Common use of Calculation of Deficiency Charges for Schedule Clause in Contracts

Calculation of Deficiency Charges for Schedule. 7 1. The deficiency charge for a deficiency determined pursuant to Schedule 7 shall be calculated in a manner set forth herein: DC = (R x L) Where: DC is the daily deficiency charge in dollars. R is the daily deficiency rate in dollars per megawatt-day in terms of Unforced Capacity as defined in section A. L is the deficiency calculated pursuant to section C of Schedule 7. 2. A change in Accounted-For Obligation due to an increase in customers during the applicable Interval shall be determined by subtracting the Party Peak Load of the Party (net of its operating Behind The Meter Generation, but not to be less than zero) on the twentieth day of the immediately preceding month from the Party Peak Load (net of its operating Behind The Meter Generation, but not to be less than zero) on the day the Party is deficient and multiplying this quantity by the Forecast Pool Requirement. If that number is positive, then the Party shall be assessed the DC for that portion of its deficiency due to such increase in customers. 3. If, on any day during an Interval, all or part of a deficiency occurs for reasons other than an increase in a Party’s Accounted-For Obligation due to an increase in customers as defined in subsection 2, above, then an entity shall pay the Interval Deficiency Charge per MW of deficiency. The Interval Deficiency Charge shall be paid only once during an Interval and shall be based on the largest amount of megawatts a Party is deficient on any one day during the Interval. Issued By: Xxxxx Xxxxxx Effective: June 1, 2004 Vice President, Governmental Policy Issued On: Xxxxx 0, 0000 XXX Interconnection, L.L.C. Substitute Original Sheet No. 39 First Revised Rate Schedule FERC No. 32 Superseding Original Sheet No. 39