What happens if rented turbines are late or do not produce the power promised?
In the Solaris turbine rental the lessor operates and maintains the turbines to prudent utility practice. Missing the go-live date costs delay liquidated damages, and the main warranty remedy is a rent refund while equipment is down. The customer’s termination right needs a sustained shortfall: output below 70% of capacity for 20 days in any 60, left uncured for 45 days. Liability is capped at the greater of a per-megawatt amount and $100 million.
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What the filed contracts say
Contract
What the filed wording says
Solaris turbine rental
If the turbines miss the go-live date in the rental order, the lessor pays delay liquidated damages, if the order sets any.
Solaris turbine rental
The lessor operates and maintains the turbines to prudent utility practice; the customer pays the operating charge in the rental order.
Solaris turbine rental
A demand failure is output below 70% of capacity for 20 days in any rolling 60 days. If it comes from the lessor’s default and is not cured in 45 days, the customer may terminate.
Solaris turbine rental
Each side’s liability is capped at the greater of a redacted amount per megawatt live and $100 million.
The filed wording
If the Lessor fails to cause the Equipment to achieve Go-Live by the date specified in the relevant Rental Order, then Lessor shall pay to Customer delay liquidated damages as specified in the relevant Rental Order (if any) (“Delay LDs”).
Each extract is quoted from the contract as filed with the SEC, checked against the filed text when it was added; “…” marks words left out. Filers redact commercial terms, so a [***] or [*] is the filer's, not ours. The summaries describe the wording, not how a court would read it, and each contract's defined terms and other clauses can change the effect. General information drawn from public filings. It is not legal advice on any transaction, and using this page does not create a lawyer-client relationship. Views are personal.
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