ML20076N167

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Forwards Interconnection Agreement Between Util & FERC to Resolve Violations of Antitrust License Conditions. Resolutions to Other Issues Also Provided
ML20076N167
Person / Time
Site: Grand Gulf  Entergy icon.png
Issue date: 07/19/1983
From: Mcdiarmid R
SPIEGEL & MCDIARMID
To: Harold Denton
Office of Nuclear Reactor Regulation
References
ISSUANCES-A, NUDOCS 8307210216
Download: ML20076N167 (145)


Text

.. , - O LAW OFFICES CEORGE SPIEGEL. PC Sl'IEGEI. & MCDIAIOllt) RON M. LAf4DSMAN ECOERT C. MCDIARMID JOHN MtCHAEL ADRAGNA FANDRA J. STREBEL 2600 VIPGINIA AVENUE. N.W. CYNTHIA S. BOGORAD fMES N. h40RWO WASHINGTON. O C. 20037 y3ph [PO R ER ALAN J. ROTH TELEPHONE E202) 333-4500 JOSEPH L. VAN EATON

  • CANCES E. FRANCIS STEPHEN C. NICHOLS DANIEL 1. DAVIOSON TELECOPtER (202) 333-2974 PATRICIA E. STACK THOMAS N MCHUGH JR. P. DANIEL BRUNER DANIEL J. GUTTMAN SCOTT H. STRAUSS PETER K. MATT NANCY E. WlEGERS DAvlD R.STRAUS BIN FINKELSTEIN BONNIE S. BLAIR DONALD WElGHTMAN THOMAS C. TRAUGER July 19, 1983 OF COUNSEL SUSAN T. SHEPHERD Mr. Harold R. Denton Director Office of Nuclear Reactor Regulation U.S. Nuclear Regulatory Commission Washington, D.C. 20555 Re: Mississippi Power & Light Company, Grand Gulf Nuclear Station, Units 1 and 2, NRC Docket Nos. 50- 416A and 50-417A.

Dear Mr. Denton:

On May 29, 1980, you issued a Notice of Violation in the above-captioned proceeding, which concluded that MP&L had violated its antitrust license conditions by:

1. Refusing to offer an opportunity to par-ticipate in nuclear power from Grand Gulf to the Municipal Energy Agency of Mississippi and its Members (referred to jointly herein as "MEAM");
2. refusing or failing to " facilitate the exchange of bulk power .by transmission ...."

with respect to certain transactions which had been proposed which would have utilized the transmission interconnection between Gulf States Utilities and :MP&L near Felps, Louisiana; and

3. . refusing to sell partial requirements power for resale except at incremental costs.

Following that Notice of Violation, and-pursuant to the MP&L response of June 18, 1980, there have been extensive nego-tiations between the. parties over these issues which-have resulted in a resolution of each. In particular:

8307210216 830719 h I

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O Commission's Regulations. To the extent necessary, MP&L also requests that this transmittal letter be regarded as a motion to Judge Nacy requesting certification of the Settlement Agreement.

Copies of this filing have been served on all partici-pants in these proceedings. The Commission Staff will file comments in accordance with the Commission's Regulations. MP&L l 1

is authorized to state that all parties, which include all MP&L's municipal and cooperative, sales-for-resale and trans-mission service customers, request waiver of the ordinary notice and comment period to permit prompt Commission approval of the proposed Settlement Agreement.

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In accordance with the FERC's September 30, 1982

" Policy Statement Regarding Income Tax Normalization Under The Economic Recovery Tax Act of 1981," MP&L requests that the Commission take appropriate action on this Settlement Agreement prior to January 1, 1983. (See Article VII of the Settlement Agreement.)

Respectfully submitted, MI S PPI POWER & LIGHT COMPANY By Ob \,, o James K. Child, Jr. Richard M. Merriman Robert B. McGehee

  • Robert S. Waters O Wise Carter Child & Caraway 925 Electric Building Reid & Priest 1111 - 19th Street, N.W.

Jackson, Mississippi 39205 Washington, D.C. 20036 November 5, 1982

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UNITED STATES OF AMERICA

  • BEFORE THE FEDERAL ENERGY REGULATORY COMMISSION Mississippi Power & Light Company ) Docket No. ER82-128 SETTLEMENT AGREEMENT Introduction On December 3, 1981 in Docket No. ER82-128, Missis-4 sippi Power & Light Company (MP&L or Company) tendered for filing with the Federal Energy Regulatury Commission (FERC) revised-changes to MP&L's: (1) Rate Schedule MW-15, (2)

Revised Service Schedules TS-1 and TS-2 to the Interconnection Agreement between MP&L and South Mississippi Electric Power Association (dated July 18, 1979) (SMEPA), and (3) Service Schedules E to the three Interconnection Agreements between MP&L and the Cities of Clarksdale, Greenwood and Yazoo City,

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Mississippi (dated September 19, 1975, September 19, 1975 and June 23, 1980 respectively).

