{"component": "clause", "props": {"groups": [{"samples": [{"hash": "77J7xCCFtYc", "uri": "/contracts/77J7xCCFtYc#capacity-charges", "label": "Emergency Potable Water Service Agreement", "score": 24.279945243, "published": true}], "snippet_links": [{"key": "the-\u2587", "type": "clause", "offset": [49, 54]}, {"key": "april-1", "type": "definition", "offset": [82, 89]}, {"key": "municipal-code", "type": "clause", "offset": [213, 227]}, {"key": "water-connection-fees", "type": "clause", "offset": [242, 263]}, {"key": "city-limits", "type": "definition", "offset": [285, 296]}, {"key": "minimum-charge", "type": "definition", "offset": [302, 316]}, {"key": "hours-of-use", "type": "definition", "offset": [334, 346]}, {"key": "additional-use", "type": "definition", "offset": [356, 370]}, {"key": "rounded-to", "type": "clause", "offset": [380, 390]}, {"key": "full-hour", "type": "definition", "offset": [403, 412]}], "size": 1, "snippet": "The capacity charge shall be $25.88 per hour for the \u2587\u2587\u2587\u2587\u2587\u2587 Valley connection. On April 1, 2021 and periodically thereafter, the capacity charges shall be adjusted by the same percentage provided in the FAIRFIELD municipal code for adjusting water connection fees within the FAIRFIELD city limits. The minimum charge shall be for six hours of use, and any additional use shall be rounded to the nearest full hour.", "hash": "0f03554d1342ad7fb9e5014609da7f84", "id": 6}, {"samples": [{"hash": "hMTyK6nejhO", "uri": "/contracts/hMTyK6nejhO#capacity-charges", "label": "Electricity Supply Contract", "score": 34.4815353322, "published": true}, {"hash": "hvUQtc8m6yu", "uri": "/contracts/hvUQtc8m6yu#capacity-charges", "label": "Electricity Supply Contract", "score": 34.1614529841, "published": true}, {"hash": "7DzHmsKjlQS", "uri": "/contracts/7DzHmsKjlQS#capacity-charges", "label": "Electricity Supply Contract", "score": 33.2168715102, "published": true}], "snippet_links": [{"key": "commercial-terms", "type": "clause", "offset": [20, 36]}, {"key": "you-must-pay", "type": "clause", "offset": [42, 54]}, {"key": "any-capacity", "type": "definition", "offset": [55, 67]}, {"key": "charges-payable", "type": "clause", "offset": [68, 83]}, {"key": "your-premises", "type": "clause", "offset": [132, 145]}], "size": 3, "snippet": "If specified in the Commercial Terms, the You must pay any Capacity Charges payable or otherwise incurred by Us attributable to the Your Premises.", "hash": "98ef3dfdde79fd18f1640e6a98f13dca", "id": 1}, {"samples": [{"hash": "kxHvnbQt0eH", "uri": "/contracts/kxHvnbQt0eH#capacity-charges", "label": "Power Purchase Agreement", "score": 36.2671257616, "published": true}, {"hash": "klEs2i4Iouw", "uri": "/contracts/klEs2i4Iouw#capacity-charges", "label": "Power Purchase Agreement", "score": 26.1704312115, "published": true}], "snippet_links": [{"key": "notwithstanding-anything-to-the-contrary", "type": "clause", "offset": [0, 40]}, {"key": "in-this-agreement", "type": "clause", "offset": [51, 68]}, {"key": "seller-shall", "type": "clause", "offset": [70, 82]}, {"key": "risk-and-responsibility", "type": "clause", "offset": [92, 115]}, {"key": "with-respect-to", "type": "clause", "offset": [116, 131]}, {"key": "credit-requirements", "type": "definition", "offset": [145, 164]}, {"key": "credit-support", "type": "definition", "offset": [202, 216]}, {"key": "related-to", "type": "clause", "offset": [218, 228]}, {"key": "compliance-with-the", "type": "clause", "offset": [233, 252]}, {"key": "in-connection-with", "type": "clause", "offset": [272, 290]}, {"key": "capacity-value", "type": "definition", "offset": [295, 309]}, {"key": "the-project", "type": "clause", "offset": [344, 355]}, {"key": "capacity-year", "type": "definition", "offset": [364, 377]}, {"key": "to-buyer", "type": "definition", "offset": [395, 403]}, {"key": "contract-capacity-amount", "type": "definition", "offset": [411, 435]}, {"key": "pursuant-to-this-agreement", "type": "clause", "offset": [459, 485]}, {"key": "all-charges", "type": "definition", "offset": [505, 516]}, {"key": "capacity-deficiency", "type": "definition", "offset": [537, 556]}, {"key": "other-amounts", "type": "clause", "offset": [706, 