Document:

EXHIBIT 10-30

		[Execution Copy]
	 

	 
		 
	 

	 
		TE NUCLEAR SECURITY
		AGREEMENT
	 

	 
		SECURITY AGREEMENT, dated December 16, 2005
		(the “Agreement”), by and between FIRSTENERGY NUCLEAR GENERATION
		CORP. (“Debtor”), an Ohio corporation and THE TOLEDO EDISON COMPANY
		(“Secured Party”), an Ohio corporation. 
	 

	 
		BACKGROUND
	 

	 
		A. Debtor and Secured Party have entered
		into a certain Purchase and Sale Agreement, dated as of May 18, 2005, as
		supplemented pursuant to that certain Letter Agreement, dated as of the date
		hereof (“Purchase Agreement”), pursuant to which Debtor has purchased
		from Secured Party certain Purchased Assets, as defined in the Purchase
		Agreement. Capitalized terms used herein shall have the meaning given to them
		in the Purchase Agreement unless otherwise defined herein.
	 

	 
		B. As provided by the Purchase Agreement,
		Debtor has delivered to Secured Party a Secured Promissory Note, dated the date
		hereof, in payment of the Purchase Price for the Purchased Assets.
	 

	 
		C. Debtor wishes to secure its obligations
		under the Secured Promissory Note by granting to Secured Party a security
		interest in the Purchased Assets.
	 

	 
		1. Grant of Security Interest. Debtor hereby conveys, assigns, transfers and grants
		to Secured Party a security interest in the Collateral (as defined in section
		3) to secure the Debtor’s performance of the obligations set forth in
		Section 4.
	 

	 
		2. Collateral. The
		collateral covered by this Agreement (“Collateral”) shall consist of
		the following:
	 

	 
			
				
				   
				

			 	
				
				  a.
				

			 	
				
				  Debtor’s 1.65% undivided
				  ownership interest in Unit No. 2 of the Beaver Valley Nuclear Generating
				  Station, Borough of Shippingport, Pennsylvania;
				

			 

 

	 
			
				
				   
				

			 	
				
				  b.
				

			 	
				
				  Debtor’s 48.62% undivided
				  ownership interest in the Davis-Besse Nuclear Generating Station, Oak Harbor,
				  Ohio;
				

			 

 

	 
			
				
				   
				

			 	
				
				  c.
				

			 	
				
				  Debtor’s 19.91% undivided
				  ownership interest in Unit No. 1 of the Perry Nuclear Generating Station, North
				  Perry, Ohio;
				

			 

 

	 
			
				
				   
				

			 	
				
				  d.
				

			 	
				
				  Debtor’s interest in the
				  qualified and non-qualified nuclear decommissioning trust funds associated with
				  its ownership interests in the Beaver Valley, Davis-Besse and Perry Nuclear
				  Generating Stations; and
				

			 

 

	 
			
				
				   
				

			 	
				
				  e.
				

			 	
				
				  All of Debtor’s right, title
				  and interest in and to any and all contracts, fuel, spare parts, inventories,
				  equipment, supplies and other assets associated with or necessary for the
				  ownership or operation of the foregoing.
				

			 

 

	 
		3. Debtor’s Obligations Secured Hereby. This Agreement secures the obligations of the Debtor
		to make payment of principal and interest due on the Secured Promissory
		Note.
	 

	 
		 
	 

	 
		 
	 

	 
	 

	 

	 
		4. Debtor’s Covenants. The Debtor agrees and covenants as follows:
	 

	 
		a. Further Encumbrances. Until the obligations secured under this Agreement and
		the Note shall have been repaid in full, the Debtor shall not grant a security
		interest in any of the Collateral other than to Secured Party or execute any
		financing statements covering any of the Collateral in favor of any person
		other than Secured Party without Secured Party’s prior written
		consent.
	 

	 
		b. Insurance on Collateral. The Collateral will be insured at the Debtor’s
		expense against all risks and in such amounts as commonly insured by owners of
		like property and to the extent Debtor can obtain such insurance at
		commercially reasonable rates and terms. The Debtor agrees to pay or cause to
		be paid, when due, all premiums for such insurance and all taxes, license fees
		and other charges in connection with the Collateral.
	 

	 
		c. Perfection of Security Interest. The Debtor shall execute and deliver such financing
		statements and other documents as Secured Party reasonably deems necessary to
		create, perfect and continue perfection of the security interest in the
		Collateral contemplated hereby.
	 

	 
		d. Fees and Costs.
		Upon any Event of Default, the Debtor shall pay all expenses, including
		reasonable attorneys’ fees, incurred by Secured Party in the preservation,
		realization, enforcement or exercise of any of Secured Party’s rights
		under this Agreement.
	 

	 
		5. Remedies of Default. Upon the occurrence of an Event of Default, Secured
		Party shall have all rights, privileges, powers and remedies provided by law,
		including, but not limited to, exercise of any or all of the remedies
		hereinafter set forth. Such rights, privileges, powers and remedies shall be
		cumulative, and no single or partial exercise of any of them shall preclude the
		further or other exercise of the same or any of them.
	 

	 
		a. Payment Under Note. Secured Party may declare the aggregate unpaid
		principal balance of the Secured Promissory Note together with all unpaid
		accrued interest thereon, to be immediately due and payable, and thereupon all
		such amounts shall be and become immediately due and payable to Secured
		Party.
	 

	 
		b. Possession of Collateral. Secured Party may take possession of any or all of the
		Collateral covered hereby.
	 

	 
		6. Power of Attorney. The Debtor hereby appoints Secured Party the
		attorney-in-fact of the Debtor to prepare, sign and file or record, for the
		Debtor in the Debtor’s name, any financing statements, applications for
		registration and other similar instruments and documents and to take any other
		action deemed by Secured Party necessary or desirable in order to perfect or
		continue perfection of the security interest of Secured Party hereunder, and to
		perform any obligations of the Debtor hereunder, at the Debtor’s expense,
		but without obligation to do so.
	 

	 
		7. Successors and Assigns. This Agreement shall inure to the benefit of Secured
		Party and its successors and assigns, and shall be biding upon the Debtor and
		its successor and assigns.
	 

	 
		8. Presentment, etc. The Debtor hereby waives presentment, protest,, notice
		of protest, notice of dishonor and notice of nonpayment with respect to any
		proceeds to which Secured Party is entitled hereunder and any rights to direct
		the application of payments for security for indebtedness of the Debtor
		hereunder, or indebtedness of customers of the Debtor, and hereby waives any
		right to require proceedings against others or to require exhaustion of
		security.
	 

