Administrative Services Agreement for Allocated and Direct Charge Services
Exhibit 99.25
Exhibit C
Administrative Services Agreement for Allocated and Direct Charge Services
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Parties:
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CEG and CENG
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Pricing:
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$55 million less $7.5 mm credit for “Consumption Based Pricing” (CBP) costs (both subject to 2% escalator beyond 2011) plus CBP costs in excess of $7.5 million
Examples of application of formula:
Example 1:
In year 1, if CBP costs are $10 mm, then:
Cost: $47.5 plus $2.5 = $50 mm expense
Example 2:
In year 1, if CBP costs are $15 mm, then:
Cost: $47.5 plus $7.5 = $55 mm expense
Example 3 (5 years later):
$55 mm inflated to $60.7
$7.5 mm credit inflated to $8.3
If CBP costs are $15 mm (in year 5), then:
Cost: $52.4 plus 6.7 = $59.1 mm expense
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Term:
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January 1, 2011 through December 31, 2017
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Scope:
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Scope and quantity of services as presently provided.
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Other terms:
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To be negotiated in good faith with all deliberate speed after the date of the Master Agreement on an arm’s length basis.
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