Document:

PE Transferred Environmental Control Property Sale Agreement

     

    Exhibit
      10.7

     

    EXECUTION
      COPY

    

     

    
      

    

     

     

     

     

     

    TRANSFERRED
      ENVIRONMENTAL CONTROL PROPERTY

    SALE
      AGREEMENT

    

    

    

    between

    

    PE
      ENVIRONMENTAL FUNDING LLC

    

    

    Issuer

     

    
 

     

    and

     

    

     

    PE
      RENAISSANCE FUNDING, LLC

     

    

     

    

     

    Seller

     

    

     

    Dated
      as
      of April 11, 2007

     

     

     

     

      
        

      

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
      	
                TABLE
                OF CONTENTS

            	 
	 	 	 
	 	 	 
	 	 	
               Page

            
	
               

              ARTICLE
                I

               

              Definitions

               

            	 
	
              Section
                1.01.

            	
              Definitions

            	
              3

            
	
              Section
                1.02.

            	
              Other
                Definitional Provisions

            	
              3

            
	
               

              ARTICLE
                II

               

              Conveyance
                of Transferred Environmental Control
                Property

               

            	 
	
              Section
                2.01.

            	
              Conveyance
                of Initial Transferred Environmental Control Property

            	
              4

            
	
              Section
                2.02.

            	
              Conveyance
                of Subsequent Transferred Environmental Control Property

            	
              5

            
	
              Section
                2.03.

            	
              Conditions
                to Conveyance of Transferred Environmental Control
                Property

            	
              5

            
	
               

              ARTICLE
                III

               

              Representations
                and Warranties of
                Seller

               

            	 
	
              Section
                3.01.

            	
              Organization
                and Good Standing

            	
              6

            
	
              Section
                3.02.

            	
              Due
                Qualification

            	
              6

            
	
              Section
                3.03.

            	
              Power
                and Authority

            	
              6

            
	
              Section
                3.04.

            	
              Binding
                Obligation

            	
              6

            
	
              Section
                3.05.

            	
              No
                Violation

            	
              7

            
	
              Section
                3.06.

            	
              No
                Proceedings

            	
              7

            
	
              Section
                3.07.

            	
              Approvals

            	
              7

            
	
              Section
                3.08.

            	
              The
                Transferred Environmental Control Property

            	
              7

            
	
              Section
                3.09.

            	
              The
                Statute and the Financing Order

            	
              8

            
	
              Section
                3.10.

            	
              State
                Pledge

            	
              8

            
	
              Section
                3.11.

            	
              The
                Environmental Control Property Rights

            	
              9

            
	
               

              ARTICLE
                IV

               

              Covenants
                of the Seller

               

            	 
	
              Section
                4.01.

            	
              Existence
                as a Limited Liability Company

            	
              9

            
	
              Section
                4.02.

            	
              No
                Liens or Conveyances

            	
              9

            
	
              Section
                4.03.

            	
              Delivery
                of Collections

            	
              10

            
	
              Section
                4.04.

            	
              Notice
                of Liens

            	
              10

            
	
              Section
                4.05.

            	
              Compliance
                with Law

            	
              10

            
	
              Section
                4.06.

            	
              Use
                of Proceeds

            	
              10

            
	
              Section
                4.07.

            	
              Covenants
                Related to Transferred Environmental Control Property

            	
              10

            
	
              Section
                4.08.

            	
              Notice
                of Indemnification Events

            	
              11

            

    

     

    
      
        
        

      

      
        i

        
          

        

      

      
        
        

      

    

     

    
      	
              Section
                4.09.

            	
              Protection
                of Title

            	
              11

            
	
              Section
                4.10.

            	
              Taxes

            	
              12

            
	
              Section
                4.11.

            	
              Notice
                of Breach

            	
              12

            
	
              Section
                4.12.

            	
              Termination

            	
              12

            
	
              Section
                4.13.

            	
              Further
                Covenants

            	
              12

            
	
               

              ARTICLE
                V

               

              The
                Seller

            	 
	
              Section
                5.01.

            	
              Liability
                of Seller; Indemnities

            	
              13

            
	
              Section
                5.02.

            	
              Merger
                or Consolidation of, or Assumption of the Obligations of,
                Seller

            	
              14

            
	
              Section
                5.03.

            	
              Limitation
                on Liability of Seller and Others

            	
              15

            
	
              Section
                5.04.

            	
              Opinions
                of Counsel

            	
              15

            
	
               

              ARTICLE
                VI

               

              Miscellaneous
                Provisions

               

            	 
	
              Section
                6.01.

            	
              Amendment

            	
              16

            
	
              Section
                6.02.

            	
              Notices

            	
              17

            
	
              Section
                6.03.

            	
              Assignment

            	
              18

            
	
              Section
                6.04.

            	
              Limitations
                on Rights of Others

            	
              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.

            	
              Nonpetition
                Covenant

            	
              18

            
	
              Section
                6.11.

            	
              Perfection

            	
              19

            
	
              Section
                6.12.

            	
              Limitation
                of Liability

            	
              19

            
	 	 	 

    

    Exhibit
      A    Form
      of
      Bill of Sale

    
      Exhibit
        B      Pending
        Litigation

      Appendix
        A   
Master
        Definitions

       

      
        
          
          

        

        
          ii

          
            

          

        

        
          
          

        

      

      TRANSFERRED
        ENVIRONMENTAL CONTROL PROPERTY SALE AGREEMENT dated as of April 11, 2007
        (as
        amended, restated, supplemented or otherwise modified from time to time,
        “this
        Agreement”),
        between PE ENVIRONMENTAL FUNDING LLC, a Delaware limited liability company
        (the
“Issuer”),
        and
        PE RENAISSANCE FUNDING, LLC, a Delaware limited liability company, and its
        successors in interest to the extent permitted hereunder, as Seller (the
        “Seller”).

       

      WHEREAS
        the Seller received a contribution from the Transferor of Environmental Control
        Property created pursuant to the Statute and the Financing Order;
        and

       

      WHEREAS
        the Issuer desires to purchase from time to time Transferred Environmental
        Control Property; and

       

      WHEREAS
        the Seller is willing to sell Transferred Environmental Control Property
        to the
        Issuer; and

       

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

       

      WHEREAS
        the Issuer, to secure its obligations under all Environmental Control Bonds
        and
        the Indenture, will pledge its right, title and interest in the Transferred
        Environmental Control Property to the Indenture Trustee for the benefit of
        the
        Environmental Control Bondholders; and

       

      WHEREAS
        the Issuer has determined that the transactions contemplated by the Basic
        Documents are in the best interest of the Issuer and its creditors and represent
        a prudent and advisable course of action that does not impair the rights
        and
        interests of the Issuer’s creditors; and 

       

      WHEREAS
        the PSCWV or its attorney will enforce this Agreement pursuant to the Financing
        Order for the benefit of Customers to the extent permitted by applicable
        Requirements of Law.

       

      NOW,
        THEREFORE, in consideration of the premises and the mutual covenants herein
        contained and intending to be legally bound hereby, the parties hereto agree
        as
        follows:

       

      ARTICLE
        I

       

      Definitions

       

      Section
        1.01.  Definitions. 
        Capitalized terms used but not otherwise defined herein have the meanings
        assigned to them in Appendix A of this Agreement.

       

      Section
        1.02.  Other
        Definitional Provisions.
         (a)
        The
        words “hereof”, “herein”, “hereunder” and words of similar import when used in
        this Agreement shall refer to this Agreement as a whole and not to any
        particular provision of this Agreement; Section, Schedule and Exhibit references
        contained in this Agreement are references to Sections, Schedules
        and

       

      
        
          
          

        

        
          3

          
            

          

        

        
          
          

        

      

       

      Exhibits
        in or to this Agreement unless otherwise specified; and the term “including”
shall mean “including without limitation”.

       

      (b)  The
        definitions contained in this Agreement are applicable to the singular as
        well
        as the plural forms of such terms and to the masculine as well as to the
        feminine and neuter genders of such terms.

       

      ARTICLE
        II

        

      Conveyance
        of Transferred Environmental Control Property

       

      Section
        2.01.  Conveyance
        of Initial Transferred Environmental Control Property.
         (a)
        In
        consideration of the Issuer’s delivery to or upon the order of the Seller of
        $112,408,504, subject to the conditions specified in Section
        2.03,
        the
        Seller, pursuant to a Bill of Sale, will irrevocably sell, transfer, assign,
        set
        over and otherwise convey to the Issuer, without recourse (subject to the
        obligations herein), all right, title and interest of the Seller in and to
        the
        Initial Transferred Environmental Control Property created pursuant to the
        Statute and in accordance with the Financing Order (such sale, transfer,
        assignment, set over and conveyance of the Initial Transferred Environmental
        Control Property will include, to the fullest extent permitted by the Statute,
        the assignment of all revenues, collections, claims, rights, payments, money
        or
        proceeds of or arising from the Environmental Control Charges related to
        the
        Initial Transferred Environmental Control Property, as the same may be adjusted
        from time to time). Such sale, transfer, assignment, set over and conveyance
        will be expressly stated to be a sale and, pursuant to
        Section 24-2-4e(m)(1) of the Statute, shall be treated as an absolute
        transfer of all of the Seller’s right, title and interest (as in a true sale),
        and not as a pledge or other secured transaction, of the Initial Transferred
        Environmental Control Property. The Seller and the Issuer agree and confirm
        that
        after giving effect to the sale contemplated by such Bill of Sale, the Seller
        has no rights in the Initial Transferred Environmental Control Property to
        which
        a security interest of creditors of the Seller could attach because it has
        sold
        all rights in the Initial Transferred Environmental Control Property to the
        Issuer pursuant to Section 24-2-4e(m)(1) of the Statute. If such sale, transfer,
        assignment, setting over and conveyance is held by any court of competent
        jurisdiction not to be a true sale as provided in Section 24-2-4e(m)(1) of
        the Statute, then such sale, transfer, assignment, setting over and conveyance
        shall be treated as a pledge of the Initial Transferred Environmental Control
        Property and as the creation of a security interest (within the meaning of
        the
        Statute and the UCC) in the Initial Transferred Environmental Control Property
        and, without prejudice to its position that it has absolutely transferred
        all of
        its rights in the Initial Transferred Environmental Control Property to the
        Issuer, the Seller hereby grants a security interest in the Initial Transferred
        Environmental Control Property to the Issuer (and, to the extent necessary
        to
        qualify the grant as a security interest under the Statute and the UCC, to
        the
        Indenture Trustee for the benefit of the Environmental Control Bondholders
        to
        secure the right of the Issuer under the Basic Documents to receive the
        Environmental Control Charges and all other Transferred Environmental Control
        Property).

       

      (b)  Subject
        to the conditions specified in Section
        2.03,
        the
        Issuer, pursuant to a Bill of Sale, will purchase the Initial Transferred
        Environmental Control Property from the Seller for the consideration set
        forth
        in paragraph (a) above.

       

      
        
          
          

        

        
          4

          
            

          

        

        
          
          

        

      

       

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

       

      Section
        2.02.  Conveyance
        of Subsequent Transferred Environmental Control Property.
         The Seller may from time to time offer to sell additional Transferred
        Environmental Control Property to the Issuer, subject to the conditions
        specified in Section
        2.03.
        If any
        such offer is accepted by the Issuer, such Subsequent Transferred Environmental
        Control Property shall be sold to the Issuer effective on the Subsequent
        Sale
        Date specified in the related Addition Notice, subject to the satisfaction
        or
        waiver of the conditions specified in Section
        2.03.

       

      Section
        2.03.  Conditions
        to Conveyance of Transferred Environmental Control Property. 
        The Seller shall be permitted to sell Transferred Environmental Control Property
        to the Issuer only upon the satisfaction or waiver of each of the following
        conditions:

       

      (i)  on
        or
        prior to the Initial Sale Date or Subsequent Sale Date, as applicable, the
        Seller shall have delivered to the Issuer a duly executed Bill of Sale
        identifying the Transferred Environmental Control Property to be conveyed
        on
        that date;

       

      (ii)  as
        of the
        Initial Sale Date or the Subsequent Sale Date, as applicable, the Seller
        was 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;

       

      (iii)  as
        of the
        Initial Sale Date or the Subsequent Sale Date, as applicable, no breach by
        the
        Seller of its representations, warranties or covenants in this Agreement
        shall
        exist; no Servicer Default shall have occurred and be continuing; and no
        breach
        by the Transferor of its representations and warranties in the Transfer
        Agreement shall exist;

       

      (iv)  as
        of the
        Initial Sale Date or the Subsequent Sale Date, as applicable, (A) the Issuer
        shall have sufficient funds available to pay the purchase price for the
        Transferred Environmental Control Property to be conveyed on such date and
        (B)
        all conditions to the issuance of one or more Series of Environmental Control
        Bonds intended to provide such funds set forth in the Indenture shall have
        been
        satisfied or waived;

       

      (v)  on
        or
        prior to the Initial Sale Date or the Subsequent Sale Date, as applicable,
        the
        Seller shall have taken all action required to transfer to the Issuer ownership
        of the Transferred Environmental Control Property to be conveyed on such
        date,
        free and clear of all Liens other than Liens created pursuant to the Basic
        Documents; and the Issuer or the Servicer, on behalf of the Issuer, shall
        have
        taken any action required for the Issuer to grant the Indenture Trustee a
        first
        priority perfected security interest in the Collateral and maintain such
        security interest as of such date;

       

      (vi)  in
        the
        case of a sale of Subsequent Transferred Environmental Control Property only,
        on
        or prior to such Subsequent Sale Date, the Seller shall have provided the
        Issuer
        and the Rating Agencies with a timely Addition Notice;

       

      
        
          
          

        

        
          5

          
            

          

        

        
          
          

        

      

       

      (vii)  the
        Seller shall have delivered to the Rating Agencies and the Issuer (A) an
        Opinion
        of Counsel with respect to the transfer of the Transferred Environmental
        Control
        Property then being conveyed to the Issuer and (B) the Opinion of Counsel
        required by Section
        5.04(a);

       

      (viii)  the
        Seller shall have delivered to the Indenture Trustee and the Issuer an Officers’
Certificate confirming the satisfaction of each condition precedent specified
        in
        this Section
        2.03;
        and

       

      (ix)  the
        Seller shall have received the purchase price set forth in Section
        2.01(a).

       

      ARTICLE
        III  

       

      Representations
        and Warranties of Seller

       

      As
        of the
        Initial Sale Date and as of any Subsequent Sale Date, as applicable, the
        Seller
        makes the following representations and warranties on which the Issuer has
        relied and will rely in acquiring Transferred Environmental Control Property.
        The Seller agrees and acknowledges that the following representations and
        warranties are also for the benefit of the Indenture Trustee, as collateral
        assignee of the Issuer pursuant to the Indenture. The representations and
        warranties shall survive the sale of Transferred Environmental Control Property
        to the Issuer and the pledges and assignments thereof permitted
        hereby.

       

      Section
        3.01.  Organization
        and Good Standing.
         The Seller is a limited liability company duly organized, validly existing
        and in good standing under the laws of the State of Delaware, with limited
        liability company power and authority to own its properties and conduct its
        business.

       

      Section
        3.02.  Due
        Qualification. 
        The Seller is duly qualified to do business as a foreign limited liability
        company in good standing, and has obtained all necessary licenses and approvals,
        in all foreign 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 limited liability company power and authority
        to execute and deliver this Agreement and to carry out its terms; the Seller
        has
        full limited liability company power and authority to own the Environmental
        Control Property and sell and assign the Initial Transferred Environmental
        Control Property, in the case of the Initial Sale Date, and the Subsequent
        Transferred Environmental Control Property, in the case of each Subsequent
        Sale
        Date, as applicable, and the Seller has duly authorized such sale and assignment
        to the Issuer by all necessary limited liability company action; and the
        execution, delivery and performance of this Agreement has been duly authorized
        by the Seller by all necessary limited liability company action.

       

      Section
        3.04.  Binding
        Obligation.
         This Agreement constitutes a legal, valid and binding obligation of the
        Seller enforceable against the Seller in accordance with its terms, subject
        to

       

      
        
          
          

        

        
          6

          
            

          

        

        
          
          

        

      

       

      bankruptcy,
        receivership, insolvency, fraudulent transfer, reorganization, moratorium
        or
        other laws relating to or affecting creditors’ rights generally from time to
        time in effect and to general principles of equity (regardless of whether
        considered in a proceeding in equity or at law).

       

      Section
        3.05.  No
        Violation.
         The consummation of the transactions contemplated by this Agreement does
        not conflict with the organizational documents of the Seller, or any indenture,
        or other agreement or instrument to which the Seller is a party or by which
        it
        is bound; 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 may be granted under the Basic Documents or any Liens
        created by the Issuer pursuant to the Financing Order) or violate any
        Requirements of Law applicable to the Seller or its properties.

       

      Section
        3.06.  No
        Proceedings.
         There are no proceedings or investigations pending or, to the Seller’s
        knowledge, threatened, before any court, federal or state regulatory body,
        administrative agency or other governmental instrumentality having jurisdiction
        over the Seller or its properties (i) asserting the invalidity of the Basic
        Documents, the Environmental Control Bonds, the Statute or the Financing
        Order,
        (ii) seeking to prevent the issuance of the Environmental Control Bonds or
        the
        consummation of any of the transactions contemplated by the Basic Documents
        (iii) challenging the Seller’s treatment of the Environmental Control Bonds as
        debt of the Seller for federal and state tax purposes, or (iv) except as
        described in Exhibit B, 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
        Basic
        Documents, the Environmental Control Bonds or the Financing Order. 

       

      Section
        3.07.  Approvals.
         Except for UCC filings or filings under the Statute, no approval,
        authorization, consent, order or other action of, or filing with, any court,
        federal or state regulatory body, administrative agency or other governmental
        instrumentality is required in connection with the execution and delivery
        by the
        Seller of this 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.

       

      Section
        3.08.  The
        Transferred Environmental Control Property.

       

      (a)  All
        information provided by the Seller to the Issuer in writing with respect
        to the
        Transferred Environmental Control Property is correct in all material
        respects.

       

      (b)  The
        transfer, sale, assignment and conveyance of the Transferred Environmental
        Control Property constitutes a sale or other absolute transfer of all of
        the
        Seller’s right, title and interest in the Initial Transferred Environmental
        Control Property or the Subsequent Transferred Environmental Control Property,
        as the case may be, to the Issuer, and, upon the execution of this Agreement,
        Seller will have no right, title or interest in the Initial Transferred
        Environmental Control Property or the Subsequent Transferred Environmental
        Control Property, as the case may be, and the Initial Transferred Environmental
        Control Property or the Subsequent Transferred Environmental Control Property,
        as the case may be, would not be part of the estate of the Seller as debtor
        in
        the event of a filing of a bankruptcy petition.

       

      
        
          
          

        

        
          7

          
            

          

        

        
          
          

        

      

       

      (c)  The
        Seller is the sole owner of the Transferred Environmental Control Property
        sold
        to the Issuer on the Initial Sale Date or Subsequent Sale Date, as applicable,
        and such sale has been made free and clear of all Liens other than Liens
        created
        by the Issuer pursuant to the Indenture. All actions or filings, including
        filings with the Secretary of State of West Virginia under the Statute and
        UCC
        and with the Delaware Secretary of State under the Delaware UCC, necessary
        to
        give the Issuer a valid first priority perfected ownership interest in the
        Transferred Environmental Control Property and to grant the Indenture Trustee
        a
        first priority perfected ownership interest in the Transferred Environmental
        Control property, free and clear of all Liens of the Seller or anyone claiming
        through the Seller have been made.

       

      Section
        3.09.  Solvency
        of Seller.
        After
        giving effect to the sale of any Transferred 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 purposes, (iii) is not engaged
        in
        nor does it expect to engage in a business for which its remaining property
        represents an unreasonably small amount of 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 believe that it
        will
        incur, indebtedness that it will not be able to repay at its
        maturity.

       

      Section
        3.10.  The
        Statute and the Financing Order.

       

      (a)  The
        Financing Order has been issued by the PSCWV in accordance with the Statute
        and
        in compliance with all applicable Requirements of Law. The Financing Order
        became effective pursuant to the Statute, is in full force and effect and
        is
        final and nonappealable

       

      (b)  The
        Environmental Control Bonds are entitled to the protections provided by the
        Statute, the Financing Order is not subject to impairment, and the rights
        to
        impose, collect and adjust the Environmental Control Charges are irrevocable
        and
        not subject to impairment or adjustment, except for the periodic True-Up
        Adjustments to the Environmental Control Charges provided for in the Financing
        Order.

       

      Section
        3.11.  State
        Pledge.

       

      (a)  The
        State
        of West Virginia may not take or permit any action which would impair the
        value
        of the Environmental Control Property or reduce or alter, except for periodic
        True-Up Adjustments allowed under the Financing Order, or impair the
        Environmental Control Charges to be imposed, collected or remitted for the
        benefit of Environmental Control Bondholders, until all principal, interest
        or
        other charges incurred or contracts to be performed in connection with the
        Environmental Control Bonds are paid or performed in full.

       

      (b)  The
        State
        of West Virginia, including the PSCWV, cannot take any action that substantially
        impairs the rights of the Environmental Control Bondholders unless such action
        is reasonable exercise of the State of West Virginia’s sovereign powers and of a
        character to further a legitimate public purpose. Under the takings clauses
        of
        the West Virginia Constitution and the United States Constitution, the state
        cannot repeal or amend the Statute in contravention of the State Pledge,
        as
        described in Section
        3.10(a),
        unless
        just compensation, as determined by a court of competition jurisdiction,
        is
        provided to the Environmental Control Bondholders; but

       

      
        
          
          

        

        
          8

          
            

          

        

        
          
          

        

      

       

      nothing
        in this paragraph precludes any limitation or alteration of the rights of
        the
        Environmental Control Bondholders if full compensation is made by law for
        the
        full protection of the Environmental Control Charges and of the Environmental
        Control Bondholders or any assignee or party entering into a contract with
        the
        Seller.

       

      (c)  There
        is
        no order by a court providing for the limitation or other impairment of the
        Statute, Financing Order, Environmental Control Property or Environmental
        Control Charges, or any rights arising under them, or that seeks to enjoin
        the
        performance of any obligations under the Financing Order which is materially
        adverse to the position of the Environmental Control Bondholders.

       

      (d)  The
        voters of the State of West Virginia have no right of referendum or initiative
        to amend, repeal or revoke the Statute in a manner that would impair the
        security of the Environmental Control Bondholders.

       

      Section
        3.12.  The
        Environmental Control Property Rights.

       

      (a)  The
        Environmental Control Property constitutes a present property right that
        will
        continue to exist until the Environmental Control Bonds are paid in full
        and the
        financing costs associated with the Environmental Control Bonds have been
        recovered in full.

       

      (b)  The
        Environmental Control Property consists of (a) the irrevocable right of the
        Seller under the Financing Order to impose, collect and receive Environmental
        Control Charges in the amount necessary to provide for full recovery of
        principal and interest on the Environmental Control Bonds, together with
        the
        Financing Costs; (b) the right under the Financing Order to obtain periodic
        True-Up Adjustments of the Environmental Control Charges and (c) all proceeds
        arising out of the rights and interests described in (a) and (b). The
        Environmental Control Property does not include any right to any revenues,
        collections, claims, rights, payments, money or proceeds of or arising from
        certain tax charges.

       

      ARTICLE
        IV  

       

      Covenants
        of the Seller

       

      Section
        4.01.  Existence
        as a Limited Liability Company. 
        Subject to Section
        5.02,
        so long
        as Environmental Control Bonds of any Series remain Outstanding, the Seller
        will
        keep in full force and effect its existence as a limited liability company
        and
        remain in good standing, in each case under the laws of the jurisdiction
        of its
        formation, and will obtain and preserve its qualification to do business
        in each
        jurisdiction in which such qualification is or shall be necessary to protect
        the
        validity and enforceability of this Agreement and each other instrument or
        agreement to which the Seller is a party necessary to the proper administration
        of this Agreement and the transactions contemplated hereby.

       

      Section
        4.02.  No
        Liens or Conveyances.
         Except for the conveyances hereunder, 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 Transferred Environmental Control
        Property, whether now existing or hereafter created, or any interest therein.
        The Seller shall not at any time assert any Lien against or with respect
        to any
        Transferred Environmental Control Property, and shall

       

      
        
          
          

        

        
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      defend
        the right, title and interest of the Issuer and the Indenture Trustee, as
        collateral assignee of the Issuer, in, to and under the Transferred
        Environmental Control Property, whether now existing or hereafter created,
        against all claims of third parties claiming through or under the
        Seller.

       

      Section
        4.03.  Delivery
        of Collections.
         If the Seller receives collections in respect of the Environmental Control
        Charges, or in respect of the Environmental Control Property or the
        proceeds thereof, the Seller agrees to pay the Servicer all estimated
        collections received by the Seller in respect thereof as soon as practicable
        after receipt is known by the Seller, but in no event later than two Business
        Days after such receipt is known by the Seller, and
        the
        Seller shall reconcile such estimated amounts with the Servicer within 25
        Business Days after the estimated collections are paid to the
        Servicer.

