Wspp Agreements

Stand-by arrangements contain transaction-specific terms, including amendments to the basic agreement, which the parties mutually agree. Verbal confirmation agreements are allowed for transactions of less than one week. For transactions of one week or more, written confirmations are required. At the request of the Buyer or at the seller`s option, the Seller must provide written confirmation within five days of the request or agreement. The buyer has five days to respond. If the Buyer does not respond, the Seller`s written confirmation will be considered final. If seller does not provide requested written confirmation, Buyer may provide written confirmation within five days of the deadline for submission of written confirmation. If the seller does not respond within five working days, the buyer`s confirmation is considered final. If a party declares that it will not accept any amendment to the WSPP Agreement proposed by either party, such amendments will be rejected at any time. In general, the parties guarantee that they have the necessary authority to carry out the transactions and execute the terms of the agreements.

Each party also declares that it is solvent and that such representation will be maintained until notice to the contrary is given. Each quarter, each FERC-regulated vendor (electricity distributor and investor-owned utility) must submit price reports to FERC (filed by the WSPP) showing prices and margins for each transaction. Price data are public. Margin data is confidential for a period of one year. Stand-by arrangements of one year or less do not need to be submitted to FERC. FERC-regulated sellers who enter into stand-by arrangements of more than one year must submit these agreements to FERC. The parties to a transaction may, by mutual agreement, modify many of the key terms of the WSPP agreement for that transaction. Any such change must be specified in a stand-by agreement. The only provisions that can be amended are those that can be expressly amended in the WSPP Agreement. If a party has reasonable grounds to challenge the solvency or ability to pay of the other party, it may require the other party to provide a letter of credit, advance payment in cash, guarantee or guarantee, guarantee agreement or any other mutually acceptable method of securing performance. The second party has three working days to give such assurances; Failure to make such statements will be considered a default event resulting in the termination and liquidation of all WSPP transactions between the parties.

The obligations of the second party to provide a letter of credit, deposits, etc. is limited to the amount of damage that the party owes for non-performance; that is, the coverage. The Agreement also lists certain events that would qualify for reasonable insurance, including (1) assurance that a party will not perform under other contracts; (2) a party that exceeds a credit or negotiation limit; (3) the deterioration of the debt below the investment category; and (4) material changes in market prices that have a material impact on a party`s performance. Seller`s obligation is to sell and deliver to the place(s) of delivery in accordance with the WSPP Agreement and the applicable Stand-By Agreement. The Buyer is obliged to receive and purchase at the place of delivery in accordance with the WSPP Contract and the applicable Confirmation Contract. Ownership and risk of loss pass to the buyer at the place of delivery. Seller warrants good title, free from lien or garnishment, but disclaims all other warranties, including any warranties of merchantability or fitness for a particular purpose. Compensation of payments is not required, but allowed.

To facilitate the matching of entities wishing to create a network, a member may sign the WSPP clearing agreement (Exhibit A of the agreement). If his counterparty has signed the netting agreement, the parties become net. Members who have accepted the network will be posted on the WSPP homepage. Direct. The seller is liable for taxes up to the point of delivery. The buyer is liable for taxes from the place of delivery In general, force majeure is an event beyond the control of a party. The parties are required to exercise due diligence to overcome or avoid them. A claim for force majeure does not exist if a party`s non-performance is due to causes based on its own negligence or to causes that it could eliminate or correct.

Special provisions apply in the event of interruption of the transmission service. First, if, at the time of the transaction, the parties had agreed on a certain transmission route, had received a fixed transfer and that fixed transfer had been interrupted, that would be a case of force majeure. Second, if the parties have not agreed on a specific transport route and the fixed transfer of a party has been interrupted due to force majeure, the party that reserved the fixed transfer cannot declare a case of force majeure if it could receive alternative energy or means to deliver the energy to the place of delivery. Included to clarify that physical options under the WSPP agreement are exempt from cftc regulations. The terms and conditions are confidential, unless disclosure is required in a regulatory process or other litigation, is required to be made available to NERC or a Regional Reliability Board, or the parties agree to authorize disclosure […].

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