Common use of Obligations of Generator Clause in Contracts

Obligations of Generator. 2.3.1. Generator shall use all commercially reasonable efforts to cause the Capacity Facility to qualify under the RPM Rules as a capacity resource in an amount no less than the Awarded Capacity Amount for the Base Residual Auction associated with each Delivery Year during the term of this Agreement, commencing upon the Awarded Commencement Date. 2.3.2. Generator shall use all commercially reasonable efforts to cause the Capacity Facility to achieve commercial operation no later than the Commencement Date. 2.3.3. Throughout the Delivery Term, Generator shall: (a) Cause the Capacity Facility to comply with all obligations of a capacity resource under the RPM Rules, including without limitation the obligations relating to the submission of offers to supply electric energy and ancillary services in PJM markets, and Generator shall bear all costs associated with such compliance, including without limitation all fees and penalties imposed by PJM; (b) Submit supply offers for an amount of Unforced Capacity no less than the Awarded Capacity Amount from the Capacity Facility in accordance with the RPM Rules in the Base Residual Auction associated with each Delivery Year during the term of this Agreement, such that the Unforced Capacity shall be offered at the lowest commercially reasonable price under the RPM rules; (c) Submit supply offers from the Capacity Facility for the maximum amount of Associated Energy that the Capacity Facility can provide in the PJM day-ahead energy market in accordance with PJM Market Rules throughout the Delivery Term, such that the Associated Energy shall be offered at the lowest commercially reasonable price under PJM’s Market Rules; (d) Submit supply offers from the Capacity Facility for the maximum amount of Associated Ancillary Services that the Capacity Facility can provide in the PJM ancillary services markets in accordance with PJM Market Rules throughout the Delivery Term, such that the Associated Ancillary Services shall be offered at the lowest commercially reasonable price under PJM’s Market Rules; (e) Neither physically nor financially withhold any Unforced Capacity up to the amount of Awarded Capacity, or Associated Energy and Associated Ancillary Services, from the Capacity Facility; (f) Provide on a timely basis (which, in the case of documentation provided to Generator by PJM, shall mean within five (5) Business Days of Generator’s receipt of such documentation) all documentation required by Utility to make the calculations and notifications required by Sections 2.2 and 4.1, including without limitation: (i) documentation provided to Generator by PJM after the conclusion of each Base Residual Auction showing the amount of Unforced Capacity offered from the Capacity Facility and cleared by PJM in such Base Residual Auction; (ii) documentation provided to Generator by PJM in advance of each Delivery Year showing the all EFORd measurements for the Capacity Facility for the Delivery Year; (iii) the result of any capability test of the Capacity Facility conducted by PJM; (iv) documentation provided to Generator by PJM in advance of each Delivery Year showing the Available Capacity Amount for the Delivery Year or required to calculate the Available Capacity Amount for the Delivery Year; and (v) documentation notifying Generator of any correction to an input to a calculation, as provided in Section 2.9; provided that Generator may redact from any such documentation data that do not relate to the Capacity Facility; (g) Provide on a timely basis all documentation reasonably requested by Utility to demonstrate Generator’s compliance with all of its obligations as set forth in this Section 2.3 and affirmative covenants as set forth in Section 6. Utility shall have the right, upon reasonable notice to Generator, to request such information once each year and, in addition, upon the occurrence of any event or upon Utility’s receipt of information that gives Utility reasonable grounds for concern in good faith as to Generator’s compliance with one or more such obligations; (h) Prepare and file an annual certification to the Board within thirty (30) calendar days after the end of each Delivery Year describing the Generator’s compliance with Section 2.3.3 (b) through Section 2.3.3 (e) and any material actions taken by the Generator under this Agreement. 