Common use of Testing Costs Clause in Contracts

Testing Costs. Seller will, at times and for durations reasonably agreed to by Buyer, conduct necessary testing to ensure the Project is functioning properly and each Generating Unit is on an individual basis able to respond to Buyer or CAISO dispatch instructions. Such tests shall include (i) the Commercial Operation Test pursuant to Section 7.2, (ii) the annual Contract Capacity, Heat Rate & Ancillary Services Tests pursuant to Section 7.3, and (iii) the operational readiness tests pursuant to Section 7.4. Such tests are required under this Agreement and shall be deemed Buyer instructed dispatches of the applicable Generating Unit. Seller may also conduct other discretionary tests, at times and for durations reasonably agreed to by ▇▇▇▇▇, that Seller deems necessary for purposes of reliably operating the Project or for re-performing a required test within a reasonable number of days of the initial required test (considering the circumstances that led to the need for a retest). If such discretionary testing is conducted during a day in which ▇▇▇▇▇ has dispatched the Generating Unit being tested (“Buyer Dispatched Test”), Seller shall not be obligated to pay for the fuel, transportation costs and use taxes (including any charges assessed for surcharges, fuel retention, imbalances, penalties, balancing or storage costs) relating to such Buyer Dispatched Test of such Generating Unit, and Energy from such Generating Unit shall be treated as dispatched by Buyer hereunder. If discretionary testing is conducted during a day in which Buyer has not dispatched the Generating Unit being tested (“Seller Initiated Test”), Seller shall pay for all fuel and transportation costs and use taxes relating to such Seller Initiated Test of such Generating Unit and Buyer shall pay to Seller, in the month following Buyer’s receipt of such CAISO revenues and otherwise in accordance with Article 10, the applicable CAISO real-time hourly average energy price (or successor price) and other revenues associated with the Energy generated and delivered from such Generating Unit during such Seller Initiated Test. Moreover, there shall be no Heat Rate Payment for any period during which a Seller Initiated Test takes place. To the extent a Seller Initiated Test prevents Buyer from dispatching a Generating Unit as it would have absent such test, then, in accordance with Article 9, such Generating Unit will be deemed unavailable; provided, however Buyer shall not dispatch or otherwise schedule such Generating Unit during such Seller Initiated Test. Except as otherwise provided in Sections 7.2 and 7.3 and Appendix 7, Seller shall notify Buyer of any Seller Initiated Test no later than 24 hours prior thereto (or any shorter period reasonably acceptable to Buyer consistent with Accepted Electrical Practices). For purposes of clarification, any test performed before the Initial Delivery Date, other than the Commercial Operation Test pursuant to Section 7.2, is a Seller Initiated Test. 18