Common use of Non-Availability Discount Clause in Contracts

Non-Availability Discount. (i) During each month of the Services Term in which the Availability of the Units is less than the applicable Guaranteed Availability, the Availability Adjustment (“AA”), measured as a percentage, shall be determined as follows: For Summer Months: If Availability is greater or equal to 98% but less than 99%, then AA=100%; if Availability is less than 98%, but no less than 70%, then AA = 100% - [(98% - Availability) * 2]; and if Availability is less than 70% then AA=0 For Non-Summer Months: If Availability is greater or equal to 96%, then AA=100%; if Availability is less than 96%, but no less than 60%, then AA = 100% - [(96% - Availability) * 2]; and If Availability is less than 60%, then AA=0 (ii) Unavailability shall not result in a breach or Event of Default hereunder except as provided in Section 5.1(a) (v) or (vi).

Appears in 2 contracts

Sources: Power Purchase Agreement, Power Purchase Agreement