Common use of Avoided Costs Clause in Contracts

Avoided Costs. The Parties further agree that, in consideration for the foregoing, PG&E will further reduce the amounts to be paid by Modesto ID and Merced ID pursuant to Paragraph II.E above in accordance with PG&E’s Schedule E-Credit. PG&E shall compensate Modesto ID and Merced ID based on the estimated number of NMDL Customers as of February 1, 2009, as set forth in Appendix A hereto. These amounts shall be credited on a timeframe that is consistent with the Districts’ decisions regarding payments pursuant to Paragraph II.G (i.e., either lump sum or monthly).