Common use of Rebasing Adjustment Clause in Contracts

Rebasing Adjustment. For the purpose of determining the Rates Adjustment Limit to apply to Standard Rates to come into effect on a Rate Rebasing Date commencing with the second Rate Rebasing Date, and the Rates Adjustment Limits for the following four (4) Charging Years, the Regulatory Office shall, by taking into account all information available at the time, and by making reasonable projections of all factors relevant to the Future Cash Flows of the Concessionaire, [and in accordance with the formula set out in Schedule [17]], determine: (i) the Net Present Value, which may be either positive or negative, of the Opening Cash Position, as at June 30 following that Rate Rebasing Date; (ii) the amount, either positive or negative, which if made to the Rate Adjustment Limit for each of the five (5) Charging Years of the Rebasing Period would cause the Net Present Value of the Future Cash Flows, as at June 30 following that Rate Rebasing Date, to be equal but opposite in sign to the Net Present Value of the Opening Cash Position as determined in (i) above (the “Rebasing Convergence Adjustment”). Notwithstanding the foregoing, the Regulatory Office, with approval from the MWSS, may, implement a general rate rebasing consistent with this Section 9.4.2 on the first Rate Rebasing Date if the Regulatory Office determines that circumstances warrant such an action. For avoidance of doubt, there shall be no increase in Standard Rates for water and sewerage services, including through Rebasing Adjustment, until December 31, 2022 as provided for in Section 9.

Rebasing Adjustment. For the purpose of determining the Rates Adjustment Limit to apply to Standard Rates to come into effect on a Rate Rebasing Date commencing with the second Rate Rebasing Date, and the Rates Adjustment Limits for the following four (4) Charging Years, the Regulatory Office shall, by taking into account all information available at the time, and by making reasonable projections of all factors relevant to the Future Cash Flows of the Concessionaire, [and in accordance with the formula set out in Schedule [17]]15, determine: (i) the Net Present Value, which may be either positive or negative, of the Opening Cash Position, as at June 30 following that Rate Rebasing Date; (ii) the amount, either positive or negative, which if made to the Rate Adjustment Limit for each of the five (5) Charging Years of the Rebasing Period would cause the Net Present Value of the Future Cash Flows, as at June 30 following that Rate Rebasing Date, to be equal but opposite in sign to the Net Present Value of the Opening Cash Position as determined in (i) above (the “Rebasing Convergence Adjustment”). Notwithstanding the foregoing, the Regulatory Office, with approval from the MWSS, may, implement a general rate rebasing consistent with this Section 9.4.2 on the first Rate Rebasing Date if the Regulatory Office determines that circumstances warrant such an action. For avoidance of doubt, there shall be no increase in Standard Rates for water and sewerage services, including through Rebasing Adjustment, until December 31, 2022 as provided for in Section 9.