Standard Form Contract - Schedule PP-H(NC)/PP-N(NC)	 	 NCUC Docket No. E-100, Sub 117	 
	 	(Revised November1,
    2008)	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	PURCHASED POWER AGREEMENT	 
	 	 	 
	 	between	 
	 	 	 
	 	DUKE ENERGY CAROLINAS, LLC	 
	 	 	 
	 	and	 
	 	 	 
	 	STONEVILLE SOLAR, LLC	 
	 	 	 
	 	“Stoneville Solar PV Installation”	 
	 	 	 
	 	 	 
	 		Contract Number: 	 	2011-11	 	 
	 	 	 	 	 	 
	 		Contract Date: 	 	February 21, 2011	 	 
	 	 	 	 	 	 	 
	 		Initial Delivery Date: 	 	April 14, 2011	 	 
	 	 	 	 	 	 	 




 



    	 



    	 



    

 


	NC STANDARD PPA.DOC (Revised
    November 1, 2008)	NCUC Docket No. E-100, Sub. 117


 


PURCHASED POWER AGREEMENT


 


THIS PURCHASED POWER
AGREEMENT (“Agreement”) is made 

this 21st day of February, 2011, by and between


 


DUKE ENERGY CAROLINAS, LLC,


 


a North Carolina Limited Liability Company
("Company"), and


 


STONEVILLE SOLAR, LLC,


 


("Supplier" or "Customer"),
for the


 


"Stoneville Solar PV Installation,"


 


which is or will be a qualifying facility
as defined by the Federal Energy Regulatory Commission ("FERC") pursuant to Section 210 of the Public Utility Regulatory
Policies Act of 1978, consisting of a 9.9 kilowatt REC Solar photovoltaic array and two (2) SMA Sunny Boy SB5000 US grid tie inverters,
(the "Facility"), located at 204 South Henry Street, Stoneville, NC 27048.


 


(Hereinafter, the parties are also referred
to individually as "Party" and collectively as "Parties").


 


In consideration of the mutual covenants
herein contained, the Parties hereto, for themselves, their successors and assigns, do hereby agree to the following:


 


		1.	Service Requirements.



 


		1.1	The Supplier shall sell and deliver exclusively to the Company all of the electric power generated
by the Facility, net of the Facility's own auxiliary electrical requirements, and the Company shall purchase, receive, use and
pay for the same, subject to the conditions contained in this Agreement. If the Supplier will receive back-up and maintenance power
for the Facility's auxiliary electrical requirements from the Company, such power shall be provided to Supplier pursuant to a separate
electric service agreement under the Company's rate schedule appropriate for such service.



 


		1.2	The electric power to be delivered hereunder shall be three (3) phase, alternating, at a frequency
of approximately sixty (60) hertz, and at approximately 480/277 volts.



 


		1.3	Delivery of said power shall be made in Rockingham County at or near Stoneville, North Carolina
at a delivery point described as follows: At the metering location of the photovoltaic installation located near the electric service
entrance of the business located at 204 South Henry Street, Stoneville, NC 27048.



 


		1.4	(a) The Nameplate Capacity of the Supplier's generating facilities, as defined in the attached
Schedule PP-N(NC) is 9 kilowatts, consisting of a 9.9 kilowatt REC Solar photovoltaic array and two (2) SMA Sunny Boy SB5000 US
grid tie inverters.



 



    	Page 1 of 12



    	 



    

 


	NC STANDARD PPA.DOC (Revised
    November 1, 2008)	NCUC Docket No. E-100, Sub. 117


 


(b) The Supplier shall
deliver to the Company throughout the term of the Agreement approximately 9 kilowatts during On-Peak Periods as its "Capacity
Commitment" as defined in Paragraph 1.4(c) below.


 


(c) The "Capacity
Commitment" shall be the average capacity in kilowatts the Supplier commits to deliver to the Company during On-Peak Periods
through the term of the Agreement taking into account scheduled and forced outages, fuel availability, steam requirements and any
other conditions which might impact the average capacity during On-Peak Hours.


 


(d) The maximum amount
of electric power to be delivered by Supplier to the Company under this Agreement shall be 9 kilowatts.


 


		1.5	The Company will install and own such meter(s) as shall be necessary to measure and record the
electrical energy and demand(s) delivered and received in accordance with the terms and conditions of this Agreement, such meter(s)
to be located: At the delivery point.



