Basis of Charging for Water Sample Clauses

Basis of Charging for Water. (a) The Council shall calculate in accordance with established accounting principles the cost per thousand gallons to the Council of all water supplied by the Council to all its consumers (including the Company) during each financial year. The calculations shall be taken from the Council's Annual Statement of Accounts covering the accounts for the supply section only of the Water Department. This excludes the cost of the internal city reticulation network but does not exclude the Ring Main. The items more specifically covered under Supply include: (i) Loan Charges: Loan charges upon all present and future capital expenditure directly involved in the supply, including (ii) Operating Costs: Operating costs as set out in the Council's Annual Statement of Accounts including a fair proportion of administration and supervision salaries and office charges. The sum of the Loan Charges and the Operating Costs will be multi- plied by 1,000 and divided by the total number of gallons of water delivered out of the Branxholme Pumping Station annually, thus giving a figure to be known as the "Council's Unit Cost" per 1,000 gallons of water. (b) The price payable by the Company to the Council for water supplied to it through Tiwai Trunk Main during each quarterly period shall be calculated in accordance with the formula: - - XB +C+D-E 1,000 Where: A - is the number of gallons of water supplied by the Council to the Company through Tiwai Trunk Main during that quarterly period ; B - is the Council's Unit Cost per 1,000 gallons calculated as afore- said;
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