Common use of Conditions of Delivery Clause in Contracts

Conditions of Delivery. (a) It is recognized that Local Power Company and Qualified Producer, at no cost to TVA, shall under separate arrangements between Local Power Company and Qualified Producer provide a point of delivery (Delivery Point) for electric energy to be sold to TVA. Subject to (b) below, the Delivery Point for electric energy to be sold to TVA hereunder shall be the interconnection point of Qualified Producer's facilities to Local Power Company's facilities as determined in a separate agreement executed by the Qualified Producer and the Local Power Company to provide for the interconnection of the Production Facilities to Local Power Company’s electric system (Interconnection Agreement). Qualified Producer shall be responsible for maintaining any existing and necessary Interconnection Agreement and entering into any necessary and appropriate Interconnection Agreement for future expansions to the Production Facilities, at Qualified Producer’s sole cost and expense. Connection of the Qualified Producer’s and the Local Power Company’s facilities is subject to the Rules and Regulations of the Local Power Company. (b) For Production Facilities with a net production capacity of 250 kWs or less, no transmission screening by TVA will be performed, although TVA reserves the right to perform such screening should TVA deem it necessary. For Production Facilities with a net production capacity over 250 kWs, a transmission screening will be performed by TVA to determine system impacts. If (i) the Production Facilities fail such screening, or (ii) the Production Facilities have a net production capacity of more than 5 MVA, then a transmission study will be performed by TVA at Qualified Producer’s sole cost and expense. (c) It is expressly understood that Qualified Producer is responsible for the protection of the Production Facilities by providing the local protection scheme necessary to isolate the Production Facilities when the TVA power source is lost. Accordingly, Qualified Producer must provide and install, at its expense, any necessary protection and control devices for the Production Facilities so that the Production Facilities detects an islanding condition (a condition in which a generator continues to power a location even though electric power from the electric grid is no longer present) and trips or disconnects the Production Facilities from the connecting electric system in less than 10 cycles (0.1667 second).

Conditions of Delivery. (a) It is recognized that Local Power Company and Qualified Producer, at no cost to TVA, shall under separate arrangements between Local Power Company and Qualified Producer provide a point of delivery (Delivery Point) for electric energy to be sold to TVA. Subject to (b) below, the Delivery Point for electric energy to be sold to TVA hereunder shall be the interconnection point of Qualified Producer's facilities to Local Power Company's facilities as determined in a separate agreement executed by the Qualified Producer and the Local Power Company to provide for the interconnection of the Production Facilities to Local Power Company’s electric system (Interconnection Agreement). Qualified Producer shall be responsible for maintaining any existing and necessary Interconnection Agreement and entering into any necessary and appropriate Interconnection Agreement for future expansions to the Production Facilities, at Qualified Producer’s sole cost and expense. Connection of the Qualified Producer’s and the Local Power Company’s facilities is subject to the Rules and Regulations of the Local Power Company. (b) For Production Facilities with a net production capacity of 250 50 kWs or less, no transmission screening by TVA will be performed, although TVA reserves the right to perform such screening should TVA deem it necessary. For Production Facilities with a net production capacity over 250 50 kWs, a transmission screening will be performed by TVA to determine system impacts. If (i) the Production Facilities fail such screening, or (ii) the Production Facilities have a net production capacity of more than 5 MVA, then a transmission study will be performed by TVA at Qualified Producer’s sole cost and expense. (c) It is expressly understood that Qualified Producer is responsible for the protection of the Production Facilities by providing the local protection scheme necessary to isolate the Production Facilities when the TVA power source is lost. Accordingly, Qualified Producer must provide and install, at its expense, any necessary protection and control devices for the Production Facilities so that the Production Facilities detects an islanding condition (a condition in which a generator continues to power a location even though electric power from the electric grid is no longer present) and trips or disconnects the Production Facilities from the connecting electric system in less than 10 cycles (0.1667 second).