Common use of Cost Allocations Clause in Contracts

Cost Allocations. General. 1. Portland will allocate costs to Wholesale Customers and Portland Retail Customers in accordance with generally accepted ratemaking practices and procedures. In general, unless specified otherwise in this Agreement, costs will be allocated proportionately as provided by the then-current AWWA Manual M1. 2. Portland’s cost allocations to Wholesale Customers will be based on the “base- extra capacity” methodology, as defined in AWWA Manual M1. 3. Portland will allocate three types of costs referred to in Section 6:

Appears in 2 contracts

Sources: Water Sales Agreement, Water Sales Agreement