Common use of Generation Control Clause in Contracts

Generation Control. (a) Subject to Section 6.6(f), each Lessee/Owner Party is entitled at all times to its Pro Rata Share of the Available Net Generating Capability of the Unit and energy produced therefrom, and all ancillary services that the Unit is capable of producing. The Operating Agent shall keep the Lessee/Owner Parties advised, through simultaneous communications, of the Available Net Generating Capability and the ancillary services capability, and of any increase or decrease in the Available Net Generating Capability that will or may occur, or any known or suspected conditions that could cause such change. Operation of the Unit above its Net Generating Capability may be requested by a Lessee/Owner Party only in accordance with Section 6.3. Except as provided in Section 6.3, the maximum amount of energy during any hour that may be Scheduled by any Lessee/Owner Party from the Unit at the Point of Delivery shall be its respective Pro Rata Share of the Unit’s Available Net Generating Capability during that hour. Subject to the requirements of Section 6.5, each Lessee/Owner Party may Schedule any amount less than this maximum amount. The failure of a Lessee/Owner Party to Schedule its maximum amount of energy during any hour shall not permit any other Lessee/Owner Party to Schedule energy from the first Party’s Pro Rata Share of the Unit absent the consent and agreed-upon compensation of the first Party for the sale of such energy. (b) The Lessee/Owner Parties shall each have the same rights and obligations with respect to Scheduling and dispatch of the Unit. Detailed written protocols and procedures for coordination and communications regarding Scheduling shall be developed and updated pursuant to Section 3.3(a) above. (c) Each Lessee/Owner Party shall have the right to have its share of the output of Elm Road Unit 2 on automated generation control and/or Scheduled by automated electronic means to the balancing authority or energy control system designated by that Party and capable of absorbing the energy. Where a Lessee/Owner Party has elected to utilize such equipment, new or changed schedules shall go into effect immediately upon electronic notification by the Party through use of such equipment. Each Party utilizing electronic Scheduling equipment shall ensure that it operates in such a manner as to comply with the minimum and maximum Scheduling requirements established in this Article VI. All costs of installing, operating and maintaining electronic Scheduling equipment at Elm Road Unit 2 (and associated communications charges) shall be allocated based on the relative Pro Rata Shares of all Parties who utilize electronic Scheduling; provided, however, that a Party may elect to purchase, install, operate, and maintain its own communications equipment at Elm Road Unit 2, in which case it shall not be allocated any portion of other Parties’ costs of such equipment. To the extent practicable, the Scheduling procedures in Section 6.6(d) shall apply to instances when electronic Scheduling equipment fails. (d) In the event a Lessee/Owner Party is not using electronic Scheduling to receive its share of the output of Elm Road Unit 2, that Party shall Schedule hourly energy deliveries with the Unit’s control center prior to 12:00 noon (or such other Scheduling deadline convention imposed in the region) of the last Energy Scheduling Business Day prior to the date in which the schedule is to begin. The Operating Agent will use its best efforts to accommodate any subsequent schedule changes, subject to the operating constraints of the Unit. The Operating Agent will notify all Parties, by 7:00 AM of the last Energy Scheduling Business Day prior to the date in which a schedule is to begin, of the expected Available Net Generating Capability for each hour during the date(s) covered by the schedule. (e) In all events, the Operating Agent shall terminate or reduce, as appropriate, deliveries from the Unit to a Lessee/Owner Party hereunder at any time when an Applicable Transmission System Operator notifies the applicable Party or the Operating Agent that transmission service for the Party’s power and energy from the Unit is being interrupted or curtailed as permitted by the applicable transmission service tariffs or agreements. Procedures shall be established among the Parties and the Applicable Transmission System Operator(s) to implement this requirement so that operation of the Unit shall be adjusted as promptly as possible consistent with Prudent Utility Practice. (f) The Operating Agent shall at all times, subject only to the limitations in the next sentence, operate the Unit to deliver at the Point of Delivery to each Lessee/Owner Party its Scheduled amount of energy up to such Lessee/Owner Party’s Pro Rata Share of the output available from the Unit. The output available from the Unit (i.e., its Available Net Generating Capability) shall be limited only by scheduled outages, curtailments, Operating Emergencies, derates, operating constraints (e.g., start-up time and ramp rates), and, when necessary, for testing purposes. (g) Each Energy Scheduling Business Day, the Operating Agent shall provide an hourly log of each Party’s generation schedule and the Unit’s actual electric generation and capability for the previous day(s). The Operating Agent shall reconcile on a daily basis the dispatch of the Unit as Scheduled by each Party against the actual generation output for each Party. (h) In the event that the Applicable Transmission System Operator adopts rules and/or requirements that are inconsistent with the provisions of this Article VI, the Parties shall in good faith negotiate amendments to such provisions of this Agreement as are necessary and appropriate to take into account the new rules or requirements, while preserving to the maximum extent possible the Parties’ original intent and rights under this Agreement.