       

      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 Environmental Control Property other
        than the conveyances hereunder or under the Transfer Agreement, the Indenture
        or
        the other Basic Documents.

       

      Section
        4.05.  Compliance
        with Law.
         The Seller hereby agrees to materially comply with its organizational or
        governing documents and all Requirements of Law applicable to the Seller,
        except
        to the extent that failure to so comply would not have a material adverse
        affect
        on the Issuer’s or the Indenture Trustee’s interests in the Transferred
        Environmental Control Property or under any of the Basic Documents, the timing
        or amount of Environmental Control Charges payable by customers or the Seller’s
        performance of its material obligations hereunder or under any of the other
        Basic Documents to which it is a party.

       

      Section
        4.06.  Use
        of
        Proceeds.
         The Seller will use the proceeds of the sale of the Transferred
        Environmental Control Property in accordance with the Financing
        Order.

       

      Section
        4.07.  Covenants
        Related to Transferred Environmental Control Property.
        

       

      (a)  So
        long
        as Environmental Control Bonds of any Series remain Outstanding, the Seller
        shall treat the Environmental Control Bonds as debt of the Seller for federal
        income tax purposes to the extent permitted by applicable Requirements of
        Law.

       

      (b)  So
        long
        as Environmental Control Bonds of any Series remain Outstanding, the Seller
        shall (i) treat the Environmental Control Bonds as the debt of the Issuer,
        except for financial accounting or tax purposes, (ii) clearly disclose in
        its
        financial statements that it is not the owner of the Transferred Environmental
        Control Property and that the assets of the Issuer are not available to pay
        creditors of the Seller or any of its Affiliates, (iii) not own or purchase
        any
        Environmental Control Bonds, and (iv) clearly disclose the effects of all
        transactions between the Seller and the Issuer in accordance with
        GAAP.

       

      (c)  The
        Seller agrees that upon the sale by the Seller of the Transferred Environmental
        Control Property to the Issuer pursuant to a Bill of Sale, (i) to the fullest
        extent permitted by applicable Requirements of Law, the Issuer shall have
        all of
        the rights originally held by the Seller with respect to the Transferred
        Environmental Control Property, including the

       

      
        
          
          

        

        
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      right
        to
        collect any amounts payable by any Customer or Third Party in respect of
        such
        Transferred Environmental Control Property, notwithstanding any objection
        or
        direction to the contrary by the Seller and (ii) any payment by any Customer
        or
        Third Party to the Issuer shall discharge such Customer’s or such Third Party’s
        obligations in respect of such Transferred Environmental Control Property
        to the
        extent of such payment, notwithstanding any objection or direction to the
        contrary by the Seller.

       

      (d)  So
        long
        as Environmental Control Bonds of any Series remain Outstanding, the Seller
        (i)
        in all proceedings relating directly or indirectly to the Transferred
        Environmental Control Property, will affirmatively certify and confirm that
        it
        has sold all of its rights and interests in and to the Transferred Environmental
        Control Property (other than for financial accounting or tax purposes), (ii)
        shall not make any statement or reference in respect of the Transferred
        Environmental Control Property that is inconsistent with the ownership thereof
        by the Issuer (other than for financial accounting or tax purposes), (iii)
        will
        not take any action in respect of the Transferred Environmental Control Property
        except as contemplated by the Basic Documents and (iv) will not sell
        Environmental Control Property under a Subsequent Financing Order in connection
        with the issuance of additional series of Environmental Control Bonds unless
        the
        Rating Agency Condition has been satisfied.

       

      Section
        4.08.  Notice
        of Indemnification Events. 
         The Seller shall deliver to the Issuer and the Indenture Trustee promptly
        after having obtained knowledge thereof, written notice in an Officers’
Certificate of any Indemnification Event or any event which, with the giving
        of
        notice or the passage of time, would become an Indemnification
        Event.

       

      Section
        4.09.  Protection
        of Title.
        

       

      (a)  The
        Seller shall execute and file such filings, including filings with the PSCWV
        pursuant to the Statute and the Financing Order, and cause to be executed
        and
        filed such filings, all in such manner and in such places as may be required
        by
        applicable Requirements of Law fully to preserve, maintain, and protect the
        interests of the Issuer, the Indenture Trustee and the Environmental Control
        Bondholders in the Transferred Environmental Control Property, including
        all
        filings required under the Statute relating to the transfer of the ownership
        or
        security interest in the Transferred Environmental Control Property by the
        Seller to the Issuer.

       

      (b)  The
        Seller shall deliver (or cause to be delivered) to the Issuer file-stamped
        copies of, or filing receipts for, any document filed as provided above,
        as soon
        as available following such filing. 

       

      (c)  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, as may be reasonably necessary (i) to protect
        the Issuer, the Indenture Trustee and the Environmental Control Bondholders
        from
        claims, state actions or other actions or proceedings of third parties which,
        if
        successfully pursued, would result in a breach of any representation or warranty
        set forth in Article III or (ii) 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 Transferred Environmental Control Property by
        legislative enactment or

       

      
        
          
          

        

        
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      constitutional
        amendment that would be materially adverse to the holders of Transferred
        Environmental Control Property. 

       

      (d)  The
        Seller will institute any action or proceeding necessary to compel performance
        by the PSCWV, the State of West Virginia or any of their respective agents
        of
        any of their obligations or duties under the Statute, any Financing Order
        or any
        Issuance Advice Letter. The Seller will comply with all filing requirements,
        including any post closing filings, in accordance with the Financing
        Order.

       

      The
        costs
        of any action described in this Section
        4.09
        shall be
        payable from the Collection Account as an Operating Expense in accordance
        with
        Section 8.02(e) of the Indenture. The Seller’s obligations pursuant to this
Section
        4.09
        shall
        survive and continue notwithstanding that payment of such Operating Expense
        may
        be delayed pursuant to the terms of the Indenture it being understood that
        the
        Seller may be required initially to advance its own fund to satisfy its
        obligations hereunder).

       

      Section
        4.10.  Taxes.
         So long as any of the Environmental Control Bonds are Outstanding, the
        Seller shall, and shall cause each of its subsidiaries to, pay all material
        taxes, including 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
        Transferred 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
        4.11.  Notice
        of Breach.
         Promptly after obtaining knowledge of any breach in any material respect
        of its representations and warranties in this Agreement, the Seller will
        notify
        the Issuer and the Rating Agencies of the breach.

       

      Section
        4.12.  Termination.
         Even if this Agreement or the Indenture is terminated, the Seller will
        not, prior to the date which is one year and one day after the termination
        of
        the Indenture, petition or otherwise invoke or cause the Issuer to invoke
        the
        process of any court or Governmental Authority for the purpose of commencing
        or
        sustaining an involuntary case against the Issuer or any substantial part
        of the
        Issuer’s property under any federal or state bankruptcy, insolvency or similar
        law, appointing a receiver, liquidator, assignee, trustee, custodian,
        sequestrator or other similar official, or ordering the winding up or
        liquidation of the Issuer’s affairs.

       

      Section
        4.13.  Further
        Covenants.
         Upon the Issuer’s request, the Seller will execute and deliver such
        further instruments and do such further acts as may be necessary to carry
        out
        more effectively the provisions and purposes of this Agreement.

       

      
        
          
          

        

        
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      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
        Agreement.

       

      (b)  The
        Seller shall indemnify the Issuer and the Indenture Trustee, for itself and
        on
        behalf of the Environmental Control Bondholders and each of their respective
        affiliates, members, managers, officers, directors, employees and agents,
        and
        defend and hold harmless each such Person from and against, any and all taxes
        (other than any taxes imposed on Environmental Control Bondholders solely
        as a
        result of their ownership of Environmental Control Bonds) that may at any
        time
        be imposed on or asserted against any such Person under existing law as of
        the
        Initial Sale Date or Subsequent Sale Date as a result of (i) the sale and
        assignment of the Environmental Control Property to the Issuer, (ii) the
        acquisition or holding of the Environmental Control Property by the Issuer
        or
        (iii) the issuance and sale of the Environmental Control Bonds by the Issuer,
        including any sales, gross receipts, general corporation, single business,
        personal property, privilege, franchise 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 Control Bonds, it being understood
        that the Environmental Control Bondholders 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.

       

      (c)  The
        Seller shall indemnify the Issuer, the Indenture Trustee, for itself and
        on
        behalf of the Environmental Control Bondholders, and each of their respective
        affiliates, members, managers, officers, directors, employees and agents,
        and
        defend and hold harmless each such Person from and against, (i) any and all
        amounts of principal of and interest on the Environmental Control Bonds not
        paid
        when due or when scheduled to be paid in accordance with their terms, (ii)
        the
        amount of any deposits to the Issuer required to have been made in accordance
        with the terms of the Basic Documents or any Financing Order which are not
        made
        when so required, and (iii) any and all other liabilities, obligations, losses,
        claims, damages, payment, costs or expenses incurred by any of these persons,
        in
        each case as a result of the Seller’s breach of any of its representations,
        warranties or covenants contained in this Agreement; each of which the Seller
        will have a 30-day opportunity to cure upon notice from us of a material
        breach
        of a covenant.

       

      (d)  The
        Seller shall indemnify the Issuer, the Indenture Trustee, for itself and
        on
        behalf of the Environmental Control Bondholders, and each of their respective
        affiliates, members, managers, officers, directors, employees and agents,
        and
        defend and hold harmless each such Person from and against, any and all Losses
        that may be imposed on, incurred by or asserted against any such Person as
        a
        result of (x) the Seller’s willful misconduct, bad faith or negligence in the
        performance of its duties or observance of its covenants under this Agreement,
        (y) the Seller’s reckless disregard of its obligations and duties under this
        Agreement or the Transferor’s reckless disregard of its obligations and duties
        under the Transfer Agreement or (z)

       

      
        
          
          

        

        
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      the
        Seller’s breach of any of its representations or warranties contained in this
        Agreement or the Transferor’s breach of any of its representations or warranties
        contained in the Transfer Agreement (any event described in any of the foregoing
        clauses (x), (y) or (z), an “Indemnification
        Event”).
        Amounts on deposit in the Excess Funds Subaccount and the Capital Subaccount
        shall not be available to satisfy any Losses for which indemnification is
        provided in this Agreement.

       

      (e)  The
        Seller also will indemnify the PSCWV, for the benefit of Customers, for any
        and
        all Losses, including but not limited to Losses in the form of higher
        Environmental Control Charges, that Customers may incur by reason of
        (i) any failure of the Seller’s representations or warranties in this
        Agreement, (ii) any breach of the Seller’s covenants in this Agreement,
        (iii) any failure of the Transferor’s representations in the Transfer
        Agreement or (iv)  breach of the Transferor’s covenants in the Transfer
        Agreement. 

       

      (f)  The
        Seller shall indemnify the Indenture Trustee its officers, directors and
        agents
        for, and defend and hold harmless each such Person from and against, any
        and all
        Losses that may be imposed upon, incurred by or asserted against any such
        Person
        as a result of the acceptance or performance of the trusts and duties contained
        herein and in the Basic Documents to which the Indenture Trustee is a party,
        except to the extent that any such Loss shall be due to the willful misfeasance,
        bad faith or negligence of the Indenture Trustee. Such amounts shall be
        deposited into the Collection Account and distributed in accordance with
        the
        Indenture.

       

      (g)  The
        Seller’s indemnification obligations under Sections
        5.01(b), (c), (d) and (f)
        for
        events occurring prior to the removal or resignation of the Indenture Trustee
        or
        the termination of this Agreement shall survive the resignation or removal
        of
        the Indenture Trustee or the termination of this Agreement and shall include
        reasonable fees and expenses of investigation and litigation (including the
        Indenture Trustee’s reasonable attorney’s fees and expenses) and will rank in
        priority with other general, unsecured obligations of the Seller. Any amounts
        indemnified by the Seller pursuant to its obligations under Sections
        5.01(b), (c), (d) or (f)
        shall be
        deposited into the Collection Account and distributed in accordance with
        the
        Indenture. The Seller shall not indemnify any party under this Section
        5.01
        for any
        changes in law after the Initial Sale Date or the Subsequent Sale Date, as
        applicable. 

       

      Section
        5.02.  Merger
        or Consolidation of, or Assumption of the Obligations of, Seller.
         Any Person (a) into which the Seller may be merged or consolidated or
        which succeeds to all or the majority of the Seller’s electric distribution
        business, (b) which results from the division of the Seller into two or more
        Persons and which succeeds to all or the majority of the Seller’s electric
        distribution business, (c) which may result from any merger or consolidation
        to
        which the Seller shall be a party and which succeeds to all or the majority
        of
        the Seller’s electric distribution business, or (d) which may succeed to the
        properties and assets of the Seller substantially as a whole and which succeeds
        to all or the majority of the Seller’s electric distribution business, which
        Person in any of the foregoing cases executes an agreement of assumption
        to
        perform every obligation of the Seller under this Agreement, shall be the
        successor to the Seller hereunder without the execution or filing of any
        document or any further act by any of the parties to this Agreement; provided,
        however, that (i) immediately after giving effect to such transaction, no
        representation or warranty made pursuant to Article III shall have been breached
        and no Servicer Default, and no event that, after notice or lapse of time,
        or
        both,

       

      
        
          
          

        

        
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      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 Officers’
Certificate and an Opinion of Counsel each stating that such consolidation,
        merger or succession and such agreement of assumption comply with this Section
        and that all conditions precedent, if any, provided for in this Agreement
        relating to such transaction have been complied with, (iii) the Rating Agencies
        shall have received prior written notice of such transaction, (iv) the Seller
        shall have delivered to the Issuer and the Indenture Trustee an Opinion of
        Counsel either (A) stating that, in the opinion of such counsel, all filings,
        including filings by the Seller with the PSCWV pursuant to the Statute and
        UCC
        filings, have been executed and filed that are necessary fully to preserve
        and
        protect the interest of the Issuer in the Transferred 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 preserve and
        protect such interests and (v) the Seller shall have delivered to the Issuer
        and
        the Indenture Trustee an Opinion of Counsel from independent tax counsel
        stating
        to the effect that, for the federal income tax purposes, such consolidation,
        merger or succession to, and assumption of, the obligations of the Seller
        will
        not result in a material adverse federal income tax consequence to the Issuer,
        the Seller, the Indenture Trustee or the Environmental Control Bondholders.
        Notwithstanding anything herein to the contrary, the execution of the above
        described agreement of assumption and compliance with clauses (i), (ii),
        (iii)
        and (iv) above shall be conditions precedent to the consummation of any
        transaction referred to in clauses (a), (b), (c) or (d) above.

       

      Section
        5.03.  Limitation
        on Liability of Seller and Others.
         The Seller and any director or officer or 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
        4.08,
        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 Agreement,
        and
        that in its opinion may involve it in any expense or liability. The Seller
        will
        not be liable for any Losses resulting solely from a downgrade in the ratings
        on
        the Environmental Control Bonds or any consequential, incidental or indirect
        damages, including any loss of market value of the Environmental Control
        Bonds,
        resulting from any downgrade of the ratings of the Environmental Control
        Bonds.

       

      Section
        5.04.  Opinions
        of Counsel.
         The Seller shall deliver to the Issuer and the Indenture Trustee: (a)
        promptly after the execution and delivery of this Agreement and of each
        amendment hereto or to the Servicing Agreement and on each Subsequent Sale
        Date,
        an Opinion of Counsel either (i) to the effect that, in the opinion of such
        counsel, all filings, including filings with the PSCWV pursuant to the Statute,
        that are necessary to fully preserve and protect the interests of the Issuer
        in
        the Transferred Environmental Control Property have been executed and filed,
        and
        reciting the details of such filings or referring to prior Opinions of Counsel
        in which such details are given, or (ii) to the effect that, in the opinion
        of
        such counsel, no such action shall be necessary to preserve and protect such
        interest; and (b) within 90 days after the beginning of each calendar year
        beginning with the first calendar year beginning more than three months after
        the Initial Sale Date, an Opinion of Counsel, dated as of a date during such
        90-day period, either (i) to the effect that, in the opinion of such counsel,
        all filings with the PSCWV or otherwise pursuant to the Statute, have been
        executed and filed that are necessary to preserve fully and protect fully
        the
        interest of the Issuer in the Transferred Environmental Control Property,
        and
        reciting the details of such filings or referring to prior Opinions of Counsel
        in

       

      
        
          
          

        

        
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      which
        such details are given, or (ii) to the effect that, in the opinion of such
        counsel, no such action shall be necessary to preserve and protect such
        interest. Each Opinion of Counsel referred to in clause (a) or (b) above
        shall
        specify any action necessary (as of the date of such opinion) to be taken
        in the
        following year to preserve and protect such interest.

       

      ARTICLE
        VI  

       

      Miscellaneous
        Provisions

       

      Section
        6.01.  Amendment..
        

       

      (a)  Subject
        to Section
        6.01(b)
        below,
        this Agreement may be amended by the Seller and the Issuer, with the prior
        written consent of the Indenture Trustee and the satisfaction of the Rating
        Agency Condition. Promptly after the execution of any such amendment and
        consent, the Issuer shall furnish written notification of the substance of
        such
        amendment or consent to each of the Rating Agencies. Prior to the execution
        of
        any amendment to this Agreement, the Issuer and the Indenture Trustee shall
        be
        entitled to receive and rely upon an Opinion of Counsel stating that the
        execution of such amendment is authorized or permitted by this Agreement
        and the
        Opinion of Counsel referred to in Section 3.10 of the Servicing Agreement.
        Subject to paragraph (b) below, the Issuer and the Indenture Trustee may,
        but
        shall not be obligated to, enter into any such amendment which affects their
        own
        rights, duties or immunities under this Agreement or otherwise.

       

      (b)  Notwithstanding
        anything to the contrary in Section
        6.01(a),
        no
        amendment or modification of this Agreement shall be effective except upon
        satisfaction of the conditions precedent in this Section
        6.01(b).

       

      (i)  PSCWV
        Condition.
        At
        least 16 days prior to the effectiveness of any such amendment or
        modification, and after obtaining the other necessary approvals set forth
        in
Section 6.01(a),
        except
        for the consent of the Indenture Trustee and the Environmental Control
        Bondholders if the consent of the Environmental Control Bondholders is required
        or sought by the Indenture Trustee in connection with such amendment or
        modification, the Issuer shall have delivered to the PSCWV’s executive director
        and general counsel written notification of any proposed amendment or
        modification, which notification shall contain:

       

      (A)  a
        reference to Case Nos. 05-0402-E-CN and 05-0750-E-PC and any other case
        number under which a Financing Order has been issued;

       

      (B)  an
        Officer’s Certificate stating that the proposed amendment or modification has
        been approved by all parties to this Agreement; and

       

      (C)  a
        statement identifying the person to whom the PSCWV is to address any response
        to
        the proposed amendment or to request additional time.

       

      (ii)  The
        PSCWV
        or its authorized representative shall, within 15 days of receiving the
        notification complying with Section
        6.01(b)(i)
        above,
        either:

       

      
        
          
          

        

        
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      (A)  provide
        notice of its determination that the proposed amendment or modification will
        not
        under any circumstances have the effect of increasing the ongoing qualified
        costs related to the Environmental Control Bonds,

       

      (B)  provide
        notice of its consent or lack of consent to the person specified in Section
        6.01(b)(i)(C)
        above,
        or

       

      (C)  be
        conclusively deemed to have consented to the proposed amendment or
        modification,

       

      unless,
        within 15 days of receiving the notification complying with Section
        6.01(b)(i)
        above,
        the PSCWV or its authorized representative delivers to the office of the
        person
        specified in Section
        6.01(b)(i)(C)
        above
        with a written statement requesting an additional amount of time not to exceed
        15 days in which to consider whether to consent to the proposed amendment
        or
        modification. If the PSCWV or its authorized representative requests an
        extension of time in the manner set forth in the preceding sentence, then
        the
        PSCWV shall either provide notice of its consent or lack of consent or notice
        of
        its determination that the proposed amendment or modification will not under
        any
        circumstances increase ongoing qualified costs to the person specified in
        Section
        6.01(b)(i)(C)
        above
        not later than the last day of such extension of time or be conclusively
        deemed
        to have consented to the proposed amendment or modification on the last day
        of
        such extension of time. Any amendment or modification requiring the consent
        of
        the PSCWV shall become effective on the later of (i) the date proposed by
        the
        parties to such amendment or modification or (ii) the first day after the
        expiration of the 15-day period provided for in this Section
        6.01(b)(ii),
        or, if
        such period has been extended pursuant hereto, the first day after the
        expiration of such period as so extended.

       

      (c)  For
        the
        purpose of this Section
        6.01,
        an
“authorized representative” of the PSCWV means any person authorized to act on
        behalf of the PSCWV, as evidenced by an Opinion of Counsel (which may be
        the
        general counsel) to the PSCWV.

       

      

        Section
          6.02.  Notices.
          All
          demands, notices and communications upon or to the Seller, the Issuer,
          the
          Indenture Trustee, the Rating Agencies or the PSCWV under this Agreement
          shall
          be in writing, delivered personally, via facsimile, reputable overnight
          courier
          or by certified mail, return-receipt requested, and shall be deemed to
          have been
          duly given upon receipt (a) in the case of the Seller, to PE Renaissance
          Funding, LLC, 2215-B Renaissance Drive, Suite #5, Las Vegas, Nevada 89119,
          Attention of Kristine Eppes, (b) in the case of the Issuer, to PE Environmental
          Funding LLC, 2215-B Renaissance Drive, Suite #5, Las Vegas, Nevada 89119,
          Attention of Kristine Eppes, (c) in the case of the Indenture Trustee,
          at the
          Corporate Trust Office, (d) in the case of Moody’s, to Moody’s Investors
          Service, Inc., Asset Finance Group, 99 Church Street, New York, New York
          10007,
          (e) in the case of Standard & Poor’s, to in the case of Standard &
Poor’s, to Standard & Poor’s Ratings Services, a division of The McGraw-Hill
          Companies, Inc., 55 Water Street, 42nd
          Floor,
          New York, New York 10041-0003, Attention of ABS Surveillance Group - New
          Assets,
          (f) in the case of Fitch, to Fitch, Inc., One State Street Plaza, New York,
          New
          York 10004, Attention of ABS Surveillance, and (g) in the case of the PSCWV,
          to
          Public Service Commission of West Virginia, 201 Brooks Street, P.O. Box
          812,

         

        
          
            
            

          

          
            17

            
              

            

          

          
            
            

          

        

         

        Charleston,
          West Virginia 25325, Attention of Executive Secretary; or, as to each of
          the
          foregoing, at such other address as shall be designated by written notice
          to the
          other parties.

      

       

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

       

      Section
        6.04.   Limitations
        on Rights of Others.
         The provisions of this Agreement are solely for the benefit of the Seller,
        the Issuer, the PSCWV and the Indenture Trustee, on behalf of itself and
        the
        Environmental Control Bondholders, and nothing in this Agreement, whether
        express or implied, shall be construed to give to any other Person any legal
        or
        equitable right, remedy or claim in the Collateral or under or in respect
        of
        this Agreement or any covenants, conditions or provisions contained
        herein.

       

      Section
        6.05.  Severability.
         Any provision of this 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 remaining
        provisions hereof, 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 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 AGREEMENT SHALL BE CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE
        OF WEST VIRGINIA, 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 Issuer and to Indenture Trustee.
        

       

      (a)  The
        Seller hereby assigns to the Issuer all of the Seller’s rights in, to and under
        the Transfer Agreement. 

       

      (b)  The
        Seller hereby acknowledges and consents to the 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 Environmental Control Bondholders of
        all
        right, title and interest of the Issuer in, to and under the Transferred
        Environmental Control Property and the proceeds thereof and the assignment
        of
        any or all of the Issuer’s rights hereunder to the Indenture Trustee.

       

      Section
        6.10.  Nonpetition
        Covenant.
         Notwithstanding any prior termination of this Agreement or the Indenture,
        but subject to a court of competent jurisdiction’s rights to order the
        sequestration and payment of Environmental Control Revenues arising with
        respect
        to the Transferred Environmental Control Property upon application by the
        Issuer
        or the Indenture

       

      
        
          
          

        

        
          18

          
            

          

        

        
          
          

        

      

       

      Trustee
        notwithstanding any bankruptcy, reorganization or other insolvency proceedings
        with respect to the debtor, pledgor or transferor of the Transferred
        Environmental Control Property pursuant to Section 24-2-4e(k)(4) of the Statute,
        the Seller shall not, prior to the date which is one year and one day after
        the
        termination of the Indenture, petition or otherwise invoke or cause the Issuer
        to invoke the process of any court or Governmental Authority for the purpose
        of
        commencing or sustaining an involuntary case against the Issuer under any
        federal or state bankruptcy, insolvency or similar law or 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
        6.11.  Perfection.
         In accordance with Section 24-2-4e(m) of the Statute, (i) upon the
        Financing Order creating the Environmental Control Property becoming effective,
        (ii) the execution and delivery of this Agreement and the related Bill of
        Sale,
        (iii) the receipt of value and (iv) the filing of a financing statement with
        the
        office of the Secretary of State of West Virginia, a transfer of an interest
        in
        the Environmental Control Property will be perfected as against all third
        persons, including any judicial lien creditors, other than creditors holding
        a
        prior security interest, ownership interest or assignment in the Environmental
        Control Property previously perfected in accordance with the relevant provisions
        of the Statute. 

