CHOPTANK ELECTRIC COOPERATIVE, INC. P.S.C. Md. No. 3 Fifth Revised Page No. 59 COGENERATION AND SMALL POWER PRODUCTION RATE SCHEDULE X

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Fifth Revised Page No. 59 908 COGENERATION AND SMALL POWER PRODUCTION RATE SCHEDULE X A. AVAILABILITY Available to members of the Cooperative for purchases of electricity by the Cooperative from qualified Co-generators or qualified Small Power Producers ( Producer ). Qualification standards are established by the Federal Energy Regulatory Commission. B. GENERATING CAPACITY The generating capacity of the Co-generator or Small Power Producer is limited to amounts up to 1,000 KW, subject to interconnection terms and conditions to be negotiated with the Cooperative on a case by case basis. C. DELIVERY VOLTAGE As specified by the Cooperative. D. MONTHLY RATE 1. Consumer Charge (Paid by Producer) either $100.00 per month for non-standard metering processing or $25.00 per month for standard metering processing for the purpose of monitoring both capacity and energy purchases. 2. Power Payment Rate (Paid by the Cooperative). The Producer will be paid Choptank Electric Cooperative s avoided cost of power from Old Dominion Electric Cooperative. -59-

Fourth Revised Page No. 60 CO-GENERATION AND SMALL POWER PRODUCTION CONTINUED E. Payment Determinants 1. Consumer Charge: If the Co-generator or Small Power Producer elects to receive capacity payments for its generating facility, hourly kw recordings must be available. A Consumer Charge of either $100.00 or $25.00 per month has been established to compensate the Cooperative for collecting and processing nonstandard or standard, respectively, recorded data, provided that the Co-generator or Small Power Producer has agreed to reimburse fully the Cooperative for all expenses it incurs to install, operate and maintain metering equipment necessary to measure the quantity of capacity provided by the Co-generator or Small Power Producer and evaluate such capacity's impact on its wholesale power cost. The standard charge will apply to those Producers that install telecommunications which enable the cooperative to remotely download the metering data. on or after December 1, 2010-60-

Fifth Revised Page No. 61 908 CO-GENERATION AND SMALL POWER PRODUCTION - CONTINUED 2. APPLICABILITY OF HIGH TENSION DISTRIBUTION OR TRANSMISSION RATES The determination of high tension distribution vs. transmission for energy and capacity payments will be based upon the source voltage level of the substation which normally serves the Co-generator or Small Power Producer. The substation is classified transmission level if power is served at 69,000 volts or higher by the wholesale power supplier. If the voltage is 25,000 volts or greater, but less than 69,000 volts, then the substation is classified high tension distribution. -61-

Fifth Revised Page No. 62 908 CO-GENERATION AND SMALL POWER PRODUCTION - CONTINUED This page reserved for future use. -62-

First Revised Page No. 63 CO-GENERATION AND SMALL POWER PRODUCTION-Continued SPECIAL PROVISIONS (1) The availability of this schedule is restricted to Co-generation and Small Power Production facilities which meet the qualification standards established by the Federal Energy Regulatory Commission. (2) The monthly rates stated herein are subject to change as the Cooperative s wholesale power supplier s FERC tariff costs change (3) The Cooperative will read the meter at approximately 30-day intervals. (4) Interconnection with the Cooperative s system requires the installation of protective equipment which, in the Cooperative s judgment, provides safety for personnel, affords adequate protection against damage to the Cooperative s system or to its member s property, and prevents any interference with the Cooperative s supply of service to others. The Cooperative is not liable for any loss, cost, damage or expense to any party resulting from the use of or presence of electric current or potential which originates from a Co-generator or Small Power Producer s generation facilities, and may require -63-

First Revised Page No. 64 CO-GENERATION AND SMALL POWER PRODUCTION-Continued the Co-generator or Small Power Producer to purchase and maintain adequate insurance protection to save the Cooperative harmless for any damage, loss or injury resulting from connection of the Co-generator or Small Power Producer s generating facility to the Cooperative s electric system. Such protective equipment shall be installed, owned and maintained by the Co-generator or Small Power Producer at his expense. In addition, it may be necessary for the Cooperative to extend or modify portions of its system to accommodate the purchase of electricity. Should such extension or modification be necessary, all work shall be performed by the Cooperative and paid for by the Cogenerator or Small Power Producer. (5) The Cooperative will install, own, and maintain at the Co-generator or Small Power Producer s expense all metering equipment needed to measure power delivered to the Cooperative. The installation will include a recording demand device to measure capacity if the Co-generator or Small Power Producer elects to sell capacity. (6) Parallel operation must cease immediately and automatically during system outages and other emergency or abnormal conditions specified by the Cooperative. The Cogenerator or Small Power Producer must cease parallel operation upon notification by the Cooperative if such operation is determined to be unsafe, interferes with the -64-

First Revised Page No. 65 CO-GENERATION AND SMALL POWER PRODUCTION-Continued supply of service to others, or interferes with system maintenance or operation. The Cooperative accepts no responsibility whatsoever for damage or injury to any person or property or any monetary loss incurred by the Producer caused by failure of the Cogenerator or Small Power Producer to operate in compliance with Cooperative requirements. (7) Because of the unique characteristics of the generating facilities, the location of the facility, and the Cooperative s system characteristics in that area, a Power Purchase and Operating Agreement must be negotiated between the Cooperative and the Cogenerator or Small Power Producer. (8) Failure of the Co-generator or Small Power Producer to comply with any of these requirements shall result in disconnection from the Cooperative s system, and the Cooperative will be under no obligation to make subsequent purchases there from. (9) The Cooperative will provide supplementary power to Co-generators or Small Power Producers upon request at the standard applicable rate schedule. (10) This Schedule is subject to the applicable Terms and Conditions of the Cooperative s Electric Service Tariff. on or after December 1, 2010-65-