NYISO Agreements --> Service Agreements --> EPCA among NYISO, RG&E, and Hecate Energy Cider Solar
SERVICE AGREEMENT NO. 2856
SERVICE AGREEMENT NO. 2856
ENGINEERING, PROCUREMENT, AND CONSTRUCTION AGREEMENT
AMONG THE
NEW YORK INDEPENDENT SYSTEM OPERATOR, INC.
AND
ROCHESTER GAS AND ELECTRIC CORPORATION,
AND
HECATE ENERGY CIDER SOLAR, LLC
Dated as of October 1, 2024
(Sta. 255 Substation Upgrades for Cider Solar Project)
SERVICE AGREEMENT NO. 2856
TABLE OF CONTENTS
Page Number
ARTICLE 1. DEFINITIONS.........................................................................................................2
ARTICLE 2. EFFECTIVE DATE, TERM AND TERMINATION .............................................6
Effective Date..................................................................................................... 6
Term of Agreement............................................................................................ 6
Termination........................................................................................................ 7
Termination Costs.............................................................................................. 7
Survival. ............................................................................................................. 8
ARTICLE 3. EPC SERVICES ......................................................................................................8
Performance of EPC Services............................................................................ 8
General Conditions Applicable to Developer’s Performance of the EPC
Equipment Procurement................................................................................... 10
Construction Commencement.......................................................................... 10
Work Progress.................................................................................................. 10
Information Exchange...................................................................................... 10
Ownership of Affected System Upgrade Facilities.......................................... 10
Access Rights................................................................................................... 10
Lands of Other Property Owners. .................... Error! Bookmark not defined.
Permits. ............................................................................................................ 11
Suspension. ...................................................................................................... 11
Taxes. ............................................................................................................... 12
Tax Status......................................................................................................... 16
Modification..................................................................................................... 16
3.9
ARTICLE 4. TESTING AND INSPECTION.............................................................................17
Initial Testing and Modifications..................................................................... 17
Notice of Testing.............................................................................................. 17
ARTICLE 5. COMMUNICATIONS ..........................................................................................17
5.1 No Annexation. ................................................................................................ 17
ARTICLE 6. PERFORMANCE OBLIGATIONS......................................................................18
EPC Services and Cost Responsibilities. ......................................................... 18
Provision and Application of Security............................................................. 18
ARTICLE 7. INVOICE...............................................................................................................18
General............................................................................................................. 18
Refund of Remaining Security/Cash and Overpayment Amount.................... 19
Payment............................................................................................................ 19
Disputes............................................................................................................ 19
Regulatory Requirements................................................................................. 19
Governing Law................................................................................................. 19
ARTICLE 9. NOTICES...............................................................................................................20
General............................................................................................................. 20
Billings and Payments...................................................................................... 20
Alternative Forms of Notice. ........................................................................... 20
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SERVICE AGREEMENT NO. 2856
ARTICLE 10. FORCE MAJEURE ...............................................................................................20
General............................................................................................................. 20
ARTICLE 11. DEFAULT .............................................................................................................21
General............................................................................................................. 21
Right to Terminate. .......................................................................................... 21
Indemnity. ........................................................................................................ 21
No Consequential Damages............................................................................. 22
Insurance. ......................................................................................................... 23
ARTICLE 13. ASSIGNMENT......................................................................................................25
13.1 Assignment....................................................................................................... 25
ARTICLE 14. SEVERABILITY...................................................................................................26
ARTICLE 15. COMPARABILITY...............................................................................................26
ARTICLE 16. CONFIDENTIALITY............................................................................................26
Confidentiality. ................................................................................................ 26
Term................................................................................................................. 26
Confidential Information.................................................................................. 26
Scope................................................................................................................ 26
Release of Confidential Information................................................................ 27
Rights. .............................................................................................................. 27
No Warranties. ................................................................................................. 27
Standard of Care............................................................................................... 27
Order of Disclosure.......................................................................................... 27
Termination of Agreement............................................................................... 28
Remedies.......................................................................................................... 28
Disclosure to FERC, its Staff, or a State.......................................................... 28
Required Notices Upon Requests or Demands for Confidential Information. 29
ARTICLE 17. DEVELOPER AND AFFECTED SYSTEM OPERATOR NOTICES OF
ENVIRONMENTAL RELEASES................................................................................................29
ARTICLE 18. INFORMATION REQUIREMENT......................................................................29
Information Acquisition................................................................................... 29
Information Submission by Developer. ........................................................... 30
Information Supplementation........................................................................... 30
Information Access. ......................................................................................... 30
Reporting of Non-Force Majeure Events......................................................... 31
Audit Rights. .................................................................................................... 31
Audit Rights Periods. ....................................................................................... 31
Audit Results.................................................................................................... 31
ARTICLE 20. SUBCONTRACTORS ..........................................................................................32
General............................................................................................................. 32
Responsibility of Principal............................................................................... 32
No Limitation by Insurance. ............................................................................ 32
ARTICLE 21. DISPUTES.............................................................................................................32
Submission....................................................................................................... 32
Eternal Arbitration Procedures......................................................................... 32
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SERVICE AGREEMENT NO. 2856
Arbitration Decisions. ...................................................................................... 33
Costs................................................................................................................. 33
Termination...................................................................................................... 33
ARTICLE 22. REPRESENTATIONS, WARRANTIES, AND COVENANTS ..........................33
22.1 General............................................................................................................. 33
ARTICLE 23. MISCELLANEOUS ..............................................................................................34
Binding Effect.................................................................................................. 34
Conflicts........................................................................................................... 34
Rules of Interpretation...................................................................................... 34
Compliance. ..................................................................................................... 35
Joint and Several Obligations. ......................................................................... 35
Entire Agreement. ............................................................................................ 35
No Third Party Beneficiaries. .......................................................................... 35
Waiver.............................................................................................................. 36
Headings........................................................................................................... 36
Multiple Counterparts. ..................................................................................... 36
Amendment...................................................................................................... 36
Modification by the Parties.............................................................................. 36
Reservation of Rights....................................................................................... 36
No Partnership.................................................................................................. 37
Other Transmission Rights............................................................................... 37
Appendices
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SERVICE AGREEMENT NO. 2856
ENGINEERING, PROCUREMENT, AND CONSTRUCTION AGREEMENT
THIS ENGINEERING, PROCUREMENT, AND CONSTRUCTION AGREEMENT
(“Agreement”) is made and entered into this 1st day of October 2024, by and among Hecate
Energy Cider Solar, LLC, a limited liability company organized and existing under the laws of
the State of Delaware (“Developer”), Rochester Gas and Electric Corporation, a corporation
organized and existing under the laws of New York (“Affected System Operator”), and the New
York Independent System Operator, Inc., a not-for-profit corporation organized and existing
under the laws of the State of New York (“NYISO”). Developer, the NYISO, or Affected
System Operator each may be referred to as a “Party” or collectively referred to as the “Parties.”
RECITALS
WHEREAS, Developer is developing a 500 MW photovoltaic solar farm, identified as the Cider
Solar project with NYISO Interconnection Queue No. 811 (“Large Generating Facility”), that
will interconnect to certain transmission facilities of the New York Power Authority
(“Connecting Transmission Owner”) that are part of the New York State Transmission System
operated by the NYISO;
WHEREAS, the Large Generating Facility will interconnect at Connecting Transmission
Owner’s new Graham Substation, and the interconnection will have certain impacts on the
Affected System owned by Affected System Operator;
WHEREAS, the Large Generating Facility is participating in the Interconnection Facilities
Study for Class Year for 2021, and the Part 1 Study component of the Interconnection Facilities
Study has preliminarily: (i) identified certain System Upgrade Facilities to be constructed on the
Affected System owned by Affected System Owner to enable the Large Generating Facility to
interconnect reliably to the New York State Transmission System in a manner that meets the
NYISO Minimum Interconnection Standard (“Affected System Upgrade Facilities”), and (ii)
identified the costs identified for the Affected System Upgrade Facilities;
WHEREAS, Developer has entered into a Large Generator Interconnection Agreement among
the NYISO, Connecting Transmission Owner, and Developer concerning the interconnection of
the Large Generating Facility prior to the completion of the Interconnection Facilities Study for
Class Year 2021;
WHEREAS, in the Large Generator Interconnection Agreement, Developer has agreed to accept
its Project Cost Allocation and to post the related Security for the System Upgrade Facilities
identified for the Large Generating Facility in the Interconnection Facilities Study for Class Year
2021 in accordance with the requirements in the NYISO OATT, which facilities include the
Affected System Upgrade Facilities;
WHEREAS, Developer will accept, and will provide Security to the Affected System Operator
as part of the Interconnection Facilities Study process in Class Year 2021, to cover the final cost
estimate identified in the study for the Affected System Upgrade Facilities;
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WHEREAS, Developer and Affected System Operator desire to have Developer perform, and
Developer is willing to perform, the engineering, procurement, and construction services
required to construct the Affected System Upgrade Facilities (“EPC Services”) in accordance
with the terms and conditions hereinafter set forth;
WHEREAS, Developer, Affected System Operator, and the NYISO have agreed to enter into
this Agreement for the purpose of allocating the responsibilities for the performance and
oversight of the EPC Services required to construct the Affected System Upgrade Facilities;
NOW, THEREFORE, in consideration of and subject to the mutual covenants contained herein,
it is agreed:
ARTICLE 1. DEFINITIONS
Whenever used in this Agreement with initial capitalization, the following terms shall have the
meanings specified in this Article 1. Terms used in this Agreement with initial capitalization that
are not defined in this Article 1 shall have the meanings specified in Section 1 of the ISO OATT,
Section 30.1 of Attachment X of the ISO OATT, Section 25.1.2 of Attachment S of the ISO
OATT, or the body of this Agreement.
Affected System shall mean the electric system of the Affected System Operator that is affected
by the Large Generating Facility.
Affected System Operator shall have the meaning set forth in the introductory paragraph.
Affected System Upgrade Facilities shall have the meaning set forth in the recitals and shall
consist of the System Upgrade Facilities described in Appendix A of this Agreement.
Affiliate shall mean, with respect to a person or entity, any individual, corporation, partnership,
firm, joint venture, association, joint-stock company, trust or unincorporated organization,
directly or indirectly controlling, controlled by, or under common control with, such person or
entity. The term “control” shall mean the possession, directly or indirectly, of the power to
direct the management or policies of a person or an entity. A voting interest of ten percent or
more shall create a rebuttable presumption of control.
Applicable Laws and Regulations shall mean all duly promulgated applicable federal, state and
local laws, regulations, rules, ordinances, codes, decrees, judgments, directives, or judicial or
administrative orders, permits and other duly authorized actions of any Governmental Authority,
including but not limited to Environmental Law.
Applicable Reliability Councils shall mean the ERO, the NPCC and the NYSRC.
Applicable Reliability Standards shall mean the requirements and guidelines of the Applicable
Reliability Councils, and the Transmission District in which the Affected System Upgrade
Facilities will be constructed, as those requirements and guidelines are amended and modified
and in effect from time to time; provided that no Party shall waive its right to challenge the
applicability or validity of any requirement or guideline as applied to it in the context of this
Agreement.
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SERVICE AGREEMENT NO. 2856
ASO Estimated Total Costs shall be the costs for the engineering, procurement, and
construction of the Affected System Upgrade Facilities, which costs have been preliminary
identified in the Part 1 Study component of the Interconnection Facilities Study for Class Year
2021 and will be finalized in the completed Interconnection Facilities Study for Class Year 2021.
Breach shall mean the failure of a Party to perform or observe any material term or condition of
this Agreement.
Breaching Party shall mean a Party that is in Breach of this Agreement.
Business Day shall mean Monday through Friday, excluding federal holidays.
Calendar Day shall mean any day including Saturday, Sunday or a federal holiday.
Completion Date shall mean the date on which the Developer has completed the EPC Services,
as set forth in Appendix A.
Confidential Information shall mean any information that is defined as confidential by Error! R
eference source not found. of this Agreement.
Connecting Transmission Owner shall have the meaning set forth in the recitals.
Default shall mean the failure of a Party in Breach of this Agreement to cure such Breach in
accordance with Error! Reference source not found. of this Agreement.
Developer shall have the meaning set forth in the introductory paragraph.
Effective Date shall mean the date determined under Article Error! Reference source not f
ound. of this Agreement.
Electric Reliability Organization (“ERO”) shall mean the North American Electric Reliability
Corporation or its successor organization.
Environmental Law shall mean Applicable Laws and Regulations relating to pollution or
protection of the environment or natural resources.
EPC Services shall have the meaning set forth in the recitals and shall consist of the services
described in Appendix A.