719]}, {"key": "buyer-shall", "type": "clause", "offset": [753, 764]}, {"key": "seller-and-seller", "type": "clause", "offset": [802, 819]}, {"key": "due-date", "type": "clause", "offset": [896, 904]}, {"key": "if-applicable", "type": "clause", "offset": [906, 919]}], "size": 2, "snippet": "Notwithstanding anything to the contrary set forth in this Agreement, Seller shall bear all risk and responsibility with respect to any costs or credit requirements (including the posting of applicable credit support) related to its compliance with the PJM Capacity Rules in connection with the Capacity Value and the Cleared Capacity Value of the Project for any Capacity Year and the transfer to Buyer of the Contract Capacity Amount for such Capacity Year pursuant to this Agreement, including any and all charges or costs, including capacity deficiency charges, assessed by PJM or otherwise against Seller (collectively, the \u201cCapacity Charges\u201d). If PJM bills or credits Buyer for any charges, costs or other amounts related to any Capacity Charges, Buyer shall deliver such invoice or statement to Seller and Seller shall pay such invoice or otherwise settle such amounts by the later of the due date (if applicable) or ten", "hash": "3e73df819283c2ad768b7e523af436e3", "id": 2}, {"samples": [{"hash": "dCt1FBEppl5", "uri": "/contracts/dCt1FBEppl5#capacity-charges", "label": "Transportation Contract", "score": 24.7084188912, "published": true}], "snippet_links": [{"key": "during-the-term", "type": "clause", "offset": [82, 97]}, {"key": "payment-of", "type": "definition", "offset": [128, 138]}, {"key": "monthly-charges", "type": "definition", "offset": [139, 154]}, {"key": "term-of", "type": "clause", "offset": [172, 179]}, {"key": "in-the-event", "type": "clause", "offset": [192, 204]}, {"key": "article-18", "type": "definition", "offset": [262, 272]}, {"key": "the-contract", "type": "definition", "offset": [276, 288]}, {"key": "the-\u2587", "type": "clause", "offset": [328, 333]}, {"key": "generating-station", "type": "clause", "offset": [343, 361]}, {"key": "each-case", "type": "definition", "offset": [422, 431]}, {"key": "calendar-days", "type": "definition", "offset": [468, 481]}, {"key": "the-applicable", "type": "clause", "offset": [511, 525]}, {"key": "equal-to", "type": "definition", "offset": [565, 573]}, {"key": "number-of-days", "type": "definition", "offset": [578, 592]}, {"key": "the-force-majeure", "type": "clause", "offset": [596, 613]}, {"key": "divided-by", "type": "clause", "offset": [614, 624]}, {"key": "days-in", "type": "definition", "offset": [639, 646]}, {"key": "credit-terms", "type": "definition", "offset": [748, 760]}, {"key": "a-\u2587", "type": "clause", "offset": [777, 780]}, {"key": "a-credit", "type": "definition", "offset": [812, 820]}, {"key": "at-the-time", "type": "clause", "offset": [848, 859]}, {"key": "for-avoidance-of-doubt", "type": "clause", "offset": [891, 913]}, {"key": "in-respect-to", "type": "clause", "offset": [961, 974]}, {"key": "extended-term", "type": "definition", "offset": [979, 992]}], "size": 1, "snippet": "Except as provided below, Receiver shalt pay NS the amount of $466,667 each month during the Term (\u201cMonthly Charge\u201d), for a sum payment of Monthly Charges to NS during the Term of $5,600,000. In the event a valid Force Majeure has been declared, as described in Article 18 of the Contract, that prevents Receiver from operating the \u2587.\u2587. \u2587\u2587\u2587\u2587\u2587 Generating Station or prevents Railroads from performing their obligations, in each case for more than seven (7) consecutive calendar days, then the Monthly Charge for the applicable month(s) shall be reduced by an amount equal to the number of days of the Force Majeure divided by the number of days in the applicable month(s) times the Monthly Charge. Receiver shall pay the Monthly Charge under normal credit terms upon receipt of a \u2587\u2587\u2587\u2587, which properly reflects as a credit any accumulated reductions at the time ofinvoicing, therefor from NS. For avoidance of doubt, Monthly Charges shall not be owed by Receiver in respect to any Extended