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# STATE OF CONNECTICUT
DEPARTMENT OF ENVIRONMENTAL PROTECTfON

In the matt€rof ) ) 

### The State ofConnecticut and ) ) 

### Middletown ?ower LLC ) Trading Agreement 

### and Order No. 8213

Whereas, the Commissioner of Environmental Protection ("Commissioner") and Middleto-w"Tl PO

..ler LLC ("M?-) agree that it is in the public interest that they ,,'ork cooperatively to improve 

### the air quality within the State of Connecticut and that the use of emission reduction trading will achieve this result in a timely and cost-effective manner:

A. At the request and with the agreement ofM?, the**Co~~issioner** finds the following:

1. M? iS'an exempt wholesale electric**genera~1ng** company 

### with its 

### principal place ofbusiness. in Sewickley,**Pe~~sylvania.** 

### On**Dece~ber** 

### 15, 1999 MP purchased from The Connecticut Light and ?ower Company and now owns
one fossil**£u~l-fired** 

### electric generating station, Middletowu Station, at 1866**~iver** 

### Road in**Middleto~m,** 

### COlli"1ecticut ("facility").

2. At the faciliby, NRG Middletown Operations Inc. operates**Middleto~~** 

### Station Unit 2, Connecticut RegistrationNumber 104-0098, a 120megawatt rrontfired boiler ("boiler"). The boilerhas the dual capacity to operate on fuel oil (No. 6 or No.2) and/or natural gas. No.2 fuel oil is usedprimarily as an ignition fuel as part of**th~** 

### start-up procedure. A continuous emissions monitor ("CEM"), certified to 40 Code of Federal Regulations**("C?~")** 

### ?art 75, measures nitrogen oxide ("NOx")emissions from the boiler.

3.**~Jring** 

### the year 1981, prior to modifications of the boiler's burner, combustion controls and operating conditions, and prior to the installation ofnatural gas operating capabilities, and based on**Depart~ent** 

### of**Environ~ental** 

### Protection (nDepartment") approved stack test data and A?-42 emission factor data, the average

Initials: (Prinled CIn**R~cycJed** Paper) ;9 F.Jm Slreel • Hmford. CT 06106·5127**hlln·{"'~** .. "

.. ,., ••• 

### Date:

### Middletown Power LLC TradingAgreement and OrderNo. 8213

annual NOx emission rate for**Middleto~~** 

### Station Unit 2

was 0.283 pounds permillion British thermal units ("lbs/MMBtu") ofheat input when operating on No.6 fuel oil and 0.17 lbs/MMBtu of heat input when operating on 

### No.2 fuel oil. On and after May 

### 31, 1995, the Regulations of Connecticut State Agencies ("Regulations") require that the boiler emit NOx at a rate no greater than 0.25 Ibs/MMBtu ofheat input when operating onNo. 6 

### fuel oil and 0.20 

### lbs'l:MMBtu of heat input when operating on No. 2 

### fuel oil or natural gas.

4. In 

### January 1994, The Connecticut Light and ?ower 

### Company completedmodifications of theboiler's burner and combustion controls, and began to te·st and adjust operating conditions, thereby reducing the boiler's NOx emission rates below its allowed and actual baseline emission rates. Natural gas operating capabilities

were installed at the facility by July, 1997 to**pro~ide** 

### further reductions ofNOx emissions. Such modifications and installation capabilities enable,dMP's boiler to frequently meet and operate below the emission limitation specified in 

### Section 22a-174-22(e) of the**~egulations.**

5. 

### On and afterDecember 15, 1999, MP may obtain approval of actual reductions in NOx 

### emissions, generated by operating the boiler at a rate which is below 0.25 lbs/MMBtu ofheat input when operating on No. 6 

### fuel oil, 0.17 lbs/MMBtu ofheat input when operating on No. 2 fuel oil and 0.20 lbs/MMBtu of heat input when operating onnatural gas for use as discrete emission

"

II 

# II

re 

### uee

_..**_L.~** .r...:**_l.~** • .:> Cl L. 

