Common use of Application of Heat Rate Credits Clause in Contracts

Application of Heat Rate Credits. If the Net Heat Rate (including the Initial Heat Rate) exceeds the Guaranteed Heat Rate, Seller may reduce the Net Heat Rate for purposes of calculating the Actual Heat Rate Adjustment (for the period during which such Net Heat Rate is in effect) by up to 50 Btus/kWh so long as Heat Rate Credits exist. The Seller's accumulated quantity of Heat Rate Credits shall be reduced to the extent utilized to reduce the Net Heat Rate. For the purposes of tracking and application tabulation, the negative Heat Rate Credits that are established by testing shall be multiplied by the Electric Energy (kWh) delivered over the same period as the test results application period, and shall effectively become a withdrawal of heat energy units (Btus) from the accumulated units of energy per Section 7.3.2. If there is retroactive adjustment as provided for in Section 7.3.1, then the withdrawal tabulation of heat energy units shall be adjusted for the same period.

Application of Heat Rate Credits. If the Net Heat Rate -------------------------------- (including the Initial Heat Rate) exceeds the Guaranteed Heat Rate, Seller may reduce the Net Heat Rate for purposes of calculating the Actual Heat Rate Adjustment (for the period during which such Net Heat Rate is in effect) by up to 50 Btus/kWh so long as Heat Rate Credits exist. The Seller's accumulated quantity of Heat Rate Credits shall be reduced to the extent utilized to reduce the Net Heat Rate. For the purposes of tracking and application tabulation, the negative Heat Rate Credits that are established by testing shall be multiplied by the Electric Energy (kWh) delivered over the same period as the test results application period, and shall effectively become a withdrawal of heat energy units (Btus) from the accumulated units of energy per Section 7.3.2. If there is retroactive adjustment as provided for in Section 7.3.1, then the withdrawal tabulation of heat energy units shall be adjusted for the same period7.3.