Request Summary
Bilateral Contract Support
Co-sponsors
Description Of Issue
EWEB is seeking support for development of a bilateral, WRAP compliant legal framework for capacity contracts where financial damages for non-performance under the program can be appropriately conveyed to an upstream party who failed to perform, thus shielding a WRAP participant from FS and Ops penalties for inadequacy and non-performance.
Proposed Solution
No suggested solution other than to engage with legal staff to determine/standardize a set of edits that could be applied to an bilateral contract to make it WRAP compliant. This could include edits to a standard WSPP agreement, though the intent is not to work through the WSPP contract revision process.
Specific Document And Language
Suggested Language Update
Benefits
The WRAP tariff defines penalties for inadequacy and non-performance which are assessed to participants. For the program to be successful, participants need to be able to efficiently develop commercial arrangements to support trade liquidity for capacity products. Standardization of commercial terms and trade liquidity supports the cost effectiveness of the program as it simplifies the ways in which participant and non-participants can work together to solve form program capacity needs. At times, this will mean that one party needs to be able to effectively take on the financial liability on non-performance from another party.
Data Or Information