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18. 18 File Compliance Plan with EPA Request “AO” from EPA for 5 th year to comply FERC State PUC Develop Reliability Analysis, Concurrence by Planning Authority State Env. Agencies Copies to: EPA Grants/Denies AO in its sole discretion FERC conducts its reliability review per Staff whitepaper FERC “votes” on advice to EPA Comments? ?

19. 19 File Compliance Plan with EPA Develop Reliability Analysis, Concurrence by Planning Authority What to do NOW to manage these processes? Get early understanding of retirement plans and impacts Work with State Commissions (hearings, inter- relationship with IRP? Anticipate similar action to WVA PSC) Work with Planning Authorities? Work with Regional Entities/NERC? Work with FERC Office of Electric Reliability Staff? Goal = Develop factual record and consensus about the reliability risks and solutions before filings are made with EPA.

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21. 21 FPAState and Federal Environmental Laws Civil penalties of $1 million per violation per day for reliability violations Civil penalties of $35,000 per violation per day under the CAA and corresponding state penalties. Exposure to civil liability also. Neither pill tastes good.

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24. 24 Under Part 1c, it is unlawful for any entity, directly or indirectly: 1.To use or employ any device, scheme, or artifice to defraud, 2.To make any untrue statement of a material fact or to omit to state a material fact necessary in order to make the statements made, in the light of the circumstances under which they were made, not misleading, or 3.To engage in any act, practice, or course of business that operates or would operate as a fraud or deceit upon any entity.

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