Document:

EXHIBIT 10-32
	 

	 
		FirstEnergy Nuclear Generation Corp. 

	 

	 
		FERC Electric Tariff, Original Volume No.
		1
	 

	 
		Revised Service Agreement No.1 
	 

	 
		[Execution Copy] 
	 

	 
		NUCLEAR POWER SUPPLY AGREEMENT

	 

	 
		Between FirstEnergy Nuclear Generation
		Corp., Seller
	 

	 
		and
	 

	 
		FirstEnergy Solutions Corp.,
		Buyer
	 

	 
		This Nuclear Power Supply Agreement
		(“Agreement”) dated August 10, 2006 is made by and between
		FirstEnergy Nuclear Generation Corp., (“FENGenco” or
		“Seller”), and FirstEnergy Solutions Corp. (“Solutions” or
		“Buyer”). FENGenco and Solutions may be identified collectively as
		“Parties” or individually as a “Party.” This Agreement is
		entered into in connection with the transfer of the ownership interests of The
		Cleveland Electric Illuminating Company, Ohio Edison Company, Pennsylvania
		Power Company, and The Toledo Edison Company in the Beaver Valley Power
		Station, Davis-Besse Nuclear Power Station, and Perry Nuclear Power Plant
		(“Nuclear Generating Plants”) to FENGenco.
	 

	 
		WHEREAS, Seller is a newly formed, nuclear
		generation only company that intends to acquire certain interests in Nuclear
		Generating Plants owned by The Cleveland Electric Illuminating Company, Ohio
		Edison Company, Pennsylvania Power Company, and The Toledo Edison Company
		(collectively “the FirstEnergy Operating Companies”); and 
	 

	 
		WHEREAS, Seller will be a wholly owned
		subsidiary of FirstEnergy Corp; and 
	 

	 
		WHEREAS, the Nuclear Generating Plants are
		operated by FirstEnergy Nuclear Operating Company, a wholly owned subsidiary of
		FirstEnergy Corp. and affiliate of FENGenco; and 
	 

	 
		WHEREAS, Seller will also purchase the
		electrical output of Ohio Edison Company and The Toledo Edison Company’s
		sale/leaseback interests in Beaver Valley Power Station Unit 2 and Perry
		Nuclear Power Plant (“Leased Nuclear Generation Facilities”);
		and
	 

	 
		WHEREAS, Seller will be engaged exclusively
		in the business of owning the Nuclear Generating Plants and selling Power from
		the owned Nuclear Generating Plants and Leased Nuclear Generation Facilities
		(collectively, the “Nuclear Generating Facilities”) at wholesale; and
		
	 

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

	 
		 
	 

	 
			
				
				  Issued by: Gary R. Leidich,
				  President
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				  Effective Date:
				

			 
	
				
				  Issued on: August 10,
				  2006
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				  January 1, 2006
				

			 

 

	 
		 
	 

	 
		 
	 

	 
	 

	 

	 
		It is agreed as follows: 
	 

	 
			
				
				  I.
				

			 	
				
				  TERM
				

			 

 

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

	 
			
				
				  II.
				

			 	
				
				  SALE AND PURCHASE OF CAPACITY AND
				  ENERGY 
				

			 

 

	 
			
				
				  A.
				

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

			 

 

	 
			
				
				  B.
				

			 	
				
				  FENGenco shall cause the Nuclear
				  Generating Facilities to be operated and maintained in accordance with Good
				  Utility Practice, the applicable requirements of the FERC, NRC and NERC, as
				  well as the requirements of the regional reliability councils or Regional
				  Entity, and Regional Transmission Organizations where the Nuclear Generating
				  Facilities are located. FENGenco will enter into agreements with FirstEnergy
				  Nuclear Operating Company, other FirstEnergy affiliates, Transmission Provider,
				  or Government Authority if necessary to ensure compliance with this Section
				  II.B.
				

			 

 

	 
			
				
				  III.
				

			 	
				
				  SCHEDULING AND SYSTEM PLANNING
				  
				

			 

 

	 
			
				
				  A.
				

			 	
				
				  In order for Solutions to be able to
				  plan adequately to market and sell all of the Capacity, Energy, and Ancillary
				  Services, available from the Nuclear Generating Facilities identified in
				  Exhibit C, FENGenco shall notify Solutions on or before November 1 of each year
				  during the term of this Agreement of the amount of Capacity, Energy, and
				  Ancillary Services, it expects to have available for each day in each month of
				  the next calendar year. The information provided in this notification shall
				  include, but not be limited to, the time and expected duration of any planned
				  outage of the Nuclear Generating Facilities.
				

			 

 

	 
		 
	 

	 
		 
	 

	 
	 

	 

	 
			
				
				  B.
				

			 	
				
				  FENGenco shall update its annual
				  forecast of available Capacity, Energy, and Ancillary Services for any change
				  or expected change in the operation of the Nuclear Generating Facilities that
				  would materially affect the annual forecast provided to Solutions. FENGenco
				  shall provide the updated forecast to Solutions for any full month(s) remaining
				  in the calendar year within thirty days of becoming aware of the change or
				  expected change in the operation of the Nuclear Generating Facilities.
				

			 

 

	 
			
				
				  C.
				

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

			 

 

	 
			
				
				  IV.
				

			 	
				
				  PRICE 
				

			 

 

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

	 
		A. Charges 
	 

	 
		Buyer will pay Seller the Monthly Charge
		under the cost-based formula set forth in Exhibit A for the Power Supply
		Requirements available from the Nuclear Generating Facilities identified in
		Exhibit C.
	 

	 
		B. Billing and Payment
	 

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

	 
		C. Records
	 

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

	 
		 
	 

	 
		 
	 

	 
	 

	 

	 
		D. Audit and Adjustment Rights

	 

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

	 
		E. Section 205 Rights
	 

	 
		Nothing contained herein shall be construed
		as affecting in any way the right of the Party furnishing service under this
		Agreement to unilaterally make application to the FERC for a change in rates
		under Section 205 of the Federal Power Act and pursuant to the FERC’s
		Rules and Regulations thereunder. Provided, however, that nonrate terms and
		conditions may be amended only by a written agreement signed by the
		Parties.
	 

	 
			
				
				  V.
				

			 	
				
				  METERING 
				

			 

 

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

	 
			
				
				  VI.
				

			 	
				
				  NOTICES 
				

			 

 

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

	 
		NOTICES &
		CORRESPONDENCE: 
	 

	 
		 
	 

	 
			
				
				  To Seller:
				

			 	
				
				  FirstEnergy Nuclear Generation
				  Corp., President 
 76 South Main St.
				  
