Common use of RA Deficiency Amount Calculation Clause in Contracts

RA Deficiency Amount Calculation. Commencing on the Commercial Operation Date, for each RA Shortfall Month, Seller shall pay to Buyer an amount (the “RA Deficiency Amount”) equal to the product of (a) the difference, expressed in kW, of (i) the Qualifying Capacity of the Facility for such month, minus (ii) the Net Qualifying Capacity of the Facility able to be shown on Buyer’s monthly or annual Resource Adequacy Plan (as defined in the CAISO Tariff) to the CAISO and CPUC and qualified as RAR and, if applicable, Local RAR by both the CPUC and CAISO for such month (such difference, the “RA Shortfall”), multiplied by (b) the sum of (i) the CPUC System RA Penalty and (ii) the CPM Soft Offer Cap; provided that Seller may, as an alternative to paying RA Deficiency Amounts, deliver Replacement RA in the amount of the RA Shortfall, provided that notice of such Replacement RA capacity is communicated by Seller to Buyer with Replacement RA product information in a written notice substantially in the form of Exhibit M at least seventy-five (75) days before the Compliance Showing deadline for the applicable Showing Month.