Document:

Exhibit 10.1

 

ENVIRONMENTAL CONTROL PROPERTY SERVICING
AGREEMENT

 

by and between

 

WEPCO ENVIRONMENTAL TRUST FINANCE I,
LLC,

Issuer

 

and

 

WISCONSIN ELECTRIC POWER COMPANY,

Servicer

 

Dated as of [____________], 2021

 

 

    

     

    

 

TABLE OF CONTENTS

 

	 	Page
	 	 
	ARTICLE I   DEFINITIONS AND RULES OF CONSTRUCTION	1
	Section 1.01   Definitions and Rules of Construction	1
	 	 
	ARTICLE II   APPOINTMENT AND AUTHORIZATION	1
	Section 2.01   Appointment of Servicer; Acceptance of Appointment	1
	Section 2.02   Authorization	2
	Section 2.03   Dominion and Control Over the Environmental Control Property	2
	 	 
	ARTICLE III   ROLE OF SERVICER	2
	Section 3.01   Duties of Servicer	2
	Section 3.02   Servicing and Maintenance Standards	5
	Section 3.03   Annual Reports on Compliance with Regulation AB	5
	Section 3.04   Annual Report by Independent Registered Public Accountants	6
	 	 
	ARTICLE IV   SERVICES RELATED TO TRUE-UP ADJUSTMENTS	7
	Section 4.01   True-Up Adjustments	7
	Section 4.02   Limitation of Liability	10
	 	 
	ARTICLE V   THE ENVIRONMENTAL CONTROL PROPERTY	11
	Section 5.01   Custody of Environmental Control Property Records	11
	Section 5.02   Duties of Servicer as Custodian	11
	Section 5.03   Custodian’s Indemnification	12
	Section 5.04   Effective Period and Termination	13
	 	 
	ARTICLE VI   THE SERVICER	13
	Section 6.01   Representations and Warranties of Servicer	13
	Section 6.02   Indemnities of Servicer; Release of Claims	15
	Section 6.03   Binding Effect of Servicing Obligations	17
	Section 6.04   Limitation on Liability of Servicer and Others	17
	Section 6.05   Wisconsin Electric Not to Resign as Servicer	18
	Section 6.06   Servicing Compensation	18
	Section 6.07   Compliance with Applicable Law	19
	Section 6.08   Access to Certain Records and Information Regarding Environmental Control Property	20
	Section 6.09   Appointments	20
	Section 6.10   No Servicer Advances	20
	Section 6.11   Remittances	20
	Section 6.12   Maintenance of Operations	21
	 	 
	ARTICLE VII   DEFAULT	21
	Section 7.01   Servicer Default	23
	Section 7.02   Appointment of Successor	23
	Section 7.03   Waiver of Past Defaults	24
	Section 7.04   Notice of Servicer Default	24

 

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TABLE OF CONTENTS

(continued)

 

	 	Page
	 	 
	Section 7.05   Cooperation with Successor	24
	 	 
	ARTICLE VIII   MISCELLANEOUS PROVISIONS	24
	Section 8.01   Amendment	24
	Section 8.02   Maintenance of Accounts and Records	25
	Section 8.03   Notices	25
	Section 8.04   Assignment	26
	Section 8.05   Limitations on Rights of Others	26
	Section 8.06   Severability	26
	Section 8.07   Separate Counterparts	26
	Section 8.08   Headings	26
	Section 8.09   Governing Law	26
	Section 8.10   Assignment to Indenture Trustee	27
	Section 8.11   Nonpetition Covenants	27
	Section 8.12   Limitation of Liability	27
	Section 8.13   Rule 17g-5 Compliance	27

 

EXHIBITS

 

	Exhibit A	Form of Monthly Servicer’s Certificate
	Exhibit B	Form of Semi-Annual Servicer’s Certificate
	Exhibit C	Form of Regulation AB Servicer Certificate
	Exhibit D	Form of Certificate of Compliance
	Exhibit E	Expected Amortization Schedule

 

ANNEXES

 

	Annex I	Servicing Procedures

 

    -ii-

     

    

 

This ENVIRONMENTAL
CONTROL PROPERTY SERVICING AGREEMENT, dated as of [____________], 2021 (this “Servicing Agreement”), is by and
between WEPCO ENVIRONMENTAL TRUST FINANCE I, LLC, a Delaware limited liability company, as issuer (the “Issuer”),
and WISCONSIN ELECTRIC POWER COMPANY, a Wisconsin corporation, as servicer (the “Servicer”).

 

RECITALS

 

WHEREAS, pursuant to
the Statute and the Financing Order, Wisconsin Electric Power Company, in its capacity as seller (the “Seller”),
and the Issuer are concurrently entering into the Sale Agreement pursuant to which the Seller is selling and the Issuer is purchasing
certain Environmental Control Property created pursuant to the Statute and the Financing Order described therein;

 

WHEREAS, in connection
with its ownership of the Environmental Control Property and in order to collect the associated Environmental Control Charges,
the Issuer desires to engage the Servicer to carry out the functions described herein and the Servicer desires to be so engaged;

 

WHEREAS, the Issuer
desires to engage the Servicer to act on its behalf in obtaining Annual True-Up Adjustments, Non-Routine True-Up Adjustments and
Interim True-Up Adjustments from the PSCW and the Servicer desires to be so engaged; and

 

WHEREAS, the EC Charge
Collections initially will be commingled with other funds collected by the Servicer;

 

NOW, THEREFORE, in
consideration of the premises and the mutual covenants herein contained, the parties hereto agree as follows:

 

ARTICLE
I

DEFINITIONS AND RULES OF CONSTRUCTION

 

Section 1.01       Definitions
and Rules of Construction.  Unless otherwise defined herein, capitalized terms used herein shall have the meanings assigned
to such terms in that certain Indenture (including Appendix A thereto) dated as of [________], 2021 (the “Indenture”),
between the Issuer and the U.S. Bank, National Association, in its capacity as indenture trustee (the “Indenture Trustee”)
and in its separate capacity as securities intermediary (the “Securities Intermediary”). Not all terms defined
in Appendix A of the Indenture are used in this Servicing Agreement. The rules of construction set forth in Appendix
A of the Indenture shall apply to this Servicing Agreement.

 

ARTICLE
II

APPOINTMENT AND AUTHORIZATION

 

Section 2.01        Appointment
of Servicer; Acceptance of Appointment.  The Issuer hereby appoints the Servicer, and the Servicer, as an
independent contractor, hereby accepts such appointment, to perform the Servicer’s obligations pursuant to this
Servicing Agreement on behalf of and for the benefit of the Issuer or any assignee thereof in accordance with the terms of
this Servicing Agreement and applicable law.  This appointment and the Servicer’s acceptance thereof may not be
revoked except in accordance with the express terms of this Servicing Agreement.

 

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Section 2.02       Authorization. 
With respect to all or any portion of the Environmental Control Property, the Servicer shall be, and hereby is, authorized and
empowered by the Issuer to (a) execute and deliver, on behalf of itself and/or the Issuer, as the case may be, any and all instruments,
documents or notices, and (b) on behalf of itself and/or the Issuer, as the case may be, make any filing and participate in proceedings
of any kind with any Governmental Authority, including with the PSCW.  The Issuer shall execute and deliver to the Servicer
such documents as have been prepared by the Servicer for execution by the Issuer and shall furnish the Servicer with such other
documents as may be in the Issuer’s possession, in each case as the Servicer may determine to be necessary or appropriate
to enable it to carry out its servicing and administrative duties hereunder.  Upon the Servicer’s written request,
the Issuer shall furnish the Servicer with any powers of attorney or other documents necessary or appropriate to enable the Servicer
to carry out its duties hereunder.

 

Section 2.03       
Dominion and Control Over the Environmental Control Property.  Notwithstanding any other provision herein, the
Issuer shall have dominion and control over the Environmental Control Property, and the Servicer, in accordance with the terms
hereof, is acting solely as the servicing agent and custodian for the Issuer with respect to the Environmental Control Property
and the Environmental Control Property Records.  The Servicer shall not take any action that is not authorized by this Servicing
Agreement, that would contravene the Statute, the PSCW Regulations or the Financing Order, that is not consistent with its customary
procedures and practices or that shall impair the rights of the Issuer in the Environmental Control Property, in each case unless
such action is required by applicable law or court or regulatory order.

 

ARTICLE
III

ROLE OF SERVICER

 

Section 3.01       
Duties of Servicer.  The Servicer, as agent for the Issuer, shall have the following duties:

 

(a)              
Duties of Servicer Generally.

 

(i)              The
Servicer’s duties in general shall include: management, servicing and administration of the Environmental Control Property;
obtaining meter reads, calculating usage and demand; billing, collections and posting of all payments in respect of the Environmental
Control Property; responding to inquiries by Customers, the PSCW or any other Governmental Authority with respect to the Environmental
Control Property or Environmental Control Charges; delivering Bills to Customers; investigating and handling delinquencies (and
furnishing reports with respect to such delinquencies to the Issuer), processing and depositing collections and making periodic
remittances; furnishing periodic reports to the Issuer, the Indenture Trustee and the Rating Agencies; making all filings with
the PSCW and taking such other action as may be necessary to perfect the Issuer’s ownership interests in and the Indenture
Trustee’s first priority Lien on the Environmental Control Property; making all filings and taking such other action as
may be necessary to perfect and maintain the perfection and priority of the Indenture Trustee’s Lien on all Environmental
Trust Bond Collateral; selling as the agent for the Issuer, as its interests may appear, defaulted or written off accounts in
accordance with the Servicer’s usual and customary practices; taking all necessary action in connection with True-Up Adjustments
as set forth herein; and performing such other duties as may be specified under the Financing Order to be performed by it. 
Anything to the contrary notwithstanding, the duties of the Servicer set forth in this Servicing Agreement shall be qualified
in their entirety by any PSCW Regulations, the Financing Order and the U.S. federal securities laws and the rules and regulations
promulgated thereunder, including, without limitation, Regulation AB, as in effect at the time such duties are to be performed. 
Without limiting the generality of this Section 3.01(a)(i), in furtherance of the foregoing, the Servicer hereby agrees
that it shall also have, and shall comply with, the duties and responsibilities relating to data acquisition, usage, demand and
bill calculation, billing, customer service functions, collections, posting, payment processing and remittance set forth in Annex
I attached hereto. 

 

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(ii)             PSCW
Regulations Control. Notwithstanding anything to the contrary in this Servicing Agreement, the duties of the Servicer set
forth in this Servicing Agreement shall be qualified and limited in their entirety by the Statute, the Financing Order and any
PSCW Regulations as in effect at the time such duties are to be performed.

 

(b)              
Reporting Functions.

 

(i)              
Monthly Servicer’s Certificate.  On or before the last Servicer Business Day of each month, the Servicer
shall prepare and deliver to the Issuer, the Indenture Trustee and the Rating Agencies a written report substantially in the form
of Exhibit A (a “Monthly Servicer’s Certificate”) setting forth certain information relating to
EC Charge Collections received by the Servicer during the preceding Billing Period; provided, however, that, for any month in which
the Servicer is required to deliver a Semi-Annual Servicer’s Certificate pursuant to Section 4.01(c)(ii), the Servicer
shall prepare and deliver the Monthly Servicer’s Certificate no later than the date of delivery of such Semi-Annual Servicer’s
Certificate.

 

(ii)             Notification of Laws and Regulations.  The Servicer shall immediately notify the Issuer, the Indenture Trustee
and the Rating Agencies in writing of any Requirements of Law or PSCW Regulations hereafter promulgated that have a material adverse
effect on the Servicer’s ability to perform its duties under this Servicing Agreement.

 

(iii)             Other
Information.  Upon the reasonable request of the Issuer, the Indenture Trustee or any Rating Agency, the Servicer shall
provide to the Issuer, the Indenture Trustee or such Rating Agency, as the case may be, any public financial information in respect
of the Servicer, or any material information regarding the Environmental Control Property to the extent it is reasonably available
to the Servicer, as may be reasonably necessary and permitted by law to enable the Issuer, the Indenture Trustee or the Rating
Agencies to monitor the performance by the Servicer hereunder; provided, however, that any such request by the Indenture Trustee
shall not create any obligation for the Indenture Trustee to monitor the performance of the Servicer. In addition, so long as
any of the Environmental Trust Bonds are outstanding, the Servicer shall provide the Issuer and the Indenture Trustee, within
a reasonable time after written request therefor, any information available to the Servicer or reasonably obtainable by it that
is necessary to calculate the Environmental Control Charges applicable to each EC Rate Class.

 

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(iv)            
Preparation of Reports.  The Servicer shall prepare and deliver such additional reports as required under this
Servicing Agreement, including a copy of each Semi-Annual Servicer’s Certificate described in Section 4.01(c)(ii),
the annual statements of compliance, attestation reports and other certificates described in Section 3.03 and the Annual
Accountant’s Report described in Section 3.04.  In addition, the Servicer shall prepare, procure, deliver and/or
file, or cause to be prepared, procured, delivered or filed, any reports, attestations, exhibits, certificates or other documents
required to be delivered or filed with the SEC (and/or any other Governmental Authority) by the Issuer or the Sponsor under the
U.S. federal securities or other applicable laws or in accordance with the Basic Documents, including, but without limiting the
generality of the foregoing, filing with the SEC, if applicable and required by applicable law, a copy or copies of (A) the Monthly
Servicer’s Certificates described in Section 3.01(b)(i) (under Form 10-D or any other applicable form), (B) the Semi-Annual
Servicer’s Certificates described in Section 4.01(c)(ii) (under Form 10-D or any other applicable form), (C) the annual
statements of compliance, attestation reports and other certificates described in Section 3.03 and (D) the Annual Accountant’s
Report (and any attestation required under Regulation AB) described in Section 3.04.  In addition, the appropriate
officer or officers of the Servicer shall (in its separate capacity as Servicer) sign the Sponsor’s annual report on Form
10-K (and any other applicable SEC or other reports, attestations, certifications and other documents), to the extent that the
Servicer’s signature is required by, and consistent with, the U.S. federal securities laws and/or any other applicable law.

 

(c)              
Opinions of Counsel.  The Servicer shall obtain and deliver to the Issuer and the Indenture Trustee:

 

(i)              
promptly after the execution and delivery of this Servicing Agreement and of each amendment hereto, an Opinion of Counsel
from external counsel of the Issuer either (A) to the effect that, in the opinion of such counsel, all filings, including filings
with the PSCW, the Wisconsin Department of Financial Institutions and the Delaware Secretary of State, that are necessary under
the UCC and the Statute to perfect or maintain, as applicable, the Liens of the Indenture Trustee in the Environmental Control
Property have been authorized, executed and filed, and reciting the details of such filings or referring to prior Opinions of Counsel
in which such details are given, or (B) to the effect that, in the opinion of such counsel, no such action shall be necessary to
preserve, protect and perfect such Liens; and

 

(ii)             within
ninety (90) days after the beginning of each calendar year beginning with the first calendar year beginning more than three (3)
months after the date hereof, an Opinion of Counsel from external counsel of the Issuer, dated as of a date during such ninety
(90)-day period, either (A) to the effect that, in the opinion of such counsel, all filings, including filings with the PSCW,
the Wisconsin Department of Financial Institutions and the Delaware Secretary of State, have been executed and filed that are
necessary under the UCC and the Statute to maintain the Liens of the Indenture Trustee in the Environmental Control Property,
and reciting the details of such filings or referring to prior Opinions of Counsel in which such details are given, or (B) to
the effect that, in the opinion of such counsel, no such action shall be necessary to preserve, protect and perfect such Liens.

 

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Each Opinion of Counsel referred to in
Section 3.01(c)(i) or Section 3.01(c)(ii) above shall specify any action necessary (as of the date of such opinion)
to be taken in the following year to perfect or maintain, as applicable, such interest or Lien.

 

Section 3.02       
Servicing and Maintenance Standards.  On behalf of the Issuer, the Servicer shall: (a) manage, service, administer
and make collections in respect of the Environmental Control Property with reasonable care and in material compliance with applicable
Requirements of Law, including all applicable PSCW Regulations and guidelines, using the same degree of care and diligence that
the Servicer exercises with respect to similar assets for its own account and, if applicable, for others; (b) follow customary
standards, policies and procedures for the retail electric distribution industry in Wisconsin in performing its duties as Servicer;
(c) use all reasonable efforts, consistent with its customary servicing procedures, to enforce, and maintain rights in respect
of, the Environmental Control Property and to bill and collect the Environmental Control Charges; (d) comply with Requirements
of Law, including all applicable PSCW Regulations and guidelines, applicable to and binding on it relating to the Environmental
Control Property; (e) file all PSCW notices described in the Statute and the Financing Order and file and maintain the effectiveness
of UCC financing statements with respect to the property transferred under the Sale Agreement; and (f) take such other action on
behalf of the Issuer to ensure that the Lien of the Indenture Trustee on the Environmental Trust Bond Collateral remains perfected
and of first priority.  The Servicer shall follow such customary and usual practices and procedures as it shall deem necessary
or advisable in its servicing of all or any portion of the Environmental Control Property, which, in the Servicer’s judgment,
may include the taking of legal action, at the Issuer’s expense but subject to the priority of payments set forth in Section
8.02(e) of the Indenture.

 

Section 3.03       
Annual Reports on Compliance with Regulation AB.

 

(a)               The
Servicer shall deliver to the Issuer, the Indenture Trustee and the Rating Agencies, on or before the earlier of (a) March 31
of each year or (b) with respect to each calendar year during which the Sponsor’s annual report on Form 10-K is
required to be filed in accordance with the Exchange Act and the rules and regulations thereunder, the date on which such
annual report on Form 10-K is required to be filed in accordance with the Exchange Act and the rules and regulations
thereunder, certificates from a Responsible Officer of the Servicer (i) containing, and certifying as to, the statements of
compliance required by Item 1123 (or any successor or similar items or rule) of Regulation AB, as then in effect, and (ii)
containing, and certifying as to, the statements and assessment of compliance required by Item 1122(a) (or any successor or
similar items or rule) of Regulation AB, as then in effect.  These certificates may be in the form of, or shall include
the forms attached hereto as Exhibit C and Exhibit D, with, in the case of Exhibit C, such changes as
may be required to conform to the applicable securities law.

 

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(b)              The
Servicer shall use commercially reasonable efforts to obtain, from each other party participating in the servicing function, any
additional certifications as to the statements and assessment required under Item 1122 or Item 1123 of Regulation AB to the extent
required in connection with the filing of the annual report on Form 10-K; provided, however, that a failure to obtain such certifications
shall not be a breach of the Servicer’s duties hereunder.  The parties acknowledge that the Indenture Trustee’s
certifications shall be limited to the Item 1122 certifications described in Exhibit C of the Indenture.

 

(c)               The
initial Servicer, in its capacity as Sponsor, shall post on its or its parent company’s website and cause the Issuer to
file with or furnish to the SEC, in periodic reports and other reports as are required from time to time under Section 13 or Section
15(d) of the Exchange Act, the information described in Section 3.07(g) of the Indenture to the extent such information is reasonably
available to the Sponsor.

 

(d)               Except
to the extent permitted by applicable law, the initial Servicer, in its capacity as Sponsor, shall not voluntarily suspend or
terminate its filing obligations as Sponsor with the SEC as described in Section 3.03(c).

 

Section 3.04       
Annual Report by Independent Registered Public Accountants.

 

(a)              
The Servicer shall cause a firm of Independent registered public accountants (which may provide other services to the Servicer
or the Seller) to prepare annually, and the Servicer shall deliver annually to the Issuer, the Indenture Trustee and the Rating
Agencies on or before the earlier of (i) March 31 of each year, beginning March 31, 2022, or (ii) with respect to each calendar
year during which the Issuer’s annual report on Form 10-K is required to be filed in accordance with the Exchange Act and
the rules and regulations thereunder, the date on which such annual report on Form 10-K is required to be filed in accordance with
the Exchange Act and the rules and regulations thereunder, a report (the “Annual Accountant’s Report”)
regarding the Servicer’s assessment of compliance with the servicing criteria set forth in Item 1122(d) of Regulation AB
during the immediately preceding twelve (12) months ended December 31 (or, in the case of the first Annual Accountant’s Report
to be delivered on or before March 31, 2022, the period of time from the date of this Servicing Agreement until December 31, 2021),
in accordance with paragraph (b) of Rule 13a-18 and Rule 15d-18 of the Exchange Act and Item 1122 of Regulation AB. In the event
that the accounting firm providing such report requires the Indenture Trustee to agree or consent to the procedures performed by
such firm, the Issuer shall direct the Indenture Trustee in writing to so agree; it being understood and agreed that the Indenture
Trustee will deliver such letter of agreement or consent in conclusive reliance upon the direction of the Issuer, and the Indenture
Trustee will not make any independent inquiry or investigation as to, and shall have no obligation or liability in respect of the
sufficiency, validity or correctness of such procedures.

 

(b)               The
Annual Accountant’s Report shall also indicate that the accounting firm providing such report is independent of the
Servicer in accordance with the rules of the Public Company Accounting Oversight Board and shall include any attestation
report required under Item 1122(b) of Regulation AB (or any successor or similar items or rule), as then in effect.

 

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ARTICLE
IV

SERVICES RELATED TO TRUE-UP ADJUSTMENTS

 

Section 4.01         True-Up
Adjustments.  From time to time, until the Retirement of the Environmental Trust Bonds, the Servicer shall identify the
need for Annual True-Up Adjustments, Mid-Year Interim True-Up Adjustments, Quarterly Interim True-Up Adjustments, Optional Interim
True-Up Adjustments and Non-Routine True-Up Adjustments and shall take all reasonable action to obtain and implement such True-Up
Adjustments, all in accordance with the following:

 

(a)               Expected
Amortization Schedule.  The Expected Amortization Schedule for the Environmental Trust Bonds is attached hereto as Exhibit
E. If the Expected Amortization Schedule is revised, the Servicer shall send a copy of such revised Expected Amortization
Schedule to the Issuer, the Indenture Trustee and the Rating Agencies promptly thereafter.