	 
		 
	 

	 
		 
	 

	 
	 

	 

	 
		9. Notices. All
		notices and other communications hereunder shall be in writing and shall be
		deemed to have been duly given upon receipt if: (a) mailed by certified or
		registered mail, return receipt requested; (b) sent for overnight delivery
		by Federal Express or other express carrier, (c) sent via facsimile; or
		(d) delivered personally, addressed as follows or to such other address or
		addresses of which the respective party shall have notified the other.
	 

	 
		If to Secured Party:
	 

	 
		The Toledo Edison Company
	 

	 
		c/o FirstEnergy Corp.
	 

	 
		76 South Main Street
	 

	 
		Akron, Ohio 44308
	 

	 
		Attn: President
	 

	 
		Facsimile: (330) 384-3875
	 

	 
		If to Debtor:
	 

	 
		FirstEnergy Nuclear Generation Corp.
	 

	 
		c/o FirstEnergy Corp.
	 

	 
		76 South Main Street
	 

	 
		Akron, Ohio 44308
	 

	 
		Attn: President
	 

	 
		Facsimile: (330) 384-3875
	 

	 
		10. Reliance on Statement of a Secured Party. In performing any obligations hereunder or in
		responding to any notice provided hereunder, the Debtor shall be entitled to
		rely on any statement made by Secured Party or its agent unless the Debtor has
		actual knowledge that the party making such statement is exceeding his or its
		authority to act as the agent of Secured Party.
	 

	 
		11. Governing Law.
		This Agreement shall be governed by the substantive laws of the State of Ohio,
		without giving effect to any conflict of laws principles.
	 

	 
		12. Enforcement. If
		any portion of this Agreement be determined to be invalid or unenforceable, the
		remainder shall be valid and enforceable to the maximum extent possible with
		the same effect as if the invalid or unenforceable portion were omitted from
		this Agreement.
	 

	 
		13. Headings. The
		headings set forth in this Agreement are for the convenience of the parties and
		shall not by themselves determine the interpretation or construction of this
		Agreement.
	 

	 
		(signature page follows)
	 

	 
		 
	 

	 
		 
	 

	 
	 

	 

	 
		IN WITNESS WHEREOF, the parties have
		executed this Agreement on the date set forth above.
	 

	 
		 
	 

	 
			
				
				   
				

			 	
				
				   
				

			 	
				
				  DEBTOR:
				

			 
	
				
				   
				

			 	
				
				   
				

			 	
				
				  
 FIRSTENERGY NUCLEAR GENERATION
				  CORP.
				

			 
	
				
				

			 	
				
				   
				

			 	
				
				  By: 
				

			 	
				
				  
 /s/ Richard H. Marsh
				

			 
	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 

 

	 
		 
	 

	 
			
				
				   
				

			 	
				
				   
				

			 	
				
				  SECURED PARTY:
				

			 
	
				
				   
				

			 	
				
				   
				

			 	
				
				  
 THE TOLEDO EDISON
				  COMPANY
				

			 
	
				
				

			 	
				
				   
				

			 	
				
				  By: 
				

			 	
				
				  
 /s/ David W. Whitehead
				

			 
	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 

 

	 
		Signature Page to TE Nuclear Security
		AgreementEXHIBIT 10-31 
	 

	 
		FirstEnergy Operating Companies
	 

	 
		FERC Electric Tariff, Second Revised Volume
		No. 2
	 

	 
		Revised Service Agreement No                 

	 

	 
		[Execution Copy] 
	 

	 
		MANSFIELD POWER SUPPLY
		AGREEMENT
	 

	 
		Between The Cleveland Electric
		Illuminating Company
	 

	 
		 and The Toledo Edison Company,
		Sellers
	 

	 
		and
	 

	 
		FirstEnergy Generation Corp.,
		Buyer
	 

	 
		This Mansfield Power Supply Agreement
		(“Agreement”) dated August 10, 2006, is made by and between The
		Cleveland Electric Illuminating Company and The Toledo Edison Company
		(“Sellers”) and FirstEnergy Generation Corp., (“Genco” or
		“Buyer”). The Sellers and Genco may be identified collectively as
		“Parties” or individually as a “Party.” This Agreement is
		entered into in connection with the transfer of ownership of The Cleveland
		Electric Illuminating Company, Ohio Edison Company, Pennsylvania Power Company,
		and The Toledo Edison Company’s fossil and pumped storage generation
		assets to Genco.
	 

	 
		WHEREAS, Buyer owns or operates fossil and
		pumped storage generation facilities formerly owned by The Cleveland Electric
		Illuminating Company, Ohio Edison Company, Pennsylvania Power Company, and The
		Toledo Edison Company (collectively “the FirstEnergy Operating
		Companies”); and 
	 

	 
		WHEREAS, Sellers lease portions of the Bruce
		Mansfield Generating Station, Units 1, 2, and 3 (hereinafter “Leased
		Mansfield Facilities”) from owner trustees under the Sale/Leaseback
		Arrangements; and 
	 

	 
		WHEREAS, Genco, an affiliate of the Sellers,
		operates the Leased Mansfield Facilities; and
	 

	 
		WHEREAS, Sellers wish to sell to Buyer the
		electrical output of the Leased Mansfield Facilities; and
	 

	 
		WHEREAS, Buyer is engaged exclusively in the
		business of owning and operating generation and selling Power at wholesale; and
		
	 

	 
		WHEREAS, Buyer desires to obtain the entire
		electric output of the Leased Mansfield Facilities pursuant to the rates, terms
		and conditions set forth herein. 
	 

	 
		It is agreed as follows: 
	 

	 
			
				
				  I. 
				

			 	
				
				  TERM
				

			 

 

	 
			
				
				  A.
				

			 	
				
				  The sale and purchase of Power
				  pursuant to this Agreement shall begin on January 1, 2006, or such later
				  effective date authorized by the FERC, for an initial term ending December 31,
				  2010. This Agreement shall remain in effect from year to year thereafter unless
				  terminated by either Party upon at least sixty days written notice prior to the
				  end of the calendar year. 
				

			 

 

	 
		 
	 

	 
			
				
				  Issued by: David M. Blank, Vice
				  President
				

			 	
				
				  Effective Date:
				

			 

 

	 
		 
	 

	 
		2
	 

	 
		 
	 

	 
	 

	 

	 
		 
	 

	 
			
				
				  Issued on: August 10, 2006
				  
				

			 	
				
				  January 1, 2006
				

			 

 

	 
			
				
				  B.
				

