Common use of Base Escalator Clause in Contracts

Base Escalator. For purposes of this Agreement, the "Base Escalator" shall be the cost of coal as defined by the annual average cost of "bituminous coal" used by the coal-fired plants identified on Exhibit F, on a tonnage-weighted basis, as reported on FERC Form 423, (in dollars per ton) where "bituminous coal" shall have the definition set forth in Section 7.5 of this Agreement. The value of the Base Escalator established for a calendar year will be applied to all coal delivered during that calendar year; provided, however, that for periods from October 1, 2004, the value of the Base Escalator established for a quarter will be applied to all coal delivered during that quarter. The base value of the Base Escalator is the weighted average cost of bituminous coal used by the coal-fired plants identified on Exhibit F during the twelve month period from September 1, 2000 through August 31, 2001 [_ _ _ _]. Adjustments to prices which are to be made annually or quarterly based on the weighted average cost of bituminous coal used by the coal-fired plants identified on Exhibit F shall be calculated as follows: "The Base Price for coal shall be increased or decreased as of January 1 of each year of the term hereof commencing on January 1, 2003, and shall be increased or decreased as of each January 1, April 1, July 1 and October 1 of each year commencing with October 1, 2004, by the * CONFIDENTIAL MATERIAL HAS BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION. BRACKETS AND UNDERSCORES DENOTE SUCH OMISSIONS. EXECUTION COPY percentage change in the index number of the weighted average cost of bituminous coal used by the coal-fired plants identified on Exhibit F as reported on FERC Form 423 for the twelve (12) month period ending four (4) months prior to the period to be adjusted, compared to such index number for the twelve (12) month period from September 1, 2000 through August 31, 2001 (e.g., the percentage change from the September 1, 2001 to August 31, 2002 weighted annual average cost compared to the weighted annual average cost for the period September 1, 2000 through August 31, 2001 shall be used for January 1, 2003 adjustments; the percentage change from the September 1, 2001 to August 31, 2002 weighted annual average cost compared to the weighted annual average cost for the period June 1, 2003 through May 31, 2004 shall be used for the quarter commencing October 1, 2004). "If plants among those identified on Exhibit F discontinue the reporting of bituminous coal costs on FERC Form 423, such that for any one year period (September 1 through August 31) the total volume of bituminous coal reported on FERC Form 423 by the plants identified in Exhibit F is less than [_ _ _ _]) of the total volume reported by those plants during the period from October 1, 2004 through December 31, 2004 (i.e., [_ _ _ _] tons), the parties shall agree to a substitute index or other set of data to calculate the Base Escalator beginning in the next contract year. If after thirty (30) days of negotiations the parties are unable to agree on a new basis for providing a reasonable escalation, either party may submit such matter to arbitration pursuant to Article XVIII and the arbitrator shall be directed to develop a reasonable 100% bituminous coal (as defined in Section 7.5) based escalator."

Base Escalator. For purposes of this Agreement, the "Base Escalator" shall be the cost of coal as defined by the annual average cost of "bituminous coal" used by the coal-fired plants identified on Exhibit FNew Jersey utilities, on a tonnage-weighted basis, as reported on FERC Form 423, (in dollars per ton) where "bituminous coal" shall have the definition set forth in Section 7.5 of this Agreement. The first Base Escalator adjustment shall occur in 1994. The value of the Base Escalator established for a calendar year will be applied to all coal delivered during that calendar year; provided, however, that for periods from October 1, 2004, the value of the Base Escalator established for a quarter will be applied to all coal delivered during that quarter. The base value of the Base Escalator is the weighted average cost of bituminous coal used by the coal-fired plants identified on Exhibit F during the twelve month period from September 1, 2000 through August 31, 2001 [_ _ _ _]. Adjustments to prices which are to be made annually or quarterly based on the weighted average cost of bituminous coal used by the coal-fired plants identified on Exhibit F shall be calculated as follows: "The Base Price for coal shall be increased or decreased as of January 1 of each year of the term hereof commencing on January 1, 2003, and shall be increased or decreased as of each January 1, April 1, July 1 and October 1 of each year commencing with October 1, 2004, by the * CONFIDENTIAL MATERIAL HAS BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION. BRACKETS AND UNDERSCORES DENOTE SUCH OMISSIONS. EXECUTION COPY established for a calendar year will be applied to all coal delivered during that calendar year. The base value of the Base Escalator is the weighted average cost of bituminous coal used by New Jersey utilities during calendar year [_ _ _ _]. Adjustments to prices which are to be made annually based on the weighted average cost of bituminous coal used by New Jersey utilities shall be calculated as follows: The Base Coal Price shall be increased