### during the ozone season, 

## MP may obtain aooroval for such reductions for use as Budget discrete emission reduction credits ("BDERCs").

6. 

### Pursuant to Section 22a-174-22(j) of the Regulations, MP 

### intends to acquire and generate approved DERCs until May 1, 2003 at 

### the facility. Approved DERCs are defined for purposes of this Trading Agreement and Order as those for which the**Co~~issioner** 

### has provided written authorization for use in compliance with

Initials: 2 

### Date:Middletown ?ower LLC Trading Agreement and Order No. 8213

Section 22a-l74-22 of the Regulations. MP will acquire approved**D~acs** monthly on an as-needed basis, as determined by actual NOx emissions in the event that the 24-hour average of actual NOx emissions exceeds**th~** NOx emission limitations of Section 22a-174-22(e) of
tne Regulations.

7. Wnen properly documented by MP, and approved by the**Com~issioner,** the reductions in NOx emissions identified above, and as computed in accordance with the terms of this Trading Agreement and Order,**~ill** conform to the**~equirements** of Section 22a-174-22{j)(3) of the Regulations. Specifically, the reductions vlill b Q

•

Real because they result in a reduction of actual emissions released into the air, net of any consequential increase in actual emissions resulting from shifting demand. The emission reductions are properly measured, recorded and reported.

Quantifiable because they are based on continuous emission monitoring data as applied in an appropriate reliable and replicable protocol, providing the rate and total mass amount of reduction.

Surplus because they are not**~equired** by any**Co~~ecticut** statute or regulation mandated by a current State Implementation Plan ("SI?n), ·and are not currently relied upon in any applicable attainment plan, any reasonable further progress plan or milestone demonstration.**?e~anent** because the'advanced control system and installation capabilities are in place and operating, and an appropriate tracking**syst~~** is in place to monitor all data required to verify and quantify the creation of DEacs.

Enforceable because the DERCs are approved by the Commissioner retrospectively after the submission by MP of the seasonal or annual reports that will document

Initials: 3 Date:Middletovm Power LLC

their creation. Trading Agreement and Order No. 

### 8213

8. As**doc~~ented** in**Attacp~ent** 1, attached to and incorporated by reference into this Trading**Agre~~ent** and Order, 9.9 tons of ozone season NOx BDERCs and 66.1 tons ofnon-ozone seasonNOx DERCs were**gen~rated** by the boilerbetween December 16, 1999 and June 30, 2000.

9. Ten (10) percent of these DERCs (1 ton ozone season, 6.6 tons non-ozone season) are retired and permanently removed from all calculations to assure a benefit to the environment. The total available for use, after rounding.down to the nearest whole number for annual serial**assigr~~ent** purposes, is 67 DERCs 

### (8 tons ozone season, 59 tons non-ozone season).

3.1. The Commissioner, in accordance with the provisions of this Trading Agreement**~~d** Order, pursuant to Section 22a-174- 22(d)(3) of the Regulations, will allowMP and approved

sources within Connecticut to use 8 tons of ozone season NOx 3DERCs and 59' tons ofnon-ozone seasonNOx DERCs referenced in paragraph A.9. of this Trading Agreement and Order for purposes of compliance under Section 22a-174-22(j) of the Regulations to achieve a portion of the nitrogen oxide emission reductions required by Section 22a-174-22 of the**Re~ulations.** D3RC creation serial**n~~ers** assigned by the Department to these approved reductions ofNOx emissions are provided 

### in Table! of this Trading Agreement and Order:

TABLE 1



### I 1999 

### I 2000 Ozone season NOx N/." 

# I CTOO/8213(BDC)R3DERC serial numbers 

### 98NOxQzl-8 Non-ozone season NOx 

### CT99/8213(DC)R· CTOO/8213(DC)R DERC serial numbers 98NOxnozl-B**98NO~'"1oz1-51**
3.2. Ozone season**BD3~Cs** may be generated and used in accordance with this Trading Agreement and Order.

