Consumption Management Clause Samples
The Consumption Management clause establishes guidelines and controls for how resources, services, or products are used under an agreement. It typically sets limits, monitoring mechanisms, or reporting requirements to track usage, such as capping the number of service hours, data usage, or product units consumed within a billing period. By defining these parameters, the clause helps prevent overuse, manage costs, and ensure that both parties have a clear understanding of allowable consumption, thereby reducing the risk of disputes related to excessive or unauthorized use.
Consumption Management. We will provide the nomination, scheduling and balancing services necessary to serve the full Gas requirements of the Facilities. In order to assist us in performing these obligations, you will (a) notify us (an “Operational Notice”) of any change to the operations at a Facility (such as equipment outages, shift changes and plant closures) that may significantly impact monthly Gas consumption at such Facility; and (b) provide us with Gas meter readings on our reasonable request. If the Utility issues you any consumption management order (such as an operational flow order or an operational matching order), you will fully comply with such order. As long as you (i) provide us Operational Notices and, when requested, accurate meter readings; (ii) fully comply with all Utility consumption management orders; and (iii) otherwise perform your obligations under this Agreement, if the Utility imposes penalties on you or us as result of a Facility’s consumption being outside of the balancing tolerance set by the Utility, we will be responsible for any such penalty. Otherwise, you will be responsible for any such penalty. If you have interruptible distribution service with the Utility, we will have no liability arising from your failure to receive Gas as result of the interruption of such distribution service.