Common use of Certain Items Subject to CPI Increases and PURA Rate Increases Clause in Contracts

Certain Items Subject to CPI Increases and PURA Rate Increases. Commencing on January 1, 2027 and on the first day of January of each year during the Term, the Single Item Limit (see Section 6.09) and Annual Limit (see Section 6.09) shall be increased by the product of (a) the amount of the Single Item Limit, Annual Limit or Utility Threshold (as applicable) that applied during the immediately preceding calendar year; multiplied by (b) a fraction, (i) the numerator of which is the CPI for the immediately preceding October, and (ii) the denominator of which is the CPI for the October which is twelve (12) months prior to the immediately preceding October. Beginning January 1, 2027 and on each January 1 for the duration of the Term, the Utility Threshold (see Section 5.01) shall increase each calendar year by the percentage equal to the percentage increase in the applicable utility rates authorized by the Public Utilities Regulatory Authority (PURA).