3.3. Upon sufficient documentation as prescribed below, the

Initia1s: 

# £K"'R>-

_ Date:**Middl~town** 

### Power LLC TradingAgreement and Order No. 8213



### Commissionermay provide written approval of the generation of additional DERCs byMP retrospectively. Approved DERCs and BD3RCs generatedbyMP may be held by MP or transferred to otherpersons 

### in accordance with this Trading Agreement andOrder.

3.4. The Comuissioner, inaccordance with the provisions of this Trading Agreement andOrder, pursuant to Section 22a-174- 22(d)(3) 

### of the Regulations, hereby allows M? 

### to comply**W~Ln** 

### Section 22a-174-22(d){1) of 

### the Regulations through use of**D:=:~C** 

### trading.

c. With the agreement ofM?, the Commissioner, acting under Sections 22a-6, 22a-17l, 22a-l74, 22a-176, and 22a-177 of the Connecticut General Statutes, orders M? 

### as follows:

1. DE2C generation.

a. Forpurposes ofgenerating DERCs from the boiler at the facility, 

### MP shall use 0.25 lbs/MMBtu ofheat inputwhen operating·on No. 6 fuel oil, 0.17 Ibs/MMBtu ofheat inputwhen operating on No. 2 fuel oil and 0.20 Ibs/MMBtu ofheat input when operating



### on natural gas as the baseline emission rates for the boiler, or theproportioned baseline emission rate set forth in footnote 2 

### of paragraph C.lI. 

### of this TradingAgreement and Order, when simultaneously operating onmore than.one fuel. MP 

### shall use the above referencedbaseline emission rate{s) when calculating theproportionedbaseline emission rate.**~~en** 

### calculating DERCs,**M~** 

### shall use the lower of d?ily total**C~~-calculated** 

### MM3tu value.or actual fuel usage data for the boiler in MMBtu/day, when determining heat input. The ten (10) 

### percent uncertainty discount due 

### to not having data from an 

### official Method 7-E 

### stack test or**C~~** 

### data while operating on No. 2 fuel oil shall be incorporated into the proportioned baseline emission rate whenever the boiler is operating 

### on No. 

### 2 fuel oil as referenced 

### in paragraph C.ll. of 

### this Trading Agreement andOrder and shall be retired

### aJ the

Initials: 5 

### Date:Middletown Power LLC Trading Agreement and Order No. 8213

facility and permanently removed from all calculations on a daily basis. An additional ten (10) percent of all DERCs (tons) generated by the boiler shall be retired by the facility and permanently removed from all calculations on a daily basis to'assure a benefit to the environment.

b.Non-ozone Season Restrictions. Non-ozone season NOx D3RCs generated

### byMP shall be created and approved in accordance with this Trading Agreement and Order, and shall remain valid until they are used or until May 1, 2003, whichever occurs first.

c.Ozone Season Restrictions. The Doiler is subject to Section 22a-174-22a of the Regulations ("NOx Budget ?rogramH ) in 1999 and every year thereafter. The boiler may generate**ozon~** season BDERCs to comply with Section 22a-174-22 of the Regulations in accordance with paragraph C.I.a

.. of this Trading Agreement and Order and the following conditions and restrictions: 1) BD3RCs shall only' be generated by the boiler from May 1 through September 30 of a given year, 2) 3D3RCs shall only be used by other NOx Budget Program sources located in Connecticut, 3) 3D2RCs shall only be used to offset ozone season excess emissions, and shall not be used for compliance during the pon-ozone seasoni and 4) 3DERCs**gen~rated** during a given year shall only be used during the following ozone season, with the exception of BD3RCs generated during 1999, which may be**~sed** in the 2001 ozone season. For example, 3DERCs generated during the 1999 ozone season may be used during the 2001 ozone· season. HOHever, BDERCs generated during the 2000 ozone season may only be used during the 2001

ozone season. 3D3RCs may be generated until May 1, 2003. 3DERCs are subject to all DERC requirements set forth in this Trading Agreement and Order except for those requirements pertaining solely to non-ozone

season DERCs and as otherwise may be provided.

