LRAM Clause Samples
The LRAM (Loss Reduction Adjustment Mechanism) clause is designed to adjust payments or charges based on the measured reduction in losses, typically in the context of energy or utility contracts. It operates by quantifying the difference between expected and actual losses—such as energy lost during transmission—and then applying a financial adjustment to reflect this difference. For example, if a utility company reduces its transmission losses below a baseline, the LRAM clause may allow it to recover lost revenues or receive a bonus. The core function of this clause is to incentivize efficiency improvements and ensure that parties are fairly compensated or charged for changes in loss levels, thereby aligning financial outcomes with operational performance.
LRAM. The LRAM component of ITAM conducts activities to design and execute repair, maintenance, and reconfiguration projects on mission lands. Maintenance projects/activities that are routine land management actions conducted to keep training areas and training area features or assets safe and usable. Maintenance is work required to preserve site conditions so that the site can be used effectively for its designated mission purpose(s). Maintenance is intended to prevent deteriorated conditions that would be more costly to restore. Repair projects/activities that repair damaged training lands and training area assets or features for the purpose of supporting training events. Repair is work required to restore training assets to conditions that permit safe and effective use for the designated mission purpose(s). Repair projects are performed in response to landscape conditions that have significantly changed due to mission use. Reconfiguration projects/activities that change existing landscape conditions to support particular training events. Reconfiguration activities involve expanding and altering existing training area features, or creating new training area features. The scope of reconfiguration projects must adhere to the approval and funding limits established by AR 420-1.
LRAM. The LRAM account will be continued in 2004 in the same manner as in previous years with one exception. The exception is that the variance between the actual volume savings achieved and the 2004 target savings included in rates (instead of total savings achieved) will be recorded in the LRAM account. This change is required because, to the extent that the 2004 volume forecast has been reduced for the impact of 2004 DSM activity the LRAM is necessary only to record variances from the amount of DSM included in rates. Union and the intervenors agree that no LRAM evaluation process changes will apply to the year 2004.