Cost Cap Sample Clauses
A Cost Cap clause sets a maximum limit on the amount one party is required to pay under a contract. In practice, this means that regardless of the actual expenses incurred, the paying party will not be obligated to reimburse or pay more than the agreed-upon cap. For example, in a service agreement, the client may agree to cover costs up to a certain dollar amount, with any excess being the responsibility of the service provider. The core function of this clause is to provide financial certainty and protect parties from unexpected or unlimited expenses.
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Cost Cap. SWEPCO commits to a total cost cap of 100% of filed capital costs, including AFUDC and contingency, as set forth in Attachment 1 for the Base Case and each other scenario. The Cost Cap will be reduced by the amount of any purchase price reduction realized by the Company under the terms and conditions of the Purchase and Sale Agreements (PSAs), plus a proportionate share of contingency, including any amount that reflects a reduction in the amount of MW acquired by SWEPCO if the Company does not receive certain regulatory approvals. Costs above the cap are not recoverable. There shall be no exceptions to the cap for force majeure or changes in applicable law.
Cost Cap. The Iowa jurisdictional portion of MidAmerican’s prudently incurred capital costs, operation and maintenance expenses and other actual costs of the Expansion Project shall be included in MidAmerican’s regulated electric rates. MidAmerican shall be permitted to include in rates the actual costs of the Expansion Project, up to the Iowa jurisdictional portion of $1.3 million per MW installed (inclusive of associated costs necessary for the reliable integration of the Expansion Project into the MidAmerican delivery system), without the need to establish prudence or reasonableness. MidAmerican anticipates installing up to 90 MW of additional wind capacity. MidAmerican shall be required to establish the prudence and reasonableness of any Expansion Project costs in excess of the foregoing calculated per MW amount before the Iowa jurisdictional portion of such excess can be included in rates.