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EXHIBIT 10.14
AMENDMENT NO. 1 TO
ELECTRIC SERVICE AGREEMENT
DATED NOVEMBER 1, 1994
This AMENDMENT No. 1 TO ELECTRIC SERVICE AGREEMENT DATED NOVEMBER 11,
1994, made this 10th day of October , 1997, between EASTALCO ALUMINUM COMPANY, a
Delaware corporation and a wholly-owned subsidiary of Alumax Inc. ("Eastalco")
and THE POTOMAC EDISON COMPANY, d.b.a. Allegheny Power, a Maryland and Virginia
corporation and a wholly-owned subsidiary of Allegheny Energy, Inc. ("Potomac").
RECITALS
1. Eastalco and Potomac are parties to an Electric Service Agreement dated
November 11, 1994, (the "ESA" or the "Agreement") whereby Potomac, a public
utility engaged in the production, transmission, distribution and sale of
electric power and energy, sells such electric power and energy to Eastalco at
its aluminum reduction facility near Buckeystown Station, Frederick County,
Maryland.
2. The initial term of the ESA is for a period of seven years commencing April
1, 1993, with an automatic renewal for a first subsequent term of eighteen
months which would expire on September 30, 2001, unless either party gives
written notice of cancellation prior to April 1, 1998. Thereafter, the ESA shall
be renewed automatically for additional subsequent terms of one year each,
unless either party gives written notice of cancellation at least thirty months
prior to the expiration of any subsequent term.
3. Eastalco and Potomac have engaged in negotiations and reached agreement to
amend and extend the ESA for a fixed term through March 31, 2003, with certain
optional renewals. Eastalco and Potomac, therefore, reaffirm the ESA in its
entirety, amended as described below.
AGREEMENT
1. DEFINITIONS..
In addition to the terms defined above, the terms capitalized below
shall have the meaning set forth in the ESA, as amended by this Amendment No. 1.
2. MODIFICATION OF TERMS OF THE ESA.
A. Paragraph 2. TERM OF AGREEMENT. The provision shall be
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deleted and replaced with:
2. TERM OF AGREEMENT.
This Agreement shall become effective at 12:01 a.m., January 1, 1998,
or at 12:01 a.m. on the first day of the first month following receipt
of all required final orders by regulatory agencies (i) approving
Amendment No. 1 to the Agreement and/or (ii) approving any tariffs or
agreements necessitated by Amendment No. 1, whichever is later. In the
event that any necessary approvals are not received prior to January 1,
1998, billing will be made in accordance with the operation and billing
provisions of this Agreement as amended by Amendment No. 1, with an
appropriate adjustment to reflect the actual effective date being made
following approval. In the event that any final orders approving
Amendment No. 1 contain conditions which materially affect the rights
and responsibilities of either party, the affected party at its sole
option may declare Amendment No. 1 terminated. If Amendment No. 1 is
terminated as described above, or if Amendment No. 1 does not receive
all required final orders as described above, the original unamended
Agreement shall remain in effect, except that the written notice of
cancellation required by Paragraph 2 to be given prior to April 1,
1998, shall be required to be given prior to April 1, 1998, or sixty
(60) days after a final order approving Amendment No. 1 containing
conditions which materially affect the rights and responsibilities of
either party or a final decision denying approval of Amendment No. 1,
whichever is later.
Unless terminated earlier pursuant to Sub-Paragraph 3.2.1.
3, Sub-Paragraph 14.17, Sub-Paragraph 14.18 or Sub-Paragraph 14.19,
this Agreement will expire at 12: 01 a.m., April 1, 2003, provided one
or both parties give written notice of cancellation at least twelve
(12) months prior to expiration. If neither party gives such notice,
following the initial term this Agreement will be renewed annually for
subsequent terms of twelve (12) months unless either party gives
written notice of cancellation at least six (6) months prior to the
expiration of any term.
The parties intend for the services, prices and other terms
herein to be effective notwithstanding the availability to Eastalco of
retail access prior to April 1, 2003.
