Factory Electricity Clause Samples

Factory Electricity. It is the intent of the parties that CMC will receive electricity in the factory through a separate metered substation or service delivery point, to be installed by CMC at its sole expense, no later than September 1, 2012. Effective as of the date such meter begins metering CMC separately, CMC shall pay to Colt Defense each month (or for such other period covered by Colt Defense’s invoice that includes the CMC delivery point) the amount set forth in the invoice for such separate delivery point, grossed up by such factor as is agreed to by CMC and Colt Defense so that the grossed up number approximates CMC’s true utilization of factory electricity. For the period from July 1, 2012 until the commencement of separate metering, Colt Defense will ▇▇▇▇ CMC on the same cycle as it is billed for electricity by its electricity provider. CMC shall pay Colt Defense for electricity used by CMC in the factory at an annual rate of $420,000 for the actual number of days from July 1, 2012 until the commencement of separate metering. The charge for electricity provided to CMC in the administration building is included in the fee for Consolidated Services. All the electricity provided by Colt Defense to CMC pursuant to this paragraph is referred to in this Agreement as “Factory Electricity Services.”