Repository: UIHistories Project: Board of Trustees Minutes - 1950 [PAGE 527]

EXTRACTED TEXT FROM PAGE:

5i8

BOARD OF T R U S T E E S

[July 28

( b ) The interest accrued, including amortization of debt discount, premium and expense, during such month on the Company's indebtedness to others than Commonwealth Edison Company; and ( c ) An income t a x charge for such month calculated as follows: (1) The estimated income tax to be incurred by Commonwealth Edison Company during the current calendar year upon income from investments by Commonwealth Edison Company in the Company shall be divided by twelve. The amount thus determined shall be the "income tax accrual" for such month. (2) There shall be added to or subtracted from the income t a x accrual for such month the amount of any proper adjustments of income tax charges for periods prior to such month. SECTION 5.02. For each montii beginning with the month of July, 1951 the Company shall be entitled to an amortization charge calculated as follows: ( a ) The amortization charge for each month prior to the month of June, 1981 shall be equal to the quotient obtained by dividing (1) the Company's unamortized investment as of the beginning of such month in all facilities, other than facilities comprising working capital, by (2) the number of months in the period from the beginning of such month to the end of the month of June, 1981. ( b ) The amortization charge for the month of June, 1981 shall be the amount necessary to make the Company's amortization reserve for all facilities, other than facilities comprising working capital, equal to the Company's investment in such facilities, all as of the end of such month. SECTION 5.03. For each month the Company shall be entitled to a general tax charge calculated as follows: ( a ) From the amount provided by the Company for taxes for such month, there shall be deducted any amount included therein for revenue taxes charged for under Section 5'°6. The amount thus determined shall be the Company's "general tax accrual" for such month. ( b ) There shall be added to or subtracted from the general tax accrual for such month the amount of any proper adjustments of general tax accruals for periods prior to such month. SECTION 5.04. For each month the Company shall be entitled to an operating charge calculated by deducting from the amounts properly charged by the Company for such month to operating expenses and maintenance the amounts included therein for fuel and the net cost of ash disposal. SECTION 5.05. For each month the Company shall be entitled to a steam charge calculated by adding to the cost of fuel burned during the month the net cost of ash disposal. SECTION 5.06. For each month the Company shall be entitled to a revenue tax charge, if any is payable. The revenue tax charge shall be equal to the amount for such month of all gross revenue, sales or other similar taxes payable by the Company. SECTION 5-07. The Company's carrying charges during construction included in investment as provided in Section 4.01 shall be such portion of its charges under Section S- 01 to 5.06, inclusive, as is properly allocable to construction; provided, however, that no amount shall be allocable to construction which shall have been billed to the University subject to current payment. The remainder of such charges shall be billed to the University monthly and paid for by it as hereinafter provided.

ARTICLE V I . METHOD OF OPERATION

SECTION 6.01. The Company shall operate its facilities in a prudent and efficient manner and subject to the general direction of the University. Operations of the Company may be conducted, in whole or in part, by Commonwealth Edison Company for the Company. The payments by the Company to Edison for such services shall not include any profit to Edison but, insofar as such services are furnished to the Company by employees of Edison, the payments therefor shall include properly calculated compensation to Edison for all indirect costs, including pensions, payroll taxes, vacations, supervision and idle-time. Because the University and others having contracts with the University pursuant to Section 3.02