Common use of Forecasting Penalties Clause in Contracts

Forecasting Penalties. (i) In the event Seller fails to (A) provide the access and information required in Section 3.1(l)(i); (B) comply with the installation, maintenance and repair requirements of Section 3.1(l)(iv); or (C) provide the forecast of Available Capacity as required in Section 3.4(c)(iii), then Buyer shall promptly provide Notice to Seller of such failure. If such failure is with respect to subclause (A) above, then Seller shall have five (5) Business Days from receipt of Notice (plus an additional five (5) Business Days if Seller provides alternative meteorological information that, in Buyer’s reasonable determination, is reasonably responsive to the meteorological information requirements in Section 3.1(l)(i)) to correct the failure. If such failure is with respect to subclause (B), then Seller shall have the period of time specified in Section 3.1(l)(iv) to correct the failure. If such failure is with respect to subclause (C), the Seller shall have one (1) Business Day from receipt of Notice to correct the failure. If Seller does not correct the failure within the allotted time from receipt of Notice, then Seller shall be responsible for Forecasting Penalties as set forth in Section 4.5(c)(iii) until the failure is corrected. For the avoidance of doubt, Buyer agrees that the Kettleman Hills meteorological station is in an acceptable location to provide information reasonably responsive to the meteorological information requirements in Section 3.1(l)(i). Buyer shall use commercially reasonable efforts to minimize Seller’s penalties by accurately forecasting the output of the Project based upon information previously provided to Buyer by Seller and from other sources readily available to Buyer. (ii) The Performance Tolerance Band is three percent (3%) multiplied by Contract Capacity multiplied by one (1) hour.

Appears in 2 contracts

Sources: Power Purchase Agreement, Power Purchase Agreement