			 	
				
				  Notwithstanding I.A, this Agreement
				  will terminate if the Sale/Leaseback Arrangements for the Leased Mansfield
				  Facilities are terminated or assigned to Genco. Termination of the Agreement
				  under this Section will be effective no sooner than the effective date of the
				  termination or assignment of the Sale/Leaseback Arrangements. Buyer will give
				  Sellers no less than sixty days written notice of the termination of this
				  Agreement under this Section I.B. In the event of a partial termination or
				  assignment of the Sale/Leaseback Arrangements, the Parties will amend this
				  Agreement to reflect the revised rates, terms, and conditions for the sale of
				  Power from the remaining Leased Mansfield Facilities.
				

			 

 

	 
			
				
				  II.
				

			 	
				
				  SALE AND PURCHASE OF CAPACITY AND
				  ENERGY 
				

			 

 

	 
			
				
				  A.
				

			 	
				
				  Sellers shall make available to
				  Buyer all of the Capacity, Energy, Ancillary Services, Emission Allowances, and
				  Renewable Energy Attributes, if any, which are available from the Leased
				  Mansfield Facilities identified in Exhibit C to this Agreement, and Buyer shall
				  purchase and pay for such Capacity, Energy, Ancillary Services, Emission
				  Allowances and Renewable Energy Attributes in accordance with the terms of this
				  Agreement. Sellers shall make firm Capacity, Energy, and Ancillary Services
				  available at the Delivery Points. Buyer shall arrange and will be responsible
				  for all transmission, congestion costs, losses, and related services at and
				  from the Delivery Points. The Capacity, Energy, Ancillary Services, Emission
				  Allowances, and Renewable Attributes supplied by Sellers are collectively
				  referred to as Buyer’s “Power Supply Requirements.” Electric
				  Capacity and Energy supplied shall be sixty-hertz, three phase alternating
				  current. The Power Supply Requirements will be provided in accordance with Good
				  Utility Practice, and where applicable, the provisions of the applicable
				  Transmission Provider OATT, and the requirements of the FERC. 
				

			 

 

	 
			
				
				  B.
				

			 	
				
				  Genco will operate and maintain the
				  Leased Mansfield Facilities in accordance with Good Utility Practice, the
				  applicable requirements of the FERC, NERC, Electric Reliability Organization,
				  as well as the requirements of the regional reliability councils or Regional
				  Entity, and Regional Transmission Organizations where the Leased Mansfield
				  Facilities are located.
				

			 

 

	 
			
				
				  III. 
				

			 	
				
				  SCHEDULING AND SYSTEM PLANNING
				  
				

			 

 

	 
			
				
				  A. 
				

			 	
				
				  Sellers shall notify Buyer on or
				  before November 1 of each year during the term of this Agreement of the amount
				  of Capacity, Energy, Ancillary Services, Emission Allowances, and Renewable
				  Energy Attributes it expects to have available from the Leased Mansfield
				  Facilities for each day in each month of the next calendar year. The
				  information provided in this notification shall include, but not be limited to,
				  the time and expected duration of any planned outage of the Leased Mansfield
				  Facilities.
				

			 

 

	 
			
				
				  B.
				

			 	
				
				  Sellers shall update their annual
				  forecast of available Capacity, Energy, Ancillary Services, Emission
				  Allowances, and Renewable Energy Attributes for any change or expected change
				  in the operation of the Leased Mansfield Facilities that would materially
				  affect the annual forecast provided to Genco. Sellers shall provide the updated
				  forecast for any full month(s) remaining in the calendar year within thirty
				  days of becoming aware of the change or expected change in the operation of the
				  Leased Mansfield Facilities.
				

			 

 

	 
		 
	 

	 
		 
	 

	 
		3
	 

	 
		 
	 

	 
	 

	 

	 
			
				
				  C.
				

			 	
				
				  Sellers will supply Genco, upon
				  request, any such information as is necessary to meet the requirements of the
				  applicable Transmission Provider OATT, FERC, NERC, Electric Reliability
				  Organization, regional reliability council, Regional Entity, or Government
				  Authority.
				

			 

 

	 
			
				
				  IV. 
				

			 	
				
				  PRICE 
				

			 

 

	 
		Sellers shall charge, and Buyer shall pay,
		for Buyer’s Power Supply Requirements, as follows on a monthly
		basis.
	 

	 
		A. Charges
	 

	 
		Buyer will pay Sellers the Monthly Charge
		under the formula set forth in Exhibit A for the Power Supply Requirements
		Available from the Leased Mansfield Facilities identified in Exhibit C.
	 

	 
		B. Billing and Payment
	 

	 
		Unless otherwise specifically agreed upon by
		the Parties, the calendar month shall be the standard period for all billings
		and payments under this Agreement. As soon as practicable after the end of each
		month, the Sellers will render an invoice to Buyer for the amounts due for
		Power Supply Requirements for the preceding month. Payment shall be due and
		payable within ten days of receipt of the invoice or, if such day is not a
		Business Day, then on the next Business Day. Buyer will make payments by
		electronic funds transfer or by other mutually agreeable method(s) to the
		account designated by Sellers. Any amounts not paid by the due date will be
		deemed delinquent and will accrue interest at the Interest Rate until the date
		of payment in full. 
	 

	 
		C. Records
	 

	 
		Each Party shall keep complete and accurate
		records of its operations under this Agreement and shall maintain such data as
		may be necessary to determine the reasonableness and accuracy of all relevant
		data, estimates, payments or invoices submitted by or to it hereunder. All
		records regarding this Agreement shall be maintained for a period of three
		years from the date of the invoice or payment, or for such longer period as may
		be required by law. 
	 

	 
		D. Audit and Adjustment Rights

	 

	 
		Buyer shall have the right, at its own
		expense and during normal business hours, to audit the accounts and records of
		Sellers that reasonably relate to the provision of service under this
		Agreement. If the audit reveals an inaccuracy in an invoice, the necessary
		adjustment in such invoice and the payments therefore will be promptly made. No
		adjustment will be made for any invoice or payment made more than one year from
		rendition thereof. This provision shall survive the termination of this
		Agreement for a period of one year from the date of termination for the purpose
		of such invoice and payment objections. To the extent that audited information
		includes Confidential Information, the Buyer shall keep all such information
		confidential under Section VII.C. 
	 

	 
		E. Section 205 Rights
	 

	 
		Nothing contained herein shall be construed
		as affecting in any way the right of the Party furnishing service under this
		Agreement to unilaterally make application to the FERC for a change 
	 

	 
		 
	 

	 
		 
	 

	 
		4
	 

	 
		 
	 

	 
	 

	 

	 
		in rates under Section 205 of the Federal
		Power Act and pursuant to the FERC’s Rules and Regulations thereunder.
		Provided, however, that nonrate terms and conditions may be amended only by a
		written agreement signed by the Parties.
	 

	 
			
				
				  V.
				

