Common use of Priority of Bill Credit Application Clause in Contracts

Priority of Bill Credit Application. If during a Billing Period, a Financial Interest Customer’s Bill Credits are greater than zero (0), then the Financial Interest Customers’ bill will be calculated and Bill Credits applied in accordance with this agreement. For each Financial Interest Customer account identified in Exhibit 1 or Exhibit 2, current month Bill Credits will be applied to the amounts due on the account first before application of any Unused Credits. If the amount due on the account is greater than the current month Bill Credits plus all available Unused Credits for the account, the Financial Interest Customer will be billed on the remaining amount in excess of all applied Bill Credits and Unused Credits. Bill Credits in excess of the charges due on an account for any Billing Period will be added to the total Unused Credits amount for such account. If the cascading allocation method is selected, Unused Credits will be stored on the account listed first on Exhibit 2 and will be used in cascading order in subsequent billing periods. If Unused Credits are used during a Billing Period then the total Unused Credits will be reduced by an equivalent amount on a first in, first out basis.