 


		1.6	Supplier shall provide to the Company, on a monthly basis within ten (10) days of the meter reading
date and in form to be mutually agreed upon by the Parties, information on the Facility's fuel costs (coal, oil natural gas, supplemental
firing, etc.), if any, for the power delivered to the Company during the preceding month's billing period.



 


		1.7	Supplier shall operate its Facility in compliance with all applicable operating guidelines established
by the North American Electric Reliability Council ("NERC") and the Southeastern Electric Reliability Council ("SERC")
or any successor thereto.



 


		1.8	In the event the Company determines, based on calculations, studies, analyses, monitoring, measurement
or observation, that the output of the Facility will cause or is causing the Company to be unable to provide proper voltage levels
to its customers, the Supplier shall be required to comply with a voltage schedule and/or reactive power output schedule as prescribed
by the Company. In the event such schedules are required by the Company, the POWER FACTOR CORRECTION paragraph of Schedule PP-N(NC)
attached hereto shall not apply to service under this Agreement. If the Supplier fails to comply with such schedule(s), the Company
shall have the right to discontinue service and suspend purchases until the Supplier is in compliance.



 


		2.	Rate Schedule and Service Regulations. The sale, delivery, and use of electric power hereunder,
and all services of whatever type to be rendered or performed in connection therewith, shall in all respects be subject to and
in accordance with all the terms and conditions of the Company's Rate Schedule PP-N, Electricity No. 4, North Carolina Ninth
Revised Leaf No. 91, Option B, Distribution Interconnection, Variable Rate, ("Rate Schedule") and its Service Regulations,
both of which are now on file with the North Carolina Utilities Commission ("Commission"), and are hereby incorporated
by reference and made a part hereof as though fully set forth herein. Said Rate Schedule and Service Regulations are subject to
change, revision, alteration or substitution, either in whole or in part, upon order of said Commission or any other regulatory
authority having jurisdiction, and any such change, revision, alteration or substitution shall immediately be made a part hereof
as though fully written herein, and shall nullify any prior provision in conflict therewith.



 



    	Page 2 of 12



    	 



    

 


	NC STANDARD PPA.DOC (Revised November 1, 2008)	NCUC Docket No. E-100, Sub. 117


 


		3.	Initial Delivery Date.



 


		3.1	The Initial Delivery Date shall be
                                                            the first date upon which energy is generated by the Facility and
                                                            delivered to the Company, and such energy is metered by the Company.
                                                            The Initial Delivery Date under this Agreement is April 14, 2011.



 


		3.2	Subject to the provisions of Paragraph 3.4 hereof, if the Initial Delivery Date does not occur
within thirty (30) months from the date of execution of this Agreement, then the Company may at any time thereafter terminate this
Agreement immediately upon written notice to Supplier.



 


		3.3	The initial delivery of electric power is dependent upon the Company securing from the manufacturers
all necessary apparatus, equipment and material for the delivery of said power, and the Company shall not be required to receive
said power until it shall have secured and installed such equipment, apparatus and material.



 


		3.4	If either Party shall be delayed or prevented from delivering or receiving electric power on the
Initial Delivery Date by reason of an event or condition of force majeure as defined in Paragraph 7 hereof, then the Initial Delivery
Date and the beginning of Supplier's obligation to pay Interconnection Facilities Charges pursuant to Paragraph 5.3 hereof shall
be extended for a period proportionate to such delay or prevention.



 


		4.	Term. The term of this Agreement
                                                           shall be 5 years beginning with the Initial Delivery Date, continuing
                                                           thereafter until terminated by either Party upon giving at least sixty
                                                           (60) days' prior written notice of such termination. The Company shall
                                                           have the right of termination provided in the attached Rate Schedule.
                                                           In the event of early termination of this agreement, the Supplier shall
                                                           be required to pay the Company for costs due to such early termination.



 


		5.	Interconnection Facilities Charge.



 


		5.1	(a) In accordance with the provisions
                                                             of the attached Rate Schedule, the Company will furnish, install,
                                                             own and maintain Interconnection Facilities, including protective
                                                             devices, metering equipment, etc. to permit parallel operation of
                                                             the Supplier's facilities with the Company's system. The Interconnection
                                                             Facilities Charge, calculated in accordance with the Extra Facilities
                                                             Provisions of the Company's Service Regulations, to be paid by the
                                                             Supplier each month shall be $ 34.42, which is 1.7%
                                                             of the installed cost of said Interconnection Facilities, which amount
                                                             is $2,024.77.