Under Rate Schedule MW-15, which had been in effect since December 1, 1976 pursuant to the Federal Power Commission's Orders of August 3 and November 11, 1977 in Docket No. ER76-830, MP&L provided full requirements, sales-for-resale service to five municipals. Under Revised Service Schedules TS-1 and TS-2, which have been ira effect since July 23, 1979 pursuant to the FERC's letter orders of February 28, 1980 an'd January 14,

({}- 1981 in Docket Nos. ER79-529.and ER81-137, respectively, MP&L

e _\ en h presently provides bulk power transmission service for power and energy generated by SMEPA's own resources and power and energy purchased by SMEPA from other sources. Under Service Schedules E - which, in the case of Clarksdale and Greenwood, have been eff ective since August 28, 1978 pursuant to the .

FERC's letter order of December 4, 1979 in Docket Nos. ER78-583 et al., and which, in the case of Yazoo City,'has been effec-tive since~ June 23, 1980 pursuant to the FERC's letter order of January 14, 1981 in Docket No. ER81-138 - MP&L presently pro- j vides bulk power transmission service to the three municipals in MP&L's service area which now have self-generation.

(f Based on filed test period (calendar year 1982) billing quantities, the proposed rate changes would have

! increased jurisdictional revenues by S4.76 million. The changes to Rate Schedule MW-15 were embodied in proposed Rate Schedule MW-16, while the remaini'ng changes wer.e reflected in proposed Amendments to Service Schedules TS-1, TS-2 and the three Service Schedules E. By Order issued February 2, 1982, the proposed changes were suspended until July 3, 1982 at which time they were to become effective subject to refund. Rate Schedule MW-16 was designated as Supplement No. 9 to Rate

Schedule FERC Nos. 87, 88 and 93 for the Cities of Kosciusko, Canton and Leland, respectively, and Supplement No. 5 to Rate Schedule FERC Nos. 236'and 238 for the Cities of Durant and

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Itta Bena, respectively. The Amendment to Revised Service Schedule TS-1 was designated as Supplement No. 1 to Supplement No. 11 to Rate Schedule FERC No. 251 and the Amendment to Re-vised Service Schedule TS-2 was designated as Supplement No.1 to Supplement No. 8 to Rate Schedule FERC No. 251. The Amend- ,

ments to the Revised Service Schedules E for Greenwood and Clarksdale were designated as Supplements'No. 2 to Supplements No. 6 to Rate Schedules FERC Nos. 239 and 243, respectively, and as Supplement No. 2 to Supplement No. 5 to Rate Schedule FERC No. 254 for Yazoo City.

l, The FERC's February 2 Order also granted the interven-(} tions of SMEPA and the Municipal Energy Agency of Mississippi (MEAM). SMEPA is an incorporated, non profit cooperative, 4

organized under Mississippi law, whose members are distribution rural electric power associations. MEAM is a joint agency organized under Mississippi law presently composed of MP&L's five full-requirements municipal customers and the three self generating municipals that currently have interconnection agreements with MP&L. Together, SMEPA and MEAM represent all customers directly affected by the proposed changes.

Af ter the issuance of FERC's February 2 Order, extensive settlement negotiations among MP&L, SMEPA, MEAM and the FERC Staff occurred. As a result of these negotiations, a total settlement of all issues raised in these proceedings was-() achieved among MP&L, SMEPA and MEAM. As an integral part of.

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achieving the settlement between MP&L and MEAM, long-held negotiations of a comprehensive interconnection agreement similar to the MP&L - SMEPA interconnection agreement were also completed.

Article I --

i' 1. The NET MONTHLY RATE AND MINIMUM BILL provisions of RATE SCHEDULE MW-16, as filed in this proceeding, shall be revised as shown:

NET MONTHLY RATE 55,974.00 for the first 1,000 KW of demand S 5.60 per KW of demand for all additional KW

$ 0.02943 per KWH for all KWH S 0.20 per KVAR of excess KVAR J

O MINIMUM BILL SS,974.00 per month ADJUSTMENTS First - there shall be added to or subtracted

  • from the net billing an amount equal to the MWH used multiplied by an adjustment computed in accordance with the following formul.a:

Fm FA = Sm - 50.0279200

2. Section 4.01 (Net Monthly Rate) of AMENDMENT NO. 1 TO REVISED SERVICE SCHEDULE TS-1 to the MP&L-SMEPA Interconnec-tion Agreement, as filed in this proceeding, shall be revised as shown:-

Section 4.01 - Net Monthly Rate

!  ? Change: 50.75 to S1.157 i

Change: 50.25 to 50.384 y- y +yy-- v. g- 4%--y.rg --y -

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Section 4.02 - Contract Demand Delete: 1) SMEPA's Off-System Generating Resource Capability (as hereinafter defined in Section 4.03), expressed in kilowatts.

Insert: 1 -) SMEPA's Off-System Generating Resource Capability (as hereinafter defined in Section 4.03), expressed in kilowatts j (excluding Losses as stated in Section 'j 4.04).

Delete: 2) the average of SMEPA's four hourly loads, expressed in kilowatts and de-livered under this Service Schedule TS-1, that are coincident with the most recent twelve month's four highest, clock-hour loads, each on a different day, on the MP&L system.

