11)
If the gross tariff revenues of China Light in any year shall be
less than the total for the Companies of the amounts specified in
a), b) and c) of paragraph B.2 1) above and the minimum Permitted
Return specified in paragraph B.1, such deficiency shall be deducted
from the Balancing Fund.
3.
An annual charge will accrue which shall be equal to 9% per annum of the
average of the opening and closing balances of the Balancing Fund and
the Development Funds for each year. As referred to in paragraph B.1
above, this charge will be deducted from the Permitted Return and will be
credited on China Light's books to a Rate Reduction Reserve which will be
liquidated by reductions in charges to consumers. Ordinarily, reductions
will be applied by means of discounts or rebates in the immediately
following year.
Amounts carried in the Rate' Reduction Reserve shall not
exceed the charge for the current year and the preceding three years.
4.
The balances in the Balancing Fund and the Development Funds may be reduced
by rate reductions whenever revenues would otherwise be at a level such
that after meeting all foreseeable obligations and earning the Permitted
Return surplus cash would accumulate in the combined enterprise.
Provisions for Financing
1.
China Light, Esso and possibly other corporate or individual shareholders
will provide the equity capital of the proposed new Generating Company
in amounts to be agreed among the contributing parties.