MERC Regulations 19Chapter C · Multi-Year Tariff
Section 19 · Mechanism for sharing of gains or losses on account of controllable factors
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- 19.1 The approved aggregate gain to the Generating Company or Licensee on account of controllable factors shall be dealt with in the following manner:(a)One-third of the amount of such gain shall be passed on as a rebate in tariffs over such period as may be specified in the Order of the Commission under Regulation 17.10;(b)In case of a Licensee, one-third of the amount of such gain shall be retained in a special reserve for the purpose of absorbing the impact of any future losses on account of controllable factors under clause (b) of Regulation 19.2; and(c)The balance amount of gain may be utilized at the discretion of the Generating Company or Licensee.
19.2
The approved aggregate loss to the Generating Company or Licensee on account of controllable factors shall be dealt with in the following manner:(a)
One-third of the amount of such loss may be passed on as an additional charge in tariffs over such period as may be specified in the Order of the Commission under Regulation 17.10; and(b)
The balance amount of loss shall be absorbed by the Generating Company or Licensee.Your private note on this section
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