2.3.4. Cause to be provided to the Utility throughout the Construction Period, Construction Period Security in an amount to be calculated annually equal to the product of $10,000/MW and the Awarded Capacity Amount and the Utility’s Load Ratio, but in no case more than the product of $1 million, and the Utility’s Load Ratio. Such Construction Period Security shall be in the form of a Letter of Credit or Cash held in escrow by the Utility, which shall have the right to draw upon the Construction Period Security as provided in Section 9.4. In the event of the application of any such Construction Period Security toward any amount owed hereunder to Generator the Generator shall have no obligation to increase the amount of the Construction Period Security beyond the initial amount provided. 2.3.5. Cause to be provided to the Utility throughout the Delivery Term, Delivery Term Security in an amount to be calculated annually equal to the product of $25,000/MW and the Awarded Capacity Amount and the Utility’s Load Ratio with the amount of Delivery Term Security declining pro rata at the conclusion of each Delivery Year over any remaining term of this Agreement. Such Delivery Period Security shall be in the form of a Letter of Credit or Cash held in escrow by the Utility, which shall have the right to draw upon the Delivery Term Security as provided in Section 9.4. In the event of the application of any such Delivery Term Security toward any amount owed hereunder to Generator the Generator shall have no obligation to increase the amount of the Delivery Term Security beyond the initial amount provided. 2.3.6. Fulfill all Generator’s obligations under, and otherwise comply with all terms of, the Construction Period Security and Delivery Term Security.

Obligations of Generator. Deleted: best 2.3.1. Generator shall use all commercially reasonable efforts to cause the Capacity Facility to qualify under the RPM Rules as a capacity resource in an amount no less than the Awarded Capacity Amount for the Base Residual Auction associated with each Delivery Year during the term of this Agreement, commencing upon the Awarded Commencement Date. 2.3.2. Generator shall use all commercially reasonable efforts to cause the Capacity Facility to achieve commercial operation no later than the Commencement Date. 2.3.3. Throughout the Delivery Term, Generator shall: (a) Cause the Capacity Facility to comply with all obligations of a capacity resource under the RPM Rules, including without limitation the obligations relating to the submission of offers to supply electric energy and ancillary services in PJM markets, and Generator shall bear all costs associated with such compliance, including without limitation all fees and penalties imposed by PJM; (b) Submit supply offers for an amount of Unforced Capacity no less greater than the Awarded Capacity Amount from the Capacity Facility in accordance with the RPM Rules in the Base Residual Auction associated with each Delivery Year during the term of this Agreement, such that the Unforced Capacity supply offers shall be offered priced at the lowest commercially reasonable allowable price under the RPM rules; (c) Submit supply offers from the Capacity Facility for the maximum amount of Associated Energy associated electrical energy that the Capacity Facility can provide in the PJM day-ahead energy market in accordance with PJM Market Rules throughout the Delivery Term, such that the Associated Energy energy supply offers shall be offered commercially reasonable and priced at the lowest commercially reasonable allowable price under PJM’s Market Rules; (d) Submit supply offers from the Capacity Facility for the maximum amount of Associated Ancillary Services associated ancillary services that the Capacity Facility can provide in the PJM ancillary services markets in accordance with PJM Market Rules throughout the Delivery Term, such that the Associated Ancillary Services ancillary services offers shall be offered commercially reasonable and priced at the lowest commercially reasonable allowable price under PJM’s Market Rules; (e) Neither physically nor financially withhold any Unforced Capacity up to Formatted: Bullets and Numbering the amount of Awarded Capacity, Capacity or Associated Energy associated electrical energy and Associated Ancillary Services, ancillary services from the Capacity Facility; (f) Provide on a timely basis (which, in the case of documentation provided to Generator by PJM, shall mean within five (5) Business Days of Generator’s receipt of such documentation) all documentation required by Utility to make the calculations and notifications February 23, 2011 required by Sections 2.2 and 4.1, including without limitation: (i) documentation provided to Generator by PJM after the conclusion of each Base Residual Auction showing the amount of Unforced Capacity offered from the Capacity Facility and cleared by PJM in such Base Residual Auction; (ii) documentation provided to Generator by PJM in advance of each Delivery Year showing the