Front-End Transition Period. Front-End Transition Period Generally.
Front-End Transition Period. The Fuel Manager shall commence Front-End Transition Services on the FMA Effective Date (the “Front-End Transition Date”) and shall continue performing such services through the Day before the FM Services Target Date (the “Front-End Transition Period”). In the event that the Effective Date of the Amended and Restated OSA has not occurred by June 30, 2014 or such other date as may be agreed to by the parties to the Amended and Restated OSA and the Amended and Restated OSA is terminated, then this Agreement, following reimbursement by Buyer of all Milestones Payments for completed items and all transition expenses and costs incurred by Fuel Manager associated with any partially completed items between FMA Effective Date and the date on which this Agreement terminates pursuant to this Section 3.1, shall terminate on the termination date of the Amended and Restated OSA. The Fuel Manager shall perform Front-End Transition Services consistent with this Agreement, and as more fully set forth in the Front-End Transition Plan set forth in Appendix 1. The Fuel Manager shall be paid for such Front-End Transition Services in accordance with Section 4.1 and as more fully set forth in Appendix 2. If Fuel Manager’s provision of Front End Transition Services is prevented or delayed by a Force Majeure Event or by Buyer’s failure or inability to perform any of its obligations under this Agreement on a timely basis (each an “Excused Delay”), the Milestone Payments set forth in Table 2-1 of Appendix 2 shall be increased by 0.5 % for each Day that such delay event continues.
Front-End Transition Period. Upon the effective date of the agreement, the front-end transition period commences. The intent of this period is to provide time for LUMA to complete a host of administrative tasks and secure approvals not yet in place. The time is also to be spent by other parties to this contract and vendors working under separate agreements to secure approval of a financial restructuring agreement. The P3 Authority and LUMA is required to accomplish an extensive list of administrative benchmarks that must be secured or waived prior to the commencement of the operations and maintenance services period, also known as the initial term. The list 13 Public-Private Partnerships Authority. Puerto Rico Public-Private Partnership for the Electric Power Transmission and Distribution System. May 15, 2020, p. 3. 14 Public-Private Partnerships Authority, Puerto Rico Public-Private Partnership for the Electric Power Transmission and Distribution System. May 15, 2020, p. 4. 15 PREPA and Public-Private Partnerships Authority. Puerto Rico Transmission and Distribution System Operation and Maintenance Agreement. June 22, 2020, Article 2, Section 2.2(a), p. 34. 16 Ibid, pp. 34-35. 17 Ibid, Article 2, Section 2.3, p. 35. includes 22 areas such as: Management, administration and owner responsibilities, compliance with existing governmental prohibitions and any injunctions, pre- existing environmental conditions, initial budgets and rate orders, federal funding, remediation plans, Title III bankruptcy approvals and PREPA’s Reorganization Plan.18 XXXX is entitled to reimbursement for expenses during this period consistent with the completion of activities outlined in the front-end transition plan.19 The contract does not specify whether the list of governmental approvals for the PREPA reorganization includes legislative approval of some or all of the agreement. One area, changing the ownership structure to include new companies—GenCo and GridCo20—would appear to require an alteration of PREPA’s statute.21 The front-end transition fee includes reimbursement for time spent by LUMA employees consistent with the rates bid, as well as a fixed fee in the amount of $60 million annually and “all other reasonable and documented costs and expenses.”22
