Interconnection Cost Adjustment Clause Samples
The Interconnection Cost Adjustment clause defines how costs related to connecting a project or facility to a utility grid or network may be modified after the initial agreement. Typically, this clause allows for adjustments in the contract price if actual interconnection expenses differ from estimates due to changes in utility requirements, unforeseen site conditions, or regulatory updates. Its core function is to allocate the financial risk of fluctuating interconnection costs between the parties, ensuring that neither side is unfairly burdened by unexpected expenses.
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Interconnection Cost Adjustment. The Seller shall make commercially reasonable efforts to cause Interconnection Net Savings to occur, including but not limited to changing its Delivery Point where appropriate. On or before the date that is ninety (90) days prior to the commencement of the Contract Delivery Term, Seller shall make available or cause to be made available to NYSERDA all books and records reasonably necessary for NYSERDA to quantify the Interconnection Cost Allocation. To the extent Interconnection Net Savings exist, the Index OREC Strike Price will be reduced by the Interconnection Price Reduction, calculated as follows: Interconnection Price Reduction = NYSERDA Interconnection Savings Share ($) × RF P50 Annual OREC Exceedance where: NYSERDA Interconnection Savings Share = the greater of (i) 80% of the Interconnection Net Savings and (ii) Interconnection Net Savings minus $50,000,000. RF = Recovery Factor of 0.0985 for projects with a 20-year term; 0.0901 for projects with a 25-year term]. [For projects with interconnection cost sharing: To the extent Interconnection Shareable Costs exist, the Index OREC Strike Price or Fixed OREC Price will be increased by the Interconnection Price Increase, calculated as follows: where: NYSERDA Interconnection Cost Share = 50% (of additional costs specifically related to the Project’s interconnection agreement above the Cost Sharing Threshold.) RF = Recovery Factor of 0.0985 for projects with a 20-year term / 0.0901 for projects with a 25-year term]. For any incremental costs incurred as a result of matters within the reasonable control of the Selected Project, including but not limited to (x) a change in Injection Point or (y) increases in the amount of requested interconnection capacity (“Interconnection Elective Project Costs”) to be counted as Interconnection Shareable Costs, the Project must first request approval from NYSERDA. NYSERDA will approve the request if NYSERDA concludes, in its sole discretion, that the incurrence of such Interconnection Elective Project Costs would provide net benefits to ratepayers either through (i) increased energy deliverability at appropriate cost, (ii) net savings on a system-wide basis, or otherwise.] .
Interconnection Cost Adjustment. (a) The Seller shall make commercially reasonable efforts to minimize the Interconnection Cost Allocation.
(b) On or before the date that is 90 days prior to the commencement of the Contract Delivery Term, Seller shall make available or cause to be made available to NYSERDA all books and records reasonably necessary for NYSERDA to quantify the Interconnection Cost Allocation.
(c) To the extent that the Interconnection Cost Allocation is greater than the Interconnection Cost Allocation Baseline, the Index REC Strike Price or Fixed REC Price will be increased by the Interconnection Price Increase, calculated as follows: Interconnection Price Increase = Cost Allocation Increase ($) × RF Bid Quantity Cost Allocation Increase = Interconnection Cost Allocation less Interconnection Cost Allocation Baseline. RF = Recovery Factor of 0.09623. To the extent that the Interconnection Cost Allocation is less than the Interconnection Cost Allocation Baseline, the Index REC Strike Price or Fixed REC Price will be decreased by the Interconnection Price Reduction, calculated as follows: Interconnection Price Reduction =
Interconnection Cost Adjustment. (a) The Seller shall make commercially reasonable efforts to cause Interconnection Net Savings to occur, including but not limited to changing its Delivery Point where appropriate.
(b) On or before the date that is ninety (90) days prior to the commencement of the Contract Delivery Term, Seller shall make available or cause to be made available to NYSERDA all books and records reasonably necessary for NYSERDA to quantify the Interconnection Cost Allocation.
(c) To the extent Interconnection Net Savings exist, the Index OREC Strike Price will be reduced by the Interconnection Price Reduction, calculated as follows: 𝑃50 𝐴𝑛𝑛𝑢𝑎𝑙 𝑂𝑅𝐸𝐶 𝐸𝑥𝑐𝑒𝑒𝑑𝑎𝑛𝑐𝑒 NYSERDA Interconnection Savings Share = the greater of (i) 80% of the Interconnection Net Savings and (ii) Interconnection Net Savings minus $50,000,000. RF = Recovery Factor of 0.0781.
(d) Reserved.
Interconnection Cost Adjustment. In the event of a difference between the Interconnection Cost Allocation Baseline and the Interconnection Cost Allocation, the Index REC Strike Price or Fixed REC Price, as applicable, shall be adjusted as set forth in Exhibit M.