The following rules for excess procurement shall apply for Compliance Period 3:

VMUS may apply excess procurement in one compliance period to a subsequent compliance period, subject to the following limitations:

Electricity products that exceed the maximum limit for PCC3, as specified in PUC § 399.16(c), must be subtracted from the calculation of excess procurement.

Electricity products procured under contracts of less than 10 years in duration shall be subtracted from the calculation of excess procurement, unless the electricity product meets the grandfathering requirements of PUC § 399.16(d).

VMUS may begin accruing excess procurement as of January 1, 2011.

Excess procurement meeting these requirements may be applied to any future compliance period and shall not expire, subject to the limitation in the following paragraph.

Excess procurement that is classified as PCC2 must be used for compliance by no later than Compliance Period 5. Starting in Compliance Period 6, any previously accumulated excess procurement classified as PCC2 will no longer be eligible to count towards the RPS procurement requirements.

The following rules for excess procurement shall apply for Compliance Period 4 and all subsequent Compliance Periods:

VMUS may apply excess procurement in one compliance period to a subsequent compliance period, subject to the following limitations:

Electricity products that are classified as PCC2 or PCC3 may not be counted as excess procurement.

Electricity products that exceed the maximum limit for PCC3, as specified in PUC § 399.16(c), must be subtracted from the calculation of excess procurement.

Excess procurement meeting these requirements may be applied to any future compliance period and shall not expire.