Insert: 2) the average of SMEPA's highest four hourly loads (excluding losses) oc-curring during the most recent twelve O months, each on a different day, expressed in kilowatts and delivered under this Service Schedule TS-1.

Section 4.06 - Minimum Bill ,

Delete: The net minimum bill for services rendered under this Service Schedule TS-1 shall be $100 per month per trans-mission delivery service transaction but not to exceed S1,000 per month.

Insert: The aggregate net minimum bill for  !

services rendered under this Service .

Schedule TS-1 and Service Schedule l TS-2 shall be 5300 per month.

3. With respect to AMENDMENT NO. 1 to REVISED SERVICE SCHEDULE TS-2 to the MP&L-SMEPA Interconnection 1

Agreement:

(a) Section 4.01 (Long-Term Firm Bulk Power

'( ) . Transmission Service) shall be revised as shown:

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Section 4.01 - Long-Term Firm Bulk Power Transmission Service -

Change: S0.75 to $1.127 Change: 50.25 to 50.377 (b) Section 4.02 (Short-Term Firm Bulk Power Transmission Service) shall be revised as shown:

Section 4.02 - Short-Tera Firm Bulk Power

. Transmission Service Change: 50.173 to 50.260 Change: 50.058 to 50.087 (c) Section 4.03 (Non-Firm Bulk Power Transmis-sion Service) shall be revised as shown:

! Section 4.03 - Non-Firm Bulk Power l Transmission Service Change: 1.0 mill to 1.5 mills

>() Change: 0.30 mills to 0.50 mills Section 4.04 - Contract Demand

Delete
(including losses as stated in Section 4.05) ,

Insert: (excluding losses as stated in Section 4.05)

Insert: (after the sentence ending.with the words "shall be added to the current month's bill."): -

Ratcheted billings under the newly established Contract Demand shall not-exceed eleven months.

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l Section 4.07 - Minimum Bill: -

Delete: The net minimum bill for services rendered under this Service Schedule TS-2 shall be S100 per month'per Bulk Power Transmission Service transac -

tion,.but not to exceed S1,000 per

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Insert: The aggregate net minimum bill fer services rendered under this Service Schedule TS-2 and Service Schedule TS-1 shall be $300 per month.

4. With respect to AMENDMENT NO. I to REVISED SERVICE SCHEDULE E to the MP&L-Clarksdale Interconnection Agreement:

(a) Section 50.40 (Long-Term Firm Bulk Power Transmission Service) shall be revised as shown:

Section 50.40 - Long-Term Firm Bulk Power Transmission Service Change: 50.75 to S1.127 Change: S0.25 to 50.377 (b) Section 50.41 (Short-Term Firm Bulk Power Transmission Service) shall be revised

(} as shown:

Section 50.41 - Short-Term Firm Bulk Power Transmission Service Change: Sa.173 to $0.260 Change: 50.058 to 50.087 3 (c) Section 50.42 (Non-Firm Bulk Power Transmission Se rvice) shall be revised as shown:

Section 50.42 - Non-Firm Bulk Power Transmission Service j Change: 1.0 mill to 1.5 mills Change: 0.30 mills to 0.50 mills (d) Section 50.43 (Contract Demand) shall be revised as shown:

Section 50.43 - Contract Demand Delete: (including losses as stated in Section 50.44) -

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Insert: (excluding losses as stated in

, Section 50.44)

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O Insert: (after the sentence ending with the words "shall be added to the current month's bill."):

Ratcheted billings under the newly established Contract Demand shall not exceed eleven months.

(e) Section 50'.46 (Minimum Bill) shall be revised ~

as shown:

Section 50.46 - Minimum Bill Delete: The net minimum bill for service rendered under this Service Schedule E shall be S100 per month per Bulk Power Transmission Service transaction, but not to exceed S1,000 per month.

Insert: The aggregate net minimum bill for services rendered under this Service Schedule E and any other Service O. Schedule E applicable to any member of MEAM shall be S300 per month.

5. With respect to AMENDMENT NO. 1 to REVISED SERVICE SCHEDULE E to the MP&L-Greenwood Utilities Commission Interconnection Agreement:

(a) Section 50.40 (Long-Term Firm Bulk Power Transmis-sion Service) shall be revised as shown:

Section 50.40 - Long-Term Firm Bulk Power Transmission Service Change: $0.75 to S1.127 Change: 50.25 to S0.377 (b) Section 50.41 (Short -Term Firm Bulk Power ,

Transmission Service) shall lme revised as shown: )

Section'50.41 - Short-Term Firm Bulk Power Transmission Service Change: S0.173 to 50.260

. (]) Change: 50.058 to-S0.087 l

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(c) Section 50.42 (Non-Firm Bulk Power Transmission Service) shall be revisec as shown:

Section 50.42 - Non-Firm Bulk Power Transmission Service Change: 1.0 mill to 1.5 mills Change: 0.30 mills to 0.50 mills (d) Section 50.43 (Contract Demand) shall be revised as shown:

Section 50.43 - Contract Demand I

Delete: (including losses as stated in Section 50.44)

Insert: (excluding losses as stated in Section 50.44)

Insert: (after the sentence endina with the ~

(]) words "shall be added to the current month's bill."):  ;

Ratcheted billings under the newly l established Contract Demand shall not i exceed eleven months. l (e) Section 50.46 (Minimum Bill) shall be revised l as shown: -

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, Section 50.46 - Minimum Bill Delete: The net minimum bill for ser tice rendered under this Servica Schedule E shall be S100 per month per L ulk Power Transmission Service transact'.on, but not to exceed S1,000 per monti. j Insert: The aggreJate net minimum bill for services rendered under this Service Schedule E and any other Service l Schedule E_ applicable to any member of '

MEAM shall be $300~per month.

