2001-033-ORD GRANTING TXU ELECTRIC COMPANY AN ELECTRIC LIGHT, HEAT AND POWER FRANCHISE

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(d) The City shall not allow as to rates or services an unreasonable preference or advantage to anyone within a service classification, nor allow Company to subject anyone within a service classification to any unreasonable prejudice or discrimination. Distinctions in rates and services between locations and service classifications shall be reasonable and shall be approved by the City. (e) To the extent required by state law, the governing body of the City may require the Company to allocate costs offacilities, revenues, expenses, taxes, and reserves between the City and other municipalities or unincorporated areas. Section 13. Deposits . Company shall have the right, subject to such rules and regulations as set forth in its approved tariff and consistent with applicable state or federal law, to require a reasonable security deposit for the payment of bills. Section 14. Suspension of Services Subject to state, federal, and local laws, rules, and regulations, the Company shall have the right to discontinue or suspend service to any customer who fails to pay a bill presented for service or make a reasonable deposit as may be required, until such bill, together with any expense for disconnecting and reconnecting the service, is paid. In addition, the Company may discontinue or suspend service without notice, for as long as the condition exists, where a known dangerous condition exists. The Company shall not be required to furnish service to any customer who is in default of payment or who fails to pay a reasonable deposit in accordance with duly promulgated rules and regulations, or who shall fail to comply with rules and regulations regarding proper use of facilities furnished by the Company. Provided, however, that nothing herein shall authorize Company to discontinue, suspend, or refuse to furnish service where Company is otherwise legally prohibited from taking such action. Section 15. Records, Reports, and Inspections (a) The Company shall use the system of accounts and the forms of books, accounts, records, and memoranda prescribed by the Public Utility Commission of Texas, or as mutually agreed to by the City and Company. Should the Public Utility Commission of Texas cease to exist, the City retains the right to require the Company to maintain a system of accounts and forms of books and accounts and memoranda prescribed either by the Federal Energy Regulatory Commission or the National Association of Regulatory Utility Commissioners or the successor of either of these organizations as mutually agreed to by the City and Company. (b) Upon the City's request, Company will promptly advise the City of the nature, content, and purpose of any financial and operating report it makes to the Public Utility Commission of Texas, the Railroad Commission of Texas, the Federal Energy Regulatory Commission, and the Securities and Exchange Commission. Company will promptly provide copies of any or all of these reports and such special studies as the Director of Finance, or his representative, and the governing body of the City may reasonably require in the administration ofthis franchise. 7