Operational Cost Avoidance. The following parameters, methodologies, and/or calculations were used in determining the Operational Costs and/or Cost Avoidance due to the Retrofit and Support Services implementation and are agreed to be reasonable and may be used in the calculation of Savings. Operational Costs Savings methodology and/or calculation details are attached hereto and are incorporated herein as the exhibits outlined in the following table.
Operational Cost Avoidance. The agreed-upon Operational Cost Avoidance as described in Attachment G (Schedule of Savings) will be deemed realized upon execution of this Agreement and will begin to accrue on the date of the completion and acceptance of each Retrofit improvement or on the commencement date for Support Services (Article 6.2.3), whichever comes first. These Savings are representative of information provided by the CUSTOMER consisting of either whole or partial budgeted operational costs and as such, it is hereby understood and agreed that the CUSTOMER is wholly responsible for assuring that these budgeted Operational Costs are accurate and achievable. Implementation of this Agreement (including, as applicable, the Support Services Agreement) allows for the reallocation or defrayal of such budgeted Operational Costs. The CUSTOMER acknowledges and agrees that, if it did not enter into this Agreement, it would have to take future steps to achieve the same ends as does the work included in Attachment A of this contract, and that, in doing so, it would incur operational costs of at least equal to the operational costs stated in Attachment G per year over the life of the contract. The CUSTOMER agrees that, by entering into this agreement, it will avoid future operational costs in at least this amount.
Operational Cost Avoidance. The agreed-upon Operational Cost Avoidance as described in Attachment E (Schedule of Savings) will be deemed realized upon execution of this Agreement and will begin to accrue on the date of the completion and acceptance of each Retrofit improvement. These Savings are representative of information provided by the CUSTOMER consisting of either whole or partial budgeted operational costs and as such, it is hereby understood and agreed that the CUSTOMER is wholly responsible for assuring that these budgeted Operational Costs are accurate and achievable.
