ANNUAL EQUIVALENT AVAILABILITY FACTOR Clause Samples
The Annual Equivalent Availability Factor clause defines the percentage of time a facility or equipment is expected to be operational and available for use over the course of a year. It typically sets a benchmark or minimum threshold for availability, calculated by comparing the actual operational hours to the total possible hours in a year, often excluding scheduled maintenance periods. This clause ensures that the service provider maintains a reliable level of performance, and it helps allocate risk by establishing clear expectations for uptime and potential remedies if the agreed availability is not met.
ANNUAL EQUIVALENT AVAILABILITY FACTOR. To the extent the Commercial Operations Date occurs on a date other than the first day of a Measurement Period, the period between the Commercial Operations Date and the first (1st) day of the next Measurement Period if any, shall be ignored for purposes of this availability test. For the purposes of calculating the Annual EAF for the first three (3) full Measurement Periods in the first Contract Year, the calculation will assume that the Facility is one hundred percent (100%) available for the remaining hours of the Contract Year. The Annual Equivalent Availability Factor shall be calculated as follows: Annual Equivalent Availability Factor = Where: PH is period hours (8760 hours; except leap year is 8784) minus Excluded Time. Available Hours (AH) is the number of hours that the Facility is not on Outage. It is sum of all Service Hours (SH) + Reserve Shutdown Hours (RSH). An “Outage” exists whenever the entire Facility is offline and unable to charge or discharge electric energy and is not in Reserve Shutdown state. Service Hours (SH) is the number of hours during the LD Period the Facility is online and (i) charging from the Company System or (ii) discharging electric energy to the Company System. Reserve Shutdown Hours (RSH) is the number of hours the Facility is available but not charging or discharging electric energy or is offline for reasons other than Seller-Attributable Unavailability. EPDH is the equivalent planned derated hours, including Planned Derations (PD) and Maintenance Derations (D4). A Planned Deration is when the Facility experiences a Deration scheduled well in advance and for a predetermined duration. A Maintenance Deration is a Deration that can be deferred beyond the end of the next weekend (Sunday at midnight or before Sunday turns into Monday) but requires a reduction in capacity before the next Planned Deration (PD). Each individual Deration is transformed into equivalent full outage hour(s) by multiplying the actual duration of the Deration (hours) by (i) the size of the reduction (MW) divided by (ii) Maximum Rated Output. These equivalent hour(s) are then summed. EUDH is the equivalent unplanned derated hours. An Unplanned Deration (Forced Derating) occurs when the Facility experiences a Deration that requires a reduction in availability before the end of the nearest following weekend. Unplanned Derations include only those due to Seller-Attributable Unavailability or those by Company pursuant to Section 12.1 (Failure to Compl...