Determination of Monthly Tolerance Cap and Tolerance. (a) For each Contract Year subsequent to the first Contract Year, ARTC will determine the Monthly Tolerance Cap for each Pricing Zone for each Month of that Contract Year in accordance with the following steps:
(i) subject to clause 3.3(a)(ii), having regard to the TMTC as an objective:
(A) ARTC will reduce the Monthly Tolerance Cap for each Pricing Zone below the TMTC for that Contract Year for each Maintenance Month to take into account the reduction in Capacity for Maintenance Losses and any known Availability Exceptions in that Month which will impact on Capacity in the Pricing Zone, and in doing so, will take into account the number of days in a Month; and
(B) ARTC will increase the Monthly Tolerance Cap for each Pricing Zone above the TMTC to make up for the reduction for Maintenance Losses and any known Availability Exceptions in the Maintenance Month, and in doing so, will take into account the number of days in a Month;
(ii) if the delivery of the TMTC is identified in the Hunter Valley corridor capacity strategy as conditional upon the commissioning of Additional Capacity and the completion date for the project creating the Additional Capacity is after the commencement of the Contract Year, ARTC will, for those Months prior to the completion date of that project, have regard to a target monthly tolerance cap which ARTC reasonably considers reflects the Capacity available for tolerance prior to the completion of that project (rather than TMTC) when carrying out the steps in clause 3.3(a)(i)(A) and 3.3(a)(i)(B).
(b) If the project to deliver Additional Capacity is delayed beyond the expected completion date, or the project delivers less Capacity that anticipated, then ARTC will, prior to the commencement of the Month when the Additional Capacity was due to be commissioned, advise the Access Holder by notice of any reduction in the Monthly Tolerance Cap in those subsequent Months.
(c) The Access Holder’s Tolerance in each Pricing Zone for each Period will be determined in accordance with the following:
(i) If the Access Holder has an Allocation Period of a Month, the Access Holder’s Tolerance in each Pricing Zone for each Month will be the higher of:
(A) 10% x ∑ (AVPUTP1….AVPUTPN); or
(B) 13 Path Usages; where: ∑ (AVPUTP1….AVPUTPN) = the sum of the Average Path Usages for each Train Path in that Pricing Zone in the Month as set out in the Train Path Schedules. If a Train Path spans more than one Pricing Zone, then the Average Path Usages for that Tr...