Federal Power Act shall mean the Federal Power Act, as amended, 16 U.S.C. §§ 791a et seq.
(“FPA”).
FERC shall mean the Federal Energy Regulatory Commission (“Commission”) or its successor.
Force Majeure shall mean any act of God, labor disturbance, act of the public enemy, war,
insurrection, riot, fire, storm or flood, explosion, breakage or accident to machinery or
equipment, any order, regulation or restriction imposed by governmental, military or lawfully
established civilian authorities, or any other cause beyond a Party’s control. A Force Majeure
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event does not include acts of negligence or intentional wrongdoing by the Party claiming Force
Majeure.
Good Utility Practice shall mean any of the practices, methods and acts engaged in or approved
by a significant portion of the electric industry during the relevant time period, or any of the
practices, methods and acts which, in the exercise of reasonable judgment in light of the facts
known at the time the decision was made, could have been expected to accomplish the desired
result at a reasonable cost consistent with good business practices, reliability, safety and
expedition. Good Utility Practice is not intended to be limited to the optimum practice, method,
or act to the exclusion of all others, but rather to delineate acceptable practices, methods, or acts
generally accepted in the region.
Governmental Authority shall mean any federal, state, local or other governmental regulatory
or administrative agency, court, commission, department, board, or other governmental
subdivision, legislature, rulemaking board, tribunal, or other governmental authority having
jurisdiction over any of the Parties, their respective facilities, or the respective services they
provide, and exercising or entitled to exercise any administrative, executive, police, or taxing
authority or power; provided, however, that such term does not include Developer, NYISO,
Affected System Operator, Connecting Transmission Owner, or any Affiliate thereof.
Hazardous Substances shall mean any chemicals, materials or substances defined as or
included in the definition of “hazardous substances,” “hazardous wastes,” “hazardous materials,”
“hazardous constituents,” “restricted hazardous materials,” “extremely hazardous substances,”
“toxic substances,” “radioactive substances,” “contaminants,” “pollutants,” “toxic pollutants” or
words of similar meaning and regulatory effect under any applicable Environmental Law, or any
other chemical, material or substance, exposure to which is prohibited, limited or regulated by
any applicable Environmental Law.
In-Service Date shall mean the date upon which the Affected System Upgrade Facilities are
energized consistent with the provisions of this Agreement, notice of which must be provided to
the NYISO and Affected System Operator in the form of Appendix C.
Interconnection Facilities Study shall mean a study conducted by NYISO or a third party
consultant for the Developer to determine a list of facilities (including Connecting Transmission
Owner’s Attachment Facilities, Distribution Upgrades, System Upgrade Facilities and System
Deliverability Upgrades as identified in the Interconnection System Reliability Impact Study),
the cost of those facilities, and the time required to interconnect the Large Generating Facility
with the New York State Transmission System or with the Distribution System. The scope of
the study is defined in Section 30.8 of the Standard Large Facility Interconnection Procedures.
Interconnection Facilities Study Agreement (“Class Year Study Agreement”) shall mean the
form of agreement contained in Appendix 2 of the Standard Large Facility Interconnection
Procedures for conducting the Interconnection Facilities Study.
Interconnection Request shall mean a Developer’s request, in the form of Appendix 1 to the
Standard Large Facility Interconnection Procedures, in accordance with the Tariff, to
interconnect a new Large Generating Facility to the New York State Transmission System or to
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SERVICE AGREEMENT NO. 2856
the Distribution System, or to materially increase the capacity of, or make a material
modification to the operating characteristics of, an existing Large Generating Facility that is
interconnected with the New York State Transmission System or with the Distribution System.
IRS shall mean the Internal Revenue Service.
Large Generating Facility shall have the meaning set forth in the recitals.
Large Generator Interconnection Agreement (“LGIA”) shall mean the interconnection
agreement for the Large Generating Facility among the NYISO, Connecting Transmission
Owner, and Developer.
Milestones shall mean the milestones for the performance of the EPC Services, as set forth in
Appendix A.
New York State Transmission System shall mean the entire New York State electric
transmission system, which includes (i) the Transmission Facilities Under ISO Operational
Control; (ii) the Transmission Facilities Requiring ISO Notification; and (iii) all remaining
transmission facilities within the New York Control Area.
Notice of Dispute shall mean a written notice of a dispute or claim that arises out of or in
connection with this Agreement or its performance.
NPCC shall mean the Northeast Power Coordinating Council or its successor organization.
NYISO Minimum Interconnection Standard – The reliability standard that must be met by
any generation facility or Class Year Transmission Project that is subject to NYISO’s Large
Facility Interconnection Procedures in Attachment X to the ISO OATT or the NYISO’s Small
Generator Interconnection Procedures in Attachment Z, that is proposing to connect to the New
York State Transmission System or Distribution System, to obtain ERIS. The Minimum
Interconnection Standard is designed to ensure reliable access by the proposed project to the
New York State Transmission System or to the Distribution System. The Minimum
Interconnection Standard does not impose any deliverability test or deliverability requirement on
the proposed interconnection.
NYSRC shall mean the New York State Reliability Council or its successor organization.
Party or Parties shall have the meaning set forth in the introductory paragraph.
Reasonable Efforts shall mean, with respect to an action required to be attempted or taken by a
Party under this Agreement, efforts that are timely and consistent with Good Utility Practice and
are otherwise substantially equivalent to those a Party would use to protect its own interests.
Security shall mean a bond, irrevocable letter of credit, parent company guarantee or other form
of security from an entity with an investment grade rating, executed for the benefit of the
Affected System Operator, meeting the commercially reasonable requirements of the Affected
System Operator with which it is required to be posted pursuant to Article 6.2, and consistent
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SERVICE AGREEMENT NO. 2856
Services Tariff shall mean the NYISO Market Administration and Control Area Tariff, as filed
with the Commission, and as amended or supplemented from time to time, or any successor tariff
thereto.
Standard Large Facility Interconnection Procedures shall mean the interconnection
procedures applicable to an Interconnection Request pertaining to a Large Generating Facility
that are included in Attachment X of the ISO OATT.
System Upgrade Facilities shall mean the least costly configuration of commercially available
components of electrical equipment that can be used, consistent with Good Utility Practice and
Applicable Reliability Requirements, to make the modifications to the existing transmission
system that are required to maintain system reliability due to: (i) changes in the system,
including such changes as load growth and changes in load pattern, to be addressed in the form
of generic generation or transmission projects; and (ii) proposed interconnections. In the case of
proposed interconnection projects, System Upgrade Facilities are the modifications or additions
to the existing New York State Transmission System that are required for the proposed project to
connect reliably to the system in a manner that meets the NYISO Minimum Interconnection
Standard.
Tariff shall mean the NYISO Open Access Transmission Tariff (“OATT”), as filed with the
Commission, and as amended or supplemented from time to time, or any successor tariff.
ARTICLE 2. EFFECTIVE DATE, TERM AND TERMINATION
2.1
Effective Date.
This Agreement shall become effective upon the date of execution by the Parties, subject
to acceptance by FERC, or if filed unexecuted, upon the date specified by FERC. The NYISO
and Affected System Operator shall promptly file this Agreement with FERC upon execution.
Developer shall reasonably cooperate with the NYISO and Affected System Operator with
respect to the filing of this Agreement with FERC and provide any information reasonably
requested by the NYISO and Affected System Operator needed for such filing.
2.2
Term of Agreement.
Subject to the provisions of Article 0, this Agreement shall remain in effect until the later
of: (i) the Completion Date, and (ii) the date on which the final payment of all invoices issued
under this Agreement have been made pursuant to Articles Error! Reference source not found. a
nd 7.3 and any remaining Security has been released or refunded pursuant to Article 7.2.
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2.3
Termination.
2.3.1 Completion of Term of Agreement
This Agreement shall terminate upon the completion of the term of the Agreement
pursuant to Article Error! Reference source not found..
2.3.2 Written Notice.
This Agreement may be terminated: (i) by all Parties agreeing in writing to terminate this
Agreement, or (ii) by the NYISO and the Affected System Operator after giving Developer ten
(10) Calendar Days advanced written notice after the Large Generator Interconnection
Agreement for the Large Generating Facility among the NYISO, Connecting Transmission
Owner, and Developer has been terminated and such notice of termination has been accepted by
FERC.
2.3.3 Default.
Any Party may terminate this Agreement to the extent permitted under Error! Reference s
ource not found. and Error! Reference source not found..
2.3.4 Compliance.
Notwithstanding Articles 2.3.1, Error! Reference source not found., and 2.3.3, no t
ermination of this Agreement shall become effective until the Parties have complied with all
Applicable Laws and Regulations applicable to such termination, including the filing with FERC
of a notice of termination of this Agreement, which notice has been accepted for filing by FERC.
2.4
Termination Costs.
If this Agreement is terminated pursuant to Article Error! Reference source not found. a
bove, Developer shall be responsible for all costs that are the responsibility of Developer under
this Agreement that are incurred by Developer or the other Parties through the date the Parties
agree in writing to terminate this Agreement or through the date of Developer’s receipt of a
notice of termination. Such costs include any cancellation costs relating to orders or contracts
concerning the EPC Services or Affected System Upgrade Facilities. In the event of termination,
all Parties shall use commercially Reasonable Efforts to mitigate the costs, damages and charges
arising as a consequence of termination. Upon termination of this Agreement, unless otherwise
ordered or approved by FERC:
2.4.1 With respect to any portion of the EPC Services that have not yet been performed,
the Developer shall to the extent possible and with the Affected System Operator’s authorization,
cancel any pending orders of, or return, any materials or equipment for, or contracts for
construction of the Affected System Upgrade Facilities; provided that in the event the Affected
System Operator elects not to authorize such cancellation, Affected System Operator shall
assume all payment obligations with respect to such materials, equipment, and contracts, and
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SERVICE AGREEMENT NO. 2856
Developer shall deliver such material and equipment, and, if necessary, assign such contracts, to
Affected System Operator as soon as practicable, at Affected System Operator’s expense.
2.4.2 Developer may, at its option, retain any portion of such materials or equipment
that Affected System Operator chooses not to accept delivery of, in which case Developer shall
be responsible for all costs associated with procuring such materials or equipment.
2.4.3 With respect to any portion of the EPC Services already performed pursuant to
the terms of this Agreement, Developer shall be responsible for all costs associated with the
removal, relocation or other disposition or retirement of such related materials, equipment, or
facilities.
2.5
Survival.
This Agreement shall continue in effect after termination to the extent necessary to
provide for final billings and payments and for costs incurred hereunder; including billings and
payments pursuant to this Agreement; to permit the determination and enforcement of liability
and indemnification obligations arising from acts or events that occurred while this Agreement
was in effect; and to permit Developer to have access to the lands of the Affected System
Operator to disconnect, remove or salvage its own facilities and equipment.
ARTICLE 3. EPC SERVICES
3.1
Performance of EPC Services.
Developer shall perform the EPC Services, as set forth in Appendix A hereto, using
Reasonable Efforts to complete the EPC Services by the Milestone dates set forth in Appendix A
hereto. Developer shall not undertake any action which is inconsistent with the Affected System
Operator’s standard safety practices, its material and equipment specifications, its design criteria
and construction procedures, its labor agreements, and Applicable Laws and Regulations. In the
event Developer reasonably expects that it will not be able to complete the EPC Services by the
specified dates, Developer shall promptly provide written notice to the Affected System Operator
and NYISO, and shall undertake Reasonable Efforts to meet the earliest dates thereafter. The
NYISO has no responsibility, and shall have no liability, for the performance of any of the EPC
Services under this Agreement.
3.2
General Conditions Applicable to Developer’s Performance of the EPC Services.
