Under the terms of the (AIC) Capacity Agreement, payments to Seller will only be adjusted to reflect an increased payment if the Source Zone ACP is greater than the Compliance Zone ACP where the Compliance Zone is LRZ4. For purposes of the below example, the “ACP” refers to the Auction Clearing Price from the 2019/2020 MISO Planning Resource Auction and the Compliance Zone is LRZ4. See below for a hypothetical example.

No. of ZRCs won by Seller: 25 ZRCs from Zone 3

Average Winning Bid Price under the (AIC) Capacity Agreement: $50/MW-day

Payment to Seller = $50 x 25 ZRCs x 365 = $456,250

MISO 2019/2020 PRA Results:

LRZ 4 ACP = $30/MW-day

LRZ 3 ACP = $100/MW-day

Adjustment to Payment = ($100 – $30) x 25 ZRCs x 365 = $638,750

Adjusted Payment = $456,250 + $638,750 = $1,095,000