY 2012, and for each FY thereafter, using the procedure described in
Exhibit I, Critical Slice Amounts.

\(6\) Disposition of Surplus Slice Output

\(A\) All sales, exchanges, or other dispositions of federal power are
subject to and governed by Federal law including, but not limited to,
the Bonneville Project Act, P.L. 75‑320, the Preference Act, Federal
Columbia River Transmission System Act, and the Northwest Power Act, as
amended.

\(B\) All sales of Surplus Slice Output by «Customer Name» for use
outside the Region, or to parties not serving firm retail load in the
Region, are subject to the provisions of the Preference Act and
section 9(c) of the Northwest Power Act, and BPA and «Customer Name»
acknowledge their respective responsibilities thereunder.

\(C\) The following uses of Surplus Slice Output shall not constitute a
sale of Surplus Slice Output outside the Region:

\(i\) Leaving the Surplus Slice Output in Storage or placing it in
«Customer Name»'s Storage;

> \(ii\) An exchanging of Surplus Slice Output with another utility
> customer in the Region, or a statutorily enumerated type of exchange
> with a utility outside the Region;
>
> \(iii\) Using Surplus Slice Output to displace «Customer Name»'s
> nonfederal resources identified in Exhibit A, Net Requirement, or
> «Customer Name»'s market purchases that would have been made for
> serving its Total Retail Load; and
>
> \(iv\) A sale of Surplus Slice Output to a BPA utility customer for
> service to that utility's Total Retail Load in the Region, consistent
> with sections 3(14) and 9(c) of the Northwest Power Act.
>
> «Customer Name» may demonstrate such uses of Surplus Slice Output by
> means of a storage account, executed contracts for binding sales or
> exchanges, or another form of offer and acceptance.
>
> \(D\) Pursuant to the Preference Act, BPA shall have the right to
> curtail all or a portion of (1) «Customer Name»'s Surplus Slice Output
> capacity upon 60 months written notice to «Customer Name», and (2) the
> Surplus Slice Output upon 60 days written notice to «Customer Name».
> Any such notice shall specify the amounts and duration of the
> curtailment, and if such capacity or energy is needed to meet BPA's
> capacity and energy requirements in the Region. Prior to issuing any
> such curtailment notice, BPA and «Customer Name» shall consult in
> order to determine the quantity, if any, of Surplus Slice Output
> energy and capacity that may be subject to such curtailment. Such
> curtailments shall be limited to «Customer Name»'s proportional share
> of the amount needed, and for the duration necessary, to cover BPA's
> projected needs within the Region. Such curtailments are subject to
> sections 3(b)(6)(E) and 3(b)(6)(F) below.
>
> \(E\) If BPA issues a notice of curtailment pursuant to section
> 3(b)(6)(D) above, it shall concurrently issue notices of curtailment,
> recall, or termination to all other purchasers to whom BPA has sold
> surplus power for durations longer than specified in the notice,
> provided that such sales agreements contain provisions allowing
> recall, curtailment or termination.
>
> \(F\) Following each month that Surplus Slice Output is curtailed
> pursuant to section 3(b)(6)(E) above, PS shall include a line item
> credit on «Customer Name»'s monthly customer bill issued equal to the
> product of the amount of Surplus Slice Output energy and capacity
> curtailed for the month preceding the month in which the bill was
> rendered multiplied by the applicable Index Rate for all days (or
> portions thereof) in such month during which the curtailment was in
> effect.
>
> \(G\) For the purposes of this section 3(b)(6), "Index Rate" means
> \[to be determined\].

\(7\) Disposition of Requirements Slice Output and Monthly Slice to Load
Test

> \(A\) Requirements Slice Output (RSO) purchased by «Customer Name»
> under this Agreement and made available by BPA shall be used solely
> for the purpose of serving «Customer Name»'s Net Requirements Load.
> «Customer Name» shall maintain monthly documentation establishing the
> delivery of RSO to serve its Net Requirements Load, such as by
> schedule or by tag for each such month. «Customer Name» shall make
> such documentation available to BPA upon request.
>
> \(B\) «Customer Name»'s Slice Output energy delivered for service to
> Total Retail Load (Slice-to-Load energy delivery) during each month
> must be greater than or equal to the RSO energy amount for each such
> month, all as determined below.
>
> \(i\) «Customer Name»'s monthly Slice-to-Load energy delivery shall be
> equal to the sum of (1) «Customer Name»'s delivery schedules tagged
> and delivered to its Total Retail Load service area, and (2) «Customer
> Name»'s delivery schedules submitted to TS as loss return schedules.
>
> \(ii\) «Customer Name»'s RSO energy amount for each month shall be
> equal to the lesser of:

1.  «Customer Name»'s Critical Slice Amount (CSA).

2.  «Customer Name»'s forecasted Net Requirement, less the sum of the
    Tier 1 Block Amount and Tier 2 Block Amount.

3.  «Customer Name»'s actual Net Requirement, less the sum of the Tier 1
    Block Amount and Tier 2 Block Amount.

> \(C\) If «Customer Name»'s monthly Slice-to-Load energy delivery is
> greater than or equal to its RSO energy amount, then «Customer Name»
> shall have satisfied the requirements of the RSO Test (the "Test") for
> such month.
>
> \(D\) If «Customer Name»'s monthly Slice-to-Load energy delivery is
> not greater than or equal to its RSO energy amount, and «Customer
> Name»'s Actual Energy Slice Output (AESO) for the month is less than
> 105 percent of its RSO energy amount, then «Customer Name» shall be
> deemed to have satisfied the Test, provided that «Customer Name»'s
> Slice-to-Load energy delivery is greater than 95 percent of its AESO
> for such month.
>
> \(E\) If «Customer Name» does not satisfy the Test per section
> 3(b)(7)(C) and is not deemed to have satisfied the Test per section
> 3(b)(7)(D) for any month, then a penalty charge shall be assessed to
> «Customer Name» based on its under-delivery amount.

(i) «Customer Name»'s under-delivery amount shall be equal to the lesser
    of the amount «Customer Name»'s Slice-to-Load energy delivery is
    less than (1) «Customer Name»'s RSO energy amount for the month,
    or (2) 95% of «Customer Name»'s AESO for the month.

(ii) BPA plans to determine the appropriate charge at a later date and
     place it within the final contract offer. The nature of the charge
     will be determined after further regional discussion, but may be a
     charge to «Customer Name» equal to the product of «Customer Name»'s
     energy under-delivery amount and (1) the Unauthorized Increase rate
     for such month, (2) the peak hourly Mid-C rate for such month,
     or (3) twice the difference between two market index rates for such
     month, such as the Mid-C heavy load and Mid-C light load market
     index rates.

> \(F\) «Customer Name» may request that BPA waive the penalty charge
> determined in section 3(b)(7)(E)(ii) above. «Customer Name» may only
> request a waiver if «Customer Name» supports such request by providing
> BPA data demonstrating the basis for its inability to satisfy the
> Test. BPA shall have the sole discretion to approve or deny such
> request for waiver of the penalty.

\(8\) Load Loss

> ***[Drafter's Note]{.underline}:** 3/17/08 - this section will be
> written after the next publication of revised version of Exhibit A and
> resolution of issues in the TRM*

\(9\) Slice System Resource Adjustments, Acquisitions, and Replacements

\(A\) Resource Acquisitions Under Section 6(m) of the Northwest Power
Act

> «Customer Name» retains all rights to participate in any BPA resource
> acquisitions pursuant to section 6(m) of the Northwest Power Act.

\(B\) Columbia Generating Station Displacement Election

> «Customer Name» may elect to participate in the displacement of
> Columbia Generating Station (CGS), as described in section 3(b)(10)
> below.

\(10\) Displacement of Columbia Generating Station (CGS)

\(A\) Definitions

> \(i\) "Additional Energy" means an amount of energy «Customer Name» is
> entitled to receive if it elects not to participate in CGS
> Displacements during an Election Year. During each CGS Displacement,
> the amount of Additional Energy shall be equal to «Customer Name»'s
> Slice Percentage multiplied by the difference between the Generation
> Benchmark and actual generation available from CGS each hour during
> each such CGS Displacement.
>
> \(ii\) "CGS Displacement" means a decision by PS to shut-down all or a
> portion of the power production at CGS due to market conditions.
>
> \(iii\) "Election Year" means the 12-month period beginning each
> February 1 and ending the following January 31.
>
> \(iv\) "Generation Benchmark" means the level at which PS reasonably
> expects CGS to operate, absent any CGS Displacement, typically about
> 1,130 MWh per hour.
>
> \(v\) "Incremental Rate" means the additional costs that PS would have
> incurred if it had operated CGS at full capability, and had not
> instituted CGS Displacements, including the costs of nuclear fuel and
> variable operations and maintenance costs, expressed in dollars per
> MWh.
>
> \(vi\) "Operating Plan" means the forecasted CGS monthly generation
> adopted in BPA's firm planning for an Operating Year.
>
> \(vii\) "Operating Year" means the 12 month period beginning each
> August 1 and ending the following July 31.

\(B\) CGS Displacement Election

No later than January 31, 2011, and no later than January 31 of each
calendar year thereafter, «Customer Name» shall provide PS written
notice stating whether or not it elects to participate in CGS
Displacements for the Election Year that begins on the following day.
Such election shall be irrevocable for each such Election Year, and
shall apply to all CGS Displacements implemented by PS during such
Election Year.

\(C\) Election to Participate in CGS Displacement

If «Customer Name» elects to participate in CGS Displacements, then
«Customer Name» shall not be entitled to Additional Energy.

\(D\) Election Not to Participate in CGS Displacements

> If «Customer Name» elects to not participate in CGS Displacements,
> then «Customer Name» shall be entitled to amounts of Additional Energy
> as described in this section 3(b)(10)(D).
>
> \(i\) «Customer Name» shall take delivery of Additional Energy
> associated with each CGS Displacement. PS shall make such Additional
> Energy available to «Customer Name» at the Points of Receipt.
>
> \(ii\) PS shall maintain for «Customer Name» an account that will
> indicate the accumulated amount of Additional Energy that was
> delivered to «Customer Name» during each CGS Displacement.
>
> \(iii\) Following the end of each Election Year, «Customer Name» shall
> pay an amount equal to «Customer Name»'s balance in the accumulated
> Additional Energy account multiplied by the Incremental Rate and such
> account balance shall be set to zero for the beginning of the
> subsequent Election Year. Such amount shall be included in the
> Individual Charges.
>
> *[Reviewer's note]{.underline}: The CGS Operating Plan may be
> submitted on a Fiscal Year basis to align with BPA's firm planning
> processes.*

\(E\) Operating Plan and Incremental Rate

> Within 30 days following the date that the Operating Plan for the
> upcoming Operating Year is adopted, PS shall provide «Customer Name»
> such Operating Plan and the actual Incremental Rate associated with
> the immediately preceding Operating Year.

\(11\) Treatment of Augmentation

\(A\) Entitlement to Augmentation

Existing Public Augmentation and Other Augmentation shall be included in
the Slice System, and «Customer Name» shall be entitled to receive a
share of such Augmentation in an amount equal to its Slice Percentage
multiplied by the sum of Existing Public Augmentation and Other
Augmentation, all as described in Exhibit L, Slice System Resources.

\(B\) Adjustment of Slice Percentage for Other Augmentation

For each Rate Period that BPA augments the Tier 1 System Resources as
described in the TRM for Other Augmentation, «Customer Name»'s Slice
Percentage shall be adjusted according to the procedure defined in
Exhibit K, Slice Percentage.

\(C\) Slice Percentage Not Adjusted for Existing Public Augmentation

After the Slice Percentage is determined pursuant to Exhibit J,
Determination of Initial Slice Percentage, the Slice Percentage shall
not be adjusted for changes in Existing Public Augmentation amounts.

> \(12\) **Slice Implementation Group**
>
> \(A\) Definitions
>
> \(i\) "Majority" means at least 51 percent.
>
> \(ii\) "Super Majority" means at least 66 percent.
>
> \(B\) **Slice Implementation Group**
>
> \(i\) The Parties anticipate that implementation issues will arise
> regarding the Slice Product or the Slice Computer Application, and
> that a forum is needed for discussing alternatives and making
> decisions that will affect BPA and the customers that have executed
> Slice/Block Power Sales Agreements ("Slice Customers"). The Slice
> Implementation Group (SIG) is hereby established for the purposes of;
> (1) considering, establishing and documenting modifications to the
> Slice Computer Application necessary to maintain its reasonable
> representation of Slice System energy, peaking, Storage, and ramping
> capability; (2) considering, establishing and documenting
> modifications to the Slice Computer Application necessary for
> «Customer Name» and other Slice Customers to schedule Slice Output
> under this Agreement; (3) establishing a clearinghouse for information
> regarding the Slice Product and the Slice Computer Application; and
> (4) establishing a forum for discussing any other issues regarding the
> Slice Product, the Slice Computer Application and associated
> procedures.
>
> \(ii\) BPA, «Customer Name», and all other Slice Customers shall each
> appoint a SIG member and an alternate SIG member to attend SIG
> meetings. Appointment of a SIG member and an alternate SIG member
> shall initially be made in writing submitted to BPA and all other
> Slice Customers, and thereafter to the SIG chairperson. The Slice
> Customer SIG members shall elect a SIG chairperson each year who shall
> conduct SIG meetings. Any SIG meeting may be conducted by telephone
> conference call. Any action or decision of the SIG, except as
> otherwise provided herein, shall be made by Majority vote of the
> members, or alternates, attending the SIG meeting in person or by
> telephone. The SIG may adopt rules and procedures, including dates,
> times, and locations of meetings, as it deems necessary or desirable.
> A meeting may be called by any SIG member or alternate by providing
> all other SIG members and alternates with written notice at least
> seven (7) days in advance of such meeting, setting forth the date,
> location, and subject matter of such meeting. The SIG will meet at
> least once each calendar year.

(iii) The Slice Computer Application is a BPA proprietary computer
      application. Subject to the limitations below, any Slice Customer
      may request changes to the Slice Computer Application. BPA may
      propose changes to the Slice Computer Application and shall confer
      with the SIG consistent with this section. Any such request shall
      be made in writing and be provided to all members of SIG. The
      request shall state the change or changes proposed, the reasons
      for such proposed change or changes, the expected impacts or
      benefits, and the estimated costs and time frame of
      implementation.

(iv) BPA shall have the sole right to change, upgrade or replace the
     Slice Computer Application as necessary to produce results that
     reasonably represent the energy, peaking, Storage, or ramping
     capability of the Slice System or any Slice System project.

(v) BPA shall have the sole right to change, upgrade or replace the
    Slice Computer Application as necessary to maintain functionality
    with BPA's internal business processes and systems.

(vi) BPA shall have the sole right to determine how Operating
     Constraints are described and entered as inputs to the Slice
     Computer Application, and shall do so in a manner that reflects the
     impacts of such Operating Constraints.

(vii) Slice Computer Application changes, upgrades or replacements
      described in sections 3(b)(12)(B)(iv) through 3(b)(12)(B)(vi)
      shall be reviewed and discussed by the SIG prior to implementation
      but shall not be subject to approval or revision by the SIG.

> \(viii\) Following receipt of written notice pursuant to
> section 3(b)(12)(B)(iii), the SIG chairperson shall convene the SIG to
> discuss the proposed change(s). The SIG shall decide, using its normal
> rules of procedure, the type of analysis (if any) that should be
> performed on the proposed change(s), and, as applicable, whether the
> proposed change(s) are worthy of further consideration.
>
> \(ix\) After an analysis (if any) is completed and distributed to the
> SIG members, the SIG chairperson shall convene a meeting of the SIG to
> discuss the proposed change(s), and any modifications thereto. If BPA
> elects to put the proposed change(s) out for public comment, the SIG
> chairperson will postpone any vote on the proposed change(s) for up to
> forty-five (45) days to permit BPA to conduct a public comment
> process.
>
> \(x\) At a meeting of the SIG, the SIG chairperson shall put to a vote
> the question of whether the proposed change(s) should be recommended
> for implementation. If a Majority of the SIG members vote in favor of
> implementing the proposed change(s), the proposed change(s) will be
> implemented by BPA unless:
>
> \(1\) the BPA SIG member opposes the proposed change(s), in which case
> the proposed change(s) shall not be adopted and Slice Computer
> Application shall not be revised; or
>
> \(2\) the BPA SIG member approves the proposed change(s) and one or
> more Slice Customer SIG members who voted against the implementation
> of the proposed change(s) requests in writing to all SIG members,
> within ten (10) days of the Majority vote approving such
> implementation, a second vote by all Slice Customer SIG members on the
> question of whether the proposed change(s) should be implemented, then
> implementation shall be deferred until such second vote is taken. If a
> Super Majority of the Slice Customer SIG members affirm under such
> second vote to implement the proposed change(s), then the proposed
> change(s) will be implemented. If a Super Majority of the Slice
> Customer SIG members does not affirm under such second vote to
> implement the proposed change(s), then the proposed change(s) will not
> be implemented.
>
> \(13\) **Creditworthiness**
>
> *Reviewer's Note: This section will be updated after determination
> that Slice will have creditworthiness requirements different than
> other RD products.*
>
> \(14\) **True-Up Adjustment Charge**
>
> *Reviewer's Note: This section is yet to be developed and will depend
> on outcomes of the TRM process.*

*END **SLICE/BLOCK** templates.*

**4. TIERED RATE METHODOLOGY** *(03/28/08 Version)*

> \(a\) BPA has proposed a Tiered Rate Methodology (TRM) to the Federal
> Energy Regulatory Commission (FERC), for a period up to 20 years
> (through September 30, 2028), which will establish a rate design for
> the Tier 1 PF power rate and the Tier 2 PF power rate. The
> then-effective TRM shall govern all rates for power sold under this
> Agreement.
>
> \(b\) In the event that FERC approves the TRM for a period less than
> through September 30, 2028, BPA shall, before the approved period of
> the TRM expires: (i) propose continuation of the TRM in a hearing
> conducted pursuant to section 7(i) of the Northwest Power Act or its
> successor: and then (ii) resubmit the TRM to FERC for approval through
> September 30, 2028.
>
> \(c\) BPA shall not propose any modification to the TRM, except as
> provided for and pursuant to the procedures set forth in the TRM.
>
> \(d\) The Parties intend that the TRM will be binding on them in
> accordance with its terms, but references to rates or the TRM in this
> Agreement do not make the rates or TRM a matter of contract. This
> Agreement shall not be construed as causing any rate issue or TRM
> matter to become a contract issue or matter. Disputes over the meaning
> and implementation of the TRM shall be resolved exclusively pursuant
> to the procedures set forth in the TRM.
>
> \(e\) BPA shall not publish a Federal Register Notice regarding BPA
> rates or the TRM that prohibits, limits, or restricts «Customer
> Name»'s right to submit testimony or brief issues on rate matters
> regarding the implementation of the TRM or establishment of BPA rates
> pursuant to it, provided however for purposes of this paragraph a
> "rate matter" shall not be deemed to include budgetary and revenue
> requirement issues.

**5. APPLICABLE RATES** *(03/30/08 Version)*

> Purchases under this Agreement are subject to the following rate
> schedules, or their successors: Priority Firm Power (PF), New Resource
> Firm Power (NR), and Firm Power Products and Services (FPS). Billing
> determinants for any purchases are included in each rate schedule.
> Power purchases under this Agreement are subject to BPA's rates, its
> GRSPs (or their successors), and the TRM.
>
> \(a\) **Priority Firm Power Rates and Contract High Water Mark**
>
> BPA shall establish its PF power rates that apply to purchases under
> this Agreement pursuant to section 7 of the Northwest Power Act, and
> in accordance with the TRM. Such rates shall include a rate schedule
> for purchase amounts at Tier 1 and purchase amounts at Tier 2.
> «Customer Name»'s CHWM shall be established in a process defined in
> the TRM and shall be stated in Exhibit B, High Water Marks and
> Contract Demand Quantities.

*Include in **BLOCK and SLICE/BLOCK** template:*

> \(1\) **Rate Period High Water Mark and Amount of Power Priced at
> Tier 1 PF Power Rate**
>
> *[Reviewers note]{.underline}: Shaded text is identical to Load
> Following text.*
>
> Each rate period BPA shall establish a RHWM which identifies the
> planned amount of annual average megawatts «Customer Name» may
> purchase during each rate period at Tier 1 PF rates, not to exceed
> «Customer Name»'s forecasted Net Requirement load listed in Exhibit A,
> Net Requirements. «Customer Name»'s CHWM as adjusted by calculations
> prescribed in the TRM will be «Customer Name»'s RHWM.
>
> []{.mark}
>
> \(2\) **Calculation of Power Priced at Tier 2 PF Rate**
>
> *[Reviewers note]{.underline}: Shaded text is identical to Load
> Following text:*
>
> Subject to «Customer Name»'s forecasted Net Requirement amounts
> established in Exhibit A, Net Requirements, the amount of Firm
> Requirements Power «Customer Name» may be eligible to purchase at
> Tier 2 PF rates shall be «Customer Name»'s forecasted annual
> above-RHWM load minus the non-federal resources «Customer Name» is
> obligated to use to serve such load as dedicated in Exhibit A, Net
> Requirements. Amounts of Firm Requirements Power priced at Tier 2 PF
> rates shall only be in whole annual average megawatts.

*END **BLOCK and SLICE/BLOCK** template.*

> \(3\) **Purchase Obligation for Load Service Above-RHWM**
>
> Subject to Exhibit C, Purchase Obligations, «Customer Name» shall
> determine and provide notice to BPA whether it shall serve its Total
> Retail Load above its RHWM, that is greater than 8,760 megawatt-hours
> and is not an NLSL, with either:
>
> \(A\) Firm Requirements Power purchased from BPA at a Tier 2 rate or
> rates, or
>
> \(B\) non-federal resource amounts dedicated to serve such load in
> Exhibit A, Net Requirements, or
>
> \(C\) a specific combination of both 4(a)(3)(A) and 4(a)(3)(B) above.
>
> «Customer Name»'s elections to serve its Total Retail Load above its
> RHWM and its obligations to purchase Firm Requirements Power from BPA
> at Tier 2 rates is stated in Exhibit C, Purchase Obligations.
> «Customer Name»'s obligation to apply its non-federal resources to its
> Total Retail Load is stated in Exhibit A, Net Requirements.
>
> \(4\) **Contract Demand Quantities**
>
> As established in the TRM, «Customer Name»'s Contract Demand
> Quantities (CDQs) are amounts of demand service provided by BPA at a
> zero demand charge and are listed in Exhibit B, High Water Marks and
> Contract Demand Quantities.
>
> \(b\) **New Resource Firm Power Rate**
>
> Any amounts of power provided to «Customer Name» from BPA for service
> to an NLSL, listed in Exhibit D, Additional Products and Special
> Provisions, shall be purchased at the NR Rate.
>
> \(c\) **Firm Power Products and Services Rate**
>
> Amounts of power and other services sold to «Customer Name» under the
> FPS rate, if any, are listed in Exhibit D, Additional Products and
> Special Provisions.

*Include in **BLOCK and SLICE/BLOCK** templates:*

> \(d\) **Additional Charges**
>
> «Customer Name» may incur additional charges or penalty charges in the
> GRSPs, including the Unauthorized Increase (UAI) and the Resource
> Shaping Charge (RSC), or their successors.

*END **BLOCK** and **SLICE/BLOCK** templates.*

*Include in **BLOCK and SLICE/BLOCK** templates:*

**6. ORDER OF TIER 2 REMARKETING AND RESOURCE REMOVAL** *(04/06/08
Version)*

> \(a\) **Order of Removal -- First Fiscal Year of Rate Period**
>
> Prior to the first Fiscal Year of each rate period, remarketing of
> Firm Requirements Power at Tier 2 PF rates and resource removal shall
> apply if the sum of «Customer Name»'s Tier 2 PF rate purchase amounts,
> as established in Exhibit C, Purchase Obligations, plus «Customer
> Name»'s RHWM exceeds «Customer Name»'s annual forecast of its Net
> Requirement load. For the first Fiscal Year of a rate period BPA shall
> remarket «Customer Name»'s Tier 2 PF rate purchase amounts and BPA
> shall remove «Customer Name»'s non-federal resource amounts dedicated
> to load after September 30, 2006, as established in Exhibit A, Net
> Requirements, in an amount limited by the excess amount of power. BPA
> shall remarket the Tier 2 PF rate purchase amounts and remove such
> resource amounts for the first Fiscal Year in the following order:
>
> \(1\) Amounts of Firm Requirements Power priced at Tier 2 PF rates
> listed in Exhibit C, Purchase Obligations, then
>
> \(2\) «Customer Name»'s Unspecified Resource Amounts listed in
> section 6 of Exhibit A, Net Requirements, then
>
> \(3\) «Customer Name»'s Specified Resources «Customer Name» dedicated
> to serve its load after September 30, 2006, listed in section 5 of
> Exhibit A, Net Requirements. If «Customer Name» has multiple Specified
> Resources dedicated to serve its load after September 30, 2006, BPA
> shall remove such resources in a last added, first removed order based
> on the order in which «Customer Name» made its resource additions.
>
> \(b\) **Order of Removal -- Second Fiscal Year of Rate Period**
>
> Prior to the second Fiscal Year of each rate period, the process
> established in section 6(a) above shall also apply and BPA will remove
> «Customer Name»'s Specified Resources dedicated to serve load before
> October 1, 2006, as established in Exhibit A, Net Requirements, in an
> amount limited to the lesser of: i) the remaining excess amount of
> power, or ii) the resource removal amount established in section 6(d)
> below. If «Customer Name» has multiple Specified Resources dedicated
> to serve its load before October 1, 2006, BPA shall remove such
> resources in a last added, first removed order based on the order in
> which «Customer Name» made its resource additions.
>
> \(c\) **Extent of Removal for the First Fiscal Year of Each Rate
> Period**
>
> For the first Fiscal Year of a rate period BPA shall continue to
> remarket «Customer Name»'s Tier 2 PF rate purchase amounts and BPA
> shall continue to remove the amounts of «Customer Name»'s non-federal
> resources dedicated to load after September 30, 2006, until the amount
> of Tier 2 PF rate purchase amounts remarketed by BPA plus the amount
> of non-federal resource removals equals the excess amount of power.
>
> \(d\) **Extent of Removal for the Second Fiscal Year of Each Rate
> Period**
>
> For the second Fiscal Year of a rate period BPA shall apply the
> process established in section 6(c) above, provided that after
> remarketing and resource removal under section 6(c) above, and if
> «Customer Name»'s Net Requirement load forecast for the second Fiscal
> Year of a rate period is lower than such forecast for the first Fiscal
> Year of the same rate period, then BPA shall remove «Customer Name»'s
> Specified Resources dedicated to serve load before October 1, 2006.
> The amount of such removal shall equal the difference between
> «Customer Name»'s Net Requirement load forecasts for the first and
> second Fiscal Years of the rate period, as long as «Customer Name» has
> such resources to remove. If «Customer Name»'s Net Requirement load
> forecast for the second Fiscal Year of a rate period is greater than
> or equal to such forecast for the first Fiscal Year of the same rate
> period, zero amounts of «Customer Name»'s Specified Resources
> dedicated to serve load before October 1, 2006, shall be removed.
>
> \(e\) **Rounding of Tier 2 PF Rate Purchase Amounts**
>
> To the extent remarketing of Tier 2 PF rate purchase amounts results
> in an amount less than a whole average megawatt, BPA shall round such
> amount to a whole average megawatt.
>
> \(f\) **Remarketing of Federal Power Priced at Tier 2 PF Rates**
>
> Consistent with rates established under the TRM, «Customer Name» shall
> be subject to applicable charges or credits associated with BPA's
> remarketing of amounts of Firm Requirements Power at Tier 2 PF rates.
> «Customer Name» shall be responsible for remarketing of any amounts of
> its non-federal resources, Specified or Unspecified, that are removed
> under this section 6.

*Include in **SLICE/BLOCK** template ONLY:*

> \(g\) **Monthly Resource Removal**
>
> In addition to the remarketing and resource removal described above,
> «Customer Name» shall annually remove or add monthly non-federal
> resource amounts to balance «Customer Name»'s Net Requirement with its
> purchase obligations under this Agreement. Prior to FY 2012, and prior
> to each Fiscal Year thereafter, «Customer Name» shall notify BPA in
> writing of the monthly non-federal resource amounts dedicated to serve
> «Customer Name»'s Total Retail Load that «Customer Name» shall remove
> for the upcoming Fiscal Year. «Customer Name» shall remove its monthly
> non-federal resource amounts to ensure that «Customer Name»'s actual
> monthly Total Retail Load minus its monthly non-federal resource
> amounts dedicated to serve its load listed in Exhibit A, Net
> Requirements, is always greater than or equal to the sum of:
>
> \(1\) «Customer Name»'s monthly Critical Slice Amounts in section 2 of
> Exhibit I, Critical Slice Amounts,
>
> \(2\) «Customer Name»'s monthly Tier 1 Block Power amounts (converted
> to megawatt-hours) listed in section 2(c) of Exhibit C, Purchase
> Obligations, and
>
> \(3\) «Customer Name»'s monthly Tier 2 Block Power amounts (converted
> to megawatt-hours) listed in section 3(d) of Exhibit C, Purchase
> Obligations.

*END **SLICE/BLOCK** template.*

*END **BLOCK and SLICE/BLOCK** templates.*

[]{.mark}

**7. TAKE OR PAY** *(03/30/08 Version)*

> «Customer Name» shall pay for the amount of power it has committed to
> purchase under section 3 of this Agreement, at the rates BPA
> establishes as applicable to such power, whether or not «Customer
> Name» took actual delivery of such power.

[]{.mark}

*Include in **SLICE/BLOCK** templates:*

**8. ONE-TIME RIGHT TO CHANGE PURCHASE OBLIGATION***(04/04/08 Version)*

*[Reviewers Note]{.underline}: Shaded text is identical to Load
Following and Block text:*

> «Customer Name» shall have a one-time right to change its purchase
> obligation, identified in section 3 of this Agreement, to another
> purchase obligation available from BPA, including Load Following or
> Block. Any elections of rate alternatives, resource additions, or
> other notices given to BPA under this Agreement shall continue to be
> applicable under the new agreement that implements «Customer Name»'s
> new purchase obligation, provided that BPA may update such terms and
> conditions consistent with the then current terms of the new purchase
> obligation, and additional costs may apply for service under the new
> agreement.
>
> \(a\) **Notice to Change**
>
> By May 31, 2017, «Customer Name» shall provide written notice to BPA
> that it is requesting a change to its purchase obligation effective
> October 1, 2019. «Customer Name»'s notice shall state the type of
> service requested.
>
> \(b\) **Charge to Change Purchase Obligation**
>
> «Customer Name» may be subject to charges as a result of «Customer
> Name»'s request to change its purchase obligation. Such charges will
> be determined in the next section 7(i) rate proceeding after May 31,
> 2017.
>
> \(c\) **Change Confirmation**
>
> Within 45 days after BPA's initial rate proposal for the next
> section 7(i) rate proceeding after May 31, 2017, «Customer Name» shall
> provide BPA with written confirmation of its decision to terminate
> this Agreement and replace it with the new agreement that implements
> «Customer Name»'s new purchase obligation.
>
> \(d\) **Agreement Replacement**
>
> Following «Customer Name»'s confirmation of its decision to change its
> purchase obligation, the Parties shall replace this Agreement with a
> new agreement that implements «Customer Name»'s requested purchase
> obligation. The new agreement will be effective no later than
> October 1, 2019, and, only if replaced, this Agreement shall terminate
> on that date. Any liabilities owed by either Party to the other shall
> remain until satisfied.

*END **SLICE/BLOCK** template:*

**9. BILLING CREDITS** *(02/28/08 Version)*

> If «Customer Name» develops a Generating Resource to serve its retail
> loads above its RHWM, «Customer Name» agrees that it shall forego any
> request for, and BPA is not obligated to include, billing credits, as
> defined in section 6(h) of the Northwest Power Act, on «Customer
> Name»'s power bills under this Agreement. This section does not apply
> to any billing credit contracts in effect as of the execution date of
> this Agreement.