Term.", "hash": "4b728475a25227ed3e940c678c5f898e", "id": 3}, {"samples": [{"hash": "fExwlR360PR", "uri": "/contracts/fExwlR360PR#capacity-charges", "label": "Electric Power Supply Agreement (Jersey Central Power & Light Co)", "score": 18.0, "published": true}], "snippet_links": [{"key": "buyer-will-pay", "type": "clause", "offset": [0, 14]}, {"key": "capacity-charge", "type": "definition", "offset": [41, 56]}, {"key": "exhibit-a", "type": "clause", "offset": [70, 79]}, {"key": "billing-demand", "type": "clause", "offset": [102, 116]}, {"key": "the-annual", "type": "clause", "offset": [118, 128]}, {"key": "of-the-buyer", "type": "clause", "offset": [159, 171]}, {"key": "the-year", "type": "definition", "offset": [200, 208]}, {"key": "time-of-the", "type": "clause", "offset": [239, 250]}, {"key": "control-area", "type": "clause", "offset": [263, 275]}, {"key": "coincident-peak", "type": "definition", "offset": [285, 300]}, {"key": "to-account", "type": "definition", "offset": [333, 343]}, {"key": "reserve-requirements", "type": "definition", "offset": [348, 368]}, {"key": "losses-incurred", "type": "definition", "offset": [429, 444]}, {"key": "transmission-provider", "type": "clause", "offset": [452, 473]}], "size": 1, "snippet": "Buyer will pay Seller one twelfth of the Capacity charge set forth in Exhibit A for each kW of annual billing demand. The annual billing demand is the greater of the Buyer's highest forecast peak for the year or Buyer's actual peak at the time of the FirstEnergy Control Area's annual coincident peak, multiplied by a factor of 1.12 to account for reserve requirements. The annual billing demand shall be adjusted for Real Power Losses incurred on the Transmission Provider's System.", "hash": "73073f25f5643bb8983cf7c1a878724a", "id": 4}, {"samples": [{"hash": "8i0Lb3Rzfoc", "uri": "/contracts/8i0Lb3Rzfoc#capacity-charges", "label": "Power Purchase Agreement", "score": 27.0455403257, "published": true}], "snippet_links": [{"key": "fixed-charges", "type": "clause", "offset": [22, 35]}, {"key": "contracted-capacity", "type": "clause", "offset": [98, 117]}, {"key": "from-time-to-time", "type": "clause", "offset": [118, 135]}], "size": 1, "snippet": "Capacity Charges (or) Fixed Charges as determined by TSERC and shall be paid in proportion to the Contracted Capacity from time to time", "hash": "f3177d686f148426c27d7de90d1bf130", "id": 5}, {"samples": [{"hash": "dLMHdmlI4Kg", "uri": "/contracts/dLMHdmlI4Kg#capacity-charges", "label": "Coal Supply Agreement", "score": 21.0, "published": true}], "snippet_links": [{"key": "if-the-buyer", "type": "clause", "offset": [4, 16]}, {"key": "required-quantity", "type": "definition", "offset": [37, 54]}, {"key": "operating-year", "type": "clause", "offset": [74, 88]}, {"key": "an-event-of-force-majeure", "type": "clause", "offset": [119, 144]}, {"key": "act-or-omission", "type": "clause", "offset": [151, 166]}, {"key": "of-the-seller", "type": "clause", "offset": [167, 180]}, {"key": "the-buyer-shall", "type": "clause", "offset": [182, 197]}, {"key": "seller-capacity", "type": "clause", "offset": [209, 224]}, {"key": "failed-quantity", "type": "definition", "offset": [240, 255]}, {"key": "in-accordance-with", "type": "definition", "offset": [256, 274]}, {"key": "a-percentage", "type": "definition", "offset": [337, 349]}, {"key": "base-price", "type": "clause", "offset": [357, 367]}, {"key": "cumulative-basis", "type": "clause", "offset": [396, 412]}, {"key": "annual-reconciliation", "type": "clause", "offset": [418, 439]}, {"key": "the-cumulative", "type": "clause", "offset": [491, 505]}, {"key": "rolled-over", "type": "definition", "offset": [655, 666]}, {"key": "month-to-month", "type": "definition", "offset": [679, 693]}, {"key": "yearly-basis", "type": "clause", "offset": [718, 730]}, {"key": "computation-of", "type": "clause", "offset": [750, 764]}, {"key": "by-the-seller", "type": "clause", "offset": [892, 905]}, {"key": "for-the-avoidance-of-doubt", "type": "clause", "offset": [936, 962]}, {"key": "deemed-delivery", "type": "definition", "offset": [963, 978]}, {"key": "subject-to", "type": "definition", "offset": [980, 990]}, {"key": "quantity-of", "type": "clause", "offset": [1022, 