Routine True-Up Adjustments Clause Samples
The Routine True-Up Adjustments clause establishes a process for regularly reconciling and correcting financial or operational discrepancies between parties, such as differences in estimated versus actual costs or quantities delivered. Typically, this clause outlines a schedule (monthly, quarterly, etc.) for reviewing records and making necessary adjustments to payments or accounts to reflect the true values. Its core practical function is to ensure accuracy and fairness in ongoing transactions, preventing disputes and maintaining balanced accounts over time.
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Routine True-Up Adjustments. (a) With respect to each series of Environmental Control Bonds, the Servicer shall file a True-Up Adjustment Filing with the PSCWV at the following times: (i) at least 15 days prior to each Semi-Annual True-Up Adjustment Date; and (ii) at least 15 days prior to each Quarterly True-Up Adjustment Date and each Monthly True-Up Adjustment Date.
(b) For the purpose of filing any Semi-Annual True-Up Adjustment Filing, the Servicer shall (i) update assumptions of projected future usage and demand of electricity by Customers, expected delinquencies and Write-offs and future expenses relating to Environmental Control Property and the Environmental Control Bonds; (ii) calculate the Periodic Bond Payment Requirement based upon such updated assumptions; and (iii) determine the Environmental Control Charge to be charged on and after the applicable True-Up Adjustment Date.
(c) Each True-Up Adjustment Filing shall be substantially in the form of Annex 1 to this Servicing Agreement.
(d) The Servicer shall (i) take all reasonable actions and make all reasonable efforts in order to effectuate any Routine True-Up Adjustment to the Environmental Control Charge and (ii) promptly send to the Indenture Trustee copies of all material notices and documents relating to such Routine True-Up Adjustment.
(e) On the same date that the Servicer files any True-Up Adjustment Filing with the PSCWV, if the Routine True-Up Adjustment is intended to result in an increase in the amount of the Environmental Control Charge, the Servicer shall give public notice through the publication of a Class I legal advertisement in Kanawha County, will respond to any comments to such publication and will attend any hearing held in connection with any such True-Up Adjustment Filing.
Routine True-Up Adjustments. (i) Routine Annual True-Up Adjustments. -----------------------------------
(1) On or before each Annual Adjustment Date, the Servicer shall: (A) calculate the Variance, if any, between the Adjusted Principal Balance and the Projected Principal Balance as of the next succeeding Payment Date; (B) estimate collections through the December 31 immediately following such Annual Adjustment Date and through December 31 of the year following the year of such Annual Adjustment Date; (C) update the assumptions underlying the FTA Charges, including energy usage volume, the rate of delinquencies and write-offs, estimated expenses, and fees of the Note Issuer, the Trust and the Infrastructure Bank to the extent not fixed, and the Collections Curves; (D) determine the revised FTA Charges that would restore: (1) the Principal Balance to the Projected Principal Balance (2) the Overcollateralization Amount to the Projected Overcollateralization Subaccount Balance, (3) the Capital Subaccount Balance to the Required Capital Level, and (4) the Reserve Subaccount Balance to the Projected Reserve Subaccount Balance, in each case within twelve months after such revised FTA Charges go into effect (and with respect to any True- Up Adjustments occurring after the Scheduled Maturity Date, determine the revised FTA Charges that would be sufficient to retire the unpaid Principal Balance within the earlier of (x) the date which is twelve months after the Scheduled Maturity Date and (y) the Final Maturity Date); (E) file a Routine Annual True-Up Mechanism Advice Letter with the CPUC, substantially in the form attached hereto as Exhibit C, to notify the CPUC of the FTA Charges for the coming year; and (F) take all reasonable actions and make all reasonable efforts to secure such True-Up Adjustment and to enforce the provisions of the Statute which obligate the CPUC to approve rates at levels sufficient to recover the FTA Payments in accordance with the Expected Amortization Schedule.
(2) Each year on the date that is fifteen days before the Financing Order Anniversary Date (or if such date is not a Business Day, on the Business Day immediately preceding such date), the Servicer shall: [Alternative 1: (A) calculate the Variance, if any, between the Adjusted Principal Balance and the Projected Principal Balance as of the next succeeding Payment Date; (B) estimate collections through the end of the Quarter in which the Financing Order Anniversary Date occurs; (C) update the assumptions unde...
Routine True-Up Adjustments. (i) With respect to each Series, the Servicer shall file a Routine True-Up Adjustment Request with the MPSC in accordance with the 45-day schedule and the methodology approved by the Financing Order to ensure the expected recovery of sufficient amounts to timely provide all payments of debt service and other required amounts and charges in connection with the Securitization Bonds. For the purpose of preparing a Routine True-Up Adjustment Request pursuant to this Section 4.01(b)(i), the Servicer shall: (A) update the assumptions underlying the calculation of the SB Charge, including energy usage volume, the rate of charge-offs and estimated expenses and fees of the Issuer to the extent not fixed, in each case for the Remittance Period beginning on [ ] of such year; (B) update the calculation of Weighted Average Days Outstanding; (C) determine the Required Debt Service for such Remittance Period based upon such updated assumptions; and (D) determine the SB Charge to be charged during such Remittance Period based upon such Required Debt Service.
(ii) With respect to each Series, beginning on the date that is twelve (12) months prior to the Expected Final Payment Date of the final Class of such Series and continuing through the Final Maturity Date of such Class, the Servicer shall file a Routine True-Up Adjustment Request with the MPSC at least 45 days prior to the end of any calendar quarter at such times as it may reasonably determine to meet the Required Debt Service for the then current Remittance Period.
(iii) The Servicer shall take all reasonable actions and make all reasonable efforts to secure any Periodic Adjustments in clauses (i) and (ii) above (each, a "Routine True-Up Adjustment").
Routine True-Up Adjustments. (a) With respect to each series of Environmental Control Bonds, the Servicer shall file a True-Up Adjustment Filing with the PSCWV at the following times: (i) at least 15 days prior to each Semi-Annual True-Up Adjustment Date; and (ii) at least 15 days prior to each Quarterly True-Up Adjustment Date and each Monthly True-Up Adjustment Date.
(b) For the purpose of filing any Semi-Annual True-Up Adjustment Filing, the Servicer shall (i) update assumptions of projected future usage and demand of electricity by Customers, expected delinquencies and Write-offs and future expenses relating to Transferred Environmental Control Property and the Environmental Control Bonds; (ii) calculate the Periodic Bond Payment Requirement based upon such updated assumptions; and (iii) determine 8 the Environmental Control Charge to be charged on and after the applicable True-Up Adjustment Date.
Routine True-Up Adjustments