POWER SUPPLY AGREEMENT Between FirstEnergy Solutions Corp., Seller And the FirstEnergy Operating Companies, Buyer
FirstEnergy
Solutions Corp. EXHIBIT
10.9
FERC
Electric
Tariff, First Revised Volume No.1
Service
Agreement
No.4
Between
FirstEnergy Solutions Corp., Seller
And
the
FirstEnergy Operating Companies, Buyer
This
Electric Power Supply Agreement (“Agreement”)
dated October 31,
2005, is made by and between FirstEnergy Solutions Corp. (“SOLUTIONS” or
“Seller”), and the following FirstEnergy Operating Companies: The Cleveland
Electric Illuminating Company, Ohio Edison Company, and The Toledo Edison
Company (collectively referred to as “FEOCs” or “Buyer”). SOLUTIONS and FEOCs
may be identified collectively as “Parties” or individually as a “Party.” This
Agreement is entered into in connection with the Ohio electric restructuring
legislation and the Ohio rate stabilization plan approved by the Public
Utilities Commission of Ohio (“PUCO”) in Case No. 03-2144-EL-ATA, et al.,
(hereinafter, “Ohio Rate Stabilization Plan”).
WHEREAS,
Seller has
purchased: all of the electric output of nuclear generating units of its
affiliate, FirstEnergy Nuclear Generation Corp. (including the electric output
of nuclear generating units owned by others that is purchased by FirstEnergy
Nuclear Generation Corp.); all of the electric output of fossil and pumped
storage generating facilities owned or operated by its subsidiary, FirstEnergy
Generation Corp.; and power from unaffiliated companies (collectively referred
to as “Generating Resources”); and
WHEREAS,
Seller is engaged
inter
alia,
in the business
of generating, purchasing, and selling Power at wholesale and retail;
and
WHEREAS,
Buyer is
responsible for obtaining and delivering sufficient Capacity and Energy, and
related services necessary to meet its Provider of Last Resort obligations
under
Ohio law, as well as other power supply obligations incurred by law, contract
or
tariff;
WHEREAS,
Buyer desires to
obtain from Seller sufficient Power to satisfy its Power Supply Requirements
to
Ohio customers under the rates, terms and conditions set forth herein;
|
Issued
By: ▇▇▇▇▇▇▇
▇. ▇▇▇▇▇, Senior Vice President
Issue
Date: October
31, 2005
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Effective
Date: January 1, 2006
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It
is agreed as follows:
I.
TERM
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A.
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The
sale and
purchase of Power pursuant to this Agreement shall begin on January
1,
2006, or such later effective date authorized by the Federal Energy
Regulatory Commission, and unless terminated by mutual agreement
of the
Parties shall remain in effect through December 31,
2008.
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B.
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This
Agreement may be terminated at the sole option of Seller with sixty
days
notice to become effective upon the implementation of a winning bid
for
Provider of Last Resort service resulting from the auction process
established pursuant to the Ohio Rate Stabilization Plan approved
in PUCO
Case No. 03-2144-EL-ATA, et al, and any subsequent modifications
or
proceedings related thereto (“Ohio Auction”). In the event Buyer obtains
Capacity and Energy for Provider of Last Resort service from an
unaffiliated supplier through the Ohio Auction, Buyer is not obligated
to
obtain and pay for that portion of its Power Supply Requirements
from
Seller.
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II.
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SALE
AND PURCHASE OF CAPACITY AND ENERGY
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A.
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Seller
shall
make available to Buyer Capacity and Energy sufficient to satisfy
Buyer’s
Power Supply Requirements. Seller shall make such firm Capacity and
Energy
available at the Delivery Points. Capacity and Energy supplied shall
be
sixty-hertz, three phase alternating current. The Power Supply
Requirements will be provided in accordance with Good Utility Practice,
and where applicable, the provisions of the OATT of the Transmission
Provider or any superseding tariff. The Capacity and Energy provided
by
Seller will comply with all requirements for Network Resources under
the
Transmission Provider’s OATT and Buyer’s Network Transmission Agreements
with Transmission Provider.