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6 G- 6. With respect to AMENDMENT NO. 1 to REVISED SERVICE SCHEDULE E to the MPkL-Public Service Commission of Yazoo City Interconnection Agreement:

(a) Section 50.40 (Long-Term Firm Bulk Power Transmission Service) shall be revised as shown: _

Section 50.40 - Long-Term Firm Bulk Power Transmission Service Change: S0.75 to S1.127 Change: 50.25 to 50.377' (b) Section 50.41 (Short-Term Firm Bulk Power Transmission Service) shall be revised as shown:

Section 50.41 - Short-Term Firm Bulk Power Transmission Service

( Change: 50.173 to S0.260 Change: 50.058 to 50.087 (c) Section 50.42 (Non-Firm Bulk Power Transmission Service) shall be revised as shown:

Section 50.42 - Non-Firm Bulk Power Transmission Service Change: 1.0~ mill to 1.5 mills Change: 0.30 mills to 0.50 mills (d) Section 50.43 (Contract Demand) shall be revised as shown:

Section 50.43 - Contract Demand Delete: (including losses.as stated in Section 50.44)

Insert: (excluding losses as stated in Section 50.44)

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Insert: (after the sentence ending with the words "shall be added to the current month's bill."):

Ratcheted billings ;nder the newly established Contract Demand shall not exceed eleven months.

(e) Section 50.46 (Minimum Bill) shall be revised as shown: ,

Section 50.46 - Minimum Bill Delete: The net minimum bill for service rendered under this Service Schedule E shall be $100 per month per Bulk Power Transmission Service transaction, but not to exceed S1,000 per month.

Insert: The aggregate net minimum bill for services rendered under this Service '

Schedule E and any other Service Schedule E applicable to any member of

,() KEAM shall be S300 per month.

ARTICLE II

1. Revised rate schedule sheets reflecting the revisions stated in Article I shall be attached to this Settle-ment Agreement. The revisions stated in Article I shall be effective for applicable service rendered on and after July 3, 1982 until such time as they are lawfully superseded.
2. Within thirty days from the date upon which the
FERC approves this Settlement Agreement by a final FERC order, any revenues collected by MP&L for applicable service rendered 4 s l on and after July 3, 1982 in, excess of amounts that would be derived from the rate levels established.in Article I shall be

, refunded to the applicable customers together with interest calculated in accordance with Section 35.19a of the FERC's

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Regulations. Within fifteen days after any such refunds have been made, MP&L shall file a compliance report showing monthly billing determinants and revenues under the rates filed in this proceeding and the rates established in accordance with Article I of this Settlement Agreement, the m'onthly revenue refund and the monthly interest computed, together with a summary of such information for the total refund period. The compliance report shall be furnished to SMEPA, each member of MEAM and the Mississippi Public Service Commission.

ARTICLE III

1. As part of this Settlement, MP&L and MEAM are submitting a proposed Interconnection Agreement with attached Service Schedules A through I (hereinafter, the MP&L-MEAM Interconnection Agreement). The Interconnection Agreement has been approved by MP&L and by MEAM's representatives, who will recommend ratif'ication by MEAM and its members. MP&L and MEAM agree that the MP&L-MEAM Interconnection Agreement shall become effective upon ratification by MEAM and its members.
2. To the extent that the MP&L-MEAM Interconnection Agreement differs from the previously existing MP&L-SMEPA Interconnection Agreement, MP&L agrees to modify the MP&L-SMEPA Interconnection Agreement at SMEPA's request to bring it into conformance with the MP&L-MEAM Interconnection Agreement.

ARTICLE IV

() MP&L will not propose to make effective prior to December 1, 1983 any increase in any transmission rate or

O charge made effective by approval of this Settlement Agreement or the-MP&L-MEAM Interconnection Agreement; therefore, the suspension period, if any, applicable to any such proposed increase will not commence sooner than December 1, 1983.

ARTICLE V

. All terms, conditions, provisions, classifications and rates and charges of Rate Schedule MW-16, not revised in accordance with Article I, shall become final as filed upon final approval of this Settlement Agreement.

2. All terms, conditions, provisions, classifications and rates and charges of AMENDMENT NO. 1 to REVISED SERVICE l SCHEDULE TS-1 to the MP&L-SMEPA Interconnection Agreement, not revised in accordance with Article I, shall become final as filed upon final approval of this Settlement Agreement.
3. All terms, conditions, provisions, classifications and rates and charges of AMENDMENT NO. 1 to REVISED SERVICE SCHEDULE TS-2 to the MP&L-SMEPA Interconnection Agreement, not revised in accordance with Article I, shall become final as filed upon final approval of this Settlement Agreement.

