Demonstrated Capacity Sample Clauses
The Demonstrated Capacity clause defines the minimum level of performance or output that a party must prove it can achieve, typically in the context of supplying goods or services. In practice, this clause may require a supplier to provide evidence—such as past production records or test results—that they can consistently meet specified volume or quality standards before entering into or continuing a contract. Its core function is to ensure reliability and reduce the risk of non-performance by verifying that a party is capable of fulfilling its contractual obligations.
Demonstrated Capacity. (a) Each invoice submitted by Seller to Buyer pursuant to Section 4.2 shall include a statement, in a form substantially similar to Exhibit C, of the amount of the Product Monthly Quantity for each type of Product for such Showing Month that Seller was capable of delivering (“Demonstrated Capacity”), including, at Seller’s election in its sole discretion, any one of the following:
(i) The results of a capacity test conducted by the Seller’s SC during the applicable Showing Month. Such test shall consist of at least two (2) continuous hours of load reduction by the applicable PDR or RDRR in the DRAM Resource. The Demonstrated Capacity for System or Local Capacity with respect to such PDR or RDRR will equal the maximum hourly load reduction during such test as calculated using the Capacity Baseline and the Demonstrated Capacity for Flexible Capacity with respect to such PDR will equal the average hourly load reduction during such test as calculated using the Capacity Baseline;
(ii) The average amount of capacity for the applicable PDR or RDRR in the DRAM Resource that the Seller Bid into the applicable CAISO Markets solely during the hours of the Showing Month in compliance with the MOO; or
(iii) The results of a Dispatch of the applicable PDR or RDRR in the DRAM Resource during the Showing Month, provided that the PDR or RDRR provided load reduction during all of the hours referenced in the Dispatch Instruction corresponding to the applicable MOO hours. The Demonstrated Capacity for System and Local Capacity will equal the maximum hourly load reduction during any hour of such Dispatch as calculated using the Capacity Baseline and the Demonstrated Capacity for Flexible Capacity will equal the average hourly load reduction calculated using the Capacity Baseline.
(b) Solely for purposes of establishing the Demonstrated Capacity pursuant to Section 1.6(a), Seller shall use data available through Buyer’s Customer Data Access Systems that has been designated by Buyer as final Revenue Quality Meter Data and such data shall be considered final by the Parties as of the date Seller submits its invoice for the applicable Showing Month to Buyer.
(c) If the DRAM Resource is comprised of more than one PDR or RDRR, then Seller may establish the portion of the Demonstrated Capacity for a specific type of Product associated with each such PDR or RDRR by using any one of the methods described in Sections 1.6(a)(i)-(iii), in which case the Demonstrated Capacity for a specific...