Net Unit Electrical Output Guarantee Clause Samples
The Net Unit Electrical Output Guarantee clause establishes a minimum level of electrical output that a power generation unit must achieve over a specified period. In practice, this clause sets a benchmark for the net amount of electricity delivered to the grid, accounting for the unit's own consumption and losses, and may include provisions for testing and verification of output levels. Its core function is to ensure that the unit consistently meets performance expectations, thereby protecting the interests of the purchaser or offtaker by guaranteeing reliable energy delivery.
Net Unit Electrical Output Guarantee. Subject to the limits of liability set forth in Section 13.2, and subject to the provisions of this Agreement and in accordance with the Operating Procedures and Maintenance Procedures and Facility Manuals, Contractor guarantees “[**]” in this Exhibit 10.02 indicates material that has been omitted pursuant to a request for confidential treatment and filed separately with the Securities and Exchange Commission. that the Net Unit Electrical Guarantee for a Unit, when loaded with the Nuclear Fuel, shall be [**] (the "Net Unit Electrical Output Guarantee") determined using the conditions and calculation as set forth in Exhibit L [**] pursuant to Exhibit L, as evidenced by the Net Unit Electrical Output Test. [**].
(a) In the event a Unit does not meet the Net Unit Electrical Output Guarantee as of the Guaranteed Substantial Completion Date[**]. [**].
(b) The Net Unit Electrical Output Guarantee is subject to the conditions stated in Section 14.4(c) and to the following:
(i) Owner has provided access to the electrical grid and sufficient electrical load to perform the test; and “[**]” in this Exhibit 10.02 indicates material that has been omitted pursuant to a request for confidential treatment and filed separately with the Securities and Exchange Commission.
(ii) The Net Unit Electrical Output Guarantee is based upon the conditions specified in Exhibit L. If conditions during the test differ from those specified, adjustments shall be made accordingly to the Net Unit Electrical Output using graphs, tables and other data as prepared by Contractor, after consultation with Owner, to establish the Net Unit Electrical Output to compare to the Net Electric Output Guarantee.
(c) Necessary auxiliary equipment for producing the Net Unit Electrical Output shall include only the Equipment loads provided in Exhibit L.
(d) The Net Unit Electrical Output Guarantee shall be demonstrated by the Net Unit Electrical Output Test to be conducted at the times and subject to the conditions set forth herein. Satisfactory completion of such test or re-test, or the payment of [**] to Owner shall relieve Contractor of any further obligation with respect to the Net Unit Electrical Output Guarantee.
Net Unit Electrical Output Guarantee. Subject to the limits of liability set forth in Section 13.3 and subject to the provisions of this Agreement and in accordance with the Operating Procedures and Maintenance Procedures and Facility Manuals, Contractor guarantees that a Unit, when loaded with the Nuclear Fuel, shall produce a Net Unit Electrical Output of [***] MWe as evidenced by the Net Unit Electrical Output Test (the “Net Unit Electrical Output Guarantee”).
(i) In the event a Unit does not meet the Net Unit Electrical Output Guarantee as of the Guaranteed Substantial Completion Date due to Contractor’s or its Personnel’s acts or omissions, Contractor shall, at its sole option, (A) perform, at its own expense, such repair, replacement or adjustment or modification to enable such Unit to produce the guarantee or (B) subject to the provisions below in this Section 11.6(a)(i) [***] pay the applicable Net Unit Electrical Output Liquidated Damages. The decision to repair, replace, adjust or modify shall be made by Contractor, after consultation with Owners. Contractor’s repair, replacement, adjustment or modifications to a Unit shall not interfere with Owners’ commercial operation of such Unit. The time period during which Contractor shall have this right to repair, replace, adjust or modify the Unit to improve performance shall terminate at the end of the Correction Period. At any time during the Correction Period, but subject to Contractor’s obligations under Section 11.6(b), Contractor shall have the right to terminate its efforts to improve the performance of the Unit and pay the applicable Net Unit Electrical Output Liquidated Damages. If Contractor has previously paid Net Unit Electrical Output Liquidated Damages and, as a result of Contractor’s efforts, as of the end of the Correction Period (or such earlier time as the Net Unit Electrical Output Guarantee has been met or Contractor has determined that further repairs, replacements, adjustments or modifications to improve performance are not practicable), the Unit is able to meet the Net Unit Electrical Output Guarantee or Contractor has been able to increase the Net Unit Electrical Output from the level at which the Net Unit Electrical Output Liquidated Damages were previously paid, in each case as demonstrated by a Net Unit Electrical Output Test, Contractor shall be entitled to a refund of all or the applicable portion of the Net Unit Electrical Output Liquidated Damages paid by Contractor, calculated as provided in Section 13.3. Amo...
Net Unit Electrical Output Guarantee. Subject to the limits of liability set forth in Section 13.3 and subject to the provisions of this Agreement and in accordance with the Operating Procedures and Maintenance Procedures and Facility Manuals, Contractor guarantees that a Unit, when loaded with the Nuclear Fuel, shall produce a Net Unit Electrical Output of [***] MWe as evidenced by the Net Unit Electrical Output Test (the “Net Unit Electrical Output Guarantee”).
(i) In the event a Unit does not meet the Net Unit Electrical Output Guarantee as of the Guaranteed Substantial Completion Date due to Contractor’s
Net Unit Electrical Output Guarantee. Subject to the limits of liability on liquidated damages set forth in Section 11.5(d)(ii)(B) and subject to the provisions in Section 11.5(d)(ii)(C) and Section 11.5(d)(iv), Contractor guarantees that each Unit, when loaded with the Nuclear Fuel and operated in accordance with Operating Procedures and Maintenance Procedures and Facility Manuals, shall produce the Net Unit Electrical Output of [***] MWe as evidenced by the Net Unit Electrical Output Test (the “Net Unit Electrical Output Guarantee”).
(A) In the event a Unit [***] does not meet the Net Unit Electrical Output Guarantee, Contractor shall engage in an engineering review and analysis of the performance deficiency, in consultation with Owner, to determine possible options to correct the deficiency or improve the output.
(1) If such identified performance correction or improvement would cost less than the applicable Performance Liquidated Damages otherwise payable hereunder, Contractor shall perform the correction or improvement, at its own expense, on a schedule as mutually agreed to by the Parties.
(2) If such identified performance correction or improvement would cost more than the applicable Performance Liquidated Damages otherwise payable hereunder, then Contractor shall be liable to Owner for the Performance Liquidated Damages specified in Section 11.5(d)(ii)(B), or Owner may elect to direct Contractor to make such performance corrections or improvements, provided that Owner waives the collection of the applicable Performance Liquidated Damages and Owner pays Contractor, on terms consistent with Article 8, the cost of the performance correction and improvement work which exceeds the waived Performance Liquidated Damages amount. However, any such payments for performance correction and improvement work that exceeds the cost of the waived Performance Liquidated Damages shall only include payment for Direct Costs plus SGA/G&A and other ▇▇▇▇-ups applied to such Direct Costs pursuant to Exhibit G (without any Profit).
(3) If the performance corrections or improvements are not performed or if following such work the Unit fails to achieve the Net Unit Electrical Output Guarantee when re-testing is performed, then the Contractor shall be liable to the Owner for the Performance Liquidated Damages specified in Section 11.5(d)(ii)(B) to the extent the applicable Performance Liquidated Damages have not been waived under Section 11.5(d)(ii)(A)(2) above. If Contractor pays Performance Liquidated Damages wi...