 Akron, Ohio 44308 
				

			 

 

	 
		 
	 

	 
		 
	 

	 
	 

	 

	 
		 
	 

	 
			
				
				  To Buyer:
				

			 	
				
				  FirstEnergy Solutions Corp.,
				  Director, Wholesale Energy Transactions
 395 Ghent Road
 Akron, Ohio 44333
				

			 

 

	 
		INVOICES & PAYMENTS: 
	 

	 
		 
	 

	 
			
				
				  To Seller:
				

			 	
				
				  FirstEnergy Nuclear Generation
				  Corp., President 
 76 South Main
				  St.
 Akron, Ohio 44308
				

			 

 

	 
		 
	 

	 
			
				
				  To Buyer:
				

			 	
				
				  FirstEnergy Solutions Corp.,
				  Director, Wholesale Energy Transactions
 395 Ghent Road
 Akron, Ohio 44333
				

			 

 

	 
		SCHEDULING: 
	 

	 
		 
	 

	 
			
				
				  To Seller:
				

			 	
				
				  FirstEnergy Nuclear Generation
				  Corp., President
 76 South Main
				  St.
 Akron, Ohio 44308
				

			 

 

	 
		 
	 

	 
			
				
				  To Buyer:
				

			 	
				
				  FirstEnergy Solutions Corp.,
				  Director, Wholesale Energy Transactions
 395 Ghent Road
 Akron, Ohio 44333
				

			 

 

	 
			
				
				  VII.
				

			 	
				
				  MISCELLANEOUS 
				

			 

 

	 
		A. Performance Excused
	 

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

	 
		Force Majeure shall be defined as any cause
		beyond the reasonable control of, and not the result of negligence or the lack
		of diligence of, the Party claiming Force Majeure or its contractors or
		suppliers. It includes, without limitation, earthquake, storm, lightning,
		flood, backwater caused by flood, fire, explosion, act of the public enemy,
		epidemic, accident, failure of facilities, equipment or fuel supply, acts of
		God, war, riot, civil disturbances, strike, labor disturbances, labor or
		material shortage, national emergency, restraint by court order or other
		Government Authority, interruption of synchronous operation, or other similar
		or dissimilar causes beyond the control of the Party affected, 
	 

	 
		 
	 

	 
		 
	 

	 
	 

	 

	 
		which causes such Party could not have
		avoided by exercising Good Utility Practice. Nothing contained herein shall be
		construed to require a Party to settle any strike, lockout, work stoppage, or
		other industrial disturbance or dispute in which it may be involved or to take
		an appeal from any judicial, regulatory or administrative action. 
	 

	 
		B. Transfer of Title and Indemnification
		
	 

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

	 
		C. Confidentiality
	 

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

	 
		D. Further Assurances
	 

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

	 
		E. Assignment 
	 

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

	 
		 
	 

	 
		 
	 

	 
	 

	 

	 
		F. Governing Law
	 

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

	 
		G. Counterparts 
	 

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

	 
		H. Waiver
	 

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

	 
		I. No Third Party
		Beneficiaries
	 

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

	 
		J. Severability 
	 

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

	 
		K. Construction 
	 

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

	 
		 
	 

	 
		 
	 

	 
	 

	 

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

	 
		 
	 

	 
			
				
				   
				

			 	
				
				   
				

			 	
				
				  FirstEnergy Solutions
				  Corp.
				

			 
	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

				
				  /s/ Guy Pipitone
				

			 
	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				  President, FirstEnergy Solutions
				  Corp.
				

			 

 

	 
		 
	 

	 
		 
	 

	 
			
				
				   
				

			 	
				
				   
				

			 	
				
				  FirstEnergy Nuclear Generation
				  Corp.
				

			 
	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

				
				  /s/ Gary R. Leidich
				

			 
	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				  President, FirstEnergy Nuclear
				  Generation Corp.
				

			 

 

	 
		 
	 

	 
		 
	 

	 
	 

	 

	 
		EXHIBIT A
	 

	 
		FirstEnergy Nuclear Generation
		Corp.
	 

	 
		Monthly Charge Formula
	 

	 
		FirstEnergy Nuclear Generation Corp.
	 

	 
		Monthly Revenue Requirement Formula
	 

	 
		Development of Investment Base (Note
		1)
	 

	 
		Month, XXXX
	 

	 
		 
	 

	 
			
				
				  Line
 No.
				

			 	
				
				   
				

			 	
				
				  Description
				

			 	
				
				   
				

			 	
				
				  Amount
				

			 	
				
				   
				

			 	
				
				  Reference/Source
				

			 
	
				
				  1
				

			 	
				
				   
				

			 	
				
				  Plant in Service
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				  FERC Acts. 101, 106 (Note 2)
				

			 
	
				
				  2
				

			 	
				
				   
				

			 	
				
				  Accumulated Depreciation &
				  Amortization
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				  FERC Acts. 108, 111 (Notes 2 and
				  3)
				

			 
	
				
				  3
				

			 	
				
				   
				

			 	
				
				  Net Utility Plant
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				  Line 1 plus Line 2
				

			 
	
				
				  4
				

			 	
				
				   
				

			 	
				
				  Nuclear Fuel
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				  FERC Acts. 120.2-120.4
				

			 
	
				
				  5
				

			 	
				
				   
				

			 	
				
				  Amortization of Nuclear Fuel
				

			 	
				
				   
				

			 	
				
				  Took out CWIP
				

			 	
				
				   
				

			 	
				
				  FERC Acts. 120.5 (enter
				  negative)
				

			 
	
				
				  6
				

			 	
				
				   
				

			 	
				
				  Materials and Supplies
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				  FERC Acts. 154, 163
				

			 
	
				
				  7
				

			 	
				
				   
				

			 	
				
				  Prepayments
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				  FERC Ads. 165
				

			 
	
				
				  8
				

			 	
				
				   
				

			 	
				
				  Working Cash
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

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

			 
	
				
				  9
				

			 	
				
				   
				

			 	
				
				  Accumulated Deferred Income
				  Taxes
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				  FERC Acts 190, 281, 282, 283
				

			 
	
				
				  10
				

			 	
				
				   
				

			 	
				
				  Investment Base
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				  Sum of Lines 3-9
				

			 

 

	 
		Notes
	 

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

	 
		2) Includes amounts associated with step-up
		facilities at the generating plants and excludes Asset Retirement Costs.

	 

	 
		3) The balance for Accumulated Depreciation
		and Amortization is to be reduced by any decommissioning reserve included in
		account 108 and 111 which represent monies held by third parties. Account 108
		also excludes the accumulated amortization associated witht the Asset
		Retirement Costs.
	 

	 
		 
	 

	 
		 
	 

	 
	 

	 

	 
		FirstEnergy Nuclear Generation Corp.
	 

	 
		Monthly Revenue Requirement Formula
	 

	 
		Development of Monthly Revenue Requirement
		(Note 1)
	 

	 
		Month, XXXX
	 

	 
		 
	 

	 
			
				
				  Line No.
				

