Specific Assignment Method (TAB E Clause Samples

Specific Assignment Method (TAB E. Applies to costs that can be assigned to 7 the benefiting business unit based on a statistical analysis, usage study, or association 8 with the underlying asset or liability. For instance, depreciation expense is assigned 9 based on the related plant asset. 10 KCP&L will rely upon its Accounting Department or the group responsible for control of 11 the costs to determine the specific assignments. KCP&L and affiliates shall enter into 12 service agreements which establish the terms and conditions for affiliate transactions, 13 including a general description of goods and services provided, pricing, billing and 14 payment methods and dispute resolution. Refer to Appendix 2 for a listing of services. 15 Additional services may be provided if needed. Appendix 2 and Service Agreements 16 will be updated if additional services are provided or removed. The agreements will 17 comply with all applicable MoPSC rules and orders and to prevent any preferential 18 treatment among the affiliates. 1 KCP&L provides goods, services, assets, and information to other entities within GPE 2 including GPE. When goods are provided or services are performed for the benefit of 3 these entities, the fully distributed cost of providing the good or service is accumulated 4 and billed to the affiliate. On a monthly1 basis, these accumulated fully distributed 5 costs are then compared with the fair market price of the good or service. After the 6 comparison is made, if the fair market price is higher than the fully distributed cost an 7 adjustment will be made for the difference and billed by KCP&L, to the benefiting 8 business unit on a monthly basis.