1 4. All terms, conditions, provisions, classifi-cations and rates and charges of AMENDMENT NO. 1 to REVISED SERVICE SCHEDULE E to the MP&L-Clarksdale Interconnecticn

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Agreement, not revised in accordance with Article I, shall

. become final as filed'upon final approval of this Settlement Agreement.

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5. All terms, conditions, provisions, classifications and rates and charges of AMENDMENT NO. 1 to REVISED SERVICE SCHEDULE E to the MP&L-Greenwood Utilities Commission Intercon-nection Agreement, not revised in accordance with Article I, .

shall become final as filed upon final approval of this Settle- _

ment Agreement.

6. All terms, conditions, provisions, classifications and rates and charges of AMENDMENT NO. 1 to REVISED SERVICE SCHEDULE E to the MP&L-Public Service Commission of Yazoo City Interconnection Agreement, not revised in accordance with

' Article I, shall become final as filed upon final approval

() of this Settlement Agreement.

ARTICLE VI

1. MEAM and each member of MEAM agree to cease all litigation of their price squeeze allegations in Docket No.

ER82-128 and agree not to sue MP&L in any other forum on the grounds of an alleged price squeeze arising from the revised rates and charges set'out in Article I.

ARTICLE VII

1. All parties agree that the rates and charges established in Article I are designed to recover a cost of service ( for each tfpe of service priced according to cost of

!- service methods) which_ reflects full federal income tax normali-() zation to the-extent required by Section 168(e)(3) of the l

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Internal' Revenue Code of 1954, as amended by the Economic Recovery Tax Act of 1981, Public Law No. 97-34, 95 Stat. 172.

It is further agreed that to the extent necessary, a final order of the FERC approving this Settlement Agreement shall constitute the "first rate order" determining cost of service -

as such term is used in Section 209(d) of the Economic Recovery Tax Act of 1981, Public Law No. 97-34, 95 Statute 172.

2. MP&L agrees that acceptance of this Article shall be without prejudice to a.'v rights which MEAM or any member of MEAM may have as a' result of the outcome of Public S_vstems v.

FERC, Case No. 82-1183, et al. (D.C. Cir. 1982).

O ARTICLE VIII

1. All parties to this Settlement Agreement will cooperate in seeking its approval by the FERC. If this Settle-ment Agreement, which is made pursuant to Rule 602 of the FERC's Rules of Practice and Procedure, is not approved by the FERC without modification, then: (i) it shall not be binding on any party; -(11) all parties shall in that event be deemed to have reserved all their respective rights and remedies in this proceeding; (iii) this Settlement Agreement shall not be part of the record in this proceeding, and all discussions and negotiations thereon shall be privileged; and (iv) the parties shall not be obliged to negotiate further.

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2. This Settlement Agreement is made upon the express understanding that it constitutes a negotiated settle-ment with respect to all rates and charges for service to MP&L's municipal and cooperative customers as represented by SMEPA and MEAM. Except as agreed in Article VII, nothing in this Settlement Agreement shall constitute an admission by any --

party of the correctness cn: applicability of any claim, defense, rule or interpretation of law, allegation of fact, principle or method of ratemaking or cost of service determination. Except as agreed in Article VII, it is also agreed that the parties shall not be considered as necessarily agreeing with or conceding the applicability of any principle, or any method of

() ratemaking or cost of service determination, or design of rate schedule, or terms or conditions of service, or the application of any rule or interpretation of law, that may underlie, or be thought to underlie, this Settlement Agreement. It is further agreed that in any future negotiation or proceeding (other than any. proceeding involving the honoring, enforcement or construc-tion of this Settlement Agreement), the parties shall not be l bound or prejudiced by this Settlement Agreement.

t I The parties have signed and executed this Settlement Agreement by their duly authorized representatives this 4th day of November, 1982.

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4 Signature Page to ~17-S3ttlement Agreement of

.e Novemba.r 4, 1982 in FERC Docket No. ER82-128 MISSISSIPPI POWER &. LIGHT COMPANY

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MUNICIPAL ENERGY AGENCY OF MISSISSIPPI BY:

i SOUTH MISSISSIPPI ELECTRIC POWER ASSOC.

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wtr.a Camossy wem saatsmar amazzmats vaza Camommy ist *as antara persaamaa pesar ama energ regstremasta. 411 serFina La te se suspplied at ena peint af saliTery and amamarca y saa d&&sunt1*esur matar.

See appiaaable to standby and suppleastas, servica er ta paralial.syerattaa.

CIAAaCEL CF SMTT:E Three pasas, 60 cysias as a scansard sammaal voltage of 12.500 velaa er h:4 mar as awacaals as the potas rf salavery.

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83,374.00 for the first 1,300 gB et dammad 8 5.60 per G ef immed for al* e* *==

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83.376.30 per amata AB. 3 2 2 :5 First - taare shall be added ta er ashcraated from the amt nilling a mammt equal ta *.hs SE sees m1*.131ed by as adimeunet asupaces La asaarseas vsta saa followtag !ssmasa

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FA a Teal ad ssenant per grE to be applied to amare billad in tas sa:T es usati.

