Common use of Degradation Clause in Contracts

Degradation. In conducting the initial performance test or re-tests, the performance of the Unit shall not be adjusted for degradation until such Unit has operated in excess of two hundred (200) hours. The Seller’s degradation curve shall be used to determine the adjustment for Unit output and Unit heat rate.

Appears in 2 contracts

Sources: Equipment Purchase Agreement (MMC Energy, Inc.), Contract for Sale of Equipment & Services (MMC Energy, Inc.)