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Attachment 4 – MCE Virtual Power Plant Agreement.pdf

Richmond City Council
March 17, 2026

Document
Attachment 4 – MCE Virtual Power Plant Agreement.pdf
Meeting
March 17, 2026
Body
Richmond City Council
Pages
7
Original file
272 KB
Text extracted from the city's file for reading and search. Open the original on pub-richmond.escribemeetings.com. That file is the official record.
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MCE Internal Use Only: Group 1 ☐ Group 2 ☐ Group 3 ☐
Marin Clean Energy (MCE) Virtual Power Plant Agreement (VPPA) Cover Page A. Participant Information
Participant Name Contact Name (if Participant is an entity) Title (if applicable) Phone e-mail
B. Project Developer (MCE Authorized Designee)
Company Name Contact Name Phone & e-mail
C. Project Installer (Subcontractor to Project Developer and is an MCE Authorized Designee, if applicable) Company Name
Contact Name Phone e-mail
D. Project Site Information
Site Address City State Zip
Last 4 digits for each of the PG&E Service Account ID (SAID) Number(s) for the building (s) where equipment will be installed. ___ ___ ___ ___ // ___ ___ ___ ___ // ___ ___ ___ ___ Eligible electric Rate Schedule per Virtual Power Plant Tariff (as of date of agreement): _____________ Attachments: ☐ Proof of change to a rate schedule eligible for the Virtual Power Plant Tariff (if applicable) E. MCE Battery Energy Storage System (BESS) Gap Funding $
Total Cost of BESS BESS Installer:
$
MCE BESS Rebate Amount Payee*:

F. Richmond Advanced Energy Community Grant Funding Allocation $
Total Grant Funding Allocated Payee*:

G. Monthly Bill Credit for Distributed Energy Resource (DER) Management and Control (Residential Participants, insert Total Monthly RMAP from Worksheet A; Non-Residential Participants, insert 1 st Year CMAP Amount in Worksheet B, Line c) $ /month
Last four digits of SAID Number*: ______________________ Payee*: ________________________________
*If Payee is someone other than the Participant, then Participant must assign the funding, bill credit, and/or true -up payment to the third-party Payee via executing the Virtual Power Plant Funding Assignment Agreement attached hereto as part of this Agreement. ☐ Virtual Power Plant Funding Assignment H. Term
Term Duration (years from Commercial Operation Date ): Estimated Commercial Online Date:

I. Installation Deadline
All work related to this Agreement must be installed and Fully Operational no later than _________. Failure to meet this deadline due to withdrawal or delay due to actions and/or inaction by Participant may result in adjustment or forfeiture of MCE Agreement Funding hereunder.

J. Participant Agreement and Signature
This Agreement is made and entered into by and between Marin Clean Energy (“MCE”) and Participant as of the date of execution of the agreement. By my signature below, Participant represents to MCE that (i) Participant has read, understands, and agrees to be bound by the terms, condi tions and requirements of this contract between MCE and Participant (including this Cover Page, the Virtual Power Plant Agreement Terms, and all attachments hereto) (“Agreement”) and the Conditions and Requirements of the Virtual Power Plant Tariff , (ii) if Participant is an entity rather than an individual, its authorized representative listed below (“Authorized Representative”) has the authority to sign this Agreement on behalf of th e Participant, and (iii) all accompanying Project documentation is complete, true, and accurate to the best of my knowledge.

Consent to Electronic Disclosure and Contracting. By signing below, Participant consents and agrees to receive electronically all communications, agreements, documents, notices, records, legal disc losures, and other information (collectively, “Electronic Records”) that MCE provides in connection with this Agreement. Participant further agrees and consents to the use of electronic signatures (such as clicking, checking , signing using a digital pen, or otherwise manifesting assent) in the process ing of Electronic Records. Participant has the right to withdraw this consent at any time by calling 1 (888) 632-3674 or emailing [email protected]. Participant must notify MCE of any change in Participant’s e -mail addr ess by using the contact information above.