 

(b)               True-Up
Adjustments.

 

(i)           Annual
True-Up Adjustments and Filings.  Each year until the Retirement of the Environmental Trust Bonds, no later than [___________],
the Servicer shall: (A) update the data and assumptions underlying the calculation of the Environmental Control Charges, including
projected electricity consumption and demand during the next Collection Period for each EC Rate Class, as applicable, and including
Periodic Principal, interest and estimated expenses and fees of the Issuer to be paid during such period, the Weighted Average
Days Outstanding and write-offs; (B) determine the Periodic Revenue Requirement and Periodic Billing Requirement for the next
Collection Period based on such updated data and assumptions; (C) determine the Environmental Control Charges to be allocated
to each EC Rate Class during the next Collection Period based on such Periodic Billing Requirement and the terms of the Financing
Order, the Tariff and any other tariffs filed pursuant thereto and in doing so the Servicer shall use the method of allocating
Environmental Control Charges then in effect, including as applicable, the result of the implementation of the most recent Non-Routine
True-Up Adjustment; (D) make all required notice and other filings with the PSCW to reflect the revised Environmental Control
Charges, including any Amendatory Tariff; and (E) take all reasonable actions and make all reasonable efforts to effect such Annual
True-Up Adjustment by the the Annual True-Up Adjustment Date and to enforce the provisions of the Statute and the Financing Order.
The Servicer shall implement the revised Environmental Control Charges, if any, resulting from such Annual True-Up Adjustment
as of the Annual True-Up Adjustment Date.

 

(ii)          Non-Routine
True-Up Adjustments and Filings.  Whenever the Servicer determines that the existing model for calculating the Environmental
Control Charges should be amended or revised or the Servicer otherwise determines that circumstances warrant, the Servicer shall
file a request with the PSCW designating the adjustments to such model and/or any corresponding adjustments to the Environmental
Control Charges (collectively, a “Non-Routine True-Up Adjustment”), subject to the review and approval of the
PSCW that such adjustment is necessary to ensure the timely recovery of all Environmental Control Costs and all Financing Costs,
with such review and determination to occur within 45 days of the filing of the Non-Routine True-Up Adjustment Request. The Servicer
shall take all reasonable actions and make all reasonable efforts to effect any Non-Routine True-Up Adjustment and to enforce
the provisions of the Statute and the Financing Order.The Servicer shall implement the revised Environmental Control Charges,
if any, resulting from such Non-Routine True-Up Adjustment as of the Non-Routine True-Up Adjustment Date.

 

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(iii)         Mid-Year
and Quarterly Interim True-Up Adjustments and Filings. Each year until the Retirement of the Environmental Trust Bonds, no
later than [_________] (the “Mid-Year True-Up Adjustment Filing Date”), and, if there are any Environmental
Trust Bonds Outstanding following the last Scheduled Final Payment Date, no later than forty-five (45) days before each Quarterly
True-Up Adjustment Date (the “Quarterly True-Up Adjustment Filing Dates”), the Servicer shall have (A) updated
the data and assumptions underlying the calculation of the Environmental Control Charges, including projected electricity consumption
and demand during the next Collection Period for each EC Rate Class, as applicable, and including Periodic Principal, interest
and estimated expenses and fees of the Issuer to be paid during such period, the Weighted Average Days Outstanding and write-offs;
(B) determined the Periodic Revenue Requirement and Periodic Billing Requirement for the next Collection Period based on such updated
data and assumptions; and (C) based upon such updated data and requirements, forecasted whether EC Charge Collections together
with available fund balances in the Excess Funds Subaccount, will be sufficient, (i) to make on a timely basis all scheduled payments
of interest, principal and other amounts payable in respect of the Environmental Trust Bonds during such Collection Period and
(ii) to maintain the Capital Subaccount at the Required Capital Level. If the Servicer determines that EC Charge Collections will
not be sufficient for such purposes, the Servicer shall, no later than the Mid-Year True-Up Adjustment Filing Date or Quarterly
True-Up Adjustment Filing Date, as applicable, (1) determine the Environmental Control Charges to be allocated to each EC Rate
Class during the next Collection Period based on such Periodic Billing Requirement and the terms of the Financing Order and the
Tariff, and in doing so the Servicer shall use the method of allocating Environmental Control Charges then in effect, including
as applicable, the result of the implementation of the most recent Non-Routine True-Up Adjustment; (2) make all required notice
and other filings with the PSCW to reflect the revised Environmental Control Charges, including any Amendatory Tariff; and (3)
take all reasonable actions and make all reasonable efforts to effect such Interim True-Up Adjustment by the the Mid-Year True-Up
Adjustment Date or Quarterly Adjustment Date, as applicable, and to enforce the provisions of the Statute and the Financing Order.

 

(iv)         Optional
Interim True-Up Adjustments and Filings. In addition to the True-Up Adjustments described above in Sections
4.01(b)(i), 4.01(b)(ii) and 4.01(b)(iii), the Servicer may implement an Optional Interim True-Up Adjustment
(in the same manner as provided for the Mid-Year Interim True-Up Adjustments) at any time (A) if the Servicer forecasts that
EC Charge Collections during the current or succeeding Collection Period will be insufficient (1) to make all scheduled
payments of principal and interest due in respect of any Environmental Trust Bonds on a timely basis during such Collection
Period, or (2) to pay Operating Expenses on a timely basis, (B) to replenish any draws on the Capital Subaccount, or (C)
generally to correct for any under-collection or over-collection in order to assure timely payment of the Environmental Trust
Bonds.

 

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(c)              
Reports.

 

(i)           Notification
of Amendatory Tariff Filings and True-Up Adjustments.  Whenever the Servicer files an Amendatory Tariff with the PSCW
or implements revised Environmental Control Charges with notice to the PSCW without filing an Amendatory Tariff if permitted by
the Financing Order, the Servicer shall send a copy of such filing or notice (together with a copy of all notices and documents
which, in the Servicer’s reasonable judgment, are material to the adjustments effected by such Amendatory Tariff or notice)
to the Issuer, the Indenture Trustee and the Rating Agencies concurrently therewith.  If, for any reason any revised Environmental
Control Charges are not implemented and effective on the applicable date set forth herein, the Servicer shall notify the Issuer,
the Indenture Trustee and each Rating Agency by the end of the second Servicer Business Day after such applicable date.

 

(ii)          Semi-Annual
Servicer’s Certificate.  Not later than five (5) Servicer Business Days prior to each Payment Date or Special Payment
Date, the Servicer shall deliver a written report substantially in the form of Exhibit B hereto (the “Semi-Annual
Servicer’s Certificate”) to the Issuer, the Indenture Trustee and the Rating Agencies, which shall include all
of the following information (to the extent applicable and including any other information so specified in the Series Supplement)
as to the Environmental Trust Bonds with respect to such Payment Date or Special Payment Date or the period since the previous
Payment Date, as applicable:

 

(A)            
the amount of the payment to Holders allocable to principal, if any;

 

(B)             
the amount of the payment to Holders allocable to interest;

 

(C)             
the aggregate Outstanding Amount of the Environmental Trust Bonds, before and after giving effect to any payments allocated
to principal reported under Section 4.01(c)(ii)(A);

 

(D)            
the difference, if any, between the amount specified in Section 4.01(c)(ii)(C) and the Outstanding Amount specified
in the Expected Amortization Schedule;

 

(E)             
any other transfers and payments to be made on such Payment Date or Special Payment Date, including amounts paid to the
Indenture Trustee and to the Servicer; and

 

(F)             
the amounts on deposit in the Capital Subaccount and the Excess Funds Subaccount, after giving effect to the foregoing payments.

 

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(iii)              Reports to Customers.

 

   (A)            
After each revised Environmental Control Charge has gone into effect pursuant to a True-Up Adjustment, the Servicer shall,
to the extent and in the manner and time frame required by applicable PSCW Regulations, if any, cause to be prepared and delivered
to Customers any required notices announcing such revised Envrironmental Control Charges.

 

   (B)             
The Servicer shall comply with the requirements of the Financing Order and Tariff with respect to the identification of
Environmental Control Charges on Bills.

 

Section 4.02       
Limitation of Liability.

 

(a)              
The Issuer and the Servicer expressly agree and acknowledge that:

 

(i)           In connection with any True-Up Adjustment, the Servicer is acting solely in its capacity as the servicing agent hereunder.

 

(ii)          None of the Servicer, the Issuer or the Indenture Trustee is responsible in any manner for, and shall have no liability
whatsoever as a result of, any action, decision, ruling or other determination made or not made, or any delay (other than any delay
resulting from the Servicer’s failure to make any filings required by Section 4.01 in a timely and correct manner
or any breach by the Servicer of its duties under this Servicing Agreement that adversely affects the Environmental Control Property
or the True-Up Adjustments), by the PSCW in any way related to the Environmental Control Property or in connection with any
True-Up Adjustment, the subject of any filings under Section 4.01, any proposed True-Up Adjustment or the approval of any
revised Environmental Control Charges and the scheduled adjustments thereto.

 

(iii)         Except
to the extent that the Servicer is liable under Section 6.02, the Servicer shall have no liability whatsoever relating
to the calculation of any revised Environmental Control Charges and the scheduled adjustments thereto, including as a result of
any inaccuracy of any of the assumptions made in such calculation regarding expected energy consumption volume and demand and
the Weighted Average Days Outstanding, write-offs and estimated expenses and fees of the Issuer, so long as the Servicer has acted
in good faith and has not acted in a grossly negligent manner in connection therewith, nor shall the Servicer have any liability
whatsoever as a result of any Person, including the Holders, not receiving any payment, amount or return anticipated or expected
or in respect of any Environmental Trust Bond generally.

 

(b)              
Notwithstanding the foregoing, this Section 4.02 shall not relieve the Servicer of liability for any misrepresentation
by the Servicer under Section 6.01 or for any breach by the Servicer of its other obligations under this Servicing Agreement.

 

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ARTICLE
V

THE
ENVIRONMENTAL CONTROL PROPERTY

 

Section 5.01       
Custody of Environmental Control Property Records.  To assure uniform quality in servicing the Environmental
Control Property and to reduce administrative costs, the Issuer hereby revocably appoints the Servicer, and the Servicer hereby
accepts such appointment, to act as the agent of the Issuer as custodian of any and all documents and records that the Servicer
shall keep on file, in accordance with its customary procedures, relating to the Environmental Control Property, including copies
of the Financing Order, Tariff and Amendatory Tariffs relating thereto and all documents filed with the PSCW in connection with
any True-Up Adjustment and computational records relating thereto (collectively, the “Environmental Control Property Records”),
which are hereby constructively delivered to the Indenture Trustee, as pledgee of the Issuer with respect to all Environmental
Control Property.

 

Section 5.02       
Duties of Servicer as Custodian.

 

(a)              
Safekeeping.  The Servicer shall hold the Environmental Control Property Records on behalf of the Issuer and
maintain such accurate and complete accounts, records and computer systems pertaining to the Environmental Control Property Records
as shall enable the Issuer and the Indenture Trustee, as applicable, to comply with this Servicing Agreement, the Sale Agreement
and the Indenture.  In performing its duties as custodian, the Servicer shall act with reasonable care, using that degree
of care and diligence that the Servicer exercises with respect to comparable assets that the Servicer services for itself or, if
applicable, for others.  The Servicer shall promptly report to the Issuer, the Indenture Trustee and the Rating Agencies any
failure on its part to hold the Environmental Control Property Records and maintain its accounts, records and computer systems
as herein provided and promptly take appropriate action to remedy any such failure.  Nothing herein shall be deemed to require
an initial review or any periodic review by the Issuer or the  Indenture Trustee of the Environmental Control Property Records. 
The Servicer’s duties to hold the Environmental Control Property Records set forth in this Section 5.02, to the extent
the Environmental Control Property Records have not been previously transferred to a successor Servicer pursuant to ARTICLE
VII, shall terminate one year and one day after the earlier of (i) the date on which the Servicer is succeeded by a successor
Servicer in accordance with ARTICLE VII and (ii) the first date on which no Environmental Trust Bonds are Outstanding.

 

(b)              
Maintenance of and Access to Records.  The Servicer shall maintain the Environmental Control Property Records
at 231 West Michigan Street, Milwaukee, Wisconsin 53203, or at such other office as shall be specified to the Issuer and the Indenture
Trustee by written notice at least thirty (30) days prior to any change in location.  The Servicer shall make available for
inspection, audit and copying to the Issuer and the Indenture Trustee or their respective duly authorized representatives, attorneys
or auditors the Environmental Control Property Records at such times during normal business hours as the Issuer or the Indenture
Trustee shall reasonably request and which do not unreasonably interfere with the Servicer’s normal operations.  Nothing
in this Section 5.02(b) shall affect the obligation of the Servicer to observe any applicable law (including any PSCW Regulation)
prohibiting disclosure of information regarding Customers, and the failure of the Servicer to provide access to such information
as a result of such obligation shall not constitute a breach of this Section 5.02(b).

 

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(c)                Release of Documents.  Upon instruction from the Indenture Trustee in accordance with the Indenture, the Servicer
shall release any Environmental Control Property Records to the Indenture Trustee, the Indenture Trustee’s agent or the
Indenture Trustee’s designee, as the case may be, at such place or places as the Indenture Trustee may designate, as soon
as practicable.  Nothing in this Section 5.02(c) shall affect the obligation of the Servicer to observe any applicable
law (including any PSCW Regulation) prohibiting disclosure of information regarding Customers, and the failure of the Servicer
to provide access to such information as a result of such obligation shall not constitute a breach of this Section 5.02(c).

 

(d)              
Defending Environmental Control Property Against Claims.  The Servicer, on behalf of the Issuer and the Holders,
shall institute any action or proceeding necessary to compel performance by the PSCW and the State of Wisconsin of any of their
obligations or duties under the Statute, the Financing Order or any True-Up Adjustment with respect to the Environmental Control
Property, and the Servicer agrees to take such legal or administrative actions, including defending against or instituting and
pursuing legal actions and appearing or testifying at hearings or similar proceedings, as may be reasonably necessary to block
or overturn any attempts to cause a repeal of, modification of, or supplement to, the Statute or the Financing Order or the rights
of holders of Environmental Control Property by executive action, legislative enactment, constitutional amendment or other means
that would be adverse to Holders, the Issuer or the Indenture Trustee. In addition, in any proceeding related to the exercise of
the power of eminent domain by any municipality to acquire any portion of Wisconsin Electric’s electric distribution facilities,
the Servicer shall assert that the court ordering such condemnation must treat such municipality as a successor to Wisconsin Electric
under the Statute and the Financing Order. The costs of any such action shall be payable from EC Charge Collections as an Operating
Expense in accordance with the priorities set forth in Section 8.02(e) of the Indenture. The Servicer’s obligations pursuant
to this Section 5.02 shall survive and continue notwithstanding the fact that the payment of Operating Expenses pursuant to Section
8.02(e) of the Indenture may be delayed (it being understood that the Servicer may be required to advance its own funds to satisfy
its obligations hereunder).

 

Section 5.03       
Custodian’s Indemnification.  The Servicer as custodian shall indemnify the Issuer, any Independent Manager
and the Indenture Trustee (for itself and for the benefit of the Holders) and each of their respective officers, directors, employees
and agents for, and defend and hold harmless each such Person from and against, any and all liabilities, obligations, losses, damages,
payments and claims, and reasonable costs or expenses, of any kind whatsoever (collectively, “Indemnified Losses”)
that may be imposed on, incurred by or asserted against each such Person as the result of any grossly negligent act or omission
in any way relating to the maintenance and custody by the Servicer, as custodian, of the Environmental Control Property Records;
provided, however, that the Servicer shall not be liable for any portion of any such amount resulting from the willful misconduct,
bad faith or gross negligence of the Issuer, any Independent Manager or the Indenture Trustee, as the case may be. Indemnification
under this Section 5.03 shall survive resignation or removal of the Indenture Trustee or any Independent Manager and shall
include reasonable out-of-pocket fees and expenses of investigation and litigation (including reasonable attorneys’ fees
and expenses and reasonable fees, out-of-pocket expenses and costs incurred in connection with any action, claim or suit brought
to enforce the Indenture Trustee’s right to indemnification).

 

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Section 5.04         Effective Period and Termination.  The Servicer’s appointment as custodian shall become effective as
of the Closing Date and shall continue in full force and effect until terminated pursuant to this Section 5.04. If the
Servicer shall resign as Servicer in accordance with the provisions of this Servicing Agreement or if all of the rights and obligations
of the Servicer shall have been terminated under Section 7.01, the appointment of the Servicer as custodian shall be terminated
effective as of the date on which the termination or resignation of the Servicer is effective.  Additionally, if not sooner
terminated as provided above, the Servicer’s obligations as custodian shall terminate one year and one day after the date
on which no Environmental Trust Bonds are Outstanding.

 

ARTICLE
VI

THE SERVICER

 

Section 6.01       
Representations and Warranties of Servicer.  The Servicer makes the following representations and warranties,
as of the Closing Date, and as of such other dates as expressly provided in this Section 6.01, on which the Issuer and the
Indenture Trustee are deemed to have relied in entering into this Servicing Agreement relating to the servicing of the Environmental
Control Property.  The representations and warranties shall survive the execution and delivery of this Servicing Agreement,
the sale of the Environmental Control Property and the pledge thereof to the Indenture Trustee pursuant to the Indenture.

 

(a)           Organization and Good Standing.  The Servicer is duly organized, validly existing and is in good standing under
the laws of the State of Wisconsin, with the requisite corporate power and authority to own its properties and to conduct its business
as such properties are currently owned and such business is presently conducted and to execute, deliver and carry out the terms
of this Servicing Agreement, and had at all relevant times, and has, the requisite power, authority and legal right to service
the Environmental Control Property and to hold the Environmental Control Property Records as custodian.

 

(b)           Due Qualification.  The Servicer is duly qualified to do business and is in good standing and has obtained all
necessary licenses and approvals in all jurisdictions in which the ownership or lease of property or the conduct of its business
(including the servicing of the Environmental Control Property as required by this Servicing Agreement) shall require such qualifications,
licenses or approvals (except where the failure to so qualify would not be reasonably likely to have a material adverse effect
on the Servicer’s business, operations, assets, revenues or properties or to its servicing of the Environmental Control Property).

 

(c)           Power and Authority.  The execution, delivery and performance of the terms of this Servicing Agreement have
been duly authorized by all necessary corporate action on the part of the Servicer under its organizational or governing documents
and laws.

 

(d)           Binding Obligation.  This Servicing Agreement constitutes a legal, valid and binding obligation of the Servicer
enforceable against the Servicer in accordance with its terms, subject to applicable bankruptcy, insolvency, reorganization, moratorium,
fraudulent transfer and other laws relating to or affecting creditors’ rights generally from time to time in effect and to
general principles of  equity (including concepts of materiality, reasonableness, good faith and fair dealing), regardless
of whether considered in a proceeding in equity or at law.

 

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(e)           No Violation.  The consummation of the transactions contemplated by this Servicing Agreement and the fulfillment
of the terms thereof will not: (i) conflict with, result in any breach of any of the terms and provisions of, or constitute (with
or without notice or lapse of time) a default under, the organizational documents of the Servicer or any indenture or other agreement
or instrument to which the Servicer is a party or by which it or any of its property is bound; (ii) result in the creation or
imposition of any Lien upon any of its properties pursuant to the terms of any such indenture, agreement or other instrument (other
than any Lien that may be granted under the Basic Documents); or (iii) violate any existing law or any existing order, rule or
regulation applicable to the Servicer of any Governmental Authority having jurisdiction over the Servicer or its properties.

 

(f)            No
Proceedings. There are no proceedings pending and, to the Servicer’s knowledge, there are no proceedings threatened
and, to the Servicer’s knowledge, there are no investigations pending or threatened, before any Governmental Authority having
jurisdiction over the Servicer or its properties involving or relating to the Servicer or the Issuer or, to the Servicer’s
knowledge, any other Person: (i) asserting the invalidity of this Servicing Agreement or any of the other Basic Documents, (ii)
seeking to prevent the issuance of the Environmental Trust Bonds or the consummation of any of the transactions contemplated by
this Servicing Agreement or any of the other Basic Documents, (iii) seeking any determination or ruling that could reasonably
be expected to materially and adversely affect the performance by the Servicer of its obligations under, or the validity or enforceability
of, this Servicing Agreement, any of the other Basic Documents or the Environmental Trust Bonds or (iv) seeking to adversely affect
the federal income tax or state income or franchise tax classification of the Environmental Trust Bonds as debt.

 

(g)           Approvals.
No governmental approval, authorization, consent, order or other action of, or filing with, any Governmental Authority is required
in connection with the execution and delivery by the Servicer of this Servicing Agreement, the performance by the Servicer of
the transactions contemplated hereby or the fulfillment by the Servicer of the terms hereof, except those that have been obtained
or made, those that the Servicer is required to make in the future pursuant to Article IV and those that the Servicer may
need to file in the future to continue the effectiveness of any financing statement filed under the UCC.

 

(h)           Reports and Certificates.  Each report and certificate delivered in connection with any filing made to the PSCW
by the Servicer on behalf of the Issuer with respect to the Environmental Control Charges or True-Up Adjustments will constitute
a representation and warranty by the Servicer that each such report or certificate, as the case may be, is true and correct in
all material respects; provided, however, that, to the extent any such report or certificate is based in part upon or contains
assumptions, forecasts or other predictions of future events, the representation and warranty of the Servicer with respect thereto
will be limited to the representation and warranty that such assumptions, forecasts or other predictions of future events are reasonable
based upon historical performance (and facts known to the Servicer on the date such report or certificate is delivered).

