Mechanical Availability Guarantee Sample Clauses
A Mechanical Availability Guarantee clause sets a minimum standard for the operational readiness of equipment or facilities, ensuring they are available for use a specified percentage of the time. Typically, this clause outlines how availability is measured, what constitutes downtime, and the remedies or penalties if the guaranteed level is not met. Its core function is to allocate risk and incentivize the responsible party to maintain equipment reliability, thereby minimizing disruptions and protecting the interests of the party relying on the equipment's performance.
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Mechanical Availability Guarantee. Seller guarantees that the annual Availability of the Facility (the “Mechanical Availability Guarantee”) for (i) the first Contract Year shall be no less than 0.80, and (ii) for the second Contract Year shall be no less than 0.85. Beginning with the third Contract Year and for each Contract Year thereafter, the Mechanical Availability Guarantee for each Contract Year shall be 0.90, with such annual Availability to be calculated for purposes of this Section 4.3 for each Contract Year. Seller shall pay PacifiCorp liquidated damages under Section 11.4.1 if the Availability in any given Contract Year falls below the Mechanical Availability Guarantee for the Contract Year.
Mechanical Availability Guarantee. The Facility shall achieve a minimum Mechanical Availability of 80% for each Contract Year. Within 45 days after the end of each Contract Year, Seller shall provide documentation in a form reasonably acceptable to NorthWestern to demonstrate the Mechanical Availability of the Facility for the applicable Contract Year. Each Contract Year Seller shall pay NorthWestern, as liquidated damages $2,500 per one percentage point (1%) that the Mechanical Availability Guarantee exceeds the actual Mechanical Availability.