Common use of Initial Security Clause in Contracts

Initial Security. Initial security for Interconnection Customer’s obligations with respect to Transmission Provider’s Interconnection Facilities (including transmission line outage costs) and Network Upgrades must be provided by Interconnection Customer to Transmission Provider at least thirty (30) days prior to commencement of the construction of facilities in accordance with Articles 5.5.3, 5.6.4, and 11.5 of this Agreement. Based upon the estimated Construction and Payment Schedule set forth on page 4 of this Appendix B, the Interconnection Customer shall provide the Transmission Provider the initial security for Interconnection Customer’s obligations with respect to the Transmission Provider’s Interconnection Facilities and Network Upgrades in the amount of $1,696,000 no later than February 15, 2016. The provision of such security is consistent with Article 11.5 of the Agreement. Should a prior- queued request be withdrawn, terminated, suspended, or delayed, the Transmission Provider will notify Interconnection Customer of any additional security requirements, based on the prior-queued Construction and Payment Schedule set forth on page 4 of this Appendix B. If Interconnection Customer does not promptly pay its obligations with respect to the Transmission Provider’s Interconnection Facilities and/or Network Upgrades, Transmission Provider may exercise its rights and remedies with respect to the security therefor. The Transmission Provider’s Interconnection Facilities cost, the Network Upgrade costs, and/or the Construction and Payment Schedule may be subject to change if the Interconnection Customer does not meet the written notice to proceed deadline or the security deadlines set forth above. Furthermore, if the Agreement is suspended by the Interconnection Customer for any reason (e.g., Article 5.16), then additional Interconnection Studies and/or an amendment to the Agreement may be required.

Initial Security. Initial security security, in a form and amount acceptable to the Parties, for Interconnection Customer’s obligations with respect to Transmission Provider’s Interconnection Facilities (including transmission line outage costs) and Network Upgrades must be provided by Interconnection Customer to Transmission Provider at least thirty (30) days prior to commencement of the construction of facilities in accordance with Articles 5.5.3, 5.6.4, and 11.5 of this Agreement. Based upon the estimated Construction and Payment Schedule Transmission Provider’s Interconnection Facilities as set forth on page 4 of this in Appendix BA, and Interconnection Customer’s payment under the E&P Agreement for Transmission Provider’s Interconnection Facilities, the Interconnection Customer shall provide the Transmission Provider the initial security for Interconnection Customer’s obligations with respect to the Transmission Provider’s Interconnection Facilities and Network Upgrades in the amount of $1,696,000 455,000 no later than February 15July 1, 20162015. The provision of such security is consistent with Article 11.5 of the Agreement. Should a prior- queued request be withdrawn, terminated, suspended, or delayed, the Transmission Provider will notify Interconnection Customer of any additional security requirements, based on the prior-queued Construction and Payment Schedule set forth on page 4 of this Appendix B. If Interconnection Customer does not promptly pay its obligations with respect to the Transmission Provider’s Interconnection Facilities and/or Network UpgradesFacilities, Transmission Provider may exercise its rights and remedies with respect to the security therefor. Finally, upon receipt of final payment for (or upon Transmission Provider’s determination that Interconnection Customer is owed a refund based on) the Final Invoice, in accordance with Article 12.2, the Transmission Provider will release any remaining security associated with the Transmission Provider’s Interconnection Facilities. The Transmission Provider’s Interconnection Facilities cost, the Network Upgrade costs, costs and/or the Construction and Payment Schedule may be subject to change if the Interconnection Customer does not meet the written notice to proceed deadline or the security deadlines set forth above. Furthermore, if the Agreement is suspended by the Interconnection Customer for any reason (e.g., Article 5.16), then additional Interconnection Studies and/or an amendment to the Agreement may be required.

Initial Security. Initial security for Interconnection Customer’s obligations with respect to design, procurement, and construction of Transmission Provider’s Interconnection Facilities (including transmission line outage costs) and Network Upgrades must be provided by Interconnection Customer to Transmission Provider at least thirty (30) days prior to commencement of the design and procurement, installation, or construction of facilities in accordance with Articles 5.5.3, 5.6.4, and 11.5 of this Agreement. Based upon the estimated Construction and Payment Schedule set forth on page 4 of this Appendix Bbelow, the Interconnection Customer shall provide the Transmission Provider the initial security for Interconnection Customer’s obligations with respect to the Transmission Provider’s Interconnection Facilities design and Network Upgrades procurement in the amount of $1,696,000 1,400,000 no later than February 15May 29, 20162015. The provision of such security is consistent with Article 11.5 of Subsequently, the Agreement. Should a prior- queued request be withdrawn, terminated, suspended, or delayed, Interconnection Customer shall provide the Transmission Provider will notify Interconnection Customer the initial security for construction in the amount of any additional security requirements$2,398,000 no later than December 1, based on the prior-queued Construction and Payment Schedule set forth on page 4 of this Appendix B. If Interconnection Customer does not promptly pay its obligations with respect to the Transmission Provider’s Interconnection Facilities and/or Network Upgrades, Transmission Provider may exercise its rights and remedies with respect to the security therefor2015. The Transmission Provider’s Interconnection Facilities cost, the Network Upgrade costs, and/or the Construction and Payment Schedule may be subject to change if the Interconnection Customer does not meet the written notice to proceed deadline or the security deadlines set forth above. Furthermore, if the Agreement is suspended by the Interconnection Customer for any reason (e.g., Article 5.16), then additional Interconnection Studies and/or an amendment to the Agreement may be required.. Continuing security for the Interconnection Customer’s obligations under this Agreement for, among other things, operation, maintenance, repair, and replacement of Transmission Provider’s Interconnection Facilities (Article 10.5), potential tax liability (Article 5.17.3), and the Monthly Administration Charge (Appendix C, Section D), must be provided by Interconnection Customer at least thirty (30) days prior to the In-Service Date. Attachment Q (Creditworthiness Procedures) of the Transmission Provider’s Tariff shall apply to these continuing security obligations. Estimated construction schedule of the IC-340 Interconnecting Substation is based on a typical substation land acquisition schedule. Delays in land acquisition for the proposed IC-340 Interconnecting Substation site (such site being acceptable to GPC may delay completion of the substation. Condemnation proceedings for land acquisition may delay the construction schedule by an additional 200 days. With regard to scheduling the outage(s) necessary to interconnect the Generating Facility to the Transmission System and to construct the Network Upgrades set forth in Appendix A, Interconnection Customer shall coordinate with Transmission Provider in order to minimize the effect of the outage(s) on the electric system. In addition, delays to the interconnection of the Generating Facility or to the construction of Network Upgrades may occur if: