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Business Practice – Early Termination or Modification of Service Agreements for Long Term Firm Pointto-Point Transmission Service
Attachment A to Florida Power & Light Company’s (“FPL”) Open Access Transmission Tariff (“OATT”),
Form of Service for Long Term or Short Term Firm Point-to-Point Transmission Service, Section 4.0,
states “Service under this agreement shall terminate on such date as mutually agreed upon by the
parties.” Attachment A to FPL’s OATT addresses the “Term of Transaction,” including “Start Date” and
“Termination Date,” in Specifications for Long Term Firm Point-to-Point Transmission Service, Section
1.0. The purpose of this business practice is to give guidance to OATT customers that may wish to seek
early termination or modification of a Long Term Firm Point-to-Point Transmission Service Agreement
(TSA), prior to the established Termination Date in the contract. By posting this business practice, FPL is
not obligated in any way to mutually agree to early termination or modification of any service
agreement executed pursuant to the FPL OATT. Instead, this business practice merely sets forth the
conditions under which FPL would consider allowing early termination or modification of a Service
Agreement for Long Term Firm Point-to-Point Transmission Service. Any actual requests for early
termination or modification of Long Term Firm Point-to-Point Transmission Service will be assessed on a
case-by-case basis in accordance with this business practice and the FPL OATT.
FPL will consider allowing early termination or modification of a Service Agreement for Long Term Firm
Point-to-Point Transmission Service under the following conditions:
1).
Transmission system improvements or upgrades are not required to accommodate the original
transmission service request.
a).
2).
If transmission system improvements or upgrades are required then the Transmission
Customer shall reimburse FPL for all costs incurred up to the point of the early
termination date for system improvements or upgrades. Such costs may include
engineering and designed costs, or costs associated with cancelling contracts and/or
agreements entered into by FPL to construct such improvements or upgrades.
Any mutual agreement for early termination or modification must be in writing and signed by
the Transmission Customer and FPL, unless such termination or modification is documented
completely by a Confirmed Transmission Service Reservation on OASIS. The early termination
agreement or modified Transmission Service Agreement containing terms other than those
documented on a Confirmed Transmission Service Reservation on OASIS shall be filed with the
Federal Energy Regulatory Commission (“FERC”) along with a notice of cancellation of the
service agreement (if applicable) and will take effect upon acceptance and as directed by FERC.
Terminations and modifications fully documented by Confirmed OASIS Reservations will be
reported to the FERC via FPL’s electronic quarterly reports (“EQR”).
a).
For termination agreements filed with FERC, any Letter of Credit or Deposit provided by
the Transmission Customer will be refunded or returned within sixty (60) days of FERC
acceptance of the termination notice.
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b).
Any termination agreement filed with FERC shall address and clearly set forth all monies
owed by the Transmission Customer to FPL in accordance with this early termination
business practice. Payment terms agreeable to FPL will be set forth in the termination
agreement.
c).
Any termination agreement filed with FERC shall clearly state that the Transmission
Customer shall indemnify and hold FPL harmless from any and all legal action(s) other
parties may take with respect to the early termination of such service.
3).
In all cases the Transmission Customer must submit a request for FPL to evaluate early
termination or modification on FPL’s OASIS. The Customer Comment field on the confirmed
transmission request for service under the transaction in question should be used to indicate
that the Customer is requesting early termination or modification of service.
4).
The Transmission Customer may submit a requested date for termination or modification no
sooner than sixty (60) days after the date of the OASIS request for termination or modification
consideration is posted on OASIS. Assuming FPL agrees to permit the early termination or
modification request, FPL will attempt to meet that requested date. If FPL cannot meet the
requested date for any reason, FPL will respond on OASIS with a date as to when FPL will
mutually agree to terminate or modify said service to the Transmission Customer.
a).
5).
All mutually agreed early termination or modification dates will be at the start of the
next available month or the start of a new billing cycle or as otherwise ordered by the
FERC.
Once FPL and the Transmission Customer have mutually agreed in writing and the early
termination agreement has been accepted by FERC (or the termination is fully documented on a
Confirmed OASIS Transmission Service Request), the termination is final and is not subject to reinstatement by FPL or the Transmission Customer. After this point, to the extent the
Transmission Customer would like to purchase similar service in the future the Transmission
Customer will have to make a new OASIS request for service in accordance with FPL’s then
current OATT.
Revision History
Date
8/14/2012
9/21/2015
Revision
0
1
5/13/16
2
Change Summary
Initial Posting 8/14/2012 effective 8/28/2012
Add Modification of TSA Process to Business Practice
Clarify that modification fully documented on Confirmed OASIS Reservation
will be reported to FERC on the EQR