Common use of Variable Costs Clause in Contracts

Variable Costs. ‌ The variable generation costs will include, but are not limited to, the following components: 1. The variable energy commodity price, which, depending on structure, will likely be variable, tied to a natural gas price (including variable gas transportation costs) and a contractual or manufacturer recommended heat rate and capacity at the time of delivery (adjusted for temperature). In certain structures, the variable energy commodity price will be fixed, or potentially fixed with an annual escalation. 2. Variable O&M ($/MWh). 3. Potential CO2 costs ($/ton) ($/MWh based on a $/ton CO2 basis). 4. Transmission losses in those cases where the Company will incur third-party transmission losses (if applicable). 5. Start costs (if applicable) per plant and per machine (if applicable). Bidders must define if this start cost is from initiation of start to minimum sustainable load or to full load. Start costs and variable O&M must be clearly separated. Cost to be provide by Bidder in $/MWh terms, assuming both eight- and sixteen- hour run periods, for up to 365 starts per year at 100% availability.4

Variable Costs. ‌ The variable generation costs will include, but are not limited to, the following components: 1. : The variable energy commodity price, which, depending on structure, will likely be variable, tied to a natural gas price (including variable gas transportation costs) and a contractual or manufacturer recommended heat rate and capacity at the time of delivery (adjusted for temperature). In certain structures, the variable energy commodity price will be fixed, or potentially fixed with an annual escalation. 2. Variable O&M ($/MWh). 3. Potential CO2 costs ($/ton) ($/MWh based on a $/ton CO2 basis). 4. Transmission losses in those cases where the Company will incur third-party transmission losses (if applicable). 5. Start costs (if applicable) per plant and per machine (if applicable). Bidders must define if this start cost is from initiation of start to minimum sustainable load or to full load. Start costs and variable O&M must be clearly separated. Cost to presentation format provided by the Bidder should be provide by Bidder in $/MWh terms, assuming both eight- and sixteen- hour run periods, for up to 365 starts per year at 100% availability.4availability.5