Common use of IRU Fee Clause in Contracts

IRU Fee. Operator agrees to pay to Tacoma Power an annual fee (“IRU Fee”) in accordance with the following amounts: First Year of the Term: $2,500,000 Second Year of the Term: $2,625,000 Third Year of the Term: $2,750,000 Fourth Year of the Term: $2,875,000 Fifth Year of the Term: $3,000,000 Each subsequent year of the Term following the Fifth Year, the IRU Fee shall be adjusted on the anniversary of the Effective Date to reflect the Consumer Price Index Increase. If there is no Consumer Price Index Increase (i.e., there is deflation during the relevant period), there shall be no reduction in the IRU Fee from the prior year.