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<br />7.8 During the Initial Period and any given Rate Year, should CAMPBELL I S actual Maximum <br /> <br />Day Demand exceed the Maximum Day Demand used in the most recent Cost of Service Study, <br /> <br />Campbell's will be assessed an excess demand charge of 1.5 times the Annual Demand Charge (per <br /> <br />MGD) times the Excess Demand. Payment of the Excess Demand Charge shall be due thirty (30) days <br /> <br />within receipt of invoice from the CITY. Beginning the month after this event, this event will also <br /> <br />immediately change CAMPBELL's current Maximum Day Demand and Monthly Demand Charge for <br /> <br />this Agreement to the new actual Maximum Day Demand and adjusted Monthly Demand Charge. AS <br /> <br />AN EXAMPLE, ADJUSTMENTS FOR AN INCREASE FROM A MAXIMUM DAY DEMAND OF <br /> <br />6.0 MGD TO A MAXIMUM DAY DEMAND OF 6.5 MGD ARE CALCULATED IN THE <br /> <br />EXAMPLE GIVEN BELOW. <br /> <br />Example: <br />Maximum Day Demand <br />Annual Demand Charge (per MGD) <br />Total Initial Annual Demand Charge <br />($72,000 x 6 MGD) <br />Monthly Demand Charge ($432,000/12 months) <br /> <br />6MGD <br />$ 72,000 <br />$432,000 <br /> <br />$ 36,000 <br /> <br />Actual demand recorded <br />Excess Demand (6.5 MGD - 6 MGD) <br /> <br />6.5 MGD <br />0.5 MGD <br /> <br />Excess Demand Charge ($72,000 x 1.5 x 0.5 MGD Excess Demand) <br />Additional amount due CITY in thirty (30) days <br /> <br />$ 54.000 <br />$ 54,000 <br /> <br />Annual Demand Charge (Per MGD) <br />Adjusted Total Annual Demand Charge <br />($72,000 x 6.5 MGD) <br />Adjusted Monthly Demand Charge ($468,000/12 months) <br /> <br />$ 72,000 <br />$468,000 <br /> <br />$ 39,000 <br /> <br />Should the new Maximum Day Demand again be exceeded during a given Rate Year, similar <br /> <br />calculations and a designation of a new Maximum Day Demand for the Rate Year shall be made. <br /> <br />Water Purchase Contract - Page 7 <br />