Common use of Interim Acceptance Clause in Contracts

Interim Acceptance. Interim Acceptance shall be achieved hereunder with respect to the Facility if the following conditions have been met (it being understood that Contractor may achieve Interim Acceptance one or more times, provided that on each successive demonstration (i) the level of achievement of the Gas-based Electrical Output Guarantee under the relevant Completed Performance Test is not less than the level of achievement thereof demonstrated at Provisional Acceptance or the immediately preceding Interim Acceptance, as the case may be, and (ii) the level of achievement of the Gas-based Heat Rate Guarantee under the relevant Completed Performance Test is not higher than the level of achievement thereof demonstrated at Provisional Acceptance or the immediately preceding Interim Acceptance, as the case may be): (a) Contractor has caused a Completed Performance Test in accordance with Section 6.2 hereof to be concluded in which the Facility, while operating on Gas, demonstrates during such Performance Test an average net electrical output and a net heat rate (each as measured and corrected to the design operating conditions, all in accordance with the procedures set forth in Appendix D hereto) of 95% (or higher) of the Gas-based Electrical Output Guarantee (but in no event lower than the percentage of the Gas-based Electrical Output Guarantee demonstrated by the applicable Completed Performance Test and Completed PPA Output Test at Provisional Acceptance, if applicable) and 104% (or lower) of the Gas-based Heat Rate Guarantee (provided that each such level of achievement shall be calculated in the manner described in Sections 8.1.1 and 8.1.2 hereof, respectively); provided, however, that if any correction, repair or replacement work has been required to be made to the Facility pursuant to Article 10 hereof or pursuant to the Maintenance Agreement or if Contractor has made any modifications to the Facility, in either case since the date of such Completed Performance Test, which work or modifications could reasonably be expected to adversely affect the performance of the Facility, then Owner may require Contractor to conduct another Completed Performance Test on the Facility in accordance with Section 6.2 hereof, which Completed Performance Test shall be utilized for purposes of this Section 6.4(a); (b) In the event that neither Provisional Acceptance nor Interim Acceptance of the Facility has theretofore occurred hereunder, Contractor has caused a Completed PPA Output Test in accordance with Section 6.2 hereof to be concluded in which the Facility demonstrates (i) a level of achievement of 95% (or higher) of the Gas-based Electrical Output Guarantee, while operating on Gas (with such level of achievement to be calculated in the manner set forth in Part B of Appendix D hereto), and (ii) to the Utility's reasonable satisfaction, the other capabilities required to be so demonstrated pursuant to Part B of Appendix B hereto; (c) The Facility has achieved, and continues to satisfy the requirements for the achievement of, Mechanical Completion; and (d) Contractor has completed performance of the Services except for (i) Punch List items and (ii) Services that are required by the terms of this Agreement to be completed after the achievement of Interim Acceptance.