Balance Principle Sample Clauses

Balance Principle. The Parties acknowledge that a failure by one Party to incur management, operating and maintenance expenses on the one hand and Sustaining Capital on the other can have a direct economic impact on the other Party. The Parties agree that the following principle will be used to determine the balance between Sustaining Capital and management, operating and maintenance expenses: 12.9.1 the Operator agrees to incur such management, operating and maintenance expenses; 12.9.2 the Owner agrees to invest such Sustaining Capital in the Utility Plant; and 12.9.3 each Party agrees to invest such Sustaining Capital in respect of its own Common Systems, each as would reasonably be expected by a prudent operator of a co-generation utility plant owned and operated by a single entity, having regard to Good Utility Practice.