Common use of Basis for Capacity Commitment Clause in Contracts

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.

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@“Excess Companies”) or whether they are in a deficit system capacity condition (ADeficit Companies@“Deficit 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.