AGREEMENT

BETWEEN

NEW BRUNSWICK POWER HOLDING CORPORATION

AND

LOCAL 37

OF THE INTERNATIONAL BROTHERHOOD OF ELECTRICAL WORKERS

A.F. OF L., C.I.O. – C.L.C.

GENERATION NUCLEAR OPERATIONAL GROUP

DECEMBER 31, 2007 – DECEMBER 31, 2010

MEMORANDUM OF AGREEMENT

Pursuant to the agreement reached on September 8, 2004 between the I.B.E.W., Local 37 and NB Power, the Parties agreed that there is a mutual interest in entering into an agreement to extend the collective agreement under the following terms:

1. The expiration date of the collective agreement between NB Power and the I.B.E.W. Local 37, Generation Nuclear Operational Group will be changed from December 31, 2007 to December 31, 2010;

2. This extension of the collective agreement will only come into effect if the decision is made to proceed with the refurbishment of PLGS and the project goes forward with a start date between April and December 2008; however any benefits given to employees on or after the date of signing this extension, pursuant to paragraphs 5 and 6 below, will not be clawed-back by NB Power in the event the refurbishment does not proceed.

3. The parties agree that the terms of the current agreement will not be amended with the exception of any letters of agreement that may be entered into during the term of the agreement, the wage increases identified in paragraph 4 of this agreement, the one day paid “floater” holiday as per paragraph 5 below, and the RRSP benefits for temporary employees as per paragraph 6 below;

4. The parities agree that, for the period of the extension, the hourly rates set out in Appendix “A” of the Generation Nuclear Operational Group agreement (revised appendices attached) will be adjusted (with the appropriate deductions for the Union Education Fund), to reflect the following:

October 1, 20073%October 1, 20083.5%October 1, 20094%

5. The parties agree that employees will receive a one day paid “floater” holiday per year effective the date of signing of this extension to the collective agreement (as per vacation entitlements, scheduling is subject to supervisory approval). The time off must be used in each calendar year. If it is not taken, it will not be paid

out. Shift employees must schedule their time off so that overtime is not required to replace them;

6. The parties agree that effective the date of signing of the extension to the collective agreement, if an employee with temporary status contributes to NB Power’s Group RRSP plan, the Employer will match the employee’s contributions up to a maximum of 4% of the employee’s actual base salary in each year.

IN WITNESS WHEREOF, the Parties hereto have caused this Agreement to the executed by their duly authorized representatives this 15th day of October, 2004.

NEW BRUNSWICK POWER HOLDING CORPORATION

DAVID HAYPRESIDENT & CHIEF EXECUTIVE OFFICER

WANDA HARRISON, Q.C.CORPORATE SECRETARY & GENERAL COUNSEL

LOCAL 37, INTERNATIONAL BROTHERHOOD OF ELECTRICAL WORKERS, AF OF L, CIO, CLC

STEVE HAYESPRESIDENT

ROSS GALBRAITHVICE-PRESIDENT

WADE GREENLAWBUSINESS MANAGER