*Include in **BLOCK and SLICE/BLOCK** templates:*

**10. SCHEDULING** *(03/27/08 Version)*

> «Customer Name» shall schedule power in accordance with Exhibit F,
> Scheduling.

*END **BLOCK and SLICE/BLOCK** templates.*

**11. DELIVERY** (03/17/08 Version)

> \(a\) **Definitions**
>
> \(1\) "Integrated Network Segment" *(03/17/08 Version)*means those
> facilities of the Federal Columbia River Transmission System that are
> required for the delivery of bulk power supplies, the costs for which
> are recovered through generally applicable rates, and that are
> identified as facilities in the Integrated Network Segment, or its
> successor, in the BPA segmentation study for the applicable
> transmission rate period as determined in a hearing establishing or
> revising BPA's transmission rates pursuant to section 7(i) of the
> Northwest Power Act.
>
> \(2\) "Primary Points of Receipt" *(03/17/08 Version)*means the points
> on the Pacific Northwest transmission system where Firm Requirements
> Power is forecasted to be made available by Power Services to
> «Customer Name» for purposes of obtaining a long-term firm
> transmission contract.
>
> \(3\) "Scheduling Points of Receipt" *(03/17/08 Version)*means the
> points on the Pacific Northwest transmission system where Firm
> Requirements Power is made available by Power Services to «Customer
> Name» for purposes of transmission scheduling.
>
> \(b\) **Transmission Service** *(03/17/08 Version)*

*Include in **SLICE/BLOCK** template:*

> *[Option 1]{.underline}: Include the following for customers who are
> NOT served by transfer:*
>
> \(1\) «Customer Name» is responsible for delivery of power from the
> Scheduling Points of Receipt.
>
> *End option 1*
>
> *[Option 2]{.underline}: Include the following for customers who ARE
> served by transfer.*
>
> \(1\) «Customer Name» is responsible for delivery of power from the
> Scheduling Points of Receipt, except as provided under section 11(f)
> below.
>
> *End option 2*
>
> \(2\) «Customer Name» shall provide at least 60 days' notice to Power
> Services prior to changing Balancing Authority Areas.
>
> \(3\) At «Customer Name»'s request, BPA shall provide «Customer Name»
> with Primary Points of Receipt and other information needed to enable
> «Customer Name» to obtain long-term firm transmission for delivery of
> power sold under this Agreement. If required by Transmission Services
> for purposes of transmission scheduling, Power Services shall provide
> «Customer Name» with Scheduling Points of Receipt. Power Services has
> the right to provide power to «Customer Name» at Scheduling Points of
> Receipt that are different than the Primary Points of Receipt. If BPA
> does provide power to «Customer Name» at Scheduling Points of Receipt
> that are different than the Primary Points of Receipt, then BPA shall
> reimburse «Customer Name» for any incremental, direct,
> non-administrative costs incurred by «Customer Name» to comply with
> delivering Firm Requirements Power from such a Scheduling Point of
> Receipt to «Customer Name»'s load if the following conditions, as
> outlined, have been met:
>
> \(A\) «Customer Name» has requested long-term firm transmission
> service to deliver its Firm Requirements Power using the Primary
> Points of Receipt and other information provided by Power Services;
> and,
>
> \(B\) This condition only applies if «Customer Name» has long-term
> Point to Point (PTP) transmission service (as defined in BPA's Open
> Access Transmission Tariff) for delivery of Firm Requirements Power to
> its load: «Customer Name» has submitted a request to redirect its
> long-term firm PTP transmission service to deliver Firm Requirements
> Power from the Scheduling Point of Receipt on a firm basis, but that
> request was not granted; and
>
> \(C\) «Customer Name»'s transmission schedule was curtailed due to
> non-firm status under PTP transmission service or its secondary
> service status under Network Integration transmission service (as
> defined in BPA's Open Access Transmission Tariff) and «Customer Name»
> can provide proof of the reimbursable costs incurred to replace the
> curtailed schedule.
>
> \(c\) **Liability for Delivery***(03/13/08 Version)*
>
> «Customer Name» waives any claims against BPA arising under this
> Agreement for nondelivery of power to any points beyond the applicable
> Scheduling Points of Receipt, except as described in section 11(b)(3)
> above. BPA shall not be liable for any third-party claims related to
> the delivery of power after it leaves the Scheduling Points of
> Receipt. In no event will either Party be liable under this Agreement
> to the other Party for damage that results from any sudden,
> unexpected, changed, or abnormal electrical condition occurring in or
> on any electric system, regardless of ownership. These limitations on
> liability apply regardless of whether or not this Agreement provides
> for transfer service.
>
> *[Option 1]{.underline}: Include the following if customer purchases
> the Slice/Block product and is NOT served by Transfer.*
>
> \(d\) **Real Power Losses** *(03/14/08 Version)*
>
> BPA is responsible for the real power losses necessary to deliver Firm
> Requirements Power under the Block power product to «Customer Name»'s
> PODs listed in Exhibit E, Metering. «Customer Name» shall be
> responsible for all real power losses associated with the delivery of
> power under the Slice power product.
>
> *[Option 2]{.underline}: Include the following if customer purchases
> the Slice/Block product and IS served by Transfer.*
>
> \(d\) **Real Power Losses** *(03/14/08 Version)*
>
> BPA is responsible for the real power losses necessary to deliver Firm
> Requirements Power under the Block power product to «Customer Name»'s
> PODs listed in Exhibit E, Metering.
>
> «Customer Name» shall be responsible for all real power losses
> associated with the delivery of power under the Slice power product
> except BPA will be responsible for real power losses associated with
> the delivery of Firm Requirements Power across the Third Party
> Transmission Provider's system to «Customer Name»'s load.

*END **SLICE/BLOCK** template.*

> \(e\) **Points of Metering Losses** *(04/03/08 Version)*
>
> BPA shall adjust measured amounts of power to account for losses, if
> any, that occur between «Customer Name»'s PODs and the respective
> Points of Metering (POMs).
>
> *[Drafter's Note]{.underline}: Include (f) for Transfer Service
> Customers.*
>
> \(f\) **Delivery by Transfer** *(04/03/08 Version)*
>
> Subject to the limitations in this section, BPA agrees to acquire and
> pay for Transfer Service to deliver Firm Requirements Power and
> Surplus Firm Power to «Customer Name»'s PODs, as listed in Exhibit E,
> Metering, in an amount not to exceed «Customer Name»'s Total Retail
> Load on an hourly basis. In the event that a conflict exists between
> the provisions of this Agreement and the Agreement Regarding Transfer
> Service (ARTS) «Agreement No.», this Agreement shall govern.
>
> \(1\) **Ancillary Services** *(02/28/08 Version)*
>
> BPA shall acquire and pay for Ancillary Services (as defined in BPA's
> Open Access Transmission Tariff) needed for «Customer Name»'s Transfer
> Service subject to the following limitations:
>
> \(A\) «Customer Name» shall reimburse BPA for regulation service or
> its replacement at the applicable Transmission Services rate, or its
> successor.
>
> \(B\) BPA shall pay for the Ancillary Service(s) charged by a
> Third-Party Transmission Provider to deliver Firm Requirements Power
> to the PODs listed in Exhibit E, Metering, only if «Customer Name» is
> also purchasing such Ancillary Service(s) from Transmission Services
> to deliver Firm Requirements Power to the PODs in Exhibit E, Metering.
> If at any time «Customer Name» is not purchasing Ancillary Service(s)
> from Transmission Services to deliver Firm Requirements Power to one
> or more of the PODs listed in Exhibit E, Metering, then «Customer
> Name» shall reimburse BPA for the Ancillary Service(s) charges BPA
> incurs from the Third Party Transmission Provider to deliver power to
> such POD(s), at the applicable or equivalent Transmission Services
> Ancillary Services rate.
>
> \(2\) **Low Voltage Delivery** *(02/28/08 Version)*
>
> Low Voltage Delivery is service over the Low Voltage Segment by any
> Third Party Transmission Provider's system. "Low Voltage Segment"
> means the facilities of a Third-Party Transmission Provider that are
> equivalent to the voltage level of the facilities excluded by
> Transmission Services from the Integrated Network Segment. For Low
> Voltage Delivery, «Customer Name» shall pay Power Services the
> applicable General Transfer Agreement (GTA) Delivery Charge, or its
> successor rate, consistent with the applicable BPA Wholesale Power
> Rate Schedules and GRSPs. The Parties shall list «Customer Name»'s
> PODs that require Low Voltage Delivery in Exhibit E, Metering.
>
> \(3\) **Direct Assignment Costs** *(03/26/08 Version)*
>
> «Customer Name» shall pay BPA for all directly assigned costs,
> including but not limited to: facility or system studies costs,
> construction costs, upgrade costs, and expansion costs, or other
> capital costs for facilities directly associated with service to any
> «Customer Name» PODs assessed by the Third Party Transmission Provider
> to BPA. Such costs will be consistent with Transmission Services'
> "Guidelines for Direct Assignment Facilities," and the "Final
> Supplemental Guidelines for Direct Assignment of Facilities Costs
> Incurred Under Transfer Agreements" included in BPA's Long Term
> Regional Dialogue Final Policy, July 2007, or any other revision of
> that policy, or as proposed in a BPA rate proceeding.
>
> \(4\) **Penalties Assessed By the Third Party Transmission Provider**
>
> BPA has the right to directly pass through to «Customer Name» any
> penalty charges assessed by the Third Party Transmission Provider that
> are associated with BPA's acquisition of Transfer Service to the PODs
> identified in Exhibit E, Metering. Such charges may include, but are
> not limited to, power factor penalties or excessive energy imbalance
> penalties.
>
> \(5\) **Removal of PODs**
>
> BPA may terminate deliveries at a POD if «Customer Name» consents to
> the termination or if BPA determines that «Customer Name»'s
> requirements for power at such point may be adequately supplied under
> reasonable conditions and circumstances at different POD(s):
>
> \(A\) directly from the FCRTS,
>
> \(B\) indirectly from the facilities of another transmission
> owner/operator, or
>
> \(C\) both.
>
> \(6\) **Non-Federal Deliveries** *(04/03/08 Version)*
>
> If «Customer Name» has a non-federal resource or is acquiring a
> non-federal resource necessary to serve its Total Retail Load above
> the established RHWM, and «Customer Name» has requested that BPA
> assist in the acquisition of transmission services for such resource,
> BPA shall offer «Customer Name» a separate agreement for specific
> terms and conditions under which BPA will obtain Transfer Service on a
> Third Party Transmission Provider's system for delivery of that
> resource to «Customer Name»'s system. Such agreement shall not be
> subject to section 19, Governing Law and Dispute Resolution. BPA shall
> develop the agreement consistent with the principles of service
> specified in Exhibit G, Principles of Non-federal Transfer Service.
>
> \(7\) **Annexed Loads** *(03/14/08 Version)*
>
> BPA shall arrange and pay for Transfer Service for federal power
> deliveries to serve «Customer Name»'s Annexed Load. «Customer Name»
> shall provide BPA written notice of any Annexed Load acquired greater
> than 1 average megawatt no later than 90 days prior to the
> commencement of service to the Annexed Load.
>
> However, BPA's obligation to provide Transfer Service to «Customer
> Name»'s Annexed Load shall be limited by the megawatt caps and process
> for annexed and new public customers set forth in BPA's Long Term
> Regional Dialogue Final Policy, July 2007, or any revision of that
> policy.
>
> *END Option (f) for Transfer Service Customers.*

*Include in **BLOCK** and **SLICE/BLOCK** templates:*

*[Reviewer's Note]{.underline}: The shaded text below is identical to
that shown in the Load Following Template.*

**12. METERING** *(03/31/08 Version)*

> \(a\) **Scheduling and Metering**
>
> «Customer Name» shall pay for the amount of power it schedules under
> this Agreement, except when the Parties agree that scheduling is
> economically or technologically impractical for a particular
> situation. In these cases, «Customer Name» shall pay for and install
> metering equipment that meets American National Standard Institute
> standards, including, but not limited to, C12.20, Electricity
> Meters---0.2 and 0.5 Accuracy Classes and the Institute of Electrical
> and Electronics Engineers, Inc. standard C57.13, Requirements for
> Instrument Transformers, or their successors.
>
> *[Reviewer's Note]{.underline}: The Meter Usage Data Estimations
> provision of GRSPs will be developed prior to 2011, these provisions
> are currently contained in BPA billing procedures.*
>
> If the metering equipment associated with the meters listed in
> Exhibit E, Metering, fails to properly measure or record the interval
> readings, BPA will apply the procedure set out in the Meter Usage Data
> Estimations provision of the GRSPs to determine the appropriate
> billing adjustment.
>
> \(b\) **Non-BPA Owned Meters**
>
> For all non-BPA metering equipment owned by «Customer Name» that is
> needed by BPA to forecast, plan, schedule, and bill for power
> «Customer Name» shall give BPA direct, electronic access to meter data
> from all meters not owned by BPA that are capable of being accessed
> electronically. For the purpose of inspection, «Customer Name» shall
> grant BPA physical access to «Customer Name»'s meters at BPA's
> request.
>
> BPA has the right to witness any meter tests conducted by «Customer
> Name» on non-BPA owned meters listed in Exhibit E and, with advance
> notice, BPA may conduct tests on such meters.
>
> If, at any time, BPA or «Customer Name» determines that a «Customer
> Name»-owned meter listed in Exhibit E, Metering is defective or
> inaccurate, «Customer Name» shall adjust, repair, or replace the meter
> to provide accurate metering as soon as practical. «Customer Name»
> shall operate, maintain, and replace, as necessary at «Customer Name»
> expense, all non-BPA metering equipment owned by «Customer Name». For
> non-BPA owned meters listed in Exhibit E, Metering that are not owned
> by «Customer Name» but are needed by BPA to forecast, plan, schedule
> and bill for power, «Customer Name» shall arrange for such meters to
> be operated, maintained and replaced, as necessary.
>
> \(c\) **New Meters**
>
> «Customer Name» and BPA shall enter into a separate agreement
> addressing the ownership, cost responsibility, location, access,
> maintenance, replacement, testing, and liability of the Parties with
> respect to new meters. For the purpose of implementing this provision,
> «Customer Name» shall grant BPA physical access to BPA owned meters at
> BPA's request.
>
> \(d\) **Metering an NLSL**
>
> «Customer Name» shall comply with and administer the metering of
> NLSLs, and for any large consumer loads for which BPA requests
> monitoring in aid of an NLSL determination, consistent with
> section 21(c)(4), Metering an NLSL.
>
> \(e\) **Metering Exhibit and Revisions**
>
> «Customer Name»shall provide meter data specified in section 14(b)(2),
> Information Exchange and Confidentiality, and shall notify BPA of any
> changes to Points of Delivery, Points of Metering, Interchange Points
> and related information for which it is responsible. BPA shall list
> «Customer Name»'s PODs and meters in Exhibit E, Metering. BPA may
> unilaterally revise the Metering exhibit to correctly reflect the
> Points of Delivery, Points of Metering, Interchange Points and related
> information, as required to operate under and to administer this
> Agreement.

*END **BLOCK and SLICE/BLOCK** templates.*

**13. BILLING AND PAYMENT**

> *[Reviewer's Note:]{.underline} BPA is evaluating the need for an
> Expedited Bill and will discuss this issue with customers prior to
> making a final decision.*
>
> \(a\) **Billing***(03/27/08* *Version)*
>
> BPA shall bill «Customer Name» monthly for any products and services
> provided during the preceding month(s). BPA may send «Customer Name»
> an estimated bill followed by a final bill. BPA shall send all bills
> on the bill's issue date. If electronic transmittal of the entire bill
> is not practical, BPA shall transmit a summary electronically, and
> send the entire bill by United States mail.
>
> \(b\) **Payment***(03/26/08 Version)*
>
> «Customer Name» shall pay all bills electronically in accordance with
> instructions on the bill. Payment of all bills, whether estimated or
> final, must be received by the 20^th^ day after the issue date of the
> bill (Due Date). If the 20^th^ day is a Saturday, Sunday, or federal
> holiday, the Due Date is the next business day. If «Customer Name» has
> made payment on an estimated bill then:
>
> \(1\) if the amount of the final bill exceeds the amount of the
> estimated bill, «Customer Name» shall pay BPA the difference between
> the estimated bill and final bill by the final bill's Due Date; and
>
> \(2\) if the amount of the final bill is less than the amount of the
> estimated bill, BPA shall pay «Customer Name» the difference between
> the estimated bill and final bill by the 20^th^ day after the final
> bill's issue date. If the 20^th^ day is a Saturday, Sunday, or federal
> holiday, BPA shall pay the difference by the next business day.
>
> \(c\) **Late Payments***(03/26/08 Version)*
>
> After the Due Date, a late payment charge equal to the higher of:
>
> \(1\) the Prime Rate (as reported in the Wall Street Journal or
> successor publication in the first issue published during the month in
> which payment was due) plus 4 percent, divided by 365; or
>
> \(2\) the Prime Rate times 1.5, divided by 365;
>
> shall be applied each day to any unpaid balance.
>
> \(d\) **Termination***(03/26/08 Version)*
>
> If «Customer Name» is more than 45 days late from the Due Date in
> paying its bills under this Agreement, BPA may require additional
> forms of payment assurance acceptable to BPA. If «Customer Name» does
> not provide such payment assurance and BPA determines in its sole
> discretion that «Customer Name» is unable to make the payments owed,
> BPA may terminate this Agreement.
>
> \(e\) **Disputed Bills***(03/26/08 Version)*
>
> If «Customer Name» disputes any portion of a bill, «Customer Name»
> shall provide notice to BPA with a copy of the bill noting the
> disputed amounts. If any portion of the bill is in dispute, «Customer
> Name» shall pay the entire bill by the Due Date. Unpaid bills
> (including both disputed and undisputed amounts) are subject to the
> late payment charges provided above. If the Parties agree, or if it is
> determined after dispute resolution, that «Customer Name» is entitled
> to a refund of any portion of the disputed amount, BPA shall make such
> refund with simple interest computed from the date of receipt of the
> disputed payment to the date the refund is made. The daily interest
> rate shall equal the Prime Rate (as reported in the Wall Street
> Journal or successor publication in the first issue published during
> the month in which payment was due) divided by 365.

**14. INFORMATION EXCHANGE AND CONFIDENTIALITY**

> \(a\) **General Requirements** *(03/30/08 Version)*
>
> Each Party shall provide the other Party with any information that is
> necessary to administer this Agreement, and to forecast «Customer
> Name»'s Total Retail Load, forecast BPA system load, comply with NERC
> reliability standards, prepare power bills, resolve billing disputes,
> administer transfer service, and to otherwise implement this
> Agreement. This obligation includes transmission and power scheduling
> information and load and resource metering information (such as
> one-line diagrams, metering diagrams, loss factors, etc.).
>
> \(b\) **Reports, Meter Data, and Load Data** *(03/30/08 Version)*
>
> \(1\) **Reports**
>
> \(A\) Within 30 days after final approval by the «Customer Name»'s
> governing body, «Customer Name» shall provide BPA with its annual
> financial report and statements.
>
> \(B\) Within 30 days after their submittal to the Energy Information
> Administration, «Customer Name» shall provide BPA with a copy of its
> Annual Form EIA-861 Reports. If «Customer Name» is not otherwise
> required to submit such reports to the EIA, then this requirement does
> not apply.
>
> \(2\) **Meter Data** *(04/04/08 Version)*
>
> \(A\) In accordance with section 12(e), Metering, and Exhibit E,
> Metering, «Customer Name» shall notify BPA of any changes to Points of
> Delivery, Points of Metering, Interchange Points and related
> information for which it is responsible. «Customer Name» shall ensure
> BPA has access to all data from load and resource meters that BPA
> determines is necessary to forecast, plan, schedule, and bill. Access
> to this data shall be on a schedule determined by BPA. Meter data
> shall be in hourly increments for all meters that record hourly data.
> Meter data includes, but is not limited to: «Customer Name»'s actual
> amounts of energy used or expended for loads and resources, and the
> physical attributes of «Customer Name»'s meters.
>
> \(B\) «Customer Name» consents to allow Power Services to receive the
> following information from Transmission Services or BPA's metering
> function: i) «Customer Name»'s meter data, as specified above in
> section 14(b)(2)(A), section 12(e), Metering, and Exhibit E, Metering,
> and ii) notification of outages or load shifts.
>
> \(C\) At least 15 calendar days in advance, «Customer Name» shall
> e‑mail BPA at: (i) <mdm@bpa.gov> and (ii) the contact shown in
> section 17, Notices and Contact Information, when the following events
> are planned to occur on «Customer Name»'s system: (i) installation of
> a new meter, (ii) changes or updates to an existing meter not owned by
> BPA, (iii) any planned line or meter outages, and (iv) any planned
> load shifts.
>
> \(D\) If an unplanned load shift or outage occurs, «Customer Name»
> shall e‑mail BPA at: (i) <mdm@bpa.gov>, and (ii) the contact shown in
> section 17, Notices and Contact Information, within 72 hours after the
> event.
>
> \(3\) **Data for Determining CHWM and CDQ** *(03/27/08 Version)*
>
> Upon request, «Customer Name» shall provide to BPA any load and
> resource information that BPA deems necessary to determine «Customer
> Name»'s CHWM and CDQ. This may include historical load data not
> otherwise available to BPA and other data necessary to allow BPA to
> adjust for weather normalization.

*Include in **BLOCK** and **SLICE/BLOCK** templates:*

> *[Reviewer's Note]{.underline}: Except for the highlighted portion
> below, the language is identical to the language above in section (4)
> for the Load Following customers that were Block or Block/Slice
> customers during Subscription.*
>
> \(4\) **Hourly Total Retail Load Data** *(03/27/08 Version)*
>
> *[Reviewer's Note]{.underline}: The data required below will be used
> by BPA for purposes of determining each customer's Net Requirement.*
>
> Unless BPA notifies «Customer Name» in writing that BPA has adequate
> hourly meter data to calculate «Customer Name»'s Total Retail Load,
> «Customer Name» shall provide the following hourly data electronically
> to BPA. «Customer Name» shall submit such data in a
> comma-separated-value (csv) format with the time/date stamp in one
> column and load amounts, with units of measurement specified, in
> another column.
>
> \(A\) By December 31, 2009, «Customer Name» shall send to BPA
> «Customer Name»\'s actual hourly Total Retail Load data for Fiscal
> Year 2002 through Fiscal Year 2009.
>
> \(B\) By December 31, 2010, «Customer Name» shall send to BPA,
> «Customer Name»\'s actual hourly Total Retail Load data for each for
> Point of Delivery for Fiscal Year 2010.
>
> \(C\) By December 31, 2011, and by December 31 of each year
> thereafter, «Customer Name» shall send BPA «Customer Name»\'s actual
> hourly Total Retail Load data for the immediately preceding Fiscal
> Year.
>
> \(5\) **Total Retail Load Forecast** *(03/28/08 Version)*
>
> *[Reviewer's Note]{.underline}: The data required below will be used
> by BPA for purposes of calculating Net Requirements and meeting WECC
> data reporting requirements.*
>
> By June 30, 2011, and by June 30 of each year thereafter, «Customer
> Name» shall provide BPA a forecast of «Customer Name»'s monthly energy
> and «Customer Name»'s system coincidental peak of «Customer Name»'s
> Total Retail Load for the upcoming 10 Fiscal Years. «Customer Name»
> shall send the forecast to BPA electronically, in a
> comma-separated-value (csv) format. «Customer Name» shall send the csv
> file with the following data elements in separate columns:
>
> \(A\) four-digit calendar year,
>
> \(B\) three-character month identifier,
>
> \(C\) monthly energy forecast,
>
> \(D\) unit measurement of monthly energy forecast,
>
> \(E\) monthly «Customer Name»-system coincidental peak forecast, and
>
> \(F\) unit measurement of monthly «Customer Name»-system coincidental
> peak forecast.

*END **BLOCK** and **SLICE/BLOCK** templates.*

> \(c\) **Transparency of Net Requirements and Load Forecast Processes**
> *(04/04/08 Version)*
>
> *[Reviewer's Note]{.underline}: This section is based on the Regional
> Dialogue Policy (page 52, section XI, Dispute Resolution.) Public
> release of Net Requirements information will apply ONLY to Block and
> Slice/Block because the amount of power they receive is based on the
> Net Requirement forecast so the accuracy of the Net Requirement
> forecast has financial implications for both the specific customer and
> all preference customers. It does not apply to Load Following
> customers. Load Following customers do not have their power amounts
> set based on forecast but receive all the power they need to meet
> their actual Net Requirement load each year.*
>
> \(1\) **Transparency for Net Requirements**
>
> By July 31, 2011, and by July 31 every year thereafter, BPA shall make
> the following information publicly available to «Customer Name» and
> all other BPA regional utility customers with a CHWM:
>
> \(A\) For each customer with a Block or Slice/Block purchase
> obligation, the customer's measured Total Retail Load data for the
> previous Fiscal Year in monthly LLH and HLH energy amounts and monthly
> customer-system peak amounts,
>
> \(B\) For each customer with a Block or Slice/Block purchase
> obligation, BPA's forecast of the customer's Total Retail Load, for
> the upcoming Fiscal Year, in monthly LLH and HLH energy amounts and
> monthly customer-system peak amounts, and
>
> \(C\) For each customer with a Block or Slice/Block purchase
> obligation, the dedicated monthly energy and peaking amounts for the
> upcoming Fiscal Year of the customer's non-federal resources listed in
> section 3 of Exhibit A, Net Requirements.
>
> \(2\) **Transparency for Above-RHWM Load Forecast Amounts**
>
> At least 60 days prior to each general rate case subject to the TRM,
> BPA will publish draft amounts for the above-RHWM load forecast for
> each customer with a CHWM that BPA intends to use in the upcoming rate
> case.

*Include 1^st^ **SENTENCE** for **BLOCK** and **SLICE/BLOCK**
templates:*

> «Customer Name» waives all claims of confidentiality regarding this
> data. «Customer Name» may provide comments regarding the published
> data to BPA within 14 days after notification. If the due date is a
> Saturday, Sunday, or a federal holiday, the due date is the next
> business day. After reviewing any comments and no later than 60 days
> from the date BPA originally releases such data BPA shall make
> available a final set of data and an explanation of any changes to
> «Customer Name» and all other customers with a CHWM.
>
> \(d\) **Confidentiality** *(01/17/08 Version)*
>
> Before «Customer Name» provides information that is subject to a
> privilege of confidentiality or nondisclosure to BPA, «Customer Name»
> shall clearly mark such information as confidential. BPA shall notify
> «Customer Name» as soon as practicable of any request received under
> the Freedom of Information Act (FOIA), or under any other federal law
> or court or administrative order, for any confidential information.
> BPA shall only release such confidential information to comply with
> FOIA or if required by any other federal law or court or
> administrative order. BPA shall limit the use and dissemination of
> confidential information within BPA to employees who need it for
> purposes of administering this Agreement.

**15. CONSERVATION AND RENEWABLES** *(04/05/08 Version)*

> \(a\) **Conservation** *(04/05/08 Version)*
>
> \(1\) **Evaluations**
>
> At BPA's expense, BPA may conduct, and «Customer Name» shall cooperate
> in, conservation impact and project implementation process evaluations
> to assess the amount, cost-effectiveness, and reliability of
> conservation in BPA's or «Customer Name»'s service area.
>
> BPA shall select the timing, frequency, and type of such evaluations.
> However, BPA shall do so with reasonable consideration of «Customer
> Name»'s and «Customer Name»'s consumers' needs.
>
> \(2\) **Reporting Requirements**
>
> *[Reviewer's Note]{.underline}: This section is based on the Regional
> Dialogue Policy (page 57, section XII, New Long Term Contracts)*
>
> \(A\) Beginning June 1, 2010, and no later than June 1 every two years
> thereafter, «Customer Name» shall create and submit a10-year
> conservation plan stating «Customer Name»'s projection of planned
> conservation, including biennial conservation targets. If «Customer
> Name» is required under state law (such as the Washington State Energy
> Independence Act (RCW 19.285)) to create and submit a conservation
> plan, «Customer Name» may submit to BPA a copy of such plan to meet
> the requirements of this subsection if it includes, or is supplemented
> by, the information required above. The requirements of this
> section 15(a)(2)(A) are waived if «Customer Name» purchases all of its
> power from BPA to serve its Total Retail Load.
>
> \(B\) «Customer Name» shall verify and report all cost-effective (as
> defined by section 3(4) of the Northwest Power Act) non-BPA-funded
> conservation measures and projects savings achieved by «Customer Name»
> through the Regional Technical Forum's Planning, Tracking and
> Reporting database or its successor tool. Verification protocols of
> conservation measures and projects, reporting timelines and
> documentation requirements shall comply with BPA's Energy Efficiency
> Implementation Manual or its successor.
>
> \(b\) **Renewable Resources** *(04/05/08 Version)*
>
> \(1\) **Renewable Energy Certificates**
>
> BPA shall transfer Renewable Energy Certificates (RECs), or their
> successors, to «Customer Name» in accordance with Exhibit H, Renewable
> Energy Certificates and Carbon Attributes.
>
> \(2\) **Reporting Requirements**
>
> *[Reviewer's Note]{.underline}: This section is based on the Regional
> Dialogue Policy (page 57, section XII, New Long Term Contracts)*
>
> Beginning June 1, 2012, and by June 1 every year thereafter, «Customer
> Name» shall provide BPA with the following:
>
> \(A\) updated information on power generated by renewable resources,
> including net metered renewable resources operating behind the BPA
> meter, currently used by «Customer Name» to serve its Total Retail
> Load, under Exhibit A, Net Requirements. Such information shall
> include: project name, fuel type(s), location, date contract signed,
> project energization date, capacity, capacity factor, remaining term
> of purchase (or if direct ownership remaining life of the project),
> and the percentage of output dedicated to serve «Customer Name»'s
> Total Retail Load for the forthcoming calendar year.
>
> \(B\) all purchases of RECs used to meet requirements under state or
> federal law for the forthcoming Calendar Year. Such information shall
> include: quantity, fuel type(s), location and energization date of the
> RECs producing resource(s), as well as the calendar quarter and the
> year in which the RECs will be generated.
>
> \(C\) an updated long-term renewable resource plan. «Customer Name»
> shall provide BPA with «Customer Name»'s 2‑year forecast of expected
> acquisitions of power generated by renewable resources. Such forecast
> shall disclose the expected amount of such power to be purchased,
> capacity of expected acquisitions by fuel type and percentage of
> output dedicated to serve «Customer Name»'s Total Retail Load.
>
> The three preceding renewable resource requirements are waived if
> «Customer Name» purchases all of its power for service to its Total
> Retail Load from BPA.

**16. RESOURCE ADEQUACY** *(02/28/08 Version)*

> *[Reviewer's Note]{.underline}: This section is based on the Regional
> Dialogue Policy (page 43, section IX, Resource Adequacy)*
>
> By November 30, 2010, and by November 30 each year thereafter,
> «Customer Name» shall provide to the Pacific Northwest Utilities
> Conference Committee (PNUCC), or its successor, forecasted loads and
> resources data to facilitate a region-wide assessment of loads and
> resources in a format, length of time, and level of detail specified
> in PNUCC's Northwest Regional Forecast Data Request.
>
> After consultation with the Regional Resource Adequacy Forum, BPA may
> require «Customer Name» to submit additional data to the Northwest
> Power and Conservation Council (Council) that BPA determines is
> necessary for the Council to perform a regional resource adequacy
> assessment.
>
> The requirements of this section are waived if «Customer Name»
> purchases all of its power from BPA to serve its Total Retail Load.

