Common use of Failure to Achieve Commercial Operation Clause in Contracts

Failure to Achieve Commercial Operation. If Seller fails to achieve Commercial Operation of the Facility by the Guaranteed Commercial Operation Date, PacifiCorp shall have the right to enter the Facility and do all such things as PacifiCorp may consider necessary or desirable to complete the Facility and cause Commercial Operation to occur. PacifiCorp shall, following the Commercial Operation Date (a) return the Facility to Seller upon execution of an indemnity and release by Seller of all claims arising out of the period of PacifiCorp’s entry on the Facility in a form reasonably acceptable to PacifiCorp or (b) failing the execution of such release or indemnity, operate the Facility for the Term pursuant to Section 11.9.2. PacifiCorp shall likewise return the Facility to Seller upon a showing by Seller that it is immediately ready, willing and able to achieve Commercial Operation of the Facility within a commercially and technically reasonable period of time.

Appears in 5 contracts

Samples: Pro Forma Solar Agreement, Power Purchase Agreement, Pro Forma Draft

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