Section 407-307-4 - CONDITIONS APPLICABLE TO SALES AND UTILITY RENEGOTIATIONS DURING SALE PERIODSA. Renegotiations by Utilities of Contracts for Capacity and Energy Utilities subject to this Chapter shall have the right at any time to renegotiate any contract that entitles it to capacity and energy for the purpose of meeting its obligation to minimize stranded costs. No renegotiated contract shall become effective until the end of the current sale period for capacity and energy unless:
1. the amount and fuel source of the output available to the purchaser of the capacity and energy pursuant to this rule are unchanged ; or2. the purchaser consents to a change in the output or fuel source type.B. Subsequent Divestiture by Utilities All sales shall be subject to the obligation of the utility to divest a generation asset on the date or within the time period specified by the Commission in an extension order issued pursuant to 35-A M.R.S.A. §3204(3) and section 10 of this Chapter, and all purchasers shall be subject to the risk that the capacity and energy from that generation asset may not be available following the divestiture.
C. Risk of Nonperformance; Damages Each utility subject to this Chapter shall choose between one of the following approaches to damages. The standard form contract required by section 6(B) shall include a provision implementing the portion of this subsection chosen by the utility.
1. A purchaser of capacity and energy shall have no recourse against the utility in the event that the owner or operator of the generation asset does not provide the expected amount of capacity or energy or otherwise defaults. In the event of a default by the owner or operator as a result of which the utility collects damages, the damages will be allocated between the utility and the purchaser(s) on a reasonable pro rata basis.2. A utility may propose to the Commission other approaches to damages at the time it submits its request for bids and standard form contract pursuant to section 6(B)(3) of this Chapter.65- 407 C.M.R. ch. 307, § 4