Power Sales Agreements means (1) that certain Power Sales Agreement, dated April 19, 2001, between EMMT and Homer City; (2) that certain Power Sales Agreement, dated April 19, 2001, between EMMT and Homer City; (3) that certain Power Sales Agreement, dated May 1, 2001, between EMMT and Homer City; and (4) that Power Sales Agreement, dated May 18, 2001, between EMMT and Homer City;
All ancillary services, energy and capacity that is sold pursuant to Spot Power Sales Agreements shall be sold to either (i) an Approved Capacity Purchaser or (ii) any Person who, after giving effect to any transaction, does not owe more than $25,000,000 in the aggregate in currently invoiced amounts to the Borrower.
See also "Summaries of Certain Documents - Summary of Certain Provisions of the Power Sales Agreements" in Appendix B hereto for the definition of certain terms used herein.
The Authority has entered into Power Sales Agreements with the California cities of Anaheim, Burbank, Cerritos, Colton, Glendale and Pasadena pursuant to which the Authority has sold 100% of its entitlement to capacity and energy in the Magnolia Project to such participants on a "take-or-pay" basis.
See "- Power Sales Agreements - Output Entitlement Shares, Output Cost Shares and Indenture Cost Shares of the Project Participants" below.
The effect of this reduction will be a corresponding reduction in the Indenture cost component of the Monthly Power Costs that are required to be paid by the Project Participants under the Power Sales Agreements.