The statement below clarifies further Procedure 360-6 "Addition of New Host Facilities and Energy Savings Measures” as it applies to Small Industrial and Commercial (Small I&C) Standard Offer projects.

The conditions and requirements specified in Procedure 360-6 under which a Seller may add Host Facilities and or Energy Saving Measures apply to both Large and Small Industrial and Commercial Standard Offer projects. The follow items apply to Small I&C Standard Offer projects.

1. Upon confirmation that a Seller’s Small I&C project is eligible to add new Host Facilities and or energy Savings Measures, a Seller may propose to add Large I&C Host Facilities to the project as a means of mitigating “the imposition of Replacement Capacity Costs for subsequent Summer Prime Periods.

2. A Measurement and Verification Plan must be submitted for all Large I&C Host Facilities that are proposed to be added to existing Small I&C projects.

3. Pre implementation, Implementation, and Post Implementation audits will be conducted for all Large I&C Host Facilities that are to be added to a Small I&C project. Sampling auditing procedures used for Small I&C projects are not applicable for these added Large I&C facilities.

4. Host Facilities that are added to Small I&C Standard Offer projects will have a term and payment end date based on the average Date Of Commercial Operation (DOCO) for the Small I&C project

All other requirements specified in Procedure 360-6 “Addition of New Host Facilities and Energy Savings Measures” remain in affect and are applicable to both Large & Small Industrial and Commercial Standard Offer projects.