Common use of Abandoned Plant Recovery Clause in Contracts

Abandoned Plant Recovery. Owner may request from FERC recovery of abandoned plant costs from Distribution Company in the event of the cancellation, termination and abandonment of the NECEC Transmission Line but (a) only if (i) due to the termination of this Agreement by either Party prior to the Commercial Operation Date, or (ii) due to the termination of this Agreement by Distribution Company following the Commercial Operation Date, or (iii) this Agreement is rendered null and void pursuant to Section 19.2(c), and (b) only if such cancellation, termination, and abandonment results from changes after the Effective Date in Massachusetts laws or regulations (including changes in the manner in which the law is applied by those acting under the color of Massachusetts laws or regulations) or changes in MDPU orders that invalidate this Agreement or the Distribution Company’s obligation to pay for Firm Transmission Service or to pay the Distribution Company Termination Payment under this Agreement. In no event will Owner be entitled to recover abandoned plant costs under any other circumstances or in the event that the cancellation, termination or abandonment was caused directly or indirectly by some act or failure to act on the part of Owner or HQUS or their respective affiliates, agents or contractors, including, without limitation, an Owner Default or a Default (as defined in the PPA) by HQUS under the PPA, and Owner agrees not to seek from FERC or any other agency or authority any treatment of abandonment costs inconsistent with this provision, in accordance with Section 2.2.2.6.2 of the request for proposals pursuant to which this Agreement has been executed. In any such case, Owner’s recovery shall be limited to the Proportionate Share of its costs related to the NECEC Transmission Line that were prudently incurred after March 31, 2017, provided that, for purposes of calculating the Proportionate Share, on or after the Commercial Operation Date the denominator of the “Proportionate Share” shall be 1,200 MW. Owner may only request recovery of abandoned plant costs up to the remaining amounts available under the cap on Distribution Company’s liability under Section 14.7.2. Distribution Company shall have the right to participate in such proceedings and to object to or seek to limit the recovery of any abandoned plant costs not expressly permitted to be recovered by Owner under this Section 14.5 or not consistent with FERC policy or precedent. Owner may not seek recovery under this Section 14.5 if it has been paid the Distribution Company Termination Payment.