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contrat capacitaire

English translation: capacity contract

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GLOSSARY ENTRY (DERIVED FROM QUESTION BELOW)
French term or phrase:contrat capacitaire
English translation:capacity contract
Entered by: Stephanie Mitchel
Options:
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22:07 Mar 9, 2004
French to English translations [PRO]
Bus/Financial - Manufacturing / auto mfgr, internal operations
French term or phrase: contrat capacitaire
In this memo on internal ops, TQC stands for 'total quality control.' I need to know what a 'contrat capacitaire' is.

"Meilleure négociation des contrats capacitaires permettant une réduction du TQC"
Stephanie Mitchel
United States
Local time: 20:57
capacity contract ???
Explanation:
Are they negotiating electric power contracts? By getting reliable supply, they improve reliability and thus quality. I hardly think they mean to say that TQC is reduced! Maybe it's cost is, but surely the aim is to improve TQC!

<<Bilateral transactions are simply a contractual agreement
between two parties. These are often thought of as forwards or
derivatives, but they can also be structured agreements such as a
tolling agreement, a capacity contract or even a full requirement
index supply contract. Bilateral deals come in every imaginable
form>>

For
contracts that qualify for the normal purchases and normal sales exception under
paragraph 10(b)(4), the entity shall document the basis for concluding that the
agreement is a capacity contract.
Differentiating between a capacity contract and a traditional option
contract (that is, a financial option on electricity) is a matter of
judgment that depends on the facts and circumstances. The
characteristics of a capacity contract, which are set forth in paragraph
540, should be considered in that evaluation

Capacity contract
An agreement by an owner of capacity to sell the right to that capacity to
another party to satisfy its obligations. A capacity contract for power has
characteristics that include, but are not limited to, the following:
a. The contract usually specifies the power plant or group of power plants
providing the electricity.
b. The strike price (paid upon exercise) includes pricing terms to compensate
the plant operator for variable operations and maintenance costs expected
during the specified production periods.
c. The specified quantity is based on individual needs of parties to the
agreement.
d. The title transfer point is usually at one or a group of specified physical
delivery point(s), as opposed to a major market hub.
e. The contract usually specifies certain operational performance by the
facility (for example ...>>

Selected response from:

xxxBourth
Local time: 02:57
Grading comment
thanks
4 KudoZ points were awarded for this answer

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Summary of answers provided
3 +1capacity contract ???xxxBourth


  

Answers


4 hrs   confidence: Answerer confidence 3/5Answerer confidence 3/5 peer agreement (net): +1
capacity contract ???


Explanation:
Are they negotiating electric power contracts? By getting reliable supply, they improve reliability and thus quality. I hardly think they mean to say that TQC is reduced! Maybe it's cost is, but surely the aim is to improve TQC!

<<Bilateral transactions are simply a contractual agreement
between two parties. These are often thought of as forwards or
derivatives, but they can also be structured agreements such as a
tolling agreement, a capacity contract or even a full requirement
index supply contract. Bilateral deals come in every imaginable
form>>

For
contracts that qualify for the normal purchases and normal sales exception under
paragraph 10(b)(4), the entity shall document the basis for concluding that the
agreement is a capacity contract.
Differentiating between a capacity contract and a traditional option
contract (that is, a financial option on electricity) is a matter of
judgment that depends on the facts and circumstances. The
characteristics of a capacity contract, which are set forth in paragraph
540, should be considered in that evaluation

Capacity contract
An agreement by an owner of capacity to sell the right to that capacity to
another party to satisfy its obligations. A capacity contract for power has
characteristics that include, but are not limited to, the following:
a. The contract usually specifies the power plant or group of power plants
providing the electricity.
b. The strike price (paid upon exercise) includes pricing terms to compensate
the plant operator for variable operations and maintenance costs expected
during the specified production periods.
c. The specified quantity is based on individual needs of parties to the
agreement.
d. The title transfer point is usually at one or a group of specified physical
delivery point(s), as opposed to a major market hub.
e. The contract usually specifies certain operational performance by the
facility (for example ...>>



xxxBourth
Local time: 02:57
Native speaker of: Native in EnglishEnglish
PRO pts in category: 188
Grading comment
thanks

Peer comments on this answer (and responses from the answerer)
agree  Carolyn Denoncourt: I came to the same conclusion. Perhaps they mean a reduction in the COSTS associated with TQC due to a fixed supply from a capacity contract.
31 mins
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