Date: 6**D~RC** Use. Approved DERCs shall be acquired for compliance with the emission standards in Section 22a174-22 of the Regulations for the period beginning 

# .itc?- 2.

Initials:**Middleto~m** Power LLC Trading Agreement and Order No. 8213

December 15, 1999 and continuing until M? achieves permanent compliance for the boiler with the emission standards in Section 22a-174-22(e) of the**~egulations** or until May 1, 2003, whichever occurs .first. MP shall acquire approved**DE~Cs,** and document and record the**~~o~,ts** ofNOx**e~issions** and**DE~Cs** used by serial number (if assigned) by the boiler each day, and shall maintain and provide such records in accordance with the following and Section 22a-174-4 of the**~egulations,** until May 1, 2003:

a. 3efore the first day of each month, calculate projected worst case DERCs required for that calendar month as follows:

DERCs (tons) 

## = {[estimatedworst case NOx emission
rate in lbs/MMBtu

- ((0.95) x (NOx**R~CT** limit or proportioned·emission rate calculated pursuant to Section 22a-174-22(f) (2) (A) of the rtegulations in Ibs/MMBtu»)] x (Estimated fuel use in MMBtu)} 2000 pounds.



### o. Acquire sufficient approved DERCs no later than the first· day of each month to assure compliance with the emission standards in Section 22a-174-22 of the Regulations for, at a**miniw~~,** that calendar month. With the exception of BDERCs,

excess**DE~Cs** from previous months can 

### be applied
to subsequent**~onths.** BDERCs are subject to the limitations set forth in paragraph C.l.c. of this Trading Agreement and Order. At a minimum, DERes required shall be adjusted**up~ards·by** 100% if**D3~Cs** are not in MP's possession prior to the first day of each month.

c. No later than the twentieth day of each month, calculate DERCs used in the preceding calendar month, as follows:

(l) For theboiler on each day, determine whether the 24-nour average

### NOx emission rate* is

Initials: 7 Date:Middletown ?ower LLC Trading .l:\.greemo=>-l1t and Order No. 8213

less than the baseline emission rate or greater than the NOx RACT limit.

(2)**~ben** the boilerhas a daily NOx emission rate (24-hour average) exceeding the NOx RACT limit, calculate the amount of DERCs used, as follo'ws:

DERCs (tons) 

## =**{[(C~~-recorded** NOx daily average emission rate in lbs/MMBtu*)

- «0.95) x (NOy.**~l:\.CT li~it**  or**propo~tioned** emission rate calculatedpursuant to Section 

### 22a-174-22(f)(2)(A) of the Regulations in Ibs/MMBtu))] x (actual fuel use in MM3tu)} + 2000 pounds.

*This rate shall be calculatedpursuant to the**methodolo~y** described in 40 C?K ?art 75.

d. Maintain**doclli~entation** to attest to the fact that DERCs used during the ozone season ·vlere generated during the ozone season. Generator certification of this fact shall be sufficient.

e. After full program review, and if the Commissioner deems it appropriate, the Commissionermay allow the survival and use of approvedDERes beyond April 30, 2003, subject to the limitations set forth in paragraphC.l.c. of this Trading Agreement 

### and Order.

r:. ?ursuant**~o** Section 22a-174-22{d) (3) of the Regulations, MP may use NOx allowances, pursuant to Section 22a-174-22(j) of the Regulations to achieve all or a**portio~** of the reductions required by Section 22a-174-22 of the Regulations. Any allowance used for compliance with Section 22a-174-22(e) of the Regulations shall be subject to all restrictions and/or requirements applicable to DERCs contained in this Trading Agreement and

Initials: Order.

