Common use of Licensee's Right to Purchase Excess Capacity Clause in Contracts

Licensee's Right to Purchase Excess Capacity. During the Operational Period, Licensee may purchase additional transmission capacity on the System in an amount equal to the Intermediate Capacity ("Excess Capacity"). The terms of the Licensee Service Contract then in effect shall govern the provision and use of such Excess Capacity; provided, however, that (x) the price paid by Licensee for each activation of the Excess Capacity shall be set at (1)(A) if Operator sells transmission capacity to wholesale customers in the Market Area, the Wholesale Price, or (B) if Operator does not sell transmission capacity on a wholesale basis in the Market Area, eighty percent (80%) of the Retail Price, plus (2) only those taxes Operator is required by law to collect from Licensee, such as sales taxes); and (y) Operator may defer its provision of Excess Capacity to Licensee by providing notice to Licensee to the extent that Operator's then-existing use of Operator's Capacity (determined by the Oversubscription Level) would be curtailed by meeting Licensee's request for Excess Capacity. Such notice (a "Deferral Notice"), to be effective, shall state with specificity reasons for the deferral, shall state its maximum duration (which may not be in excess of three hundred and sixty-five (365) days), shall state the projected delivery date of portions of the Excess Capacity, if any, during the deferral period (including the size of the portions), and shall be delivered to Licensee within fifteen (15) days after Licensee's delivery of its request for Excess Capacity to Operator. If Licensee, following receipt of the Deferral Notice, still wishes to purchase the Excess Capacity after reviewing such schedule, Licensee shall agree to accept and pay for such Excess Capacity upon delivery, except that Licensee may specify the dates for the provision of service, which dates shall be no later than thirty (30) days after the delivery date(s) set forth in such Deferral Notice. Delivery dates specified in accordance with this SUBPARAGRAPH shall form a part of the Licensee Service Contract then in effect between Licensee and Operator for such Excess Capacity order.

Licensee's Right to Purchase Excess Capacity. During the Operational Period, Licensee may purchase additional transmission capacity on the System in an amount equal to the Intermediate Capacity ("Excess Capacity"). The terms of the Licensee Service Contract then in effect shall govern the provision and use of such Excess Capacity; provided, however, that (x) the price paid by Licensee for each activation of the Excess Capacity shall be set at (1)(A) if Operator sells transmission capacity to wholesale customers in the Market Area, the Wholesale Price, or (B) if Operator does not sell transmission capacity on a wholesale basis in the Market Area, eighty percent (80%) *** of the Retail Price, plus (2) only those taxes Operator is required by law to collect from Licensee, such as sales taxes); and (y) Operator may defer its provision of Excess Capacity to Licensee by providing notice to Licensee to the extent that Operator's then-existing use of Operator's Capacity (determined by the Oversubscription Level) would be curtailed by meeting Licensee's request for Excess Capacity. Such notice (a "Deferral Notice"), to be effective, shall state with specificity reasons for the deferral, shall state its maximum duration (which may not be in excess of three hundred and sixty-five (365) days), shall state the projected delivery date of portions of the Excess Capacity, if any, during the deferral period (including the size of the portions), and shall be delivered to Licensee within fifteen (15) days after Licensee's delivery of its request for Excess Capacity to Operator. If Licensee, following receipt of the Deferral Notice, still wishes to purchase the Excess Capacity after reviewing such schedule, Licensee shall agree to accept and pay for such Excess Capacity upon delivery, except that Licensee may specify the dates for the provision of service, which dates shall be no later than thirty (30) days after the delivery date(s) set forth in such Deferral Notice. Delivery dates specified in accordance with this SUBPARAGRAPH shall form a part of the Licensee Service Contract then in effect between Licensee and Operator for such Excess Capacity order.