Common use of Utility Practice Clause in Contracts

Utility Practice. The parties shall agree upon the types and amounts of coverage and deductible amounts prior to the Closing Date. In addition, the Manager shall obtain and maintain such other insurance coverages as requested by the Authority during the Term. The Authority, its trustees, officers and employees shall be additional or named insureds, as appropriate, on all such policies, which shall require 30 days prior written notice to the Authority prior to any change in or cancellation of such policies. Such coverages shall be maintained with generally recognized financially responsible insurers reasonably acceptable to the Authority and qualified and authorized to insure risks in the State of New York. At the Authority's discretion, it may, at its expense, cancel or replace and obtain independently some or all of such insurance, following at least 90 days' written notice to the Manager. DIRECT COST BUDGET INDICES Indices to be used in determining the initial and subsequent Direct Cost Budgets as described in subsection 6.2(B)(3) shall be mutually agreeable objective indices such as: -------------------------------------------------------------------------------- Cost Component Cost Index -------------------------------------------------------------------------------- Union Labor and Benefits Local 1381 and Local 1049 February 14, 1998 - 2.5% increase August 14, 1998 - 1% increase February 14, 1999 - 2.5% increase August 14, 1999 - 1% increase February 14, 2000 - 2.5% increase August 14, 2000 - 1% increase Effective February 14, 2001 - Employment Cost Index - Service Producing Industries, Union workers* -------------------------------------------------------------------------------- Non-Union Labor Regional Employment Cost Index - Service Producing Industries, Non-union workers -------------------------------------------------------------------------------- Administrative and General: - Labor and employee Regional Employment Cost Index - Service Producing benefits Industries, Non-union workers -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- Cost Component Growth Indices -------------------------------------------------------------------------------- Distribution Cost - Meter Expenses Percentage Increase in Number of Active Meters (586,587,597) - Other Distribution O&M Percentage in Conductor Miles -------------------------------------------------------------------------------- Customer Service & Customer Percentage increase in Number of Customers Accounts -------------------------------------------------------------------------------- o Commencing on the Closing Date, non-union labor and benefit costs included in the Direct Cost Budget shall be escalated annually at the beginning of each contract year using the U.S. Labor Department's Bureau of Labor Statistics Employment Cost Index (ECI) for nonunion workers in service-producing industries. Commencing February 14, ---------- * As published by the United States Labor Department's Bureau of Labor Statistics 2001, union labor and benefit costs included in the Direct Cost Budget shall be escalated annually at the beginning of each contract year using the U.S. Labor Department's Bureau of Labor Statistics Employment Cost Index (ECI) for union workers in service-producing industries. Prior to February 14, 2001, escalations in union labor and benefit costs will be based on the percent wage increases outlined in the provisions of the existing labor contracts. The initial Direct Cost Budget shall be adjusted each year based on the difference between the 1997 base year index and the current year index.

Utility Practice. The parties shall agree upon the types and amounts of coverage and deductible amounts prior to the Closing Date. In addition, the Manager shall obtain and maintain such other insurance coverages as requested by the Authority during the Term. The Authority, its trustees, officers and employees shall be additional or named insureds, as appropriate, on all such policies, which shall require 30 days prior written notice to the Authority prior to any change in or cancellation of such policies. Such coverages shall be maintained with generally recognized financially responsible insurers reasonably acceptable to the Authority and qualified and authorized to insure risks in the State of New York. At the Authority's discretion, it may, at its expense, cancel or replace and obtain independently some or all of such insurance, following at least 90 days' written notice to the Manager. APPENDIX 5 DIRECT COST BUDGET INDICES Indices to be used in determining the initial and subsequent Direct Cost Budgets as described in subsection 6.2(B)(3) shall be mutually agreeable objective indices such as: -------------------------------------------------------------------------------- Cost Component Cost Index -------------------------------------------------------------------------------- ------------------------------------------------------------------------------------------------------------------------ COST COMPONENT COST INDEX ------------------------------------------------------------------------------------------------------------------------ Union Labor and Benefits Local 1381 and Local 1049 February 14, 1998 - 2.5% increase August 14, 1998 - 1% increase February 14, 1999 - 2.5% increase August 14, 1999 - 1% increase February 14, 2000 - 2.5% increase August 14, 2000 - 1% increase Effective February 14, 2001 - Employment Cost Index - Service Producing Industries, Union workers* -------------------------------------------------------------------------------- ------------------------------------------------------------------------------------------------------------------------ Non-Union Labor Regional Employment Cost Index - Service Producing Industries, Non-union workers -------------------------------------------------------------------------------- ------------------------------------------------------------------------------------------------------------------------ Administrative and General: - Labor and employee Regional Employment Cost Index - Service Producing benefits Industries, Non-union workers -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- Cost Component Growth Indices -------------------------------------------------------------------------------- ------------------------------------------------------------------------------------------------------------------------ ------------------------------------------------------------------------------------------------------------------------ COST COMPONENT GROWTH INDICES ------------------------------------------------------------------------------------------------------------------------ Distribution Cost - Meter Expenses Percentage Increase increase in Number number of Active Meters (586,587,597) - Other Distribution O&M Percentage in Conductor Miles -------------------------------------------------------------------------------- ------------------------------------------------------------------------------------------------------------------------ Customer Service & Customer Percentage increase in Number of Customers Accounts -------------------------------------------------------------------------------- o Commencing on the Closing Date, non-union labor and benefit costs included in the Direct Cost Budget shall be escalated annually at the beginning of each contract year using the U.S. Labor Department's Bureau of Labor Statistics Employment Cost Index (ECI) for nonunion workers in service-producing industries. Commencing February 14, ---------- * As published by the United States Labor Department's Bureau of Labor Statistics 2001, union labor and benefit costs included in the Direct Cost Budget shall be escalated annually at the beginning of each contract year using the U.S. Labor Department's Bureau of Labor Statistics Employment Cost Index (ECI) for union workers in service-producing industries. Prior to February 14, 2001, escalations in union labor and benefit costs will be based on the percent wage increases outlined in the provisions of the existing labor contracts. The initial Direct Cost Budget shall be adjusted each year based on the difference between the 1997 base year index and the current year index.------------------------------------------------------------------------------------------------------------------------