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D~q:djk 08/31/87R <br /> <br />reasonable profit and reimbursemen~ for necessary, reasonable and <br />prudent costs associated with the ~urnishing of that service. <br /> In setting Company's rates c~nsideration shall be given to <br />all of Company's Solid Waste operaltions: collection, transporting <br />and removal of Solid Waste froD Agency's Service Area, and <br />transfer station and disposal op~ra~ions. Subdivisions (b) and <br /> (c) hereof set forth the methodology for determining <br /> collection <br /> <br />rates. Exhibit "A" (Rate Review manual) sets forth standards and <br />procedures for the guidance of the parties in carrying out the <br />rate modification process. I~cluded in Exhibit "A" is a <br />"Revenue Requirement Worksheet" ~nd "Rate Adjustment Worksheet", <br />providing an explanatory exam )le of the rate modification <br />calculations described in subdivisions (b) and (c) below. In the <br />event of any inconsistency bet~een the methodology set forth <br />herein and any information on said Worksheets, the latter shall <br />have precedence. <br /> <br /> (b) Revenue Requirement. Ail actual and projected costs <br />associated with Company's Col~.ection, transfer station, and <br />disposal operations shall be reviewed by Agency, or Authority on <br />behalf of Agency, for each ensuing Operating Year as a part of <br />its rate review function. Such!costs shall be determined in the <br />following manner (and as depicted on the Worksheets in Exhibit <br />"A") to determine a projected "Revenue Requirement" for Company: <br /> <br /> (i) All allowable Operatihg Costs, excluding intercompany <br /> profits from Company'!s transfer station or land fill <br /> operations, or other operations of subsidiaries of <br /> Company's parent cor:poration, Pass Through Costs or <br /> duplication of revehues and/or expenses, shall be <br /> <br /> 21 <br /> <br /> <br />