Common use of Priority of Xxxx Credit Application Clause in Contracts

Priority of Xxxx Credit Application. If during a Billing Period, a Customer’s Xxxx Credits are greater than zero (0), then the Customers’ xxxx will be calculated and Xxxx Credits applied in accordance with this agreement. For each customer account identified in Exhibit 1 or Exhibit 2, current month Xxxx 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 Xxxx Credits plus all available Unused Credits for the account, the Customer will be billed on the remaining amount in excess of all applied Xxxx Credits and Unused Credits. Xxxx 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.