Capacity Adjustments Sample Clauses
The Capacity Adjustments clause defines how changes to the agreed-upon capacity—such as production volume, service bandwidth, or resource allocation—are managed during the term of an agreement. It typically outlines the procedures for requesting increases or decreases in capacity, sets thresholds or limits for such adjustments, and may specify notice periods or pricing implications. This clause ensures both parties have a clear process for adapting to fluctuating needs, thereby reducing the risk of disputes and maintaining operational flexibility.
Capacity Adjustments. (i) The Initial Capacity Test shall be used to determine whether Seller has met the criteria to be declared Commercially Operable, which is a condition precedent to the occurrence of the Commercial Operation Date. The Seasonal Capacity Tests shall be used to determine whether the Units perform at the Design Capacity or Peak July Conditions, as applicable and to confirm and/or adjust (as appropriate) the Monthly Contract Capacities as follows.
(ii) If the Tested Capacity of the Units during a Non-Summer Month adjusted to ISO Conditions is less than 98% of the Design Capacity or if the Tested Capacity of the Units during a Summer Month adjusted to Peak July Conditions is less than 98% of July Design Capacity, then, subject to Section 3.13(d)(iii), the Monthly Contract Capacities shall equal the Contract Capacities set forth in Appendix II as of the Execution Date after adjustment downward by a percentage equal to the positive percentage difference between the Tested Capacity, as adjusted to ISO Conditions or Peak July Conditions, as applicable, and the Design Capacity or July Design Capacity (respectively). If the Tested Capacity of the Units during a Non-Summer Month adjusted to ISO Conditions is 98% or more of the Design Capacity or the Tested Capacity of the Units during a Summer Month adjusted to Peak July Conditions is 98% of July Design Capacity (as applicable), then, subject to Section 3.13(d)(iii), the Monthly Contract Capacities shall be equal to the Contract Capacities set forth in Appendix II as of the Execution Date. Notwithstanding the foregoing sentence, but also subject to Section 3.13(d)(iii), if the Tested Capacity of the Unit exceeds the Design Capacity or the July Design Capacity, as applicable, then the Monthly Contract Capacities shall be equal to the Contract Capacities as set forth in Appendix II as of the Execution Date adjusted upward by a percentage equal to the lesser of (i) the positive percentage difference between the Tested Capacity, as adjusted to ISO Conditions or Peak July Conditions, as applicable, and the Design Capacity or July Design Capacity (respectively) and (ii) 2%. An example of the calculation of the capacity adjustments is provided in Appendix XIV.
(iii) An adjustment to the Monthly Contract Capacities shall be effective as of the first day of the month following the month in which the Initial Capacity Test or Seasonal Capacity Test (as applicable) occurred. Notwithstanding any other provision of this Section 3.13...
Capacity Adjustments. In the event the actual production capacity of the -------------------- Licensed Plant, under II.A above, is determined to have either exceeded the original maximum daily design capacity established in this Site License Agreement or is increased through major equipment modification, by more than five percent (5%) or by more than 500 barrels per day, at any time after the Start-up Date, Licensee shall pay (subject to Section 5.05 of the License Agreement) Licensor an additional License Fee, on a prepaid basis, equal to the difference between (a) the prepaid License Fee as would have been calculated with the higher production capacity for such Licensed Plant substituted for "C" in the calculation method set forth in II.A. above, and (b) the License Fee as would have been calculated for such Licensed Plant by the method set forth in II.A. above using the original maximum daily design capacity established in this Site License Agreement. The incremental License Fee due will be reduced by any previous incremental adjustments. Such additional License Fee shall be payable within thirty (30) days after the end of the calendar year in which such increase in production capacity of such Licensed Plant occurs. Incremental License Fees for increased production capacity in any Licensed Plant shall not be due if the increased production capacity is the result of the initial use of Licensee Patent Rights or Licensee Technical information. The total cumulative incremental capacity adjustments under this Agreement will be limited to 50 percent of the initial maximum daily capacity under this Agreement.
Capacity Adjustments. The Capacity in effect with respect to an Approved Location and the total Capacity available under this Agreement may from time to time be adjusted as follows:
Capacity Adjustments. The following information pertains to resource increases or decreases that are planned as part of the normal business planning cycle for Client.
Capacity Adjustments. In the event the actual production capacity of any Licensed Plant, under II.A. above, is determined to have either exceeded the original maximum daily design capacity established in its Site License Agreement or is increased through major equipment modification, by more than five percent (5%) or by more than 500 barrels per day, at any time after the Start-up Date, Licensee shall pay Licensor an additional License Fee, on a prepaid basis, equal to the difference between (a) the prepaid License Fee as would have been calculated with the higher production capacity for such Licensed Plant substituted for "C" in the calculation method set forth in II.A. above, and (b) the License Fee as would have been calculated for such Licensed Plant by the method set forth in II.A. above using the original maximum daily design capacity established in each Site License Agreement. The incremental License Fee due will be reduced by any previous incremental adjustments. Such additional License Fee shall be payable within thirty (30) days after the end of the calendar year in which such increase in production capacity of such Licensed Plant occurs. Incremental License Fees for increased production capacity in any Licensed Plant shall not be due if the increased production capacity is the result of the initial use of Licensee Patent Rights or Licensee Technical information. The total cumulative incremental capacity adjustments under each Site License Agreement will be limited to 50 percent of the initial maximum daily capacity under such Agreement.
Capacity Adjustments. The following capacity adjustments will be made to the Proposed MVI Methodology, on or after PJM Day 2:
(i) If ComEd is using an MVI methodology based on firm liquidated damages transactions into a load zone that has no mandatory capacity requirement, then an incremental capacity adjustment will be made based on the applicable capacity auction value less 0.25 mils/kWh to all annual and multi-year MVECs, including MVECs that have already been set (provided, however, that the adjustment will never be negative—i.e., if the applicable capacity auction value is equal to or less than 0.25 mils/kWh, there will be no adjustment).
(ii) If ComEd is using an MVI methodology that utilizes market data for traded electricity products which have defined delivery points within an operating RTO and such RTO has a mandatory capacity requirement, then a full capacity adjustment will be made based on the applicable capacity auction value to all annual and multi-year MVECs, including MVECs that have already been set.
(iii) In any case, a prospective-only adjustment for capacity will be made to the two multi-year MVEC/CTC lock-in options elected by customers in 2003 (i.e., the two-year MVEC lock-in option for the period from June 2003 through May 2005 and the 43-month MVEC lock-in option for the period from June 2003 through December 31, 2006). That adjustment will be based on PJM's annual capacity auction for 20041 and will be reduced by 0.25 mils/kWh to reflect, for the purposes of this Agreement, a value for capacity already included in the MVI methodology used for those two MVEC lock-in options (provided, however, that the combination of the PJM capacity auction value and the 0.25 mils/kWh reduction will not result in a negative adjustment—i.e., if the PJM capacity auction value is equal to or less than 0.25 mils/kWh, there will be no adjustment). If PJM's 2004 capacity auction includes a three-year product, that auction value will be used as the basis for the adjustment applicable to the 6/03-12/06 43-month MVEC/CTC set (less 0.25 mils). The Parties (other than the GCI Parties) will advocate before PJM that PJM hold a capacity auction each January and that such auction include a three-year capacity product. The GCI Parties shall not oppose the efforts of the other Parties described in the preceding sentence. All Parties will support or not oppose ComEd's efforts to join PJM.