       

      
        Section
          6.12.  Limitation
          of Liability.
          It is
          expressly understood and agreed by the parties hereto that this Agreement
          is
          executed and delivered by U.S. Bank National Association, not individually
          or
          personally but solely as Indenture Trustee for the benefit of the Environmental
          Control Bondholders, in the exercise of the powers and authority conferred
          and
          vested in it, and nothing herein contained shall be construed as creating
          any
          liability on U.S. Bank National Association, individually or personally,
          to
          perform any covenant either expressed or implied contained herein, all
          such
          liability, if any, being expressly waived by the parties who are signatories
          to
          this Agreement and by any Person claiming by, through or under such parties;
          provided, however, that this provision shall not protect U.S. Bank National
          Association against any liability that would otherwise be imposed by reason
          of
          willful misconduct, bad faith or negligence in the performance of duties
          or by
          reason of reckless disregard of obligations or duties under this
          Agreement.

         

      

      
        
          
          

        

        
          19

          
            

          

        

        
          
          

        

      

       

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

       

      
        
          	 	 	
                  PE
                    ENVIRONMENTAL FUNDING LLC, Issuer

                
	 	 	 
	 	 	 
	 	 	
                  by

                	
                   
                    /s/ Philip L. Goulding

                
	 	 	
                   Title: 
                    Vice President

                

        

      

       

      
        

          
            	 	 	
                    PE
                      RENAISSANCE FUNDING, LLC,  Seller

                  
	 	 	 
	 	 	 
	 	 	
                    by

                  	
                     
                      /s/ Kristine W. Eppes

                  
	 	 	
                     Title: 
                      Vice President, Treasurer and
                      Secretary

                  

          

        

         

      

       

      Acknowledged
        and Accepted:

       

      U.S.
        Bank
        National Association, not in its

      individual
        capacity but solely as Indenture

      Trustee
        on behalf of the Environmental Control

      Bondholders.

       

      by 
        /s/ Melissa A. Rosal                
Title: 
        Vice President

       

      
        
          
          

        

        
          20

          
            

          

        

        
          
          

        

      

      EXHIBIT
        A

       

      FORM
        OF
        BILL OF SALE

       

      

        1.  This
          Bill
          of Sale is being delivered pursuant to the Transferred Environmental Control
          Property Sale Agreement, dated as of April 11, 2007 (as amended, restated,
          supplemented or otherwise modified from time to time, the “Sale Agreement”),
          between PE Renaissance Funding, LLC (the “Seller”) and PE Environmental Funding
          LLC (the “Issuer”) and is subject to all of the terms, conditions and
          limitations contained in the Sale Agreement. All capitalized terms used
          but not
          defined herein have the respective meanings ascribed thereto in the Sale
          Agreement.

        

          2.  In
            consideration of the Issuer’s delivery to or upon the order of the Seller of
            $112,408,504,
            the
            Seller does hereby irrevocably sell, transfer, assign, set over and otherwise
            convey to the Issuer, without recourse (subject to the obligations in
            the Sale
            Agreement), all right, title and interest of the Seller in and to the
            Transferred Environmental Control Property created by the Statute and
            in
            accordance with the Financing Order related to the Senior Secured Sinking
            Fund
            Environmental Control Bonds, Series A and identified on Schedule 1 hereto
            (the
“Initial Transferred Environmental Control Property”) (such sale, transfer,
            assignment, set over and conveyance of the Initial Transferred Environmental
            Control Property includes, to the fullest extent permitted by the Statute,
            the
            assignment of all revenues, collections, claims, rights, payments, money
            or
            proceeds of or arising from the Environmental Control Charges related
            to the
            Initial Transferred Environmental Control Property, as the same may be
            adjusted
            from time to time). Such sale, transfer, assignment, set over and conveyance
            is
            hereby expressly stated to be a sale and, pursuant to Section 24-2-4e(m)(1)
            of
            the Statute, shall be treated as an absolute transfer of all of the Seller’s
            right, title and interest (as in a true sale), and not as a pledge or
            other
            secured transaction, of the Initial Transferred Environmental Control
            Property.
            The Seller agrees and confirms that after giving effect to the sale contemplated
            hereby, it has no rights in the Initial Transferred Environmental Control
            Property to which a security interest of creditors of the Seller could
            attach
            because it has sold all rights in the Initial Transferred Environmental
            Control
            Property to the Issuer pursuant to Section 24-2-4e(m)(1) of the
            Statute.

           

        

      

      3.  The
        Issuer does hereby purchase the Initial Transferred Environmental Control
        Property from the Seller for the consideration set forth in paragraph 2
        above.

       

      4.  The
        Seller and the Issuer each acknowledge and agree that the purchase price
        for the
        Initial Transferred 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.

       

      5.  The
        Seller confirms that 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.

       

      
        
          
          

        

        
          21

          
            

          

        

        
          
          

        

      

       

      6.  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.

       

      7.  This
        Bill
        of Sale shall be construed in accordance with the laws of the State of West
        Virginia, 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.

       

      
        
          
          

        

        
          22

          
            

          

        

        
          
          

        

      

      IN
        WITNESS WHEREOF, the Seller and the Issuer have duly executed this Bill of
        Sale
        as of this 11th day of April, 2007.

      

        
          

            
              	 	 	
                      PE
                        RENAISSANCE FUNDING, LLC  

                    
	 	 	 
	 	 	 
	 	 	
                      by

                    	
                       

                    
	 	 	
                       Title:

                    
	 	 	
                       Name:

                    

            

          

           

        

      

       

      
        
          
            	 	 	
                    PE
                      ENVIRONMENTAL FUNDING LLC

                  
	 	 	 
	 	 	 
	 	 	
                    by

                  	
                     

                  
	 	 	
                     Title:

                  
	 	 	
                     Name:

                  

          

        

         

        
          
            
            

          

          
            23

            
              

            

          

          
            
            

          

        

      

       

      SCHEDULE
        1

       

      Transferred
        Environmental Control Property and the related Environmental Control Charges
        with respect to the Senior Secured Sinking Fund Environmental Control
        Bonds, Series A identified in the Pricing Advice Letter filed with the
        PSCWV on April 4, 2007.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      EXHIBIT
        B

       

      PENDING
        LITIGATION

       

      None.PE Transferred Environmental Control Property Servicing Agreement

     

    Exhibit
      10.8

     

    

      
        
          

        

       

      TRANSFERRED
        ENVIRONMENTAL CONTROL PROPERTY SERVICING AGREEMENT

       

      between

       

      PE
        ENVIRONMENTAL FUNDING LLC

       

      and

       

      THE
        POTOMAC EDISON COMPANY

       

      Servicer

       

      Dated
        as
        of April 11, 2007

       

       

        
          

        

      

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      TABLE
        OF CONTENTS

       

      
        	
                ARTICLE
                  I       DEFINITIONS

              	
                1

              
	 	 
	
                  SECTION
                  1.01  DEFINITIONS

              	
                1

              
	 	 
	
                ARTICLE
                  II  APPOINTMENT
                  AND AUTHORIZATION OF SERVICER

              	
                2

              
	 	 
	
                  SECTION
                  2.01  APPOINTMENT
                  OF
                  SERVICER; ACCEPTANCE OF APPOINTMENT

              	
                2

              
	
                  SECTION
                  2.02  AUTHORIZATION

              	
                2

              
	
                  SECTION
                  2.03  DOMINION AND
                  CONTROL OVER TRANSFERRED ENVIRONMENTAL CONTROL PROPERTY

              	
                2

              
	 	 
	
                ARTICLE
                  III  BILLING
                  SERVICES

              	
                2

              
	 	 
	
                  SECTION
                  3.01  DUTIES OF
                  SERVICER

              	
                2

              
	
                  SECTION
                  3.02  COLLECTION
                  OF
                  ENVIRONMENTAL CONTROL CHARGES

              	
                3

              
	
                  SECTION
                  3.03  SERVICING AND
                  MAINTENANCE STANDARDS

              	
                4

              
	
                  SECTION
                  3.04  MONTHLY AND
                  QUARTERLY SERVICER’S CERTIFICATES

              	
                4

              
	
                  SECTION
                  3.05  ANNUAL REPORTS
                  ON
                  SERVICING COMPLIANCE AND ATTESTATION, NOTICES OF SERVICER
                  DEFAULTS

              	
                4

              
	
                  SECTION
                  3.06  ANNUAL REPORT
                  BY
                  INDEPENDENT PUBLIC ACCOUNTANTS

              	
                5

              
	
                  SECTION
                  3.07  ADDITIONAL
                  SERVICER
                  REPORTING REQUIREMENTS

              	
                5

              
	
                  SECTION
                  3.08  TRANSFERRED
                  ENVIRONMENTAL CONTROL PROPERTY DOCUMENTATION

              	
                6

              
	
                  SECTION
                  3.09  COMPUTER RECORDS;
                  AUDITS OF DOCUMENTATION

              	
                6

              
	
                  SECTION
                  3.10  DEFENDING
                  TRANSFERRED ENVIRONMENTAL CONTROL PROPERTY AGAINST CLAIMS

              	
                7

              
	
                  SECTION
                  3.11  OPINIONS OF
                  COUNSEL

              	
                7

              
	 	 
	
                ARTICLE
                  IV  TRUE-UP
                  ADJUSTMENTS

              	
                8

              
	 	 
	
                  SECTION
                  4.01  ROUTINE TRUE-UP
                  ADJUSTMENTS

              	
                8

              
	
                  SECTION
                  4.02  NON-ROUTINE
                  TRUE-UP
                  ADJUSTMENTS

              	
                9

              
	 	 
	
                ARTICLE
                  V  THE
                  SERVICER

              	
                9

              
	 	 
	
                  SECTION
                  5.01  REPRESENTATIONS
                  AND
                  WARRANTIES OF SERVICER

              	
                9

              
	
                  SECTION
                  5.02  INDEMNITIES
                  OF
                  SERVICER; RELEASE OF CLAIMS

              	
                11

              
	
                  SECTION
                  5.03  MERGER OR
                  CONSOLIDATION OF, OR ASSUMPTION OF THE OBLIGATIONS OF,
                  SERVICER

              	
                13

              
	
                  SECTION
                  5.04  ASSIGNMENT
                  OF
                  SERVICER’S OBLIGATIONS

              	
                13

              
	
                  SECTION
                  5.05  LIMITATION
                  ON
                  LIABILITY OF SERVICER AND OTHERS

              	
                13

              
	
                  SECTION
                  5.06  POTOMAC EDISON
                  NOT
                  TO RESIGN AS SERVICER

              	
                14

              
	
                  SECTION
                  5.07  DEFENDING
                  TRANSFERRED ENVIRONMENTAL CONTROL PROPERTY AGAINST CLAIMS

              	
                14

              
	
                  SECTION
                  5.08  SERVICING
                  FEE

              	
                15

              
	
                  SECTION
                  5.09  SERVICER
                  ADVANCES

              	
                15

              
	
                  SECTION
                  5.10  SUBSERVICING
                  

              	
                15

              
	
                  SECTION
                  5.11  REMITTANCES

              	
                16

              
	
                  SECTION
                  5.12  PAYMENT DATE
                  STATEMENTS

              	
                17

              
	
                  SECTION
                  5.13  SCHEDULE REVISION
                  DATE SCHEDULES

              	
                17

              
	
                  SECTION
                  5.14  PROTECTION
                  OF
                  TITLE

              	
                17

              
	 	 
	
                ARTICLE
                  VI  SERVICER
                  DEFAULT

              	
                18

              
	 	 
	
                  SECTION
                  6.01  SERVICER
                  DEFAULT

              	
                18

              
	
                  SECTION
                  6.02  NOTICE OF SERVICER
                  DEFAULT

              	
                19

              
	
                  SECTION
                  6.03  WAIVER OF PAST
                  DEFAULTS

              	
                19

              
	
                  SECTION
                  6.04  APPOINTMENT
                  OF
                  SUCCESSOR

              	
                19

              
	
                  SECTION
                  6.05  COOPERATION
                  WITH
                  SUCCESSOR

              	
                20

              
	
                  SECTION
                  6.06  SERVICER DEFAULT
                  UNDER RELATED TRANSACTION

              	
                20

              
	 	 
	 ARTICLE
                VII     MISCELLANEOUS PROVISIONS 	 

      

       

      
        
          
          

        

        
          2

          
            

          

        

        
          
          

        

      

       

      
        	
                  SECTION
                  7.01  AMENDMENT

              	
                20

              
	
                  SECTION
                  7.02  NOTICES

              	
                22

              
	
                  SECTION
                  7.03  LIMITATIONS
                  ON
                  RIGHTS OF OTHERS

              	
                23

              
	
                  SECTION
                  7.04  SEVERABILITY

              	
                23

              
	
                  SECTION
                  7.05  SEPARATE
                  COUNTERPARTS

              	
                23

              
	
                  SECTION
                  7.06  HEADINGS

              	
                23

              
	
                  SECTION
                  7.07  GOVERNING
                  LAW

              	
                23

              
	
                  SECTION
                  7.08  ASSIGNMENT
                  TO
                  INDENTURE TRUSTEE

              	
                23

              
	
                  SECTION
                  7.09  NONPETITION
                  COVENANTS

              	
                23

              
	
                  SECTION
                  7.10  TERMINATION

              	
                24

              
	
                  SECTION
                  7.11  LIMITATION
                  OF
                  LIABILITY

              	
                24

              

      

      

      

      EXHIBITS

       

      EXHIBIT
        A       Servicing
        Obligations

      EXHIBIT
        B        Pending
        Litigation

      ANNEX
        1         
        Form
        of
        Routine Adjustment Request 

      ANNEX
        2         
        Form
        of
        Monthly Servicer’s Certificate

      ANNEX
        3         
        Form
        of
        Quarterly Servicer’s Certificate

      ANNEX
        4         
        Form
        of
        Officer’s Certificate

      ANNEX
        5         
        Form
        of
        Assessment of Servicing Criteria

      ANNEX
        6         
        Form
        of
        Regulation AB Compliance Certification

      

      APPENDIX
        A      Master
        Definitions

      

      
        
          
          

        

        
          3

          
            

          

        

        
          
          

        

      

       

      
        TRANSFERRED
          ENVIRONMENTAL CONTROL PROPERTY SERVICING AGREEMENT dated as of April 11,
          2007,
          between PE ENVIRONMENTAL FUNDING LLC, a Delaware limited liability company
          (the
“Issuer”),
          and
          THE POTOMAC EDISON COMPANY (“Potomac
          Edison”),
          a
          Virginia and Maryland corporation, doing business as Allegheny Power, as
          the
          servicer of the Transferred Environmental Control Property (together with
          each
          successor to Potomac Edison (in the same capacity) pursuant to Section 5.03
          or
6.04,
          the
“Servicer”).
          

         

      

      WHEREAS
        the Servicer is willing to service the Transferred Environmental Control
        Property purchased from the Seller by the Issuer from time to time in accordance
        with the Sale Agreement;

       

      WHEREAS
        the Issuer, in connection with ownership of the Transferred Environmental
        Control Property, desires to engage the Servicer to carry out the functions
        described herein;

       

      WHEREAS
        the PSCWV or its attorney will enforce this Agreement pursuant to the Financing
        Order for the benefit of the Customers to the extent permitted by applicable
        Requirements of Law; 

       

      WHEREAS
        the Environmental Control Bonds will not be “asset-backed securities” within the
        meaning of Regulation AB, but the Issuer nevertheless has committed to comply
        with all substantive ongoing periodic disclosure requirements that would
        apply
        under Regulation AB if the Environmental Control Bonds were “asset-backed
        securities”; and 

       

      NOW,
        THEREFORE, in consideration of the premises and the mutual covenants herein
        contained and intending to be legally bound hereby, the parties hereto agree
        as
        follows:

       

      ARTICLE
        I

       

      DEFINITIONS

       

      SECTION
        1.01    Definitions. 

       

      (a)    “Agreement”
means
        this Transferred Environmental Control Property Servicing Agreement, together
        with all Exhibits, Annexes and Appendices hereto, as the same may be amended,
        supplemented or otherwise modified from time to time.

       

      (b)    Capitalized
        terms used but not otherwise defined in this Agreement have the meanings
        assigned to them in Appendix A to this Agreement.

       

      (c)    Non-capitalized
        terms used in this Agreement which are defined in the Statute, as the context
        requires, have the meanings assigned to such terms in the Statute, but without
        giving effect to amendments to the Statute after the date hereof which have
        a
        material adverse effect on the Issuer or the Environmental Control
        Bondholders.

       

      (d)    All
        terms
        defined in this Agreement have the defined meanings when used in any certificate
        or document made or delivered pursuant hereto unless otherwise defined
        herein.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      (e)    The
        words
“hereof,”
        “herein,”
        “hereunder”
and
        words of similar import when used in this Agreement shall refer to this
        Agreement as a whole and not to any particular provision of this Agreement;
        Section, Annex, Schedule and Exhibit references contained in this Agreement
        are
        references to Sections, Annexes, Schedules and Exhibits in or to this Agreement
        unless otherwise specified; and the term “including”
shall
        mean “including
        without limitation.”

       

      (f)    The
        definitions contained in this Agreement are applicable to the singular as
        well
        as the plural forms of such terms and to the masculine as well as to the
        feminine and neuter genders of such terms.

       

      ARTICLE
        II

       

      APPOINTMENT
        AND AUTHORIZATION OF SERVICER

       

      SECTION
        2.01    Appointment
        of Servicer; Acceptance of Appointment. 
        Subject to Section 5.04
        and
        Article VI, the Issuer hereby appoints the Servicer, and the Servicer hereby
        accepts such appointment, to perform the Servicer’s obligations pursuant to this
        Agreement on behalf of and for the benefit of the Issuer in accordance with
        the
        terms of this Agreement. This appointment and the Servicer’s acceptance thereof
        may not be revoked except in accordance with the express terms of this
        Agreement.

       

      SECTION
        2.02    Authorization. 
        With respect to all or any portion of the Transferred 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 or the Issuer, as
        the case may be, any and all instruments, documents or notices, and (b) on
        behalf of itself or the Issuer, as the case may be, make any filing and
        participate in proceedings of any kind with any Governmental Authorities,
        including with the PSCWV. The Issuer shall furnish the Servicer with such
        documents as have been prepared by the Servicer for execution by the Issuer,
        and
        with the other documents as may be in the Issuer’s possession, as necessary or
        appropriate to enable the Servicer to carry out its duties hereunder. Upon
        the
        written request of the Servicer, 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 Transferred Environmental Control Property. 
        Notwithstanding any other provision herein, the Servicer and the Issuer agree
        that the Issuer shall have dominion and control over the Transferred
        Environmental Control Property. The Servicer hereby agrees that it shall
        not
        take any action that is not authorized by this Agreement or applicable
        Requirements of Law, that is not consistent with its customary procedures
        and
        practices, or that shall impair the rights of the Issuer in the Transferred
        Environmental Control Property, in each case unless such action is required
        by
        applicable Requirements of Law.

       

      ARTICLE
        III

       

      BILLING
        SERVICES

       

      SECTION
        3.01    Duties
        of Servicer. 
        The Servicer shall have the following duties:

       

      
        
          
          

        

        
          2

          
            

          

        

        
          
          

        

      

       

      (a)    Duties
        of Servicer Generally. 
        The Servicer will manage, service, administer and make collections in respect
        of
        the Transferred Environmental Control Property. The Servicer’s duties will
        include (i) calculating and billing the Environmental Control Charges,
        collecting Environmental Control Charge Payments, and remitting all
        Environmental Control Charge Collections to the Indenture Trustee;
        (ii) responding to inquiries by Customers, Third Parties, the PSCWV, or any
        Governmental Authority with respect to the Transferred Environmental Control
        Property, including the Environmental Control Charges; (iii) accounting for
        Environmental Control Charge Collections, investigating delinquencies,
        processing and depositing collections and making periodic remittances,
        furnishing periodic reports to the Issuer, the Indenture Trustee, the PSCWV
        and
        the Rating Agencies; (iv) selling defaulted or written off accounts in
        accordance with the Servicer’s usual and customary practices; and
        (v) taking action in connection with True-Up Adjustments according to the
        procedures set forth herein and in Exhibit A hereto. Anything to the contrary
        notwithstanding, the duties of the Servicer set forth in this Agreement shall
        be
        qualified in their entirety by applicable Requirements of Law as may be in
        effect at the time such duties are to be performed. Without limiting the
        generality of this Section 3.01(a), 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, payment
        processing and remittance set forth in Exhibit A hereto.

       

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

       

      (c)    Other
        Information. 
        Upon the reasonable request of the Issuer, the Indenture Trustee, the PSCWV
        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 Transferred Environmental Control Property to the extent it is reasonably
        available to the Servicer, as may be reasonably necessary and permitted by
        applicable Requirements of Law, for the Issuer, the Indenture Trustee, the
        PSCWV
        or such Rating Agency to monitor the performance by the Servicer hereunder.
        In
        addition, so long as any of the Environmental Control Bonds of any Series
        are
        Outstanding, the Servicer shall provide the Issuer, the Indenture Trustee
        and
        the PSCWV 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
        Rate
        Schedule.

       

      (d)    Preparation
        of Reports to be Filed with the Commission. 
        The Servicer shall prepare or cause to be prepared any reports required to
        be
        filed by the Issuer under the securities laws, including without limitation,
        if
        so required, each Quarterly Servicer’s Certificate described in Section 3.04,
        the
        Officer’s Certificate of annual compliance described in Section 3.05,
        the
        Annual Accountant’s Report described in Section 3.06,
        and any
        certification required by Section 302
        of the
        Sarbanes-Oxley Act of 2002 and Item 601 of Regulation S-K under the Exchange
        Act.

       

      SECTION
        3.02    Collection
        of Environmental Control Charges. 

       

      
        
          
          

        

        
          3

          
            

          

        

        
          
          

        

      

       

      (a)    The
        Servicer shall use all reasonable efforts consistent with its customary
        servicing procedures to collect all amounts owed in respect of Environmental
        Control Charges, as and when the same shall become due and shall follow such
        collection procedures as it follows with respect to collection activities
        that
        the Servicer conducts for itself or others. The Servicer shall not change
        the
        amount of or reschedule the due date of any scheduled payment of Environmental
        Control Charges, except as contemplated in this Agreement or as required
        by
        applicable Requirements of Law; provided, however, that the Servicer may
        take
        any of the foregoing actions to the extent that such action would be in
        accordance with customary billing and collection practices of the Servicer
        with
        respect to billing and collection activities that it conducts for
        itself.

       

      (b)    Upon
        a
        partial payment of amounts billed, including amounts billed under special
        contracts, such partial payments shall be allocated first to the Billed
        Environmental Control Charge, including any past-due Environmental Control
        Charges.

       

      SECTION
        3.03    Servicing
        and Maintenance Standards. 
        The Servicer shall (a) manage, service, administer and make collections in
        respect of the Transferred Environmental Control Property with reasonable
        care
        and in material compliance with applicable Requirements of Law using the
        same
        degree of care and diligence that the Servicer exercises with respect to
        billing
        and collection activities that the Servicer conducts for itself and others;
        (b) follow standards, policies and procedures in performing its duties as
        Servicer that are customary in the Servicer’s industry; (c) use all
        reasonable efforts, consistent with its customary servicing procedures, to
        enforce and maintain rights in respect of the Transferred Environmental Control
        Property; and (d) calculate Environmental Control Charges in compliance
        with applicable Requirements of Law, except where the failure to comply with
        any
        of the foregoing would not have a material adverse affect on the Issuer’s or the
        Indenture Trustee’s interest in the Transferred Environmental Control Property.
        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 Transferred Environmental Control Property, which, in the Servicer’s
        judgment, may include the taking of legal action pursuant to Section 3.09
        hereof
        or otherwise.

       

      SECTION
        3.04    Monthly
        and Quarterly Servicer’s Certificates. 
        The Servicer will provide to the Issuer, the Indenture Trustee, the PSCWV
        and
        each of the Rating Agencies, so long as any Environmental Control Bonds of
        any
        Series are Outstanding, (a) not later than 15 days after the end of each
        month after the Environmental Control Bonds are issued (excluding April,
        2007),
        or if such day is not a Business Day, the following Business Day, a written
        report substantially in the form of Annex 2 hereto (the “Monthly
        Servicer’s Certificate”);
        and
        (b) not later than 15 days following the end of each calendar quarter after
        the Environmental Control Bonds are issued, a written report substantially
        in
        the form of Annex 3
        hereto
        (the “Quarterly
        Servicer’s Certificate”). 

       

      SECTION
        3.05    Annual
        Reports on Servicing Compliance and Attestation, Notices of Servicer
        Defaults.