B. Sub-Paragraph 3.1. SALE OF SYSTEM CAPACITY. The provisions of
Sub-Paragraphs 3.1., 3.1.1., 3.1.2., and 3.1.3. shall be deleted and replaced
with the following:
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3.1. SALE OF SYSTEM CAPACITY.
Unless otherwise excused under the terms of this Agreement,
during all months of the year, Potomac shall make available to Eastalco
at least 110,000 kilowatts of System Capacity during Load Reduction
Periods and 350,000 kilowatts during other hours.
C. Sub-Paragraph 3.2.1.1. shall be amended by deleting "System Demand"
and inserting "Billing Capacity" in its place.
D. Sub-Paragraph 3.2.1.2. CAPACITY CHARGE. Sub-Paragraph 3.2.1.2. shall
be deleted in its entirety and the following inserted in its place:
3.2.1.2. An Additional Capacity Charge shall be billed as
follows:
1998 $135,000 per month
1999 $138,000 per month
2000 $119,000 per month
2001 and after $116,000 per month
E. Sub-Paragraph 3.2.1.3. Capacity Charge. The following is added
following Sub-Paragraph 3.2.1.2.:
3.2.1.3. The Capacity Charge and Additional Capacity Charge
shall remain in effect until modified pursuant to an agreement
or proceeding before the Maryland Public Service Commission
pursuant to which base rates are generally adjusted. If in
said agreement or proceeding the base rates for Eastalco are
not established pursuant to the Stipulation Regarding the
Establishment of Rates Under the Power Contract Between
Potomac Edison and Eastalco dated June 15, 1993 (the
"Stipulation") and the result is less favorable to Eastalco
than rates would be if established on such an allocation, then
Eastalco shall have the option to terminate this Agreement on
six (6) months written notice given within twelve (12) months
after the order becomes final, except that no such termination
shall be effective before March 31, 2000. Nothing herein shall
prevent Eastalco from providing such notice more than six (6)
months prior to March 31, 2000, but termination will not
become effective until March 31, 2000. Until termination of
this Agreement by Eastalco is effective, base rates for
Eastalco shall be as ordered in such order.
F. Sub-Paragraph 3.2.2. BILLING CAPACITY. Sub-Paragraph 3.2.2. shall be
deleted in its entirety and the following inserted in its place:
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3.2.2. BILLING CAPACITY.
For all months, Billing Capacity shall be the
greatest of:
3.2.2.1. .30 times (the sum of System Energy and
Off-System Energy divided by the number of hours in the
Billing Period); or,
3.2.2.2. .25 times the Maximum Instantaneous Demand;
or,
3.2.2.3. 110,000 kilowatts plus any Undermodulation
Increment pursuant to Sub-Paragraph 7.2.2.2.; or,
3.2.2.4. The highest result established by the
application of Sub-Paragraphs 3.2.2.1. through 3.2.2.3. above
during any of the three preceding months, except that only
months billed after Amendment No. 1 becomes effective may be
used in this calculation.
G. Sub-Paragraph 3.4. UNDERMODULATION CHARGE. Shall be deleted in its
entirety.
H. Sub-Paragraph 4.1. SALE OF CONTRACT ENERGY The provisions of
Sub-Paragraph 4.1 shall be amended by deleting the first sentence and by
deleting "310,000" wherever it appears and inserting "350,000" in its place.
I. Sub-Paragraph 4.2.2. PRICE OF SYSTEM ENERGY. The provisions of
Sub-Paragraph 4.2.2. shall be amended to read:
4.2.2. PRICE OF SYSTEM ENERGY
The price payable for System Energy shall be the sum
of the amounts set forth in Sub-Paragraphs 4.2.2.1., 4.2.2.2.,
and 4.2.3.
