Deviation Charges Sample Clauses
The Deviation Charges clause establishes the financial penalties or fees that apply when a party deviates from agreed-upon terms, such as routes, schedules, or procedures, typically in shipping or logistics contracts. In practice, this clause specifies the circumstances under which a deviation is considered chargeable and outlines the method for calculating the associated charges, such as a fixed fee or a percentage of the contract value. Its core function is to deter unauthorized deviations and compensate the non-breaching party for any inconvenience or loss, thereby promoting adherence to the contract and allocating the risk of non-compliance.
Deviation Charges. Buyer shall have no obligation or liability of any kind with respect to any uninstructed deviations from Buyer’s Schedule, except to the extent any such obligations or liabilities arise as a result of any act or omission of Buyer in its role as Scheduling Coordinator. Should Seller fail to operate the Units in a manner to comply with Buyer's Schedule and a deviation occurs between the quantity, time or location of Scheduled Energy and the Energy delivered or between the quantity, time or location of Ancillary Services scheduled and the Ancillary Services delivered (“Seller's Deviation”), Seller shall reimburse Buyer for any and all charges Buyer incurs as a result of Seller's Deviation, including charges imposed on Buyer as the Units’ SC, by the CAISO for Seller's uninstructed deviations as follows: Each month, Seller shall owe Buyer the sum (if positive) or Buyer shall owe Seller the sum (if negative) of (i) any and all charges assessed on Buyer by the CAISO that are incurred due to Seller’s Deviation (i.e., under-generation) plus (ii) any and all charges, penalties or surcharges assessed on Buyer for Seller’s Deviations, including any charges assessed on Buyer for over or under generation (other than payments or charges covered by the preceding clause and charges assessed due to Buyer’s Scheduling Error) and amounts assessed by the CAISO in the event that a Unit fails to meet the standards established by the CAISO for the provision of Ancillary Services (e.g., Section 8.2 of the CAISO Tariff, or such additional or substitute standards as may be applicable from time to time), plus (iii) any and all amounts paid by Buyer to Seller for Products not delivered to Buyer (by Seller or by the CAISO) less (iv) any and all payments made to Buyer by the CAISO for supplying Products in excess of the those delivered pursuant to Scheduled Operations (cumulatively “Deviation Charges”). Seller and Buyer acknowledge and agree that if the availability of the Unit(s) changes after such time as the Buyer has scheduled the Unit’s(s’) operation with the CAISO for any particular period of time, Buyer may be unable to alter Buyer’s Schedule in sufficient time to avoid Deviation Charges, in which event, Seller shall be responsible for such Deviation Charges. Invoicing and payment for all amounts due from one Party to the other Party as necessary to implement this provision shall be done pursuant to Article VI. An example of the calculation of the Deviation Charge is provided in ...
Deviation Charges. Each month, Seller shall owe Buyer the sum (if positive) or Buyer shall owe Seller the sum (if negative) of the Project’s Uninstructed Deviations exclusive of such deviations that arise solely as a result of an omission of Buyer in its role as Scheduling Coordinator (“Deviation Charges”) that are incurred in such month as follows: DCm = ∑ (Buyer’s Schedulei – Delivered Energyi) × RTPi where, DCm is the net amount of Deviation Charges for month “m”; ∑ is the sum from i=1 to n; i = the Settlement Interval in month “m”; n = total number of Settlement Intervals in month “m”; Buyer’s Schedulei = Buyer’s Schedule corresponding to Settlement Interval “i”; Delivered Energyi = Delivered Discharge Energy or Charging Energy corresponding to Settlement Interval “i”; and RTPi = the Real-Time Price corresponding to Settlement Interval “i”, and available from CAISO (through its OASIS or successor system). Seller and Buyer agree that if Seller Notifies Buyer of updated availability of the Project after such time as Buyer has bid or scheduled the Project with the CAISO for any period of time, Buyer will notify the CAISO of the Project’s updated availability, which notification does not eliminate Seller’s responsibility for Deviation Charges for such period of time. Invoicing and payment for all amounts due from one Party to the other Party as necessary to implement this provision shall be done pursuant to Article Eleven. An example of the calculation of Deviation Charges is provided in Appendix XX.