 

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Section 6.02       
Indemnities of Servicer; Release of Claims. 

 

(a)           The
Servicer shall be liable in accordance herewith only to the extent of the obligations specifically undertaken by the Servicer under
this Servicing Agreement.

 

(b)          The
Servicer shall indemnify the Issuer, the Indenture Trustee (for itself and for the benefit of the Holders) and any Independent
Manager, and each of their respective trustees, officers, directors, employees and agents (each, an “Indemnified Person”),
for, and defend and hold harmless each such Person from and against, any and all Indemnified Losses imposed on, incurred by or
asserted against any such Person as a result of (i) the Servicer’s willful misconduct, bad faith or gross negligence in the
performance of, or reckless disregard of, its duties or observance of its covenants under the Servicing Agreement or any Intercreditor
Agreement, (ii) the Servicer’s material breach of any of its representations or warranties that results in a Servicer Default
under this Servicing Agreement or any Intercreditor Agreement; and (iii) any litigation or related expenses relating to the Servicer’s
status or obligations as Servicer (other than any proceeding the Servicer is required to institute under this Servicing Agreement),
except to the extent of Indemnified Losses either resulting from the willful misconduct, bad faith or gross negligence of such
Person seeking indemnification hereunder or resulting from a breach of a representation or warranty made by such Person seeking
indemnification hereunder in any of the Basic Documents that gives rise to the Servicer’s breach.

 

(c)           For
purposes of Section 6.02(b), in the event of the termination of the rights and obligations of Wisconsin Electric (or any
successor thereto pursuant to Section 6.03) as Servicer pursuant to Section 7.01, or a resignation by such Servicer
pursuant to this Servicing Agreement, such Servicer shall be deemed to be the Servicer pending appointment of a successor Servicer
pursuant to Section 7.02.

 

(d)           Indemnification
under this Section 6.02 shall survive any repeal of, modification of, or supplement to, or judicial invalidation of, the
Statute or the Financing Order and shall survive the resignation or removal of the Indenture Trustee or any Independent Manager
or the termination of this Servicing Agreement and shall include reasonable out-of-pocket fees and expenses of investigation and
litigation (including reasonable attorneys’ fees and expenses and the reasonable fees, out-of-pocket expenses and costs incurred
in connection with any action, claim or suit brought to enforce the Indenture Trustee’s right to indemnification).

 

(e)           Except
to the extent expressly provided in this Servicing Agreement or the other Basic Documents (including the Servicer’s claims
with respect to the Servicing Fee, reimbursement for any Excess Remittance, reimbursement for costs incurred pursuant to Section
5.02(d) and the payment of the purchase price of Environmental Control Property), the Servicer hereby releases and discharges the
Issuer, any Independent Manager and the Indenture Trustee, and each of their respective officers, directors and agents (collectively,
the “Released Parties”), from any and all actions, claims and demands whatsoever, whenever arising, which the
Servicer, in its capacity as Servicer or otherwise, shall or may have against any such Person relating to the Environmental Control
Property or the Servicer’s activities with respect thereto, other than any actions, claims and demands arising out of the
willful misconduct, bad faith or gross negligence of the Released Parties.

 

(f)           The
Servicer shall not be required to indemnify an Indemnified Person for any amount paid or payable by such Indemnified Person
in the settlement of any action, proceeding or investigation without the written consent of the Servicer, which consent shall
not be unreasonably withheld.

 

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(g)       Promptly
after receipt by an Indemnified Person of notice (or, in the case of the Indenture Trustee, receipt of notice by a Responsible
Officer only) of the commencement of any action, proceeding or investigation, such Indemnified Person shall, if a claim in respect
thereof is to be made against the Servicer under this Section 6.02, notify the Servicer in writing of the commencement thereof. 
Failure by an Indemnified Person to so notify the Servicer shall relieve the Servicer from the obligation to indemnify and hold
harmless such Indemnified Person under this Section 6.02 only to the extent that the Servicer suffers actual prejudice as
a result of such failure.  With respect to any action, proceeding or investigation brought by a third party for which indemnification
may be sought under this Section 6.02, the Servicer shall be entitled to conduct and control, at its expense and with counsel
of its choosing that is reasonably satisfactory to such Indemnified Person, the defense of any such action, proceeding or investigation
(in which case the Servicer shall not thereafter be responsible for the fees and expenses of any separate counsel retained by the
Indemnified Person except as set forth below); provided, that the Indemnified Person shall have the right to participate in such
action, proceeding or investigation through counsel chosen by it and at its own expense.  Notwithstanding the Servicer’s
election to assume the defense of any action, proceeding or investigation, the Indemnified Person shall have the right to employ
separate counsel (including local counsel), and the Servicer shall bear the reasonable fees, costs and expenses of such separate
counsel, if (i) the defendants in any such action include both the Indemnified Person and the Servicer and the Indemnified Person
shall have reasonably concluded that there may be legal defenses available to it that are different from or additional to those
available to the Servicer, (ii) the Servicer shall not have employed counsel reasonably satisfactory to the Indemnified Person
to represent the Indemnified Person within a reasonable time after notice of the institution of such action, (iii) the Servicer
shall authorize the Indemnified Person to employ separate counsel at the expense of the Servicer or (iv) in the case of the Indenture
Trustee, such action exposes the Indenture Trustee to a material risk of criminal liability or forfeiture or a Servicer Default
has occurred and is continuing.  Notwithstanding the foregoing, the Servicer shall not be obligated to pay for the fees, costs
and expenses of more than one separate counsel for the Indemnified Parties other than one local counsel, if appropriate. 
The Servicer will not, without the prior written consent of the Indemnified Person, settle or compromise or consent to the entry
of any judgment with respect to any pending or threatened claim, action, suit or proceeding in respect of which indemnification
may be sought under this Section 6.02 (whether or not the Indemnified Person is an actual or potential party to such claim
or action) unless such settlement, compromise or consent includes an unconditional release of the Indemnified Person from all liability
arising out of such claim, action, suit or proceeding.

 

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Section 6.03        Binding
Effect of Servicing Obligations.  The obligations to continue to provide service and to collect and account for
Environmental Control Charges will be binding upon the Servicer and any successor (within the meaning of the Statute and as
provided in the Financing Order) so long as the Environmental Control Charges have not been fully collected and posted. Any
Person (a) into which the Servicer may be merged, converted or consolidated and which is a Permitted Successor, (b) that may
result from any merger, conversion or consolidation to which the Servicer shall be a party and which is a Permitted
Successor, (c) that may succeed to the properties and assets of the Servicer substantially as a whole and which is a
Permitted Successor, (d) which results from the division of the Servicer into two or more Persons and which is a Permitted
Successor, or (e) which otherwise is a Permitted Successor, which Person in any of the foregoing cases executes an
agreement of assumption to perform all of the obligations of the Servicer hereunder, shall be the successor to the Servicer
under this Servicing Agreement without further act on the part of any of the parties to this Servicing Agreement; provided,
however, that (i) immediately after giving effect to such transaction, no representation or warranty made pursuant to Section
6.01 shall have been breached and no Servicer Default and no event which, after notice or lapse of time, or both, would
become a Servicer Default shall have occurred and be continuing, (ii) the Servicer shall have delivered to the Issuer and the
Indenture Trustee an Officer’s Certificate and an Opinion of Counsel from external counsel stating that such
consolidation, conversion, merger, division or succession and such agreement of assumption complies with this Section
6.03 and that all conditions precedent, if any, provided for in this Servicing Agreement relating to such transaction
have been complied with, (iii) the Servicer shall have delivered to the Issuer, the Indenture Trustee and the Rating Agencies
an Opinion of Counsel from external counsel of the Servicer either (A) stating that, in the opinion of such counsel, all
filings to be made by the Servicer, including filings with the PSCW pursuant to the Statute and the UCC, have been executed
and filed and are in full force and effect that are necessary to fully preserve, perfect and maintain the priority of the
interests of the Issuer and the Liens of the Indenture Trustee in the Environmental Control Property and reciting the details
of such filings or (B) stating that, in the opinion of such counsel, no such action shall be necessary to maintain such
interests, (iv) the Servicer shall have delivered to the Issuer, the Indenture Trustee and the Rating Agencies an Opinion of
Counsel from independent tax counsel stating that, for U.S. federal income tax purposes, such consolidation, conversion,
merger, division or succession and such agreement of assumption will not result in a material adverse U.S. federal income tax
consequence to the Issuer or the Holders of Environmental Trust Bonds and (v) the Servicer shall have given the Rating
Agencies prior written notice of such transaction.  When any Person (or more than one Person) acquires the properties
and assets of the Servicer substantially as a whole or otherwise becomes the successor, by merger, conversion, consolidation,
sale, transfer, lease or otherwise, to all or substantially all the assets of the retail electric distribution business of
the Servicer in accordance with the terms of this Section 6.03, then, upon satisfaction of all of the other conditions
of this Section 6.03, the preceding Servicer shall automatically and without further notice be released from all its
obligations hereunder.

 

Section 6.04        Limitation
on Liability of Servicer and Others.

 

(a)               Except
as otherwise provided under this Servicing Agreement, neither the Servicer nor any of the directors, officers, employees or agents
of the Servicer shall be liable to the Issuer or any other Person for any action taken or for refraining from the taking of any
action pursuant to this Servicing Agreement or for good faith errors in judgment; provided, however, that this provision shall
not protect the Servicer or any such Person against any liability that would otherwise be imposed by reason of gross negligence,
recklessness or willful misconduct in the performance of duties or by reason of reckless disregard of obligations and duties under
this Servicing Agreement or any Intercreditor Agreement.  The Servicer and any director, officer, employee or agent of the
Servicer may rely in good faith on the advice of counsel reasonably acceptable to the Indenture Trustee or on any document of
any kind, prima facie properly executed and submitted by any Person, respecting any matters arising under this Servicing Agreement.

 

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(b)               Except as provided in this Servicing Agreement, including but not limited to Section 5.02(d), the Servicer shall
not be under any obligation to appear in, prosecute or defend any legal action relating to the Environmental Control Property
that is not directly related to one of the Servicer’s enumerated duties in this Servicing Agreement or related to its obligation
to pay indemnification, and that in its reasonable opinion may cause it to incur any expense or liability; provided, however,
that the Servicer may, in respect of any Proceeding, undertake any action that is not specifically identified in this Servicing
Agreement as a duty of the Servicer but that the Servicer reasonably determines is necessary or desirable in order to protect
the rights and duties of the Issuer or the Indenture Trustee under this Servicing Agreement and the interests of the Holders and
Customers under this Servicing Agreement.

 

Section 6.05        Wisconsin
Electric Not to Resign as Servicer.  Subject to the provisions of Section 6.03, Wisconsin Electric shall not resign from
the obligations and duties hereby imposed on it as Servicer under this Servicing Agreement except upon either (a) a determination
by Wisconsin Electric that the performance of its duties under this Servicing Agreement shall no longer be permissible under applicable
law, or (b) satisfaction of the following: (i) the Rating Agency Condition shall have been satisfied and (ii) the PSCW shall have
approved of such resignation. Notice of any such determination permitting the resignation of Wisconsin Electric shall be communicated
to the Issuer, the PSCW, the Indenture Trustee and each Rating Agency at the earliest practicable time (and, if such communication
is not in writing, shall be confirmed in writing at the earliest practicable time), and any such determination shall be evidenced
by an Opinion of Counsel to such effect delivered to the Issuer, the PSCW and each Indenture Trustee concurrently with or promptly
after such notice. No such resignation shall become effective until a successor Servicer shall have assumed the responsibilities
and obligations of Wisconsin Electric in accordance with Section 7.02.

 

Section 6.06        Servicing
Compensation.

 

(a)               In
consideration for its services hereunder, until the Retirement of the Environmental Trust Bonds, the Servicer shall receive
an annual fee (the “Servicing Fee”) in an amount equal to (i) 0.05% of the aggregate initial principal
amount of all Environmental Trust Bonds for so long as Wisconsin Electric or an Affiliate of Wisconsin Electric is the
Servicer or (ii) if Wisconsin Electric or any of its Affiliates is not the Servicer, an amount agreed upon by the Successor
Servicer and the Indenture Trustee, provided, that the annual Servicing Fee shall not exceed 0.60% of the aggregate initial
principal amount of all Environmental Trust Bonds, unless the PSCW has approved the appointment of the Successor Servicer or
the PSCW does not act to either approve or disapprove such appointment on or before the date which is 45 days after notice of
the proposed appointment of the Successor Servicer is provided to the PSCW in the same manner substantially as provided in Section
8.01(c).  The Servicing Fee owing shall be calculated based on the initial principal amount of the Environmental
Trust Bonds and shall be paid semi-annually, with half of the Servicing Fee being paid on each Payment Date, except for the
amount of the Servicing Fee to be paid on the first Payment Date in which the Servicing Fee then due will be calculated based
on the number of days that this Servicing Agreement has been in effect. The Servicer also shall be entitled to retain as
additional compensation (i) any interest earnings on EC Charge Collections received by the Servicer and invested by the
Servicer during each Billing Period prior to remittance to the Collection Account, and (ii) all late payment charges, if any,
collected from Customers. In addition, the Servicer shall be entitled to be reimbursed by the Issuer for filing fees and fees
and expenses for attorneys, accountants, printing or other professional services retained by the Issuer and paid for by the
Servicer (or procured by the Servicer on behalf of the Issuer and paid for by the Servicer) to meet the Issuer’s
obligations under the Basic Documents (“Reimbursable Expenses”). Except for such Reimbursable Expenses,
the Servicer shall be required to pay all other costs and expenses incurred by the Servicer in performing its activities
hereunder (but, for the avoidance of doubt, excluding any such costs and expenses incurred by Wisconsin Electric in its
capacity as Administrator). It is expressly acknowledged that the payment of fees to the Rating Agencies shall be at the
expense of the Issuer and that, if the Servicer advances such payments to the Rating Agencies, the Issuer shall reimburse the
Servicer for any such advances.

 

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(b)              The
Servicing Fee set forth in Section 6.06(a) shall be paid to the Servicer by the Indenture Trustee, on each Payment Date
in accordance with the priorities set forth in Section 8.02(e) of the Indenture, by wire transfer of immediately available funds
from the Collection Account to an account designated by the Servicer.  Any portion of the Servicing Fee not paid on any such
date shall be added to the Servicing Fee payable on the subsequent Payment Date.  In no event shall the Indenture Trustee
be liable for the payment of any Servicing Fee or other amounts specified in this Section 6.06; provided, that this Section
6.06 does not relieve the Indenture Trustee of any duties it has to allocate funds for payment for such fees under Section
8.02 of the Indenture.

 

(c)               The
Servicer and the Issuer acknowledge and agree that the Servicer’s EC Charge Collections on some days might exceed the Servicer’s
Estimated EC Charge Collections, and that the Servicer’s EC Charge Collections on other days might be less than the Servicer’s
Estimated EC Charge Collections. The Servicer and the Issuer further acknowledge and agree that the amount of these variances
are likely to be small and are not likely to be biased in favor of over-remittances or under-remittances. Consequently, so long
as the Servicer faithfully makes all remittances based on Weighted Average Days Outstanding, as provided for herein, the Servicer
and the Issuer agree that no actual or deemed investment earnings shall be payable in respect of such over-remittances or under-remittances.

 

(d)              The
foregoing Servicing Fee constitutes a fair and reasonable compensation for the obligations to be performed by the Servicer. 
Such Servicing Fee shall be determined without regard to the income of the Issuer, shall not be deemed to constitute distributions
to the recipient of any profit, loss or capital of the Issuer and shall be considered a fixed Operating Expense of the Issuer
subject to the limitations on such expenses set forth in the Financing Order.

 

Section 6.07        Compliance
with Applicable Law.  The Servicer covenants and agrees, in servicing the Environmental Control Property, to comply in
all material respects with all laws applicable to, and binding upon, the Servicer and relating to the Environmental Control Property,
the noncompliance with which would have a material adverse effect on the value of the Environmental Control Property; provided,
however, that the foregoing is not intended to, and shall not, impose any liability on the Servicer for noncompliance with any
Requirements of Law that the Servicer is contesting in good faith in accordance with its customary standards and procedures. 

 

    19

     

    

 

Section 6.08       Access
to Certain Records and Information Regarding Environmental Control Property.  The Servicer shall provide to the Indenture
Trustee access to the Environmental Control Property Records as is reasonably required for the Indenture Trustee to perform its
duties and obligations under the Indenture and the other Basic Documents, and shall provide access to such records to the Holders
as required by applicable law.  Access shall be afforded without charge, but only upon reasonable request and during normal
business hours at the offices of the Servicer.  Nothing in this Section 6.08 shall affect the obligation of the Servicer
to observe any applicable law (including any PSCW Regulation) prohibiting disclosure of information regarding Customers, and the
failure of the Servicer to provide access to such information as a result of such obligation shall not constitute a breach of
this Section 6.08.

 

Section 6.09       
Appointments.  The Servicer may at any time appoint any Person to perform all or any portion of its obligations
as Servicer hereunder; provided, however, that, unless such Person is an Affiliate of Wisconsin Electric, the Rating Agency Condition
shall have been satisfied in connection therewith; provided, further, that the Servicer shall remain obligated and be liable under
this Servicing Agreement for the servicing and administering of the Environmental Control Property in accordance with the provisions
hereof without diminution of such obligation and liability by virtue of the appointment of such Person and to the same extent and
under the same terms and conditions as if the Servicer alone were servicing and administering the Environmental Control Property. 
The fees and expenses of any such Person shall be as agreed between the Servicer and such Person from time to time, and none of
the Issuer, the Indenture Trustee, the Holders or any other Person shall have any responsibility therefor or right or claim thereto. 
Any such appointment shall not constitute a Servicer resignation under Section 6.05.

 

Section 6.10       
No Servicer Advances.  The Servicer shall not make any advances of interest on or principal of the Environmental
Trust Bonds.

 

Section 6.11       
Remittances.

 

(a)              On
each Servicer Business Day, commencing the Weighted Average Days Outstanding after the Environmental Control Charges are first
billed in accordance with the terms of the Financing Order, the Servicer shall calculate and remit within two Servicer Business
Days after deemed receipt to the General Subaccount of the Collection Account an amount equal to the total Estimated EC Charge
Collections deemed to have been received by the Servicer on such Servicer Business Day (the “Daily Remittance Amount”),
which Daily Remittance Amount shall be calculated according to the procedures set forth in Annex I.  Prior to each
remittance to the General Subaccount of the Collection  Account pursuant to this Section 6.11, the Servicer shall
provide written notice (which may be via electronic means, including electronic mail) to the Indenture Trustee of each such remittance
(including the exact dollar amount to be remitted).  The Servicer shall also, promptly upon receipt, remit to the Collection
Account any other proceeds of the Environmental Trust Bond Collateral which it may receive from time to time. 

 

    20

     

    

 

(b)              The
Servicer agrees and acknowledges that it holds all EC Charge Collections collected by it and any other proceeds for the Environmental
Trust Bond Collateral received by it for the benefit of the Indenture Trustee and the Holders and that all such amounts will be
remitted by the Servicer in accordance with this Section 6.11 without any surcharge, fee, offset, charge or other deduction
except (i) as set forth in clause (c) below and (ii) for late fees and investment earnings permitted by Section 6.06. 
The Servicer further agrees not to make any claim to reduce its obligation to remit all EC Charge Collections collected by it
in accordance with this Servicing Agreement except (i) as set forth in clause (c) below and (ii) for late fees and investment
earnings permitted by Section 6.06.

 

(c)              On
or before March 1 of each year, commencing with March 1, 2022, the Servicer shall calculate the amount of any Remittance Shortfall
or Excess Remittance attributable to the prior Reconciliation Period1
and (A) if a Remittance Shortfall exists, the Servicer shall make a supplemental remittance to the General Subaccount
of the Collection Account within two (2) Servicer Business Day following such calculation in the amount of such Remittance Shortfall,
or (B) if an Excess Remittance exists, the Servicer may reduce the amount of each Daily Remittance Amount to be made to the General
Subaccount of the Collection Account on succeeding Servicer Business Days in an amount equal to the amount of such Excess Remittance
until the balance of such Excess Remittance has been reduced to zero. The Servicer shall deliver a written report setting forth
in reasonable detail the calculation of any Excess Remittance or Remittance Shortfall to the Issuer, the Indenture Trustee and
the Rating Agencies.

 

Section 6.12       Maintenance
of Operations.  Subject to Section 6.03, Wisconsin Electric agrees to continue, unless prevented by circumstances
beyond its control, to operate its retail electric distribution system to provide service so long as it is acting as the Servicer
under this Servicing Agreement.

 

ARTICLE
VII

DEFAULT

 

Section 7.01        Servicer
Default.  If any one or more of the following events (a “Servicer Default”) shall occur and be continuing:

 

(a)              
any failure by the Servicer to remit to the Collection Account on behalf of the Issuer any required remittance that shall
continue unremedied for a period of five (5) Business Days after written notice of such failure is received by the Servicer from
the Issuer or the Indenture Trustee or after discovery of such failure by a Responsible Officer of the Servicer;

 

(b)              any
failure on the part of the Servicer or, so long as the Servicer is Wisconsin Electric or an Affiliate thereof, any failure on
the part of Wisconsin Electric, as the case may be, duly to observe or to perform in any material respect any covenants or agreements
of the Servicer or Wisconsin Electric, as the case may be, set forth in this Servicing Agreement (other than as provided in Section
7.01(a) or Section 7.01(c)) or any other Basic Document to which it is a party, which failure shall (i) materially
and adversely affect the rights of the Holders and (ii) continue unremedied for a period of sixty (60) days after the date on
which (A) written notice of such failure, requiring the same to be remedied, shall have been given to the Servicer or Wisconsin
Electric, as the case may be, by the Issuer (with a copy to the Indenture Trustee) or to the Servicer or Wisconsin Electric, as
the case may be, by the Indenture Trustee or (B) such failure is discovered by a Responsible Officer of the Servicer;

 

 

 

1 Each
Reconciliation Period will be the period of January 1 through December 31 of a calendar year, except that the initial Reconciliation
Period will be from the closing date of the issuance of the bonds through December 31, 2021.