J. Sub-Paragraph 4.2.2.2. The provisions of Sub-Paragraph 4.2.2.2.
shall be amended to read:
4.2.2.2. The Incremental Energy multiplied by the Incremental
Energy Charge which shall mean the greater of: (i) the hourly
incremental Actual Cost of energy to Potomac, before sales to
non-affiliated utilities incurred during the hours of
Incremental Energy use during the Billing Period, plus 3.20
mills per kilowatt-hour (for billing periods during calendar
years 1998 and 1999) or 2.85 mills per kilowatt-hour (for
billing periods during calendar years 2000 through the term of
this Agreement), adjusted for Maryland gross receipts tax (or
such other applicable tax as may be enacted) and applicable
siting charges, or (ii) the Base Energy Charge.
K. Sub-Paragraph 4.2.2.3. The following is added following
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Sub-Paragraph 4.2.2.2.:
4.2.2.3. In the event that Potomac's fuel rate (or any
separately stated cost recovery method which may take its
place) ceases to become a separately stated rate and becomes
part of base rates in Maryland, the rate included with base
rates shall be the effective rate for purposes of
Sub-Paragraph 4.2.2.1.
L. Sub-Paragraph 4.4. PROFIT SHARING AGREEMENT shall be amended by
adding as its first sentence: "The Profit Sharing Surcharge shall be effective
through March 31, 2000, but shall cease thereafter."
M. Sub-Paragraph 4.4.2. shall be amended by deleting all but the first
sentence.
N. Paragraph 6. SALE OF IDLE CAPACITY. Shall be amended by deleting
"240,000" or "130,000" or "200,000" wherever they appear and inserting "110,000"
in their places.
O. Sub-Paragraph 7.1. DEFINITION OF LOAD REDUCTION PERIOD.
Sub-Paragraph 7.1 shall be deleted in its entirety and the following inserted in
its place:
7.1 DEFINITION OF LOAD REDUCTION PERIOD .
Potomac may designate as a Load Reduction Period any
number of hours during any day of any month that Potomac
reasonably believes will be a day on which exists the
potential for a shortage of generating capacity dedicated to
serving regulated load (including capacity owned or leased by
Allegheny subsidiaries Potomac, Monongahela Power Company, and
West Penn Power Company and capacity obtained under PURPA or
similar obligations); provided that (i) the designated hours
shall be only between 7 a.m. and 10 p.m., Monday through
Saturday, and (ii) the total number of Load Reduction Period
hours shall not exceed sixty (60) in any calendar week or five
hundred forty (540) in any calendar year. Potomac shall not
use a Load Reduction Period for economic purposes.
P. Sub-Paragraph 7.2. NOTICE OF REDUCED LOAD. SubParagraph 7.2 shall be
amended by deleting the existing provision in its entirety and inserting the
following in its place:
7.2. NOTICE OF REDUCE LOAD.
7.2.1. Potomac will give notice of a Load Reduction Period to
Eastalco no later than two hours prior to and no earlier than
four hours prior to the beginning of
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the Load Reduction Period.
Q. Sub-Paragraph 7.2.2. NOTICE OF RECUR LOAD. The following is added
following Sub-Paragraph 7.2.1.:
7.2.2. Together with notice of a Load Reduction Period,
Potomac will provide a non-binding estimate of the total
number of kilowatts by which Eastalco will be required to
reduce its load supplied by Potomac, and a nonbinding estimate
of the number of available kilowatts of Off-System Power and
the price of such Off-System Power Potomac will make available
to Eastalco during the designated Load Reduction Period.
Eastalco will have the option of reducing its load as metered
or purchasing Off-System Power (as specified in Paragraph 10)
or any combination thereof to reduce its load the total number
of kilowatts designated by Potomac in the notice. Eastalco
will notify Potomac of the number of kilowatts it will reduce
its load as metered, if any, (referred to as the "Committed
Load Modulation") within two hours of the notice of a Load
Reduction Period. The Committed Load Modulation will reduce
the amount of Off-System Power secured by Potomac. Eastalco
will reduce its load as metered by the number of kilowatts it
designates through changes not exceeding 50,000 kilowatts
every ten minutes, unless requested by Potomac to reduce its
load in larger blocks.
