Base Escalator Clause Samples
The Base Escalator clause establishes a mechanism for adjusting contract prices in response to changes in specified baseline costs, such as labor rates or material prices. Typically, this clause outlines the method for calculating price increases or decreases, often tied to an external index or predetermined formula, and specifies the frequency and limits of such adjustments. Its core practical function is to ensure that the contract remains fair and economically viable for both parties by automatically accounting for fluctuations in key cost drivers, thereby reducing the risk of disputes over price changes during the contract term.
Base Escalator. For purposes of this Agreement, the "Base Escalator" shall be the cost of coal as defined by the annual average cost of "bituminous coal" used by the coal-fired plants identified on Exhibit F, on a tonnage-weighted basis, as reported on FERC Form 423, (in dollars per ton) where "bituminous coal" shall have the definition set forth in Section 7.5 of this Agreement. The value of the Base Escalator established for a calendar year will be applied to all coal delivered during that calendar year; provided, however, that for periods from October 1, 2004, the value of the Base Escalator established for a quarter will be applied to all coal delivered during that quarter. The base value of the Base Escalator is the weighted average cost of bituminous coal used by the coal-fired plants identified on Exhibit F during the twelve month period from September 1, 2000 through August 31, 2001 [_ _ _ _]. Adjustments to prices which are to be made annually or quarterly based on the weighted average cost of bituminous coal used by the coal-fired plants identified on Exhibit F shall be calculated as follows: "The Base Price for coal shall be increased or decreased as of January 1 of each year of the term hereof commencing on January 1, 2003, and shall be increased or decreased as of each January 1, April 1, July 1 and October 1 of each year commencing with October 1, 2004, by the * CONFIDENTIAL MATERIAL HAS BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION. BRACKETS AND UNDERSCORES DENOTE SUCH OMISSIONS. EXECUTION COPY percentage change in the index number of the weighted average cost of bituminous coal used by the coal-fired plants identified on Exhibit F as reported on FERC Form 423 for the twelve (12) month period ending four (4) months prior to the period to be adjusted, compared to such index number for the twelve (12) month period from September 1, 2000 through August 31, 2001 (e.g., the percentage change from the September 1, 2001 to August 31, 2002 weighted annual average cost compared to the weighted annual average cost for the period September 1, 2000 through August 31, 2001 shall be used for January 1, 2003 adjustments; the percentage change from the September 1, 2001 to August 31, 2002 weighted annual average cost compared to the weighted annual average cost for the period June 1, 2003 through May 31, 2004 shall be used for the quarter commencing October 1, 2004). "If plants among those identified on Exhibit F discontinue the reporting of...
Base Escalator. The Base Escalator is defined in Article 5.1B(ii) of the Agreement for Purchase of Electric Power between Atlantic Electric and Keystone attached hereto as Exhibit D; provided that the term "bituminous coal" referred to therein shall have the meaning set forth in Section 7.5 hereof. Pursuant to the provisions of the Agreement for Purchase of Electric Power, the Base Escalator will be established by Atlantic Electric and reported to Keystone in the first quarter of each calendar year. The first Base Escalator adjustment shall occur in 1994. The value of the Base Escalator established for a calendar year will be applied to all coal delivered during that calendar year. * CONFIDENTIAL MATERIAL HAS BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION. BRACKETS AND UNDERSCORES DENOTE SUCH OMISSIONS.
Base Escalator a. Weighted annual average cost of bituminous coal used by New Jersey Utilities as reported on FERC Form 423 for the 12 month period immediately preceding the year to be adjusted
b. Base Value of the Base Escalator is the weighted average cost of bituminous coal used by New Jersey Utilities during the period 1/01/92 thru 12/31/92
c. Bituminous coal is bituminous coal having the following quality specifications: Ash Content between [_ _ _ _] inclusive Sulfur Content between [_ _ _ _] inclusive Btu Value between [_ _ _ _] inclusive
Base Escalator. 34 7.4 Adjustment of Price for Sulfur Content................................................ 35 7.5