Monthly Capacity Payment When a DR Event Occurs Sample Clauses

Monthly Capacity Payment When a DR Event Occurs. If Buyer provides Seller with a Notice of a DR Event during a Delivery Month, Seller shall be paid an Hourly Capacity Price for the Performance. The “Hourly Capacity Price” means and is the Monthly Capacity Price divided by the number of hours of all DR Events in the Delivery Month. The “Monthly Capacity Payment” means and is the sum of the Hourly Capacity Payments for each hour of the DR Event for such month. The Hourly Capacity Payment means and is calculated based on the ratio of Seller’s Performance to its Commitment Level per hour (“Hourly Capacity Ratio”) pursuant to Table 4.2.1 below and as further illustrated in Appendix XII (“Example Calculation of Monthly Capacity Payment”). The Hourly Capacity Ratio cannot be greater than the Commitment Level or less than zero (0). Table 4.2.1 Hourly Capacity Ratio Hourly Capacity Payment Calculation 1.00 Hourly Capacity Price (= Monthly Capacity Price / # hours of DR Event for the month payment is being calculated) > 0.90 and < 1.00 [Hourly Capacity Price] x [Hourly Capacity Ratio] > 0.75 and <0.90 [Hourly Capacity Price] x [0.50] > 0.50 and < 0.75 Zero (0) > 0 and < 0.50 [Hourly Capacity Price] x [(Hourly Capacity Ratio – 0.50)]. Reduction Payment shall be paid by Seller to Buyer.