			 	
				
				  METERING
				

			 

 

	 
		Generation metering shall be installed,
		operated and maintained in accordance with the applicable generator
		interconnection agreements among the Genco, Transmission Provider, and
		Transmission Owner. Metering between control areas shall be handled in
		accordance with the applicable Transmission Provider OATT. Retail metering
		shall be provided in accordance with applicable state law. Nothing in this
		Agreement requires Sellers or Buyer to install new metering facilities. 

	 

	 
			
				
				  VI. 
				

			 	
				
				  NOTICES
				

			 

 

	 
		All notices, requests, statements or
		payments shall be made as specified below. Notices required to be in writing
		shall be delivered by letter, facsimile or other documentary form. Notice by
		facsimile or hand delivery shall be deemed to have been received by the close
		of the Business Day on which it was transmitted or hand delivered (unless
		transmitted or hand delivered after close in which case it shall be deemed to
		have been received at the close of the next Business Day). Notice by overnight
		mail or courier shall be deemed to have been received two Business Days after
		it was sent. A Party may change its addresses by giving notice as provided
		above. 
	 

	 
		NOTICES & CORRESPONDENCE: 

	 

	 
		 
	 

	 
			
				
				  To Sellers:
				

			 	
				
				  FirstEnergy Service Company, Vice
				  President
				

			 
	
				
				   
				

			 	
				
				  76 South Main St.
				

			 
	
				
				   
				

			 	
				
				  Akron, Ohio 44308
				

			 
	
				
				   
				

			 	
				
				   
				

			 
	
				
				  To Buyer:
				

			 	
				
				  FirstEnergy Generation Corp.,
				  President
				

			 
	
				
				   
				

			 	
				
				  76 South Main St.
				

			 
	
				
				   
				

			 	
				
				  Akron, Ohio 44308
				

			 

 

	 
		INVOICES & PAYMENTS: 
	 

	 
		 
	 

	 
			
				
				  To Sellers:
				

			 	
				
				  FirstEnergy Service Company, Vice
				  President
				

			 
	
				
				   
				

			 	
				
				  76 South Main St.
				

			 
	
				
				   
				

			 	
				
				  Akron, Ohio 44308
				

			 
	
				
				   
				

			 	
				
				   
				

			 
	
				
				  To Buyer:
				

			 	
				
				  FirstEnergy Generation Corp.,
				  President
				

			 
	
				
				   
				

			 	
				
				  76 South Main St.
				

			 
	
				
				   
				

			 	
				
				  Akron, Ohio 44308
				

			 

 

	 
		SCHEDULING: 
	 

	 
		 
	 

	 
			
				
				  To Sellers:
				

			 	
				
				  FirstEnergy Service Company, Vice
				  President
				

			 
	
				
				   
				

			 	
				
				  76 South Main St.
				

			 
	
				
				   
				

			 	
				
				  Akron, Ohio 44308
				

			 

 

	 
		 
	 

	 
		 
	 

	 
		5
	 

	 
		 
	 

	 
	 

	 

	 
		 
	 

	 
			
				
				  To Buyer:
				

			 	
				
				  FirstEnergy Generation Corp.,
				  President
				

			 
	
				
				   
				

			 	
				
				  76 South Main St.
				

			 
	
				
				   
				

			 	
				
				  Akron, Ohio 44308
				

			 

 

	 
			
				
				  VII. 
				

			 	
				
				  MISCELLANEOUS 
				

			 

 

	 
		A. Performance Excused
	 

	 
		If either Party is rendered unable by an
		event of Force Majeure to carry out, in whole or part, its obligations
		hereunder, then, during the pendency of such Force Majeure but for no longer
		period, the Party affected by the event shall be relieved of its obligations
		insofar as they are affected by Force Majeure. The Party affected by an event
		of Force Majeure shall provide the other Party with written notice setting
		forth the full details thereof as soon as practicable after the occurrence of
		such event and shall take all reasonable measures to mitigate or minimize the
		effects of such event of Force Majeure. Nothing in this section requires Seller
		to deliver, or Buyer to receive, Power at Delivery Points other than those
		Delivery Points designated under this Agreement, or relieves Buyer of its
		obligation to make payment under Section IV of this Agreement.
	 

	 
		Force Majeure shall be defined as any cause
		beyond the reasonable control of, and not the result of negligence or the lack
		of diligence of, the Party claiming Force Majeure or its contractors or
		suppliers. It includes, without limitation, earthquake, storm, lightning,
		flood, backwater caused by flood, fire, explosion, act of the public enemy,
		epidemic, accident, failure of facilities, equipment or fuel supply, acts of
		God, war, riot, civil disturbances, strike, labor disturbances, labor or
		material shortage, national emergency, restraint by court order or other
		Government Authority, interruption of synchronous operation, or other similar
		or dissimilar causes beyond the control of the Party affected, which causes
		such Party could not have avoided by exercising Good Utility Practice. Nothing
		contained herein shall be construed to require a Party to settle any strike,
		lockout, work stoppage, or other industrial disturbance or dispute in which it
		may be involved or to take an appeal from any judicial, regulatory or
		administrative action. 
	 

	 
		B. Transfer of Title and
		Indemnification
	 

	 
		Title and risk of loss related to the Power
		Supply Requirements shall transfer to the Buyer at the Delivery Points. Sellers
		warrant that they will deliver the Power Supply Requirements to Buyer free and
		clear of all liens, security interests, claims and encumbrances or any interest
		therein or thereto by any person arising prior to the Delivery Points. Each
		Party shall indemnify, defend and hold harmless the other Party from and
		against any claims arising from or out of any event, circumstance, act or
		incident first occurring or existing during the period when control and title
		to the Power Supply Requirements is vested in the other Party. 
	 

	 
		C. Confidentiality
	 

	 
		Neither Party shall disclose to third
		parties Confidential Information obtained from the other Party pursuant to this
		Agreement except in order to comply with the requirements of FERC, NERC,
		Electric Reliability Organization, applicable regional reliability councils or
		Regional Entity, Regional Transmission Organization or Government Authority.
		Each Party shall use reasonable efforts to prevent or limit the disclosure
		required to third parties under this section.
	 

	 
		 
	 

	 
		 
	 

	 
		6
	 

	 
		 
	 

	 
	 

	 

	 
		D. Further Assurances
	 

	 
		Subject to the terms and conditions of this
		Agreement, each of the Parties will use reasonable efforts to take, or cause to
		be taken, all action, and to do, or cause to be done, all things necessary,
		proper or advisable under applicable laws and regulations to consummate and
		effectuate the transactions contemplated hereby. 
	 

