Common use of Expansion or New Project Clause in Contracts

Expansion or New Project. If Seller elects to build an expansion or additional project such that the Facility and the expansion or additional project would be deemed a single QF or the same site under Commission or FERC regulations, Seller may not require Utility to purchase (and Utility will have no obligation to purchase pursuant to this Agreement) the output of any such expansion or additional facility under the terms, conditions, and prices in this Agreement, but Seller may exercise any rights to enter into a new agreement for the sale of such incremental energy from such expansion or additional facility that is a QF under then-applicable laws and regulations. Seller agrees that it will not seek to avoid the obligations in this Section 6.7 through use or establishment of a special purpose entity or other Affiliate. Any such expansion or additional facility may not materially and adversely impact the ability of either Party to fulfill its obligations under this Agreement.

Expansion or New Project. If Seller elects to build an expansion or additional project such that the Facility and the expansion or additional project would be deemed a single QF or the same site under Commission or FERC regulations, Seller may not require Utility to purchase (and Utility will have no obligation to purchase pursuant to this Agreement) the output of any such expansion or additional facility under the terms, conditions, and prices in this Agreement, but Seller may exercise any rights to enter into a new agreement for the sale of such incremental energy from such expansion or additional facility that is a QF under then-applicable laws and regulations. Seller agrees that it will not seek to avoid the obligations in this Section 6.7 through use or establishment of a special purpose entity or other Affiliate. Any such expansion or additional facility may not materially and adversely impact the ability of either Party to fulfill its obligations under this Agreement.. 23