Common use of Default Budget Clause in Contracts

Default Budget. (a) If on November 1 of any Fiscal Year no Annual Budget has been approved for the following Fiscal Year, then the Annual Budget for the then current Fiscal Year, adjusted (without duplication) to reflect increases or decreases resulting from the following events, shall govern the Fiscal Year beginning on the January 1 following the aforesaid November 1, subject to the limitations set forth in Section 8.6(b) below: (i) the operation of escalation or de-escalation provisions in contracts in effect at the time of approval of the then current Fiscal Year's Annual Budget solely as a result of the passage of time or the occurrence of events beyond the control of the Company to the extent such contracts are still in effect; (ii) elections made in any current or prior Fiscal Year under contracts contemplated by the Annual Budget for the then current Fiscal Year regardless of which party to such contracts made such elections; (iii) increases or decreases in expenses attributable to the annualized effect of employee additions or reductions during the then current Fiscal Year contemplated by the Annual Budget for the then current Fiscal Year; (iv) changes in interest expense attributable to any loans made to or retired by the Company; (v) increases in overhead expenses in an amount equal to the total of overhead expenses reflected in the Annual Budget for the then current Fiscal Year multiplied by the increase in the Consumer Price Index for the then current year, but in no event more than five percent (5%); (vi) the anticipated incurrence of costs during such following Fiscal Year for any legal, accounting and other professional fees or disbursements in connection with events or changes not contemplated at the time of preparation of the Annual Budget for the then current Fiscal Year; and (b) Any Annual Budget established pursuant to this Section 8.6 is herein referred to as a "Default Budget." Default Budgets shall not be in effect for more than two consecutive Fiscal Years. In the event a new Annual Budget is not approved by the time such two-year period shall have expired, the Company shall have no Annual Budget, and no Capital Contributions shall be required to be made thereafter.

Default Budget. (a) If on November Beginning with the year following the year in which the date of Commercial Operation occurs, if the Parties have not agreed upon a cost budget to be included in as part of the Operating Plan & Budget by January 1 of any Fiscal Year no Annual the year to which such Operating Plan & Budget has been approved for the following Fiscal Yearapplies, then the Annual Default Budget shall be deemed to be the approved budget until such time as the Parties agree on a cost budget for such year or the budget-related Disputes between the Parties have been resolved in accordance with Article XI. The Default Budget shall be prepared by Operator and delivered to Owners not later than seven (7) days prior to the first day of the period to which the Default Budget applies. The Default Budget, which shall be prorated for the year in which this Agreement is terminated, shall be equal to the actual Operating Expenses incurred during the preceding year (annualized in the event such preceding year is less than a full year) increased by the same percent as the percent increase, if any, in the Escalation Factor during the twelve (12) month period ending with the most recent September 30, and adjusted to (i) delete any Non-Recurring Operating Expense incurred during the preceding year, if such non-recurring expense, in the reasonable opinion of Operator, is not expected to be incurred during the applicable year, (ii) add any Non-Recurring Operating Expense scheduled to be incurred during the applicable year as such amount is set forth in the most recent Operating Plan & Budget and (iii) delete (without duplication of the adjustments made in accordance with (i) and (ii) of this Section 5.02(c)) the impact of any Emergency, Force Majeure Event, time that THE PROJECT was not operating, or suspension of Services that occurred during the preceding year. The Operator Incentive component of the Default Budget shall be the same as the Operator Incentive component of the Operating Plan & Budget for the then current Fiscal Year, adjusted (without duplication) to reflect increases or decreases resulting from the following events, shall govern the Fiscal Year beginning on the January 1 following the aforesaid November 1, subject to the limitations set forth in Section 8.6(b) below: (i) the operation of escalation or de-escalation provisions in contracts in effect at the time of approval of the then current Fiscal Year's Annual Budget solely as a result of the passage of time or the occurrence of events beyond the control of the Company to the extent such contracts are still in effect; (ii) elections made in any current or prior Fiscal Year under contracts contemplated by the Annual Budget for the then current Fiscal Year regardless of which party to such contracts made such elections; (iii) increases or decreases in expenses attributable to the annualized effect of employee additions or reductions during the then current Fiscal Year contemplated by the Annual Budget for the then current Fiscal Year; (iv) changes in interest expense attributable to any loans made to or retired by the Company; (v) increases in overhead expenses in an amount equal to the total of overhead expenses reflected in the Annual Budget for the then current Fiscal Year multiplied by the increase in the Consumer Price Index for the then current immediately preceding year, but in no event more than five percent (5%); (vi) the anticipated incurrence of costs during such following Fiscal Year for any legal, accounting and other professional fees or disbursements in connection with events or changes not contemplated at the time of preparation of the Annual Budget for the then current Fiscal Year; and (b) Any Annual Budget established pursuant to this Section 8.6 is herein referred to as a "Default Budget." Default Budgets shall not be in effect for more than two consecutive Fiscal Years. In the event a new Annual Budget is not approved by the time such two-year period shall have expired, the Company shall have no Annual Budget, and no Capital Contributions shall be required to be made thereafter.

