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Note 10 - Wholesale Power Purchase Agreement
12 Months Ended
Dec. 31, 2012
Notes  
Note 10 - Wholesale Power Purchase Agreement

NOTE 10 - WHOLESALE POWER PURCHASE AGREEMENT

 

The Company’s wholesale power purchase agreement provides, in addition to certain collateral calls, that the Company will provide additional credit to cover mark to market risk in connection with the purchase and sale of long term power.  A mark to market credit risk occurs when the price of power purchased is greater than the current market price.  While the Company believes it has purchased its current power at the lowest prices, should a collateral call occur, this could limit the Company’s working capital and potentially cause liquidation of power positions should the Company fail to meet the collateral call.