       

      (a)    On
        or
        before March 31 of each year beginning March 31, 2008, and including
        the March 31 following the Final Maturity Date of all Series of
        Environmental Control Bonds, the Servicer shall deliver: (i) to the Issuer,
        the Indenture Trustee, the PSCWV and each

       

      
        
          
          

        

        
          4

          
            

          

        

        
          
          

        

      

       

      Rating
        Agency, an Officers’ Certificate substantially in the form of Annex 4
        attached
        hereto, stating that (A) a review of the activities of the Servicer during
        the preceding calendar year (or relevant portion thereof) and of its performance
        under this Agreement has been made under such officers’ supervision and
        (B) to the best of such officers’ knowledge, based on such review, the
        Servicer has complied with all its obligations under this Agreement in all
        material respects throughout such period or, if there has been a Servicer
        Default, or an act or omission, which with either the passage of time or
        the
        giving of notice, could become a Servicer Default, specifying each such event
        of
        default or act or omission known to such authorized officer and the nature
        and
        status thereof; (ii) to the Issuer and the PSCWV, a report regarding the
        Servicer’s assessment of compliance with the servicing criteria during the
        immediately preceding calendar year, as required under Rules 13a-18 and 15d-18
        of the Exchange Act and Item 1122 of Regulation AB. Such report shall be
        addressed to the Issuer and the PSCWV and signed by an authorized officer
        of the
        Servicer, and shall address each of the servicing criteria specified on a
        certification substantially in the form of Annex 5
        hereto
        delivered to the Issuer concurrently with the execution of this agreement;
        (iii) to the Issuer and the PSCWV, a report of a registered public
        accounting firm reasonably acceptable to the Issuer that attests to, and
        reports
        on, the assessment of compliance made by the Servicer and delivered pursuant
        to
        the preceding clause (ii), as described in Section 3.06
        hereof;
        and (iv) to the Issuer, the Administrator and any other person that will be
        responsible for signing the Regulation AB Compliance Certification, a
        certification in the form attached hereto as Annex 6,
        as
        required by Rules 13a-14(d) and 15d-14(d) under the Exchange Act (pursuant
        to
        Section 302 of the Sarbanes-Oxley Act of 2002) on behalf of the Issuer. The
        Servicer acknowledges that the parties identified in this clause (a)(iv)
        may
        rely on the certification provided by the Servicer pursuant to such clause
        in
        signing a Sarbanes Certification and filing such with the PSCWV. In addition,
        pursuant to Section 5.10,
        the
        Servicer shall cause each subservicer “participating in the servicing function”
within the meaning of Item 1122 of Regulation AB to deliver to the Issuer
        an
        assessment of compliance and accountants’ attestation as and when provided in
        clauses (ii) and (iii) of this paragraph.

       

      The
        requirements of clauses (ii) through (iv) above shall be applicable only
        so long
        as the Issuer is required to make such filings under the Exchange
        Act.

       

      (b)    Each
        assessment of compliance provided by a subservicer pursuant to Section 3.05(a)
        shall
        address each of the servicing criteria specified on a certification
        substantially in the form of Annex
        5
        hereto
        delivered to the Issuer concurrently with the execution of this Agreement
        by
        such subservicer or, in the case of a subservicer subsequently appointed
        as
        such, on or prior to the date of such appointment. An assessment of compliance
        provided by a subservicer pursuant to Section 3.05(a)
        need not
        address any elements of the servicing criteria other than those specified
        by the
        Servicer pursuant to Section 5.10.

       

      (c)    The
        Servicer shall deliver to the Issuer, the Indenture Trustee, the PSCWV and
        each
        Rating Agency, promptly after having obtained knowledge thereof, but in no
        event
        later than five Business Days thereafter, written notice in an Officers’
Certificate of any Servicer Default and any event which with the giving of
        notice or lapse of time, or both, would become a Servicer Default under
Section 6.01.

       

      SECTION
        3.06    Annual
        Report by Independent Public Accountants. 

       

      
        
          
          

        

        
          5

          
            

          

        

        
          
          

        

         

      

      (a)    Servicer
        shall cause a firm of independent certified public accountants (which may
        also
        provide other services to the Servicer, Potomac Edison or the Seller) to
        prepare, and the Servicer shall deliver to the Issuer, the Indenture Trustee,
        the PSCWV and each Rating Agency, on or before March 31 of each year,
        beginning March 31, 2008 to and including the March 31 following the
        Final Maturity Date of all Series of Environmental Control Bonds, a report
        addressed to the Servicer (the “Annual
        Accountant’s Report”),
        which
        may be included as part of the Servicer’s customary auditing activities, to the
        effect that such firm has performed certain procedures agreed to between
        the
        Servicer and such firm in connection with the Servicer’s compliance with its
        obligations under this Agreement during the preceding calendar year ended
        December 31 (or, in the case of the first Annual Accountant’s Report, the
        period of time from the Transfer Date until December 31, 2007, identifying
        the
        results of such procedures and including any exceptions noted. In addition,
        so
        long as the Issuer is required to make such filings under the Exchange Act,
        the
        Annual Accountant’s Report will include a report that attests to, and reports
        on, the assessment made by the Servicer as to its compliance with the servicing
        criteria set forth in (d) of Item 1122 of Regulation AB hereto and that such
        attestation of the assessment of compliance was in accordance with Rules
        1-02(a)(3) and 2-02(g) of Regulation S-X under the Securities Act and the
        Exchange Act and was made in accordance with standards for attestation
        engagements issued or adopted by the Public Company Accounting Oversight
        Board.  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 within the meaning of
        the
        Code of Professional Conduct of the American Institute of Certified Public
        Accountants or any superseding or amended standard adopted by the Public
        Company
        Accounting Oversight Board.

       

      SECTION
        3.07    Additional
        Servicer Reporting Requirements. 
        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 under the federal
        securities or other applicable laws or in accordance with the Basic Documents,
        including, but without limiting the generality of foregoing, filing with
        the
        SEC, if applicable, a copy or copies of (i) the Monthly Servicer’s Certificates
        described in Section
        3.04
        (under
        Form 10-D or any other applicable form), (ii) the Payment Date Statements
        described in Section 3 of Exhibit A hereto (under Form 10-D or any other
        applicable form), (iii) the annual statements of compliance, attestation
        reports
        and other certificates described in Section
        3.05,
        and
        (iv) the Annual Accountant’s Report (and any attestation required under
        Regulation AB) described in Section
        3.06.
        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 federal securities law and/or any other applicable
        law.

      
         

        
          
            
            

          

          
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      SECTION
        3.08    Environmental
        Control Property Documentation. 
        To assure uniform quality in servicing the Transferred Environmental Control
        Property and to reduce administrative costs, the Servicer shall keep on file,
        in
        accordance with its customary procedures, all Environmental Control Property
        Documentation.

       

      SECTION
        3.09    Computer
        Records; Audits of Documentation. 

       

       

      (a)    Safekeeping. 
        The Servicer shall maintain accurate and complete accounts, records and computer
        systems pertaining to the Transferred Environmental Control Property and
        the
        Transferred Environmental Control Property Documentation in accordance with
        its
        standard accounting procedures and in sufficient detail to permit the Annual
        Reconciliation between Estimated Environmental Control Charge Collections
        and
        Actual Environmental Control Charge Collections in accordance with Section
        5.11
        and to
        enable the Issuer to comply with this Agreement and the Indenture. The Servicer
        shall conduct, or cause to be conducted, periodic audits of the Transferred
        Environmental Control Property Documentation held by it under this Agreement
        and
        of the related accounts, records and computer systems, in such a manner as
        shall
        enable the Issuer and the Indenture Trustee, as pledgee of the Issuer, to
        verify
        the accuracy of the Servicer’s record keeping. The Servicer shall promptly
        report to the Issuer, the PSCWV and the Indenture Trustee any failure on
        the
        Servicer’s part to hold the Transferred Environmental Control Property
        Documentation 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 Transferred Environmental
        Control Property Documentation.

       

      (b)    Maintenance
        of and Access to Records. 
        The Servicer shall maintain the Transferred Environmental Control Property
        Documentation at 1310 Fairmont Avenue, Fairmont, West Virginia  26554
        or at such other office as shall be specified to the Issuer, the Indenture
        Trustee and the PSCWV by written notice not later than 30 days prior to any
        change in location. The Servicer shall permit the Issuer, the Indenture Trustee
        and the PSCWV or their respective duly authorized representatives, attorneys,
        agents or auditors at any time during normal business hours as the Issuer,
        the
        Indenture Trustee or the PSCWV shall reasonably request to inspect, audit
        and
        make copies of and abstracts from the Servicer’s records regarding the
        Transferred Environmental Control Property, including the Environmental Control
        Charges and the Transferred Environmental Control Property Documentation.
        The
        failure of the Servicer to provide access to such information as a result
        of an
        obligation or applicable Requirements of Law prohibiting disclosure of
        information regarding customers shall not constitute a breach of this
Section 3.09(b).

       

      SECTION
        3.10    Defending
        Transferred Environmental Control Property Against Claims. 
        The Servicer, on behalf of the Environmental Control Bondholders, shall
        institute any action or proceeding necessary to compel performance by the
        PSCWV
        or the State of West Virginia of any of their obligations or duties under
        the
        Statute or the Financing Order with respect to the Transferred Environmental
        Control Property. The costs of any such action shall be payable from the
        Collection Account as an Operating Expense in accordance with the priorities
        set
        forth in Section 8.02(e)
        of the
        Indenture at the time such costs are incurred. The Servicer’s obligations
        pursuant to this Section 3.10
        shall
        survive and continue notwithstanding the fact that the payment of Operating
        Expenses pursuant to the priorities set forth in Section 8.02(e)
        of the
        Indenture may

      
         

        
          
            
            

          

          
            7

            
              

            

          

          
            
            

          

        

      

       

      be
        delayed (it being understood that the Servicer shall not be required to advance
        its own funds to satisfy its obligations hereunder).

       

      SECTION
        3.11    Opinions
        of Counsel. 
        With respect to each series of Environmental Control Bonds, the Servicer
        shall
        deliver to the Issuer, the PSCWV and the Indenture Trustee:

       

       

      (a)    promptly
        after the execution and delivery of this Agreement and of each amendment
        hereto,
        promptly after the execution of the Sale Agreement and of each amendment
        thereto, promptly after the execution of the Transfer Agreement and of each
        amendment thereto, and on the Transfer Date, an Opinion of Counsel either
        (i) to the effect that, in the opinion of such counsel, all filings,
        including filings with the PSCWV pursuant to the Statute, that are necessary
        to
        fully preserve and protect the interests of the applicable Indenture Trustee
        in
        the Transferred Environmental Control Property have been executed and filed,
        and
        reciting the details of such filings or referring to prior Opinions of Counsel
        in which such details are given, or (ii) to the effect that, in the opinion
        of such counsel, no such action shall be necessary to preserve and protect
        such
        interest; and

       

      (b)    within
        90
        days after the beginning of each calendar year beginning with the first calendar
        year beginning more than three months after the Transfer Date, an Opinion
        of
        Counsel, dated as of a date during such 90-day period, either (i) to the
        effect that, in the opinion of such counsel, all filings with the PSCWV pursuant
        to the Statute, have been executed and filed that are necessary to preserve
        fully and protect fully the interest of the applicable Indenture Trustee
        in the
        Transferred Environmental Control Property, and reciting the details of such
        filings or referring to prior Opinions of Counsel in which such details are
        given, or (ii) to the effect that, in the opinion of such counsel, no such
        action shall be necessary to preserve and protect such interest.

       

      Each
        Opinion of Counsel referred to in clause (a) or (b) above shall specify any
        action necessary (as of the date of such opinion) to be taken in the following
        year to preserve and protect such interest.

       

      ARTICLE
        IV

       

      TRUE-UP
        ADJUSTMENTS

       

      SECTION
        4.01    Routine
        True-Up Adjustments.

       

      (a)    With
        respect to each series of Environmental Control Bonds, the Servicer shall
        file a
        True-Up Adjustment Filing with the PSCWV at the following times: (i) at
        least 15 days prior to each Semi-Annual True-Up Adjustment Date; and
        (ii) at least 15 days prior to each Quarterly True-Up Adjustment Date
        and each Monthly True-Up Adjustment Date.

       

      (b)    For
        the
        purpose of filing any Semi-Annual True-Up Adjustment Filing, the Servicer
        shall
        (i) update assumptions of projected future usage and demand of electricity
        by Customers, expected delinquencies and Write-offs and future expenses relating
        to Transferred Environmental Control Property and the Environmental Control
        Bonds; (ii) calculate the Periodic Bond Payment Requirement based upon such
        updated assumptions; and (iii) determine

      
         

        
          
            
            

          

          
            8

            
              

            

          

          
            
            

          

        

      

       

      the
        Environmental Control Charge to be charged on and after the applicable True-Up
        Adjustment Date.

       

      (c)    Each
        True-Up Adjustment Filing shall be substantially in the form of Annex 1 to
        this
        Servicing Agreement.

       

       

      (d)    The
        Servicer shall (i) take all reasonable actions and make all reasonable
        efforts in order to effectuate any Routine True-Up Adjustment to the
        Environmental Control Charge and (ii) promptly send to the Indenture
        Trustee copies of all material notices and documents relating to such Routine
        True-Up Adjustment.

       

      (e)    On
        the
        same date that the Servicer files any True-Up Adjustment Filing with the
        PSCWV,
        if the Routine True-Up Adjustment is intended to result in an increase in
        the
        amount of the Environmental Control Charge, the Servicer shall give public
        notice through the publication of a Class I legal advertisement in Kanawha
        County, will respond to any comments to such publication and will attend
        any
        hearing held in connection with any such True-Up Adjustment Filing.

       

      SECTION
        4.02    Non-Routine
        True-Up Adjustments. 

       

      (a)    Whenever
        the Servicer determines that the existing True-Up Mechanism should be amended
        or
        revised to more accurately project and generate adequate collections of
        Environmental Control Charge Payments, the Servicer shall file a Non-Routine
        True-Up Adjustment Filing with the PSCWV designating the adjustments to such
        True-Up Mechanism and any corresponding adjustments to the Environmental
        Control
        Charges, subject to the review and approval of the PSCWV pursuant to the
        Financing Order, and the Servicer shall notify the Rating Agencies as promptly
        as possible of the filing of any such Non-Routine True-Up Adjustment Filing.
        Subject to clause (c) below, the Servicer shall also file for a Non-Routine
        True-Up Adjustment Filing at the direction of the PSCWV.

       

      (b)    The
        Servicer shall take all reasonable actions and make all reasonable efforts
        to
        secure any Non-Routine True-Up Adjustments. 

       

      (c)    The
        Servicer shall implement any resulting adjustments to the True-Up Mechanism
        and
        any resulting revised Environmental Control Charges as of the effective date
        of
        the Non-Routine True-Up Adjustment Filing. If any Non-Routine True-Up Adjustment
        Filing is denied by the PSCWV, the Servicer shall notify the Issuer, the
        Indenture Trustee and the Rating Agencies (not later than five days after
        the
        Servicer’s receipt of the PSCWV’s order denying such Non-Routine True-Up
        Adjustment Filing). 

       

      (d)    The
        Servicer shall notify the Issuer, the Indenture Trustee and the Rating Agencies
        of any request for a Non-Routine True-Up Adjustment initiated by the PSCWV
        within five days of receipt of such request and shall take all necessary
        actions
        to prevent the implementation of such an adjustment if it would violate the
        State Pledge.

      
         

        
          
            
            

          

          
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      ARTICLE
        V

       

      THE
        SERVICER

       

      SECTION
        5.01    Representations
        and Warranties of Servicer. 
        The Servicer makes the following representations and warranties as of the
        Transfer Date, on which the Issuer and the PSCWV (on behalf of the Customers)
        has relied and will rely in acquiring the Transferred Environmental Control
        Property. The representations and warranties shall survive the sale of
any
        of
        the Transferred Environmental Control Property to the Issuer and the pledge
        thereof to the Indenture Trustee pursuant to the Indenture.

       

      (a)    Organization
        and Good Standing. 
        The Servicer is a corporation duly organized, validly existing and in good
        standing under the laws of the states of its incorporation, with the 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 has
        the power, authority and legal right to service the Transferred Environmental
        Control Property.

       

      (b)    Due
        Qualification. 
        The Servicer is duly qualified to do business as a foreign corporation in
        good
        standing or equivalent status, and has obtained all necessary licenses and
        approvals in, all foreign jurisdictions in which the ownership or lease of
        property or the conduct of its business (including the servicing of the
        Transferred Environmental Control Property as required by this Agreement)
        requires 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 Servicer’s business, operations,
        assets, revenues, properties or prospects or materially and adversely affect
        the
        servicing of the Transferred Environmental Control Property).

       

      (c)    Power
        and Authority. 
        The Servicer has the corporate power and authority to execute and deliver
        this
        Agreement and to carry out its terms; and the execution, delivery and
        performance of this Agreement have been duly authorized by the Servicer by
        all
        necessary corporate action.

       

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

       

      (e)    No
        Violation. 
        The consummation of the transactions contemplated by this Agreement and the
        fulfillment of the terms hereof shall not conflict with, result in any breach
        of
        any of the terms and provisions of, nor constitute (with or without notice
        or
        lapse of time) a default under, the articles of incorporation or by-laws
        of the
        Servicer, or any other material indenture, agreement or other instrument
        to
        which the Servicer is a party or by which it shall be bound; nor 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 (except as
        contemplated in the Indenture and as set forth in the Sale Agreement); nor
        violate any law or any order, rule or regulation applicable to the Servicer
        of
        any court or of any federal or state regulatory body,

       

      
        
          
          

        

        
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      administrative
        agency or other governmental instrumentality having jurisdiction over the
        Servicer or its properties.

       

      (f)    Approvals. 
        Except for filings with the PSCWV for revised Environmental Control Charges,
        pursuant to Article IV and Annex 1 hereto and the filing of financing statements
        or continuation statements under the UCC, no approval, authorization, consent,
        order or other action of, or filing with, any court, federal or state regulatory
        body, administrative agency or other governmental instrumentality is required
        in
        connection with the execution and delivery
        by the Servicer of this 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.

       

      (g)    No
        Proceedings. 
        Except as described in Exhibit B, to the Servicer’s knowledge, there are no
        proceedings or investigations pending or, to the Servicer’s best knowledge,
        threatened before any court, federal or state regulatory body, administrative
        agency or other governmental instrumentality having jurisdiction over the
        Servicer or its properties: (i) seeking to prevent issuance of the bonds or
        the consummation of the transactions contemplated by this Agreement, any
        other
        Basic Document or, if applicable, any Additional Indenture or subsequent
        sale
        agreement, (ii) seeking any determination or ruling that might materially
        and
        adversely affect the performance by the Servicer of its obligations under,
        or
        the validity or enforceability against the Servicer of, this Agreement, any
        other Basic Document or, if applicable, any Additional Indenture or subsequent
        sale agreement, or (iii) relating to the Servicer and which might have a
        material adverse affect on the federal or state income, gross receipts or
        franchise tax attributes of the Environmental Control Bonds.

       

      (h)    Reports
        and Certificates. 
        Each report and certificate delivered in connection with any filing made
        to the
        PSCWV by the Servicer on behalf of the Issuer with respect to 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 the facts known to the Servicer on the date such report or certificate
        is
        delivered.

       

      SECTION
        5.02    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
        Agreement.

       

      (b)    The
        Servicer shall indemnify the Issuer and the Indenture Trustee, for itself
        and on
        behalf of the Environmental Control Bondholders for which it acts as Indenture
        Trustee, and each of their respective managers, members, officers, directors,
        employees and agents for, and defend and hold harmless each such Person from
        and
        against, any and all Losses that may be imposed upon, incurred by or asserted
        against any such Person as a result of (i) the Servicer’s willful
        misconduct, bad faith or negligence in the performance of its duties under
        this

      
         

        
          
            
            

          

          
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      Agreement
        or (ii) the Servicer’s material breach of any of its obligations, duties,
        representations or warranties that results in a Servicer Default under this
        Agreement and (iii) litigation and related expenses relating to its status
        and obligations as Servicer.

       

      The
        Servicer shall not be liable for any Losses resulting from the willful
        misconduct, bad faith or negligence of any Person indemnified pursuant to
        this
Section 5.02
        (each,
        an “Indemnified
        Party”)
        or
        resulting from a breach of a representation or warranty made by such Indemnified
        Party in any of the Basic Documents that gives rise to the Servicer’s breach.
        The Environmental
        Control Bondholders shall be entitled to enforce their rights and remedies
        against the Servicer under this Section 5.02
        solely
        through a case of action brought for their benefit by the Indenture Trustee.
        The
        Servicer’s indemnification under this Section 5.02(b)
        shall
        survive the termination of this Agreement, and any amounts paid with respect
        thereto shall be remitted and deposited with the Indenture Trustee for deposit
        into the Collection Account

       

      (c)    The
        Servicer shall indemnify the PSCWV, on behalf of the Customers, for any Losses
        they incur by reason of the Servicer’s willful misconduct, bad faith or
        negligence including without limitation Losses attributable to higher
        Environmental Control Charges imposed on customers by reason of additional
        Operating Expenses, for example the Issuer’s higher Servicing Fees payable to a
        Successor Servicer. The PSCWV shall be entitled to enforce Section 5.02(c)
        for the
        benefit of Customers, and Customers may not enforce this indemnity. The
        Servicer’s indemnification under this Section 5.02(c)
        shall
        survive the termination of this Agreement, and any amounts paid with respect
        thereto shall be remitted and deposited with the Indenture Trustee for deposit
        into the Collection Account, unless otherwise directed by the PSCWV.

       

      (d)    The
        Servicer shall indemnify the Indenture Trustee and its officers, directors
        and
        agents for, and defend and hold harmless each such Person from and against,
        any
        and all Losses that may be imposed upon, incurred by or asserted against
        any
        such Person as a result of the acceptance or performance of the trusts and
        duties contained herein and in the other Basic Documents to which the Indenture
        Trustee is a party, except to the extent that any such Loss shall be due
        to the
        willful misconduct, bad faith or negligence of the Indenture Trustee. The
        foregoing indemnity is extended to the Indenture Trustee solely in its
        individual capacity and not for the benefit of the Environmental Control
        Bondholders or any other Person. Such amounts shall be deposited and distributed
        in accordance with the Indenture.

       

      (e)    The
        Servicer’s indemnification obligations under Sections
        5.02(b),(c)
        and
(d)
        for
        events occurring prior to the removal or resignation of the Indenture Trustee,
        or the termination of this Agreement with respect to the Issuer, shall survive
        the resignation or removal of the Indenture Trustee or the termination of
        this
        Agreement with respect to the Issuer, and shall include reasonable costs,
        fees
        and expenses of investigation and litigation (including the Issuer’s and the
        Indenture Trustee’s reasonable attorneys’ fees and expenses).

       

      (f)    Except
        to
        the extent expressly provided for in this Agreement or the other Basic Documents
        (including the Servicer’s claims with respect to the Servicing Fees and the
        Seller’s claim for payment of the purchase price of the Transferred
        Environmental Control Property), the Servicer hereby releases and discharges
        the
        Issuer (including its respective managers, members, officers, directors and
        agents, if any) and the Indenture Trustee (including

      
         

        
          
            
            

          

          
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      its
        officers, directors and agents) (collectively, the “Released
        Parties”)
        from
        any and all actions, claims and demands whatsoever, which the Servicer, in
        its
        capacity as Servicer, shall or may have against any such Person relating
        to the
        Transferred 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 negligence of the Released
        Parties.

       

      (g)    If
        any
        action, claim, demand or proceeding (including any governmental investigation)
        shall be brought or asserted against an Indemnified Party entitled to any
        indemnification
        provided for under this Section 5.02,
        such
        Indemnified Party shall promptly notify the Servicer in writing; provided,
        however, that failure to give such notification shall not affect the
        indemnification provided hereunder except to the extent the Servicer shall
        have
        been actually prejudiced as a result of such failure.