all EFORd measurements for the Capacity Facility for the Delivery Year; (iii) the result of any capability test of the Capacity Facility conducted by PJM; (iv) documentation provided to Generator by PJM in advance of each Delivery Year showing the Available Capacity Amount for the Delivery Year or required to calculate the Available Capacity Amount for the Delivery Year; and (v) documentation notifying Generator of any correction to an input to a calculation, as provided in Section 2.9; provided that Generator may redact from any such documentation data that do not relate to the Capacity Facility; (g) Provide on a timely basis all documentation reasonably requested by Utility to demonstrate Generator’s compliance with all of its obligations as set forth in this Section 2.3 and affirmative covenants as set forth in Section 6. Utility shall have the right, upon reasonable notice to Generator, to request such information once each year and, in addition, upon the occurrence of any event or upon Utility’s receipt of information that gives Utility reasonable grounds for concern in good faith as to Generator’s compliance with one or more such obligations; (h) Prepare and file an annual certification to the Board within thirty (30) calendar days after the end of each Delivery Year describing the Generator’s compliance with Section 2.3.3 (b) through Section 2.3.3 (e) and any material actions taken by the Generator under this Agreement. 2.3.4. Cause to be provided to the Utility throughout the Construction Period, Construction Period Security in an amount to be calculated annually equal to the product of $10,000/MW and the Awarded Capacity Amount and the Utility’s Load Ratio, but in no case more than the product of $1 million, million and the Utility’s Load Ratio. Such Construction Period Security shall be in the form of a Letter of Credit an LC or Cash cash held in escrow by the Utility, which shall have the right to draw upon the Construction Period Security as provided in Section 9.4. In the event of the application of any such Construction Period Security toward any amount owed hereunder to Generator the Generator shall have no obligation to increase the amount of the Construction Period Security beyond the initial amount provided. 2.3.5. Cause to be provided to the Utility throughout the Delivery Term, Delivery Term Security in an amount to be calculated annually equal to the product of $25,000/MW and the Awarded Capacity Amount and the Utility’s Load Ratio with the amount of Delivery Term Security declining pro rata at the conclusion of each Delivery Year over any remaining term of this Agreement. Such Delivery Period Security shall be in the form of a Letter of Credit or Cash held in escrow by the Utility, which shall have the right to draw upon the Delivery Term Security as provided in Section 9.4. In the event of the application of any such Delivery Term Security toward any amount owed hereunder to Generator the Generator shall have no obligation to increase the amount of the Delivery Term Security beyond the initial amount provided. 2.3.6. Fulfill all Generator’s obligations under, and otherwise comply with all terms of, the Construction Period Security and Delivery Term Security.;

Obligations of Generator. 2.3.1. Generator shall use all commercially reasonable efforts to cause the Capacity Facility to qualify under the RPM Rules as a capacity resource in an amount no less than the Awarded Capacity Amount for the Base Residual Auction associated with each Delivery Year during the term of this Agreement, commencing upon the Awarded Commencement Date. 2.3.2. Generator shall use all commercially reasonable efforts to cause the Capacity Facility to achieve commercial operation no later than the Awarded Commencement Date. 2.3.3. Throughout the Delivery Term, Generator shall: (a) Cause the Capacity Facility to comply with all obligations of a capacity resource under the RPM Rules, including without limitation the obligations relating to the submission of offers to supply electric energy and ancillary services in PJM markets, and Generator shall bear all costs associated with such compliance, including without limitation all fees and penalties imposed by PJM; (b) Submit a supply offers offer for an amount of Unforced Capacity no less than the Awarded Capacity Amount from the Capacity Facility in accordance with the RPM Rules in the Base Residual Auction associated with each Delivery Year during the term of this Agreement, which supply offer shall clear in each such that the Unforced Capacity shall be offered at the lowest commercially reasonable price under the RPM rulesBase Residual Auction; (c) Submit supply offers from the Capacity Facility for the maximum amount of