7.2.2.1. If Eastalco fails to notify Potomac of its
selected option as specified in Sub-Paragraph 7.2.2.,
then Eastalco will be deemed to have agreed to zero
Committed Load Modulation and Potomac will provide
Off-System Power in an amount up to Eastalco's actual
load during the Load Reduction Period, less 110,000
kilowatts.
7.2.2.2. If Eastalco notifies Potomac that it will
reduce its load as metered but fails to achieve the
Committed Load Modulation, then an amount equal to
the greatest undermodulation during the entire Load
Reduction Period for the affected Billing Period will
be added to the Billing Capacity (the
"Undermodulation Increment"). If there is more than
one Load Reduction Period during the affected Billing
Period, additions of any Undermodulation Increments
will be cumulative.
R. Paragraph 8. POTENTIAL PEAK HOURS. shall be deleted in its entirety.
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S. Sub-Paragraph 9.1.2. EMERGENCY FOR PRESERVATION OF SYSTEM INTEGRITY.
shall be amended by deleting "400,000" and inserting "560,000' in its place.
T. Sub-Paragraph 9.1.4. RESTORATION TO NORMAL OPERATIONS. shall be
amended by deleting "shall not declare any hour in a Recovery Period to be a
Potential Peak Hour nor shall it declare another emergency under Sub-Paragraph
9.1.2. or 9.2.; however, Potomac may declare Load Reduction Periods that include
hours in a Recovery Period" and replacing it with "may declare another
emergency under 9.1.2. or 9.2. and Load Reduction Periods that include hours in
a Recovery Period, but Eastalco will only be obligated to reduce load to the
extent Potomac actually delivers Off-System Power under Paragraph 10.1"
U. Paragraph 10. OPERATIONS DURING LOAD REDUCTION PERIODS AND FIRM LOAD
EMERGENCIES. shall be amended by deleting "200,000" and replacing it with
"110,000."
V. Sub-Paragraph 10.1. OBLIGATION OF POTOMAC. The provisions of
Sub-Paragraph 10.1 shall be amended by deleting "100,000 kilowatt-hours per hour
of the difference between Eastalco's average load of the previous week and
200,000 kilowatt-hours per hour" and inserting "240,000 kilowatt-hours per
hour."
W. Sub-Paragraph 10.2. PRICING. shall be deleted in its entirety and
the following inserted in its place:
10.2. PRICING
Potomac agrees to furnish Eastalco with the lowest
cost Off-System Power available and deliverable. The price
payable by Eastalco for Off-System Power during Load Reduction
Periods shall be the Actual Cost to Potomac plus 2 mills per
kilowatt-hour. The price payable by Eastalco for Off-System
Power during a Firm Load Emergency shall be Potomac's Actual
Cost. The price in either event shall include gross receipts
tax (or such other applicable tax as may be enacted), if
applicable. Potomac shall furnish Eastalco with a nonbinding
estimate of such price at the time it gives notice of a Load
Reduction Period under Sub-Paragraph 7.2. or a Firm Load
Emergency under Sub-Paragraph 9.2.4. If Eastalco does not
respond to such notice, Potomac will provide Off-System Power
(to the extent available and deliverable) in an amount up to
Eastalco's actual load during the Firm Load Emergency or Load
Reduction Period, less 110,000 kilowatts.