	 
		E. Assignment
	 

	 
		No assignment, pledge, or transfer of this
		Agreement shall be made by any Party without the prior written consent of the
		other Party, which consent shall not be unreasonably withheld. No prior written
		consent shall be required for (i) the assignment, pledge or other transfer to
		another company or affiliate in the same holding company system as the
		assignor, pledgor or transferor, or (ii) the transfer, incident to a merger or
		consolidation with, or transfer of all (or substantially all) of the assets of
		the transferor, to another person or business entity; provided, however, that
		such assignee, pledgee, transferee or acquirer of such assets or the person
		with which it merges or into which it consolidates assumes in writing all of
		the obligations of such Party hereunder and provided, further, that either
		Party may, without the consent of the other Party (and without relieving itself
		from liability hereunder), transfer, sell, pledge, encumber or assign such
		Party’s rights to the accounts, revenues or proceeds hereof in connection
		with any financing or other financial arrangements. 
	 

	 
		F. Governing Law
	 

	 
		The interpretation and performance of this
		Agreement shall be according to and controlled by the laws of the State of Ohio
		regardless of the laws that might otherwise govern under applicable principles
		of conflicts of laws. 
	 

	 
		G. Counterparts
	 

	 
		This Agreement may be executed in two or
		more counterparts and each such counterpart shall constitute one and the same
		instrument. 
	 

	 
		H. Waiver
	 

	 
		No waiver by a Party of any default by the
		other Party shall be construed as a waiver of any other default. Any waiver
		shall be effective only for the particular event for which it is issued and
		shall not be deemed a waiver with respect to any subsequent performance,
		default or matter. 
	 

	 
		I. No Third Party
		Beneficiaries
	 

	 
		This Agreement shall not impart any rights
		enforceable by any third party other than a permitted successor or assignee
		bound to this Agreement. 
	 

	 
		J. Severability
	 

	 
		Any provision of this Agreement declared or
		rendered unlawful by any applicable court of law or regulatory agency or deemed
		unlawful because of a statutory change will not otherwise affect the remaining
		lawful obligations that arise under this Agreement.
	 

	 
		 
	 

	 
		 
	 

	 
		7
	 

	 
		 
	 

	 
	 

	 

	 
		K. Construction
	 

	 
		The term “including” when used in
		this Agreement shall be by way of example only and shall not be considered in
		any way to be a limitation. The headings used herein are for convenience and
		reference purposes only. 
	 

	 
		IN WITNESS WHEREOF, the Parties have caused
		their duly authorized representatives to execute this Agreement on their behalf
		as of August 10, 2006. 
	 

	 
		 
	 

	 
			
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				  The Cleveland Electric
				  Illuminating Company
 The Toledo
				  Edison Company
				

			 
	
				
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				  
 /s/ David M. Blank
				

			 
	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				  Vice President, FirstEnergy Service
				  Company
				

			 

 

	 
		 
	 

	 
			
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				  FirstEnergy Generation
				  Corp.
				

			 
	
				
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				  
 /s/ Ali Jamshidi
				

			 
	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				  President, FirstEnergy Generation
				  Corp.
				

			 

 

	 
		 
	 

	 
		 
	 

	 
		8
	 

	 
		 
	 

	 
	 

	 

	 
		EXHIBIT A
	 

	 
		The Cleveland Electric Illuminating
		Company
	 

	 
		The Toledo Edison Company
	 

	 
		Monthly Charge Formula
	 

	 
		 
	 

	 
		 
	 

	 
		9
	 

	 
		 
	 

	 
	 

	 

	 
		FirstEnergy Operating Companies
	 

	 
		Monthly Revenue Requirement Formula
	 

	 
		Development of Investment Base (Note
		1)
	 

	 
		Month, XXXX
	 

	 
		 
	 

	 
			
				
				  Line 

				  No.
				

			 	
				
				   
				

			 	
				
				  Description
				

			 	
				
				   
				

			 	
				
				  Amount
				

			 	
				
				   
				

			 	
				
				  Reference/Source
				

			 
	
				
				  1
				

			 	
				
				   
				

			 	
				
				  Plant in Service
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				  FERC Acts. 101,106 (Note 2)
				

			 
	
				
				  2
				

			 	
				
				   
				

			 	
				
				  Accumulated Depreciation &
				  Amortization
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				  FERC Acts. 108,111 (Note 2)
				

			 
	
				
				  3
				

			 	
				
				   
				

			 	
				
				  Net Utility Plant
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				  Line 1 plus Line 2
				

			 
	
				
				  4
				

			 	
				
				   
				

			 	
				
				  Fuel Stock
				

			 	
				
				   
				

			 	
				
				  Eliminated CWIP
				

			 	
				
				   
				

			 	
				
				  FERC Act 151
				

			 
	
				
				  5
				

			 	
				
				   
				

			 	
				
				  Materials and Supplies
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				  FERC Acts. 154, 183
				

			 
	
				
				  8
				

			 	
				
				   
				

			 	
				
				  Prepayments
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				  FERC Acts. 185
				

			 
	
				
				  7
				

			 	
				
				   
				

			 	
				
				  Working Cash
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				  1/8 times(O&M expense less
				  fuel)
				

			 
	
				
				  8
				

			 	
				
				   
				

			 	
				
				  Accumulated Deferred Income
				  Taxes
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				  FERC Acts 190, 281, 282, 283
				

			 
	
				
				  9
				

			 	
				
				   
				

			 	
				
				  Investment Base
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				  Sum of Lines 3-8
				

			 

 

	 
		Notes
	 

	 
			
				
				  1)
				

			 	
				
				  To be determined based on data as of
				  the end of the month immediately preceding the current service month. All
				  values shall be the portion of the amount reported In the indicated FERC
				  accounts which is associated with the leased nuclear capacity of the
				  companies.
				

			 

 

	 
			
				
				  2)
				

			 	
				
				  Includes amounts associated with
				  step-up facilities at the generating plants. Excludes Asset Retirement Costs in
				  Account 101 and the associated accumulated amorization of the Asset Retirement
				  Costs from Account 108.
				

			 

 

	 
		 
	 

	 
		 
	 

	 
		10
	 

	 
		 
	 

	 
	 

	 

	 
		FirstEnergy Operating Companies
	 

	 
		Monthly Revenue Requirement Formula
	 

	 
		Development of Monthly Revenue Requirement
		(Note 1)
	 

	 
		Month, XXXX
	 

	 
		 
	 

	 
			
				
				  Line 

				  No.
				

