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Investor Presentaiton

L Pretax Millions Appendix Quarterly PCCAM Impacts 57 57 Q1 QZ Q3 Q4 Full Year '17/'18 Tracker Full year recorded in Q3 $3.3 $3.3! '18/"19 Tracker ($5.1) $0.3 (4.8); 2018 (Expense) Benefit $0.0 $0.0 ($1.8) $0.3 ($1.5); Full Year '18/'19 Tracker ($1.6) $4.6 $3.0 '19/'20 Tracker $0.1 ($0.7)! (0.6)! 2019 (Expense) Benefit ($1.6) $4.6 $0.1 ($0.7)! $2.4! Year-to-Date CU4 Disallowance ('18/19 Tracker) ($9.4); ($9.4)i '19/"20 Tracker $0.1 $0.2 $0.3 i '20/'21 Tracker ($0.4) ($0.2)! (0.6)! 2020 (Expense) Benefit $0.1 $0.2 ($0.4) ($9.6) ($9.7); Year-over-Year Variance $1.7 ($4.4) ($0.5) ($8.9) ($12.1) In 2017, the Montana legislature revised the statute regarding our recovery of electric supply costs. In response, the MPSC approved a new design for our electric tracker in 2018, effective July 1, 2017. The revised electric tracker, or PCCAM established a baseline of power supply costs and tracks the differences between the actual costs and revenues. Variances in supply costs above or below the baseline are allocated 90% to customers and 10% to shareholders, with an annual adjustment. From July 2017 to May 2019, the PCCAM also included a "deadband" which required us to absorb the variances within +/- $4.1 million from the base, with 90% of the variance above or below the deadband collected from or refunded to customers. In 2019, the Montana legislature revised the statute effective May 7, 2019, prohibiting a deadband, allowing 100% recovery of QF purchases, and maintaining the 90% / 10% sharing ratio for other purchases.
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