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(2) a sum equal to four percent (4 of gross revenues received by Oncor from servicgs identified in its "Taziff for Retail Delivery Service," Section 6.1.2, "Discretionary Service Chazges," items DD1 through DD24, that are for the account or benefit of an end-use retail electric consumer. (a) The franchise fee amounts based on "Discretionary Service Charges" shall be calculated on an annual calendaz yeaz basis, i.e., from January 1 through December 31 of each calendar year. (b) The franchise fee amounts that aze due based on "Discretionary Service Chazges" shall be paid at least once annually on or before April 30 each year based on the total "Discretionazy Service Chazges" received during the preceding calendar year. B. Oncor Franchise Fee Recovery Tariff (1) Oncor may file a tariff amendment(s) to provide for the recovery of the franchise fee on Discretionary Service Charges. (2) City agrees (i) to the extent the City acts as regulatory authority, to adopt and approve that portion of any tariff which provides for 100% recovery of the franchise fee on Discretionary Service Chazges; (ii) in the event the City intervenes in any regulatory proceeding before a federal or state agency in which the recovery of the franchise fees on such Discretionary Service Charges is an issue, the City will take an affirmative position supporting the 100 % recovery of such franchise fees by Oncor and; (iii) in the event of an appeal of any such regulatory proceeding in which the City has intervened, the City will take an affirmative position in any such appeals in support of the 100% recovery of such franchise fees by Oncor. (3) City agrees that it will take no action, nor cause any other person or entity to take any action, to prohibit the recovery of such franchise fees by Oncor. Section 3. That, in all respects, except as specifically and expressly amended by this ordinance, the existing effective franchise ordinance heretofore duly passed by the governing body of the City and duly accepted by Oncor shall remain in full force and effect according to its terms until said franchise ordinance terminates as provided therein. Section 4. That Oncor shall, within thirty (30) days from the passage of this ordinance, file its written acceptance of this ordinance with the Office of the City Clerk in substantially the following form: Page 2 of 4