Mandatory Storm Recovery Charge Adjustments. The Servicer will calculate and make at least semi-annual Storm Recovery Charge Adjustments as of each Adjustment Date commencing with the first Adjustment Date as follows:
(i) update the data and assumptions underlying the calculation of the Storm Recovery Charges, including projected Base Rate Revenue for each Customer Class during each of Calculation Period A and Calculation Period B and including principal, interest and estimated expenses and fees of the Issuer to be paid during such Calculation Period, the Weighted Average Days Sales Outstanding and write-offs taking into account cash on deposit in the Excess Funds Subaccount and outstanding receivables during such Calculation Period;
(ii) determine the Periodic Payment Requirements and Periodic Billing Requirement for each of Calculation Period A and Calculation Period B based on such updated data and assumptions;
(iii) for each of Calculation Period A and Calculation Period B, determine the allocation of the Periodic Billing Requirement across the Customer Classes;
(iv) for each of Calculation Period A and Calculation Period B, calculate the rate (expressed as a percent) for each Customer Class (the “Storm Recovery Charge Rate”) determined by dividing the Periodic Billing Requirement for such Customer Class by the projected Base Rate Revenue for such Customer Class, all in accordance with the terms of the Financing Order, the Rate Schedule Rider and any other tariffs filed pursuant thereto, including using the allocation factors approved by the LPSC in the Financing Order (as may be updated in a future base rate proceeding) and the attachments thereto (including the allocations between the transmission and distribution Functions and among the Customer Classes);
(v) to ensure enough Storm Recovery Charges collections to satisfy the Periodic Billing Requirement for each Calculation Period for each Customer Class, determine the higher of the two Storm Recovery Charge Rates calculated pursuant to clause (iv) for such Customer Class (each such higher Storm Recovery Charge Rate, an “Adjusted Storm Recovery Charge Rate”); and
(vi) file the Adjusted Storm Recovery Charge Rate for each Customer Class with the LPSC not less than fifteen (15) days prior to the first billing cycle of the SWEPCO revenue month in which the revised Storm Recovery Charges will be in effect; provided, however, that to the extent any Storm Recovery Bonds remain Outstanding twelve (12) months before the Scheduled Final Payment Date of...