			 	
				
				   
				

			 	
				
				  Description
				

			 	
				
				   
				

			 	
				
				  Amount
				

			 	
				
				   
				

			 	
				
				  Reference/Source
				

			 
	
				
				  1
				

			 	
				
				   
				

			 	
				
				  Monthly Revenue Requirement
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				  (Note 2)
				

			 
	
				
				  2
				

			 	
				
				   
				

			 	
				
				  Operation & Maintenance
				  Expense
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				  FERC Acts. 517-525, 528-532, 555-557
				  (Note 3), 560-573 (Note 4), 920-931, 935
				

			 
	
				
				  3
				

			 	
				
				   
				

			 	
				
				  Depreciation Expense
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				  FERC Act 403 excluding
				  Decommissioning Expense
				

			 
	
				
				  4
				

			 	
				
				   
				

			 	
				
				  Decommissioning Expense (Note
				  5)
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				  FERC Act. 403 - Decommissioning
				  Expense
				

			 
	
				
				  5
				

			 	
				
				   
				

			 	
				
				  Accretion Expense
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				  FERC Act. 411.10 Associated with
				  Accretion Expense
				

			 
	
				
				  6
				

			 	
				
				   
				

			 	
				
				  Decommissioning Trust
				  Earnings
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				  Company Books (Note 7)
				

			 
	
				
				  7
				

			 	
				
				   
				

			 	
				
				  Amortization Expense
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				  FERC Acts. 404, 407.3, 407.4
				

			 
	
				
				  8
				

			 	
				
				   
				

			 	
				
				  Taxes other than Income Taxes

				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				  FERC Act. 408.1
				

			 
	
				
				  9
				

			 	
				
				   
				

			 	
				
				  Current State Income Tax
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				  Page 3, Line 20
				

			 
	
				
				  10
				

			 	
				
				   
				

			 	
				
				  Current Federal Income Tax
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				  Pegs 3, Line 27
				

			 
	
				
				  11
				

			 	
				
				   
				

			 	
				
				  Provision for Deferred Income
				  Tax-State
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				  State portion of FERC Acts. 410.1,
				  411.1 (Note 6)
				

			 
	
				
				  12
				

			 	
				
				   
				

			 	
				
				  Provision for Deferred Income
				  Tax-Federal
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				  Federal portion of FERC Acts. 410.1,
				  411.1 (Note 6)
				

			 
	
				
				  13
				

			 	
				
				   
				

			 	
				
				  Investment Tax Credit - Net
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				  FERC Act. 411.4
				

			 
	
				
				  14
				

			 	
				
				   
				

			 	
				
				  Utility Operating Expenses
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				  Sum of Lines 2-13
				

			 
	
				
				  15
				

			 	
				
				   
				

			 	
				
				  Utility Operating Income
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				  Line 1 minus Line 14
				

			 
	
				
				  16
				

			 	
				
				   
				

			 	
				
				  After Tax Earnings from Trust

				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				  Company Books (Note 8)
				

			 
	
				
				  17
				

			 	
				
				   
				

			 	
				
				  Adjusted Utility Operating
				  Income
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				  Line 15 plus Line 16
				

			 
	
				
				  18
				

			 	
				
				   
				

			 	
				
				  Verification:
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 
	
				
				  19
				

			 	
				
				   
				

			 	
				
				  Investment Base
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				  Page 1, Line 10
				

			 
	
				
				  20
				

			 	
				
				   
				

			 	
				
				  Rate of Return on Investment
				  Bsse
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				  12 times (Line 17/Line 19); Must
				  equal Line 21
				

			 
	
				
				  21
				

			 	
				
				   
				

			 	
				
				  Cost of Capital
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				  Weighted Cost Rate from Page 4, Line
				  3
				

			 

 

	 
		Notes
	 

	 
		1) All expenses are to be those for the
		current service month.
	 

	 
		2) The Monthly Revenue Requirement is the
		gross amount which when O&M expenses are subtracted results in an utility
		operating income (line 17) which when divided by the Investment Base (Page 1,
		Line 10) produces a Rate of Return on Investment Base equal to the Cost of
		Capital (determined in accordance with Page 4).
	 

	 
		3) Only the portion of Account 555 -
		Purchased Power that represents the expense incurred by FirstEnergy Nuclear
		Generation Corp. from purchasing the capacity and energy from that portion of
		Perry and Beaver Valley Nuclear Stations which is leased by affiliated
		companies.
	 

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

	 
		5) Should the FERC approve a change in
		FirstEnergy Nuclear Generation Corp.’s schedule of annual decommissioning
		expenses during the service month, the monthly level in effect as of the end of
		the month shall be utilized. Otherwise the amount charged to FERC account 403
		for the service month shall be utilized.
	 

	 
		6) Restricted to those items for which
		corresponding timing difference are included in the adjustments to Net Income
		Before Income Tax (see Page 3, Line 9).
	 

	 
		 
	 

	 
	 

	 

	 
		7) Represents dividends and interest
		earnings and non-qualified realized earnings from the decommissioning trust on
		a pre-tax basis. A negative number represents positive earnings from the
		trust.
	 

	 
		8) Represents qualified realized earnings
		from the decommissioning trust on an after-tax basis. A positive number
		represents positive realized earnings from the trust.
	 

	 
		 
	 

	 
		 
	 

	 
	 

	 

	 
		FirstEnergy Nuclear Generation Corp.
	 

	 
		Monthly Revenue Requirement Formula
	 

	 
		Development of Current Income Tax
		Expense
	 

	 
		Month, XXXX
	 

	 
		 
	 

	 
			
				
				  Line No.
				

			 	
				
				  Description
				

			 	
				
				  Amount
				

			 	
				
				  Reference/Source
				

			 
	
				
				  1
				

			 	
				
				  Monthly Revenue Requirement
				

			 	
				
				   
				

			 	
				
				  Pegs 2, Line 1
				

			 
	
				
				  2
				

			 	
				
				  Operation & Maintenance
				  Expense
				

			 	
				
				   
				

			 	
				
				  Page 2, Line 2
				

			 
	
				
				  3
				

			 	
				
				  Depreciation Expense
				

			 	
				
				   
				

			 	
				
				  Page 2, Line 3
				

			 
	
				
				  4
				

			 	
				
				  Decommissioning Expense
				

			 	
				
				   
				

			 	
				
				  Pegs 2, Line 4
				

			 
	
				
				  5
				

			 	
				
				  Accretion Expense
				

			 	
				
				   
				

			 	
				
				  Page 2, Line 5
				

			 
	
				
				  6
				

			 	
				
				  Decommissioning Trust
				  Earnings
				

			 	
				
				   
				

			 	
				
				  Page 2, Line 6
				

			 
	
				
				  7
				

			 	
				
				  Amortization Expense
				

			 	
				
				   
				

			 	
				
				  Page 2, Line 7
				

			 
	
				
				  8
				

			 	
				
				  Taxes other than Income Taxes

				

			 	
				
				   
				

			 	
				
				  Pegs 2, Line 8
				

			 
	
				
				  9
				

			 	
				
				  Net Income Before Taxes
				

			 	
				
				   
				

			 	
				
				  Line 1 minus (Sum of Lines
				  2-8)
				

			 
	
				
				  10
				

			 	
				
				  Adjustments to Net Income Before
				  Income Tax:
				

			 	
				
				   
				

			 	
				
				   
				

			 
	
				
				  11
				

			 	
				
				  Interest Synchronization
				

			 	
				
				   
				

			 	
				
				  [Investment Base (Page 1, Line 10)
				  times (-1) times Total Debt Rate (Page 4, Line 1)] divided by 12
				

			 
	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 
	
				
				  12
				

			 	
				
				  Other Adjustments
				

			 	
				
				   
				

			 	
				
				  (Note 1)
				

			 
	
				
				  13
				

			 	
				