 


(b) The costs and charges set
forth above shall be determined no later than twelve (12) months prior to the installation of the Interconnection Facilities to
reflect then current costs, conditions, and service requirements.


 



    	Page 3 of 12



    	 



    

 


	NC STANDARD PPA.DOC (Revised
    November 1, 2008)	NCUC Docket No. E-100, Sub. 117


 


		5.2	The monthly charge for the Interconnection Facilities to be provided under this Agreement is subject
to the rates, Service Regulations and conditions of the Company as the same are now on file with the Commission and may be changed
or modified from time to time upon approval by the Commission. Any such changes or modifications, including those which may result
in increased charges for the Interconnection Facilities to be provided by the Company, shall be made a part of this Agreement to
the same effect as if fully set forth herein.



 


		5.3	The Company shall furnish and install the Interconnection Facilities no later than the date requested
by Supplier for such installation. Supplier's obligation to pay the Interconnection Facilities charges shall begin on the date
that such Interconnection Facilities become operational, except as provided in Paragraph 3.4 hereof, and such charges shall apply
at all times thereafter during the term of this Agreement, whether or not Supplier is actually supplying electric power to the
Company.



 


		5.4	The Interconnection Facilities under this agreement are only applicable for systems that comply
with the North Carolina Interconnection Procedures, Forms, And Agreements For State-Jurisdictional Generator Interconnections
(Interconnection Standard), which include requirements for compliance with the following:



 


1.The Institute of Electrical
and Electronics Engineers (IEEE) P929 – "Recommended Practice for Utility Interface of Photovoltaic Systems" (latest
edition); and IEEE 1547 "Standard for Interconnecting Distributed Resources with Electric Power Systems", latest published
edition.


 


2.Underwriters Laboratories
(UL) 1741 – "Standard for Static Inverters and Charge Controllers for use in Photovoltaic Power Systems." (latest edition)


 


3.NFPA70 – National Electrical
Code (NEC), and all applicable local codes (latest editions) In order to ensure protection of the Company's system, the Company
reserves the right, at its discretion, to inspect the Customer's photovoltaic system at any time upon reasonable notice to the
Customer in an effort to ensure compliance with the Interconnection Standard. The Company reserves the right to disconnect electric
service to any premises if the Company determines that the photovoltaic system is not in compliance with the Interconnection Standard
and is being operated in parallel with the Company's system.


 


The Customer must submit an
Interconnection Request which must be accepted by the Company. The Customer shall be responsible for providing suitable
control and protective devices on its equipment to assure no disturbance to other customers of the Company or to the Company itself,
and to protect the Customer's facilities and the Company's facilities from all loss or damage which could result from operation
in parallel with the Company's system. The Customer shall be responsible for any costs incurred by the Company pursuant to the
Interconnection Standard. The Company reserves the right to require additional interconnection facilities, furnished, installed,
owned and maintained by the Company, at the Customer's expense, if the Customer's photovoltaic system, despite compliance with
the Interconnection Standard, causes safety, reliability or power quality problems.


 



    	Page 4 of 12



    	 



    

 


	NC STANDARD PPA.DOC (Revised
    November 1, 2008)	NCUC Docket No. E-100, Sub. 117


 


The Customer shall obtain and
retain, for as long as the photovoltaic system is interconnected with the Company's system, a comprehensive general liability insurance
policy with liability coverage in the amount of at least $300,000 per occurrence which protects the Customer from claims for bodily
injury and / or property damage. This insurance shall be primary for all purposes. The Customer shall provide certificates evidencing
this coverage as required by the Company. The Company reserves the right to refuse to establish, or continue the interconnection
of the Customer's photovoltaic system with the Company's system, if such insurance is not in effect.


 


		6.	Service Interruptions. The Parties do not guarantee continuous service. They shall use
                                                           reasonable diligence at all times to provide satisfactory service, and to remove the cause or causes in the event of
                                                           failure, interruption, reduction or suspension of service, but neither Party shall be liable for any loss or damage
                                                           resulting from such failure, interruption, reduction or suspension of service, nor shall same be a default hereunder,
                                                           when due to any of the following:



 


(a)An emergency action
due to an adverse condition or disturbance on the system of the Company, or on any other system directly or indirectly interconnected
with it, which requires automatic or manual interruption of the supply of electricity to some customers or areas in order to limit
the extent or damage of the adverse condition or disturbance, or to prevent damage to generating or transmission facilities, or
to expedite restoration of service, or to effect a reduction in service to compensate for an emergency condition on an interconnected
system.