 

    21

     

    

 

(c)               any failure by the Servicer duly to perform its obligations under Section 4.01(b) of this Servicing Agreement in
the time and manner set forth therein, which failure continues unremedied for a period of five (5) Business Days;

 

(d)              any
representation or warranty made by the Servicer in this Servicing Agreement or any other Basic Document shall prove to have been
incorrect in a material respect when made, which has a material adverse effect on the Holders and which material adverse effect
continues unremedied for a period of sixty (60) days after the date on which (i) written notice thereof, requiring the same to
be remedied, shall have been delivered to the Servicer (with a copy to the Indenture Trustee) by the Issuer or the Indenture Trustee
or (ii) such failure is discovered by a Responsible Officer of the Servicer; or

 

(e)               an
Insolvency Event occurs with respect to the Servicer or Wisconsin Electric;

 

then, and in each and every case, so long as the
Servicer Default shall not have been remedied, either the Indenture Trustee may, or shall upon the instruction of Holders
evidencing not less than a majority of the Outstanding Amount of the Environmental Trust Bonds, by notice then given in
writing to the Servicer (and to the Indenture Trustee if given by the Holders) (a “Termination Notice”),
terminate all the rights and obligations (other than the obligations set forth in Section 6.02 and the obligation
under Section 7.02 to continue performing its functions as Servicer until a successor Servicer is appointed) of the
Servicer under this Servicing Agreement.  In addition, upon a Servicer Default described in Section 7.01(a), the
Holders and the Indenture Trustee as interested parties under the Statute (or any of their representatives) shall be entitled
to apply to a court of appropriate jurisdiction for an order for sequestration and payment of revenues arising with respect
to the Environmental Control Property. On or after the receipt by the Servicer of a Termination Notice, all authority and
power of the Servicer under this Servicing Agreement, whether with respect to the Environmental Trust Bonds, the
Environmental Control Property, the Environmental Control Charges or otherwise, shall, without further action, pass to and be
vested in such successor Servicer as may be appointed under Section 7.02; and, without limitation, the Indenture
Trustee is hereby authorized and empowered to execute and deliver, on behalf of the predecessor Servicer, as attorney-in-fact
or otherwise, any and all documents and other instruments, and to do or accomplish all other acts or things necessary or
appropriate to effect the purposes of such Termination Notice, whether to complete the transfer of the Environmental Control
Property Records and related documents, or otherwise.  The predecessor Servicer shall cooperate with the successor
Servicer, the Issuer and the Indenture Trustee in effecting the termination of the responsibilities and rights of the
predecessor Servicer under this Servicing Agreement, including the transfer to the successor Servicer for administration by
it of all Environmental Control Property Records and all cash amounts that shall at the time be held by the predecessor
Servicer for remittance, or shall thereafter be received by it with respect to the Environmental Control Property or the
Environmental Control Charges.  As soon as practicable  after receipt by the Servicer of such Termination Notice,
the Servicer shall deliver the Environmental Control Property Records to the successor Servicer.  In case a successor
Servicer is appointed as a result of a Servicer Default, all reasonable costs and expenses (including reasonable
attorneys’ fees and expenses) incurred in connection with transferring the Environmental Control Property Records to
the successor Servicer and amending this Servicing Agreement to reflect such succession as Servicer pursuant to this Section
7.01 shall be paid by the predecessor Servicer upon presentation of reasonable documentation of such costs and
expenses.  Termination of Wisconsin Electric as Servicer shall not terminate Wisconsin Electric’s rights or
obligations under the Sale Agreement (except rights thereunder deriving from its rights as the Servicer hereunder).

 

    22

     

    

 

Section 7.02       
Appointment of Successor.

 

(a)               Upon
the Servicer’s receipt of a Termination Notice pursuant to Section 7.01 or the Servicer’s resignation or removal
in accordance with the terms of this Servicing Agreement, the predecessor Servicer shall continue to perform its functions as
Servicer under this Servicing Agreement, and shall be entitled to receive the requisite portion of the Servicing Fee, until a
successor Servicer shall have assumed in writing the obligations of the Servicer hereunder as described below.  In the event
of the Servicer’s removal or resignation hereunder, the Indenture Trustee may, or, at the written direction and with the
consent of the Holders of at least a majority of the Outstanding Amount of the Environmental Trust Bonds, shall, appoint a successor
Servicer with the Issuer’s prior written consent thereto (which consent shall not be unreasonably withheld), and the successor
Servicer shall accept its appointment by a written assumption in form reasonably acceptable to the Issuer and the Indenture Trustee
and provide prompt written notice of such assumption to the Issuer and the Rating Agencies.  If, within thirty (30) days
after the delivery of the Termination Notice, a new Servicer shall not have been appointed, the Indenture Trustee may, at the
direction of the Holders of at least a majority of the Environmental Trust Bonds, petition the PSCW or a court of competent jurisdiction
to appoint a successor Servicer under this Servicing Agreement.  A Person shall qualify as a successor Servicer only if (i)
such Person is permitted under PSCW Regulations to perform the duties of the Servicer, (ii) the Rating Agency Condition shall
have been satisfied and (iii) such Person enters into a servicing agreement with the Issuer having substantially the same provisions
as this Servicing Agreement.  In no event shall the Indenture Trustee be liable for its appointment of a successor Servicer. 
The Indenture Trustee’s expenses incurred under this Section 7.02(a) shall be at the sole expense of the Issuer and
payable from the Collection Account as provided in Section 8.02 of the Indenture.

 

(b)              Upon
appointment, the successor Servicer shall be the successor in all respects to the predecessor Servicer and shall be subject to
all the responsibilities, duties and liabilities arising thereafter placed on the predecessor Servicer and shall be entitled to
the Servicing Fee and all the rights granted to the predecessor Servicer by the terms and provisions of this Servicing Agreement.

 

Section 7.03        Waiver
of Past Defaults.  The Holders evidencing not less than a majority of the Outstanding Amount of the Environmental Trust
Bonds, may, on behalf of all Holders, direct the Indenture Trustee to waive in writing any default by the Servicer in the performance
of its obligations hereunder and its consequences, except a default in making any required deposits to the Collection Account
in accordance with this Servicing Agreement.  Upon any such waiver of a past default, such default shall cease to exist,
and any Servicer Default arising therefrom shall be deemed to have been remedied for every purpose of this Servicing Agreement. 
No such waiver shall extend to any subsequent or other default or impair any right consequent thereto.  Promptly after the
execution of any such waiver, the Servicer shall furnish copies of such waiver to each of the Rating Agencies.

 

    23

     

    

 

Section 7.04        Notice
of Servicer Default.  The Servicer shall deliver to the Issuer, the Indenture Trustee and the Rating Agencies, promptly
after having obtained knowledge thereof, but in no event later than five (5) Business Days thereafter, written notice of any event
which, with the giving of notice or lapse of time, or both, would become a Servicer Default under Section 7.01.

 

Section 7.05        Cooperation
with Successor.  The Servicer covenants and agrees with the Issuer that it will, on an ongoing basis, cooperate with
the successor Servicer and provide whatever information is, and take whatever actions are, reasonably necessary to assist the
successor Servicer in performing its obligations hereunder.

 

ARTICLE
VIII

MISCELLANEOUS PROVISIONS

 

Section 8.01        Amendment.

 

(a)               This
Servicing Agreement may be amended in writing by the Servicer and the Issuer with the prior written consent of the Indenture Trustee
and the satisfaction of the Rating Agency Condition; provided, that any such amendment may not adversely affect the interest of
any Holder in any material respect without the consent of the Holders of not less than a majority of the Outstanding Amount of
the Environmental Trust Bonds. Promptly after the execution of any such amendment or consent, the Issuer shall furnish copies
of such amendment or consent to each of the Rating Agencies.

 

In addition, this Servicing
Agreement may be amended in writing by the Servicer and the Issuer with ten Business Days’ prior written notice given to
the Rating Agencies and the prior written consent of the Indenture Trustee (which consent shall be given in reliance on an Opinion
of Counsel and an Officer’s Certificate stating that such amendment is permitted or authorized under and adopted in accordance
with the provisions of this Servicing Agreement and that all conditions precedent have been satisfied, upon which the Indenture
Trustee may conclusively rely), but without the consent of any of the Holders, (i) to cure any ambiguity, to correct or supplement
any provisions in this Servicing Agreement or for the purpose of adding any provisions to or changing in any manner or eliminating
any of the provisions in this Servicing Agreement or of modifying in any manner the rights of the Holders; provided, however, that
such action shall not, as evidenced by an Officer’s Certificate delivered to the Issuer and the Indenture Trustee, adversely
affect in any material respect the interests of any Holder or (ii) to conform the provisions hereof to the description of this
Servicing Agreement in the Prospectus. Promptly after the execution of any such amendment or consent, the Issuer shall furnish
copies of such amendment or consent to each of the Rating Agencies.

 

Notwithstanding the
foregoing, in no event shall this Servicing Agreement be amended without the approval of the PSCW if (1) such approval is required
pursuant to Wis. Stat. § 196.52, or (2) such amendment would increase the ongoing Financing Costs of the Issuer.

 

Prior to the
execution of any amendment to this Servicing Agreement, the Issuer and the Indenture Trustee shall be entitled to receive and
conclusively rely upon an Opinion of Counsel of external counsel stating that such amendment is authorized or permitted by
this Servicing Agreement and that all conditions precedent have been satisfied and upon the Opinion of Counsel from external
counsel referred to in Section 3.01(c)(i).  The Issuer and the Indenture Trustee may, but shall not be obligated
to, enter into any such amendment which affects their own rights, duties, indemnities or immunities under this Servicing
Agreement or otherwise.

 

    24

     

    

 

(b)       It
shall not be necessary for the consent of Holders pursuant to this Article to approve the particular form of any proposed amendment
or consent, but it shall be sufficient if such consent shall approve the substance thereof.

 

(c)       Any
Opinion of Counsel may be based, insofar as it relates to factual matters (including financial and capital markets), upon a certificate
or opinion of, or representations by, an officer or officers of the Servicer or the Issuer and other documents necessary and advisable
in the judgment of counsel delivering such opinion.

 

Section 8.02       
Maintenance of Accounts and Records.

 

(a)               The
Servicer shall maintain accounts and records as to the Environmental Control Property accurately and in accordance with its standard
accounting procedures and in sufficient detail to permit reconciliation between EC Charge Collections received by the Servicer
and the Estimated EC Charge Collections from time to time deposited in the Collection Account.

 

(b)              The
Servicer shall permit the Indenture Trustee and its agents at any time during normal business hours, upon reasonable notice to
the Servicer and to the extent it does not unreasonably interfere with the Servicer’s normal operations, to inspect, audit
and make copies of and abstracts from the Servicer’s records regarding the Environmental Control Property and the Environmental
Control Charges.  Nothing in this Section 8.02(b) shall affect the obligation of the Servicer to observe any applicable
law (including any PSCW Regulation) prohibiting disclosure of information regarding Customers, and the failure of the Servicer
to provide access to such information as a result of such obligation shall not constitute a breach of this Section 8.02(b).

 

Section 8.03        Notices.
Unless otherwise specifically provided herein, any notice, report or other communication given hereunder shall be in writing and
shall be effective (i) upon receipt when sent through the mails, registered or certified mail, return receipt requested, postage
prepaid, with such receipt to be effective the date of delivery indicated on the return receipt, (ii) upon receipt when sent by
an overnight courier, (iii) on the date personally delivered to an authorized officer of the party to which sent or (iv) on the
date transmitted by facsimile or other electronic transmission (including email) with a confirmation of receipt in all cases,
addressed as follows:

 

(a)               in
the case of the Servicer, to Wisconsin Electric Power Company, at 231 West Michigan Street, Milwaukee, Wisconsin 53201, Attention:
Anthony L. Reese, Vice President and Treasurer, Telephone: (414) 221-2345, Email anthony.reese@wecenergygroup.com;

 

(b)              in
the case of the Issuer, to WEPCo Environmental Trust Finance I, LLC, at at 231 West Michigan Street, Milwaukee, Wisconsin 53201,
Attention: Anthony L. Reese, Vice President and Treasurer, Telephone: (414) 221-2579, Email: anthony.reese@wecenergygroup.com;

 

    25

     

    

 

 

(c)              
 in the case of the Indenture Trustee, to the Corporate Trust Office;

 

(d)              
in the case of Fitch, to Fitch Ratings, Inc., 33 Whitehall Street, New York, New York 10004, Attention: ABS Surveillance,
Telephone: (212) 908-0500, Facsimile: (212) 908-0355, Email [•];

 

(e)              
in the case of Moody’s, to Moody’s Investor Services, Inc., ABS/RMBS Monitoring Department, 25th
Floor, 7 World Trade Center, 250 Greenwich Street, New York, New York, Email: servicereports@moodys.com; and

 

(f)               
in the case of S&P, to S&P Global Ratings, a division of S&P Global Inc., Structured Credit Surveillance, 55
Water Street, New York, New York 10041, Telephone: (212) 438-8991, Email: servicer_reports@spglobal.com (all such notices to be
delivered to S&P in writing by email).

 

Each Person listed above may, by notice
given in accordance herewith to the other Person or Persons listed above, designate any further or different address to which subsequent
notices, reports and other communications shall be sent.

 

Section 8.04        Assignment.
Notwithstanding anything to the contrary contained herein, except as provided in Section 6.03 and as provided in the
provisions of this Servicing Agreement concerning the resignation of the Servicer, this Servicing Agreement may not be
assigned by the Servicer. 

 

Section 8.05       
Limitations on Rights of Others. The provisions of this Servicing Agreement are solely for the benefit of the
Servicer and the Issuer and, to the extent provided herein or in the other Basic Documents, the Indenture Trustee and the Holders,
and the other Persons expressly referred to herein, and such Persons shall have the right to enforce the relevant provisions of
this Servicing Agreement.  Nothing in this Servicing Agreement, whether express or implied, shall be construed to give to
any other Person any legal or equitable right, remedy or claim in the Environmental Control Property or Environmental Trust Bond
Collateral or under or in respect of this Servicing Agreement or any covenants, conditions or provisions contained herein. 

 

Section 8.06       
Severability. Any provision of this Servicing Agreement that is prohibited or unenforceable in any jurisdiction
shall, as to such jurisdiction, be ineffective to the extent of such prohibition or unenforceability without invalidating the remainder
of such provision (if any) or the remaining provisions hereof (unless such a construction shall be unreasonable), and any such
prohibition or unenforceability in any jurisdiction shall not invalidate or render unenforceable such provision in any other jurisdiction.

 

Section 8.07        Separate
Counterparts. This Servicing Agreement may be executed by the parties hereto in separate counterparts, each of which when
so executed and delivered shall be an original, but all such counterparts shall together constitute but one and the same
instrument.

 

Section 8.08       
Headings. The headings of the various Articles and Sections herein are for convenience of reference only and shall
not define or limit any of the terms or provisions hereof.

 

Section 8.09       GOVERNING
LAW. This Servicing Agreement shall
be governed by and construed in accordance with the laws of the State of Wisconsin, without reference to its conflict of law provisions,
and the obligations, rights and remedies of the parties hereunder shall be determined in accordance with such laws.

 

    26 

     

    

 

Section 8.10       
Assignment to Indenture Trustee.  The Servicer hereby acknowledges and consents to any mortgage, pledge, assignment
and grant of a security interest by the Issuer to the Indenture Trustee for the benefit of the Secured Parties pursuant to the
Indenture of any or all of the Issuer’s rights hereunder and (b) in no event shall the Indenture Trustee have any liability
for the representations, warranties, covenants, agreements or other obligations of the Issuer hereunder or in any of the certificates
delivered pursuant hereto, as to all of which any recourse shall be had solely to the assets of the Issuer subject to the availability
of funds therefor under Section 8.02 of the Indenture.

 

Section 8.11       
Nonpetition Covenants.  Notwithstanding any prior termination of this Servicing Agreement or the Indenture,
the Servicer shall not, prior to the date which is one year and one day after the satisfaction and discharge of the Indenture,
acquiesce, petition or otherwise invoke or cause the Issuer to invoke or join with any Person in provoking the process of any Governmental
Authority for the purpose of commencing or sustaining an involuntary case against the Issuer under any U.S. federal or state bankruptcy,
insolvency or similar law or appointing a receiver, liquidator, assignee, trustee, custodian, sequestrator or other similar official
of the Issuer for any substantial part of the property of the Issuer or ordering the dissolution, winding up or liquidation of
the affairs of the Issuer.

 

Section 8.12       Limitation
of Liability.  It is expressly understood and agreed by the parties hereto that this Servicing Agreement is executed
and delivered by the Indenture Trustee, not individually or personally but solely as Indenture Trustee in the exercise of the
powers and authority conferred and vested in it, and that the Indenture Trustee, in acting hereunder, is entitled to all rights,
benefits, protections, immunities and indemnities accorded to it under the Indenture.

 

Section 8.13       Rule
17g-5 Compliance.  The Servicer agrees that any notice, report, request for satisfaction of the Rating Agency Condition,
document or other information provided by the Servicer to any Rating Agency under this Servicing Agreement or any other Basic
Document to which it is a party for the purpose of determining the initial credit rating of the Environmental Trust Bonds or undertaking
credit rating surveillance of the Environmental Trust Bonds with any Rating Agency, or to satisfy the Rating Agency Condition,
shall be substantially concurrently posted by the Servicer on the 17g-5 Website.

 

{SIGNATURE PAGE FOLLOWS}

 

    27 

     

    

 

 

IN WITNESS WHEREOF,
the parties hereto have caused this Servicing Agreement to be duly executed by their respective officers as of the day and year
first above written.

 

	 	WEPCO ENVIRONMENTAL TRUST FINANCE I, LLC,
	 	as Issuer
	 	 
	 	By:	 
	 	 	Name:
	 	 	Title:
	 	 	 
	 	WISCONSIN ELECTRIC POWER COMPANY,
		as Servicer
	 	 
	 	By:	 
	 	 	Name:
	 	 	Title:

 

	ACKNOWLEDGED AND ACCEPTED:	 
	 	 
	U.S. BANK, NATIONAL ASSOCIATION, as Indenture Trustee	 
	 	 
	By:	 	 

 

Signature Page to Environmental Control Property Servicing
Agreement

 

     

     

    

 

EXHIBIT A

 

FORM OF MONTHLY SERVICER’S CERTIFICATE

 

See Attached

 

    E-A-1

     

    

 

MONTHLY SERVICER’S CERTIFICATE

 

WEPCO ENVIRONMENTAL TRUST FINANCE I,
LLC

 

$[________] Environmental Trust Bonds, Series 2021

 

Pursuant to Section 3.01(b) of
the Environmental Control Property Servicing Agreement dated as of [_________], 2021 by and between Wisconsin Electric Power
Company, as Servicer, and WEPCo Environmental Trust Finance I, LLC, as Issuer (the “Servicing Agreement”),
the Servicer does hereby certify as follows:

 

For the Monthly Period:
[MONTH, YEAR]

 

[TABLE]

 

Capitalized terms used
but not defined in this Monthly Servicer’s Certificate have their respective meanings as set forth in the Servicing Agreement. 
References herein to certain sections and subsections are references to the respective sections or subsections of the Servicing
Agreement.

 

Executed as of this {        }
day of {                    }
20{    }.

