Common use of Fuel Supply Arrangements Clause in Contracts

Fuel Supply Arrangements. By three months before the scheduled Commercial Operation Date of the Facility and thereafter each year three months before the anniversary of the commercial operation date of the Facility, the Seller shall provide to the Department a proposed Annual Fuel Plan detailing prices or pricing methodologies for the acquisition of fuel by the Seller on the Department’s account for the next Contract Year. By no later than two months before the scheduled Commercial Operation Date of the Facility and thereafter each year two months before the anniversary of the commercial operation date of the Facility, the Department shall notify the Seller if the Department accepts the Seller’s proposed Annual Fuel Plan (or a negotiated revision thereto). If such a plan is accepted, it shall become a “Seller Fuel Plan” for the acquisition of fuel by the Seller on the Department’s account. During the term of any the Seller Fuel Plan, the Seller shall maintain the Department's account within the monthly imbalance tolerance permitted by the appropriate local distribution company (“LDC”). The Seller shall be solely responsible for any fuel imbalance charges assessed by such LDC during the term of a Seller Fuel Plan. If no Seller Fuel Plan is accepted, the Department shall acquire fuel on its own account (the “Department Fuel Plan”). In the event of a Department Fuel Plan, gas must be delivered to the Seller at a mutually agreed upon point and the Department shall be solely responsible for any LDC charges incurred to deliver that gas to the Facility. Where the Department fails to deliver the required gas under a Department Fuel Plan, or where the Department notifies the Seller that it will not deliver such gas for any period under a Department Fuel Plan, the Seller shall be obligated to use its best efforts to deliver gas in sufficient quantity to allow the Seller to produce and deliver energy scheduled as provided hereunder. In such instance, on each such day, the Seller shall use best efforts to deliver gas the cost of which does not exceed that day's Gas Daily Large Package Midpoint + $.01/MMBtu. Any fuel imbalance charges assessed by the LDC resulting under a Department Fuel Plan shall be borne by the Department. Fuel imbalance charges resulting from Force Majeure in respect of the Facility shall be divided equally between the Department and the Seller. The Seller shall be solely responsible to acquire and pay for any and all gas used to generate energy other than the Department’s scheduled energy. It is the intent of the parties that natural gas be provided to the Facility at cost to the Department without xxxx-ups or additional charges. In no case shall any fuel management fees or fuel manager fees assessed to the Department exceed $.01/MMBtu. When the Department supplies gas to the Facility it shall have all rights and benefits as if it were acting as fuel manager. The Department shall not be subject to any more or additional costs or charges than if it had acted as fuel manager for the Facility, including, imbalance charges assessed within the period permitted for imbalances in the then-effective applicable local natural gas distribution utility tariff or month end imbalance tolerances permitted by such tariff and fees for services.

