Kilian Desroches

In the context of the development of the annual implementation program and the ninety-day schedule, project participants must also agree to conditions that allow or frame changes to the annual delivery program and procedures for allocating excess lifting operations on a ratifiable and equitable basis. The cooperation and approval of all project participants is crucial to this planning process. In August 2014, Duke Energy Corporation (Duke) and Calpine Corporation (Calpine), a competing wholesale electricity vendor in Florida, agreed to purchase the Osprey Energy Center (Osprey), a combined gas-gas-natural gas plant in Florida, in Calpine. The structure of the proposed transaction included a toll agreement that gave Duke responsibility for determining the amount of electricity to be generated in Osprey and purchasing the fuel needed to generate that electricity. Essentially, the toll agreement allowed Duke to take operational control of the Osprey facility and limited Calpine`s role to « the mechanical operation of the Osprey facility in accordance with Duke`s instructions. » [1] Although such toll agreements, including provisions that give buyers control over generation, are becoming increasingly common in the Osprey energy industry and had no independent justification for the transaction. [3] In fact, the toll agreement was intended to expedite FERC`s approval of the transaction by allowing Duke to prove that it « already controls » Osprey, so that « no further damage could occur if Duke is allowed to acquire Osprey directly. » [4] The annual LNG delivery programme should be drawn up on the basis of the information provided by all parties to the toll and implemented in a non-discriminatory manner. Through the annual delivery program, toll parties deliver their LNG and by-products to third parties and thus monetize their gas claims. Information on planned plant maintenance and decommissioning, gas supply expectations and other relevant planned events that will impact the development of the service delivery program will be collected annually from all project participants […].