Common use of Escalators Clause in Contracts

Escalators. 1. Base Escalator a. Weighted annual average cost of bituminous coal used by New Jersey utilities as reported on FERC Form 423 for the 12-month period (September 1 - August 31) ending four (4) months prior to the year to be adjusted (i.e., September 1994 to August 1995 FERC data for January 1, 1996 adjustment) b. Base Value of the Base Escalator is the weighted average cost of bituminous coal used by New Jersey utilities during the period 1/01/92 thru 12/31/92 [_ _ _ _] c. Bituminous coal is bituminous coal having the following quality specifications: [_ _ _ _] 2. Gross Domestic Product - Implicit Price Deflator (GDP-IPD) a. Values to be escalated by GDP-IPD will be increased or decreased as of January 1 of each year commencing January 1, 1996 by the percentage change in the index number of the GDP-IPD for the third calendar quarter of the year immediately preceding such January 1 from the index number of the GDP-IPD for the fourth quarter of 1992. * CONFIDENTIAL MATERIAL HAS BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION. BRACKETS AND UNDERSCORES DENOTE SUCH OMISSIONS. b. Maximum adjustment for GDP-IPD on an annual basis is [_ _ _ _] increase or decrease from prior year.

Escalators. 1. Base Escalator a. Weighted annual average cost of bituminous coal used by New Jersey utilities as reported on FERC Form 423 for the 12-month period (September 1 - August 31) ending four (4) months prior to the year to be adjusted (i.e., September 1994 to August 1995 FERC data for January 1, 1996 adjustment) b. Base Value of the Base Escalator is the weighted average cost of bituminous coal used by New Jersey utilities during the period 1/01/92 thru 12/31/92 [_ _ _ _] c. Bituminous coal is bituminous coal having the following quality specifications: [_ _ _ _]Ash Content between 4.0 and 12.0% inclusive Sulfur Content between 0.5 and 2.7% inclusive Btu Value between 11500 and 14000 inclusive 2. Gross Domestic Product - Implicit Price Deflator (GDP-IPD) a. Values to be escalated by GDP-IPD will be increased or decreased as of January 1 of each year commencing January 1, 1996 by the percentage change in the index number of the GDP-IPD for the third calendar quarter of the year immediately preceding such January 1 from the index number of the GDP-IPD for the fourth quarter of 1992. * CONFIDENTIAL MATERIAL HAS BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION. BRACKETS AND UNDERSCORES DENOTE SUCH OMISSIONS. b. Maximum adjustment for GDP-IPD on an annual basis is [_ _ _ _] increase or decrease from prior year.