Exhibit 10(a)
APPENDIX 1
2007
PPL ELECTRIC UTILITIES CORPORATION
PROVIDER OF LAST RESORT
SUPPLY MASTER AGREEMENT
BETWEEN
[PPL ELECTRIC UTILITIES CORPORATION]
AND
[PPL ENERGYPLUS, LLC]
DATED [JULY 26, 2007]
PROVIDER OF LAST RESORT SUPPLY MASTER AGREEMENT
Articles and Provisions
Table of Contents
ARTICLE 1 DEFINITIONS
4
ARTICLE 2 TERMS AND CONDITIONS OF FULL REQUIREMENTS SERVICE
13
2.1
SELLER'S OBLIGATION TO PROVIDE SERVICE
13
2.2
BUYER'S OBLIGATION TO TAKE SERVICE
13
2.3
DISTRIBUTION SERVICE
14
2.4
CHANGES IN PJM CHARGES
14
2.5
STATUS OF SELLER
14
2.6
SALES FOR RESALE
14
2.7
GOVERNING TERMS
14
2.8
TRANSACTION CONFIRMATION
14
ARTICLE 3 SCHEDULING, FORECASTING, AND INFORMATION SHARING
15
3.1
SCHEDULING
15
3.2
LOAD FORECASTING
15
3.3
INFORMATION SHARING
15
ARTICLE 4 SPECIAL TERMS AND CONDITIONS
15
4.1
CONGESTION AND CONGESTION MANAGEMENT
15
4.2
LOAD RESPONSE PROGRAMS
16
4.3
PJM E-ACCOUNTS
16
4.4
ALTERNATIVE ENERGY PORTFOLIO STANDARDS OBLIGATION
16
4.5
TITLE TRANSFER
16
4.6
RELIABILITY GUIDELINES
17
4.7
PJM MEMBERSHIP
17
4.8
DECLARATION OF AUTHORITY
17
4.9
FERC AUTHORIZATION
17
4.10
DISCLOSURE IN THE EVENT OF SELLER DEFAULT
17
4.11
SELLER STEP-UP RIGHTS
17
ARTICLE 5 TERM AND SURVIVAL
18
5.1
TERM
18
5.2
SURVIVAL
18
ARTICLE 6 DETERMINATION OF DELIVERED QUANTITIES
18
6.1
MONTHLY SETTLEMENT LOAD
18
ARTICLE 7 BILLING AND SETTLEMENT
18
7.1
BILLING
18
7.2
PJM BILLING
19
7.3
PAYMENTS OF THE INVOICE
19
7.4
BILLING DISPUTES AND ADJUSTMENTS OF INVOICES
19
7.5
INTEREST ON UNPAID BALANCES
20
ARTICLE 8 TAXES
20
8.1
COOPERATION
20
8.2
TAXES
20
8.3
DISCLOSURE OF TAX TREATMENT
20
ARTICLE 9 INDEMNIFICATION
21
9.1
SELLER'S INDEMNIFICATION FOR THIRD-PARTY CLAIMS
21
9.2
BUYER'S INDEMNIFICATION FOR THIRD-PARTY CLAIMS
21
9.3
INDEMNIFICATION PROCEDURES
21
ARTICLE 10 LIMITATIONS ON LIABILITY
22
ARTICLE 11 FORCE MAJEURE
22
11.1
FORCE MAJEURE
22
11.2
NOTIFICATION
23
ARTICLE 12 EVENTS OF DEFAULT; REMEDIES
23
12.1
EVENTS OF DEFAULT
23
12.2
REMEDIES
24
12.3
CALCULATION AND NET OUT OF SETTLEMENT AMOUNTS
25
12.4
NOTICE OF TERMINATION PAYMENT
26
12.5
DISPUTES WITH RESPECT TO TERMINATION PAYMENT
26
12.6
DUTY TO MITIGATE
26
ARTICLE 13 DISPUTE RESOLUTION
26
13.1
INFORMAL DISPUTE RESOLUTION
26
13.2
FORMAL DISPUTE RESOLUTION
27
ARTICLE 14 PERFORMANCE ASSURANCE
27
14.1
REQUIREMENT FOR PERFORMANCE ASSURANCE
27
14.2
PERFORMANCE ASSURANCE TRANSFERS/RETURNS
27
14.3
UNSECURED CREDIT
28
14.4
CREDIT RATING
29
14.5
TANGIBLE NET WORTH
29
14.6
AGGREGATE BUYER'S EXPOSURE
29
ARTICLE 15 REPRESENTATIONS AND WARRANTIES
31
15.1
REPRESENTATIONS AND WARRANTIES
31
15.2
ADDITIONAL UNDERSTANDINGS
32
ARTICLE 16 MISCELLANEOUS
32
16.1
NOTICES
32
16.2
GENERAL
32
16.3
RULES OF INTERPRETATION
32
16.5
CONFIDENTIALITY
33
16.6
SUCCESSORS
34
16.7
ASSIGNMENT/CHANGE IN CORPORATE IDENTITY
34
16.8
GOVERNING LAW
34
16.9
JURISDICTION AND VENUE
34
16.10
AMENDMENTS
35
16.11
PJM AGREEMENT MODIFICATIONS
35
16.12
DELAY AND WAIVER
35
16.13
REGULATORY APPROVALS
35
EXHIBIT A TRANSACTION CONFIRMATION EXAMPLE
37
EXHIBIT B ALTERNATIVE ENERGY PORTFOLIO STANDARDS OBLIGATION
38
EXHIBIT C PERFORMANCE ASSURANCE EVERGREEN LETTER OF CREDIT
39
EXHIBIT D SAMPLE PJM INVOICE
42
EXHIBIT E METHODOLOGY FOR CALCULATION OF MARK TO MARKET (MTM) EXPOSURE
44
EXHIBIT F UNCONDITIONAL GUARANTY