Common use of Guaranteed Output Clause in Contracts

Guaranteed Output. 6.1.1 WMRE covenants that beginning with the second (2nd) Contract Year the amount of Energy sold to City Light during each Contract Year will be greater than the Guaranteed Output. If WMRE fails to sell to City Light the Guaranteed Output during any Contract Year after the first Contract Year, then WMRE shall pay City Light an amount determined as follows: Exhibit I, Replacement Energy Cost Example Calculation. 6.1.2 No later than February 10 of each Contract Year, beginning with the third Contract Year, City Light shall deliver to WMRE an invoice showing City Light’s computation of the number of MWh of Energy delivered to City Light by WMRE as measured at the Meter and WMRE’s Guaranteed Output for the immediately preceding Contract Year as well as any amount due City Light as Replacement Energy Cost. WMRE shall pay such amount to City Light by wire transfer of immediately available funds by the later of ten (10) Days after WMRE’s receipt of City Light’s statement or the 20th Day of the month in accordance with the wire transfer instructions set out in Exhibit K, Contact Information, as it may be changed from time to time, or to the account specified in writing by City Light for such purpose or by any other means agreed to by the Parties in writing from time to time, provided that any disputed invoices shall be treated as set forth in Section 10.4.

Guaranteed Output. 6.1.1 WMRE covenants that beginning with the second (2nd) Contract Year the amount of Energy sold to City Light during each Contract Year will be greater than the Guaranteed Output. If WMRE fails to sell to City Light the Guaranteed Output during any Contract Year after the first Contract Year, then WMRE shall pay City Light an amount determined as follows: Exhibit I, Replacement Energy Cost For each Month that the Market Price is greater than the Contract Rate the payment shall equal ((Guaranteed Output – annual Energy)/9) multiplied by (Market Price – Contract Rate). Total annual payment will be equal to the sum of all nine months’ payments. An Example Calculation.illustrating the calculation under certain stated assumptions is set forth in 6.1.2 No later than February 10 of each Contract Year, beginning with the third Contract Year, City Light shall deliver to WMRE an invoice showing City Light’s computation of the number of MWh of Energy delivered to City Light by WMRE as measured at the Meter and WMRE’s Guaranteed Output for the immediately preceding Contract Year as well as any amount due City Light as Replacement Energy Cost. WMRE shall pay such amount to City Light by wire transfer of immediately available funds by the later of ten (10) Days after WMRE’s receipt of City Light’s statement or the 20th Day of the month in accordance with the wire transfer instructions set out in Exhibit K, Contact Information, as it may be changed from time to time, or to the account specified in writing by City Light for such purpose or by any other means agreed to by the Parties in writing from time to time, provided that any disputed invoices shall be treated as set forth in Section 10.4.