Richard Schorske ZNE Alliance [email protected]
(415) 310- 2407

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Consent to Sharing Agreement with MCE Authorized Financer (Only Applicable for Residential Customer Participants). By signing below, Participant hereby consents and agrees to the provision of this Agreement and/or data contained in this Agreement to the National Energy Improvement Fund (“NEIF”) for evaluation of your eligibility for financing of the Project. Any such financing arrangements shall be negotiated and subject to a further agreement between Participant and NEIF. If you are approved, financing will be provided by NEIF. Authorized Representative of Participant (if Participant is an entity; please print) Title Date Signature of Participant or Authorized Representative of Participant (if Participant is an entity) Virtual Power Plant Agreement Terms, Conditions and Requirements 1. Overview. MCE’s Virtual Power Plant Pilot (VPP Pilot) provides certain payments and funding options to MCE customers installing behind-the-meter Distributed Energy Resources in exchange for MCE to have the ability to monitor and dispatch the Distributed Energy Resource to reduce local peak demand, reduce overall cost of service to eligible customers, reduce greenhouse gas emissions, and provide resiliency benefits for eligible customers during grid outages. 2. Definitions. a. “Agreement” refers to this Virtual Power Plant Agreement, including the Cover Page, the Virtual Power Plant Agreement Terms, Conditions and Requirements and all attachments hereto b. “CPUC” refers to the California Public Utilities Commission c. “DERMS” refers to MCE’s distributed energy resources management system d. “DER” refers to one or more behind-the-meter Distributed Energy Resources installed within the Project e. "Fully Operational” refers to all the following occurring: (1) the DER has been completely installed at the Site; and (2) the Participant has received utility’s permission to operate the DER; and (3) MCE has verified that the participating DERs are successfully connected to MCE’s VPP. f. “MCE” refers to Marin Clean Energy or its contractors, subcontractors or agents g. “MCE Agreement Funding” has the meaning set forth in Section 12.b h. “MCE Authorized Designee” refers to a vendor that has been approved by MCE or its VPP Pilot Implementer to work in the VPP Pilot and is identified on the Cover Page i. “M&V” refers to measurement and verification j. “Participant” has the meaning set forth on the Cover Page k. “Party” (individually) or “Parties” (collectively) refers to MCE and Participant l. “Personally Identifiable Information” refers to any information that relates to an identified or identifiable individual, including, but not limited to, an individual’s name, address, telephone number, email address, or as otherwise recognized as “personal information,” “personal data,” or “personally identifiable information” in accordance with applicable laws and regulations m. “Project” refers to the design, engineering and installation of the DER pursuant to the terms of this Agreement as described in Section E. of the Cover Page n. “Project Developer” refers to an MCE-authorized installer of the DER and can be an MCE Authorized Designee o. “Qualifying DER” refers to a DER supplied by an MCE Authorized Designee that is capable of being controlled by MCE’s DERMS p. “Site” refers to the site (or sites) where the DER will be located q. “Tariff” or “VPPT” refers to the MCE Virtual Power Plant Tariff (VPPT) applicable to Participants of the Virtual Power Plant Pilot 3. Agreement Eligibility. Participants must, for the Term of the Agreement: (i) be and remain an active MCE customer and (ii) meet and maintain all Agreement requirements herein and those listed in the Virtual Power Plant Tariff. 4. Authorization. Participant must be authorized to approve the installation of a DER, including any necessary modifications to the electrical system, either: (i) as the legal Site owner; (ii) as the duly authorized representative of the Site owner; or (iii) with prior, written authorization and approval from the legal owner of the Site. 5. Ownership. Participant must be the owner and title holder to the DER during the Term of the Agreement, unless agreed to otherwise in writing by MCE. If the site has a solar panel system owned by a person or entity other than the Participant, MCE must be notified immediately. MCE does not anticipate that its control of the DER will interfere with the operation of the solar panel system or impact the terms of any agreement with the third-party owner of the solar panel system (i.e., a lease, prepaid lease, or power purchase agreement), however MCE does not guarantee that this Agreement does not conflict with any agreement with a third-party owner of the solar panel system and takes no responsibility or liability for any such conflict. Participant is solely responsible for confirming the terms of any agreement with the third-party owner of the solar panel system does not conflict with this Agreement and obtaining any required consent to this Agreement of the third-party owner of the solar panel system. 6. DER Requirements. Participant agrees to: (i) install a Fully Operational Qualifying DER with equipment and/or software using an MCE Authorized Designee (ii) provide the DER with continuous access to a functioning broadband internet connection with a speed of at least 1 Mbps with one (1) wired Ethernet port (preferred), a wireless Internet connection and standard electrical outlet, or its own mobile data connection. 7. DER Operations. Participant agrees to operate and maintain the DER and all associated equipment in accordance with the rules, stipulations and restrictions of all manufacturer requirements and warranties as well as all State and local codes and regulations.

