07-I Tenaska III Water Service Contract

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Excess Demand Charge ($95,228 x 1.5 x 0.3 MGD Excess Demand) Additional amount due CITY in thirty (30) days $ 42,853 $ 42,853 Annual Demand Charge (per MGD) Adjusted Total Annual Demand Charge ($95,228 x 2.1 MGD) Adjusted Monthly Demand Charge ($199,979/12 months) $ 95,228 $199,979 $ 16,665 Should the new Maximum Day Demand again be exceeded during a given Rate Year, similar calculations and a designation of a Maximum Day Demand for the Rate Year shall be made. The highest Maximum Day Demand in a given Rate Year that exceeds the current Maximum Day Demand shall be used as the Maximum Day Demand in the subsequent year's cost of service study, unless a higher Maximum Day Demand is requested by PARTNERSHIP and accepted by the CITY. Example: Maximum Day Demand (initial estimate) Maximum Day Demand (Actual) Maximum Day Demand for subsequent cost of service study 1.8 MGD 2.1 MGD 2.1 MGD (or higher, at request ofPAR1NERSHIP) If a higher Maximum Day Demand than actually experienced is requested by PARTNERSHIP, and accepted by the CITY, PARTNERSHIP'S Total Annual Demand Charge will be the Annual Demand Charge (per MGD), calculated using the actual Maximum Day Demand for the subsequent cost of service study, times the requested Maximum Day Demand. 7.9 PARTNERSHIP'S volumetric rate shall be based on PARTNERSHIP'S treated water consumption during the twelve-month prior Billing year, adjusted for any known and measurable changes. 7.10 The following example illustrates the calculation of PARTNERSHIP'S Annual Demand Charge (per MGD) and volumetric rate under this Agreement. Example: PARTNERSHIP'S Extra Capacity costs PARTNERSHIP'S Maximum Day Demand (MGD) PARTNERSHIP'S Annual Demand Charge (per MGD) $177,567 7 1.865 $ 95,228 PARTNERSHIP'S Base and Customer costs PARTNERSHIP'S water consumption (CCF) PARTNERSHIP'S volumetric rate (per CCF) $ 98,078 7 163.224 $ 0.60 Tenaska III Water Service Contract - Page 6 .. -r'-' ~ "-_.._.,.".,_.._-,-,_...~. ..---r..-M,......