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Take care and keep in touch, Kay
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Nancy, Here are some come comments to the draft PPA: As a general note, we would have these goals: 1.
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Keep the PPA has streamlined as possible, putting as much as we can in the interconnection agreement.
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2.
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Minimize ties to specific unit.
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3.
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Maximize optionality, especially delivery points.
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4.
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Keep construction/ownership of the facility off the balance sheet.
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5.
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Signing the interconnection agreement must be simultaneous, or a CP.
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More specifically we would like to: Move start up/metering terms to interconnection agreement.
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Megawatts will probably change due to change in equipment.
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Bracket 192 for now.
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The capacity will change for summer and winter, also, specifics to be determined.
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Make sure we are protected from any liability caused by their delay.
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Comments on specific articles: Definition of emergency start up will belong in interconnection agreement.
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2.2 Expiration is Dec. 31, 2004; move bracketed language into interconnect.
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2.3 We need an out in case we don't commence construction/achieve commercial operation as a result of Buyer's action/inaction, and the term "breach" should include failure to timely perform any of buyer's obligations under any of the agreements.
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Any reason why we shouldn't want an extension if there is a delay due to action/inaction of any governmental authority?
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We can add change of law as an event which gives us schedule relief, but we might want to broaden the definition of change of law.
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Also, we don't have the site acquired yet, so we may need an out in case we encounter a problem, unless we will not sign this agreement before acquiring the site.
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3.4 Peak period is July and August.
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3.5 (b) Amount left over will depend on the summer and winter capacity.
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34,720
Might just leave blanks as placeholders.
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3.5 (c) Let's try for 4 hours notice.
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3.5 (d) suggest title "Start-Up Minimum Run Time".
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3.5 (e) add maximum of ___ per year.
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Need a minimum shut down time between start ups.
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34,725
4.6 Note: 3.3 refers to alternate sources and market sources; 4.6 refers to the wholesale market.
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34,726
We should pick a term, define it, and use it throughout.
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8.1 (c) replace "covenant" with "obligation", and follow with "(other than payment)".
dev42
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Default isn't a remedy, so there's a disconnect in that sentence.
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8.1 (d) remove "shall" and conform grammar in romanettes.
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8.3 refers to LD's, 4.8 but I didn't see any unless 4.8 is meant to encompass the concept.
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A little unclear to me.
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34,732
How is this supposed to work with 4.8?
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Is there any reason the damage waiver can't be absolute?
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Does the sole and exclusive language in 4.8 need to be conspicuous, or is it ok?
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9.1 Is the demand charge included in the invoice, or is it due without an invoice?
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10.1 On the third line, shouldn't the second "Seller" be "Buyer"?
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15.
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No mediation.
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16.1 Delete oral amendment language.
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Exhibits: A. Megawatts, heat rate to be confirmed.
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Heat rate believed to be 10,600.
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34,742
Deleted bracketed language about implied cost of fuel from alternate source energy.
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Start up costs: $500.
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Emergency start up to be addressed later.
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34,745
Could we schedule a conference call for Friday or Monday to discuss any questions/issues.
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Please let me know your availability.
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34,747
Thanks, Kay
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As requested.
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Please call if you need anything else.
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34,750
By the way, I have the original contracts in my office.
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Kay
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Nancy, Please call me about this.
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Thank you, Kay
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I'm available any time except 300-430 on Monday.
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Have a good weekend.
dev42
34,756
Hi guys, I suggest a brief meeting to discuss strategy before anything is sent to SW.
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Kay
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Anybody uncomfortable yet?
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Suzanne, please forward this to Jeff.
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My email is acting up again.
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Hi Jeff, I thought I would pass this email along to you since you've been working on some of the aspects of the Peoples deal.
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I don't want to interfer with whatever you have going on, but I'm happy to assist/participate in whatever way makes sense.
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Kay
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Good idea.
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I'll let him know.
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Marty, FYI.
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Sheila mentioned that Mitch is one of your guys.
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Kay
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Hi Kathy, Here are my suggestions/comments on Rev. 6 Definitions.
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I think we need a Business Day definition, and a search and replace of business days for Business Days.
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1.55 The definition of Performance Tests is really a definition of performance test reports.
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I think we need a definition that incorporates the tests listed on Exhibit E. The phrase installation option is used, but I didn't find a description of the installation option when I did a search.
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3.14.2.1 Is 6 months enough under this circumstances?
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Does it matter?
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4.3 Delete "Each".
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5.1 The amounts on Exhibit N don't match what I have on the last option agreement, and there isn't a description of any options, unless I'm interpretting it incorrectly.
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5.3 (ii) add "as provided in Section 5.5" 6.4 I may have missed this, but I didn't see where amounts owed by Seller would be charged interest if not timely paid.
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10.7 Are the roman numerals correct?.
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I am going to email you some new language for assignment and the buy back option.
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You should have it today.
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Do you have a redline on this rev 6 versus whatever the version was I read before?
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I'm skimming it and I want to make sure I don't skip something.
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Thanks, Kay
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Sounds good to me.
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34,785
Stan, I have one minor question.
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Is the Notice to Proceed Effective Date a set date, or is it x days following y event?
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I would expect to see language along the lines of "If notice to proceed is not given by the Notice to Proceed Effective Date, then...".
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I see the deleted language was something close to that, so maybe in the context of this EPC different terminology is used.
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Kay
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Hi Heather, Here's a form of LOI we can use.
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Nancy W. called and is ready to discuss the PPA.
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We can call her after our meeting, or before if you have the time.
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Kay
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Ok.
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So basically all bets are off if we don't give NTP by September whatever.
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