Allowance for Working Capital Clause Samples

Allowance for Working Capital. An amount equal to one twelfth (1/12) of the sum of: (1) the annual operating, maintenance and administrative expenses described in Paragraph 5(a) hereof, plus (2) the annual power costs described in Paragraph 5(b) hereof will be included in the rate base as an allowance for working capital. This amount will be escalated annually on each anniversary of the In-Service Date by 75% of GDPP.