Common use of Performance Assurance Clause in Contracts

Performance Assurance. “Performance Assurance” shall mean, at the election of T&D, either: (a) an irrevocable letter of credit issued by a U.S. office of a commercial bank or trust company organized under the laws of the United States (or any state or a political subdivision thereof) or a Canadian Schedule A Chartered Bank with a U.S. branch office or U.S. affiliate bank and, in either case, having a long term debt rating or deposit rating of at least (A) Baa1 from Xxxxx’x, and (B) BBB+ from Standard & Poor’s; or (b) so long as no T&D Downgrade Event has occurred with respect to the T&D Guarantor, a guaranty of the T&D obligations hereunder issued by the T&D Guarantor in substantially the same form as the guaranty delivered by the Provider to the T&D as of the date hereof pursuant to the requirements of Chapter 301 of the MPUC Rules and Regulations; (c) cash; or (d) such other Performance Assurance as is reasonably acceptable to the Provider, in each case in an amount set forth in Exhibit E; provided, that, to the extent that Performance Assurance delivered by T&D is in the form of cash and T&D makes any payment to Provider in advance of the date on which T&D is otherwise required to make payment to Provider pursuant to Section 8.3 hereof, T&D may request that Provider return such Performance Assurance to the extent of such early payment (and, unless T&D is in default under this Agreement, Provider shall so return such Performance Assurance within two (2) Business Days after such request); provided, further, however, that in the event that T&D ceases to make payments in advance of the date on which T&D is required to make payment to Provider pursuant to Section 8.3 hereof, within five (5) Business Days after request by Provider, T&D shall provide additional Performance Assurance to Provider, such that the aggregate amount of Performance Assurance held by Provider is equal to an amount set forth in Exhibit E for the applicable period.

Performance Assurance. “Performance Assurance” shall mean, at the election of T&D, either: (a) an irrevocable letter of credit issued by a U.S. office of a commercial bank or trust company organized under the laws of the United States (or any state or a political subdivision thereof) or a Canadian Schedule A Chartered Bank with a U.S. branch office or U.S. affiliate bank and, in either case, having a long term debt rating or deposit rating of at least (A) Baa1 from Xxxxx’x, and (B) BBB+ from Standard & Poor’s; or (b) so long as no T&D Downgrade Event has occurred with respect to the T&D Guarantor, a guaranty of the T&D obligations hereunder issued by the T&D Guarantor in substantially the same form as the guaranty delivered by the Provider to the T&D as of the date hereof pursuant to the requirements of Chapter 301 of the MPUC Rules and Regulations; (c) cash; or (d) such other Performance Assurance as is reasonably acceptable to the Provider, in each case in an amount set forth in the MPUC Order and shown in Exhibit E; provided, that, to the extent that Performance Assurance delivered by T&D is in the form of cash and T&D makes any payment to Provider in advance of the date on which T&D is otherwise required to make payment to Provider pursuant to Section 8.3 hereof, T&D may request that Provider return such Performance Assurance to the extent of such early payment (and, unless T&D is in default under this Agreement, Provider shall so return such Performance Assurance within two (2) Business Days after such request); provided, further, however, that in the event that T&D ceases to make payments in advance of the date on which T&D is required to make payment to Provider pursuant to Section 8.3 hereof, within five (5) Business Days after request by Provider, T&D shall provide additional Performance Assurance to Provider, such that the aggregate amount of Performance Assurance held by Provider is equal to an amount set forth in the MPUC Order and shown in Exhibit E for the applicable period.