**17. NOTICES AND CONTACT INFORMATION** *(03/30/08 Version)*

> Any notice required under this Agreement shall be in writing and shall
> be delivered in person or with proof of receipt by a nationally
> recognized delivery service, by United States Certified Mail, or by
> another method agreed to by the Parties. Notices are effective when
> received. Either Party may change the name or address for delivery of
> notice by providing notice of such change or other mutually agreed
> method. The Parties shall deliver notices to the following person and
> address: *([Drafter's Note]{.underline}: Check BPA address and phone
> number prefix to ensure it is applicable.)*

+-----------------------------------+-----------------------------------+
| If to «Customer Name»:            | If to BPA:                        |
|                                   |                                   |
| «Utility Name»                    | Bonneville Power Administration   |
|                                   |                                   |
| «Street Address»                  | «Street Address»                  |
|                                   |                                   |
| «P.O. Box »                       | «P.O. Box»                        |
|                                   |                                   |
| «City, State, Zip»                | «City, State, Zip»                |
|                                   |                                   |
| Attn: «Contract Name»             | Attn: «AE Name - Routing»         |
|                                   |                                   |
| «Contract Title»                  | Account Executive                 |
|                                   |                                   |
| Phone: «###-###-####»             | Phone: «###-###-####»             |
|                                   |                                   |
| FAX: «###-###-####»               | FAX: «###-###-####»               |
|                                   |                                   |
| E-Mail: «E-mail address»          | E-Mail: «E-mail address»          |
+-----------------------------------+-----------------------------------+

**18. UNCONTROLLABLE FORCES** *(04/02/07 Version)*

> []{.mark}
>
> \(a\) The Parties shall not be in breach of their respective
> obligations to the extent the failure to fulfill any obligation is due
> to an Uncontrollable Force. "Uncontrollable Force" means an event
> beyond the reasonable control of, and without the fault or negligence
> of, the Party claiming the Uncontrollable Force, that prevents that
> Party from performing its contractual obligations under this Agreement
> and which, by exercise of that Party's reasonable diligence and
> foresight, such Party was unable to avoid. Uncontrollable Forces
> include, but are not limited to:
>
> \(1\) any unplanned curtailment or interruption of firm transmission
> service used to deliver Firm Requirements Power sold under this
> Agreement to «Customer Name»;
>
> \(2\) any planned curtailment or interruption of long-term firm
> transmission service used to deliver Firm Requirements Power sold
> under this Agreement to «Customer Name» if such curtailment or
> interruption occurs on BPA\'s or a Third Party\'s Transmission System;
>
> \(3\) any failure of «Customer Name»\'s distribution or transmission
> facilities that prevents «Customer Name» from delivering power to
> end-users;
>
> \(4\) strikes or work stoppage;
>
> \(5\) floods, earthquakes, or other natural disasters; and
>
> \(6\) orders or injunctions issued by a court or regulatory body
> having competent subject matter jurisdiction which the Party claiming
> the Uncontrollable Force, after diligent efforts, was unable to have
> stayed, suspended, or set aside pending review by a court of competent
> subject matter jurisdiction.
>
> \(b\) Neither the unavailability of funds or financing, nor conditions
> of national or local economies or markets shall be considered an
> Uncontrollable Force. The economic hardship of either Party shall not
> constitute an Uncontrollable Force. Nothing contained in this
> provision shall be construed to require either Party to settle any
> strike or labor dispute in which it may be involved.
>
> \(c\) If an Uncontrollable Force prevents a Party from performing any
> of its obligations under this Agreement, such Party shall:
>
> \(1\) immediately notify the other Party of such Uncontrollable Force
> by any means practicable and confirm such notice in writing as soon as
> reasonably practicable;
>
> \(2\) use its best efforts to mitigate the effects of such
> Uncontrollable Force, remedy its inability to perform, and resume full
> performance of its obligation hereunder as soon as reasonably
> practicable;
>
> \(3\) keep the other Party apprised of such efforts on an ongoing
> basis; and
>
> \(4\) provide written notice of the resumption of performance.
>
> Written notices sent under this section must comply with section 17,
> Notices and Contact Information.

**19. GOVERNING LAW AND DISPUTE RESOLUTION** *(04/07/08 version)*

> This Agreement shall be interpreted consistent with and governed by
> federal law. The Parties shall identify issue(s) in dispute and make a
> good faith effort to negotiate a resolution of disputes before either
> Party may initiate litigation or arbitration. Such good faith effort
> shall include discussions or negotiations between the Parties'
> executives or managers. During a contract dispute or contract issue
> between the Parties arising out of this Agreement, the Parties shall
> continue performance under this Agreement pending resolution of the
> dispute, unless to do so would be impossible or impracticable. The
> Parties reserve their rights to seek judicial resolution of any
> dispute arising under this Agreement.
>
> \(a\) **Judicial Resolution**
>
> Final actions subject to section 9(e) of the Northwest Power Act are
> not subject to arbitration under this Agreement and shall remain
> within the exclusive jurisdiction of the United States Ninth Circuit
> Court of Appeals. Such final actions include, but are not limited to,
> the establishment and implementation of rates and rate methodologies.
> Any dispute regarding any rights of the Parties under any BPA policy,
> including the implementation of such policy, shall not be subject to
> arbitration under this Agreement. For purposes of this section 19, BPA
> policy means any written document adopted by BPA as a final action in
> a decision record or record of decision that establishes a policy of
> general application, or makes a determination under an applicable
> statute. If either Party asserts that a dispute is excluded from
> arbitration under this section 19, then both Parties shall apply to
> the federal court having jurisdiction for an order determining whether
> such dispute is subject to arbitration under this section 19.
>
> \(b\) **Arbitration**
>
> Any contract dispute or contract issue between the Parties arising out
> of this Agreement, which is not excluded by section 19(a) above, shall
> be subject to arbitration. During arbitration, the Parties shall
> continue performance under this Agreement pending resolution of the
> dispute, unless to do so would be impossible or impracticable.
>
> To resolve disputes that Parties agree are strictly issues of fact,
> binding arbitration may be used consistent with BPA's Binding
> Arbitration Policy or its successor. Before initiating binding
> arbitration, the Parties shall draft and sign an agreement to engage
> in binding arbitration, which shall set forth the precise issue in
> dispute, the amount in controversy, and the maximum monetary award
> allowed, pursuant to BPA's Binding Arbitration Policy or its
> successor.
>
> \(c\) **Arbitration Procedure**
>
> Any arbitration shall take place in Portland, Oregon, unless the
> Parties agree otherwise. The Parties agree that a fundamental purpose
> for arbitration is the expedient resolution of disputes; therefore,
> the Parties shall make best efforts to resolve an arbitrable dispute
> within one year of initiating arbitration. The rules for arbitration
> shall be agreed to by the Parties.
>
> \(d\) **Arbitration Remedies**
>
> The payment of monies shall be the exclusive remedy available in any
> arbitration proceeding. Under no circumstances shall specific
> performance be an available remedy against BPA.
>
> \(e\) **Finality**
>
> \(1\) In binding arbitration, the arbitration award shall be final and
> binding on both Parties, except that either Party may seek judicial
> review based upon any of the grounds referred to in the Federal
> Arbitration Act, 9 U.S.C. §1-16 (1988). Judgment upon the award
> rendered by the arbitrators may be entered by any court having
> jurisdiction thereof.
>
> \(2\) In non-binding arbitration, the arbitration award is not binding
> on the Parties. Subsequent to non-binding arbitration, Parties may
> seek judicial resolution of the dispute.
>
> \(f\) **Arbitration Costs**
>
> Each Party shall be responsible for its own costs of arbitration,
> including legal fees. The arbitrator(s) may apportion all other costs
> of arbitration between the Parties in such manner as the arbitrator(s)
> deem reasonable taking into account the circumstances of the case, the
> conduct of the Parties during the proceeding, and the result of the
> arbitration.

**20. NO WARRANTY** *(03/26/08 Version)*

> *[Reviewer's Note]{.underline}: This section is based on the Regional
> Dialogue Policy (page 52, section XI, Dispute Resolution)*
>
> Nothing in this Agreement, or any dispute arising out of this
> Agreement, shall limit the Administrator's responsibility to establish
> rates to recover costs and timely repay the U.S. Treasury or to take
> actions that are effectively required by a court order. It is the
> Parties' intent to structure a durable commercial relationship that is
> based on existing statutory requirements and to provide «Customer
> Name» with protection against change to those guiding statutes as is
> reasonably possible. However, BPA does not warrant or represent that
> this Agreement is immune from costs imposed by court order or agency
> regulations of a general and public nature or is immune from
> subsequently enacted legislation.

**21. STATUTORY PROVISIONS**

> \(a\) **Retail Rate Schedules** *(09/04/07 Version)*
>
> «Customer Name» shall provide BPA with its retail rate schedules, as
> required by section 5(a) of the Bonneville Project Act, P.L. 75‑329,
> within 30 days of each of «Customer Name»'s retail rate schedule
> effective dates.
>
> \(b\) **Insufficiency and Allocations** *(04/04/08 Version)*
>
> If BPA determines, consistent with section 5(b) of the Northwest Power
> Act and other applicable statutes, that it will not have sufficient
> resources on a planning basis to serve its loads after taking all
> actions required by applicable laws then BPA shall give «Customer
> Name» a written notice that BPA may restrict service to «Customer
> Name». Such notice shall be consistent with BPA's insufficiency and
> allocations methodology, published in the Federal Register on
> March 20, 1996, and shall state the effective date of the restriction,
> the amount of «Customer Name»'s load to be restricted and the expected
> duration of the restriction. BPA shall not change that methodology
> without the written agreement of all public body, cooperative, federal
> agency and investor-owned utility customers in the Region purchasing
> federal power from BPA under section 5(b) of the Northwest Power Act.
> Such restriction shall take effect no sooner than five years after BPA
> provides notice to «Customer Name». If BPA imposes a restriction under
> this provision then the amount of Firm Requirements Power that
> «Customer Name» is obligated to purchase pursuant to section 3 and
> Exhibit C of this Agreement shall be reduced to the amounts available
> under such allocation methodology for restricted service.
>
> \(c\) **New Large Single Loads**
>
> \(1\) **Determination of an NLSL** *(04/06/08 Version)*
>
> In accordance with BPA's NLSL Policy, BPA may determine that a load is
> an NLSL as follows:
>
> \(A\) BPA shall determine an increase in production load to be an NLSL
> if the energy consumption of the end-use consumer's load associated
> with a single new facility, an existing facility, or expansion of an
> existing facility during the immediately past consecutive twelve
> months equals or exceeds by 10 aMW (87,600,000 kilowatt hours) the
> greater of:
>
> \(i\) the end-use consumer's energy consumption for such facility for
> the consecutive twelve months one year earlier, or
>
> \(ii\) the amount of the contracted for, or committed to (CF/CT) load
> of the end-use consumer as of September 1, 1979; or
>
> \(B\) The Parties may agree that the installed production equipment at
> a facility will exceed 10 aMW consumption over any twelve consecutive
> months and such agreement shall constitute a binding NLSL
> determination.
>
> \(2\) **Determination of a Facility** *(09/04/07 Version)*
>
> BPA shall make a written determination as to what constitutes a single
> facility, for the purpose of identifying an NLSL, based on the
> following criteria:
>
> \(A\) whether the load is operated by a single end-use consumer;
>
> \(B\) whether the load is in a single location;
>
> \(C\) whether the load serves a manufacturing process which produces a
> single product or type of product;
>
> \(D\) whether separable portions of the load are interdependent;
>
> \(E\) whether the load is contracted for, served or billed as a single
> load under «Customer Name»'s customary billing and service policy;
>
> \(F\) consideration of the facts from previous similar situations; and
>
> \(G\) any other factors the Parties determine to be relevant.
>
> \(3\) **Administrative Obligations and Rights** *(4/06/08 Version)*
>
> *Drafter's Note: If customer has a new or existing NLSL or CF/CT,
> include details of the NLSL or CF/CT and the manner of service in
> Exhibit D, Additional Products and Special Provisions.*
>
> \(A\) «Customer Name»'s NLSLs and CF/CT loads are listed in Exhibit D,
> Additional Products and Special Provisions.
>
> \(B\) «Customer Name» shall provide reasonable notice to BPA of any
> expected increase in a single load that may qualify as an NLSL. The
> Parties shall list any such potential NLSLs in Exhibit D, Additional
> Products and Special Provisions. If BPA determines that any load
> associated with a single facility that is capable of growing 10 aMW or
> more in a consecutive twelve-month period, then such load shall be
> subject to monitoring by BPA.
>
> \(C\) When BPA makes a request, «Customer Name» shall provide physical
> access to its substations and other service locations where BPA needs
> to perform inspections or gather information for purposes of
> implementing section 3(13) of the Northwest Power Act, including but
> not limited to making a final NLSL, facility, or CF/CT determination.
> «Customer Name» shall also require the end-use consumer to provide BPA
> physical access to inspect any facility for these purposes.
>
> \(D\) Unless the Parties agree pursuant to section 21(c)(1)(B) above,
> BPA shall unilaterally determine whether a new load or an increase in
> existing load at a facility is an NLSL. If BPA determines that the
> load is an NLSL, BPA shall notify «Customer Name» and the Parties
> shall add the NLSL to Exhibit D, Additional Products and Special
> Provisions.
>
> \(4\) **Metering an NLSL** *(4/06/08 Version) (03/30/08 Version)*
>
> For any loads that are monitored by BPA for an NLSL determination, and
> at any facility that is determined by BPA to be an NLSL, «Customer
> Name» agrees to either consent to BPA installing BPA owned meters or
> «Customer Name» shall install meters meeting the exact specification
> BPA provides to «Customer Name». «Customer Name» and BPA shall enter
> into a separate agreement for the location, ownership, cost
> responsibility, access, maintenance, testing, replacement and
> liability of the Parties with respect to such meters. «Customer Name»
> shall arrange for metering locations that allow accurate measurement
> of the facility's load. «Customer Name» shall arrange for BPA to have
> physical access to such meters and «Customer Name» shall ensure BPA
> has access to all NLSL meter data that BPA determines is necessary to
> forecast, plan, schedule, and bill for power
>
> \(5\) **Undetermined NLSLs***(04/06/08 Version)*
>
> If BPA does not determine at the outset that an increase in load is an
> NLSL, then the Parties shall install metering equipment as required by
> section 21(c)(4), above, and BPA shall bill «Customer Name» for the
> increase in load at the applicable PF Rate during any consecutive
> twelve-month monitoring period. If BPA later determines that the
> increase in load is an NLSL, then BPA shall revise «Customer Name»'s
> bill to reflect the difference between the applicable PF rate and the
> applicable NR rate in effect for the monitoring period in which the
> increase takes place. «Customer Name» shall pay that bill with simple
> interest computed from the start of the monitoring period to the date
> the payment is made. The daily interest rate shall equal the Prime
> Rate (as reported in the Wall Street Journal or successor publication
> in the first issue published during the month in which the monitoring
> period began) divided by 365.
>
> If BPA concludes in its sole judgment that «Customer Name» has not
> fulfilled its obligations under sections 21(c)(3) and 21(c)(4), BPA
> may determine any load subject to NLSL monitoring to be an NLSL. Such
> NLSL determination shall be final unless «Customer Name» proves to
> BPA's satisfaction that the applicable load did not exceed 10 aMW in
> any twelve month monitoring period.

*Include in **BLOCK** and **SLICE/BLOCK** templates.*

> \(6\) **Service Elections for an NLSL** *(02/28/08 Version)*
>
> «Customer Name» shall serve all NLSLs with non-federal firm resources
> that are not already dedicated and declared in Exhibit A, Net
> Requirements and Exhibit D, Additional Products and Special
> Provisions, to serve «Customer Name»'s Total Retail Load in the
> region. «Customer Name» agrees to provide such dedicated firm
> resources on a continuous basis as identified in Exhibit A, Net
> Requirements. Under no circumstances shall BPA be required to acquire
> firm power for service to such NLSLs.

*END **BLOCK** and **SLICE/BLOCK** templates.*

> \(7\) **Renewable Resource/Cogeneration Exception** *(4/6/08 Version)*
>
> An end-use consumer served by «Customer Name», with a facility whose
> load is a NLSL, may reduce its NLSL to less than 10 average megawatts
> by applying an on-site renewable resource or on-site cogeneration
> behind the customer's meter to its facility load. «Customer Name»
> shall ensure that such resource is continuously applied to serve the
> NLSL, consistent with BPA's "Renewables and On-Site Cogeneration
> Option under the NLSL Policy" portion of its Policy for Power Supply
> Role for Fiscal Years 2007-2011, adopted February 4, 2005, and the
> NLSL policy included in BPA's Long Term Regional Dialogue Final
> Policy, July 2007, as amended or replaced. If the NLSL end-use
> consumer meets the qualification for the exception, the Parties shall
> amend Exhibit D, Additional Products and Special Provisions to add the
> on-site renewable resource or cogeneration facility and the
> requirements for such service.
>
> \(d\) **Priority of Pacific Northwest Customers** *(09/04/07 Version)*
>
> The provisions of sections 9(c) and (d) of the Northwest Power Act and
> the provisions of P.L. 88‑552 as amended by the Northwest Power Act
> are incorporated into this Agreement by reference. «Customer Name»,
> together with other customers in the Region, shall have priority to
> BPA power consistent with such provisions.
>
> \(e\) **Prohibition on Resale** *(09/04/07 Version)*
>
> «Customer Name» shall not resell Firm Requirements Power except to
> serve «Customer Name»'s Total Retail Load or as otherwise permitted by
> federal law.
>
> \(f\) **Use of Regional Resources** *(02/28/08 Version)*
>
> \(1\) Within 60 days prior to the start of each Fiscal Year, «Customer
> Name» shall provide notice to BPA of any firm power from a Generating
> Resource, or a Contract Resource during its term, that has been used
> to serve firm consumer load in the Region and that «Customer Name»
> plans to export for sale outside the Region in the next Fiscal Year.
> BPA may request additional information on «Customer Name»'s sales and
> dispositions of non-federal resources if BPA has information that
> «Customer Name» may have made such an export and not notified BPA. BPA
> may request and «Customer Name» shall provide within 30 days of such
> request, information on the planned use of any or all of «Customer
> Name» Generating and Contract Resources.
>
> \(2\) «Customer Name» shall be responsible for monitoring any firm
> power from Generating Resources and Contract Resources it sells in the
> Region to ensure such firm power is planned to be used to serve firm
> consumer load in the Region.
>
> \(3\) If «Customer Name» fails to report to BPA in accordance with
> section 21(f)(1), above, any of its planned exports for sale outside
> the Region of firm power from a Generating Resource or a Contract
> Resource that has been used to serve firm consumer load in the Region,
> and BPA makes a finding that an export which was not reported was
> made, BPA shall decrement the amount of its Firm Requirements Power
> sold under this Agreement by the amount of the export that was not
> reported, for the duration of the export. When applicable such
> decrements shall be identified in section 7(b) of Exhibit A, Net
> Requirements.
>
> \(4\) For purposes of this section, an export for sale outside the
> Region means a contract for the sale or disposition of firm power from
> a Generating Resource, or a Contract Resource during its term, that
> has been used to serve firm consumer load in the Region in a manner
> that such output is no longer used or not planned to be used solely to
> serve firm consumer load in the Region. Delivery of firm power outside
> the Region under a seasonal exchange agreement that is made consistent
> with BPA's section 9(c) policy will not be considered an export. Firm
> power from a Generating Resource or a Contract Resource used to serve
> firm consumer load in the Region means the firm generating or load
> carrying capability of a Generating Resource or a Contract Resource as
> established under Pacific Northwest Coordination Agreement resource
> planning criteria, or other resource planning criteria generally used
> for such purposes within the Region.
>
> \(g\) **BPA Appropriations Refinancing** *(09/04/07 Version)*
>
> The Parties agree that the Bonneville Power Administration Refinancing
> section of the Omnibus Consolidated Recisions and Appropriations Act
> of 1996 (BPA Refinancing Act), P.L. 104‑134, 110 Stat. 1321, 350, as
> stated in the United States Code on the date this Agreement is signed
> by the Parties, is incorporated by reference and is a material term of
> this Agreement.

**22. STANDARD PROVISIONS**

> \(a\) **Amendments** *(09/04/07 Version)*
>
> Except where this Agreement explicitly allows for one Party to
> unilaterally amend a provision or exhibit, no amendment of this
> Agreement shall be of any force or effect unless set forth in a
> written instrument signed by authorized representatives of each Party.
>
> \(b\) **Entire Agreement and Order of Precedence** *(09/26/07
> Version)*
>
> This Agreement, including documents expressly incorporated by
> reference, constitutes the entire agreement between the Parties. It
> supersedes all previous communications, representations, or contracts,
> either written or oral, which purport to describe or embody the
> subject matter of this Agreement. The body of this Agreement shall
> prevail over the exhibits to this Agreement in the event of a
> conflict.
>
> \(c\) **Assignment** *(03/28/08 Version)*
>
> *([Reviewer's Note]{.underline}: Subparagraph ii is based on the
> Regional Dialogues Policy pages 17-18, section II, Service to Public
> Utilities.)*
>
> This Agreement is binding on any successors and assigns of the
> Parties. Neither Party may otherwise transfer or assign this
> Agreement, in whole or in part, without the other Party's written
> consent. Such consent shall not be unreasonably withheld. Without
> limiting the foregoing, BPA's refusal to consent to assignment shall
> not be considered unreasonable if, in BPA's sole discretion: (i) the
> sale of power by BPA to the assignee would violate any applicable
> statute, or (ii) such sale might adversely affect the tax-exempt
> status of bonds issued as part of an issue that finances or refinances
> the Columbia Generating Station or that such sale might limit the
> ability to issue future .tax-exempt bonds to finance or refinance the
> Columbia Generating Station. «Customer Name» may not transfer or
> assign this Agreement to any of its retail consumers.
>
> \(d\) **No Third‑Party Beneficiaries** *(10/01/07 Version)*
>
> This Agreement is made and entered into for the sole benefit of the
> Parties, and the Parties intend that no other person or entity shall
> be a direct or indirect beneficiary of this Agreement.
>
> \(e\) **Waivers** *(10/01/07 Version)*
>
> No waiver of any provision or breach of this Agreement shall be
> effective unless such waiver is in writing and signed by the waiving
> Party, and any such waiver shall not be deemed a waiver of any other
> provision of this Agreement or any other breach of this Agreement.
>
> \(f\) **BPA Policies** *(09/04/07 Version)*
>
> Any reference in this Agreement to BPA policies, including any
> revisions, does not constitute agreement of «Customer Name» to such
> policy by execution of this Agreement, nor shall it be construed to be
> a waiver of the right of «Customer Name» to seek judicial review of
> any such policy.
>
> \(g\) **Rate Covenant and Payment Assurance** *(03/28/08 Version)*
>
> «Customer Name» agrees that it shall establish, maintain and collect
> rates or charges for power and energy and other services, facilities
> and commodities sold, furnished or supplied by it through any of its
> electric utility properties. BPA may require additional forms of
> payment assurance if: (i) BPA determines that such rates and charges
> may not be adequate to provide revenues sufficient to enable «Customer
> Name» to make the payments required under this Agreement, or (ii) BPA
> identifies in a letter to «Customer Name» that BPA has other
> reasonable grounds to conclude that «Customer Name» may not be able to
> make the payments required under this Agreement. If «Customer Name»
> does not provide payment assurance satisfactory to BPA, BPA may
> terminate this Agreement.
>
> \(i\) **Bond Assurances** *(03/28/08 Version)*
>
> *([Drafter's Note]{.underline}: Include this section ONLY for
> cooperatives.)*
>
> *([Reviewer's Note]{.underline}: This section is based on the Regional
> Dialogues Policy pages 17-18, section II, Service to Public Utilities.
> PNGC will require additional language in either their Assignment
> Agreement or RD contract to ensure that it is under the 2.8%
> threshold. Such language will depend, in part, on PNGC's purchase
> obligation (i.e. Load Following, Block, Slice/Block).)*
>
> BPA has advised «Customer Name» that: (i) the Columbia Generating
> Station has been financed and refinanced in large part by bonds that
> are intended to bear interest that is exempt from Federal income tax
> under Section 103 of the Internal Revenue Code of 1954, as amended,
> and Title XIII of the Tax Reform Act of 1986, and (ii) the tax-exempt
> status of those bonds and other bonds issued together with those bonds
> might be jeopardized if «Customer Name» or any other nongovernmental
> person has a contract to purchase additional amounts of the output of
> the Columbia Generating Station.
>
> Consequently, «Customer Name» shall notify BPA at least 90 days before
> «Customer Name» acquires an Annexed Load, or «Customer Name» is
> acquired, in whole or in part, as an Annexed Load. «Customer Name»
> hereby acknowledges and agrees that BPA shall have the right to reduce
> «Customer Name»'s CHWM in connection with any such Annexed Load to the
> extent the aggregate CHWM, including the Annexed Load, (or the
> aggregate CHWM, including the Annexed Load, of related entities)
> otherwise would result in a nongovernmental customer with a CHWM share
> of the Tier 1 System Resources that exceeds 2.8%.

**23. TERMINATION** *(04/06/08 Version)*

> *[Reviewers Note]{.underline}: Portions of this provision are based on
> proposed language by Slice customers. This provision may be revised
> after additional discussions with all affected customers.*
>
> \(a\) **BPA's Right to Terminate**
>
> BPA may terminate this Agreement if:
>
> \(1\) «Customer Name» fails to make payment as required by
> section 13(d), Billing and Payment, or
>
> \(2\) «Customer Name» fails to provide payment assurance satisfactory
> to BPA as required by section 22(g), Rate Covenant and Payment
> Assurance.
>
> \(b\) **Change of Purchase Obligation**
>
> «Customer Name» and BPA shall terminate this Agreement if «Customer
> Name» changes its purchase obligation under section 8, One-Time Right
> to Change Purchase Obligation.
>
> \(c\) **Customer's Right to Terminate**
>
> «Customer Name» may terminate this Agreement after the occurrence of
> any of the events listed in this section 23(c) by providing to BPA a
> written notice of termination by the dates shown below. The notice
> shall include a date of termination not later than ninety (90) days
> after the date of such notice.
>
> \(1\) **Contract Invalidity**
>
> «Customer Name» may terminate this Agreement not later than sixty
> (60) days after any material term, provision or condition of this
> Agreement, or the performance of any such material term, provision or
> condition is held by a final order of a Federal court having
> jurisdiction to be invalid or unenforceable, or is enjoined.
>
> \(2\) **Tiered Rates Methodology or Rate Disapproval**
>
> «Customer Name» may terminate this Agreement not later than 60 days
> after a Final FERC Order is issued declining to approve the Tiered
> Rates Methodology if such approval is required, or a Final FERC Order
> disapproves rates established consistent with the TRM. For purposes of
> this section 23(c), "Final FERC Order" means a dispositive decision by
> FERC on the merits, and does not include any interim order. A
> dispositive order on the merits is, for purposes of this section,
> final when issued and there is no need to await a FERC order on
> rehearing before the decision is considered final.

*Include in **SLICE/BLOCK** template:*

\(3\) Slice Water Routing Simulator Results Are Not Reasonably Accurate

Not later than December 15, 2010, «Customer Name» may terminate this
Agreement if BPA fails to complete an initial version of the Slice Water
Routing Simulator by November 15, 2010, that is functional and simulates
a reasonable representation of Slice System capability, based upon the
following criteria:

\(A\) Using actual conditions as input parameters, the simulated average
monthly energy production for each Simulator Project is within +/- 2% of
the actual average monthly energy produced at each Simulator Project
during January, May and August of 2010,

\(B\) Using actual conditions as input parameters, the simulated average
hourly peak production for each Simulator Project is within +/- 3% of
the actual average hourly peak produced at each Simulator Project during
the coldest consecutive 3 days of January 2010, and

\(C\) Using actual conditions as input parameters, the average of the
simulated hourly ramp-down amounts at Grand Coulee is within +/- 5% of
the average of ten ramp-down amounts that BPA determines as representing
maximum ramp-down conditions at Grand Coulee between January and October
of 2010.

> \(4\) **No Slice Output Available on a Forecasted Basis**
>
> «Customer Name» may terminate this Agreement not later than 60 days
> after BPA forecasts prior to the first day of any FY that there will
> be no Slice Output available for delivery to «Customer Name» during
> such FY and the immediately following FY, or in the event there is no
> Slice Output available to «Customer Name» during any two consecutive
> FYs.
>
> \(5\) **Transmission Conversion**
>
> «Customer Name» may terminate this Agreement not later than sixty
> (60) days after FERC has issued a final order approving rates, terms
> and conditions, or the Balancing Authority or a regulatory authority
> with jurisdiction over the Balancing Authority, adopts standards,
> rules, practices or procedures that require «Customer Name» to declare
> a Point of Receipt and a energy amount (in megawatts) for each of the
> Slice System resources from which «Customer Name» may receive Slice
> Output under this Agreement.
>
> \(6\) **Alternative Requirements Power Purchase Obligation**
>
> *[Drafter's Note]{.underline}: Insert the product that the Slice/Block
> customer wants to convert to if its contract is terminated*
>
> «Customer Name» selects the *«*Load Following ***or*** Block Without
> Shaping Capacity Purchase Obligation ***or*** Block With Shaping
> Capacity Purchase Obligation*»* as the purchase obligation that it
> will purchase in the event of a termination of this Agreement under
> the events specified in sections 23(c)(3) through 23(c)(5) above. No
> later than June 30, 2009, the Parties shall execute a contingent
> contract for the selected purchase obligation. Such contingent
> contract shall contain the same terms and conditions as this
> Agreement, including any elections or choices made under this
> Agreement,that are applicable to the alternative purchase obligation
> selected by «Customer Name». Such contingent contract shall not become
> effective until the termination of this Agreement.
>
> \(7\) **Waiver of Certain Claims for Damages**
>
> In the event that «Customer Name» terminates this Agreement in
> accordance with this section 23(c), «Customer Name» agrees not to seek
> and hereby waives the right to pursue any claim for damages from BPA
> due to any such termination. This waiver is limited to any claims
> «Customer Name» may have arising from termination under this
> section 23(c). This waiver has no application to, and «Customer Name»
> hereby expressly preserves, any claims for damages arising under any
> other section of this Agreement including, without limitation,
> section [«#»]{.mark}.

*END **SLICE/BLOCK** template.*

**24. SIGNATURES** *(10/01/07 Version)*

> The signatories represent that they are authorized to enter into this
> Agreement on behalf of the Party for which they sign.

+------------------------------------+---------------------------------+
| «FULL NAME OF CUSTOMER»            | UNITED STATES OF AMERICA        |
|                                    |                                 |
|                                    | Department of Energy            |
|                                    |                                 |
|                                    | Bonneville Power Administration |
+------------------------------------+---------------------------------+

  ------- -------------------------- -- ------- ----------------------------
  By                                    By      

                                                

  Name                                  Name    

          *(Print/Type)*                        *(Print/Type)*

  Title                                 Title   

                                                

  Date                                  Date    
  ------- -------------------------- -- ------- ----------------------------

(PS«X/LOC»- «File Name with Path».DOC) «mm/dd/yy» *{[Drafter's
Note]{.underline}: Insert date of finalized contract here}*

**Exhibit A**

**NET REQUIREMENTS** *(04/05/08 Version)*

*[Reviewer's Note]{.underline}: The shaded language below is the same as
the Load Following language.*

**1.** **ESTABLISHING NET REQUIREMENTS**

> «Customer Name»'s Net Requirement equals its Total Retail Load minus
> «Customer Name»'s non-federal resource amounts, including
> consumer-owned resource amounts listed in sections 5 and 6 of this
> exhibit. «Customer Name» shall not add resource amounts to reduce its
> purchase obligations from BPA under section 3 of the body of this
> Agreement except to meet load obligations in section 4 of this
> exhibit.
>
> BPA shall annually calculate a forecast of «Customer Name»'s Net
> Requirement for the upcoming Fiscal Year as follows:
>
> \(a\) **Forecast of Total Retail Load**
>
> By September 30, 2011, and by each September 30 thereafter, BPA shall
> fill in the table below with «Customer Name»'s Total Retail Load
> forecast (submitted pursuant to section 14(b)(5) of the body of this
> Agreement) for the upcoming Fiscal Year. BPA shall notify «Customer
> Name» before the start of the Fiscal Year if BPA determines «Customer
> Name»'s submitted forecast is reasonable or not reasonable. If BPA
> determines «Customer Name»'s submitted forecast is not reasonable, BPA
> shall fill in the table below with a forecast BPA determines to be
> reasonable.

