Maintenance Credit Calculation Clause Samples
The Maintenance Credit Calculation clause defines how credits or compensation are determined when maintenance obligations are not met. Typically, this clause outlines the formula or method for calculating the amount owed to the customer if the service provider fails to maintain equipment or services as agreed, such as by referencing downtime periods or specific performance metrics. Its core function is to ensure accountability and provide a clear, pre-agreed remedy for service lapses, thereby protecting the customer's interests and incentivizing the provider to maintain service standards.
Maintenance Credit Calculation. For every properly scheduled Maintenance Outage and Major Overhaul, to the extent there is an associated Capacity Credit Period, Buyer shall compute and apply the associated Maintenance Credit Value and the Maintenance Debit Value following these steps:
(a) A Benchmark Capacity shall be determined for every scheduled Maintenance Outage and Major Overhaul. For purposes of this Exhibit E, “Benchmark Capacity” is defined as the highest Hourly Power Output, not to exceed Firm Contract Capacity, at or after the time of outage notification, and before the start of the outage. If the outage is rescheduled, the most recent notification time shall be used in defining Benchmark Capacity. If the outage is extended, or its Scheduled Power Offline is updated, the original notification time shall be used in defining Benchmark Capacity, unless the outage has been rescheduled before the extension, in which case the most recent rescheduling notification time shall be used in defining Benchmark Capacity. In the special case of a less-than-one-day Maintenance Outage that directly follows another less-than-one-day Maintenance Outage, Benchmark Capacity of the outage that follows is defined as the highest Hourly Power Output, not to exceed Firm Contract Capacity, between these two outage time periods. In the event of back-to-back, less-than-one-day Maintenance Outages, Benchmark Capacity for the second outage shall be zero. Notwithstanding this Section 9(a), upon Seller’s request, if and to the extent Seller is able to demonstrate to Buyer’s reasonable satisfaction that some or all of the Firm Contract Capacity of the Generating Facility available before the Benchmark Capacity was established was not available during the period when the Benchmark Capacity was established but became available during the Capacity Credit Period, the Benchmark Capacity will be adjusted to include such portion of the Firm Contract Capacity that became available during such Capacity Credit Period.