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Last updated 12/15/2022
Participant is responsible for operation and maintenance of the DER and therefore must provide for or arrange for the provision of operations and maintenance services on the DER . Except for any required shutdowns for safety or maintenance, Participant further agrees to ensure that the solar panel system is operated and maintained such that it is generating at its expected capacity (as per manufacturer’s projections) during the Term.

8. No Modification of DER. Participant may not modify, disconnect, or uninstall the DER equipment and/or software during the Term, unless required for maintenance, repair, or safety reasons and Participant has provided advance notice to MCE (if possible, due to safety considerations), after which the DER must be restored to original condition, connection, and specifications. Participant must notify MCE immediately if there have been any modifications to the DER equipment and/or software by any person or entity, or if there has been any damage to or removal of the DER. Notwithstanding the fore going, manufacturer-recommended software upgrades are permitted without needing to notify MCE, so long as such upgrades do not impact MCE’s ability to monitor and control the DER.

9. Site Acc ess and Inspections. Participant agrees to allow MCE, and/or MCE Authorized Designee, acc ess to the Site during reasonable hours and upon reasonable notice during the Term to: (i) specify, install, operate, maintain, repair and remove equipment used to measure Project-related kW Usage; (ii) perform Agreement related audits; and (iii) perform Agreement-related inspections.

MCE Authorized Designee may conduct a Site inspection during installation or after installation is complete. If the MCE Authorized Designee determines that the DER was not installed in a manner consistent with the approved Project or within the provisions of this Agreement, or Participant has taken measures that counter the Agreement’s goals such as going off-grid or removing the DER from Site, MCE may, at its sole discretion, require immediate repayment of the MCE Agreement Funding and/or eliminate future MCE Agreement Funding. MCE Authorized Designees may perform up to two (2) inspections per year during the Term.

10. Measurement and Verification Equipment. MCE Authorized Designee will develop an M&V plan for the purpose of measuring DER performance and subsequent energy savings from deployed use cases subject to the limitations of the Tariff, on an ongoing basis for the Term of this Agreement. Participant agrees: (i) to allow MCE and/or MCE Authorized Designee to install M&V equipment; and (ii) to allow for such equipment to remain in place and functional for the entire Term of this Agreement; and (iii) not to remove, modify, or tamper with installed M&V equipment. MCE may modify the M&V conditions in the Tariff from time to time in its sole discretion.

11. Project Installation. The Project must be developed and installed by an MCE Authorized Designees. Participant is responsible for negotiating an installation contract with the Project Developer or MCE Authorized Designee, monitoring the work, and managing and resolving any disputes that may arise between Participant and Project Developer or MCE Authorized Designee with respect to the contract or the work performed under the contract. Participant shall require its Project Developer or MCE Authorized Designee to install the DER in accordance with all applicable federal, California State and local law. MCE does not guarantee or warranty, and is not responsible for, any acts or omissions of any Project Developer or MCE Authorized Designee.