  --------------- ------- ------- ------- ------- ------- ------- ------- ------- -------
  **Table 1:                                                                      
  Annual Forecast                                                                 
  of Total Retail                                                                 
  Load -- Energy                                                                  
  (aMW)**                                                                         

  **Fiscal Year** 2012    2013    2014    2015    2016    2017    2018    2019    2020

  **Annual aMW**  ** **   ** **   ** **   ** **   ** **   ** **   ** **   ** **   ** **

  **Fiscal Year** 2021    2022    2023    2024    2025    2026    2027    2028    

  **Annual aMW**  ** **   ** **   ** **   ** **   ** **   ** **   ** **   ** **   

  Note: Fill in                                                                   
  the table above                                                                 
  with annual                                                                     
  average                                                                         
  megawatts                                                                       
  rounded to                                                                      
  three decimal                                                                   
  places.                                                                         
  --------------- ------- ------- ------- ------- ------- ------- ------- ------- -------

> \(b\) **Forecast of Net Requirements**
>
> By September 30, 2011, and by each September 30 thereafter, BPA shall
> calculate, and fill in the table below with, «Customer Name»'s Net
> Requirement forecast for the upcoming Fiscal Year. «Customer Name»'s
> Net Requirement forecast equals «Customer Name»'s Total Retail Load
> forecast, shown in section 1(a) above, minus «Customer Name»'s total
> non-federal resource amounts dedicated to its Total Retail Load, shown
> in section 7 below.
>
> Consistent with section 3 of the body of this Agreement, «Customer
> Name» shall dedicate additional resource energy amounts to serve any
> «Customer Name» energy needs above «Customer Name»'s RHWM and any
> Tier 2 PF rate amounts listed in section 3(d) of Exhibit C, Purchase
> Obligations. «Customer Name» shall also serve any «Customer Name» peak
> load above the sum of «Customer Name»'s monthly purchase amounts at
> Tier 1 rates in section 2(c) of Exhibit C, Purchase Obligations, and
> any purchase amounts at Tier 2 rates in section 3(d) of Exhibit C,
> Purchase Obligations, with additional resource peak amounts.

  --------------- ------- ------- ------- ------- ------- ------- ------- ------- -------
  **Table 2:                                                                      
  Annual Forecast                                                                 
  of Net                                                                          
  Requirements --                                                                 
  Energy (aMW)**                                                                  

  **Fiscal Year** 2012    2013    2014    2015    2016    2017    2018    2019    2020

  **Annual aMW**  ** **   ** **   ** **   ** **   ** **   ** **   ** **   ** **   ** **

  **Fiscal Year** 2021    2022    2023    2024    2025    2026    2027    2028    

  **Annual aMW**  ** **   ** **   ** **   ** **   ** **   ** **   ** **   ** **   

  Note: Fill in                                                                   
  the table above                                                                 
  with annual                                                                     
  average                                                                         
  megawatts                                                                       
  rounded to                                                                      
  three decimal                                                                   
  places.                                                                         
  --------------- ------- ------- ------- ------- ------- ------- ------- ------- -------

*Include in **SLICE/BLOCK** template:*

\(c\) **Forecast of Peak Net Requirement**

> BPA and «Customer Name» acknowledge the statutory Net Requirements
> limit for both capacity and energy, section 5(b)(1) of the Northwest
> Power Act, P.L. 96-501. Because BPA has had an energy limited system,
> rather than a capacity limited system during the current subscription
> contracts, BPA has not presently established a formal methodology for
> assessing peak Net Requirements for this Regional Dialog contract, as
> has been established for energy Net Requirements.
>
> BPA and «Customer Name» agree that at any time and upon BPA\'s review
> of its capacity standard and an evaluation of its capacity needs, BPA
> may impose a peak monthly demand limitation consistent with statute,
> on the amount of capacity that customer has a right to take under the
> Slice product. BPA\'s review and evaluation will be conducted in a
> public process that is noticed to all regional power customers.
>
> If BPA were to establish a formal peak Net Requirements methodology
> for application under this contract, it is BPA\'s intent to do so
> prior to May 31, 2017, to allow «Customer Name» knowledge of this
> prior to the need to exercise its one-time product switching option.

*END **SLICE/BLOCK** template.*

**2. REVISIONS**

> BPA shall make adjustments to this exhibit to reflect (i) BPA's
> determinations under this Agreement and BPA's Policy on Determining
> Net Requirements of Pacific Northwest Utility Customers Under Sections
> 5(b)(1) and 9(c) of the Northwest Power Act issued May 23, 2000, as
> clarified March 21, 2003 (5(b)/9(c) Policy), and (ii) «Customer
> Name»'s elections regarding the application and use of all resources
> listed by «Customer Name» to serve its Total Retail Load, as provided
> under this Agreement.

**3.** **RESOURCES DEDICATED TO TOTAL RETAIL LOAD**

> *[Reviewer's Note]{.underline}: The shaded language below is the same
> as the Load Following language.*
>
> The non-federal resources described below are dedicated to serving
> «Customer Name»'s firm load pursuant to section 5(b) of the Northwest
> Power Act. Upon termination or expiration of this Agreement, «Customer
> Name» may discontinue serving its Total Retail Load with any
> Unspecified Resource Amounts.
>
> \(a\) **Specified Resources**
>
> «Customer Name» shall apply the output from all Specified Resources
> listed below in section 5 to serve its Total Retail Load. BPA shall
> use the amounts listed in section 5 to determine «Customer Name»'s Net
> Requirement under this Agreement; the amounts listed are not intended
> to interfere with «Customer Name»'s decisions on how to operate its
> Specified Resources.
>
> \(b\) **Unspecified Resource Amounts**
>
> In addition to the resource amounts listed in section 5 below,
> «Customer Name» shall serve its Total Retail Load with Unspecified
> Resource Amounts to meet any obligations «Customer Name» made in
> Exhibit C, Purchase Obligations, to serve its above-RHWM energy load
> with non-federal resource amounts. By September 30, 2011, and by each
> September 30 thereafter, BPA shall calculate, and fill in the table
> below in section 6(a) with, «Customer Name»'s Unspecified Resource
> Amounts for the upcoming Fiscal Year.

**4. CHANGES TO RESOURCE AMOUNTS**

> \(a\) **Resource Additions for a BPA Insufficiency Notice**
>
> If BPA provides «Customer Name» a notice of insufficiency in
> accordance with section 21(b), Insufficiency and Allocations, of the
> body of this Agreement, «Customer Name» shall add Specified Resources
> or Unspecified Resource Amounts to sections 5 or 6 below to replace
> amounts of Firm Requirements Power BPA will not be providing due to
> insufficiency.
>
> \(b\) **Decrements for 9(c) Export**
>
> If BPA determines (in accordance with section 21(f), Use of Regional
> Resources, of the body of this Agreement) that an export of a
> Specified Resource listed in section 5 below requires a reduction in
> the amount of Firm Requirements Power BPA sells «Customer Name», BPA
> shall add Unspecified Resource Amounts to section 6(b) below. BPA
> shall notify «Customer Name» of the amount and duration of the
> reduction in «Customer Name»'s Firm Requirements Power purchases from
> BPA.
>
> \(c\) **Temporary Resource Removal**
>
> BPA shall remove «Customer Name»'s non-federal resource amounts in
> sections 5 and 6 below pursuant to section 6, Removal Order of Tier 2
> and Non-Federal Resources, of the body of this Agreement. BPA shall
> remove «Customer Name»'s non-federal resource amounts within a Fiscal
> Year consistent with «Customer Name»'s written notice provided to BPA
> containing such reduction amounts, submitted pursuant to section 6(g)
> of the body of this Agreement.
>
> \(d\) **Permanent Discontinuance of Resources**
>
> The Specified Resources listed below in section 5 may be removed
> permanently by «Customer Name» consistent with BPA's 5(b)/9(c) Policy
> on statutory discontinuance for permanent removal. If BPA makes a
> determination that «Customer Name»'s resource has met BPA's standards
> for a permanent removal, BPA shall revise this exhibit to show the
> resource changes. «Customer Name»'s additional power purchases under
> this Agreement, as a result of such a resource removal, may be subject
> to additional rates or charges as established in the GRSPs.
>
> \(e\) **Changes to Consumer-Owned Resources**
>
> «Customer Name» shall not remove any consumer-owned resources
> dedicated to serve «Customer Name»'s Total Retail Load during the term
> of this Agreement except as allowed in section 4(d) above.
>
> \(f\) **Resource Additions for Annexed Loads**
>
> To serve amounts of Annexed Loads that are added after this Agreement
> is executed, «Customer Name» shall add Specified Resources or
> Unspecified Resource Amounts to section 5 or 6 below pursuant to
> «Customer Name»'s elections to purchase Firm Requirements Power from
> BPA, as stated in Exhibit C, Purchase Obligations, including any
> annexed Specified Resources. «Customer Name»'s additional power
> purchases under this Agreement, as a result of such Annexed Loads, may
> be subject to additional rates or charges as established in the GRSPs.
>
> \(g\) **Resource Additions for NLSLs**
>
> To serve NLSLs (established in Exhibit D, Additional Products and
> Special Provisions) that are added after this Agreement is executed,
> «Customer Name» may add Specified Resources or Unspecified Resource
> Amounts to sections 5 or 6 below.

**5. SPECIFIED RESOURCES DEDICATED TO TOTAL RETAIL LOAD**

> «Customer Name» shall list below all Specified Resources that are
> greater than 200 kilowatts of nameplate capability, or are being used
> to serve «Customer Name»'s above-RHWM load. For each Specified
> Resource listed below «Customer Name» shall list dedicated resource
> amounts for each month beginning with the later of (i) the date the
> resource was dedicated to load, or (ii) October 1, 2011, through to
> the earlier of (i) the date of resource removal or (ii) September 30,
> 2028. «Customer Name» shall provide BPA with all resource profile data
> BPA determines is necessary to implement this Agreement and any
> additional resource data BPA determines is necessary to verify the
> dedicated resource amounts listed below.
>
> *[Drafter's Note]{.underline}: List each Specified Resource, in the
> applicable subsection, using the format shown below in section
> 5(a)(1).*
>
> \(a\) **Generating Resources**
>
> All of «Customer Name»'s Generating Resources dedicated to serve its
> Total Retail Load shall be listed below.
>
> \(1\) **«Resource Name»**
>
> *[Drafter's Note:]{.underline} If «Customer Name» has Generating
> Resources fill in the tables below (one set of tables for each
> Generating Resource). If «Customer Name» does not have any Generating
> Resources, keep this provision and the tables below (leaving the
> tables blank) and write "No Generating Resources at this time" above
> as the title of section 5(a)(1).*
>
> \(A\) **Resource Profile**

  ------------------- --------- ------------- ----------- ----------- -------------
  **Resource Name**   **Fuel    **Date        **Date of   **Percent   **Nameplate
                      Type**    Resource      Resource    Dedicated   Capability
                                Dedicated to  Removal**   to Load**   (MW)**
                                Load**                                

  ** **               ** **     ** **         ** **       ** **       ** **
  ------------------- --------- ------------- ----------- ----------- -------------

  ----------- ---------- ------------- ------ ------------ ----- ------------------- ------ ----------- ---- ------------ ----
  **Owned                **Statutory          **Diurnal          **Dispatchable?**          **PNCA?**        **If PNCA,   
  By**                   Status**             Flattening                                                     PNCA         
                                              Service?**                                                     Updates?**   

  «Customer   Consumer   5b1A          5b1B   Yes          No    Yes                 No     Yes         No   Yes          No
  Name»                                                                                                                   

                                                                                                                           

  Note: Fill                                                                                                              
  in the                                                                                                                  
  table above                                                                                                             
  with "X"s.                                                                                                              
  ----------- ---------- ------------- ------ ------------ ----- ------------------- ------ ----------- ---- ------------ ----

> \(B\) **Dedicated Resource Amounts**

  ---------------- --------- --------- --------- --------- --------- --------- --------- --------- --------- --------- --------- --------- ----------
  **Total Energy                                                                                                                           
  Amounts (MWh)**                                                                                                                          

  **Fiscal Year**  **Oct**   **Nov**   **Dec**   **Jan**   **Feb**   **Mar**   **Apr**   **May**   **Jun**   **Jul**   **Aug**   **Sep**   **Annual
                                                                                                                                           aMW**

  2012                                                                                                                                      

  2013                                                                                                                                      

  2014                                                                                                                                      

  2015                                                                                                                                      

  2016                                                                                                                                      

  2017                                                                                                                                      

  2018                                                                                                                                      

  2019                                                                                                                                      

  2020                                                                                                                                      

  2021                                                                                                                                      

  2022                                                                                                                                      

  2023                                                                                                                                      

  2024                                                                                                                                      

  2025                                                                                                                                      

  2026                                                                                                                                      

  2027                                                                                                                                      

  2028                                                                                                                                      

  Note: Fill in                                                                                                                            
  the table above                                                                                                                          
  with                                                                                                                                     
  megawatt-hours                                                                                                                           
  rounded to whole                                                                                                                         
  megawatt-hours                                                                                                                           
  and with average                                                                                                                         
  megawatts                                                                                                                                
  rounded to three                                                                                                                         
  decimal places.                                                                                                                          
  ---------------- --------- --------- --------- --------- --------- --------- --------- --------- --------- --------- --------- --------- ----------

  ---------------------------------------------------------------------------------------------------------------------------------------------------
  **HLH Energy                                                                                                                             
  Amounts (MWh)**                                                                                                                          
  ---------------- --------- --------- --------- --------- --------- --------- --------- --------- --------- --------- --------- --------- ----------
  **Fiscal Year**  **Oct**   **Nov**   **Dec**   **Jan**   **Feb**   **Mar**   **Apr**   **May**   **Jun**   **Jul**   **Aug**   **Sep**   **Annual
                                                                                                                                           aMW**

  2012                                                                                                                                      

  2013                                                                                                                                      

  2014                                                                                                                                      

  2015                                                                                                                                      

  2016                                                                                                                                      

  2017                                                                                                                                      

  2018                                                                                                                                      

  2019                                                                                                                                      

  2020                                                                                                                                      

  2021                                                                                                                                      

  2022                                                                                                                                      

  2023                                                                                                                                      

  2024                                                                                                                                      

  2025                                                                                                                                      

  2026                                                                                                                                      

  2027                                                                                                                                      

  2028                                                                                                                                      

  Note: Fill in                                                                                                                            
  the table above                                                                                                                          
  with                                                                                                                                     
  megawatt-hours                                                                                                                           
  rounded to whole                                                                                                                         
  megawatt-hours                                                                                                                           
  and with average                                                                                                                         
  megawatts                                                                                                                                
  rounded to three                                                                                                                         
  decimal places.                                                                                                                          
  ---------------------------------------------------------------------------------------------------------------------------------------------------

  ---------------- --------- --------- --------- --------- --------- --------- --------- --------- --------- --------- --------- --------- ----------
  **LLH Energy                                                                                                                             
  Amounts (MWh)**                                                                                                                          

  **Fiscal Year**  **Oct**   **Nov**   **Dec**   **Jan**   **Feb**   **Mar**   **Apr**   **May**   **Jun**   **Jul**   **Aug**   **Sep**   **Annual
                                                                                                                                           aMW**

  2012                                                                                                                                      

  2013                                                                                                                                      

  2014                                                                                                                                      

  2015                                                                                                                                      

  2016                                                                                                                                      

  2017                                                                                                                                      

  2018                                                                                                                                      

  2019                                                                                                                                      

  2020                                                                                                                                      

  2021                                                                                                                                      

  2022                                                                                                                                      

  2023                                                                                                                                      

  2024                                                                                                                                      

  2025                                                                                                                                      

  2026                                                                                                                                      

  2027                                                                                                                                      

  2028                                                                                                                                      

  Note: Fill in                                                                                                                            
  the table above                                                                                                                          
  with                                                                                                                                     
  megawatt-hours                                                                                                                           
  rounded to whole                                                                                                                         
  megawatt-hours                                                                                                                           
  and with average                                                                                                                         
  megawatts                                                                                                                                
  rounded to three                                                                                                                         
  decimal places.                                                                                                                          
  ---------------- --------- --------- --------- --------- --------- --------- --------- --------- --------- --------- --------- --------- ----------

  -----------------------------------------------------------------------------------------------------------------------------------
  **Peak                                                                                                                    
  Amounts                                                                                                                   
  (MW)**                                                                                                                    
  ----------- --------- --------- --------- --------- --------- --------- --------- --------- --------- --------- --------- ---------
  **Fiscal    **Oct**   **Nov**   **Dec**   **Jan**   **Feb**   **Mar**   **Apr**   **May**   **Jun**   **Jul**   **Aug**   **Sep**
  Year**                                                                                                                    

  2012                                                                                                                       

  2013                                                                                                                       

  2014                                                                                                                       

  2015                                                                                                                       

  2016                                                                                                                       

  2017                                                                                                                       

  2018                                                                                                                       

  2019                                                                                                                       

  2020                                                                                                                       

  2021                                                                                                                       

  2022                                                                                                                       

  2023                                                                                                                       

  2024                                                                                                                       

  2025                                                                                                                       

  2026                                                                                                                       

  2027                                                                                                                       

  2028                                                                                                                       

  Note: Fill                                                                                                                
  in the                                                                                                                    
  table above                                                                                                               
  with                                                                                                                      
  megawatts                                                                                                                 
  rounded to                                                                                                                
  three                                                                                                                     
  decimal                                                                                                                   
  places.                                                                                                                   
  -----------------------------------------------------------------------------------------------------------------------------------

> \(C\) **Special Provisions**
>
> *[Drafter's Note]{.underline}: Include any special provisions here
> that are applicable to this resource. If none, retain this section and
> state "None".*

\(b\) **Contract Resources**

> All of «Customer Name»'s Contract Resources dedicated to serve its
> Total Retail Load shall be listed in tables below in the format shown
> in section 5(a)(1) above.
>
> *[Drafter's Note:]{.underline} If «Customer Name» has Contract
> Resources insert tables here. If «Customer Name» does not have any
> Contract Resources, write "No Contract Resources at this time" here.*

**6. UNSPECIFIED RESOURCE AMOUNTS DEDICATED TO TOTAL RETAIL LOAD**

> \(a\) **Unspecified Resource Amounts**
>
> «Customer Name»'s Unspecified Resource Amounts dedicated to serve its
> Total Retail Load shall be listed below.

  ---------------- --------- --------- --------- --------- --------- --------- --------- --------- --------- --------- --------- --------- ----------
  **Total                                                                                                                                  
  Unspecified                                                                                                                              
  Resource Amounts                                                                                                                         
  (MWh)**                                                                                                                                  

  **Fiscal Year**  **Oct**   **Nov**   **Dec**   **Jan**   **Feb**   **Mar**   **Apr**   **May**   **Jun**   **Jul**   **Aug**   **Sep**   **Annual
                                                                                                                                           aMW**

  2012                                                                                                                                      

  2013                                                                                                                                      

  2014                                                                                                                                      

  2015                                                                                                                                      

  2016                                                                                                                                      

  2017                                                                                                                                      

  2018                                                                                                                                      

  2019                                                                                                                                      

  2020                                                                                                                                      

  2021                                                                                                                                      

  2022                                                                                                                                      

  2023                                                                                                                                      

  2024                                                                                                                                      

  2025                                                                                                                                      

  2026                                                                                                                                      

  2027                                                                                                                                      

  2028                                                                                                                                      

  Note: Fill in                                                                                                                            
  the table above                                                                                                                          
  with                                                                                                                                     
  megawatt-hours                                                                                                                           
  rounded to whole                                                                                                                         
  megawatt-hours                                                                                                                           
  and with average                                                                                                                         
  megawatts                                                                                                                                
  rounded to three                                                                                                                         
  decimal places.                                                                                                                          
  ---------------- --------- --------- --------- --------- --------- --------- --------- --------- --------- --------- --------- --------- ----------

  ---------------------------------------------------------------------------------------------------------------------------------------------------
  **HLH                                                                                                                                    
  Unspecified                                                                                                                              
  Resource Amounts                                                                                                                         
  (MWh)**                                                                                                                                  
  ---------------- --------- --------- --------- --------- --------- --------- --------- --------- --------- --------- --------- --------- ----------
  **Fiscal Year**  **Oct**   **Nov**   **Dec**   **Jan**   **Feb**   **Mar**   **Apr**   **May**   **Jun**   **Jul**   **Aug**   **Sep**   **Annual
                                                                                                                                           aMW**

  2012                                                                                                                                      

  2013                                                                                                                                      

  2014                                                                                                                                      

  2015                                                                                                                                      

  2016                                                                                                                                      

  2017                                                                                                                                      

  2018                                                                                                                                      

  2019                                                                                                                                      

  2020                                                                                                                                      

  2021                                                                                                                                      

  2022                                                                                                                                      

  2023                                                                                                                                      

  2024                                                                                                                                      

  2025                                                                                                                                      

  2026                                                                                                                                      

  2027                                                                                                                                      

  2028                                                                                                                                      

  Note: Fill in                                                                                                                            
  the table above                                                                                                                          
  with                                                                                                                                     
  megawatt-hours                                                                                                                           
  rounded to whole                                                                                                                         
  megawatt-hours                                                                                                                           
  and with average                                                                                                                         
  megawatts                                                                                                                                
  rounded to three                                                                                                                         
  decimal places.                                                                                                                          
  ---------------------------------------------------------------------------------------------------------------------------------------------------

  ---------------- --------- --------- --------- --------- --------- --------- --------- --------- --------- --------- --------- --------- ----------
  **LLH                                                                                                                                    
  Unspecified                                                                                                                              
  Resource Amounts                                                                                                                         
  (MWh)**                                                                                                                                  

  **Fiscal Year**  **Oct**   **Nov**   **Dec**   **Jan**   **Feb**   **Mar**   **Apr**   **May**   **Jun**   **Jul**   **Aug**   **Sep**   **Annual
                                                                                                                                           aMW**

  2012                                                                                                                                      

  2013                                                                                                                                      

  2014                                                                                                                                      

  2015                                                                                                                                      

  2016                                                                                                                                      

  2017                                                                                                                                      

  2018                                                                                                                                      

  2019                                                                                                                                      

  2020                                                                                                                                      

  2021                                                                                                                                      

  2022                                                                                                                                      

  2023                                                                                                                                      

  2024                                                                                                                                      

  2025                                                                                                                                      

  2026                                                                                                                                      

  2027                                                                                                                                      

  2028                                                                                                                                      

  Note: Fill in                                                                                                                            
  the table above                                                                                                                          
  with                                                                                                                                     
  megawatt-hours                                                                                                                           
  rounded to whole                                                                                                                         
  megawatt-hours                                                                                                                           
  and with average                                                                                                                         
  megawatts                                                                                                                                
  rounded to three                                                                                                                         
  decimal places.                                                                                                                          
  ---------------- --------- --------- --------- --------- --------- --------- --------- --------- --------- --------- --------- --------- ----------

> \(b\) **Unspecified Resource Amounts for 9(c) Export Decrements**
>
> Pursuant to section 4(b) above, BPA shall insert a table below for any
> decrements due to export of resources in the shape, duration, and
> amount of the export.

**7. TOTAL RESOURCE AMOUNTS DEDICATED TO TOTAL RETAIL LOAD**

> The following amounts equal the sum of all resource amounts dedicated
> to «Customer Name»'s Total Retail Load listed above in sections 5 and
> 6.

  ---------------- --------- --------- --------- --------- --------- --------- --------- --------- --------- --------- --------- --------- ----------
  **Total Energy                                                                                                                           
  Amounts (MWh)**                                                                                                                          

  **Fiscal Year**  **Oct**   **Nov**   **Dec**   **Jan**   **Feb**   **Mar**   **Apr**   **May**   **Jun**   **Jul**   **Aug**   **Sep**   **Annual
                                                                                                                                           aMW**

  2012                                                                                                                                      

  2013                                                                                                                                      

  2014                                                                                                                                      

  2015                                                                                                                                      

  2016                                                                                                                                      

  2017                                                                                                                                      

  2018                                                                                                                                      

  2019                                                                                                                                      

  2020                                                                                                                                      

  2021                                                                                                                                      

  2022                                                                                                                                      

  2023                                                                                                                                      

  2024                                                                                                                                      

  2025                                                                                                                                      

  2026                                                                                                                                      

  2027                                                                                                                                      

  2028                                                                                                                                      

  Note: Fill in                                                                                                                            
  the table above                                                                                                                          
  with                                                                                                                                     
  megawatt-hours                                                                                                                           
  rounded to whole                                                                                                                         
  megawatt-hours                                                                                                                           
  and with average                                                                                                                         
  megawatts                                                                                                                                
  rounded to three                                                                                                                         
  decimal places.                                                                                                                          
  ---------------- --------- --------- --------- --------- --------- --------- --------- --------- --------- --------- --------- --------- ----------

  ---------------------------------------------------------------------------------------------------------------------------------------------------
  **HLH Energy                                                                                                                             
  Amounts (MWh)**                                                                                                                          
  ---------------- --------- --------- --------- --------- --------- --------- --------- --------- --------- --------- --------- --------- ----------
  **Fiscal Year**  **Oct**   **Nov**   **Dec**   **Jan**   **Feb**   **Mar**   **Apr**   **May**   **Jun**   **Jul**   **Aug**   **Sep**   **Annual
                                                                                                                                           aMW**

  2012                                                                                                                                      

  2013                                                                                                                                      

  2014                                                                                                                                      

  2015                                                                                                                                      

  2016                                                                                                                                      

  2017                                                                                                                                      

  2018                                                                                                                                      

  2019                                                                                                                                      

  2020                                                                                                                                      

  2021                                                                                                                                      

  2022                                                                                                                                      

  2023                                                                                                                                      

  2024                                                                                                                                      

  2025                                                                                                                                      

  2026                                                                                                                                      

  2027                                                                                                                                      

  2028                                                                                                                                      

  Note: Fill in                                                                                                                            
  the table above                                                                                                                          
  with                                                                                                                                     
  megawatt-hours                                                                                                                           
  rounded to whole                                                                                                                         
  megawatt-hours                                                                                                                           
  and with average                                                                                                                         
  megawatts                                                                                                                                
  rounded to three                                                                                                                         
  decimal places.                                                                                                                          
  ---------------------------------------------------------------------------------------------------------------------------------------------------

  ---------------- --------- --------- --------- --------- --------- --------- --------- --------- --------- --------- --------- --------- ----------
  **LLH Energy                                                                                                                             
  Amounts (MWh)**                                                                                                                          

  **Fiscal Year**  **Oct**   **Nov**   **Dec**   **Jan**   **Feb**   **Mar**   **Apr**   **May**   **Jun**   **Jul**   **Aug**   **Sep**   **Annual
                                                                                                                                           aMW**

  2012                                                                                                                                      

  2013                                                                                                                                      

  2014                                                                                                                                      

  2015                                                                                                                                      

  2016                                                                                                                                      

  2017                                                                                                                                      

  2018                                                                                                                                      

  2019                                                                                                                                      

  2020                                                                                                                                      

  2021                                                                                                                                      

  2022                                                                                                                                      

  2023                                                                                                                                      

  2024                                                                                                                                      

  2025                                                                                                                                      

  2026                                                                                                                                      

  2027                                                                                                                                      

  2028                                                                                                                                      

  Note: Fill in                                                                                                                            
  the table above                                                                                                                          
  with                                                                                                                                     
  megawatt-hours                                                                                                                           
  rounded to whole                                                                                                                         
  megawatt-hours                                                                                                                           
  and with average                                                                                                                         
  megawatts                                                                                                                                
  rounded to three                                                                                                                         
  decimal places.                                                                                                                          
  ---------------- --------- --------- --------- --------- --------- --------- --------- --------- --------- --------- --------- --------- ----------

  -----------------------------------------------------------------------------------------------------------------------------------
  **Total                                                                                                                   
  Peak                                                                                                                      
  Amounts                                                                                                                   
  (MW)**                                                                                                                    
  ----------- --------- --------- --------- --------- --------- --------- --------- --------- --------- --------- --------- ---------
  **Fiscal    **Oct**   **Nov**   **Dec**   **Jan**   **Feb**   **Mar**   **Apr**   **May**   **Jun**   **Jul**   **Aug**   **Sep**
  Year**                                                                                                                    

  2012                                                                                                                       

  2013                                                                                                                       

  2014                                                                                                                       

  2015                                                                                                                       

  2016                                                                                                                       

  2017                                                                                                                       

  2018                                                                                                                       

  2019                                                                                                                       

  2020                                                                                                                       

  2021                                                                                                                       

  2022                                                                                                                       

  2023                                                                                                                       

  2024                                                                                                                       

  2025                                                                                                                       

  2026                                                                                                                       

  2027                                                                                                                       

  2028                                                                                                                       

  Note: Fill                                                                                                                
  in the                                                                                                                    
  table above                                                                                                               
  with                                                                                                                      
  megawatts                                                                                                                 
  rounded to                                                                                                                
  three                                                                                                                     
  decimal                                                                                                                   
  places.                                                                                                                   
  -----------------------------------------------------------------------------------------------------------------------------------

*[Reviewer's Note]{.underline}: BPA needs the following information for
WECC reporting standards and for Canadian treaty obligations.*

**8. LIST OF RESOURCES NOT DEDICATED TO TOTAL RETAIL LOAD**

> «Customer Name» shall list below, in the format provided, (i) any
> non-federal resources «Customer Name» owns that are not dedicated to
> serve «Customer Name»'s Total Retail Load, and (ii) any consumer-owned
> resources in «Customer Name»'s service territory that are not
> dedicated to serve «Customer Name»'s Total Retail Load; that are
> greater than 200 kilowatts of nameplate capability. «Customer Name»
> shall provide BPA with all resource profile data BPA determines is
> necessary and any additional resource data BPA determines is necessary
> to verify the information listed below.

\(a\) **«Resource Name»**

> *[Drafter's Note:]{.underline} If «Customer Name» does not have any
> resources not dedicated to its load, keep this provision and the
> tables below (leaving the tables blank) and write "No resources at
> this time" above as the title for section8(a).*
>
> \(1\) **Resource Profile**

  ------------------- ----------- ----------------- -------------- -------------
  **Resource Name**   **Fuel      **Owned by**                     **Nameplate
                      Type**                                       Capability
                                                                   (MW)**

                                  **«Customer       **Consumer**   
                                  Name»**                          

  ** **               ** **                                        ** **
  ------------------- ----------- ----------------- -------------- -------------

> \(2\) **Expected Resource Output**

  --------------- ------- ------- ------- ------- ------- ------- ------- ------- -------
  **Expected                                                                      
  Output --                                                                       
  Energy (aMW)**                                                                  

  **Fiscal Year** 2012    2013    2014    2015    2016    2017    2018    2019    2020

  **Annual aMW**  ** **   ** **   ** **   ** **   ** **   ** **   ** **   ** **   ** **

  **Fiscal Year** 2021    2022    2023    2024    2025    2026    2027    2028    

  **Annual aMW**  ** **   ** **   ** **   ** **   ** **   ** **   ** **   ** **   

  Note: Fill in                                                                   
  the table above                                                                 
  with annual                                                                     
  average                                                                         
  megawatts                                                                       
  rounded to                                                                      
  three decimal                                                                   
  places.                                                                         
  --------------- ------- ------- ------- ------- ------- ------- ------- ------- -------

**Exhibit B**

**HIGH WATER MARKS AND CONTRACT DEMAND QUANTITIES**

**1. CONTRACT HIGH WATER MARK (CHWM)** *(04/06/08 Version)*

> \(a\) **CHWM Amount**
>
> By September 30, 2011, BPA shall update the table below with «Customer
> Name»'s CHWM. Once established, «Customer Name»'s CHWM shall not
> change for the term of this Agreement except as allowed in
> section 1(b) below.

