Common use of Restructuring Costs Clause in Contracts

Restructuring Costs. (a) The expense of restructuring NEPOOL ("Restructuring Expense"), including but not limited to (i) software development, hardware and system software costs for implementation of the Tariff and the new market system, (ii) the costs of the formation of the Independent System Operator and related separation costs, (iii) legal and consultant costs related to the amendment of the NEPOOL Agreement (including the Tariff) and the proceeding with respect thereto at the Federal Energy Regulatory Commission, and (iv) capital expenditures and capitalized project costs of the Independent System Operator, shall be funded (to the extent not already funded) and amortized according to this Section 19.3. (b) The Restructuring Expense incurred (other than certain capital expenditures and capitalized project costs funded separately by the ISO) before the Second Effective Date (the "Early Restructuring Expense") has been funded during the period prior to such date by those entities which have been the Participants during such period. Commencing at the Second Effective Date, the Early Restructuring Expense shall be amortized in equal monthly amounts and repaid over the next 60 months with interest thereon at the rate of 8% per annum from the date of payment. Each month during the first twelve months of such period each Participant shall pay its percentage "X", as determined below, of 1/60th of the Early Restructuring Expense, plus accumulated interest, and each Participant or other Entity which previously paid an unreimbursed portion of the aggregate Early Restructuring Expense shall be entitled to receive each month its percentage "Y", as determined below, of the aggregate amount to be paid for the month, including accumulated interest. "X" and "Y" shall be determined in accordance with the following formulas: X = in which X is the percentage to be paid for a month by a Participant of the aggregate amount payable pursuant to this subsection (b) by all Participants for the month. A is the amount payable by the Participant for the month under Schedule 2 (Energy Administration Services) of the ISO Tariff (as defined in Section 19.2) as amended or revised from time to time. A1 is the aggregate amount payable by all Participants for the month under Schedule 2 (Energy Administration Services) of the ISO Tariff as amended or revised from time to time. Y = in which Y is the percentage to be received for a month by a Participant or other Entity of the aggregate amount to be received pursuant to this subsection (b) by all Participants or other Entities for the month. B is the amount of Early Restructuring Expense paid by the Participant or other Entity which has not previously been reimbursed. B1 is the aggregate amount of Early Restructuring Expense paid by all Participants and other Entities which has not previously been reimbursed. (c) The Restructuring Expense incurred on the Second Effective Date and to but not including January 1, 2000 or thereafter shall be funded each month by the Participants in proportion to the Member Fixed Voting Shares (as defined in Section 6.9(c)) of each Participant as in effect at the beginning of the month provided, however, that in calculating the allocation of this portion of the Restructuring Expense, the Member Fixed Voting Shares of End User Participants that participate in NEPOOL for governance purposes only in accordance with NEPOOL's Standard Membership Conditions, Waivers and Reminders ("Governance Only End User Participants") shall not be included in such calculations and the amounts that would otherwise have been payable by such Governance Only End User Participants will be allocated to all of the other Participants on the basis of their Member Fixed Voting Shares. (d) The Restructuring Expense incurred on or after January 1, 2000 (the "Late Restructuring Expense") shall initially be funded for each month, on an as incurred basis, by the Participants in proportion to their charges under the ISO Tariff for the prior month. The aggregate Late Restructuring Expense funded in any calendar year shall be amortized in equal monthly amounts and repaid over the next 60 months, commencing in January of the immediately succeeding calendar year, with interest thereon from the date of payment at the rate equal to the average Weighted Costs of Capital of all Transmission Providers in effect on October 20, 1999 (without subsequent adjustment) determined pursuant to Section II(A)(2)(a) of the Implementation Rule for Calculating Annual Transmission Revenue Requirements filed as a supplement to the Tariff. Thus, for example, the Late Restructuring Expense incurred in 2000 will be amortized and repaid over a 60-month period commencing in January 2001. Each month during the applicable amortization period each Participant shall pay its share of the portion of the Late Restructuring Expense being amortized during such period, plus accumulated interest, and each Participant or other Entity which previously paid an unreimbursed portion of the aggregate Late Restructuring Expense being amortized during such period shall be entitled to receive its share of the aggregate amount paid for such month, including accumulated interest, according to an allocation methodology that is based on the appropriate schedules of the ISO Tariff, which allocation methodology will be established under subsection (e) below.