Developer’s performance of the EPC Services is subject to the following conditions:
3.2.1 Developer shall engineer, procure equipment, and construct the Affected System
Upgrade Facilities (or portions thereof) using Good Utility Practice and using standards and
specifications provided in advance by the Affected System Operator as set forth in Appendix A;
3.2.2 Developer’s engineering, procurement and construction of the Affected System
Upgrade Facilities shall comply with all requirements of law to which Affected System
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Operator would be subject in the engineering, procurement or construction of the Affected
System Upgrade Facilities;
3.2.3 Affected System Operator shall review and approve the engineering design,
equipment acceptance tests, and the construction of the Affected System Upgrade Facilities;
3.2.4 Prior to commencement of construction, Developer shall provide Affected System
Operator and NYISO a schedule for construction of the Affected System Upgrade Facilities,
and shall promptly respond to requests for information from Affected System Operator or
NYISO;
3.2.5 At any time during construction, Affected System Operator shall have the right to
gain unrestricted access to the Affected System Upgrade Facilities and to conduct inspections of
the same;
3.2.6 At any time during construction, should any phase of the engineering, equipment
procurement, or construction of the Affected System Upgrade Facilities not meet the standards
and specifications provided by Affected System Operator, Developer shall be obligated to
remedy deficiencies in that portion of the Affected System Upgrade Facilities;
3.2.7 Developer shall indemnify Affected System Operator and NYISO for claims
arising from Developer’s construction of Affected System Upgrade Facilities under procedures
3.2.8 Developer shall transfer control of Affected System Upgrade Facilities to
Affected System Operator;
3.2.9 As soon as practicable after the Completion Date, unless the Developer and
Affected System Operator otherwise agree, Developer shall transfer ownership of Affected
System Upgrade Facilities to Affected System Operator;
3.2.10 Affected System Operator shall approve and Affected System Operator shall
accept for operation and maintenance the Affected System Upgrade Facilities to the extent
engineered, procured, and constructed in accordance with this Article 3.2;
3.2.11 Developer shall deliver to NYISO and Affected System Operator “as built”
drawings, information, and any other documents that are reasonably required by NYISO or
Affected System Operator to assure that the Affected System Upgrade Facilities are built to the
standards and specifications required by Affected System Operator; and
3.2.12 Developer shall pay Affected System Operator the agreed upon amount of
$548,000.00 for the Affected System Operator to execute the responsibilities enumerated to
Affected System Operator under Article 3.2. Affected System Operator shall invoice Developer
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for this total amount to be divided on a monthly basis pursuant to Error! Reference source not f
ound..
3.3
Equipment Procurement.
Developer shall commence design of the Affected System Upgrade Facilities and procure
necessary equipment in accordance with the Milestones set forth in Appendix A.
3.4
Construction Commencement.
Developer shall commence construction of the Affected System Upgrade Facilities in
accordance with the Milestones set forth in Appendix A, which shall provide for the
commencement of construction as soon as practicable after the following additional conditions
are satisfied:
3.4.1 Approval of the appropriate Governmental Authority has been obtained, to the
extent required, for the construction of a discrete aspect of the Affected System Upgrade
Facilities; and
3.4.2 Necessary real property rights and rights-of-way have been obtained, to the extent
required, for the construction of a discrete aspect of the Affected System Upgrade Facilities.
3.5
Work Progress.
Developer will keep the Affected System Operator and NYISO advised periodically as to
the progress of its respective design, procurement and construction efforts. Affected System
Operator or NYISO may, at any time, request a progress report from Developer.
3.6
Information Exchange.
As soon as reasonably practicable after the Effective Date, Developer and Affected
System Operator shall exchange information, and provide NYISO the same information,
regarding the design of the Affected System Upgrade Facilities and compatibility of the Affected
System Upgrade Facilities with the New York State Transmission System, and shall work
diligently and in good faith to make any necessary design changes. Developer shall inform the
Affected System Operator and NYISO of any termination of the Large Generator
Interconnection Agreement for the Large Generating Facility within ten (10) days of the
termination of the Large Generator Interconnection Agreement.
3.7
Ownership of Affected System Upgrade Facilities.
Affected System Operator shall own the Affected System Upgrade Facilities.
Access Rights.
3.8
Upon reasonable notice and supervision by the Granting Party, and subject to any
required or necessary regulatory approvals, either the Affected System Operator or Developer
(“Granting Party”) shall furnish to the other of those two Parties or the NYISO (“Access Party”)
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at no cost any rights of use, licenses, rights of way and easements with respect to lands owned or
controlled by the Granting Party, its agents (if allowed under the applicable agency agreement),
or any Affiliate, that are necessary to enable the Access Party to obtain ingress and egress needed
for the performance of the EPC Services, including ingress or egress to construct, repair, test (or
witness testing), inspect, replace or remove the Affected System Upgrade Facilities. In
exercising such licenses, rights of way and easements, the Access Party shall not unreasonably
disrupt or interfere with normal operation of the Granting Party’s business and shall adhere to the
safety rules and procedures established in advance, as may be changed from time to time, by the
Granting Party and provided to the Access Party. The Access Party shall indemnify the Granting
Party against all claims of injury or damage from third parties resulting from the exercise of the
access rights provided for herein.
3.9
Reserved.
3.10
Permits.
NYISO, Developer, and Affected System Operator shall cooperate with each other in
good faith in obtaining all permits, licenses and authorizations that are necessary to accomplish
the EPC Services in compliance with Applicable Laws and Regulations. With respect to this
paragraph, Affected System Operator shall provide permitting assistance to the Developer
comparable to that provided to the Affected System Operator’s own, or an Affiliate’s generation,
if any.
3.11
Suspension.
Developer reserves the right, upon written notice to Affected System Operator and
NYISO, to suspend at any time all work associated with the construction and installation of the
Affected System Upgrade Facilities required for only that Developer’s Large Generating Facility
with the condition that the New York State Transmission System shall be left in a safe and
reliable condition in accordance with Good Utility Practice and the safety and reliability criteria
of Affected System Operator and NYISO. In such event, Developer shall be responsible for all
reasonable and necessary costs and/or obligations in accordance with Attachment S to the ISO
OATT including those which Affected System Operator (i) has incurred pursuant to this
Agreement prior to the suspension and (ii) incurs in suspending such work, including any costs
incurred to perform such work as may be necessary to ensure the safety of persons and property
and the integrity of the New York State Transmission System during such suspension and, if
applicable, any costs incurred in connection with the cancellation or suspension of material,
equipment and labor contracts which Affected System Operator cannot reasonably avoid;
provided, however, that prior to canceling or suspending any such material, equipment or labor
contract, Affected System Operator shall obtain Developer’s authorization to do so.
Affected System Operator shall invoice Developer for such costs pursuant to Error! R
eference source not found. and shall use due diligence to minimize its costs. In the event
Developer suspends work required under this Agreement pursuant to this Article 3.11, and does
not recommence the work required under this Agreement on or before the expiration of three (3)
years following commencement of such suspension, this Agreement shall be deemed terminated.
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SERVICE AGREEMENT NO. 2856
The three-year period shall begin on the date the suspension is requested, or the date of the
written notice to Affected System Operator and NYISO, if no effective date is specified.
3.12
Taxes.
3.12.1 Developer Payments Not Taxable.
The Developer and Affected System Operator intend that all payments or property
transfers made by Developer to Affected System Operator for the installation of the Affected
System Upgrade Facilities shall be non-taxable, either as contributions to capital, or as an
advance, in accordance with the Internal Revenue Code and any applicable state income tax laws
and shall not be taxable as contributions in aid of construction or otherwise under the Internal
Revenue Code and any applicable state income tax laws.
3.12.2
Representations and Covenants.
In accordance with IRS Notice 2001-82 and IRS Notice 88-129, Developer represents
and covenants that (i) ownership of the electricity generated at the Developer’s Large Generating
Facility will pass to another party prior to the transmission of the electricity on the New York
State Transmission System, (ii) for income tax purposes, the amount of any payments and the
cost of any property transferred to Affected System Operator for the Affected System Upgrade
Facilities will be capitalized by Developer as an intangible asset and recovered using the straight-
line method over a useful life of twenty (20) years, and (iii) any portion of the Affected System
Upgrade Facilities that is a “dual-use intertie,” within the meaning of IRS Notice 88-129, is
reasonably expected to carry only a de minimis amount of electricity in the direction of the Large
Generating Facility. For this purpose, “de minimis amount” means no more than 5 percent of the
total power flows in both directions, calculated in accordance with the “5 percent test” set forth
in IRS Notice 88-129. This is not intended to be an exclusive list of the relevant conditions that
must be met to conform to IRS requirements for non-taxable treatment.
At Affected System Operator’s request, Developer shall provide Affected System
Operator with a report from an independent engineer confirming its representation in clause (iii),
above. Affected System Operator represents and covenants that the cost of the Affected System
Upgrade Facilities paid for by Developer will have no net effect on the base upon which rates are
determined.
3.12.3 Indemnification for the Cost Consequences of Current Tax Liability Imposed
Upon the Affected System Operator.
Notwithstanding Article3.12.1, Developer shall protect, indemnify and hold harmless
Affected System Operator from the cost consequences of any current tax liability imposed
against Affected System Operator as the result of payments or property transfers made by
Developer to Affected System Operator under this Agreement, as well as any interest and
penalties, other than interest and penalties attributable to any delay caused by Affected System
Operator.
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SERVICE AGREEMENT NO. 2856
Affected System Operator shall not include a gross-up for the cost consequences of any
current tax liability in the amounts it charges Developer under this Agreement unless (i) Affected
System Operator has determined, in good faith, that the payments or property transfers made by
Developer to Affected System Operator should be reported as income subject to taxation or (ii)
any Governmental Authority directs Affected System Operator to report payments or property as
income subject to taxation; provided, however, that Affected System Operator may require
Developer to provide security, in a form reasonably acceptable to Affected System Operator
(such as a parental guarantee or a letter of credit), in an amount equal to the cost consequences of
any current tax liability under this Article 3.12. Developer shall reimburse Affected System
Operator for such costs on a fully grossed-up basis, in accordance with Article 3.12.4, within
thirty (30) Calendar Days of receiving written notification from Affected System Operator of the
amount due, including detail about how the amount was calculated.
This indemnification obligation shall terminate at the earlier of (1) the expiration of the
ten-year testing period and the applicable statute of limitation, as it may be extended by the
Affected System Operator upon request of the IRS, to keep these years open for audit or
adjustment, or (2) the occurrence of a subsequent taxable event and the payment of any related
indemnification obligations as contemplated by this Article 3.12.
3.12.4 Tax Gross-Up Amount.
Developer’s liability for the cost consequences of any current tax liability under this
Article 3.12 shall be calculated on a fully grossed-up basis. Except as may otherwise be agreed
to by the parties, this means that Developer will pay Affected System Operator, in addition to the
amount paid for the Affected System Upgrade Facilities, an amount equal to (1) the current taxes
imposed on Affected System Operator (“Current Taxes”) on the excess of (a) the gross income
realized by Affected System Operator as a result of payments or property transfers made by
Developer to Affected System Operator under this Agreement (without regard to any payments
under this Article 3.12) (the “Gross Income Amount”) over (b) the present value of future tax
deductions for depreciation that will be available as a result of such payments or property
transfers (the “Present Value Depreciation Amount”), plus (2) an additional amount sufficient to
permit the Affected System Operator to receive and retain, after the payment of all Current
Taxes, an amount equal to the net amount described in clause (1).
For this purpose, (i) Current Taxes shall be computed based on Affected System
Operator’s composite federal and state tax rates at the time the payments or property transfers are
received and Affected System Operator will be treated as being subject to tax at the highest
marginal rates in effect at that time (the “Current Tax Rate”), and (ii) the Present Value
Depreciation Amount shall be computed by discounting Affected System Operator’s anticipated
tax depreciation deductions as a result of such payments or property transfers by Affected
System Operator’s current weighted average cost of capital. Thus, the formula for calculating
Developer’s liability to Affected System Operator pursuant to this Article 3.12.4 can be
expressed as follows: (Current Tax Rate x (Gross Income Amount - Present Value Depreciation
Amount))/(1 - Current Tax Rate). Developer’s estimated tax liability in the event taxes are
imposed shall be stated in Appendix A, Affected System Upgrade Facilities.
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SERVICE AGREEMENT NO. 2856
3.12.5 Private Letter Ruling or Change or Clarification of Law.
At Developer’s request and expense, Affected System Operator shall file with the IRS a
request for a private letter ruling as to whether any property transferred or sums paid, or to be
paid, by Developer to Affected System Operator under this Agreement are subject to federal
income taxation. Developer will prepare the initial draft of the request for a private letter ruling,
and will certify under penalties of perjury that all facts represented in such request are true and
accurate to the best of Developer’s knowledge. Affected System Operator and Developer shall
cooperate in good faith with respect to the submission of such request.
Affected System Operator shall keep Developer fully informed of the status of such
request for a private letter ruling and shall execute either a privacy act waiver or a limited power
of attorney, in a form acceptable to the IRS, that authorizes Developer to participate in all
discussions with the IRS regarding such request for a private letter ruling. Affected System
Operator shall allow Developer to attend all meetings with IRS officials about the request and
shall permit Developer to prepare the initial drafts of any follow-up letters in connection with the
request.
3.12.6
Subsequent Taxable Events.
If, within 10 years from the date on which the relevant Affected System Upgrade
Facilities are placed in service, (i) Developer Breaches the covenants contained in Article Error! R
eference source not found.Error! Reference source not found., (ii) a “disqualification event”
occurs within the meaning of IRS Notice 88-129, or (iii) this Agreement terminates and Affected
System Operator retains ownership of the Affected System Upgrade Facilities, Developer shall
pay a tax gross-up for the cost consequences of any current tax liability imposed on Affected
System Operator, calculated using the methodology described in Article 3.12.4 and in
accordance with IRS Notice 90-60.
