Incremental Capacity Reductions Clause Samples

Incremental Capacity Reductions. In order to comply with the terms of CPUC D. ▇▇-▇▇-▇▇▇, all Product procured by Buyer under this Agreement must be incremental to the CPUC Baseline List of Resources. During the Term, if a Governmental Authority determines that any portion of either the nameplate capacity of the Project as described in Appendix II, or the delivered Product is not incremental to the CPUC Baseline List of Resources (an “Incremental Capacity Reduction”), then Seller shall pay to Buyer liquidated damages in the amount of eighty dollars per kilowatt ($80/kW) of nameplate capacity (stated in kilowatts) that is determined to not be incremental (“Incremental Capacity Reduction Damages”). If there is an Incremental Capacity Reduction, Buyer will Notify Seller of the Incremental Capacity Reduction Damages, and Seller shall remit such sum to Buyer within ten (10) Business Days of its receipt of such Notice. Each Party agrees that the damages that ▇▇▇▇▇ would incur due to an Incremental Capacity Reduction would be difficult or impossible to predict with certainty, and the Incremental Capacity Reduction Damages are an appropriate approximation of such damages.