STATE OF CONNECTICUT

DEPARTMENT OF ENVIRONMENTAL PROTECTION

STATE OF CONNECTICUT

AND

ALGONQUIN GAS TRANSMISSION COMPANY

TRADING AGREEMENT AND

ORDER NO. 8123A

MODIFICATION NO. 1

TRADING AGREEMENT AND ORDER MODTFTCAnON

Tn the matter of a Trading Agreement and Order between the Commissioner of Environmental

Protection ("Commissioner") and Algonquin Gas Transmission Company ("Algonquin").

WHEREAS, the Commissioner and Algonquin, having agreed to the terms and conditions set

forth in Trading Agreement and Order No. 8123A issued on April 30, 2003, do now, by mutual

agreement, modify Trading Agreement and Order No. 8123A as follows:

1. Delete the dates May I, 2007, April 30, 2007, and April 31, 2007 and substitute

therefor May I, 2009, in paragraphs A.6., C. t., C.2., C.3.a., and C.3.b.

2. Delete paragraph A.5. in its entirety and substitute the following therefor:

Emission testing performed on the dates indicated in Table I, resulted in NOx

emission rates as follows:

Table 1

Emission Unit Fuel Heat Input FLER Baseline Allowable Date of Next

MMBtu/hr LbsIMMBtu Emission rale Rate Emission Emission

Lbs/MMBtu LbslMMBtu Test Test Due

C-7 Natural 46 .145 .410 .170 1126/05 1126110

gas

3. Delete paragraph A.9. and Table 2 in its entirety.

4. Delete paragraph B.I. and Table 3 in its entirety, and substitute the following

therefore:

The Commissioner, in accordance with the provisions ofthis Trading Agreement

and Order, pursuant to Section 22a-174-22(d)(3) oflhe Regulations, will allow

Algonquin and approved sources within Connecticut to use the NOx DERCs

referenced in Table 2 ofthis Trading Agreement and Order for purposes of

I Printed lin Ret'yded J)~per.

7'1 Elm Sln:el • lIanford. CT mil Clf> .'i 127

"" /-:quIII ()1'I'Orlllllil.I' 1-:"'l'loY"r
Algonquin Gas Transmission Company 2 Trading Agreement and Order

No. 8123A Modification No.1

compliance under Section 22a-l74-22G) ofthe Regulations to achieve a portion

ofthe nitrogen oxide emission reductions required by Section 22a-174-22 ofthe

Regulations. DERC creation serial numbers assigned by the Department of

Environmental Protection ("Department") to these approved reductions are

provided in Table 2 ofthis Trading Agreement and Order:

Table 2

Year of Ozone season DERC Ozone Non-Ozone season DERC Non- Expiration

Generadon serial numbers serial numbers Ozone Date

1997-1999 Not assigned 7 Not assigned 52 12/31/04

2000 N/A 0 CTOO/8123(DC)Noxnoz1-19 19 12/31/05

2001 eTO118 123(DC)Noxozl ~2 2 CTOI/8123(DC)Noxnozl-14 14 12/31/06

2002 CT02/8123(DC)Noxoz1-6 6 CT02/S123(DC)Noxnoz1-16 16 12/3] 107

5. Delete paragraph C.l O. and substitute the following therefore:

Extension. No later that May 1, 2009, with respect to the turbine, Algonquin shalt

comply with the requirements ofSection 22a-t 74-22(d)(2)(A) ofthe Regulations

and amendments thereto. There is no assurance that the Commissioner will grant a

written extension ofthis Trading Agreement and Order.

6. Delete paragraph C.13. and substitute the following therefore:

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 ofthe Regulations: "Commissioner"

means the Commissioner or a representative ofthe Commissioner; "Non-olone

season" means the period from October t through April 30 in any given calendar

year; "Ozone season" means the period May t through September 30 in any given

calendar year.

7. Delete paragraph C.14. and substitute the following therefore:

Dates. The date ofissuance ofthis 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. The date ofsubmission to the Commissioner of

any document required by this Trading Agreement and Order shall be the date

such document is received by the Commissioner. The date of any notice by the

Commissioner under this Trading Agreement and Order, including but not limited

to notice of approval or disapproval of any document or other action, shall be the

date such notice is deposited in the U.S. mail or is personally delivered, whichever

is earlier. Except as otherwise specified in this Trading Agreement and Order, the
Algonquin Gas Transmission Company 3 Trading Agreement and Order

No. 8123A Modification No. I

word "day" as used in this Trading Agreement and Order means calendar day.

Any document or action which is required by this Trading Agreement and Order to

be submitted or performed by a date which falls on a Saturday, Sunday, or a

Connecticut or federal holiday shall be submitted or performed by the next day

which is not a Saturday, Sunday, or Connecticut or federal holiday.

8. Delete the word "individual" and substitute therefore the word "Section" in

Paragraph C.26.

9. Delete the name "Mr. Michael lafleur" from paragraph C.27.

All other terms and conditions ofTrading Agreement and Order no. 8123A issued by the

Commissioner acting under Chapter 446c, Sections 22a-6, 22a-1 71 , 22a-l 74, 22a-1 76, and 22a177 ofthe Connecticut General Statutes shall remain in effect.

!

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Algonquin Gas Transmission Company 4 Trading Agreement and Order

No. 8123A Modification No. I

Algonquin hereby consents to the entry ofthis modification to the Trading Agreement and Order

without further notice.

Algonquin Gas Transmission Company

Signature: ~~ Type Name: 1h()"'I~!J, 1/ ~J't:r;.-

Type Title: G~o1ef~f Wl"-'U:'1Ar

Date: --"~~!..L+~~()~~--

a modification of an Order of the Commissioner of Environmental Protection.

Date

MAILED CERTIFIED MAIL,

RETURN RECEIPT REQUESTED

Certified Document No. 7002 2030 0006 5680 7468