12. Available Funding.
a. SGIP Incentives. Eligible Participants or Project Developer may apply for incentives from PG&E’s Self -Generation Incentive Program (SGIP). SGIP is a CA State-funded Program that provides financial incentives for installing on-site electrical generation and storage systems. Eligibility and receipt of SGIP incentives is solely determined by the SGIP program administrator. b. MCE Agreement Funding. Participant understands and agrees that their eligibility to receive any MCE Agreement Funding, if applicable, or the eligibility of MCE Authorized Designee or its Subcontractor to receive any MCE Agreement Funding, if applicable, requires compliance with the terms and conditions of this Agreement for the full Term. MCE Agreement Funding includes all amounts provided to Participant from this Section 12 b. pursuant to this Agreement. Pursuant to Section 14, MCE may require repayment of DER Gap funding, PV Gap funding, and/or Richmond Advanced Energy Community Grant Funding on a pro-rated basis:
i. DER Gap Funding as set forth on the Cover Page to cover some of the DER costs not covered by SGIP and other incentives, depending on SGIP eligib ility rules and final award of funds and determined on a case -by-case basis. Gap Funding is provided in return for integration with the MCE DERMS.
ii. Solar Photovoltaic (PV) Gap Funding Participants may be eligible for additional MCE Agreement Funding as indicated on the Cover Page for installing a Solar PV with GRID Alternatives, or other MCE Authorized Designee. iii. Richmond Advanced Energy Community Grant Funding as set forth on the Cover Page to cover a portion of the DER costs not covered by SGIP, MCE Gap Funding and other applicable incentives, depending on SGIP eligibility rules and final award of funds, and determined on a case-by-case basis.
iv. DER Management & Control Payments: Participants are eligible to receive a monthly bill credit as defined in the Tariff and pursuant to the applicable Worksheet A or B, attached. Non-Residential Participants are eligible for an additional Program Year True-Up Payment as defined in the Tariff and Worksheet B paid annually once Fully Operational. MCE reserves the right to change the Tariff at any time for any reason.
c. Cap on Total Funding. The combined total of MCE Agreement Funding and any other incentives (including, but not limited to SGIP incentives and Investment Tax Credit, if applicable) received for the Project shall not exceed the Total Eligible Projec t Costs, as defined in the current SGIP Handbook. If Participant is not receiving SGIP Incentives, the total of MCE Agreement Funding and any other incentives cannot exceed 100% of the DER costs.