or decreased as of January 1 of each year of the term hereof commencing on January 1, 1996 by the percentage change in the index number of the weighted annual average cost of bituminous coal used by the coal-fired plants identified on Exhibit F New Jersey utilities as reported on FERC Form 423 for the twelve (12) month period (September 1 to August 31) ending four (4) months prior to the period year to be adjusted, compared to such index number for the twelve calendar year 1992 (12) month period from September 1, 2000 through August 31, 2001 (e.g.i.e., the percentage change from the September 1, 2001 1994 to August 31, 2002 1995 weighted annual average cost compared to the calendar year 1992 weighted annual average cost for the period September 1, 2000 through August 31, 2001 shall be used for January 1, 2003 adjustments; the percentage change from the September 1, 2001 to August 31, 2002 weighted annual average cost compared to the weighted annual average cost for the period June 1, 2003 through May 31, 2004 shall be used for the quarter commencing October January 1, 20041996 adjustments). "If plants among those identified on Exhibit F New Jersey utilities discontinue the reporting development of the data providing the weighted average cost of bituminous coal costs on FERC Form 423, such that for any one year period (September 1 through August 31) the total volume of bituminous coal reported on FERC Form 423 used by the plants identified in Exhibit F is less than [_ _ _ _]) of the total volume reported by those plants during the period from October 1, 2004 through December 31, 2004 (i.e., [_ _ _ _] tons)New Jersey utilities, the parties shall agree to a substitute index or other set of data to calculate that would most closely approximate the Base Escalator beginning in the next contract yearweighted average cost of bituminous coal used by New Jersey utilities. If after thirty (30) days of negotiations the parties are unable to agree on a new basis for providing a reasonable escalation, either party may submit such matter to arbitration pursuant to Article XVIII and the arbitrator shall be directed to develop a reasonable 100% bituminous coal (as defined in Section 7.5) based escalatorescalator comparable to such escalators used by utilities in the New Jersey region for coal fired power plants or if that is not possible due to the unavailability of supporting data, an escalator that the arbitrator determines would most closely approximate the weighted average cost of bituminous coal used by New Jersey utilities." The parties also agree that anywhere "Base Escalator" is used in the Agreement shall mean the definition set forth in this First Amendment rather than as defined in Article 5.1B(ii) of the Agreement for Purchase of Electric Power between Atlantic Electric and Xxxxx, from and after January 1, 1996. The parties further agree that Exhibit D to the Agreement is hereby deleted in entirety and not replaced. 11. Effective as of January 1, 1996, Exhibit E to the Agreement shall be deleted in its entirety and replaced with "Amended Exhibit E" attached hereto as a part hereof and of the Agreement. The parties agree that anywhere "Exhibit E" is used in the Agreement shall mean "Amended Exhibit E" from and after January 1, 1996. The parties further agree that in the event there is an inconsistency between the terms of the Agreement, as amended, and Amended Exhibit E, the terms of the Agreement, as amended, shall govern.

Base Escalator. For purposes of this Agreement, the "Base Escalator" shall be the cost of coal as defined by the annual average cost of "bituminous coal" used by the coal-fired plants identified on Exhibit F, on a tonnage-weighted basis, as reported on FERC Form 423, (in dollars per ton) where "bituminous coal" shall have the definition set forth in Section 7.5 of this Agreement. The value of the Base Escalator established for a calendar year will be applied to all coal delivered during that calendar year; provided, however, that for periods from October 1, 2004, the value of the Base Escalator established for a quarter will be applied to all coal delivered during that quarter. The base value of the Base Escalator is the weighted average cost of bituminous coal used by the coal-fired plants identified on Exhibit F during the twelve month period from September 1, 2000 through August 31, 2001 [_ _ _ _]. Adjustments to prices which are to be made annually or quarterly based on the weighted average cost of bituminous coal used by the coal-fired plants identified on Exhibit F shall be calculated as follows: "The Base Price for coal shall be increased or decreased as of January 1 of each year of the term hereof commencing on January 1, 2003, and shall be increased or decreased as of each January 1, April 1, July 1 and October 1 of each year commencing with October 1, 2004, 2003 by the * CONFIDENTIAL MATERIAL HAS BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION. BRACKETS AND UNDERSCORES DENOTE SUCH OMISSIONS. EXECUTION COPY percentage change in the index number of the weighted average cost of bituminous coal used by the coal-fired plants identified on Exhibit F as reported on FERC Form 423 for the twelve (12) month period (September 1 to August 31) ending four (4) months prior to the period year to be adjusted, compared to such index number for the twelve (12) month period from September 1, 2000 through August 31, 2001 (e.g., the