Common use of Alternative Services Clause in Contracts

Alternative Services. To the extent that Generator does not provide Capacity Resources Requirements, Ancillary Services Requirements, the Required Energy and/or the Optional Energy ("Services") to Pepco as required under this Agreement, Generator, as an alternative method of performing such obligations, shall pay Pepco the positive difference between the price Pepco pays for such Services in the appropriate PJM marketplace, or if not available in the PJM market, any other market ("Alternative Services") and the price Pepco would have paid to Generator for such Services under this Agreement, plus penalties and nonperformance charges, if any, assessed on Pepco by the PJM Interconnection LLC or PJM System Operator as a result of the Generator not providing the Services. Calculation of the cost of Alternative Services hereunder shall include all reasonable direct costs associated with the procurement and delivery of Alternative Services, including legal or transactional costs and expenses; taxes, energy, demand, capacity, or reservation charges; energy losses; emergency energy; and any transmission or congestion costs but does not include the cost of PJM network service. For purposes of determining the amount of Alternative Services Pepco purchases to satisfy its energy requirements, energy requirements for any day shall be the net amount of energy Pepco purchases for the Service Load in the PJM day-ahead and second settlement markets. Notwithstanding the foregoing, Generator shall not have satisfied its obligations to provide electricity from Renewable Energy Resources under the provisions of this Section 8.1 unless Pepco acquires such electricity in the PJM market or such other market in which Pepco acquires Services.

Alternative Services. To the extent that Generator does not provide Capacity Resources Requirements, Ancillary Services Requirements, the Required Energy and/or the Optional Energy ("Services") to Pepco as required under this Agreement, Generator, as an alternative method of performing such obligations, shall pay Pepco the positive difference between the price Pepco pays for such Services in the appropriate PJM marketplace, or if not available in the PJM market, any other market ("Alternative Services") and the price Pepco would have paid to Generator for such Services under this Agreement, plus penalties and nonperformance charges, if any, assessed on Pepco by the PJM Interconnection LLC or PJM System Operator as a result of the Generator not providing the Services. Calculation of the cost of Alternative Services hereunder shall include all reasonable direct costs associated with the procurement and delivery of Alternative Services, including legal or transactional costs and expenses; taxes, energy, demand, capacity, or reservation charges; energy losses; emergency energy; and any transmission or congestion costs but does not include the cost of PJM network service. For purposes of determining the amount of Alternative Services Pepco purchases to satisfy its energy requirements, energy requirements for any day shall be the net amount of energy Pepco purchases for the Service Load in the PJM day-ahead and second settlement markets. Notwithstanding the foregoing, Generator shall not have satisfied its obligations to provide electricity from Renewable Energy Resources under the provisions of this Section 8.1 unless Pepco acquires such electricity in the PJM market or such other market in which Pepco acquires Services.