				  Total Adjustments
				

			 	
				
				   
				

			 	
				
				  Line 11 plus Line 12
				

			 
	
				
				  14
				

			 	
				
				  Taxable Income
				

			 	
				
				   
				

			 	
				
				  Line 9 plus Line 13
				

			 
	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 
	
				
				   
				

			 	
				
				  Computation of State Income
				  Tax
				

			 	
				
				   
				

			 	
				
				   
				

			 
	
				
				  15
				

			 	
				
				  State Taxable Income before
				  Adjustments
				

			 	
				
				   
				

			 	
				
				  Line 14
				

			 
	
				
				  16
				

			 	
				
				  Net Adjustment to State Taxable
				  Income
				

			 	
				
				   
				

			 	
				
				  (Note 1)
				

			 
	
				
				  17
				

			 	
				
				  State Taxable Income
				

			 	
				
				   
				

			 	
				
				  Line 15 plus Line 16
				

			 
	
				
				  18
				

			 	
				
				  State Income Tax before
				  Adjustments
				

			 	
				
				   
				

			 	
				
				  Line 17 times Ohio/Pennsylvania
				  Stste Tax Rate (Note 2)
				

			 
	
				
				  19
				

			 	
				
				  Adjustments to State Tax
				

			 	
				
				   
				

			 	
				
				  (Note 1)
				

			 
	
				
				  20
				

			 	
				
				  Current State Income Tax
				

			 	
				
				   
				

			 	
				
				  Sum of Line 18 and 19
				

			 
	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 
	
				
				   
				

			 	
				
				  Computation of Federal Income
				  Tax
				

			 	
				
				   
				

			 	
				
				   
				

			 
	
				
				  21
				

			 	
				
				  Federal Taxable Income before
				  Adjustments
				

			 	
				
				   
				

			 	
				
				  Line 14
				

			 
	
				
				  22
				

			 	
				
				  Current State Income Tax
				  Deduction
				

			 	
				
				   
				

			 	
				
				  Line 20 (shown as deduction)
				

			 
	
				
				  23
				

			 	
				
				  Other Adjustments to Federal Taxable
				  Income
				

			 	
				
				   
				

			 	
				
				  (Note 1)
				

			 
	
				
				  24
				

			 	
				
				  Federal Taxable Income
				

			 	
				
				   
				

			 	
				
				  Sum of Line 21-23
				

			 
	
				
				  25
				

			 	
				
				  Federal Income Tax before
				  Adjustments
				

			 	
				
				   
				

			 	
				
				  Line 24 times Federal Tax Rate (Note
				  2)
				

			 
	
				
				  26
				

			 	
				
				  Adjustments to Federal Tax
				

			 	
				
				   
				

			 	
				
				  (Note 1)
				

			 
	
				
				  27
				

			 	
				
				  Currant Federal Income Tax
				

			 	
				
				   
				

			 	
				
				  Sum of Lines 25 and 26
				

			 

 

	 
		Notes
	 

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

	 
		 
	 

	 
		 
	 

	 
	 

	 

	 
		2) Rate in effect at the end of the service
		month.
	 

	 
		 
	 

	 
		 
	 

	 
	 

	 

	 
		FirstEnergy Nuclear Generation Corp.
	 

	 
		Monthly Revenue Requirement Formula
	 

	 
		Development of Cost of Capital (Note
		1)
	 

	 
		Month, XXXX
	 

	 
		 
	 

	 
			
				
				  Line No.
				

			 	
				
				   
				

			 	
				
				  Capital Source
				

			 	
				
				   
				

			 	
				
				  Capital Amount (Note 2)
				

			 	
				
				   
				

			 	
				
				  Capitalization Ratio (Note 3)

				

			 	
				
				   
				

			 	
				
				  Cost Rate (Notes 4,6)
				

			 	
				
				   
				

			 	
				
				  Weighted Cost Rate (Note 5)
				

			 
	
				
				  1
				

			 	
				
				   
				

			 	
				
				  Long Term Debt FERC Acts. 221-224,
				  225,226,233
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 
	
				
				  2
				

			 	
				
				   
				

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

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 
	
				
				  3
				

			 	
				
				   
				

			 	
				
				  Total
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 

 

	 
		Notes
	 

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

	 
		     month.

	 

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

	 
		3) Applicable capital amount divided by
		total capital amount.
	 

	 
		4) Average cost rate for all outstanding
		issues including applicable amortization of debt discount, premium
	 

	 
		     and
		expense together with amortization of loss or gain on reacquired debt.
	 

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

	 
		6) The Common Equity Cost Rate shall be
		10.5%.
	 

	 
		 
	 

	 
		 
	 

	 
	 

	 

	 
		EXHIBIT B
	 

	 
		DEFINITIONS
	 

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

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

	 
		Ancillary Services means Reactive Supply and Voltage Control from
		Generation Resources Service, Regulation and Frequency Response Service,
		Operating Reserve – Spinning Reserve Service, and Operating Reserve –
		Supplemental Service, and such additional Ancillary Services as defined in the
		Transmission Provider OATT and to the extent available from the Nuclear
		Generating Facilities.
	 

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

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

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

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

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

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

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

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

	 
		Good Utility Practice means any of the practices, methods and acts engaged in
		or approved by a significant portion of the electric utility industry during
		the relevant time period or any of the practices, methods and acts which, in
		the exercise of reasonable 
	 

	 
		 
	 

	 
		 
	 

	 
	 

	 

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

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

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

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

	 
		NRC means the Nuclear Regulatory Commission or its
		regulatory successor.
	 

	 
		Power means Capacity and/or Energy. 

	 

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

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

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

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

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

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

	 
		 
	 

	 
		 
	 

	 
	 

	 

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

	 
		 
	 

	 
		 
	 

	 
	 

	 

	 
		EXHIBIT C
	 

	 
		Nuclear Generating Facilities
	 

	 
		NDC in MW
	 

	 
		 
	 

	 
			
				
				  Beaver Valley Unit 1
				

			 	
				
				  821
				

			 
	
				
				  Beaver Valley Unit 2
				

			 	
				
				  831
				

			 
	
				
				  Davis Besse
				

			 	
				
				  883
				

			 
	
				
				  Perry
				

			 	
				
				  1260 
				

			 
	
				
				  Total
				

			 	
				
				  3,795EXHIBIT 10-34
	 

	 
		FirstEnergy Solutions Corp.
	 

	 
		FERC Electric Tariff, First Revised Volume
		No.1
	 

	 
		Revised Service Agreement No.4
	 

	 
		REVISED POWER SUPPLY AGREEMENT

	 

	 
		Between FirstEnergy Solutions Corp.,
		Seller
	 

	 
		And the FirstEnergy Operating Companies,
		Buyer
	 

	 
		This Revised Power Supply Agreement
		(“Agreement”) dated
		December 8, 2006, is made by and between FirstEnergy Solutions
		Corp. (“SOLUTIONS” or “Seller”), and the
		following FirstEnergy Operating Companies: The Cleveland Electric Illuminating
		Company, Ohio Edison Company, and The Toledo Edison Company (collectively
		referred to as “FEOCs” or “Buyer”). SOLUTIONS and FEOCs may
		be identified collectively as “Parties” or individually as a
		“Party.” This Agreement is entered into in connection with Ohio
		electric restructuring and the Ohio rate plan approved by the Public Utilities
		Commission of Ohio (“PUCO”) in Case No. 03-2144-EL-ATA, et al., as
		modified in Case No. 05-704-EL-ATA, et al.,(hereinafter, “Ohio Rate
		Stabilization Plan”). This Agreement complies with the terms and
		conditions as set forth in the Certified Uncontested Settlement Agreement
		approved by FERC via letter order on December 8, 2006 in FirstEnergy Solutions
		Corp., Docket No. ER06-117-000.
	 

