Completion of Commercial Operation Sample Clauses
The 'Completion of Commercial Operation' clause defines the point at which a project or facility is considered fully operational and capable of delivering its intended commercial output. Typically, this clause outlines the specific criteria or performance tests that must be met, such as achieving a certain level of production or passing regulatory inspections, before the project is officially declared commercially operational. Its core practical function is to establish a clear and objective milestone for both parties, which can trigger subsequent contractual obligations like payment schedules, transfer of risk, or commencement of service agreements.
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Completion of Commercial Operation. Seller must provide notice to PacifiCorp stating when Seller believes that the Facility has achieved Commercial Operation in accordance with the requirements of the definition of Commercial Operation, which notice shall include the Nameplate Capacity Rating of the Generating Facility (which shall not be less than the Required Percentage of the Expected Nameplate Capacity Rating), the Storage Capacity Rating of the Storage Facility, and the documentation required in the definition of Commercial Operation. PacifiCorp must respond to Seller’s notice within ten (10) Business Days of receipt of a notice satisfying the requirements of the preceding sentence. If PacifiCorp does not respond to Seller’s complying notice within such time period, then the Commercial Operation Date will be deemed to be the date of PacifiCorp’s receipt of such complying notice from Seller. If PacifiCorp informs Seller in writing within such ten (10) Business Day period that PacifiCorp believes the Facility has not achieved Commercial Operation, identifying the specific areas of deficiency, then Seller must address the deficiencies stated in PacifiCorp’s notice to the reasonable satisfaction of PacifiCorp. The Commercial Operation Date will be the date on which the matters identified in PacifiCorp’s deficiency notice have been addressed to PacifiCorp’s reasonable satisfaction, notice of which PacifiCorp shall provide to Seller.