Common use of Capacity Fees Clause in Contracts

Capacity Fees. Capacity Fees shall be computed on the basis of the following formula: A = {[(BCR * CC)(1 - TFOD/Nd)] - [(y * 1.05)(BCR)(NC - CC)]} where: A = Total Capacity Payment in Dollars for the Month BCR = Base Capacity Rate in $/KW/Month NC = Nominal Capacity, in KW TFOD = Total Forced Outage Days Nd = Total No. of Days in the Month CC = Contracted Capacity for the year, in KW y = variable The Base Capacity Rate shall be $3.225 KW/Month. The variable y is defined as follows: if 0.95 NC <= CC, then y = 0 if CC < 0.95 NC, then y = 1 In the event there is Forced Outage due to accident, manufacturing defect, defects in materials or assembly or any other similar reasons other than fault or failure of the power transformers or high voltage switchgear, and rectification of the Forced Outage to restore normal operations has taken or can reasonably be expected to take a period in excess of 15 days, then the formula for the calculation of Capacity Fees shall be as follows for the entire period of Forced Outage: A = (BCR x IC) (1 - TFOD/Nd) Where: CC = the Contracted Capacity in effect immediately prior to the Forced Outage and, IC = CC less the capacity lost due to such Forced Outage Provided that if HOPEWELL is unable to make available the Contracted Capacity for reasons which would have been Forced Outage but for the fact they relate to faults in or failure of the power transformers or high voltage switchgear and such failure continues for more than 30 days thereafter the Capacity Fee shall be reduced by reference to the amount of capacity that HOPEWELL is so unable to make available and the Co-operation Period shall be extended by a period equal to the period for which such reduction is applicable.

Capacity Fees. Capacity Fees shall be computed on the basis of the following formula: A = {[(BCR * CC)(1 - TFODTFOH/NdNh)] - [(y * 1.05)(BCR)(NC - CC)]} where: : A = Total Capacity Payment in Dollars for the Month BCR = Base Capacity Rate in $/KW/Month NC = Nominal Capacity, in KW TFOD TFOH = Total Forced Outage Days Nd Hours Nh = Total No. of Days Hours in the Month CC = Contracted Capacity for the year, in KW y = variable The Base Capacity Rate shall be $3.225 5.02 KW/Month. The variable y is defined as follows: if 0.95 NC <= < CC, then y = 0 - if CC < 0.95 NC, then y = 1 In the event there is Forced Outage due to accident, manufacturing defect, defects in materials or assembly or any other similar reasons other than fault or failure of the power transformers or high voltage switchgear, and rectification of the Forced Outage to restore normal operations has taken or can reasonably be expected to take a period in excess of 15 days, then the formula for the calculation of Capacity Fees shall be as follows for the entire period of Forced Outage: A = (BCR x IC) (1 - TFODTFOH/NdNh) Where: CC = the Contracted Capacity in effect immediately prior to the Forced Outage and, IC = CC less the capacity lost due to such Forced Outage Outage. Provided that if HOPEWELL is unable to make available the Contracted Capacity for reasons which would have been Forced Outage but for the fact they relate to faults in or failure of the power transformers or high voltage switchgear and such failure continues for more than 30 days thereafter the Capacity Fee shall be reduced by reference to the amount of capacity that HOPEWELL is so unable to make available and the Co-operation Period shall be extended by a period equal to the period for which such reduction is applicable.