Forecasting Penalty Clause Samples

Forecasting Penalty. If the MAEm for a particular month “m” is greater than 15% or if the average Forecast error for all hours of the month is greater than three MW, then an “MAE Failure” will be deemed to have occurred. An MAE Failure will be waived if Seller demonstrates to Buyer’s reasonable satisfaction that the MAE Failure was the result of unexpected changes in either electrical or steam demand associated with the Site Host Load. If such MAE Failure has been waived, then that month does not count as a month in which there was an MAE Failure. For each month in which an MAE Failure has occurred, Seller shall pay a fee equal to the amount set forth in the following table. Less than 10,000 $2,500 10,000 – 100,000 $5,000 Greater than 100,000 $7,500 During each month an MAE Failure occurs, subject to the limitations of the following paragraph, Seller will continue to receive ▇▇▇ Period Capacity Payments for the Firm Contract Capacity based on the Firm Capacity Price and capacity payment calculations for firm capacity as set forth in Section 3 of Exhibit D. If, however, an MAE Failure occurs three times in any rolling 12-month period, then starting on the first day of the calendar month immediately following the third such occurrence (such month, the “First Penalty Month”): The quantity of Firm Contract Capacity specified in Section 1.02(d) will be deemed to be zero (“Penalized Firm Contract Capacity”); and The quantity of As-Available Contract Capacity specified in Section 1.02(d) will be deemed increased by the quantity of Firm Contract Capacity as such quantity existed before the First Penalty Month (“Penalized As-Available Contract Capacity”). The Penalized Firm Contract Capacity and Penalized As-Available Contract Capacity quantities shall continue to be in effect during every subsequent calendar month until there are two consecutive calendar months without an MAE Failure (including a month in which an MAE Failure has been waived). Upon such event, starting on the first day of the calendar month immediately following the second consecutive month during which Buyer does not have an MAE Failure, the Penalized Firm Contract Capacity and Penalized As-Available Contract Capacity quantities shall revert to the Firm Contract Capacity and As-Available Contract Capacity quantities existing before the First Penalty Month. Buyer shall pay all CAISO Charges and receive all CAISO Revenues; provided, however, if at any time after the Term Start Date: 1. The CAISO implements or has imple...