EXHIBIT 10.27.8
2000 AMENDATORY AGREEMENT
This Agreement, dated as of the ___ day of May, 2000, is entered
into by and between Connecticut Yankee Atomic Power Company
("Connecticut Yankee") and Central Vermont Public Service Corporation
("Purchaser").
For good and valuable consideration, the receipt of which is hereby
acknowledged, it is agreed as follows:
1. BASIC UNDERSTANDINGS
On April 7, 2000, upon direction from its Board of Directors,
Connecticut Yankee filed an Offer of Settlement in a proceeding before
the Federal Energy Regulatory Commission ("FERC"), Docket No.
ER97-913-000, to settle the claims related to the collections to be made
by Connecticut Yankee over the remaining terms of the Additional Power
Contract, between Connecticut Yankee and the Purchaser, dated as of
April 30, 1984 ("Additional Power Contract"), the 1987 Supplementary
Power Contract between Connecticut Yankee and the Purchaser, dated as of
April 1, 1987 ("1987 Supplementary Power Contract"), and the
December 4, 1996 Amendatory Agreement between Connecticut Yankee and
Purchaser, which amended the 1987 Supplementary Power Contract and the
Additional Power Contract in various respects (the "1996 Amendatory
Agreement"). The Offer of Settlement specifies that, if it is approved
by FERC, Connecticut Yankee will implement necessary amendments to
contracts between Connecticut Yankee and the Purchaser to effectuate the
provisions of the Offer of Settlement. Among the provisions of the
Offer of Settlement is a requirement that Connecticut Yankee abandon the
use of the net unit investment methodology for calculating collections
from its Purchasers for return on remaining equity. The new methodology
to be used for each monthly xxxx to a Purchaser is simply to multiply
the remaining equity balance times the monthly equivalent return on
equity allowed by FERC. The Offer of Settlement also provides that
funds previously collected by Connecticut Yankee for its pre-1983 spent
nuclear fuel disposal liability to the U.S. Department of Energy ("DOE")
and held in a segregated fund established pursuant to the 1987
Supplementary Power Contract, may be used to pay the costs of storing
spent nuclear fuel on-site until the DOE removes it. Finally, the Offer
of Settlement provides that Connecticut Yankee must make an
informational filing with FERC in advance of any acceleration of
recovery of unamortized investment as contemplated under the terms and
conditions of Section 3, Part D(iii) of the 1996 Amendatory Agreement.
In order to carry out the obligations undertaken in the Offer of
Settlement, Connecticut Yankee and the Purchaser have agreed (a) to
authorize the application of monies held in the segregated fund to meet
costs of storing spent nuclear fuel and associated high level
radioactive materials; (b) to change the methodology employed for
calculating collections for return on equity; and (c) to require an
advance informational filing be made with FERC prior to acceleration of
amortization.
2. PRIOR CONTRACTS PRESERVED
Except as expressly modified by this Agreement, the provisions of
the Additional Power Contract, the 1987 Supplementary Power Contract, as
amended by the 1996 Amendatory Agreement, as well as the 1996 Amendatory
Agreement, remain in full force and effect, recognizing that the
mutually accepted decision to shut down the Unit renders moot those
provisions which by their terms relate solely to continuing operation of
the Unit.
3. AMENDMENT OF ADDITIONAL POWER CONTRACT
A. The first paragraph of Section 7 of the Additional Power
Contract is hereby amended to read as follows:
With respect to each month commencing on or after the commencement
of the operative term of this contract, whether or not this
contract continues fully or partially in effect, the Purchaser will
pay Connecticut Yankee as deferred payment for the capacity and
output of the Unit provided to the Purchaser by Connecticut Yankee
prior to the permanent shutdown of the Unit on December 4, 1996, to
the extent not otherwise paid in accordance with the Power
Contract, but without duplication: an amount equal to the
Purchaser's entitlement percentage of the sum of (a) the Total
Decommissioning Costs for the month with respect to the Unit, plus
(b) Connecticut Yankee's total operating expenses for the month
with respect to the Unit, plus (c) an amount for operating income
as determined in accordance with this Section 7.
B. The second paragraph of Section 7 of the Additional Power
Contract is hereby deleted.
C. The third paragraph of Section 7 of the Additional Power
Contract is hereby deleted.
