FirstEnergy Generation
Corp.
EXHIBIT
10.5
FERC Electric Tariff, Original
Volume No. 1
Service Agreement No.
2
[Execution Copy]
GENCO POWER SUPPLY
AGREEMENT
Between
FirstEnergy Generation Corp., Seller
and
FirstEnergy Solutions Corp.,
Buyer
This GENCO Power Supply
Agreement ("Agreement") dated October 14, 2005 is made by and
between FirstEnergy Generation Corp., ("Genco" or "Seller"), and
FirstEnergy Solutions Corp. ("Solutions" or "Buyer"). Genco and
Solutions may be identified collectively as "Parties" or
individually as a "Party." This Agreement is entered into in
connection with the transfer of ownership of The Cleveland Electric
Illuminating Company, Ohio Edison Company, Pennsylvania Power
Company, and The Toledo Edison Company’s fossil and pumped
storage generation assets to Genco.
WHEREAS, Seller is a
generation only company that owns, operates and leases fossil and
pumped storage generation assets; and
WHEREAS, Seller is engaged
exclusively in the business of owning and operating this generation
and selling Power at wholesale, and
WHEREAS, Seller is a wholly
owned subsidiary of Solutions; and
WHEREAS, Buyer desires to
obtain the entire electric output of the generating plants owned by
Genco as described in Exhibit C (collectively, the “Genco
Facilities”), pursuant to the rates, terms and conditions set
forth herein.
It is agreed as
follows:
I.
TERM
The sale and purchase of Power
pursuant to this Agreement shall begin on December 1, 2005, or such
later effective date authorized by the FERC, for an initial term
ending December 31, 2010. This Agreement shall remain in effect
from year to year thereafter unless terminated by either Party upon
at least sixty days written notice prior to the end of the calendar
year.
Issued by: Donald R.
Schneider, President
Effective
Date:
Issued on: October 14, 2005
December 1,
2005
II.
SALE AND
PURCHASE OF CAPACITY AND ENERGY
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A.
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Seller shall make available to
Buyer all of the Capacity, Energy, Ancillary Services, Emission
Allowances, and Renewable Energy Attributes, if any, which are
available from the Genco Facilities and Buyer shall purchase and
pay for such Capacity, Energy, Ancillary Services, Emission
Allowances and Renewable Energy Attributes in accordance with the
terms of this Agreement. Seller shall make firm Capacity, Energy,
and Ancillary Services available at the Delivery Points. Buyer
shall arrange and will be responsible for all transmission,
congestion costs, losses, and related services at and from the
Delivery Points. The Capacity, Energy, Ancillary Services, Emission
Allowances and Renewable Energy Attributes supplied by Seller are
collectively referred to as Buyer's "Power Supply Requirements."
Electric Capacity and Energy supplied shall be sixty-hertz, three
phase alternating current. The Power Supply Requirements will be
provided in accordance with Good Utility Practice, and where
applicable, the provisions of the applicable Transmission Provider
OATT, and the requirements of the FERC.
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B.
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Genco will operate and
maintain the Genco Facilities in accordance with Good Utility
Practice, the applicable requirements of the FERC, NERC, Electric
Reliability Organization, as well as the requirements of the
regional reliability councils or Regional Entity and Regional
Transmission Organizations where the Genco Facilities are
located.
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III. SCHEDULING AND SYSTEM
PLANNING
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A.
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In order for Solutions to be
able to plan adequately to market and sell all of the Capacity,
Energy, Ancillary Services, Emission Allowances and Renewable
Energy Attributes available from the Genco Facilities, Genco shall
notify Solutions on or before November 1 of each year during the
term of this Agreement of the amount of Capacity, Energy, Ancillary
Services, Emission Allowances and Renewable Energy Attributes it
expects to have available for each day in each month of the next
calendar year. The information provided in this notification shall
include, but not be limited to, the time and expected duration of
any planned outage of the Genco Facilities.
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B.
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Genco shall update its annual
forecast of available Capacity, Energy, Ancillary Services,
Emission Allowances, and Renewable Energy Attributes for any change
or expected changed in the operation of Genco Facilities that would
materially affect the annual forecast provided to Solutions. Genco
shall provide the updated forecast to Solutions for any full
month(s) remaining in the calendar year within thirty days of
becoming aware of the change or expected change in the operation of
the Genco Facilities.
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C.
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Genco will supply Solutions,
upon request, any such information as is necessary to meet the
requirements of the applicable Transmission Provider OATT, the
FERC, NERC, Electric Reliability Organization, regional reliability
council, Regional Entity or Government Authority.
