Operating and Maintenance Expense. In accordance with Article 10.5 of this Agreement, the Developer shall be responsible for all reasonable expenses associated with the operation, maintenance, repair and replacement of the Connecting Transmission Owner’s Attachment Facilities, as such facilities are detailed in this Appendix A (“O&M Expenses”). The Developer shall have the option to pay such O&M Expenses either under the procedure described in Option 1 or in Option 2 below. Option 1: Fixed On-Going Charge Payment: The Connecting Transmission Owner will invoice and Developer shall pay an annual payment to the Connecting Transmission Owner equal to the product of the Gross Plant Investment associated with the Connecting Transmission Owner Attachment Facilities and the Annual Transmission Ongoing Charge Factor, for the term of this Interconnection Agreement. All payments due to be made by the Developer shall be made within thirty (30) days after receiving an invoice from the Connecting Transmission Owner. The Project’s Gross Connecting Transmission Owner’s Attachment Facilities Plant Investment cost shall be established in writing by the Connecting Transmission Owner no later than 90 days following commercial operation. The Annual Transmission On-Going Charge Factor shall be calculated annually each July based on the Connecting Transmission Owner’s most recent FERC Form 1 data and will equal the sum of the Revenue Requirement Components as identified in O&M Attachment 1 divided by the Total Gross Plant of the Connecting Transmission Owner. Total Gross Plant shall equal the sum of Item Nos. A (1)(a)(b)(c) in O&M Attachment 1. Option 2: Quarterly Actual O&M Expenses The Developer shall pay for all actual O&M Expenses incurred by the Connecting Transmission Owner, which expenses shall be billed by the Connecting Transmission Owner quarterly as accumulated during the quarter for which they were incurred. All payments due to be made by the Developer shall be made within thirty (30) days after receiving an invoice from the Connecting Transmission Owner, which invoice shall be issued after the end of each quarter for the most recent quarter. Selection by Developer The Developer shall select which option for paying such O&M Expenses by providing written notice to the Connecting Transmission Owner within thirty (30) days after the Gross Connecting Transmission Owner’s Attachment Facilities Plant Investment cost and the most recent Annual Transmission Ongoing Charge Factor have been provided to the Developer. If the Developer fails to provide timely notice to the Connecting Transmission Owner of the option selected, the Developer will be deemed to have selected Option 2: Quarterly Actual O&M Expenses. Capitalized terms used in this calculation will have the following definitions:
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Operating and Maintenance Expense. In accordance with Article 10.5 of this Agreement, the Developer shall be responsible for all reasonable expenses associated with the operation, maintenance, repair and replacement of the Connecting Transmission Owner’s Attachment Facilities, as such facilities are detailed in this Appendix A (“O&M Expenses”). The Developer shall have the option to pay such O&M Expenses either under the procedure described in Option 1 or in Option 2 below.
Option 1: Fixed On-Going Charge Payment: The Connecting Transmission Owner will invoice and Developer shall pay an annual payment to the Connecting Transmission Owner equal to the product of the Gross Plant Investment associated with the Connecting Transmission Owner Owner’s Attachment Facilities A-13 SERVICE AGREEMENT NO. 2683 and the Annual Transmission Ongoing Charge FactorFactor (as defined below), for the term of this Interconnection Agreement. All payments due to be made by the Developer shall be made within thirty (30) days after receiving an invoice from the Connecting Transmission Owner. Connecting Transmission Owner will bill Developer for the O&M Expenses on a quarterly basis. The Project’s Gross Plant Investment cost associated with the Connecting Transmission Owner’s Attachment Facilities Plant Investment cost shall be established in writing by the Connecting Transmission Owner no later than 90 days following commercial operation. For the purposes of this Agreement, Gross Plant Investment shall mean the investment from the plant account records associated with the Connecting Transmission Owner’s Attachment Facilities for the Large Generating Facility. The Annual Transmission On-Going Charge Factor shall be calculated annually each July based on the Connecting Transmission Owner’s most recent FERC Form 1 data and will equal the sum of the Revenue Requirement Components as identified in O&M Attachment 1 divided by the Total Gross Plant of the Connecting Transmission Owner. Total Gross Plant shall equal the sum of Item Nos. A (1)(a)(b)(c) in O&M Attachment 1.
Option 2: Quarterly Actual O&M Expenses The Developer shall pay for all actual O&M Expenses incurred by the Connecting Transmission Owner, which expenses shall be billed by the Connecting Transmission Owner quarterly as accumulated during the quarter for which they were incurred. All payments due to be made by the Developer shall be made within thirty (30) days after receiving an invoice from the Connecting Transmission Owner, which invoice shall be issued after the end of each quarter for the most recent quarter. Selection by Developer The Developer shall select which option for paying such O&M Expenses by providing written notice to the Connecting Transmission Owner within thirty (30) days after the Gross Connecting Transmission Owner’s Attachment Facilities Gross Plant Investment cost and the most recent Annual Transmission Ongoing Charge Factor have been provided to the Developer. If the Developer fails to provide timely notice to the Connecting Transmission Owner of the option selected, the Developer will be deemed to have selected Option 2: Quarterly Actual O&M Expenses. A-14 SERVICE AGREEMENT NO. 2683 Capitalized terms used in this calculation will have the following definitions:
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