 

	 	WISCONSIN ELECTRIC POWER COMPANY,
	 	as Servicer
	 	 
	 	 
	 	By:	 
	 	 	Name:
	 	 	Title:

 

CC:         WEPCo Environmental
Trust Finance I, LLC

 

    E-A-2

     

    

 

EXHIBIT B

 

FORM OF SEMI-ANNUAL SERVICER’S
CERTIFICATE

 

See attached

 

    E-B-1

     

    

 

SEMI-ANNUAL SERVICER’S CERTIFICATE

 

Pursuant to Section 4.01(c)(ii) of
the Environmental Control Property Servicing Agreement, dated as of [___________], 2021 (the “Servicing Agreement”),
by and between WISCONSIN ELECTRIC POWER COMPANY, as servicer (the “Servicer”), and WEPCO ENVIRONMENTAL
TRUST FINANCE I, LLC, the Servicer does hereby certify, for the {                    },
20{    } Payment Date (the “Current Payment Date”), as follows:

 

Billing Periods: {                    }
to {                    }

 

Payment Date: {                    },
20{    }

 

1.            
Collections Allocable and Aggregate Amounts Available for the Current Payment Date:

 

	i.	Remittances for the {                    } Billing Period	 	$	 	{                    	}
	ii.	Remittances for the {                    } Billing Period	 	$	 	{                   	}
	iii.	Remittances for the {                    } Billing Period	 	$	 	{                    	}
	iv.	Remittances for the {                    } Billing Period	 	$	 	{                    	}
	v.	Remittances for the {                    } Billing Period	 	$	 	{                    	}
	vi.	Remittances for the {                    } Billing Period	 	$	 	{                    	}
	vii.	Investment Earnings on Capital Subaccount	 	$	 	{                    	}
	viii.	Investment Earnings on Excess Funds Subaccount	 	$	 	{                   	}
	ix.	Investment Earnings on General Subaccount	 	$	 	{                   	}
	x.	General Subaccount Balance (sum of i through ix above)	 	$	 	{                    	}
	xi.	Excess Funds Subaccount Balance as of prior Payment Date	 	$	 	{                   	}
	xii.	Capital Subaccount Balance as of prior Payment Date	 	$	 	{                    	}
	xiii.	Collection Account Balance (sum of xi through xii above)	 	$	 	{                    	}

 

2.            
Outstanding Amounts of as of prior Payment Date:

 

	Aggregate Outstanding Amount of all Evironmental Trust Bonds	 	$	 	{                    	 	}	 

 

    E-B-2

     

    

 

 

3.            
Required Funding/Payments as of Current Payment Date: 

 

	Principal	 	 	Principal Due	 
	Environmental Trust
    Bonds	 	 $	{                    	}

 

	   Interest	 	 

 

	 	 	 	Interest Rate	 	 	 	Days in Interest Period(1)	 	 	 	Principal Balance	 	 	 	Interest Due	 
	Environmental
    Trust Bonds	 	 	{    
                                         	}%	 	 	{         
                                         	 }	 	 $	{                  	} 	 	 $	{              	}

 

	 	 	 	Required Level	 	 	 	Funding Required	 
	xiii.         
    Capital Subaccount	 	 $	{                    
                                         	 }	 	 $	{                  	}

 

4.            
Allocation of Remittances as of Current Payment Date Pursuant to 8.02(e) of Indenture:

 

	i.
    Trustee Fees and Expenses; Indemnity Amounts	 	 $	{                    
                                         	}
	ii.
    Servicing Fee	 	 $	{                    
                                         	}
	iii.
    Administration Fee	 	 $	{                    
                                         	}
	iv.
    Operating Expenses	 	 $	{                    	}

 

	Environmental
    Trust Bonds	 	 	Aggregate	 	 	 	Per $1,000 of Original Principal

                                         Amount	 
	v.
    Semi-Annual Interest (including any past-due for prior periods)	 	 	 	 	 	 $		 
	    Interest
    Payment	 	 $	{                    
                                         	}	 	 $	{                  
                                         	}
	 	 	 	 	 	 	 	 	 
	vi.
    Principal Due and Payable as a Result of an Event of Default or on Final Maturity Date	 	 	 	 	 	 	 	 
	     Principal
    Payment	 	 $	{                    
                                         	}	 	 $	{                  
                                         	}
	 	 	 	 	 	 	 	 	 
	vii.
    Semi-Annual Principal	 	 	 	 	 	 	 	 
	     Principal
    Payment	 	 $	{                    	}	 	 $	{                  
                                         	}

 

(1)On 30/360 day basis for initial payment date; otherwise
use one-half of annual rate.

 

	viii.
    Other unpaid Operating Expenses	 	 $	{                    	}
	ix.
    Funding of Capital Subaccount (to required level)	 	 $	{                    
                                         	}
	x.
    Capital Subaccount Return to Wisconsin Electric	 	 $	{                    
                                         	}
	xi.
    Deposit to Excess Funds Subaccount	 	 $	{                    
                                         	}
	xii.
    Released to Issuer upon Retirement of all Environmental Trust Bonds	 	 $	{                    
                                         	}
	xiii.
    Aggregate Remittances as of Current Payment Date	 	 $	{                    
                                         	}

 

5.            
Outstanding Amount and Collection Account Balance as of Current Payment Date (after giving effect to payments to be made on such
Payment Date):

 

	i.
    Aggregate Outstanding Amount of all Environmental Trust Bonds	 	$	{                    	}
	ii. Excess Funds Subaccount
    Balance	 	$	{                    	}
	iii.
    Capital Subaccount Balance	 	$	{                    	}
	iv.
    Aggregate Collection Account Balance	 	$	{                   	}

 

    E-B-3 

     

    

 

6.            
Subaccount Withdrawals as of Current Payment Date (if applicable, pursuant to Section 8.02(e) of Indenture):

 

	i.
    Excess Funds Subaccount	 	$	{                    	}
	ii.
    Capital Subaccount	 	$	{                    	}
	iii.Total Withdrawals	 	$	{                    	}

 

7.            
Shortfalls in Interest and Principal Payments as of Current Payment Date:

 

	i.
    Semi-annual Interest	 	 	 	 
	Interest
    Payment	 	$	{                    	}
	 	 	 	 	 
	ii.
    Semi-annual Principal	 	 	 	 
	Principal
    Payment	 	$	{                    	}

 

    E-B-4 

     

    

 

8.            
Shortfalls in Payment of Return on Invested Capital as of Current Payment Date:

 

	i. Return
    on Invested Capital	 	$	{                   	}

 

9.            
Shortfalls in Required Subaccount Levels as of Current Payment Date:

 

	i. Capital
    Subaccount	 	 $	{                  	}

 

Capitalized terms used
but not defined herein have their respective meanings as set forth in the Servicing Agreement.  References herein to certain
sections and subsections are references to the respective sections of the Servicing Agreement or the Indenture, as the context
indicates.

 

IN WITNESS WHEREOF, the undersigned has
duly executed and delivered this Semi-Annual Servicer’s Certificate this {        }
day of {                    },
20{    }.

 

	 	WISCONSIN ELECTRIC POWER COMPANY,
	 	as Servicer
	 	 
	 	By:	 
	 	 	Name:
	 	 	Title:

 

    E-B-5 

     

    

 

EXHIBIT C

 

FORM OF REGULATION AB SERVICER CERTIFICATE

 

See attached

 

    E-C-1 

     

    

 

SERVICER CERTIFICATE

 

The undersigned hereby
certifies that the undersigned is the duly elected and acting {               }
of WISCONSIN ELECTRIC POWER COMPANY, as servicer (the “Servicer”) under the Environmental Control Property
Servicing Agreement dated as of [________], 2021 (the “Servicing Agreement”) by and between the Servicer and
WEPCO ENVIRONMENTAL TRUST FINANCE I, LLC, and further certifies that:

 

1.       The
undersigned is responsible for assessing the Servicer’s compliance with the servicing criteria set forth in Item 1122(d) of
Regulation AB (the “Servicing Criteria”).

 

2.       With
respect to each of the Servicing Criteria, the undersigned has made the following assessment of the Servicing Criteria in accordance
with Item 1122(d) of Regulation AB, with such discussion regarding the performance of such Servicing Criteria during the fiscal
year covered by the Sponsor’s annual report on Form 10-K:

 

 

	Regulation AB

Reference	 	Servicing Criteria	 	Assessment
	General Servicing Considerations
	1122(d)(1)(i)	 	Policies and procedures are instituted to monitor any performance or other triggers and events of default in accordance with the transaction agreements.	 	Applicable; assessment below.
	1122(d)(1)(ii)	 	If any material servicing activities are outsourced to third parties, policies and procedures are instituted to monitor the third party’s performance and compliance with such servicing activities.	 	Not applicable; no servicing activities were outsourced.
	1122(d)(1)(iii)	 	Any requirements in the transaction agreements to maintain a back-up servicer for pool assets are maintained.	 	Not applicable; transaction agreements do not provide for a back-up servicer.
	1122(d)(1)(iv)	 	A fidelity bond and errors and omissions policy is in effect on the party participating in the servicing function throughout the reporting period in the amount of coverage required by and otherwise in accordance with the terms of the transaction agreements.	 	Not applicable; transaction agreements do not require a fidelity bond or errors and omissions policy.
	1122(d)(1)(v)	 	Aggregation of information, as applicable, is mathematically accurate and the information conveyed accurately reflects the information.	 	Applicable
	Cash Collection and Administration
	1122(d)(2)(i)	 	Payments on pool assets are deposited into the appropriate custodial bank accounts and related bank clearing accounts no more than two business days following receipt, or such other number of days specified in the transaction agreements.	 	Applicable.
	1122(d)(2)(ii)	 	Disbursements made via wire transfer on behalf of an obligor or to an investor are made only by authorized personnel.	 	Applicable.

 

    E-C-2 

     

    

 

	Regulation AB

Reference	 	Servicing Criteria	 	Assessment
	1122(d)(2)(iii)	 	Advances of funds or guarantees regarding collections, cash flows or distributions, and any interest or other fees charged for such advances, are made, reviewed and approved as specified in the transaction agreements.	 	Applicable; no advances by the Servicer are permitted under the transaction agreements, except for payments of certain indemnities.
	1122(d)(2)(iv)	 	The related accounts for the transaction, such as cash reserve accounts or accounts established as a form of overcollateralization, are separately maintained (e.g., with respect to commingling of cash) as set forth in the transaction agreements.	 	Applicable, but no current assessment is required since the related accounts are maintained by the Indenture Trustee.
	1122(d)(2)(v)	 	Each custodial account is maintained at a federally insured depository institution as set forth in the transaction agreements. For purposes of this criterion, “federally insured depository institution” with respect to a foreign financial institution means a foreign financial institution that meets the requirements of Rule 13k-1(b)(1) under the Exchange Act.	 	Applicable, but no current assessment required; all “custodial accounts” are maintained by the Indenture Trustee.
	1122(d)(2)(vi)	 	Unissued checks are safeguarded so as to prevent unauthorized access.	 	Not applicable; all payments made by wire transfer.
	1122(d)(2)(vii)	 	Reconciliations are prepared on a monthly basis for all asset-backed securities related bank accounts, including custodial accounts and related bank clearing accounts. These reconciliations are: (A) mathematically accurate; (B) prepared within 30 calendar days after the bank statement cutoff date, or such other number of days specified in the transaction agreements; (C) reviewed and approved by someone other than the person who prepared the reconciliation; and (D) contain explanations for reconciling items. These reconciling items are resolved within 90 calendar days of their original identification, or such other number of days specified in the transaction agreements.	 	Applicable; assessment below.
	Investor Remittances and Reporting
	1122(d)(3)(i)	 	Reports to investors, including those to be filed with the SEC, are maintained in accordance with the transaction agreements and applicable SEC requirements. Specifically, such reports: (A) are prepared in accordance with timeframes and other terms set forth in the transaction agreements; (B) provide information calculated in accordance with the terms specified in the transaction agreements; (C) are filed with the SEC as required by its rules and regulations; and (D) agree with investors’ or the trustee’s records as to the total unpaid principal balance and number of pool assets serviced by the servicer.	 	Applicable; assessment below.

 

    E-C-3 

     

    

 

	Regulation AB

Reference	 	Servicing Criteria	 	Assessment
	1122(d)(3)(ii)	 	Amounts due to investors are allocated and remitted in accordance with timeframes, distribution priority and other terms set forth in the transaction agreements.	 	Not applicable; investor records maintained by the Indenture Trustee.
	1122(d)(3)(iii)	 	Disbursements made to an investor are posted within two business days to the servicer’s investor records, or such other number of days specified in the transaction agreements.	 	Applicable.
	1122(d)(3)(iv)	 	Amounts remitted to investors per the investor reports agree with cancelled checks, or other form of payment, or custodial bank statements.	 	Applicable; assessment below.
	Pool Asset Administration
	1122(d)(4)(i)	 	Collateral or security on pool assets is maintained as required by the transaction agreements or related pool asset documents.	 	Applicable; assessment below.
	1122(d)(4)(ii)	 	Pool assets and related documents are safeguarded as required by the transaction agreements.	 	Applicable; assessment below.
	1122(d)(4)(iii)	 	Any additions, removals or substitutions to the asset pool are made, reviewed and approved in accordance with any conditions or requirements in the transaction agreements.	 	Not applicable; no removals or substitutions of Environmental Control Property are contemplated or allowed under the transaction documents.
	1122(d)(4)(iv)	 	Payments on pool assets, including any payoffs, made in accordance with the related pool asset documents are posted to the servicer’s obligor records maintained no more than two business days after receipt, or such other number of days specified in the transaction agreements, and allocated to principal, interest or other items (e.g., escrow) in accordance with the related pool asset agreements.	 	Applicable; assessment below.
	1122(d)(4)(v)	 	The servicer’s records regarding the pool assets agree with the servicer’s records with respect to an obligor’s unpaid principal balance.	 	Not applicable; because underlying obligation (Environmental Control Charge) is not an interest-bearing instrument.
	1122(d)(4)(vi)	 	Changes with respect to the terms or status of an obligor’s pool assets (e.g., loan modifications or re-agings) are made, reviewed and approved by authorized personnel in accordance with the transaction agreements and related pool asset documents.	 	Applicable; assessment below.
	1122(d)(4)(vii)	 	Loss mitigation or recovery actions (e.g., forbearance plans, modifications and deeds in lieu of foreclosure, foreclosures and repossessions, as applicable) are initiated, conducted and concluded in accordance with the timeframes or other requirements established by the transaction agreements.	 	Applicable; limited assessment below. Servicer actions governed by PSCW regulations.

 

    E-C-4 

     

    

 

	Regulation AB

Reference	 	Servicing Criteria	 	Assessment
	1122(d)(4)(viii)	 	Records documenting collection efforts are maintained during the period a pool asset is delinquent in accordance with the transaction agreements. Such records are maintained on at least a monthly basis, or such other period specified in the transaction agreements, and describe the entity’s activities in monitoring delinquent pool assets, including, for example, phone calls, letters and payment rescheduling plans in cases where delinquency is deemed temporary (e.g., illness or unemployment).	 	Applicable, but does not require assessment since no explicit documentation requirement with respect to delinquent accounts are imposed under the transaction agreements due to availability of “true-up” mechanism; and any such documentation is maintained in accordance with applicable PSCW rules and regulations.
	1122(d)(4)(ix)	 	Adjustments to interest rates or rates of return for pool assets with variable rates are computed based on the related pool asset documents.	 	Not applicable; Environmental Control Charges are not interest-bearing instruments.
	1122(d)(4)(x)	 	Regarding any funds held in trust for an obligor (such as escrow accounts): (A) such funds are analyzed, in accordance with the obligor’s pool asset documents, on at least an annual basis, or such other period specified in the transaction agreements; (B) interest on such funds is paid, or credited, to obligors in accordance with applicable pool asset documents and state laws; and (C) such funds are returned to the obligor within 30 calendar days of full repayment of the related pool assets, or such other number of days specified in the transaction agreements.	 	Not applicable.
	1122(d)(4)(xi)	 	Payments made on behalf of an obligor (such as tax or insurance payments) are made on or before the related penalty or expiration dates, as indicated on the appropriate bills or notices for such payments, provided that such support has been received by the servicer at least 30 calendar days prior to these dates, or such other number of days specified in the transaction agreements.	 	Not applicable; Servicer does not make payments on behalf of obligors.
	1122(d)(4)(xii)	 	Any late payment penalties in connection with any payment to be made on behalf of an obligor are paid from the servicer’s funds and not charged to the obligor, unless the late payment was due to the obligor’s error or omission.	 	Not applicable; Servicer cannot make advances of its own funds on behalf of customers under the transaction agreements.
	1122(d)(4)(xiii)	 	Disbursements made on behalf of an obligor are posted within two business days to the obligor’s records maintained by the servicer, or such other number of days specified in the transaction agreements.	 	Not applicable; Servicer cannot make advances of its own funds on behalf of customers to pay principal or interest on the bonds.

 

    E-C-5 

     

    

 

	Regulation AB

Reference	 	Servicing Criteria	 	Assessment
	1122(d)(4)(xiv)	 	Delinquencies, charge-offs and uncollectible accounts are recognized and recorded in accordance with the transaction agreements.	 	Applicable; assessment below.
	1122(d)(4)(xv)	 	Any external enhancement or other support, identified in Item 1114(a)(1) through (3) or Item 1115 of Regulation AB, is maintained as set forth in the transaction agreements.	 	Not applicable; no external enhancement is required under the transaction agreements.

 

 

3.       To
the best of the undersigned’s knowledge, based on such review, the Servicer is in compliance in all material respects with
the applicable servicing criteria set forth above as of and for the period ended the end of the fiscal year covered by the Issuer’s
annual report on Form 10-K.  {If not true, include description of any material instance of noncompliance.}

 

4.       [                    ],
an independent registered public accounting firm, has issued an attestation report on the Servicer’s assessment of compliance
with the applicable servicing criteria as of and for the period ended the end of the fiscal year covered by the Issuer’s
annual report on Form 10-K.

 

Capitalized terms used
but not defined herein have their respective meanings as set forth in the Servicing Agreement.

 

Executed as of this
{         } day of {                   },
20{    }.

 

 

 

	 	WISCONSIN ELECTRIC POWER COMPANY,
	 	as Servicer
	 	 
	 	By:	 
	 	 	Name:
	 	 	Title:

 

    E-C-6 

     

    

 

 

EXHIBIT D

 

FORM OF CERTIFICATE OF COMPLIANCE

 

See attached

 

    E-D-1

     

    

 

CERTIFICATE OF COMPLIANCE

 

The undersigned hereby
certifies that the undersigned is the duly elected and acting {          } of
WISCONSIN ELECTRIC POWER COMPANY, as servicer (the “Servicer”) under the Environmental Control Property
Servicing Agreement dated as of [__________], 2021 (the “Servicing Agreement”) by and between the Servicer and
WEPCO ENVIRONMENTAL TRUST FINANCE I, LLC, and further certifies that:

 

1.       A
review of the activities of the Servicer and of its performance under the Servicing Agreement during the twelve months ended {          },
20{  } has been made under the supervision of the undersigned pursuant to Section 3.03 of the Servicing Agreement.

 

2.       To
the undersigned’s knowledge, based on such review, the Servicer has fulfilled all of its obligations in all material respects
under the Servicing Agreement throughout the twelve months ended {          },
20{  }, except as set forth on EXHIBIT A hereto.

 

Executed as of this
{    } day of {          }, 20{  }.

 

	 	WISCONSIN ELECTRIC POWER COMPANY,
	 	as Servicer
	 	 
	 	 
	 	By:	 
	 	 	Name:
	 	 	Title:

 

    E-D-2

     

    

 

EXHIBIT A

TO

CERTIFICATE OF COMPLIANCE

 

LIST OF SERVICER DEFAULTS

 

The following Servicer
Defaults, or events that with the giving of notice, the lapse of time, or both, would become Servicer Defaults, known to the undersigned
occurred during the twelve months ended {          }, 20{  }:

 

 

	Nature of Default	 	Status
	{          }	 	{          }

 

    E-D-3

     

    

 

EXHIBIT E

 

EXPECTED AMORTIZATION SCHEDULE

 

See Attached

 

    E-E-1

     

    

 

EXPECTED AMORTIZATION SCHEDULE

 

Outstanding Principal Balance

 

	Semi-Annual

Payment Date	 	 	 	 	 	 	 	 	 	Outstanding Principal

Balance	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 

 

    E-E-2

     

    

 

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 

 

    E-E-3

     

    

 

ANNEX I

 

SERVICING PROCEDURES

 

The Servicer agrees to comply with the
following servicing procedures:

 

SECTION 1.      Definitions.

 

(a)      Capitalized
terms used herein and not otherwise defined herein shall have the meanings ascribed to such terms in the Environmental Control
Property Servicing Agreement (the “Agreement”).

 

(b)       Whenever
used in this Annex I, the following words and phrases shall have the following meanings:

 

“Billed EC Charges”
means the amounts billed by the Servicer to Customers in respect of the Environmental Control Charges.

 

“Servicer Policies
and Practices” means, with respect to the Servicer’s duties under this Annex I, the policies and practices
of the Servicer applicable to such duties that the Servicer follows with respect to comparable assets that it services for itself
and, if applicable, others, as in effect from time to time in accordance with PSCW Regulations.

 

SECTION 2.      Data Acquisition.

 

(a)              
Installation and Maintenance of Meters.  The Servicer shall cause to be installed, replaced and maintained meters
in accordance with the Servicer Policies and Practices.

 

(b)              
Meter Reading.  In accordance with the Servicer Policies and Practices, the Servicer shall obtain usage measurements
for each Customer; provided, however, that the Servicer may estimate any Customer’s usage determined in accordance with applicable
PSCW Regulations.

 

(c)              Cost
of Metering.  The Issuer shall not be obligated to pay any costs associated with the metering duties set forth in this
Section 2, including the costs of installing, replacing and maintaining meters, nor shall the Issuer be entitled to any credit
against the Servicing Fee for any cost savings realized by the Servicer as a result of new metering and/or billing technologies.

 

SECTION 3.      Usage and Bill Calculation.

 

The Servicer (a) shall obtain a calculation
of each Customer’s usage (which may be based on data obtained from such Customer’s meter read or on usage estimates
determined in accordance with PSCW Regulations) in accordance with the Servicer Policies and Practices and (b) shall determine
therefrom Billed EC Charges.

 

    ANNEX I-1

     

    

 

SECTION 4.      Billing.

 

(a)               Commencement of Billing.  The Servicer shall implement the Environmental Control Charges as provided in the
Financing Order and shall thereafter bill each Customer for each Customer’s Billed EC Charges in accordance with the provisions
of this Section 4.

 

(b)                Frequency
of Bills; Billing Practices.  In accordance with the Servicer Policies and Practices, the Servicer shall generate and
issue a Bill to each Customer. In the event that the Servicer makes any material modification to the Servicer Policies and Practices,
it shall notify the Issuer, the Indenture Trustee and the Rating Agencies as soon as practicable, and in no event later than
60 Servicer Business Days after such modification goes into effect, but the Servicer may not make any modification that will materially
adversely affect the Holders.

 

(c)              
Format.

 

(i)                The
Servicer shall present the Environmental Control Charges as a separate line item on Bills delivered to Customers.

 

(ii)             The
Servicer shall conform to such requirements in respect of the format, structure and text of Bills delivered to Customers as PSCW
Regulations shall from time to time prescribe. To the extent that Bill format, structure and text are not prescribed by applicable
law or by PSCW Regulations, the Servicer shall, subject to clause (i) of this subsection (c), determine the format, structure
and text of all Bills in accordance with its reasonable business judgment, the Servicer Policies and Practices and historical
practice.

