Honeoye Storage Corporation

Original Volume No. 1A

Effective Date: 02/21/2009, Docket: RP09-263-000, Status: Effective

Second Revised Sheet No. 13 Second Revised Sheet No. 13 : Pending

Superseding: First Revised Sheet No. 13

7. CAPACITY RELEASE

Any Customer or Replacement Customer under Rate Schedule FSS shall be entitled to

release all or a portion of its capacity to Seller for resale. Additionally, Customer may

release its capacity on a volumetric basis.

Any Customer or Replacement Customer releasing capacity will be designated a

Releasing Customer. Any person purchasing released capacity shall be designated a

Replacement Customer. Any Customer that wants to release capacity must notify Seller

that it wants to release capacity and the terms and conditions of such release.

7.1. BIDDABLE CAPACITY RELEASES.

(a) Unless a proposed release is exempt from bidding as set forth in Section 7.2

hereof, Releasing Customer shall communicate its offer to release notice through

Seller’s EBB. The Releasing Customer shall submit the following information,

objectively stated and applicable to all potential Customers on a non-discriminatory basis:

(1) the pricing provisions of the offer to release; any maximum/minimum

rates specified by the Releasing Customer should include all demand

charges as a total number or as stated separately. For releases of one year

or less, that will take effect on or before one year from such release notice,

the maximum and/or minimum rates may exceed the maximum rate the

Releasing Customer is contractually obligated to pay, and such rates shall

not be subject to refund;

(2) the specific quantity to be released expressed in Dth; the basis for the

released quantity should be per day for storage injection/withdrawal, and a

per-release quantity for storage capacity and total release period quantity

(Releasing Customer in establishing terms for capacity release shall not be

limited to the service categories set forth in Section 9; Releasing Customer

may release quantities up to the Maximum Daily Injection Quantity,

Maximum Daily Withdrawal Quantity, and Maximum Storage Quantity

set forth in Releasing Customer’s Agreement);

(3) the duration of release or term including any right to recall;

(4) the terms and conditions of any recall rights. Unless another recall notice

deadline is set forth in a prearranged release to an asset manager (as

defined in Section 284.8(h) of the Commission’s regulations) and such

deadline is no earlier than 8 a.m. of the prior weekday, Releasing

customers may, to the extent permitted as a condition of the capacity

release, recall released capacity in accordance with the following timeline:

(i) Timely Recall Notification