Common use of Recovery of Capital Costs of Project Transportation Facilities Incurred Prior to the Billing Transition Date Clause in Contracts

Recovery of Capital Costs of Project Transportation Facilities Incurred Prior to the Billing Transition Date. The amount of the capital component of the Transportation Charge for Capital Costs Incurred prior to the Billing Transition Date shall be determined in two steps as follows: (A) first, an allocation of such costs to the Contractor in accordance with subdivision (a)(2) of this article, and (B) second, a computation of annual payments to be made by the Contractor of such allocated costs and interest thereon, computed at the Project Interest Rate in accordance with subdivision (a)(3) of this article.