Restructuring Costs. (a) The expense of restructuring NEPOOL ("Restructuring Expense"), including but not limited to (i) software development, hardware and system software costs for implementation of the Tariff and the new market system, (ii) the costs of the formation of the Independent System Operator and related separation costs, (iii) legal and consultant costs related to the amendment of the NEPOOL Agreement (including the Tariff) and the proceeding with respect thereto at the Federal Energy Regulatory Commission, and (iv) capital expenditures and capitalized project costs of the Independent System Operator, shall be funded (to the extent not already fundedfunded or funded separately by the ISO) and amortized according to this Section 19.3. (b) The Restructuring Expense incurred (other than certain capital expenditures and capitalized project costs funded separately by the ISO) before the Second Effective Date (the "Early Restructuring Expense") has been funded during the period prior to such date by those entities which have been the Participants during such period. Commencing at the Second Effective Date, the Early Restructuring Expense shall be amortized in equal monthly amounts and repaid over the next 60 months with interest thereon from the date of payment to August 18, 2000 at the rate of 8% per annum from annum, and thereafter at the date rate of payment10.78% per annum. Each month during the first twelve twenty months of such period each Participant shall pay its percentage "X", as determined below, of 1/60th of the Early Restructuring Expense, plus accumulated interest, and each Participant or other Entity which previously paid an unreimbursed portion of the aggregate Early Restructuring Expense shall be entitled to receive each month its percentage "Y", as determined below, of the aggregate amount to be paid for the month, month including accumulated interest. "X" and "Y" shall be determined in accordance with the following formulas: X = in which X is the percentage to be paid for a month by a Participant of the aggregate amount payable pursuant to this subsection (b) by all Participants for the month. A is the amount payable by the Participant for the month under Schedule 2 (Energy Administration Services) of the ISO Tariff (as defined in Section 19.2) as amended or revised from time to time. A1 is the aggregate amount payable by all Participants for the month under Schedule 2 (Energy Administration Services) of the ISO Tariff as amended or revised from time to time. Y = in which Y is the percentage to be received for a month by a Participant or other Entity of the aggregate amount to be received pursuant to this subsection (b) by all Participants or other Entities for the month. B is the amount of Early Restructuring Expense paid by the Participant or other Entity which has not previously been reimbursed. B1 is the aggregate amount of Early Restructuring Expense paid by all Participants and other Entities which has not previously been reimbursed. (c) The Restructuring Expense incurred on the Second Effective Date and to but not including January 1, 2000 or thereafter shall be funded each month by the Participants in proportion to the Member Fixed Voting Shares (as defined in Section 6.9(c)) of each Participant as in effect at the beginning of the month provided, however, that in calculating the allocation of this portion of the Restructuring Expense, the Member Fixed Voting Shares of End User Participants that participate in NEPOOL for governance purposes only in accordance with NEPOOL's Standard Membership Conditions, Waivers and Reminders ("Governance Only End User Participants") shall not be included in such calculations and the amounts that would otherwise have been payable by such Governance Only End User Participants will be allocated to all of the other Participants on the basis of their Member Fixed Voting Shares. (d) The Restructuring Expense incurred on or after January 1, 2000 (the "Late Restructuring Expense") shall initially be funded for each month, on an as incurred basis, by the Participants in proportion to their charges under the ISO Tariff for the prior month. The aggregate Late Restructuring Expense funded in any calendar year shall be amortized in equal monthly amounts and repaid over the next 60 months, commencing in January of the immediately succeeding calendar year, with interest thereon from the date of payment at the rate equal to the average Weighted Costs of Capital of all Transmission Providers in effect on October 20, 1999 (without subsequent adjustment) determined pursuant to Section II(A)(2)(a) of the Implementation Rule for Calculating Annual Transmission Revenue Requirements filed as a supplement to the Tariff. Thus, for example, the Late Restructuring Expense incurred in 2000 will be amortized and repaid over a 60-month period commencing in January 2001. Each month during the applicable amortization period each Participant shall pay its share of the portion of the Late Restructuring Expense being amortized during such period, plus accumulated interest, and each Participant or other Entity which previously paid an unreimbursed portion of the aggregate Late Restructuring Expense being amortized during such period shall be entitled to receive its share of the aggregate amount paid for such month, including accumulated interest, according to an allocation methodology that is based on the appropriate schedules of the ISO Tariff, which allocation methodology will be established under subsection (e) below.: