SAVINGS GUARANTEE; ANNUAL RECONCILLIATION; PAYMENTS TO ESCO. Section 3.1. Energy and Cost Savings Guarantee
SAVINGS GUARANTEE; ANNUAL RECONCILLIATION; PAYMENTS TO ESCO. Section 3.1. Energy and Cost Savings Guarantee Overview: This section establishes an annual guarantee to cover all annual payments (principle and interest, lease payment and ESCO fees, including M&V and maintenance fees). Tips: ESCO has formulated and, subject to the adjustments provided for in ARTICLE 15 (Material Changes), has guaranteed the annual level of energy, demand, water and operating cost savings to be achieved as a result of the installation and operation of the Equipment and provision of services provided for in this Contract in accordance with the methods of savings measurement and verification as set forth in Schedule C (Savings Measurement and Verification Plan; Post-Retrofit M&V Plan; Annual M&V Reporting Requirements). The Energy and Cost Savings Guarantee is set forth in annual increments for the term of the Contract as specified in Schedule A (Savings Guarantee) and has been structured by the ESCO to be sufficient to cover any and all annual payments required to be made by the Owner as set forth in Schedule J (Compensation to ESCO for Annual Services) and Schedule I (Financing Agreement and Payment Schedule).
SAVINGS GUARANTEE; ANNUAL RECONCILLIATION; PAYMENTS TO ESCO
