Gate Rate Clause Samples

Gate Rate. The Gate Rate(s) in effect at the end of the thirty-sixth (36th) and forty-eighth (48th) month of the contract term, respectively, shall be subject to adjustments in accordance with the following formula: 2.1.a. Utilities: Forty percent (40%) of the Gate Rate(s) in effect at the end of months thirty-six (36) and forty-eight (48), respectively are subject to adjustment based on utility rate increases. Utility rate adjustment will be calculated using the below formula. ADJUSTMENT = (GATE RATE) x (40%) x (Rate of Change 1,2 ) Note 1: Rate of Change (first adjustment period) is equal to the quotient of the billable utility rate in effect for each utility on the last day of the thirty-sixth (36th) month multiplied by the actual volume of utilities consumed during the third (3rd) year (months 25-36) of the Contract term divided by the billable utility rate for each utility established on the Contract Effective Date (Base Rate) multiplied by the actual volume of utilities consumed during the third (3rd) year (months 25-36) of the Contract term minus one (1).