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Transaction Confirmation for Asset Management Arrangement between Con Edison and Sellers

Strategic Insights

— 2 min read

Con Edison, a leading utility company, has signed a transaction confirmation for an asset management arrangement with a seller. The agreement, dated March 25, 2015, outlines the terms and conditions for the sale and delivery of gas between the two parties. This transaction confirmation is executed in accordance with the NAESB Base Contract for Sale and Purchase of Natural Gas and FERC's rules and regulations for an asset management arrangement. The agreement specifies the release of gas transportation assets from Con Edison to the seller, with a daily contract quantity of 25,000 Dth/day, for a period of one year.

Key Takeaways:

  • The transaction confirmation is executed between Con Edison and a seller, with a duration of one year.
  • The agreement outlines the release of gas transportation assets from Con Edison to the seller, with a daily contract quantity of 25,000 Dth/day.
  • The released assets include transportation capacity with a daily contract quantity of 25,000 Dth/day, with specific receipt points and delivery points specified in the agreement.
  • Con Edison has the right to recall the released assets at any time during the delivery period, in the event of non-performance by the seller.
  • The agreement establishes the sales and delivery of gas between Con Edison and the seller, with a daily delivery quantity of 25,000 Dth/day, during the winter period.
  • Con Edison is required to notify the seller of gas delivery scheduling on a day-ahead basis, with specific invoicing and payment terms outlined in the agreement.
  • The parties agree that this transaction confirmation does not constitute a partnership for federal income tax purposes, and that the seller is an independent contractor with respect to the services provided under the agreement.

Statistics:

  • Daily contract quantity: 25,000 Dth/day
  • Period of agreement: One year (April 1, 2015 to March 31, 2016)
  • Gas delivery quantity during winter period: 25,000 Dth/day
  • Notification deadline for gas delivery scheduling: 9:15 A.M. Eastern Prevailing Time
  • Invoicing deadline: 15th Day of the Month following the applicable Month of the Delivery Period
  • Payment deadline: 25th Day of the Month following the applicable Month of the Delivery Period or 10 Days after receipt of invoice

Sources:

  • NAESB Base Contract for Sale and Purchase of Natural Gas, dated August 11, 2005, as amended on February 19, 2013, August 13, 2013, and March 12, 2015
  • FERC Order Nos. 712 et seq.
  • Consolidated Edison Company of New York, Inc. and Orange and Rockland Utilities, Inc. By: I o D i) I C H I 1--l A R. A Title: NAGEr 4

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