Common use of Applicable Governmental Authority Clause in Contracts

Applicable Governmental Authority. 179. Xcel argues that a deviation proposed by WECC for inclusion in the WECC Delegation Agreement (specifically, in the WECC Uniform Compliance Program at section 1.1.3), should be adopted in the NERC pro forma Uniform Compliance Program.107 WECC’s proposed deviation would act as a limitation on the entities that could be defined as the applicable governmental authority by providing that those entities: (i) have the authority to enforce reliability standards against a registered entity (the pro forma standard); and, (ii) (as proposed by WECC) are parties to “enforcement arrangements with the Regional Entity.”108 180. We reject Xcel’s request. WECC asserts that its change is appropriate because a Canadian governmental authority may require an enforcement arrangement with a Regional Entity. Because this circumstance would not, in general, apply to each Regional Entity, and no other cross-border Regional Entity has proposed a similar change or described the same requirement by Canadian authorities, WECC’s proposed definition, as applied generically, has not been shown to be appropriate or necessary.