I've made a list of issues Heather and I have discussed based on VEPCO's=20 suggested revisions.
Some of the issues are commercial, some legal, some= =20 just reminders.
Comments are appreciated.
1.
Term.
What will we accept?
2.
Availability:  single computation despite source of power (market or=20 facility).
Is forced outage the correct concept since we want to have some= =20 discretion, and LD structure should apply even if power coming from the=20 market?
Note VEPCO=01,s insertion of a new event of default under 7.1 for= =20 failure to deliver energy when the Facility is not in a forced outage.
=20 Liquidated damages language still ok?
LD=01,s should apply regardless of= =20 scheduled source of power =01) no cost of cover for market power.
3.
Our position is that Contract Capacity set at contract signing, then=20 adjusted (if necessary) based on performance tests, not subject to adjustme= nt=20 after that time: ditto for the demand charge.
What is the right number for= =20 the Capacity?
Is there a benefit to Enron to have a correction curve exhib= it?
4.
Failure to complete facility suggested as a termination event.
Is=20 September long enough?
5.
We need to be able to supply from either or both sources (market and=20 facility) during a day, but this doesn=01,t give us right to change during = the=20 day after the schedule is set.
6.
Note the Start Up definition (as suggested by VEPCO) and how it is=20 applied.
Reject 50% requirement at this point, subject to their explanatio= n.  7.
Note: construction of the facility now required (2.3).=20  8.
Define commercial operation.
9.
Confirm that Enron has sufficient protection from interconnection=20 failures/delays.
10.
Day ahead scheduling (3.4)  Are we ready to commit?
11.
Number of start ups.
(2.3 e)  12.
Force majeure =01) consistency with interconnection agreement, relief f= or=20 certain equipment failures.
Is concept logically developed throughout the= =20 document?
Note distinction between market and facility power in force=20 majeure language.
13.
Dispute resolution:  arbitration vs. litigation/venue.
Virginia law?
14.
Change in law.
Counter with CIL as termination event?
15.
Exhibit A =01) Heather is working on this.
Kay

VEPCO capacity contract issues
