Examples of Annual Quantity in a sentence
For example, if the Annual Quantity is 3,650 RECs and the Delivery starts on August 1, 2020, then the Delivery Term is August 1, 2020 through July 31, 2035 and, for each day during the 365-day period of August 1, 2020 through July 31, 2021, the Daily Quantity can be reduced from 10 RECs to 5 RECs. The maximum of 10 RECs is calculated by dividing the 3,650 RECs (Annual Quantity) by 365 days.
The minimum of 5 RECs is calculated by dividing 3,650 RECs (Annual Quantity) by 365 days, and then multiplying by 50%.
If the Facility produces LRECs or ZRECs in excess of the Maximum Annual Quantity, Buyer at its sole discretion may offer to purchase, but is under no obligation to offer to purchase, such excess up to the total of such excess LRECs or ZRECs at the Purchase Price and Seller may accept such offer but is under no obligation to sell such excess to Buyer.
In no event shall Buyer be required to purchase LRECs or ZRECs in excess of the Maximum Annual Quantity during any Contract Year.
For avoidance of confusion, the following example is provided: If a developer with a Maximum Annual Quantity of 100 LRECs produces 110 LRECs in Contract Year 1 and such Seller elected and properly notified Buyer of its intent to transfer the excess 10 LRECs to Buyer for payment in Contract Year 2, Buyer would pay for 100 LRECs in Contract Year 1, in accordance with the normal invoicing cycle, and pay for the extra 10 LRECs in Contract Year 2.