Emergency Capacity Payments Clause Samples
The Emergency Capacity Payments clause establishes the terms under which a service provider or supplier is compensated for providing additional capacity or resources during emergency situations. Typically, this clause outlines the conditions that trigger such payments, such as unexpected surges in demand or system failures, and specifies the calculation method or rates for the extra capacity supplied. Its core practical function is to ensure that there is a clear and fair mechanism for compensating parties who must rapidly increase their output or services in response to emergencies, thereby incentivizing readiness and reliability.
Emergency Capacity Payments. For a single year contract, the capacity payment price is $25/kW. For a two
Emergency Capacity Payments. Consumers Energy will pay Customer a capacity rate of $25/kW (“Capacity Rate”) of Delivered Capacity per Program Period as defined in section 7(b)(ii) above. If there are multiple Emergency Events, the Delivered Capacity is averaged between all Emergency Events. If there are no Emergency Events, Consumers Energy will pay Customer the Capacity Rate multiplied by the Accepted Capacity, unless an audit takes place, in which case the Customer’s Delivered Capacity would be determined by the audit. The Capacity Payment will be made at the end of the Program Period.