Common use of Transportation Charge Capital Component for Costs Incurred On or After the Billing Transition Date Clause in Contracts

Transportation Charge Capital Component for Costs Incurred On or After the Billing Transition Date. The provisions of this subdivision (b) shall apply only to Capital Costs Incurred on or after the Billing Transition Date. (1) The amount of the capital component of the Transportation Charge for costs Incurred on or after the Billing Transition Date shall be determined in three steps as follows: (A) first, an allocation of Capital Costs to the Contractor as provided in subdivision (b)(2) of this article, (B) second, a determination of the type and source of payment of each Capital Cost as provided in subdivision (b)(3) of this article, and (C) third, a computation of the annual payment to be made by the Contractor as provided in subdivision (b)(4) and (b)(5) of this article. (2) The total amount of Capital Costs of each aqueduct reach to be returned to the State under the Transportation Charge for costs Incurred on or after the Billing Transition Date shall be allocated among all Contractors entitled to delivery of Project Water from or through the reach by the proportionate use of facilities method of cost allocation and in accordance with Article 23(c) and subdivision (c)(1) of this article.