percentage change from the September 1, 2001 to August 31, 2002 weighted annual average cost compared to the weighted annual average cost for the period September 1, 2000 through August 31, 2001 shall be used for January 1, 2003 adjustments; the percentage change from the September 1, 2001 to August 31, 2002 weighted annual average cost compared to the weighted annual average cost for the period June 1, 2003 through May 31, 2004 shall be used for the quarter commencing October 1, 2004). "If plants among those identified on Exhibit F discontinue the reporting of bituminous coal costs on FERC Form 423, such that for any one year period (September 1 through August 31) the total volume of bituminous coal reported on FERC Form 423 by the plants identified in Exhibit F is less than [_ _ _ _]) ] of the total volume reported by those plants during the period from October September 1, 2004 2000 through December August 31, 2004 2001 (i.e., [_ _ _ _] tons), the parties shall agree to a substitute index or other set of data to calculate the Base Escalator beginning in the next contract year. If after thirty (30) days of negotiations the parties are unable to agree on a new basis for providing a reasonable escalation, either party may submit such matter to arbitration pursuant to Article XVIII and the arbitrator shall be directed to develop a reasonable 100% bituminous coal (as defined in Section 7.5) based escalator." (c) Section 7.4 of the Agreement shall be deleted in its entirety. (d) Section 7.5 of the Agreement shall be deleted in its entirety and the following shall be inserted in its place:

Base Escalator. For purposes of this Agreement, the "Base Escalator" shall be the cost of coal as defined by the annual average cost of "bituminous coal" used by the coal-fired plants identified on Exhibit F, on a tonnage-weighted basis, as reported on FERC Form 423, (in dollars per ton) where "bituminous coal" shall have the definition set forth in Section 7.5 of this Agreement. The value of the Base Escalator established for a calendar year will be applied to all * CONFIDENTIAL MATERIAL HAS BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION. BRACKETS AND UNDERSCORES DENOTE SUCH OMISSIONS. coal delivered during that calendar year; provided, however, that for periods from October 1, 2004, the value of the Base Escalator established for a quarter will be applied to all coal delivered during that quarter. The base value of the Base Escalator is the weighted average cost of bituminous coal used by the coal-fired plants identified on Exhibit F during the twelve month period from September 1, 2000 through August 31, 2001 [_ _ _ _]. Adjustments to prices which are to be made annually or quarterly based on the weighted average cost of bituminous coal used by the coal-fired plants identified on Exhibit F shall be calculated as follows: "The Base Price for coal shall be increased or decreased as of January 1 of each year of the term hereof commencing on January 1, 2003, and shall be increased or decreased as of each January 1, April 1, July 1 and October 1 of each year commencing with October 1, 2004, 2003 by the * CONFIDENTIAL MATERIAL HAS BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION. BRACKETS AND UNDERSCORES DENOTE SUCH OMISSIONS. EXECUTION COPY percentage change in the index number of the weighted average cost of bituminous coal used by the coal-fired plants identified on Exhibit F as reported on FERC Form 423 for the twelve (12) month period (September 1 to August 31) ending four (4) months prior to the period year to be adjusted, compared to such index number for the twelve (12) month period from September 1, 2000 through August 31, 2001 (e.g., the percentage change from the September 1, 2001 to August 31, 2002 weighted annual average cost compared to the weighted annual average cost for the period September 1, 2000 through August 31, 2001 shall be used for January 1, 2003 adjustments; the percentage change from the September 1, 2001 to August 31, 2002 weighted annual average cost compared to the weighted annual average cost for the period June 1, 2003 through May 31, 2004 shall be used for the quarter commencing October 1, 2004). "If plants among those identified on Exhibit F discontinue the reporting of bituminous coal costs on FERC Form 423, such that for any one year period (September 1 through August 31) the total volume of bituminous coal reported on FERC Form 423 by the plants identified in Exhibit F is less than [_ _ _ _]) ] of the total volume reported by those plants during the period from October September 1, 2004 2000 through December August 31, 2004 2001 (i.e., [_ _ _ _] tons]), the parties shall agree to a substitute index or other set of data to calculate the Base Escalator beginning in the next contract year. If after thirty (30) days of negotiations the parties are unable to agree on a new basis for providing a reasonable escalation, either party may submit such matter to arbitration pursuant to Article XVIII and the arbitrator shall be directed to develop a reasonable 100% bituminous coal (as defined in Section 7.5) based escalator." (c) Section 7.4 of the Agreement shall be deleted in its entirety. (d) Section 7.5 of the Agreement shall be deleted in its entirety and the following shall be inserted in its place:

