Restrictions on Sales Related to Unincluded Capacity Sample Clauses
The "Restrictions on Sales Related to Unincluded Capacity" clause limits a party's ability to sell or otherwise transfer capacity that is not explicitly covered under the main agreement. In practice, this means that any excess or additional capacity outside the scope of the contract cannot be sold to third parties without meeting certain conditions or obtaining prior approval. This clause serves to prevent circumvention of the agreement's terms and ensures that all capacity transactions remain within the agreed framework, thereby protecting the interests of the contracting parties and maintaining market stability.
Restrictions on Sales Related to Unincluded Capacity. (i) Neither Seller nor Seller’s Affiliates may sell, or enter into an agreement to sell, electric energy, Green Attributes, Capacity Attributes or Resource Adequacy Benefits associated with or attributable to Unincluded Capacity from any generating facility installed at the Site to a party other than SCE for a period of two (2) years following SCE’s Notice to Seller of Seller’s partial forfeiture of the Development Security pursuant to Exhibit K.
(ii) With respect to Seller’s Affiliates, the prohibition on contracting and sale as set forth in Section 3.06(h)(i) will not apply if, before entering into the contract or making a sale to a party other than SCE, any Seller’s Affiliate wishing to enter into a contract or sale provides SCE with a written offer to sell the electric energy, Green Attributes, Capacity Attributes and Resource Adequacy Benefits related to Unincluded Capacity to SCE on terms and conditions materially similar to or no less favorable to SCE than the terms and conditions contained in this Agreement and SCE fails to accept such offer within forty-five (45) days after SCE’s receipt thereof; provided, any Seller’s Affiliate wishing to enter into a contract or sale must:
(1) Build a new generating facility separate from the Generating Facility to produce such additional electric energy and associated attributes;
(2) Establish an entity other than Seller to act as the seller for such additional electric energy and associated attributes;
(3) Meter such additional generating capacity separately from the Generating Facility, to SCE’s reasonable satisfaction; and
(4) Separately interconnect such additional generating capacity to the Transmission Provider’s system, to SCE’s reasonable satisfaction. If the preceding conditions are met, Seller’s Affiliates (but not Seller) will be free to sell such additional electric energy and associated attributes to third parties.