2000 AMENDATORY AGREEMENTAddendum or Modifications |
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Exhibit 10.9.2
2000 AMENDATORY AGREEMENT
This Agreement, dated as of the 28th day of July, 2000, is
entered into by and between Connecticut Yankee Atomic Power Company
("Connecticut Yankee") and The Connecticut Light and Power Company
("Purchaser").
For good and valuable consideration, the receipt of which
is hereby acknowledged, it is agreed as follows:
I.
Basic Understandings
On April 7,
2000, upon direction from its Board of Directors, Connecticut Yankee filed an
Offer of Settlement in a proceeding before the Federal Energy Regulatory
Commission ("FERC"), Docket No. ER97-913-000, to settle the claims
related to the collections to be made by Connecticut Yankee over the remaining
terms of the Additional Power Contract, between Connecticut Yankee and the
Purchaser, dated as of April 30, 1984 ("Additional Power Contract"),
the 1987 Supplementary Power Contract between Connecticut Yankee and the
Purchaser, dated as of April 1, 1987 (" 1987 Supplementary Power
Contract"), and the December 4, 1996 Amendatory Agreement between
Connecticut Yankee and Purchaser, which amended the 1987 Supplementary Power
Contract and the Additional Power Contract in various respects (the "1996
Amendatory Agreement"). The Offer of Settlement specifies that, if it is
approved by FERC, Connecticut Yankee will implement necessary amendments to
contracts between Connecticut Yankee and the Purchaser to effectuate the
provisions of the Offer of Settlement. Among the provisions of the Offer
of Settlement is a requirement that Connecticut Yankee abandon the use of the
net unit investment methodology for calculating collections from its Purchasers
for return on remaining equity. The new methodology to be used for each monthly
bill to a Purchaser is simply to multiply the remaining equity balance times
the monthly equivalent return on equity allowed by FERC. The Offer of
Settlement also provides that funds previously collected by Connecticut Yankee
for its pre-1983 spent nuclear fuel disposal liability
to the U.S. Department of Energy ("DOE") and held in a segregated
fund established pursuant to the 1987 Supplementary Power Contract, may be used
to pay the costs of storing spent nuclear fuel on-site until the DOE removes
it. Finally, the Offer of Settlement provides that Connecticut Yankee must make
an informational filing with FERC in advance of any acceleration of
recovery of unamortized investment as contemplated under the terms and
conditions of Section 3, Part D (iii) of the 1996 Amendatory Agreement.
In order to
carry out the obligations undertaken in the Offer of Settlement, Connecticut
Yankee and the Purchaser have agreed (a) to authorize the application of monies
held in the segregated fund to meet costs of storing spent nuclear fuel and
associated high level radioactive materials; (b) to change the
methodology employed for calculating collections for return on equity; and (c)
to require an advance informational filing be made with FERC prior to
acceleration of amortization.
2. Prior
Contracts Preserved
Except as expressly modified by this Agreement. the
provisions of the Additional Power Contract. the 1987 Supplementary Power
Contract. as amended by the 1996 Amendatory Agreement. as well as the 1996
Amendatory Agreement. remain in full force and effect, recognizing that the mutually
accepted decision to shut down the Unit renders
moot those provisions which by their terms relate solely to
continuing operation of the Unit.
3.
Amendment of Additional Power Contract
A. The first paragraph of Section 7
of the Additional Power Contract is hereby
amended to read as follows:
With respect to each month commencing on or after the
commencement of the operative term of this contract, whether or not this
contract continues fully or partially in effect. the Purchaser will pay Connecticut
Yankee as deferred payment for the capacity and output of the Unit provided to
the Purchaser by Connecticut Yankee prior to the permanent shutdown of the Unit
on December 4, 1996, to the extent not otherwise paid in accordance with the
Power Contract, but without duplication: an amount equal to the Purchaser's
entitlement percentage of the sum of (a) the Total Decommissioning Costs for
the month with respect to the Unit, plus (b) Connecticut Yankee's total
operating expenses for the month with respect to the Unit, plus (c) an amount
for operating income as determined in accordance with this Section 7.
B. The second paragraph of
Section 7 of the Additional Power Contract is
hereby deleted.
C. The third paragraph
of Section 7 of the Additional Power Contract is hereby deleted.
D. The fourth paragraph
of Section 7 of the Additional Power Contract is hereby deleted.
E. The sixth paragraph
of Section 7 of the Additional Power Contract is hereby deleted.