D. The fourth paragraph of Section 7 of the Additional Power
Contract is hereby deleted.
E. The sixth paragraph of Section 7 of the Additional Power
Contract is hereby deleted.
F. Subsection (iii) of the eighth paragraph of Section 7 of the
Additional Power Contract is amended by substituting the words
"remaining unamortized investment" for the words "net Unit investment".
G. Subsection (iii) of the eighth paragraph of Section 7 of the
Additional Power Contract is further amended by adding the following
sentence to the end thereof:
Notwithstanding anything herein to the contrary, Connecticut Yankee
shall make an informational filing with the Federal Energy
Regulatory Commission prior to accelerating collections under this
Paragraph.
H. The ninth paragraph of Section 7 of the Additional Power
Contract is hereby deleted.
I. Section 7 of the Additional Power Contract is amended by
adding to the end thereof the following paragraph:
As used in this Section 7, "operating income" for any month shall
mean the product of the equity investment, calculated as of the
last day of the preceding month, and one-twelfth of the latest
annual return on equity authorized for Connecticut Yankee by the
Federal Energy Regulatory Commission or any successor regulatory
agency.
4. AMENDMENT OF THE 1987 SUPPLEMENTARY POWER CONTRACT
A. Section 2 of the 1987 Supplementary Power Contract is hereby
deleted.
B. Section 8 of the 1987 Supplementary Power Contract is amended
by revising the last two sentences thereof to read as follows:
Funds previously collected by Connecticut Yankee from the Purchaser
for the purpose of disposing of prior spent nuclear fuel and
associated high level radioactive material shall also be paid into
any such segregated fund, which may, with the approval of the board
of directors of Connecticut Yankee, be combined with any trust
established under Section 5 of this agreement. Connecticut Yankee
further agrees that any funds collected from the Purchaser to meet
such disposal costs which are not used for that purpose, either
through payment of any amount due to a federal agency or other
entity that disposes of the spent nuclear fuel and associated high
level radioactive material or though payment of any costs
associated with storage of said fuel and material pending its
disposal, will be refunded to the Purchaser at the time final
payment of such disposal costs is made to the U.S. Department of
Energy.
C. Section 9 of the 1987 Supplementary Power Contract is hereby
deleted.
5. EFFECTIVE DATE
This Agreement shall become effective upon receipt by the Purchaser
of notice that Connecticut Yankee has entered into 2000 Amendatory
Agreements, as contemplated by Section 1 herein, with each of the other
Purchasers.
6. INTERPRETATION
The interpretation and performance of this Agreement shall be in
accordance with and controlled by the laws of the State of Connecticut.
7. ADDRESSES
Except as the parties may otherwise agree, any notice, request,
xxxx or other communication from one party to the other relating to this
Agreement, or the rights, obligations or performance of the parties
hereunder, shall be in writing and shall be effective upon delivery to
the other party. Any such communication shall be considered as duly
delivered when mailed to the respective post office address of the other
party shown following the signatures of such other party hereto, or such
other post office address as may be designated by written notice given
in the manner as provided in this Section.
8. CORPORATE OBLIGATIONS
This Agreement is the corporate act and obligation of the parties
hereto.
9. COUNTERPARTS
This Agreement may be executed in any number of counterparts and
each executed counterpart shall have the same force and effect as an
original instrument and as if all the parties to all of the counterparts
had signed the same instrument. Any signature page of this Agreement
may be detached from any counterpart without impairing the legal effect
of any signatures thereon, and may be attached to another counterpart of
this Agreement identical in form hereto but having attached to it one or
more signature pages.
IN WITNESS WHEREOF, the parties have executed this Amendatory
Agreement by their respective duly authorized officers as of the day and
year first named above.
CONNECTICUT YANKEE ATOMIC POWER COMPANY
By: ______________________________________
Xxxxxx X. Xxxxxx, Xx.,
Its Vice President and Treasurer
Address: 362 Injun Hollow Road,
East Hampton, Connecticut
CENTRAL VERMONT PUBLIC SERVICE CORPORATION
By: /s/ Xxxx X. Xxxxx
Its Senior Vice President,
Engineering & Operations
Address: 00 Xxxxx Xxxxxx
Xxxxxxx, Xxxxxxx
