Proposed Operating Plan & Budget Sample Clauses

Proposed Operating Plan & Budget. Not later than forty-five (45) days prior to the date of Commercial Operation and thereafter not later than July 1st of each year during the Term, Operator shall prepare and deliver to Owners the Proposed Operating Plan & Budget for performing the Services during the period beginning with the date of Commercial Operation and for the remainder of the year in which such date occurs, in the first instance, and during the following year in each subsequent case. The Owners shall provide Operator with the operating schedule estimate for THE PROJECT at least thirty (30) days prior to budget submittal. The operating plan component of the Proposed Operating Plan & Budget shall include: (i) any staffing plan revisions; (ii) the Notification Matrix; (iii) a description of and plan for Non-Recurring Operating Expenses (including (A) Plant betterments and other additions, replacements and alterations, (B) major maintenance repairs and replacements) for the next year and each of the subsequent four (4) years, and (C) spare parts in the aggregate in excess of Two Hundred Fifty Thousand Dollars ($250,000); (iv) a description of the Services, and proposed budget, to be performed by an Affiliate of Operator on a cost recoverable basis during the period to which the Proposed Operating Plan & Budget applies; (v) a list of the Third-Party Suppliers to be engaged to provide major goods or services valued at over One Hundred Thousand Dollars ($100,000) during the period to which the Proposed Operating Plan & Budget applies; (vi) all cost allocations between THE PROJECT; (vii) any other information which Owners may reasonably request be included in the Proposed Operating Plan & Budget; and (viii) in preparing the Proposed Operating Plan & Budget, Operator shall separately account for capital expenditures and operating expenditures. The budget components of the Proposed Operating Plan & Budget shall be prepared on a cost basis and shall include: (1) an estimate, on a monthly as well as an annual basis, of the Operating Expenses, prepared pursuant to the Federal Energy Regulatory Commission Uniform System of Accounts, to be incurred during the applicable period in connection with performance of the Services; and (2) a reasonable contingency separately identified and quantified.