Do Not Allow Balancing Accounts Sample Clauses

Do Not Allow Balancing Accounts. This rate setting process is based on projecting results during base years. Thus, actual base year results likely will differ from base year projections. In some regulatory environments, these differences are “balanced” in subsequent years by using a balancing account. After 2017, there will be no balancing accounts for purposes of truing up projected and actual results. As part of its 2017 Base Year Rate Application, the County will allow each franchised hauler the option of submitting to the County a separate revenue “true up” request to account for differences between the franchise hauler’s actual calendar year 2014 revenues (prior to signing the current 2015 franchise agreement) and calendar year 2015 and 2016 revenues (occurring after signing the current 2015 franchise agreement). The dollar value of this two-year revenue “true up” shall be calculated as (1) actual unincorporated County calendar year 2015 revenues less actual unincorporated County calendar year 2014 revenues, plus (2) estimated unincorporated County calendar year 2016 revenues (annualized based on year- to-date 2016 revenues available at the time the 2017 Base Year Application is submitted) less actual unincorporated County calendar year 2014 revenues escalated by the allowed 2015 interim year rate adjustment (if applicable). Should this revenue “true up” be less than zero, the County will allow the franchise hauler to recoup this one-time revenue “true up” amount by spreading the amount equally in rates charged over the four (4) years between 2017 and 2020. For example, if the amount equaled $100,000, the County would include $25,000 ($100,000 divided by 4) in unincorporated County rates for 2017, 2018, 2019, and 2020. This revenue true up would be included as a “pass through” expense for rate setting purposes in the 2017 base year rate application. The County would remove this revenue “true up” in the 2021 base year and the franchised hauler would not be allowed any further revenue “true ups” or balancing accounts thereafter.