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Substituting the above into the following formula: <br /> East Hawaii AC purchases after fund transfer West Hawaii AC purchases with fund transfer <br /> East Hawaii baseline AC purchases West Hawaii baseline AC purchases <br /> Results in: <br /> ($E - X)l CE l$W + X)l~W ($E - X) ($W + X) <br /> ~ _ ~ <br /> $EICE $W/CE $ECE $WCW <br /> /($E - X)$WCW=($W + X)$ECE ~ <br /> l$W$E)CW - X($W CW)-($W$E)CE + Xl$E CE) ~ <br /> $W$E (CW - CE)- X[($ECE)+ ($W CW <br /> Solving for X results in the Cost Adjustment Formula (CAF): <br /> $W$E(CW - CE) <br /> Substituting the following values into the CAF: <br /> $w = $ 767,511 (See attached Table 1, Total Column H) <br /> $E _ $2,832,489 (See attached Table 1, Total Column E) <br /> CW = $83.70/ton Mix 4 (Contractual Price) <br /> CE _ $60.00/ton Mix 4 (Contractual Price) <br /> Results in: <br /> X- 767,511 x 2,832,489 x (83.70- 60.00) = 5220,005 <br /> (60.00 x 2,832,489) + (83.70 x 767,511) <br /> Therefore: <br /> West Hawaii Adjusted Allotment = $ 767,511 + $220,005 = $ 987,516 <br /> East Hawaii Adjusted Allotment = $2,832,489 - $220,005 = $ 2,612.484 <br /> Attached Table 2 redistributes the Adjusted Allotments back into the respective districts. <br /> <br /> F[x Adjustment 2.wpd (8/1/05) Page 2 of 2 <br /> <br />