4.—(1) For every 10‑year forward period, a PGE (called in this regulation the specified PGE) must, in its contract with the Gasco, include a term for the specified PGE to obtain gas from the Gasco for the 10‑year forward period, of an amount not less than (A × B × C) − D for each year in that period.(2) For the purposes of paragraph (1), for any year in the 10‑year forward period —| (a) | A is the GDF for that year; | | (b) | B is —| (i) | 80% — if that year is the first or second year in that period; | | (ii) | 60% — if that year is the third or fourth year in that period; | | (iii) | 45% — if that year is the fifth or sixth year in that period; | | (iv) | 30% — if that year is the seventh or eighth year in that period; and | | (v) | 15% — if that year is the ninth or tenth year in that period; |
| | (c) | C is the percentage of the expected total electricity generation by all PGEs for that year that may be attributed to the specified PGE’s gas driven generating units, determined by the Authority in accordance with paragraph (3); and | | (d) | D is the amount of gas for which the specified PGE has already contracted to obtain for that year under each contract entered into pursuant to section 41I(1) of the Act and each contract mentioned in section 41I(2) of the Act. |
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| (3) To determine C for the specified PGE for any year in a 10‑year forward period, the Authority must use an economic dispatch model to simulate the expected total electricity generation by all PGEs for that year, and attribute a percentage of the expected total electricity generation to the specified PGE’s gas driven generating units, based on the respective capacities and efficiencies of the gas driven generating units of all PGEs. |
| (4) If any amount for a year in a 10‑year forward period calculated under paragraph (1) is negative, the amount is treated as zero. |
| (5) The Authority must, not later than 18 months before the start of a 10‑year forward period, notify each PGE in writing of their respective allocated quantities for each year in the period. |
| (6) However, the Authority may, at any time before the start of that 10‑year forward period, change any allocated quantity earlier notified to any PGE for any year in the period if new circumstances arise that necessitate the change, and the Authority must immediately notify the PGE in writing of the change. |
| (7) A specified PGE must, in its contract with the Gasco for any 10‑year forward period, include a term that the allocated quantity of gas which the specified PGE is to obtain from the Gasco for any year in the period, is to be modified to take into account any change made by the Authority to the allocated quantity for that year in the period. |
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