Common use of Additional Quantities Clause in Contracts

Additional Quantities. (A) Annual Variable O&M Expenses (1) Variable Production O&M Expenses: those portions of Production O&M Expenses, as defined above, other than fuel expenses, that are reasonably determined to be variable expenses, in the sense that they are incurred as a result of, or otherwise are reasonably associated with, the production of energy by the Subject Resource. (2) Variable A&G Expenses: that portion of A&G Expenses that is related or allocable to the foregoing Variable Production O&M Expenses. Notwithstanding the foregoing, starting with the first information filing hereunder and continuing until the Owner elects to use a different method to determine its Annual Variable O&M Expenses, the Owner may compute Annual Variable O&M Expenses as the amount equal to the product of (a) the Initial Variable O&M Rate, in $/MWh, for the Subject Resource, as set forth in Exhibit A hereto (Exhibit A can be found in Appendix B to the Stipulation and Agreement), times (b) the Net Generation of the Subject Resource (as defined hereinabove). Whenever the Owner does not compute Annual Variable O&M Expenses based on the Initial Variable O&M Rate in the foregoing manner, the Owner shall include in each of Informational Package a detailed explanation of the method or methods used to classify O&M expenses as between fixed (i.e., capacity-related) expenses and variable (i.e., energy-related) expenses and the reason(s) such method results in just and reasonable rates. (B) Annual Fixed O&M Expenses (1) Total O&M Expenses, as defined hereinabove, less (2) the sum of: a. Annual Variable O&M Expenses, as defined hereinabove, and b. Annual Variable Fuel Costs, as defined hereinbelow, c. Annual Emissions Costs, as defined hereinbelow, and d. Annual Non-Fuel Start-Up Costs, as defined hereinbelow. (C) Fuel Expenses