Replacement Capacity Sample Clauses
The Replacement Capacity clause defines the process and conditions under which a party may substitute or add capacity to fulfill contractual obligations, typically in the context of supply, service, or energy agreements. This clause outlines the requirements for notifying the other party, obtaining approvals, and ensuring that the replacement capacity meets specified standards or criteria. Its core practical function is to provide flexibility for the performing party to maintain service levels or supply commitments, while protecting the interests of the receiving party by ensuring that any replacement is suitable and does not compromise the agreement's objectives.
Replacement Capacity. (i) Subject to the provisions of this Agreement, if at any time the Accredited Capacity of the Facilities is less than the Buyer’s Capacity Amount, then Seller may provide Buyer with Replacement Capacity but only to the extent that the Accredited Capacity of the Facilities is less than the Buyer’s Capacity Amount. In no event shall Seller provide Replacement Capacity for a period of less than 12 months; provided, that if the MISO market provides for a capacity product of less than 12 months, Seller may provide Replacement Capacity for such shorter period of capacity product, but in no event less than one month or less than the Peak Period in the event Accredited Capacity is unavailable for any month in the applicable Peak Period; provided, further, that if the applicable regional reliability council or any other Governing Authority requires Replacement Capacity to be provided for a period of time greater than as set forth in the preceding proviso in order for such Replacement Capacity to be deemed Accredited Capacity, then Seller may only provide Replacement Capacity for a period no less than as mandated by such Governing Authority. Seller shall notify the Dispatch Authority Function of the source of such Replacement Capacity as soon as practicable. Subject to the terms of this Agreement, if at any ▇▇▇▇ ▇▇▇▇▇▇ does not deliver Accredited Capacity from the Facilities or Replacement Capacity, in either case in an amount equal to Buyer’s Capacity Amount, Seller shall be required to pay Buyer liquidated damages equal to [**] (“Accredited Capacity Liquidated Damages”) for each MW-month (or portion thereof) of each such shortfall. At Buyer’s election, Seller shall be required to pay Accredited Capacity Liquidated Damages within five (5) Business Days of invoice receipt therefor.
(ii) The amount, if any, by which the Accredited Capacity Liquidated Damages incurred in any calendar month exceed the Delivered Energy Payment due and payable for such month is referred to as the “Monthly Excess Accredited Capacity Liquidated Damages Amount”. In no event shall the sum of the Monthly Excess Accredited Capacity Liquidated Damages Amounts accrued during any Calendar Year exceed [**].
Replacement Capacity. In the event Seller submits an Availability Notice indicating that the availability of the Contract Quantity of Capacity is less than the Contract Quantity of Capacity, Seller may, but is not obligated to, offer, whether in such Availability Notice or otherwise, to obtain or to arrange the delivery of Replacement Capacity for Buyer, subject to the terms and conditions herein. Buyer will, in its sole and absolute discretion, have the right to accept or reject any such offer on a case-by-case basis. To the extent Buyer affirmatively accepts, through notice given to Seller, Seller’s offer to obtain or to arrange the delivery of Replacement Capacity pursuant to this Section [3.4(a)], such Replacement Capacity, together with the amount of the Contract Quantity of Capacity to be made available to Buyer under this terms of the applicable Availability Notice, shall constitute the Contract Quantity of Capacity for all purposes hereunder and, except to the extent the Parties have agreed otherwise, Seller shall be obligated to provide such Replacement Capacity, energy associated therewith, and Other Associated Electric Products to Buyer in accordance with the terms of the applicable Scheduling and Dispatch Notice and this Transaction.
Replacement Capacity. In the event Seller is unable to Schedule and Dispatch to Buyer the Declared Capacity and associated energy in accordance with a Scheduling and Dispatch Notice, Seller may, but is not obligated to, offer to obtain Replacement Capacity for Buyer subject to the terms and conditions herein. Buyer will, in its sole and absolute discretion, have the right to accept or reject Seller’s offer to obtain Replacement Capacity, on a case-by-case basis. To the extent Buyer accepts Seller’s offer to obtain Replacement Capacity pursuant to this Section [3.4(a)], such Replacement Capacity shall, for all purposes of this Transaction, constitute Contract Quantity of Capacity that is actually available.