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B.
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Except
as
provided in Section I.B., Buyer will purchase its full Power Supply
Requirements from Seller during the term of this Agreement. Buyer
will pay
for the Power Supply Requirements in accordance with Section IV of
this
Agreement. Buyer is responsible for obtaining all Network Transmission
Service, Ancillary Services, congestion charges, marginal transmission
losses, and such other services and administrative charges as are
required
and imposed by the Transmission Provider OATT on the Buyer as a Load
Serving Entity for the delivery of Capacity and Energy at and from
the
Delivery Points under this Agreement.
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C.
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Seller
may
purchase Power from third parties in the Spot Market as necessary
to
satisfy its obligations under this Agreement. Buyer will pay for
this
Power at the price specified in Section IV.B of this
Agreement.
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Effective
Date: January 1, 2006
2
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D.
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If
Seller’s
credit is adversely impacted during the term of this Agreement, Buyer
agrees to allow Seller to acquire purchased Power as agent for the
Buyer
as reasonably necessary to minimize supply costs under this Agreement.
Buyer will pay all of the costs associated with acquiring this Power,
but
Seller will not charge Buyer any broker fee for performing this service.
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II.
SCHEDULING
AND SYSTEM PLANNING
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A.
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On
or before
November 1, 2005 and on November 1 of each subsequent year during
the term
of this Agreement, Buyer will inform Seller of its initial annual
Capacity
and Energy forecast for the next calendar year. Such initial annual
forecast shall include Buyer’s Power Supply Requirements for the year, by
month. Based on Buyer’s initial annual forecast, as well as other
information that may be communicated between Buyer and Seller as
necessary
and appropriate for system planning, Seller shall procure the necessary
Generation Resources and develop forecasts of Buyer’s Power Supply
Requirements on a weekly, daily and hourly basis, and shall periodically
update such forecasts to reflect current circumstances.
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B.
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Buyer
shall
update its annual forecast of Capacity and Energy for any change
or
expected change in its Power Supply Requirements that would materially
affect the annual forecast provided to Solutions. Buyer shall provide
the
updated forecast to Solutions for any full month(s) remaining in
the
calendar year within thirty days of becoming aware of the change
or
expected change in its Power Supply Requirements.
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C.
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Buyer
is
responsible for scheduling delivery of its Power Supply Requirements
with
Transmission Provider in accordance with the OATT. Buyer will
simultaneously furnish its schedule to Seller and Transmission Provider.
Seller will supply Capacity and Energy to Buyer in accordance with
the
schedule provided to Transmission Provider. Buyer and Seller acknowledge
that Buyer’s Power Supply Requirements may vary from the schedule provided
to Transmission Provider. Buyer agrees that it is responsible for
payment
of any Transmission Provider charges incurred when actual Power Supply
Requirements differ from the schedule provided. Seller shall be
responsible for payment of any Transmission Provider charges incurred
by
its failure to deliver the scheduled amount of Capacity and Energy.
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D.
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Seller
agrees
to operate its Generating Resources in accordance with Good Utility
Practice, including, but not limited to the efficient and economic
dispatch of the Generating Resources. Seller will self-schedule sufficient
Generating Resources to supply Buyer’s Power Supply Requirements in
accordance with Buyer’s delivery schedule and the Transmission Provider
OATT.
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Effective
Date: January 1, 2006
3
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E.
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Load
Management. To minimize supply risk to the Seller hereunder, Buyer
agrees
to enforce its applicable Retail Tariffs, Special Contracts, and
federal
tariffs and contracts, including, but not limited to, those tariffs
or
contracts that provide for curtailment or interruption of electric
service, real time pricing, or other load management devices. At
Buyer’s
request, Seller will provide estimates of the Spot Market price of
Energy
in sufficient detail for Buyer to implement and administer its tariffs
and
contracts with retail customers. Any such data furnished to Buyer
shall be
treated as Confidential
Information.
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F.
