Capacity Payment. On the basis of the Rated Capacity, commencing on the Commercial Operation Date and for the remainder of the Term, Department shall pay Seller a payment for the Contract Capacity (the "Capacity Payment"), on a monthly basis in arrears, regardless of whether Department requests that Seller deliver Energy from the Facility. The annual Capacity Payment shall be an amount equal to $120,000/MW-yr, the monthly payments shall be as set forth in Appendix C. To the extent that the Commercial Operation Date occurs on a Day other than the first Day of a calendar month, and to the extent that the Term ends on a Day other than the last Day of a calendar month, Department shall pay the Capacity Payment on a pro-rata basis for that month. Each monthly Capacity Payment shall be reduced by $12,500 (as adjusted upward pursuant to the next succeeding sentence (the "Capacity Payment Reduction Amount"). To the extent that the application of a Capacity Payment Reduction Amount would result in a negative Capacity Payment in any month, the Capacity Payment Reduction Amounts in the next succeeding month(s) shall be increased by such negative Capacity Payment amount.
Appears in 5 contracts
Samples: Power Purchase Agreement, Power Purchase Agreement, Power Purchase Agreement
