Cost Allocation Algorithms Clause Samples

Cost Allocation Algorithms. The following algorithms are the mechanisms that implement the foregoing cost allocation principles and shall be adjusted as directed by the Board of Directors to more accurately reflect those principles. These algorithms shall be used to: (1) allocate estimated costs for purposes of establishing the pro forma power rates; and (2) define actual costs attributable to Project Participants for purposes of the Annual Reconciliation process. A precise list of invoices and algorithms for each category will be detailed in each year’s Annual Reconciliation report. As used in this document and the Appendices, the word “energy” whether capitalized or not, means the electrical energy produced, flowing or supplied by generation, transmission or distribution facilities and procured by the Project Participant, being measured in units of kilowatt-hours or standard multiples thereof.