       

      SECTION
        5.03    Merger
        or Consolidation of, or Assumption of the Obligations of,
        Servicer. 
        Any Person (a) into which the Servicer may be merged or consolidated and
        which succeeds to any material part of the electric distribution business
        of the
        Servicer, (b) which results from the division of the Servicer into two or
        more Persons and which succeeds to any material part of the electric
        distribution business of the Servicer, (c) which may result from any merger
        or consolidation to which the Servicer shall be a party and which succeeds
        to
        any material part of the electric distribution business of the Servicer,
        (d) which may succeed to the properties and assets of the Servicer
        substantially as a whole and which succeeds to any material part of the electric
        distribution business of the Servicer or (e) which may otherwise succeed to
        any material part of the electric distribution business of the Servicer,
        which
        Person in any of the foregoing cases executes an agreement of assumption
        to
        perform every obligation of the Servicer hereunder, shall be the successor
        to
        the Servicer under this Agreement without further act on the part of any
        of the
        parties to this Agreement; provided, however, that (i) immediately after
        giving effect to such transaction, no representation and warranty made pursuant
        to Section 5.01
        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, the
        PSCWV and the Indenture Trustee an Officers’ Certificate and an Opinion of
        Counsel stating that such consolidation, merger or succession and such agreement
        of assumption comply with this Section 5.03
        and that
        all conditions precedent provided for in this Agreement relating to such
        transaction have been complied with, (iii) the Rating Agencies shall have
        received prior written notice of such transaction, (iv) the Servicer shall
        have delivered to the Issuer, the Indenture Trustee, the PSCWV and each Rating
        Agency an Opinion of Counsel either stating that, in the opinion of such
        counsel, (A) all filings, including filings with the PSCWV pursuant to the
        Statute, have been executed and filed that are necessary to preserve fully
        and
        protect fully the interests of the Issuer in the Transferred Environmental
        Control Property and reciting the details of such filings or (B) no such
        action shall be necessary to preserve and protect such interests.
        Notwithstanding anything herein to the contrary, the execution of the above
        referenced agreement of assumption and compliance with clauses (i), (ii),
        (iii)
        and (iv) above shall be conditions precedent to the consummation of the
        transactions referred to in clause (a), (b), (c), (d) or (e) above.

       

      SECTION
        5.04    Assignment
        of Servicer’s Obligations. 
        The Servicer may not assign its obligations hereunder to any successor unless
        either (i) the Rating Agency Condition has been

      
         

        
          
            
            

          

          
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      satisfied
        and the PSCWV has approved such assignment, or (ii) the Servicer is
        replaced by a Successor Servicer pursuant to Section 6.04.

       

      SECTION
        5.05    Limitation
        on Liability of Servicer and Others. 

       

      (a)    Neither
        the Servicer nor any of its directors, officers, employees or agents shall
        be
        liable to the Issuer or its managers, the Indenture Trustee, the Environmental
        Control Bondholders, the PSCWV or any other Person, except as provided under
        this Agreement, for any action taken or for refraining from the taking of
        any
        action pursuant to this Agreement or for errors
        in
        judgment; provided, however, that this provision shall not protect either
        the
        Servicer or any other Person against any liability that would otherwise be
        imposed by reason of willful misconduct, bad faith or negligence in the
        performance of its duties or by reason of reckless disregard of obligations
        and
        duties under this Agreement and provided further that nothing in this
Section 5.05
        shall
        limit the Servicer’s liabilities or obligations of the Servicer to indemnify as
        set forth in Section 5.02
        of this
        Agreement. The Servicer and any of its directors, officers, employees or
        agents
        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
        Agreement.

       

      (b)    The
        Servicer acknowledges that the PSCWV has authority to enforce all provisions
        of
        this Agreement for the benefit of Customers, including without limitation
        the
        enforcement of Section
        5.02(c),
        provided that such enforcement is consistent with the State Pledge.

       

      (c)    Except
        as
        provided in this Agreement, the Servicer shall not be under any obligation
        to
        appear in, prosecute or defend any legal action that is not incidental to
        its
        duties to service the Transferred Environmental Control Property in accordance
        with this Agreement or related to its obligation to pay indemnification,
        and
        that in its reasonable opinion may cause it to incur any expense or
        liability.

       

      SECTION
        5.06    Potomac
        Edison Not To Resign as Servicer. 
        Subject to the provisions of Sections
        5.03
        and
5.04,
        Potomac
        Edison shall not resign from the obligations and duties hereby imposed on
        it as
        Servicer under this Agreement except upon a determination that the performance
        of its duties under this Agreement shall no longer be permissible under
        applicable Requirements of Law. Notice of any such determination permitting
        the
        resignation of Potomac Edison shall be communicated to the Issuer, the PSCWV,
        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 PSCWV and
        the
        Indenture Trustee concurrently with or promptly after such notice. No such
        resignation shall become effective until a Successor Servicer has been approved
        by the PSCWV and shall have assumed the servicing obligations and duties
        hereunder of Potomac Edison in accordance with Section 6.04.

       

      SECTION
        5.07    Defending
        Transferred Environmental Control Property Against Claims. 
        The Servicer shall institute any action or proceeding necessary to compel
        performance by each Third Party (at the earliest possible time) of any of
        their
        respective obligations or duties under

      
         

        
          
            
            

          

          
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      applicable
        Requirements of Law with respect to the Transferred Environmental Control
        Property. In addition, the Servicer shall institute any action or proceeding
        necessary to compel performance by the PSCWV or the State of West Virginia,
        or
        any political subdivision, agency or other instrumentality of the State of
        West
        Virginia, of any of their respective obligations or duties under applicable
        Requirements of Law with respect to the Transferred Environmental Control
        Property. The Servicer further agrees to take such legal or administrative
        actions, including without limitation 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
        any
        Financing Order.  In any of the aforementioned actions or proceedings, the
        Servicer shall not be required to advance its own funds to institute any
        such
        actions or proceedings and the Servicer's obligations pursuant to this
Section 5.07 shall continue for only so long as the Servicer is
        being reimbursed on a current basis for its costs and expenses incurred in
        undertaking such obligations.  In
        any
        proceedings related to the exercise of the power of eminent domain by any
        municipality to acquire a portion of Potomac Edison’s electric distribution
        facilities, the Servicer shall assert that the court ordering such condemnation
        must treat such municipality as a successor to Potomac Edison under the Statute
        and Financing Order. The costs and expenses of any action described in this
        Section
        5.07
        shall be
        payable from the Collection Account as an Operating Expense in accordance
        with
Section
        8.02(e)
        of the
        Indenture.

       

      SECTION
        5.08    Servicing
        Fee.

       

      (a)    Issuer
        agrees to pay the Servicer, solely to the extent amounts are available therefor
        in accordance with the Indenture, the Servicing Fee with respect to all Series
        of Environmental Control Bonds issued by the Issuer. The Servicing Fee with
        respect to a Series for a Payment Date shall be as follows: so long as Potomac
        Edison acts as the Servicer, the Servicing Fee will be 0.05% per annum of
        the
        initial principal balance of the Environmental Control Bonds, payable
        semi-annually, in arrears; if a Successor Servicer is appointed, the Servicing
        Fee will be based on an amount approved by the PSCWV, but not in excess of
        a per
        annum rate equal to 1.25% of the initial principal balance of the Environmental
        Control Bonds. 

       

      (b)    The
        Servicing Fee set forth in Section 5.08(a)
        above
        and the expenses provided for in Section 5.08(c)
        below
        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 such date shall be added to the Servicing Fee payable on
        the
        subsequent Payment Date.

       

      (c)    The
        Issuer shall pay all expenses incurred by the Servicer in connection with
        its
        activities hereunder (including any fees to and disbursements by accountants,
        counsel, or any other Person, any taxes imposed on the Servicer (other than
        taxes based on the Servicer’s net income) and any expenses incurred in
        connection with reports to Environmental Control Bondholders, subject to
        the
        priorities set forth in Section 8.02(e) of the Indenture). Except for
        filing fees and fees and expenses for attorneys, accountants, printing or
        other
        professional services retained by the Issuer, (or procured by the Servicer
        on
        behalf of the Issuer) to meet the Issuer’s obligations under the Basic
        Documents, the Servicer shall be required to pay all expenses incurred by
        the
        Servicer in performing its activities hereunder from the Servicer’s
        own

      
         

        
          
            
            

          

          
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      resources,
        without additional reimbursement as Operating Expenses in accordance with
        Section 8.02(e) of the Indenture.

       

      SECTION
        5.09    Servicer
        Advances. 
        The Servicer shall not make any advances of interest on or principal of any
        series of the Bonds.

       

      SECTION
        5.10    Subservicing. 
        The Servicer may at any time appoint a subservicer to perform all or any
        portion
        of its obligations as Servicer hereunder; provided, however, that the Servicer
        shall not permit any Third Party to bill or collect Environmental Control
        Charges on behalf
        of
        the Issuer except (a) as a subcontractor under the active supervision of
        the Servicer or (b) as required by applicable Requirement of Law and to the
        extent permitted by applicable Requirement of Law or regulation, after written
        notice of such appointment is furnished to the Rating Agencies; provided
        further, however, that the Servicer shall remain obligated and be liable
        to the
        Issuer, the Indenture Trustee, and the Environmental Control Bondholders
        and the
        PSCWV for the servicing and administering of the Transferred Environmental
        Control Property in accordance with the provisions hereof without diminution
        of
        such obligation and liability by virtue of the appointment of such subservicer
        and to the same extent and under the same terms and conditions as if the
        Servicer alone were servicing and administering the Transferred Environmental
        Control Property. The fees and expenses of the subservicer shall be as agreed
        between the Servicer and its subservicer from time to time, and none of the
        Issuer (or its members or managers), the Indenture Trustee, any Environmental
        Control Bondholder or the PSCWV shall have any responsibility
        therefor.

       

      SECTION
        5.11    Remittances. 

       

      (a)    Subject
        to Section 5.11(b),
        the
        Servicer shall remit daily all Estimated Environmental Control Charge
        Collections (from whatever source) and all proceeds of other Collateral of
        the
        Issuer, if any, received by the Servicer to the Indenture Trustee under the
        Indenture, for deposit pursuant to the Indenture.

       

      (b)    Notwithstanding
        the foregoing clause (a), as long as (i) Potomac Edison or any successor to
        Potomac Edison’s electric distribution business remains the Servicer,
        (ii) no Servicer Default has occurred and is continuing and
        (iii) (A) Potomac Edison or such successor maintains a long-term
        rating of “A+” or better by Standard & Poor’s, a long-term rating of
“A2” or better by Moody’s and a long-term rating of “A” or better by Fitch, if
        rated by Fitch, or a short-term rating of “A-1” by Standard & Poor’s, a
        short-term rating of “P-1” by Moody’s and a short-term rating of “F1” by Fitch,
        if rated by Fitch or (B) the Rating Agency Condition shall have been
        satisfied with respect to all Rating Agencies (to which prior written notice
        will be sent) (and any conditions or limitations imposed by such Rating Agencies
        in connection therewith are complied with), the Servicer need not make the
        daily
        remittances required by such clause (a), but in lieu thereof, shall remit
        all
        Estimated Environmental Control Charge Collections (from whatever source)
        and
        all proceeds of other Collateral of such Issuer, if any, received by the
        Servicer during any Collection Period to the Indenture Trustee, for deposit
        pursuant to the Indenture, not later than the Business Day immediately preceding
        the 25th day of each month. 

      
         

        
          
            
            

          

          
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      (c)    On
        or
        before each Remittance Date where the Servicer is not remitting a fixed sum
        on
        each date during the Billing Period, the Servicer will prepare and furnish
        to
        the Issuer and the Indenture Trustee a statement setting forth the aggregate
        amount remitted or to be remitted by the Servicer to the Indenture Trustee
        for
        deposit on such Remittance Date pursuant to this Section 5.11
        and the
        Indenture.

       

      (d)    On
        or
        before each Reconciliation Date, the Servicer will reconcile Actual
        Environmental Control Charge Collections with Estimated Environmental Control
        Charge Collections in respect of the immediately preceding Reconciliation
        Period. The Servicer shall calculate the amount of any Remittance Shortfall
        or
        Excess Remittance for the immediately preceding
        Reconciliation Period, shall allocate such Remittance Shortfall or Excess
        Remittance to each outstanding Series ratably based on the Environmental
        Control
        Charges billed for such Series for such Reconciliation Period, and (A) if
        a
        Remittance Shortfall exists, the Servicer shall make a supplemental remittance,
        to the applicable General Subaccount of the applicable Collection Account
        for
        each Series within two (2) Servicer Business Days, or (B) if an Excess
        Remittance exists, the Servicer shall be entitled either (i) to reduce the
        amount of (A) each Daily Remittance, or, (B) if Potomac Edison has satisfied
        the
        conditions of Section
        5.11(b),
        each
        Monthly Remittance, which the Servicer subsequently remits to the applicable
        General Subaccount of the applicable Collection Account for application to
        the
        amount of such Excess Remittance until the balance of such Excess Remittance
        has
        been reduced to zero, the amount of such reduction becoming the property
        of the
        Servicer or (ii) so long as such withdrawal would not cause the amounts on
        deposit in the applicable General Subaccount or the applicable Excess Funds
        Subaccount for any Series to be insufficient for the payment of the next
        installment of interest on the Environmental Control Bonds or principal due
        at
        maturity on the next Payment Date or upon acceleration on or before the next
        Payment Date, to be paid immediately from such General Subaccount or Excess
        Funds Subaccount such Series’ allocable share of the amount of such Excess
        Remittance, such payment becoming the property of the Servicer. If there
        is a
        Remittance Shortfall, the amount which the Servicer remits to the applicable
        General Subaccounts of the applicable Collection Accounts on the relevant
        date
        set forth above shall be increased by the amount of such Remittance Shortfall,
        provided that
        remittance of such increase will be the sole financial responsibility of
        the
        Servicer and shall neither be considered an Operating Expense nor be paid
        out of
        the Collection Account or included in the calculation of True-Up
        Adjustments.

       

      SECTION
        5.12    Payment
        Date Statements. 
        At least three Business Days before each Payment Date with respect to each
        Series of Environmental Control Bonds, the Servicer shall prepare and furnish
        to
        the Issuer and the Indenture Trustee a statement setting forth the amounts
        to be
        paid to Environmental Control Bondholders of such Series pursuant to
        Section 8.02(e) of the Indenture, as well as all other amounts to be paid
        pursuant to Section 8.02(e) of the Indenture, including the Capital Equity
        Return to be paid to the Seller.

       

      SECTION
        5.13    Schedule
        Revision Date Schedules. 
        Prior to each Schedule Revision Date, the Servicer shall deliver to the Issuer
        replacement Schedules A and replacement Schedules B to each Series
        Supplement to which such Schedule Revision Date applies, adjusted to reflect
        the
        event giving rise to such Schedule Revision Date and setting forth the Expected
        Sinking Fund Schedule for each Payment Date applicable thereto.

      
         

        
          
            
            

          

          
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      SECTION
        5.14    Protection
        of Title. 
        The Servicer shall execute and file such filings, including filings with
        the
        PSCWV 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 fully to
        preserve, maintain, and protect the interests of the Issuer in the Transferred
        Environmental Control Property, including all filings required under the
        Statute
        relating to the transfer of the ownership or security interest in the
        Transferred Environmental Control Property by the Seller to the Issuer or
        any
        security interest granted by the Issuer in the Transferred Environmental
        Control
        Property. The Servicer shall deliver (or cause to be delivered) to the Issuer
        file-stamped copies of, or filing receipts for, any document filed as provided
        above, as soon as available following such filing.

       

      ARTICLE
        VI

       

      SERVICER
        DEFAULT

       

      SECTION
        6.01    Servicer
        Default. 
        If any one of the following events (a “Servicer
        Default”)
        shall
        occur and be continuing:

       

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

       

      (b)    any
        failure by the Servicer or, so long as the Transferor and the Servicer are
        the
        same Person, the Transferor, as applicable, duly to observe or perform in
        any
        material respect any other covenant or agreement of the Servicer or the
        Transferor, as the case may be, set forth in this Agreement or any other
        Basic
        Document to which it is a party, which failure shall (i) materially and
        adversely affect the Transferred Environmental Control Property or the rights
        of
        Environmental Control Bondholders and (ii) continue unremedied for a period
        of 60 days after written notice of such failure shall have been given to
        the Servicer, the PSCWV or the Transferor, as the case may be, by the Issuer
        or
        the Indenture Trustee or after discovery of such failure by an officer of
        the
        Servicer, the PSCWV or the Transferor, as the case may be; or

       

      (c)    any
        representation or warranty made by the Servicer in this Agreement shall prove
        to
        have been incorrect in a material respect when made, which has a material
        adverse effect on the Issuer or the Environmental Control Bondholders and
        which
        material adverse effect continues unremedied for a period of 60 days after
        the
        date on which written notice thereof shall have been given to the Servicer
        by
        the Issuer, the PSCWV or the Indenture Trustee; or

       

      (d)    an
        Insolvency Event occurs with respect to the Servicer;

       

      then,
        and
        in each and every case, so long as the Servicer Default shall not have been
        remedied, the Indenture Trustee, as assignee of the Issuer, may, or at the
        direction of the Environmental Control Bondholders of a majority of the
        Outstanding principal amount of the Environmental Control Bonds of all Series
        or
        by the PSCWV, by notice then given in writing to the Servicer (a “Termination
        Notice”)
        shall
        terminate all the Servicer’s rights and obligations (other than the
        indemnification obligations set forth in Section 5.02
        hereof
        and the Servicer’s obligation under Section 6.04
        to
        continue performing its functions as Servicer until a Successor Servicer
        is

      
         

        
          
            
            

          

          
            18

            
              

            

          

          
            
            

          

        

      

       

      appointed)
        of the Servicer under this Agreement. In addition, upon a Servicer Default
        described in Section 6.01(a),
        the
        Issuer or the Indenture Trustee may apply to the PSCWV or any court of competent
        jurisdiction to order the sequestration and payment of Environmental Control
        Charge Collections arising with respect to the Transferred Environmental
        Control
        Property for the benefit of the Environmental Control Bondholders, the Issuer,
        the Indenture Trustee, and any other assignee and financing parties (each
        as
        defined in the Statute). The Trustee shall not give a Termination Notice
        upon
        instruction of the PSCWV unless the Rating Agency Condition is
        satisfied.

       

      On
        or
        after the receipt by the Servicer of a Termination Notice, all authority
        and
        power of the Servicer under this Agreement, whether with respect to the
        Transferred Environmental Control Property, including the Environmental Control
        Charges, or otherwise, shall, upon appointment of a Successor Servicer pursuant
        to Section 6.04,
        without
        further action, pass to and be vested in such Successor Servicer 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, including, but not limited to, completing the transfer
        of
        the Transferred Environmental Control Property Documentation and related
        documents. The predecessor Servicer shall cooperate with the Successor Servicer,
        the Indenture Trustee and the Issuer in effecting the termination of the
        responsibilities and rights of the predecessor Servicer under this Agreement,
        including the transfer to the Successor Servicer for administration by it
        of all
        cash amounts that are then held by the predecessor Servicer for remittance
        to
        the Collection Account or the Transferor, or that are thereafter be received
        by
        it. As soon as practicable after receipt by the Servicer of such Termination
        Notice, the Servicer shall deliver the Transferred Environmental Control
        Property Documentation to the Successor Servicer. 

       

      All
        reasonable costs and expenses (including attorneys fees and expenses) incurred
        in connection with transferring the Environmental Control Property Documentation
        to the Successor Servicer and amending this Agreement to reflect such succession
        as Servicer pursuant to this Section shall be paid by the predecessor
        Servicer upon presentation of reasonable documentation of such costs and
        expenses. Termination of Potomac Edison as Servicer shall not terminate Potomac
        Edison’s rights or obligations as Transferor under the Transfer Agreement.

       

      SECTION
        6.02    Notice
        of Servicer Default. 
        The Servicer shall deliver to the Issuer, the PSCWV, a Responsible Officer
        of
        the Indenture Trustee and each Rating Agency promptly after having obtained
        knowledge thereof, but in no event later than five Business Days thereafter,
        written notice in an Officers’ Certificate of any event or circumstance (such as
        a breach of any representation or warranty made by the Servicer in this
        Agreement) which, if not remedied, would become a Servicer Default under
        Section 6.01.

       

      SECTION
        6.03    Waiver
        of Past Defaults. 
        The Indenture Trustee, with the written consent of the PSCWV and the
        Environmental Control Bondholders of a majority of the Outstanding principal
        amount of the Environmental Control Bonds of all Series, may 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 remittances to
        the
        Indenture Trustee of Environmental Control Charge Collections from Transferred
        Environmental Control Property in

      
         

        
          
            
            

          

          
            19

            
              

            

          

          
            
            

          

        

      

       

      accordance
        with Section 5.11
        of this
        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 Agreement. No such waiver shall extend
        to any
        subsequent or other default or impair any right consequent thereto.

       

      SECTION
        6.04    Appointment
        of Successor.

       

      (a)    In
        the
        event of the Servicer’s termination hereunder, the Indenture Trustee, as
        assignee of the Issuer, at the direction of the Environmental Control
        Bondholders of a majority of
        the
        outstanding principal amount of the Environmental Control Bonds or the PSCWV,
        shall appoint a Successor Servicer, and the Successor Servicer shall accept
        its
        appointment by a written assumption in form acceptable to the Issuer and
        the
        Indenture Trustee. If, within 30 days after the delivery of the Termination
        Notice, a Successor Servicer shall not have been appointed and accepted such
        appointment, the Indenture Trustee may petition a court of competent
        jurisdiction to appoint a Successor Servicer under this Agreement. A Person
        shall qualify as a Successor Servicer only if (i) such Person is permitted
        under PSCWV Regulations to perform the duties of the Servicer pursuant to
        the
        Statute, the Financing Order and this Agreement, (ii) the Rating Agency
        Condition has been satisfied with respect to all Rating Agencies,
        (iii) such Person enters into a servicing agreement with the Issuer having
        substantially the same provisions as this Agreement, and (iv) if
        applicable, its compensation is approved or acquiesced to by the PSCWV pursuant
        to Section 5.08(a) hereof.

       

      (b)    Notwithstanding
        the Servicer’s receipt of a Termination Notice, pursuant to Section 6.01
        or the
        Servicer’s resignation in accordance with the terms of this Agreement, the
        predecessor Servicer shall continue to perform its functions as Servicer
        under
        this Agreement and shall be entitled to receive the requisite portion of
        the
        Servicing Fees, until a Successor Servicer shall have assumed, in writing,
        the
        obligations of the Servicer hereunder as described below.

       

      (c)    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 relating thereto placed on the
        predecessor Servicer and shall be entitled to the Servicing Fees and all
        the
        rights granted to the predecessor Servicer by the terms and provisions of
        this
        Agreement.

       

      (d)    The
        Successor Servicer may not resign unless it is prohibited from serving as
        such
        by applicable Requirements of Law.

       

      SECTION
        6.05    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.

       

      SECTION
        6.06    Servicer
        Default Under Related Transaction. 
        If a “servicer default” shall occur under the Transferred Environmental Control
        Property Servicing Agreement dated April 11, 2007, between Monongahela Power
        Company, as servicer, and MP Environmental Funding LLC, as issuer, and it
        becomes necessary to find a successor servicer under such agreement, the
        Servicer

      
         

        
          
            
            

          

          
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      agrees
        to
        assume such role as successor servicer under such servicing agreement in
        accordance with the terms thereof, including,
        for avoidance doubt, for the same servicing fee provided for
        thereunder.

       

      ARTICLE
        VII

       

      MISCELLANEOUS
        PROVISIONS

       

      SECTION
        7.01    Amendment.
        

       

      (a)    Subject
        to Section
        7.01(b)
        below,
        this Agreement may be amended by the Servicer and the Issuer, with the consent
        of the Indenture Trustee and the satisfaction of the Rating Agency Condition.
        Promptly after the execution of any such amendment and consent, the Issuer
        shall
        furnish written notification of the substance of such amendment or consent
        to
        each of the Rating Agencies. Prior to the execution of any amendment to this
        Agreement, the Issuer and the Indenture Trustee shall be entitled to receive
        and
        rely upon an Opinion of Counsel stating that the execution of such amendment
        is
        authorized or permitted by this Agreement and the Opinion of Counsel referred
        to
        in Section
        3.10.
        Subject
        to paragraph (b) below, the Issuer and the Indenture Trustee may, but shall
        not
        be obligated to, enter into any such amendment which affects their own rights,
        duties or immunities under this Agreement or otherwise.

       

      (b)    Notwithstanding
        anything to the contrary in Section
        7.01(a),
        nor any
        waiver required by Section
        6.03
        hereof,
        no amendment or modification of this Agreement shall be effective except
        upon
        satisfaction of the conditions precedent in this Section
        7.01(b).

       

      (i)    PSCWV
        Condition. 
        At least 16 days prior to the effectiveness of any such amendment or
        modification, and after obtaining the other necessary approvals set forth
        in
Section 7.01(a),
        except
        for the consent of the Indenture Trustee and the Environmental Control
        Bondholders if the consent of the Environmental Control Bondholders is required
        or sought by the Indenture Trustee in connection with such amendment or
        modification, the Issuer shall have delivered to the PSCWV’s executive director
        and general counsel written notification of any proposed amendment or
        modification, which notification shall contain:

       

      (A)    a
        reference to Case Nos. 05-0402-E-CN and 05-0750-E-PC and any other case number
        under which a Financing Order has been issued;

       

      (B)    an
        Officer’s Certificate stating that the proposed amendment or modification has
        been approved by all parties to this Agreement; and

       

      (C)    a
        statement identifying the person to whom the PSCWV is to address any response
        to
        the proposed amendment or to request additional time.

