Common use of Marginal Losses Clause in Contracts

Marginal Losses. The Authority shall compensate NYISO directly for Marginal Losses associated with all deliveries of Existing Allocations of replacement power to replacement power customers under this Agreement as provided in the NYISO OATT, but not for deliveries of replacement power to Niagara Mohawk’s Rural and Domestic customers. The Authority may compensate NYISO for such losses either by supplying energy or by paying NYISO’s charges for transmission losses. In either event, however, the total amount of energy sold to and delivered on behalf of replacement power customers under this Agreement, as measured at the Niagara Switchyard, shall be deemed to include all such loss amounts, as well as the additional loss amounts specified in the loss allowance provisions of Exhibit B hereof; and