Common use of Adjusted Rate Clause in Contracts

Adjusted Rate. Effective on the first day of each Contract Year after the first Contract Year, the Transportation Fee shall be adjusted, upward or downward. Computations to determine such adjustments shall be made utilizing $0.16/Mcf as the base rate. The adjustment shall be based upon the change in the annual average of the Producers Price Index, "PPI," All Commodities, 1982 = 100, as published by the United States Department of Labor, Bureau of Labor Statistics. To determine the adjusted rate for each subsequent Contract Year, the following formula shall be used: Adjusted rate = Base rate x (0.10 + 0.90 x PPI current/PPI base) or the initial rate, whichever is greater. Thus, by way of illustration, should the average PPI for the year 2002 be 125, and the average PPI for the year 2003 be 130, the adjusted price for the subsequent Contract Year, 2004, commencing on the anniversary of the Contract Year, would be computed as follows: $0.16 x (0.10 + 0.90 x 130/125) = $0.16576

Adjusted Rate. Effective on the first day of each Contract Year after the first Contract Year, the Transportation Fee shall be adjusted, upward or downward. Computations to determine such adjustments shall be made utilizing $0.16/Mcf as the base rate. The adjustment shall be based upon the change in the annual average of the Producers Price Index, "“PPI," ” All Commodities, 1982 = 100, as published by the United States Department of Labor, Bureau of Labor Statistics. To determine the adjusted rate for each subsequent Contract Year, the following formula shall be used: Adjusted rate = Base rate x (0.10 + 0.90 x PPI current/PPI base) or the initial rate, whichever is greater. Thus, by way of illustration, should the average PPI for the year 2002 be 125, and the average PPI for the year 2003 be 130, the adjusted price for the subsequent Contract Year, 2004, commencing on the anniversary of the Contract Year, would be computed as follows: $0.16 x (0.10 + 0.90 x 130/125) = $0.16576