Performance Assurance. “Performance Assurance” shall mean, at the election of T&D, ,either: (a) an irrevocable letter of credit issued by a U.S. office of a commercial bank or trust company organized under the laws of the United States (or any state or a political subdivision thereof) or a Canadian Schedule A Chartered Bank with a U.S. branch office or U.S. affiliate bank and, in either case, having a long term debt rating or deposit rating of at least (A) Baa1 from Xxxxx’x, and (B) BBB+ from Standard & Poor’s; or (b) so long as no T&D Downgrade Event has occurred with respect to the T&D Guarantor, a guaranty of the T&D obligations hereunder issued by the T&D Guarantor in substantially the same form as the guaranty delivered by the Provider to the T&D as of the date hereof pursuant to the requirements of Chapter 301 of the MPUC Rules and Regulations; (c) cash; or (d) such other Performance Assurance as is reasonably acceptable to the Provider, in each case in an amount set forth in Exhibit E; provided, that, to the extent that Performance Assurance delivered by T&D is in the form of cash and T&D makes any payment to Provider in advance of the date on which T&D is otherwise required to make payment to Provider pursuant to Section 8.3 hereof, T&D may request that Provider return such Performance Assurance to the extent of such early payment (and, unless T&D is in default under this Agreement, Provider shall so return such Performance Assurance within two (2) Business Days after such request); provided, further, however, that in the event that T&D ceases to make payments in advance of the date on which T&D is required to make payment to Provider pursuant to Section 8.3 hereof, within five (5) Business Days after request by Provider, T&D shall provide additional Performance Assurance to Provider, such that the aggregate amount of Performance Assurance held by Provider is equal to an amount set forth in Exhibit E for the applicable period.

Performance Assurance. “Performance Assurance” shall mean, at the election of T&D, either: (a) an irrevocable letter If, on any Business Day, the Exposure of credit issued by a U.S. office of a commercial bank or trust company organized under PSE&G exceeds the laws of the United States (or any state or a political subdivision thereof) or a Canadian Schedule A Chartered Bank with a U.S. branch office or U.S. affiliate bank andNJEA Threshold, in either case, having a long term debt rating or deposit rating of at least (A) Baa1 from Xxxxx’x, and (B) BBB+ from Standard & Poor’s; or (b) so long as no T&D Downgrade Event has occurred with respect to the T&D Guarantor, a guaranty of the T&D obligations hereunder issued by the T&D Guarantor in substantially the same form as the guaranty delivered by the Provider to the T&D as of the date hereof pursuant to the requirements of Chapter 301 of the MPUC Rules and Regulations; (c) cash; or (d) such other PSE&G may demand that NJEA deliver Performance Assurance as is reasonably acceptable to the Provider, in each case PSE&G in an amount set forth in Exhibit E; provided, that, equal to the extent that amount by which such Exposure exceeds the NJEA Threshold (such amount hereinafter the "Excess Amount"). NJEA grants to PSE&G a first priority security interest in any and all Performance Assurance delivered held by T&D is in the form such other party from time to time. If, as of cash and T&D makes any payment to Provider in advance of the date on which T&D is otherwise required to make payment to Provider pursuant to Section 8.3 hereofBusiness Day, T&D may request that Provider return such Performance Assurance to the extent of such early payment (and, unless T&D is in default under this Agreement, Provider shall so return such Performance Assurance within two (2) Business Days after such request); provided, further, however, that in the event that T&D ceases to make payments in advance of the date on which T&D is required to make payment to Provider pursuant to Section 8.3 hereof, within five (5) Business Days after request by Provider, T&D shall provide additional Performance Assurance to Provider, such that the aggregate amount of Performance Assurance held by Provider is PSE&G exceeds the Excess Amount by an amount greater than $250,000, PSE&G shall return Performance Assurance to NJEA in an amount such that, after giving effect to any such return, PSE&G holds Performance Assurance in an amount equal to not more than the sum of the Excess Amount plus $250,000, provided, however, that if PSE&G's Exposure is less than the NJEA Threshold, PSE&G shall return all Performance Assurance then held by it or its designee to NJEA. (b) The act of posting or returning of Performance Assurance may only be requested on a Business Day, and the party receiving such request, if obliged to post or return Performance Assurance pursuant to Section 9.6(a) above, shall post or return such Performance Assurance by the Transfer Deadline. All deposits of Performance Assurance shall be rounded up to the nearest integral multiple of $250,000 and all returns of Performance Assurance shall be rounded down to the nearest integral multiple of $250,000. (c) In the event that NJEA fails to post the Performance Assurance pursuant to this Section 9.6. by the Transfer Deadline, then an amount event of default shall be deemed to occur and PSE&G shall be entitled to suspend provision of Sales Service, Extended Gas Service, and Redelivery Service, as applicable, until such time that such default has been cured. (d) In the event that NJEA fails to pay amounts owed to PSE&G under this Agreement when due, PSE&G may setoff such amounts owed against amounts held by PSE&G as Performance Assurance and/or PSE&G may proceed to collect on any NJEA Guarantee(s); provided, however, that with respect to any such setoff, PSE&G shall provide NJEA with written notification of such setoff, and the obligations so setoff shall be deemed satisfied and discharged in full for all purposes under this Agreement. (e) In the event that PSE&G fails to comply with this Section 9.6. by complying with a proper request by NJEA pursuant to Section 9.6(a) to return amounts held by PSE&G as Performance Assurance, NJEA shall be entitled to set forth off any and all amounts due and owing under this Agreement against such Performance Assurance; provided, however, that with respect to any such setoff, NJEA shall provide PSE&G with written notification of such setoff, and the obligations so setoff shall be deemed discharged in Exhibit E full for all purposes under this Agreement. (f) The costs of posting and maintaining Performance Assurance in the form of a letter of credit shall be borne by NJEA. Performance Assurance held by PSE&G in the form of cash will accrue interest for the applicable periodbenefit of NJEA at the average Federal Funds Effective Rate for the period of time the funds are on deposit. The Federal Funds Effective Rate is published daily on the Federal Reserve website (xxxx://xxx.xxxxxxxxxxxxxx.xxx/releases/h15/update/). Upon receipt of NJEA's interest invoice, PSE&G will deliver to NJEA not later than the third Business Day after such receipt, all such interest accruing in the previous calendar month, except to the extent that any such transfer would result in PSE&G being entitled to a call for Performance Assurance from NJEA hereunder. (g) The credit requirements contained in this Section 9.6. shall continue in force and effect in the event this Agreement is assigned pursuant to Section 14.5. unless the parties agree otherwise in writing. Section 10.