Associated Energy that the Capacity Facility can provide in the PJM day-ahead energy market in accordance with PJM Market Rules throughout the Delivery Term, such that the Associated Energy shall be offered at the lowest commercially reasonable price under PJM’s Market Rules; (d) Submit supply offers from the Capacity Facility for the maximum amount of Associated Ancillary Services that the Capacity Facility can provide in the PJM ancillary services markets in accordance with PJM Market Rules throughout the Delivery Term, such that the Associated Ancillary Services shall be offered at the lowest commercially reasonable price under PJM’s Market Rules; (e) Neither physically nor financially withhold any Unforced Capacity up to the amount of Awarded Capacity, or Associated Energy and Associated Ancillary Services, from the Capacity Facility; (f) Provide on a timely basis (which, in the case of documentation provided to Generator by PJM, shall mean within five (5) Business Days of Generator’s receipt of such documentation) all documentation required by Utility to make the calculations and notifications required by Sections 2.2 and 4.1, including without limitation: (i) documentation provided to Generator by PJM after the conclusion of each Base Residual Auction showing the amount of Unforced Capacity unforced capacity offered from the Capacity Facility and cleared by PJM in such Base Residual Auction; (ii) documentation provided to Generator by PJM in advance of each Delivery Year showing the all EFORd measurements for the Capacity Facility for the Delivery Year; (iii) the result of any capability test of the Capacity Facility conducted by PJM; (iv) documentation provided to Generator by PJM in advance of each Delivery Year showing the Available Capacity Amount for the Delivery Year or required to calculate the Available Capacity Amount for the Delivery Year; and (v) documentation notifying Generator of any correction to an input to a calculation, as provided in Section 2.9; provided that Generator may redact from any such documentation data that do not relate to the Capacity Facility; (gd) Provide on a timely basis all documentation reasonably requested by Utility to demonstrate Generator’s compliance with all of its obligations as set forth in this Section 2.3 and affirmative covenants as set forth in Section 6. Utility shall have the right, upon reasonable notice to Generator, to request such information once each year and, in addition, upon the occurrence of any event or upon Utility’s receipt of information that gives Utility reasonable grounds for concern in good faith as to Generator’s compliance with one or more such obligations;; and (h) Prepare and file an annual certification to the Board within thirty (30) calendar days after the end of each Delivery Year describing the Generator’s compliance with Section 2.3.3 (b) through Section 2.3.3 (e) and any material actions taken by the Generator under this Agreement. 2.3.4. Cause to be provided to the Utility throughout the Construction Period, Construction Period Security in an amount to be calculated annually equal to the product of $10,000/MW and the Awarded Capacity Amount and the Utility’s Load Ratio, but in no case more than the product of $1 million, and the Utility’s Load Ratio. Such Construction Period Security shall be in the form of a Letter of Credit or Cash held in escrow by the Utility, which shall have the right to draw upon the Construction Period Security as provided in Section 9.4. In the event of the application of any such Construction Period Security toward any amount owed hereunder to Generator the Generator shall have no obligation to increase the amount of the Construction Period Security beyond the initial amount provided. 2.3.5. Cause to be provided to the Utility throughout the Delivery Term, Delivery Term Security in an amount to be calculated annually equal to the product of $25,000/MW and the Awarded Capacity Amount and the Utility’s Load Ratio with the amount of Delivery Term Security declining pro rata at the conclusion of each Delivery Year over any remaining term of this Agreement. Such Delivery Period Security shall be in the form of a Letter of Credit or Cash held in escrow by the Utility, which shall have the right to draw upon the Delivery Term Security as provided in Section 9.4. In the event of the application of any such Delivery Term Security toward any amount owed hereunder to Generator the Generator shall have no obligation to increase the amount of the Delivery Term Security beyond the initial amount provided. 2.3.6. Fulfill all Generator’s obligations under, and otherwise comply with all terms of, the Construction Period Security and Delivery Term SecurityAgreement.