1033]}, {"key": "total-quantity", "type": "definition", "offset": [1115, 1129]}, {"key": "by-the-buyer", "type": "clause", "offset": [1326, 1338]}, {"key": "events-affecting", "type": "clause", "offset": [1379, 1395]}, {"key": "amounts-payable", "type": "definition", "offset": [1493, 1508]}, {"key": "basis-of", "type": "clause", "offset": [1567, 1575]}, {"key": "the-relevant", "type": "clause", "offset": [1666, 1678]}, {"key": "under-consideration", "type": "definition", "offset": [1720, 1739]}, {"key": "amount-payable", "type": "clause", "offset": [1752, 1766]}, {"key": "during-the-year", "type": "definition", "offset": [1864, 1879]}, {"key": "to-the-buyer", "type": "clause", "offset": [1988, 2000]}, {"key": "expiry-of", "type": "clause", "offset": [2037, 2046]}, {"key": "the-seller-shall", "type": "clause", "offset": [2058, 2074]}, {"key": "charges-payable", "type": "clause", "offset": [2122, 2137]}, {"key": "in-case-of", "type": "clause", "offset": [2355, 2365]}, {"key": "this-clause", "type": "clause", "offset": [2505, 2516]}, {"key": "excess-payment", "type": "definition", "offset": [2522, 2536]}, {"key": "upon-determination-of-the", "type": "clause", "offset": [2587, 2612]}, {"key": "with-interest", "type": "definition", "offset": [2628, 2641]}, {"key": "day-of", "type": "clause", "offset": [2657, 2663]}, {"key": "following-the", "type": "definition", "offset": [2674, 2687]}, {"key": "the-excess", "type": "clause", "offset": [2703, 2713]}, {"key": "credit-rate", "type": "definition", "offset": [2749, 2760]}, {"key": "per-annum", "type": "definition", "offset": [2798, 2807]}], "size": 1, "snippet": "(A) If the Buyer fails to accept the Required Quantity in any Month of an Operating Year for reasons other than due to an event of Force Majeure or an act or omission of the Seller, the Buyer shall pay to the Seller Capacity Charges on the Failed Quantity in accordance with the formulae given below.\n(A-1) The Capacity Charges shall be a percentage of the Base Price and determined on a monthly cumulative basis with annual reconciliation as below :- Cumulative Failed Quantity upto 10% of the Cumulative Required Quantity : Nil Cumulative Failed Quantity more than 10% of the Cumulative Required Quantity : 5% of the Base Price Capacity Charges will be rolled over (truing up) month to month and will be adjusted on yearly basis. (A-2) Formula for computation of Failed Quantity FQ = QO - (TD + RF) Where: FQ = Cumulative Failed Quantity in Standard Tonnes QO = Cumulative Quantity offered by the Seller in Standard Tonnes (including for the avoidance of doubt Deemed Delivery) subject to maximum of Cumulative Required Quantity of Coal as per Clause 4.5 during the Operating Year upto the end of the Month. TD = Total Quantity of Coal, in Standard Tonnes delivered during the Operating Year upto the end of the Month (excluding Deemed Delivery). RF = The quantity of Coal, in Standard Tonnes that would have been purchased by the Buyer but for the occurrence of Force Majeure events affecting the Buyer and/or the Seller during the operating year upto the end of the month. (A-3) The total amounts payable as Capacity Charges by the Buyer shall be assessed on the basis of the cumulative Failed Quantity and the cumulative Required Quantity from the beginning of the relevant Operating Year upto the end of the Month under consideration. The actual amount payable shall be the difference between the total amount so calculated and the total amount already paid during the year upto the end of the previous Month. If the difference is negative, the same shall be refunded by the Seller to the Buyer within five (5) days.