Common use of Fixed Escalation Component Clause in Contracts

Fixed Escalation Component. The Fixed Escalation Component of the ERCR shall be determined as follows: For the calendar year in which the COD occurs (“YCOD”) and for the next thirteen (13) calendar years thereafter, the Fixed Escalation Component Price of the ERCR shall be seventy-five percent (75%) of the 2009 Contract Rate, escalated at two and three tenths percent (2.3%) per year for each calendar year after 2009. Mathematically, the Fixed Escalation Component of the ERCR for any calendar year, 20XX, is represented by:

Fixed Escalation Component. The Fixed Escalation Component of the ERCR shall be determined as follows: For the calendar year in which the COD occurs (“YCOD”) and for the next thirteen (13) calendar years thereafter, the Fixed Escalation Component Price of the ERCR shall be seventy-five percent (75%) of the 2009 Contract Rate, escalated at two and three tenths percent (2.3%) per year for each calendar year after 2009. Mathematically, the Fixed Escalation Component of the ERCR for any calendar year, 20XX, is represented by:: Fixed Escalation Component of the ERCR = 75% * $55.14 * (1.023 [20XX – 2009])