	 
		WHEREAS, Seller has purchased: all of the electric output of
		nuclear generating units of its subsidiary, FirstEnergy Nuclear Generation
		Corp. (including the electric output of nuclear generating units owned by
		others that is purchased by FirstEnergy Nuclear Generation Corp.); all of the
		electric output of fossil and pumped storage generating facilities owned,
		operated, leased or controlled by its subsidiary, FirstEnergy Generation Corp.;
		and power from unaffiliated companies (collectively referred to as
		“Generating Resources”); and
	 

	 
		WHEREAS, This Agreement is the full and final expression of the
		intent of the Parties with respect to the subject matter herein; this Agreement
		supersedes the prior Power Supply Agreement between the Parties hereto entered
		into on October 31, 2005; and
	 

	 
		WHEREAS, Seller is engaged, inter alia, in
		the business of generating, purchasing, and selling Power at wholesale and
		retail; and
	 

	 
		WHEREAS, Buyer is responsible for obtaining and delivering
		sufficient Capacity and Energy, necessary to meet its Provider of Last Resort
		obligations under Ohio law, as well as other power supply obligations incurred
		by law, contract or tariff;
	 

	 
		WHEREAS, Buyer desires to obtain from Seller sufficient Power
		to satisfy its Power Supply Requirements to Ohio customers under the rates,
		terms and conditions set forth herein;
	 

	 
		It is agreed as follows:
	 

	 
		 
	 

	 
		 
	 

	 
			
				
				  Issued by: Guy Pipitone,
				  President
				

			 	
				
				  Effective Date:
				

			 
	
				
				  Issued: December 8,
				  2006
				

			 	
				
				  January 1, 2006
				

			 

 

	 
		 
	 

	 
		 
	 

	 
		 
	 

	 
			
				
				  I.
				

			 	
				
				  TERM
				

			 

 

	 
			
				
				   
				

			 	
				
				  A.
				

			 	
				
				  The sale and purchase of Power
				  pursuant to this Agreement shall begin on January 1, 2006, and unless
				  terminated as provided below, shall remain in effect through December 31,
				  2008.
				

			 

 

	 
			
				
				   
				

			 	
				
				  B.
				

			 	
				
				  This Agreement may be terminated at
				  the sole option of Seller with sixty days notice to become effective upon: 1)
				  the implementation of a winning bid for Provider of Last Resort service
				  resulting from the auction process established pursuant to the Ohio Rate
				  Stabilization Plan approved in PUCO Case No. 03-2144-EL-ATA, et al, and any
				  subsequent modifications or proceedings related thereto (“Ohio
				  Auction”); or 2) termination of the Ohio Rate Stabilization Plan. Such
				  termination relieves Seller of any obligation to supply Power under this
				  Agreement.
				

			 

 

	 
			
				
				   
				

			 	
				
				  C.
				

			 	
				
				  In the event the FERC makes material
				  changes in the price, terms or conditions of the sale under this Agreement that
				  adversely impact the Seller or Buyer, the Party adversely affected may
				  terminate this Agreement upon sixty days notice to the other Party.
				

			 

 

	 
			
				
				   
				

			 	
				
				  D.
				

			 	
				
				  This Agreement may be terminated at
				  any time by mutual agreement of the Parties.
				

			 

 

	 
			
				
				  II.
				

			 	
				
				  SALE AND PURCHASE OF CAPACITY AND
				  ENERGY
				

			 

 

	 
			
				
				   
				

			 	
				
				  A.
				

			 	
				
				  Seller shall make available to Buyer
				  Capacity and Energy sufficient to satisfy Buyer’s Power Supply
				  Requirements. Seller shall make such firm Capacity and Energy available at the
				  Delivery Points. Capacity and Energy supplied shall be sixty-hertz, three phase
				  alternating current. The Power Supply Requirements will be provided in
				  accordance with Good Utility Practice, and where applicable, the provisions of
				  the OATT of the Transmission Provider or any superseding tariff. The Capacity
				  and Energy provided by Seller will comply with all requirements for Network
				  Resources under the Transmission Provider’s OATT and Buyer’s Network
				  Transmission Agreements with Transmission Provider.
				

			 

 

	 
			
				
				   
				

			 	
				
				  B.
				

			 	
				
				  Except as provided in Section I,
				  Buyer will purchase its full Power Supply Requirements from Seller during the
				  term of this Agreement. Buyer will pay for the Power Supply Requirements in
				  accordance with Section IV of this Agreement. Buyer is responsible for all
				  Network Transmission Service, Ancillary Services, congestion charges, marginal
				  transmission losses, and such other services and administrative charges as are
				  required and imposed by the Transmission Provider OATT on the Buyer as a Load
				  Serving Entity for the delivery of Capacity and Energy at and from the Delivery
				  Points under this Agreement.
				

			 

 

	 
			
				
				   
				

			 	
				
				  C.
				

			 	
				
				  Seller may purchase Power from third
				  parties in the Spot Market as necessary to satisfy its obligations under this
				  Agreement. Buyer will pay for only the portion of this Power specified in
				  Section IV of this Agreement.
				

			 

 

	 
			
				
				   
				

			 	
				
				  D.
				

			 	
				
				  If Seller’s credit is adversely
				  impacted during the term of this Agreement, Buyer agrees to allow Seller to
				  acquire purchased Power as agent for the Buyer as
				

			 

 

	 
		 
	 

	 
		 
	 

	 
		reasonably necessary to minimize supply
		costs under this Agreement. Buyer will pay all of the costs associated with
		acquiring this Power, but Seller will not charge Buyer any broker fee for
		performing this service.
	 

	 
			
				
				  III.
				

			 	
				
				  SCHEDULING AND SYSTEM
				  PLANNING
				

			 

 

	 
			
				
				   
				

			 	
				
				  A.
				

			 	
				
				  On or before November 1, 2005
				  and on November 1 of each subsequent year during the term of this Agreement,
				  Buyer will inform Seller of its initial annual Capacity and Energy forecast for
				  the next calendar year. Such initial annual forecast shall include Buyer’s
				  Power Supply Requirements for the year, by month. Based on Buyer’s initial
				  annual forecast, as well as other information that may be communicated between
				  Buyer and Seller as necessary and appropriate for system planning, Seller shall
				  procure the necessary Generation Resources and develop forecasts of
				  Buyer’s Power Supply Requirements on a weekly, daily and hourly basis, and
				  shall periodically update such forecasts to reflect current
				  circumstances.
				

			 

 

	 
			
				
				   
				

			 	
				
				  B.
				

