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<br />Demand Charge will include a pro-rated portion of the Distribution System Demand <br />Charge plus the Demand Charge for Treated Water produced by the City for LCWSD <br />from the Water Treatment Plant. <br /> <br />1. 7. "Demand Rate" means the dollar amount per million gallons per day (mgd) applied to <br />LCWSD's Maximum Day Metered Demand to calculate the Demand Charge. A separate <br />Demand Rate will be developed in the Cost of Service Study for Treated Water delivered <br />through the Water Distribution System, for Treated Water delivered through the FM 79 <br />Point of Delivery and for Treated Water produced by the City for LCWSD from the <br />Water Treatment Plant. <br /> <br />1.8. "Distribution Maximum Day Metered Demand" means the measured daily maximum <br />usage at Points of Delivery on the Water Distribution System as determined through <br />Meter readings. <br /> <br />1.9. "Effective Date" means the date that this Agreement has been signed by both Parties. <br /> <br />1.10. "Excess Demand Charge" means the charge assessed against LCWSD for exceeding the <br />Maximum Hour Capacity Demand as provided in Article 2.4 of this Agreement during <br />the Rate Year. <br /> <br />1.11. "Fiscal Year" means the City of Paris' fiscal year, which currently is the period from <br />October 1 until September 30 of the following calendar year. <br /> <br />1.12. "Individual Maximum Diversion Rate" means the highest rate of flow of Treated <br />Water Paris agrees to deliver to LCWSD at each individual Point of Delivery expressed <br />in gallons per hour, as identified in Articles 2.3 and 4.4 of this Agreement. <br /> <br />1.13. "Initial Rates" means the rates set for the period beginning on the effective date of this <br />Agreement and in effect until rates are set following the execution of the first Cost of <br />Service Study under this Agreement. <br /> <br />1.14. "Initial Rated Plant Capacity" means the maximum hourly production capacity of the <br />Water Treatment Plant of 1,333,333 gallons per hour on the Effective Date as determined <br />on the basis of applicable state criteria. <br /> <br />1.15. "Maximum Hour Capacity Demand" means the maximum hourly Treated Water to be <br />produced for LCWSD by the Water Treatment Plant as provided in Article 2.4 of this <br />Agreement. <br /> <br />1.16. "Maximum Day Metered Demand" means the measured daily maximum usage as <br />detennined through Meter readings, adjusted for lost and unaccounted for water as <br />provided in Article 2.3 of this Agreement. <br /> <br />3 Paris/LCWSD Wholesale Treated Waler Contract <br />