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DES:djk 08/31/87R <br /> <br />year, Company shall be entitled to receive a share of the actual <br />Operating Cost savings over the first five years of the Program <br />in addition to Company's profits based upon the operating ratio <br />of 91% described above. In the sixth year (if applicable) and <br />thereafter, rate payers shall receive 100% of such savings by <br />corresponding rate adjustments. The distribution of benefits <br />between Company and rate payers from any such Program shall be as <br />follows: <br /> <br /> Years <br /> <br /> Party Benefited 1 2 3 4 5 6 and above <br /> % to Company 100% 80% 60% 40% 20% 0% <br /> <br /> % to Rate Payer 0% 20% 40% 60% 80% 100% <br /> <br />The foregoing distribution of benefits shall be applicable for <br />the corresponding year in which a Program is in effect, <br />notwithstanding that the number of Operating Years remaining <br />following the institution of such Program may be less than the <br />full amount specified above. <br /> <br /> Following the implementation of an approved Cost Savings <br />Program, Agency, or Authority on behalf of Agency, shall <br />determine the actual Operating Cost savings which occurred during <br />each Operating Year as a result of the Program. If the actual <br />savings equal or exceed 5/10th of one percent (0.5%) of the <br />Billings for each such Operating Year, the savings shall be <br />allocated in accordance with the above table in pursuance of the <br />the rate modification process described hereinabove. The <br />allocations shall be made in each succeeding year by identifying <br />the difference between Company's actual Operating Cost and the <br />Operating Costs which would have resulted without the Program. <br /> <br /> 26 <br /> <br /> <br />