3.12.7 Contests.
In the event any Governmental Authority determines that Affected System Operator’s
receipt of payments or property constitutes income that is subject to taxation, Affected System
Operator shall notify Developer, in writing, within thirty (30) Calendar Days of receiving
notification of such determination by a Governmental Authority. Upon the timely written
request by Developer and at Developer’s sole expense, Affected System Operator may appeal,
protest, seek abatement of, or otherwise oppose such determination. Upon Developer’s written
request and sole expense, Affected System Operator may file a claim for refund with respect to
any taxes paid under this Article 3.12, whether or not it has received such a determination.
Affected System Operator reserves the right to make all decisions with regard to the prosecution
of such appeal, protest, abatement or other contest, including the selection of counsel and
compromise or settlement of the claim, but Affected System Operator shall keep Developer
informed, shall consider in good faith suggestions from Developer about the conduct of the
contest, and shall reasonably permit Developer or Developer’s representative to attend contest
proceedings.
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SERVICE AGREEMENT NO. 2856
Developer shall pay to Affected System Operator on a periodic basis, as invoiced by
Affected System Operator, Affected System Operator’s documented reasonable costs of
prosecuting such appeal, protest, abatement or other contest, including any costs associated with
obtaining the opinion of independent tax counsel described in this Article 3.12.7. The Affected
System Operator may abandon any contest if Developer fails to provide payment to the Affected
System Operator within thirty (30) Calendar Days of receiving such invoice. At any time during
the contest, Affected System Operator may agree to a settlement either with Developer’s consent
or after obtaining written advice from nationally-recognized tax counsel, selected by Affected
System Operator, but reasonably acceptable to Developer, that the proposed settlement
represents a reasonable settlement given the hazards of litigation. Developer’s obligation shall
be based on the amount of the settlement agreed to by Developer, or if a higher amount, so much
of the settlement that is supported by the written advice from nationally-recognized tax counsel
selected under the terms of the preceding sentence. The settlement amount shall be calculated on
a fully grossed-up basis to cover any related cost consequences of the current tax liability. The
Affected System Operator may also settle any tax controversy without receiving Developer’s
consent or any such written advice; however, any such settlement will relieve Developer from
any obligation to indemnify Affected System Operator for the tax at issue in the contest (unless
the failure to obtain written advice is attributable to Developer’s unreasonable refusal to the
appointment of independent tax counsel).
3.12.8 Refund.
In the event that (a) a private letter ruling is issued to Affected System Operator which
holds that any amount paid or the value of any property transferred by Developer to Affected
System Operator under the terms of this Agreement is not subject to federal income taxation, (b)
any legislative change or administrative announcement, notice, ruling or other determination
makes it reasonably clear to Affected System Operator in good faith that any amount paid or the
value of any property transferred by Developer to Affected System Operator under the terms of
this Agreement is not taxable to Affected System Operator, (c) any abatement, appeal, protest, or
other contest results in a determination that any payments or transfers made by Developer to
Affected System Operator are not subject to federal income tax, or (d) if Affected System
Operator receives a refund from any taxing authority for any overpayment of tax attributable to
any payment or property transfer made by Developer to Affected System Operator pursuant to
this Agreement, Affected System Operator shall promptly refund to Developer the following:
(i)
attributable to the amount determined to be non-taxable, together with interest thereon,
(ii)
Interest on any amounts paid by Developer to Affected System Operator for such
taxes which Affected System Operator did not submit to the taxing authority, calculated in
accordance with the methodology set forth in FERC’s regulations at 18 C.F.R. §35.19a(a)(2)(iii)
from the date payment was made by Developer to the date Affected System Operator refunds
such payment to Developer, and
(iii) With respect to any such taxes paid by Affected System Operator any refund or
credit Affected System Operator receives or to which it may be entitled from any Governmental
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SERVICE AGREEMENT NO. 2856
Authority, interest (or that portion thereof attributable to the payment described in clause (i),
above) owed to the Affected System Operator for such overpayment of taxes (including any
reduction in interest otherwise payable by Affected System Operator to any Governmental
Authority resulting from an offset or credit); provided, however, that Affected System Operator
will remit such amount promptly to Developer only after and to the extent that Affected System
Operator has received a tax refund, credit or offset from any Governmental Authority for any
applicable overpayment of income tax related to the Affected System Upgrade Facilities.
The intent of this provision is to leave both Developer and Affected System Operator, to
the extent practicable, in the event that no taxes are due with respect to any payment for Affected
System Upgrade Facilities hereunder, in the same position they would have been in had no such
tax payments been made.
3.12.9 Taxes Other Than Income Taxes.
Upon the timely request by Developer, and at Developer’s sole expense, Affected System
Operator shall appeal, protest, seek abatement of, or otherwise contest any tax (other than federal
or state income tax) asserted or assessed against Affected System Operator for which Developer
may be required to reimburse Affected System Operator under the terms of this Agreement.
Developer shall pay to Affected System Operator on a periodic basis, as invoiced by Affected
System Operator, Affected System Operator’s documented reasonable costs of prosecuting such
appeal, protest, abatement, or other contest. Developer and Affected System Operator shall
cooperate in good faith with respect to any such contest. Unless the payment of such taxes is a
prerequisite to an appeal or abatement or cannot be deferred, no amount shall be payable by
Developer to Affected System Operator for such taxes until they are assessed by a final, non-
appealable order by any court or agency of competent jurisdiction. In the event that a tax
payment is withheld and ultimately due and payable after appeal, Developer will be responsible
for all taxes, interest and penalties, other than penalties attributable to any delay caused by
Affected System Operator.
3.13
Tax Status.
Each Party shall cooperate with the other Parties to maintain the other Parties’ tax status.
Nothing in this Agreement is intended to adversely affect the tax status of any Party including
the status of NYISO, or the status of Affected System Operator or Developer with respect to the
issuance of bonds including, but not limited to, Local Furnishing Bonds.
3.14
Modification.
3.14.1 General.
If, prior to the In-Service Date, either the Developer or the Affected System Operator
proposes to modify the Affected System Upgrade Facilities, the Party proposing the modification
shall provide to the NYISO at least ninety (90) Calendar Days in advance of the commencement
of the work, or such shorter period upon which the Parties may agree, sufficient information for
the NYISO to evaluate the impact of the proposed modification on the reliable interconnection of
Developer’s Large Generating Facility to the New York State Transmission System. The
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SERVICE AGREEMENT NO. 2856
NYISO’s agreement to the proposed modification shall not be unreasonably withheld,
conditioned, or delayed if the proposed modification is reasonably related to the interconnection
of the Large Generating Facility, will enable Developer’s Large Generating Facility to reliably
interconnect to the New York State Transmission System and will not impose additional costs to
Developer greater than the estimated cost for the Affected System Upgrade Facilities determined
in accordance with Attachment S of the ISO OATT.
3.14.2 Standards.
Any additions, modifications, or replacements made to a Party’s facilities shall be
designed, constructed and operated in accordance with this Agreement, NYISO requirements and
Good Utility Practice.
3.14.3 Modification Costs.
Developer shall not be assigned the costs of any additions, modifications, or replacements
that Affected System Operator makes to the Affected System Upgrade Facilities or the New
York State Transmission System to facilitate the interconnection of a third party to the Affected
System Upgrade Facilities or the New York State Transmission System, or to provide
Transmission Service to a third party under the ISO OATT, except in accordance with the cost
allocation procedures in Attachment S of the ISO OATT.
ARTICLE 4. TESTING AND INSPECTION
4.1
Initial Testing and Modifications.
In accordance with the Milestones set forth in Appendix A, Developer shall test the
Affected System Upgrade Facilities to ensure their safe and reliable operation. Similar testing
may be required after initial operation. Developer shall make any modifications to the facilities
that are found to be necessary as a result of such testing. Developer shall bear the cost of all
such testing and modifications
4.2
Notice of Testing.
Developer shall notify the Affected System Operator in advance of its performance of
tests of the Affected System Upgrade Facilities.
ARTICLE 5. COMMUNICATIONS
5.1
No Annexation.
Any and all equipment placed on the premises of a Party during the term of this
Agreement shall be and remain the property of the Party providing such equipment regardless of
the mode and manner of annexation or attachment to real property, unless otherwise mutually
agreed by the Party providing such equipment and the Party receiving such equipment.
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ARTICLE 6. PERFORMANCE OBLIGATIONS
6.1
EPC Services and Cost Responsibilities.
Developer shall perform the EPC Services described in Appendix A, and as otherwise set
forth by the terms of this Agreement, at Developer’s sole expense up to the ASO Estimated Total
Costs amount. The Developer’s and Affected System Operator’s respective responsibilities for
the cost of Developer’s performance of the EPC Services above the ASO Estimated Total Costs
amount shall be determined in accordance with Section 25.8.6 of Attachment S to the NYISO
OATT. The ASO Estimated Total Costs amount shall be set forth in Appendix A. If the ASO
Estimate Total Cost amount in the final Interconnection Facilities Study for Class Year 2021 for
the Affected System Upgrade Facilities differs from the amount set forth in Appendix A, the
Parties shall amend the Agreement to insert the updated amount pursuant to Articles 23.11 and
23.12 of this Agreement.
6.2
Provision and Application of Security.
Developer shall provide Affected System Operator with Security in the amount of the
ASO Estimated Total Costs for the Affected System Upgrade Facilities in accordance with
Attachment S to the ISO OATT. If the Developer: (i) does not pay an invoice issued by Affected
System Operator pursuant to Article Error! Reference source not found. within the timeframe s
et forth in Article 7.3 or (ii) does not pay any disputed amount into an independent escrow
account pursuant to Article 7.4, the Affected System Operator may draw upon Developer’s
Security to recover such payment. The Developer’s Security shall be reduced after discrete
portions of the EPC Services have been performed in accordance with the requirements in
Section 25.8.5 of Attachment S to the NYISO OATT.
ARTICLE 7. INVOICE
7.1
General.
To the extent that any amounts are due to the Developer or Affected System Operator
under this Agreement, including amounts due for the performance of EPC Services above the
ASO Estimated Total Costs in accordance with Section 25.8.6 of Attachment S to the NYISO
OATT, the Developer or Affected System Operator, as applicable, shall submit to the other
Party, on a monthly basis, invoices of amounts due for the preceding month or as otherwise
agreed by such Parties and as set forth in Section 3 of Appendix A. Each invoice shall state the
month to which the invoice applies and fully describe the services and equipment provided. The
Developer and Affected System Operator may discharge mutual debts and payment obligations
due and owing to each other on the same date through netting, in which case all amounts one
Party owes to the other Party under this Agreement, including interest payments or credits, shall
be netted so that only the net amount remaining due shall be paid by the owing Party. Within six
months after the Completion Date, Developer or Affected System Operator, as applicable, shall
provide a final invoice to the other Party of any remaining amounts due associated with the EPC
Services.
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SERVICE AGREEMENT NO. 2856
7.2 Refund of Remaining Security/Cash and Overpayment Amount.
The Affected System Operator shall release or refund to the Developer any remaining
portions of its Security or cash payment provided by the Developer pursuant to Article 6.2 and
any amount the Developer has overpaid as described in Article 7.4 within 30 days of the later of:
(i) Developer’s payment of any final invoice to the Affected System Operator, and (ii)
Developer’s completion of the EPC Services.
7.3
Payment.
Invoices shall be rendered to the paying Party at the address specified in Appendix B
hereto. The Party receiving the invoice shall pay the invoice within thirty (30) Calendar Days of
receipt. All payments shall be made in immediately available funds payable to the other Party,
or by wire transfer to a bank named and account designated by the invoicing Party. Payment of
invoices will not constitute a waiver of any rights or claims the paying Party may have under this
Agreement.
7.4
Disputes.
In the event of a billing dispute between Parties, the Party owed money shall continue to
perform under this Agreement as long as the other Party: (i) continues to make all payments not
in dispute; and (ii) pays to the Party owed money or into an independent escrow account the
portion of the invoice in dispute, pending resolution of such dispute. If the Party that owes
money fails to meet these two requirements for continuation of service, then the Party owed
money may provide notice to the other Party of a Default pursuant to Error! Reference source n
ot found.. Within thirty (30) Calendar Days after the resolution of the dispute, the Party that
owes money to the other Party shall pay the amount due with interest calculated in accord with
the methodology set forth in FERC’s Regulations at 18 C.F.R. § 35.19a(a)(2)(iii).
