If one party has an appropriate basis to challenge the solvency or effectiveness of the other party, that party may require the other party to provide a credit, cash deposit, guarantee or guarantee, a guarantee agreement or any other mutually acceptable method of providing the service. The second part has three working days to give such assurances; If such assurances are not provided, this will be a case of delay resulting in the termination and liquidation of all WSPP transactions between the parties. The obligation on the second party to present an accused of credit, deposits, etc., is limited to the amount of damage that the party would be liable for non-performance; That is, the cover. The agreement also lists certain events that would allow reasonable assurance, including (1) the knowledge that a party is not acting under other contracts; (2) a party that exceeds a credit or trading limit; (3) debt downgrade below the level of investment; and (4) substantial changes in market prices that have a significant impact on a party`s performance. Each regulated vendor (electricity distributor and investor supplier) must submit price reports to FERC (submitted by WSPP) indicating prices and margins for each transaction. The price data is public. Margin data is confidential for a one-year period. Confirmation contracts of one year or less should not be submitted to FERC. FERC-regulated sellers who enter into confirmation contracts of more than one year must submit these agreements to ferC.
Compensation of payments is not necessary, but permitted. In order to facilitate comparison between companies wishing to connect net, a member can execute the WSPP compensation agreement (Figure A of the agreement). If its counterparty has signed the compensation agreement, then the parties become net. Members who approved the network will be published on the WSPP homepage. Confirmation agreements include transaction-specific terms, including changes to the basic agreement that the parties mutually approve. Oral confirmation agreements are allowed for transactions of less than one week. For transactions of a week or more, written confirmations are required. At the buyer`s request or at the seller`s choice, the seller must provide written confirmation within five days of the request or agreement. The buyer has five days to respond. If the buyer does not react, the seller`s written confirmation is considered final. If the seller does not provide written confirmation, the buyer can submit a written confirmation within five days of the expiry of the deadline for filing a written confirmation. If the seller does not react within five business days, the buyer`s confirmation is considered final.
If a party declares at any time that it will not accept changes to the WSPP agreement proposed by a party, those amendments will be rejected.