W&S-75: The REC Contract states that the seller will be in default if “the project fails to meet the delivery year requirement 3 or more times AND the cumulative shortfall amount is greater than the annual quantity.” Does this mean, hypothetically and in an extreme case, that a project with an annual quantity obligation of 5,000 RECs could be short 300 RECs every year of the 15 year contract and still not be in default since the cumulative shortfall quantity of 300*15 = 4,500 RECs is less than the annual obligation of 5,000?

Yes, your understanding is correct.

Revised 8-01-2017 first posted 7-14-2017