Common use of Predetermined Costs Clause in Contracts

Predetermined Costs. The NYISO shall pay to TC Ravenswood the amounts indicated below (“Predetermined Costs”) in five monthly installments for the relevant Capability Year, which reflect: (i) a portion of the costs to lease one and one half (1½) off-site storage tanks which the Parties understand will provide approximately 240,000 barrels of working capacity of 0.30 percent Sulfur No. 6 fuel oil (“Fuel Oil”) storage; (ii) a portion of the costs TC Ravenswood incurs to lease one large time-chartered barge, which the Parties understand will provide approximately 40,000 barrels of working capacity of Fuel Oil transportation, and the Lemon Creek dockside storage barge or an equivalent replacement of approximately 50,000 barrels of working capacity; (iii) a charge for the use of on-site storage tanks at the Ravenswood Facility; and (iv) certain ancillary fuel oil fees (e.g., labor, barge heating, tank heating, booming, testing, taxes, and carrying charges ). The NYISO shall pay TC Ravenswood for Predetermined Costs irrespective of the costs actually incurred by TC Ravenswood or the amount of Fuel Oil burned in each Capability Year: Initial Capability Year $3,607,243 Second Capability Year $3,607,243 Third Capability Year $3,607,243 TC Ravenswood shall have no claim for additional payments and neither the NYISO nor its customers shall have a claim for a refund or abatement if TC Ravenswood’s actual costs associated with any of the items identified in this Section 3.A are more or less, respectively, than the Predetermined Costs set forth herein.

Predetermined Costs. The NYISO shall pay to TC Ravenswood the amounts indicated below (“Predetermined Costs”) in five monthly installments for the relevant Capability Year, which reflect: (i) a portion of the costs to lease one and one half (1½) off-site storage tanks which the Parties understand will provide approximately 240,000 barrels of working capacity of 0.30 percent Sulfur No. 6 fuel oil (“Fuel Oil”) storage; (ii) a portion of the costs TC Ravenswood incurs to lease one large time-chartered barge, which the Parties understand will provide approximately 40,000 barrels of working capacity of Fuel Oil transportation, and the Lemon Creek dockside storage barge or an equivalent replacement of approximately 50,000 barrels of working capacity; (iii) a charge for the use of on-site storage tanks at the Ravenswood Facility; and (iv) certain ancillary fuel oil fees (e.g., labor, barge heating, tank heating, booming, testing, taxes, and carrying charges ). The NYISO shall pay TC Ravenswood for Predetermined Costs irrespective of the costs actually incurred by TC Ravenswood or the amount of Fuel Oil burned in each Capability Year: Initial Capability Year $3,607,243 Second Capability Year $3,607,243 Third Capability Year $3,607,243 TC Ravenswood shall have no claim for additional payments and neither the NYISO nor its customers shall have a claim for a refund or abatement if TC Ravenswood’s actual costs associated with any of the items identified in this Section 3.A are more or less, respectively, than the Predetermined Costs set forth herein.. Costs Per Barrel. In addition to the payment of predetermined costs established in Section 3.A, the NYISO shall pay to TC Ravenswood: (i) the commodity costs of Fuel Oil burned in compliance with I-R3 to the extent they exceed the commodity costs of burning natural gas as provided in Section 4.1.9 of the NYISO Services Tariff including applicable taxes and emission allowance fees not included in TCR’s reference bid; and (ii) operations and maintenance (“O&M”) expenses, which shall be calculated by multiplying a fixed rate defined for each Capability Year times the number of barrels of Fuel Oil burned in each month to provide Minimum Oil Service. The rates for O&M expenses under this TCR Minimum Oil Burn Agreement are as follows: Initial Capability Year $0.45/bbl Second Capability Year $0.45/bbl Third Capability Year $0.45/bbl