Common use of Adjustment of the Base Price Clause in Contracts

Adjustment of the Base Price. Effective January 1, 1990, the Base Price of the Initial Commitment ($1.55) shall be adjusted by multiplying it by the Price Index. The result will be the “Annual Base Price” for 1990. This process of calculating the applicable Annual Base Price for each Year shall be repeated annually until the Initial Commitment is exhausted. When the Initial Commitment is exhausted, the Base Price for all additional Gas ($1.35) sold subsequently shall be adjusted by multiplying it by the Price Index. The result will be the “Annual Base Price” for the first Year for all additional Gas delivered and sold. This process of calculating the applicable Annual Base Price for each Year shall be repeated annually until the Annual Additional and Final Additional Commitments are exhausted. Changes in the Annual Base Price are subject to limitation. If a calculated change in the Annual Base Price is limited by any or all of Sections 10.4, 10.5, or 10.6, the resulting price shall be called the “Limited Annual Base Price.” Any limitations shall be determined by first applying Section 10.5, then Section 10.4, and finally Section 10.6.