Common use of Basis of Charges Clause in Contracts

Basis of Charges. If the service cost or benefit is intended for inclusion in PGE's retail revenue requirement, then a. All billing by PGE to an affiliate will be at the higher of cost or market, unless otherwise specified and approved by the OPUC; and b. All billings by an affiliate to PGE will be at the lower of cost or ▇▇▇▇et, unless otherwise specified and approved by the OPUC. c. All billings between PGE and an affiliate resulting from a "blind ▇▇▇▇▇▇ge transaction" will be at the amount of such transaction. For the purpose of this agreement, "cost" shall include: a. All out-of-pocket expenses of the provider of services incurred in connection with the services rendered including salaries and benefits; amounts paid for independent technical and professional services; and all overhead expenses, including but not limited to space utilization; and b. A reasonable return on any investment in assets, equipment, or plant supporting the provision of services ("tangible assets") in the following amounts: (i) For services provided by PGE, the return on tangible assets employed, if any, will be no less than the authorized rate of return of PGE on its investment serving its electric ratepayers; and (ii) For services provided by an affiliate, the return on tangible assets employed, if any, will be no more than the authorized rate of return of PGE on its investment serving its Oregon electric ratepayers. Costs shall include both direct and indirect costs of operation. Where a cost incurred by an affiliate is allocable to related and/or unrelated third parties, which include PGE, an allocation of such costs will be used. Exhibit A to this agreement describes the method used for allocating common costs to be used by the affiliate.

Basis of Charges. If the service cost or benefit is intended for inclusion in PGE's retail revenue requirement, then a. All billing by PGE to an affiliate will be at the higher of cost or market, unless otherwise specified and approved by the OPUC; and and b. All billings by an affiliate to PGE will be at the lower of cost or ▇▇▇▇et▇ market, unless otherwise specified and approved by the OPUC. c. All billings between PGE and an affiliate resulting from a "blind ▇▇▇▇▇▇ge change transaction" will be at the amount of such transaction. For the purpose of this agreement, "cost" shall include: a. All out-of-pocket expenses of the provider of services incurred in connection with the services rendered including salaries and benefits; amounts paid for independent technical and professional services; and all overhead expenses, including but not limited to space utilization; and and b. A reasonable return on any investment in assets, equipment, or plant supporting the provision of services ("tangible assets") in the following amounts: (i) For services provided by PGE, the return on tangible assets employed, if any, will be no less than the authorized rate of return of PGE on its investment serving its electric ratepayers; and (ii) For services provided by an affiliate, the return on tangible assets employed, if any, will be no more than the authorized rate of return of PGE on its investment serving its Oregon electric ratepayers. Costs shall include both direct and indirect costs of operation. Where a cost incurred by an affiliate is allocable to related and/or unrelated third parties, which include PGE, an allocation of such costs will be used. Exhibit A to this agreement describes the method used for allocating common costs to be used by the affiliate.