  ------------------------------------- ---------------------------------
  **CHWM (annual aMW):**                 

  Note: Round the number in the table   
  above to three decimal places.        
  ------------------------------------- ---------------------------------

> \(b\) **Changes to CHWM**
>
> If a change is made to «Customer Name»'s CHWM pursuant to this
> section, BPA will determine and notify «Customer Name» the date such
> change will be effective.
>
> \(1\) If a load included in «Customer Name»'s Measured 2010 Load, as
> defined in the TRM, is later found to be an NLSL, BPA shall reduce
> «Customer Name»'s CHWM by the amount of the NLSL.
>
> \(2\) If «Customer Name» acquires an Annexed Load from a utility that
> has a CHWM, BPA shall increase «Customer Name»'s CHWM by adding part
> of the other utility's CHWM to «Customer Name»'s CHWM. The amount of
> the CHWM addition will be proportionate to the percentage of the other
> utility's load that «Customer Name» has annexed. *\[[Drafter's
> Note]{.underline}: Include the following sentence for any
> cooperative:*Any change to «Customer Name»'s CHWM related to the
> acquisition of an Annexed Load is subject to section 19(i) of the body
> of this Agreement.*\]*
>
> \(3\) If another utility with a CHWM annexes load of «Customer Name»,
> BPA shall reduce «Customer Name»'s CHWM by adding part of «Customer
> Name»'s CHWM to the other utility's CHWM. The amount of the CHWM
> reduction will be proportionate to the percentage of «Customer Name»'s
> load that the other utility has annexed.
>
> []{.mark}
>
> \(4\) BPA may change «Customer Name»'s CHWM if BPA's Administrator
> determines that BPA is effectively required by court order to make
> such changes. BPA shall determine the effective date of such a change
> and shall update this exhibit with the changed CHWM.
>
> *[Drafter's Note]{.underline}: Include in DOE Richland's contract:*
>
> \(5\) BPA shall increase «Customer Name»'s CHWM if «Customer Name»'s
> electricity consumption increases due to the addition of new loads to
> process and dispose of defense materials that are onsite at the DOE
> facilities that «Customer Name» serves in the state of Washington.
> «Customer Name» shall notify BPA at least three years prior to when
> such loads are expected to be added so that BPA can include such
> information in its rates. BPA shall revise this exhibit to increase
> «Customer Name»'s CHWM so that the increase is effective once
> construction of the facilities that make up the eligible loads is
> complete. In no circumstances shall «Customer Name»'s CHWM exceed
> 92 aMW.
>
> *[Drafter's Note]{.underline}: End (5) for DOE Richland.*
>
> []{.mark}
>
> *[Drafter's Note]{.underline}: Include in contracts of qualifying
> tribal utilities (e.g. Yakama):*
>
> \(5\) **Other Changes to CHWM**
>
> \(A\) If «Customer Name» acquires an Annexed Load from a utility that
> has a CHWM, then section 1(b)(2) above applies.
>
> \(B\) If «Customer Name», before October 1, 2022, acquires an Annexed
> Load from a utility that does not have a CHWM or if «Customer Name»'s
> load grows, BPA shall increase «Customer Name»'s CHWM by the amount of
> Annexed Load from a utility without a CHWM and/or by the amount of
> load growth; provided however, BPA shall not increase «Customer
> Name»'s CHWM if in total the 40 aMW identified in the TRM for all New
> Tribal Utilities, as defined in the TRM, has been reached.
>
> \(C\) For any rate period where the total amount of such CHWM
> additions granted to all New Tribal Utilities would exceed 40 aMW, or
> the augmentation for New Publics, as defined in the TRM, would exceed
> 250 aMW, BPA shall adjust «Customer Name»'s CHWM additions pro rata,
> based on the amount that each New Tribal Utility's CHWM would have
> been increased absent the 40 aMW limitation, so that the total is
> equal to 40 aMW.
>
> \(D\) After the 40 aMW limit has been reached, this section 1(b)(5)
> shall not apply.
>
> \(E\) Even while this section 1(b)(5) is in effect, «Customer Name»
> shall elect whether it will serve its above- RHWM load with Firm
> Requirements Power purchased at Tier 2 PF rates or with its
> non-federal resources, as provided in section 5(a)(3) of the body of
> this Agreement, Exhibit A, Net Requirements, and Exhibit C, Purchase
> Obligations.

*[Drafter's Note]{.underline}: End (5) for tribal utilities.*

**2. RATE PERIOD HIGH WATER MARK (RHWM)** *(03/30/08 Version)*

> BPA shall establish «Customer Name»'s RHWM for each rate period in a
> public process as established in the TRM.

**3. CONTRACT DEMAND QUANTITIES (CDQs)** *(04/06/08 Version)*

> \(a\) **CDQ Amounts**
>
> By September 30, 2011, BPA shall update the table below with «Customer
> Name»'s monthly CDQs. Applicability of such CDQs is established in the
> TRM. Once established, «Customer Name»'s monthly CDQs shall not change
> for the term of this Agreement except as allowed below.
>
> *[Drafter's Note]{.underline}: Leave table blank at contract signing*.

  -------------- --------- --------- --------- --------- --------- --------- --------- --------- --------- --------- --------- ---------
  **Monthly                                                                                                                    
  Contract                                                                                                                     
  Demand                                                                                                                       
  Quantities**                                                                                                                 

  ** **          **Oct**   **Nov**   **Dec**   **Jan**   **Feb**   **Mar**   **Apr**   **May**   **Jun**   **Jul**   **Aug**   **Sep**

  **MW**                                                                                                                        

  Note: Round                                                                                                                  
  the megawatt                                                                                                                 
  amounts in the                                                                                                               
  table above to                                                                                                               
  three decimal                                                                                                                
  places.                                                                                                                      
  -------------- --------- --------- --------- --------- --------- --------- --------- --------- --------- --------- --------- ---------

> \(b\) **Changes Due to Annexation**
>
> The Parties shall determine when changes to «Customer Name»'s CDQs, as
> allowed below, will become effective.
>
> \(1\) If «Customer Name» acquires an Annexed Load from a utility that
> has monthly CDQs, BPA shall increase «Customer Name»'s CDQ for each
> month by adding the portion of the other utility's CDQ that is
> attributable to such Annexed Load.
>
> \(2\) If another utility with monthly CDQs annexes load of «Customer
> Name», BPA shall reduce «Customer Name»'s CDQ for each month by
> removing the portion of «Customer Name»'s CDQ that is attributable to
> the load that was annexed.

**4. REVISIONS** *(03/30/08 Version)*

> Except as otherwise specified in sections 1 through 3 above, this
> exhibit shall only be revised by mutual agreement of the Parties.

(PS«X/LOC»- «File Name with Path».DOC) «mm/dd/yy» *{[Drafter's
Note]{.underline}: Insert date of finalized contract here}*

**Exhibit C**

**PURCHASE OBLIGATIONS**

**1. FIRM REQUIREMENTS POWER PURCHASE OBLIGATION***(4/1/08 Version --
tcr)*

> Three charges are applicable to «Customer Name»'s purchase of the
> Slice/Block Product: (1) a Composite Charge, (2) a Non-Slice Charge
> that applies to the amount Block Power at Tier 1 Rates, and (3) a
> Slice Charge that applies to the Slice Product. The methodology that
> describes how these charges are to be calculated is contained in the
> TRM, and the dollar amounts that are allocated to the cost pools
> associated with such charges shall be determined in each BPA Rate
> Case.

**2. BLOCK POWER AT TIER 1 RATES** ***(4/3/08 Version -- tcr)***

The annual amount of Block Power at Tier 1 Rates that will be made
available to «Customer Name» during each Fiscal Year shall be determined
using the methodology described in section 3(a)(4) of the body of this
Agreement and specified in the table below.

\(a\) **Annual Amount of Block Power at Tier 1 Rates**

\(1\) «Customer Name»'s annual average amount of Firm Requirements Power
priced at Tier 1 PF power rates shall be computed by taking the lesser
of «Customer Name»'s Fiscal Year Net Requirements as determined in
Exhibit A, Net Requirements or «Customer Name»'s RHWM then in effect,
rounded to 3 decimals in annual aMW.

> \(2\) The annual amount of Block Power at Tier 1 Rates shall be
> computed by subtracting the Critical Slice Amount from Exhibit I,
> Critical Slice Amounts, from the Firm Requirements Power priced at
> Tier 1 rates from section 2(a) above. The value so computed shall be
> entered into the table below rounded to 3 decimals in annual aMW.
> Values less than zero shall be entered into the table as zero.

  ---------------------- ------------------------------------------------
  **Fiscal Year**        **Block Power at Tier 1 Rates**

  FY 2012                *xxx.xxx* aMW

  FY 2013                *xxx.xxx* aMW

  FY 2014                *xxx.xxx* aMW

  FY 2015                *xxx.xxx* aMW

  FY 2016                *xxx.xxx* aMW

  FY 2017                *xxx.xxx* aMW

  FY 2018                *xxx.xxx* aMW

  FY 2019                *xxx.xxx* aMW

  FY 2020                *xxx.xxx* aMW

  FY 2021                *xxx.xxx* aMW

  FY 2022                *xxx.xxx* aMW

  FY 2023                *xxx.xxx* aMW

  FY 2024                *xxx.xxx* aMW

  FY 2025                *xxx.xxx* aMW

  FY 2026                *xxx.xxx* aMW

  FY 2027                *xxx.xxx* aMW

  FY 2028                *xxx.xxx* aMW
  ---------------------- ------------------------------------------------

*[Option 1]{.underline}: Include if customer chooses to purchase a Flat
Block:*

\(b\) **Determination of Monthly Distribution Factors**

> The Monthly Distribution Factor will be equal to 0.833, as shown in
> the table below:

**Monthly Distribution Factors**

  --------- --------- --------- --------- --------- --------- --------- --------- --------- --------- --------- --------- -----------
  **Oct**   **Nov**   **Dec**   **Jan**   **Feb**   **Mar**   **Apr**   **May**   **Jun**   **Jul**   **Aug**   **Sep**   **Total**

  0.833     0.833     0.833     0.833     0.833     0.833     0.833     0.833     0.833     0.833     0.833     0.833     1.0
  --------- --------- --------- --------- --------- --------- --------- --------- --------- --------- --------- --------- -----------

*[Option 2]{.underline}: Include if customer chooses a block shaped to
their Monthly Net Requirement:*

\(b\) **Determination of Monthly Distribution Factors**

Prior to October 1, 2011 BPA shall establish «Customer Name»'s Monthly
Distribution Factor, for each month, using the formula presented below.

> []{.mark}

  ------------- ------------- ------------ ------------- ------------ -------------- ------------ ------------- -------------
  [\[]{.mark}   [Monthly load [-]{.mark}   [Monthly      [\] ÷        Sum of the     [-]{.mark}   [Sum of the   [\]]{.mark}
                in                         resources in  \[]{.mark}   monthly loads               monthly       
                MWh]{.mark}                MWh]{.mark}                in MWh                      resources in  
                                                                                                  MWh]{.mark}   

  ------------- ------------- ------------ ------------- ------------ -------------- ------------ ------------- -------------

[]{.mark}

[where:]{.mark}

> []{.mark}

["Load" means «Customer Name»'s Measured 2010 Load, as defined in the
TRM, adjusted for use in determining «Customer Name»'s CHWM, and]{.mark}

[]{.mark}

["Resources" means «Customer Name»'s Existing Resources as defined in
the TRM.]{.mark}

> []{.mark}

BPA shall compute «Customer Name»'s Monthly Distribution Factors and
enter these values, rounded to 3 decimal digits with no units of measure
into the table below. [These Monthly Distribution Factors shall not
change for the term of this Agreement.]{.mark}

**Monthly Distribution Factors**

  --------- --------- --------- --------- --------- --------- --------- --------- --------- --------- --------- --------- -----------
  **Oct**   **Nov**   **Dec**   **Jan**   **Feb**   **Mar**   **Apr**   **May**   **Jun**   **Jul**   **Aug**   **Sep**   **Total**

  *x.xxx*   *x.xxx*   *x.xxx*   *x.xxx*   *x.xxx*   *x.xxx*   *x.xxx*   *x.xxx*   *x.xxx*   *x.xxx*   *x.xxx*   *x.xxx*   1.0
  --------- --------- --------- --------- --------- --------- --------- --------- --------- --------- --------- --------- -----------

\(c\) **Monthly Amounts of Block Power at Tier 1 Rates**

> Before October 1, of each Fiscal Year, beginning with FY 2012, BPA
> shall update the table below with the megawatt amounts of Block Power
> at Tier 1 Rates made available to «Customer Name» for each hour of the
> month. The megawatt amounts of Block Power at Tier 1 Rates shall be
> computed for each month of the Fiscal Year by multiplying the Fiscal
> Year annual aMW amount of Block Power at Tier 1 Rates as defined in
> section 2(a)(2) above, by the Monthly Distribution Factor as defined
> in section 2(b) above by the number of hours in the year divided by
> the number of hours in the month, both as defined in the GRSP's.
>
> *[Drafter's Note]{.underline}: Leave table blank at signing:*

  --------------------------------------------------------------------------------------------------------------------------------------------------------------------
              **Oct**      **Nov**      **Dec**      **Jan**      **Feb**      **Mar**      **Apr**      **May**      **Jun**      **Jul**      **Aug**      **Sep**
  -------- -- --------- -- --------- -- --------- -- --------- -- --------- -- --------- -- --------- -- --------- -- --------- -- --------- -- --------- -- ---------
  **FY                                                                                                                                                       
  2012**                                                                                                                                                     

  Energy                                                                                                                                                     
  MW                                                                                                                                                         

  **FY                                                                                                                                                       
  2013**                                                                                                                                                     

  Energy                                                                                                                                                     
  MW                                                                                                                                                         

  **FY                                                                                                                                                       
  2014**                                                                                                                                                     

  Energy                                                                                                                                                     
  MW                                                                                                                                                         

  **FY                                                                                                                                                       
  2015**                                                                                                                                                     

  Energy                                                                                                                                                     
  MW                                                                                                                                                         

  **FY                                                                                                                                                       
  2016**                                                                                                                                                     

  Energy                                                                                                                                                     
  MW                                                                                                                                                         

  **FY                                                                                                                                                       
  2017**                                                                                                                                                     

  Energy                                                                                                                                                     
  MW                                                                                                                                                         

  **FY                                                                                                                                                       
  2018**                                                                                                                                                     

  Energy                                                                                                                                                     
  MW                                                                                                                                                         

  **FY                                                                                                                                                       
  2019**                                                                                                                                                     

  Energy                                                                                                                                                     
  MW                                                                                                                                                         

  **FY                                                                                                                                                       
  2020**                                                                                                                                                     

  Energy                                                                                                                                                     
  MW                                                                                                                                                         

  **FY                                                                                                                                                       
  2021**                                                                                                                                                     

  Energy                                                                                                                                                     
  MW                                                                                                                                                         

  **FY                                                                                                                                                       
  2022**                                                                                                                                                     

  Energy                                                                                                                                                     
  MW                                                                                                                                                         

  **FY                                                                                                                                                       
  2023**                                                                                                                                                     

  Energy                                                                                                                                                     
  MW                                                                                                                                                         

  **FY                                                                                                                                                       
  2024**                                                                                                                                                     

  Energy                                                                                                                                                     
  MW                                                                                                                                                         

  **FY                                                                                                                                                       
  2025**                                                                                                                                                     

  Energy                                                                                                                                                     
  MW                                                                                                                                                         

  **FY                                                                                                                                                       
  2026**                                                                                                                                                     

  Energy                                                                                                                                                     
  MW                                                                                                                                                         

  **FY                                                                                                                                                       
  2027**                                                                                                                                                     

  Energy                                                                                                                                                     
  MW                                                                                                                                                         

  **FY                                                                                                                                                       
  2028**                                                                                                                                                     

  Energy                                                                                                                                                     
  MW                                                                                                                                                         
  --------------------------------------------------------------------------------------------------------------------------------------------------------------------

> Note: Enter the megawatt amounts rounded to a whole number.

*End **SLICE/BLOCK** templates.*

**3. FIRM REQUIREMENTS POWER AT TIER 2 PF***(04/06/08 Version)*

> Tier 2 PF rates are established in the TRM and rate cases that use the
> TRM.

\(a\) **Tier 2 PF Load-Growth Rate**

> *Reviewers note: Shaded text is identical to Load Following Option 4*
>
> «Customer Name» shall not have the right to purchase Firm Requirements
> Power at the Load-Growth Rate for the term of this Agreement.
>
> \(b\) **Tier 2 PF Vintage Rate(s)**
>
> *Reviewers note: Shaded text is identical to Load Following (absent
> the first sentence)*
>
> Subject to section 3(c)(3) below, «Customer Name» may purchase Firm
> Requirements Power from BPA at one or more Tier 2 PF Vintage Rates
> only if «Customer Name» purchases Firm Requirements Power from BPA at
> the Tier 2 PF Short-Term Rate. If «Customer Name» elects to purchase
> Firm Requirements Power from BPA at a Tier 2 PF Vintage Rate,
> «Customer Name» shall sign a Statement of Intent. "Statement of
> Intent" means a statement by «Customer Name» that it is interested in
> purchasing power at a specific rate based on the costs of a resource
> to be acquired by BPA for service to «Customer Name». If BPA
> establishes the Vintage Rate on which the Statement of Intent was
> based, «Customer Name» agrees to have that portion of its Tier 2 PF
> rate power purchase, as specified in the Statement of Intent, priced
> at that rate. If BPA is unable to establish the Vintage Rate,
> «Customer Name» agrees to purchase at its currently applicable Tier 2
> PF rate.
>
> «insert applicable tables, terms, and conditions for each Vintage rate
> here»

\(c\) **Tier 2 PF Short-Term Rate**

> \(1\) **Notice Deadlines and Purchase Periods**
>
> *Reviewers note: Shaded text is identical to Load Following text:*
>
> Notice Deadlines and corresponding Purchase Periods are as follows:

  -------------------------------- -------- ------------------------------
  **Notice Deadline**                       **Purchase Period**

  November 1, 2009                 For      FY 2012 -- FY 2014

  September 30, 2011               For      FY 2015 -- FY 2019

  September 30, 2016               For      FY 2020 -- FY 2024

  September 30, 2021               For      FY 2025 -- FY 2028
  -------------------------------- -------- ------------------------------

> \(2\) **Short-Term Rate Purchases**
>
> By each Notice Deadline above, «Customer Name» shall provide written
> notice to BPA of «Customer Name»'s purchase amounts (including zero
> amounts) of Firm Requirements Power priced at the Tier 2 PF Short-Term
> Rate for each year of the corresponding Purchase Period. If «Customer
> Name» does not provide such notice, «Customer Name» shall purchase
> zero amounts of Firm Requirements Power priced at the Tier 2 PF
> Short-Term Rate for the corresponding Purchase Period. BPA shall
> update the table below to show «Customer Name»'s purchase amounts at
> the Tier 2 PF Short-Term Rate.

  ------------------------- --------- --------- --------- --------- ---------
  **Tier 2 PF Short-Term                                            
  Rate Table**                                                      

  **Fiscal Year**           2012      2013      2014                

  **aMW**                                                           

                                                                    

  **Fiscal Year**           2015      2016      2017      2018      2019

  **aMW**                                                            

                                                                    

  **Fiscal Year**           2020      2021      2022      2023      2024

  **aMW**                                                            

                                                                    

  **Fiscal Year**           2025      2026      2027      2028      

  **aMW**                                                           

  Note: Insert whole                                                
  megawatt amounts for each                                         
  year of the applicable                                            
  Purchase Period.                                                  
  ------------------------- --------- --------- --------- --------- ---------

> \(3\) **Vintage Rate Eligibility**
>
> *[Reviewers Note]{.underline}: Shaded text is identical to Load
> Following text:*
>
> \(A\) **Right to Convert**
>
> Subject to the amounts of power available under Tier 2 PF Vintage
> Rates offered by BPA, «Customer Name» shall have the right to convert
> only those amounts of Firm Requirements Power it purchases at the
> Tier 2 PF Short-Term Rate to a purchase amount at a Tier 2 PF Vintage
> Rate. Before BPA will acquire any cost-effective resource on a
> long-term basis to serve load under a Tier 2 PF Vintage Rate,
> «Customer Name» shall first provide BPA with a Statement of Intent to
> purchase Firm Requirements Power specifying the amount and term of
> purchase.
>
> \(B\) **Conversion Costs**
>
> Upon establishment of a Vintage Rate for which «Customer Name» signed
> a Statement of Intent, «Customer Name» shall be liable for payment of
> any outstanding costs under the Tier 2 PF Short-Term Rate that apply
> to «Customer Name». BPA shall determine such costs, if any, in the
> first section 7(i) rate proceeding that establishes the applicable
> Tier 2 PF Vintage Rate(s).
>
> \(C\) **Exhibit Updates**
>
> Upon establishment of a Tier 2 Vintage Rate for which «Customer Name»
> signed a Statement of Intent, BPA shall amend this exhibit to show
> «Customer Name»'s Tier 2 PF Vintage Rate purchase amounts and remove
> «Customer Name»'s Tier 2 PF Short-Term Rate purchases by the amounts
> purchased at the Tier 2 PF Vintage Rate.

\(d\) **Amounts of Power to be Billed at Tier 2 Rates**

> Prior to each Fiscal Year and consistent with Exhibit A, Net
> Requirements, BPA shall determine the amounts, if any, of Firm
> Requirements Power at Tier 2 PF rates that need to be remarketed
> subject to section 6 of the body of this Agreement. Following such
> determination, BPA shall update the table below for the upcoming
> Fiscal Year with: i) the annual average amounts of Firm Requirements
> Power which «Customer Name» shall purchase at each applicable Tier 2
> PF rate, ii) any remarketed Tier 2 PF rate purchase amounts, and iii)
> the total amount of Firm Requirements Power priced at Tier 2 PF rates,
> net of remarketed amounts.

<table>
<colgroup>
<col style="width: 26%" />
<col style="width: 8%" />
<col style="width: 8%" />
<col style="width: 8%" />
<col style="width: 8%" />
<col style="width: 8%" />
<col style="width: 8%" />
<col style="width: 8%" />
<col style="width: 8%" />
<col style="width: 8%" />
</colgroup>
<thead>
<tr class="header">
<th colspan="10"><strong>Annual Amounts Priced at Tier 2 PF Rates
(aMW)</strong></th>
</tr>
<tr class="odd">
<th><strong>Fiscal Year</strong></th>
<th>2012</th>
<th>2013</th>
<th>2014</th>
<th>2015</th>
<th>2016</th>
<th>2017</th>
<th>2018</th>
<th>2019</th>
<th>2020</th>
</tr>
</thead>
<tbody>
<tr class="odd">
<td><strong>«No Tier 2 at this time»</strong></td>
<td><strong> </strong></td>
<td><strong> </strong></td>
<td><strong> </strong></td>
<td><strong> </strong></td>
<td><strong> </strong></td>
<td><strong> </strong></td>
<td><strong> </strong></td>
<td><strong> </strong></td>
<td><strong> </strong></td>
</tr>
<tr class="even">
<td><strong>Minus Remarketed Amounts</strong></td>
<td><strong> </strong></td>
<td><strong> </strong></td>
<td><strong> </strong></td>
<td><strong> </strong></td>
<td><strong> </strong></td>
<td><strong> </strong></td>
<td><strong> </strong></td>
<td><strong> </strong></td>
<td><strong> </strong></td>
</tr>
<tr class="odd">
<td><strong>Total Amount at Tier 2</strong></td>
<td><strong> </strong></td>
<td><strong> </strong></td>
<td><strong> </strong></td>
<td><strong> </strong></td>
<td><strong> </strong></td>
<td><strong> </strong></td>
<td><strong> </strong></td>
<td><strong> </strong></td>
<td><strong> </strong></td>
</tr>
<tr class="even">
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
</tr>
<tr class="odd">
<td><strong>Fiscal Year</strong></td>
<td>2021</td>
<td>2022</td>
<td>2023</td>
<td>2024</td>
<td>2025</td>
<td>2026</td>
<td>2027</td>
<td>2028</td>
<td rowspan="4"><strong> </strong></td>
</tr>
<tr class="even">
<td><strong>«No Tier 2 at this time»</strong></td>
<td><strong> </strong></td>
<td><strong> </strong></td>
<td><strong> </strong></td>
<td><strong> </strong></td>
<td><strong> </strong></td>
<td><strong> </strong></td>
<td><strong> </strong></td>
<td><strong> </strong></td>
</tr>
<tr class="odd">
<td><strong>Minus Remarketed Amounts</strong></td>
<td><strong> </strong></td>
<td><strong> </strong></td>
<td><strong> </strong></td>
<td><strong> </strong></td>
<td><strong> </strong></td>
<td><strong> </strong></td>
<td><strong> </strong></td>
<td><strong> </strong></td>
</tr>
<tr class="even">
<td><strong>Total Amount at Tier 2</strong></td>
<td><strong> </strong></td>
<td><strong> </strong></td>
<td><strong> </strong></td>
<td><strong> </strong></td>
<td><strong> </strong></td>
<td><strong> </strong></td>
<td><strong> </strong></td>
<td><strong> </strong></td>
</tr>
<tr class="odd">
<td colspan="10"><p>Notes:</p>
<p>1_ List each applicable Tier 2 rate in the table above. For the first
applicable Tier 2 rate replace <strong>«No Tier 2 at this time»</strong>
with the name of the applicable Tier 2 rate. For each additional Tier 2
rate, add a new row above the <strong>Remarketed Amounts</strong> row.
If «Customer Name» elects not to purchase at Tier 2 rates, leave
<strong>«No Tier 2 at this time»</strong> in the table and leave the
remainder of the table blank.</p>
<p>2_Fill in the table above with whole annual average
megawatts.</p></td>
</tr>
</tbody>
</table>

\(e\) **Flat Block**

> Amounts of Firm Requirements Power priced at Tier 2 PF rates shall be
> equal in all hours of the year.

**4. MONTHLY PF RATES***(04/06/08 Version)*

> Applicable monthly Tier 1 PF and Tier 2 PF rates are specified in BPA
> rate schedules.

**5. REVISIONS***(04/06/08 Version)*

> BPA shall revise this exhibit to reflect Customer Name»'s elections
> regarding service to its above-RHWM load and BPA's determinations
> under this Agreement.

(PS«X/LOC»- «File Name with Path».DOC) «mm/dd/yy» *{[Drafter's
Note]{.underline}: Insert date of finalized contract here*

**Exhibit D**

**ADDITIONAL PRODUCTS AND SPECIAL PROVISIONS**

**1. NEW LARGE SINGLE LOADS** *(12/27/07 Version)*

*[Option 1]{.underline}: Include the following if customer **DOES NOT**
have a **POTENTIAL** NLSL.*

> \(a\) **Potential NLSLs**
>
> «Customer Name» has no potential NLSLs.

*End Option 1*

*[Option 2]{.underline}: Include the following if customer has a
**POTENTIAL** NLSL.*

> \(a\) **Potential NLSLs**
>
> «Customer Name» has identified the following potential NLSL(s):
>
> End-use consumer name:
>
> Facility location:
>
> Potential load size and date anticipated:
>
> Description of potential NLSL:

*End Option 2*

> \(b\) **List of NLSLs and CF/CTs**

*[Option 1a]{.underline}: Include the following if customer **has no**
existing NLSLs.*

> \(1\) **NLSLs**
>
> «Customer Name» has no NLSLs.

*[Option 1b]{.underline}: Include the following if customer **has** an
existing NLSL.*

> \(1\) **NLSLs**
>
> «Customer Name» has an NLSL and agrees to serve the NLSL with a firm
> resource that is not already dedicated to serve its other firm end-use
> consumer loads. The Parties shall list such firm resource in
> Exhibit A, Net Requirements.
>
> End--use consumer name:
>
> Facility location:
>
> Date load determined as an NLSL:
>
> Description of NLSL:
>
> Manner of service:

*[Option 2a]{.underline}: Include the following if customer **has no**
onsite renewable or cogeneration facilities to apply to an NLSL:*

> \(2\) **Renewable Resource/Cogeneration Exception**
>
> «Customer Name»'s end-use consumer is not applying an on-site
> renewable resource or cogeneration facility to an NLSL.

*[Option 2b]{.underline}: Include the following if customer **has** an
onsite renewable or cogeneration facility to apply to an NLSL.*

> \(2\) **Renewable Resource/Cogeneration Exception**
>
> *[Drafter's Note]{.underline}: Use Revision 5 to Exhibit D under
> Flathead's Subscription Contract 00PB-12172 as a template and
> coordinate with the NLSL expert and general counsel to add specific
> renewable or cogeneration resource information.*

*[Option 3a]{.underline}: Include the following if customer has **no**
CF/CT loads.*

> \(3\) **CF/CT Loads**
>
> «Customer Name» has no loads that were contracted for, or committed to
> (CF/CT), as of September 1, 1979, as defined in Section 3(13)(A) of
> the Northwest Power Act.

*[Option 3b]{.underline}: Include the following if customer **has**
CF/CT loads.*

> \(3\) **CF/CT Loads**
>
> The Administrator has determined that the following loads were
> contracted for, or committed to be served (CF/CT), as of September 1,
> 1979, as defined in Section 3(13)(A) of the Northwest Power Act, and
> are subject to the applicable cost-based rate for the rest of
> «Customer Name»'s load:
>
> End-use consumer's name:
>
> Amount of firm energy (megawatts at 100 percent load factor)
> contracted for, or committed to, as of September 1, 1979:
>
> Facility location and description:
>
> *[Drafters Note]{.underline}: Include the following for customers who
> are eligible to receive irrigation rate mitigation*

**2. IRRIGATION RATE MITIGATION** *(04/03/08 Version)*

> Subject to the terms specified in BPA's applicable Wholesale Power
> Rate Schedules and GRSPs:
>
> \(a\) in the months listed below for each year during the term of this
> Agreement, BPA shall apply the Irrigation Rate Mitigation to the
> lesser of the corresponding Tier 1 PF amount purchased in the month or
> the energy amount in the table below; and,

Irrigation Amounts (kWh)

  -------------------------- --------- --------- --------- --------- ----------
                             **May**   **Jun**   **Jul**   **Aug**   **Sept**

  **HLH Energy**                                                     

  **LLH Energy**                                                     
  -------------------------- --------- --------- --------- --------- ----------

> \(b\) «Customer Name» shall be responsible for implementing
> cost-effective conservation measures on irrigation systems in their
> service territories. «Customer Name» shall verify and report all
> conservation measures and project savings consistent with
> section 15(a)(2) of the body of this Agreement.

**3. RESOURCE SUPPORT SERVICES** *(03/31/08 Version)*

> *[Reviewer's Note]{.underline}: BPA plans to develop the contract
> provisions for all RSS products in consultation with customers in 2009
> and will add them to this Exhibit under a bilateral exhibit revision
> prior to November 1, 2009 when customers will make their elections for
> service above their High Water Marks. We will discuss this at the
> workshops in April.*
>
> \(a\) **Diurnal Flattening Service (DFS)**
>
> *[Reviewer's Note]{.underline}: See BPA's Regional Dialogue Guidebook
> for details about this product.*
>
> \(b\) **Forced Outage Reserves (FOR)**
>
> *[Reviewer's Note]{.underline}: See BPA's Regional Dialogue Guidebook
> for details about this product.*

**4. REVISIONS** *(09/04/07 Version)*

> This exhibit shall be revised by mutual agreement of the Parties to
> reflect additional products «Customer Name» purchases during the term
> of this Agreement.

