# STATE OF CONNECTICUT DEPARTMENT OF ENVIRONMENTAL PROTECTION

In the matter of The State ofConnecticut and PSEG Power Connecticut LLC ) ) ) ) ) 

### Trading Agreement and OrderNo. 8243 Modification I

Whereas, the CommissionerofEnvironmental Protection ("Commissioner") and PSEG Power ConnecticutLLC (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 saidTrading 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 boilerno laterthan the first ofeach calendar month to assure compliance for, at a minimum, that calendarmonth. DERCs required shall be adjusted upwards by 100% ifDERCs are not in PSEG's possession for use priorto the first day ofeach month or applicable season. However, nothing in this Trading Agreement and Order shall affect the Commissioner's authority to institute any proceeding ortake any other action to require additional upward adjustment, based on the gravity ofany alleged noncompliance or violation oflaw. PSEG shall permanently retire the quantity of DERCs equivalentto the excess emissions plus a 100% premium within sixty (60) days ofPSEG's discovery ofthe DERC shortfall. PSEG shall certify and report any such DERC retirement to the Commissionerin accordance with paragraph C.II. of this Trading Agreement and Order. 3. Delete paragraph Cl.c. and substitute the following therfor: No laterthan the tenth day ofeach 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 Employert. PSEG Power ConnecticutLLC 2 Trading Agreement and OrderNo. 8243 Modification 1 4. Delete paragraph CA. and substitute the following therefor: FLERExceedance. Noncompliance with an established FLER shall subjectPSEG to make restitution by matching the quantity ofemissions ("true up") caused by the exceedance plus a 100% premium. The true up in tons ofDERCs 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. Ifthe period ofnoncompliance is not known, the time period from the completion ofthe 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 ortake any other action to require additional upward adjustment, based on the gravity ofany alleged noncompliance or violation oflaw. PSEG shall permanently retire DERCs calculated in accordance with the above plus a 100% premium within sixty (60) days ofPSEG's discovery ofthe FLER exceedance. PSEG shall report any FLER exceedance to the Commissionerin accordance with paragraph C.12. ofthis Trading Agreement and Order. 5. Delete paragraph C.7 and substitute the following therefor: Extension. No laterthan May 1,2009, with respect to the boiler, PSEG shall comply with the requirements ofSections 22a-174-22(d)(l) and 22a-174-22(d)(2)(A) ofthe Regulations and amendments thereto. There is no assurance that after full program review ofthis and otherTrading Agreements and Orders that the Commissioner will grant a written extension ofthis 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 Commissionerhas provided written authorization for use in compliance with Section 22a-174-22 ofthe Regulations; "Commissioner" means the Commissioner or a representative ofthe Commissioner; The date of"issuance" ofthis Trading Agreement and Orderis the date the Trading Agreement and Orderis deposited in the U.S. mail orpersonally delivered, whicheveris earlier. "Ozone season" means the period May 1 through September 30 in any given calendaryear. 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 PowerConnecticut LLC 3 Trading Agreement and OrderNo. 8243 Modification 1
9. Include anew paragraph C.24. as follows: Future Compliance Report. On orbefore September 1, 2008, PSEG shall submit areport in writing to the Commissioner, as directed in paragraph C.23. ofthis Trading Agreement and Order, indicating how the facility shall comply with section 22a-I74-22 ofthe Regulations with respect to the boiler on and after May 1, 2009. All otherterms and conditions ofTrading Agreement and Order No. 8243 issued by the Commissioner acting under Chapter446c, Sections 22a-6, 22a-I7I, 22a-I74, 22a-176, and 22a-I77 ofthe Connecticut General Statutes shall remain in effect. PSEG hereby consents to the entry ofthis modification to the Trading Agreement and Order without further notice. PSEG**POW~~NECTICy:r-ur** 

### 11;1 Signature: 

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# 4**~t** d'pe-.aJ,'n< If.**c;oo~** I Issued as a modification ofan Order ofthe Commissioner ofEnvironmental Protection

# ~al'eMo- ..fol Gina McCarthy Commissioner

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