I was wondering if you could tell me what TCPbd stands for in the formula for the calculation of indexed contract price on page 7 of the draft contract.

Also, why does the equation start with 1-EP? That to me reads like a person would be punished twice for inflation rates (once for, say, average prices going up 5%, and then once more for your contract price going down 5%). I assume that the second part of the equation corrects for this, though I am not sure how.

The only a portion of the contract price increases with increases in the customer price index. So, if the escalation percentage is 20%, only 20% of the contract price can escalate. Therefore (1-0.2) or 80% of the contract price remains the same.

See question ID 10708 for an example.