X. Sub-Paragraph 10.3 . INSUFFICIENT POWER. Shall be amended by
deleting "shall not declare any hour in a Recovery Period to be a Potential Peak
Hour nor shall it declare another
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emergency under Sub-Paragraph 9.1.2. or 9.2.; however, Potomac may declare Load
Reduction Periods that include hours in a Recovery Period" and replacing it with
"may declare another emergency under 9.1.2. or 9.2. and Load Reduction Periods
that include hours in a Recovery Period, but Eastalco will only be obligated to
reduce load to the extent Potomac actually delivers Off-System Power under
Paragraph 10.1"
Y. Paragraph 14. MISCELLANEOUS. The following SubParagraphs 14.16.,
14.17., 14.18. and 14.19. are added:
14.16. RIGHT OF FIRST REFUSAL.
14.16.1. GRANT OF RIGHT OF FIRST REFUSAL.
14.16.1.1. If upon expiration of the term of
this Agreement Eastalco elects to access the electric
power market to obtain electric power from a source
other than Potomac ("Retail Access")or to
self-generate, Eastalco shall grant to Potomac, its
affiliates, and successors and assigns of Potomac and
their affiliates (jointly referred to as "Allegheny
Affiliates"), a right of first refusal ("Right") to
provide electric power to Eastalco at a price no
higher than the avoidable cost (as defined in
Sub-Paragraph 14.16.3.2.) of Eastalco's preferred
alternative power supply from a written, enforceable
offer submitted or offered to or obtained by Eastalco
from such third party supplier; provided, however,
that the Allegheny Affiliates supply of such electric
power pursuant to such Right shall be equivalent to
the offer of Eastalco's preferred alternative power
supply and in accord with a reasonable and mutually
acceptable agreement.
14.16.1.2. If upon expiration of this
Agreement Eastalco does not elect Retail Access or
self-generation, then Allegheny Affiliates shall not
be granted, nor shall they possess such Right, unless
or until Eastalco elects Retail Access or
self-generates, provided however, that except as may
be set forth in Sub-Paragraph 14.16.3., in no event
will such Right exist or be available to any
Allegheny Affiliate beyond the period described in
Sub-Paragraph 14.16.2.1.
14.16.1.3. The Allegheny Affiliates shall
not have the Right if this Agreement is terminated by
Eastalco pursuant to either Sub-Paragraph 3.2.1.3.,
14.17, 14.18 or 14.19., regardless of
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whether Eastalco elects Retail Access or
selfgenerates.
14.16.2. APPLICABILITY.
14.16.2.1. The Allegheny Affiliates shall
have the right to use the Right as often as Eastalco
shall solicit bids and/or receive offers (under terms
equivalent to the offer of Eastalco's preferred
alternative power supply and in accordance with a
reasonable and mutually acceptable agreement),
following expiration of this Agreement, for all
months and for the same amount of electric power each
month following the expiration of the Agreement
through March, 2005 or for no months.
14.16.2.2. This right applies only to the
electric power requirements of the two existing
Eastalco potlines and auxiliary loads for those
potlines, as of the date Amendment No. 1 to this
Agreement becomes effective.
14.16.3. AVOIDABLE COST.
14.16.3.1. If Eastalco's alternative supply
is a potential purchase from a third party generator,
utility or marketer, the avoidable cost shall be the
cost of power that would be purchased from the third
party generator, utility or marketer, taking into
account the present value of any benefits or costs
offered by the supplier that would occur after March
31, 2005. In the event that Eastalco's preferred
alternative power supply that the Allegheny
Affiliates must match incorporates benefits extending
past March 31, 2005, the Allegheny Affiliates shall
have the right to match the entire term with the
associated benefits or costs, provided, however, that
such right to match the entire term shall not apply
if the alternative supply is a generation facility as
described in Sub-Paragraph 14.16.3.2., unless
Eastalco specifically agrees.
14.16.3.2. If the alternative supply is a
new generator in service, or capable of being or
projected to be in service, by April 1, 2003 but not
under construction as of September 1, 1997, and in
which Eastalco or any of its affiliates has an
interest by ownership, lease or similar arrangement,
then the avoidable cost shall be the
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costs of fuel, and variable operating and maintenance
costs that can be avoided as a result of not
operating the generator to supply Eastalco.