ARTICLE 8. REGULATORY REQUIREMENTS AND GOVERNING LAW
8.1
Regulatory Requirements.
Each Party’s obligations under this Agreement shall be subject to its receipt of any
required approval or certificate from one or more Governmental Authorities in the form and
substance satisfactory to the applying Party, or the Party making any required filings with, or
providing notice to, such Governmental Authorities, and the expiration of any time period
associated therewith. Each Party shall in good faith seek and use its Reasonable Efforts to obtain
such other approvals. Nothing in this Agreement shall require a Party to take any action that
could result in its inability to obtain, or its loss of, status or exemption under the Federal Power
Act or the Public Utility Holding Company Act of 2005 or the Public Utility Regulatory Policies
Act of 1978, as amended.
8.2
Governing Law.
8.2.1 The validity, interpretation and performance of this Agreement and each of its
provisions shall be governed by the laws of the state of New York, without regard to its conflicts
of law principles.
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SERVICE AGREEMENT NO. 2856
8.2.2 This Agreement is subject to all Applicable Laws and Regulations.
8.2.3 Each Party expressly reserves the right to seek changes in, appeal, or otherwise
contest any laws, orders, rules, or regulations of a Governmental Authority.
ARTICLE 9. NOTICES
9.1
General.
Unless otherwise provided in this Agreement, any notice, demand or request required or
permitted to be given by a Party to the other Parties and any instrument required or permitted to
be tendered or delivered by a Party in writing to the other Parties shall be effective when
delivered and may be so given, tendered or delivered, by recognized national courier, or by
depositing the same with the United States Postal Service with postage prepaid, for delivery by
certified or registered mail, addressed to the Party, or personally delivered to the Party, at the
address set out in Appendix B hereto.
A Party may change the notice information in this Agreement by giving five (5) Business
Days written notice prior to the effective date of the change.
9.2
Billings and Payments.
Billings and payments shall be sent to the addresses set out in Appendix B hereto.
Alternative Forms of Notice.
9.3
Any notice or request required or permitted to be given by a Party to the other Parties and
not required by this Agreement to be given in writing may be so given by telephone, facsimile or
email to the telephone numbers and email addresses set out in Appendix B hereto.
ARTICLE 10. FORCE MAJEURE
10.1
General.
Economic hardship is not considered a Force Majeure event. A Party shall not be
responsible or liable, or deemed, in Default with respect to any obligation hereunder, other than
the obligation to pay money when due, to the extent the Party is prevented from fulfilling such
obligation by Force Majeure. A Party unable to fulfill any obligation hereunder (other than an
obligation to pay money when due) by reason of Force Majeure shall give notice and the full
particulars of such Force Majeure to the other Parties in writing or by telephone as soon as
reasonably possible after the occurrence of the cause relied upon. Telephone notices given
pursuant to this Article shall be confirmed in writing as soon as reasonably possible and shall
specifically state full particulars of the Force Majeure, the time and date when the Force Majeure
occurred and when the Force Majeure is reasonably expected to cease. The Party affected shall
exercise due diligence to remove such disability with reasonable dispatch, but shall not be
required to accede or agree to any provision not satisfactory to it in order to settle and terminate a
strike or other labor disturbance.
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ARTICLE 11. DEFAULT
11.1
General.
No Breach shall exist where such failure to discharge an obligation (other than the
payment of money) is the result of Force Majeure as defined in this Agreement or the result of an
act or omission of the other Parties. Upon a Breach, the non-Breaching Parties shall give written
notice of such to the Breaching Party. The Breaching Party shall have thirty (30) Calendar Days
from receipt of the Breach notice within which to cure such Breach; provided however, if such
Breach is not capable of cure within thirty (30) Calendar Days, the Breaching Party shall
commence such cure within thirty (30) Calendar Days after notice and continuously and
diligently complete such cure within ninety (90) Calendar Days from receipt of the Breach
notice; and, if cured within such time, the Breach specified in such notice shall cease to exist.
11.2
Right to Terminate.
If a Breach is not cured as provided in this Article Error! Reference source not found., o
r if a Breach is not capable of being cured within the period provided for herein, the non-
Breaching Parties acting together shall thereafter have the right to declare a Default and
terminate this Agreement by written notice at any time until cure occurs, and be relieved of any
further obligation hereunder and, whether or not those Parties terminate this Agreement, to
recover from the defaulting Party all amounts due hereunder, plus all other damages and
remedies to which they are entitled at law or in equity. The provisions of this Article will
survive termination of this Agreement.
ARTICLE 12. INDEMNITY, CONSEQUENTIAL DAMAGES AND INSURANCE
12.1
Indemnity.
Each Party (the “Indemnifying Party”) shall at all times indemnify, defend, and save
harmless, as applicable, the other Parties (each an “Indemnified Party”) from, any and all
damages, losses, claims, including claims and actions relating to injury to or death of any person
or damage to property, the alleged violation of any Environmental Law, or the release or
threatened release of any Hazardous Substance, demand, suits, recoveries, costs and expenses,
court costs, attorney fees, and all other obligations by or to third parties (any and all of these a
“Loss”), arising out of or resulting from (i) the Indemnified Party’s performance of its
obligations under this Agreement on behalf of the Indemnifying Party, except in cases where the
Indemnifying Party can demonstrate that the Loss of the Indemnified Party was caused by the
gross negligence or intentional wrongdoing of the Indemnified Party or (ii) the violation by the
Indemnifying Party of any Environmental Law or the release by the Indemnifying Party of any
Hazardous Substance.
12.1.1
Indemnified Party.
If a Party is entitled to indemnification under this Article 12 as a result of a claim by a
third party, and the Indemnifying Party fails, after notice and reasonable opportunity to proceed
under Article 12.1.3, to assume the defense of such claim, such Indemnified Party may at the
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SERVICE AGREEMENT NO. 2856
expense of the Indemnifying Party contest, settle or consent to the entry of any judgment with
respect to, or pay in full, such claim.
12.1.2
Indemnifying Party.
If an Indemnifying Party is obligated to indemnify and hold any Indemnified Party
harmless under this Article 12, the amount owing to the Indemnified Party shall be the amount of
such Indemnified Party’s actual Loss, net of any insurance or other recovery.
12.1.3
Indemnity Procedures.
Promptly after receipt by an Indemnified Party of any claim or notice of the
commencement of any action or administrative or legal proceeding or investigation as to which
the indemnity provided for in Article 12.1 may apply, the Indemnified Party shall notify the
Indemnifying Party of such fact. Any failure of or delay in such notification shall not affect a
Party’s indemnification obligation unless such failure or delay is materially prejudicial to the
Indemnifying Party.
Except as stated below, the Indemnifying Party shall have the right to assume the defense
thereof with counsel designated by such Indemnifying Party and reasonably satisfactory to the
Indemnified Party. If the defendants in any such action include one or more Indemnified Parties
and the Indemnifying Party and if the Indemnified Party reasonably concludes that there may be
legal defenses available to it and/or other Indemnified Parties which are different from or
additional to those available to the Indemnifying Party, the Indemnified Party shall have the right
to select separate counsel to assert such legal defenses and to otherwise participate in the defense
of such action on its own behalf. In such instances, the Indemnifying Party shall only be
required to pay the fees and expenses of one additional attorney to represent an Indemnified
Party or Indemnified Parties having such differing or additional legal defenses.
The Indemnified Party shall be entitled, at its expense, to participate in any such action,
suit or proceeding, the defense of which has been assumed by the Indemnifying Party.
Notwithstanding the foregoing, the Indemnifying Party (i) shall not be entitled to assume and
control the defense of any such action, suit or proceedings if and to the extent that, in the opinion
of the Indemnified Party and its counsel, such action, suit or proceeding involves the potential
imposition of criminal liability on the Indemnified Party, or there exists a conflict or adversity of
interest between the Indemnified Party and the Indemnifying Party, in such event the
Indemnifying Party shall pay the reasonable expenses of the Indemnified Party, and (ii) shall not
settle or consent to the entry of any judgment in any action, suit or proceeding without the
consent of the Indemnified Party, which shall not be unreasonably withheld, conditioned or
delayed.
12.2
No Consequential Damages.
be liable under any provision of this Agreement for any losses, damages, costs or expenses for
any special, indirect, incidental, consequential, or punitive damages, including but not limited to
loss of profit or revenue, loss of the use of equipment, cost of capital, cost of temporary
22
SERVICE AGREEMENT NO. 2856
equipment or services, whether based in whole or in part in contract, in tort, including
negligence, strict liability, or any other theory of liability; provided, however, that damages for
which a Party may be liable to another Party under separate agreement will not be considered to
be special, indirect, incidental, or consequential damages hereunder.
12.3
Insurance.
Developer and Affected System Operator shall each, at its own expense, procure and
maintain in force throughout the period of this Agreement and until released by the other Parties,
the following minimum insurance coverages, with insurance companies licensed to write
insurance or approved eligible surplus lines carriers in the state of New York with a minimum
A.M. Best rating of A or better for financial strength, and an A.M. Best financial size category of
VIII or better:
12.3.1
Employers’ Liability and Workers’ Compensation Insurance providing
statutory benefits in accordance with the laws and regulations of New York State.
12.3.2
Commercial General Liability (“CGL”) Insurance including premises and
operations, personal injury, broad form property damage, broad form blanket contractual liability
coverage products and completed operations coverage, coverage for explosion, collapse and
underground hazards, independent contractors coverage, coverage for pollution to the extent
normally available and punitive damages to the extent normally available using Insurance
Services Office, Inc. Commercial General Liability Coverage (“ISO CG”) Form CG 00 01 04 13
or a form equivalent to or better than CG 00 01 04 13, with minimum limits of Two Million
Dollars ($2,000,000) per occurrence and Two Million Dollars ($2,000,000) aggregate combined
single limit for personal injury, bodily injury, including death and property damage.
12.3.3
Comprehensive Automobile Liability Insurance for coverage of owned
and non-owned and hired vehicles, trailers or semi-trailers designed for travel on public roads,
with a minimum, combined single limit of One Million Dollars ($1,000,000) per occurrence for
bodily injury, including death, and property damage.
12.3.4
If applicable, the Commercial General Liability and Comprehensive
Automobile Liability Insurance policies should include contractual liability for work in
connection with construction or demolition work on or within 50 feet of a railroad, or a separate
Railroad Protective Liability Policy should be provided.
12.3.5
Excess Liability Insurance over and above the Employers’ Liability,
Commercial General Liability and Comprehensive Automobile Liability Insurance coverages,
with a minimum combined single limit of Twenty Million Dollars ($20,000,000) per occurrence
and Twenty Million Dollars ($20,000,000) aggregate. The Excess policies should contain the
same extensions listed under the Primary policies.
12.3.6
The Commercial General Liability Insurance, Comprehensive Automobile
Insurance and Excess Liability Insurance policies of Developer and Affected System Operator
shall name the other Party, its parent, associated and Affiliate companies and their respective
directors, officers, agents, servants and employees (“Other Party Group”) as additional insureds
23
SERVICE AGREEMENT NO. 2856
using ISO CG Endorsements: CG 20 33 04 13, and CG 20 37 04 13 or CG 20 10 04 13 and CG
20 37 04 13 or equivalent to or better forms. All policies shall contain provisions whereby the
insurers waive all rights of subrogation in accordance with the provisions of this Agreement
against the Other Party Group and provide thirty (30) Calendar days advance written notice to
the Other Party Group prior to anniversary date of cancellation or any material change in
coverage or condition.
12.3.7
The Commercial General Liability Insurance, Comprehensive Automobile
Liability Insurance and Excess Liability Insurance policies shall contain provisions that specify
that the policies are primary and non-contributory. Developer and Affected System Operator
shall each be responsible for its respective deductibles or retentions.
12.3.8
The Commercial General Liability Insurance, Comprehensive Automobile
Liability Insurance and Excess Liability Insurance policies, if written on a Claims First Made
Basis, shall be maintained in full force and effect for at least three (3) years after termination of
this Agreement, which coverage may be in the form of tail coverage or extended reporting period
coverage if agreed by the Developer and Affected System Operator.
12.3.9
If applicable, Pollution Liability Insurance in an amount no less than
$7,500,000 per occurrence and $7,500,000 in the aggregate. The policy will provide coverage
for claims resulting from pollution or other environmental impairment arising out of or in
connection with work performed on the premises by the other party, its contractors and and/or
subcontractors. Such insurance is to include coverage for, but not be limited to, cleanup, third
party bodily injury and property damage and remediation and will be written on an occurrence
basis. The policy shall name the Other Party Group as additional insureds, be primary and
contain a waiver of subrogation.