Default Budget. (a) If on November 1 of any Fiscal Year no Annual Budget has been approved for the following Fiscal Year, then the Annual Budget for the then current Fiscal Year, adjusted (without duplication) to reflect increases or decreases resulting from the following events, shall govern the Fiscal Year beginning on the January 1 following the aforesaid November 1, subject to the limitations set forth in Section 8.6(b) below: (i) the operation of escalation or de-escalation provisions in contracts in effect at the time of approval of the then current Fiscal Year's Annual Budget solely as a result of the passage of time or the occurrence of events beyond the control of the Company to the extent such contracts are still in effect; (ii) elections made in any current or prior Fiscal Year under contracts contemplated by the Annual Budget for the then current Fiscal Year regardless of which party to such contracts made such elections; (iii) increases or decreases in expenses attributable to the annualized effect of employee additions or reductions during the then current Fiscal Year contemplated by the Annual Budget for the then current Fiscal Year; (iv) changes in interest expense attributable to any loans made to or retired by the Company; (v) increases in overhead expenses in an amount equal to the total of overhead expenses reflected in the Annual Budget for the then current Fiscal Year multiplied by the increase in the Consumer Price Index for the then current year, but in no event more than five percent (5%); (vi) the anticipated incurrence of costs during such following Fiscal Year for any legal, accounting and other professional fees or disbursements in connection with events or changes not contemplated at the time of preparation of the Annual Budget for the then current Fiscal Year; andand * CONFIDENTIAL TREATMENT REQUEST(ED) (b) Any Annual Budget established pursuant to this Section 8.6 is herein referred to as a "Default Budget." Default Budgets shall not be in effect for more than two consecutive Fiscal Years. In the event a new Annual Budget is not approved by the time such two-year period shall have expired, the Company shall have no Annual Budget, and no Capital Contributions shall be required to be made thereafter.

Default Budget. (a) If on November Beginning with the year following the year in which the date of Commercial Operation occurs, if the Parties have not agreed upon a cost budget to be included in as part of the Operating Plan & Budget by January 1 of any Fiscal Year no Annual the year to which such Operating Plan & Budget has been approved for the following Fiscal Yearapplies, then the Annual Default Budget shall be deemed to be the approved budget until such time as the Parties agree on a cost budget for such year or the budget-related Disputes between the Parties have been resolved in accordance with Article XI. The Default Budget shall be prepared by Operator and delivered to Owners not later than seven (7) days prior to the first day of the period to which the Default Budget applies. The Default Budget, which shall be prorated for the year in which this Agreement is terminated, shall be equal to the actual Operating Expenses incurred during the preceding year (annualized in the event such preceding year is less than a full year) increased by the same percent as the percent increase, if any, in the Escalation Factor during the twelve (12) month period ending with the most recent September 30, and adjusted to (i) delete any Non-Recurring Operating Expense incurred during the preceding year, if such non-recurring expense, in the reasonable opinion of Operator, is not expected to be incurred during the applicable year, (ii) add any Non-Recurring Operating Expense scheduled to be incurred during the applicable year as such amount is set forth in the most recent Operating Plan & Budget and (iii) delete (without duplication of the adjustments made in accordance with (i) and (ii) of this Section 5.02(c)) the impact of any Emergency, Force Majeure Event, time that BSP II was not operating, or suspension of Services that occurred during the preceding year. The Operator Incentive component of the Default Budget shall be the same as the Operator Incentive component of the Operating Plan & Budget for the then current Fiscal Year, adjusted (without duplication) to reflect increases or decreases resulting from the following events, shall govern the Fiscal Year beginning on the January 1 following the aforesaid November 1, subject to the limitations set forth in Section 8.6(b) below: (i) the operation of escalation or de-escalation provisions in contracts in effect at the time of approval of the then current Fiscal Year's Annual Budget solely as a result of the passage of time or the occurrence of events beyond the control of the Company to the extent such contracts are still in effect; (ii) elections made in any current or prior Fiscal Year under contracts contemplated by the Annual Budget for the then current Fiscal Year regardless of which party to such contracts made such elections; (iii) increases or decreases in expenses attributable to the annualized effect of employee additions or reductions during the then current Fiscal Year contemplated by the Annual Budget for the then current Fiscal Year; (iv) changes in interest expense attributable to any loans made to or retired by the Company; (v) increases in overhead expenses in an amount equal to the total of overhead expenses reflected in the Annual Budget for the then current Fiscal Year multiplied by the increase in the Consumer Price Index for the then current immediately preceding year, but in no event more than five percent (5%); (vi) the anticipated incurrence of costs during such following Fiscal Year for any legal, accounting and other professional fees or disbursements in connection with events or changes not contemplated at the time of preparation of the Annual Budget for the then current Fiscal Year; and (b) Any Annual Budget established pursuant to this Section 8.6 is herein referred to as a "Default Budget." Default Budgets shall not be in effect for more than two consecutive Fiscal Years. In the event a new Annual Budget is not approved by the time such two-year period shall have expired, the Company shall have no Annual Budget, and no Capital Contributions shall be required to be made thereafter.