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Buyer
and
Seller agree to cooperate in fulfilling their respective obligations
to
the Transmission Provider, NERC, regional reliability council, Electric
Reliability Organization, Regional Entity or Government Authority
related
to service provided under this
Agreement.
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IV. PRICE
Seller
shall
charge, and Buyer shall pay, for Buyer’s Power Supply Requirements the sum of
the following charges. The method for calculating this amount is set forth
in
Exhibit B.
A. Capacity
and
Energy Charges
Buyer
shall pay
Seller an amount up to, but not exceeding, the amount of money that Buyer bills
its retail customers taking Capacity and Energy from Buyer as the generation
charge, fuel cost adder and Rate Stabilization Charge under the Buyer’s Retail
Tariffs and Special Contracts as approved by the Public Utilities Commission
of
Ohio. As soon as practicable after the end of the month, Buyer shall provide
Seller load data, metered sales, and rates used for billing retail customers
in
sufficient detail for Seller to determine after the fact, the revenues due
Seller for Buyer’s Power Supply Requirements and delivered to the applicable
retail customer classes during a billing period. Buyer and Seller will abide
by
all applicable Code of Conduct provisions in exchanging this data, and such
data
will be considered Confidential Information under Section VII.C of this
Agreement.
B. Adjustments
to
Capacity and Energy Charges
In
addition to the charges specified above, Buyer will pay a monthly charge equal
to its pro rata share of the total cost of Energy purchased by Seller in the
Spot Market for delivery to the FirstEnergy Balancing Area in the previous
calendar month. The pro rata share of total cost of Energy payable by Buyer
shall be determined in accordance with Exhibit B.
Effective
Date: January 1, 2006
4
C. Power
Supply for
Buyer’s Existing Wholesale Contracts
During
the term of
this Agreement, Seller will supply sufficient Capacity and Energy to fulfill
Power supply obligations under Buyer’s wholesale contracts in effect on January
1, 2006. Buyer is responsible for scheduling and delivery of Power under such
wholesale contracts, as well as payment of any charges imposed by the
Transmission Provider for delivery of Power under the wholesale contracts.
Buyer
will pay Seller the amount billed by Buyer under its wholesale contracts for
Power supply, including, but not limited to, charges for demand Capacity,
Energy, or reserves. As soon as practicable after the end of the month, Buyer
shall provide Seller load data, metered sales, and rates used for billing
wholesale customers in sufficient detail for Seller to determine after the
fact,
the revenues due Seller for Buyer’s existing wholesale contracts.
D. Billing
and
Payment
Unless
otherwise
specifically agreed upon by the Parties, the calendar month shall be the
standard period for all invoices and payments under this Agreement. As soon
as
practicable after the end of each month, the Seller will render an invoice
to
Buyer for the amounts due for Power Supply Requirements for the preceding month.
The invoice will be provided in such detail as agreed by the Parties. Payment
shall be due and payable within ten days of receipt of the invoice or, if such
day is not a Business Day, then on the next Business Day. Buyer will make
payments by electronic funds transfer, or by other mutually agreeable method(s)
to the account designated by Seller. Any amounts not paid by the due date will
be deemed delinquent and will accrue interest at the Interest Rate until the
date of payment in full.
E. Records
Each
Party shall
keep complete and accurate records of its operations under this Agreement and
shall maintain such data as may be necessary to determine the reasonableness
and
accuracy of all relevant data, estimates, payments or invoices submitted by
or
to it hereunder. All records regarding this Agreement shall be maintained for
a
period of three years from the date of the invoice or payment, or such longer
period as may be required by law.
F. Audit
and
Adjustment Rights
Buyer
shall have
the right, at its own expense and during normal business hours, to audit the
accounts and records of Seller that reasonably relate to the provision of
service under this Agreement. If the audit reveals an inaccuracy in an invoice,
the necessary adjustment in such invoice and the payments therefor will be
promptly made. No adjustment will be made for any invoice or payment made more
than one year from rendition thereof. This provision shall survive the
termination of this Agreement for a period of one year from the date of
termination for the purpose of such invoice and payment objections. To the
extent that audited information includes Confidential Information, the Buyer
shall keep all such information confidential under Section VII.C.