(PS«X/LOC»- «File Name with Path».DOC) «mm/dd/yy» *{[Drafter's
Note]{.underline}: Insert date of finalized contract here}*

**Exhibit E**

**METERING***(04/03/08 Version)*

*[Drafter's Note]{.underline}: Include all three tables, but state "N/A"
if the table does not apply for the particular customer's circumstances.
In general, only customers who operate their own balancing authorities
will complete Table 3 (Seattle, Tacoma, Douglas PUD, Grant PUD and all
IOU's)*

*[Reviewer\'s Note]{.underline}: The accuracy of the data elements
comprising the metering exhibit is critical to BPA and its contractual
relationship with its customers. Accordingly, organizational data
stewards have been identified for each data element, business processes
have been designed and sources of record identified to support the data
stewards who have responsibility for the quality of this data. The BPA
Account Executives are responsible for the accuracy of the overall
table.*

+----+----------+-----+----------+--------+-------+------+-----------+
| *  |          |     |          |        |       |      |           |
| *T |          |     |          |        |       |      |           |
| ab |          |     |          |        |       |      |           |
| le |          |     |          |        |       |      |           |
| 1: |          |     |          |        |       |      |           |
| Lo |          |     |          |        |       |      |           |
| ad |          |     |          |        |       |      |           |
| Me |          |     |          |        |       |      |           |
| te |          |     |          |        |       |      |           |
| rs |          |     |          |        |       |      |           |
| ** |          |     |          |        |       |      |           |
+----+----------+-----+----------+--------+-------+------+-----------+
| *  | **Point  | *   | **Meter  | *      | **Met | **B  | **Manner  |
| *P | of       | *Me | Name**   | *Direc | ering | alan | of        |
| oi | Delivery | ter |          | tion** | Loca  | cing | Service^[ |
| nt | Name**   | \   |          |        | tion^ | A    | 1]{.under |
| of |          | #** |          | **(For | 1/^** | utho | line}/^** |
| De |          |     |          | B      |       | rity |           |
| li |          |     |          | illing |       | Area |           |
| ve |          |     |          | Purpo  |       | ^[2/ |           |
| ry |          |     |          | ses)** |       | ]{.u |           |
| \# |          |     |          |        |       | nder |           |
| ** |          |     |          |        |       | line |           |
|    |          |     |          |        |       | }^** |           |
+----+----------+-----+----------+--------+-------+------+-----------+
| N  | N/A      | N/A | N/A      | N/A    | N/A   | N/A  | N/A       |
| /A |          |     |          |        |       |      |           |
+----+----------+-----+----------+--------+-------+------+-----------+
|    |          |     |          |        |       |      |           |
+----+----------+-----+----------+--------+-------+------+-----------+
|    |          |     |          |        |       |      |           |
+----+----------+-----+----------+--------+-------+------+-----------+
|    |          |     |          |        |       |      |           |
+----+----------+-----+----------+--------+-------+------+-----------+

^[1]{.underline}/^ B = Bonneville Power Administration; E = Example
Public Utility District; S = Sample Cooperative*. Footnote 1 should be
edited to only have abbreviations needed*

^[2]{.underline}/^ BPAT = BPA Transmission Balancing Authority

*[(Drafter's Note:]{.underline} The following notes and terms are
guidelines for developing the Metering Exhibit. Do not include the
following in the final exhibit if not applicable. **Note**: B = footnote
can be used for both P and T contracts; P = footnote used only for P
contracts, T= footnote used only for T contracts.)*

^[\#]{.underline}/^ *B -* The revenue meters are owned by «Owner Name».
*(Note: Revenue meters are assumed to be owned by BPA -- if not use this
footnote.)*

^[\#]{.underline}/^ *B -* Demand measurements are provided by a
totalizing recording demand meter.

^[\#]{.underline}/^ *P -*Service to this Point of Delivery is taken
pursuant to transfer service under a Transfer Agreement with «Utility
Name».

^[\#]{.underline}/^ *B -* «Customer Name» provides «#» kV step-down to
«#» kV delivery service at «Owner Name»'s «Substation Name» Substation.
*(Use only if customer is providing step-down service and it is not a
BPA owned substation.)*

^[\#]{.underline}/^ *B -* The period of service for meter «POM #» shall
commence when the «substation or equipment» is energized for commercial
operation. *(Use only when adding a new metering point that has not yet
been energized.)*

^[\#]{.underline}/^ *B -* The period of service for meter «POM #» shall
commence at «####» hours on «Month dd, yyyy». *(Use only if known.)*

^[\#]{.underline}/^ *B -* The period of service for meter «POM #» shall
end at «####» hours on «Month dd, yyyy». *(Use only if known.)*

^[\#]{.underline}/^ *P -*This Point of Delivery «POD #» is subject to a
«#,###» kW demand limit.

^[\#]{.underline}/^ *P -*This Point of Delivery «POD #» is subject to
Low Voltage Delivery charges pursuant to section «#» of the body of this
Agreement.

*^[\#]{.underline}^ T-* Point of Delivery «POD #» is subject to Delivery
charges pursuant to section «#» of the body of this Agreement.

^[\#]{.underline}/^ *B --*There shall be an adjustment for losses
between the Point of Delivery and the Point of Metering for meter «POM
#», and such adjustment shall be specified in correspondence transmitted
between BPA and «Customer Name».

*^\#^ B -*The Point of Delivery is located at «####».

+----+----------+-----+----------+--------+-------+------+-----------+
| *  |          |     |          |        |       |      |           |
| *T |          |     |          |        |       |      |           |
| ab |          |     |          |        |       |      |           |
| le |          |     |          |        |       |      |           |
| 2: |          |     |          |        |       |      |           |
| Re |          |     |          |        |       |      |           |
| so |          |     |          |        |       |      |           |
| ur |          |     |          |        |       |      |           |
| ce |          |     |          |        |       |      |           |
| Me |          |     |          |        |       |      |           |
| te |          |     |          |        |       |      |           |
| rs |          |     |          |        |       |      |           |
| ** |          |     |          |        |       |      |           |
+----+----------+-----+----------+--------+-------+------+-----------+
| *  | **Point  | *   | **Meter  | *      | **Met | **B  | **Manner  |
| *P | of       | *Me | Name**   | *Direc | ering | alan | of        |
| oi | Receipt  | ter |          | tion** | Locat | cing | Service^[ |
| nt | Name**   | \   |          |        | ion** | A    | 1]{.under |
| of |          | #** |          | **(For |       | utho | line}/^** |
| De |          |     |          | B      |       | rity |           |
| li |          |     |          | illing |       | Area |           |
| ve |          |     |          | Purpo  |       | ^[2/ |           |
| ry |          |     |          | ses)** |       | ]{.u |           |
| \# |          |     |          |        |       | nder |           |
| ** |          |     |          |        |       | line |           |
|    |          |     |          |        |       | }^** |           |
+----+----------+-----+----------+--------+-------+------+-----------+
| N  | N/A      | N/A | N/A      | N/A    | N/A   | N/A  | N/A       |
| /A |          |     |          |        |       |      |           |
+----+----------+-----+----------+--------+-------+------+-----------+
| 1  | Make     | 1   | Co-Gen   | \+     | C     | BPAT | Directly  |
|    | Believe  | 005 | In (115  |        | o-Gen |      | Connected |
|    | (115 kV) |     | kV)      |        | Plant |      | to S      |
+----+----------+-----+----------+--------+-------+------+-----------+
| 1  | Make     | 1   | Co-Gen   | \-     | C     | BPAT | Directly  |
|    | Believe  | 006 | Out (115 |        | o-Gen |      | Connected |
|    | (115 kV) |     | kV)      |        | Plant |      | to S      |
+----+----------+-----+----------+--------+-------+------+-----------+

^[1]{.underline}/^ B = Bonneville Power Administration; E = Example
Public Utility District; S = Sample Cooperative*. Footnote 1 should be
edited to only have abbreviations needed*

^[2]{.underline}/^ BPAT = BPA Transmission Balancing Authority

*[(Drafter's Note:]{.underline} The following notes and terms are
guidelines for developing the Metering Exhibit. Do not include the
following in the final exhibit if not applicable. **Note**: B = footnote
can be used for both P and T contracts; P = footnote used only for P
contracts.)*

^[\#]{.underline}/^ *B -* The revenue meters are owned by «Customer
Name». *(Note: Revenue meters are assumed to be owned by BPA -- if not
use this footnote.)*

^[\#]{.underline}/^ *B -* Demand measurements are provided by a
totalizing recording demand meter.

^[\#]{.underline}/^ *B -* «Customer Name» provides «#» kV step-down to
«#» kV delivery service at «Customer Name»'s «Substation Name»
Substation. *(Use only if customer is providing step-down service and it
is not a BPA owned substation.)*

^[\#]{.underline}/^ *B -* The period of service for meter «POM #» shall
commence when the «substation or equipment» is energized for commercial
operation. *(Use only when adding a new metering point that has not yet
been energized.)*

^[\#]{.underline}/^ *B -* The period of service for meter «POM #» shall
commence at «####» hours on «Month dd, yyyy». *(Use only if known.)*

^[\#]{.underline}/^ *B -* The period of service for meter «POM #» shall
end at «####» hours on «Month dd, yyyy». *(Use only if known.)*

^[\#]{.underline}/^ *B --*There shall be an adjustment for losses
between the Point of Receipt and the Point of Metering for meter «POM
#», and such adjustment shall be specified in correspondence transmitted
between BPA and «Customer Name».

*^\#^ B -*The Point of Receipt is located at «####».

***Standard Terms -- Tables 1 and 2***

***Point of Delivery/Point of Receipt \#** is the BPA assigned number
associated with a customer's specific POD/POR. (Note: a number is used
instead of the substation name because different internal BPA automated
tracking systems all use different nomenclature. Use of a number is a
more reliable method used for our automated systems coming on line)*

***Meter \#** is the BPA assigned number associated with a customer's
specific Point of Metering*

***Meter Name** is the name of the Point of Metering*

***Direction** means the direction that is used for billing purposes. A
"+" means the metered amount is added and "-" means the metered amount
is subtracted to determine the customers load.*

***Metering Location** means the location on the system where the power
is metered, not the actual location of the meter.*

***Balancing Authority Area** means the collection of generation,
transmission, and loads within the metered boundaries of a Balancing
Authority. The Balancing Authority maintains load-resource balance
within this area. The Balancing Authority is the responsible entity that
integrates resource plans ahead of time, maintains
load-interchange-generation balance within a Balancing Authority Area,
and supports interconnection frequency in real time.*

***Manner of Service: Transfer** means that part of the wheeling of
power and energy to the Point of Delivery that is via an intervening
transmission system owned by a utility other than BPA. Usually "B to
T to C" or "B to T to B to C."*

***Manner of Service: Direct** means BPA transmission provides for the
wheeling of power and energy from the Point of Receipt to the Point of
Delivery without the services of an intervening transmission system.
Usually "B to C."*

***Manner of Service: Directly Connected** means the generation is
directly connected to the customer's system.*

***Manner of Service: Wheeled** means the resource is not connected
directly to the customer's system And the power and energy from that
generation is brought to the customer's system over another utility's
transmission system.*

  ----------------------- ----------- ----------------------- -------------
  **Table 3: Interchange                                      
  Meters (Not to be used                                      
  for billing purposes)**                                     

  **Name of Interchange               **Metering Location**   **Balancing
  Point (owner)**                                             Authority
                                                              Areas**

  N/A                                 N/A                     N/A

  Kitsap Interchange                  physical description    BPA/Puget

  (BPA)                                                       

  ** **                   ** **       ** **                   ** **
  ----------------------- ----------- ----------------------- -------------

***Standard Terms -- Table 3***

***Name of Interchange Point (owner)** means the name of the interchange
meter and who owns it. Interchange point means the points where
Balancing Authority Areas interconnect and at which the interchange of
energy between Balancing Authority Areas is monitored and measured.*

***Metering Location** means the location on the system where the power
is metered, not the actual location of the meter.*

***Balancing Authority Area** means the collection of generation,
transmission, and loads within the metered boundaries of a Balancing
Authority. The Balancing Authority maintains load-resource balance
within this area. The Balancing Authority is the responsible entity that
integrates resource plans ahead of time, maintains
load-interchange-generation balance within a Balancing Authority Area,
and supports interconnection frequency in real time.*

**Revisions**

BPA may unilaterally revise the Metering exhibit to correctly reflect
the Points of Delivery, Points of Metering, Interchange Points and
related information, as required to operate under and to administer this
Agreement. Revisions are effective when BPA provides written notice of
the revisions to «Customer Name».

(PS«X/LOC»- «File Name with Path».DOC) «mm/dd/yy» *{[Drafter's
Note]{.underline}: Insert date of finalized contract here}*

**EXHIBIT F**

**POWER SCHEDULING**

**1. SCHEDULING FEDERAL POWER**

«Customer Name» is responsible for creating Electronic Tags (E-tags) for
all deliveries of Federal Power purchased under this Agreement.
«Customer Name» shall provide copies of Federal Power E-tags to Power
Services consistent with the requirements of this Scheduling Exhibit.

**2. COORDINATION REQUIREMENTS**

\(a\) **Prescheduling**

«Customer Name» shall submit a Federal Power delivery schedule to Power
Services Scheduling including physical and market paths for schedules,
and MW amounts for the following day(s) to BPA by 1100 Pacific
Prevailing Time the day on which prescheduling occurs, except as
specified by WECC (e.g. end of month and holidays). Preschedule E-Tags
are due to Power Services in accordance with the parameters specified in
Section 4 below.

*Include in **Slice/Block** template*

\(b\) **Real-Time Scheduling**

«Customer Name» shall have the right to submit new or modified schedules
in real-time for the Slice portion of their schedules in accordance with
the parameters specified in Section 4 below.

*End **Slice/Block** Template*

\(c\) **After The Fact**

BPA and «Customer Name» agree to reconcile all transactions, schedules
and accounts at the end of each month (as early as possible within the
first 10 calendar days of the next month). BPA and «Customer Name» will
verify all transactions per this Agreement, as to product or type of
service, hourly amounts, daily and monthly totals, and related charges.

*Include in **Slice/Block** template*

**3. SLICE SCHEDULING REQUIREMENTS** *(4/4/08 Version -- Slice)*

\(a\) For the purposes of sections 3 and 4, the following definitions
shall be incorporated from Exhibit M, Slice Computer Application and
Implementation Procedures, by reference.

\(1\) Delivery Request

\(2\) Input Variables

\(3\) Simulated Output Energy Schedules

> \(b\) «Customer Name» shall be responsible for arranging the delivery
> of its Slice Output to its ultimate destination on an hourly basis.
> Schedule submissions to Power Services will primarily be via Power
> Services approved electronic methods, which may include Slice specific
> interfaces. However, other Power Services agreed upon submission
> methods (verbal, fax, etc.) are acceptable if electronic systems are
> temporarily not available. Transmission scheduling arrangements are
> handled under separate agreements/provisions with the designated
> transmission provider, and may not necessarily meet the same
> requirements as Power Services scheduling arrangements.

*[Reviewer's Note]{.underline}: The concept of period-average or
period-ending Delivery Limits will be further developed in upcoming
product discussions.*

> \(c\) Schedules of Slice Output submitted to Power Services by
> «Customer Name» for preschedule shall comply with period-average and
> period ending Delivery Limits and operating limits established in the
> Simulator, which may include period-ending storage bounds, and
> period-average discharge and generation values.
>
> \(d\) The timeline within which Power Services shall approve or deny
> «Customer Name»'s Delivery Requests, as represented by «Customer
> Name»'s E-tags, shall conform to Power Services then current
> preschedule and real-time scheduling guidelines as specified in
> Section 4 below.

[]{.mark}

1.  For the purpose of approving requests for deliveries of Slice Output
    Power Services shall approve valid E-tags, as described in section
    3(d)(2) below, «Customer Name» submits to Power Services prior to
    the Power Services scheduling deadline, as specified in Section 4
    below.

> \(2\) Valid Power Service E-tags shall (1) identify BPA-Power Service
> as the generation providing entity, (2) identify «Customer Name» as
> first downstream PSE, (3) reflect total E-tag MW amounts that are less
> than or equal to «Customer Name»'s Delivery Requests. Valid Balancing
> Authority E-tags have different standards (such as valid OASIS
> numbers, etc.) than valid Power Service E-tags.
>
> \(3\) The Power Services Slice Scheduler shall have the sole,
> unilateral discretion to accept or deny E-tags «Customer Name» submits
> to Power Services after the Power Services scheduling deadline,
> regardless of the reason for the late submission, and irrelevant of
> submission method (electronic, verbal, fax, etc.)
>
> \(4\) Changes to tagged energy amounts required by the Balancing
> Authority for reliability purposes shall be accommodated by Power
> Services and «Customer Name» at the time of such notification by the
> Balancing Authority.
>
> \(e\) «Customer Name» shall be responsible for verifying the sum of
> its tagged and non-tagged energy schedules (e.g., transmission loss
> schedules, etc., that are not tagged) is equal to its Delivery Request
> for each delivery hour.
>
> \(1\) «Customer Name» shall be have the right to submit adjusted Input
> Variables to PS, pursuant to section 4(a) below, in order to alter the
> associated Simulated Output Energy Schedules within established
> Delivery Limits, such that «Customer Name»'s Delivery Request is equal
> to the sum of its tagged and non-tagged energy amounts for each
> delivery hour.
>
> \(2\) For each delivery hour, the amount «Customer Name»'s hourly
> tagged and non-tagged energy amount is in excess of its Delivery
> Request shall be subject to the UAI charge, and the amount «Customer
> Name»'s hourly tagged and non-tagged energy amount is less than its
> Delivery Request shall be forfeited.

4\. SCHEDULING DEADLINES

\(a\) Input Variables Submissions Affecting Each Delivery Hour

> «Customer Name» shall have until 15 minutes prior to the start of each
> delivery hour to submit revised Input Variables to PS in order to
> affect the associated Simulated Output Energy Schedules for that
> delivery hour. The Power Services Slice Scheduler shall have the sole,
> unilateral discretion to reject for any reason «Customer Name»'s Input
> Variables associated with the upcoming delivery hour that are
> submitted to Power Service after 15 minutes prior to the start of the
> start of that delivery hour.

\(b\) Real-Time E-Tag Submissions Affecting Each Delivery Hour

> Power Service shall approve valid E-tags, as described in section
> 3(d)(2) above, that affect each delivery hour and are submitted to PS
> by «Customer Name» prior to the Power Service E-tag scheduling
> deadline, which is 30 minutes prior to the start of that delivery
> hour. The Power Services Slice Scheduler shall have the sole,
> unilateral discretion to accept or deny E-tags «Customer Name» submits
> for each delivery hour after the Power Service scheduling deadline for
> that delivery hour, regardless of the reason for the late submission,
> and irrelevant of submission method (electronic, verbal, fax, etc.)
> Tag changes mandated by the Balancing Authority for reliability
> reasons will be managed pursuant to Section 3(d)(4) above.
>
> \(c\) **Preschedule E-Tag Submissions**
>
> Unless otherwise mutually agreed, all «Customer Name» preschedule
> E-Tags will be submitted to Power Services according to NERC
> instructions and deadlines for E-tagging, as specified or modified by
> the BA and WECC.

*End **Slice/Block** Template*

*[Reviewer's Note]{.underline}: Additional consideration for each
product may be necessary if customer is purchasing RSS.*

**5. SCHEDULING NON-FEDERAL POWER**

*[Reviewer's Note]{.underline}: This section is yet to be developed and
may be dependent on the note above relating to RSS.*

**6. REVISIONS**

> BPA may unilaterally revise this exhibit: (a) to implement changes
> that BPA determines are necessary to allow it to meet its power and
> scheduling obligations under this Agreement or (b) to comply with
> requirements of the WECC, NAESB, or NERC, or their successors or
> assigns.
>
> Revisions are effective 45 days after BPA provides written notice of
> the revisions to «Customer Name» unless, in BPA's sole judgment, less
> notice is necessary to comply with an emergency change to the
> requirements of the WECC, NAESB, NERC, or their successors or assigns.
> In this case, BPA shall specify the effective date of such revisions.

(PS«X/LOC»- «File Name with Path».DOC) «mm/dd/yy» *{[Drafter's
Note]{.underline}: Insert date of finalized contract here}*

**Exhibit G***(02/29/08 Version)*

**PRINCIPLES OF NON-FEDERAL TRANSFER SERVICE**

*[Drafter's Note]{.underline}: Include the following exhibit only for
Transfer Service customers.*

As provided by section 11(f)(6) of the body of this Agreement and BPA's
Long Term Regional Dialogue Final Policy, July 2007, or any other later
revision of that policy, if «Customer Name» acquires non-federal
resources to serve its retail load above its established RHWM, BPA\'s
support and assistance to «Customer Name» shall be consistent with the
following principles:

1\. **Established Caps and Limitations**

> BPA shall provide financial support for the transmission capacity
> associated with non-federal resource purchases to all Transfer Service
> customers up to a maximum of 41 megawatts per fiscal year, cumulative
> over the duration of the agreement. This cumulative megawatt limit is
> shown in the table below.

  -----------------------------------------------------------------------
  Fiscal Year           Per Year MW Limit       Cumulative MW Limit
  --------------------- ----------------------- -------------------------
  FY 2012               41                      41

  FY 2013               41                      82

  FY 2014               41                      123

  FY 2015               41                      164

  FY 2016               41                      205

  FY 2017               41                      246

  FY 2018               41                      287

  FY 2019               41                      328

  FY 2020               41                      369

  FY 2021               41                      410

  FY 2022               41                      451

  FY 2023               41                      492

  FY 2024               41                      533

  FY 2025               41                      574

  FY 2026               41                      615

  FY 2027               41                      656

  FY 2028               41                      697
  -----------------------------------------------------------------------

**2.** Application of section 11(f)(6) of body of this Agreement shall
be on a first come, first served basis in each year based on the date
each request is received by BPA. Requests not met, in whole or in part,
in any Fiscal Year will have priority over subsequent requests the
following year. Once granted, BPA shall honor such request for the
duration of the resource acquisition period.

**3. Process and Parameters For Initially Choosing A Non-Federal
Resource**

> \(a\) BPA obtains Transfer Service from Third Party Transmission
> Providers pursuant to OATT Network Integration Transmission Service.
> Additionally, BPA acquires firm transmission for all load service
> obligations incurred. Therefore, BPA shall, on behalf of «Customer
> Name», pursue Network Resource designation, as defined in the FERC
> OATT. BPA shall provide all information the Third Party Transmission
> Provider requires to evaluate the Network Resource designation
> request. «Customer Name» shall provide all relevant information BPA
> determines is required and necessary to submit an application for
> designation of the resource as a Network Resource per section 29 of
> the OATT.
>
> \(b\) «Customer Name» shall notify BPA of its intent and/or actions to
> acquire or purchase a non-federal resource at least one year prior to
> delivery. Such acquisition or purchase shall be for a period of no
> less than one year in duration.
>
> \(c\) If BPA's existing Transfer Service to «Customer Name» is
> pursuant to a non-OATT contractual arrangement, BPA shall pursue all
> reasonable arrangements, including but not limited to, OATT service,
> sufficient to enable «Customer Name» to utilize the non-federal
> resource to serve its load.
>
> \(d\) BPA shall not be liable to «Customer Name» in the event that
> Network Resource designation cannot be obtained.
>
> \(e\) BPA shall not obtain or pay for Transfer Service for «Customer
> Name»'s undesignated non-federal resources or non-federal resources
> with a commitment of less than one year. The limitations in this
> principle 3 do not pertain to market purchases and the use of
> secondary network transmission, which are addressed below in
> principle 15.

**4.** «Customer Name» shall provide BPA all information BPA determines
is reasonably necessary to administer firm network transmission service
over the Third Party Transmission Provider's system.

**5.** BPA shall only pay the capacity costs associated with
transmission service to «Customer Name» over the transmission facilities
of the Third Party Transmission Provider that either (a) interconnect
directly to «Customer Name»'s facilities or (b) interconnect to BPA
transmission facilities which subsequently interconnect with «Customer
Name»'s facilities. «Customer Name» shall arrange for, and pay any costs
associated with, the delivery of non-federal power to an interconnection
point with the Third Party Transmission Provider, including obtaining
and paying for firm transmission across all intervening transmission
systems.

**6.** «Customer Name» shall pay a portion of the costs of all Ancillary
Services necessary to deliver any non-federal resource to serve its
load. The Ancillary Service costs imposed by the Third Party
Transmission Provider shall be apportioned between BPA and «Customer
Name» based on either:

> \(a\) metered/scheduled quantities of the non-federal resource,
> expressed as a percentage of total load, multiplied by the total costs
> assessed BPA by the Third Party Transmission Provider; or,
>
> \(b\) actual charges assessed by the Third Party Transmission
> Provider.
>
> However, BPA shall treat the cost of load regulation service
> consistent with the load regulation service cost as described in
> section 11(f)(1)(A) of the body of this Agreement. BPA shall be
> responsible for the cost of generation supplied reactive power, and
> «Customer Name» shall be responsible for any generation imbalance
> costs, if any, related to «Customer Name»'s non-federal resource.

**7.** «Customer Name» shall be responsible for the costs of all other
transmission services for non-federal deliveries not included in
principles 5 and 6 above, including, but not limited to: redispatch,
congestion management costs, system and facility study costs associated
with adding the non-federal generation as a network resource,
distribution and low-voltage charges, if applicable and real power
losses.

**8.** «Customer Name» shall be responsible for all costs of
interconnecting generation to a transmission system.

**9.** «Customer Name» shall be responsible for acquiring transmission
services from BPA, including wheeling for non-federal resources. If
«Customer Name» does not require transmission services from BPA for
wheeling non-federal resources, «Customer Name» shall be responsible for
a pro-rata share of the Third Party Transmission Provider transmission
costs that BPA incurs to serve «Customer Name».

**10.** «Customer Name» shall be responsible for all integration
services to support its non-federal resources:

> \(a\) in accordance with all requirements of the host Balancing
> Authority and/or Third Party Transmission Provider, and
>
> \(b\) which are necessary for designation of the non-federal resource
> as a Network Resource.

**11.** As necessary, «Customer Name» shall meet all resource metering
requirements including compliance with BPA standards and any
requirements of the generation host Balancing Authority and/or Third
Party Transmission Provider.

**12.** The Parties shall cooperate to establish the protocols,
procedures, data exchanges or other arrangements BPA deems reasonably
necessary to support the transmission of «Customer Name»'s non-federal
resource(s).

**13.** Unless otherwise agreed, «Customer Name» shall be responsible
for managing any non-federal resource and shall schedule power
consistent with Exhibit F, Transmission Scheduling Service.

**14.** BPA shall have no obligation to pay for Transfer Service for
non-federal power to serve any portion of «Customer Name»'s retail load
that «Customer Name» is obligated to serve with federal power pursuant
to this Agreement.

**15.** Once «Customer Name»'s non-federal resource has been designated
as a Network Resource, BPA will not undesignate «Customer Name»'s
Network Resource for marketing purposes. Also, once such Network
Designation has been made, «Customer Name» may make market purchases to
displace the Network Resource, which BPA shall schedule on Secondary
Network Service, provided that:

> \(a\) such market purchases are at least one day in duration;
>
> \(b\) the megawatt amount of the market purchase does not exceed the
> amount of the designated Network Resource that «Customer Name» would
> have scheduled to its load;
>
> \(c\) such market purchases are only scheduled in preschedule
> consistent with section 4(a) of Exhibit F, Transmission Scheduling
> Service;
>
> \(d\) «Customer Name» does not, under any circumstances, remarket its
> designated Network Resource or perform any other operation that would
> cause BPA to be in violation of its obligations under the Third Party
> Transmission Providers OATT;
>
> \(e\) «Customer Name» is responsible for any additional energy
> imbalance, redispatch, and/or UAI charges that result from a
> transmission curtailment that impacts the resulting Secondary Network
> Schedule; and
>
> \(f\) any RSS products that «Customer Name» has purchased from BPA are
> not applied to the market purchase(s).

**16.** These principles will be the basis for a separate agreement BPA
shall offer to «Customer Name» to support the Transfer Service of
«Customer Name»'s non-federal resource. BPA shall include terms specific
to a particular non-federal resource in exhibits to the separate
agreement, with a separate exhibit for each non-federal resource.
«Customer Name» is under no obligation to accept this separate agreement
or the exhibit for the particular non-federal resource and BPA is not
bound to acquire or pay for Transfer Service for non-federal resources
if «Customer Name» does not accept the separate agreement or the exhibit
for the particular non-federal resource.

(PS«X/LOC»- «File Name with Path».DOC) «mm/dd/yy» *{[Drafter's
Note]{.underline}: Insert date of finalized contract here}*

**Exhibit H***(04/06/08 Version)*

**RENEWABLE ENERGY CERTIFICATES AND CARBON ATTRIBUTES**

**1. DEFINITIONS**

> "Environmental Attribute(s)"*(04/04/08 Version)* means the current or
> future credits, benefits, emission reductions, offsets and allowances
> attributable to the generation of energy from a specific renewable
> resources. One megawatt hour of energy generation from such renewable
> resource is associated with1 megawatt hour of Environmental
> Attributes.
>
> "Renewable Energy Certificates" or "RECs"*(03/20/08 Version)* means
> the certificates that document the ownership of Environmental
> Attributes.
>
> "Tier 1 RECs"*(04/04/08 Version)* means the Environmental Attributes
> composed of a blend, by fuel source, based on annual generation of the
> specified renewable resources listed in section 2 below.
>
> "Tier 2 RECs"*(03/27/08 Version)* means the Environmental Attributes
> generated by specified renewable resources which BPA uses to establish
> the Tier 2 rates.
>
> "Environmentally Preferred Power RECS" or "EPP RECs"*(04/01/08
> Version)* means the portion of BPA's Tier 1 RECs that is equal to
> 130 percent of the annual average of environmentally preferred power
> (EPP) contracted for as of October 1, 2009, for FYs 2010 and 2011
> under Subscription power sales contracts containing rights to
> Environmental Attributes through FY 2016.

**2. BPA'S TIER 1 REC INVENTORY**

> BPA shall use its share of generation from the following renewable
> resources to establish the Tier 1 REC inventory: Foote Creek I, Foote
> Creek II, Stateline, Condon, Klondike I, Klondike III, and Ashland
> Solar. BPA shall maintain a current resource list of renewable
> resources on a publicly accessible BPA website and may update this
> list at any time. BPA shall calculate its inventory of Tier 1 RECs
> annually and after-the-fact based on energy generated by listed
> resources during the previous calendar year.

**3. «CUSTOMER NAME»'S SHARE OF TIER 1 RECS**

> Beginning April 15, 2012, and by April 15 every year thereafter over
> the duration of this Agreement, BPA shall transfer to «Customer Name»,
> at no additional charge or premium, a pro rata share of Tier 1 RECs
> based on «Customer Name»'s RHWM. The amount of Tier 1 RECs BPA
> transfers shall be subject to the amount of available Tier 1 REC
> inventory, excluding any EPP RECs.
>
> Any Tier 1 RECs BPA provides to «Customer Name» on April 15, 2012,
> shall be limited to those generated October 1, 2011, through
> December 31, 2011.

