CAPACITY RATE Clause Samples
The Capacity Rate clause defines the fixed payment or charge associated with the availability of a specified amount of capacity, such as energy generation or transmission, regardless of actual usage. In practice, this clause sets out how much a party will pay or receive for ensuring that a certain capacity is available, often calculated on a per-unit basis (e.g., per megawatt per month) and paid regularly. Its core function is to compensate the provider for maintaining readiness and reliability, thereby allocating the financial risk of underutilization and incentivizing the maintenance of agreed-upon capacity levels.
CAPACITY RATE a. Time-differentiated: 1992 ------- Winter All On-Peak kWh, per kWh $.00959 Plus all Mid-Peak kWh, per kWh $.00859 Plus all Off-Peak kWh, per kWh $.00506 Summer All On-Peak kWh, per kWh $.00796 Plus all Off-Peak, kWh, per kWh $.00516
CAPACITY RATE. The “Intertie Capacity Rate” for the following fiscal year. expressed in dollars per kW, shall be calculated by dividing 16.5 percent of the total budgeted Intertie Costs as determined in the Intertie budget established under Section 7.1, Intertie Costs, by the sum of the Participant’s or User’s Intertie Capacity rights allocations.