Effective
Date: January 1, 2006
5
G. Section
205
Rights
The
rates for
service specified herein shall remain in effect for the Term of this Agreement,
and shall not be subject to change through application to the FERC pursuant
to
the provisions of Section 205 of the Federal Power Act absent the written
agreement of all Parties hereto.
V. METERING
Generation
metering
shall be installed, operated and maintained in accordance with the applicable
interconnection agreements between the generator, Transmission Owner and the
Transmission Provider. Metering between balancing areas shall be handled in
accordance with the practices established by the Transmission Provider. Retail
metering shall be provided in accordance with applicable state law. Nothing
in
this Agreement requires Seller or Buyer to install new metering
facilities.
VI.
NOTICES
All
notices,
requests, statements or payments shall be made as specified below. Notices
required to be in writing shall be delivered by letter, facsimile or other
documentary form. Notice by facsimile or hand delivery shall be deemed to have
been received by the close of the Business Day on which it was transmitted
or
hand delivered (unless transmitted or hand delivered after close in which case
it shall be deemed received at the close of the next Business day). Notice
by
overnight mail or courier shall be deemed to have been received two Business
Days after it was sent. A Party may change its addresses by providing notice
of
same in accordance herewith.
NOTICES
& CORRESPONDENCE:
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To
Seller: FirstEnergy
Solutions Corp
Director,
FES Back
▇▇▇▇▇▇
▇▇▇
▇▇▇▇▇ ▇▇▇▇
▇▇▇▇▇,
▇▇▇▇
▇▇▇▇▇
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To
Buyer:
FirstEnergy
Service Company
Vice
President
▇▇
▇▇▇▇▇ ▇▇▇▇
▇▇▇▇▇▇
▇▇▇▇▇,
▇▇▇▇
▇▇▇▇▇
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INVOICES
& PAYMENTS:
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To
Seller: FirstEnergy
Solutions Corp
Director,
FES Back
▇▇▇▇▇▇
▇▇▇
▇▇▇▇▇ ▇▇▇▇
▇▇▇▇▇,
▇▇▇▇
▇▇▇▇▇
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To
Buyer:
FirstEnergy
Service Company
Vice
President
▇▇
▇▇▇▇▇ ▇▇▇▇
▇▇▇▇▇▇
▇▇▇▇▇,
▇▇▇▇
▇▇▇▇▇
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SCHEDULING:
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To
Seller: FirstEnergy
Solutions Corp
Director,
FES Back
▇▇▇▇▇▇
▇▇▇
▇▇▇▇▇ ▇▇▇▇
▇▇▇▇▇,
▇▇▇▇
▇▇▇▇▇
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To
Buyer:
FirstEnergy
Service Company
Vice
President
▇▇
▇▇▇▇▇ ▇▇▇▇
▇▇▇▇▇▇
▇▇▇▇▇,
▇▇▇▇
▇▇▇▇▇
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Effective
Date: January 1, 2006
6
VII MISCELLANEOUS
A. Performance
Excused
If
either Party is rendered unable by an event of Force Majeure to carry out,
in
whole or part, its obligations hereunder, then, during the pendency of such
Force Majeure, but for no longer period, the Party affected by the event shall
be relieved of its obligations insofar as they are affected by Force Majeure.
The Party affected by an event of Force Majeure shall provide the other Party
with written notice setting forth the full details thereof as soon as
practicable after the occurrence of such event and shall take all reasonable
measures to mitigate or minimize the effects of such event of Force Majeure.
Nothing in this Section requires Seller to deliver, or Buyer to receive, Power
at Delivery Points other than those Delivery Points designated under this
Agreement, or relieves Buyer of its obligation to make payment under Section
IV
of this Agreement.
