FIT Contract Version 5.0.1 - July 12, 2017
The IESO has posted version 5.0.1 of the FIT Contract, which includes enhanced language to clarify the intention of Secured Lenders’ rights in the event of a termination due to a Supplier Event of Default, provides further clarity regarding the role of Independent Engineers and incorporates a small number of administrative refinements.
Only a Secured Lender that is both at Arm’s Length with the Supplier, and not acting as either an EPC Contractor or in a similar role in respect of the Facility, will be entitled to receive a Sponsor Statement and the option of entering into a New Agreement under Section 11.2(g) in the event of a termination due to a Supplier Event of Default. These changes would ensure that a New Agreement is only allowed in situations where the Secured Lender is not involved in the day-to-day development of the Facility.
An Independent Engineer will be required to certify in any IE Certificate or similar certificate that it delivers that it is not acting, and has not acted, for the Supplier, the EPC Contractor or a Secured Lender to the Supplier in any professional role or capacity, other than as Independent Engineer, in respect of the Facility or any other Facility owned by the Supplier or an Affiliate of the Supplier.
Changes to the FIT Contract are being introduced in an effort to provide greater clarity with respect to the independence of Independent Engineers acting for a Facility and the rights of Secured Lenders in respect of obtaining New Agreements.
FIT 5 Applicants are strongly encouraged to review the updated FIT Contract, version 5.0.1. Should an Applicant wish to withdraw its Application as a result of these amendments, please submit a completed Prescribed Form: FIT 5.0 Application Withdrawal to the IESO at FIT@ieso.ca. Withdrawal requests will be accepted from July 12 to no later than 5:00 p.m. EPT on Tuesday, July 25, 2017. As a reminder, only the Owner Contact using the email address indicated in the Application may withdraw an Application on behalf of an Applicant. Note that capitalization used herein is consistent with the FIT Standard Definitions, Version 5.0.1.