14.16.4. PROCEDURE.
14.16.4.1. Following each bid solicitation
and/or offer received by Eastalco, pursuant to
SubParagraph 14.16.2.1. hereof, Eastalco shall
provide to the Allegheny Affiliate identified as the
affiliate to exercise the Right, a written
description of Eastalco's preferred alternative
supply of electric power available to Eastalco, which
notice shall include, at a minimum, the price for
such electric power, the term, delivery points, and
such other information that Eastalco may provide or,
subject to any confidentiality obligations of
Eastalco, the Allegheny Affiliate reasonably requires
to develop a matching offer. Eastalco shall provide
the written description certified by an officer of
Eastalco. Upon receipt of such description, the
Allegheny Affiliate shall have thirty (30) days to
inform Eastalco that it has decided to exercise such
Right at the price and upon the terms provided in the
notice from Eastalco. If the Allegheny Affiliate
fails to exercise the Right within such period, the
Right for that period only shall be deemed to have
been forfeited by such Affiliate and Eastalco shall
exercise its option with its preferred alternative
supplier. If the bid period is shorter than the total
period specified in 14.16.2, the Allegheny Affiliate
will retain the Right for the remaining bids
solicited by and/or offers received by Eastalco
during this period.
14.16.4.2. In no event shall any Allegheny
Affiliate be entitled to review, inspect, copy or
study any document, information, or data that
Eastalco may receive from any third party supplier.
Potomac and/or the Allegheny Affiliate shall have the
right to retain an independent third party reasonably
acceptable to Eastalco to audit, at any time, the
preferred alternative supply offer to Eastalco in
order to verify said offer. The third party shall
maintain the confidentiality of the offer and shall
provide no information or documents to Potomac and
shall only confirm or deny that Eastalco's preferred
alternative supply offer is as set forth in the
notice to Potomac as provided in subparagraph
14.16.4.1.
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14.17. PURPA SURCHARGE.
If Potomac is permitted to recover the costs of any qualifying
facility as defined by the Public Utilities Regulatory Policy Act
("PURPA costs"), including but not limited to costs associated with the
project currently known as AES Warrior Run, whether as a surcharge or
by inclusion of such cost in determination of other charges and whether
determined in Maryland Public Service Commission proceeding in which
rates generally are adjusted or in a more limited proceeding or in an
agreement approved by the Maryland Public Service Commission, Eastalco
shall pay the costs as allocated in said proceeding or agreement to
Eastalco. If in said agreement or proceeding said costs for Eastalco
are not established pursuant to the Stipulation Regarding the
Establishment of Rates Under the Power Contract Between Potomac Edison
and Eastalco dated June 15, 1993 (the "Stipulation") and the result is
less favorable to Eastalco than rates would be if established on such
an allocation, then Eastalco shall have the option to terminate this
Agreement on six (6) months written notice given within twelve (12)
months after the order becomes final, except that no such termination
shall be effective before March 31, 2000. Nothing herein shall prevent
Eastalco from providing such notice more than six (6) months prior to
March 31, 2000, but termination will not become effective until March
31, 2000. Until termination of this Agreement by Eastalco is effective,
rates for Eastalco shall be as specified in such order.
14.18. TRANSITION OF STRANDED COSTS.
In the event that transition or stranded costs are required to
be collected by Potomac from Eastalco during the initial term or any
renewal periods of this Agreement pursuant to a statute or an order
from any agency having jurisdiction and the result is less favorable to
Eastalco than had any such order or requirement not been issued, then
Eastalco shall have the option to terminate this Agreement on six (6)
months written notice given within twelve (12) months after the order
becomes final, except that no such termination shall be effective until
the later of March 31, 2000 or the time transition or stranded costs
are required to be collected by Potomac from Eastalco. Nothing herein
shall prevent Eastalco from providing such notice more than six (6)
months prior to March 31, 2000, but termination will not become
effective until March 31, 2000. Nothing herein precludes either Potomac
or Eastalco from taking any position at any time before
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any agency having jurisdiction on any aspect of the issue of transition
or stranded costs.