			 	
				
				   
				

			 	
				
				  Description
				

			 	
				
				   
				

			 	
				
				  Amount
				

			 	
				
				   
				

			 	
				
				  Reference/Source
				

			 
	
				
				  1
				

			 	
				
				   
				

			 	
				
				  Monthly Revenue Requirement
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				  Note 2
				

			 
	
				
				  2
				

			 	
				
				   
				

			 	
				
				  Operations & Maintenance
				  Expense
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				  FERC Acts. 500-509, 510-514,
				  535-540, 541-547, 560-573 (Note 3). 920-931, 935
				

			 
	
				
				  3
				

			 	
				
				   
				

			 	
				
				  Depreciation Expense
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				  FERC Act. 403 (Note 3)
				

			 
	
				
				  4
				

			 	
				
				   
				

			 	
				
				  Accretion Expense
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				  FERC Act. 411 Associated with
				  Accretion Expense
				

			 
	
				
				  5
				

			 	
				
				   
				

			 	
				
				  Amortization Expense
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				  FERC Acts. 404. 407.3, 407.4
				

			 
	
				
				  6
				

			 	
				
				   
				

			 	
				
				  Taxes other than Income Taxes

				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				  FERC Act. 408.1
				

			 
	
				
				  7
				

			 	
				
				   
				

			 	
				
				  Current State Income Tax
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				  Page 3, Line 18
				

			 
	
				
				  8
				

			 	
				
				   
				

			 	
				
				  Current Federal Income Tax
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				  Page 3, Line 25
				

			 
	
				
				  9
				

			 	
				
				   
				

			 	
				
				  Provision for Deferred Income
				  Tax-State
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				  State portion of FERC Acts. 410.1.
				  411.1 (Note 4)
				

			 
	
				
				  10
				

			 	
				
				   
				

			 	
				
				  Provision for Deferred Income
				  Tax-Federal
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				  Federal portion of FERC Acts. 410.1,
				  411.1 (Note 4)
				

			 
	
				
				  11
				

			 	
				
				   
				

			 	
				
				  Investment Tax Credit - Net
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				  FERC Act. 411.4
				

			 
	
				
				  12
				

			 	
				
				   
				

			 	
				
				  Utility Operating Expenses
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				  Sum of Lines 2.11
				

			 
	
				
				  13
				

			 	
				
				   
				

			 	
				
				  Utility Operating Income
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				  Line 1, minus Line 12
				

			 
	
				
				  14
				

			 	
				
				   
				

			 	
				
				  Verification:
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 
	
				
				  15
				

			 	
				
				   
				

			 	
				
				  Investment Base
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				  Page 1. Line 9
				

			 
	
				
				  18
				

			 	
				
				   
				

			 	
				
				  Rate of Return on Investment
				  Base
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				  12 tines (Line 13/Line 15); Must
				  equal Line 17
				

			 
	
				
				  17
				

			 	
				
				   
				

			 	
				
				  Cost of Capital
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				  Weighted Cost Rate from Page 4, Line
				  3
				

			 

 

	 
		Notes
	 

	 
			
				
				  1)
				

			 	
				
				  All expenses are to be those for the
				  current service month and shall be the portion of the amount reported in the
				  indicated FERC accounts which is associated with the leased fossil capacity of
				  the companies.
				

			 

 

	 
			
				
				  2)
				

			 	
				
				  The Monthly Revenue Requirement is
				  the gross amount which when O&M expenses are subtracted results in an
				  Utility Operating Income (line 13) which when divided by the Investment Base
				  (Page 1, Line 9) produces a Rate of Return on Investment Base equal to the Cost
				  of Capital (determined in accordance with Page 4).
				

			 

 

	 
			
				
				  3)
				

			 	
				
				  Includes amounts associated with
				  step-up facilities at the generating plants.
				

			 

 

	 
			
				
				  4)
				

			 	
				
				  Restricted to those items for which
				  corresponding timing differences are included in the adjustments to Net Income
				  Before Income Tax (see Page 3, Line 7).
				

			 

 

	 
		 
	 

	 
		 
	 

	 
		11
	 

	 
		 
	 

	 
	 

	 

	 
		FirstEnergy Operating Companies
	 

	 
		Monthly Revenue Requirement Formula
	 

	 
		Development of Current Income Tax
		Expense
	 

	 
		Month, XXXX
	 

	 
		 
	 

	 
			
				
				  Line 

				  No.
				

			 	
				
				   
				

			 	
				
				  Description
				

			 	
				
				   
				

			 	
				
				  Amount
				

			 	
				
				   
				

			 	
				
				  Reference/Source
				

			 
	
				
				  1
				

			 	
				
				   
				

			 	
				
				  Monthly Revenue Requirement
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				  Page 2, Line 1
				

			 
	
				
				  2
				

			 	
				
				   
				

			 	
				
				  Operation & Maintenance
				  Expense
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				  Page 2, Line 2
				

			 
	
				
				  3
				

			 	
				
				   
				

			 	
				
				  Depreciation Expense
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				  Page 2, Line 3
				

			 
	
				
				  4
				

			 	
				
				   
				

			 	
				
				  Accretion Expense
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				  Page 2, Line 4
				

			 
	
				
				  5
				

			 	
				
				   
				

			 	
				
				  Amortization Expense
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				  Page 2, Line 5
				

			 
	
				
				  6
				

			 	
				
				   
				

			 	
				
				  Taxes other than Income Taxes

				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				  Page 2, Line 6
				

			 
	
				
				  7
				

			 	
				
				   
				

			 	
				
				  Net Income Before Taxes
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				  Line 1 minus (Sum of Lines
				  2-6)
				

			 
	
				
				  8
				

			 	
				
				   
				

			 	
				
				  Adjustments to Net Income Before
				  Income Tax:
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 
	
				
				  9
				

			 	
				
				   
				

			 	
				
				  Interest Synchronization
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				  [Investment Base (Page 1, Line 9)
				  times (-1) times Total Debt Rate (Page 4, Line 1)] divided by 12
				

			 
	
				
				  10
				

			 	
				
				   
				

			 	
				
				  Other Adjustments
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				  (Note 1)
				

			 
	
				
				  11
				

			 	
				
				   
				

			 	
				
				  Total Adjustments
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				  Line 9 plus Line 10
				

			 
	
				
				  12
				

			 	
				
				   
				

			 	
				
				  Taxable income
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				  Line 7 plus Line 11
				

			 
	
				
				   
				

			 	
				
				   
				

			 	
				
				  Computation of State Income
				  Tax
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 
	
				
				  13
				

			 	
				
				   
				

			 	
				
				  State Taxable Income before
				  Adjustments
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				  Line 12
				

			 
	
				
				  14
				

			 	
				
				   
				

			 	
				
				  Net Adjustment to State Taxable
				  Income
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				  (Note 1)
				

			 
	
				
				  15
				

			 	
				
				   
				

			 	
				
				  State Taxable Income
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				  Line 13 plus Line 14
				

			 
	
				
				  16
				

			 	
				
				   
				

			 	
				