Force
Majeure shall
be defined as any cause beyond the reasonable control of, and not the result
of
negligence or the lack of diligence of, the Party claiming Force Majeure or
its
contractors or suppliers. It includes, without limitation, earthquake, storm,
lightning, flood, backwater caused by flood, fire, explosion, act of the public
enemy, epidemic, accident, failure of facilities, equipment or fuel supply,
acts
of God, war, riot, civil disturbances, strike, labor disturbances, labor or
material shortage, national emergency, restraint by court order or other public
authority or governmental agency, interruption of synchronous operation, or
other similar or dissimilar causes beyond the control of the Party affected,
which causes such Party could not have avoided by exercising good electric
operating practice. Nothing contained herein shall be construed to require
a
Party to settle any strike, lockout, work stoppage, or other industrial
disturbance or dispute in which it maybe involved or to take an appeal from
any
judicial, regulatory or administrative action.
B. Transfer
of
Title and Indemnification
Title
and risk of
loss related to the Power Supply Requirements shall transfer to the Buyer at
the
Delivery Points. Seller warrants that it will deliver the Power Supply
Requirements to Buyer free and clear of all liens, security interests, claims
and encumbrances or any interest therein or thereto by any person arising prior
to the Delivery Points. Each Party shall indemnify, defend and hold harmless
the
other Party from and against any claims arising from or out of any event,
circumstance, act or incident first occurring or existing during the period
when
control and title to the Power Supply Requirements is vested in the other
Party.
C. Confidentiality
Neither
Party shall
disclose to third parties Confidential Information obtained from the other
Party
pursuant to this Agreement except in order to comply with the requirements
of
FERC, NERC, Electric Reliability Organization, applicable regional reliability
council, Regional Entity, Regional Transmission Organization, or Government
Authority. Each Party shall use reasonable efforts to prevent or limit the
disclosure required to third parties under this Section.
Effective
Date: January 1, 2006
7
D. Further
Assurances
Subject
to the
terms and conditions of this Agreement, each of the Parties hereto will use
reasonable efforts to take, or cause to be taken, all action, and to do, or
cause to be done, all things necessary, proper or advisable under applicable
laws and regulations to consummate and effectuate the transactions contemplated
hereby.
E. Defined
Terms
Terms
not
specifically defined in this Agreement shall have the meaning given in the
applicable Transmission Provider OATT.
F. Assignment
No
assignment, pledge, or transfer of this Agreement shall be made by any Party
without the prior written consent of the other Party, which shall not be
unreasonably withheld. No prior written consent shall be required for (i) the
assignment, pledge or other transfer to another company or Affiliate in the
same
holding company system as the assignor, pledgor or transferor, or (ii) the
transfer, incident to a merger or consolidation with, or transfer of all (or
substantially all) of the assets of the transferor, to another person or
business entity; provided, however, that such assignee, pledgee, transferee
or
acquirer of such assets or the person with which it merges or into which it
consolidates assumes in writing all of the obligations of such Party hereunder
and provided, further, that either Party may, without the consent of the other
Party (and without relieving itself from liability hereunder), transfer, sell,
pledge, encumber or assign such Party’s rights to the accounts, revenues or
proceeds hereof in connection with any financing or other financial
arrangements.
G. Governing
Law
The
interpretation
and performance of this Agreement shall be according to and controlled by the
laws of the State of Ohio regardless of the laws that might otherwise govern
under applicable principles of conflicts of laws.
H. Counterparts
This
Agreement may
be executed in two or more counterparts and each such counterpart shall
constitute one and the same instrument.
I. Waiver
No
waiver by a Party of any default by the other Party shall be construed as a
waiver of any other default. Any waiver shall be effective only for the
particular event for which it is issued and shall not be deemed a waiver with
respect to any subsequent performance, default or matter.
Effective
Date: January 1, 2006
8
J. No
Third Party
Beneficiaries
This
Agreement
shall not impart any rights enforceable by any third party other than a
permitted successor or assignee bound to this Agreement.
K. Severability
Any
provision
declared or rendered unlawful by Government Authority or deemed unlawful because
of a statutory change will not otherwise affect the remaining lawful obligations
that arise under this Agreement.
L. Construction
The
term
“including” when used in this Agreement shall be by way of example only and
shall not be considered in any way to be a limitation. The headings used herein
are for convenience and reference purposes only.