Fu e. m p;e acted aest of Causasy af !ssed and smalear faal maad earsag taa mesta, waisk

  • sha 1 aaslada ha Company's enumsta ef:

(a) the aansal aest of fosac and unclear fuel used far tan predescas of alastras .

amarry La Campany's gemaratang' statissa. plus ".aupany's share of the acmaal test

  • ef !seeC and sanslaar fuel asaamed in jetacly assad gesarating stataana, lese -

tan as aal teet of feesti ad muslaar taal rassessed tazunga 12:arsretam anlas tasias.Las the ammal tual eseta related ta eseesey energy salas and staar snarty sold a a easeensa dispects basis. h seet of fosaC faal small smalmas as 1:ms etaar taan tasse listad ta asemat 131 of tas Camassasas's Daifesa systm

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  • aan and 11canaees. The esos of masiaar faal small be tant ensus La aamsunt C8 ausses tant if Aseset 218 alas esstains any ampamaa

!st tenac taal sw.an has airaney hem smaamama La saa ,esos of fossC faal, it anall be saamated from &&&a asammt.

(b) h as=ani *"* ** --'- !seaC ad mc.laar fuel aseeciatad war.1 anarty purshamed 1st teammas ather tana N* *iad aa (a) belau.

(c) ales": ta marg purshamed a un - - dispatta baaia !st tast=s.hutaas and sale 3 na sparst ag area. Lasladed as saa energ heressar any ha ennumy mergy portaames, energy , W as a rammat af a asaamaled susage, ad amarg* m rd by Cammasy as ananc*asta ter saa sus 11ghar ases et energy. "'ha aneta af seat amar:7 anal

  • be saa est anergy ases ad samil -Ya sapaatry or sammad sharges.

SE = h set:matad IEE tapec 3cs campey's feetm for tas maeply af amarry ed Lt.a operatsas arms amusas .ma nonsa. sa.sd asses aan11 to "-- as tas uma of (13 geneest. Lam. (1) pursanoaa.

(3) intersanage-r.a. Laas (4) tasarsvetan salas raf arras :s in (a) answe, *ase (3) stal arvem

  • aname === * = ras w.t.t vanlaanla anlas !st rena.a 4417ery lavel.

as mal aantaly taal momans and NE anlas watan are smeeagmently aassated far vill be asas *.a datamassa any assess se taftsamey as saa ammet of taal as:sessens sopi.*.ad mar.as tan amata. ary emassa er def*asamry

.a saa ressvery of as= mal taal emeta est:ag saa carrans ):11:ag seats wC1 he ----M ist ny smezzassang er ana ag tas meet af :aa swer er maar ranswery :s ::a assus: s se recoversa .reng: taa ad:sscanst as ;re-estas ter saa sensed smassassas amasa.

.The adinacamat fastsr assessed above saall be tartsar ana *1am :n al'sw saa recsvery af grees resaasta and staar samCar rueinsa %=--a tax saarges escasasset wy tan fuel ad:ssmans roweanas.

Sassed - plas the applasa41a propertisaata part af any tirectly ""-C- tam. sapset er asseemment tuseead l er *.anas by any sweesumancal maases.y. vaas.: s.s .sume er lensa aga.:.ast taa .ausamy se taru:17 aff en :se

.Q *aupaay's saat of soeratsam ama wussa saa "ausamy La lega*.17 soiagates :s pay sa taa be.ata af antara, casassers, or ratas af, se reveens frem elas=rta power ama eaa.ty Fr serv . as esla se sa a velaams af emarty seaaratad,

~~

l- 3rwaapertes, purtasaas far sala, er amid se sa any st ar hasta vaare tares: Al* asst aa is paaethia.

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l' T3ANSP.*.3310s vci:MI C.*vnY .

F hre Castseer provsaes all facilittes at taa potat of delivery for the transformatten of tae eserty deliverec

. serevaser f ree fdessey's transmasetse weltsee of 113.C00 volta er magner to Castener's distrisuttee voltage, e ets-

, a seuas af entrry.eiz seats (36c) per G ei eensad w&11 he allowee es tae stillet unser tne aseve not Montaly tata.

Cassemer sna11 provada es&taele spese for seterias ensement es tae low voltage same of its transformer. 3:111ag small be based se tae quantsty se sensated at the sessesary voltage.

.w he average G empelled durant tas 13ete period of Castener's genatest use duttag the currest amata, but sat less tasa the higneet of the felleuses:

(1) *C: et taa higneet G estan11 ease during the previous eleven (11) anatha.

(2) The statmus G provtsed La the Agreement for Elastric Servise (3) 1.000 G ,

"*"3 CA1 me average CAR supplied during the 13.e:aute persed of custaaer's greatest use surtas tse current meeth ta sacase el 60: et sne seasuree W for tan current asets. A EVAR meter v111 he tastalled waea toets todicate a power faster less taan 331.

?AW.LT!