      
         

        
          
            
            

          

          
            21

            
              

            

          

          
            
            

          

        

      

       

      (ii)   The
        PSCWV
        or its authorized representative shall, within 15 days of receiving the
        notification complying with Section
        7.01(b)(i)
        above,
        either:

       

      (A)    provide
        notice of its determination that the proposed amendment or modification will
        not
        under any circumstances have the effect of increasing the ongoing qualified
        costs related to the Environmental Control Bonds,

       

      (B)    provide
        notice of its consent or lack of consent to the person specified in Section
        7.01(b)(i)(C)
        above,
        or

       

      (C)    be
        conclusively deemed to have consented to the proposed amendment or
        modification,

       

      unless,
        within 15 days of receiving the notification complying with Section
        7.01(b)(i)
        above,
        the PSCWV or its authorized representative delivers to the office of the
        person
        specified in Section
        7.01(b)(i)(C)
        above
        with a written statement requesting an additional amount of time not to exceed
        15 days in which to consider whether to consent to the proposed amendment
        or
        modification. If the PSCWV or its authorized representative requests an
        extension of time in the manner set forth in the preceding sentence, then
        the
        PSCWV shall either provide notice of its consent or lack of consent or notice
        of
        its determination that the proposed amendment or modification will not under
        any
        circumstances increase ongoing qualified costs to the person specified in
        Section
        7.01(b)(i)(C)
        above
        not later than the last day of such extension of time or be conclusively
        deemed
        to have consented to the proposed amendment or modification on the last day
        of
        such extension of time. Any amendment or modification requiring the consent
        of
        the PSCWV shall become effective on the later of (i) the date proposed by
        the
        parties to such amendment or modification or (ii) the first day after the
        expiration of the 15-day period provided for in this Section
        7.01(b)(ii),
        or, if
        such period has been extended pursuant hereto, the first day after the
        expiration of such period as so extended.

       

      (c)    For
        the
        purpose of this Section
        7.01,
        an
“authorized representative” of the PSCWV means any person authorized to act on
        behalf of the PSCWV, as evidenced by an Opinion of Counsel (which may be
        the
        general counsel) to the PSCWV.

       

      SECTION
        7.02    Notices. 

       

      (a)    All
        demands, notices and communications upon or to the Servicer, the Issuer,
        the
        Indenture Trustee or the Rating Agencies under this Agreement shall be in
        writing, delivered personally, via facsimile, reputable overnight courier
        or by
        first class mail, postage prepaid, and shall be deemed to have been duly
        given
        upon receipt,

       

      (i)    in
        the
        case of the Servicer, to Potomac Edison, 800 Cabin Hill Drive, Greensburg,
        Pennsylvania 15601, Attention of Amanda J. Skov, Esq.; 

       

      (ii)   in
        the
        case of the Issuer or the Indenture Trustee, at the address provided for
        notices
        or communications to such Person in the Indenture; 

      
         

        
          
            
            

          

          
            22

            
              

            

          

          
            
            

          

        

      

       

      (iii)   in
        the
        case of Moody’s, to Moody’s Investors Service, Inc., ABS Monitoring Department,
        99 Church Street, New York, New York 10007;

       

      (iv)   in
        the
        case of Standard & Poor’s, to Standard & Poor’s Ratings
        Services, a division of The McGraw-Hill Companies, Inc., 55 Water Street,
        42nd Floor, New York, New York 10041, Attention of Asset Backed
        Surveillance Department;

       

      (v)   in
        the
        case of Fitch, to Fitch, Inc., One State Street Plaza, New York, New York
        10004,
        Attention of ABS Surveillance; or, as to each of the foregoing, at such other
        address as shall be designated by written notice to the other parties; and
        

       

      (vi)   in
        the
        case of the PSCWV, Public Service Commission of West Virginia, 201 Brooks
        Street, Charleston, West Virginia 25323, Attention: Executive
        Secretary.

       

      SECTION
        7.03    Limitations
        on Rights of Others. 
        The provisions of this Agreement are solely for the benefit of the Servicer,
        the
        Seller, the Issuer (including its managers and members), the Indenture Trustee,
        on behalf of itself and the Environmental Control Bondholders, and the PSCWV,
        on
        behalf of itself and the Customers, and nothing in this Agreement, whether
        express or implied, shall be construed to give to any other Person any legal
        or
        equitable right, remedy or claim in any Collateral or under or in respect
        of
        this Agreement or any covenants, conditions or provisions contained herein.
        Notwithstanding anything to the contrary contained herein, for the avoidance
        of
        doubt, any right, remedy or claim to which any Customer may be entitled pursuant
        to the Financing Order and this Agreement may be asserted or exercised only
        by
        the PSCWV for the benefit of such Customer.

       

      SECTION
        7.04    Severability. 
        Any provision of this 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 remaining
        provisions hereof, and any such prohibition or unenforceability in any
        jurisdiction shall not invalidate or render unenforceable such provision
        in any
        other jurisdiction.

       

      SECTION
        7.05    Separate
        Counterparts. 
        This 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
        7.06    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
        7.07    GOVERNING
        LAW. 
        THIS AGREEMENT SHALL BE CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE
        OF
        WEST VIRGINIA, 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.

      
         

        
          
            
            

          

          
            23

            
              

            

          

          
            
            

          

        

      

       

      SECTION
        7.08    Assignment
        to Indenture Trustee.
         The Servicer hereby acknowledges and consents to the 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 Environmental Control
        Bondholders of all right, title and interest of the Issuer in, to and under
        the
        Transferred Environmental Control Property owned by the Issuer and the proceeds
        thereof and of any and all of the Issuer’s rights hereunder to the Indenture
        Trustee. 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, notices or agreements delivered
        pursuant hereto, as to all of which recourse shall be had solely to the assets
        of the Issuer.

       

      SECTION
        7.09    Nonpetition
        Covenants. 
        Notwithstanding any prior termination of this Agreement or the Indenture,
        but
        subject to a court of competent jurisdiction’s rights, upon application
        by the Issuer or the Indenture Trustee, to order the sequestration and payment
        of Environmental Control Revenues arising with respect to the Transferred
        Environmental Control Property, notwithstanding any bankruptcy, reorganization
        or other insolvency proceedings with respect to the debtor, pledgor or
        transferor of the Transferred Environmental Control Property pursuant to
        Section 24-2-4e(k)(4) of the Statute, the Servicer shall not, prior to the
        date which is one year and one day after the termination of the Indenture,
        petition or otherwise invoke or cause the Issuer to invoke the process of
        any
        court or government authority for the purpose of commencing or sustaining
        an
        involuntary case against the Issuer under the federal or state bankruptcy,
        insolvency or similar law or 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
        7.10    Termination. 
        This Agreement shall terminate when all Environmental Control Bonds issued
        by
        the Issuer have been retired, redeemed or defeased in full, and all Operating
        Expenses and other amounts owed by the Issuer under the Indenture have been
        paid
        in full.

      

        SECTION
          7.11 Limitation
          of Liability.
          It is
          expressly understood and agreed by the parties hereto that this Agreement
          is
          executed and delivered by U.S. Bank National Association, not individually
          or
          personally but solely as Indenture Trustee for the benefit of the Environmental
          Control Bondholders, in the exercise of the powers and authority conferred
          and
          vested in it, and nothing herein contained shall be construed as creating
          any
          liability on U.S. Bank National Association, individually or personally,
          to
          perform any covenant either expressed or implied contained herein, all
          such
          liability, if any, being expressly waived by the parties who are signatories
          to
          this Agreement and by any Person claiming by, through or under such parties;
          provided, however, that this provision shall not protect U.S. Bank National
          Association against any liability that would otherwise be imposed by reason
          of
          willful misconduct, bad faith or negligence in the performance of duties
          or by
          reason of reckless disregard of obligations or duties under this
          Agreement.

      

       

      
        
          
          

        

        
          24

          
            

          

        

        
          
          

        

      

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

       

      
        	 	
                PE
                  ENVIRONMENTAL FUNDING LLC,

                Issuer

                 

                 

              
	 	
                by

              	/s/
                Philip L. Goulding
	 	 	
                Title: 
                  Vice President

              
	 	 	
                 

                 

              
	 	
                THE
                  POTOMAC EDISON COMPANY,

                Servicer

                 

                 

              
	 	
                by

              	/s/
                Philip L. Goulding
	 	 	
                Title: 
                  Vice President

              

      

      

      
        	
                Acknowledged
                  and Accepted:

                 

                U.S.
                  BANK NATIONAL ASSOCIATION,

                not
                  in its individual
                  capacity but
                  solely as

                Indenture
                  Trustee
                  on behalf of the

                Environmental
                  Control
                  Bondholders
                  issued by

                the
                  Issuer,

                 

                 

              	 
	
                by

              	/s/
                Melissa A. Rosal	 
	 	
                Title: 
                  Vice President

              	 

      

      

      
        
          
          

        

        
          25

          
            

          

        

        
          
          

        

      

       

      EXHIBIT
        A

       

      SERVICING
        OBLIGATIONS

       

      The
        Servicer agrees to comply with the following with respect to PE Environmental
        Funding LLC, as Issuer:

       

      SECTION
        1.  Definitions. 
        Capitalized
        terms used herein and not otherwise defined shall have the meanings set forth
        in
        Appendix A to the Indenture dated as of April 11, 2007 between the Issuer
        and U.S. Bank National Association, as Indenture Trustee.

       

      SECTION
        2.  Indenture
        Trustee and Servicer Payment Date Statements.  At
        least
        three Business Days before each date on which distributions to the Indenture
        Trustee and Servicer are to be made pursuant to Sections 8.02(e) and (h)
        of the
        Indenture, the Servicer shall provide the Indenture Trustee with a statement
        setting forth the amounts to be distributed to each of the Indenture Trustee
        and
        Servicer pursuant to such Sections.

       

      SECTION
        3.  Payment
        Date Statements. 
At
        least three Business Days before each Payment Date, the Servicer shall provide
        to the Issuer, the Indenture Trustee and each Rating Agency, a statement
        indicating:

       

      
        	 	
                1.

              	
                the
                  amount to be paid to Environmental Control Bondholders of each
                  Series and
                  Class in respect of principal on such Payment Date in accordance
                  with
                  Section 8.02 of the Indenture and each Series Supplement
                  thereto;

              

      

       

      
        	 	
                2.

              	
                the
                  amount to be paid to Environmental Control Bondholders of each
                  Series and
                  Class in respect of interest on such Payment Date in accordance
                  with
                  Section 8.02 of the Indenture and each Series Supplement
                  thereto;

              

      

       

      
        	 	
                3.

              	
                the
                  Environmental Control Bond Balance and the Projected Environmental
                  Control
                  Bond Balance for each Series and Class as of that Payment Date
                  (in each
                  case, after giving effect to the payments on such Payment
                  Date);

              

      

       

      
        	 	
                4.

              	
                the
                  amount on deposit in the General Subaccount for each Series and
                  the
                  Scheduled Funding for each Series, as of that Payment Date (after
                  giving
                  effect to the transfers to be made from or into the General Subaccount
                  on
                  such Payment Date);

              

      

       

      
        	 	
                5.

              	
                the
                  amount on deposit in the Capital Subaccount for each Series as
                  of that
                  Payment Date (after giving effect to the transfers to be made from
                  or into
                  the Capital Subaccount on such Payment
                  Date);

              

      

       

      
        	 	
                6.

              	
                the
                  amount, if any, on deposit in the Excess Funds Subaccount as of
                  that
                  Payment Date (after giving effect to the transfers to be made from
                  or into
                  the Reserve Subaccount on such Payment
                  Date);

              

      

       

      
        
          
          

        

        
          Exhibit
            A-1

          
            

          

        

        
          
          

        

      

       

      
        	 	
                7.

              	
                the
                  amount, if any, on deposit in the Tranche Subaccount (after giving
                  effect
                  to the transfers to be made from or into the Tranche Subaccount
                  on such
                  Payment Date);

              

      

       

      
        	 	
                8.

              	
                the
                  amounts paid to the Indenture Trustee since the preceding Payment
                  Date
                  pursuant to Section 8.02(e) of the
                  Indenture;

              

      

       

      
        	 	
                9.

              	
                the
                  amounts paid to the Servicer since the preceding Payment Date pursuant
                  to
                  Section 8.02(e) of the Indenture;
                  and

              

      

       

      
        	 	
                10.

              	
                the
                  amount of any other transfers and payments to be made on such Payment
                  Date
                  pursuant to Sections 8.02(d), (e), (f), (g) and (i) of the Indenture;
                  and

              

      

       

      
        	 	
                11.

              	
                the
                  then-current Environmental Control Charge for each rate
                  class.

              

      

       

      SECTION
        4.  Remittance
        Date Statements.
        At least
        one Business Day before each Remittance Date, and in the case of Daily
        Remittances, on the last Remittance Date of such month, the Servicer shall
        prepare and furnish to the Issuer and the Indenture Trustee a statement setting
        forth the aggregate amount remitted or to be remitted by the Servicer to
        the
        Indenture Trustee (net of any payments owed to the Servicer in accordance
        with
        Section 5.11(d) of the Servicing Agreement) for deposit on such Remittance
        Date
        pursuant to the Indenture.

       

      SECTION
        5.  True-Up
        Adjustments.

       

      (a)   Prior
        to
        each Calculation Date, the Servicer shall calculate 

       

      (i)    the
        Environmental Control Bond Balance as of such Calculation Date (a written
        copy
        of which shall be delivered by the Servicer to the Indenture Trustee within
        five
        Business Days following such Calculation Date) and

       

      (ii)    the
        revised Environmental Control Charge with respect to the Transferred
        Environmental Control Property in respect of each True-Up Adjustment Date
        such
        that the Servicer projects that Environmental Control Charge Collections
        therefrom allocable to the Issuer will be sufficient so that: 

       

      (A)   the
        Environmental Control Bond Balance on the Payment Date immediately preceding
        the
        next True-Up Adjustment Date will equal the Projected Environmental Control
        Bond
        Balance as of such date or, if earlier with respect to any Series or Class
        of
        Environmental Control Bonds, as of the Payment Date immediately preceding
        the
        Expected Final Payment Date therefor;

      
         

        (B)   the
          amount on deposit in the General Subaccount on the Payment Date immediately
          preceding the next True-Up Adjustment Date will equal the Periodic Bond
          Payment

      

      
        
          
          

        

        
          Exhibit
            A-2

          
            

          

        

        
          
          

        

      

       

                      Requirement
        for such date or, if earlier with respect to any Series or Tranche of
        Environmental Control Bonds, as of the Payment Date immediately preceding
        the
        Expected Final Payment Date therefor;

       

      (C)   the
        amount on deposit in the Capital Subaccount on the Payment Date immediately
        preceding the next True-Up Adjustment Date will equal its required level
        for
        such date or, if earlier with respect to any Series or Tranche of Environmental
        Control Bonds, as of the Payment Date immediately preceding the Expected
        Final
        Payment Date therefor; 

       

      (D)   the
        amount on deposit in the Excess Funds Subaccount on the Payment Date immediately
        preceding the next True-Up Adjustment Date, will equal zero; and

       

      (E)   the
        Environmental Control Charge Collections will provide for (i) amortization
        of
        the remaining outstanding principal balance of each Series in accordance
        with
        the Expected Sinking Fund Schedule therefor, (ii) payment of all Operating
        Expenses of the Issuer when due in accordance with the Indenture and (iii)
        deposits to the General Subaccount such that the balance therein will equal
        the
        Periodic Bond Payment Requirement on each Payment Date.

       

      (b)   On
        each
        Semi-Annual Calculation Date, the Servicer shall file a Semi-Annual True-Up
        Adjustment Filing with the PSCWV. On each Quarterly Calculation Date and
        Monthly
        Calculation Date, the Servicer may file a Quarterly True-Up Adjustment Filing
        or
        Monthly True-Up Adjustment Filing, as the case may be, if necessary. Each
        True-Up Adjustment Filing shall include the data specified in the Statute
        and
        the Financing Order.

       

      (c)   On
        each
        True-Up Adjustment Date, the Servicer shall 

       

      (i)    take
        all
        reasonable actions and make all reasonable efforts to effectuate all adjustments
        to the Environmental Control Charge either approved by the PSCWV or effective
        on
        an interim basis pending final approval and

       

      (ii)   promptly
        send to the Indenture Trustee copies of all material notices and documents
        relating to such adjustments.

       

      (d)   [On
        each
        True-Up Adjustment Date, the Servicer shall provide Moody’s with a schedule
        indicating any changes to the Environmental Control Charge. ]

       

      (e)   If
        deemed
        appropriate by the Servicer to protect Environmental Control Bondholders
        and to
        remedy a significant and recurring variance between Actual Environmental
        Control
        Charge Collections and Estimated

       

      
        
          
          

        

        
          Exhibit
            A-3

          
            

          

        

        
          
          

        

      

       

                    
        Environmental Control Charge Collections, as authorized by the Financing
        Order,
        the Servicer shall file Non-Routine True-Up Adjustments to the Environmental
        Control Charge (as defined in the Financing Order) to accommodate material
        changes to the True-Up Mechanism. Such filings shall be made at least 90
        days
        prior to the proposed effective date of the proposed adjustments. The Servicer
        shall provide notice of such non-routine adjustment and resulting change
        to the
        Environmental Control Charge to Fitch.

       

      
        
          
          

        

        
          Exhibit
            A-4

          
            

          

        

        
          
          

        

         

      

      ATTACHMENT
        A

       

      SERVICING
        PROCEDURES

       

      The
        Servicer agrees to comply with the following servicing procedures to assess
        its
        compliance with applicable servicing criteria.

       

      SECTION
        1.  Definitions.

       

      (a)   Whenever
        used in this Attachment A, the following words and phrases shall have the
        following meanings:

       

      Applicable
        MDMA
        means,
        with respect to each Customer, the meter data management agent or Third Party,
        if any, providing meter reading services for that Customer's
        account.

       

      Applicable
        Third Party
        means,
        with respect to each Customer, the Third Party, if any, providing billing
        or
        metering services to that Customer.

       

      Billed
        Environmental Control Charges
        means
        the amounts billed to Customers pursuant to the Environmental Control Charge,
        whether billed directly to such Customers by the Servicer or indirectly through
        a Third Party. 

       

      Bills
        means
        each of the periodic bills and the Closing Bills issued to Customers or Third
        Parties by Potomac Edison.

       

      Budget
        Billing Plan
        means a
        levelized payment plan offered by Potomac Edison, which, if elected by a
        Customer, provides for level monthly Bill charges to such Customer. For
        residential Customers, this charge is calculated by calculating actual
        electricity charges for the previous year and dividing this amount by twelve.
        The number which results from this calculation is charged to the residential
        Customer each month. In the twelfth month, Potomac Edison bills the residential
        Customer for actual use in that month, adjusted for any excess or deficit
        the
        Customer has paid Potomac Edison over the prior eleven months. If the Customer
        owes Potomac Edison $4 or more over the normal budget amount, that Customer
        has
        the option of repaying the full amount in the twelfth month, or spreading
        the
        amount of this deficit in equal installments over the first four months of
        the
        Customer's next budget year. The procedure is similar for small industrial
        and
        commercial Customers.

       

      Closing
        Bill
        means
        the final bill issued to a Customer at the time service is
        terminated.

       

      Environmental
        Control Charge Effective Date
        means
        the date on which the initial Environmental Control Charge goes into effect
        pursuant to the Financing Order.

       

      Net
        Write-Off Percent
        means
        the number (expressed as a percent) equal to

       

      
        	 	
                ·

              	
                the
                  amount by which Write-Offs attributable to a particular billing
                  period
                  exceed Write-Off recoveries attributable to such billing period,
                  divided
                  by

              

      

       

      
        	 	
                ·

              	
                the
                  total billed revenue attributable to such billing period.
                  

              

      

       

      
        
          
          

        

        
          Attachment
            A-1

          
            

          

        

        
          
          

        

      

       

      Servicer
        Policies and Practices
        means,
        with respect to the Servicer’s duties under this Exhibit A, 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.

       

      True-Up
        Adjustment Filing
        has,
        with respect to the Issuer, the meaning given to such term in Appendix
        A.

       

      Variables
        includes
        the following variables used in calculating True-Up Adjustments:

       

      
        	 	
                ·

              	
                the
                  estimated Net Write-Off Percent;
                  and

              

      

       

      
        	 	
                ·

              	
                the
                  projected billed consumption to which the Environmental Control
                  Charge
                  applies.

              

      

       

      Write-Offs
        means
        arrears that remain unpaid by Customers generally as of 45 days after the
        issuance of the Closing Bills containing such charges, unless payment
        arrangements are made and are being kept.

       

      SECTION
        2.  Data
        Acquisition.

       

      (a)   Installation
        and Maintenance of Meters.
        Except
        to the extent that a Third Party is responsible for such services, the Servicer
        shall use its best efforts to cause to be installed, replaced and maintained
        meters in such places and in such condition as will enable the Servicer to
        obtain usage measurements for each Customer approximately every thirty days
        or
        as provided in the applicable tariff.

       

      (b)   Meter
        Reading.
        At least
        once each calendar month, the Servicer shall obtain usage measurements from
        the
        Applicable MDMA for each Customer; provided, however, that the Servicer may
        determine any Customer’s usage on the basis of estimates in accordance with
        applicable PSCWV 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, but not limited to, 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 or any Third Party as a result of new metering and/or billing
        technologies.

       

      SECTION
        3.  Usage
        and Bill Calculation.

       

      The
        Servicer 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 applicable PSCWV Regulations) at least once
        each
        calendar month and shall determine therefrom each Customer’s individual charge
        relating to the Environmental Control Charge to be included on such Customer’s
        Bill pursuant to the Financing Order and PSCWV Regulations.

       

      
        
          
          

        

        
          Attachment
            A-2

          
            

          

        

        
          
          

        

      

      SECTION
        4.  Billing.

       

      The
        Servicer shall implement the Environmental Control Charge as of the
        Environmental Control Charge Effective Date and shall thereafter bill each
        Customer or the Applicable Third Party for the respective Customer’s outstanding
        current and past due charges relating to the Environmental Control Charge,
        accruing until all payments of principal and interest on each Series of
        Environmental Control Bonds and all other costs and expenses related to such
        Series have been paid in accordance with the Indenture, all in accordance
        with
        the following:

       

      (a)   Frequency
        of Bills; Billing Practices.
        In
        accordance with the Servicer’s then-existing Servicer Policies and Practices, as
        such Servicer Policies and Practices may be modified from time to time, the
        Servicer shall generate and issue a Bill to each Customer, or to an Applicable
        Third Party, for such Customer’s respective Environmental Control Charge as a
        general practice once approximately every 60 days or such other time period
        as
        allowed by the PSCWV, at the same time, with the same frequency and on the
        same
        Bill as that containing the Servicer’s own charges to such Customer or Third
        Party, as the case may be. In the event that the Servicer makes any material
        modification to these practices, it shall notify the Issuer, the Indenture
        Trustee and the Rating Agencies as soon as practicable, and in no event later
        than 60 Business Days after such modification goes into effect; provided,
        however, that

       

      (i)    the
        Servicer may not make any modification that will materially adversely affect
        the
        Environmental Control Bondholders and

       

      (ii)   the
        Rating Agencies shall receive prior notice of any modification that would
        change
        the frequency with which Bills are issued or would change any tariff
        charged.

       

      (b)   Format.

       

      (i)    Each
        Bill
        to a Customer shall contain the charge corresponding to the Environmental
        Control Charge owed by such Customer for the billing period. The Customer’s Bill
        will contain in text or in a footnote, text substantially to the effect that
        a
        portion of the monthly charge representing that Transferred Environmental
        Control Property is being collected on behalf of the Issuer as owner of the
        Transferred Environmental Control Property.

       

      (ii)   The
        Servicer shall deliver to the Applicable Third Party itemized charges for
        such
        Customer including the amount of such Customer’s Environmental Control Charge to
        be remitted by the Servicer to the Issuer.

       

      (iii)   The
        Servicer shall conform to such requirements in respect of the format, structure
        and text of Bills delivered to Customers and

       

      
        
          
          

        

        
          Attachment
            A-3

          
            

          

        

        
          
          

        

      

       

      Third
        Parties as applicable PSCWV Regulations shall from time to time prescribe.
        To
        the extent that Bill format, structure and text are not prescribed by the
        Statute, other applicable Requirements of Law, the Servicer shall, subject
        to
        clauses (i) and (ii) above, determine the format, structure and text of all
        Bills in accordance with its reasonable business judgment, its Servicer Policies
        and Practices with respect to its own charges and prevailing industry
        standards.

       

      (c)   Delivery.
        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 followed by the Servicer with respect to its own charges
        or

       

      (ii)   by
        any
        other means, whether electronic or otherwise, that the Servicer may from
        time to
        time use to present its own charges to its Customers.

       

      In
        the
        case of Customers that have elected Consolidated Third Party Billing, the
        Servicer shall deliver all Bills to the Applicable Third Parties by such
        means
        as are prescribed by applicable PSCWV Regulations, or, if not prescribed
        by
        applicable PSCWV Regulations, by such means as are mutually agreed upon by
        the
        Servicer and the Applicable Third Party and are consistent with PSCWV
        Regulations. The Servicer or a Third Party, as applicable, shall pay from
        its
        own funds all costs of issuance and delivery of all Bills, including but
        not
        limited to 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 same procedures it uses to service Customers with respect
        to
        its own charges.