 

(d)              
Delivery.  Except as provided in the next sentence, the Servicer shall deliver all Bills to Customers (i) by
United States mail in such class or classes as are consistent with the Servicer Policies and Practices or (ii) by any other means,
whether electronic or otherwise, that the Servicer may from time to time use in accordance with the Servicer Policies and Practices.
The Servicer shall pay from its own funds all costs of issuance and delivery of all Bills that it renders, including printing and
postage costs as the same may increase or decrease from time to time.

 

SECTION 5.      Customer Service Functions.

 

The Servicer shall handle all Customer
inquiries and other Customer service matters according to the Servicer Policies and Practices.

 

SECTION 6.      Collections; Payment Processing;
Remittance.

 

(e)              
Collection Efforts, Policies, Procedures.

 

(i)                The
Servicer shall collect Billed EC Charges for the Environmental Trust Bonds (including late charges in respect of Environmental
Control Charges) from Customers as and when the same become due in accordance with such collection procedures as it follows with
respect to comparable assets that it services for itself or others including, in accordance with PSCW Regulations and the Servicer
Policies and Practices, that:

 

    ANNEX I-2

     

    

 

(A)             The Servicer shall prepare and deliver overdue notices to Customers in accordance with applicable PSCW Regulations and
the Servicer Policies and Practices.

 

(B)            The
Servicer shall deliver past-due and shut-off notices in accordance with applicable PSCW Regulations and the Servicer Policies
and Practices.

 

(C)              The
Servicer may employ the assistance of collection agents in accordance with applicable PSCW Regulations and the Servicer Policies
and Practices.

 

(D)              The
Servicer shall apply Customer deposits to the payment of delinquent accounts in accordance with applicable PSCW Regulations and
these Servicing Procedures.

 

(ii)             The
Servicer shall not waive any late payment charge or any other fee or charge relating to delinquent payments, if any, or waive,
vary or modify any terms of payment of any amounts payable by a Customer, in each case unless such waiver or action: (A) would
be in accordance with the Servicer Policies and Practices and (B) would comply in all material respects with applicable law.

 

(iii)            The
Servicer shall accept payment from Customers in respect of Billed EC Charges in such forms and methods and at such times and places
in accordance with the Servicer Policies and Practices.

 

(f)               
Payment Processing; Allocation; Priority of Payments. 

 

(i)      The
Servicer shall post all payments received to Customer accounts as promptly as practicable, and, in any event, substantially all
payments shall be posted no later than two Servicer Business Days after receipt.

 

(ii)       The
Servicer shall allocate cash collections on a Customer-by-Customer basis. The first dollars collected shall be attributed to past
due balances (which include late fees), if any. Once those balances are paid in full, if cash collections are not sufficient to
pay a Customer’s current bill then the cash shall be prorated between the different components of the bill.

 

(g)              
Investment of EC Charge Collections Received.  Prior to each remittance of EC Charge Collections, the Servicer
may invest EC Charge Collections received at its own risk and for its own benefit, and such investments and funds shall not be
required to be segregated from the other investments and funds of the Servicer.

 

    ANNEX I-3

     

    

 

(h)               Calculation
of Daily Remittance Amount. The Servicer shall comply with the requirements of Section 6.11 of the Servicing Agreement.
For purposes of calculating the Daily Remittance Amount, (i) payments with respect to Billed EC Charges shall be deemed to
have been made the same number of days after billing as is equal to the Weighted Average Days Outstanding then in effect and
(ii) the Servicer will be deemed to have collected, on any Servicer Business Day, an amount equal to the product of (y) the
Billed EC Charges deemed pursuant to clause (i) to have been paid on such day and on any prior day that was not a Servicer
Business Day for which a remittance has not previously been made, multiplied by (z) one hundred percent less the system wide
charge-off percentage used by the Servicer to calculate the most recent Periodic Billing Requirement. Such product shall
constitute the amount of “Estimated EC Charge Collections” for such Servicer Business Day. In accordance with
Section 6.11 of the Servicing Agreement, the Estimated EC Charge Collections deemed to have been collected on any Servicer
Business Day will be remitted by the Servicer to the General Subaccount of the Collection Account no later than two Servicer
Business Days following such Servicer Business Day.

 

(i)                
No Advances.  The Servicer shall not be obligated to advance any of its own funds to the Issuer.

 

    ANNEX I-4Exhibit 10.2

 

ENVIRONMENTAL CONTROL PROPERTY PURCHASE
AND SALE AGREEMENT

 

by and between

 

WEPCO ENVIRONMENTAL TRUST FINANCE I,
LLC,

 

Issuer

 

and

 

WISCONSIN ELECTRIC POWER COMPANY,

 

Seller

 

 

 

Dated as of [________], 2021

 

 

 

     

     

    

 

TABLE OF CONTENTS

 

	ARTICLE I. DEFINITIONS AND RULES OF CONSTRUCTION	1
	SECTION 1.01.   Definitions and Rules of Construction	1
	ARTICLE II. TRANSFER OF ENVIRONMENTAL CONTROL PROPERTY	2
	SECTION 2.01.   Transfer of Environmental Control Property.	2
	SECTION 2.02.   Conditions to Transfer of Environmental Control Property	2
	ARTICLE III. REPRESENTATIONS AND WARRANTIES OF SELLER	4
	SECTION 3.01.   Organization and Good Standing	4
	SECTION 3.02.   Due Qualification	4
	SECTION 3.03.   Power and Authority	4
	SECTION 3.04.   Binding Obligation	4
	SECTION 3.05.   No Violation	5
	SECTION 3.06.   No Proceedings	5
	SECTION 3.07.   Approvals	5
	SECTION 3.08.   The Environmental Control Property.	5
	SECTION 3.09.   Limitations on Representations and Warranties	8
	ARTICLE IV. COVENANTS OF THE SELLER	9
	SECTION 4.01.   Existence	9
	SECTION 4.02.   No Liens	9
	SECTION 4.03.   Delivery of Collections	9
	SECTION 4.04.   Notice of Liens	10
	SECTION 4.05.   Compliance with Law	10
	SECTION 4.06.   Covenants Related to Environmental Trust Bonds and Environmental Control Property.	10
	SECTION 4.07.   Protection of Title	11
	SECTION 4.08.   Nonpetition Covenants	12
	SECTION 4.09.   Taxes	12
	SECTION 4.10.   Notice of Breach to Rating Agencies, Etc	12
	SECTION 4.11.   Use of Proceeds	12
	SECTION 4.12.   Further Assurances	13
	ARTICLE V. THE SELLER	13
	SECTION 5.01.   Liability of Seller; Indemnities.	13

 

     

     

    

 

	SECTION 5.02.   Merger, Conversion or Consolidation of, or Assumption of the Obligations of, Seller	15
	SECTION 5.03.   Limitation on Liability of Seller and Others	16
	ARTICLE VI. MISCELLANEOUS PROVISIONS	16
	SECTION 6.01.   Amendment.	16
	SECTION 6.02.   Notices	17
	SECTION 6.03.   Assignment	18
	SECTION 6.04.   Limitations on Rights of Third Parties	18
	SECTION 6.05.   Severability	18
	SECTION 6.06.   Separate Counterparts	18
	SECTION 6.07.   Headings	18
	SECTION 6.08.   Governing Law	18
	SECTION 6.09.   Assignment to Indenture Trustee	18
	SECTION 6.10.   Limitation of Liability	18
	SECTION 6.11.   Waivers	19

 

EXHIBIT

 

		Exhibit A	Form of Bill of Sale

 

     

     

    

 

This ENVIRONMENTAL CONTROL PROPERTY PURCHASE
AND SALE AGREEMENT, dated as of [______], 2021 (this “Sale Agreement”), is by and between WEPCO ENVIRONMENTAL
TRUST FINANCE I, LLC, a Delaware limited liability company (the “Issuer”), and WISCONSIN ELECTRIC POWER COMPANY,
a Wisconsin corporation (together with its successors in interest to the extent permitted hereunder, the “Seller”).

 

RECITALS

 

WHEREAS, the Issuer desires to purchase
the Environmental Control Property created pursuant to the Statute and the Financing Order;

 

WHEREAS, the Seller is willing to sell its
rights and interests under the Financing Order to the Issuer whereupon such rights and interests shall become the Environmental
Control Property;

 

WHEREAS, the Issuer, in order to finance
the purchase of the Environmental Control Property, will issue the Environmental Trust Bonds under the Indenture; and

 

WHEREAS, the Issuer, to secure its obligations
under the Environmental Trust Bonds and the Indenture, will pledge, among other things, all right, title and interest of the Issuer
in and to the Environmental Control Property and this Sale Agreement to the Indenture Trustee for the benefit of the Secured Parties.

 

NOW, THEREFORE, in consideration of the
premises and the mutual covenants herein contained, the parties hereto agree as follows:

 

ARTICLE
I.

DEFINITIONS AND RULES OF CONSTRUCTION

 

SECTION 1.01.                   
Definitions and Rules of Construction.

 

(a)       Unless
otherwise defined herein, capitalized terms used herein shall have the meanings assigned to them in that certain Indenture (including
Appendix A thereto) dated as of the date hereof (the “Indenture”), between the Issuer and U.S. Bank,
National Association, in its capacity as indenture trustee (the “Indenture Trustee”) and in its separate capacity
as a securities intermediary (the “Securities Intermediary”). Not all terms defined in Appendix A of
the Indenture are used in this Sale Agreement. The rules of construction set forth in Appendix A of the Indenture shall
apply to this Sale Agreement.

 

(b)       Whenever used in this Sale Agreement,
the following words and phrases shall have the following meanings:

 

“Bill of Sale” means
a bill of sale substantially in the form of Exhibit A hereto delivered pursuant to Section 2.02(a).

 

“Losses”
means (i) any and all amounts of principal and interest on the Environmental Trust Bonds not paid when due or when scheduled
to be paid in accordance with their terms and the amounts of any deposits by or to the Issuer required to have been made in
accordance with the terms of the Basic Documents or the Financing Order which are not made when so required and (ii) any and
all other liabilities, obligations, losses, claims, damages, payments, costs or expenses of any kind whatsoever.

 

     

     

    

 

ARTICLE
II.

TRANSFER OF ENVIRONMENTAL CONTROL PROPERTY

 

SECTION 2.01.                   
Transfer of Environmental Control Property.

 

(a)              
In consideration of the Issuer’s delivery to or upon the order of the Seller of $[___________], subject to the conditions
specified in Section 2.02, the Seller does hereby irrevocably sell, assign and otherwise transfer to the Issuer, without
recourse or warranty, except as set forth herein, all right, title and interest of the Seller in, to and under the Environmental
Control Property (such sale, assignment and transfer of the Environmental Control Property includes, to the fullest extent permitted
by the Statute, the right to impose, collect and receive Environmental Control Charges and the assignment of all revenues and proceeds
of or arising from the Environmental Control Charges related to the Environmental Control Property, as the same may be adjusted
from time to time). Such sale, assignment and transfer of the Environmental Control Property is hereby expressly stated to be a
sale or other absolute transfer and, pursuant to Section 196.027(5)(c) of the Statute and the Financing Order, shall constitute
a sale and absolute transfer of all of the Seller’s right, title and interest, in, to and under, and not a pledge of, or
secured transaction relating to, the Seller’s right, title and interest, in, to and under the Environmental Control Property.
The preceding sentence is the statement referred to in Section 196.027(5)(c) of the Statute. The Seller and the Issuer agree that
after giving effect to the sale, assignment and transfer contemplated hereby the Seller has no right, title or interest in, to
or under the Environmental Control Property to which a security interest could attach because (i) it has sold, assigned and transferred
all right, title and interest in and to the Environmental Control Property to the Issuer, and (ii) as provided in Section 196.027(5)(c)
of the Statute, after such transfer the Environmental Control Property is not subject to any claims of the Seller or the Seller’s
creditors, other than creditors holding a prior security interest in the Environmental Control Property perfected under Section
196.027(5)(b) of the Statute. If such sale, assignment and transfer is held by any court of competent jurisdiction not to be an
absolute transfer as provided in Section 196.027(5)(c) of the Statute, then such sale, assignment and transfer shall be treated
as a pledge of the Environmental Control Property and as the creation of a security interest (within the meaning of the Statute
and the applicable UCC) in the Environmental Control Property and, without prejudice to its position that it has absolutely transferred
all of its rights in the Environmental Control Property to the Issuer, the Seller hereby grants a security interest in the Environmental
Control Property to the Issuer (and to the Indenture Trustee for the benefit of the Secured Parties) to secure their respective
rights under the Basic Documents to receive the Environmental Control Charges and all other Environmental Control Property (the
 “Back-Up Security Interest”).(b)Subject to Section 2.02, the Issuer does hereby purchase the Environmental
Control Property from the Seller for the consideration set forth in this Section 2.01(a).

 

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SECTION 2.02.                   
Conditions to Transfer of Environmental Control Property. The obligation of the Seller to sell, and the obligation
of the Issuer to purchase, the Environmental Control Property on the Closing Date shall be subject to the satisfaction of each
of the following conditions:

 

(a)              on or prior to the Closing Date, the Seller shall have delivered to the Issuer a duly executed Bill of Sale identifying
the Environmental Control Property to be transferred on the Closing Date;

 

(b)             
on or prior to the Closing Date, the Seller shall have received the Financing Order creating the Environmental Control Property;

 

(c)              
as of the Closing Date, the Seller is not insolvent and will not have been made insolvent by such sale and the Seller is
not aware of any pending insolvency with respect to itself;

 

(d)              as of the Closing Date, the representations and warranties of the Seller set forth in this Sale Agreement shall be true
and correct with the same force and effect as if made on the Closing Date (except to the extent that they relate to an earlier
date); on and as of the Closing Date no breach of any covenant or agreement of the Seller contained in this Sale Agreement has
occurred and is continuing; and no Servicer Default shall have occurred and be continuing;

 

(e)               as of the Closing Date, (i) the Issuer shall have sufficient funds available to pay the purchase price for the Environmental
Control Property to be transferred on such date and (ii) all conditions to the issuance of the Environmental Trust Bonds intended
to provide such funds set forth in the Indenture shall have been satisfied or waived;

 

(f)               on or prior to the Closing Date, the Seller shall have taken all action required to transfer to the Issuer ownership of
the Environmental Control Property to be transferred on such date, free and clear of all Liens other than Liens created by the
Issuer pursuant to the Basic Documents and to perfect such transfer, including, without limitation, filing any statements or filings
under the Statute or the applicable UCC;

 

(g)               the Seller shall have delivered to the Rating Agencies and the Issuer any Opinions of Counsel required by the Rating Agencies;

 

(h)               the Seller shall have received and delivered to the Issuer and the Indenture Trustee an opinion or opinions of outside tax
counsel (as selected by the Seller, and in form and substance reasonably satisfactory to the Issuer and the Underwriters) to the
effect that (i) the Issuer will not be subject to U.S. federal income tax as an entity separate from its sole owner and that the
Environmental Trust Bonds will be treated as debt of the Issuer’s sole owner for U.S. federal income tax purposes and (ii)
for U.S. federal income tax purposes, the Seller will not be treated as recognizing gross income upon the issuance of the Environmental
Trust Bonds; 

 

(i)                on and as of the Closing Date, each of the LLC Agreement, the Servicing Agreement, this Sale Agreement, the Indenture, the
Financing Order and the Statute shall be in full force and effect;

 

(j)               
 the Environmental Trust Bonds shall have received a rating or ratings required by the Financing Order;

 

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(k)              
the Seller shall have delivered to the Indenture Trustee and the Issuer an Officer’s Certificate confirming the satisfaction
of each condition precedent specified in this Section 2.02; and

 

(l)               
the Seller shall have received the purchase price for the Environmental Control Property.

 

ARTICLE
III.

REPRESENTATIONS AND WARRANTIES OF SELLER

 

Subject to Section 3.09, the Seller
makes the following representations and warranties, as of the Closing Date, and the Seller acknowledges that the Issuer has relied
thereon in acquiring the Environmental Control Property. The representations and warranties shall survive the sale, assignment
and transfer of the Environmental Control Property to the Issuer and the pledge thereof to the Indenture Trustee pursuant to the
Indenture. The Seller agrees that (i) the Issuer may assign the right to enforce the following representations and warranties to
the Indenture Trustee and (ii) the representations and warranties inure to the benefit of the Issuer and the Indenture Trustee.

 

SECTION 3.01.         Organization and Good Standing. The Seller is a corporation duly organized, validly existing and in active status
under the laws of the state of Wisconsin, with the requisite corporate power and authority to own its properties as such properties
are currently owned and to conduct its business as such business is now conducted by it, and has the requisite corporate power
and authority to obtain the Financing Order and own the rights and interests under the Financing Order and to sell and assign those
rights and interests to the Issuer whereupon such rights and interests shall become “environmental control property”
as defined in Section 196.027(1)(h) of the Statute.

 

SECTION 3.02.         Due Qualification. The Seller is duly qualified to do business and is in good standing, and has obtained all necessary
licenses and approvals, in all jurisdictions in which the ownership or lease of property or the conduct of its business shall require
such qualifications, licenses or approvals (except where the failure to so qualify or obtain such licenses and approvals would
not be reasonably likely to have a material adverse effect on the Seller’s business, operations, assets, revenues or properties).

 

SECTION 3.03.         Power and Authority. The Seller has the requisite corporate power and authority to execute and deliver this Sale
Agreement and to carry out its terms; and the execution, delivery and performance of obligations under this Sale Agreement have
been duly authorized by all necessary corporate action on the part of the Seller under its organizational or governing documents
and laws.

 

SECTION
3.04.          Binding
Obligation. This Sale Agreement constitutes a legal, valid and binding obligation of the Seller, enforceable against the
Seller in accordance with its terms, subject to applicable insolvency, reorganization, moratorium, fraudulent transfer and
other laws relating to or affecting creditors’ or secured parties’ rights generally from time to time in effect
and to general principles of equity (including concepts of materiality, reasonableness, good faith and fair dealing),
regardless of whether considered in a proceeding in equity or at law.

 

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SECTION 3.05.         
No Violation. The consummation of the transactions contemplated by this Sale Agreement and the fulfillment of the
terms hereof do not and will not: (a) conflict with or result in any breach of any of the terms and provisions of, or constitute
(with or without notice or lapse of time) a default under, the Seller’s organizational documents or any indenture, or other
material agreement or instrument to which the Seller is a party or by which it or any of its property is bound; or (b) result in
the creation or imposition of any Lien upon any of the Seller’s properties pursuant to the terms of any such indenture, agreement
or other instrument (other than any Lien that may be granted in the Issuer’s favor or any Lien under the Basic Documents
or any Liens created by the Issuer pursuant to the Statute) or violate any existing law or any existing order, rule or regulation
applicable to the Seller of any Governmental Authority having jurisdiction over the Seller or its properties.

 

SECTION 3.06.         
No Proceedings. [Except as disclosed in Schedule 3.06], there are no proceedings pending and, to the Seller’s
knowledge, there are no proceedings threatened and, to the Seller’s knowledge, there are no investigations pending or threatened,
before any Governmental Authority having jurisdiction over the Seller or its properties involving or relating to the Seller or
the Issuer or, to the Seller’s knowledge, any other Person: (a) asserting the invalidity of the Statute, the Financing Order,
this Sale Agreement, any of the other Basic Documents or the Environmental Trust Bonds; (b) seeking to prevent the issuance of
the Environmental Trust Bonds or the consummation of any of the transactions contemplated by this Sale Agreement or any of the
other Basic Documents; (c) seeking any determination or ruling that could reasonably be expected to materially and adversely affect
the performance by the Seller of its obligations under, or the validity or enforceability of, the Statute, the Financing Order,
this Sale Agreement, any of the other Basic Documents or the Environmental Trust Bonds; or (d) seeking to adversely affect the
federal income tax or state income or franchise tax classification of the Environmental Trust Bonds as debt.

 

SECTION 3.07.         
Approvals. Except for UCC financing statement filings and other filings under the Statute, no approval, authorization,
consent, order or other action of, or filing with, any Governmental Authority is required in connection with the execution and
delivery by the Seller of this Sale Agreement, the performance by the Seller of the transactions contemplated hereby or the fulfillment
by the Seller of the terms hereof, except those that have been obtained or made and those that the Seller, in its capacity as Servicer
under the Servicing Agreement, is required to make in the future pursuant to the Servicing Agreement.

 

SECTION 3.08.         
The Environmental Control Property.

 

(a)        
Information. Subject to Section 3.08(h) below, at the Closing Date, all written information, as amended or
supplemented from time to time, provided by the Seller to the Issuer with respect to the Environmental Control Property (including
the Expected Amortization Schedule and the Financing Order) is true and correct in all material respects.

 

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(b)         Title.
It is the intention of the parties hereto that the sale, assignment and transfer of the Environmental Control Property herein
contemplated constitutes a sale or other absolute transfer of the Environmental Control Property from the Seller to the
Issuer and that no interest in, or right or title to, the Environmental Control Property shall be part of the Seller’s
estate in the event of the filing of a bankruptcy petition by or against the Seller under any bankruptcy law. No portion of
the Environmental Control Property has been sold, transferred, assigned, pledged or otherwise conveyed by the Seller to any
Person other than the Issuer, and, to the Seller’s knowledge (after due inquiry), no security agreement, financing
statement or equivalent security or lien instrument listing the Seller as debtor covering all or any part of the
Environmental Control Property is on file or of record in any jurisdiction, except such as may have been filed, recorded or
made in favor of the Issuer or the Indenture Trustee in connection with the Basic Documents. The Seller has not authorized
the filing of any financing statement against it that includes a description of Environmental Trust Bond Collateral including
the Environmental Control Property other than any financing statement filed, recorded or made in favor of the Issuer or the
Indenture Trustee in connection with the Basic Documents.

