11 - Water Service Agreement with Paris Generation LP

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If a higher Estimated Day Demand than actually experienced is requested by PGEN, and accepted by CITY, PGEN'S Annual Demand Charge will be calculated using the Actual Day Demand for the then applicable Cost of Service Study, times the requested Estimated Day Demand. 8.9 PGEN'S subsequent Volumetric Rate shall be based on PGEN'S water consumption during the Test Year, adjusted for any known and measurable changes. 8.10 For the avoidance of doubt, the following examples illustrate the calculation of PGEN'S Annual Demand Charge (per MGD) and volumetric rate for the Rate Year June 1, 2021 through May 31, 2022. The Annual Demand Charge and volumetric charge for the Initial Period of this Agreement and subsequent Rate years during the term of this Agreement will be calculated in similar fashion. Examples: Annual Demand Char e: PGEN'S Extra Capacity costs $ 118,294 PGEN'S Test Year Actual Maximum Day Demand (in MGD) 1.440 PGEN's Extra Capacity cost per MGD $ 82,149 PGEN's Estimated Maximum Day Demand (in MGD) 1.500 PGEN's Total Annual Demand Charge ($82,149 x 1.5) $ 123,223 Volumetric Rate: PGEN'S Base and Customer costs $ 100,031 PGEN'S Test Year water consumption (in CCF)' 180,000 PGEN'S Volumetric Rate (per CCF) ($100,031 = 180,000) $0.56 8.11 The Parties recognize and agree that Article 12, Sections 12.02.002 and 12.03.001 [GAilof the Code of Ordinances of the City of Paris, Texas requires that consumers or purchasers desiring water at minimum delivery pressure, particular flow rate, volume in excess of One Million Five Hundred Thousand (1,500,000) cubic feet per month, or which require construction of oversized additions to CITY'S distribution system, be delivered water pursuant to a written contract upon such terms, conditions and at such rate as may be fixed by the City Council of the City of Paris, Texas. Should PGEN'S total annual consumption during each Rate Year not be at least Eighteen Million (18,000,000) cubic feet (average of One Million Five Hundred Thousand (1,500,000) cubic feet per ' Minimum Volumes per Contract dated June 6, 2016.