13-PARIS GENERATION LP (PGEN) WATER SERVICE AGREEMENT

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PGEN's Extra Capacity cost per MGD PGEN's Estimated Maximum Day Demand (in MGD) PGEN's Total Annual Demand Charge ($105,931 x 1.5) Volumetric Rate: PGEN'S Base and Customer costs PGEN'S Test Year water consumption (in CCF) $105,931 1.500 $158,897 $94,260 $159,293 PGEN'S Volumetric Rate (per CCF) ($94,260 = $159,293) $0.59 8.11 The Parties recognize and agree that Section 34-2 of the Code of Ordinances of the City of Paris, Texas requires that consumers or purchasers desiring water at minimum delivery pressure, particular flow rate, volume in excess of One Million Five Hundred Thousand (1,500,000) cubic feet per month, or which require construction of oversized additions to CITY'S distribution system, be delivered water pursuant to a written contract upon such terms, conditions and at such rate as may be fixed by the City Council of the City of Paris, Texas. Should PGEN'S total annual consumption during each Rate Year not be at least Eighteen Million (18,000,000) cubic feet (average of One Million Five Hundred Thousand (1,500,000) cubic feet per month multiplied by twelve (12) months), PGEN shall pay to CITY the difference between the Eighteen Million (18,000,000) cubic feet and PGEN'S actual consumption for the Rate Year multiplied by the Volumetric Rate in effect during the corresponding Rate Year (the "Make Whole Payment"). Payment of the Make Whole Payment to CITY shall be due from PGEN thirty (30) days after PGEN's receipt of an invoice from CITY. For the avoidance of doubt, the following example illustrates the Make Whole Payment calculation. Make Whole Payment: Required minimum annual consumption (in CCF) PGEN'S actual annual consumption (in CCF) Negative variance (in CCF) PGEN's current Volumetric Rate (per CCF) PGEN's Make Whole Payment (30,000 x$ 0.59) 9 �� 180,000 150,000 30,000 $ 0.59 $ 17,700