Relating to temporary emergency electric energy facilities.

Contracts

• Mandatory "Regulatory Out" Clause: All new leases and MSA addendums must include a provision stating terms are subject to alteration or termination based on PUC orders or rules (Subsection f-1).
• Technical Warranties: Vendor agreements must be amended to include representations that equipment meets statutory specs: maximum 5 MW capacity, transportable within 12 hours, and capable of startup within 3 hours.
• Grandfathering Strategy: Isolate pre-September 1, 2025 leases. Do not amend these contracts in a way that constitutes a "new" agreement, or you will lose grandfathered status.

Hiring/Training

• Procurement Officers: Must be retrained to stop sole-source leasing for emergency generation unless the specific "Significant Power Outage" criteria are met.
• Engineering/Operations: Must verify that deployed units are technically isolated from the bulk power system and cannot be included in ISO pricing models.

Reporting & Record-Keeping

• Pre-Authorization Filings: Legal teams must prepare to file for authorization of total generating capacity and functions via a rate proceeding or contested case hearing *before* entering leases.
• Emergency Justification Package: If bypassing bidding due to a "Significant Power Outage," Operations must compile a defense package for the next rate case proving:
• 1. Lack of alternative capacity.
• 2. Leased capacity did not "significantly exceed" restoration needs.
• 3. Lease duration did not "significantly exceed" outage duration.

Fees & Costs

• Cost Recovery Risk: The primary financial impact is not a fee, but a penalty. Non-compliant leases will result in the PUC denying rate recovery, forcing shareholders to absorb the full cost of the lease.
• Litigation Costs: Budget for increased legal spend regarding the new contested case hearings required for capacity authorization.