Upon the giving of notice by the Agency, the Parties must negotiate in good faith the terms required to implement the improvement proposed in accordance with the following principles:
(a) The Company shall be entitled to recover all costs incurred by it to carry out the improvement and to make a reasonable rate of return on any additional investment made for that purpose having regard to existing market conditions at the time the improvement is done.
(b) Except when a Tariff adjustment is authorized under Section 8.3.2 (Extraordinary Tariff Adjustments), the Agency shall be entitled to determine the method of compensating the Company for the improvement in the Facilities or the Treated Water Specifications, including but not limited to an adjustment to the Tariff pursuant to Section 8.3.2 (Extraordinary Tariff Adjustments) or an extension of the Operating Period.
(c) The essential commercial terms and risk distribution embodied in this Agreement shall also apply to the works carried out in the adoption of the improvement.