4
paragraph C.2, it being understood, however, that reductions
thereof will not be made which would impair the ability of any
of the Companies to meet financial commitments undertaken in
reliance on funds from this source.
5. Mechanism for Operating Development Funds
a) PEPCO and the New Generating Company shall each collect from
"
China Light monthly, as a separate and identified element of
their billings for electricity sold, the amounts of Development
Fund Additions, if any, included in the tariff for the respective
companies for that month. The amounts so collected shall be
deducted from the gross revenue of the receiving company and
entered as a liability in a Development Fund account on its
books.
b) Likewise, the amounts collected from consumers by China Light
resulting from the tariff additions referred to in paragraph 4,
above, shall be deducted from its gross revenue and after
reduction of said amounts by the payments made to PEPCO and the
new generating company as Development Fund Additions, pursuant
to paragraph 5(a) above, shall be entered as a liability in a
Development Fund account on the books of China Light.
Should any of the Companies, after meeting all foreseeable
obligations and after earning the Permitted Return, have or
anticipate a cash surplus, the Development Fund on its books
may be reduced through initiation by that company of a specific
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