8 Date:

### Middletown ?ower LLC Trading**Agreem~lt** 

### and Order No. 8213

3. MP 

### shall maintain records for the boiler showing daily NOx mass emissions, and actual NOx emission rates (24- hour average). MP 

### shall also maintain records showing

a daily total ofall**D~RCs** 

### generated net of the applicable uncertainty and environmental discounts.

4. 

### In requesting approval of DERCs generated by 

### the boiler, M? 

### shall provide**doclli~entation** 

### containing a sample spreadsheet with calculation formulas used to determine reported**nu~bers;** 

### monthly operating reports of actual fuel usage including the**fu~l** 3TU 

### content, number ofbarrels, gallons, and 

### cubic feet used for each fuel type; dailyMMGtu for each fuel type and actual heat inputbasedupon CEM-recorded data; daily weighted and unweighted actual NOx emission rates (24- hour average); 

### and DERCs generated using the baseline emission rate(s), or the proportiqned**baseli~e ~!cission**  

### rate referenced in paragraph C.l. 

### or this Trading Agreement and Order, net of the applicable uncertainty and**enviro~~ent=l disco~~ts.** 



## s. When the daily CLM-recordedNOx emission rate is used to calculate DERCs generated by the boiler, K? 

### shall not include missing data calculated in accorcfuice with anymissing data substitutionprocedures, including those allowed under 

### 40 eFR Part 

### 75.**w~en** 

### the daily CEM-recordedNOxemission rate is 

### used to calculate DERCs used by theboiler, MP 

### shall include missing data calculated in accordance withmissing data substi=ution procedures under 40 

### C?R Part 75.



### Date: 9

# ~C.D-R

# __ No later than March 1 

### of everyyear after issufuice of this Trading Agreement and Order, MP shall include with the**~~nual** 

### Emission Statement provided to the**Co~missioner,** 

### a record of each sale or other transfer, and use of any and all of the DERCs approvedwithin and subsequent to issuance of this Trading Agreement and Order until all such DERCs have been used. MP shall also include actual NOx emissions from the boiler, and the amount of allDERCs used (including serial**nu~bers**

# .i/;~r2 6.



### Initials:**Middletow~** Power LLC Trading Agreement and Order No. 8213

(if assigned) and approved DERCs generated and/or purchased from other facilities), generated and/or approved for the previous calendar year. These reports shall be on a form prescribed by the Commissioner. This reporting may cease if a central registry 

### is approved by the Commissioner. ShouldMP choose to discontinue the generation of DERCs, MP shall notify the**Co~~issioner** in writing upon discontinuance.

7.**I~** order to consider CEM-recorded NOx emission rates valid for DERC approval, all NOx and C02/02 CEMs must comply with 40 Code of Federal Regulations ?art 75.

8. MP shall retain records and supporting**doclli~entation** as described 

### in this Trading Agreement and Order for a**rnini~~** of five years,**co~mencing** on the date such records were created. shall provide the records specified above to the Commissioner within thirty (30) days of receipt of a**writte~** request from the**COITh~issioner**.

9. Upon sufficient**doc~~entation,** as determined by the**Com~issioner,** that MP has met the requirements of paragraphs C.1., C.2., C.3, C.4., C.S., C.7., C.10, and C.11., of this Trading Agreement and Order, the"**Co~~issioner** may provide written approval ofDERCs generated by MP retrospectively, 

### in addition to those approved in paragraph 3. of this Trading Agreement and Order. Requests for approval of all subsequent**DE~C3** generated shall be submitted in**~riting** to the Commissioner. Approved**DE~Cs** generated by M? may be held or transferred to other persons. Such**DE~Cs** shall remain valid 

### until they are used or until May 1, 2003, whichever occurs first.

10. ShouldMP choose to generate additional DERCs, reports documenting, these DERCs shall be submitted to the Commissioner on an ozone season, non-ozone season (January through April and/or October through**Dec~ber),** or annual basis. Such reports shall be compiled on a monthly basis and shall be submitted at

Initials: 10 Date:

