Section 17Sec./Art. 17

Expiration of Microgrid System Provider Service Contract. In the event of a distribution grid extension upon the expiration of an MSC, the DU shall have the option to acquire the microgrid system of the MGSP, and resume its obligation to provide distribution services and connection, and supply electricity to the said area subject to the approval of the ERC and pursuant to the detailed transition procedure of the DOE provided in Sections 11 and 12 of this Act. If a DUs distribution system is connected to the grid, the resumption of the DUs obligation over the area shall no longer entitle the end-users in the said area to the UCME.

Should the DU choose not to exercise its option, or should there be no distribution grid extension upon the expiration of an MSC, a CSP shall be conducted pursuant to Section 8 and 12 of this Act to determine who shall provide integrated power generation and distribution services in the area: Provided, That the MGSP with the expiring MSC over the area that participates in such CSP shall have the exclusive right to tender a lower offer within seven (7) calendar days from the announcement of the winning MGSP in the CSP: Provided, further, That such tender shall be submitted to the DOE or its authorized entity, whichever is applicable, and the winning MGSP. The ERC shall determine whether the awarded MGSP shall be entitled to subsidy in accordance with Section 10 of this Act.