Common use of Variable Costs Clause in Contracts

Variable Costs. ‌ Escalators must be a fixed annual percentage, CPI, or GDP. 1.1. Point(s) of Delivery‌ RFP 2012 is requesting resources that are capable for delivery into or in the Company’s network transmission system9 in PACE. All proposals will be contingent on the Company Merchant function’s ability to designate the proposed resource (new, existing, imported, etc.) as a Network Resource under the network service contract between PacifiCorp Transmission (▇▇▇.▇▇▇▇▇.▇▇▇▇▇▇▇▇▇▇.▇▇▇ ) and PacifiCorp Merchant. PacifiCorp is interested in resources that are capable of delivery into or in a portion of the Company’s network transmission system in PACE. Specifically, the point(s) of delivery of primary interest to PacifiCorp are: • Mona10 345 kV o Crystal 500 kV11 Located in Nevada—PacifiCorp is willing to purchase capacity and associated energy that is sourced from Nevada; provided, the selling entity is able to purchase firm transmission from the resource to either Gonder or NUB. 8 The number of starts assumed per year should be adjusted down for expected mechanical availability. For example, if a resource has an expected mechanical availability of 90%, the number of assumed starts per year should equal 365 x 90% = 328. 9 Any costs required to upgrade PacifiCorp’s electrical infrastructure (integration costs) will be considered in the overall economics of the resource. See Attachment 13 for cost assumptions for Integration costs. If the Bidder is proposing another site that is not stated in Attachment 13, PacifiCorp will use the best available information at the time of evaluation to determine the integration costs for the analysis.