				  State Income Tax before
				  Adjustments
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				  Line 15 times Ohio/Pennsylvania
				  State Tax Rate (Note 2)
				

			 
	
				
				  17
				

			 	
				
				   
				

			 	
				
				  Adjustments to State Tax
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				  (Note 1)
				

			 
	
				
				  18
				

			 	
				
				   
				

			 	
				
				  Current State Income Tax
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				  Sum of Line 16 and 17
				

			 
	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 
	
				
				   
				

			 	
				
				   
				

			 	
				
				  Computation of Federal Income
				  Tax
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 
	
				
				  19
				

			 	
				
				   
				

			 	
				
				  Federal Taxable Income before
				  Adjustments
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				  Line 12
				

			 
	
				
				  20
				

			 	
				
				   
				

			 	
				
				  Current State Income Tax
				  Deduction
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				  Line 18 (shown as deduction)
				

			 
	
				
				  21
				

			 	
				
				   
				

			 	
				
				  Other Adjustments to Federal Taxable
				  Income
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				  (Note 1)
				

			 
	
				
				  22
				

			 	
				
				   
				

			 	
				
				  Federal Taxable Income
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				  Sum of Line 19 - 21
				

			 
	
				
				  23
				

			 	
				
				   
				

			 	
				
				  Federal Income Tax before
				  Adjustments
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				  Line 22 times Federal Tax Rate (Note
				  2)
				

			 
	
				
				  24
				

			 	
				
				   
				

			 	
				
				  Adjustments to Federal Tax
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				  (Note 1)
				

			 
	
				
				  25
				

			 	
				
				   
				

			 	
				
				  Current Federal Income Tax
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				  Sum of Lines 23 and 24
				

			 

 

	 
		Notes
	 

	 
			
				
				  1)
				

			 	
				
				  Items from monthly tax determination
				  that are appropriate for ratemaking purposes.
				

			 

 

	 
			
				
				  2)
				

			 	
				
				  Rate in effect at the end of the
				  service month.
				

			 

 

	 
		 
	 

	 
		 
	 

	 
		12
	 

	 
		 
	 

	 
	 

	 

	 
		FirstEnergy Operating Companies
	 

	 
		Monthly Revenue Requirement Formula
	 

	 
		Development of Cost of Capital (Note
		1)
	 

	 
		Month, XXXX
	 

	 
		 
	 

	 
			
				
				  Line
				

				
				   No.
				

			 	
				
				   
				

			 	
				
				  Capital Source
				

			 	
				
				   
				

			 	
				
				  Capital Amount (Note 2)
				

			 	
				
				   
				

			 	
				
				  Capitalization Ratio (Note 3)

				

			 	
				
				   
				

			 	
				
				  Cost Rate (Notes 4, 6)
				

			 	
				
				   
				

			 	
				
				  Weighted Cost Rate (Note 5)
				

			 
	
				
				  1
				

			 	
				
				   
				

			 	
				
				  Long Term Debt FERC Acts. 221-226,
				  233
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 
	
				
				  2
				

			 	
				
				   
				

			 	
				
				  Common Equity FERC Acts. 201, 202,
				  205, 207, 213-216 (Excluding 216.1)
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 
	
				
				  3
				

			 	
				
				   
				

			 	
				
				  Total
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 

 

	 
		Notes
	 

	 
			
				
				  1)
				

			 	
				
				  To be determined based on data as of
				  the end of the month immediately preceding the current service month.
				

			 

 

	 
			
				
				  2)
				

			 	
				
				  Long Term Debt shall include all
				  issues and reflect the principal amount
				

			 

 

	 
			
				
				  3)
				

			 	
				
				  Applicable capital amount divided by
				  total capital amount
				

			 

 

	 
			
				
				  4)
				

			 	
				
				  Average cost rate for all
				  outstanding issues including applicable amortization of debt discount, premium
				  and expense together with amortization of loss or gain on reacquired
				  debt.
				

			 

 

	 
			
				
				  5)
				

			 	
				
				  Capitalization ratio for the
				  applicable capital source multiplied by the corresponding cost rate.
				

			 

 

	 
			
				
				  6)
				

			 	
				
				  The Common Equity Cost Rate shall be
				  10.5%.
				

			 

 

	 
		 
	 

	 
		 
	 

	 
		13
	 

	 
		 
	 

	 
	 

	 

	 
		EXHIBIT B
	 

	 
		DEFINITIONS
	 

	 
		In addition to terms defined elsewhere in
		this Agreement, the terms listed below are defined as follows: 
	 

	 
		Affiliate means, with respect to any person, any other person
		(other than an individual) that, directly or indirectly, through one or more
		intermediaries, controls, or is controlled by, or is under common control with,
		such person. For purposes of the foregoing definition, control means the direct
		or indirect ownership of more than fifty percent (50%) of the outstanding
		capital stock or other equity interests having ordinary voting power or ability
		to direct the affairs of the affiliate. 
	 

	 
		Ancillary Services means Reactive Supply and Voltage Control from
		Generation Resources, Regulation and Frequency Response Service, Operating
		Reserve – Spinning Reserve Service, and Operating Reserve –
		Supplemental Service and such additional Ancillary Services as defined in the
		Open Access Transmission Tariff of the Transmission Provider and to the extent
		available from the Leased Mansfield Facilities.
	 

	 
		Business Day means any day on which Federal Reserve member banks in
		New York City are open for business. 
	 

	 
		Capacity means the resource that produces electric Energy,
		measured in megawatts.
	 

	 
		Confidential Information means any confidential, proprietary, trade secret,
		critical energy infrastructure information, or commercially sensitive
		information relating to the present or planned business of a Party that is
		supplied under this Agreement, and is identified as confidential by the Party
		supplying the information.
	 

	 
		Delivery Point means where Capacity, Energy, and Ancillary Services
		are supplied by the Sellers at the point of interconnection between the Leased
		Mansfield Facilities and the transmission facilities of Transmission Owner.
		
	 

	 
		Electric Reliability
		Organization has the meaning given in
		Section 215(a)(2) of the Federal Power Act.
	 

	 
		Emission Allowances means all present and future authorizations to emit
		specified units of pollutants or hazardous substances, which units are
		established by the Government Authority with jurisdiction over the Leased
		Mansfield Facilities under (i) an air pollution and emissions reduction program
		designed to mitigate global warming, interstate or intra-state transport of air
		pollutants; (ii) a program designed to mitigate impairment of surface waters,
		watersheds, or groundwater; or (iii) any pollution reduction program with a
		similar purpose. Emission Allowances include allowances, as described above,
		regardless as to whether the Governmental Authority establishing such Emission
		Allowances designates such allowances by a name other than
		“allowances.”
	 

