EXHIBIT
10.5
April 7, 2006
Mr. Douglas S.
Elliott
Executive Vice
President
Metropolitan Edison
Company
2800 Pottsville Pike
Reading, PA
19640-0001
Pennsylvania Electric
Company
5404 Evans Rd.
Erie, PA 16509
The Waverly Electric Power and
Light Company
707 Main St.
Towanda, PA 18848
|
RE:
|
Notice of
Termination Tolling Agreement
|
|
|
Restated Partial Requirements
Agreement, dated January 1, 2003, by and among, Metropolitan Edison
Company, Pennsylvania Electric Company, The Waverly Electric Power
and Light Company and FirstEnergy Solutions Corp., as amended by a
First Amendment to Restated Requirements Agreement, dated August
29, 2003 and by a Second Amendment to Restated Requirements
Agreement, dated June 8, 2004 (“Partial Requirements
Agreement”)
|
Dear Mr. Elliott:
Please be advised
that FirstEnergy Solutions Corp. (“Solutions”) hereby
gives notice, in accordance with the Tolling Agreement dated
November 1, 2005 that amended
the Restated Partial
Requirements Agreement (“Partial Requirements
Agreement”), to Metropolitan Edison Company,
Pennsylvania Electric Company and The Waverly Electric Power and
Light Company (“Buyers”) that Solutions has elected to
terminate the Partial Requirements Agreement effective midnight
December 31, 2006. In accordance with the November 1, 2005 Tolling
Agreement, this notice is being provided at least sixty (60) days
in advance of the effective date of termination.
This termination is necessary
because the Partial Requirements Agreement is not economically
sustainable from Solutions’ perspective. Market prices for
generation services have and continue to be far above the price
being charged to Buyers. In addition, the load following product
being supplied is very different than the product originally
contemplated under the Partial Requirements Agreement.
Notwithstanding the above, in
exchange for Solutions not exercising its right to terminate the
Partial Requirements Agreement effective midnight December 31,
2006, the parties agree as follows:
