Common use of Transmission Service Effects on Tax-Exempt Financing by LIPA Clause in Contracts

Transmission Service Effects on Tax-Exempt Financing by LIPA. This provision is applicable only to LIPA which has financed transmission facilities with the proceeds of LIPA’s tax-exempt bonds issued pursuant to the Internal Revenue Code. Notwithstanding any other provisions of the ISO OATT or the ISO Services Tariff, neither the ISO nor the Transmission Owner shall be required to provide transmission service to any Customer pursuant to an ISO Tariff if the provisions of such Transmission Service would result in loss of tax-exempt status of any tax-exempt bonds or impair LIPA’s ability to issue future tax exempt obligations. If, by virtue of an order issued by the Commission pursuant to Section 211 of the FPA, the ISO or a Transmission Owner is required to provide Transmission Service that would adversely affect the tax-exempt status of LIPA’s tax-exempt bonds or any other tax- exempt debt obligations, then the Customer receiving such Transmission Service will compensate LIPA for all costs, if any, associated with the loss of tax-exempt status of LIPA’s tax-exempt bonds on such other tax exempt obligations plus the normal costs of Transmission Service.

Transmission Service Effects on Tax-Exempt Financing by LIPA. ‌ This provision is applicable only to LIPA which has financed transmission facilities with the proceeds of LIPA’s tax-exempt bonds issued pursuant to the Internal Revenue Code. Notwithstanding any other provisions of the ISO OATT or the ISO Services Tariff, neither the ISO nor the Transmission Owner shall be required to provide transmission service to any Customer pursuant to an ISO Tariff if the provisions of such Transmission Service would result in loss of tax-exempt status of any tax-exempt bonds or impair LIPA’s ability to issue future tax exempt obligations. If, by virtue of an order issued by the Commission pursuant to Section 211 of the FPA, the ISO or a Transmission Owner is required to provide Transmission Service that would adversely affect the tax-exempt status of LIPA’s tax-exempt bonds or any other tax- exempt debt obligations, then the Customer receiving such Transmission Service will compensate LIPA for all costs, if any, associated with the loss of tax-exempt status of LIPA’s tax-exempt bonds on such other tax exempt obligations plus the normal costs of Transmission Service.