Capacity Payment Clause Samples
A Capacity Payment clause establishes the obligation for one party, typically a purchaser, to pay another party, such as a power generator, for maintaining the ability to provide a specified amount of capacity, regardless of whether the full capacity is actually used. This payment is usually calculated based on the agreed-upon capacity that is made available, rather than the actual energy delivered, and may be structured as a fixed monthly fee or based on availability metrics. The core function of this clause is to ensure that the provider is compensated for reserving resources and maintaining readiness, thereby incentivizing reliability and supporting the financial viability of maintaining infrastructure even during periods of low demand.
POPULAR SAMPLE Copied 1 times
Capacity Payment. On the basis of the Rated Capacity, commencing on the Commercial Operation Date and for the remainder of the Term, Department shall pay Seller a payment for the Contract Capacity (the "Capacity Payment"), on a monthly basis in arrears, regardless of whether Department requests that Seller deliver Energy from the Facility. The annual Capacity Payment shall be an amount equal to $120,000/MW-yr, the monthly payments shall be as set forth in Appendix C. To the extent that the Commercial Operation Date occurs on a Day other than the first Day of a calendar month, and to the extent that the Term ends on a Day other than the last Day of a calendar month, Department shall pay the Capacity Payment on a pro-rata basis for that month. Each monthly Capacity Payment shall be reduced by $12,500 (as adjusted upward pursuant to the next succeeding sentence (the "Capacity Payment Reduction Amount"). To the extent that the application of a Capacity Payment Reduction Amount would result in a negative Capacity Payment in any month, the Capacity Payment Reduction Amounts in the next succeeding month(s) shall be increased by such negative Capacity Payment amount.
Capacity Payment. The monthly capacity payment (“Capacity Payment” or “KP”) shall be calculated as follows: KPm = CPm × FQm where, CPm = Contract Price for month m; FQm = Confirmed Quantity for month m.
Capacity Payment. The Capacity Payment for a given Month shall be calculated as follows:
Capacity Payment. On the basis of the Rated Capacity, commencing on the Commercial Operation Date and for the remainder of the Term, the Department shall pay the Capacity Payment, on a monthly basis in arrears, regardless of whether the Department requests that the Seller deliver Energy from the Facility. Such Capacity Payment shall be a monthly charge established not later than the Department Commitment Time for each fiscal year based on the following formula and allocated among months (shaped) on a $ per MW-mo basis as determined by the Department: The Capacity Payment = FOM + DS + RPLC FOM = fixed operation and maintenance expenses as established for such fiscal year pursuant to a Management Agreement, including amounts for insurance, fixed fuel cost components, Seller administrative costs, capital improvements or deposits to a major maintenance reserve fund less any amounts in such major maintenance reserve fund not needed for the purposes thereof. DS = [(the actual debt service payable on the Bonds) + (any other amount payable or required to be deposited pursuant to the indenture or resolution providing for the issuance of the Bonds)] - [(any credits for earnings or other amounts pursuant to the indenture or resolution providing for the issuance of the Bonds) + (in the years(s) in which the final maturit(y)(ies) of the Bonds occurs, the amount of any debt service or other reserve fund(s) held under such indenture or resolution)] during such fiscal year. RPLC = the cost of any real property lease for the Facility payable during such fiscal year. To the extent that the Facility achieves Commercial Operation on a Day other than the first Day of a calendar month, and to the extent that the Term ends on a Day other than the last Day of a calendar month, the Department shall pay the Capacity Payment on a pro-rata basis for that month.
Capacity Payment. The capacity payment shall be an amount equal to the amount of connection fees, impact fees, or contribution-in-aid-of construction (CIAC) fees that would be payable by a customer within the 180 Service Area to reserve the requested amount of treatment capacity in the CDD’s Wastewater System at the time of the CDD’s verification to ▇▇▇▇▇ of existing capacity availability as provided in Section 3.4or the cost of an increase in treatment capacity as provided in Section 3.4(b)(iii). Upon delivery of a capacity payment, and confirmation by the CDD that such payment is adequate to fund design and construction of the requested treatment capacity, ▇▇▇▇▇ shall be deemed to own the right to the collection, transmission, treatment, and disposal of the purchased amount of capacity in the CDD’s Wastewater System. The CDD may earmark, sell, assign, or convey a portion of the purchased capacity only at the direction of Howey or with ▇▇▇▇▇’▇ consent, which may be granted or withheld at ▇▇▇▇▇’▇ discretion.