 


(b)An event or condition of
force majeure as defined in Paragraph 7 hereof.


 


(c)Making necessary adjustments
to, changes in, or repairs on Company lines, substations, and facilities, and in cases where, in its opinion, the continuance of
service from Supplier's premises would endanger persons or property.


 


		7.	 Force Majeure.



 


(a)Circumstances beyond
the reasonable control of a Party which solely cause that Party to experience delay or failure in delivering or receiving electricity
or in providing continuous service hereunder, including: acts of God; unusually severe weather conditions; earthquake; strikes
or other labor difficulties; war; riots; fire; requirements, actions or failures to act on the part of governmental authorities
(including the adoption or change in any rule or regulation or environmental constraints lawfully imposed by federal, state or
local government bodies), but only if such requirements, actions or failures to act prevent or delay performance; or transportation
delays or accidents shall be deemed to be "events or conditions of force majeure". Events or conditions of force majeure
do not include such circumstances which merely affect the cost of operating the Facility.


 


(b)Neither Party shall
be responsible nor liable for any delay or failure in its performance hereunder due solely to events or conditions of force majeure,
provided that:


 



    	Page 5 of 12



    	 



    

 


	NC STANDARD PPA.DOC (Revised
    November 1, 2008)	NCUC Docket No. E-100, Sub. 117


 


(i)The affected Party
gives the other Party written notice describing the particulars of the event or condition of force majeure, such notice to be
provided within forty-eight (48) hours of the determination by the affected Party that an event or condition of
force majeure has occurred, but in no event later than thirty (30) days from the date of the occurrence of the event
or condition of force majeure;


 


(ii)The delay or
failure of performance is of no longer duration and of no greater scope than is required by the event or condition of force
majeure, provided that in no event shall such delay or failure of performance extend beyond a period of twelve (12)
months;


 


(iii)The affected Party uses
its best efforts to remedy its inability to perform;


 


(iv)When the affected
Party is able to resume performance of its obligations under this Agreement, that Party shall give the other Party prompt
written notice to that effect; and,


 


(v)The event or
condition of force majeure was not caused by or connected with any negligent or intentional acts, errors, or omissions, or
failure to comply with any law, rule, regulation, order or ordinance, or any breach or default of this Agreement.


 


		8.	Offset For Charges Due to Company. The Company reserves the right to set off against any
amounts due from the Company to Supplier, any amounts which are due from Supplier to the Company, including, but not limited to,
unpaid charges for Interconnection Facilities or past due balances on any accounts Supplier has with the Company for other services.



 


		9.	Records. In addition to the regular meter readings to be taken once each month for billing
purposes, the Company may require additional meter readings, records, transfer of information, etc. as may be agreed upon by the
Parties. The Company reserves the right to provide to the Commission or the FERC or any other regulatory body, upon request, information
pertaining to this Agreement, including but not limited to: records of the Facility's generation output and the Company's purchases
thereof (including copies of monthly statements of power purchases and data from load recorders and telemetering installed at the
Facility); copies of this Agreement; and information regarding the Interconnection Facilities, as set forth in Paragraph 5 hereof.
The Company will not provide any information developed solely by Supplier and designated by Supplier in writing to be "proprietary"
unless required to do so by order of the Commission or the FERC or any other regulatory body or court, in which event, the Company
will notify Supplier prior to supplying the proprietary information.



 


		10.	Waiver. The failure of either Party to enforce or insist upon compliance with any of the
terms or conditions of this Agreement shall not constitute a waiver or relinquishment of any such terms or conditions, but the
same shall be and remain at all times in full force and effect.



 


		11.	Assignment. The rights and obligations accruing to the Supplier under this Agreement may be assigned to another person,
partnership, or corporation, subject to the Company's prior approval of the assignment of said person, firm, or corporation, which
approval shall not be unreasonably or arbitrarily withheld. However, before such rights and obligations are assigned, the assignee
must first obtain necessary approval from all regulatory bodies including, but not limited to, the Commission.



