Common use of Fuel Imbalances Clause in Contracts

Fuel Imbalances. Seller and Department shall each be responsible for any fuel imbalances that each causes; provided, however, that if Seller is providing Fuel pursuant to this Section 2.05, Seller shall arrange and deliver Fuel to accommodate Department’s rights to dispatch at a minimum of two (2) hours per dispatch and at least two (2) dispatches per Day, as scheduled on a day-ahead basis to be achieved without the incurrence of any penalties. Any natural gas imbalance penalties that are invoiced to Department require documentation of penalty assessment by a non-related third party, attributable to Department's dispatch of Energy from the Facility on the Day(s) applicable to the imbalance determination, and conditioned upon the Fuel Manager's reasonable efforts to minimize such imbalance charges. In addition, regardless of whether Seller or Department are providing Fuel for Department’s Energy, the Fuel Manager: (i) shall provide Department the benefits of monthly pool balancing as the result of being a participant in a larger gas pool managed by the Fuel Manager, in order to avoid any imbalance penalties except such penalties as may arise in connection with emergency flow order and operational flow order situations; and (ii) for the Fuel relevant to Department’s Energy shall provide, upon Department’s request and to the extent such information is available, timely access to daily meter gas volumes and real time notifications of utility and/or account information that may affect the nomination and scheduling of Department’s Fuel supplies. Department shall have the right to direct the Fuel Manager to use Department’s gas buying pool (including storage) to minimize imbalance charges to Department. It is the Parties’ intent that services provided by the Fuel Manager shall include balancing provisions within each month that offer no less benefit than the then-effective applicable local natural gas distribution utility tariff would provide for the same period.

Fuel Imbalances. Seller HDPP and Department CDWR shall each be responsible for any fuel Fuel imbalances that each causes, and each Party shall be obligated to take commercially reasonable measures to minimize the incurrence of imbalances and any associated penalties; provided, however, that if Seller HDPP is providing Fuel pursuant to a HDPP Fuel Plan in accordance with this Section 2.05Special Condition 12, Seller HDPP shall arrange and deliver Fuel to accommodate DepartmentCDWR’s rights to dispatch at a minimum of two (2) hours per dispatch as specified in Special Condition 16, subject to such imbalance management or intra-day Fuel procurement costs as shall be specified in the HDPP Fuel Plan, and at least two (2) dispatches per Day, as scheduled on a day-ahead basis shall take all commercially reasonable measures to be achieved without minimize the incurrence of any penalties associated with intra-day changes in Fuel nominations required by CDWR's changes in dispatch instructions. In the event that on any Gas Day CDWR is providing Fuel to the Project and a Project forced outage occurs that is attributable to a cause other than CDWR's failure to deliver Fuel to the Project on such Gas Day, CDWR shall dispose of the quantity of Fuel not required by the Project for the remainder of such Gas Day by reason of the Project forced outage, taking commercially reasonable steps to maximize the value received for such Fuel and to minimize any imbalance costs, charges or cash-out penalties resulting from the Project forced outage, and HDPP shall pay for quantities of Fuel not required as a consequence of the Project forced outage an amount equal to the product of (A) the positive difference, if any, between (x) the HDPP Spot Market Price applicable to such Gas Day and (y) the commercially reasonable price at which CDWR actually disposes of the quantity of Fuel not required by reason of the Project forced outage, and (B) the quantity of Fuel not required by reason of the Project forced outage. Payment of such price and any intra-day imbalance penalties, charges or cash-out costs associated with any intra-day imbalance resulting from the Project forced outage shall be the only obligation on the part of HDPP or its designee to compensate CDWR for Fuel- related obligations relating to any such Project forced outage. HDPP's obligation to compensate CDWR for Fuel not required by reason of an intra-day Project forced outage and any associated imbalance penalties, charges or cash-out costs shall not extend beyond the Gas Day on which the Project forced outage shall have commenced and if the Parties are operating under the CDWR Fuel Plan then for subsequent days of a forced outage any costs associated with the disposal of Fuel, imbalance penalties and cash-out costs shall be the responsibility of CDWR. Any natural gas imbalance penalties attributable to CDWR's dispatch of energy from the Project on the day(s) covered by the imbalance determination that are invoiced to Department require documentation of penalty assessment CDWR or HDPP shall be documented by a non-related third party. Neither HDPP, attributable its designee nor their affiliates shall be or become liable in managing imbalances under this Special Condition 12 for CDWR's costs of covering any Fuel-related xxxxxx or for the contract price of Fuel to Department's dispatch of Energy from the Facility on the Day(s) applicable to the imbalance determination, and conditioned upon the Fuel Manager's reasonable efforts to minimize such imbalance chargeswhich CDWR may have committed. In addition, regardless of whether Seller HDPP or Department are CDWR is providing Fuel for Department’s Energy, to the Fuel Manager: (i) shall provide Department the benefits Project to support generation of monthly pool balancing as the result of being a participant in a larger gas pool managed by the Fuel Manager, in order energy to avoid any imbalance penalties except such penalties as may arise in connection with emergency flow order and operational flow order situations; and (ii) be delivered to or for the Fuel relevant to Department’s Energy account of CDWR, HDPP or its designee shall provide, upon DepartmentCDWR’s request and to the extent such information is available, timely access to daily meter gas volumes and real time notifications of utility pipeline and/or account information that may affect the nomination and scheduling of Department’s Fuel supplies. Department shall have or the right to direct dispatch of the Fuel Manager to use Department’s gas buying pool (including storage) to minimize imbalance charges to DepartmentProject. It is the Parties’ intent that the services provided by the Fuel Manager fuel manager to CDWR shall include balancing provisions within each month that offer no less benefit than the then-Kern River Gas Transmission Company's then effective applicable local natural gas distribution utility tariff FERC Gas Tariff would provide for the same period.