Bills are owe and paysele each anach uses pressacataas. !! a till is est paad wichts 13 ears from sne case thereef. Cemeasy shall have tas right ta suspend service.

C3NTRAC" FtR100 set less taae five years, and for like periods theraatter. La accordamse win :an;4sy's Aaraeneat far clastras servisa.

REsuvAT10s subject to ersere of regulatory entnerittee bevias jurisdia: Sea.

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  • ssues ry: .4 senasst. :treeter of lates. Mississtapt Power & Ligas Ceepany. *asaaes. Misatsstspi 392*3

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- AMENDMENT NO. 1 ( FINAL)

.i TO REVISED SERVICE SCHEDULE TS-1 MISSISSIPPI POWER & LIGET COMPANY

. TRANSMISSION DELIVERY SERVICE FOR SOUTE MISSISSIPPI ELECTRIC POWER ASSOCIATION (Executed as of September 23, 1980)

EFFECTIVE as of. July 3 , 1982, Service Schedule TS-1 .-

providing Transmission Delivery Service for South Mississippi Electric Power Association (SMEPA) by Mississippi Power & Light Company (MP&L) is amended as follows:

Section 4.01 -

Net Monthlv Rate Change: 50.75 to 51.157 Change: 50.25 to 50.384 s -

Section 4.02 -

Centract Demand Delete: 1) SMIPA's Off-System Generating Resource Capability (as hereinafter defined in Section 4.03), expressed in kilowatts.

Insert: 1) SMEPA's Off-Systeg Generating Resource Capability (as hereinafter defined in Section 4.03), expressed in kilowatts (excluding Losses as stated in Section 4.04).

Delete: 2) the average of SMEPA's four hourly loads, expressed in kilowar:s and delivered under this Service Schedule TS-1, that are coin-cident with the most recent twelve month's four highest clock-hour loads, each on a ,

different day, on the MP&L system.

. Insert: 2) the average of SMEPA's highest four hourly loads (excluding losses) occurring during the most recent welve months, each on a 75 m different day, expressed in kilowatts and -

delivered under this Service Schedule .TS-1.

- - , ,, e - , , . , ,..._n.,- . . - - , . , , . . . , . -, , , , ,

- 2 i

.@ Section 4.06 -

Minimum Bill ,

Delece: The net minimum bill for services rendered under this Service Schedule TS-1 shall be 5100 per month per transmission delivery service transaction but not to exceed

$1,000 per month. .

Insert: The aggregate net minimum bill for services rendered under this Service Schedule TS-1 and Service Schedule TS-2 shall be 5300 per month.

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. _ <'..:.SO C ?a' *._ v^.N (F.xect ed as of Januarv. 16, 1980)

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Cemeanv. ( .m , ) is amended as #c11cws:

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."'** =. ~ u =_ _ '. - =_.~..<..._' .c. s _' ... .= = .- .-' _ =_

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      • .=..b.e. _. _ . m. s. . . ._; 4. __.._ m.._**< .; . .. . .a_ _.=

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''1 he 5300 per =enth.

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AMINDMENT NO. 1 (FINAL)

O )

TO l REVISED SERVICE SCHEDULE I BULK POWER TRANSMISSION SERVICE CITY OF CLARKSDALE AND .

MISSISSIPPI POWER & LIGHT COMPANY ..

(Executed as of October 11, 1979)

IFFICTIVI as,of July 3 , 1982, Service Schedule I providing Bulk Power Transmission Service for the City of Clarksdale (City) by Mississippi Power & Light Company (MP&L)

. is amended as follows:

Section 50.40 - Lene-Term Firm Bulk Power Transmission Service Change: 5 0.75

  • to $1.127 Change: 30.25 to 50.377 Section 50.41 - Short-Term Firm Sulk Power Transmission Service Change: 50.173 to 50.260 Change: 50.058 to S0.087 Section 50.42 - Non-Fir = Eulk Power Transmission Service Change: 1.0 mill to 1.5 mills Change: 0.30 mills to 0.50 mills Section 50.43 -

Contract Demand

(

(J Delete: (including losses as stated in Section 50.44)

Insert: (excluding losses as stated in Section 50.44) l 1

2

...s e .- . - . ( a ' _ e- .'..e s e.a. . =..._ - *_ a_nd_'. .3 w d_ ". . . " . ..

wc ds "shall be added := the curren:

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s

  • ...* . . .". . . e d. x_ _'__ ' ' _' .v3 s " .d e_ - _- ".e a.ew'v established Centra =: De=and shall not exceed eleven months.

Section 50.46 - Minimum Eill m..k.e e ._4 . _4..tm w,_4_T_1 .* c _. s e ,4.

.. e .m_..4

_ -e _.._ A_

D e _1 e. ..e . .. .

under this Service Schedule I shall be 5100

.ee =cnth .ce Bulk ?cwer Transmission Service transaction, but ne: := exceed. 51,000 per mon:h. --

Insert: The aggregata net minimum bill fer services rendered under this Service Schedule I shall be 5300 per month.

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69 e

AMENDMENT NO. 1 TINAL)

'(E).

