Common use of Interim Contracts Clause in Contracts

Interim Contracts. Utility shall and DWR agrees to update the Attachments and data requirements associated with this Order as needed to incorporate the addition of new Interim Contracts entered into after the effective date of this Order. Certain of the Contracts listed on Schedule 1 of this Order provide DWR the option of either (i) letting the Supplier provide the necessary natural gas for its generating units at an index-based price or agreed upon fixed price or (ii) DWR procuring the gas supply and causing such supply to be delivered to the Supplier under a tolling arrangement (“Fuel Option”). Certain of the Contracts with Fuel Option provides that DWR can decide on a monthly basis whether to supply the gas and others provide that the decision be made annually or semi-annually when DWR reviews the Supplier’s proposed fuel plan. The purpose of this Exhibit B is to describe the relationship which will exist between DWR and Utility and the specific responsibilities of each as they all relate to managing the natural gas provisions of the Contracts which include Fuel Options. Specifically, this Exhibit B will address responsibilities for the following activities: (i) determining types and lengths of gas contracts, (ii) nominating deliveries, (iii) contracting for gas transportation and storage, (iv) managing imbalances, (v) reviewing, authorizing and making payment of gas invoices and (vi) determining and implementing hedge strategies, as appropriate.

Interim Contracts. Utility shall and DWR agrees to update agree that the Attachments and data requirements associated with this Order Agreement shall be updated as needed to incorporate the addition of new Interim Contracts entered into after the effective execution date of this OrderAgreement. Certain of the Contracts listed on Schedule 1 of this Order Agreement provide DWR the option of either (i) letting the Supplier provide supply the necessary natural gas for its generating units at an index-based price or agreed upon fixed price or (ii) DWR procuring contracting for the gas supply and causing such supply to be delivered to the Supplier under a tolling arrangement (“Fuel Option”). This option exists both with Must-Take Contracts and Dispatchable Contracts. Certain of the Contracts with Fuel Option provides that DWR can decide on a monthly basis whether to supply the gas and others provide that the decision be made annually or semi-annually when DWR reviews the Supplier’s proposed fuel plan. The purpose of this Exhibit B is to describe the relationship which will exist between DWR and Utility and the specific responsibilities of each as they all relate to managing the natural gas provisions of the Contracts which include Fuel Options. Specifically, this Exhibit B will address responsibilities for the following activities: (i) determining types and lengths of gas contracts, (ii) nominating deliveries, (iii) contracting for gas transportation and storage, (iv) managing imbalances, (v) reviewing, authorizing and making payment of gas invoices and (vi) determining and implementing hedge strategies, as appropriate.