 



    	Page 6 of 12



    	 



    

 


	NC STANDARD PPA.DOC (Revised
    November 1, 2008)	NCUC Docket No. E-100, Sub. 117


 


		12.	Notification of Assignment, Transfer or Sale. In the event of an assignment of the rights
and obligations accruing to the Supplier under this Agreement pursuant to Paragraph 11 hereof, or in the event of any contemplated
sale, transfer or assignment of the Facility or the Certificate of Public Convenience and Necessity, the Supplier shall, in addition
to obtaining the approvals required by Paragraph 13 hereof, advise the Company and the Commission of any plans for such an assignment,
sale or transfer, or of any accompanying significant changes in the information required by Commission Rules R8-64 and R8-65, all
as more fully set forth in Commission Rules R8-64 and R8-65, as amended, which are incorporated by reference herein.



 


		13.	Regulatory Approval. This entire Agreement is contingent upon the Supplier's obtaining required
approval from all regulatory bodies including, but not limited to, a Certificate of Public Convenience and Necessity or its equivalent
from the Commission. The Parties hereto agree that performance under this Agreement shall not commence unless and until such approvals
are obtained. If at any time during the term of this Agreement any of such required approvals expire, are withdrawn, are revoked
or for any reason become invalid, the Company shall allow the Supplier a reasonable period to cure the problem before giving notice
of termination of this Agreement.



 


(Continued on page 12)


 



    	Page 7 of 12



    	 



    

 


	Duke Energy Carolinas, LLC	Electricity No. 4
	 	North Carolina Ninth Revised Leaf No. 91
	 	Superseding North Carolina Eighth Revised Leaf No. 91


 


SCHEDULE PP-N (NC) 

NON-HYDROELECTRIC QUALIFYING
FACILITIES 

PURCHASED POWER


 


AVAILABILITY (North Carolina only)


Available only to establishments located
in the Company's North Carolina service territory which have non-hydroelectric qualifying facilities fueled by trash or methane
derived from landfills, hog waste, poultry waste, solar, wind, and non-animal forms of biomass contracting to sell generating capacity
and energy not in excess of five (5) megawatts, or other non-hydroelectric generating facilities contracting to sell generating
capacity and energy not in excess of three (3) megawatts, which are interconnected directly with the Company's system and which
are qualifying facilities as defined by the Federal Energy Regulatory Commission pursuant to Section 210 of the Public Utility
Regulatory Policies Act of 1978.


 


The Fixed Long-Term Rates on this Schedule
are available only to Customers under contract with the Company on or before November 1, 2010 for delivery of power beginning on
or before the earlier of thirty (30) months from the date of execution of the contract or May 1, 2013.


 


Notwithstanding the above, all qualifying
facilities have the option to sell energy to the Company on an "as available" basis and receive energy credits only calculated
using the Variable Rates identified in this Schedule for the delivered energy.


 


This Schedule is not applicable to a qualifying
facility owned by a Customer, or affiliate or partner of a Customer, who sells power to the Company from another facility within
one-half mile.


 


Service necessary for the delivery of the
Customer's Net Power into the Company's system under this Schedule shall be furnished solely to the individual contracting Customer
in a single enterprise, located entirely on a single, contiguous premise. Service hereunder shall be restricted to the Net Capacity
of the Customer's generating facilities which may be operated in parallel with the Company's system. Service necessary to supply
the Customer's total load requirements other than Auxiliary Load, and service necessary to supply the Customer's Auxiliary Load
when the Customer's generating facilities are not operating, shall be billed on the applicable schedule(s) of the Company. Net
Power delivered to the Company under this Schedule shall not offset or be substituted for power contracted for or which may be
contracted for under any other schedule of the Company, except at the option of the Company under
special terms and conditions expressed in writing in the contract with the Customer.


 


The obligations of the Company in regard
to service under this Schedule are dependent upon its securing and retaining all necessary rights-of-way, privileges, franchises
and permits for such service and the Company shall not be liable to any customer or applicant for power in the event it is delayed
in, or is prevented from purchasing power by its failure to secure and retain such rights-of-way, rights, privileges, franchises
and permits.


 


TYPE OF SERVICE


Company will furnish 60 Hertz service through
one metering point, at one delivery point, at one of the following approximate voltages, where available, upon mutual agreement:


 


Single-phase, 120/240 volts; or


3-phase, 3-wire, 240, 480, 4160, 12470, or 24940
volts, or


3-phase voltages other than
the foregoing, but only at the Company's option, and provided that the size of the Customer's contract warrants a substation solely
to serve that Customer, and further provided that the Customer furnish suitable outdoor space on the premises to accommodate a
ground-type transformer installation, or substation, or a transformer vault built in accordance with the Company's specifications.


