Common use of Early Termination by Customer Clause in Contracts

Early Termination by Customer. This section contains a series of rights the Town has to terminate the PPA and protect its interests. a) The Town may terminate the PPA if the developer has not submitted an interconnection agreement application to connect the solar array to the WMECo grid within 90 days of signing the PPA. (The developer has already submitted the interconnection application.) b) The Town will receive its savings under this PPA from Net Metering credits from WMECo. These are credits on the Town’s WMECo electricity bills for the electricity the solar system exports to WMECo. Prior to proceeding with interconnecting, the Town has the right to terminate the PPA if it feels the project will not be eligible for net metering credits, for example if enough other projects have been built in the WMECo service area to use up the production allocated to net metering facilities under state law. Also, this paragraph contains language about a newly announced regulatory system for queuing solar facility applications depending on when towns and developers file them. If this project is in the queue, but on a waiting list, the Town will wait 180 days to see if the queue clears, before exercising its right to terminate the PPA. c) The next four Town termination rights are designed to ensure that the developer keeps to a timely schedule for moving the project forward. The Town will not terminate the PPA if the landfill neighbor’s lawsuit against the project is still ongoing. The Town may terminate the PPA if the developer has not: i. Submitted its Special Permit to the Zoning Board of Appeals within 60 days of receiving notice from the Town to proceed with the project. ii. Filed an application for a Post Closure Use Permit with the DEP within 90 days of notice from the Town. iii. Submitted an application for MESA Project Review (review of the presence of any endangered species) within 90 days of notice from the Town or iv. Started construction by July 31, 2013 (this date may be held in abeyance, if the litigation is still pending). d) The Town may terminate the PPA if it exercises its right to purchase the solar array or if the developer defaults on the PPA.