Capacity Payment. With respect to each Billing Cycle, Buyer shall make a payment to Seller equal to the product of: (i) the applicable "Capacity Charge" set forth in Exhibit A; (ii) the applicable Capacity Charge Shaping Factor set forth in Exhibit C; and (iii) the number of MWhs of Delivered Energy for the Billing Cycle (each, a "Capacity Payment").
Capacity Payment. Commencing on the Effective Date, Buyer shall pay Seller (in arrears) each month during the Delivery Period the Monthly Capacity Payment (“MCP”) applicable to the Unit. The Monthly Capacity Payment shall be equal to the product of the Capacity Payment Rate (“CP”), and the then current NDC and shall be prorated on a daily basis in the event of a partial Delivery Month; provided that the Monthly Capacity Payment for December 2002 shall include an additional amount equal to $226,627.36 in consideration of the adjustments due under the Prior Agreement through October, 2002. The Monthly Capacity Payment for the Unit (by month) can be expressed as follows: MCP = NDC * Capacity Payment Rate where, the “Capacity Payment Rate” is the applicable rate set forth in Table 1 to this Attachment 1 which lists the Capacity Payment Rates in $/kW-Delivery Month. The “Delivery Months” are January through December and, collectively for the same calendar year, the “Annual Delivery Period”. Example for March 2002: Assume for the month of March 2002 that the Unit’s NDC is 22 MW (22,000 kW). The CP is $13.75/kW-mo. Hence, the MCP for that Delivery Month would be calculated as follows: MCP = 22,000 kW * $13.75/kW-mo = $302,500
Capacity Payment. 12.1.1 Beginning on the first day of the Operation Period, the Purchaser shall pay to the Seller each Month, in arrears on the thirtieth (30th) Business Day of each Month, an amount equal to the Capacity Payment in accordance with Clause 12.7.
12.1.2 Notwithstanding Clause 12.1.1 above, the Purchaser may withhold all such payments if any of the test results specified in Clause 10.2 have not been delivered pursuant thereto or if the Purchaser has notified the Seller that it contests the outcome of a test in accordance with Clause 10.4, pending resolution of the matter.
12.1.3 The amount of the Capacity Charge shall be as set forth in Annex G of Schedule 5 -.
12.1.4 If two step operation is agreed in the Minimum Functional Specifications in Schedule 1 -:
(a) Capacity Charge declared, by the Seller, for Open Cycle Operation in Annex G of Schedule 5 - will be considered for calculation of the Capacity Payment during the period of Open Cycle operation.
(b) Capacity Charge declared, by the Seller, for Combined Cycle Operation in Annex G of Schedule 5 - will be considered for calculation of the Capacity Payment during the Combined Cycle Operation. If Combined Cycle Operation is declared by the Seller on a date which is not the first date of the Month Capacity Charge applicable for Open Cycle Operation will apply from the first day of that month until the day Combined Cycle Operation is declared and Capacity Charge applicable for Combined Cycle Operation from the date of declaring Combined Cycle Operation until the last day of that month.
Capacity Payment. Buyer shall pay to Seller in arrears a monthly Capacity Payment equal to the product of the (i) Contract Quantity times (ii) $2.00 kW-month.
Capacity Payment. Commencing with the Start Date and continuing for the term of this Agreement, Buyer shall pay Seller for Capacity that Seller delivers to Buyer for the applicable Billing Month in accordance with Buyer’s QF-24 Standard Rate and at a rate of [insert capacity rate] in dollars per kilowatt hour; provided, however, in no event will Buyer pay Seller for more Capacity than the amount specified as Guaranteed Capacity in Exhibit A for the Billing Month. In accordance with Section 6.4 above, Buyer shall not be obligated to accept Capacity or make Capacity payments for electric energy which Seller may have available at the Plant during Emergencies and Exempt Operational Periods. Buyer will determine whether, given how and when Seller will supply Capacity to Buyer, the Capacity purchase will allow Buyer to avoid any transmission or distribution cost and, if so, that will be appropriately taken into account in Seller’s Capacity payment.