Cumulative Annual Escalation Rate definition
Cumulative Annual Escalation Rate means the Annual Escalation compounded over time with the base month being the month during which the Commercial and Financial Close Date occurs. The calculation should be performed annually in March each year of the Term as of the value for February in the CPI-U table divided by the month of Commercial and Financial Close. The Cumulative Annual Escalation Rate will apply for calculations made starting April 1st of the year the calculation was performed through March 30th of the following year. For example, the Cumulative Annual Escalation Rate for April 1, 2020 through March 30, 2021 for the Service Payments would be calculated as: Annual Escalation Rate as of February 2020 divided by the Annual Escalation Rate as of the month Commercial and Financial Close occurs.
Examples of Cumulative Annual Escalation Rate in a sentence
The Lane Rental Rate must be determined individually for each Lane Closure reported to MDOT by multiplying the base Lane Rental Rate corresponding to the Lane Rental Group for each closure by the Cumulative Annual Escalation Rate.