Fuel Supply Arrangements. By three months before the scheduled Commercial Operation Date of the Facility and thereafter each year three months before the anniversary of the commercial operation date Commercial Operation Date of the Facility, the Seller shall provide to the Department a proposed Annual Fuel Plan detailing prices or pricing methodologies for the acquisition of fuel by the Seller on the Department’s account for the next Contract Year. By no later than two months before the scheduled Commercial Operation Date of the Facility and thereafter each year two months before the anniversary of the commercial operation date Commercial Operation Date of the Facility, the Department shall notify the Seller if the Department accepts the Seller’s proposed Annual Fuel Plan (or a negotiated revision thereto). If such a plan is accepted, it shall become a “Seller Fuel Plan” for the acquisition of fuel by the Seller on the Department’s account. During the term of any the Seller Fuel Plan, the Seller shall maintain the Department's account within the monthly imbalance tolerance permitted by the appropriate local distribution company (“LDC”). The Seller shall be solely responsible for any fuel imbalance charges assessed by such LDC during the term of a Seller Fuel Plan. If no Seller Fuel Plan is accepted, the Department shall acquire fuel on its own account (the “Department Fuel Plan”). In the event of a Department Fuel Plan, gas must be delivered to the Seller at a mutually agreed upon point and the Department shall be solely responsible for any LDC charges incurred to deliver that gas to the Facility. Where the Department fails to deliver the required gas under a Department Fuel Plan, or where the Department notifies the Seller that it will not deliver such gas for any period under a Department Fuel Plan, the Seller shall be obligated to use its best efforts to deliver gas in sufficient quantity to allow the Seller to produce and deliver energy scheduled as provided hereunder. In such instance, on each such day, the Seller shall use best efforts to deliver gas the cost of which does not exceed that day's Gas Daily Large Package Midpoint + $.01/MMBtu. Any fuel imbalance charges assessed by the LDC resulting under a Department Fuel Plan shall be borne by the Department. Fuel imbalance charges resulting from Force Majeure in respect of the Facility shall be divided equally between the Department and the Seller. The Seller shall be solely responsible to acquire and pay for any and all gas used to generate energy other than the Department’s scheduled energy. It is the intent of the parties that natural gas be provided to the Facility at cost to the Department without xxxx-ups or additional charges. In no case shall any fuel management fees or fuel manager fees assessed to the Department exceed $.01/MMBtu. When the Department supplies gas to the Facility it shall have all rights and benefits as if it were acting as fuel manager. The Department shall not be subject to any more or additional costs or charges than if it had acted as fuel manager for the Facility, including, imbalance charges assessed within the period permitted for imbalances in the then-effective applicable local natural gas distribution utility tariff or month end imbalance tolerances permitted by such tariff and fees for services.

Fuel Supply Arrangements. By three months before the scheduled Commercial Operation Date of the Facility and thereafter each year three months before the anniversary of the commercial operation date of the Facility, the Seller shall provide to the Department a proposed Annual Fuel Plan detailing prices or pricing methodologies for the acquisition of fuel by the Seller on the Department’s account for the next Contract Year. By no later than two months before the scheduled Commercial Operation Date of the Facility and thereafter each year two months before the anniversary of the commercial operation date of the Facility, the Department shall notify the Seller if the Department accepts the Seller’s proposed Annual Fuel Plan (or a negotiated revision thereto). If such a plan is accepted, it shall become a “Seller Fuel Plan” for the acquisition of fuel by the Seller on the Department’s account. During the term of any the Seller Fuel Plan, the Seller shall maintain the Department's account within the monthly imbalance tolerance permitted by the appropriate local distribution company (“LDC”). The Seller shall be solely responsible for any fuel imbalance charges assessed by such LDC during the term of a Seller Fuel Plan. If no Seller Fuel Plan is accepted, the Department shall acquire fuel on its own account (the “Department Fuel Plan”). In the event of a Department Fuel Plan, gas must be delivered to the Seller at a the [ City Gate] or other mutually agreed upon point and the Department shall be solely responsible for any LDC charges incurred to deliver that gas to the Facility. Where the Department fails to deliver the required gas under a Department Fuel Plan, or where the Department notifies the Seller that it will not deliver such gas for any period under a Department Fuel Plan, the Seller shall be obligated to use its best efforts to deliver gas in sufficient quantity to allow the Seller to produce and deliver energy scheduled as provided hereunder. In such instance, on each such day, the Seller shall use best efforts to deliver gas the cost of which does not exceed that day's Gas Daily Large Package Midpoint + $.01/MMBtu. Any fuel imbalance charges assessed by the LDC resulting under a Department Fuel Plan shall be borne by the Department. Fuel imbalance charges resulting from Force Majeure in respect of the Facility shall be divided equally between the Department and the Seller. The Seller shall be solely responsible to acquire and pay for any and all gas used to generate energy other than the Department’s scheduled energy. It is the intent of the parties that natural gas be provided to the Facility at cost to the Department without xxxx-ups or additional charges. In no case shall any fuel management fees or fuel manager fees assessed to the Department exceed $.01/MMBtu. When the Department supplies gas to the Facility it shall have all rights and benefits as if it were acting as fuel manager. The Department shall not be subject to any more or additional costs or charges than if it had acted as fuel manager for the Facility, including, imbalance charges assessed within the period permitted for imbalances in the then-then- effective applicable local natural gas distribution utility tariff or month end imbalance tolerances permitted by such tariff and fees for services.