CASH BASIS. The cash basis may be used in Seattle’s discretion for new supply facilities and new transmission facilities, or a portion thereof. Under the cash basis, the infrastructure cost for a facility in any year shall be the actual cash expenditure made by Seattle in that year for either the payment of construction costs or actual principal and interest costs on debt issued to finance its construction. In the event that the depreciation lifetime of the facility is less than the term of the debt issued to finance all or a portion of the facility, debt maturities will be selected such that the construction cost of the facility will be fully amortized at the end of its depreciation lifetime.
Appears in 2 contracts
Sources: Partial Requirements Contract for the Supply of Water, Full Requirements Contract for the Supply of Water