Common use of Capacity Payment Clause in Contracts

Capacity Payment. Commencing on the Effective Date, Buyer shall pay Seller (in arrears) each month during the Delivery Period the Monthly Capacity Payment (“MCP”) applicable to the Unit. The Monthly Capacity Payment shall be equal to the product of the Capacity Payment Rate (“CP”), and the then current NDC and shall be prorated on a daily basis in the event of a partial Delivery Month; provided that the Monthly Capacity Payment for December 2002 shall include an additional amount equal to $226,627.36 in consideration of the adjustments due under the Prior Agreement through October, 2002. The Monthly Capacity Payment for the Unit (by month) can be expressed as follows: MCP = NDC * Capacity Payment Rate where, the “Capacity Payment Rate” is the applicable rate set forth in Table 1 to this Attachment 1 which lists the Capacity Payment Rates in $/kW-Delivery Month. The “Delivery Months” are January through December and, collectively for the same calendar year, the “Annual Delivery Period”. Example for March 2002: Assume for the month of March 2002 that the Unit’s NDC is 22 MW (22,000 kW). The CP is $13.75/kW-mo. Hence, the MCP for that Delivery Month would be calculated as follows: MCP = 22,000 kW * $13.75/kW-mo = $302,500

Capacity Payment. Commencing on the Effective Date, Buyer shall pay Seller (in arrears) each month during the Delivery Period the Monthly Capacity Payment (“MCP”) applicable to the Unit. The Monthly Capacity Payment shall be equal to the product of the Capacity Payment Rate (“CP”), and the then current NDC and shall be prorated on a daily basis in the event of a partial Delivery Month; provided that the Monthly Capacity Payment for December 2002 shall include an additional amount equal to $226,627.36 133,687.98 in consideration of the adjustments due under the Prior Agreement through October, 2002. The Monthly Capacity Payment for the Unit (by month) can be expressed as follows: MCP = NDC * Capacity Payment Rate where, the “Capacity Payment Rate” is the applicable rate set forth in Table 1 to this Attachment 1 which lists the Capacity Payment Rates in $/kW-Delivery Month. The “Delivery Months” are January through December and, collectively for the same calendar year, the “Annual Delivery Period”. Example for March 2002: Assume for the month of March 2002 that the Unit’s NDC is 22 MW (22,000 kW). The CP is $13.75/kW-mo. Hence, the MCP for that Delivery Month would be calculated as follows: MCP = 22,000 kW * $13.75/kW-mo = $302,500

Capacity Payment. Commencing on the Effective Date, Buyer shall pay Seller (in arrears) each month during the Delivery Period the Monthly Capacity Payment (“MCP”) applicable to the Unit. The Monthly Capacity Payment shall be equal to the product of the Capacity Payment Rate (“CP”), and the then current NDC and shall be prorated on a daily basis in the event of a partial Delivery Month; provided that the Monthly Capacity Payment for December 2002 shall include be reduced by an additional amount equal to $226,627.36 3,024.47 in consideration of the adjustments due under the Prior Agreement through October, 2002. The Monthly Capacity Payment for the Unit (by month) can be expressed as follows: MCP = NDC * Capacity Payment Rate where, the “Capacity Payment Rate” is the applicable rate set forth in Table 1 to this Attachment 1 which lists the Capacity Payment Rates in $/kW-Delivery Month. The “Delivery Months” are January through December and, collectively for the same calendar year, the “Annual Delivery Period”. Example for March 2002: Assume for the month of March 2002 that the Unit’s NDC is 22 MW (22,000 kW). The CP is $13.75/kW-mo. Hence, the MCP for that Delivery Month would be calculated as follows: MCP = 22,000 kW * $13.75/kW-mo = $302,500