Depreciation Expenses. Depreciation Expenses" are provisions for depreciation and amortization for the Subject Resource, as properly recorded in Accounts 403, 404, 405, 406, and 407, including only:
Depreciation Expenses. Depreciation expenses for LPG Cars owned by CPC are charged to TP&S and are captured on an LPG Car-by-LPG Car basis. These LPG Car-specific costs will be allocated to WPC for Propane Cars. Depreciation costs are calculated on CPC's standard calculation for assets of this class. (*See Note 2 below). GENERAL & ADMINISTRATIVE EXPENSES --------------------------------- General and administrative expenses ("G&A") include (but are not limited to) labor and burden, office expense, travel, miscellaneous expense, and computer systems charges for LPG Car administration. G&A is divided equally among all CPC Cars. As of March 1, 1996, there were approximately 2000 CPC Cars. A portion of G&A is charged Monthly to WPC based on the number of CPC Cars that are Propane Cars. (*See Note 1 and Note 3 below.) G&A statements are generated and billed internally by CPC, and will be allocated to WPC on an equivalent basis to other internal customers served by TP&S. MILEAGE CREDITS --------------- Mileage credits (also referred to as "car hire credits") received are captured in RAS on a CPC Car-by-CPC Car basis. (*See Note 1 below.) These credits shall be rebated to WPC for CPC Cars that are Propane Cars. Due to delays in processing mileage data by the AAR, mileage credits are paid three (3) Months in arrears. RELAM is currently used for auditing mileage credit payments to ensure that credits are received when due. RELAM's fee is based on a percentage of actual underpayments recovered. No reverse audit is presently performed - i.e., if mileage credits are overpaid, there is no mechanism for detecting the overpayment. If CPC is billed for overpayment of mileage credits, WPC will be responsible for rebating the full amount of the overpayment attributable to Propane Cars after receipt, in accordance with the billing procedures set forth in Article 7 of the Agreement. (*See Note 1 below.)
Depreciation Expenses