			 	
				
				  Buyer shall update its annual
				  forecast of Capacity and Energy for any change or expected change in its Power
				  Supply Requirements that would materially affect the annual forecast provided
				  to Seller. Buyer shall provide the updated forecast to Seller for any full
				  month(s) remaining in the calendar year within thirty days of becoming aware of
				  the change or expected change in its Power Supply Requirements.
				

			 

 

	 
			
				
				   
				

			 	
				
				  C.
				

			 	
				
				  Buyer is responsible for scheduling
				  delivery of its Power Supply Requirements with Transmission Provider in
				  accordance with the OATT. Buyer will simultaneously furnish its schedule to
				  Seller and Transmission Provider. Seller will supply Capacity and Energy to
				  Buyer in accordance with the schedule provided to Transmission Provider. Buyer
				  and Seller acknowledge that Buyer’s Power Supply Requirements may vary
				  from the schedule provided to Transmission Provider. Buyer agrees that it is
				  responsible for payment of any Transmission Provider charges incurred when
				  actual Power Supply Requirements differ from the schedule provided. Seller
				  shall be responsible for payment of any Transmission Provider charges incurred
				  by its failure to deliver the scheduled amount of Capacity and Energy.
				

			 

 

	 
			
				
				   
				

			 	
				
				  D.
				

			 	
				
				  Seller agrees to operate its
				  Generating Resources in accordance with Good Utility Practice, including, but
				  not limited to the efficient and economic dispatch of the Generating Resources.
				  Seller will schedule sufficient Generating Resources and economic purchased
				  power to supply Buyer’s Power Supply Requirements in accordance with
				  Buyer’s delivery schedule and the Transmission Provider OATT.
				

			 

 

	 
			
				
				   
				

			 	
				
				  E.
				

			 	
				
				  Load Management. To minimize supply
				  risk to the Seller hereunder, Buyer agrees to enforce its applicable Retail
				  Tariffs, Special Contracts, and federal tariffs and wholesale contracts,
				  including, but not limited to, those tariffs or contracts that provide for
				  curtailment or interruption of electric service, real time pricing, or other
				  load management devices (hereinafter “Interruptible Load”). At
				  Buyer’s request, Seller will provide estimates of the Spot Market price of
				  Energy in sufficient detail for Buyer to implement and administer its tariffs
				  and contracts with retail customers. Any such data furnished to Buyer shall be
				  treated as Confidential Information.
				

			 

 

	 
		 
	 

	 
		 
	 

	 
		 
	 

	 
			
				
				   
				

			 	
				
				  F.
				

			 	
				
				  Buyer and Seller agree to cooperate
				  in fulfilling their respective obligations to the Transmission Provider, NERC,
				  regional reliability council, Electric Reliability Organization, Regional
				  Entity or Government Authority related to service provided under this
				  Agreement
				

			 

 

	 
			
				
				  IV.
				

			 	
				
				  PRICE
				

			 

 

	 
		Seller shall charge, and Buyer shall pay,
		for Buyer’s Power Supply Requirements the sum of the following charges.
		The method for calculating this amount is set forth in Exhibit B.
	 

	 
			
				
				   
				

			 	
				
				  A.
				

			 	
				
				  Capacity and Energy Charges for
				  Customers Served Under Buyer’s Retail Tariffs
				

			 

 

	 
		Buyer shall pay Seller an amount up to, but
		not exceeding, the amount that Buyer bills its retail customers taking Capacity
		and Energy from Buyer as the generation charge, Rate Stabilization Charge, and
		Fuel Recovery Mechanism under the Buyer’s Retail Tariffs as approved by
		the Public Utilities Commission of Ohio (the “PUCO”), plus
		Seller’s actual incremental fuel costs applicable to such sales. As soon
		as practicable after the end of the month, Buyer shall provide Seller load
		data, metered sales, and such other data pertaining to retail customers in
		sufficient detail for Seller to determine after the fact, the amount due Seller
		for Buyer’s Power Supply Requirements and delivered to the applicable
		retail customer classes during a billing period. Buyer and Seller will endeavor
		to abide by all applicable Code of Conduct provisions in exchanging this data,
		and such data will be considered Confidential Information under Section VII.C
		of this Agreement.
	 

	 
		Amounts paid by Buyer and billed by Seller
		for Capacity and Energy purchased during each year of this Agreement in order
		to meet Buyer’s obligations to supply power to retail electric service
		customers under Ohio Retail Tariffs shall not exceed the following amounts (in
		$/Mwh), as calculated in Exhibit B:
	 

	 
		 
	 

	 
			
				
				  2006
				

			 	
				
				   
				

			 	
				
				  2007
				

			 	
				
				   
				

			 	
				
				  2008
				

			 
	
				
				  $50.50
				

			 	
				
				   
				

			 	
				
				  $52.50
				

			 	
				
				   
				

			 	
				
				  $53.62
				

			 

 

	 
			
				
				   
				

			 	
				
				  B.
				

			 	
				
				  Capacity and Energy Charges for
				  Customers Served under Buyer’s Special Contracts
				

			 

 

	 
		Buyer shall pay Seller an amount up to, but
		not exceeding, the amount that Buyer bills its customers taking Capacity and
		Energy from Buyer as the generation charge, Rate Stabilization Charge, and Fuel
		Recovery Mechanism under the Buyer’s Special Contracts as approved by the
		Public Utilities Commission of Ohio (the “PUCO”), plus Seller’s
		actual incremental fuel costs applicable to such sales per MWH for all energy
		used by retail customers taking Capacity and Energy from Buyer under the
		Buyer’s Special Contracts. As soon as practicable after the end of the
		month, Buyer shall provide Seller load data, metered sales, and such other data
		pertaining to retail customers in sufficient detail for Seller to determine
		after the fact, the amount due Seller for Buyer’s Power Supply
		Requirements and delivered to the retail customers served under Special
		Contracts during a billing period. Buyer and Seller will 
	 

	 
		 
	 

	 
		 
	 

	 
		endeavor to abide by all applicable Code of
		Conduct provisions in exchanging this data, and such data will be considered
		Confidential Information under Section VII.C of this Agreement.
	 

	 
		Amounts paid by Buyer and billed by Seller
		for Capacity and Energy purchased during each year of this Agreement in order
		to meet Buyer’s obligations to supply power to retail electric service
		customers under Ohio Special Contracts shall not exceed the following amounts
		(in $/Mwh), as calculated in Exhibit B:
	 

	 
		 
	 

	 
			
				
				  2006
				

			 	
				
				   
				

			 	
				
				  2007
				

			 	
				
				   
				

			 	
				
				  2008
				

			 
	
				
				  $37.50
				

			 	
				
				   
				

			 	
				
				  $37.50
				

			 	
				
				   
				

			 	
				
				  $37.50
				

			 

 

	 
			
				
				   
				

			 	
				
				  C.
				

