Heat Rate Degradation Adjustment (Duct Fired Capacity) Clause Samples

The Heat Rate Degradation Adjustment (Duct Fired Capacity) clause defines how changes in a power plant’s efficiency, specifically when using duct firing to increase output, are measured and accounted for over time. It typically sets out a method for calculating adjustments to the heat rate—the amount of fuel needed to produce a unit of electricity—if degradation occurs due to extended use or aging of the equipment. This ensures that both parties have a clear, agreed-upon process for addressing efficiency losses, thereby allocating the risk of performance decline and maintaining fairness in operational and financial arrangements.
Heat Rate Degradation Adjustment (Duct Fired Capacity). (i) The incremental plant output due to duct firing ”CD” (MW) shall be determined as follows for Single Unit Operation and Dual Unit operation: CD = CS – CCC where CS = Total Plant Output Duct Fired at Peak Load (MW) CCC = Ci before first seasonal capacity test, or Cb after first seasonal capacity test (MW) (ii) The guaranteed incremental plant heat rate with duct firing, “HRD” shall be determined as follows for Single Unit Operation and Dual Unit operation: HRD = CD * (HRP – HRB) (Cp – Cb) where HRP = Guaranteed Heat Rate Point at the Peak Load output (with duct firing) HRB = Guaranteed Heat Rate Point at the Base Load output (without duct firing) Cp = Peak Load Output in MWs (with duct firing) Cb = Base Load Output in MWs (without duct firing)