IN
WITNESS
WHEREOF,
the Parties have
caused their duly authorized representatives to execute this Power Supply
Agreement on their behalf as of October 31, 2005.
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FirstEnergy
Solutions Corp.
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The
Cleveland
Electric Illuminating Company
Ohio
Edison
Company
The
Toledo
Edison Company
|
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By:______________________________
Senior
Vice
President,
FirstEnergy
Solutions Corp.
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By:____________________________________
Vice
President, FirstEnergy Service
Company
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Effective
Date: January 1, 2006
9
Exhibit
A
DEFINITIONS
In
addition to
terms defined elsewhere in this Agreement, the terms listed below are defined
as
follows:
Affiliate
means, with
respect to any person, any other person (other than an individual) that,
directly or indirectly, through one or more intermediaries, controls, or is
controlled by, or is under common control with, such person. For purposes of
the
foregoing definition, control means the direct or indirect ownership of more
than fifty percent (50%) of the outstanding capital stock or other equity
interests having ordinary voting power or ability to direct the affairs of
the
affiliate.
Ancillary
Services
means all services
as defined in the Transmission Provider OATT that Buyer must obtain to deliver
Capacity and Energy under this Agreement.
Buyer’s
Network Transmission Agreements
means the service
agreements for Network Integration Transmission Service and the Network
Operating Agreement among the Transmission Provider, The Cleveland Electric
Illuminating Company, Ohio Edison Company, Pennsylvania Power, and The Toledo
Edison Company
Buyer’s
Power Supply Requirements
means Capacity and
Energy, necessary to meet its Provider of Last Resort obligations under Ohio
law, as well as other power supply obligations incurred by law, contract or
tariff. Buyer’s Power Supply Requirements do not include deviations in the
amount of energy scheduled and consumed under this Agreement, including, but
not
limited to, energy imbalance, transmission losses, and congestion as defined
in
the Transmission Provider OATT.
Buyer’s
Retail Tariffs
mean all retail
tariffs of The Cleveland Electric Illuminating Company, Ohio Edison Company,
and
The Toledo Edison Company as approved by the PUCO.
Business
Day
means any day on
which Federal Reserve member banks in New York City are open for
business.
Capacity
means the resource
that produces electric Energy, measured in megawatts.
Code
of
Conduct
means statutes,
rules, regulations, or orders issued by a Government Authority that prohibit,
restrict, or condition the exchange of information between the regulated and
competitive business operations of Affiliates.
Confidential
Information
means any
confidential, proprietary, trade secret, critical energy infrastructure
information, customer account information, or commercially sensitive information
relating to the present or planned business of a Party that is supplied under
this Agreement, and is identified as confidential by the Party supplying the
information.
Effective
Date: January 1, 2006
10
Delivery
Point
means where
Capacity and Energy are supplied from generating facilities owned or controlled
by the Seller within the FirstEnergy Balancing Area at the point of
interconnection between the generating facility and the transmission facilities
of the Transmission Owner. Delivery Point means, where Capacity and Energy
are
supplied from generating resources outside of the FirstEnergy Balancing Area,
the interface between the transmission facilities of the adjacent balancing
area
and the transmission facilities of the Transmission Owner.
Electric
Reliability Organization
has the meaning
given in Section 215(a)(2) of the Federal Power Act.
Energy
means electric
energy delivered under this Agreement at three-phase, 60-hertz alternating
current measured in megawatt hours.
FERC
means The Federal
Energy Regulatory Commission or its regulatory successor.
FirstEnergy
Balancing Area
means the
collection of generation, transmission, and loads within the metered boundaries
of the FirstEnergy system where FirstEnergy maintains load resource balance.
Force
Majeure
has the meaning
given in Section VII.A.
