Res 2011-061 - Laserfiche WebLink

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(a) Resource Disputes shall be initiated as set forth above in Article 15.1.1, except that, in the case of the construction of new generation, the dispute shall be initiated by the Customer's submission of Customer's Demand for non - binding arbitration to the LCRA General Manager within sixty (60) days of the Customer's receipt from LCRA of written notice of the filing by LCRA of a permit application with the Texas Commission on Environmental Quality, or its successor in function. If LCRA decides to purchase an existing power plant, or enter into a purchased power agreement with a term of more than ten (10) years, the dispute shall be initiated by the Customer's submission of Customer's Demand for non - binding arbitration to the LCRA General Manager within forty-five (45) days of the Customer's receipt from LCRA of written notice of the board's authorization to execute an asset purchase agreement or a purchased power agreement with a term of more than ten (10) years or other written commitment, together with a true and correct copy of the agreement. It is the intent of the Parties that Resource Disputes be resolved before LCRA issues bonds or other legal debt for the construction or acquisition of Additional Generation Capacity, and in this regard LCRA agrees to notify Customer of LCRA's intent to construct new generation, negotiate the acquisition of an existing power plant, or execute a purchased power agreement with a term of more than ten (10) years as early as reasonably practicable. (b) With respect to Resource Disputes, arbitrators will be selected as set forth above in Article 15.1.1. The Parties further agree that the only substantive decision for the arbitrators on the merits of any Resource Dispute shall be whether, upon a showing by a preponderance of the evidence, the decision regarding the construction or acquisition of Additional Generation Capacity is unreasonable. Customer shall have the burden to prove that an LCRA resource decision is unreasonable. The appropriate standard for the arbitrators to apply when determining if a resource decision is unreasonable shall be whether LCRA: Failed to exercise that judgment and choose one of that select range of options that a reasonable utility manager would exercise or choose in the same or similar circumstances given the information or alternatives available at the point in time such judgment is exercised or option is chosen. (c) In the event the arbitrators decide that the construction or acquisition of the Additional Generation Capacity is unreasonable, the Resource Dispute shall be sent back to the