	 
		 
	 

	 
		 
	 

	 
	 

	 

	 
		Energy means electric energy delivered under this Agreement at
		three-phase, 60-hertz alternating current measured in megawatt hours. 
	 

	 
		FERC means The Federal Energy Regulatory Commission or its
		regulatory successor. 
	 

	 
		Force Majeure has the meaning given in Section VII.A.
	 

	 
		Good Utility Practice means any of the practices, methods and acts engaged in
		or approved by a significant portion of the electric utility industry during
		the relevant time period or any of the practices, methods and acts which, in
		the exercise of reasonable judgment in light of the facts known at the time the
		decision was made, could have been expected to accomplish the desired result at
		a reasonable cost consistent with good business practices, reliability, safety,
		and expedition. Good Utility Practice includes compliance with the standards
		adopted by NERC, its applicable regional councils, an Electric Reliability
		Organization or Regional Entity as approved by the FERC. Good Utility Practice
		is not intended to be limited to the optimum practice, method or act to the
		exclusion of all others, but rather to be acceptable practices, methods or
		acts, generally accepted in the region and consistently adhered to by utilities
		in the region. 
	 

	 
		Government Authority means any federal, state, local, municipal or other
		governmental entity, authority or agency, department, board, court, tribunal,
		regulatory commission, or other body, whether legislative, judicial or
		executive, together or individually, exercising or entitled to exercise any
		administrative, executive, judicial, policy, regulatory or taxing authority or
		power over Buyer or Seller.
	 

	 
		Interest Rate means the lesser of Prime Rate plus two percent and the
		maximum rate permitted by applicable law. 
	 

	 
		Leased Mansfield Facilities
		means The Cleveland Electric
		Illuminating Company and The Toledo Edison Company’s respective leasehold
		interests in Bruce Mansfield Generating Station, Units 1, 2, and 3 as
		identified in Exhibit C.
	 

	 
		NERC means The North American Electric Reliability Council
		or any superseding organization with responsibility for establishing
		reliability standards for the interstate grid.
	 

	 
		Power means Capacity and/or Energy. 

	 

	 
		Prime Rate means for any date, the per annum rate of interest
		announced from time to time by Citibank, NA as its prime rate for commercial
		loans, effective for such date as established from time to time by such bank.
		
	 

	 
		Regional Entity has the meaning given in Section 215(a)(7) of the
		Federal Power Act.
	 

	 
		 
	 

	 
		 
	 

	 
	 

	 

	 
		Regional Transmission
		Organization has the meaning given in
		Section 3(27) of the Federal Power Act.
	 

	 
		Renewable Energy
		Attributes means any credits, offsets,
		benefits, or tradable instrument created by law and related to generation of
		Power from the Leased Mansfield Facilities.
	 

	 
		Sale/Leaseback Arrangements mean
		the Facility Leases identified in Exhibit D to this Agreement.
	 

	 
		Taxes means all ad
		valorem, property, occupation, utility,
		gross receipts, sales, use, excise and other taxes, governmental charges,
		licenses, permits and assessments, other than taxes based on net income or net
		worth. 
	 

	 
		Transmission Owner means the entity that owns facilities used for the
		transmission of Power from the Leased Mansfield Facilities.
	 

	 
		Transmission Provider means the utility or utilities, including Regional
		Transmission Organizations, transmitting Power on behalf of Buyer from the
		Delivery Point(s) under this Agreement. 
	 

	 
		Transmission Provider
		OATT means the Open Access Transmission
		Tariff, Open Access Transmission and Energy Markets Tariff, or any other tariff
		of general applicability on file at the FERC under which the Transmission
		Provider offers transmission service.
	 

	 
		 
	 

	 
		 
	 

	 
	 

	 

	 
		EXHIBIT C
	 

	 
		Leased Mansfield Facilities
	 

	 
		NDC in MW
	 

	 
		 
	 

	 
			
				
				  Unit
				

			 	
				
				   
				

			 	
				
				  Cleveland Electric
				

			 	
				
				   
				

			 	
				
				  Toledo Edison
				

			 	
				
				   
				

			 	
				
				  Leasehold MW
				

			 
	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 
	
				
				  BM1
				

			 	
				
				   
				

			 	
				
				  6.50%
				

			 	
				
				   
				

			 	
				
				  —
				

			 	
				
				   
				

			 	
				
				  51
				

			 
	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 
	
				
				  BM2
				

			 	
				
				   
				

			 	
				
				  28.60%
				

			 	
				
				   
				

			 	
				
				  17.30%
				

			 	
				
				   
				

			 	
				
				  358
				

			 
	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 
	
				
				  BM3
				

			 	
				
				   
				

			 	
				
				  24.47%
				

			 	
				
				   
				

			 	
				
				  19.91%
				

			 	
				
				   
				

			 	
				
				  355
				

			 
	
				
				  Total
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				  764
				

			 

 

	 
		 
	 

	 
		 
	 

	 
	 

	 

	 
		EXHIBIT D
	 

	 
		Bruce Mansfield Facility
		Leases
	 

	 
		The separate Facility Leases, each dated as
		of September 30, 1987, as heretofore amended, modified and supplemented, among
		The Cleveland Electric Illuminating Company and The Toledo Edison Company, as
		Lessees, and [Wachovia], as Lessor in its capacity as successor Owner Trustee
		under separate trusts for the benefit of each of the following Owner
		Participants, relating to the lease by the Lessees of certain undivided
		interests in the Bruce Mansfield Plant Units 1, 2 and 3 located in
		Shippingport, Pennsylvania:
	 

	 
		Key Leasing (as successor to Midwest Power
		Company) (Trust A)
	 

	 
		Ford Motor Credit Company (Trust B)
	 

	 
		Bank of America (as successor to Maryland
		National Leasing Corporation) (Trust C)
	 

	 
		Key Leasing (as successor to CT Leasing
		Company) (Trust D)
	 

	 
		Chrysler Capital Corporation (Trust
		E)
	 

	 
		Barclays American (as successor to Irving
		Leasing Corporation) (Trust F)
	 

	 
		Bank of New York (as successor to Irving
		Leasing Corporation) (Trust G)
	 

	 
		CitiCorp Lescaman, Inc. (Trust H)
	 

	 
		CitiCorp Lescaman, Inc. (Trust I)
	 

	 
		ComCast Corp. (as successor to U S West
		Financial Services, Inc.) (Trust J)
	 

	 
		ComCast Corp. (as successor to U S West
		Financial Services, Inc.) (Trust K)
	 

	 
		ComCast Corp. (as successor to U S West
		Financial Services, Inc.) (Trust L)

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00128-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00128-of-00352.parquet"}]]