Common use of Responsibility for Cost of Improvements Clause in Contracts

Responsibility for Cost of Improvements. The cost of Improvements may be apportioned among the requesting Participants and Users pursuant to a written agreement and may be adjusted to include other sources of funding. If there is no such written agreement, an Improvement shall be made at the expense of the requesting Participant(s), User(s), and/or AEA (AEA only if the Improvement is undertaken pursuant to Section 6.4.1.2) unless the IMC determines prior to performing the Improvement that the Improvement directly benefits other Participants or Users, or may provide direct benefit to other Participants or Users in the future, in which case the cost of the requested Improvements shall be deemed Intertie Costs. The IMC may also, but shall not be required to, determine that the cost of an Improvement shall be born only by the group of directly benefitted Participant(s) or User(s) if some will not be directly benefitted. The IMC shall have the right to consider the cause or need for any Improvements when making its determination of cost responsibility. The IMC shall also determine prior to performing the Improvement whether the cost of such Improvements shall be recovered in the Intertie Energy Rate or in the Intertie Capacity Rate. AEA shall be the owner of all Improvements without regard to the sources of funding. The determination and setting of the responsibility for payment of costs associated with an Improvement and any allocation of recovery between the Intertie Energy Rate and the Intertie Capacity Rate shall require the affirmative vote of a minimum of 75 percent of the members of the IMC constituting greater than 66 percent of the total Annual System Demand of all members of the IMC, including the affirmative vote of AEA.

Responsibility for Cost of Improvements. The cost of Improvements may be apportioned among the requesting Participants and Users pursuant to a written agreement and may be adjusted to include other sources of funding. If there is no such written agreement, an Improvement shall be made at the expense of the requesting Participant(s), User(s), and/or AEA (AEA only if the Improvement is undertaken pursuant to Section 6.4.1.2) unless the IMC determines prior to performing the Improvement that the Improvement directly benefits other Participants or Users, or may provide direct benefit to other Participants or Users in the future, in which case the cost of the requested Improvements shall be deemed Intertie Operating Costs. The IMC may also, but shall not be required to, determine that the cost of an Improvement shall be born only by the group of directly benefitted Participant(s) or User(s) if some will not be directly benefitted. The IMC shall have the right to consider the cause or need for any Improvements when making its determination of cost responsibility. The IMC shall also determine prior to performing the Improvement whether the cost of such Improvements shall be recovered in the Intertie Energy Rate or in Rate, the Intertie Capacity Rate, by an allocation to the group of directly benefitted Participant(s) or User(s), or a combination of two or more of the aforementioned methods. AEA shall be the owner of all Improvements without regard to the sources of funding. The determination and setting of the responsibility for payment of costs associated with an Improvement and any allocation of recovery between the Intertie Energy Rate and Rate, the Intertie Capacity Rate Rate, or the group of directly benefitted Participant(s) or User(s) shall require the affirmative vote of a minimum of 75 percent of the members of the IMC constituting greater than 66 percent of the total Annual System Demand of all members of the IMC, including the affirmative vote of AEA.