\n(B) After the expiry of each Month the Seller shall calculate and notify to the Buyer the Capacity Charges payable by the Buyer to the Seller for the Failed Quantity calculated in accordance with Clause 3.12(A-2) above and the Buyer shall pay to the Seller such amount of Capacity Charges within five (5) days of such notification. In case of any dispute on whether such Capacity Charges were due or payable the Buyer shall nevertheless pay such Capacity Charges in accordance with this Clause. Any excess payment made by the Buyer shall be refunded by the Seller upon determination of the same, together with interest from the first day of the month following the month in which the excess payment has been made, at the Cash Credit Rate prevailing on such date plus [ \u25cf ] % per annum.", "hash": "8773dec0eac392a29bb5b7cfb04f6296", "id": 7}, {"samples": [{"hash": "1n06bp3ZGMH", "uri": "/contracts/1n06bp3ZGMH#capacity-charges", "label": "Project Agreement (Ppp Contract)", "score": 20.3668720055, "published": true}], "snippet_links": [{"key": "charges-payable", "type": "clause", "offset": [10, 25]}, {"key": "actual-output", "type": "definition", "offset": [40, 53]}, {"key": "billing-period", "type": "definition", "offset": [59, 73]}, {"key": "to-pay", "type": "clause", "offset": [110, 116]}, {"key": "costs-incurred", "type": "definition", "offset": [166, 180]}, {"key": "the-project", "type": "clause", "offset": [205, 216]}, {"key": "debt-service", "type": "definition", "offset": [228, 240]}, {"key": "financing-expenses", "type": "definition", "offset": [259, 277]}, {"key": "expenses-and", "type": "clause", "offset": [311, 323]}, {"key": "rate-of-return", "type": "definition", "offset": [334, 348]}, {"key": "payment-of", "type": "definition", "offset": [354, 364]}, {"key": "subject-to-the", "type": "definition", "offset": [391, 405]}, {"key": "availability-standards", "type": "definition", "offset": [443, 465]}], "size": 1, "snippet": "These are charges payable regardless of actual output in a billing period and are calculated to be sufficient to pay all of the concessionaireprivate partner\u2019s fixed costs incurred to finance and maintain the project, including debt service and other ongoing financing expenses, fixed operation and maintenance expenses and a certain rate of return. The payment of capacity charges is often subject to the observance of certain performance or availability standards;", "hash": "4a6f90fc5b0c1b8c71bb8ef1f5943b9b", "id": 8}, {"samples": [{"hash": "28ZcMInx7wY", "uri": "/contracts/28ZcMInx7wY#capacity-charges", "label": "Out of Agency Service Agreement", "score": 31.0627180925, "published": true}], "snippet_links": [{"key": "the-most-current", "type": "definition", "offset": [51, 67]}, {"key": "capacity-fees", "type": "clause", "offset": [92, 105]}, {"key": "for-the-city", "type": "definition", "offset": [106, 118]}, {"key": "at-the-time", "type": "clause", "offset": [119, 130]}, {"key": "city-policies", "type": "definition", "offset": [175, 188]}], "size": 1, "snippet": "Owner shall pay the City capacity charges based on the most current resolution establishing capacity fees for the City at the time such charges are due pursuant to applicable City policies.", "hash": "9a41de492a5b03caf402f039701921d1", "id": 9}, {"samples": [{"hash": "h23pUozYRFT", "uri": "/contracts/h23pUozYRFT#capacity-charges", "label": "Power Purchase Agreement", "score": 26.1704312115, "published": true}], "snippet_links": [{"key": "notwithstanding-anything-to-the-contrary", "type": "clause", "offset": [0, 40]}, {"key": "in-this-agreement", "type": "clause", "offset": [51, 68]}, {"key": "seller-shall", "type": "clause", "offset": [70, 82]}, {"key": "risk-and-responsibility", "type": "clause", "offset": [92, 115]}, {"key": "with-respect-to", "type": "clause", "offset": [116, 131]}, {"key": "credit-requirements", "type": "definition", "offset": [145, 164]}, {"key": "credit-support", "type": "definition", "offset": [202, 216]}, {"key": "related-to", "type": "clause", "offset": [218, 228]}, {"key": "compliance-with-the", "type": "clause", "offset": [233, 252]}, {"key": "in-connection-with", "type": "clause", "offset": [272, 290]}, {"key": "capacity-value", "type": "definition", "offset": [295, 309]}, {"key": "the-project", "type": "clause", "offset": [344, 355]}, {"key": "capacity-year", "type": "definition", "offset": [364, 377]}, {"key": "to-buyer", "type": "definition", "offset": [395, 403]}, {"key": "contract-capacity-amount", "type": "definition", "offset": [411, 435]}, {"key": "pursuant-to-this-agreement", "type": "clause", "offset": [459, 485]}, {"key": "all-charges", "type": "definition", "offset": [505, 