Base Escalator. For purposes of this Agreement, the "Base Escalator" shall be the cost of coal as defined by the annual average cost of "bituminous coal" used by the coal-fired plants identified on Exhibit FNew Jersey utilities, on a tonnage-weighted basis, as reported on FERC Form 423, (in dollars per ton) where "bituminous coal" shall have the definition set forth in Section 7.5 of this Agreement. The first Base Escalator adjustment shall occur in 1994. The value of the Base Escalator established for a calendar year will be applied to all coal delivered during that calendar year; provided, however, that for periods from October 1, 2004, the value of the Base Escalator established for a quarter will be applied to all coal delivered during that quarter. The base value of the Base Escalator is the weighted average cost of bituminous coal used by the coal-fired plants identified on Exhibit F during the twelve month period from September 1, 2000 through August 31, 2001 [_ _ _ _]. Adjustments to prices which are to be made annually or quarterly based on the weighted average cost of bituminous coal used by the coal-fired plants identified on Exhibit F shall be calculated as follows: "The Base Price for coal shall be increased or decreased as of January 1 of each year of the term hereof commencing on January 1, 2003, and shall be increased or decreased as of each January 1, April 1, July 1 and October 1 of each year commencing with October 1, 2004, by the * CONFIDENTIAL MATERIAL HAS BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION. BRACKETS AND UNDERSCORES DENOTE SUCH OMISSIONS. EXECUTION COPY established for a calendar year will be applied to all coal delivered during that calendar year. The base value of the Base Escalator is the weighted average cost of bituminous coal used by New Jersey utilities during calendar year 1992 [_ _ _ _] per ton. Adjustments to prices which are to be made annually based on the weighted average cost of bituminous coal used by New Jersey utilities shall be calculated as follows: The Base Coal Price shall be increased or decreased as of January 1 of each year of the term hereof commencing on January 1, 1996 by the percentage change in the index number of the weighted annual average cost of bituminous coal used by the coal-fired plants identified on Exhibit F New Jersey utilities as reported on FERC Form 423 for the twelve (12) month period (September 1 to August 31) ending four (4) months prior to the period year to be adjusted, compared to such index number for the twelve calendar year 1992 (12) month period from September 1, 2000 through August 31, 2001 (e.g.i.e., the percentage change from the September 1, 2001 1994 to August 31, 2002 1995 weighted annual average cost compared to the calendar year 1992 weighted annual average cost for the period September 1, 2000 through August 31, 2001 shall be used for January 1, 2003 adjustments; the percentage change from the September 1, 2001 to August 31, 2002 weighted annual average cost compared to the weighted annual average cost for the period June 1, 2003 through May 31, 2004 shall be used for the quarter commencing October January 1, 20041996 adjustments). "If plants among those identified on Exhibit F New Jersey utilities discontinue the reporting development of the data providing the weighted average cost of bituminous coal costs on FERC Form 423, such that for any one year period (September 1 through August 31) the total volume of bituminous coal reported on FERC Form 423 used by the plants identified in Exhibit F is less than [_ _ _ _]) of the total volume reported by those plants during the period from October 1, 2004 through December 31, 2004 (i.e., [_ _ _ _] tons)New Jersey utilities, the parties shall agree to a substitute index or other set of data to calculate that would most closely approximate the Base Escalator beginning in the next contract yearweighted average cost of bituminous coal used by New Jersey utilities. If after thirty (30) days of negotiations the parties are unable to agree on a new basis for providing a reasonable escalation, either party may submit such matter to arbitration pursuant to Article XVIII and the arbitrator shall be directed to develop a reasonable 100% bituminous coal (as defined in Section 7.5) based escalatorescalator comparable to such escalators used by utilities in the New Jersey region for coal fired power plants or if that is not possible due to the unavailability of supporting data, an escalator that the arbitrator determines would most closely approximate the weighted average cost of bituminous coal used by New Jersey utilities." The parties also agree that anywhere "Base Escalator" is used in the Agreement shall mean the definition set forth in this First Amendment rather than as defined in Article 5.1B(ii) of the Agreement for Purchase of Electric Power between Atlantic Electric and Xxxxx, from and after January 1, 1996. The parties further agree that Exhibit D to the Agreement is hereby deleted in entirety and not replaced. 11. Effective as of January 1, 1996, Exhibit E to the Agreement shall be deleted in its entirety and replaced with "Amended Exhibit E" attached hereto as a part hereof and of the Agreement. The parties agree that anywhere "Exhibit E" is used in the Agreement shall mean "Amended Exhibit E" from and after January 1, 1996. The parties further agree that in the event there is an inconsistency between the terms of the Agreement, as amended, and Amended Exhibit E, the terms of the Agreement, as amended, shall govern.