Outcome of the Methodology Review Sample Clauses

Outcome of the Methodology Review. Following completion of the Methodology Review, or if the Methodology Review is not completed by the date(s) set out above then, absent mutual agreement between NMPC and the Settling Parties that the SPC Allocation Methodology continues to produce a just and reasonable result, NMPC will within 2 months after a Settling Party’s notification to the other Parties that the SPC Allocation Methodology does not produce a just and reasonable result, make a filing under Section 205 of the FPA proposing a prospectively applicable SPC Allocation Methodology. 4.3.1 NMPC’s FPA Section 205 filing will include a good faith assessment of (i) the ongoing justness and reasonableness of the SPC Allocation Methodology, (ii) the feasibility of adopting a revised allocation methodology utilizing actual SPC Project labor expenses, and (iii) any proposed updates to the SPC Allocation Methodology. The Settling Parties reserve their rights to protest or otherwise oppose NMPC’s Section 205 filing if they do not agree that the SPC Allocation Methodology as proposed therein will produce just and reasonable results. Such FPA Section 205 filing will be a limited issue filing that does not open up other components of NMPC’s formula rate. However, nothing in this settlement shall limit the rights of any party to request or the Commission to order an expanded scope of any such proceeding under Sections 205 and 206 of the FPA and the Commission’s rules and regulations. 4.3.2 Should NMPC and the Settling Parties mutually agree based on the findings of the Methodology Review that the SPC Allocation Methodology continues to produce a just and reasonable result, the SPC Allocation Methodology will remain in place and NMPC will make an informational filing indicating the same by no later than ninety days after the date such mutual agreement is memorialized in writing, provided that such date may be extended, for a maximum of 6 months with the agreement of the Settling Parties, in the event that NMPC is unable to complete the Methodology Review within the established time frame. Such informational filing will indicate that based on the findings of the Methodology Review, the use of labor ratios for functionalizing NMPC’s General Plant and A&G expenses is not essential to produce a reasonable allocation in this context, and the SPC Allocation Methodology continues to provide a just and reasonable means of allocating the General Plant and A&G expenses in NMPC’s Schedule 15a.
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