Generation Control. (a) Subject to Section 6.6(f), each Lessee/Owner Party is entitled at all times to its Pro Rata Share of the Available Net Generating Capability of the Unit and energy produced therefrom, and all ancillary services that the Unit is capable of producing. The Operating Agent shall keep the Lessee/Owner Parties advised, through simultaneous communications, of the Available Net Generating Capability and the ancillary services capability, and of any increase or decrease in the Available Net Generating Capability that will or may occur, or any known or suspected conditions that could cause such change. Operation of the Unit above its Net Generating Capability may be requested by a Lessee/Owner Party only in accordance with Section 6.3. Except as provided in Section 6.3, the maximum amount of energy during any hour that may be Scheduled by any Lessee/Owner Party from the Unit at the Point of Delivery shall be its respective Pro Rata Share of the Unit’s Available Net Generating Capability during that hour. Subject to the requirements of Section 6.5, each Lessee/Owner Party may Schedule any amount less than this maximum amount. The failure of a Lessee/Owner Party to Schedule its maximum amount of energy during any hour shall not permit any other Lessee/Owner Party to Schedule energy from the first Party’s Pro Rata Share of the Unit absent the consent and agreed-upon compensation of the first Party for the sale of such energy. (b) The Lessee/Owner Parties shall each have the same rights and obligations with respect to Scheduling and dispatch of the Unit. Detailed written protocols and procedures for coordination and communications regarding Scheduling shall be developed and updated pursuant to Section 3.3(a) above. (c) Each Lessee/Owner Party shall have the right to have its share of the output of Elm Road Unit 2 1 on automated generation control and/or Scheduled by automated electronic means to the balancing authority or energy control system designated by that Party and capable of absorbing the energy. Where a Lessee/Owner Party has elected to utilize such equipment, new or changed schedules shall go into effect immediately upon electronic notification by the Party through use of such equipment. Each Party utilizing electronic Scheduling equipment shall ensure that it operates in such a manner as to comply with the minimum and maximum Scheduling requirements established in this Article VI. All costs of installing, operating and maintaining electronic Scheduling equipment at Elm Road Unit 2 1 (and associated communications charges) shall be allocated based on the relative Pro Rata Shares of all Parties who utilize electronic Scheduling; provided, however, that a Party may elect to purchase, install, operate, and maintain its own communications equipment at Elm Road Unit 21, in which case it shall not be allocated any portion of other Parties’ costs of such equipment. To the extent practicable, the Scheduling procedures in Section 6.6(d) shall apply to instances when electronic Scheduling equipment fails. (d) In the event a Lessee/Owner Party is not using electronic Scheduling to receive its share of the output of Elm Road Unit 21, that Party shall Schedule hourly energy deliveries with the Unit’s control center prior to 12:00 noon (or such other Scheduling deadline convention imposed in the region) of the last Energy Scheduling Business Day prior to the date in which the schedule is to begin. The Operating Agent will use its best efforts to accommodate any subsequent schedule changes, subject to the operating constraints of the Unit. The Operating Agent will notify all Parties, by 7:00 AM of the last Energy Scheduling Business Day prior to the date in which a schedule is to begin, of the expected Available Net Generating Capability for each hour during the date(s) covered by the schedule. (e) In all events, the Operating Agent shall terminate or reduce, as appropriate, deliveries from the Unit to a Lessee/Owner Party hereunder at any time when an Applicable Transmission System Operator notifies the applicable Party or the Operating Agent that transmission service for the Party’s power and energy from the Unit is being interrupted or curtailed as permitted by the applicable transmission service tariffs or agreements. Procedures shall be established among the Parties and the Applicable Transmission System Operator(s) to implement this requirement so that operation of the Unit shall be adjusted as promptly as possible consistent with Prudent Utility Practice. (f) The Operating Agent shall at all times, subject only to the limitations in the next sentence, operate the Unit to deliver at the Point of Delivery to each Lessee/Owner Party its Scheduled amount of energy up to such Lessee/Owner Party’s Pro Rata Share of the output available from the Unit. The output available from the Unit (i.e., its Available Net Generating Capability) shall be limited only by scheduled outages, curtailments, Operating Emergencies, derates, operating constraints (e.g., start-up time and ramp rates), and, when necessary, for testing purposes. (g) Each Energy Scheduling Business Day, the Operating Agent shall provide an hourly log of each Party’s generation schedule and the Unit’s actual electric generation and capability for the previous day(s). The Operating Agent shall reconcile on a daily basis the dispatch of the Unit as Scheduled by each Party against the actual generation output for each Party. (h) In the event that the Applicable Transmission System Operator adopts rules and/or requirements that are inconsistent with the provisions of this Article VI, the Parties shall in good faith negotiate amendments to such provisions of this Agreement as are necessary and appropriate to take into account the new rules or requirements, while preserving to the maximum extent possible the Parties’ original intent and rights under this Agreement.