Common use of Separation of Functions Clause in Contracts

Separation of Functions. This Agreement is between (1) Seller and (2) Buyer (as defined herein). PG&E is required to maintain the separation of its transmission and merchant functions pursuant to FERC’s Standards of Conduct. Accordingly, the Parties acknowledge that the Parties have no rights against each other or obligations to each other under this Agreement with respect to any relationship between the Parties in which PG&E is acting in its capacity as an owner or provider of electrical interconnection or transmission service or as a Gas local distribution company. Thus, whether or not the Units are interconnected to electrical and/or gas transmission systems that are owned or operated by PG&E, Seller’s arrangements for interconnection and transmission must be made with its interconnecting transmission provider (which may be PG&E in its capacity as a transmission provider) and, except for setting forth the rights and obligations of the Seller to construct, and/or cause to be constructed, and maintain metering facilities, Electrical Interconnection Facilities, Transmission Upgrades [and Gas Interconnection Facilities] (in each case in accordance with the requirements of its interconnecting electric [or gas] transmission provider(s) or transmission owner(s), as applicable) and arrange for [supply and transportation of Gas from the Gas Delivery Point to the Units and] transmission of Energy and Other Products (to the extent applicable) to and at the Electrical Delivery Point, this Agreement conveys no rights or obligations with respect to electrical interconnection and transmission [or Gas interconnection or transportation]. If, in accordance with the applicable tariffs, rules, or agreements governing Seller’s arrangements for Transmission Upgrades [or upgrades to the Gas delivery system], Seller is entitled to receive a credit, repayment or other rights or privileges as a result of funding the Transmission Upgrades [or upgrades to the Gas delivery system], nothing in this Agreement shall impair or prohibit Seller from retaining those credits, repayments, rights or privileges for its use and benefit. Regardless of whether PG&E owns or operates the interconnecting transmission system, under no circumstances will PG&E in its capacity as a Buyer under this Agreement be responsible for Seller’s interconnection arrangements or costs nor any credit, repayment or other rights or privileges due to Seller as a result of its funding of the Transmission Upgrades [or upgrades to the Gas delivery system]. Moreover, Seller’s non-performance of any provision of this Agreement shall not be excused to any greater extent due to any action or inaction of PG&E in its capacity as an owner or provider of electrical interconnection or transmission service [or as a Gas LDC] than it would be if the non-performance were due to any action or inaction of a Person other than PG&E, even if the Agreement provides that Seller would be excused for its non-performance if the non-performance were due to an action or inaction of Buyer. [For facilities that are not gas-fired, omit the bracketed language.]

Separation of Functions. This Agreement is between (1) Seller and (2) Buyer (as defined herein). PG&E is required to maintain the separation of its transmission and merchant functions pursuant to FERC’s Standards of Conduct. Accordingly, the Parties acknowledge that the Parties have no rights against each other or obligations to each other under this Agreement with respect to any relationship between the Parties in which PG&E is acting in its capacity as an owner or provider of electrical interconnection or transmission service or as a Gas local distribution company. Thus, whether or not the Units are interconnected to electrical and/or gas transmission systems that are owned or operated by PG&E, Seller’s arrangements for interconnection and transmission must be made with its interconnecting transmission provider (which may be PG&E in its capacity as a transmission provider) and, except for setting forth the rights and obligations of the Seller to construct, and/or cause to be constructed, provide and maintain metering facilities, Electrical Interconnection Facilities, Transmission Upgrades [and Gas Interconnection Facilities] (in each case in accordance with the requirements of its interconnecting electric [or gas] transmission provider(s) or transmission owner(s), as applicable) and arrange for [supply and transportation of Gas from the Gas Delivery Point to the Units and] transmission of Energy and Other Products (to the extent applicable) to and at the Electrical Delivery Point, this Agreement conveys no rights or obligations with respect to electrical interconnection and transmission [or Gas interconnection or transportation]. If, in accordance with the applicable tariffs, rules, or agreements governing Seller’s arrangements for prior Transmission Upgrades [or upgrades to the Gas delivery system], Seller is entitled to receive a credit, repayment or other rights or privileges as a result of funding the Transmission Upgrades [or upgrades to the Gas delivery system], nothing in this Agreement shall impair or prohibit Seller from retaining those credits, repayments, rights or privileges for its use and benefit. Regardless of whether PG&E owns or operates the interconnecting transmission system, under no circumstances will PG&E in its capacity as a Buyer under this Agreement be responsible for Seller’s interconnection arrangements or costs nor any credit, repayment or other rights or privileges due to Seller as a result of its funding of the prior Transmission Upgrades [or upgrades to the Gas delivery system]. Moreover, Seller’s non-performance of any provision of this Agreement shall not be excused to any greater extent due to any action or inaction of PG&E in its capacity as an owner or provider of electrical interconnection or transmission service [or as a Gas LDC] than it would be if the non-performance were due to any action or inaction of a Person other than PG&E, even if the Agreement provides that Seller would be excused for its non-performance if the non-performance were due to an action or inaction of Buyer. [For facilities that are not gas-fired, omit the bracketed language.]