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Powering Tomorrow. ~··~ &lritilJ $ytUa! ()ptrllor 1600·120 Aoltllllocll> Stroll! w..-.1 Toronto. ON Mbl'l I Tl I 416.957 .7474

October 14, 2016 Michel Poulin Manager Hydro Hawkesbury Inc. 850 Tupper Street Hawkesbury, ON K6A 3S7 Benoit Lamarche Manager Cooperative Hydro Embrun Inc. 821 Notre-Dame Street Suite 200 Embrun, ON KOA 1Wl

Rene Beaulne Manager Hydro 2000 Lnc. 440 St-Philippe Alfred, ON KOB 1AO Dear Sirs:

RE:

Conditional Approval of CDM Plan

We refer to the joint CDM Plan submitted by I Iydro Hawkesbury Inc.• Cooperative Hydro Embron Inc., and Hydro 2000 Inc. and conditionally approved by the IESO on August 17, 2015 (CDM Plan 201505010032) .We acknowledge receipt of the joint CDM Plan submitted on June 30, 2016, and updated on July 13.2016, September 15. 2016, and September 30, 2016 (CDM Plan#: 201607130032) (the "Proposed CDM Plan"). The Proposed CDM Plan is submitted under section 2.4(a) of: a) the Energy Conservation Agreement between the Independent Electricity System Operaror) ("IESO ") and Hydro Hawkesbury luc. dated December 29, 2014, as amended as of May 1, 2016;

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b) the Energy Conservation Agreement between the IESO and Cooperative Hydro Embrun Inc. dated December 22, 2014 as amended as of May l, 2016; and c) the Energy Conservation Agreement between the IESO and Hydro 2000 lnc. dated December 22,2014, as amended as ofMay 1, 2016,

as applicable (each, the ·'Enel'gy Conservation Agreement" or "Aweement"). Tem1s used in this letter that are defined in the Energy Conservation Agreement will have the meanings given to them in the Energy Conservation Agreement. Subject to tile exceptions sel out below and the following tem1s and conditions, the IESO approves the Proposed Amended CDM Plan (the "CDM Plan"), pursuant to section 2.4(a) of the Energy Conservation Agreement: l ) The COM Plan comprises the updated version of the documents submitted by the LDCs set out at Schedule "A" and includes, for certainty. any information requests and responses thereto; 2) The LDCs acknowledge and agree that no approval is being granted in respect of the asswnptions made by the LDCs in Section G of the "Overview of CDM Plan"; 3) The Program Rules that apply to e-ach of tbe approved Programs are those in effect as of the Progran1 Start Date set out in the CDM Plan; 4) Except as othenvise agreed to in writing with the IESO, the LDCs will only accept applications under the Energy Conservation Agreement as of the applicable Program Start Dates secout in tbe CDM Plan; 5) T he LDCs will not accept applications under a Registered Initiative (as defined in tlle 2011-2014 Ma.'\ter COM Program Agreement dnted January 1, 20 11) on or after the applicable Program Start Date of its successor Program under th.e Energy Conservation Agreement; 6) The LDCs shall submit an amended CDM Plan to allocate any '"unassigned target" to an approved Program before initiation ofthc. Mid-Term Review. 7) Each LDC acknowledges that its implementation of ilie CDM Plan is based on its own assessment of its CDM Plan Target and COM Plan Budget; and 8) Each LDC consents to the disclosure by the IESO of this letter and the LDC's CDM Plan in its entirety, including, without limitation. to the public, except for Anticipated Annual Budgets for Proposed Pilots or Programs.

Please conftrm your agreement to the above noted tenns and conditions of this CDM Plan approval by countersigning this letter .r .en u ri'Q~L~IOfl v 1 t wullOll"" ~m.,......

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