Common use of Completion and Performance Security Clause in Contracts

Completion and Performance Security. (a) From the Contract Date to the Commercial Operation Date, the Generator must post and maintain with the AESO security for the performance of the Generator's obligations under this Agreement in an amount equal to fifty thousand dollars ($50,000) per MW of Contract Capacity (the "Completion and Performance Security"). (b) After the Commercial Operation Date, the AESO shall return any Completion and Performance Security that has been provided by the Generator within twenty (20) Business Days following receipt of a written request from the Generator, net of any amounts owing by the Generator to the AESO. (c) Notwithstanding any other provision of this Agreement, no delay, including a delay resulting from an event of Force Majeure, shall extend the date by which any component of the Completion and Performance Security is required to be provided by the Generator or returned or refunded (as applicable) by the AESO. (d) The obligation of the Generator to post and maintain Completion and Performance Security as required by Section 10.1(a) must be satisfied in accordance with this Section 10.1(d) by the Generator providing such security in the form of an irrevocable and unconditional standby letter of credit in substantially the form set out in Schedule 2 and issued by a financial institution listed in either Schedule I or II of the Bank Act, or any other financial institution having a minimum credit rating of: (i) A- with S&P, (ii) A3 with ▇▇▇▇▇'▇, (iii) A low with DBRS, or (iv) A with Fitch IBCA. (e) The Generator shall ensure that, at all times, the aggregate value of all Completion and Performance Security provided to the AESO is at least equal to the required amount of Completion and Performance Security and that the Completion and Performance Security is current, valid, enforceable and in an acceptable form, including: (i) following realization by the AESO of any amount of Completion and Performance Security, by increasing the amount of Completion and Performance Security, in an amount equal to that realized by the AESO; and (ii) by forthwith providing replacement security for any letter of credit: (A) where the provider thereof has given notice that it does not wish to extend the letter of credit for an additional term, (B) which expires, terminates or fails, or ceases to be in full force and effect for the purposes hereof, (C) which is disaffirmed, disclaimed, dishonoured, repudiated or rejected in whole or in part by the provider thereof, or (D) the validity of which is challenged by the provider thereof. (f) All costs associated with the requirement to provide and maintain Completion and Performance Security shall be borne by the Generator. (g) The Generator shall, from time to time for so long as the Generator is obligated to post and maintain Completion and Performance Security as required by Section 10.1(a), replace or renew any letter of credit at least sixty (60) days prior to the expiration or termination, for any reason of such Completion and Performance Security. (h) If existing Completion and Performance Security is replaced with new Completion and Performance Security, the AESO shall return the existing Completion and Performance Security held by the AESO for cancellation, within fifteen (15) Business Days of the AESO's receipt of such new Completion and Performance Security. A Generator may from time to time consolidate any separate amounts of Completion and Performance Security held by the AESO by providing to the AESO replacement Completion and Performance Security in the cumulative amount of Completion and Performance Security outstanding, in which case the AESO shall return the existing Completion and Performance Security in accordance with this Section 10.1(h). (i) Any interest earned by the AESO on any Completion and Performance Security provided to the AESO shall be for the account of the AESO and the Generator shall not have any right to such interest.

Completion and Performance Security. ‌ (a) From the Contract Date to the Commercial Operation Date, the Generator must post and maintain with the AESO security for the performance of the Generator's obligations under this Agreement in an amount equal to fifty thousand dollars ($50,000) per MW of Contract Capacity (the "Completion and Performance Security"). (b) After the Commercial Operation Date, the AESO shall return any Completion and Performance Security that has been provided by the Generator within twenty (20) Business Days following receipt of a written request from the Generator, net of any amounts owing by the Generator to the AESO. (c) Notwithstanding any other provision of this Agreement, no delay, including a delay resulting from an event of Force Majeure, shall extend the date by which any component of the Completion and Performance Security is required to be provided by the Generator or returned or refunded (as applicable) by the AESO. (d) The obligation of the Generator to post and maintain Completion and Performance Security as required by Section 10.1(a) must be satisfied in accordance with this Section 10.1(d) by the Generator providing such security in the form of an irrevocable and unconditional standby letter of credit in substantially the form set out in Schedule 2 and issued by a financial institution listed in either Schedule I or II of the Bank Act, or any other financial institution having a minimum credit rating of: (i) A- with S&P, (ii) A3 with ▇▇▇▇▇'▇, (iii) A low with DBRS, or (iv) A with Fitch IBCA. (e) The Generator shall ensure that, at all times, the aggregate value of all Completion and Performance Security provided to the AESO is at least equal to the required amount of Completion and Performance Security and that the Completion and Performance Security is current, valid, enforceable and in an acceptable form, including: (i) following realization by the AESO of any amount of Completion and Performance Security, by increasing the amount of Completion and Performance Security, in an amount equal to that realized by the AESO; and (ii) by forthwith providing replacement security for any letter of credit: (A) where the provider thereof has given notice that it does not wish to extend the letter of credit for an additional term, (B) which expires, terminates or fails, or ceases to be in full force and effect for the purposes hereof, (C) which is disaffirmed, disclaimed, dishonoured, repudiated or rejected in whole or in part by the provider thereof, or (D) the validity of which is challenged by the provider thereof. (f) All costs associated with the requirement to provide and maintain Completion and Performance Security shall be borne by the Generator. (g) The Generator shall, from time to time for so long as the Generator is obligated to post and maintain Completion and Performance Security as required by Section 10.1(a), replace or renew any letter of credit at least sixty (60) days prior to the expiration or termination, for any reason of such Completion and Performance Security. (h) If existing Completion and Performance Security is replaced with new Completion and Performance Security, the AESO shall return the existing Completion and Performance Security held by the AESO for cancellation, within fifteen (15) Business Days of the AESO's receipt of such new Completion and Performance Security. A Generator may from time to time consolidate any separate amounts of Completion and Performance Security held by the AESO by providing to the AESO replacement Completion and Performance Security in the cumulative amount of Completion and Performance Security outstanding, in which case the AESO shall return the existing Completion and Performance Security in accordance with this Section 10.1(h). (i) Any interest earned by the AESO on any Completion and Performance Security provided to the AESO shall be for the account of the AESO and the Generator shall not have any right to such interest.