RES 82377 - Laserfiche WebLink

APPENDIX "B" Developer's payment of cost of ownership fund (Gas Ownership Fund) and PGandE's adjustment of Gas Ownership Fund shall be as follows: 1. In addition to the Gas Extension Advance, Developer, in lieu of a monthly cost of ownership charge, shall pay PGandE $16,553 (Gas Owner- ship Fund) representing the present worth of the annual costs to PGandE to own, operate and maintain the requested Gas Facilities, equal to 12 percent of the total cost of the Gas Facilities times the present worth factor of 5.6 based on 12.2 percent interest for a period of ten years. Such interest rate shall be equal to PGandE's authorized rate of return on the date of this agreement. 2. (a) In the event that PGandE shall make refunds of the G~ Extension Advance as provided in Section 3 hereof, PGandE shall also adjust the Gas Ownership Fund. Refunds and adjustments of the Gas Extension Advance and Gas Ownership Fund will be made annually on the anniversary of the date service is first made available as defined in Section 5 of this agreement, for a period of ten years. (b) Interest at the rate of 12.2 percent annually will be added to the unamortized balance of the Gas Ownership Fund before the cur- rent year's cost of ownership charges have been deducted. 3. $23,757 of the total cost of the Gas Facilities ($24,632) shall be subject to refund to City, without interest, in the manner and as provided in the applicable section of the gas extension rule in effect at the time service is established to each applicant in the District. The amount of $875 shall be subject to refund to the City, without interest, at the rate of $125 for each stub service that is utilizied and connected to a permanent meter location. No refund shall be made for any stub which, as a result of changes in lot owner's plans or Developer's requirements or because of construction plans of any person building in the District, is abandoned wholly or in part or cannot, in PGandE's judgment, be efficiently or economically utilized. Such refunds will be made annually following the anniversary of the date PGandE was first ready to supply service from the Gas Facilities, for a period of ten years. Any unrefundable balance of the Gas Extension Advance will be retained by PGandE at the end of such ten-year period. Any unused balance of the Gas Ownership Fund will be refunded to the Developer at the end of such ten-year period provided, hereunder, that no refunds shall be due Developer after any termination of this agreement. Gas Ownership Fund = ($24,632)(.12)(5.6) = $16,553