Views of FIRM Sample Clauses

Views of FIRM. While FIRM supported the TMR solutions consistent with lowest costs for the system, it had some concerns with respect to the Valleyview TMR Agreement. In particular, FIRM noted that the calculation of supplemental payments based on a non-standard heat rate of 10 GJ/MWh was in excess of FIRM’s preferred standard LBC-SO heat rate of 7.5 GJ/MWh. Accordingly, FIRM supported conditional approval of the Valleyview TMR Agreement based on the lower heat rate. In response to EAL’s suggestion that ATCO Power might not agree to a lower heat rate without an adjustment to the LBC rate of $3/MWh, FIRM noted that generation-mode forecast hours were limited. Alternatively, FIRM suggested that the 10 GJ/MWh heat rate could be capped at 1% of the monthly hours in which the unit would be operated in power generation mode. In FIRM’s view, this condition would minimize the open-ended exposure to other system customers at the increased heat rate. FIRM expressed further concerns regarding replacement cost calculations and a comprehensive ATCO code of conduct to ensure non-discriminatory transactions. FIRM recommended utilizing market prices to ensure prudent costs, language to which effect could be included in the contract, which could also be made subject to ATCO’s code of conduct.
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Views of FIRM. NCC‌ FIRM/NCC submitted that ATCO’s 5% withholding on the affected service only was substantially less than the up to 12% penalty on the full monthly fees applicable to competitive outsourcers as noted in Schedule C to Xx. Xxxxxxxx’ evidence. FIRM/NCC suggested the problem with the holdback scenario was that it placed ATCO I-Tek in a position where it could recover the holdbacks, notwithstanding that it might not meet the prescribed service levels for some periods of time, whereas the benchmarked outsourcers could not recover their penalties. FIRM/NCC submitted that would require the benchmarking consultant to make an adjustment to the charges. FIRM/NCC submitted it was preferable to see more standard penalty provisions in order to mitigate any controversies with benchmarking methodologies as discussed in Exhibit 504 and as raised by Xx. Xxxxxxxx.
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