Operation and Maintenance Charge. In accordance with the billing and payment procedures in Xxxxxxx 0, XXX&X shall xxxx annually during each January, and CalPeak Border shall pay over the Term of this EIFA, a separate operation and maintenance charge to compensate SDG&E for the operation, maintenance, and applicable taxes associated with the Interconnection Facilities in an amount equal to the currently effective Generation Interconnection O&M Fixed Charge Rate set forth in Appendix XI of SDG&E’s Transmission Owner Tariff (as such rate may be modified from time to time) times the installed Cost of the Interconnection Facilities. An example calculation of the formula is attached as Exhibit 7. Provided, however, in the event that after the In-Service Date compliance with the conditions described in Section 5.1.6.1, or compliance with new conditions to protect the natural environment are imposed on SDG&E in connection with its operation and maintenance of the Interconnection Facilities, then the Parties agree that SDG&E may file with the FERC to revise the operation and maintenance charge set forth in Section 6.2 to permit recovery of (i) recurring compliance costs and (ii) nonrecurring compliance costs over a reasonable amortization period, provided such costs are just and reasonable and reasonably allocated on a pro rata basis to the Interconnection Facilities.
Operation and Maintenance Charge. In this Lease, the following terms shall have the meanings hereinafter provided:
Operation and Maintenance Charge. The Operation and Maintenance ("O&M") Charge shall be calculated on a per MMBtu basis as of the beginning of every Service Year based on the prior Service Year's O&M expenses incurred by the Seller, adjusted for the change in the GDPIPD to reflect inflation from September 1 preceding the Service Year from which such expenses are derived through August 31 of such Service Year. To calculate the O&M Charge, the total annual cost of O&M incurred in accordance with Good Utility Practices for the Seller's plant's steam system (including usual and customary administrative and general expenses and overheads) will be multiplied by the Steam Sales Percentage and divided by the projected annual steam sales in MMBtu to establish the average O&M cost for all steam sold to Buyer. The O&M Charge will be based on all non-fuel related expenses for the ongoing operation and maintenance of the steam plant, including but not limited to: labor, insurance, parts, consumables, purchased power, real estate taxes, ongoing permit fees and other non-fuel related expenses incurred in normal operation of the boiler and fuel system. The O&M charge shall not include O&M costs for the turbine generators or any turbine generator auxiliary equipment (such as the circulating cooling water system, switchgear and main 34.5 kV transformers), expenses related to the sale of electrical power, renewable energy certificates, electric capacity, or other electric power products or attributes, or fines or penalties levied against the plant or the Seller. O&M shall be adjusted (i) to normalize non-recurring expenses, which shall be amortized over their useful life or based on their reasonably expected frequency and (ii) to adjust for out-of-period items such as prepayments or the like. Any amounts that are amortized or otherwise included in O&M in a Service Year other than the one in which they were incurred shall be adjusted to include a return on the unamortized or deferred portion at the rate of the Buyer's last allowed overall cost of capital, as determined by the PUC. The O&M Charge will not be reconciled with actual costs for past years, but rather will be adjusted prospectively only. However, if actual data is not available for use in determining the O&M Charge, estimated data may be used initially, in which case the O&M Charge shall be adjusted and reconciled when actual data becomes available.
Operation and Maintenance Charge. The Generator shall pay to SONI the relevant charge for the operation and maintenance of the NI System as specified in the Connection Offer. Where the Generator has elected to pay this charge in annual instalments the annual payment must be paid to SONI by the Generator, in advance, for the year in which the Generator is connected to the NI System and thereafter in advance for each subsequent year. This charge will be invoiced annually, based on the value of the connection assets, increasing in real terms over the lifetime of the Connection Agreement (typically the Retail Price Index, or any replacement thereof from time to time), and will be payable in accordance with the terms of this Agreement.
Operation and Maintenance Charge. Commencing with the in-service date for the Interconnection Facilities of September 1, 2008 or such other date as may be established pursuant to the terms of the IFA (“In-Service Date”), SDG&E shall xxxx annually, and OMEC shall pay over the Term of this IA, a separate operation and maintenance charge to compensate SDG&E for the operation, maintenance, and applicable taxes associated with the Interconnection Facilities that are direct assignment facilities as described in Appendix E and not related to network upgrades in an amount equal to: the currently effective Generation Interconnection O&M Fixed Charge Rate set forth in Appendix XI of SDG&E’s Transmission Owner Tariff (as such rate may be modified from time to time) times the following amount: The installed Cost of the direct assignment Interconnection Facilities. An example calculation of the formula is attached as Appendix G. In addition, OMEC shall pay SDG&E as part of the operation and maintenance charges all costs incurred by SDG&E after the In-Service Date associated with SDG&E’s obligations under Sections 5.1.6.1 and 5.1.6.2 of the IFA.
