Reasonableness of Rates. This Contract was established between the Parties hereto, taking into account their present and projected needs for Requirements Service, the costs of the facilities contemplated by this Contract and the alternatives thereto. The Parties agree that the rates established hereunder are just and reasonable under the current circumstances and reflect their determination of what would be just and reasonable under future conditions reasonably contemplated by them. The rates take into account specific benefits achieved by the Parties through this Contract and not otherwise available to the Parties, and reflect the sharing of those benefits without undue discrimination against any current or future customer of the Seller. The charges to be paid by the Member to the Seller for Requirements Service provided under this Contract are intended to be adjusted only pursuant to and in accordance with the rates.
Reasonableness of Rates. Xxxxx agrees that the Transfer Fees charged by Xxxx and policies defined in this Agreement are just and reasonable, and do not adversely affect the public interest. The Transfer Fees charged by Aqua are subject to modification as provided herein. .
Reasonableness of Rates. Seguin and Springs Hill agree that the CCN Transfer Area Fee and Active CCN Transfer Area Fee charged by Springs Hill and policies defined in this Agreement are just and reasonable, and do not adversely affect the public interest.
Reasonableness of Rates. Bastrop agrees that the Transfer Fees charged by Xxxx and policies defined in this Agreement are just and reasonable, and do not adversely affect the public interest. The Transfer Fees charged by Aqua are subject to modification as provided herein.
Reasonableness of Rates. 7 4.2.1 Fixed Rate Contract......................................7 4.2.2 Formulaic Rate...........................................7 4.2.3 Regulatory Review........................................7 4.2.4
Reasonableness of Rates. Analysis of the reasonableness of the settlement must begin with the rates themselves. The proposed rates under the PSA were originally forecasted to be:43 Current 2004 2005 2006 2007 2008 Bundled Rate (cents/Kwh) 13.87 13.36 13.32 13.16 13.18 12.92 The initial revenue reduction in 2004 was updated by PG&E, which more recently forecast the revenue reduction in 2004 to be approximately $670 million, resulting in a projected 12.91 cents per kWh rate for 2004. (Ex. 117b, p.10-3.) In evaluating the rate impacts of a settlement it is important to bear in mind that the ratemaking process contains significant elements of art as well as science. All ratemaking proceedings are inherently complex undertakings that require many judgment calls. Projected system average rates under the settlement are expected to be lower than current rates. Rates under the settlement agreement lie between the rates ratepayers would see under PG&E’s disaggregation plan and the Joint Amended Plan were either to be implemented. (Ex. 122, p. 10, Staff/Xxxxxx) Accordingly, as to anticipated rates, the MSA satisfies our concern that the settlement fall within the “reasonable range of outcomes” that would result had the case proceeded to trial. (See, Southern Calif. Edison Co., D.00-00-000.) In any case, the MSA will not be a major driver of PG&E’s rates in the near term. The costs associated with the MSA – principally the costs associated with the regulatory asset – are only a small share of PG&E’s total costs, and are dwarfed even by such relatively small cost components as transmission costs. The proposed rate reduction is reasonable.
Reasonableness of Rates
