Compliance Cap definition
Compliance Cap means, with respect to each Contract Year, an amount equal to the product of USD $1.75 (increased by one percent (1.0%) for each Contract Year after the first Contract Year), and the total number of MWh comprising the Annual Supply Amount during such year, provided that under no circumstances shall such amount be less than One Hundred Twenty Four Thousand Nine Hundred and No/100 Dollars ($124,900). For purposes of the Stub Period, the Compliance Cap shall be prorated by multiplying the Compliance Cap for the first Contract Year by a fraction, the numerator of which is the number of full calendar months during the Stub Period and the denominator of which is 12.
Compliance Cap shall have the meaning set forth in Section 7.3(A).
Examples of Compliance Cap in a sentence
Within thirty (30) Days of the delivery of such notice with the estimate and reasonable supporting materials, EPE shall provide Seller notice of (I) EPE’s request for Seller to incur costs in excess of the Compliance Cap, in which case EPE shall reimburse Seller for such excess costs, or (II) EPE’s waiver of Seller’s performance of such actions.
No later than sixty (60) Days after Seller becomes aware the actions to ensure eligibility will cause it to incur costs in excess of the Compliance Cap, Seller shall provide to EPE notice with an estimate of the expected costs caused by the eligibility actions, along with reasonable supporting documentation.