			 	
				
				  Capacity and Energy Charges for
				  Buyer’s Wholesale Contracts
				

			 

 

	 
		During the term of this Agreement, Seller
		will supply sufficient Capacity and Energy to fulfill Power supply obligations
		under Buyer’s wholesale contracts in effect on January 1, 2006
		(hereinafter “Wholesale Contracts”). Buyer is responsible for
		scheduling and delivery of Power under such Wholesale Contracts, as well as
		payment of any charges imposed by the Transmission Provider for delivery of
		Power under the Wholesale Contracts. Buyer shall pay Seller an amount up to,
		but not exceeding, the amount of $35 per MWH for all energy used by wholesale
		customers taking Capacity and Energy from Buyer under the Buyer’s
		Wholesale Contracts. As soon as practicable after the end of the month, Buyer
		shall provide Seller load data, metered sales, and such other data pertaining
		to wholesale customers in sufficient detail for Seller to determine after the
		fact, the amount due Seller for Buyer’s Power Supply Requirements and
		delivered to the wholesale customers served under Wholesale Contracts during a
		billing period. Buyer and Seller will endeavor to abide by all applicable Code
		of Conduct provisions in exchanging this data, and such data will be considered
		Confidential Information under Section VII.C of this Agreement.
	 

	 
			
				
				   
				

			 	
				
				  D.
				

			 	
				
				  Capacity and Energy Charges for
				  Certain Spot Market Purchases by Seller
				

			 

 

	 
		Buyer will pay a monthly charge equal to the
		Spot Market cost of Energy purchased by Seller to serve retail Interruptible
		Loads of the Buyer that are not curtailed in response to a request for
		interruption by the Buyer during the previous calendar month. The Energy billed
		at this rate is not subject to the rates in IV.A, IV.B or IV.C above. Buyer
		will provide the Seller documentation of the requested interruption and
		customer response thereto in such detail as is reasonably necessary for Seller
		to compute the monthly charge. The documentation provided by Buyer will be
		considered Confidential Information under Section VII.C of this Agreement. The
		total cost of Spot Market Energy payable by Buyer shall be included in the
		monthly bill in accordance with Exhibit B.
	 

	 
		 
	 

	 
		 
	 

	 
			
				
				   
				

			 	
				
				  E.
				

			 	
				
				  Billing and Payment
				

			 

 

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

	 
		F. Records
	 

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

	 
		G. Audit and Adjustment Rights
	 

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

	 
		H. Section 205 Rights
	 

	 
		The rates for service specified herein shall
		remain in effect for the Term of this Agreement, and shall not be subject to
		change through application to the FERC pursuant to the provisions of
		Section 205 of the Federal Power Act absent the written agreement of all
		Parties hereto.
	 

	 
			
				
				  V.
				

			 	
				
				  METERING
				

			 

 

	 
		Generation metering shall be installed,
		operated and maintained in accordance with the applicable interconnection
		agreements between the Generator, Transmission Owner and the Transmission
		Provider. Metering between balancing areas shall be handled in accordance with
		the practices established by the Transmission Provider. Retail metering 

	 

	 
		 
	 

	 
		 
	 

	 
		shall be provided in accordance with
		applicable state law. Nothing in this Agreement requires Seller or Buyer to
		install new metering facilities.
	 

	 
			
				
				  VI.
				

			 	
				
				  NOTICES
				

			 

 

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

	 
		NOTICES & CORRESPONDENCE:
	 

	 
		 
	 

	 
			
				
				  To Seller:
				

			 	
				
				   
				

			 	
				
				  FirstEnergy Solutions
				  Corp.
 Director, Commodity
				  Supply
 395 Ghent Road

				  Akron, Ohio 44333
				

			 	
				
				   
				

			 	
				
				  To Buyer:
				

			 	
				
				   
				

			 	
				
				  FirstEnergy Service
				  Company
 Director, Regulated
				  Commodity
 76 South Main
				  Street
 Akron, Ohio 44308
				

			 

 

	 
		INVOICES & PAYMENTS:
	 

	 
		 
	 

	 
			
				
				  To Seller:
				

			 	
				
				   
				

			 	
				
				  FirstEnergy Solutions Corp.
				  
 Director, Commodity Supply 

				  395 Ghent Road 

				  Akron, Ohio 44333
				

			 	
				
				   
				

			 	
				
				  To Buyer:
				

			 	
				
				   
				

			 	
				
				  FirstEnergy Service Company
				  
 Director, Regulated Commodity
				  
 76 South Main Street 

				  Akron, Ohio 44308
				

			 

 

	 
		SCHEDULING:
	 

	 
		 
	 

	 
			
				
				  To Seller:
				

			 	
				
				   
				

			 	
				
				  FirstEnergy Solutions
				  Corp.
 Director, Commodity
				  Supply
 395 Ghent Road

				  Akron, Ohio 44333
				

			 	
				
				   
				

			 	
				
				  To Buyer:
				

			 	
				
				   
				

			 	
				
				  FirstEnergy Service
				  Company
 Director, Regulated
				  Commodity
 76 South Main
				  Street
 Akron, Ohio 44308
				

			 

 

	 
			
				
				  VII.
				

			 	
				
				  MISCELLANEOUS
				

			 

 

	 
		A. Performance Excused
	 

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

	 
		 
	 

	 
		 
	 

	 
		Points other than those Delivery Points
		designated under this Agreement, or relieves Buyer of its obligation to make
		payment under Section IV of this Agreement.
	 

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

	 
		B. Transfer of Title and Indemnification
	 

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

	 
		C. Confidentiality
	 

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

	 
		D. Further Assurances
	 

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

	 
		E. Defined Terms
	 

	 
		Terms not specifically defined in this
		Agreement shall have the meaning given in the applicable Transmission Provider
		OATT.
	 

	 
		 
	 

	 
		 
	 

	 
		F. Assignment
	 

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

	 
		G. Governing Law
	 

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

	 
		H. Counterparts
	 

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

	 
		I. Waiver
	 

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

	 
		J. No
		Third Party Beneficiaries
	 

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

	 
		K. Construction
	 

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

	 
		 
	 

	 
		 
	 

	 
		IN WITNESS WHEREOF, the Parties have
		caused their duly authorized representatives to execute this Revised Power
		Supply Agreement on their behalf as of December 8, 2006.
	 

	 
		 
	 

	 
			
				
				  FirstEnergy Solutions Corp.
				

			 	
				
				   
				

			 	
				
				  The Cleveland Electric
				  Illuminating
 Company Ohio Edison
				  Company
 The Toledo Edison
				  Company
				

			 
	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 
	
				
				  
 By: 
				

			 	
				
				  /s/ Guy Pipitone
				

			 	
				
				   
				

			 	
				
				  By: 
				

			 	
				
				  
 /s/ James M. Murray
				

			 
	
				
				  President

				  FirstEnergy Solutions Corp.
				

			 	
				
				   
				

			 	
				
				  President, Ohio Operations
				

			 
					

 

	 
		 
	 

	 
		 
	 

	 
		Exhibit A
	 

	 
		DEFINITIONS
	 

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

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

	 
		Ancillary Services means all services as defined in the Transmission
		Provider OATT that Buyer must obtain to deliver Capacity and Energy under this
		Agreement.
	 