**4. TRANSFER, TRACKING, AND MANAGEMENT OF TIER 1 RECS**

> Subject to BPA's determination that the commercial renewable energy
> tracking system Western Renewable Energy Generation Information System
> (WREGIS) is adequate as a tracking system, BPA shall transfer
> «Customer Name»'s share of Tier 1 RECs to «Customer Name» via WREGIS.
> If BPA determines that WREGIS is not adequate as a tracking system,
> then BPA may change commercial tracking systems with one year advance
> notice to «Customer Name». In such case, the parties shall establish a
> comparable process for BPA to provide «Customer Name» its share of
> Tier 1 RECs.
>
> Starting on July 15, 2011, and by July 15 prior to each rate period
> through the duration of this Agreement, «Customer Name» shall notify
> BPA which one of the following three options it will choose for the
> transfer and management of «Customer Name»'s share of Tier 1 RECs for
> each upcoming rate period:
>
> \(a\) BPA shall transfer Customer's share of Tier 1 RECs into
> «Customer Name»'s own WREGIS account, which shall be established by
> «Customer Name»; or
>
> \(b\) BPA shall transfer «Customer Name»'s share of Tier 1 RECs into a
> BPA-managed WREGIS subaccount, established by BPA on «Customer Name»'s
> behalf. «Customer Name» shall inform BPA prior to April 15 each year
> as to how it wants its Tier 1 RECs: retired or banked; or,
>
> \(c\) «Customer Name» shall give BPA the authority to market
> Customer's share of Tier 1 RECs on «Customer Name»'s behalf. BPA shall
> annually credit «Customer Name» for «Customer Name»'s pro rata share
> of revenues generated by such sales on its April bill, issued in May.
>
> If «Customer Name» fails to notify BPA of its Tier 1 REC election by
> July 15 before the start of each rate period, BPA shall market
> «Customer Name»'s share of Tier 1 RECs. In this instance BPA shall
> annually credit «Customer Name» for «Customer Name»'s pro rata share
> of revenues generated by such sales on «Customer Name»'s April bill
> issued by BPA in May.

**5. FEES**

> BPA shall pay any reasonable fees associated with (i) the
> establishment of any subaccounts in «Customer Name»'s name and
> (ii) the provision of «Customer Name»'s share of Tier 1 RECs pursuant
> to sections 4(a) and 4(b) above. «Customer Name» shall pay all other
> fees associated with any WREGIS or successor commercial tracking
> system.

**6. TIER 2 RECS**

> BPA shall market the Environmental Attributes and RECs associated with
> generation from Tier 2 resources acquired after October 1, 2011,
> consistent with the terms and conditions in the TRM.

**7. CARBON ATTRIBUTES**

> In the absence of carbon regulations or legislation directly affecting
> BPA, BPA intends to convey the value of any future carbon attributes
> associated with Tier 1 resources, including but not limited to carbon
> assets or credits, to «Customer Name» on a pro rata basis with all
> other CHWM contract holders. This value may be conveyed as a revenue
> credit after BPA markets such attributes.

**8. BPA'S RIGHT TO TERMINATE «CUSTOMER NAME»'S RECS**

> Consistent with any federal regulation or legislation addressing
> carbon or any form of renewable energy attribute(s) applicable to BPA
> which includes compliance costs, BPA may, upon 5-years notice to
> «Customer Name», terminate «Customer Name»'s contract rights to Tier 1
> RECs under section 3 above.

**Exhibit I**

**CRITICAL SLICE AMOUNTS**

**1. ESTABLISHING CRITICAL INVENTORY AMOUNT** *(4/2/08 Version)*

> No later than 30 days prior to the start of each Fiscal Year,
> beginning with FY 2012, and no later than 30 days prior to each Fiscal
> Year thereafter, BPA shall determine the annual and monthly Critical
> Inventory Amounts for each such Fiscal Year. Such amounts shall be as
> specified in the table below. The monthly Critical Inventory Amounts
> expressed as megawatt-hours shall be computed as the product of the
> monthly Critical Inventory Amount in average megawatts multiplied by
> the number of hours in the month as defined in section 4 of Exhibit G,
> Additional Products and Special Provisions. A new table shall be added
> to this exhibit for each Fiscal Year.
>
> FY: *XXXX*
>
> Critical Inventory Amount: *X,XXX* annual aMW(rounded to an integer
> value)

  --------------------------------------------------------------------------------
           Oct   Nov   Dec   Jan   Feb   Mar   Apr   May   Jun   Jul   Aug   Sep
  -------- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- -----
  Energy                                                                     
  (aMW)                                                                      

  Energy                                                                     
  (MWh)                                                                      
  --------------------------------------------------------------------------------

> Note: Fill in the table above with average megawatt and megawatt-hour
> values rounded to an integer.

**2. ESTABLISHING CRITICAL SLICE AMOUNTS** *(4/2/08 Version)*

> No later than thirty (30) days prior to the start of each Fiscal Year,
> beginning with FY 2012, and no later than 30 days prior to each Fiscal
> Year thereafter, the annual average megawatt and monthly average
> megawatt Critical Inventory Amounts determined in section 1 above
> shall be multiplied by the Slice Percentage as stated in Exhibit K,
> Slice Percentage in order to determine the annual average megawatt and
> monthly average megawatt Critical Slice Amounts, as specified in the
> table below. The monthly Critical Slice Amounts expressed as
> megawatt-hours shall be computed as the product of the monthly
> Critical Slice Amount in average megawatts multiplied by the number of
> hours in the month as defined in section 4 of Exhibit G, Additional
> Products and Special Provisions. A new table shall be added to this
> exhibit for each Fiscal Year.
>
> FY: *XXXX*
>
> Critical Slice Amount: *XXX.XXX* annual aMW (rounded to the third
> decimal digit)

  --------------------------------------------------------------------------------
           Oct   Nov   Dec   Jan   Feb   Mar   Apr   May   Jun   Jul   Aug   Sep
  -------- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- -----
  Energy                                                                     
  (aMW)                                                                      

  Energy                                                                     
  (MWh)                                                                      
  --------------------------------------------------------------------------------

> Note: Fill in the table above with average megawatt values rounded to
> 3 decimal digits and megawatt-hour values rounded to an integer.

**3. REVISIONS** *(4/2/08 Version)*

> This Exhibit I shall be revised unilaterally by BPA no later than
> 30 days prior to the start of each Fiscal Year beginning with FY 2012.

**Exhibit J**

**DETERMINATION OF INITIAL SLICE PERCENTAGE**

1\. definitions *(4/2/08 Version)*

The following definitions apply only to this Exhibit J, Determination of
Initial Slice Percentage.

> ( ) "Base Critical Slice Amount" means 1,850 annual aMW which
> represents the Base Slice Percentage multiplied by a deemed 7,400
> annual aMW Tier 1 Resource.
>
> ( ) "Base Slice Percentage" means twenty-five (25) percent.

( ) "Maximum Critical Slice Amount" means the maximum Critical Slice
Amount that «Customer Name» may request to purchase from BPA, and is
calculated based upon «Customer Name»'s Net Requirement, pursuant to
section 2(a) below, expressed as an integer annual aMW value.

( ) "Selected Critical Slice Amount" means the Critical Slice Amount
that «Customer Name» may request to purchase from BPA, and is used only
to determine the Initial Slice Percentage, expressed as a integer annual
aMW value. «Customer Name»'s Selected Critical Slice Amount shall not
exceed the Maximum Critical Slice Amount.

( ) "Slice Parties" means «Customer Name» and all other Slice/Block
purchasers.

( ) "Unsold Amount" means that portion of the Base Critical Slice Amount
that has not been selected or sold to eligible Slice Parties with a
signed Slice/Block Power Sales Agreement, as computed in section 3(c)
below, rounded to a integer annual aMW value.

( ) "Unsold Slice Percentage" means the percent of the Unsold Amount, if
any, that has not been selected or sold to Slice Parties with a signed
Slice/Block Power Sales Agreement, rounded to a 3 decimal digit
percentage (xx.xxx%).

2\. determination of initial Slice percentage *(4/2/08 Version)*

The following procedure shall be used to determine the Initial Slice
Percentage.

\(a\) Maximum Critical Slice Amount

No later than August 1, 2008, BPA shall provide to «Customer Name» a
forecast of «Customer Name»'s FY 2012 Net Requirement. The forecasted
FY2012 Net Requirement is *xx.xxx* aMW. The Maximum Critical Slice
Amount is equal to:

(Forecasted FY 2012 Net Requirement) x (0.70) = *xxx* aMW.

*Drafters Note: The above values will be entered by BPA prior to
offering the contract in August 2008..*

\(b\) Good Faith Estimate of Selected Critical Slice Amount

No later than August 15, 2008, «Customer Name» shall provide written
notification to BPA of its good faith estimate of its Selected Critical
Slice Amount.

\(c\) Total Good Faith Estimates of Selected Critical Slice Amounts

No later than September 1, 2008, BPA shall sum the good faith estimates
of the Selected Critical Slice Amounts for all customers purchasing the
Slice/Block product.

\(d\) Total Good Faith Estimates of Selected Critical Slice Amounts Less
Than or Equal To Base Critical Slice Amount

If the sum of the good faith estimates of the Selected Critical Slice
Amounts is less than or equal to the Base Critical Slice Amount, then
BPA shall notify «Customer Name» no later than September 15, 2008, that
no adjustment to its good faith estimate of its Selected Critical Slice
Amount will be needed. In this event, «Customer Name»'s good faith
estimate of it's Selected Critical Slice Amount shall be used to
calculate its Initial Slice Percentage pursuant to section 2(g) below,
and the terms of section 2(f) below shall not apply.

\(e\) Total Good Faith Estimates of Selected Critical Slice Amount
Greater Than Base Critical Slice Amount

If the sum of the good faith estimates of the Selected Critical Slice
Amounts is greater than the Base Critical Slice Amount, then BPA shall
notify «Customer Name» in writing no later than September 15, 2008 of
the amount by which the sum of the good faith estimates exceeds the Base
Critical Slice Amount ("Oversubscribed Amount"), and that an adjustment
to its Selected Critical Slice Amount and the Selected Critical Slice
Amounts requested by other Slice Parties is needed.

\(f\) Allocation Procedures to Adjust Selected Critical Slice Amounts

If the Oversubscribed Amount pursuant to section 2(e) above is greater
than zero (0) then «Customer Name» and other purchasers of the
Slice/Block Product shall use reasonable efforts to adjust their
Selected Critical Slice Amounts such that the Oversubscribed Amount is
reduced to zero, as described in section 2(f)(1) below. In the event
«Customer Name» and other purchasers of the Slice/Block Product are
unable to agree on such adjustment, then BPA shall make an adjustment
using the procedure in section 2(f)(2) below.

\(1\) Slice Parties Allocate Among Themselves

The Slice Parties that have submitted good faith estimates of their
Selected Critical Slice Amounts shall have thirty (30) days from the
date of BPA's written notice pursuant to section 2(e) to determine an
adjustment of the Oversubscribed Amount that results in Selected
Critical Slice Amounts that sum to no more than the Base Critical Slice
Amount and results in each Slice Party having a Selected Critical Slice
Amount that is less than or equal to its Maximum Critical Slice Amount.
If the Slice Parties agree upon an adjustment that conforms with the
above limitations, they shall submit their adjusted amounts to BPA no
later than October 15, 2008, in writing, signed by all Slice Parties,
specifying the Selected Critical Slice Amount for «Customer Name» and
other purchasers of the Slice/Block Product. If the «Customer Name» and
other purchasers of the Slice/Block Product are unable to agree on an
adjustment before October 15, 2008, then they shall inform BPA in
writing by that date and BPA shall make an adjustment pursuant to
section 2(f)(2) below.

\(2\) BPA Allocation Procedures for Oversubscribed Amount

BPA shall calculate an Adjustment Percentage ("AP") by dividing the Base
Critical Slice Amount by the sum of the good faith estimates of the
Selected Critical Slice Amounts submitted by «Customer Name» and other
purchasers of the Slice/Block Product pursuant to section 2(b) above.
BPA shall then multiply «Customer Name»'s good faith estimate of its
Selected Critical Slice Amount by the AP to determine «Customer Name»'s
Selected Critical Slice Amount.

\(g\) Calculation of Initial Slice Percentage

Following the determination of «Customer Name»'s Selected Critical Slice
Amount pursuant to section 2(d), 2(f)(1) or 2(f)(2) above, «Customer
Name»'s Initial Slice Percentage shall be rounded to the seven digit
decimal quotient obtained by dividing its Selected Critical Slice Amount
by the Base Critical Inventory Amount, and expressed as a percentage.
The Initial Slice Percentage shall be set forth in Exhibit K, Slice
Percentage.

3\. ADJUSTMENT PROCEDURES for unSOLD amountS OF SLICE

No later than January 30, 2011, BPA shall make available to Slice
Parties that have a Slice/Block Power Sales Agreement in effect as of
January 1, 2011, any Unsold Amount using the procedure below.

\(a\) Compute Unsold Slice Percentage

The Unsold Slice Percentage shall be computed by subtracting the sum of
all Initial Slice Percentage values of all Slice Parties that have an
executed Slice/Block Power Sales Agreement as of January 1, 2011 from
the Base Slice Percentage.

\(b\) Compute Unsold Amount

BPA shall compute the Unsold Amount, expressed as an integer aMW value,
by multiplying the forecasted FY 2012 Critical Inventory Amount by the
Unsold Slice Percentage.

\(c\) Unsold Amount Less Than or Equal To Zero

If the Unsold Amount is less than or equal to zero, then BPA shall
notify «Customer Name» no later than January 15, 2011, that no
adjustment for Unsold Amounts shall occur under this section 3, and the
Initial Slice Percentage will remain as set forth in Exhibit K, Slice
Percentage.

\(d\) Unsold Amount Greater Then Zero

If the Unsold Amount is greater than zero, then BPA shall provide
written notice to «Customer Name» no later than January 15, 2011 of the
Unsold Amount available.

\(1\) Slice Parties Determine any Adjustment Themselves

«Customer Name» and the other Slice Parties shall no later than
February 15, 2011, determine an adjustment of the Unsold Amount that,
when added to the Selected Critical Slice Amounts of all Slice Parties
with an executed Slice/Block Power Sales Agreement as of January 1,
2011, sums to no more than the product of the Base Slice Percentage
multiplied by the forecasted FY 2012 Critical Inventory Amount and
results in each Slice Party having a Selected Critical Slice Amount that
is no more than «Customer Name» Maximum Critical Slice Amount. If the
Slice Parties agree upon adjustments that conform with the above
limitations, they shall submit the adjustments in writing to BPA no
later than February 15, 2011, signed by all Slice Parties, that sets out
the name and Selected Critical Slice Amount for each Slice Party. If the
Slice Parties are unable to agree on adjustments on or before
February 15, 2011, then «Customer Name» shall then provide written
notification to BPA no later than February 22, 2011 if it elects to
participate in BPA's adjustment of the Unsold Amount or not, pursuant to
section 3(d)(2) below. BPA shall then adjust the Unsold Amount pursuant
to section 3(d)(2) below.

\(2\) BPA's Adjustment Procedure for Unsold Slice Amounts

BPA shall adjust the Selected Critical Slice Amount of each Slice Party
providing written notice of its election to participate in an adjustment
by adding the Unsold Amount to each such Slice Parties Selected Critical
Slice Amount on a pro rata basis, in increments of at least 1 aMW per
participating Slice Party, based on their respective Selected Critical
Slice Amounts established pursuant to section 2 above.

\(e\) Determination of Adjusted Initial Slice Percentage

If «Customer Name»'s Selected Critical Slice Amount has been increased
pursuant to section 3(d)(1) or 3(d)(2) above, «Customer Name»'s Initial
Slice Percentage shall be equal to the seven digit decimal quotient
obtained by dividing its increased Selected Critical Slice Amount by the
Base Critical Inventory Amount, expressed as a percentage, and set forth
in a revision to Exhibit K, Slice Percentage.

If «Customer Name»'s Selected Critical Slice Amount is not adjusted
pursuant to section 3(d)(1) or 3(d)(2) above, «Customer Name»'s Initial
Slice Percentage shall be remain as set forth in Exhibit K, Slice
Percentage.

**Exhibit K**

**SLICE PERCENTAGE**

***(4/8/08 Version)***

1\. Definitions

The following term definitions apply only to this Exhibit K, Slice
Percentage.

\(a\) "Average Other Augmentation" means the sum of the Other
Augmentation amounts from Exhibit L, section 2(b), for each FY of the
Rate Period divided by the number of FYs in the Rate Period, rounded to
a whole number expressed in aMW.

\(b\) "Interim Critical Slice Amount" means the product of the «Customer
Name»'s Initial Slice Percentage multiplied by the Fiscal Year annual
aMW Critical Inventory Amount as stated in Exhibit I, Critical Slice
Amounts, multiplied by the Fiscal Year Other Augmentation Adjustment
Ratio as stated in section 3 below, rounded to 3 decimal digits,
expressed in annual aMW.

> \(c\) "Interim Firm Power at Tier 1 Rates" means the lesser of the
> «Customer Name»'s RHWM or «Customer Name»'s Net Requirement as
> determined in Exhibit A, Net Requirements, expressed in annual aMW

\(d\) "Other Augmentation Adjustment Ratio" or "OAAR" means the ratio
that is determined by dividing the Base Critical Inventory Amount by the
sum of the Base Critical Inventory Amount plus the Average Other
Augmentation. The result shall be expressed as a 5 digit decimal number
and entered into the table in section 3 below. This computation results
in the OAAR being equal to one (1) when the Average Other Augmentation
is zero (0).

2\. Initial SLICE PERCENTAGE

The Initial Slice Percentage is: *xx.xxxxx* %.

3\. ESTABLISHING The Other Augmentation Adjustment Ratio

No later than 30 days prior to the beginning of each FY, beginning with
FY2012, the Other Augmentation Adjustment Ratio shall be computed for
each FY of the Rate Period and specified in the table below.

  -----------------------------------------------------------------------
  **Fiscal Year**        **Other Augmentation Adjustment Ratio**
  ---------------------- ------------------------------------------------
  FY 2012                *x.xxxxx*

  FY 2013                *x.xxxxx*

  FY 2014                *x.xxxxx*

  FY 2015                *x.xxxxx*

  FY 2016                *x.xxxxx*

  FY 2017                *x.xxxxx*

  FY 2018                *x.xxxxx*

  FY 2019                *x.xxxxx*

  FY 2020                *x.xxxxx*

  FY 2021                *x.xxxxx*

  FY 2022                *x.xxxxx*

  FY 2023                *x.xxxxx*

  FY 2024                *x.xxxxx*

  FY 2025                *x.xxxxx*

  FY 2026                *x.xxxxx*

  FY 2027                *x.xxxxx*

  FY 2028                *x.xxxxx*
  -----------------------------------------------------------------------

4 DETERMINATION OF Slice percentage

No later then 30 days prior to the beginning of each Fiscal Year,
beginning with FY 2012, BPA shall determine «Customer Name»'s Slice
Percentage using the procedure defined below.

\(a\) Determination of Slice Percentage when Interim Power at Tier 1
Rates is Greater Than or Equal To Interim Critical Slice Amount

If the Interim Firm Power at Tier 1 Rates is greater than or equal to
the Interim Critical Slice Amount, then «Customer Name»'s Slice
Percentage shall be set equal to the Initial Slice Percentage multiplied
by the OARR. «Customer Name»'s Slice Percentage so computed will be
entered into the table in section 4(c) below as a percentage rounded to
the fifth digit.

\(b\) Determination of Slice Percentage when Interim Power at Tier 1
Rates is Less Than Interim Critical Slice Amount

If the Interim Firm Power at Tier 1 Rates is less than the Interim
Critical Slice Amount, then «Customer Name»'s Slice Percentage shall be
set equal to «Customer Name»'s Interim Firm Power at Tier 1 Rates
divided by the Fiscal Year annual aMW Critical Inventory Amount as
stated in Exhibit I, Critical Slice Amounts, multiplied by the OARR.
«Customer Name»'s Slice Percentage so computed will be entered into the
table in section 4(c) below as a percentage rounded to the fifth digit.

\(c\) Slice Percentage

«Customer Name»'s Slice Percentage as determined pursuant to
sections 4(a) or 4(b) above shall be entered into the table below for
each Fiscal Year.

  -----------------------------------------------------------------------
  **Fiscal Year**               **Slice Percentage**
  ----------------------------- -----------------------------------------
  FY 2012                       *xx.xxxxx* %

  FY 2013                       *xx.xxxxx* %

  FY 2014                       *xx.xxxxx* %

  FY 2015                       *xx.xxxxx* %

  FY 2016                       *xx.xxxxx* %

  FY 2017                       *xx.xxxxx* %

  FY 2018                       *xx.xxxxx* %

  FY 2019                       *xx.xxxxx* %

  FY 2020                       *xx.xxxxx* %

  FY 2021                       *xx.xxxxx* %

  FY 2022                       *xx.xxxxx* %

  FY 2023                       *xx.xxxxx* %

  FY 2024                       *xx.xxxxx* %

  FY 2025                       *xx.xxxxx* %

  FY 2026                       *xx.xxxxx* %

  FY 2027                       *xx.xxxxx* %

  FY 2028                       *xx.xxxxx* %
  -----------------------------------------------------------------------

5\. REVISIONS

This Exhibit K shall be revised by BPA no later than 30 days prior to
the start of each FY, beginning with FY 2012.

**Exhibit L**

**SLICE SYSTEM RESOURCES**

***(04/8/08 Version)***

1\. Slice System Resources

As stated in the TRM, Slice System Resources consist of the same
resources, contract purchases and obligations as the Tier 1 System
Resources. Except for those generating resources listed as Augmentation
resources, the Slice System Resources shall be identical to the
resources, contract purchases, and obligations listed in the TRM.

2\. Augmentaion of slice system resources

Generating resources listed in the TRM under the section titled
"Augmentation" are not included in the Slice System Resources as named
or listed resources. As such, the amounts of Existing Public
Augmentation and Other Augmentation shall be determined for each FY of
the Rate Period using the procedures below.

\(a\) Existing Public Augmentation

As part of the RHWM process performed prior to each Rate Period, the
total amount of Existing Public Augmentation shall, for each FY of the
Rate Period, be determined pursuant to the TRM. The amount of Existing
Public Augmentation shall be entered into the table below for each FY of
the Rate Period, expressed as an integer value in aMW.

  -----------------------------------------------------------------------
  **Fiscal Year**                    **Existing Public Augmentation**
  ---------------------------------- ------------------------------------
  FY 2012                            *xxx* aMW

  FY 2013                            *xxx* aMW

  FY 2014                            *xxx* aMW

  FY 2015                            *xxx* aMW

  FY 2016                            *xxx* aMW

  FY 2017                            *xxx* aMW

  FY 2018                            *xxx* aMW

  FY 2019                            *xxx* aMW

  FY 2020                            *xxx* aMW

  FY 2021                            *xxx* aMW

  FY 2022                            *xxx* aMW

  FY 2023                            *xxx* aMW

  FY 2024                            *xxx* aMW

  FY 2025                            *xxx* aMW

  FY 2026                            *xxx* aMW

  FY 2027                            *xxx* aMW

  FY 2028                            *xxx* aMW
  -----------------------------------------------------------------------

*Drafters Note: Prior to the start of each Rate Case the RHWM process
will determine for each FY of the Rate Period, the total amount of
augmentation for existing publics, enter this amount into table above.
The table will be left blank until the CHWM/RHWM process for FY2012 &
FY2013 is completed.*

\(b\) Other Augmentation

As part of the RHWM process performed prior to each Rate Period, the
total amount of Other Augmentation for each FY of the Rate Period, shall
be determined by summing the Augmentation amounts for, i) Augmentation
DOE-Richland, ii) Augmentation for New Publics, and iii) Augmentation
for DSI Loads. The amount for each type of Augmentation shall be entered
into the table below for each FY of the Rate Period and summed to
compute a total amount of Other Augmentation. All amounts in the table
below shall be entered as integer values in aMW.

  -----------------------------------------------------------------------
  Fiscal    Augmentation    Augmentation   Augmentation   Other
  Year      for DOE         for New        for DSI Loads  Augmentation
            Richland        Publics                       
  --------- --------------- -------------- -------------- ---------------
  FY 2012   *xxx* aMW       *xxx* aMW      *xxx* aMW      *xxx* aMW

  FY 2013   *xxx* aMW       *xxx* aMW      *xxx* aMW      *xxx* aMW

  FY 2014   *xxx* aMW       *xxx* aMW      *xxx* aMW      *xxx* aMW

  FY 2015   *xxx* aMW       *xxx* aMW      *xxx* aMW      *xxx* aMW

  FY 2016   *xxx* aMW       *xxx* aMW      *xxx* aMW      *xxx* aMW

  FY 2017   *xxx* aMW       *xxx* aMW      *xxx* aMW      *xxx* aMW

  FY 2018   *xxx* aMW       *xxx* aMW      *xxx* aMW      *xxx* aMW

  FY 2019   *xxx* aMW       *xxx* aMW      *xxx* aMW      *xxx* aMW

  FY 2020   *xxx* aMW       *xxx* aMW      *xxx* aMW      *xxx* aMW

  FY 2021   *xxx* aMW       *xxx* aMW      *xxx* aMW      *xxx* aMW

  FY 2022   *xxx* aMW       *xxx* aMW      *xxx* aMW      *xxx* aMW

  FY 2023   *xxx* aMW       *xxx* aMW      *xxx* aMW      *xxx* aMW

  FY 2024   *xxx* aMW       *xxx* aMW      *xxx* aMW      *xxx* aMW

  FY 2025   *xxx* aMW       *xxx* aMW      *xxx* aMW      *xxx* aMW

  FY 2026   *xxx* aMW       *xxx* aMW      *xxx* aMW      *xxx* aMW

  FY 2027   *xxx* aMW       *xxx* aMW      *xxx* aMW      *xxx* aMW

  FY 2028   *xxx* aMW       *xxx* aMW      *xxx* aMW      *xxx* aMW
  -----------------------------------------------------------------------

*Drafters Note: Prior to the start of each Rate Case the RHWM process
will determine the total amount of augmentation for DOE Richland, New
Publics and DSI Loads, enter these amount into table above and then sum
the values to compute the total Other Augmentation. The table will be
left blank until the CHWM/RHWM process for FY2012 & FY2013 is
completed.\
***3. REVISIONS**

> This Exhibit L shall be revised by BPA prior to the beginning of each
> Rate Period.

**Exhibit M**

> **SLICE COMPTER APPLICATION AND IMPLEMENTATION PROCEDURES**

***(04/10/08 Version)***

1.  **DEFINITIONS**

    a.  "Absolute Operating Constraint" means an Operating Constraint
        that cannot be exceeded under any condition.

    b.  "Actual Bypass Spill" means measured amounts of Spill associated
        with lockage, leakage and fish bypass systems, as submitted to
        PS each hour by Project operators.

    c.  "Actual H/K" means the average of a Project's hourly H/Ks
        associated with the previous calendar day, as submitted to PS by
        Project operators.

    d.  "Actual Slice System Generation" or "ASSG" means the actual
        generation produced by the Slice System, or any Slice Subsystem,
        as adjusted to reflect energy received or delivered as System
        Obligations, as applicable, during a given period of time.

    e.  "BOSS Base Amount" means the estimated generation available from
        the BOSS Complex, netted with estimated energy amounts
        associated with System Obligations, Existing Public
        Augmentation, and Other Augmentation, during a given period of
        time.

    f.  "BOSS Deviation Account" means the account PS maintains for the
        purpose of quantifying the cumulative amount, expressed in
        MW-days, «Customer Name»'s hourly BOSS Base schedule deviates
        from the amount determined by multiplying «Customer Name»'s
        Slice Percentage by the hourly BOSS Complex ASSG.

    g.  "BOSS Flex Amount" means the amount by which the Lower Snake
        Complex generation can reasonably be increased or decreased from
        its expected operation each hour, as determined by PS.

    h.  "Calibrated Simulator Discharge" means, for any Simulator
        Project, «Customer Name»'s simulated discharge as adjusted to
        reflect the project's Actual H/K, Actual Bypass Spill, and
        Required Fish Spill, pursuant to section 9 below.

    i.  "Delivery Request" means the amount of Slice Output «Customer
        Name» requests PS make available for delivery for any given
        hour, and shall be equal to the sum of «Customer Name»'s
        Simulated Output Energy Schedules, BOSS Base schedule, BOSS Flex
        schedule, and Additional Energy schedule for each such hour.

    j.  "Elective Spill" means Spill that results from a BPA decision to
        voluntarily route water through a spillway rather than route it
        through available turbines to produce energy, and that is not
        due to an Operating Constraint.

    k.  "Estimated Slice System Generation" means the estimated
        generation produced from the Slice System, or any Slice
        Subsystem, after adjustment for Operating Constraints and System
        Obligations, as applicable, over a given period of time.

    l.  "H/K" means the water-to-energy conversion factor used to
        convert a Project's discharge amount to equivalent energy units.

    m.  "Hard Operating Constraint" means an Operating Constraint that
        may not be exceeded without express consent from Project
        operators, owners, or other federal agencies responsible for
        establishing such Operating Constraints.

    n.  "Hydraulic Link Adjustment" means the adjustment to «Customer
        Name»'s simulated McNary inflow which is associated with the
        difference between «Customer Name»'s simulated Chief Joseph
        discharge and the measured Chief Joseph discharge, pursuant to
        section 10 below.

    o.  "Input Parameters" means the operating parameters and forecasted
        stream flows PS develops as inputs to the Simulator, pursuant to
        section 3 below.

    p.  "Input Variables" means the hypothetical discharge, elevation,
        or generation requests «Customer Name» develops as inputs to the
        Simulator pursuant section 4 below.

    q.  "Lower Snake Complex" or "LSN Complex" means the four
        hydroelectric projects located on the lower reach of the Snake
        River, consisting of Lower Granite, Little Goose, Lower
        Monumental, and Ice Harbor.

    r.  "Megawatt-days" or "MWd" means an amount of electrical energy
        that can be produced or consumed for a period of 24 hours,
        calculated as megawatt-hours divided by 24.

    s.  "Multiyear Hydroregulation Study" means a hydroregulation study
        that simulates the prospective operation of the Slice System
        given a range of stream flow sequences for purposes of
        determining a range of Estimated Slice System Generation values.

    t.  "Operating Rule Curves" or "ORC" means the rule curves
        established for a reservoir pursuant to operating agreements in
        effect, and as modified to reflect Operating Constraints, that
        establish such reservoir's upper most permissible operation
        (upper ORC) or the lowest permissible operation (lower ORC).

    u.  "Power Services Slice Scheduler" or "PS Slice Scheduler" means
        the Power Services employee who manages real-time Slice
        schedules and E-tag submittals, Simulator Input Parameters, and
        related Slice communications.

    v.  "Project(s)" means one or more of the Slice System generating
        resources.

    w.  "Project Storage Bounds" or "PSB" means the maximum and minimum
        Storage Content limits associated with the upper ORC and lower
        ORC in effect at any specified Project.

    x.  "Project Storage Content" means the actual Storage Content
        associated with any specified Project.

    y.  "Required Fish Spill" means the portion of a Project's discharge
        that is spilled to comply with requirements established by
        entities responsible for implementing regional fish passage
        criteria.

    z.  "Simulated Output Energy Schedule(s)" means the amount of energy
        established by the Slice Water Routing Simulator as «Customer
        Name»'s simulated generation from each Simulator Project.

    a.  "Slice Storage Account" or "SSA" means the account maintained by
        PS that records the sum of (i) «Customer Name»'s Grand Coulee
        Storage Offset Account balance, and (ii) the product of
        «Customer Name»'s Slice Percentage and the Grand Coulee Project
        Storage Content.

    b.  "Slice Subsystem" means the Coulee-Chief Complex, the LCOL
        Complex, or the BOSS Complex.

    c.  "Soft Operating Constraint" means an Operating Constraint that
        may be exceeded without express consent from Project operators,
        owners, or other federal agencies responsible for establishing
        such Operating Constraints.

    d.  "Spill" means water that passes a hydroelectric facility without
        going through turbines to produce energy.

    e.  "Storage Content" means the amount of water stored in a
        Project's reservoir, expressed in thousands of second-foot-days
        (KSFD). The Storage Content is typically calculated based on a
        conversion of such reservoir's measured forebay elevation,
        expressed in feet, accomplished through the use of an
        established elevation-to-content conversion table.

    f.  "Storage Offset Account" or "SOA" means the account PS maintains
        that records the amount by which «Customer Name»'s simulated
        Project Storage Content deviates from the actual Project Storage
        Content for each Simulator Project.

