Wspp Agreement Schedule C
In general, the parties guarantee that they have the necessary authority to carry out the transactions and execute the terms of the agreements. Each party also declares that it is solvent and that such representation will be maintained until notice to the contrary is given. Seller`s obligation is to sell and deliver to the delivery point(s) in accordance with the WSPP Agreement and the applicable Confirmation Agreement. Buyer`s obligation is to receive and purchase at the place of delivery in accordance with the WSPP Agreement and the applicable Stand-By Agreement. Ownership and risk of loss pass to the buyer at the place of delivery. Seller warrants good ownership, free from lien or seizure, but disclaims all other warranties, including any warranties of merchantability or fitness for a particular purpose. The parties to a transaction may, by mutual agreement, modify many of the key terms of the WSPP agreement for that transaction. Any such change must be specified in a stand-by agreement. The only provisions that may be amended are those that may be expressly designated as amended in the WSPP Agreement. If a party has a reasonable basis for challenging the solvency or ability to pay of the other party, that party may require the other party to provide a letter of credit, advance payment in cash, guarantee or guarantee, guarantee agreement or other consensual method of ensuring performance.
The second party has three working days to give such assurances; Failure to make such statements will be considered a default event resulting in the termination and liquidation of all WSPP transactions between the parties. The obligations of the second party to provide a letter of credit, deposits, etc. are limited to the amount of damages that the party would be liable for non-performance; that is, the coverage. The Agreement also lists certain events that would require reasonable security, including (1) knowing that a party is not performing other contracts; (2) a party that exceeds a credit or negotiation limit; (3) the deterioration of the debt below the investment category; and (4) material changes in market prices that have a material impact on a party`s performance. Stand-by arrangements contain transaction-specific terms, including amendments to the basic agreement, which the parties mutually agree. Verbal confirmation agreements are allowed for transactions of less than one week. For transactions of one week or more, written confirmations are required. At the request of the Buyer or at the Seller`s Choice, the Seller must provide written confirmation within five days of the request or agreement. The buyer has five days to respond. If the Buyer does not respond, the Seller`s written confirmation will be considered final. If seller does not provide requested written confirmation, Buyer may provide written confirmation within five days of the deadline for submission of written confirmation.
If the seller does not respond within five working days, the buyer`s confirmation is considered final. If a party declares that it will not accept any amendment to the WSPP Agreement proposed by either party, those amendments will be rejected. Cases of default are defined in the Contract for (1) not to make payment (if the payment date has been missed) within two working days of the indication of payment; (2) failure to provide clear and good title or to have given specific assurances and guarantees; (3) the opening of proceedings indicating bankruptcy or insolvency; (4) Failure to provide adequate credit security within three business days of the request to comply with such insurance. In the event of default, the non-defaulting party may terminate all WSPP transactions between the parties as long as it exercises this right of termination within 30 days (or longer if the parties agree to an extension). In the event of termination, the liquidation of the transactions of service annexes B and C takes place. Essentially, the value of completed transactions is estimated up to the date of termination in order to determine the liquidated amounts plus the costs associated with that termination. Revenues based on expected market prices in present value are used in the calculation of liquidation payments. Clearing of payments is not mandatory, but allowed. In order to facilitate the reconciliation of companies wishing to make a net profit, a member may sign the WSPP compensation agreement (Appendix A of the agreement).
If his counterparty has signed the netting agreement, the parties become net. Members who have accepted the network will be posted on the WSPP homepage. Each quarter, each FERC-regulated seller (electricity distributors and investor-owned utilities) must submit price reports to FERC (submitted by the WSPP) detailing prices and margins for each transaction. Price data are public. Margin data is confidential for a period of one year. Stand-by arrangements of one year or less do not need to be submitted to FERC. FERC-regulated sellers who enter into stand-by arrangements of more than one year must submit these agreements to FERC. The WSPP agreement represents a standard contract for the sale of electricity and physical options. In other words, if the parties to a WSPP transaction do not mutually agree on the changes to the WSPP Agreement, the terms of the WSPP Agreement shall prevail.
However, the WSPP Agreement provides the parties with the flexibility with respect to the key terms to amend the Agreement by mutual agreement to apply them to any WSPP Transaction as described below. The WSPP Agreement, by its terms, applies only to transactions between WSPP Members. Direct. The seller is liable for taxes up to the point of delivery. The buyer is liable for taxes from the point of delivery In general, force majeure is an event beyond the control of a party. The parties are required to exercise due diligence to overcome or avoid them. .