12.3.10
The requirements contained herein as to the types and limits of all
insurance to be maintained by the Developer and Affected System Operator are not intended to
and shall not in any manner, limit or qualify the liabilities and obligations assumed by those
Parties under this Agreement.
12.3.11
Within 90 Calendar Days following execution of this Agreement, and as
soon as practicable after the end of each fiscal year or at the renewal of the insurance policy and
in any event within ninety (90) Calendar Days thereafter, Developer and Affected System
Operator shall each provide the other Party with a certificate of insurance for all insurance
required to be maintained by the providing Party in this Agreement, executed by each insurer or
by an authorized representative of each insurer.
12.3.12
Notwithstanding the foregoing, Developer and Affected System Operator
may each self-insure to meet the minimum insurance requirements of Articles Error! Reference s
ource not found. through Error! Reference source not found. to the extent it maintains a self-
insurance program; provided that, such Party’s senior debt is rated at investment grade, or better,
by Standard & Poor’s and that its self-insurance program meets the minimum insurance
requirements of Articles Error! Reference source not found. through Error! Reference source no
t found.. In the event that a Party is permitted to self-insure pursuant to this Article Error!
24
SERVICE AGREEMENT NO. 2856
Reference source not found., it shall notify the other Party that it meets the requirements to
self-insure and that its self-insurance program meets the minimum insurance requirements in a
manner consistent with that specified in Articles Error! Reference source not found. through
REF _Ref502060073 \r \h Error! Reference source not found. and provide evidence of such
coverages. For any period of time that a Party’s senior debt is unrated by Standard & Poor’s or
is rated at less than investment grade by Standard & Poor’s, such Party shall comply with the
insurance requirements applicable to it under Articles Error! Reference source not found.
through Error! Reference source not found..
12.3.13
Developer and Affected System Operator agree to report to each other in
writing as soon as practical all accidents or occurrences resulting in injuries to any person,
including death, and any property damage arising out of this Agreement.
12.3.14
Subcontractors of each party must maintain the same insurance
requirements stated under Articles Error! Reference source not found. through Error! Re
ference source not found. and comply with the Additional Insured requirements herein. In
addition, their policies must state that they are primary and non-contributory and contain a
waiver of subrogation.
ARTICLE 13. ASSIGNMENT
13.1
Assignment.
This Agreement may be assigned by a Party only with the written consent of the other
Parties; provided that a Party may assign this Agreement without the consent of the other Parties
to any Affiliate of the assigning Party with an equal or greater credit rating and with the legal
authority and operational ability to satisfy the obligations of the assigning Party under this
Agreement; provided further that a Party may assign this Agreement without the consent of the
other Parties in connection with the sale, merger, restructuring, or transfer of a substantial
portion or all of its assets, so long as the assignee in such a transaction directly assumes in
writing all rights, duties and obligations arising under this Agreement; and provided further that
the Developer shall have the right to assign this Agreement, without the consent of the NYISO or
Affected System Operator, for collateral security purposes to aid in providing financing for the
Large Generating Facility, provided that the Developer will promptly notify the NYISO and
Affected System Operator of any such assignment. Any financing arrangement entered into by
Developer pursuant to this Article will provide that prior to or upon the exercise of the secured
party’s, trustee’s or mortgagee’s assignment rights pursuant to said arrangement, the secured
creditor, the trustee or mortgagee will notify the NYISO and Affected System Operator of the
date and particulars of any such exercise of assignment right(s) and will provide the NYISO and
Affected System Operator with proof that it meets the requirements of Articles 6.2 and 12.3.
Any attempted assignment that violates this Article is void and ineffective. Any assignment
under this Agreement shall not relieve a Party of its obligations, nor shall a Party’s obligations be
enlarged, in whole or in part, by reason thereof. Where required, consent to assignment will not
be unreasonably withheld, conditioned or delayed.
25
SERVICE AGREEMENT NO. 2856
ARTICLE 14. SEVERABILITY
If any provision in this Agreement is finally determined to be invalid, void or
unenforceable by any court or other Governmental Authority having jurisdiction, such
determination shall not invalidate, void or make unenforceable any other provision, agreement or
covenant of this Agreement.
ARTICLE 15. COMPARABILITY
The Parties will comply with all applicable comparability and code of conduct laws, rules
and regulations, as amended from time to time.
ARTICLE 16. CONFIDENTIALITY
16.1
Confidentiality.
Certain information exchanged by the Parties during the term of this Agreement shall
constitute confidential information (“Confidential Information”) and shall be subject to this
Error! Reference source not found..
If requested by a Party receiving information, the Party supplying the information shall
provide in writing, the basis for asserting that the information referred to in this Article warrants
confidential treatment, and the requesting Party may disclose such writing to the appropriate
Governmental Authority. Each Party shall be responsible for the costs associated with affording
confidential treatment to its information.
16.2
Term.
During the term of this Agreement, and for a period of three (3) years after the expiration
or termination of this Agreement, except as otherwise provided in this Error! Reference source n
ot found., each Party shall hold in confidence and shall not disclose to any person Confidential
Information.
16.3
Confidential Information.
The following shall constitute Confidential Information: (1) any non-public information
that is treated as confidential by the disclosing Party and which the disclosing Party identifies as
Confidential Information in writing at the time, or promptly after the time, of disclosure; or (2)
information designated as Confidential Information by the NYISO Code of Conduct contained in
Attachment F to the ISO OATT.
16.4
Scope.
Confidential Information shall not include information that the receiving Party can
demonstrate: (1) is generally available to the public other than as a result of a disclosure by the
receiving Party; (2) was in the lawful possession of the receiving Party on a non-confidential
basis before receiving it from the disclosing Party; (3) was supplied to the receiving Party
without restriction by a third party, who, to the knowledge of the receiving Party after due
26
SERVICE AGREEMENT NO. 2856
inquiry, was under no obligation to the disclosing Party to keep such information confidential;
(4) was independently developed by the receiving Party without reference to Confidential
Information of the disclosing Party; (5) is, or becomes, publicly known, through no wrongful act
or omission of the receiving Party or Breach of this Agreement; or (6) is required, in accordance
with Article 16.9 of this Agreement, Order of Disclosure, to be disclosed by any Governmental
Authority or is otherwise required to be disclosed by law or subpoena, or is necessary in any
legal proceeding establishing rights and obligations under this Agreement. Information
designated as Confidential Information will no longer be deemed confidential if the Party that
designated the information as confidential notifies the other Party that it no longer is
confidential.
16.5
Release of Confidential Information.
No Party shall release or disclose Confidential Information to any other person, except to
its Affiliates (limited by FERC Standards of Conduct requirements), subcontractors, employees,
consultants, or to parties who may be considering providing financing to or equity participation
with Developer, or to potential purchasers or assignees of a Party, on a need-to-know basis in
connection with this Agreement, unless such person has first been advised of the confidentiality
provisions of this Error! Reference source not found. and has agreed to comply with such p
rovisions. Notwithstanding the foregoing, a Party providing Confidential Information to any
person shall remain primarily responsible for any release of Confidential Information in
contravention of this Error! Reference source not found..
16.6
Rights.
Each Party retains all rights, title, and interest in the Confidential Information that each
Party discloses to the other Party. The disclosure by each Party to the other Parties of
Confidential Information shall not be deemed a waiver by any Party or any other person or entity
of the right to protect the Confidential Information from public disclosure.
16.7
No Warranties.
By providing Confidential Information, no Party makes any warranties or representations
as to its accuracy or completeness. In addition, by supplying Confidential Information, no Party
obligates itself to provide any particular information or Confidential Information to the other
Parties nor to enter into any further agreements or proceed with any other relationship or joint
venture.
16.8
Standard of Care.
Each Party shall use at least the same standard of care to protect Confidential Information
it receives as it uses to protect its own Confidential Information from unauthorized disclosure,
publication or dissemination. Each Party may use Confidential Information solely to fulfill its
obligations to the other Parties under this Agreement or its regulatory requirements, including the
ISO OATT and NYISO Services Tariff. The NYISO shall, in all cases, treat the information it
receives in accordance with the requirements of Attachment F to the ISO OATT.
16.9
Order of Disclosure.
27
SERVICE AGREEMENT NO. 2856
If a court or a Government Authority or entity with the right, power, and apparent
authority to do so requests or requires any Party, by subpoena, oral deposition, interrogatories,
requests for production of documents, administrative order, or otherwise, to disclose Confidential
Information, that Party shall provide the other Parties with prompt notice of such request(s) or
requirement(s) so that the other Parties may seek an appropriate protective order or waive
compliance with the terms of this Agreement. Notwithstanding the absence of a protective order
or waiver, the Party may disclose such Confidential Information which, in the opinion of its
counsel, the Party is legally compelled to disclose. Each Party will use Reasonable Efforts to
obtain reliable assurance that confidential treatment will be accorded any Confidential
Information so furnished.
16.10
Termination of Agreement.
Upon termination of this Agreement for any reason, each Party shall, within ten (10)
Calendar Days of receipt of a written request from the other Parties, use Reasonable Efforts to
destroy, erase, or delete (with such destruction, erasure, and deletion certified in writing to the
other Parties) or return to the other Parties, without retaining copies thereof, any and all written
or electronic Confidential Information received from the other Parties pursuant to this
Agreement.
16.11
Remedies.
The Parties agree that monetary damages would be inadequate to compensate a Party for
another Party’s Breach of its obligations under this Error! Reference source not found.. Each P
arty accordingly agrees that the other Parties shall be entitled to equitable relief, by way of
injunction or otherwise, if the first Party Breaches or threatens to Breach its obligations under
this Error! Reference source not found., which equitable relief shall be granted without bond o
r proof of damages, and the receiving Party shall not plead in defense that there would be an
adequate remedy at law. Such remedy shall not be deemed an exclusive remedy for the Breach
of this Error! Reference source not found., but shall be in addition to all other remedies a
vailable at law or in equity. The Parties further acknowledge and agree that the covenants
contained herein are necessary for the protection of legitimate business interests and are
reasonable in scope. No Party, however, shall be liable for indirect, incidental, or consequential
or punitive damages of any nature or kind resulting from or arising in connection with this
Error! Reference source not found..
16.12
Disclosure to FERC, its Staff, or a State.
Notwithstanding anything in this Error! Reference source not found. to the contrary, a
nd pursuant to 18 C.F.R. section 1b.20, if FERC or its staff, during the course of an investigation
or otherwise, requests information from one of the Parties that is otherwise required to be
maintained in confidence pursuant to this Agreement or the ISO OATT, the Party shall provide
the requested information to FERC or its staff, within the time provided for in the request for
information. In providing the information to FERC or its staff, the Party must, consistent with
18 C.F.R. section 388.112, request that the information be treated as confidential and non-public
by FERC and its staff and that the information be withheld from public disclosure. Parties are
28
SERVICE AGREEMENT NO. 2856
prohibited from notifying the other Parties to this Agreement prior to the release of the
Confidential Information to the Commission or its staff. The Party shall notify the other Parties
to the Agreement when it is notified by FERC or its staff that a request to release Confidential
Information has been received by FERC, at which time the Parties may respond before such
information would be made public, pursuant to 18 C.F.R. section 388.112. Requests from a state
regulatory body conducting a confidential investigation shall be treated in a similar manner if
consistent with the applicable state rules and regulations. A Party shall not be liable for any
losses, consequential or otherwise, resulting from that Party divulging Confidential Information
pursuant to a FERC or state regulatory body request under this paragraph.
16.13
Required Notices Upon Requests or Demands for Confidential Information.
Except as otherwise expressly provided herein, no Party shall disclose Confidential
Information to any person not employed or retained by the Party possessing the Confidential
Information, except to the extent disclosure is (i) required by law; (ii) reasonably deemed by the
disclosing Party to be required to be disclosed in connection with a dispute between or among
the Parties, or the defense of litigation or dispute; (iii) otherwise permitted by consent of the
other Party, such consent not to be unreasonably withheld; or (iv) necessary to fulfill its
obligations under this Agreement, the ISO OATT or the NYISO Services Tariff. Prior to any
disclosures of a Party’s Confidential Information under this subparagraph, or if any third party or
Governmental Authority makes any request or demand for any of the information described in
this subparagraph, the disclosing Party agrees to promptly notify the other Party in writing and
agrees to assert confidentiality and cooperate with the other Party in seeking to protect the
Confidential Information from public disclosure by confidentiality agreement, protective order or
other reasonable measures.