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13. Term. Standard terms are 5 years for residential sites and 7 years for non-residential sites. Term end date will be 5 or 7 years, as indicated based on the Cover Page, from the latter of (1) Participant receives utility’s permission to operate the DER, if applicable and (2) DERMS software platform is installed and enabling MCE to monitor and control the DER. For clarity, the Term Start Date is the date Participant signs this Agreement. 14. Early Termination. If MCE terminates this Agreement pursuant to the terms set forth in Section 15, or if Participant terminates this Agreement prior to the end of the Term, MCE may, at its sole discretion, require immediate repayment of the MCE Agreement Funding. Upon termination, all monthly bill credits and any applicable Program True-Up Payment will terminate. 15. Breach of the Agreement. If Participant does any of the following, it shall constitute a material breach of this Agreement by Participant (“Breach”): (a) Participant opts out of MCE service; (b) Participant abandons the Site, or for any reason other than selling, leasing or renting the Site to another MCE customer, terminates service with MCE; (c) Participant modifies, removes, disconnects, decommissions, fails to properly maintain or operate the DER or has the DER interconnection agreement revoked for any reason; (d) the DER is destroyed or damaged other than as a result of the negligence of MCE; or (e) the DER is not installed by the Installation Deadline set forth on the Cover Page. In the event of a Breach that has not been resolved by Participant within ten (10) days of such Breach, MCE shall have the right to terminate this Agreement and MCE may, at its sole discretion, require immediate repayment of the MCE Agreement Funding and/or eliminate future MCE Agreement Funding. 16. Command and Control of the DER. As a condition of participating in the Agreement and receiving any Agreement Funding, Participants must allow MCE to monitor and control the DER for the Term of this Agreement. a. MCE Control. Participant agrees MCE will be the sole entity controlling and dispatching the DER for the Term and agrees not to allow any other person or entity to control DERs interconnected at this Site. b. Dispatching DER. MCE will dispatch the DER at its discretion subject to the limitations defined in the Tariff and as applicable, the requirements of the California Independent System Operator (“CAISO”) Open Access Transmission Tariff (“OATT”). c. Access to DER Data. Participants agree to provide access to the DER telemetry and usage data for the Term of this Agreement. Such data includes, but is not be limited to information regarding how frequently the DER operates, charges and discharges, the timing and amount of such operation, and may include data relating to the solar panel system production or Site’s energy usage (hereinafter, collectively referred to as the “Data”). Participants consent to MCE’s collection, processing, use, and retention for its own purposes of any Data in de-identified and aggregated form, including Data collected under this Agreement, or derived from participation in this Agreement. Participants acknowledge, agree and, to the extent necessary or appropriate as determined in MCE’s sole discretion, provide consent to MCE for MCE to obtain such Data in de-identified and aggregated form. Without limiting the generality of the foregoing, MCE will not disclose Data without the consent of Participant, except in the following circumstances: (1) to MCE’s agents, independent contractors and subcontractors as necessary in connection with MCE’s performance under the Agreement; (2) where the Data does not contain Personally Identifiable Information (including where Data has been de-identified or aggregated); (3) if MCE is required to do so by any law or regulation or in the good-faith belief that such action is necessary to comply with any law, regulation, order or other legal process; (4) if MCE believes, in good faith, disclosure is appropriate or necessary to (A) take precautions against liability, (B) protect MCE or others from fraudulent, abusive, or unlawful uses or activity, (C) investigate or defend against any third-party claims or allegations or (D) protect the security or integrity of MCE’s services and any facilities or equipment used to make MCE’s service available. d. CAISO Participation. MCE, at its sole discretion and without requiring any additional approvals from or notice to Participant, may enroll or disenroll the DER in any program, product, or market (including any distributed energy resource aggregation) under the CAISO OATT. MCE shall be entitled to all revenue received from the DER’s participation in such program, product, or market. 17. Indemnification. MCE shall have no liability for any claims arising from work performed by Project Developer or MCE Authorized Designee, including, but not limited to, damage to the Site, the DER or any persons or property at or about the Site, or the performance of the DER. MCE shall have no liability for any claims or damages caused by the DER, including, but not limited to, any defects therein. Participant hereby releases MCE from any claims or liabilities relating to the installation of the Project. To the fullest extent permitted by applicable law, Participant shall indemnify, defend, and hold MCE and its employees, officers, directors, authorized designees, and agents, harmless from and against any and all actions, claims, liabilities, losses, costs, damages, and expenses (including, but not limited to, litigation costs, attorney’s fees and costs, physical damage to or loss of tangible property, and injury or death of any person) arising out of, resulting from, or in connection with the Agreement by any actual or alleged act or omission of Participant, Project Developer, MCE Authorized Designee, or any subcontractor, agent, or third party, or anyone directly or indirectly employed by any of them or anyone for whose acts any of them may be liable. 18. LIMIT OF LIABILITY. MCE AND PARTICIPANT WAIVE ANY AND ALL CLAIMS AGAINST EACH OTHER FOR INCIDENTAL, CONSEQUENTIAL, SPECIAL, MULTIPLE, AND PUNITIVE DAMAGES ARISING OUT OF OR RELATING TO THIS AGREEMENT, REGARDLESS OF WHETHER SUCH DAMAGES WERE FORESEEABLE AND WHETHER OR NOT THE CULPABLE PARTY WAS ADVISED OF THE POSSIBILITY OF SUCH DAMAGES. MCE’S TOTAL AGGREGATE LIABILITY TO PARTICIPANT UNDER THIS AGREEMENT ON ALL CLAIMS OF ANY KIND ARISING OUT OF OR IN ANY WAY RELATED TO THIS AGREEMENT, INCLUDING, BUT NOT LIMITED TO, NEGLIGENCE, ERRORS, OMISSIONS, STRICT LIABILITY, INDEMNITY, OR BREACH OF CONTRACT, IS LIMITED TO THE MCE AGREEMENT FUNDING PAID TO PARTICIPANT UNDER THIS AGREEMENT.

