Imbalances Within Deviation Band Clause Samples
The "Imbalances Within Deviation Band" clause defines how minor discrepancies between expected and actual performance or delivery, within a specified tolerance range (the deviation band), are managed under a contract. Typically, this clause sets out the acceptable limits for such imbalances—such as small differences in energy supply versus demand—and outlines the procedures or consequences if the imbalance remains within these limits, often exempting parties from penalties or additional charges. Its core function is to provide flexibility and avoid disputes over insignificant variances, ensuring that only material deviations trigger corrective actions or liabilities.
Imbalances Within Deviation Band. 1
(i) ± 1.5 percent of the scheduled amount of energy, or (ii) ± 2 MW, whichever is larger in absolute value. BPA will maintain deviation accounts showing the net Energy Imbalance (the sum of positive and negative deviations from schedule for each period) for Heavy Load Hour (HLH) and Light Load Hour (LLH) periods. Return energy may be scheduled at any time during the month to bring the deviation account balances to zero at the end of each month. BPA will approve the hourly schedules of return energy. The customer shall make the arrangements and submit the schedule for the balancing transaction. The following rates will be applied when a deviation balance remains at the end of the month:
(1) When the monthly net energy (determined for HLH and LLH periods) taken by the Transmission Customer is greater than the energy scheduled, the charge is BPA’s incremental cost based on the applicable average HLH and average LLH incremental cost for the month.
(2) When the monthly net energy (determined for HLH and LLH periods) taken by the Transmission Customer is less than the energy scheduled, the credit is BPA’s incremental cost based on the applicable average HLH and LLH incremental cost for the month.
Imbalances Within Deviation Band. 3
(1) When energy taken by the Transmission Customer in a schedule period is greater than the energy scheduled, the charge is 125 percent of BPA’s highest incremental cost that occurs during that day. The highest daily incremental cost shall be determined separately for HLH and LLH.
(2) When energy taken by the Transmission Customer in a schedule period is less than the scheduled amount, the credit is 75 percent of BPA’s lowest incremental cost that occurs during that day. The lowest daily incremental cost shall be determined separately for HLH and LLH.
Imbalances Within Deviation Band. 2
(1) When energy taken by the Transmission Customer in a schedule period is greater than the energy scheduled, the charge is 110 percent of BPA’s incremental cost.
(2) When energy taken by the Transmission Customer in a schedule period is less than the scheduled amount, the credit is 90 percent of BPA’s incremental cost.