Common use of Deferral Option Clause in Contracts

Deferral Option. (1) The actual installation date of each Additional Unit will be subject to load growth. Near the time for and before making a firm commitment on a contract for procurement of an Additional Unit to ensure that it will be commissioned at the original scheduled time to meet the expected growth in demand, HEC will assess the actual installation and commissioning schedule in the light of the latest forecast demand in consultation with the Government. (2) HEC may defer installation of the Additional Unit after they have entered into a firm commitment on a contract for procurement of the M&E equipment of the Additional Unit, only if they are able to demonstrate to the Government that the net present value (NPV) of the overall cost to consumers of the Additional Unit with such a deferral would be lower than the NPV, incorporating the Excess Capacity Adjustment, assuming the original installation schedule were not changed. (3) For the purpose of calculating the NPV, the cost components for calculating the NPVs include all items associated with the deferred installation of the Additional Unit and the return to shareholders. The discount rate to be used is equal to that adopted in the latest approved Development Plan.

Deferral Option. (1) The actual installation date of each Additional Unit will be subject to load growth. Near the time for and before making a firm commitment on a contract for procurement of an Additional Unit to ensure that it will be commissioned at the original scheduled time to meet the expected growth in demand, HEC the Companies will assess the actual installation and commissioning schedule in the light of the latest forecast demand in consultation with the Government. (2) HEC The Companies may defer installation of the Additional Unit after they have entered into a firm commitment on a contract for procurement of the M&E equipment of the Additional Unit, ,only if they are able to demonstrate to the Government that the net present value (NPV) of the overall cost to consumers of the Additional Unit with such a deferral would be lower than the NPV, NPV ,incorporating the Excess Capacity Adjustment, assuming the original installation schedule were not changed. (3) For the purpose of calculating the NPVNPV , the cost components for calculating the NPVs NPV s include all items associated with the deferred installation of the Additional Unit and the return to shareholders. The discount rate to be used is equal to that adopted in the latest approved Development Plan.

Deferral Option. (1) The actual installation date of each Additional Unit will be subject to load growth. Near the time for and before making a firm commitment on a contract for procurement of an Additional Unit to ensure that it will be commissioned at the original scheduled time to meet the expected growth in demand, HEC will assess the actual installation and commissioning schedule in the light of the latest forecast demand in consultation with the Government.Government.‌ (2) HEC may defer installation of the Additional Unit after they have entered into a firm commitment on a contract for procurement of the M&E equipment of the Additional Unit, only if they are able to demonstrate to the Government that the net present value (NPV) of the overall cost to consumers of the Additional Unit with such a deferral would be lower than the NPV, incorporating the Excess Capacity Adjustment, assuming the original installation schedule were not changed.changed.‌ (3) For the purpose of calculating the NPV, the cost components for calculating the NPVs include all items associated with the deferred installation of the Additional Unit unit and the return to shareholders. The discount rate to be used is equal to that adopted in the latest approved Development Plan.Plan.‌

Deferral Option. ‌ (1) The actual installation date of each Additional Unit will be subject to load growth. Near the time for and before making a firm commitment on a contract for procurement of an Additional Unit to ensure that it will be commissioned at the original scheduled time to meet the expected growth in demand, HEC the Companies will assess the actual installation and commissioning schedule in the light of the latest forecast demand in consultation with the Government.Government.‌ (2) HEC The Companies may defer installation of the Additional Unit after they have entered into a firm commitment on a contract for procurement of the M&E equipment of the Additional Unit, only if they are able to demonstrate to the Government that the net present value (NPV) of the overall cost to consumers of the Additional Unit with such a deferral would be lower than the NPV, incorporating the Excess Capacity Adjustment, assuming the original installation schedule were not changed.changed.‌ (3) For the purpose of calculating the NPV, the cost components for calculating the NPVs include all items associated with the deferred installation of the Additional Unit and the return to shareholders. The discount rate to be used is equal to that adopted in the latest approved Development Plan.Plan.‌