 

(c)        
Transfer Filings. On the Closing Date, immediately upon the sale hereunder, the Environmental Control Property shall
be validly transferred and sold to the Issuer, and the Issuer shall own all of the Environmental Control Property free and clear
of all Liens other than Liens created by the Issuer pursuant to the Indenture. All actions or filings, including filings under
the Statute and the applicable UCC, necessary to give the Issuer a valid ownership interest in the Environmental Control Property
have been taken or made. No further action is required to establish the Issuer’s ownership interest. All applicable filings
also have been made to the extent required by applicable law in any jurisdiction to perfect the Back-Up Security Interest granted
by the Seller to the Issuer.

 

(d)        
Financing Order; Other Approvals. On the Closing Date, under the laws of the State of Wisconsin and the United States
in effect on the Closing Date: (i) the Financing Order pursuant to which the rights and interests of the Seller, including the
right to impose, collect and receive the Environmental Control Charges and, in and to the Environmental Control Property transferred
on such date have been created, is Final and in full force and effect; (ii) as of the issuance of the Environmental Trust Bonds,
the Environmental Trust Bonds are entitled to the protections provided by the Statute and, accordingly, the Financing Order and
the Environmental Control Charges are not revocable by the PSCW; (iii) under the terms of the Financing Order, the initial Environmental
Control Charges shall become effective the first day of the first full month following the issuance of the Environmental Trust
Bonds; (iv) the process by which the Financing Order creating the Environmental Control Property was adopted and approved, and
the Financing Order and the Tariff themselves, comply with all applicable laws, rules and regulations; and (v) no other approval,
authorization, consent, order or other action of, or filing with any Governmental Authority is required in connection with the
creation of the Environmental Control Property transferred on such date, except those that have been obtained or made.

 

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(e)         State
Action. Under the Statute, the State of Wisconsin pledged to and agreed with the Holders not to take or permit any action
that impairs the value of the Environmental Control Property or, except for the True-Up Adjustments, reduce, alter or impair
the Environmental Control Charges that are imposed, collected and remitted for the benefit of the Holders until any
principal, interest, premium, or other charge incurred, or contract to be performed, in connection with the Environmental
Trust Bonds are paid or performed in full. Furthermore, under the contract clauses of the State of Wisconsin and United
States constitutions, the State of Wisconsin, could not take any action of a legislative character, including the repeal or
amendment of the Statute or the Financing Order that substantially impairs the value of the Environmental Control Property
or, except for the True-Up Adjustments, substantially reduces, alters or impairs the Environmental Control Charges to be
imposed, collected and remitted to the Issuer for the benefit of the Holders of the Environmental Trust Bonds, unless such
action is a reasonable exercise of the sovereign powers of the State of Wisconsin and of a character reasonable and
appropriate to further a significant and legitimate public purpose and, under the takings clauses of the State of Wisconsin
and United States constitutions, the State of Wisconsin could not repeal or amend the Statute or the Financing Order or take
any other action in contravention of the State Pledge, without paying just compensation to the Holders, as determined by a
court of competent jurisdiction, if doing so would constitute a permanent appropriation of a substantial property interest of
the Holders in the Environmental Control Property and deprives the Holders of their reasonable expectations arising from
their investments in the Environmental Trust Bonds. There is no assurance, however, that, even if a court were to award just
compensation, it would be sufficient to pay the full amount of principal of and interest on the Environmental Trust
Bonds.

 

(f)        
Assumptions. On the Closing Date, based upon the information available to the Seller on such date, the assumptions
used in calculating the Environmental Control Charges are reasonable and are made in good faith. Notwithstanding the foregoing,
the Seller makes no representation or warranty, express or implied, that amounts actually collected arising from those Environmental
Control Charges will in fact be sufficient to meet the payment obligations on the Environmental Trust Bonds or that the assumptions
used in calculating such Environmental Control Charges will in fact be realized.

 

(g)       
Creation of Environmental Control Property. Upon the effectiveness of the Financing Order and the transfer of the
Environmental Control Property pursuant to this Sale Agreement:

 

(i)        
For purposes of the Statute, the Environmental Control Property constitutes a present property right;

 

(ii)       
the Environmental Control Property consists of the right to impose, collect and receive Environmental Control Charges in
an amount necessary to provide for recovery of the principal of and interest on the Environmental Trust Bonds and other Financing
Costs, the right to obtain True-Up Adjustments of the Environmental Control Charges as provided in the Financing Order and the
Statute, and all revenues or other proceeds arising from those rights and interests; and

 

(iii)      the
Environmental Control Property shall continue to exist until the Environmental Trust Bonds are paid in full and all Financing Costs
have been recovered in full.

 

(h)         Nature
of Representations and Warranties. The representations and warranties set forth in this Section 3.08, insofar as
they involve conclusions of law, are made not on the basis that the Seller purports to be a legal expert or to be rendering
legal advice, but rather to reflect the parties’ good faith understanding of the legal basis on which the parties are
entering into this Sale Agreement and the other Basic Documents and the basis on which the Holders are purchasing the
Environmental Trust Bonds, and to reflect the parties’ agreement that, if such understanding turns out to be incorrect
or inaccurate, the Seller will be obligated to indemnify the Issuer and its permitted assigns (to the extent required by and
in accordance with Section 5.01), and that the Issuer and its permitted assigns will be entitled to enforce any rights
and remedies under the Basic Documents on account of such inaccuracy to the same extent as if the Seller had breached any
other representations or warranties hereunder.

 

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(i)         
Prospectus. As of the date hereof, the information describing the Seller under the caption “Review of the Environmental
Control Property” and “Wisconsin Electric Power Company — The Depositor, Sponsor, Seller and Initial Servicer”
in the prospectus dated [__], 2021 relating to the Environmental Trust Bonds is true and correct in all material respects.

 

(j)         
Solvency. After giving effect to the sale of the Environmental Control Property hereunder, the Seller:

 

(i)        
is solvent and expects to remain solvent;

 

(ii)       
is adequately capitalized to conduct its business and affairs considering its size and the nature of its business and intended
purpose;

 

(iii)      
is not engaged in nor does it expect to engage in a business for which its remaining property represents unreasonably small
capital;

 

(iv)      
reasonably believes that it will be able to pay its debts as they come due; and

 

(v)       
is able to pay its debts as they mature and does not intend to incur, or believes that it will not incur, indebtedness that
it will not be able to repay at its maturity.

 

(k)        
No Court Order. There is no order by any court providing for the revocation, alteration, limitation or other impairment
of the Statute, the Financing Order, the Environmental Control Property or the Environmental Control Charges or any rights arising
under any of them or that seeks to enjoin the performance of any obligations under the Financing Order.

 

(l)         Survival of Representations and Warranties The representations and warranties set forth in this Section 3.08
shall survive the execution and delivery of this Sale Agreement and may not be waived by any party hereto except pursuant to a
written agreement executed in accordance with Article VI and as to which the Rating Agency Condition has been satisfied.

 

SECTION 3.09.          Limitations
on Representations and Warranties. Without prejudice to any of the other rights of the parties, the Seller will not be in
breach of any representation or warranty as a result of a change in law by means of any legislative enactment, constitutional
amendment or voter referendum. THE SELLER MAKES NO REPRESENTATION OR WARRANTY, EXPRESS OR IMPLIED, THAT BILLED ENVIRONMENTAL
CONTROL CHARGES WILL BE ACTUALLY COLLECTED FROM CUSTOMERS AND NO REPRESENTATION THAT AMOUNTS COLLECTED WILL BE SUFFICIENT TO
MEET THE OBLIGATIONS ON THE ENVIRONMENTAL TRUST BONDS.

 

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ARTICLE
IV.

COVENANTS OF THE SELLER

 

SECTION 4.01.         
Existence. Subject to Section 5.02, so long as any of the Environmental Trust Bonds are Outstanding, the Seller
(a) will keep in full force and effect its existence and remain in good standing or equivalent status under the laws of the jurisdiction
of its organization, and (b) will obtain and preserve its qualification to do business, in each case to the extent that in each
such jurisdiction such existence or qualification is or shall be necessary to protect the validity and enforceability of this
Sale Agreement, the other Basic Documents to which the Seller is a party and each other instrument or agreement to which the Seller
is a party necessary or appropriate to the proper administration of this Sale Agreement and the transactions contemplated hereby
or to the extent necessary for the Seller to perform its obligations hereunder or thereunder.

 

SECTION 4.02.         No Liens. Except for the transfers under this Sale Agreement or any Lien for the benefit of the Issuer, the Holders
of the Environmental Trust Bonds or the Indenture Trustee, the Seller will not sell, pledge, assign or transfer to any other Person,
or grant, create, incur, assume or suffer to exist any Lien on, any of the Environmental Control Property, or any interest therein,
and the Seller shall defend the right, title and interest of the Issuer and of the Indenture Trustee, on behalf of the Secured
Parties, in, to and under the Environmental Control Property against all claims of third parties claiming through or under the
Seller. Wisconsin Electric, in its capacity as Seller, will not at any time assert any Lien against, or with respect to, any of
the Environmental Control Property.

 

SECTION 4.03.         
Delivery of Collections.

 

(a)         In
the event that the Seller receives any EC Charge Collections or other payments in respect of the Environmental Control Charges
or the proceeds thereof, other than in its capacity as the Servicer, the Seller agrees to pay to the Servicer, on behalf of the
Issuer, all payments received by it in respect thereof as soon as practicable after receipt thereof. Prior to such remittance to
the Servicer by the Seller, the Seller agrees that such amounts are held by it in trust for the Issuer and the Indenture Trustee.

 

(b)         The
Seller shall not become a party to any future (i) trade receivables purchase and sale arrangement or similar arrangement
under which it sells all or any portion of its accounts receivables owing from Customers who are obligated to pay the
Environmental Control Charges unless the Indenture Trustee, the Seller and the other parties to such arrangement shall have
entered into an Intercreditor Agreement, substantially in the form of Exhibit D to the Indenture, with such changes as may be
agreed among the parties thereto so long as such changes do not materially and adversely affect any Holder’s rights in
and to any Environmental Trust Bond Collateral or otherwise under the Indenture, in connection therewith and the terms of the
documentation evidencing such trade receivables purchase and sale arrangement or similar arrangement shall expressly exclude
the Environmental Control Property (including the Environmental Control Charges) from any receivables or other assets pledged
or sold under such arrangement or (ii) sale agreement selling to any other Affiliate property consisting of charges similar
to the Environmental Control Charges sold pursuant to this Sale Agreement, payable by Customers pursuant to the Statute or
any similar law, unless the Seller and the other parties to such arrangement shall have entered into such Intercreditor
Agreement.

 

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SECTION 4.04.         Notice of Liens. The Seller shall notify the Issuer and the Indenture Trustee promptly after becoming aware of any
Lien on any of the Environmental Control Property, other than the transfers hereunder and any Lien pursuant to the Basic Documents,
including the Lien in favor of the Indenture Trustee for the benefit of the Holders of the Environmental Trust Bonds.

 

SECTION 4.05.         Compliance with Law. The Seller hereby agrees to comply with its organizational or governing documents and all laws,
treaties, rules, regulations and determinations of any Governmental Authority applicable to it, except to the extent that failure
to so comply would not materially adversely affect the Issuer’s or the Indenture Trustee’s interests in the Environmental
Control Property or under any of the Basic Documents to which the Seller is a party or of Seller’s performance of its obligations
under this Sale Agreement or under any of the other Basic Documents to which it is a party.

 

SECTION 4.06.         
Covenants Related to Environmental Trust Bonds and Environmental Control Property.

 

(a)        
So long as any of the Environmental Trust Bonds are Outstanding, the Seller shall treat the Environmental Control Property
as the Issuer’s property for all purposes other than financial accounting or tax purposes.

 

(b)        
So long as any of the Environmental Trust Bonds are Outstanding, the Seller shall treat such Environmental Trust Bonds as
debt of the Issuer and not that of the Seller, except for financial accounting and tax purposes. For U.S. federal income tax purposes
and, to the extent consistent with applicable state, local and other tax law, for purposes of state, local or other taxes, so long
as any of the Environmental Trust Bonds are Outstanding, the Seller agrees to treat such Environmental Trust Bonds as indebtedness
of the Seller (as the sole owner of the Issuer) secured by the Environmental Trust Bond Collateral unless otherwise required by
appropriate taxing authorities.

 

(c)        
So long as any of the Environmental Trust Bonds are Outstanding, the Seller shall disclose in its financial statements that
the Issuer and not the Seller is the owner of the Environmental Control Property and that the assets of the Issuer are not available
to pay creditors of the Seller or its Affiliates (other than the Issuer).

 

(d)        
So long as any of the Environmental Trust Bonds are Outstanding, the Seller shall not own or purchase any Environmental
Trust Bonds.

 

(e)        
 So long as the Environmental Trust Bonds are Outstanding, the Seller shall disclose the effects of all transactions between
the Seller and the Issuer in accordance with generally accepted accounting principles.

 

    10

     

    

 

(f)         
The Seller agrees that, upon the sale by the Seller of the Environmental Control Property to the Issuer pursuant to this
Sale Agreement, (i) to the fullest extent permitted by law, including applicable PSCW Regulations and the Statute, the Issuer shall
have all of the rights originally held by the Seller with respect to the Environmental Control Property, including the right (subject
to the terms of the Servicing Agreement) to exercise any and all rights and remedies to collect any amounts payable by any Customer
in respect of the Environmental Control Property, notwithstanding any objection or direction to the contrary by the Seller (and
the Seller agrees not to make any such objection or to take any such contrary action) and (ii) any payment by any Customer directly
to the Issuer shall discharge such Customer’s obligations, if any, in respect of the Environmental Control Property to the
extent of such payment, notwithstanding any objection or direction to the contrary by the Seller.

 

(g)        
So long as any of the Environmental Trust Bonds are Outstanding, (i) in all proceedings relating directly or indirectly
to the Environmental Control Property, the Seller shall affirmatively certify and confirm that it has sold all of its rights and
interests in and to such property (other than for financial accounting or tax purposes), (ii) the Seller shall not make any statement
or reference in respect of the Environmental Control Property that is inconsistent with the ownership interest of the Issuer (other
than for financial accounting or tax purposes), (iii) the Seller shall not take any action in respect of the Environmental Control
Property except solely in its capacity as the Servicer thereof pursuant to the Servicing Agreement or as otherwise contemplated
by the Basic Documents, (iv) the Seller shall not sell environmental control property under a separate financing order in connection
with the issuance of additional environmental trust bonds unless the Rating Agency Condition shall have been satisfied, and (v)
neither the Seller nor the Issuer shall take any action, file any tax return or make any election inconsistent with the treatment
of the Issuer, for U.S. federal income tax purposes and, to the extent consistent with applicable state tax law, state income and
franchise tax purposes, as a disregarded entity that is not separate from the Seller (or, if relevant, from another sole owner
of the Issuer).

 

SECTION 4.07.         Protection
of Title. The Seller shall execute and file such filings, including, without limitation, filings with the Wisconsin
Department of Financial Institutions pursuant to the Statute, and cause to be executed and filed such filings, all in such
manner and in such places as may be required by law to fully preserve, maintain, protect and perfect the ownership interest
of the Issuer, and the back-up precautionary security interest of the Issuer pursuant to Section 2.01, and the first
priority security interest of the Indenture Trustee in the Environmental Control Property, including, without limitation, all
filings required under the Statute and the applicable UCC relating to the transfer of the ownership of the rights and
interest in the Environmental Control Property by the Seller to the Issuer or the pledge of the Issuer’s interest in
the Environmental Control Property to the Indenture Trustee. The Seller shall deliver or cause to be delivered to the Issuer
and the Indenture Trustee file-stamped copies of, or filing receipts for, any document filed as provided above, as soon as
available following such filing. The Seller shall institute any action or proceeding necessary to compel performance by the
PSCW, the State of Wisconsin or any of their respective agents of any of their obligations or duties under the Statute or the
Financing Order and the Seller agrees to take such legal or administrative actions, including defending against or
instituting and pursuing legal actions and appearing or testifying at hearings or similar proceedings, in each case as may be
reasonably necessary (a) to seek to protect the Issuer and the Secured Parties from claims, state actions or other actions or
proceedings of third parties which, if successfully pursued, would result in a breach of any representation set forth in Article
III or any covenant set forth in Article IV and (b) to seek to block or overturn any attempts to cause a repeal
of, modification of or supplement to the Statute or the Financing Order, or the rights of Holders of the Environmental Trust
Bonds by legislative enactment or constitutional amendment that would be materially adverse to the Issuer or the Secured
Parties or which would otherwise cause an impairment of the rights of the Issuer or the Secured Parties. The costs of any
such actions or proceedings undertaken by the Seller will be reimbursed by the Issuer as an Operating Expense in accordance
with the priorities set forth in Section 8.02(e) of the Indenture. The Seller’s obligations pursuant to this Section
4.07 shall survive and continue notwithstanding the fact that the payment of Operating Expenses pursuant to Section
8.02(e) of the Indenture may be delayed (it being understood that the Seller may be required to advance its own funds to
satisfy its obligations hereunder).

 

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SECTION 4.08.         
Nonpetition Covenants. Notwithstanding any prior termination of this Sale Agreement or the Indenture, the Seller
shall not, prior to the date which is one year and one day after the termination of the Indenture and payment in full of the Environmental
Trust Bonds or any other amounts owed under the Indenture, petition or otherwise invoke or cause the Issuer to invoke the process
of any Governmental Authority for the purpose of commencing or sustaining an involuntary case against the Issuer under any U.S.
federal or state bankruptcy, insolvency or similar law, appointing a receiver, liquidator, assignee, trustee, custodian, sequestrator
or other similar official of the Issuer or any substantial part of the property of the Issuer, or ordering the winding up or liquidation
of the affairs of the Issuer.

 

SECTION 4.09.         
Taxes. So long as any of the Environmental Trust Bonds are Outstanding, the Seller shall, and shall cause each of
its subsidiaries to, pay all material taxes, assessments and governmental charges imposed upon it or any of its properties or assets
or with respect to any of its franchises, business, income or property before any penalty accrues thereon if the failure to pay
any such taxes, assessments and governmental charges would, after any applicable grace periods, notices or other similar requirements,
result in a Lien on the Environmental Control Property; provided, that no such tax need be paid if the Seller or one of
its Affiliates is contesting the same in good faith by appropriate proceedings promptly instituted and diligently conducted and
if the Seller or such Affiliate has established appropriate reserves as shall be required in conformity with generally accepted
accounting principles.

 

SECTION 4.10.         
Notice of Breach to Rating Agencies, Etc. Promptly after obtaining knowledge thereof, in the event of a breach in
any material respect (without regard to any materiality qualifier contained in such representation, warranty or covenant) of any
of the Seller’s representations, warranties or covenants contained herein, the Seller shall promptly notify the Issuer, the
Indenture Trustee and the Rating Agencies of such breach. For the avoidance of doubt, any breach which would adversely affect scheduled
payments on the Environmental Trust Bonds will be deemed to be a material breach for purposes of this Section 4.10.

 

SECTION 4.11.         
Use of Proceeds. The Seller shall use the proceeds of the sale of the Environmental Control Property in accordance
with the Financing Order and the Statute.

 

    12

     

    

 

SECTION 4.12.         
Further Assurances. Upon the request of the Issuer, the Seller shall execute and deliver such further instruments
and do such further acts as may be reasonably necessary to carry out the provisions and purposes of this Sale Agreement.

 

ARTICLE
V.

THE SELLER

 

SECTION 5.01.         
Liability of Seller; Indemnities.

 

(a)        
The Seller shall be liable in accordance herewith only to the extent of the obligations specifically undertaken by the Seller
under this Sale Agreement.

 

(b)        
The Seller shall indemnify the Issuer and the Indenture Trustee (for the benefit of the Secured Parties) and each of their
respective officers, directors, employees, trustees, managers and agents for, and defend and hold harmless each such Person from
and against, any and all taxes (other than taxes imposed on Holders as a result of their ownership of an Environmental Trust Bond)
that may at any time be imposed on or asserted against any such Person as a result of the sale of the Environmental Control Property
to the Issuer, including any franchise, sales, gross receipts, general corporation, tangible personal property, privilege or license
taxes, but excluding any taxes imposed as a result of a failure of such Person to withhold or remit taxes with respect to payments
on any Environmental Trust Bond; it being understood that the Holders shall be entitled to enforce their rights against the Seller
under this Section 5.01(b) solely through a cause of action brought for their benefit by the Indenture Trustee as set forth
in the Indenture.

 

(c)       
The Seller shall indemnify the Issuer and the Indenture Trustee (for the benefit of the Secured Parties) and each of their
respective officers, directors, employees, trustees, managers and agents for, and defend and hold harmless each such Person from
and against, any and all taxes (other than taxes imposed on Holders as a result of their ownership of an Environmental Trust Bond)
that may at any time be imposed on or asserted against any such Person as a result of the Issuer’s ownership and assignment
of the Environmental Control Property, the issuance and sale by the Issuer of the Environmental Trust Bonds or the other transactions
contemplated in the Basic Documents, including any franchise, sales, gross receipts, general corporation, tangible personal property,
privilege or license taxes, but excluding any taxes imposed as a result of a failure of such Person to withhold or remit taxes
with respect to payments on any Environmental Trust Bond.

 

(d)        
The Seller shall indemnify the Issuer, the Indenture Trustee (for the benefit of the Secured Parties) and each of their
respective officers, directors, employees and agents for, and defend and hold harmless each such Person from and against, all Losses
that may be imposed on, incurred by or asserted against each such Person, in each such case, as a result of the Seller’s
breach of any of its representations, warranties or covenants contained in this Sale Agreement.