ARTICLE 17. DEVELOPER AND AFFECTED SYSTEM OPERATOR NOTICES OF
ENVIRONMENTAL RELEASES
Developer and Affected System Operator shall each notify the other Party, first orally and
then in writing, of the release of any Hazardous Substances, any asbestos or lead abatement
activities, or any type of remediation activities related to the Affected System Upgrade Facilities,
each of which may reasonably be expected to affect the other Parties. The notifying Party shall:
(i) provide the notice as soon as practicable, provided such Party makes a good faith effort to
provide the notice no later than twenty-four hours after such Party becomes aware of the
occurrence; and (ii) promptly furnish to the other Parties copies of any publicly available reports
filed with any Governmental Authorities addressing such events.
ARTICLE 18. INFORMATION REQUIREMENT
18.1
Information Acquisition.
Affected System Operator and Developer shall each submit specific information
regarding the electrical characteristics of their respective facilities to the other Party and to the
NYISO as described below and in accordance with Applicable Reliability Standards.
29
SERVICE AGREEMENT NO. 2856
18.2 Information Submission by Affected System Operator.
On a monthly basis Developer shall provide the Affected System Operator and NYISO a
status report on the construction and installation of the Affected System Upgrade Facilities,
including, but not limited to, the following information: (1) progress to date; (2) a description of
the activities since the last report; (3) a description of the action items for the next period; and (4)
the delivery status of equipment ordered.
18.3
Information Submission by Developer.
Developer shall submit to Affected System Operator a completed copy of the Large
Generating Facility data requirements contained in Appendix 1 to the Standard Large Facility
Interconnection Procedures. It shall also include any additional information provided to
Affected System Operator for the Interconnection Facilities Study. Information in this
submission shall be the most current Large Generating Facility design or expected performance
data. Information submitted for stability models shall be compatible with NYISO standard
models. If there is no compatible model, the Developer will work with a consultant mutually
agreed to by the Parties to develop and supply a standard model and associated information.
If the Developer’s data is different from what was originally provided to Affected System
Operator and NYISO and this difference may be reasonably expected to affect the other Parties’
facilities or the New York State Transmission System, but does not require the submission of a
new Interconnection Request, then NYISO will conduct appropriate studies to determine the
impact on the New York State Transmission System based on the actual data submitted pursuant
to this Article Error! Reference source not found.. Such studies will provide an estimate of a
ny additional modifications to the New York State Transmission System or Affected System
Upgrade Facilities based on the actual data and a good faith estimate of the costs thereof. The
Developer shall not begin Trial Operation until such studies are completed. The Developer shall
be responsible for the cost of any modifications required by the actual data, including the cost of
any required studies.
18.4
Information Supplementation.
Developer shall supplement its information submissions described above in this Article
18 with any and all “as built” information or “as tested” performance information that differs
from the initial submissions or, alternatively, written confirmation that no such differences exist.
ARTICLE 19. INFORMATION ACCCESS AND AUDIT RIGHTS
19.1
Information Access.
Each Party (“Disclosing Party”) shall make available to another Party (“Requesting
Party”) information that is in the possession of the Disclosing Party and is necessary in order for
the Requesting Party to: (i) verify the costs incurred by the Disclosing Party for which the
Requesting Party is responsible under this Agreement; and (ii) carry out its obligations and
responsibilities under this Agreement. The Parties shall not use such information for purposes
other than those set forth in this Article 19.1 of this Agreement and to enforce their rights under
this Agreement.
30
SERVICE AGREEMENT NO. 2856
19.2 Reporting of Non-Force Majeure Events.
Each Party (the “Notifying Party”) shall notify the other Parties when the Notifying Party
becomes aware of its inability to comply with the provisions of this Agreement for a reason other
than a Force Majeure event. The Parties agree to cooperate with each other and provide
necessary information regarding such inability to comply, including the date, duration, reason for
the inability to comply, and corrective actions taken or planned to be taken with respect to such
inability to comply. Notwithstanding the foregoing, notification, cooperation or information
provided under this Article shall not entitle the Party receiving such notification to allege a cause
for anticipatory breach of this Agreement.
19.3
Audit Rights.
Subject to the requirements of confidentiality under Error! Reference source not found. o
f this Agreement, each Party shall have the right, during normal business hours, and upon prior
reasonable notice to another Party, to audit at its own expense the other Party’s accounts and
records pertaining to the other Party’s performance or satisfaction of its obligations under this
Agreement. Such audit rights shall include audits of the other Party’s costs and calculation of
invoiced amounts. Any audit authorized by this Article shall be performed at the offices where
such accounts and records are maintained and shall be limited to those portions of such accounts
and records that relate to the Party’s performance and satisfaction of obligations under this
Agreement. Each Party shall keep such accounts and records for a period equivalent to the audit
19.4
Audit Rights Periods.
19.4.1 Audit Rights Period for Construction-Related Accounts and Records.
Accounts and records related to the design, engineering, procurement, and construction of
the Affected System Upgrade Facilities shall be subject to audit for a period of twenty-four
months following the issuance of a final invoice in accordance with Article Error! Reference s
ource not found. of this Agreement.
19.4.2 Audit Rights Period for All Other Accounts and Records.
Accounts and records related to a Party’s performance or satisfaction of its obligations
under this Agreement other than those described in Article 19.4.1 of this Agreement shall be
subject to audit as follows: (i) for an audit relating to cost obligations, the applicable audit rights
period shall be twenty-four months after the auditing Party’s receipt of an invoice giving rise to
such cost obligations; and (ii) for an audit relating to all other obligations, the applicable audit
rights period shall be twenty-four months after the event for which the audit is sought.
19.5
Audit Results.
If an audit by a Party determines that an overpayment or an underpayment has occurred, a
notice of such overpayment or underpayment shall be given to the other Party together with
those records from the audit which support such determination.
31
SERVICE AGREEMENT NO. 2856
ARTICLE 20. SUBCONTRACTORS
20.1
General.
Nothing in this Agreement shall prevent a Party from utilizing the services of any
subcontractor as it deems appropriate to perform its obligations under this Agreement; provided,
however, that each Party shall require its subcontractors to comply with all applicable terms and
conditions of this Agreement in providing such services and each Party shall remain primarily
liable to the other Parties for the performance of such subcontractor.
20.2
Responsibility of Principal.
The creation of any subcontract relationship shall not relieve the hiring Party of any of its
obligations under this Agreement. The hiring Party shall be fully responsible to the other Parties
for the acts or omissions of any subcontractor the hiring Party hires as if no subcontract had been
made; provided, however, that in no event shall the NYISO or Affected System Operator be
liable for the actions or inactions of Developer or its subcontractors with respect to obligations of
Developer under Article 3 of this Agreement. Any applicable obligation imposed by this
Agreement upon the hiring Party shall be equally binding upon, and shall be construed as having
application to, any subcontractor of such Party.
20.3
No Limitation by Insurance.
The obligations under this Error! Reference source not found. will not be limited in any way b
y any limitation of subcontractor’s insurance
ARTICLE 21. DISPUTES
21.1
Submission.
In the event any Party has a dispute, or asserts a claim, that arises out of or in connection
with this Agreement or its performance (a “Dispute”), such Party shall provide the other Parties
with written notice of the Dispute (“Notice of Dispute”). Such Dispute shall be referred to a
designated senior representative of each Party for resolution on an informal basis as promptly as
practicable after receipt of the Notice of Dispute by the other Parties. In the event the designated
representatives are unable to resolve the Dispute through unassisted or assisted negotiations
within thirty (30) Calendar Days of the other Parties’ receipt of the Notice of Dispute, such
Dispute may, upon mutual agreement of the Parties, be submitted to arbitration and resolved in
accordance with the arbitration procedures set forth below. In the event the Parties do not agree
to submit such Dispute to arbitration, each Party may exercise whatever rights and remedies it
may have in equity or at law consistent with the terms of this Agreement.
21.2
External Arbitration Procedures.
Any arbitration initiated under this Agreement shall be conducted before a single neutral
arbitrator appointed by the Parties. If the Parties fail to agree upon a single arbitrator within ten
(10) Calendar Days of the submission of the Dispute to arbitration, each Party shall choose one
arbitrator who shall sit on a three-member arbitration panel. In each case, the arbitrator(s) shall
32
SERVICE AGREEMENT NO. 2856
be knowledgeable in electric utility matters, including electric transmission and bulk power
issues, and shall not have any current or past substantial business or financial relationships with
any party to the arbitration (except prior arbitration). The arbitrator(s) shall provide each of the
Parties an opportunity to be heard and, except as otherwise provided herein, shall conduct the
arbitration in accordance with the Commercial Arbitration Rules of the American Arbitration
Association (“Arbitration Rules”) and any applicable FERC regulations or RTO rules; provided,
however, in the event of a conflict between the Arbitration Rules and the terms of this Error! R
eference source not found., the terms of this Error! Reference source not found. shall prevail.
21.3
Arbitration Decisions.
Unless otherwise agreed by the Parties, the arbitrator(s) shall render a decision within
ninety (90) Calendar Days of appointment and shall notify the Parties in writing of such decision
and the reasons therefor. The arbitrator(s) shall be authorized only to interpret and apply the
provisions of this Agreement and shall have no power to modify or change any provision of this
Agreement in any manner. The decision of the arbitrator(s) shall be final and binding upon the
Parties, and judgment on the award may be entered in any court having jurisdiction. The
decision of the arbitrator(s) may be appealed solely on the grounds that the conduct of the
arbitrator(s), or the decision itself, violated the standards set forth in the Federal Arbitration Act
or the Administrative Dispute Resolution Act. The final decision of the arbitrator(s) must also be
filed with FERC if it affects jurisdictional rates, terms and conditions of service, or Affected
System Upgrade Facilities.
21.4
Costs.
Each Party shall be responsible for its own costs incurred during the arbitration process
and for the following costs, if applicable: (1) the cost of the arbitrator chosen by the Party to sit
on the three member panel; or (2) one-third the cost of the single arbitrator jointly chosen by the
Parties.
21.5
Termination.
Notwithstanding the provisions of this Error! Reference source not found., any Party m
ay terminate this Agreement in accordance with its provisions or pursuant to an action at law or
equity. The issue of whether such a termination is proper shall not be considered a Dispute
hereunder.
ARTICLE 22. REPRESENTATIONS, WARRANTIES, AND COVENANTS
22.1
General.
Each Party makes the following representations, warranties and covenants:
22.1.1
Good Standing.
33
SERVICE AGREEMENT NO. 2856
Such Party is duly organized, validly existing and in good standing under the laws of the
state in which it is organized, formed, or incorporated, as applicable; that it is qualified to do
business in the State of New York; and that it has the corporate power and authority to own its
properties, to carry on its business as now being conducted and to enter into this Agreement and
carry out the transactions contemplated hereby and perform and carry out all covenants and
obligations on its part to be performed under and pursuant to this Agreement.
22.1.2
Authority.
Such Party has the right, power and authority to enter into this Agreement, to become a
Party hereto and to perform its obligations hereunder. This Agreement is a legal, valid and
binding obligation of such Party, enforceable against such Party in accordance with its terms,
except as the enforceability thereof may be limited by applicable bankruptcy, insolvency,
reorganization or other similar laws affecting creditors’ rights generally and by general equitable
principles (regardless of whether enforceability is sought in a proceeding in equity or at law).
22.1.3
No Conflict.
The execution, delivery and performance of this Agreement does not violate or conflict
with the organizational or formation documents, or bylaws or operating agreement, of such
Party, or any judgment, license, permit, order, material agreement or instrument applicable to or
binding upon such Party or any of its assets.
22.1.4
Consent and Approval.
Such Party has sought or obtained, or, in accordance with this Agreement will seek or
obtain, each consent, approval, authorization, order, or acceptance by any Governmental
Authority in connection with the execution, delivery and performance of this Agreement, and it
will provide to any Governmental Authority notice of any actions under this Agreement that are
required by Applicable Laws and Regulations.
ARTICLE 23. MISCELLANEOUS
23.1
Binding Effect.
This Agreement and the rights and obligations hereof, shall be binding upon and shall
inure to the benefit of the successors and permitted assigns of the Parties hereto.
23.2
Conflicts.
If there is a discrepancy or conflict between or among the terms and conditions of this
cover agreement and the Appendices hereto, the terms and conditions of this cover agreement
shall be given precedence over the Appendices, except as otherwise expressly agreed to in
writing by the Parties.
23.3
Rules of Interpretation.
