Common use of Asset Management Program Clause in Contracts

Asset Management Program. Effective asset management responds to the Parties’ goal of long-term fiscal health and sustainable service levels for the Supply Facilities. To assist in the maintenance of the Supply Facilities’ performance at a reasonable cost and an acceptable level of risk, the Managing Agency and Management Committee will create and maintain a mutually acceptable inventory all of the capitalizable assets associated with the Supply Facilities, including physical facilities and real estate holdings. The inventory will include a schedule for repairs and replacement and be part of the Operations Plan. The Managing Agency and Management Committee may propose policies to the Partnership Committee that improve, guide, schedule and fund the repair and replacement of the assets and suggest amendments to the Supply Facilities Capital Improvement Program or funding reserves. The program and policies shall be based on prudent utility practices and industry standards. As deemed necessary by the Managing Agency or upon request by ▇▇▇▇▇▇, the inventory will be reviewed by the Managing Agency and Management Committee for modifications.