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Committee clarifies that tariff pass-through in agreement refers to regulatory transmission changes, not market fluctuations
Summary
Members concluded the agreement was intended to allow pass-through only for utility-defined (regulatory) transmission-rate changes rather than routine market-rate movement; language will remain under counsel's drafting.
During review of section 5, a committee member (S3) flagged wording that appeared to permit a seller to allocate to customers any increase arising from a "tariff law, order rule...transmission rate." The member asked whether that language would allow market-rate increases to be passed to customers.
Committee members and staff clarified the intended reading: the drafters meant a utility-defined transmission rate change (a regulatory change) rather than market-rate fluctuations. "So it's it's like a regulatory transmission rate change, not a market rate transmission rate change," the member said when summarizing counsel's explanation. The committee accepted that clarification while noting contract language remains precise and may require future scrutiny if market conditions change.
There was no formal amendment to the contract language recorded in the transcript on this point; members relied on counsel's interpretation as presented in the meeting summary.
