Contract on the Use of Interconnect Capacity

Banja Luka, the transmission service provider, and a participant. The contract, numbered EPP-I-00-03-00004-00, Task Order 5, was implemented by Advanced Engineering Associates International, Inc. as the USAID contractor. The contract outlines the terms and conditions for the use of interconnect capacity between the participant and the transmission service provider. Article 1 states that the transmission service provider has informed the Independent System Operator (ISO) that a right to use cross-border capacities was allocated to the participant in an auction of standard products. The execution of this contract by the participant and the transmission service provider will finalize the allocation of the referenced cross-border capacity. The contract specifies that the first contract between the transmission service provider and the participant will be the base contract and a capacity allocation confirmation. Thereafter, only capacity allocation confirmations shall be executed. The base contract and capacity allocation confirmations are considered to be contractual transactions that finalize the allocation of cross-border capacity. Article 3 outlines the procedures for the transmission service provider to send a base contract and/or capacity allocation confirmation to the participant after receiving notification of an award of cross-border capacity in an auction from the ISO. The participant is required to return the signed base contract and/or capacity allocation confirmation within two business days of its receipt from the transmission service provider. The contract also specifies the payment procedures for the participant to pay the amount indicated in the invoice for the interconnect capacity into the account of the transmission service provider. The participant is required to cause the paying bank to electronically notify both the transmission service provider and the ISO of payment. Article 6 states that if the participant fails to pay its financial obligations for any capacity on or before the due date stated on the invoice, the allocation of capacity to the participant will be cancelled, and the participant will be unable to participate in auctions. The transmission service provider is required to inform the ISO of the participant's failure to pay, and the ISO shall inform the participant of its loss of the ability to participate in capacity allocation auctions. The contract also outlines the procedures for dispute resolution and termination. Article 7 states that if the participant has a dispute with regard to this contract or any transaction evidenced by capacity allocation confirmations, it shall lodge a complaint with the State Electricity Regulatory Commission (SERC) within 15 days from the day of discovery of a possible irregularity. Article 10 states that the participant may submit a written notice of contract termination with a termination period of 30 days from the day of request submission. The contract is concluded for an indefinite period, and the contracting parties agree that mutual obligations not regulated by this contract shall be addressed according to relevant primary and secondary legislation. The contract shall enter into force on the day of its signing by authorized representatives of the contracting parties.