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Actual Dav Demand <br />Excess Demand (1.7 MGD —1.5 MGD) <br />Excess Demand Charqe ($158,897 x 1.5 x 0.2) <br />ADDITIONAL AMOUNT DUE TO CITY <br />Adiusted EDD (minimum) for subsequent Rate Year <br />1.7 MGD <br />0.2 MGD <br />$ 47,669 <br />$ 47,669 <br />1.7 MGD <br />The highest Actual Day Demand in a given Rate Year that exceeds the then <br />current Estimated Day Demand shall be used as the Estimated Day Demand in the <br />subsequent Rate Year's Cost of Service Study, unless a higher Estimated Day <br />Demand is requested by PGEN and accepted by CITY. <br />For example, in the above scenario, if, during the Initial Period, the Actual Day <br />Demand reaches One Million Seven Hundred Thousand (1,700,000) Gallons, then <br />One Million Seven Hundred Thousand (1,700,000) Gallons will become the base <br />Estimated Day Demand used in next annual Cost of Service Study, unless a <br />higher amount is established by a subsequent exceedence in the same Rate Year, <br />or is requested by PGEN and accepted by CITY. If PEGEN has not exceeded its <br />Estimated Day Demand, no change to the then existing Estimated Day Demand <br />shall occur, unless a higher amount is requested by PGEN and accepted by CITY. <br />If a higher Estimated Day Demand than actually experienced is requested by <br />PGEN, and accepted by CITY, PGEN'S Annual Demand Charge will be calculated <br />using the Actual Day Demand for the then applicable Cost of Service Study, times <br />the requested Estimated Day Demand. <br />8.9 PGEN'S subsequent Volumetric Rate shall be based on PGEN'S <br />water consumption during the Test Year, adjusted for any known and measurable <br />changes. <br />8.10 For the avoidance of doubt, the following examples illustrate the <br />calculation of PGEN'S Annual Demand Charge (per MGD) and volumetric rate for <br />the Rate Year June 1, 2012 through May 31, 2013. The Annual Demand Charge <br />and volumetric charge for the Initial Period of this Agreement and subsequent <br />Rate years during the term of this Agreement will be calculated in similar fashion. <br />Examples: <br />Annual Demand Charqe: <br />PGEN'S Extra Capacity costs <br />PGEN'S Test Year Actual Maximum Day Demand (in MGD) <br />8 <br />., �� <br />$ 158,579 <br />1.497 <br />