BAT Settlement Payment Clause Samples
The BAT Settlement Payment clause defines the obligation for one party to make a specific payment to another as part of settling a dispute or fulfilling a contractual adjustment. Typically, this clause outlines the amount, timing, and method of payment, and may specify the conditions under which the payment is triggered, such as the resolution of a claim or the achievement of a settlement agreement. Its core practical function is to ensure that financial settlements are clearly structured and enforceable, thereby resolving outstanding issues and preventing further disputes over payment terms.
BAT Settlement Payment. (i) Effective as of July 6, 2001 and continuing through the Amended Term, APS will calculate its BAT Settlement Payment amount using the following formula: BAT Settlement Payment = [ (R * AI * Net KWhrs) less (Deductions) less (10% Standard Deduction) ] * 5% Where R = $.0256 / KWhr. Where Net KWhrs = APS’ share of actual net kilowatt hours generated from the Plant during the quarterly period.
(1) Salaries and/or other compensation paid to members of the Navajo Nation; (2) Purchases of Navajo goods and services; and (3) Any payment made to the government of the Navajo Nation, except for the BAT Settlement Payment paid pursuant to this Restated Agreement and any penalties or fines. Where Standard Deduction = an amount equal to the greater of ten percent of (R * AI * Net KWhrs) or $125,000.00. As set forth on Exhibit C, APS will include in its Operating Report provided to the ONTC a statement of actual net generation for each quarter. Where AI = an adjustment calculated in the 3rd Quarter of each year based upon a 5-year rolling average of Producer Price Index data published by the Bureau of Labor Statistics. Annual adjustments shall be cumulative, i.e., the total current year adjustment shall be equal to the incremental current year adjustment multiplied by the previous year’s adjustment. The incremental adjustment shall be calculated utilizing the following methodology: AI = (75% * Cost Index) plus (25% * Revenue Index). Where Cost Index = 42.3% * Bituminous Coal and Lignite: West (BLS Series PCU1211#214) plus 0.9% * Natural Gas(BLS Series PCU1331#A2) plus 7.6% * Other Heavy Construction (BLS Series PCUBHVY#) plus 49.2% * Unit Labor Costs: Non-Farm Business (BLS Series PRS85006112) Where Revenue Index =