Reserve Capacity Charge Clause Samples
The Reserve Capacity Charge clause defines a fee imposed on a party to secure a specified amount of capacity or resources, regardless of actual usage. Typically, this charge applies in utility or service agreements where a customer reserves a certain level of service—such as electricity, bandwidth, or storage—even if their actual consumption is lower. By establishing this charge, the clause ensures the service provider is compensated for maintaining readiness to deliver the reserved capacity, thereby allocating the risk of underutilization and supporting reliable service availability.
Reserve Capacity Charge. The monthly charge for Old Dominion Reserve Capacity as determined pursuant to Section 8.05 and Appendix I, hereof.
Reserve Capacity Charge. 85 RUS..................................................................
Reserve Capacity Charge. From and after the date of commercial operation of Unit No. 4 of the Four Corners Project, a party having a reserve deficiency in any month will pay to the other party a reserve capacity charge for that month in an amount equal to its reserve deficiency in kilowatts multiplied by the applicable rate set out below. $0.7917 per kilowatt per month for the first 10,000 kilowatts, plus $0.8750 per kilowatt per month for the next 10,000 kilowatts, plus $0.9583 per kilowatt per month for all additional kilowatts.