### Middletown Power LLC

least on an annual basis. TradingAgreement and Order No. 8213



### 11.**~,en** 

### the boilerhas dailyNOx emissions below**~he** 

### applicable baseline emission rate(s), or the proportionedbaseline emission rate, MP shall calculate the amount of DERCs generated as**follo~s:**


### DERCs (tons) = 

### {[Total heat input1 

### of all fuels inMMBtu

x {(proportionedbaseline emission rate2) - 

### (the C3MrecordedNOx emission rateJ))

### J + 

### 2000 Ibs/ton} x (0.90).4

1 

### Heat input shall be calculatedusing the lower ofCEMrecorded data or actual fuel usage duta in MMBtu per unit of fuel cowbusted.

2 

### This rate shall be calculatedby l)multiplying the heat input of each fuel**co~busted** 

### by the baseline emission rate(s) for sucn fuel; 2) slliT.ming those products; and 3) dividing the sumby the total neat input. If the boiler is operating exclusively on one fuel, MPmay replace the proportionedbaseline emission rate with the aoplicable baseline emission rate, for



### -
. that fuel. The ten (10) percent uncertainty discount due to not having data from

# an official Method 7-E stack test or**C&~** 

### datawhile operating on No. 2 fuel oil shall be incorporqted into the proportionedbaseline emission rate whenever theboiler is operating on No.2 fuel oil.

J 

### This rate shall be calculatedpursuant to the methodology described 

### in 40 

### Code of Federal Regulations ?art

## 75 and weightedpursuant to the Department's policy statement entitled "Guidance for Calculation ofEmission rteduction Credits and Determination ofCompliance with NOx**R~CT** 

### for Sources Subject to 40 CFR (Acid Rain**Sources)~** 

### dated 12/18/98 which is attached to fu,d incorporatedby reference into this Trading Agreement and" Order as part of**Attac~uent** 

### 1.

4**_~~** 

### additional ten (10) percent ofall DERCs (tons) generatedby the boiler shall also be retired by 

### the facility and permanently removed from all calculations

Initials: 11 

### Date:

### Middletown Power LLC Trading Agreement and Order No. 8213

on a daily basis to assure a**b~nefit** 

### to the environment.

12. 

### 3ach allowance used for compliance with Section 22a-174- 22 

### of the Regulations shall be equivalent to one discrete emission reduction credit and shall be deducted fromMP's NOx Budget**Progra~ compli~~ce**  

### account upon such use. Allowances shall be consideredused for compliance with Section 22a-174-22 

### of the Regulations when they are transferred from the facility's compliance account or overdraft account to a State of Connecticut NOx allowance retirement account.

13. ADDrovals. MP shall use best efforts to submit to the**Co~ss10ner** 

### all documents requiredby this Trading**A~reement** 

### and Orderin a 

### complete and approvable form. I! 

### the Commissionernotifies MP 

### that any**doc~~ent** 

### or other action is deficient, and does not approve it with conditions ormodifications, it is deemed disapproved,**~~d** 

### MP shall correct the deficiencies and resubmit it**"i~'nin** "he**"im~ soec~~~ed**  by**"h~** Commissioner or ir**~o w_~**  __**~L~ .~._**  1
,

__ !. 

### time is specifiedby the Commissioner, within 

### 30 days of the Commissioner's notice ofdeficiencies. In approving any doclliuent or other action under this Trading Agreement and Order, the Commissionermay approve the document or other action as submitted orperformed or with such conditions ormodifications as the**Com~issioner** 

### deems necessary to carry out the Durposes of this Trading**Agreeme~t** 

### and Order. Nothing 1n this paragraph shall excuse**noncornplia~ce** 

### or delay.

14. 

