Common use of Cancellation Costs Clause in Contracts

Cancellation Costs. If PECO ENERGY is not in default (as defined in Section 20.2 hereof), SELLER shall be liable to pay to PECO ENERGY all CANCELLATION COSTS which PECO ENERGY incurs. In the event PECO ENERGY incurs CANCELLATION COSTS for which SELLER is responsible under this AGREEMENT, PECO ENERGY shall provide SELLER with a written demand for payment. SELLER shall be obligated to make payment to PECO ENERGY for any CANCELLATION COSTS immediately upon PE's presentation of the written demand. If the AGREEMENT is terminated under Sections 19.1 or 19.2 hereof before PECO ENERGY has completed the construction and installation of the PECO ENERGY INTERCONNECTION EQUIPMENT, PECO ENERGY shall have the right to cancel or terminate any supplier and contractor agreements and orders entered into in connection with discharging its obligations to design, construct and install the PECO ENERGY INTERCONNECTION EQUIPMENT. In the event PECO ENERGY terminates or cancels any supplier or contractor agreements or orders as permitted in this Section 9.17, PECO ENERGY shall consult with SELLER but retain final discretion relative to the manner of resolving any such claim or demand by any contractor or supplier, and PECO ENERGY shall be the sole judge of the acceptability of any compromise in settlement or resolution of an such claim or demand. Additionally, PECO ENERGY shall be the sole judge as to what is necessary to maintain the safety, integrity or reliability of the PECO ENERGY SYSTEM relative to any removal or completion of PECO ENERGY INTERCONNECTION EQUIPMENT. PECO ENERGY shall exercise reasonable care in resolving contractor and supplier claims and demands and in effecting any required removal or completion of PECO ENERGY INTERCONNECTION EQUIPMENT so as to mitigate the dollar amount paid in effecting the resolution of such claims and demands or the dollar amount expended in completing such removal or completion tasks; provided, however, that PECO ENERGY shall have no liability to SELLER for or on account of the dollar amounts paid in effecting such removal or completion tasks except where PECO ENERGY effects the resolution of any such claims and demands or the completion of such tasks in a manner which is in willful disregard of its obligation to mitigate.

Cancellation Costs. If PECO ENERGY is not in default (as defined in Section 20.2 hereof)In order to complete the design, SELLER shall be liable to pay to PECO ENERGY all CANCELLATION COSTS which PECO ENERGY incurs. In the event PECO ENERGY incurs CANCELLATION COSTS for which SELLER is responsible under this AGREEMENT, PECO ENERGY shall provide SELLER with a written demand for payment. SELLER shall be obligated to make payment to PECO ENERGY for any CANCELLATION COSTS immediately upon PE's presentation of the written demand. If the AGREEMENT is terminated under Sections 19.1 or 19.2 hereof before PECO ENERGY has completed the construction and installation of the PECO ENERGY INTERCONNECTION EQUIPMENTINTERCONNECTION, PECO ENERGY PSE&G shall be required to enter into contractual arrangements with, inter alia, equipment/material suppliers and third-party contractors. Upon occurrence of any Event of Termination as specified in ARTICLE XXIII during the construction period, PSE&G shall have the right to cancel or terminate any supplier and and/or contractor agreements and orders entered into in connection with discharging its obligations to design, construct and install the PECO ENERGY INTERCONNECTION EQUIPMENTINTERCONNECTION. In the event PECO ENERGY PSE&G exercises any right pursuant to and in accordance with this Section D to cancel or terminate any supplier and/or contractor agreements/orders, PSE&G may incur CANCELLATION COSTS. In such event, SELLER shall be liable for and make payment to PSE&G for all CANCELIATION COSTS which PSE&G incurs. Additionally, upon occurrence of an Event of Termination as defined in ARTICLE XXIII during the construction period, PSE&G may be required to remove and/or complete the construction work in progress in order to maintain the integrity, safety and reliability of the PUBLIC SERVICE SYSTEM. In such event, PSE&G may also incur CANCELLATION COSTS. SELLER shall be liable for and make payment to PSE&G for all such CANCELLATION COSTS which PSE&G incurs. In the event PSE&G incurs any CANCELLATION COSTS, PSE&G shall have the right to demand payment for and receive payment from ISSUER under the CREDIT for all such costs; provided, however, in the event the CREDIT is insufficient, PSE&G retains the right to demand payment from SELLER for any such deficiency, and in such event, SELLER shall be obligated to make payment to PSE&G for any such CANCELLATION COSTS not paid under the CREDIT. In connection with determining the amount of any demand(s) for payment of ISSUER to be made by PSE&G for any CANCELLATION COSTS incurred, PSE&G shall give SELLER a monetary credit for the value to PSE&G of any facilities or equipment received by and which are thereafter useful to PSE&G. In the event PSE&G terminates or cancels any supplier or and/or contractor agreements or agreements/orders as permitted in this Section 9.17D, PECO ENERGY PSE&G shall consult with SELLER but retain final have complete discretion relative to the manner of resolving any such claim or and/or demand by any contractor or supplierand/or supplier in connection therewith and further, and PECO ENERGY PSE&G shall be the sole judge of the acceptability of any compromise in settlement or resolution of an any such claim or demand. Additionally, PECO ENERGY PSE&G shall be the sole judge as to what is necessary to maintain the safety, integrity or reliability of the PECO ENERGY PUBLIC SERVICE SYSTEM relative to any the removal or completion of PECO ENERGY INTERCONNECTION EQUIPMENTthe construction work in progress. PECO ENERGY PSE&G shall exercise reasonable care in resolving contractor and contractor/supplier claims and demands claim(s)/demand(s) and in effecting any required removal or completion of PECO ENERGY INTERCONNECTION EQUIPMENT the construction work in progress so as to mitigate the dollar amount paid in effecting the resolution of such claims and demands claim(s)/demand(s) or in the dollar amount expended in completing such removal or completion tasks; provided, however, that PECO ENERGY PSE&G shall have no liability to SELLER for or on account of the dollar amounts amount(s) paid in effecting such removal or completion tasks except where PECO ENERGY effects the resolution of any such claims and demands claim(s)/demand(s) or in effecting such removal/completion tasks, except where the resolution of any such claim(s)/demand(s) or the completion of such tasks were effected by PSE&G in a manner which is was in willful disregard of its obligation to mitigate, as defined in this paragraph.

