Common use of Routine True-Up Adjustments Clause in Contracts

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 underlying the FTA Charges, including energy usage volume, the rate of delinquencies and write-offs, and estimated expenses and fees of the Note Issuer, the Trust and the Infrastructure Bank to the extent not fixed; (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 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 an Anniversary True-Up Mechanism Advice Letter with the CPUC, substantially in the form attached hereto as Exhibit D; 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] [Alternative 2: file an Anniversary True-Up Mechanism Advice Letter with the CPUC, substantially in the form attached hereto as Exhibit D, --------- stating that no adjustment to the FTA Charges is necessary because either (A) the FTA Charges were adjusted during the most recent calendar quarter or (B) there is no Variance between the Adjusted Principal Balance and the Projected Principal Balance]. (3) In the case of a True-Up Adjustment pursuant to a Routine Annual True-Up Mechanism Advice Letter, the Servicer shall implement the revised FTA Charges, if any, as of the first day of the following year. (4) In the case of a True-Up Adjustment pursuant to an Anniversary True-Up Mechanism Advice Letter, the Servicer shall implement the revised FTA Charges, if any, on [the first calendar day of the next Quarter following] [or before 90 days after] the Financing Order Anniversary Date.

Routine True-Up Adjustments. (i) With respect to each Series of Storm-Recovery Bonds, the Servicer shall file a Routine Annual True-Up Adjustments. ----------------------------------- Adjustment Request with the Commission substantially in the form of Exhibit B hereto (1the "Routine True-Up Adjustment Request") On on or before ________ and ________ of each Annual year. For the purpose of preparing each Routine True-Up Adjustment DateRequest, 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 calculation of the Storm-Recovery Charges, including electric energy usage volumevolume (based upon the most recent forecasts used by the Servicer for all of its corporate purposes), the rate of delinquencies and writecharge-offs, estimated expenses, and fees of offs based upon 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 underlying the FTA Charges, including energy usage volume, the rate of delinquencies and write-offs, Servicer's most recent experience and estimated expenses and fees of the Note Issuer, the Trust and the Infrastructure Bank Issuer to the extent not fixed; (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 Subaccount Balance, in each case within twelve months for the upcoming or then-current Remittance Period (as applicable); (B) calculate the Bond Revenue Requirement for such Series of Storm-Recovery Bonds upon such updated assumptions; and (C) determine the Storm-Recovery Charges to be charged during such Remittance Period (or the remainder of such Remittance Period) based upon such requirements and determine the Tax Charges to be charged during such Remittance Period. (ii) If the Storm-Recovery Bonds of any Series are Outstanding on or after the Scheduled Final Payment Date of such revised FTA Charges go into effect (and with respect to any Series, the Servicer shall also file quarterly Routine True-Up Adjustments occurring with the Commission, commencing, in the case of the Bonds, on _______, _______. (iii) If the Storm-Recovery Bonds of any Series are Outstanding on or after the Scheduled Maturity Date, determine the revised FTA Charges date 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) one year before the Final Maturity Date); (E) Date of such Series, the Servicer shall also file an Anniversary monthly Routine True-Up Mechanism Advice Letter Adjustments with the CPUCCommission commencing, substantially in the form attached hereto as Exhibit D; and case of the Bonds, on ______, ___. (Fiv) The Servicer shall take all reasonable actions --------- and make all reasonable efforts to secure such any Periodic Adjustments in clauses (i), (ii) and (iii) above (each, a "Routine True-Up Adjustment"). Each routine true-up filing shall be made no later than sixty (60) days prior to the proposed effective date of any adjustment. If the Commission determines that there is any mathematical error in any Routine True-Up Adjustment and to enforce Request, 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] [Alternative 2: file an Anniversary True-Up Mechanism Advice Letter with the CPUC, substantially in the form attached hereto as Exhibit D, --------- stating that no adjustment to the FTA Charges is necessary because either (A) the FTA Charges were adjusted during the most recent calendar quarter or (B) there is no Variance between the Adjusted Principal Balance and the Projected Principal Balance]. (3) In the case of Servicer will promptly refile a corrected Routine True-Up Adjustment pursuant to a Routine Annual True-Up Mechanism Advice Letter, the Servicer shall implement the revised FTA Charges, if any, as of the first day of the following yearRequest. (4) In the case of a True-Up Adjustment pursuant to an Anniversary True-Up Mechanism Advice Letter, the Servicer shall implement the revised FTA Charges, if any, on [the first calendar day of the next Quarter following] [or before 90 days after] the Financing Order Anniversary Date.

