Administrative Services Agreement for Allocated and Direct Charge ServicesAdministrative Services Agreement • October 28th, 2010 • EDF Inc. • Electric services
Parties: CEG and CENG Pricing: $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 Term: January 1, 2011 through December 31, 2017 Scope: Scope and quantity of services as presently provided. Other terms: To be negotiated in good faith with all deliberate speed after the date of the Master Agreement on an arm’s length basis.
