Common use of ELECTRICITY SUPPLY AGREEMENT Clause in Contracts

ELECTRICITY SUPPLY AGREEMENT. The effort to design a standard form of contract began as early as 1982. Participation was invited from the affected customers, the majority of whom formed a joint industry committee called the "Industrial Users" group to whom copies of the initial draft contract were provided. Subsequently, significant but sporadic discussion and negotiation over a period of several years ensued in an attempt to reach an agreement. In April 1989, B.C. Hydro produced its "Final Draft" and circulated it to all major Industrial customers for comment. This precipitated several rounds of further discussion during 1989 which resulted in an impasse over a number of both major and minor items. The major matters were B.C. Hydro's basic obligations respecting type of service to be provided, force majeure provisions, and liability and indemnity in the event of a failure by B.C. Hydro to supply electricity. On December 5, 1989, B.C. Hydro made a formal Application to the Commission for approval of a Standard Form Bulk Customer Electricity Supply Agreement ("Electricity Supply Agreement"), together with Tariff Sheets for Schedules 1821 and 1880. Coincident with its Application, B.C. Xxxxx took the position that, while a Commission hearing would probably be required to deal with major points of disagreement, it may be possible to resolve other issues with the assistance of Commission staff. By letter of March 12, 1990, Counsel for the Industrial Users adopted a similar stance to the effect that the three major areas of principle remaining unresolved would require a hearing. He also referred to secondary matters which he felt could be resolved with the assistance of Commission staff.

ELECTRICITY SUPPLY AGREEMENT. The effort to design a standard form of contract began as early as 1982. Participation was invited from the affected customers, the majority of whom formed a joint industry committee called the "Industrial Users" group to whom copies of the initial draft contract were provided. Subsequently, significant but sporadic discussion and negotiation over a period of several years ensued in an attempt to reach an agreement. In April 1989, B.C. Hydro produced its "Final Draft" and circulated it to all major Industrial customers for comment. This precipitated several rounds of further discussion during 1989 which resulted in an impasse over a number of both major and minor items. The major matters were B.C. Hydro's basic obligations respecting type of service to be provided, force majeure provisions, and liability and indemnity in the event of a failure by B.C. Hydro to supply electricity. On December 5, 1989, B.C. Hydro made a formal Application to the Commission for approval of a Standard Form Bulk Customer Electricity Supply Agreement ("Electricity Supply Agreement"), together with Tariff Sheets for Schedules 1821 and 1880. Coincident with its Application, B.C. Xxxxx Hydro took the position that, while a Commission hearing would probably be required to deal with major points of disagreement, it may be possible to resolve other issues with the assistance of Commission staff. By letter of March 12, 1990, Counsel for the Industrial Users adopted a similar stance to the effect that the three major areas of principle remaining unresolved would require a hearing. He also referred to secondary matters which he felt could be resolved with the assistance of Commission staff.

ELECTRICITY SUPPLY AGREEMENT. The effort to design a standard form of contract began as early as 1982. Participation was invited from the affected customers, the majority of whom formed a joint industry committee called the "Industrial Users" group to whom copies of the initial draft contract were provided. Subsequently, significant but sporadic discussion and negotiation over a period of several years ensued in an attempt to reach an agreement. In April 1989, B.C. Hydro produced its "Final Draft" and circulated it to all major Industrial customers for comment. This precipitated several rounds of further discussion during 1989 which resulted in an impasse over a number of both major and minor items. The major matters were B.C. Hydro's basic obligations respecting type of service to be provided, force majeure provisions, and liability and indemnity in the event of a failure by B.C. Hydro to supply electricity. On December 5, 1989, B.C. Hydro made a formal Application to the Commission for approval of a Standard Form Bulk Customer Electricity Supply Agreement ("Electricity Supply Agreement"), together with Tariff Sheets for Schedules 1821 and 1880. Coincident with its Application, B.C. X.X. Xxxxx took the position that, while a Commission hearing would probably be required to deal with major points of disagreement, it may be possible to resolve other issues with the assistance of Commission staff. By letter of March 12, 1990, Counsel for the Industrial Users adopted a similar stance to the effect that the three major areas of principle remaining unresolved would require a hearing. He also referred to secondary matters which he felt could be resolved with the assistance of Commission staff.