Exhibit 10.7.2
MAINE YANKEE ATOMIC POWER COMPANY
Form of
Amendment No. 2
to
Power Contract
AMENDMENT, dated as of this 1st day of January , 1984, between
MAINE YANKEE ATOMIC POWER COMPANY ("Maine Yankee"), a Maine corporation,
and , a
corporation (the "Purchaser"), to the Power Contract dated as of May 20,
1968, between Maine Yankee and the Purchaser (the "Power Contract").
W I T N E S S E T H
WHEREAS, pursuant to the Power Contract, Maine Yankee supplies to the
Purchaser and, pursuant to separate Power Contracts, to the other Sponsors
of Maine Yankee, each of whom is contemporaneously entering into Amendments
which are identical to the Amendment except for the necessary changes in
the names of the parties, all of the capacity and the electric energy
available from the nuclear generating unit owned by Maine Yankee at a site
on the tidewater in the Town of Wiscasset, Maine (such unit being herein
together with the site and all related facilities owned by Maine Yankee,
referred to as the "Unit").
WHEREAS, Maine Yankee, the Purchaser and the other Sponsors of Maine
Yankee believe that the monthly payments provided in the Power Contracts
are no longer sufficient to permit Maine Yankee to finance potential
modifications to the Unit and to purchase replacement nuclear fuel on an
optimum basis and that the implicit return on the equity component of Maine
Yankee's capitalization resulting from the payments provided in the Power
Contracts may not be sufficient to provide a return on the equity
investment in the Unit which is equal to the return achieved on investments
of comparable risk.
WHEREAS, in order to facilitate Maine Yankee's future financing and to
assure the maintenance of an appropriate level of return on common equity,
Maine Yankee and the Purchaser have agreed to enter into this Amendment in
order to provide for an appropriate supplemental payment for power
delivered from the Unit and to provide for a late payment charge to better
ensure prompt payment for power delivered from the Unit.
NOW, THEREFORE, in consideration of the premises and of other good and
valuable consideration, receipt of which is hereby acknowledged, the
parties hereto agree that the Power Contract is hereby amended as follows:
1. Terms used herein and not defined shall have the
meanings set forth in the Power Contract.
2. The third paragraph of Section 7 of the Power Contract
is amended to read as follows:
"Composite percentage" shall be computed as of the plant
completion date and as of the last day of each month
thereafter (the "computation date") and for any month the
composite percentage shall be that computed as of the last
day of the previous month. "Composite percentage" as of a
computation date shall be the sum of (i) nine and eight-
tenths percent (9.8%) or such higher percentage as the
Federal Energy Regulatory Commission (the "Commission") from
time to time may allow but not more than twenty percent
(20%), multiplied by the percentage which equity investment
with respect to the Unit (other than equity investment for
the financing of fuel inventory, including nuclear materials
and the cost of fabrication thereof, for the Unit) as of
such date is of the total capital as of such date; plus
(ii) the "effective interest rate" per annum of each
principal amount of indebtedness outstanding on such date
for money borrowed with respect to the Unit (other than for
money borrowed for the financing of fuel inventory,
including nuclear materials and the cost of fabrication
thereof, for the Unit), multiplied by the percentage which
such principal amount is of total capital as of such date.
The "effective interest rate" of each principal amount of
indebtedness referred to in clause (ii) of the next
preceding sentence will reflect the annual interest
requirements and to the extent applicable, amortization of
issue expenses, discounts and premiums, sinking fund call
premiums, expenses and discounts, refunding and retirement
expenses, discounts and premiums, and all other expenses
applicable to the issue.
3. The seventh paragraph of Section 7 of the Power Contract
is amended to read as follows:
Maine Yankee's "fuel costs" for any month shall include
(i) amounts chargeable in accordance with the Uniform System
in such month as amortization of costs of fuel assemblies
and components and burnup of nuclear materials for the Unit;
plus (ii) all other amounts properly chargeable in
accordance with the Uniform System to fuel costs for the
Unit less any applicable credits thereto; plus (iii) one-
twelfth of nine and eight-tenths percent (9.8%) or such
higher percentage as the Commission from time to time may
allow, but not more than twenty percent (20%), multiplied by
the equity investment for the financing of fuel inventory,
including nuclear materials and the cost of fabrication
thereof, for the Unit; plus (iv) to the extent not provided
for in any of the foregoing, all payments (or accruals
therefor or amortization thereof) with respect to
obligations incurred in connection with the financing or
leasing of fuel inventory, including nuclear materials and
the cost of fabrication thereof, for the Unit.
4. The last paragraph of Section 7 of the Power Contract is
amended to read as follows:
Maine Yankee will bill the Purchaser, as soon as
practicable after the end of each month, for all amounts
payable by the Purchaser with respect to the particular
month. Such bills will be rendered in such detail as the
Purchaser may reasonably request and may be rendered on an
estimated basis subject to corrective adjustments in
subsequent billing periods. All bills shall be due and
payable when rendered.
When all or any part of any bill shall remain unpaid
for more than thirty (30) days after the rendering thereof,
simple interest at an annual rate which is 2% in excess of
the current prime rate then in effect at The First National
Bank of Boston shall accrue to Maine Yankee from and after
the due date to the date payment is received and shall be
payable to Maine Yankee on either (i) such unpaid amount, or
(ii) in the event the amount of the bill is disputed, the
amount finally determined to be due and payable.
This Agreement shall become effective on January 1, 1984, or upon such
later date as it shall be permitted to become effective by the Federal
Energy Regulatory Commission or other governmental regulatory authority
having jurisdiction.
This Agreement may be executed in any number of counterparts and each
executed counterpart shall have the same force and effect as an original
instrument and as if all the parties to all of the counterparts had signed
the same instrument. Any signature page of this Agreement may be detached
from any counterpart without impairing the legal effect of any signatures
thereon, and may be attached to another counterpart of this contract
identical in form hereto but having attached it to one or more signature
pages.
IN WITNESS WHEREOF, the parties have executed this Agreement by their
respective officers hereto duly authorized, as of the date first above
written.
MAINE YANKEE ATOMIC POWER COMPANY
By
Its __________________________
Title
Address: Edison Drive
Augusta, Maine 04336
___________________________________
(PURCHASER)
By ______________________________
Its __________________________
Title
Address: _________________________