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<br />Maximum Day Demand, historical data accumulated during each twelve-month period ending September <br /> <br />30 of the prior year, hereafter referred to as the "Test Year," shall be used. <br /> <br />7.7 Prior to the end ofthe Initial Period, a detailed Cost of Service Stupy will be perfonned by an <br /> <br />independent utility rate consultant chosen by the CITY, such study to be perfortned in accordance with the <br /> <br />methodology described in that excerpted portion of the Reed, Stowe & Yank~, LLC study, March, 2003, <br /> <br />attached as Exhibit I. The Cost of Service Study shall be developed on an aclual historical cost test year <br /> <br />basis (for the Test Year) allowing for reasonable and necessary expenses ofp~oviding such water service <br /> <br />and allowing for known and measurable adjustments, including satisfying tire City's obligations under <br /> <br />current and future bond covenants. Thereafter, on an annual cycle, a detailed çost of Service Study shall <br /> <br />be perfonned by an independent rate consultant chosen by the CITY, again u$ing the same methodology <br /> <br />as the excerpted portion of the Study in Exhibit I, unless and until a differe~ methodology is mutually <br /> <br />agreed upon in writing by CAMPBELL and the CITY. CAMPBELL shall pay ~e cost of each annual Cost <br /> <br />of Service Study, payable within thirty (30) days of CAMPBELL's receipt offnvoice from the CITY. <br />7.8 During the Initial Period and any given Rate Year, should CAMPB~LL's actual Maximum Day <br />i <br />Demand exceed the Maximum Day Demand used in the most recent Cost oflservice Study, Campbell's <br /> <br />will be assessed an excess demand charge ofl.5 times the Annual Demand C~arge (per MGD) times the <br /> <br />Excess Demand. Payment of the Excess Demand Charge shall be due thirty PO) days within receipt of <br />I <br />invoice from the CITY. Beginning the month after this event, this event Wil~ also immediately change <br /> <br />CAMPBELL's current Maximum Day Demand and Monthly Demand Charg9 for this Agreement to the <br /> <br /> <br />new actual Maximum Day Demand and adjusted Monthly Demand Cha~e. AS AN EXAMPLE, <br /> <br /> <br />ADJUSTMENTS FOR AN INCREASE FROM A MAXIMUM DAY DEM ND OF 6.0 MGD TO A <br /> <br /> <br />MAXIMUM DA YDEMAND OF 6.5 MGD ARE CALCULATED IN THE EX PLE GIVEN BELOW. <br /> <br />Example: <br /> <br />Water Purchase Contract - Page 6 <br />