PTC Value definition
PTC Value means an amount equal to: (A) the PTCs to which Seller would have been entitled with respect to renewable energy it is unable to deliver because of a Buyer Event of Default; plus (B) a “gross up” amount to take into account the federal, state and local income tax to Seller on such payments in lieu of PTCs, so that the net amount retained by Seller, after payment of federal, state and local income taxes, is equal to the amount set forth in clause (A) of this definition. For purposes of determining the foregoing, Seller shall deliver a certificate from an officer of Seller stating the corporate income tax rates (federal, state or local, as applicable) that are in effect for the Seller during the tax year in which the receipt of such PTC Value is taxed, and such income tax rates shall be used in the calculation of the PTC Value.
Examples of PTC Value in a sentence
MP further acknowledges that in the event MP fails or refuses to accept delivery of Contract Energy, except as otherwise permitted by this Agreement, the resulting loss of PTC Value by Seller shall be considered direct and actual damages incurred by Seller and not consequential damages.