Flow Adjustment Computation (“FAC”) Clause Samples

Flow Adjustment Computation (“FAC”). The energy charges under this Service Tariff and the applicable Service Tariffs associated with the St. ▇▇▇▇▇▇▇▇ Hydroelectric Project, in the aggregate, are subject to a credit or surcharge pursuant to a FAC in any rate year following a calendar year for which the Hydroelectric Project Rate Stabilization Reserve (“RSR”) is greater than $+25 million, or less than $-25 million, respectively. The RSR will be used to ensure rate stability and cost recovery and its level will be determined and any credit or surcharge for the succeeding rate year will be calculated after the prior calendar year’s costs and generation levels are known. Any credit or surcharge will be applied on a uniform basis to the monthly billing statements rendered pursuant to this Service Tariff during the succeeding rate year. The FAC is inapplicable in any rate year succeeding a calendar year at the end of which the RSR is within the $+25 million to $-25 million range. If at the end of any calendar year, the RSR is determined to exceed $+25 million, such excess amount will be credited pro-rata to Customers during the succeeding rate year pursuant to the FAC. If the RSR at the end of any calendar year is determined to be less than $-25 million, the difference below $-25 million will be surcharged pro-rata to Customers during the succeeding rate year pursuant to the FAC. To the extent that there is a balance in the RSR (positive or negative) on the effective date of service under the applicable Agreement, arising out of service under a prior agreement for the sale of Project power and energy, that RSR balance shall be carried forward and maintained as the balance as of the effective date of service under such applicable Agreement. I. Applicability 3 II. Abbreviations and Terms 3 III. Monthly Rates and Charges A. Monthly Base Rates 5 B. Monthly Demand Charge 5 C. Monthly Energy Charge 5