Common use of Allocation Templates Clause in Contracts

Allocation Templates. Liberty Midstates shall file on the ICC’s e-Docket system in Docket No. 18-[●], with a copy provided to the ICC’s Accounting Department, a template of all allocation percentages to be used to charge Liberty Midstates pursuant to this Agreement within 30 days of the initial allocation factors’ becoming effective. This template shall be updated at least annually with a copy provided to the ICC’s Accounting Department no later than May 31. The first allocation template filing will be due no later than May 31, 2019 and reflect 2018 actual data. The template shall be updated when there is any change in the Liberty Utilities Entities that Liberty Midstates expects to result in a “substantial change” to the Service Company costs allocated to Liberty Midstates and the updated template shall be provided to the ICC’s Accounting Department within sixty (60) days of implementation of such substantial change with a description of such changes. If any annual template, or updated template as a result of a change in the Liberty Utilities Entities, indicates that a “substantial change” has occurred (for annual updates based on the preceding calendar year’s data) or is expected to occur (for updates required due to a change in the Liberty Utilities Entities), Liberty Midstates will include with the update a narrative description of its understanding of the causes of such substantial change. A “substantial change” is defined as a change in an allocation factor, or the calculation of the factor, that resulted (or in the case of an update due to a change in the Liberty Utilities Entities, is expected by Liberty Midstates to result) in an increase or decrease in Service Company costs allocated to Liberty Midstates by more than 10% or $500,000, whichever is greater, relative to the costs allocated by Service Company to Liberty Midstates that would have been allocated in the prior year had the allocation factors or calculation thereof not changed.