Forgone TC Energy Payment Clause Samples
The Forgone TC Energy Payment clause defines the circumstances under which payments that would otherwise be owed to TC Energy are waived or not required. In practice, this clause typically applies when certain conditions—such as project delays, force majeure events, or regulatory changes—prevent TC Energy from fulfilling its obligations or entitle the counterparty to withhold payment. By specifying when payments can be forgone, the clause allocates financial risk between the parties and provides clarity on payment obligations in exceptional situations.
Forgone TC Energy Payment. (a) For each Settlement Period during the Support Period, the amount of Forgone TC Energy, if any, for which the AESO shall pay the Generator in respect of such Settlement Period (the "Monthly Forgone TC Energy") shall be equal to:
(i) if such Settlement Period is for the calendar month of January, an amount equal to the greater of: (A) the difference between the Annual Forgone TC Energy (to the end of January) and the Annual Forgone TC Energy Threshold; and (B) 0 MWh; and
(ii) if such Settlement Period is for a calendar month other than January:
(A) if the Annual Forgone TC Energym is greater than the Annual Forgone TC Energy Threshold, and the Annual Forgone TC Energym-1 is less than the Annual Forgone TC Energy Threshold, an amount equal to the: Annual Forgone TC Energym - Annual Forgone TC Energy Threshold; or
(B) if the Annual Forgone TC Energym-1 is greater than or equal to the Annual Forgone TC Energy Threshold, an amount equal to the: Annual Forgone TC Energym - the Annual Forgone TC Energym-1; or
(C) 0 MWh.
(b) For each Settlement Period during the Support Period, the AESO shall pay the Generator an amount equal to the Monthly Forgone TC Energy multiplied by the Strike Price (the "Monthly Forgone TC Energy Payment").