Natural Gas Transmission and Distribution Systems Sample Clauses

Natural Gas Transmission and Distribution Systems. (1) Progress Energy's subsidiary, Carolina Power & Light Company ("CP&L"), will design, construct, operate, maintain and administer the transmission and distribution systems necessary to serve the Service Territory (the "Facilities"), including but not limited to procuring natural gas supply and capacity, metering, billing, finance, administration, customer care, marketing, and planning, pursuant to the terms of the Construction, Operation and Maintenance Agreement between the Company and CP&L of even date herewith (the "CO&M Agreement"). The compensation to be paid by the Company to CP&L for performance of its duties under the CO&M Agreement shall, in addition to allowing CP&L to recover all just and reasonable expenses incurred in providing such services, allow CP&L to recover its just and reasonable system design, engineering and market analysis costs incurred prior to the execution of the CO&M Agreement and this Agreement. All of the functions undertaken by CP&L pursuant to the CO&M Agreement may be undertaken by, or assigned to, Company employees or Third Parties as CP&L may determine from time to time. (2) APEC shall be responsible for studying and determining the potential for business expansion and economic development in, as well as recommending proposed natural gas facility expansions to serve new load in, the Service Territory, and to that end will perform the specific duties set forth in the terms of the Services Agreement between the Company and APEC of even date herewith (the "Services Agreement"). For performance of its duties under the Services Agreement, APEC will be reimbursed as follows (as more fully set forth in the Services Agreement): (i) APEC shall submit to the Company an annual budget and cash flow statement demonstrating APEC's total costs as well as a justification on an activity basis of those costs (to facilitate NCUC standards of prudence). From January 1, 2001 through December 31, 2004 APEC's proposed annual budget shall be no greater than $330,660.00. Subsequent to December 31, 2004, APEC may increase its annual budget of $330,660.00 by an amount equal to the total increase in the "Consumer Price Index" prepared by the U.S. Department of Labor, Bureau of Labor Statistics (often known as the "cost of living index") or its equivalent, from January 1, 2001 to December 31, 2004 and from January 1st to December 31st each year thereafter. For example, assuming the index was 100 on January 1, 2001 and the index adjusted to the sam...
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Related to Natural Gas Transmission and Distribution Systems

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