Costs for such month in accordance with Subsection 5.2(a). Administrative fee shall be
billed quarterly in the March, June, September and December invoices. REC payments
are not made until six months after they are created (i.e. RECs created in January,
February and March are not sold until September) Within 30 days after receipt of any
such invoice, Owner shall:
(a) Pay Operator the sum specified in such invoice, less (i) any amounts
previously deposited with Operator relating to such invoice, and (ii) any portion
of such invoice amount that Owner disputes in good faith or is permitted to offset
under this Agreement; and
(b) With respect to any disputed portion of such invoice, provide Operator
with a written statement explaining, in reasonable detail, the basis for such
dispute. The parties shall attempt to resolve any such disputed portion in
accordance with Article 14.
ARTICLE 6
PROCEDURES, PLANS AND REPORTING
Section 6.1 - Annual Project Operating Budget and Plan
(a) Proposal. On or before March 1st of each Contract Year, Operator shall
prepare and submit to Owner a proposed budget for the next Fiscal Year, an example of
which is attached to Appendix C of this Agreement. The proposed budget shall include
separate operating and capital budgets. The proposed budget shall also set forth, in detail
acceptable to Owner, (i) anticipated operations, repairs and capital improvements,
(ii) maintenance and overhaul schedules, (iii) planned procurement (including equipment,
spare parts, and consumable inventories), (iv) labor costs, (v) administrative activities,
and (vi) other work proposed to be undertaken by Operator, together with an itemized
estimate of all Reimbursable Costs to be incurred. Each proposed budget shall be
accompanied by a proposed operating plan for the same fiscal year setting forth the
assumptions and implementation plans underlying the proposed budget. Any actions to
be performed by Operator under the proposed operating plan shall be consistent with
Operator's obligations set forth in this Agreement.
(b) Adoption. Owner shall review Operator's proposed budget and operating plan
within 30 days following receipt of the proposals. Owner may, by written request,
propose changes, additions, deletions and modifications to the proposals. If requested by
Operator, Owner shall provide Operator any cost information in Owner's possession from
previous Contract Years applicable to items in the proposed budget. Owner and Operator
will then meet and use their reasonable commercial efforts to agree upon a proposed final
budget and a final plan (the "Annual Budget" and "Annual Project Operating Plan",
respectively). The proposed Final Budget is subject to review and edits by the Owner’s
Board of Aldermen and shall become final as adopted by the Owner through its annual
budget process. Except to the extent that the terms of Sections 3.8 and 3.9 permit
Operator to take actions which are outside the final Annual Budget without the consent of
Owner, the final Annual Budget and Annual Project Operating Plan shall remain in effect
throughout the applicable Contract Year(s), subject to revisions and amendments
proposed by either party and consented to in writing by the Owner.
