Common use of Equipment Cost Clause in Contracts

Equipment Cost. Costs for equipment, other than office furniture and related equipment, used in the provision of Services or otherwise provided will include all operating expenses, applicable overheads, maintenance, depreciation, return on investment and taxes, income taxes, sales or otherwise. Transportation and vehicle costs used in providing Services will be determined based on relative total hours or miles of use or on a vehicle loading applied to labor costs, as appropriate, and will include repairs, maintenance, fuel, depreciation, return on investment and, where appropriate, rental expense. In all cases, return on investment shall be calculated using a return on net assets at a rate equal to the prevailing pre-tax weighted cost of capital (economic cost of capital) authorized by the Commission(s) having jurisdiction over the retail rates of the Regulated Party that provided a Service for which a cost is being determined hereunder.