Fixed On-Going Charge Payment. The Connecting Transmission Owner will invoice and Interconnection Customer shall pay an annual payment to the Connecting Transmission Owner equal to the product of the Gross Plant Investment associated with the Connecting Transmission Owner’s Interconnection Facilities and the Annual Transmission Ongoing Charge Factor, for the term of this Agreement. For purposes of this Agreement, Gross Plant Investment shall mean the investment from the plant account records associated with the Connecting Transmission Owner’s Interconnection Facilities for the Small Generating Facility. All payments due to be made by the Interconnection Customer shall be made within thirty (30) days after receiving an invoice from the Connecting Transmission Owner. Connecting Transmission Owner will bill Interconnection Customer for the O&M Expenses on a quarterly basis. The Project’s Gross Plant Investment associated with the Connecting Transmission Owner’s Interconnection Facilities shall be established in writing by the Connecting Transmission Owner no later than 90 days following commercial operation. The Annual Transmission On-Going Charge Factor shall be calculated annually each July based on the Connecting Transmission Owner’s most recent FERC Form 1 data and will equal the sum of the Revenue Requirement Components as identified in O&M Attachment 1 divided by the Total Gross Plant of the Connecting Transmission Owner. Total Gross Plant shall equal the sum of Item Nos. A (1)(a)(b)(c) in O&M Attachment 1. Option 2: Actual Quarterly O&M Expenses The Interconnection Customer shall pay for all actual O&M Expenses incurred by the Connecting Transmission Owner, which expenses shall be billed by the Connecting Transmission Owner quarterly as accumulated during the quarter for which they were incurred. All payments due to be made by the Interconnection Customer shall be made within thirty (30) days after receiving an invoice from the Connecting Transmission Owner, which invoice shall be issued after the end of each quarter for the most recent quarter. Selection by Interconnection Customer The Interconnection Customer shall select which option for paying such O&M Expenses by providing written notice to the Connecting Transmission Owner within thirty (30) days after the Gross Connecting Transmission Owner’s Interconnection Facilities Plant Investment cost and the most recent Annual Transmission Ongoing Charge Factor have been provided to the Interconnection Customer. If the Interconnection Customer fails to provide timely notice to the Connecting Transmission Owner of the option selected, the Interconnection Customer will be deemed to have selected Option 2: Quarterly Actual O&M Expenses. Capitalized terms used in this calculation will have the following definitions:
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Sources: Service Agreement, Service Agreement