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Category:  Bio-Energy - General
Subject:  Failure of LDC to meet Schedule
ID:  10716
Date:  8/28/2009
Question:  Applicants are asked to state COD acceleration days, which will govern the priority fo gaining allocation of grid capacity. This can be very dependent on the speed of LDCs in the conduct of CIAs and in engineering and constructing their portion of connection facilities.
If LDC delays cause delay in the project COD, will the developers securities be at risk?
The contract appears to only permit force majure events of LDCs to become force majure events in the OPA contract to extend the required COD.
What about LDC delays that are within their control such as those caused by internal resourcing/priorities?
Answer:  Delays caused by the LDC, that are in no way the fault of the proponent, will qualify as force majeure. In addition, the OPA will be working closely with LDCs to track the progress of the CIA and construction of connection assets. The OPA will not issue Notice to Proceed until it is quite certain that the connection assets will be completed on time.

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