Common use of Transmission and Interconnection Clause in Contracts

Transmission and Interconnection. 24.1 Seller shall be solely responsible, using all reasonable efforts, to negotiate and conclude all required transmission and interconnection agreements with the Interconnecting Utility. Such agreements shall provide for the transmission of electrical energy generated by the Generating Facility to the Point of Interconnection. 24.2 It is contemplated that these agreements shall include: 24.2.1 An agreement between Seller and/or syndicate (which includes Seller), and the Interconnecting Utility to develop those facilities, as determined by the Interconnecting Utility, which are necessary to transmit electrical energy generated by the Generating Facility to the Point of Interconnection. Such agreement shall be executed no later than 36 months prior to the expected date of Firm Operation as specified in Section 1.7. Such agreement should include the following terms: a) Financial responsibility b) Default/Remedies; c) Facilities and scope of work associated thereto; and d) Scheduling provisions reflecting the development of the facilities. 24.2.2 An agreement between Seller and the Interconnecting Utility for the transmission services necessary to transmit the electrical energy generated by the Generating Facility to the Point of Interconnection. Such an agreement shall be executed no later than three months prior to the expected date of Firm Operation as specified in Section 1.7. 24.2.3 An agreement between Seller and the Interconnecting Utility for the interconnection of the Generating Facility and the Interconnecting Utility. Such agreement shall be executed no later than three months prior to the expected date of Firm Operation as specified in Section 1.7. 24.2.4 Edison shall, in its reasonable judgement, determine if the proposed arrangements described in this Section 24.2 satisfies the requirement of transmitting the electrical energy generated by the Generating Facility to the Point of Interconnection pursuant to the dates and terms contained in this Contract. 24.3 Notwithstanding the provisions contained in Section 24.2, Seller may pursue and/or develop alternate means, routes or agreements for the transmission of electrical energy generated by the Generating Facility to the Point of Interconnection. Should Seller obtain such alternative means, routes or agreements, Seller shall submit such alternative method to Edison for review and approval at least six months prior to the expected date of Firm Operation as specified in Section 1.7. Edison shall, in its reasonable judgement, determine if the proposed alternative method satisfies the requirement of transmitting the electrical energy generated by the Generating Facility to the Point of Interconnection pursuant to the dates and terms contained in this Contract. 24.4 Should Seller be unable to comply with the provisions contained in Section 24.2 and 24.3, Seller shall have the option to either terminate this Contract without penalty of any type or abrogate its selection of Capacity Payment Option in Section 1.10 and select in its place Capacity Payment Option A, Forecast of Annual As-Available Capacity Payment Schedule. Further, should Seller select the later alternative, Section 8.1.1.2 shall be deleted in its entirety and replaced with the following: "If Seller specifies the Forecast of Annual As-Available Capacity Payment Schedule pursuant to Section 24.4, then the formula set forth in Section 8.1.1 shall be computed as follows: a. During the First Period of the Contract Term, D shall equal 70% of the appropriate time differentiated capacity price from the Forecast of Annual As-Available Capacity Payment Schedule. b. During the first five years of the Second Period of the Contract Term, D shall equal 95% of the appropriate time differentiated capacity price from the Forecast of Annual As-Available Capacity Payment Schedule for the last year of the First Period of the Contract Term. c. For the remainder of the Contract Term, D shall equal 70% of the appropriate time differentiated capacity price from the Forecast of Annual As-Available Capacity Payment Schedule for the last year of the First Period of the Contract Term." 24.5 Nothing in Section 24 shall be construed to obligate Seller to enter into any transmission or interconnection agreements, or to participate in the financing and/or the construction of any electrical power transmission facility, except on terms and conditions satisfactory to Seller, in its reasonable judgement, nor to render Seller subject to any penalty for failure to do so.