       

      SECTION
        6.  Collections;
        Payment Processing; Remittance.

       

      (a)   Collection
        Efforts; Policies; Procedures.

       

      (i)    The
        Servicer shall use reasonable efforts to collect all Billed Environmental
        Control Charges from Customers and Third Parties as and when the same become
        due
        and shall follow such collection procedures as it follows with respect to
        comparable assets that it services for itself or others, including, as
        follows:

       

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

       

      
        
          
          

        

        
          Attachment
            A-4

          
            

          

        

        
          
          

        

      

       

      (B)   The
        Servicer shall apply late payment charges to outstanding Customer and Third
        Party balances in accordance with applicable PSCWV Regulations. All late
        payment
        charges collected shall be payable to and retained by the Servicer as a
        component of its compensation under the Servicing Agreement, and the Issuer
        shall not have any right to share in the same.

       

      (C)   The
        Servicer shall deliver verbal and written final call notices in accordance
        with
        applicable PSCWV Regulations and Servicer Policies and Practices.

       

      (D)   The
        Servicer shall adhere to and carry out disconnection policies in accordance
        with
        the Competition Act, other applicable law and PSCWV Regulations and Servicer
        Policies and Practices.

       

      (E)   The
        Servicer may employ the assistance of collections agents in accordance with
        applicable PSCWV Regulations and Servicer Policies and Practices.

       

      (F)   The
        Servicer shall apply Customer and Third Party deposits, Customers’ letters of
        credit and Customer posted surety bonds to the payment of delinquent accounts
        in
        accordance with applicable PSCWV Regulations and Servicer Policies and Practices
        and according to the priorities set forth in Sections
        6(b)(ii), (iii) and
        (iv)
        of this
        Exhibit A.

       

      (G)   The
        Servicer shall promptly take all necessary action in accordance with applicable
        PSCWV Regulations to terminate billing of Environmental Control Charges by
        Third
        Parties whose payments are 30 or more days delinquent, or as the then current
        PSCWV Regulations and any billing services agreements allow, and to resume,
        prospectively, to collect the Billed Environmental Control Charges directly
        from
        the applicable Customers. At such time, the Servicer will apply the Third
        Party’s security deposit to satisfy charges billed previously by the Third Party
        which remain outstanding, including outstanding Environmental Control
        Charges.

       

      (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:

       

      
        
          
          

        

        
          Attachment
            A-5

          
            

          

        

        
          
          

        

      

       

      (A)   would
        be
        in accordance with the Servicer’s customary practices or those of any Successor
        Servicer with respect to comparable assets that it services for itself and
        for
        others;

       

      (B)   would
        not
        materially adversely affect the rights of the Environmental Control Bondholders;
        and

       

      (C)   would
        comply with applicable Requirements of Law;

       

      provided,
        however, that notwithstanding anything in the Servicing Agreement or this
        Exhibit A to the contrary, the Servicer is authorized to write off any Billed
        Environmental Control Charges in accordance with its Servicer Policies and
        Practices.

       

      (iii)   The
        Servicer shall accept payment from Customers in respect of Billed Environmental
        Control Charges in such forms and methods and at such times and places as
        it
        accepts for payment of its own charges. The Servicer shall accept payment
        from
        Third Parties in respect of Billed Environmental Control Charges in such
        forms
        and methods and at such times and places as the Servicer and each Third Party
        shall mutually agree in accordance with applicable PSCWV
        Regulations.

       

      (b)   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 Business Days after receipt.

       

      (ii)   Subject
        to clause (iii) below, the Servicer shall apply payments received to each
        Customer’s or Third Party’s account in proportion to the charges contained on
        the outstanding Bill to such Customer or Third Party.

       

      (iii)   Any
        amounts collected by the Servicer that represent partial payments of the
        total
        Bill to a Customer or Third Party shall be allocated in accordance with the
        priorities set forth in Section
        3.02(b)
        of the
        Servicing Agreement.

       

      (iv)   The
        Servicer shall hold all over-payments for the benefit of the Issuer and shall
        apply such funds to future Bill charges in accordance with clauses (ii) and
        (iii) above as such charges become due.

       

      (v)   For
        Customers on a Budget Billing Plan, the Servicer shall treat Environmental
        Control Charge Collections received from such

       

      
        
          
          

        

        
          Attachment
            A-6

          
            

          

        

        
          
          

        

      

       

      Customers
        as if such Customers had been billed for the Environmental Control Charge
        in the
        absence of the Budget Billing Plan. Partial payment of a Budget Billing Plan
        payment shall be allocated according to clause (iii) above, and overpayment
        of a
        Budget Billing Plan payment shall be allocated according to clause (iv)
        above.

       

      (c)   Accounts;
        Records.

       

      (i)    The
        Servicer shall maintain accounts and records as to the Transferred Environmental
        Control Property accurately and in accordance with its standard accounting
        procedures and in sufficient detail to permit reconciliation between payments
        or
        recoveries with respect to the Transferred Environmental Control Property
        and
        the amounts from time to time remitted to the Collection Account in respect
        of
        the Transferred Environmental Control Property.

       

      (ii)   The
        Servicer shall maintain accounts and records as to Third Parties performing
        billing for Customers accurately and in accordance with its standard accounting
        procedures and in sufficient detail to permit reconciliation between payments
        or
        recoveries with respect to the Transferred Environmental Control Property
        and
        amounts owed by such Customers in respect of the Environmental Control
        Charge.

       

      (d)   Investment
        of Environmental Control Charge Collections.
        Any and
        all interest accrued on Environmental Control Charge Collections prior to
        the
        remittance of such Environmental Control Charge Collections to the Issuer
        or
        Indenture Trustee shall be remitted by the Servicer to the Indenture Trustee
        for
        deposit in the Excess Funds Subaccount.

       

      (e)   Calculation
        of Collections; Determination of Aggregate Remittance Amount.

       

      (i)    On
        or
        before each Remittance Date, the Servicer shall calculate the Estimated
        Environmental Control Charge Collections received by the Servicer from or
        on
        behalf of Customers during prior Collection Periods in respect of all previously
        Billed Environmental Control Charges.

       

      (ii)   In
        accordance with Section
        4.01
        of the
        Servicing Agreement and Annex 1, the Servicer shall update the Variables
        and
        shall prepare True-Up Adjustment Filings to reflect the updated Variables
        when
        required to do so pursuant to Annex 1.

       

      (f)   Remittances.

       

      
        
          
          

        

        
          Attachment
            A-7

          
            

          

        

        
          
          

        

      

       

      (i)    The
        Servicer shall make remittances to the Issuer in accordance with Section
        5.11
        of the
        Servicing Agreement.

       

      (ii)   In
        the
        event of any change of account or change of institution affecting the
        remittances, the Issuer shall provide written notice thereof to the Servicer
        by
        the earlier of

       

      
        	 	
                ·

              	
                five
                  Business Days from the effective date of such change,
                  or

              

      

       

      
        	 	
                ·

              	
                five
                  Business Days prior to the next applicable Remittance
                  Date.

              

      

       

      
        
          
          

        

        
          Attachment
            A-8

          
            

          

        

        
          
          

        

      

       

      EXHIBIT
        B

      

      PENDING
        LITIGATION

      

      None.

       

      
        
          
          

        

        
          Exhibit
            B-1

          
            

          

        

        
          
          

        

      

      ANNEX
        1 

       

      FORM
        OF ROUTINE ADJUSTMENT REQUEST

       

      DATE:

       

      [Executive
        Secretary]

      Public
        Service Commission of West Virginia 

      201
        Brooks Street, P.O. Box 812

      Charleston,
        WV 25323

       

      Re: 
        Case Nos. 05-0402-E-CN and 05-0750-E-PC

       

      Dear
        __________________:

       

      As
        required by Section 24-2-4e(e) of the West Virginia Code §§ 24-2-4e(a)
        through and including 24-2-4e(v) and pursuant to the orders dated April 7,
        2006,
        June 13, 2006 and January 17, 2007 in Case Nos. 05-0402-E-CN and 05-0750-E-PC
        (the “Financing
        Order”),
        The
        Potomac Edison Company (the “Company”)
        as
        Servicer (or any Successor Servicer) of the Transferred Environmental Control
        Property, and on behalf of the Indenture Trustee under the Indenture, dated
        as
        of April 11, 2007 between the Issuer and the Indenture Trustee, as amended,
        modified or supplemented from time to time, as assignee of PE Environmental
        Funding LLC hereby proposes an adjustment to the Environmental Control Charges
        (the “ECC”
or
        “Environmental
        Control Charges”).
        Capitalized terms used but not otherwise defined herein have the meanings
        given
        such terms in the Servicing Agreement dated as of April 11, 2007 between
        the
        Issuer and the Company, as amended, modified or supplemented from time to
        time,
        or in Appendix A thereto.

       

      This
        proposed adjustment is intended to satisfy Section 24-2-4e(e) and the
        Financing Order by ensuring that the ECC will recover amounts sufficient
        to
        timely provide all payments of debt service and other required amounts and
        charges in connection with the Environmental Control Bonds during the upcoming
        Remittance Period. 

       

      Using
        the
        formula approved by the Public Service Commission of West Virginia (the
“PSCWV”)
        in the
        Financing Order, this filing modifies the variables used in the ECC and provides
        the resulting adjusted ECC. Attachments B-1 [and B-2] hereto show the resulting
        values of the ECC, as calculated in accordance with the Joint Stipulation,
        as
        modified by the Financing Order, such modified Environmental Control Charges
        to
        be effective as of the first day of the upcoming Remittance Period. The
        calculations of these values are appended to the Attachments
        hereto.

       

      In
        accordance with the Financing Order, the proposed adjustments to the charges
        will be effective automatically on the first day of the upcoming Remittance
        Period. In the event that, prior to the first day of the upcoming Remittance
        Period, it is determined by the PSCWV that a mathematical error in the
        application of the formula-based mechanism exists, the Company shall correct
        such error and make any necessary corrections to the adjustments of the
        Environmental Control Charges. These adjusted Environmental Control Charges,
        as
        corrected, shall in any event take effect on the first day of the upcoming
        Remittance Period. [For Quarterly True-Up Adjustments

       

      
        
          
          

        

        
          Annex
            1-1

          
            

          

        

        
          
          

        

      

       

      and
        Monthly True-Up Adjustments, on the fifteenth day of the quarter or month
        next
        succeeding the date of the Routine Adjustment Request.]

       

      Respectfully
        submitted,

       

      Attachment

      

      
        
          
          

        

        
          Annex
            1-2

          
            

          

        

        
          
          

        

      

       

      ATTACHMENT
        A TO ANNEX 1

       

      Table
        I
        below shows the current assumptions for each of the variables used in the
        Environmental Control Charge calculation.

       

      INPUT
        VALUES FOR ENVIRONMENTAL CONTROL CHARGE

       

      
        	
                (a)

              	
                Measure
                  Date

              

      

      
        	
                (b)

              	
                For
                  each Rate Schedule:

              

      

      
        	 	
                (i)

              	
                Weighted
                  average days outstanding data

              

      

      
        	 	
                (ii)

              	
                Estimated
                  Net Write-Off Percent

              

      

      
        	 	
                (iii)

              	
                Projected
                  billed revenue to which Environmental Control Charges
                  apply

              

      

      
        	 	
                (iv)

              	
                Annual
                  class generation level MWh energy

              

      

      
        	 	
                (v)

              	
                Forecasted
                  annual class customer level MWh
                  energy

              

      

      
        	 	
                (vi)

              	
                Annual
                  class generation level 12 CP MW
                  demand

              

      

      
        	 	
                (vii)

              	
                Forecasted
                  annual class customer level demand

              

      

      
        	
                (c)

              	
                Retail
                  energy weighting ratio

              

      

      
        	
                (d)

              	
                Retail
                  demand weighting ratio

              

      

      
        	
                (e)

              	
                Total
                  generation level MWh energy (excl.
                  wholesale)

              

      

      
        	
                (f)

              	
                Total
                  generation level 12 CP MW demand (excl.
                  wholesale)

              

      

      
        	
                (g)

              	
                Expected
                  annual Write-Offs

              

      

      
        	
                (h)

              	
                Annual
                  ongoing transaction expenses

              

      

      
        	
                (i)

              	
                Current
                  Environmental Control Bonds outstanding
                  balance

              

      

      
        	
                (j)

              	
                Expected
                  Environmental Control Bonds outstanding balance as of
                  __/__/__

              

      

      
        	
                (k)

              	
                Accrued
                  but unpaid Environmental Control Bonds
                  interest

              

      

      
        	
                (l)

              	
                Deferred
                  unpaid Environmental Control Bonds
                  principal

              

      

      
        	
                (m)

              	
                Unpaid
                  ongoing transaction cost

              

      

      
        	
                (n)

              	
                Capital
                  Subaccount balance as of __/__/__

              

      

      
        	
                (o)

              	
                Available
                  True-Up Excess Funds Amount

              

      

      
        	
                (p)

              	
                Accrued
                  but unpaid Capital Equity Return

              

      

      
        	
                (q)

              	
                federal
                  corporate income tax rate

              

      

      
        	
                (r)

              	
                Applicable
                  state and local tax rates

              

      

      

      
        
          
          

        

        
          Attachment
            A-1 to Annex 1

          
            

          

        

        
          
          

        

      

       

      ANNEX
        2

       

      FORM
        OF MONTHLY SERVICER’S CERTIFICATE

       

      PE
        Environmental Funding LLC

       

      $114,825,000
        Environmental Control Bonds, Series A

       

      Pursuant
        to Section 3.04 of the Servicing Agreement dated as of April 11, 2007 (as
        the same may be amended, supplemented or otherwise modified from time to
        time,
        the “Servicing Agreement”) between The Potomac Edison Company, as Servicer, and
        PE Environmental Funding LLC, as Issuer, the Servicer does hereby certify
        as
        follows:

       

      Capitalized
        terms used 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 of the Servicing
        Agreement.

       

      Billing
        Period: [____________]

       

      
        	
                1.

              	
                Current
                  Billing Period

              	
                [___________]

              
	 	
                CUSTOMER
                  CLASS [   ] of [   ]: [____________]

                 

              	 
	
                2.

              	
                Rate
                  Schedule #[   ] kWh Billed

              	
                [___________]

              
	
                3.

              	
                Rate
                  Schedule #[   ] Weighted Average

              	
                [___________]

              
	 	
                Environmental
                  Control Charge

              	 
	 	
                Billed
                  Environmental Control Charge Collections

                 

              	 
	
                4.

              	
                Rate
                  Schedule #[   ] Billed Environmental Control Charge
                  Collections

                 

              	
                $[__________]

              
	 	
                Estimated
                  Environmental Control Charge Collections

                 

              	 
	
                5.

              	
                Rate
                  Schedule #[   ] Environmental Control Charge
                  Collections

              	
                $[__________]

              
	
                6.

              	
                Total
                  Residential Net Write-offs

                as
                  % of Billed Environmental Control Charge Collections

                [  
                  ] CUSTOMER CLASS [   ] OF [   ]:
                  [___________]

              	
                  [__________]%

              
	 	 	 
	
                7.

              	
                Rate
                  Schedule #[   ] kWh Billed

              	
                [___________]

              
	
                8.

              	
                Rate
                  Schedule #[   ] Weighted Average

              	
                [___________]

              
	 	
                Environmental
                  Control Charge

              	 
	
                9.

              	
                Rate
                  Schedule #[   ] kWh Billed

              	
                [___________]

              
	
                10.

              	
                Rate
                  Schedule #[   ] Weighted Average

              	
                [___________]

              
	 	
                Environmental
                  Control Charge

              	 
	
                11.

              	
                Rate
                  Schedule #[   ] kWh Billed

              	
                [___________]

              
	
                12.

              	
                Rate
                  Schedule #[   ] Weighted Average

              	
                [___________]

              
	 	
                Environmental
                  Control Charge

              	 
	
                13.

              	
                Rate
                  Schedule #[   ] kWh Billed

              	
                [___________]

              
	
                14.

              	
                Rate
                  Schedule #[   ] Weighted Average

              	
                [___________]

              
	 	
                Environmental
                  Control Charge

              	 
	 	
                Billed
                  Environmental Control Charge Collections

              	 

      

       

      
        
          
          

        

        
          Annex
            2-1

          
            

          

        

        
          
          

        

      

       

      
        	
                15.

              	
                Rate
                  Schedule #[   ] Billed Environmental Control Charge
                  Collections

              	
                $[__________]

              
	
                16.

              	
                Rate
                  Schedule #[   ] Billed Environmental Control Charge
                  Collections

              	
                $[__________]

              
	
                17.

              	
                Rate
                  Schedule #[   ] Billed Environmental Control Charge
                  Collections

              	
                $[__________]

              
	
                18.

              	
                Rate
                  Schedule #[   ] Billed Environmental Control Charge
                  Collections

              	
                $[__________]

              
	
                19.

              	
                Total
                  Commercial Billed Environmental Control Charge Collections

                 

              	
                $[__________]

              
	 	
                Estimated
                  Environmental Control Charge Collections

                 

              	 
	
                20.

              	
                Rate
                  Schedule #[   ] Environmental Control Charge
                  Collections

              	
                $[__________]

              
	
                21.

              	
                Rate
                  Schedule #[   ] Environmental Control Charge
                  Collections

              	
                $[__________]

              
	
                22.

              	
                Rate
                  Schedule #[   ] Environmental Control Charge
                  Collections

              	
                $[__________]

              
	
                23.

              	
                Rate
                  Schedule #[   ] Environmental Control Charge
                  Collections

                 

              	
                $[__________]

              
	
                24.

              	
                Total
                  Commercial Environmental Control Charge Collections

              	
                $[__________]

              
	
                25.

              	
                Total
                  Commercial Net Write-offs as

                a
                  %
                  of Billed Revenues [   ]

                CUSTOMER
                  CLASS [   ] OF [   ]: [__________]

                 

              	
                 
                  [__________]%

              
	
                26.

              	
                Rate
                  Schedule #[   ] kWh Billed

              	
                 
                  [__________]

              
	
                27.

              	
                Rate
                  Schedule #[   ] Weighted Average

              	
                 
                  [__________]

              
	 	
                Environmental
                  Control Charge

                 

              	 
	
                28.

              	
                Rate
                  Schedule #[   ] kWh Billed

              	
                 
                  [__________]

              
	
                29.

              	
                Rate
                  Schedule #[   ] Weighted Average

              	
                 
                  [__________]

              
	 	
                Environmental
                  Control Charge

              	 
	
                30.

              	
                Rate
                  Schedule #[   ] kWh Billed

              	
                 
                  [__________]

              
	
                31.

              	
                Rate
                  Schedule #[   ] Weighted Average

              	
                 
                  [__________]

              
	 	
                Environmental
                  Control Charge

              	 
	
                32.

              	
                Rate
                  Schedule #[   ] kWh Billed

              	
                 
                  [__________]

              
	
                33.

              	
                Rate
                  Schedule #[   ] Weighted Average

              	
                 
                  [__________]

              
	 	
                Environmental
                  Control Charge

              	 
	
                34.

              	
                Rate
                  Schedule #[   ] kWh Billed

              	
                 
                  [__________]

              
	
                35.

              	
                Rate
                  Schedule #[   ] Weighted Average

              	
                 
                  [__________]

              
	 	
                Environmental
                  Control Charge

              	 
	
                36.

              	
                Rate
                  Schedule #[   ] kWh Billed

              	
                 
                  [__________]

              
	
                37.

              	
                Rate
                  Schedule #[   ] Weighted Average

              	
                 
                  [__________]

              
	 	
                Environmental
                  Control Charge

              	 
	
                38.

              	
                Street
                  Lighting Rate Schedules

              	
                 
                  [__________]

              
	
                39.

              	
                Street
                  Lighting Weighted Average

              	
                 
                  [__________]

              
	 	
                Environmental
                  Control Charge

              	 
	 	
                Billed
                  Environmental Control Charge Collections

                 

              	 
	
                40.

              	
                Rate
                  Schedule #[   ] Billed Environmental Control Charge
                  Collections

              	
                $[__________]

              
	
                41.

              	
                Rate
                  Schedule #[   ] Billed Environmental Control Charge
                  Collections

              	
                $[__________]

              
	
                42.

              	
                Rate
                  Schedule #[   ] Billed Environmental Control Charge
                  Collections

              	
                $[__________]

              
	
                43.

              	
                Rate
                  Schedule #[   ] Billed Environmental Control Charge
                  Collections

              	
                $[__________]

              
	
                44.

              	
                Rate
                  Schedule #[   ] Billed Environmental Control Charge
                  Collections

              	
                $[__________]

              
	
                45.

              	
                Rate
                  Schedule #[   ] Billed Environmental Control Charge
                  Collections

              	
                $[__________]

              
	
                46.

              	
                Street
                  Lighting Rate Schedules Billed Environmental Control Charge
                  Collections

              	
                $[__________]

              
	
                 

                47.

              	
                 

                Total
                  Industrial Billed Environmental Control Charge Collections

                 

              	
                 

                $[__________]

              
	 	
                Estimated
                  Environmental Control Charge Collections

              	 

      

       

      
        
          
          

        

        
          Annex
            2-2

          
            

          

        

        
          
          

        

      

       

      
        	
                48.

              	
                Rate
                  Schedule #[   ] Environmental Control Charge
                  Collections

              	
                $[__________]

              
	
                49.

              	
                Rate
                  Schedule #[   ] Environmental Control Charge
                  Collections

              	
                $[__________]

              
	
                50.

              	
                Rate
                  Schedule #[   ] Environmental Control Charge
                  Collections

              	
                $[__________]

              
	
                51.

              	
                Rate
                  Schedule #[   ] Environmental Control Charge
                  Collections

              	
                $[__________]

              
	
                52.

              	
                Rate
                  Schedule #[   ] Environmental Control Charge
                  Collections

              	
                $[__________]

              
	
                53.

              	
                Rate
                  Schedule #[   ] Environmental Control Charge
                  Collections

              	
                $[__________]

              
	
                54.

              	
                Street
                  Lighting Rate Schedules Environmental Control Charge
                  Collections

              	
                $[__________]

              
	
                 

                55.

              	
                 

                Total
                  Industrial Environmental Control Charge Collections

              	
                 

                $[__________]

              
	
                56.

              	
                Total
                  Industrial Net Write-offs as

                a
                  %
                  of Billed Environmental Control Charge Collections [  
                  ]

                 

              	
                 
                  [__________]%

              
	 	
                AGGREGATE
                  ESTIMATED ENVIRONMENTAL CONTROL CHARGE COLLECTIONS

                 

              	 
	 	
                Aggregate
                  Environmental Control Charge Remittances for [Month, Year] Billing
                  Period

                 

              	
                $[__________]

              
	 	
                Aggregate
                  Environmental Control Charge Remittances for [Month, Year] Billing
                  Period

              	
                $[__________]

              
	 	
                Aggregate
                  Environmental Control Charge Remittances for [Month, Year] Billing
                  Period

              	 
	 	
                Aggregate
                  Environmental Control Charge Remittances for [Month, Year] Billing
                  Period

              	 
	 	
                Aggregate
                  Environmental Control Charge Remittances to Date

              	
                $[__________]

              

      

      

      

      IN
        WITNESS HEREOF, the undersigned has duly executed and delivered this Monthly
        Servicer’s Certificate this [__] day of [________________].

       

      

      
        	 	 
	 	
                Name:

                Title:

              

      

      

      
        
          
          

        

        
          Annex
            2-3

          
            

          

        

        
          
          

        

         

      

      ANNEX
        3

       

      FORM
        OF QUARTERLY SERVICER’S CERTIFICATE

       

      Quarterly
        Servicer’s Certificate

       

      PE
        Environmental Funding LLC

      $114,825,000
        Environmental Control Bonds, Series A

       

      Pursuant
        to Section 3.04 of the Servicing Agreement dated as of  April 11, 2007
        (as the same may be amended, supplemented or otherwise modified from time
        to
        time, the “Servicing Agreement”) between The Potomac Edison Company, as Servicer
        and PE
        Environmental
        Funding
        LLC, as Issuer, the Servicer does hereby certify as follows:

       

      Capitalized
        terms used in this Quarterly 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 of the
        Servicing Agreement. 

       

      Billing
        Periods: [_____________]

      Payment
        Date: [_____________]

       

      
        	
                1.

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

              

      

    

    
       

      
        	 	
                i.

              	
                Balance
                  of Remittances for the [    ]
                  Collection Period

              	
                $[________]

              
	 	
                ii.

              	
                Remittances
                  for the [    ]
                  Collection Period

              	
                $[________]

              
	 	
                iii
                  a.

              	
                Remittances
                  for the [    ]
                  Collection Period

              	
                $[________]

              
	 	
                iii
                  b.

              	
                Part
                  [    ]
                  Remittance for 'Daily Remittance Provision'

              	
                $[________]

              
	 	
                iv.