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IV. PRICE
Seller shall charge, and Buyer
shall pay, for Buyer's Power Supply Requirements, as follows on a
monthly basis.
A. Charges
Buyer will pay Seller the
Monthly Charge under the formula set forth in Exhibit A for the
Power Supply Requirements available from the Genco Facilities
identified in Exhibit C.
B. Billing and
Payment
Unless otherwise specifically
agreed upon by the Parties, the calendar month shall be the
standard period for all billings and payments under this Agreement.
As soon as practicable after the end of each month, the Seller will
render an invoice to Buyer for the amounts due for Power Supply
Requirements for the preceding month. Payment shall be due and
payable within ten days of receipt of the invoice or, if such day
is not a Business Day, then on the next Business Day. Buyer will
make payments by electronic funds transfer or by other mutually
agreeable method(s) to the account designated by Seller. Any
amounts not paid by the due date will be deemed delinquent and will
accrue interest at the Interest Rate until the date of payment in
full.
C. Records
Each Party shall keep complete
and accurate records of its operations under this Agreement and
shall maintain such data as may be necessary to determine the
reasonableness and accuracy of all relevant data, estimates,
payments or invoices submitted by or to it hereunder. All records
regarding this Agreement shall be maintained for a period of three
years from the date of the invoice or payment, or for such longer
period as may be required by law.
D. Audit and Adjustment
Rights
Buyer shall have the right, at
its own expense and during normal business hours, to audit the
accounts and records of Seller that reasonably relate to the
provision of service under this Agreement. If the audit reveals an
inaccuracy in an invoice, the necessary adjustment in such invoice
and the payments therefor will be promptly made. No adjustment will
be made for any invoice or payment made more than one year from
rendition thereof. This provision shall survive the termination of
this Agreement for a period of one year from the date of
termination for the purpose of such invoice and payment objections.
To the extent that audited information includes Confidential
Information, the Buyer shall keep all such information confidential
under Section VII.C.
E. Section 205
Rights
Nothing contained herein shall
be construed as affecting in any way the right of the Party
furnishing service under this Agreement to unilaterally make
application to the FERC for a change in rates under Section 205 of
the Federal Power Act and pursuant to the FERC's Rules and
Regulations thereunder. Provided, however, that nonrate terms and
conditions may be amended only by a written agreement signed by the
Parties.
V.
METERING
Generation metering shall be
installed, operated and maintained in accordance with the
applicable generator interconnection agreements between the Genco,
Transmission Provider, and Transmission Owner. Metering between
control areas shall be handled in accordance with the applicable
Transmission Provider OATT. Retail metering shall be provided in
accordance with applicable state law. Nothing in this Agreement
requires Seller or Buyer to install new metering
facilities.
VI.
NOTICES
All notices, requests,
statements or payments shall be made as specified below. Notices
required to be in writing shall be delivered by letter, facsimile
or other documentary form. Notice by facsimile or hand delivery
shall be deemed to have been received by the close of the Business
Day on which it was transmitted or hand delivered (unless
transmitted or hand delivered after close in which case it shall be
deemed to have been received at the close of the next Business
Day). Notice by overnight mail or courier shall be deemed to have
been received two Business Days after it was sent. A Party may
change its addresses by giving notice as provided above.
NOTICES &
CORRESPONDENCE:
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To Seller:
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FirstEnergy Generation Corp.,
President
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76 South Main St.
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Akron, Ohio 44308
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To Buyer:
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FirstEnergy Solutions Corp.,
Director, Wholesale Energy Transactions
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395 Ghent Road
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Akron, Ohio 44333
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INVOICES &
PAYMENTS:
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To
Seller:
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FirstEnergy Generation Corp.,
President
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76 South Main St.
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Akron, Ohio 44308
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To
Buyer:
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FirstEnergy Solutions Corp.,
Director, Wholesale Energy Transactions
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395 Ghent Road
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Akron, Ohio 44333
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SCHEDULING:
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To Seller:
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FirstEnergy Generation Corp.,
President
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76 South Main St.
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Akron, Ohio 44308
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To
Buyer:
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FirstEnergy Solutions Corp.,
Director, Wholesale Energy Transactions
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395 Ghent Road
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Akron, Ohio 44333
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VII.
MISCELLANEOUS
A. Performance
Excused
If either Party is rendered
unable by an event of Force Majeure to carry out, in whole or part,
its obligations here