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19. No Warranty. MCE DOES NOT WARRANT OR GUARANTEE (1) THE AMOUNT OF ENERGY PRODUCED BY THE DER FOR ANY PERIOD, (2) ANY COST SAVINGS, OR (3) THE EXISTENCE OF OR PRICING ASSOCIATED WITH ANY NET METERING AGREEMENT, OR UTILITY OR GOVERNMENT INCENTIVE AGREEMENT. CUSTOMER LOAD, ELECTRICITY RATES AND RATE STRUCTURES ARE SUBJECT TO CHANGE. PROJECTED SAVINGS FROM THE DER ARE THEREFORE SUBJECT TO CHANGE. TAX INCENTIVES ARE SUBJECT TO CHANGE OR TERMINATION BY EXECUTIVE, LEGISLATIVE OR REGULATORY ACTION. 20. Removal of Equipment. Participant agrees to remove and dispose of any batteries and/or equipment being replaced by the DER in accordance with all laws, rules, codes and regulations. Participant agrees not to reinstall the DER anywhere in California or transfer it to any other party for installation in California for the Term of the Agreement. 21. Miscellaneous. a. Agreement/Terms and Conditions Changes. The VPP Pilot may be modified, suspended or terminated by MCE at any time, without prior notice. In the event of termination of this VPP Pilot, MCE or its Authorized Designees shall be granted immediate access to the Site in order to remove M&V Equipment. b. Taxes. Participant shall be responsible for the payment of any and all taxes associated with the Project or incurred as a result of the SGIP incentives, Monthly Bill Credits, Program Year True-Up Payment, or any MCE Agreement Funding. c. Insurance. Participant has and agrees to maintain during the entire Term customary property and liability insurance with respect to the Site, including sufficient coverage for any damage to the Solar Panel System and/or the DER. d. Use of Non-Usage Data. Participant agrees to allow MCE and its authorized contractors and agents to use Participant’s name, Site location, size of DER installed, and any other information gathered as part of participating in the Agreement (“Non-Usage Data”) for use in regulatory and grant reporting, ordinary business use, industry forums, case studies or other activities deemed necessary to MCE. e. Acknowledgment. Participant agrees to have MCE designed stickers containing MCE's logo and/or the generation service (i.e., Light Green, Deep Green, Local Sol) placed on the installed DER. The applicable stickers will be provided by MCE and Participant authorizes MCE and/or its MCE Authorized Designee to place such stickers on the installed DER. f. Amendment. This Agreement may not be amended without the mutual, written agreement of both Parties. g. Assignment. This Agreement may not be assigned by either MCE or Participant without the prior written consent of the other party, not to be unreasonably withheld, conditioned, or delayed. Subject to ten (10) days prior written notice, Participant may assign this Agreement if the new Site owner or lessee enters into a written assignment and assumption agreement assuming all the obligations of Participant prior to the transfer of Site ownership or control. h. Jurisdiction and Venue. This Agreement shall be construed in accordance with the laws of the State of California and the Parties hereto agree that venue shall be in Marin County, California. i. Survival. The following sections will survive the termination of this Agreement: 11, 15, 17-20. j. Severability. In the event any provision in this Agreement is found to be legally invalid or unenforceable, that provision will be revised to the degree allowed by law to give it the maximum effect allowed by law, or, if revision is not possible, will be severed and the remaining provisions of this Agreement will remain in full force and effect.

