Common use of Fuel Use Default Payment Clause in Contracts

Fuel Use Default Payment. If Seller is the defaulting Party, then Seller shall pay Buyer an amount that compensates Buyer for Buyer’s overpayment for Product resulting from the Seller’s failure to meet the High Hazard Fuel Requirement or Fuel Resource Requirements during the applicable Calendar Year(s) (“Fuel Use Default Payment”). The Fuel Use Default Payment is calculated by the number of MWhs of Delivered Energy and Paid Curtailed Product provided by the Seller to Buyer from January 1 of the applicable Calendar Year(s) to the Early Termination Date multiplied by the difference between (a) $199.72/MWh adjusted for XXX Factors and (b) the Contract Price adjusted for XXX Factors. In the event Seller fails to pay the Fuel Use Default Payment when due, Buyer may deduct and offset the Fuel Use Default Payment from the posted Collateral Requirement.]