Condition 2 Clause Samples
Condition 2 is a contractual provision that sets out specific requirements or events that must be satisfied before certain obligations or rights under the agreement become effective. In practice, this clause might require one party to obtain regulatory approval, deliver key documents, or fulfill a payment before the contract proceeds to the next stage. Its core function is to ensure that critical prerequisites are met, thereby protecting the parties from proceeding under unfavorable or incomplete circumstances.
Condition 2. When a Unit is operating under Condition 2, CAISO shall pay Owner the sum of:
(a) the Monthly Option Payment, which shall be equal to the Monthly Availability Payment plus the Monthly Surcharge Payment, minus the sum of all Non- Performance Penalties for the Month. In no event shall (i) the Monthly Option Payment for any month be less than zero, (ii) the sum of the Monthly Availability Payments for a Contract Year exceed the Annual Fixed Revenue Requirement for the Contract Year or (iii) the sum of the Monthly Surcharge Payments for the and (d). Contract Year exceed the Annual Capital Item Cost (as defined in Schedule B) for the Contract Year. The Monthly Availability Payment and the Monthly Surcharge Payment shall each be computed in accordance with Schedule B. The Non-Performance Penalties for the Month shall be calculated in accordance with Section 8.5.
(b) the Variable Cost Payment computed in accordance with Schedule C;
(c) the sum of all Start-up Payments for the Month until Counted Start-ups equal Maximum Annual Start-ups computed in accordance with Schedule D;
(d) the sum for all Settlement Periods in the Month of Motoring Charges calculated in accordance with Schedule E;
(e) once the Counted MWh for the Contract Year equals the Maximum Annual MWh or the Counted Service Hours for the Contract Year equals the Maximum Annual Service Hours, a payment for each subsequent Billable MWh at the rate set out on Schedule G;
(f) once the Counted Start-ups for the Contract Year equals the Maximum Annual Start-ups, a payment for each additional Start-up calculated in accordance with Schedule G; and
(g) charges for services Delivered from Substitute Units pursuant to Section 5.1(c)
Condition 2. The Allowance valuation is reasonable based on the design information available at the time the GMP is established.
Condition 2. RHPCS must achieve a Meets Standard rating on the Total Margin financial measure of the Commission’s performance framework by November 15, 2025. The calculations used to determine total margin are defined in the Commission’s performance framework which shall be incorporated into RHPCS’s 2023-2028 performance certificate. RHPCS did not meet standard on the Total Margin measure in fiscal year 2022. Since the corresponding data will be evaluated on or before November 15, 2025, the date by which this condition must be met is November 15, 2025.
Condition 2 shall be deleted and there shall be substituted “Any deposit taken shall be held by the auctioneer as agent for the seller.”