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Worksheet A Residential MCE VPP Customer This Worksheet is to be completed by a Project Developer or MCE Authorized Designee who is authorized to provide services relating to MCE’s Virtual Power Plant Pilot. Residential Monthly Advance Payment (RMAP) DER Classification Make and Model Quantity Monthly Bill Credit per unit kW Capacity Line-Item Bill Credit Smart Refrigerator $2 Smart Freezer $2 Smart Outlet* (*with 1 kW minimum peak load) $2 Smart Thermostat $5 HAN/Smart Gateway $5 Mini-split $5 Heat-Pump Water Heater $5 Level 2 EV Charger $10 Bi-directions Level 2 EV Charger $20 ESS under 20kWh $10 ESS larger than 20kWh $20 Total kW Capacity: TOTAL MONTHLY RMAP**: (**Maximum monthly RMAP is $50 for CARE and FERA customers. Maximum monthly RMAP is $40 for non-CARE and non-FERA customers) $

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Worksheet B Commercial MCE VPP Customer This Worksheet is only to be completed by a Project Developer or MCE Authorized Designee who is authorized to provide services relating to MCE’s Virtual Power Plant Pilot. First Year CMAP and Program Year True-up Payment Estimated Total Annual kWh of Load Shift: a. Estimated Total Annual Performance Payment - multiply Line a. by 0.11: b. First year’s CMAP* - multiply Line b. by 0.33 and divide by twelve: c. Program Year True-Up Payment - Calculation Below Program Year Verified Total Annual kWh of Load Shift**: d. First Year Annual Performance Payment - multiply Line d. by $0.11: e. Number of program participation months this program year (Jan.1st to Dec. 31st): f. Total annual CMAP - multiply Line c. by line f.: g. Program Year True-Up Payment - subtract line g. from Line e: h. After First Year CMAP and Program Year Annual Performance Payments Total Delivered Annual kWh of Load Shift in previous year (verified kWh from Line d.): i. Estimated Annual Performance Payment - multiply Line i. by 0.11: j. After First Year CMAP* - multiply Line j. by 0.5 and divide by twelve: k. Program Year True-Up Payment - Calculation Below Program Year verified total annual kWh of Load Shift**: l. After First Year Annual performance payment - multiply Line l. by $0.11: m. Number of program participation months this year (Jan.1st to Dec. 31st): n. Total annual CMAP - multiply Line k. by line n.: o. Program Year True-up Performance Payment - subtract Line o. from Line m.: p. ***All calculations are done pursuant to MCE’s M&V plan for the VPP Pilot, which may be updated from time to time by MCE. *Maximum monthly CMAP $300 for customers on a commercial rate schedule. Maximum monthly CMAP $750 for customers on an industrial rate schedule. **Total kWh of measured load shift delivered to the MCE VPP during each Program Year (January 1st to December 31st) will be verified by MCE and its program partners at the conclusion of each program year using the MCE approved Measurement and Verification methodology, which will be independently validated through third-party audit. The Program Year True-Up Payment will be delivered to participating customers no later than March 31st of each applicable program year. *Maximum monthly CMAP $300 for customers on a commercial rate schedule. Maximum monthly CMAP $750 for customers on an industrial rate schedule. **Total kWh of measured load shift delivered to the MCE VPP during each Program Year (January 1st to December 31st) will be verified by MCE and its program partners at the conclusion of each program year using the MCE approved Measurement and Verification methodology, which will be independently validated through third-party audit. The End of Program Year True-Up Payment will be delivered to participating customers no later than March 31st of each applicable program year.

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