### Definitions. As used in this Tradin9 A9reement and OYQer, "Commissioner- means the Comm1SS10ner or a reoresentative of the Commissioner; -Ozone season- means the period fromMay 

### 1 through September 

### 30 in any given calendaryear, and "NOx**R~CTM** 

### means NOy. Reasonably Available Control**Technolo~y.** 

### The date of -issuanc:M

### of this Trading Agreement andOrder is the date the Trading Agreement and Order is deposited in 

### the u.s. mail or personally delivered, whichever is earlier.

15. Dates. The date of submission 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 ofany notice by the**Co~~issioner** 

### under this TradingAgreement and Order, including but not limited to notice of aooroval or disapproval ofany**doclli~ent** 

### or other**actlo~,** 

### shall be the date such notice is deoosited in the 

### U.S. mail oris personally delivered, Whichever is earlier. Except as otherwise specified in this Trading**Agree~ent** 

### and Order,

Initials: 12 Date:

### Middletovm ?ower LLC Trading Agreement and Order No. 8213



### the word "day" as used in this Trading Agreement and Ordermeans calendar day.**.~y** 

### document or action which is required by this TradingAgreement and Order to be submitted or performedby 

### a date which falls on a Saturday, Sunday or a Connecticut or federal holiday shall 

### be submitted orperformedb¥ the next day which 

### is not 

### a Saturday, Sunday or**Connect~cut** 

### or federal holiday.

16. 

### Certification ofdocuments.**~~y** 

### document, including but
noc 11mlced co**a~y** 

### nOClce, which is required to be 

### submitted to theCommissioner under this Trading Agreement and Order shall be signedbyM? or, ifM? is not an individual, byM?'s chief executive officer or a 

### duly authorized representative of such officer, as those terms are defined in §22a-430-3(b) (2) 

### of the Regulations of**Cop_~ecticut** 

### State Agencies, and by the·individual(s) responsible for actuallypreparing such document, and M?


### orMP's chief executive officer and each such individual shall certify in

### '..,riting as follows: "I 

### have personally examined and**Q~** 

### familiar with the information submitted in this document and all**attac~~ents** 

### thereto, and I 

### certify, based on reasonable**investi~atidn,** 

### inclUding my**inqui~** 

### of those individuals respons1ble fo= obtaining the information, that the submitted information is true, accurate and complete to the best 

### ofmy knowledge and belief. I 

### understand that any false**~tatement** 

### made in the submitted information is punishable as a criminal offense under §53a-l57b of the Connecticut General Statutes and any other applicable law."

17. 

### NonCOmpliance. !?is**Tra?in~ Agree~=~t**  

### and**O:d~=** 

## ip a**~1nal** 

### oreer OL**~ne** 

### COmffilSS10ner**Wl~n reSDec~**  

### to tne matters addressedherein, and is nonappealable and immediately enforceable. Failure to complywith this Trading Agreementand Ordermay subject M? 

### to an injunction and penalties.

18. 

### ?alse statements.**~~y** 

### false statement in any information**SUD~ttea** 

### Dursuant to this Trading Agreement and Order 

# tS**punisha~~e:s** 

### a**criminal~o~fense** 

### under**~?3a-157b** 

### of**~he ConneC~1CU~**  

### General**Sta~u~es** 

### and any**o~ner** 

### applicable law.

19. 

### Notice of transfer; liabilit ofM? 

### Until M? has fully Co."pl.leaWlt.n t.illS lraOlng .greemenc and Order, M? shall notify the Commissioner in writing no later than 15 days after transferringall or anyportion of 

### the facility, the operations, the site or the business which is the subject 

### of this TradingAgreement and Order or after obtaining a new mailing or location address. MP's obligations under 

### this Trading**A~reement** 

### and Order shall not be affected bythe passage or title to any property

Initials: 13 

### Date:**Middlet~wn** Power LLC

to any otherperson ormunicipality. Trading Agreement and Order No. 8213

20. Commissioner's powers. Nothing in this Trading**A~reement** and Order snall arrect the Commissioner's authorlty to institute any proceeding or take any other action to prevent or abate violations of law, prevent or abate pollution, recover costs andnatural resource damages, and to impose penalties for past, present, or future violations of law. If at any time the**Co~~issioner** determines that the actions taken by

### MPpursuant to this Trading Agreement and Orderhave not successfully corrected all violations, fully characterized the extent
or degree of any pollution, or successfull¥ abated or prevented pollution, the**Co~~issioner** may lnstitute any oroceeding to reauire M? to undertake further Investigation or-further action to prevent or abate violations orpollution.

