Basis for Capacity Commitment Sample Clauses
The "Basis for Capacity Commitment" clause defines the foundational terms and conditions under which a party commits to providing a specified amount of capacity, such as energy, bandwidth, or production output, to another party. This clause typically outlines the metrics used to measure capacity, the duration of the commitment, and any contingencies or limitations that may affect the provider's ability to deliver. By clearly establishing the parameters for capacity obligations, the clause ensures both parties understand their respective responsibilities and helps prevent disputes related to underperformance or overcommitment.
Basis for Capacity Commitment. A committing Company shall make available to a receiving Company unit capacity consisting of a portion of the output of one or more specific Generating Units. The receiving Company shall be entitled to receive Energy from the specified Generating Unit(s) up to an amount equal to an annual load factor of sixty (60) percent or such other amount as is mutually agreeable. The capacity commitment shall be for a twelve-month period or as otherwise mutually agreed.
Basis for Capacity Commitment. Prior to January 1 of each year (or more frequently if mutually agreed to by the companies) companies will review their capacity requirements for the coming year to determine whether they have excess system capacity available (AExcess Companies@) or whether they are in a deficit system capacity condition (ADeficit Companies@). Excess Companies will reserve such system capacity for use by Deficit Companies for a period of 30 days. If a Deficit Company wishes to purchase system capacity from an Excess Company it shall so notify the Excess Company to negotiate an agreement for purchase of the excess system capacity. If an Excess Company has not received a request to purchase the excess capacity from a Deficit Company within 30 days, the Excess Company shall have the right to sell its excess capacity to any interested third party.