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<br />36 <br /> <br /> <br /> <br /> <br />Avoided Operational Cost Savings. Operational Savings are based on the concepts given in the table below. The operational cost savings identified below are deemed satisfied <br />upon Agreement execution. Avoided future cost savings are determined by the cost to implement this project over the term of the project. <br /> <br />Operational Savings Methodology Table <br /> <br /> <br />VEREGY and CUSTOMER agree that the total Operational Savings for each ECM over the term of the Agreement will be based on an escalation factor of 2.5%. <br /> <br /> <br />Related Capital Expenditures. Related capital expenditures have been calculated as follows: <br />ECM 4 – ACCU Replacement – Headworks Building