21. MP's obligations under law.**~othing i~**  this Trading Agreement and Order snal! relleve M? or other obligations under applicable federal, state and local law.

22. No assurance b Commissioner. No provision of this ira lng .greemenc an roer andno action or**inactio~** by the Commissioner shall be construed to constitute an assurance by the Commissioner that the actions takenby M? pursuant to this Trading Agreement and Orderwill result in compliance or prevent or abate pollution.

23. Access to facility.**~~y** representative of the**Depar~ment** OI**EnVlrOTh~ental** ?rotection may enter the facility without Driornotice for the Durooses of monitoring and enrorcing the actions requIred or allowed by this Trading Agreement andOrder.

24. No effect on ri nts ofothernersons. This Trading .greemen and r**e~ ne2~ner**  crea es nor affects any rights ofpersons or**m~Dicipalities** that are not parties to this Trading Agreement and Order.

25. No Creation of Property Rights. This Trading**A~reement** and Order does noc creace any property rights wlth respect to these DERCs.

26. Notice to**Co~~issioner** of changes. Within 15 days of
cne dace MP Decomes aware or a cnange in any information submitted to the Commissionerunder this Trading Agreement and Order, or that any such information was inaccurate or misleading or that any relevant information was omitted, MP shall submit the correct or omitted information to the**Co~~issioner.**

Initials: 14 Date:Middletown Power LLC Trading Agreement and Order No. 8213

27. Notification ofnoncompliance. In the event that MP
oecomes aware chac lC old not or may not comply, or did not or rna¥ not**co~ply** on time, with any requirement of this Tradlng**Agre~~ent** and Order or of any**doc~~ent** required hereunder, MP shall immediately notify by teleohone the individual identified in the next paragraph and snaIl take all reasonable steps to ensure that any noncompliance or delay is avoided or, it unavoidable, is minimized to the qreatest extent possiole. Within five 

### (5) days**o~** the initial notice, MP shall submit in writing the date, time,**~id** duration of the noncomDliance and the reasons for the noncompliance-or delay and propose, for the review and**v~itten** approval of tne Commissioner, dates by which compliance will be achieved, and M? shall comply with any**?at~s which.m~¥~~e** **~~proyed** in**writing~by** tne Comm2sS10ner.**NO~l!lCa~lOn** Dy MP shall**no~** excuse**noncompli~ice** or d9lay, and the Commissioner's approval of any compliance dates proposed shall not excuse noncompliance or delay unless specifically so stated by the Commissioner in writing.

28. Submission of documents.**_~y doclli~ent**  required to be**sUDml~ced ~o**  Lne cOffiffi2ssioner under this Trading Agreement and Order shall, unless otherwise specified in this Trading Agreement and Order or in writing by the**Com~issioner,** be directed to: Wendy Jacobs Department of**3nviroTh~ental** ?rotection 3ureau ofAirMana¥ement Emissions and Credlt Trading Section 79 Elm Street Hartford, Connecticut 06106-3127

Initials: 15 Date:Middletown Power LLC Trading Agreement and Order No. 8213

MP consents to the issuance of this Trading Agreement and Order without further notice. The undersigned certifies that he/she is fully authorized to enter into this Trading Agreement and Order and to legally bind MP to the terms and conditions 

### of the Trading Agreement and Order.

Protection on



### Jr. LLC 

# o

the or Middletown Power

# 6~~t,QL

order Date: Type Name: Signature:

'Type Title:

Issued as a final

Environmental**TO~TN** O?**MIDDLETO~W L.~~TD**  RECORDS**~~.ILED** CERTIFIED**~~IL, RETU~~**  RECEIPT REQUESTED Certified Document No.

16