	 
		Buyer’s Network Transmission
		Agreements means the service agreements
		for Network Integration Transmission Service and the Network Operating
		Agreement among the Transmission Provider, The Cleveland Electric Illuminating
		Company, Ohio Edison Company, Pennsylvania Power, and The Toledo Edison
		Company
	 

	 
		Buyer’s Power Supply
		Requirements means Capacity and Energy,
		necessary to meet its Provider of Last Resort obligations under Ohio law, as
		well as other power supply obligations incurred by law, contract or tariff.
		Buyer’s Power Supply Requirements do not include deviations in the amount
		of energy scheduled and consumed under this Agreement, including, but not
		limited to, energy imbalance, transmission losses, and congestion as defined in
		the Transmission Provider OATT.
	 

	 
		Buyer’s Retail
		Tariffs mean all retail tariffs of The
		Cleveland Electric Illuminating Company, Ohio Edison Company, and The Toledo
		Edison Company as approved by the PUCO.
	 

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

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

	 
		Code of Conduct means statutes, rules, regulations, or orders issued by
		a Government Authority that prohibit, restrict, or condition the exchange of
		information between the regulated and competitive business operations of
		Affiliates.
	 

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

	 
		Delivery Point means where Capacity and Energy are supplied from
		generating facilities owned or controlled by the Seller within the FirstEnergy
		Balancing Area at the point of 
	 

	 
		 
	 

	 
		 
	 

	 
		interconnection between the generating
		facility and the transmission facilities of the Transmission Owner. Delivery
		Point means, where Capacity and Energy are supplied from generating resources
		outside of the FirstEnergy Balancing Area, the interface between the
		transmission facilities of the adjacent balancing area and the transmission
		facilities of the Transmission Owner.
	 

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

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

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

	 
		FirstEnergy Balancing
		Area means the collection of
		generation, transmission, and loads within the metered boundaries of the
		FirstEnergy system where FirstEnergy maintains load resource balance.
	 

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

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

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

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

	 
		NERC means The North American Electric Reliability Council
		or any superceding organization with responsibility for establishing
		reliability standards for the bulk power system.
	 

	 
		Power means Capacity and/or Energy.
	 

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

	 
		 
	 

	 
		 
	 

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

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

	 
		Special Contracts mean contracts between the Buyer and Ohio retail
		customers for the sales of Power and other related services at prices that
		differ from the Buyer’s Retail Tariffs.
	 

	 
		Spot Market means the Day Ahead or Real Time Energy Markets
		administered by the Regional Transmission Organization or any other
		over-the-counter Energy market in which the transaction date of the Energy
		purchase is within thirty calendar days of the last day of the delivery period
		specified for the purchase.
	 

	 
		Transmission Owner means the entity that owns facilities used for the
		transmission of Power from the Seller’s Generating Facilities.
	 

	 
		Transmission Provider means the Midwest Independent System Transmission
		Operator, Inc., or other utility, including Regional Transmission
		Organizations, transmitting Power on behalf of Buyer to or from the Delivery
		Point(s) under this Agreement.
	 

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

	 
		 
	 

	 
		 
	 

	 
		Exhibit B
	 

	 
		TOTAL BILL CALCULATION
	 

	 
		Total monthly bill will not exceed Σ(A
		+ C) + WCR + (IBT * PP) 
	 

	 
			
				
				   
				

			 	
				
				  where:
				

			 	
				
				  A = Σ (ga,n + RSCa,n + FRMa,n +IFCa,n)
				

				
				   
				

				
				  C = Σ (gc,n + RSCc,n + FRMc,n +IFCc,n)
				

			 

 

	 
		subject to annual rate caps:
	 

	 
		For component A annual maximum average rate
		= MIN(Capa,
		(ΣAt /
		MWha))
	 

	 
		For calendar year 2006 Capa = $50.50
	 

	 
		For calendar year 2007 Capa = $52.50
	 

	 
		For calendar year 2008 Capa = $53.62
	 

	 
		For component C annual maximum average rate
		= MIN($37.50, (ΣCt / MWhc)
	 

	 
		For component WCR annual maximum average
		rate = MIN($35.00, (ΣWCRt / MWhw))
	 

	 
		where:
	 

	 
		subscript n denotes Ohio Edison, Cleveland
		Electric, Toledo Edison 
	 

	 
		subscript t denotes months in year
	 

	 
		 
	 

	 
			 	
				
				  ga =
				

			 	
				
				  the generation charge, expressed in
				  total dollars, billed to Buyer’s customers which receive generation
				  service under retail tariffs
				

			 
	 	
				
				  gc =
				

			 	
				
				  the generation charge, expressed in
				  total dollars, billed to Buyer’s customers which receive generation
				  service under special retail contracts
				

			 
	 	
				
				  RSCa=
				

			 	
				
				  the Rate Stabilization Charge,
				  expressed in total dollars, billed to Buyer’s customers which receive
				  generation service under retail tariffs
				

			 
	 	
				
				  RSCc=
				

			 	
				
				  the Rate Stabilization Charge,
				  expressed in total dollars, billed to Buyer’s customers which receive
				  generation service under special retail contracts
				

			 
	 	
				
				  FRMa=
				

			 	
				
				  the Fuel Recovery Mechanism charge,
				  expressed in total dollars, billed to Buyer’s customers which receive
				  generation service under retail tariffs
				

			 
	 	
				
				  FRMc=
				

			 	
				
				  the Fuel Recovery Mechanism charge,
				  expressed in total dollars, billed to Buyer’s customers which receive
				  generation service under special retail contracts
				

			 
	 	
				
				  IFCa = 
				

			 	
				
				  the Incremental Fuel Cost, expressed
				  in total dollars, associated with the provision of generation service by Buyer
				  to retail customers which receive generation service under retail tariffs from
				  Buyer
				

			 

 

	 
		 
	 

	 
		 
	 

	 
		 
	 

	 
			 	
				
				  IFCc=
				

			 	
				
				  the Incremental Fuel Cost, expressed
				  in total dollars, associated with the provision of generation service by Buyer
				  to retail customers which receive generation service under special retail
				  contracts
				

			 
	 	
				
				  WCR=
				

			 	
				
				  Wholesale Contract Revenues for
				  Power Supply
				

			 
	 	
				
				  IBT =
				

			 	
				
				  the MWhs provided by Buyer to their
				  interruptible customers who do not reduce load in response to a request for an
				  interruption, for the period of the interruption
				

			 
	 	
				
				  PP =
				

			 	
				
				  Average price of Spot Market
				  purchases made by Seller which are delivered to the FirstEnergy Balancing Area
				  and which are made to supply Buyer’s interruptible customers who do not
				  reduce load in response to a request for an interruption, for the period of the
				  interruption
				

			 
	 	
				
				  MWha=
				

			 	
				
				  The annual volume of MWh, at the
				  power supply level, provided by Seller for resale by Buyer to retail customers
				  which receive generation service under retail tariffs
				

			 
	 	
				
				  MWhc=
				

			 	
				
				  The annual volume of MWh, at the
				  power supply level, provided by Seller for resale by Buyer to retail customers
				  which receive generation service under special retail contracts
				

			 
	 	
				
				  MWhw=
				

			 	
				
				  The annual volume of MWh, at the
				  power supply level, provided by Seller for resale by Buyer to wholesale
				  customers

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