Power Purchase Agreement - Free Download | Page 4
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plus or minus [variance allowance, based on manufacturer specifications] percent,
beginning on the Commercial Operations Date.
2.2 As Available Energy Take. Upon and after the Commercial Operations Date,
Utility shall accept energy as available up to a maximum total energy equivalent of
[Project or contracted maximum] kW per hour plus or minus five percent, provided that
Utility may accept energy above this level at its sole discretion.
2.3 Sale to Developer. Subject to, and in accordance with, the terms of this
Agreement, Utility shall make available and sell to the Developer, and the Developer
may purchase from Utility, capacity and energy, on the same basis as Utility's then
prevailing tariff for electricity sold to industrial customers.
2.4 Energy Price. The amount of the payments due from Utility to Developer for
Net Energy Output from the Project shall be calculated in accordance with Schedule 2
(Calculation of Payments) using the Energy Price defined in that schedule. The
payments shall be made at the times specified in Paragraph 4.2 (Billing and Payment).
3. TERM
3.1 Initial Term. The initial term of this Agreement shall commence on the
date of this Agreement and shall end [length of agreement term] from the Commercial
Operations Date, unless this Agreement is terminated earlier pursuant to the provisions
of this Agreement allowing for termination in the event of a breach or default by either
of the Parties ("Early Termination"). Any Early Termination of this Agreement shall be
without prejudice to all rights and obligations of the parties accrued under this
Agreement prior to such termination.
3.2 Renewal Term.
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This Agreement may be extended by either Party for a
single additional period of [agreed renewal term] years, on the terms defined by this
Agreement, provided that:
(a) The Party seeking an extension has made a prior written request to extend the
agreement to the other Party, such request to be made not more than 36 months and not
less than 24 months before the end of the initial term of this Agreement;
(b) The Party receiving a request to extend the agreement has not rejected the
request in a written response to the Party seeking an extension, given not more than 3
months following receipt of the request for extension; and
(c) There is not an event of default of either Party, as defined in Paragraphs 10.2
(Developer Defaults) and 10.3 (Utility Defaults), on the date the extension begins.
4. CURRENCY, PAYMENTS AND BILLING
4.1 Currency. All payments required pursuant to any provision of this
Agreement (including provisions applicable in the event of any breach, default, or other
failure of performance) shall be calculated and paid in [agreed currency].
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4.2 Billing and Payment.
4.2.1 Monthly Invoices. Within 25 days after the end of each month,
each Party shall prepare and deliver to the other Party an invoice reflecting amounts
payable by the other Party pursuant to this Agreement. Developer's invoice to Utility
shall include calculations, in reasonable detail, of the amounts due pursuant to Schedule
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