Z. Paragraph 15. DEFINITIONS.
The following Sub-Paragraphs shall be deleted:
15.28. "Load Modulation"
15.45. "Potential Peak Hours"
The following Sub-Paragraphs shall be added:
following Sub-Paragraph 15.4:
15.4a. "Allegheny Affiliates" shall have the meaning
set forth in Sub-Paragraph 14.16.
following Sub-Paragraph 15.17:
15.17a. "Committed Load Modulation" shall have the
meaning set forth in Sub-Paragraph 7.2.2.
following Sub-Paragraph 15.24:
15.24a. "Full Retail Access" shall mean the
availability to Eastalco of retail access to generation
suppliers other than Potomac under the laws of Maryland and/or
regulations of the Maryland Public Service Commission.
following Sub-Paragraph 15.54:
15.54a. "Stipulation" shall mean the "Stipulation
Regarding the Establishment of Rates Under the Power Contract
Between Potomac Edison and Eastalco" dated June 15, 1993.
Sub-Paragraph 15.4. "Allegheny" shall be amended to read:
15.4. "Allegheny" shall mean Allegheny Energy, Inc., a
Maryland corporation and the parent corporation of Potomac.
Sub-Paragraph 15.5. "Allegheny System" shall be amended by deleting "Potomac,
the Monongahela Power Company and the West Penn Power Company."
Sub-Paragraph 15.19. "Effective Cost of Power" shall be amended to read:
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15.19 "Effective Cost of Power" shall mean the quotient of (i)
the sum of all charges by Potomac that Eastalco reasonably
would have incurred for one year of operation at then current
average plant load (but no more than 350,000 kilowatts),
divided by (ii) then current average plant load times the
number of hours in the year less 34 million kilowatt-hours.
The calculation of Effective Cost of Power shall be made in
accordance with the formula set forth in Schedule A attached
hereto, amended as necessary to reflect this Agreement as
amended.
Sub-Paragraph 15.42.4. "Operating Flexibility" shall be amended by deleting "or
8."
Sub-Paragraph 15.58. "System Demand" shall be amended by deleting "purchased
during such hour."
Sub-Paragraph 15.60 "Undermodulation Charges shall be retitled "Undermodulation
Increment" and shall be amended to read:
15.60. "Undermodulation Increment" shall have the meaning set
forth in Sub-Paragraph 7.2.2.2.
AA. The Table of Contents of the ESA shall be amended to reflect the
deletion, addition and amendments to the titles of the Paragraphs and
Sub-Paragraphs set forth above.
BB. The Stipulation Regarding the Establishment of Rates under the
Power Contract between Potomac Edison and Eastalco, entered into in June, 1993,
shall remain effective.
3. CONFIDENTIALITY.
This Amendment No. 1 and any data exchanged by Eastalco and Potomac
and/or provided by either or both to the Maryland Public Service Commission or
to any other person, heretofore and/or hereafter, as part of the negotiation and
approval process for this Amendment No. 1, are considered proprietary and
confidential by Potomac Edison and Eastalco, and the parties agree to keep them
confidential. Accordingly, this Amendment No. 1 and any associated filings,
including any necessary or required changes in Potomac's tariff, will be filed
with the Maryland Public Service Commission with a request that they be treated
in a confidential manner. This provision shall survive any termination or
expiration of the ESA.
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4. COUNTER PARTS.
This Amendment No. 1 will be signed in counterparts, each of which will
be an original.
IN WITNESS WHEREOF, the parties hereto have executed this Amendment No. 1 on the
date first set forth above.
WITNESS: THE POTOMAC EDISON COMPANY
/s/ /s/ Michael P. Morrell
- --------------------------------- -------------------------------
By: Michael P. Morrell
Vice President
WITNESS: EASTALCO ALUMINUM COMPANY
/s/ /s/ Peter E. Aylen
- --------------------------------- -------------------------------
By: Peter E. Aylen
Vice President
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Eaamendl.fin
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