516]}, {"key": "capacity-deficiency", "type": "definition", "offset": [537, 556]}, {"key": "other-amounts", "type": "clause", "offset": [706, 719]}, {"key": "buyer-shall", "type": "clause", "offset": [753, 764]}, {"key": "seller-and-seller", "type": "clause", "offset": [802, 819]}, {"key": "due-date", "type": "clause", "offset": [896, 904]}, {"key": "if-applicable", "type": "clause", "offset": [906, 919]}, {"key": "days-after", "type": "definition", "offset": [933, 943]}, {"key": "all-amounts-due", "type": "clause", "offset": [990, 1005]}, {"key": "from-seller", "type": "clause", "offset": [1006, 1017]}, {"key": "article-vi", "type": "definition", "offset": [1094, 1104]}], "size": 1, "snippet": "Notwithstanding anything to the contrary set forth in this Agreement, Seller shall bear all risk and responsibility with respect to any costs or credit requirements (including the posting of applicable credit support) related to its compliance with the PJM Capacity Rules in connection with the Capacity Value and the Cleared Capacity Value of the Project for any Capacity Year and the transfer to Buyer of the Contract Capacity Amount for such Capacity Year pursuant to this Agreement, including any and all charges or costs, including capacity deficiency charges, assessed by PJM or otherwise against Seller (collectively, the \u201cCapacity Charges\u201d). If PJM bills or credits Buyer for any charges, costs or other amounts related to any Capacity Charges, Buyer shall deliver such invoice or statement to Seller and Seller shall pay such invoice or otherwise settle such amounts by the later of the due date (if applicable) or ten (10) days after receipt from Buyer. Invoicing and payment for all amounts due from Seller to Buyer as necessary to implement this provision shall be done pursuant to Article VI.", "hash": "f52fc630d6aec9c233b2f48ba9f77176", "id": 10}], "next_curs": "ClkSU2oVc35sYXdpbnNpZGVyY29udHJhY3RzcjULEhZDbGF1c2VTbmlwcGV0R3JvdXBfdjU2IhljYXBhY2l0eS1jaGFyZ2VzIzAwMDAwMDBhDKIBAmVuGAAgAA==", "clause": {"children": [["initial-capacity-charge", "Initial Capacity Charge"], ["subsequent-capacity-charges", "Subsequent Capacity Charges"]], "title": "Capacity Charges", "size": 15, "parents": [["prices-and-fees", "Prices and Fees"], ["obligations-and-deliveries", "Obligations and Deliveries"], ["energy-forecasts-scheduling-and-balancing", "Energy Forecasts Scheduling and Balancing"], ["interpretation-and-definitions", "INTERPRETATION AND DEFINITIONS"], ["rights-of-third-parties", "Rights of Third Parties"]], "id": "capacity-charges", "related": [["electricity-charges", "Electricity Charges", "Electricity Charges"], ["utility-charges", "Utility Charges", "Utility Charges"], ["contract-charges", "CONTRACT CHARGES", "CONTRACT CHARGES"], ["service-charges", "Service Charges", "Service Charges"], ["direct-charges", "Direct Charges", "Direct Charges"]], "related_snippets": [], "updated": "2025-07-07T16:38:45+00:00", "also_ask": ["What are the most negotiable elements of capacity charge provisions?", "Which drafting terms are essential to avoid ambiguity in capacity charges?", "What are the primary legal risks or pitfalls in structuring capacity charges?", "How do capacity charge mechanisms differ across jurisdictions or industries?", "What factors most influence a court\u2019s decision to enforce or invalidate a capacity charge clause?"], "drafting_tip": "Specify calculation methods and payment terms to ensure clarity; define adjustment mechanisms to address changes in capacity needs.", "explanation": "The Capacity Charges clause defines the fees or payments that a buyer must pay to a supplier for reserving a specified amount of capacity, regardless of actual usage. Typically, this clause applies in utility or energy contracts, where a customer pays to secure the right to use a certain level of service or infrastructure, such as electricity generation or pipeline space, even if they do not use the full amount. Its core function is to ensure the supplier is compensated for maintaining readiness and availability, thereby allocating the financial risk of underutilization to the buyer and supporting the supplier's investment in infrastructure."}, "json": true, "cursor": ""}}