Unplanned Repairs Clause Samples

Unplanned Repairs. (a) In the event of any loss or damage to the Facility that impairs the capability of one or more Units to Deliver Energy or Ancillary Services, Owner shall, without additional charge, make necessary Repairs, to the extent that: (i) the total cost (net of proceeds received by Owner from Insurers and other third parties pursuant to applicable insurance, warranties and other contracts in connection with all Repairs and excluding costs covered by clause (ii)) of all Repairs for all Units (“Net Repair Costs”) during the Contract Year does not exceed Owner’s Repair Cost Obligation for the Facility; or (ii) the loss or damage impairing the Unit’s capability to produce Energy or Ancillary Services was caused by Owner’s failure to comply with Good Industry Practice or by any wrongful act or omission by Owner. The reference to “Units” in clause (i) includes all Reliability Must-Run Units located at the Facility, but no other Reliability Must-Run Units. Except as provided above, Owner shall not be obligated to make any Repairs unless CAISO is obligated to pay CAISO’s Repair Share for the Repairs. (b) If the Net Repair Costs incurred by Owner for all Repairs since the beginning of the Contract Year exceed Owner’s Repair Cost Obligation, then Owner shall provide a notice thereof (“Unplanned Repair Notice”) in the form attached as Schedule L-1 to CAISO. Owner shall provide such additional information as CAISO may reasonably require to evaluate such proposed Repairs. (c) CAISO shall submit a written acceptance or objection to Owner’s proposal within 21 days of receipt of an Unplanned Repair Notice. CAISO shall be deemed to have accepted Owner’s proposal in the Unplanned Repair Notice if CAISO does not submit a written objection within 21 days after receipt of the Unplanned Repair Notice, as provided above. Any objection shall be based on one or more of the following grounds: (i) the loss or damage was caused by Owner’s failure to comply with Good Industry Practice; (ii) the loss or damage was caused by a wrongful act or omission by Owner; (iii) the Repairs are not required or are more extensive than required in order to make good the loss or damage concerned or to comply with applicable law; (iv) the Net Repair Costs for the Contract Year will not exceed or has not exceeded the Owner’s Repair Cost Obligation; (v) the estimated cost of Repairs exceeds that which is reasonably necessary to effect such Repairs; (vi) the Repair will not result in benefits to CAISO as compar...