Routine True-Up Adjustments. (i) With respect to each Series of Storm-Recovery Bonds, the Servicer shall file a Routine Annual True-Up Adjustments. ----------------------------------- Adjustment Request with the Commission substantially in the form of Exhibit B hereto (1the "Routine True-Up Adjustment Request") On on or before March 31 and September 30 of each Annual year, commencing September 30, 2007. For the purpose of preparing each Routine True-Up Adjustment DateRequest, 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 calculation of the Storm-Recovery Charges, including electric energy usage volumevolume (based upon the most recent forecasts used by the Servicer for all of its corporate purposes), the rate of delinquencies and write-offs, estimated expenses, and fees of charge- offs based upon 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 underlying the FTA Charges, including energy usage volume, the rate of delinquencies and write-offs, Servicer's most recent experience and estimated expenses and fees of the Note Issuer, the Trust and the Infrastructure Bank Issuer to the extent not fixed; (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 Subaccount Balance, in each case within twelve months for the upcoming or then-current Remittance Period (as applicable); (B) calculate the Bond Revenue Requirement for such Series of Storm-Recovery Bonds upon such updated assumptions; and (C) determine the Storm-Recovery Charges to be charged during such Remittance Period (or the remainder of such Remittance Period) based upon such requirements and determine the Tax Charges to be charged during such Remittance Period. (ii) If the Storm-Recovery Bonds of any Series are Outstanding on or after the Scheduled Final Payment Date of such revised FTA Charges go into effect (and with respect to any Series, the Servicer shall also file quarterly Routine True-Up Adjustments occurring with the Commission, commencing, in the case of the Bonds, on or before August 2, 2019. (iii) If the Storm-Recovery Bonds of any Series are Outstanding on or after the Scheduled Maturity Date, determine the revised FTA Charges date 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) one year before the Final Maturity Date); (E) Date of such Series, the Servicer shall also file an Anniversary monthly Routine True-Up Mechanism Advice Letter Adjustments with the CPUCCommission commencing, substantially in the form attached hereto as Exhibit D; and case of the Bonds, on or before August 2, 2020. (Fiv) The Servicer shall take all reasonable actions --------- and make all reasonable efforts to secure such any Periodic Adjustments in clauses (i), (ii) and (iii) above (each, a "Routine True-Up Adjustment"). Each routine true-up filing shall be made no later than sixty (60) days prior to the proposed effective date of any adjustment. If the Commission determines that there is any mathematical error in any Routine True-Up Adjustment and to enforce Request, 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] [Alternative 2: file an Anniversary True-Up Mechanism Advice Letter with the CPUC, substantially in the form attached hereto as Exhibit D, --------- stating that no adjustment to the FTA Charges is necessary because either (A) the FTA Charges were adjusted during the most recent calendar quarter or (B) there is no Variance between the Adjusted Principal Balance and the Projected Principal Balance]. (3) In the case of Servicer will promptly refile a corrected Routine True-Up Adjustment pursuant to a Routine Annual True-Up Mechanism Advice Letter, the Servicer shall implement the revised FTA Charges, if any, as of the first day of the following yearRequest. (4) In the case of a True-Up Adjustment pursuant to an Anniversary True-Up Mechanism Advice Letter, the Servicer shall implement the revised FTA Charges, if any, on [the first calendar day of the next Quarter following] [or before 90 days after] the Financing Order Anniversary Date.