Cancellation Costs. If PECO ENERGY is not in default (as defined in Section 20.2 hereof), SELLER shall be liable to pay to PECO ENERGY all CANCELLATION COSTS which PECO ENERGY incurs. In the event PECO ENERGY incurs CANCELLATION COSTS for which SELLER is responsible under this AGREEMENT, PECO ENERGY shall provide SELLER with a written demand for payment. SELLER shall be obligated to make payment to PECO ENERGY for any CANCELLATION COSTS immediately upon PEPECO ENERGY's presentation of the written demand. If the AGREEMENT is terminated under Sections 19.1 or 19.2 hereof before PECO ENERGY has completed the construction and installation of the PECO ENERGY INTERCONNECTION EQUIPMENT, PECO ENERGY shall have the right to cancel or terminate any supplier and contractor agreements and orders entered into in connection with discharging its obligations to design, construct and install the PECO ENERGY INTERCONNECTION EQUIPMENT. In the event PECO ENERGY terminates or cancels any supplier or contractor agreements or orders as permitted in this Section 9.17, PECO ENERGY shall consult with SELLER but retain final discretion relative to the manner of resolving any such claim or demand by ~y any contractor or supplier, and PECO ENERGY shall be the sole judge of the acceptability of any compromise in settlement or resolution of an any such claim or demand. Additionally, PECO ENERGY shall be the sole judge as to what is necessary to maintain the safety, integrity or reliability of the PECO ENERGY SYSTEM relative to any removal or completion of PECO ENERGY INTERCONNECTION EQUIPMENT. PECO ENERGY shall exercise reasonable care in resolving contractor and supplier claims and demands and in effecting any required removal or completion of PECO ENERGY INTERCONNECTION EQUIPMENT so as to mitigate the dollar amount paid in effecting the resolution of such claims and demands or the dollar amount expended in completing such removal or completion tasks; provided, however, that PECO ENERGY shall have no liability to SELLER for or on account of the dollar amounts paid in effecting the resolution of any such claims and demands or in effecting such removal or completion tasks except where PECO ENERGY effects the resolution of any such claims and demands or the completion of such tasks in a manner which is in willful disregard of its obligation to mitigate.