 


The type of service under this Schedule
shall be determined by the Company. Prospective customers shall ascertain the available voltage by written inquiry of the Company
before purchasing equipment.


 


RATE * (One of the following two Rate options shall apply):


Option A


 


	Administrative Charge	$ 8.17 per month
	Facilities Charge (if applicable – See Interconnection Facilities Charge)	$ 8.03 per month


 


	Interconnected to Distribution System:	 	 	 	 	 	 
	 	 	 	 	Fixed Long-Term Rate (a)
		 	Variable Rate	 	5 Years	 	10 Years (b)	 	15 Years
    (b)
	I.     Capacity Credit 	 	 	 	 	 	 	 	 
	a. All On-Peak Energy per On-Peak Month per kWh:	 	2.58¢	 	2.72¢	 	3.03¢	 	3.22¢
	b. All On-Peak Energy per Off-Peak Month per kWh:	 	0.51¢	 	0.54¢	 	0.60¢	 	0.64¢
	 	 	 	 	 	 	 	 	 
	II.    Energy Credit	 	 	 	 	 	 	 	 
	a. All On-Peak Energy per Month per kWh:	 	6.27¢	 	6.33¢	 	6.40¢	 	6.52¢
	b. All Off-Peak Energy per Month per kWh:	 	4.79¢	 	4.64¢	 	4.43¢	 	4.47¢



 



    	Page 8 of 12



    	 



    

 


Schedule PP-N (NC) continued


 


RATE (Option A continued)


 


	Interconnected to Transmission System:	 	 	 	 	 	 
	 	 	 	 	Fixed Long-Term Rate (a)
		 	Variable Rate	 	5 Years	 	10 Years (b)	 	15 Years (b)
	I.     Capacity Credit 	 	 	 	 	 	 	 	 
	a. All On-Peak Energy per On-Peak Month per kWh:	 	2.5l¢	 	2.65¢	 	2.95¢	 	3.13¢
	b. All On-Peak Energy per Off-Peak Month per kWh:	 	0.50¢	 	0.52¢	 	0.58¢	 	0.62¢
	 	 	 	 	 	 	 	 	 
	II.    Energy Credit	 	 	 	 	 	 	 	 
	a. All On-Peak Energy per Month per kWh:	 	6.10¢	 	6.15¢ 	 	6.22¢	 	6.34¢
	b. All Off-Peak Energy per Month per kWh:	 	4.67¢	 	4.52¢	 	4.32¢	 	4.36¢


 


Option B


 


	Administrative Charge	$ 8.17 per month
	Facilities Charge (if applicable – See Interconnection Facilities Charge)	$ 8.03 per month



 


	Interconnected to Distribution System:	 	 	 	Fixed Long-Term Rate (a)
		 	Variable Rate	 	5 Years	 	10 Years (b)	 	15 Years (b)
	I.     Capacity Credit 	 	 	 	 	 	 	 	 
	a. All On-Peak Energy per Summer Month per kWh:	 	9.08¢	 	9.58¢	 	10.67¢	 	11.34¢
	b. All On-Peak Energy per Non-Summer Month per kWh:	 	1.40¢	 	1.48¢	 	1.65¢	 	1.75¢
	 	 	 	 	 	 	 	 	 
	II.    Energy Credit	 	 	 	 	 	 	 	 
	a. All On-Peak Energy per Month per kWh:	 	6.59¢	 	6.63¢	 	6.63¢	 	6.79¢
	b. All Off-Peak Energy per Month per kWh:	 	5.20¢	 	5.12¢	 	5.02¢	 	5.07¢



 


	Interconnected to Transmission System:	 	 	 	Fixed Long-Term Rate (a)
		 	Variable Rate	 	5 Years	 	10 Years (b)	 	15 Years (b)
	I.     Capacity Credit 	 	 	 	 	 	 	 	 
	a. All On-Peak Energy per Summer Month per kWh:	 	8.83¢	 	9.32¢	 	10.37¢	 	11.03¢
	b. All On-Peak Energy per Non-Summer Month per kWh:	 	1.36¢	 	1.44¢	 	1.60¢	 	1.70¢
	 	 	 	 	 	 	 	 	 
	II.    Energy Credit	 	 	 	 	 	 	 	 
	a. All On-Peak Energy per Month per kWh:	 	6.41¢	 	6.45¢	 	6.45¢	 	6.60¢
	b. All Off-Peak Energy per Month per kWh:	 	5.07¢	 	4.99¢	 	4.90¢	 	4.95¢



 


	Notes: 	(a)	The 10-Year and 15-Year Fixed Long-Term Rates are applicable
only to those qualifying facilities which are non-hydroelectric qualifying facilities fueled by trash or methane derived from
landfills, hog waste, poultry waste, solar, wind, and non-animal forms of biomass contracting to sell capacity and energy not
in excess of five (5) megawatts.