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SERVICE AGREEMENT NO. 2856
This Agreement, unless a clear contrary intention appears, shall be construed and
interpreted as follows: (1) the singular number includes the plural number and vice versa; (2)
reference to any person includes such person’s successors and assigns but, in the case of a Party,
only if such successors and assigns are permitted by this Agreement, and reference to a person in
a particular capacity excludes such person in any other capacity or individually; (3) reference to
any agreement (including this Agreement), document, instrument or tariff means such
agreement, document, instrument, or tariff as amended or modified and in effect from time to
time in accordance with the terms thereof and, if applicable, the terms hereof; (4) reference to
any Applicable Laws and Regulations means such Applicable Laws and Regulations as
amended, modified, codified, or reenacted, in whole or in part, and in effect from time to time,
including, if applicable, rules and regulations promulgated thereunder; (5) unless expressly stated
otherwise, reference to any Article, Section or Appendix means such Article of this Agreement
or such Appendix to this Agreement, or such Section to the Standard Large Facility
Interconnection Procedures or such Appendix to the Standard Large Facility Interconnection
Procedures, as the case may be; (6) “hereunder”, “hereof’, “herein”, “hereto” and words of
similar import shall be deemed references to this Agreement as a whole and not to any particular
Article or other provision hereof or thereof; (7) “including” (and with correlative meaning
“include”) means including without limiting the generality of any description preceding such
term; and (8) relative to the determination of any period of time, “from” means “from and
including”, “to” means “to but excluding” and “through” means “through and including”.
23.4
Compliance.
Each Party shall perform its obligations under this Agreement in accordance with
Applicable Laws and Regulations, Applicable Reliability Standards, the ISO OATT and Good
Utility Practice. To the extent a Party is required or prevented or limited in taking any action by
such regulations and standards, such Party shall not be deemed to be in Breach of this Agreement
for its compliance therewith. When any Party becomes aware of such a situation, it shall notify
the other Parties promptly so that the Parties can discuss the amendment to this Agreement that is
appropriate under the circumstances.
23.5
Joint and Several Obligations.
Except as otherwise stated herein, the obligations of NYISO, Developer, and Affected
System Operator are several, and are neither joint nor joint and several.
23.6
Entire Agreement.
This Agreement, including all Appendices and Schedules attached hereto, constitutes the
entire agreement between the Parties with reference to the subject matter hereof, and supersedes
all prior and contemporaneous understandings or agreements, oral or written, between the Parties
with respect to the subject matter of this Agreement. There are no other agreements,
representations, warranties, or covenants which constitute any part of the consideration for, or
any condition to, either Party’s compliance with its obligations under this Agreement.
23.7
No Third Party Beneficiaries.
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SERVICE AGREEMENT NO. 2856
This Agreement is not intended to and does not create rights, remedies, or benefits of any
character whatsoever in favor of any persons, corporations, associations, or entities other than the
Parties, and the obligations herein assumed are solely for the use and benefit of the Parties, their
successors in interest and permitted their assigns.
23.8
Waiver.
The failure of a Party to this Agreement to insist, on any occasion, upon strict
performance of any provision of this Agreement will not be considered a waiver of any
obligation, right, or duty of, or imposed upon, such Party. Any waiver at any time by either
Party of its rights with respect to this Agreement shall not be deemed a continuing waiver or a
waiver with respect to any other failure to comply with any other obligation, right, duty of this
Agreement. Any waiver of this Agreement shall, if requested, be provided in writing.
23.9
Headings.
The descriptive headings of the various Articles of this Agreement have been inserted for
convenience of reference only and are of no significance in the interpretation or construction of
this Agreement.
23.10
Multiple Counterparts.
This Agreement may be executed in two or more counterparts, each of which is deemed
an original but all constitute one and the same instrument.
23.11
Amendment.
The Parties may by mutual agreement amend this Agreement, by a written instrument
duly executed by all of the Parties.
23.12
Modification by the Parties.
The Parties may by mutual agreement amend the Appendices to this Agreement, by a
written instrument duly executed by all three of the Parties. Such an amendment shall become
effective and a part of this Agreement upon satisfaction of all Applicable Laws and Regulations.
23.13
Reservation of Rights.
NYISO and Affected System Operator shall have the right to make unilateral filings with
FERC to modify this Agreement with respect to any rates, terms and conditions, charges,
classifications of service, rule or regulation under section 205 or any other applicable provision
of the Federal Power Act and FERC’s rules and regulations thereunder, and Developer shall have
the right to make a unilateral filing with FERC to modify this Agreement pursuant to section 206
or any other applicable provision of the Federal Power Act and FERC’s rules and regulations
thereunder; provided that each Party shall have the right to protest any such filing by another
Party and to participate fully in any proceeding before FERC in which such modifications may
be considered. Nothing in this Agreement shall limit the rights of the Parties or of FERC under
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SERVICE AGREEMENT NO. 2856
sections 205 or 206 of the Federal Power Act and FERC’s rules and regulations thereunder,
except to the extent that the Parties otherwise mutually agree as provided herein.
23.14
No Partnership.
This Agreement shall not be interpreted or construed to create an association, joint
venture, agency relationship, or partnership among the Parties or to impose any partnership
obligation or partnership liability upon any Party. No Party shall have any right, power or
authority to enter into any agreement or undertaking for, or act on behalf of, or to act as or be an
agent or representative of, or to otherwise bind, any other Party.
23.15
Other Transmission Rights.
Notwithstanding any other provision of this Agreement, nothing herein shall be construed
as relinquishing or foreclosing any rights, including but not limited to firm transmission rights,
capacity rights, or transmission congestion rights that Developer shall be entitled to, now or in
the future under any other agreement or tariff as a result of or otherwise associated with, the
transmission capacity, if any, created by the Affected System Upgrade Facilities.
23.16
Modifications Related to NYISO’s Compliance with Order No. 2023.
If, as part of the NYISO’s compliance proceeding at the Commission in response to
Order No. 2023, the Commission directs that the NYISO modify the pro forma Standard Large
Generator Interconnection Agreement located in Appendix 4 of Attachment X of the ISO OATT,
the Parties shall amend and restate this Agreement to incorporate the modifications; provided,
however, the Parties may agree to include in the amended and restated agreement non-
conforming changes to any terms of the pro forma Standard Large Generator Interconnection
Agreement that have been modified to comply with the Commission’s order, which non-
conforming modifications must be filed with the Commission for its acceptance.
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SERVICE AGREEMENT NO. 2856
IN WITNESS WHEREOF, the Parties have executed this Agreement in duplicate originals,
each of which shall constitute and be an original effective Agreement between the Parties.
New York Independent System Operator, Inc.
By:
Name:
Title:
Date:
Rochester Gas & Electric Corporation
By:
By: ____________________________
Name: _______________________
Title: ________________________
Date: ________________________
Name:
Title:
Date:
Hecate Energy Cider Solar, LLC
By:
Name:
Title:
Date:
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SERVICE AGREEMENT NO. 2856
APPENDICES
Appendix A
EPC Services
Appendix B
Addresses for Delivery of Notices and Billings
Appendix C
In-Service Date
SERVICE AGREEMENT NO. 2856
APPENDIX A
EPC SERVICES
1. Affected System Upgrade Facilities
The Affected System Upgrade Facilities concern relay upgrades at Affected System
Operator’s Sta. 255 Station, including:
• updating all drawings and line/relay tagging;
• reviewing and testing line protection relay settings for the Sta. 255 Station to the
planned Graham Substation, line CHI; and
• communication mode updates.
The proposed protection at the Sta. 255 Station for Line CHI includes the following:
• existing GE L90- A-system line differential protection, communicating over
OPGW fiber (on DH2 transmission line structure); and
• existing SEL 411L- B-system line distance protection, communicating over
Niagara Mohawk Power Corporation d/b/a National Grid’s SONET via GE-J-
MUX.
Developer shall design, engineer, procure, construct, install, test, and commission the
Affected System Upgrade Facilities in accordance with the following requirements, to the extent
not inconsistent with the terms of this Agreement, the ISO OATT, or applicable NYISO
procedures:
• Affected System Operator’s Bulletin No. 86-01, Requirements for the
Interconnection of Generation, Transmission and End-User Facilities; and
• Applicable Affected System Operator engineering and construction standards,
which will be provided by Affected System Operator; and
• NERC Reliability Guideline “Newly interconnecting inverter-based resources
should eliminate the use of momentary cessation to the greatest possible extent.”
The Affected System Operator will provide project management and construction
oversight to oversee, but not direct, the construction work and testing and commissioning, to the
extent not inconsistent with the terms of this Agreement and the NYISO OATT with respect to
the Affected System Upgrade Facilities. Vendors for equipment and services will be per
Affected System Operator’s approved vendor list unless otherwise approved by Affected System
Operator. Affected System Operator will furnish the list to the Developer.
2. ASO Estimated Total Costs
The ASO Estimated Total Costs for the Affected System Upgrade Facilities at Sta. 255
Station is $328,918.
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SERVICE AGREEMENT NO. 2856
3. Security & Prepayment
In accordance with Article 6.2 of this Agreement, Developer will provide Affected
System Operator with security in the amount set forth in Article 3.2.12 in the form of cash, a
letter of credit, surety bond or parental guarantee. If letter of credit, surety bond or parental
guarantee is chosen by Developer, Developer will also post $200,000.00 in cash as prepayment
towards Affected System Operator’s oversight work under this Agreement. The Affected
System Operator will draw down on this cash amount as costs accrue. When the cash amount
nears a $50,000.00 balance, Affected System Operator will invoice the Developer to replenish
the amount to $200,000.00 or for the remaining cost estimate for the oversight work if less than
$200,000. This process will continue until the project is complete and trued up. The Affected
System Operator’s receipt of each prepayment amount from the Developer shall reduce the
Affected System Operator’s obligation with respect to maintaining the Security and reduce
Affected System Operator’s recourse to the security, on a dollar-for-dollar basis. The Developer
may, at its request, reissue to the Affected System Operator the Security to reflect such reduced
amount following Affected System Operator’s receipt of each prepayment amount from
Developer, in a form and substance reasonably satisfactory to Affected System Operator for the
remaining Security amount.
4. Milestones
Schedule may change depending on any required coordination with work associated with the
Graham Substation.
Item
Milestone
EPC Agreement
Date
Responsible Party
1.
Developer/Affected
System Operator
September 2024
February 2025
2.
3.
Engineering start
Engineering end
Developer/ Affected
System Operator
October 2025
Developer/ Affected
System Operator
4.
5.
Relay Settings Start
Apr-2026
Apr-2026
Developer
Developer
Relay Settings Completion
6.
7.
8.
Testing/commissioning
In-Service date
Apr-2026
May- 2026
June- 2026
Developer/ Affected
System Operator
Developer/ Affected
System Operator
As-Built Drawings/Project
Complete
Developer
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SERVICE AGREEMENT NO. 2856
APPENDIX B
ADDRESSES FOR DELIVERY OF NOTICES AND BILLINGS
Notices:
NYISO:
New York Independent System Operator, Inc.
Attn: Vice President, System and Resource Planning
10 Krey Boulevard
Rensselaer, NY 12144
Phone: (518) 356-6000
Email: interconnectionsupport@nyiso.com
Rochester Electric & Gas Corporation:
Rochester Gas and Electric Corporation
Attn: Manager-Programs/Projects
Electric Transmission Services
PO Box 5224
Binghamton, NY 13902-5224
Phone: (607) 237-5533
Email: NYISOInterconnectionAdmin@avangrid.com
Hecate Energy Cider Solar, LLC:
Hecate Energy Cider Solar LLC
621 West Randolph St
Chicago, IL 60661
Phone: 312-722-5900
Billings and Payments:
Rochester Electric & Gas Corporation:
Rochester Gas and Electric Corporation
Attn: Mgr. Billing & Risk Management
PO Box 5224
Binghamton, NY 13902-5224
Phone: (585) 484-6883
Fax: (607) 762-8885
NYISOInterconnectionAdmin@avangrid.com
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SERVICE AGREEMENT NO. 2856
Hecate Energy Cider Solar, LLC:
Hecate Cider Solar, LLC
621 West Randolph St
Chicago, IL 60661
Phone: 312-722-5900
Email: HEfinance@hecateenergy.com
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SERVICE AGREEMENT NO. 2856
APPENDIX C
IN-SERVICE DATE
[Date]
New York Independent System Operator, Inc.
Attn: Vice President, Operations
10 Krey Boulevard
Rensselaer, NY 12144
Rochester Gas & Electric Corporation
Attn: Manager-Programs/Projects
Electric Transmission Services
PO Box 5224
Binghamton, NY 13902-5224
Phone: (607) 237-5533
Re: Cider Solar - Affected System Upgrade Facilities (Sta. 255)
Dear
:
On [Date] [Developer] has completed the Affected System Upgrade Facilities. This letter
confirms that [describe Affected System Upgrade Facilities] have commenced service, effective
as of [Date plus one day].
Thank you.
[Signature]
[Developer’s Representatives]
C-1
Effective Date: 10/1/2024 - Docket #: ER25-97-000 - Page 1