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ATTACHMENT
VI
Standard
Offer Service Proposal - Contingencies
This Proposal
submitted by Bidder to provide standard offer service at the prices described
in Attachments I II through IV is made subject to the acceptance by the
Commission of the following conditions as expressly stated herein, without
modification except upon the written agreement of the Bidder. The Commission’s
order designating the Bidder as a standard offer provider (the “Provider”)
shall expressly incorporate each of the conditions stated herein (the
“Order”).
Upon
such acceptance and designation, the Bidder’s resulting rights and obligations
as Provider shall consist of (i) the applicable and material provisions of
Maine law and regulations, and provisions of the RFP; (ii) the Order,
incorporating the express conditions of this Proposal; (iii) the Standard Offer
Provider Standard Service Agreement described below; and (iv) the Security
Agreement described below (collectively, the “Standard Offer Obligation”). In the event of any conflict or
inconsistency between the terms and conditions of the Order and any other terms
and conditions described above, the terms and provisions of the Order shall
prevail and be given priority. Subject
to the foregoing, the several documents and instruments forming the Standard
Offer Obligation are to be taken as mutually explanatory of one another and in
the case of ambiguities or discrepancies within or between such parts the same
shall be explained and interpreted, if possible, in a manner which gives effect
to each part and which avoids or minimizes conflicts among such parts.
Contingencies:
1. Acceptance
by MPUC of Proposal. Acceptance by
the Maine Public Utilities Commission (the “MPUC”) of this Proposal by 4:00
p.m. Eastern Prevailing Time of _January 25, 2005 (the “Period”). The MPUC’s acceptance must be communicated
by phone (860-665-2414) to Christopher Jordan, within the Period. This Attachment VII containing a statement
of Contingencies shall be attached to and incorporated by reference into any
order issued by the MPUC stating the MPUC’s acceptance of this proposal.
Such
acceptance shall include the award to Bidder of up to 100% of either of the
following proposals.
Proposals
III. (as designated on
bid letter) BHE – 6 Months, Medium
Customers
IV. (as designated on
bid letter) BHE – 6 Months, Large
Customers
2. Standard
Offer Provider Standard Service Agreement.
Agreement in full by all parties, which are Bangor Hydro-Electric
Company and Central Maine Power Company (“the T&Ds”) and the Provider
(collectively, the “Parties”), and the MPUC to all terms and conditions of the
Standard Offer Provider Standard Service Agreement as amended pursuant to
current and ongoing discussion with the T&Ds and the MPUC (“Contract”). The
named T&D shall execute, deliver and perform the Contract between Bidder
and T&D in the form delivered to the Commission with the Proposal on or
before the Proposal Expiration Date.
3. Security. Acceptance by the
MPUC of the guarantee submitted with this Proposal as satisfying the conditions
of Chapter 301 of the MPUC Rules and Regulations and the RFP.
4. Confidentiality
of Bidder Identification. The Commission agrees not to reveal the
identity of the Bidder prior to the date which is two (2) weeks after the date
of the Order designating Bidder as Provider.
5. Increased Cost Associated With Change in Law. If the Maine legislature or the
Commission enacts, promulgates, adopts, alters, modifies or waivcs1
any law, rule or regulation that relates directly to the provision of standard
offer service or the provision of competitive electric service in general after the date hereof
(a "Change in Law") and such Change in Law
materially increases the Provider's cost to provide standard offer service,
Provider shall recover such increased costs in accordance with paragraph (a) or
paragraph (b) below, as applicable. Provider shall provide the Commission and,
if applicable, the Maine Legislature with a calculation of its increased costs as
soon as practicable after becoming aware
of a Change in Law or consideration by the
Commission or the Maine Legislature of a Change in Law.
(a) If the Commission finds that Provider's calculation reasonably reflects
its increased costs, the Commission shall increase the price of standard offer
service paid by retail standard offer customers at the time a Change in Law
becomes effective so that Provider recovers increased costs in accordance with
Provider's calculation.
(b) If the Commission does not find that Provider's calculation reasonably
reflects its increased costs, the Commission may increase the price of standard
offer service paid by retail customers such that the Provider recovers
increased costs in accordance with the
Commission's calculation. In this
event, Provider may invoke binding arbitration of the increased cost amount by
notice to the Commission. Any such
arbitration shall be conducted in accordance with the rules of the American
Arbitration Association, except as otherwise provided herein. A final arbitration decision shall be
rendered no later than ninety (90) days after the date on which Provider provides
notice to the Commission that it has invoked arbitration. .
Notwithstanding the foregoing, if upon receipt of
reasonable prior direct notification of a proposed Change in Law, the Provider
fails within the time prescribed in such notice to inform the Maine Legislature
or the Commission, pursuant to applicable procedures identified in such notice,
of the impact that a Change in Law under consideration would have on Provider's
cost to provide standard offer service, Provider shall not be entitled to
cause the Commission to undertake action with respect to its increased costs or
to engage in arbitration proceedings with respect thereto as provided in clause
(a) or (b) above.
6. Previous MPUC Orders.
Express affirmation and application to this Standard Offer Solicitation
process of the Advisory Opinion Regarding Rights and Obligations of Standard
Offer Providers as issued by the MPUC in Docket No. 2000-808 on November 28,
2000.