Common use of Allocation Principles Clause in Contracts

Allocation Principles. 7.1 All items of cost and revenue included in Settlements hereunder shall be related to the provision of or receipt of transmission service or a related (“ancillary”) service by one or more Members on behalf of one or more of the Members. The allocation methods used to share such costs and revenues, as specified in Appendix I, shall be made pursuant to direction by the Transmission Committee. 7.2 The Transmission Committee may at any time during the Term of This Agreement, upon the recommendation of the Agent or any Member, review any item of cost or revenue, in order to determine whether such item is transmission-related, and whether it should be included in Settlements hereunder. Further, whenever the Transmission Committee determines that any change is needed in Appendix I to add or delete any item of cost or revenue, or to change the allocation or accounting basis of any item, the Transmission Committee shall authorize and direct the Agent when and how to effect such change in Appendix I and in monthly Settlements among the Members. 7.3 Allocations of costs shall, to the extent practicable, be based on measurable cost indicators that will effect a sharing of costs among the Members consistent with the use of such service, and will be sufficiently stable, over time, so as not to cause undue or objectionable variability in the costs of the Members. 7.4 Allocations of revenues shall, to the extent practicable, be based on measurable indicators of the cost incurred by each Member in providing the service that gave rise to the revenue

Allocation Principles. 7.1 All items of cost and revenue included in Settlements hereunder shall be related to the provision of or receipt of transmission service or a related (“ancillary”) service by one or more Members on behalf of one or more of the Members. The allocation methods used to share such costs and revenues, as specified in Appendix I, shall be made pursuant to direction by the Transmission Committee. 7.2 The Transmission Committee may at any time during the Term of This Agreement, upon the recommendation of the Agent or any Member, review any item of cost or revenue, in order to determine whether such item is transmission-related, and whether it should be included in Settlements hereunder. Further, whenever the Transmission Committee determines that any change is needed in Appendix I to add or delete any item of cost or revenue, or to change the allocation or accounting basis of any item, the Transmission Committee shall authorize and direct the Agent when and how to effect such change in Appendix I and in monthly Settlements among the Members. 7.3 Allocations of costs shall, to the extent practicable, be based on measurable cost indicators that will effect a sharing of costs among the Members consistent with the use of such service, and will be sufficiently stable, over time, so as not to cause undue or objectionable variability in the costs of the Members. 7.4 Allocations of revenues shall, to the extent practicable, be based on measurable indicators of the cost incurred by each Member in providing the service that gave rise to the revenue.