Common use of Step Adjustment Clause in Contracts

Step Adjustment. 5.1 For purposes of calculating the Step Adjustment, the following definitions shall apply: 5.1.1 Accumulated Depreciation is the cumulative net credit balance arising from the provision for depreciation expense, cost of removal, salvage, and retirements. Non-growth depreciation expense and retirements shall be apportioned to non- growth investments based upon the proportion of non-growth related Plant Additions relative to total Plant Additions in the Investment Year.