2.  **SLICE COMPUTER APPLICATION**

> The Slice Computer Application shall be a proprietary BPA application
> developed and maintained by BPA in consultation with «Customer Name»
> and other Slice purchasers. The Slice Computer Application will
> consist of the Slice Water Routing Simulator and the Balance of Slice
> System Module, as well as the interface and related processes used for
> scheduling, tagging, accounting and communication of Slice energy and
> information, all as described below.

a.  **Slice Water Routing Simulator**

> The Slice Water Routing Simulator (Simulator) shall represent the
> routing of available stream flow through the Coulee-Chief Complex and
> LCOL Complex within established Operating Constraints. The purpose of
> the Simulator is to determine and provide «Customer Name»'s with its
> available Slice Output and Delivery Limits for the Simulator Projects.
> The official version of the Simulator will be kept, maintained, and
> housed within PS. «Customer Name» shall have access to copies of the
> Simulator for the purpose of running hypothetical operating scenarios.

1.  An official PS version of the Simulator shall be initialized and run
    by PS at a specified time each hour for «Customer Name» and each
    Slice purchaser. These studies will establish each Slice purchaser's
    official Simulated Output Energy Schedules, simulated project
    operations, and Delivery Limits for the following delivery hour.

2.  The Simulator shall produce simulated project operations in hourly
    time increments for a 48-hour period, and multiple-hour increments
    for an additional 5 to 7 days. As an example, the Simulator may be
    initialized as of HE1400 and shall produce results in hourly time
    increments for HE1500 of that day through and including HE1400 of
    the second day following the current day, and in multiple-hour
    increments, such as 8-hour average increments, for an additional 5
    to 7 days.

3.  Based on the Input Parameters and Input Variables established per
    sections 3 and 4 below, the Simulator shall compute «Customer
    Name»'s hypothetical discharge, forebay elevation, and generation
    values for each Simulator Project.

4.  The Simulator shall include calculations that reflect approximate
    hydraulic time lags between Simulator Projects.

5.  The Simulator shall include calculations that reflect all applicable
    Operating Constraints in effect and established as Input Parameters
    by PS for each Simulator Project, including requirements necessary
    to achieve Operating Constraints in effect at downstream projects.

6.  The Simulator will include calculations that establish inflow to
    Grand Coulee that shall be based upon measured discharges from
    upstream projects plus incremental side flows between those projects
    and Grand Coulee.

7.  The Simulator will compute the Grand Coulee discharge for «Customer
    Name» and use it to establish «Customer Name»'s inflow simulation
    into Chief Joseph when combined with Chief Joseph's incremental side
    flows.

8.  The Simulator will include calculations that establish inflow to
    McNary that shall be based upon measured discharges from Priest
    Rapids and Ice Harbor after considering approximate hydraulic time
    lags between those projects and the McNary project, plus McNary's
    incremental side flows. The Simulator shall also include
    calculations that incorporate «Customer Name»'s Hydraulic Link
    Adjustment pursuant to section 10 below into «Customer Name»'s
    McNary inflow.

9.  The Simulator will compute the McNary discharge for «Customer Name»
    and use it to establish «Customer Name»'s inflow simulation into
    John Day when combined with John Day's incremental side flows. The
    Simulator will compute the discharge from John Day, The Dalles and
    Bonneville for «Customer Name», as well as inflows into The Dalles
    and Bonneville for «Customer Name», in a like manner.

10. PS shall develop a computer usable interface for «Customer Name»'s
    access and use of the Simulator but which will not recognize
    aggregated Input Variables for the LCOL Complex or the Coulee-Chief
    Complex. «Customer Name» may develop its own aggregated Input
    Variables but must translate such aggregated Input Variables into
    individual Simulator Project Input Variables in order to enable the
    application of individual project Operating Constraints and
    validation of individual project Delivery Limits.

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b.  **Balance of Slice System Module**

> The BOSS Module will compile energy amounts associated with the BOSS
> Complex for purposes of determining «Customer Name»'s Delivery Limits
> associated with the BOSS Complex, which shall include the BOSS Base
> Amount and specified BOSS Flex Amounts for reshaping the BOSS Base
> Amounts.

1.  The BOSS Base Amount, for each hour, shall be a summation of (1)
    BPA's latest planned or scheduled generation amounts associated with
    the BOSS Complex, (2) the amount of Elective Spill PS implements on
    the BOSS projects, (3) the energy associated with Existing Public
    Augmentation and Other Augmentation, as described in Exhibit L,
    Slice System Resources, and (4) the opposite of the amount of energy
    associated with System Obligations. Energy associated with Existing
    Public Augmentation and Other Augmentation included in the BOSS Base
    Amount shall be an equal amount each hour of each FY.

2.  «Customer Name»'s BOSS Base schedule shall be determined by
    multiplying the BOSS Base Amount and «Customer Name»'s Slice
    Percentage, rounded to an integer.

3.  Consistent with the following provisions, the BOSS Flex Amount is
    shall be made available on an as needed basis after «Customer Name»
    utilizes the scheduling flexibility available from the Coulee-Chief
    and LCOL Complex projects. «Customer Name» may utilize the BOSS Flex
    Amount to reshape «Customer Name»'s BOSS Base schedules from hour to
    hour, but not day to day.

    A.  The hourly BOSS Flex Amount shall be determined in real-time by
        the PS Slice Scheduler upon request from «Customer Name».

    B.  The PS Slice Scheduler shall establish available BOSS Flex
        Amounts separately for hourly increases and decreases through
        hour ending 2200 for the current day. Such amounts shall
        reflect, in the judgment of the PS Slice Scheduler, the extent
        to which the Lower Snake Complex projects could reasonably be
        re-shaped relative to the expected operation, considering the
        Operating Constraints and stream flow conditions in effect.

    C.  «Customer Name» shall determine its planned hourly use of the
        BOSS Flex Amounts and submit to PS positive and negative hourly
        schedules that net to zero through hour ending 2200 the current
        day. A positive hourly schedule shall reflect an increase
        relative to the BOSS Base Amount and a negative hourly schedule
        shall reflect a decrease.

    D.  The BOSS Flex Amount available to «Customer Name» shall be equal
        to the BOSS Flex Amount determined pursuant to section
        2(b)(ii)(2) above multiplied by «Customer Name»'s Slice
        Percentage, rounded to an integer.

4.  If «Customer Name» determines it has a significant risk of not
    meeting its firm load service at any time, «Customer Name» may
    notify the PS Slice Scheduler of such potential insufficiency so
    that the PS Slice Scheduler may assess the ability to alter the BOSS
    Complex operation or BOSS Flex Amount to supplement the available
    Slice generation and advise «Customer Name» of such ability as soon
    as practicable.

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3.  **PS INPUT PARAMETERS ESTABLISHED FOR THE SIMULATOR**

    a.  PS shall establish and maintain the Input Parameters to the
        Simulator specified in this section for the duration of the
        Simulator modeling period including forecasted stream flows and
        project Operating Constraints that are in effect at any given
        time. PS shall designate each Operating Constraint established
        as an Input Parameter as either an Absolute Operating
        Constraint, a Hard Operating Constraint, or a Soft Operating
        Constraint. To the maximum extent practicable, each value for
        the above Input Parameters shall be the same as those applicable
        to PS. To the maximum extent practicable, the PS Slice Scheduler
        shall monitor the Slice System and shall make modifications to
        the Input Parameters as necessary to reflect changes. These
        Input Parameters include, but are not limited to:

        1.  Hourly regulated inflows for Grand Coulee and McNary

        2.  Hourly incremental stream flows for each project

        3.  Initial project forebay elevations

        4.  Generator outages

        5.  Project water to energy conversion factors

        6.  Project content to elevation conversion tables

        7.  Project turbine capacities

        8.  Spill limitations and requirements, including bypass Spill
            quantities

        9.  Generation limitations and requirements

        10. Discharge limitations and requirements

        11. Tailwater limitations and requirements (may be converted to
            equivalent discharge values)

        12. Forebay limitations and requirements

        13. System wide requirements (e.g. Vernita Bar, Chum, Reserves,
            Regulating room above minimum generation).

        14. Algorithm tuning parameters

        15. Logic control parameters

    b.  PS Input Parameters affecting HE(X) shall be locked by the
        beginning of HE(X-1). For example, Operating Constraints
        affecting HE 1300 shall be set by PS no later than 1100.

4.  **«CUSTOMER NAME»'S INPUT VARIABLES AND USE OF THE SIMULATOR**

    a.  «Customer Name» shall use its interface with the Simulator to
        establish one or more of the following Input Variables for each
        of the Coulee-Chief Complex and LCOL Complex projects for the
        duration of the Simulator modeling period:

        1.  Generation requests

        2.  Elevation requests

        3.  Discharge requests

    b.  Generation requests shall be stated in terms of «Customer
        Name»'s Slice Percentage of the hypothetically available project
        generation. Elevation and discharge requests shall be in terms
        of a normalized project elevation and discharge values, rather
        than «Customer Name»'s Slice Percentage of available elevation
        and discharge values.

    c.  Based on prioritization rules, once established, «Customer
        Name»'s Input Variables set in the Simulator shall produce a
        hypothetical operational scenario. An operational scenario is a
        single hypothetical operation of the Coulee-Chief Complex and
        LCOL Complex based the Simulator Input Parameters and Input
        Variables established at any given time. A Simulator operational
        scenario produces hypothetical discharges, elevations, and
        generation values for each Simulator Project.

    d.  The resulting Simulator generation values shall provide to
        «Customer Name» its potential Simulated Output Energy Schedules
        for each Simulator Project.

    e.  The Simulator shall include input fields that allow «Customer
        Name» to test various operational scenarios for the purpose of
        determining if its Delivery Limits are exceeded, prior to
        «Customer Name»'s submittal of its Input Variables to PS.

    f.  «Customer Name»'s Input Variables and associated Simulated
        Output Energy Schedules shall be revised and submitted to PS by
        «Customer Name» pursuant to section 4(a) of Exhibit F, Power
        Scheduling.

    g.  The Simulator shall compute the hypothetical hourly operation of
        the Coulee-Chief Complex and the LCOL Complex based on «Customer
        Name»'s established Input Variables, and shall provide
        information to «Customer Name» pursuant to section 6 below. If a
        Delivery Limit is exceeded the following shall apply based on
        protocols yet to be developed:

        1.  «Customer Name»'s schedule change shall be rejected and the
            prior PS approved or adopted schedule shall remain in the PS
            scheduling system.

        2.  «Customer Name»'s schedule shall be accepted with a warning
            submitted to «Customer Name» stating potential consequences
            for failing to adjust the Simulator Input Variables to
            comply with the Delivery Limit.

    h.  The Simulator shall incorporate a computational process enabling
        «Customer Name» to request BOSS amounts on an hourly basis, per
        section 2(b) above.

    i.  The Simulated Output Energy Schedules resulting from «Customer
        Name»'s latest submitted Input Variables, and «Customer Name»'s
        BOSS schedule amounts shall be incorporated into «Customer
        Name»'s Delivery Request.

5.  **REPORTS**

    a.  No later than 5 minutes following the close of each delivery
        hour, PS shall provide «Customer Name» a detailed report of
        «Customer Name»'s deviation accounts as specified in Section 8
        below, «Customer Name»'s adjusted forebay elevations for the
        Simulator Projects, as well as the actual project data «Customer
        Name» needs to verify its deviation account balances.

    b.  PS shall develop an automated report available to «Customer
        Name» upon remote request, which shall present all changes to
        Input Parameters that have been made by PS since the time of
        «Customer Name»'s previous remote request.

6.  **SIMULATOR OUTPUT AND FEEDBACK**

    a.  Based on the Input Parameters set by PS and Input Variables set
        by «Customer Name» the Simulator shall produce the following
        results:

        1.  «Customer Name»'s resulting Simulated Output Energy
            Schedules, hypothetical discharge, and hypothetical forebay
            elevation for each period at each Simulator Project. The
            Simulated Output Energy Schedules shall be in terms of
            «Customer Name»'s Slice Percentage of the available project
            generation, whereas the hypothetical Simulator discharge and
            forebay values shall be normalized.

        2.  A list of Input Variables, set by «Customer Name», that were
            not achieved for each period at each Simulator Project.

        3.  A list of Operating Constraints that were violated for each
            period at each Simulator Project.

        4.  An explanation for each occurrence from section 6(a)(2) and
            6(a)(3) above.

        5.  «Customer Name»'s Hydraulic Link Adjustment, which shall be
            established as the difference between «Customer Name»'s
            hypothetical Chief Joseph discharge and the measured Chief
            Joseph discharge, pursuant to section 10 below.

7.  **SIMULATOR DOCUMENTATION, IMPROVEMENTS, AND ACCURACY**

    a.  PS shall develop a manual with specifications describing the
        Simulator use, with «Customer Name»'s input, and in sufficient
        detail to permit «Customer Name» to understand the interface and
        verify the operation and accuracy of the Simulator outputs. The
        Simulator manual shall include the following:

        1.  A list of specific data sources imported by the Simulator
            from BPA databases or other sources.

        2.  Full documentation of the processes by which the Simulator
            computes and produces output values, but not including
            computer code.

        3.  Full documentation of the Simulator functions, including the
            interface access and controls of the Simulator available to
            «Customer Name»'s users, but not including computer code.

        4.  Full documentation of the data output/display process and
            communication protocols with «Customer Name»'s computer
            systems.

    b.  If requested, PS may also provide «Customer Name» assistance in
        developing an operational manual to explain how the Simulator is
        to be operated by «Customer Name» and other Slice customers.

    c.  Updates, upgrades, or replacements to the Simulator shall be
        proposed, developed, and tested by PS, with input from «Customer
        Name» and other Slice customers. Any such updates, upgrades, or
        replacements to the Simulator shall be reviewed by the Slice
        Implementation Group in a process set out in section 3(b)(12),
        Slice Implementation Group, prior to their implementation. Prior
        to PS implementing any updates, upgrades, or replacements to the
        Simulator, the Simulator manual described in section 7(a) above
        shall be revised by PS and distributed to «Customer Name»'s SIG
        representative 30 days in advance of the implementation of the
        update, upgrade, or replacement to the Simulator and related
        scheduling and any changes in the accounting processes being
        affected.

    d.  In any model process, there are two predominant sources of
        error. These are input accuracy errors and model process errors.

        1.  To minimize such errors PS shall ensure Input Parameters
            established for the Simulator reflect the correct values for
            forecasted inflows and Operating Constraints and that the
            Simulator reasonably represents the operational attributes
            of the Simulator Projects. PS shall develop a process to
            highlight and correct differences between forecasted inflows
            and h/k values reflected in the Simulator and measured
            inflows and h/k's in an effort to minimize cumulative
            deviations. «Customer Name» will accept such inputs and
            corrections, and shall ensure Input Variables established
            for the Simulator reasonably reflect «Customer Name»'s
            intended use of hourly scheduling flexibility within
            established Delivery Limits.

        2.  «Customer Name» and PS acknowledge that model errors are
            inevitable, and the consequences from such errors can be
            either beneficial or detrimental and will likely be
            inconsequential. No cumulative accounting of model error
            impacts shall be required or established. The Parties may
            consider such impacts on a case-by-case basis.

        3.  As an ongoing check of the Simulator's accuracy, PS shall
            run an after-the-fact study each quarter using actual FBS
            conditions as Input Parameters and Input Variables. PS will
            compare study results to actual system data. Such
            comparative results shall be made available to «Customer
            Name» within 30 days after PS completes each study.

8.  **STORAGE AND DEVIATION ACCOUNTING**

    a.  PS shall develop for «Customer Name» separate storage deviation
        accounts for each Simulator Project. The storage deviation
        accounts shall use measured system discharges, h/k's, and
        forebay elevations as benchmarks. PS shall develop for «Customer
        Name» an energy deviation account for the BOSS. The BOSS
        Deviation Accounting benchmark shall be the actual BOSS energy
        amount.

    b.  PS shall develop a Storage Offset Account for «Customer Name»
        representing each of the Simulator Projects which shall be
        established in cumulative Storage Content (ksfd), based on the
        sum of the following components:

        1.  For all Simulator Projects except for Grand Coulee and
            McNary, «Customer Name»'s Calibrated Simulator Discharge, as
            described in section 9 below, from the next-upstream project
            minus that project's measured discharge,

        2.  The measured discharge from each project minus «Customer
            Name»'s Calibrated Simulator Discharge for that project,

        3.  For McNary only, «Customer Name»'s Hydraulic Link
            Adjustment, as described in section 10 below,

        4.  «Customer Name»'s SOA balance from the prior hour.

    c.  PS shall establish «Customer Name»'s September 30, 2011 SOA
        balance for each Simulator Project at zero.

    d.  For purposes of initializing «Customer Name»'s simulated forebay
        elevations, «Customer Name»'s SOA balance for each Simulator
        Project shall be added to the associated Project Storage Content
        and the result shall be converted to an equivalent forebay
        elevation using content-to-elevation tables established by
        project owners.

    e.  «Customer Name»'s BOSS Deviation Account shall be established as
        the cumulative difference, measured in MWd, between «Customer
        Name»'s BOSS Base schedule for each scheduling hour and the BOSS
        Actual Slice System Generation for each hour. «Customer Name»'s
        BOSS Deviation Account balance shall be reduced from time to
        time based on the following procedures:

        1.  If the absolute value of the normalized average of all Slice
            purchasers' BOSS Deviation Account balances as of 1200 hours
            PPT on any given day exceeds 5% of the following day's
            estimated BOSS Base Amount, expressed in MWd, PS shall
            adjust the following day's estimated BOSS Base Amount in a
            compensating manner by 20% of such normalized average of the
            BOSS Deviation Account balances. Such adjustment to the
            estimated BOSS Base Amount shall be applied equally to each
            hour of the day.

        2.  On or before the 15^th^ day of each month PS shall provide
            to «Customer Name» the results of a BOSS ASSG recalculation
            for the previous month that incorporates updated generation
            and System Obligation values for each day of that month to
            determine a monthly BOSS deviation relative to the BOSS Base
            Amount, expressed in MWd. On the 20^th^ day of each month
            BPA shall make effective an adjustment to «Customer Name»'s
            BOSS Deviation Account equal to the product of
            «Customer Name»'s Slice Percentage and the monthly BOSS
            deviation associated with the previous month.

    f.  «Customer Name» shall make all reasonable efforts to adjust its
        request of Slice Output deliveries to bring its SOA balances to
        zero by 2400 hours PPT on September 30, 2028 or the date of
        termination of this Agreement, whichever occurs earliest. Any
        balances in «Customer Name»'s SOAs as of 2400 on September 30,
        2028 or the date of termination of this Agreement shall be
        converted to energy amounts by multiplying such SOA balances by
        the associated federal downstream water-to-energy conversion
        factors. These energy values shall be summed with «Customer
        Name»'s BOSS Deviation Account balance as of 2400 hours on
        September 30, 2008 or the date of termination of this Agreement
        . The resulting amount of energy, expressed in MWh, if positive,
        shall be delivered from BPA to «Customer Name», or if negative,
        delivered from «Customer Name» to BPA, within the next 30 days
        after the termination of this Agreement.

9.  **CALCULATION AND APPLICATION OF THE CALIBRATED SIMULATOR
    DISCHARGE**

    a.  «Customer Name»'s Calibrated Simulator Discharge shall be
        calculated by PS for each Simulator Project for each hour by
        summing the following components.

        1.  The value produced by dividing «Customer Name»'s Simulated
            Output Energy Schedule by «Customer Name»'s Slice
            Percentage, then dividing the result by the project's Actual
            H/K,

        2.  The project's Actual Bypass Spill, and

        3.  The project's Required Fish Spill.

    b.  «Customer Name»'s Calibrated Simulator Discharge shall be
        applied each hour to «Customer Name»'s Simulator as the
        established hypothetical hourly discharge for the associated
        project.

10. **CALCULATION AND APPLICATION OF THE HYDRAULIC LINK ADJUSTMENT**

    a.  «Customer Name»'s Hydraulic Link Adjustment shall be determined
        for the following periods each day of this Agreement.

        1.  The period including hours ending 2300 through 0600

        2.  The period including hours ending 0700 through 1400

        3.  The period including hours ending 1500 through 2200

    b.  «Customer Name»'s Hydraulic Link Adjustment shall be calculated
        as «Customer Name»'s average Chief Joseph Calibrated Simulator
        Discharge for each period above, minus the average Chief Joseph
        measured discharge for the same period.

    c.  «Customer Name»'s Hydraulic Link Adjustment shall be applied as
        an adjustment to «Customer Name»'s simulated inflow to McNary in
        an equivalent amount for each hour of the same period the
        following day.

11. **OPERATING CONSTRAINT VALIDATIONS, VIOLATIONS, AND PENALTY
    ASSESSMENT**

> «Customer Name»'s Simulated Output Energy Schedules and simulated
> project operations shall be validated against Operating Constraints
> for each Simulator Project to determine any Operating Constraint
> violations. Penalties shall be applied to «Customer Name»'s violations
> of Hard Operating Constraints and Absolute Operating Constraints.

a.  «Customer Name» shall be responsible for monitoring potential
    Operating Constraint violations on a prospective basis and adjusting
    Input Variables as needed to eliminate such violations.

b.  Hourly Operating Constraint validations and violations associated
    with the Simulator Projects shall be based on Input Variabless
    established by «Customer Name» and submitted to PS prior to the PS
    real-time scheduling deadline pursuant to section 4(a) of Exhibit F,
    Power Scheduling.

c.  Hourly Delivery Limit validations and violations associated with the
    BOSS shall be based on «Customer Name»'s BOSS Base schedule and BOSS
    Flex schedule established by «Customer Name» as of the PS etag
    scheduling deadline pursuant to section 4(b) of Exhibit F, Power
    Scheduling.

d.  For all Simulator projects except Grand Coulee, Project Storage
    Bound validations shall be applied on an hourly basis.

e.  For Grand Coulee, Project Storage Bound validations shall be applied
    once per day, except when the upper PSB is 1290.0 feet. When Grand
    Coulee's upper PSB is 1290.0 feet, Grand Coulee upper PSB
    validations shall be applied hourly.

f.  The amount by which Simulated Output Energy Schedules exceed hourly
    maximum generating capability shall be charged at the UAI rate.

g.  PS reserves the right to determine whether additional Operating
    Constraint violations and penalties are needed as the Simulator and
    its specification manual are developed.

h.  Additional Operating Constraint violations shall be subject to
    charges based on either the UAI charge or a market proxy rate such
    as the ICE Day Ahead Power Mid C-Firm Index.

i.  Operating Constraint violations resulting from within-hour Balancing
    Authority reliability required actions shall not be subject to
    penalties.

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12. **GRAND COULEE PROJECT STORAGE BOUNDS AND EXCEEDENCES**

    a.  **Determination of Grand Coulee Project Storage Bounds**

> To determine Grand Coulee's Project Storage Bounds (PSB) pursuant to
> section 14(b) below, PS shall calculate and the Simulator shall
> include the Project Storage Content associated with Grand Coulee's
> upper and lower Operating Rule Curve (ORC). PS shall establish a
> difference of at least ½-foot between Grand Coulee's upper and lower
> PSB at all times except when Grand Coulee is required to fill to
> 1290.0 for verification of refill.

b.  **Grand Coulee Project Storage Bound Exceedence**

> «Customer Name»'s exceedence of it's individual Grand Coulee PSB shall
> be the Storage Content by which «Customer Name»'s Slice Storage
> Account is in excess of the Grand Coulee upper Project Storage Bound
> (upper PSB) or is less than the Grand Coulee lower Project Storage
> Bound (lower PSB). An upper PSB exceedence is denoted as a positive
> value, while a lower PSB exceedence is denoted as negative value. Such
> exceedence may result in a penalty pursuant to section 12(c)(4) below.

c.  **Application of The Grand Coulee PSB**

    1.  Any time «Customer Name»'s Grand Coulee PSB exceedence as
        established pursuant to section 12(b) above is not equal to
        zero, such amount shall be eliminated by «Customer Name».
        Beginning on or before the day following the day «Customer Name»
        is notified by PS of such exceedence, «Customer Name» shall take
        the action(s) described in section 12(c)(2) below to return
        «Customer Name»'s Slice Storage Account balance to a condition
        that is within «Customer Name»'s Grand Coulee PSB to avoid
        penalties.

    2.  «Customer Name» shall adjust its requests for Slice Output
        deliveries in compliance with one of the following two
        requirements:

        A.  «Customer Name»'s exceedence as established pursuant to
            section 12(b) shall be eliminated; or

        B.  If the Grand Coulee PSB exceedence is positive, «Customer
            Name» shall schedule it's Slice Output such that its
            Simulator results are within 3 kcfs below the most limiting
            daily maximum system flow constraint, or if the Grand Coulee
            PSB exceedence is negative, «Customer Name» shall schedule
            it's Slice Output such that its Simulator results are within
            3 kcfs above the most limiting daily minimum system flow
            constraint, for as many days as necessary to eliminate such
            exceedence.

    3.  «Customer Name» may alternately elect to schedule Slice Output
        in a manner to eliminate the exceedence established pursuant to
        section 12(b) above prior to the day following the day of
        notification. If «Customer Name» does so, «Customer Name» shall
        not be required to take actions specified in sections 12(c)(2)
        above.

    4.  If «Customer Name» complies with the requirements of section
        12(c)(2) no penalty shall be applied. If «Customer Name» fails
        to take actions as specified in 12(c)(2) such exceedence
        pursuant section 12(b) shall be subject to penalties, yet to be
        established.

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13. **COMMUNICATIONS**

    a.  «Customer Name» shall be solely responsible for its internal
        dissemination of information provided by PS pursuant to this
        Exhibit M, Slice Computer Application and Implementation
        Procedures.

    b.  «Customer Name» shall be able, by use of the Simulator
        interface, to access the Input Parameters established by PS
        pursuant to section 3 above.

    c.  PS shall provide «Customer Name» a daily written summary of
        Operating Constraints PS establishes as the Simulator Input
        Parameters.

    d.  Changes made by PS to the Simulator Input Parameters shall be
        available to «Customer Name» upon request to PS by submission in
        the report described in section 5(b) above.

    e.  PS shall communicate Federal Operating Decisions to «Customer
        Name» in the following manner:

        1.  An initial listing and description of Federal Operating
            Decisions in effect as of September 30, 2011;

        2.  An immediate notification via confirmed delivery and receipt
            electronic messaging systems in place between PS and
            «Customer Name»; and

        3.  A verbal report to the attendees during the next scheduled
            daily conference call as described in section 13(f) below.

    f.  Beginning September 28, 2011, and on each Business Day after
        that, PS shall initiate an informational conference call with
        «Customer Name» and the other Slice purchasers promptly at 12:40
        PPT to discuss current and upcoming operating parameters and
        other related matters. The time and frequency of the call may be
        changed upon the mutual agreement of PS, «Customer Name», and
        the other Slice Parties. «Customer Name» shall receive notice
        from PS via e-mail at least 3 Business Days prior to any such
        change.

    g.  PS, «Customer Name», and other Slice purchasers shall establish
        a process, through the SIG or a subcommittee thereof, to discuss
        Operating Constraints and their application, but the SIG or
        subcommittee shall not vote on Operating Constraints and their
        application.

14. **90-DAY FORECAST OF SLICE OUTPUT**

    a.  Prior to midnight on the 23^rd^ day of each month, PS shall
        provide «Customer Name» the results of a 90-day forecast,
        pursuant to section 14(b) below. PS shall update such forecast
        during the month in the event of significantly changed
        conditions and shall make the results available to «Customer
        Name».

    b.  PS, consistent with its internal study processes, shall perform
        two single-trace hydroregulation studies representing the
        expected stream flow condition for the period including the
        upcoming 3 months. One study shall operate to the minimum flow
        constraint in order to attain the highest reservoir elevations
        possible at Grand Coulee, limited by its upper ORC, and one
        study shall operate to the maximum flow constraint in order to
        attain the lowest reservoir elevations possible at Grand Coulee,
        limited to its lower ORC. Both studies shall represent a
        pass-inflow operation at all other Coulee-Chief Complex and LCOL
        Complex projects and the expected operation at all other Slice
        System projects. PS shall initialize the starting reservoir
        Storage Contents for each study at the Storage Contents
        projected to occur at midnight on the initialization date. Based
        on the results of these studies, PS shall provide to «Customer
        Name» the weekly natural inflow, turbine discharge, generation,
        Spill discharge, and ending elevation for each of the
        Coulee-Chief Complex projects, the LCOL Complex projects, the
        Snake Complex projects, Libby, Hungry Horse, Dworshak, and
        Arrow; the weekly generation forecasts for the sum of the
        remaining BOSS projects, excluding CGS; the weekly CGS
        generation forecast; and the weekly forecast of the individual
        System Obligations. PS shall also provide a summary of weekly
        aggregated planned generator maintenance outages, in terms of
        total MW, for all Slice System projects, as well as the daily
        Grand Coulee upper and lower PSB for the study period.

15. **12-MONTH FORECAST OF SLICE OUTPUT**

    a.  Prior to July 1, 2011, and prior to each July 1 thereafter
        during the term of this Agreement, PS, «Customer Name», and
        other Slice purchasers shall meet to discuss and review inputs,
        assumptions, and content of the Multiyear Hydroregulation Study
        used to develop the 12-month forecast described in section 15(d)
        below.

    b.  Prior to August 1, 2011, and prior to each August 1 thereafter
        during the term of this Agreement, PS shall provide «Customer
        Name» with results from the 12-month forecast, pursuant to
        section 15(d) below.

    c.  PS, «Customer Name», and other Slice purchasers shall meet prior
        to August 31, 2011 and prior to each August 31 thereafter during
        the term of this Agreement to discuss the results of the
        12-month forecast described in section 15(d) below.

    d.  PS, consistent with its internal study processes, shall perform
        a single Multiyear Hydroregulation Study for the upcoming August
        through July period representing a range of stream flow traces.
        The study shall reflect Grand Coulee achieving ORC at times when
        its upper and lower ORC are equal values. At times when Grand
        Coulee's upper and lower ORC are not equal values, the study
        shall indicate Coulee operating in a manner that achieves all
        system flow constraints when possible. The study shall represent
        a pass-inflow operation at all other Coulee-Chief Complex and
        LCOL Complex projects and the expected operation at all other
        Slice System projects. PS shall initialize the starting
        reservoir Storage Contents for this study at the Storage
        Contents projected to occur at midnight on the initialization
        date. Based on the results of this study, PS shall provide to
        «Customer Name» the monthly natural inflow, turbine discharge,
        generation, Spill discharge, and ending elevation for each of
        the Coulee-Chief Complex projects, the LCOL Complex projects,
        the Snake Complex projects, Libby, Hungry Horse, Dworshak, and
        Arrow; the monthly generation forecasts for the sum of the
        remaining BOSS projects, excluding CGS; the monthly CGS
        generation forecast; and the monthly forecast of the individual
        System Obligations. PS shall also provide a summary of monthly
        aggregated planned generator maintenance outages, in terms of
        total MW, for all Slice System projects.

16. **CONGESTION MANAGEMENT AND NODAL SCHEDULING (PLACEHOLDER)**

    a.  If there are congestion management requirements placed on the PS
        by the Balancing Authority, PS shall solely manage the
        operational requirements of such congestion management provision
        as required and shall apply the operational impacts of such
        provision proportionally to «Customer Name». The net of any
        expenses and revenues from adhering to the requirements as
        described in the preceding sentence shall be applied to the
        Slice Revenue Requirement in the Slice True-Up Adjustment
        Charge.

    b.  If the Federal Base System is required to be scheduled nodally,
        the determination of sources for the schedules shall be
        separately determined from the modeling and scheduling process.

17. **CONFIDENTIALITY**

> *[Reviewer's Note]{.underline}**:** 3/16/08 -- A Confidentiality
> provision will be added relative to Exhibit M that states all
> prospective system informational data shared with Slice customers
> shall be treated as confidential, consistent with BPA's policy
> statement to reserve the right to limit operational information shared
> with Slice customer scheduling agents that have a significant market
> influence in the NW.*