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PACIFIC GAS AND ELECTRIC COMPANY <br /> GENERATING FACILITY INTERCONNECTION AGREEMENT <br /> (3� PARTY NON-EXPORTING) <br /> APPENDIX C <br /> (When applicab/e) <br /> PRODUCER'S WARRANTY THAT THE GENERATING FACILITY IS A"COGENERATION <br /> FACILITY" PURSUANT TO SECTION 218.5 OF THE CALIFORNIA PUBLIC UTILITIES CODE <br /> For the purpose of securing the Competition Transition Charge exemption available under Section <br /> 372 of the California Public Utilities Code(PU Code), Producer hereby declares that the Generating <br /> Facility meets the requirements for Cogeneration as such term is used in Section 218.5 of the <br /> PU Code (Cogeneration Requirements). <br /> Producer warrants that, beginning on the date of Initial Operation and continuing throughout the term <br /> of this Agreement,the Generating Facility shall continue to meet the Cogeneration Requirements. If <br /> Producer becomes aware that its Generating Facility has ceased to meet the Cogeneration <br /> Requirements, Producer shall promptly provide PG&E with Notice of such change pursuant to Section <br /> 9.1 of the Agreement. If at any time during the term of this Agreement PG&E determines in its sole <br /> discretion that Producer's Generating Facility may no longer meet the Cogeneration Requirements, <br /> PG&E may require Producer to provide evidence that the Generating Facility continues to meet the <br /> Cogeneration Requirements within 15 business days of PG&E's request for such evidence. <br /> Additionally, PG&E may periodically(typically, once per year) inspect Producer's Generating Facility <br /> and/or require documentation from Producer to monitor the Generating Facility's compliance with the <br /> Cogeneration Requirements. If PG&E determines in its sole judgment that Producer either failed to <br /> provide evidence in a timely manner or that it provided insufficient evidence that its Generating Faciliry <br /> continues to meet the Cogeneration Requirements,then the Cogeneration status of the Generating <br /> Facility shall be deemed ineffective until such time as Producer again demonstrates to PG&E's <br /> reasonable satisfaction that the Generating Facility meets the requirements for a Cogeneration facility <br /> (the Cogeneration Status Change). <br /> PG&E shall revise its records and the administration of this Agreement to reflect the Cogeneration <br /> Status Change and provide Notice to Producer of the Cogeneration Status Change pursuant to <br /> Section 9.1 of this Agreement. Such Notice shall specify the effective date of the Cogeneration Status <br /> Change. This date shall be the first day of the calendar year for which PG&E determines in its sole <br /> discretion that the Generating Facility first ceased to meet the Cogeneration Requirements. PG&E <br /> shall invoice the Producer's electric Service Account through which the Generating Facility is <br /> Interconnected with PG&E's Distribution System for Competition Transition Charges(CTCs)that were <br /> not previously billed during the period between the effective date of the Status Change and the date of <br /> the Notice in reliance upon Producer's representations that the Generating Facility complied with the <br /> Cogeneration Requirements and therefore was eligible for the exemption from CTCs available under <br /> Section 372 of the PU Code. <br /> Any amounts to be paid or refunded by Producer, as may be invoiced by PG&E pursuant to the terms <br /> of this warranty, shall be paid to PG&E within 30 days of Producer's receipt of such invoice. <br /> Form 79-988 <br /> Automated Document,Preliminary Statement Part A Advice 4110-E <br /> Revised September 2012 <br /> Page 13 of 15 <br />