Common use of Minimum Guaranteed Output Clause in Contracts

Minimum Guaranteed Output. If the System fails to generate at least ninety percent (90%) of the Estimated Annual Production set forth in Schedule 4 of the Special Conditions with respect to the System for a full Contract Year (such amount, the “Minimum Guaranteed Output”), other than as a result of the acts or omissions of Purchaser (including, without limitation, pursuant to Section 4.3) or the Local Electric Utility, or an Event of Force Majeure, Provider shall credit Purchaser an amount equal to Purchaser’s “Lost Savings” on the next invoice or invoices, (as defined herein) during the following Contract Year. The formula for calculating Lost Savings for the applicable Contract Year is as follows: WPR = Weather Performance Ratio, measured as the ratio of the actual insolation over typical (pro-forma) insolation. Such Weather Performance Ratio shall only apply if the ratio is less than 1.00. If the rate variance (“RV”) is zero or less, then no Lost Savings payment is due to Purchaser. Such payment shall occur no later than sixty (60) days after the end of the Contract Year during which such Lost Savings occurred.