STATE OF CONNECTICUT

DEPARTMENT OF ENVIRONMENTAL PROTECTION

In the matter of

The State of Connecticut and

PSEG Power Connecticut LLC

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Trading Agreement

and Order No. 8243

Modification I

Whereas, the Commissioner of Environmental Protection ("Commissioner") and PSEG Power

Connecticut LLC (PSEG) having agreed to the terms and conditions set forth in Trading Agreement

and Order 8243 issued on February 13,2003, do now, by mutual agreement, modify said Trading

Agreement and Order as follows:

I. Delete the date April 30, 2007, and substitute therefor the date May 1,2009, in

paragraphs CI., C.l.i., and C.2..

2. Delete paragraph Cl.b. and substitute the following therfor:

Document that sufficient approved DERCs are available for the boiler no later than

the first of each calendar month to assure compliance for, at a minimum, that

calendar month. DERCs required shall be adjusted upwards by 100% if DERCs are

not in PSEG's possession for use prior to the first day of each month or applicable

season. However, nothing in this Trading Agreement and Order shall affect the

Commissioner's authority to institute any proceeding or take any other action to

require additional upward adjustment, based on the gravity of any alleged

noncompliance or violation of law. PSEG shall permanently retire the quantity of

DERCs equivalent to the excess emissions plus a 100% premium within sixty (60)

days of PSEG's discovery of the DERC shortfall. PSEG shall certify and report any

such DERC retirement to the Commissioner in accordance with paragraph C.II. of

this Trading Agreement and Order.

3. Delete paragraph Cl.c. and substitute the following therfor:

No later than the tenth day of each month, calculate and permanently retire DERCs

used in the preceding calendar month for the boiler as follows:

DERCs (tons)= [actual fuel use in MMBtu x (.4 IbsIMMBtu (.95 x .25 IMMBtu»]

2000lbs/ton

( Printed on Recycled Paper)

79 Elm Street • Hartford. CT 06106·5127

An Equal Opportunity Employer
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PSEG Power Connecticut LLC 2 Trading Agreement

and Order No. 8243

Modification 1

4. Delete paragraph CA. and substitute the following therefor:

FLER Exceedance. Noncompliance with an established FLER shall subject PSEG to

make restitution by matching the quantity of emissions ("true up") caused by the

exceedance plus a 100% premium. The true up in tons of DERCs shall be equal to the

FLER exceedance in IbslMMBtu, multiplied by the total heat input during the period of

noncompliance divided by 2000 lbs/ton. If the period of noncompliance is not known,

the time period from the completion of the last/previous Commissioner witnessed

emission test through the date the FLER compliance is achieved as approved by the

Commissioner shall be used. However, nothing in this Trading Agreement and Order

shall affect the Commissioner's authority to institute any proceeding or take any other

action to require additional upward adjustment, based on the gravity of any alleged

noncompliance or violation of law. PSEG shall permanently retire DERCs calculated in

accordance with the above plus a 100% premium within sixty (60) days of PSEG's

discovery of the FLER exceedance. PSEG shall report any FLER exceedance to the

Commissioner in accordance with paragraph C.12. of this Trading Agreement and Order.

5. Delete paragraph C.7 and substitute the following therefor:

Extension. No later than May 1,2009, with respect to the boiler, PSEG shall comply

with the requirements of Sections 22a-174-22(d)(l) and 22a-174-22(d)(2)(A) of the

Regulations and amendments thereto. There is no assurance that after full program

review of this and other Trading Agreements and Orders that the Commissioner will

grant a written extension of this Trading Agreement and Order.

6. Delete paragraph C.9. and substitute the following therefor:

Definitions. As used in this Trading Agreement and Order, "Approved DERCs" are

those for which the Commissioner has provided written authorization for use in

compliance with Section 22a-174-22 of the Regulations; "Commissioner" means the

Commissioner or a representative of the Commissioner; The date of "issuance" of this

Trading Agreement and Order is the date the Trading Agreement and Order is deposited

in the U.S. mail or personally delivered, whichever is earlier. "Ozone season" means the

period May 1 through September 30 in any given calendar year.

7. Delete the word "individual" and substitute therefore the word "section" in paragraph

C.22..

8. Delete the name "Ms. Wendy Jacobs" in paragraph C.23 ..
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PSEG Power Connecticut LLC 3 Trading Agreement

and Order No. 8243

Modification 1

9. Include a new paragraph C.24. as follows:

Future Compliance Report. On or before September 1, 2008, PSEG shall submit a report

in writing to the Commissioner, as directed in paragraph C.23. of this Trading

Agreement and Order, indicating how the facility shall comply with section 22a-I74-22

of the Regulations with respect to the boiler on and after May 1, 2009.

All other terms and conditions of Trading Agreement and Order No. 8243 issued by the

Commissioner acting under Chapter 446c, Sections 22a-6, 22a-I7I, 22a-I74, 22a-176, and 22a-I77

of the Connecticut General Statutes shall remain in effect.

PSEG hereby consents to the entry of this modification to the Trading Agreement and Order

without further notice.

PSEG POW~~NECTICy:r-ur11;1

Signature: C

Name: eb>eA --;-: qrJ1t>(}

Title:J,,.:'<L 4 ~t d'pe-.aJ,'n<

If. c;oo~ I

Issued as a modification of an Order of the Commissioner of Environmental Protection

~al'eMo- ..fol Gina McCarthy

Commissioner

CITY OF NEW HAYEN LAND RECORDS

MAILED CERTIFIED MAIL,

RETURN RECEIPT REQUESTED

Date

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