The SPPA Pool intends to identify opportunities to maximize the utilization and value of Pool Resources, attempt to acquire energy (and, where needed, associated capacity, transmission, and/or ancillary services) needed to supply the Category A Pool Participants’ aggregate Wholesale Load Requirements, and attempt to sell energy available from Pool Resources, on commercially reasonable terms, to the extent such energy exceeds the Category A Pool Participants’ aggregate Wholesale Load Requirements. In addition, SPPA may from time to time enter into hedging transactions to reduce price volatility and risks associated with certain Pool Resources.

SPPA will have the opportunity to engage in additional transactions intended to maximize the value of the PPA on behalf of Category A Pool Participants and/or Category B Pool Participants. For instance, SPPA may purchase energy when it is expected to be less expensive than energy from other Pool Resources, and/or enter into options and/or financial instruments such as gas price hedges that would have the effect of reducing volatility in energy pricing for defined periods.