 

(e)        
 Indemnification under Sections 5.01(b), 5.01(c), 5.01(d) and 5.01(f) shall include reasonable
out-of-pocket fees and expenses of investigation and litigation (including reasonable attorneys’ fees and expenses), except
as otherwise expressly provided in this Sale Agreement.

 

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(f)         
The Seller shall indemnify the Indenture Trustee (for itself) and each Independent Manager, and any of their respective
officers, directors, employees and agents (each, an “Indemnified Person”),
for, and defend and hold harmless each such Person from and against, any and all Losses incurred by any of such Indemnified Persons
as a result of the Seller’s breach of any of its representations and warranties or covenants
contained in this Sale Agreement, except to the extent of Losses either resulting from the willful misconduct, bad faith or gross
negligence of such Indemnified Person or resulting from a breach of a representation or warranty made by such Indemnified Person
in any of the Basic Documents that gives rise to the Seller’s breach. The Seller shall
not be required to indemnify an Indemnified Person for any amount paid or payable by such Indemnified Person in the settlement
of any action, proceeding or investigation without the prior written consent of the Seller, which consent shall not be unreasonably
withheld. Promptly after receipt by an Indemnified Person of notice of the commencement of any action, proceeding or investigation,
such Indemnified Person shall, if a claim in respect thereof is to be made against the Seller under this Section 5.01(f),
notify the Seller in writing of the commencement thereof. Failure by an Indemnified Person to so notify the Seller shall relieve
the Seller from the obligation to indemnify and hold harmless such Indemnified Person under this Section 5.01(f) only to
the extent that the Seller suffers actual prejudice as a result of such failure. With respect to any action, proceeding or investigation
brought by a third party for which indemnification may be sought under this Section 5.01(f), the Seller shall be entitled
to conduct and control, at its expense and with counsel of its choosing that is reasonably satisfactory to such Indemnified Person,
the defense of any such action, proceeding or investigation (in which case the Seller shall not thereafter be responsible for the
fees and expenses of any separate counsel retained by the Indemnified Person except as set forth below); provided, that
the Indemnified Person shall have the right to participate in such action, proceeding or investigation through counsel chosen by
it and at its own expense. Notwithstanding the Seller’s election to assume the defense
of any action, proceeding or investigation, the Indemnified Person shall have the right to employ separate counsel (including local
counsel), and the Seller shall bear the reasonable fees, costs and expenses of such separate counsel if (i) the defendants in any
such action include both the Indemnified Person and the Seller and the Indemnified Person shall have reasonably concluded that
there may be legal defenses available to it that are different from or additional to those available to the Seller, (ii) the Seller
shall not have employed counsel reasonably satisfactory to the Indemnified Person to represent the Indemnified Person within a
reasonable time after notice of the institution of such action, (iii) the Seller shall authorize the Indemnified Person to employ
separate counsel at the expense of the Seller or (iv) in the case of the Indenture Trustee, such action exposes the Indenture Trustee
to a material risk of criminal liability or forfeiture or a Servicer Default has occurred and is continuing. Notwithstanding the
foregoing, the Seller shall not be obligated to pay for the fees, costs and expenses of more than one separate counsel for the
Indemnified Persons other than one local counsel, if appropriate.

 

(g)         The
Seller shall indemnify the Servicer (if the Servicer is not the Seller) for the costs of any action instituted by the
Servicer pursuant to Section 5.02(d) of the Servicing Agreement which are not paid as Operating Expenses in accordance with
the priorities set forth in Section 8.02(e) of the Indenture.

 

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(h)       
The remedies provided in this Sale Agreement are the sole and exclusive remedies against the Seller for breach of its representations
and warranties in this Sale Agreement.

 

(i)         
Indemnification under this Section 5.01 shall survive any repeal of, modification of, or supplement to, or judicial
invalidation of, the Statute or the Financing Order and shall survive the resignation or removal of the Indenture Trustee or the
termination of this Sale Agreement and will rank pari passu with other general, unsecured obligations of the Seller. The Seller
shall not indemnify any party under this Section 5.01 for any changes in law after the Closing Date, whether such changes
in law are effected by means of any legislative enactment, any constitutional amendment or any final and non-appealable judicial
decision.

 

SECTION 5.02.          Merger,
Conversion or Consolidation of, or Assumption of the Obligations of, Seller. Any Person (a) into which the Seller may be
merged, converted or consolidated and which is a Permitted Successor, (b) that may result from any merger, conversion or
consolidation to which the Seller shall be a party and which is a Permitted Successor, (c) that may succeed to the properties
and assets of the Seller substantially as a whole and which is a Permitted Successor, (d) which results from the division of
the Seller into two or more Persons and which is a Permitted Successor, or (e) which otherwise succeeds to all or
substantially all of the retail electric distribution business of the Seller (a “Permitted Successor”) and
which Person in any of the foregoing cases executes an agreement of assumption to perform all of the obligations of the
Seller hereunder (including the Seller’s obligations under Section 5.01 incurred at any time prior to or after
the date of such assumption), shall be the successor to the Seller under this Sale Agreement without further act on the part
of any of the parties to this Sale Agreement; provided, however, that (i) immediately after giving effect to such
transaction, no representation, warranty or covenant made pursuant to Article III or Article IV shall have been
breached and, if the Seller is the Servicer, no Servicer Default and no event which, after notice or lapse of time, or both,
would become a Servicer Default shall have occurred and be continuing, (ii) the Seller shall have delivered to the Issuer and
the Indenture Trustee an Officer’s Certificate and an Opinion of Counsel from external counsel stating that such
consolidation, conversion, merger, division or succession and such agreement of assumption complies with this Section
5.02 and that all conditions precedent, if any, provided for in this Sale Agreement relating to such transaction have
been complied with, (iii) the Seller shall have delivered to the Issuer, the Indenture Trustee and each Rating Agency an
Opinion of Counsel from external counsel of the Seller either (A) stating that, in the opinion of such counsel, all filings
to be made by the Seller and the Issuer, including filings with the PSCW pursuant to the Statute and the applicable UCC, have
been executed and filed that are necessary to fully maintain the respective interests of the Issuer and the Indenture Trustee
in the Environmental Control Property and reciting the details of such filings or (B) stating that, in the opinion of such
counsel, no such action shall be necessary to maintain such interests, (iv) the Seller shall have delivered to the Issuer,
the Indenture Trustee and each Rating Agency an Opinion of Counsel from independent tax counsel stating that, for U.S.
federal income tax purposes, such consolidation, conversion, merger, division or succession and such agreement of assumption
will not result in a material adverse U.S. federal income tax consequence to the Issuer or the Holders of Environmental Trust
Bonds and (v) the Seller shall have given each Rating Agency prior written notice of such transaction.  When any Person
(or more than one Person) acquires the properties and assets of the Seller substantially as a whole or otherwise becomes the
successor, by merger, conversion, consolidation, sale, transfer, lease or otherwise, to all or substantially all the assets
of the retail electric distribution business of the Seller in accordance with the terms of this Section 5.02, then,
upon satisfaction of all of the other conditions of this Section 5.02, the preceding Seller shall automatically and
without further notice be released from all of its obligations hereunder.

 

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SECTION 5.03.         
Limitation on Liability of Seller and Others. The Seller and any director, officer, employee or agent of the Seller
may rely in good faith on the advice of counsel or on any document of any kind, prima facie properly executed and submitted by
any Person, respecting any matters arising hereunder. Subject to Section 4.07, the Seller shall not be under any obligation
to appear in, prosecute or defend any legal action that is not incidental to its obligations under this Sale Agreement and that
in its opinion may involve it in any expense or liability.

 

ARTICLE
VI.

MISCELLANEOUS PROVISIONS

 

SECTION 6.01.         
Amendment. This Sale Agreement may be amended in writing by the Seller and the Issuer with ten Business Days’
prior written notice given to the Rating Agencies, but without the consent of any of the Holders, (i) to cure any ambiguity, to
correct or supplement any provisions in this Sale Agreement or for the purpose of adding any provisions to or changing in any manner
or eliminating any of the provisions in this Sale Agreement or of modifying in any manner the rights of the Holders; provided,
however, that such action shall not, as evidenced by an Officer’s Certificate delivered to the Issuer and the Indenture
Trustee, adversely affect in any material respect the interests of any Holder or (ii) to conform the provisions hereof to the description
of this Sale Agreement in the Prospectus.

 

In addition, this Sale Agreement may be
amended in writing by the Seller and the Issuer with (i) the prior written consent of the Indenture Trustee, (ii) the satisfaction
of the Rating Agency Condition, and (iii) if any amendment would adversely affect in any material respect the interest of any Holder
of the Environmental Trust Bonds, the consent of a majority of the Holders of each affected Tranche of Environmental Trust Bonds.
In determining whether a majority of Holders have consented, Environmental Trust Bonds owned by the Issuer, Seller or any Affiliate
of the Issuer or Seller shall be disregarded, except that, in determining whether the Indenture Trustee shall be protected in relying
upon any such consent, the Indenture Trustee shall only be required to disregard any Environmental Trust Bonds it actually knows
to be so owned. Promptly after the execution of any such amendment or consent, the Issuer shall furnish copies of such amendment
or consent to each of the Rating Agencies.

 

It shall not be necessary for the consent
of Holders pursuant to this Section to approve the particular form of any proposed amendment or consent, but it shall be sufficient
if such consent shall approve the substance thereof.

 

Notwithstanding the foregoing, in no event
shall this Sale Agreement be amended without the approval of the PSCW if (1) such approval is required pursuant to Wis. Stat. §
196.52, or (2) such amendment would increase the ongoing Financing Costs of the Issuer.

 

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Prior to the execution of any amendment
to this Sale Agreement, the Issuer and the Indenture Trustee shall be entitled to receive and rely upon (i) an Opinion of Counsel
from external counsel of the Seller stating that the execution of such amendment is authorized or permitted by this Sale Agreement
and that all conditions precedent have been satisfied and (ii) the Opinion of Counsel referred to in Section 3.01(c)(i) of the
Servicing Agreement. The Issuer and the Indenture Trustee may, but shall not be obligated to, enter into any such amendment which
affects the Indenture Trustee’s own rights, duties or immunities under this Sale Agreement or otherwise.

 

SECTION 6.02.                   
Notices. Any notice, report or other communication given hereunder shall be in writing and shall be effective (i)
upon receipt when sent through the mails, registered or certified mail, return receipt requested, postage prepaid, with such receipt
to be effective the date of delivery indicated on the return receipt, (ii) upon receipt when sent by an overnight courier, (iii)
on the date personally delivered to an authorized officer of the party to which sent or (iv) on the date transmitted by facsimile
or other electronic transmission (including email) with a confirmation of receipt in all cases, addressed as follows:

 

(a)              
in the case of the Seller, to Wisconsin Electric Power Company, at 231 West Michigan Street, Milwaukee, Wisconsin 53201,
Attention: Anthony L. Reese, Vice President and Treasurer, Telephone: (414) 221-2345, Email: anthony.reese@wecenergygroup.com; 

 

(b)              
in the case of the Issuer, to WEPCo Environmental Trust Finance I, LLC, at 231 West Michigan Street, Milwaukee, Wisconsin
53201, Attention: Anthony L. Reese, Vice President and Treasurer, Telephone: (414) 221-2579, Email: anthony.reese@wecenergygroup.com; 

 

(c)              
in the case of the Indenture Trustee, to the Corporate Trust Office;

 

(d)              
in the case of Fitch, to Fitch Ratings, Inc., 33 Whitehall Street, New York, New York 10004, Attention: ABS Surveillance,
Telephone: (212) 908-0500, Facsimile: (212) 908-0355, Email: [•];

 

(e)              
in the case of Moody’s, to Moody’s Investor Services, Inc., ABS/RMBS Monitoring Department, 25th
Floor, 7 World Trade Center, 250 Greenwich Street, New York, New York, Email: servicereports@moodys.com; and

 

(f)               
in the case of S&P, to S&P Global Ratings, a division of S&P Global Inc., Structured Credit Surveillance, 55
Water Street, New York, New York 10041, Telephone: (212) 438-8991, Email: servicer_reports@spglobal.com (all such notices to be
delivered to S&P in writing by email).

 

Each Person listed above may, by notice
given in accordance herewith to the other Person or Persons listed above, designate any further or different address to which subsequent
notices, reports and other communications shall be sent.

 

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SECTION 6.03.                   
Assignment. Notwithstanding anything to the contrary contained herein, except as provided in Section 5.02,
this Sale Agreement may not be assigned by the Seller.

 

SECTION 6.04.                   
Limitations on Rights of Third Parties. The provisions of this Sale Agreement are solely for the benefit of the Seller,
the Issuer, the Indenture Trustee (for the benefit of the Secured Parties) and the other Persons expressly referred to herein,
and such Persons shall have the right to enforce the relevant provisions of this Sale Agreement. Nothing in this Sale Agreement,
whether express or implied, shall be construed to give to any other Person any legal or equitable right, remedy or claim in the
Environmental Control Property or under or in respect of this Sale Agreement or any covenants, conditions or provisions contained
herein.

 

SECTION 6.05.                   
Severability. Any provision of this Sale Agreement that is prohibited or unenforceable in any jurisdiction shall,
as to such jurisdiction, be ineffective to the extent of such prohibition or unenforceability without invalidating the remainder
of such provision (if any) or the remaining provisions hereof (unless such construction shall be unreasonable), and any such prohibition
or unenforceability in any jurisdiction shall not invalidate or render unenforceable such provision in any other jurisdiction.

 

SECTION 6.06.                   
Separate Counterparts. This Sale Agreement may be executed by the parties hereto in separate counterparts, each of
which when so executed and delivered shall be an original, but all such counterparts shall together constitute but one and the
same instrument.

 

SECTION 6.07.                   
Headings. The headings of the various Articles and Sections herein are for convenience of reference only and shall
not define or limit any of the terms or provisions hereof.

 

SECTION 6.08.                   
Governing Law. This Sale Agreement shall be construed in accordance with
the laws of the State of Wisconsin, without reference to its conflict of law provisions, and the obligations, rights and remedies
of the parties hereunder shall be determined in accordance with such laws.

 

SECTION 6.09.                   
Assignment to Indenture Trustee. The Seller hereby acknowledges and consents to any mortgage, pledge, assignment
and grant of a security interest by the Issuer to the Indenture Trustee pursuant to the Indenture for the benefit of the Secured
Parties of all right, title and interest of the Issuer in, to and under this Sale Agreement, the Environmental Control Property
and the proceeds thereof and the assignment of any or all of the Issuer’s rights hereunder to the Indenture Trustee for the
benefit of the Secured Parties. For the avoidance of doubt, the Indenture Trustee is a third party beneficiary of this Sale Agreement
and is entitled to the rights and benefits hereunder and may enforce the provisions hereof as if it were a party hereto.

 

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SECTION 6.10.                   
Limitation of Liability. It is expressly understood and agreed by the parties hereto that this Sale Agreement is
executed and delivered by the Indenture Trustee, not individually or personally but solely as Indenture Trustee on behalf of the
Secured Parties, in the exercise of the powers and authority conferred and vested in it. The Indenture Trustee in acting hereunder
is entitled to all rights, benefits, protections, immunities and indemnities accorded to it under the Indenture.

 

SECTION 6.11.                   
Waivers. Any term or provision of this Sale Agreement may be waived, or the time for its performance may be extended,
by the party or parties entitled to the benefit thereof; provided, however, that no such waiver delivered by the
Issuer shall be effective unless the Indenture Trustee has given its prior written consent thereto. Any such waiver shall be validly
and sufficiently authorized for the purposes of this Sale Agreement if, as to any party, it is authorized in writing by an authorized
representative of such party, with prompt written notice of any such waiver to be provided to the Rating Agencies. The failure
of any party hereto to enforce at any time any provision of this Sale Agreement shall not be construed to be a waiver of such provision,
nor in any way to affect the validity of this Sale Agreement or any part hereof or the right of any party thereafter to enforce
each and every such provision. No waiver of any breach of this Sale Agreement shall be held to constitute a waiver of any other
or subsequent breach.

 

{REMAINDER OF PAGE INTENTIONALLY LEFT BLANK}

 

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IN WITNESS WHEREOF, the parties hereto have
caused this Sale Agreement to be duly executed by their respective officers as of the day and year first above written.

 

	 	WEPCO ENVIRONMENTAL TRUST FINANCE I, LLC
	 	as Issuer
	 	 
	 	 
	 	By:	 
	 	 	Name:	 
	 	 	Title:	 
	 	 
	 	 
	 	WISCONSIN ELECTRIC POWER COMPANY
	 	as Seller
	 	 
	 	 
	 	By:	 
	 	 	Name:	 
	 	 	Title:	 

 

	ACKNOWLEDGED AND ACCEPTED:	 
	 	 
	U.S. BANK, NATIONAL ASSOCIATION,

as Indenture Trustee	 
	
	 	 
	By:	 	 
	 	Name:	 	 
	 	Title:	 	 

 

Signature Page to Environmental Control
Property Purchase and Sale Agreement

 

    20

     

    

 

EXHIBIT A

 

FORM OF BILL OF SALE

 

See attached

 

    21

     

    

 

BILL OF SALE

 

This Bill of Sale is being delivered pursuant
to the Environmental Control Property Purchase and Sale Agreement, dated as of [________], 2021 (the “Sale Agreement”),
by and between Wisconsin Electric Power Company (the “Seller”) and WEPCo Environmental Trust Finance I, LLC
(the “Issuer”). All capitalized terms used but not otherwise defined herein shall have the respective meanings
ascribed to such terms in the Sale Agreement.

 

In consideration of the Issuer’s delivery
to or upon the order of the Seller of $[_______], the Seller does hereby irrevocably sell, assign and otherwise transfer to the
Issuer, without recourse or warranty, except as set forth in the Sale Agreement, all right, title and interest of the Seller in,
to and under the Environmental Control Property created or arising under the Financing Order dated November 17, 2020 issued by
the Public Service Commission of Wisconsin under the Statute (such sale, assignment and transfer of the Environmental Control Property
includes, to the fullest extent permitted by the Statute, the right to impose, collect and receive Environmental Control Charges
and the assignment of all revenues, collections, claims, rights, payments, money or proceeds of or arising from the Environmental
Control Charges related to the Environmental Control Property, as the same may be adjusted from time to time). Such sale, assignment
and transfer of the Environmental Control Property is hereby expressly stated to be a sale or other absolute transfer and, pursuant
to Section 196.027(5)(c) of the Statute and the Financing Order, shall constitute a sale and absolute transfer of all of the Seller’s
right, title and interest, in, to and under, and not a pledge of, or secured transaction relating to, the Seller’s right,
title and interest, in, to and under the Environmental Control Property. The preceding sentence is the statement referred to in
Section 196.027(5)(c) of the Statute. The Seller and the Issuer agree that after giving effect to the sale, assignment and transfer
contemplated hereby the Seller has no right, title or interest in, to or under the Environmental Control Property to which a security
interest could attach because (i) it has sold, assigned and transferred all right, title and interest in and to the Environmental
Control Property to the Issuer, and (ii) as provided in Section 196.027(5)(c) of the Statute, after such transfer the Environmental
Control Property is not subject to any claims of the Seller or the Seller’s creditors, other than creditors holding a prior
security interest in the Environmental Control Property perfected under Section 196.027(5)(b) of the Statute. If such sale, assignment
and transfer is held by any court of competent jurisdiction not to be an absolute transfer as provided in Section 196.027(5)(c)
of the Statute, then such sale, assignment and transfer shall be treated as a pledge of the Environmental Control Property and
as the creation of a security interest (within the meaning of the Statute and the applicable UCC) in the Environmental Control
Property and, without prejudice to its position that it has absolutely transferred all of its rights in the Environmental Control
Property to the Issuer, the Seller hereby grants a security interest in the Environmental Control Property to the Issuer (and to
the Indenture Trustee for the benefit of the Secured Parties) to secure their respective rights under the Basic Documents to receive
the Environmental Control Charges and all other Environmental Control Property.

 

The Issuer does hereby purchase the Environmental
Control Property from the Seller for the consideration set forth in the preceding paragraph.

 

    22

     

    

 

The Seller and the Issuer each acknowledge
and agree that the purchase price for the Environmental Control Property sold pursuant to this Bill of Sale and the Sale Agreement
is equal to its fair market value at the time of sale.

 

The Seller confirms that (i) each of the
representations and warranties on the part of the Seller contained in the Sale Agreement are true and correct in all respects on
the date hereof as if made on the date hereof and (ii) each condition precedent that must be satisfied under Section 2.02 of the
Sale Agreement has been satisfied upon or prior to the execution and delivery of this Bill of Sale by the Seller.

 

This Bill of Sale may be executed by the
parties hereto in separate counterparts, each of which when so executed and delivered shall be an original, but all such counterparts
shall together constitute but one and the same instrument.

 

This
Bill of Sale shall be construed in accordance with the laws of the State of Wisconsin, without reference to its conflict of law
provisions, and the obligations, rights and remedies of the parties hereunder shall be determined in accordance with such law.

 

    23

     

    

 

IN WITNESS WHEREOF, the Seller and the Issuer
have duly executed this Bill of Sale as of this [] day of [], 2021.

 

	 	WEPCO ENVIRONMENTAL TRUST FINANCE I, LLC,
	 	as Issuer
	 	 
	 	 
	 	By:	 
	 	 	Name:
	 	 	Title:
	 	 
	 	 
	 	WISCONSIN ELECTRIC POWER COMPANY,
	 	as Seller
	 	 
	 	 
	 	By:	 
	 	 	Name:
	 	 	Title:

 

    24

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