              	
                Net
                  Earnings on General Subaccount

              	
                $[________]

              
	 	
                v.

              	
                Net
                  Earnings on Capital Subaccount

              	
                $[________]

              
	 	 	 	
                $[________]

              
	 	
                vi.

              	
                Net
                  Earnings on True-Up Excess Funds Subaccount

              	
                $[________]

              
	 	
                vii.

              	
                General
                  Subaccount Balance

              	
                $[________]

              

      

      

      
        	 	
                viii.

              	
                True-Up
                  Excess Funds Subaccount Balance

              	
                $[________]

              
	 	
                ix.

              	 	
                $[________]

              
	 	
                x.

              	
                Capital
                  Subaccount Balance

              	
                $[________]

              
	 	
                xi.

              	
                Collection
                  Account Balance

              	
                $[________]

              

      

    

     

    
      
        	
                2.

              	
                Outstanding
                  Principal Balance and Collection Account Balance as of Prior Payment
                  Date:

              

      

    

     

    
      
        	 	
                i.

              	
                Tranche
                  [  ]
                  Principal
                  Balance

              	
                $[________]

              
	 	
                ii.

              	
                Tranche
                  [  ]
                  Principal Balance

              	
                $[________]

              
	 	
                iii.

              	
                Tranche
                  [  ]
                  Principal Balance

              	
                $[________]

              
	 	
                iv.

              	
                Tranche
                  [  ]
                  Principal Balance

              	
                $[________]

              
	 	
                v.

              	
                Environmental
                  Control Bond Principal Balance

              	
                $[________]

              

      

    

    
       

      
        
          
          

        

        
          Annex
            3-1

          
            

          

        

        
          
          

        

      

       

      
        
          	 	
                  vi.

                	
                  True-Up
                    Excess Funds Subaccount Balance

                	
                  $[________]

                
	 	
                  vii.

                	
                  Capital
                    Subaccount Balance

                	
                  $[________]

                

        

      

       

      
        
          	
                  3.

                	
                  Required
                    Funding/Payments as of Current Payment
                    Date:

                

        

      

      

        
          	 	
                  i.

                	
                  Projected
                    Tranche [  ]
                    Environmental Control Bond Balance

                	
                  $[________]

                
	 	
                  ii.

                	
                  Projected
                    Tranche [  ]
                    Environmental Control Bond Balance

                	
                  $[________]

                
	 	
                  iii.

                	
                  Projected
                    Tranche [  ]
                    Environmental Control Bond Balance

                	
                  $[________]

                
	 	
                  iv.

                	
                  Projected
                    Tranche [  ]
                    Environmental Control Bond Balance

                	
                  $[________]

                
	 	
                  v.

                	
                  Projected
                    Environmental Control Bond Balance

                	
                  $[________]

                

        

      

      

        
          	 	
                  vi.

                	
                  Required
                    Tranche [  ]
                    Coupon ([  ]%
                    per annum rate)

                	
                  $[________]

                
	 	
                  vii.

                	
                  Required
                    Tranche [  ]
                    Coupon ([  ]%
                    per annum rate)

                	
                  $[________]

                
	 	
                  viii.

                	
                  Required
                    Tranche [  ]
                    Coupon ([  ]%
                    per annum rate)

                	
                  $[________]

                
	 	
                  ix.

                	
                  Required
                    Tranche [  ]
                    Coupon ([  ]%
                    per annum rate)

                	
                  $[________]

                

        

      

      

      
        	 	
                x.

              	
                Required
                  Capital Subaccount Funding

              	
                $[________]

              

      

      

      
        	
                4.

              	
                Allocation
                  of Remittances as of Current Payment Date Pursuant to Section 8.02(d)
                  of
                  the Indenture:

              

      

      

        
          	 	
                  i.

                	
                  Cumulative
                    Monthly Administration Fee during Relevant Quarter

                	
                  $[________]

                
	 	
                  ii.

                	
                  Indenture
                    Fees and Expenses                                              
                    *

                	
                  $[________]

                
	 	
                  iii.

                	
                  Independent
                    Director’s Fee                                             
**

                	
                  $[________]

                
	 	
                  iv.

                	
                  Servicing
                    Fee

                	
                  $[________]

                
	 	
                  v.

                	
                  Operating
                    Expenses (subject to $[  ]
                    cap)

                	
                  $[________]

                

        

      

      

      
        	 	
                vi.

              	
                Quarterly
                  Interest

              	
                $[________]

              

      

      
        	 	 	
                1.

              	
                Tranche
                  [  ]
                  Environmental Control Bond Coupon Payment

              	
                $[________]

              
	 	 	
                2.

              	
                Tranche
                  [  ]
                  Environmental Control Bond Coupon Payment

              	
                $[________]

              
	 	 	
                3.

              	
                Tranche
                  [  ]
                  Environmental Control Bond Coupon Payment

              	
                $[________]

              
	 	 	
                4.

              	
                Tranche
                  [  ]
                  Environmental Control Bond Coupon Payment

              	
                $[________]

              

      

      

      
        	 	
                vii.

              	
                Principal
                  Due and Payable

              	
                $[________]

              

      

      

      
        	 	
                viii.

              	
                Scheduled
                  Quarterly Principal

              	
                $[________]

              

      

      
        	 	 	
                1.

              	
                Tranche
                  [  ]
                  Environmental Control Bond Principal Payment

              	
                $[________]

              
	 	 	
                2.

              	
                Tranche
                  [  ]
                  Environmental Control Bond Principal Payment

              	
                $[________]

              
	 	 	
                3.

              	
                Tranche
                  [  ]
                  Environmental Control Bond Principal Payment

              	
                $[________]

              
	 	 	
                4.

              	
                Tranche
                  [  ]
                  Environmental Control Bond Principal Payment

              	
                $[________]

              

      

      

      
        	 	
                ix.

              	
                Operating
                  Expenses (in excess of $[  ])

              	
                $[________]

              
	 	
                x.

              	
                Funding
                  of Capital Subaccount (to required level)

              	
                $[________]

              

      

    

    
      
 

      
        
          
          

        

        
          Annex
            3-2

          
            

          

        

        
          
          

        

      

      
        	 	
                xi.

              	
                Required
                  Dividend Distributions to Potomac Edison

              	
                $[________]

              
	 	
                xii.

              	
                Deposits
                  to True-Up Excess Funds Subaccount

              	
                $[________]

              
	 	
                xiii.

              	
                Released
                  to Issuer upon Series Retirement: Collection Account

              	
                $[________]

              

      

      

      
        	
                5.

              	
                Outstanding
                  Principal Balance and Collection Account Balance as of Current
                  Payment
                  Date:

                (after
                  giving effect to payments to be made on such payment
                  date):

              

      

      

      
        	 	
                i.

              	
                Tranche
                  [  ]
                  Principal Balance

              	
                $[________]

              
	 	
                ii.

              	
                Tranche
                  [  ]
                  Principal Balance

              	
                $[________]

              
	 	
                iii.

              	
                Tranche
                  [  ]
                  Principal Balance

              	
                $[________]

              
	 	
                iv.

              	
                Tranche
                  [  ]
                  Principal Balance

              	
                $[________]

              
	 	
                v.

              	
                Environmental
                  Control Bond Principal Balance

              	
                $[________]

              

      

      

      
        	 	
                vi.

              	
                True-Up
                  Excess Funds Subaccount Balance

              	
                $[________]

              
	 	
                vii

              	
                Capital
                  Subaccount Balance

              	
                $[________]

              

      

      

      
        	 	 	
                *

              	
                $[
                  ]
                  per quarter, in advance plus expenses, in arrears.

              
	 	 	
                **

              	
                Independent
                  Director’s Fee is paid in advance, first quarter. ([Quarter/Year],
                  directly by Issuer to directors)

              

      

      

      
        	
                6.

              	
                Subaccount
                  Draws as of Current Payment Date (if applicable, pursuant to Section
                  8.02(d) of the Indenture):

              

      

      

      
        	 	
                i.

              	
                True-Up
                  Excess Funds Subaccount

              	
                $[________]

              
	 	
                ii.

              	
                Capital
                  Subaccount

              	
                $[________]

              
	 	
                iii.

              	
                Total
                  Draws

              	
                $[________]

              

      

      

      
        	
                7.

              	
                Shortfalls
                  In Interest and Principal Payments as of Current Payment
                  Date:

              

      

      

      
        	 	
                i.

              	
                Quarterly
                  Interest

              	
                $[________]

              

      

      
        	 	 	
                1.

              	
                Tranche
                  [  ]
                  Environmental Control Bond Coupon Payment

              	
                $[________]

              
	 	 	
                2.

              	
                Tranche
                  [  ]
                  Environmental Control Bond Coupon Payment

              	
                $[________]

              
	 	 	
                3.

              	
                Tranche
                  [  ]
                  Environmental Control Bond Coupon Payment

              	
                $[________]

              
	 	 	
                4.

              	
                Tranche
                  [  ]
                  Environmental Control Bond Coupon Payment

              	
                $[________]

              

      

      

      
        	 	
                ii.

              	
                Quarterly
                  Principal

              	
                $[________]

              

      

      
        	 	 	
                1.

              	
                Tranche
                  [  ]
                  Environmental Control Bond Principal Payment

              	
                $[________]

              
	 	 	
                2.

              	
                Tranche
                  [  ]
                  Environmental Control Bond Principal Payment

              	
                $[________]

              
	 	 	
                3.

              	
                Tranche
                  [  ]
                  Environmental Control Bond Principal Payment

              	
                $[________]

              
	 	 	
                4.

              	
                Tranche
                  [  ]
                  Environmental Control Bond Principal Payment

              	
                $[________]

              

      

      

      
        	
                8.

              	
                Shortfalls
                  in Required Subaccount Levels as of Current Payment
                  Date:

              

      

       

      
        
          
          

        

        
          Annex
            3-3

          
            

          

        

        
          
          

        

      

       

      
        	 	
                i.

              	
                Capital
                  Subaccount

              	
                $[________]

              

      

      
 

      IN
        WITNESS HEREOF, the undersigned has duly executed and delivered this Quarterly
        Servicer’s Certificate this [__] day of [________________].

       

      
        	 	 
	 	
                Name:

                Title:

              

      

      

      
        
          
          

        

        
          Annex
            3-4

          
            

          

        

        
          
          

        

      

       

      ANNEX
        4

       

      FORM
        OF OFFICER’S CERTIFICATE

       

      $114,825,000

       

      PE
        ENVIRONMENTAL FUNDING LLC

       

      ENVIRONMENTAL
        CONTROL BONDS, SERIES A

       

      THE
        POTOMAC EDISON COMPANY

       

      OFFICER’S
        CERTIFICATE

       

      Pursuant
        to Section 3.05(a) of the Servicing Agreement dated as of April 11, 2007
        between PE
        Environmental
        Funding
        LLC, as Issuer, and The Potomac Edison Company (the “Company”), as Servicer (as
        the same may be amended, supplemented or otherwise modified from time to
        time,
        the “Servicing Agreement”; capitalized terms used but not defined herein have
        the meanings assigned thereto in the Servicing Agreement), each of the
        undersigned, [Authorized Officer], the duly elected [________________] of
        and
        [Authorized Officer], the [________________] of the Company, having carefully
        examined the Servicing Agreement including Section 3.05 thereof, and the
        definitions in the Servicing Agreement relating thereto and certain other
        corporate documents and records, and having made such examination or
        investigation as they consider necessary to enable the undersigned to express
        any informed opinion, certifies that:

       

      (i)    a
        review
        of the activities of the Company during the period from January 1, [____]
        through December 31, [____] and of its performance under the Servicing Agreement
        has been made under the supervision of the undersigned, and

       

      (ii)   to
        the
        best of the knowledge of the undersigned, based on such review, the Company
        has
        complied with all conditions and covenants under the Servicing Agreement
        throughout such period [or, if there has been an Event of Default, or an
        act or
        omission, which with either the passage of time or the giving of notice,
        could
        become an Event of Default, specify such event of default or act or omission
        known to such authorized officer and the nature and status
        thereof].

       

      IN
        WITNESS WHEREOF, the undersigned have executed this certificate this [__]
        day of
        [________________].

       

      
        	 	
                By:

              	 
	 	 	
                Name:

                Title:

                 

              
	 	 	 
	 	
                By:

              	 
	 	 	
                Name:

                Title:

              

      

       

      
        
          
          

        

        
          Annex
            4-1

          
            

          

        

        
          
          

        

      

      ANNEX
        5

       

      FORM
        OF ASSESSMENT OF SERVICING CRITERIA

       

      I,
        ________________________________, the _______________________ of the Servicer,
        am responsible for assessing the Servicer’s compliance with the servicing
        criteria set forth in Item 1122(d) of Regulation AB [that would apply if
        the
        Bonds were “asset-backed securities” under Item 1101(c) of Regulation AB] (the
“Servicing Criteria”).

       

      With
        respect to each of the Servicing Criteria, I have 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 Issuer’s Form 10-K Report (such fiscal year, the
“Assessment Period”):

       

      [N.B.:
        the descriptions are for reference as to how the form will be used on an
        ongoing
        basis for filing with the SEC]

       

      
        	 	
                Servicing
                  Criteria

              	
                Applicable
                  Servicing Criteria

              
	
                Reference

              	
                Criteria

              	 
	 	
                General Serving 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. [Assessment: cover true-up compliance
                  here]

              
	
                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 the environmental control property are maintained.

              	
                Not
                  applicable; documents do not provided 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; rules of the Commission govern performance requirements
                  of
                  persons handling customer collections. [Utility to confirm bonding
                  requirements under current rules and regulations.] 

              
	 	
                Cash
                  Collection and Administration

              	 
	
                1122(d)(2)(i)

              	
                Payments
                  on environmental control property 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;
                  assessment below [Assessment: estimated collections were remitted
                  from the
                  Servicer to the Trustee each business day in accordance with
                  Section 5.10 of the Servicing
                  Agreement.]

              

      

       

      
        
          
          

        

        
          Annex
            5-1

          
            

          

        

        
          
          

        

      

       

      
        	
                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;
                  assessment below.[Assessment: Wire transfers to the Trustee were
                  made by
                  authorized personnel.]

              
	
                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,
                  but no current assessment required; no advances by the Servicer
                  or the
                  Trustee are permitted under the transaction documents. 

              
	
                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; no reserve accounts are
                  held by the
                  Servicer. Excess funds and other transaction accounts are maintained
                  and
                  applied by the Trustee in accordance with the
                  Indenture.

              
	
                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) of the Securities Exchange
                  Act.

              	
                Applicable,
                  but no current assessment required; all “custodial accounts” were
                  maintained by the Trustee and invested in accordance with indenture
                  requirements.

              
	
                1122(d)(2)(vi)

              	
                Unissued
                  checks are safeguarded so as to prevent unauthorized
                  access.

              	
                Not
                  applicable; all transfers 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.

              	
                Partially
                  applicable; reconciliations of estimated remittances of environmental
                  control charge remittances with actual storm-recovery bond collections
                  are
                  made on an annual basis as required by Section 5.10 of the Servicing
                  Agreement.; assessment below.

              

      

       

      
        
          
          

        

        
          Annex
            5-2

          
            

          

        

        
          
          

        

      

       

      
        	 	
                Investor
                  Remittances and Reporting

              	 
	
                1122(d)(3)(i)

              	
                Reports
                  to investors, including those to be filed with the Commission,
                  are
                  maintained in accordance with the transaction agreements and applicable
                  Commission 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
                  Commission 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 pledged assets serviced by the
                  Servicer.

              	
                Applicable;
                  assessment below.

              
	
                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.

              	
                Applicable;
                  assessment below. [Assessment: Servicer has provided applicable
                  instructions to the trustee to allocate and remit funds to
                  investors.]

              
	
                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.

              	
                Not
                  applicable; transaction documents do not permit Servicer to disburse
                  payments to investors.

              
	
                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.

              	
                Not
                  applicable; bondholders are paid by the Indenture Trustee in accordance
                  with terms of the Indenture.

              
	 	
                Asset
                  Administration

              	 
	
                1122(d)(4)(i)

              	
                Collateral
                  or security on environmental control property is maintained as
                  required by
                  the transaction agreements or related documents.

              	
                Applicable;
                  assessment below. [Assessment: Servicer has performed true-up adjustments
                  of Environmental Control Charges in accordance with Section 4.01 of
                  the Servicing Agreement.]

              
	
                1122(d)(4)(ii)

              	
                Environmental
                  control property and related documents are safeguarded as required
                  by the
                  transaction agreements.

              	
                Applicable;
                  assessment below. [Assessment: Servicer has maintained custody
                  over all
                  environmental control property records in accordance with
                  Section 3.08 of the Servicing Agreement.]

              
	
                1122(d)(4)(iii) 

              	
                Any
                  additions, removals or substitutions to the assets are made, reviewed
                  and
                  approved in accordance with any conditions or requirements in the
                  transaction agreements.

              	
                Applicable
                  but no current assessment required; no removals or substitutions
                  of
                  pledged assets are contemplated or allowed under the transaction
                  documents.

              

      

       

      
        
          
          

        

        
          Annex
            5-3

          
            

          

        

        
          
          

        

      

       

      
        	
                1122(d)(4)(iv)

              	
                Payments
                  on pledged assets, including any payoffs, made in accordance with
                  the
                  related environmental control property 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 environmental control transaction
                  documents.

              	
                Applicable;
                  assessment below.[Assessment: The Servicer posted substantially
                  all
                  environmental control charge payments to customer accounts within
                  two
                  business days as required by Section 6(b) of Exhibit A—Payment
                  Processing: Allocation; Priority of Payments]

              
	
                1122(d)(4)(v)

              	
                The
                  Servicer’s records regarding the environmental control property 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 environmental control
                  property are made, reviewed and approved by authorized personnel
                  in
                  accordance with the transaction agreements and related asset
                  documents. 

              	
                Applicable;
                  assessment below [Assessment: Servicer has not waived or modified
                  term of
                  payment except in accordance with Section 6(a)(ii) of Exhibit
                  A-Servicing Procedures]

              
	
                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;
                  assessment below. [Assessment: Loss mitigation or recovery actions
                  have
                  been conducted in accordance with Section 6(a) of Exhibit A—
                  Collections: Payment Processing; Remittance]

              
	
                1122(d)(4)(viii)

              	
                Records
                  documenting collection efforts are maintained during the period
                  any
                  pledged 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 environmental control charges
                  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. No explicit documentation requirement
                  with respect to delinquent accounts are imposed under the transactional
                  documents due to availability of “true-up” mechanism; and any such
                  documentation is maintained in accordance with applicable PSCWV
                  rules and
                  regulations.

              
	
                1122(d)(4)(ix)

              	
                Adjustments
                  to interest rates or rates of return for environmental control
                  property
                  with variable rates are computed based on the related environmental
                  control property documents.

              	
                Not
                  applicable; environmental control charges are not interest bearing
                  instruments.

              

      

       

      
        
          
          

        

        
          Annex
            5-4

          
            

          

        

        
          
          

        

      

       

      
        	
                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 environmental control
                  property 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 environmental
                  control property documents and state laws; and (C) such funds are
                  returned
                  to the obligor within 30 calendar days of full repayment of the
                  related
                  environmental control property, or such other number of days specified
                  in
                  the transaction agreements.

              	
                Applicable,
                  but does not require assessment; Servicer maintains customer deposits
                  in
                  accordance with the PSCWV rules and regulations.

              
	
                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.

              
	
                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 transactional documents.

              
	
                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. [See
                  Section 5.09. these costs are borne by the Servicer, not advanced by
                  the Servicer.]

              
	
                1122(d)(4)(xiv)

              	
                Delinquencies,
                  charge-offs and uncollectible accounts are recognized and recorded
                  in
                  accordance with the transaction agreements.

              	
                Applicable;
                  assessment below. [Assessment: Servicer has reconciled actual collections
                  of environmental control charges and estimated remittances on or
                  before
                  March 1 of the following year, per Section 5.11 of the Servicing
                  Agreement [need to include]. Servicer has applied partial payments
                  in
                  accordance with Section 3.02(b) and Section 6(b) of Exhibit A—
                  Payment Processing: Allocation; Priority of Payments]

              
	
                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 credit support or derivatives were employed
                  [or:
                  Applicable; assessment below.]

              

      

       

      
        
          
          

        

        
          Annex
            5-5

          
            

          

        

        
          
          

        

      

       

      With
        respect to each of the applicable Servicing Criteria, I have made the following
        assessment 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 Issuer’s Form 10-K Report (such fiscal year the
“Assessment Period”).

       

      1.   Item
        1122(d)(1)(i) : [include narrative of assessment]

       

      2.   [Continue
        enumeration of applicable Servicing Criteria with appropriate narrative of
        assessment]

       

      Based
        on
        the aforementioned Servicing Criteria, I find that the Servicer has fulfilled
        all of the applicable servicing obligations under the Servicing Agreement
        in all
        material respects through the Assessment Period, with the exception of the
        following instance(s) of material noncompliance:

       

      1.   [Include
        narrative of any material noncompliance with servicing obligations]

       

      A
        registered public accounting firm has issued an attestation report on the
        party’s assessment of compliance with the applicable servicing criteria as of
        and for the period ending the end of the Assessment Period.

       

      
        	 	
                Date:

                 

              
	 	
                By:

              	 
	 	 	
                Name:

              

      

      

      
        
          
          

        

        
          Annex
            5-6

          
            

          

        

        
          
          

        

      

       

      ANNEX
        6

       

      FORM
        OF REGULATION AB COMPLIANCE CERTIFICATION

       

      
        	 	
                Re:
                  

              	
                Servicing
                  Agreement dated as of April 11, 2007 (the “Servicing
                  Agreement”),

                between
                  PE
                  Environmental
                  Funding LLC, as issuer (the “Issuer”), and

                The
                  Potomac Edison Company (the
“Servicer”).

              

      

       

      I,
        ________________________________, the _______________________ of the Servicer,
        certify to Issuer and the Administrator, [and other required parties] and
        their
        officers, with the knowledge and intent that they will rely upon this
        certification, that:

       

      1.   I
        have
        reviewed the servicer compliance statement of the Servicer provided in
        accordance with Item 1123 of Regulation AB as it would apply if the
        Environmental Control Bonds were ‘asset-backed securities” under Item 1101(c) of
        Regulation AB (the “Compliance Statement”) and Section 3.05(a)(iv) of the
        Servicing Agreement, the report on assessment of the Company’s compliance with
        the servicing criteria set forth in Item 1122(d) of Regulation AB (the
“Servicing Criteria”), provided in accordance with Rules 13a-18 and 15d-18 under
        Securities Exchange Act of 1934, as amended (the “Exchange Act”) and Item 1122
        of Regulation AB (the “Servicing Assessment”), the registered public accounting
        firm’s attestation report provided in accordance with Rules 13a-18 and 15d-18
        under the Exchange Act and Section 1122(b) of Regulation AB (the
“Attestation Report”), and all servicing reports, officer’s certificates and
        other information relating to the servicing of the Environmental Control
        Property during 200[ ] that were delivered by the Servicer to the [Issuer]
        [Administrator] [Indenture Trustee] pursuant to the Agreement (collectively,
        the
“ Servicing Information”);

       

      2.   Based
        on
        my knowledge, the Servicing Information, taken as a whole, does not contain
        any
        untrue statement of a material fact or omit to state a material fact necessary
        to make the statements made, in the light of the circumstances under which
        such
        statements were made, not misleading with respect to the period of time covered
        by the company Servicing Information;

       

      3.   Based
        on
        my knowledge, all of the Servicing Information required to be provided by
        the
        Servicer under the Agreement has been provided to the [Issuer] [Administrator]
        [Indenture Trustee];

       

      4.   I
        am
        responsible for reviewing the activities performed by the Servicer as servicer
        under the Agreement, and based on my knowledge and the compliance review
        conducted in preparing the Compliance Statement and except as disclosed in
        the
        Compliance Statement, the Servicing Assessment or the Attestation Report,
        the
        Servicer has fulfilled its obligations under the Agreement in all material
        respects; and

       

      
        
          
          

        

        
          Annex
            6-1

          
            

          

        

        
          
          

        

      

      5.   The
        Compliance Statement required to be delivered by the Servicer pursuant to
        the
        Agreement, and the Servicing Assessment and Attestation Report required to
        be
        provided by the Servicer and by any subservicer pursuant to the Agreement,
        have
        been provided to the [Issuer] [Administrator] [Indenture Trustee]. Any material
        instances of noncompliance described in such reports have been disclosed
        to the
        [Issuer] [Administrator] [Indenture Trustee]. Any material instance of
        noncompliance with the Servicing Criteria has been disclosed in such
        reports.

       

      
        	 	
                Date:

                 

              
	 	
                By:

              	 
	 	 	
                Name:

                Title:

              

      

      

      
        
          
          

        

        
          Annex
            6-2

          
            

          

        

        
          
          

        

         

      

      APPENDIX
        A 

       

      to

       

      SERVICING
        AGREEMENT

       

      Master
        Definitions

       

      
        
          
          

        

        
          Appendix
            A-1

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