Performance Assurance. “Performance Assurance” shall mean, at the election of T&D, either: (a) an irrevocable letter of credit issued by a U.S. office of a commercial bank or trust company organized under the laws of the United States (or any state or a political subdivision thereof) or a Canadian Schedule A Chartered Bank with a U.S. branch office or U.S. affiliate bank and, in either case, having a long term debt rating or deposit rating of at least (A) Baa1 from Xxxxx’xMoody’s, and (B) BBB+ from Standard & Poor’s; or (b) so long as no T&D Downgrade Event has occurred with respect to the T&D Guarantor, a guaranty of the T&D obligations hereunder issued by the T&D Guarantor in substantially the same form as the guaranty delivered by the Provider to the T&D as of the date hereof pursuant to the requirements of Chapter 301 of the MPUC Rules and Regulations; (c) cash; or (d) such other Performance Assurance as is reasonably acceptable to the Provider, in each case in an amount set forth in Exhibit E; provided, that, to the extent that Performance Assurance delivered by T&D is in the form of cash and T&D makes any payment to Provider in advance of the date on which T&D is otherwise required to make payment to Provider pursuant to Section 8.3 hereof, T&D may request that Provider return such Performance Assurance to the extent of such early payment (and, unless T&D is in default under this Agreement, Provider shall so return such Performance Assurance within two (2) Business Days after such request); provided, further, however, that in the event that T&D ceases to make payments in advance of the date on which T&D is required to make payment to Provider pursuant to Section 8.3 hereof, within five (5) Business Days after request by Provider, T&D shall provide additional Performance Assurance to Provider, such that the aggregate amount of Performance Assurance held by Provider is equal to an amount set forth in Exhibit E for the applicable period.