Appendix D - BC Hydro - Transmission

13.5.3 Arbitration Decisions.Unless otherwise agreed by the Parties, the arbitrator(s) shall render a decision withinninety (90) Calendar Days of appointment and shall notify the Parties in writing of suchdecision and the reasons therefor. The arbitrator(s) shall be authorized only to interpretand apply the provisions of the LGIA and LGIP and shall have no power to modify orchange any provision of the LGIA and LGIP in any manner. The decision of thearbitrator(s) shall be final and binding upon the Parties, and judgment on the award maybe entered in any court having jurisdiction. The decision of the arbitrator(s) may beappealed solely on the grounds that the conduct of the arbitrator(s), or the decision itself,violated the standards set forth in the Federal Arbitration Act or the AdministrativeDispute Resolution Act. The final decision of the arbitrator must also be filed with FERCif it affects jurisdictional rates, terms and conditions of service, Interconnection Facilities,or Network Upgrades.13.5.4 Costs.Each Party shall be responsible for its own costs incurred during the arbitration processand for the following costs, if applicable: (1) the cost of the arbitrator chosen by the Partyto sit on the three member panel and one half of the cost of the third arbitrator chosen; or(2) one half the cost of the single arbitrator jointly chosen by the Parties.13.6 Local Furnishing BondsNotice.13.6.1 Transmission Providers That Own Facilities Financed by LocalFurnishing Bonds.This provision is applicable only to a Transmission Provider that has financed facilitiesfor the local furnishing of electric energy with tax-exempt bonds, as described in Section142(f) of the Internal Revenue Code ("local furnishing bonds"). Notwithstanding anyother provision of this LGIA and LGIP, Transmission Provider shall not be required toprovide Interconnection Service to Interconnection Customer pursuant to this LGIA andLGIP if the provision of such Transmission Service would jeopardize the tax-exemptstatus of any local furnishing bond(s) used to finance Transmission Provider's facilitiesthat would be used in providing such Interconnection Service.13.6.2 Alternative Procedures for Requesting Interconnection Service.If Transmission Provider determines that the provision of Interconnection Servicerequested by Interconnection Customer would jeopardize the tax-exempt status of anylocal furnishing bond(s) used to finance its facilities that would be used in providing suchInterconnection Service, it shall advise the Interconnection Customer within thirty (30)days of receipt of the Interconnection Request.Interconnection Customer thereafter may renew its request for interconnection using theprocess specified in Article 5.2(ii) of the Transmission Provider's OATT.DM_VAN/BCT0007-BCT00132/6213742.16216529.6 - 39 39-