Common use of Option A Clause in Contracts

Option A. A. For all Billable MWh Delivered after the Counted MWh for the Contract Year equals the Maximum Annual MWh, the Counted Service Hours equals the Maximum Annual Service Hours or, for hydroelectric Units, the Counted MWh for the Month equals the Maximum Monthly MWh (“Schedule G Billable MWh”): Fossil Fuel Units In addition to the Variable Cost Payment computed in accordance with Schedule C, the CAISO shall pay the Option A Variable Cost Payment, which shall be calculated in accordance with Equation G-1: Equation G-1 Option A Variable Cost Payment = 0.5  (Variable Cost Payment for the Billing Month)  Schedule G Billable MWh Billable MWh for the Billing Month Pumped Storage Hydroelectric Facilities In addition to the Variable Cost Payment computed in accordance with Schedule C, CAISO shall pay the product of (a) the Schedule G Billable MWh, (b) 0.5, and (c) YTD Pumping Costs divided by YTD Energy Produced as computed in accordance with Equation C4-2 in Schedule C. Conventional Hydroelectric Facilities In addition to the Variable Cost Payment computed in accordance with Schedule C, CAISO shall pay the sum of the products for each hour in the Billing Month of (a) the Hourly Fuel Price for natural gas for the hour calculated in accordance with Equation C1-8 of Schedule C, (b) 12,000 Btu/kWh, (c) the Schedule G Billable MWh for that hour, and (d) 0.5.