 


		(b)	Contracts for the 10-Year and 15-Year Fixed Long-Term Rates are subject to a provision making the
contract renewable for subsequent term(s) at the option of the Company on substantially the same terms and provisions and at a
rate either (1) mutually agreed upon by the parties negotiating in good faith and taking into consideration the Company's then
avoided cost rates and other relevant factors, or (2) set by arbitration.



 


* Unless otherwise specified
in the Company's contract with the Customer, payment of credits under this Schedule do not convey to the Company the right to renewable
energy credits (RECs) associated with the energy delivered to the Company by the Customer.


 


DEFINITIONS


Nameplate Capacity: The term "Nameplate
Capacity" shall mean the maximum continuous electrical output capability of the generator(s) at any time at a power factor
of ninety percent (90%).


 


Net Capacity: The term "Net Capacity"
shall mean the Nameplate Capacity of the Customer's generating facilities, less the portion of that capacity needed to serve the
generating facilities' Auxiliary Load.


 


Auxiliary Load: The term "Auxiliary
Load" shall mean power used to operate auxiliary equipment in the facility necessary for power generation (such as pumps,
blowers, fuel preparation machinery, and exciters).


 


Net Power: The term "Net Power"
shall mean the total amount of electric power produced by the Customer's generating facilities less the portion of that power used
to supply the generating facilities' Auxiliary Load.


 


Month: The term "Month" as used
in this Schedule means the period intervening between meter readings for the purposes of monthly billing, such readings being taken
once per month.


 


For Option A Rates, the On-Peak Months shall
be the billing Months of June through September and December through March. The Off-Peak Months shall be the billing Months of
April, May, October and November.


 


For Option B Rates, the Summer Months are
the period from June 1 through September 30. The Non-Summer Months are the period from October 1 through May 31.


 



    	Page 9 of 12



    	 



    

 


Schedule PP-N (NC) continued


 


DETERMINATION OF ON-PEAK AND OFF-PEAK ENERGY


On-Peak Energy shall be energy, in kilowatt-hours,
which is supplied to the Company during On-Peak Period Hours. Off-Peak Energy shall be energy, in kilowatt-hours, which is supplied
to the Company during the Off-Peak Period Hours.


 


For Option A Rates, the On-Peak Period
Hours shall be those hours, Monday through Friday, beginning at 7 A.M. and ending at 11 P.M. The Off-Peak Period Hours shall be
all other weekday hours and all Saturday and Sunday hours.


 


For Option B Rates, the On-Peak Period Hours shall be those
hours, Monday through Friday, beginning at 1 P.M. and ending at 9 P.M. during Summer Months, and beginning at 6 A.M. and ending
at 1 P.M. during Non-Summer Months. The Off-Peak Period Hours shall be all other weekday hours and all Saturday and Sunday hours.
All hours for the following holidays shall be considered as Off-Peak: New Year’s Day, Memorial Day, Good Friday, Independence Day,
Labor Day, Thanksgiving Day, Day after Thanksgiving, and Christmas Day.


 


SAFETY, INTERCONNECTION AND INSPECTION
REQUIREMENTS


This Schedule is only applicable for installed
generation systems and equipment that comply with the provisions outlined in the North Carolina Interconnection Procedures, Forms,
and Agreements for State-Jurisdictional Generator Interconnections (hereinafter "Interconnection Procedures") as approved
by the North Carolina Utilities Commission.


 


The Customer must submit an Interconnection
Request, which must be accepted by the Company, pay an application fee, comply with the liability insurance requirements of the
Interconnection Procedures and enter into a specific contract providing for interconnection to the Company's system.


