Common use of Capacity Charge Clause in Contracts

Capacity Charge. The Participant will incur a Capacity Charge in the event the Contracted DER fails a Test Activation for Energy or a Test Deployment for Local Reserve. A twenty percent (20%) dead band of the Quantity Activated or Quantity Deployed will be used in the assessment. For a Contracted DER that is a Thermal Resource, Storage Resource or Demand Response Resource (C&I), the Contracted DER is deemed to have failed a Test Activation for Energy if the following condition is true on average for the 5-minute intervals within a Test Activation: 5min ) < 80% × average(QAh) Where is the Quantity Activated for hour “h” QDR5min is the Quantity Delivered/Reduced (kWh) in a 5-minute interval in a Test Activation Hour For a Demand Response Resource (Residential), the Contracted DER is deemed to have failed a Test Activation of Energy if the following condition is true on average for the hours within a Test Activation: average(QRh) < 80% × average(QAh) Where is the Quantity Reduced (kWh) in hour “h” and is calculated in accordance with Exhibit D – Demand Response Baselining For a Contracted DER that is a Thermal Resource, Storage Resource or Demand Response Resource (C&I), the Contracted DER is deemed to have failed a Test Deployment for Reserve if the following condition is true for any 5-minute intervals within a Test Deployment: QDR5min < 80% × QD5min Where QD5min is the Quantity Deployed for a 5-minute interval QDR5min is the Quantity Delivered/Reduced (kWh) in a 5-minute interval during a Test Deployment Eq. 15 sets out the calculation for the Capacity Charge ($) applicable to the month “m”. (15)

Capacity Charge. The Participant will incur a Capacity Charge in the event the Contracted DER fails a Test Activation for Energy or a Test Deployment for Local Reserve. A twenty percent (20%) dead band of the Quantity Activated or Quantity Deployed will be used in the assessment. Specifically, for For a Contracted DER that is a Thermal Gas-firedThermal Resource, Storage Resource or Demand Response Resource (C&I), the Contracted DER is deemed to have failed a Test Activation for Energy if the following condition is true on average for the 5-minute intervals “i” within a Test ActivationActivation : 5min ) < 80% × average(QAh) Where is the Quantity Activated for hour “h” QDR5min is the Quantity Delivered/Reduced (kWh) in a 5-minute interval “i” in a Test Activation Hour For a Demand Response Resource (Residential), the Contracted DER is deemed to have failed a Test Activation of Energy if the following condition is true on average for the hours within a Test Activation: average(QRh) < 80% × average(QAh) Where is the Quantity Reduced (kWh) in hour “h” and is calculated in accordance with Exhibit D – Demand Response Baselining For a Contracted DER that is a Thermal Resource, Storage Resource or Demand Response Resource (C&I), the Contracted DER is deemed to have failed a Test Deployment for Reserve if the following condition is true for any 5-minute intervals within a Test Deployment: QDR5min < 80% × QD5min Where QD5min is the Quantity Deployed for a 5-minute interval QDR5min is the Quantity Delivered/Reduced (kWh) in a 5-minute interval during a Test Deployment Eq. 15 615 sets out the calculation for the Capacity Charge ($) applicable to the month “m”. (15)Where

Capacity Charge. The Participant will incur a Capacity Charge in the event the Contracted DER fails a Test Activation for Energy or a Test Deployment for Local Reserve. A twenty percent (20%) dead band of the Quantity Activated or Quantity Deployed will be used in the assessment. For a Contracted DER that is a Thermal Resource, Storage Resource or Demand Response Resource (C&I), the Contracted DER is deemed to have failed a Test Activation for Energy if the following condition is true on average for the 5-minute intervals within a Test Activation: 5min ) < 80% × average(QAh) Where is the Quantity Activated for hour “h” QDR5min is the Quantity Delivered/Reduced (kWh) in a 5-minute interval in a Test Activation Hour For a Demand Response Resource (Residential), the Contracted DER is deemed to have failed a Test Activation of Energy if the following condition is true on average for the hours within a Test Activation: average(QRh) < 80% × average(QAh) Where is the Quantity Reduced (kWh) in hour “h” and is calculated in accordance with Exhibit D – Demand Response Baselining For a Contracted DER that is a Thermal Resource, Storage Resource or Demand Response Resource (C&I), the Contracted DER is deemed to have failed a Test Deployment for Reserve if the following condition is true for any 5-minute intervals within a Test Deployment: QDR5min < 80% × QD5min Where QD5min is the Quantity Deployed for a 5-minute interval QDR5min is the Quantity Delivered/Reduced (kWh) in a 5-minute interval during a Test Deployment Eq. 15 sets out the calculation for the Capacity Charge ($) applicable to the month “m”. (15)