Special Rule in Case of Preemption. Notwithstanding anything to the contrary in Sections 8.02 through 8.04, the following rule shall apply to the extent that the Capacity Nomination specified by an Additional Participant preempts transmission capacity which was formerly held by another Participant by operation of Section 6.3 of the Standard Form Transmission Agreement or a provision of another form of Transmission Agreement similar in substance thereto. The Additional Participant shall remit to IID for distribution to the Participant whose capacity was so preempted (the "preempted Participant") an amount equal to the lesser of (a) the dollar value of the Transmission Credits then held by the preempted Participant or (b) a dollar amount equal to: M(r) CP P X ---- X --------- M(t) NTC - IRC Where P, M(r) and M(t) are defined as in Section 8.02, CP is the amount of capacity so preempted from the preempted Participant, NTC is the Normal Transmission Capacity of the Project at the time in question, and IRC is IID's Reserved Capacity. In return for such payment, IID shall transfer unused Transmission Credits on its books from the preempted Participant to the Additional Participant in an amount equal to the dollar amount so paid by the Additional Participant. In lieu of the payment and distribution required by Section 8.04, if the preempted Participant is an Original Participant and the capacity so preempted is part of its Original Capacity Nomination, the Additional Participant shall in addition pay IID for distribution to the preempted Participant an amount equal to fifteen percent (15%) of the amount calculated pursuant to the formula set forth in clause (b) above. For purposes of the foregoing sentence, capacity shall be deemed to be preempted from an Original Participant in the following order of priority: first, capacity, if any, which is part of an Original Participant's increase in Capacity Nomination pursuant to Section 8.06, and second, capacity which is part of an Original Participant's Original Capacity Nomination. An example of the operation of the foregoing is set forth in Exhibit 5.
Appears in 4 contracts
Samples: Funding and Construction Agreement (Ormat Technologies, Inc.), Funding and Construction Agreement (Ormat Technologies, Inc.), Funding and Construction Agreement (Ormat Technologies, Inc.)