Good
Utility Practice
means any of the
practices, methods and acts engaged in or approved by a significant portion
of
the electric utility industry during the relevant time period or any of the
practices, methods and acts which, in the exercise of reasonable judgment in
light of the facts known at the time the decision was made, could have been
expected to accomplish the desired result at a reasonable cost consistent with
good business practices, reliability, safety, and expedition. Good Utility
Practice includes compliance with the standards adopted by NERC, its applicable
regional councils, an Electric Reliability Organization or Regional Entity
as
approved by the FERC. Good Utility Practice is not intended to be limited to
the
optimum practice, method or act to the exclusion of all others, but rather
to be
acceptable practices, methods or acts, generally accepted in the region and
consistently adhered to by utilities in the region.
Government
Authority
means any federal,
state, local, municipal or other governmental entity, authority or agency,
department, board, court tribunal, regulatory commission, or other body, whether
legislative, judicial or executive, together or individually, exercising or
entitled to exercise any administrative, executive, judicial, legislative,
policy, regulatory or taxing authority or power over Buyer or
Seller.
Interest
Rate
means the lesser
of Prime Rate plus two percent and the maximum lawful rate permitted by
applicable law.
NERC
means The North
American Electric Reliability Council or any superceding organization with
responsibility for establishing reliability standards for the interstate grid.
Power
means Capacity
and/or Energy.
Effective
Date: January 1, 2006
11
Prime
Rate
means for any
date, the per annum rate of interest announced from time to time by Citibank,
N.A., as its prime rate for commercial loans, effective for such date as
established from time to time by such bank.
Rate
Stabilization Charge
means the
market-based charge as approved by the Public Utilities Commission of Ohio
to
compensate Buyer for the cost of reserving and supplying Provider of Last Resort
generation service to Ohio retail customers.
Regional
Entity
has the meaning
given in Section 215(a)(7) of the Federal Power Act.
Regional
Transmission Organization
has the meaning
given in Section 3(27) of the Federal Power Act.
Special
Contracts
mean contracts
between the Buyer and Ohio retail customers for the sales of Power and other
related services at prices that differ from the Buyer’s Retail
Tariffs.
Spot
Market
means the Day
Ahead or Real Time Energy Markets administered by the Regional Transmission
Organization or any other over-the-counter Energy market in which the
transaction date of the Energy purchase is within thirty calendar days of the
last day of the delivery period specified for the purchase.
Transmission
Owner
means the entity
that owns facilities used for the transmission of Power from the Seller’s
Generating Facilities.
Transmission
Provider
means the Midwest
Independent System Transmission Operator, Inc., or other utility, including
Regional Transmission Organizations, transmitting Power on behalf of Buyer
to or
from the Delivery Point(s) under this Agreement.
Transmission
Provider OATT
means the Open
Access Transmission Tariff, Open Access Transmission and Energy Markets Tariff,
or any other tariff of general applicability on file at the FERC under which
the
Transmission Provider offers transmission service.
Effective
Date: January 1, 2006
12
Exhibit
B
TOTAL
▇▇▇▇
CALCULATION
Total
▇▇▇▇ will not
exceed S [gn+
FCn +
RSCn
]+ ((BPS ÷ (BPS +
SPS)) * PP) + WCR
where:
|
n
|
=
|
Ohio
Edison,
Cleveland Electric Illuminating, Toledo Edison
|
|
g
|
=
|
the
generation charge, expressed in total dollars, billed to Buyer’s retail
customers which elect to receive generation service from
Buyer
|
|
FC
|
=
|
the
fuel
charge, if any, billed to Buyer’s retail customers which elect to receive
generation service from Buyer
|
|
RSC
|
=
|
the
Rate
Stabilization Charge, expressed in total dollars, billed to Buyer’s retail
customers which elect to receive generation service from
Buyer,
|
|
BPS
|
=
|
Buyer’s
Power
Supply Requirements as defined herein, expressed in mWh,
|
|
SPS
|
=
|
Seller’s
Power Supply Requirements, expressed in mWh, for customers served
within
the FirstEnergy Balancing Area,
|
|
PP
|
=
|
Spot
Market
purchases, expressed in total dollars, made by Seller which are
delivered
to the FirstEnergy Balancing Area.
|
|
WCR
|
=
|
Wholesale
Contract Revenues for Power Supply
|
Effective
Date: January 1, 2006
13