The Cogeneration Project's operating costs are largely contractually determined. Local Utility will supply gas under a 15-year gas supply agreement. The contract specifies a gas price that will prevail during the initial year of the contract. The gas price will change in subsequent years, in line with changes in the price Cogeneration Company receives for the electricity it sells to Local Utility. Local Utility will operate Cogeneration Company. Its management fees will be a specified fixed amount for the initial year; they will escalate thereafter in line with changes in the PPI. Local Utility has agreed to maintain and repair the cogeneration facility in accordance with an agreed-on fee schedule. Engineering Firm has guaranteed that the cogeneration facility will operate at its design capacity for at least 15 years.