Virginia Transformer Price Adjustment Policy and Index

EFFECTIVE MARCH 29, 2004 – Rev2 May 1, 2006

As a result of significant commodity fluctuations in the market, Virginia Transformer Corp has established a Price Adjustment Policy effective March 29, 2004 as described below. Further, this policy has been revised to a monthly index from quarterly index as of January 1, 2005 and has been further revised to adjust the commodity weightings as of May 1, 2006.

POLICY:

VTC’s selling price will be subject to adjustment at the time of shipment based on a monthly price index as described in this policy. The current price index will be based on the commodity costs for the prior month. The price at shipment will be the quoted price times the price index ratio at the time of shipment. Any resulting purchase order must acknowledge this Price Adjustment Policy.

A1. PRICE INDEX:

A monthly price index (Iq) will be based on the Comex, Core, Steel, Oil, Major Accessories and Labor costs at the middle of each month for the month. Iq for January 2004 will be 1.0. The price index will be published to the VTC web site at the beginning of each month and will be effective for the whole month. The index will be based on the prior month’s prices.

A2. PRICE ADJUSTMENT CALCULATION:

The price index will be used to calculate the adjustment applied to the price at shipment per the below equation:

Equation

Where:

  • Iq = New Price Index for month of shipment
  • I0 = Original Price Index at time of quote
  • Pn = New Price at shipment after adjustment
  • P0 = Original Price at time of quote

Customer price will be increased or decreased at the time of shipment as indicated by the index ratio. The quote proposal will contain the index used at time of proposal.

Virginia Transformer Price Index tracking began on January 1, 2004 with a base index of 1.00

Monthly Price Index (Series 3)**
Effective May 1, 2006 for Oil type w/Copper Windings
2013 January
2.192
February 2.193
March 2.190
April 2.179
May 2.154
June 2.162
July 2.140
August 2.092
September 2.103
October 2.102
November 2.113
December 2.104
Monthly Price Index (Series 3)**
Effective May 1, 2006 for Oil type w/Copper Windings
2014 January
2.122
February 2.145
March 2.154
April 2.120
May 2.117
June 2.123
July 2.118
August 2.148
September 2.137
October 2.118
November 2.130
December 2.129
Monthly Price Index (Series 3)**
Effective May 1, 2006 for Oil type w/Copper Windings
2015 January
2.083
February 2.058
March 2.046
April 2.067
May 2.047
June 2.067
July 2.034
August 2.009
September 1.971
October 1.956
November 1.959
December 1.918
Monthly Price Index (Series 3)**
Effective May 1, 2006 for Oil type w/Copper Windings
2016 January
1.890
February 1.925
March 1.921
April 1.941
May 1.960
June 1.945
July 1.968
August
September
October
November
December

**Index adjusted May 1, 2006 for weighting change due to change in relative price of copper and core steel.

Dry Type Price Index
(For Copper Windings) Index Effective July 1, 2006
2013 January
1.766
February 1.780
March 1.781
April 1.762
May 1.742
June 1.749
July 1.733
August 1.715
September 1.718
October 1.721
November 1.727
December 1.720
Dry Type Price Index
(For Copper Windings) Index Effective July 1, 2006
2014 January
1.722
February 1.742
March 1.733
April 1.706
May 1.711
June 1.718
July 1.715
August 1.736
September 1.727
October 1.718
November 1.717
December 1.715
Dry Type Price Index
(For Copper Windings) Index Effective July 1, 2006
2015 January
1.700
February 1.678
March 1.674
April 1.684
May 1.684
June 1.710
July 1.682
August 1.662
September 1.646
October 1.649
November 1.652
December 1.624
Dry Type Price Index
(For Copper Windings) Index Effective July 1, 2006
2016 January
1.608
February 1.621
March 1.630
April 1.648
May 1.647
June 1.638
July 1.641
August
September
October
November
December


Oil Type Price Index
(For Aluminum Windings) Index Effective June 1, 2007
2013 January
1.151
February 1.139
March 1.141
April 1.142
May 1.146
June 1.142
July 1.143
August 1.133
September 1.133
October 1.130
November 1.143
December 1.139
Oil Type Price Index
(For Aluminum Windings) Index Effective June 1, 2007
2014 January
1.139
February 1.149
March 1.147
April 1.146
May 1.168
June 1.160
July 1.165
August 1.182
September 1.178
October 1.182
November 1.190
December 1.196
Oil Type Price Index
(For Aluminum Windings) Index Effective June 1, 2007
2015 January
1.186
February 1.199
March 1.199
April 1.198
May 1.185
June 1.189
July 1.178
August 1.190
September 1.177
October 1.167
November 1.173
December 1.169
Oil Type Price Index
(For Aluminum Windings) Index Effective June 1, 2007
2016 January
1.163
February 1.182
March 1.178
April 1.175
May 1.199
June 1.206
July 1.213
August
September
October
November
December