 


In order to ensure protection of the Company's
system, the Company reserves the right, at its discretion, to inspect the Customer's generation system and equipment at any time
upon reasonable notice to the Customer in an effort to ensure compliance with the Interconnection Procedures. The Company reserves
the right to disconnect electric service to the premises if the Company determines that the Customer's generation system and equipment
is not in compliance with the Interconnection Procedures and is being operated in parallel with the Company's system.


 


INTERCONNECTION FACILITIES CHARGE


The Customer shall be responsible for providing
suitable control and protective devices on his equipment to assure no disturbance to other customers of the Company or to the Company
itself, and to protect the Customer's facilities from all loss or damage which could result from operation with the Company's system.


 


The Company will furnish, install, own,
and maintain interconnection facilities as necessary for service under this Schedule including: suitable control and protective
devices installed on Company equipment to allow operation of the Customer's generating facilities; metering facilities equipped
to prevent reverse registration for the measurement of service under this Schedule; and any other modifications to its system required
to serve the Customer under this Schedule as determined by the Company.


 


All such facilities shall be subject to
a monthly charge under the Extra Facilities provisions of the Company's Service Regulations provided, however, that the minimum
Extra Facilities charge shall not apply. The Company reserves the right to install at any time facilities necessary for the appropriate
measurement of service under this Schedule and to adjust the Interconnection Facilities Charge accordingly, solely at the option
of the Company.


 


When the installed generating system complies
with the North Carolina Interconnection Procedures and no additional interconnection facilities are required, the Facilities Charge
shown in the Rate above will be applied to cover the cost of the Company's metering and installation.


 


DETERMINATlON OF CAPACITY CREDITS


Capacity Credits will be based on the energy,
in kilowatt-hours, which is supplied to the Company during the On-Peak Period Hours of the Month and will be applied to the Customer's
bill in the appropriate Month.


 


Capacity Credits are available only to
qualifying facilities classified as "new capacity" in accordance with the Federal Energy Regulatory Commission's Order
No. 69 in Docket No. RM79-55 and in accordance with the North Carolina Utilities Commission's Order dated September 21, 1981 in
Docket No. E-100, Sub 41.


 



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Schedule PP-N (NC) continued


 


POWER FACTOR CORRECTION


When the average Monthly power factor of
the power supplied by the Customer to the Company is less than 90 percent or greater than 97 percent, the Company may correct the
energy, in kilowatt-hours, as appropriate. The Company reserves the right to install facilities necessary for the measurement of
power factor and to adjust the Interconnection Facilities Charge accordingly, solely at the option of the Company.


 


PAYMENTS


Credit billings to the Customer shall be payable
to the Customer within fifteen (15) days of the date of the bill.


 


Bills under this Schedule are due and payable
on the date of the bill at the office of the Company. Bills are past due and delinquent on the fifteenth day after the date of
the bill. If any bill is not so paid, the Company has the right to suspend service. In addition, all bills not paid by the twenty-fifth
day after the date of the bill shall be subject to a one percent (1%) late payment charge on the unpaid amount. This late payment
charge shall be rendered on the following month's bill and it shall become part of and be due and payable with the bill on which
it is rendered.


 


CONTRACT PERIOD


Each Customer shall enter into a contract
which shall specify the amount of capacity committed for delivery throughout the term of the contract and shall specify one of
the following as the initial term and associated rate: variable rate for five (5) years or fixed long-term rate for five (5), ten
(10) or fifteen (15) years. Following the initial term, the Variable Rate as from time to time amended by the North Carolina Utilities
Commission shall apply to all power purchased by the Company until superseded by a new contract.


 


The Company reserves the right to terminate
the Customer’s contract under this Schedule at any time upon written notice to the Customer in the event that the Customer violates
any of the terms or conditions of this Schedule or operates its generating facilities in a manner which is detrimental to the Company
or any of its Customers or fails to deliver energy to the Company for six (6) consecutive Months. In the event of early termination
of a contract under this Schedule, the Customer will be required to pay the Company for costs due to such early termination.


 


North Carolina Ninth Revised Leaf No. 91


Effective for service on and after May 23, 2009


NCUC Docket No. E-100, Sub 117


Order dated May 13, 2009





 



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	NC STANDARD PPA.DOC (Revised
    November 1, 2008)	NCUC Docket No. E-100, Sub. 117


 


IN WITNESS WHEREOF, on the day and year
first above written, the Parties hereto have caused their official names to be hereunto subscribed by their respective Presidents,
Vice Presidents or Authorized Representatives. Executed in Duplicate.


 





 



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