REPLACEMENT RESERVE ACCOUNTReplacement Reserve Account Agreement • October 16th, 2009
See the Regulatory Agreement for a listing of Replacement Reserve eligible items. If there is sufficient surplus cash in the operations account to pay for the replacement item, that surplus must be used rather than depleting the Reserve account. The reserve is not intended to pay for routine maintenance costs or additional improvements to the property. These should be included in the project's budget and be paid from operating income.