TO REVISED SERVICE SCEEDULE E

BULK POWER N NSMISSICN SERVICE GREENWOOD UTILITIES COMMISSION AND MISSISSIPPI POWER & LIGHT COMPANY

~~

(Executed.as of Octcher 11, 1979)

EFFECTIVE as of July 3 , 1982, Service Schedule E providing Bulk Po'wer Transmission Service for Greenwood Utilities Cc= mission (City) by Mississippi Power & Light Company (MPEL) is amended as follows:

O Section 50.40 - tone-Term Fir = Sulk Power Transmission Service Change: 50.75 to S l.12 7 Change: S0.25 to 50.377 Section 50.41 - Short-Term Firm Sulk Power' Transmission Service Change: 50.173 to 50.260 Change: 50.058 to 50.087 I l

Section 50.42 - Ncn-Tirm Eulk Power Transmission Service Change: 1.0 mill to 1.5 mills Change: 0.30 mills to 0.50 mills Section 50.43 -

Contract 3emand Delete: (including lesses as stated in Section 50.44)

.O- .

Insert: (excluding losses as stated in Section 50.44) 4 k  ;----

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ge_t._._._.. .n.w.e .te . __ 4 ~._4 . mum * -- 4 ' ---

' " - - s e _-v'_ _-=_ s _- _.,d e _- = -A _

under uhis Service Schedules I shall be $100

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- " M._- _Sul.k o. cwe _ *._ _= ..s. _4 _e s_ ' c .. c.e_._._

"4-=

__ a..sa c __' e n , "t. _ --

..e- . c =x ea_d 5'_,000 e-

_ ~-....~..

,s e _- - .- *. *. .e a c s~_ =_ c,= . = .~.=_ _ . .' ..4...~ ~ ** ___ _' c .- c. e _- .-'_ - =_ s rendered under this Service Schedule I shall be s'00 .e_- mc.. *.. .

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(" I UNITED STATES OF AMERICA  !

BEFORE THE

, FEDERAL ENERGY REGULATORY COMMISSION Mississippi Power & Light Company ) Docket No. ER82-128 EXPLANATORY STATEMENT AND REFERENCES IN SUPPORT OF PROPOSED .

SETTLEMENT AGREEMENT The proposed Settlement Agreement is intended to resolve all issues raised in Docket No. ER82-128 which involves.

-rates, charges and terms of service for a variety of services offered by MP&L to South Mississippi Electric Power Association

~

(} (SMEPA), the. Municipal Energy Agency of Mississippi (MEAM) and individual municipal members of MEAM. The fundamental purpose of MP&L's filing and the procedural background leading to this Settlement Agreement are explained in: (1) MP&L's transmittal letter-accompanying the filing; (2) the FERC's suspension order dated February 2, 1982; and (3) the Introduction to the Settle-ment-Agreement. /

In addition to changes in rates and charges, Article I

of the Settlement Agreement also contains revisions to the Contract Demand and Minimum Bill provisions of Revised Service Schedules TS-1 and TS-2 and E. 'The proposed revision to the  !
  • / Helpful background information can also be found in'MP&L's i submissions of October 3, 1979 and December 21, 1979 of executed Settlement Agreements'with'MEAM and SMEPA in Docket
p. Nos. ER78-583'and 584.

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Contract Demand provision of Revised Service Schedule TS-1 is intended to alleviate the billing effect of a single-peak de-mand ratchet proposed in the original filing in this proceeding.

The other proposed revisions are minor cnd are self-exp]anatory.

As an integral part of achieving a settlement in this preceeding, MP&L and MEAM culminated lengthy negotiations concerning the establishment of a comprehensive interconnection arrangement between MEAM and MP&L. Article III provides the resulting MP&L-MEAM Interconnection Agreement shall become effective without suspension upon ratification by MEAM and its members.

The proposed MP&L-MEAM Interconnection Agreement has

() been conceived with the idea that it will supplant MP&L's f ull requirements municipal rate schedule and the individual inter-connection agreemants with the 3 municipals that already have their own generation resources when ratified by each of those municipr.ls. Specifically, the services available to MEAM under the Interconnection Agreement "are intended to complement the Capacity and-Energy available to MEAM from the generation resources of-MEAM's Members and which may be available to MEAM from the Grand Gulf Nuclear Station or from other such sources."

The MP&L-MEAM Interconnection Agreement is patterned closely af ter the currently effective Interconnection Agreement between MP&L and SMEPA. -(FG&L Rate Schedule FERC No. 251 with l

l

- -, c . .., - - - - . -. . . = . . , ,-,,- - ,,,-r. - , . - - . - - - - . .

1 t

c () Supp'ements.) The Service Schedules to both Agreements provide on a reciprocal basis for Emergency Service, Maintenance Service, Economy Energy and Inadvertent Transfer of Energy.

Additionally, the new MP&L-MEAM Interconnection Agreement provides that MP&L will continue to make available Reserve Capacity Service as is now provided for in service schedules to the three interconnection agreements with the self-generating members of MEAM. Further, consistent with Service Schedule E to each of those three agreements, another Service Schedule to the new Interconnection Agreement provides for the rendering by MP&L of bulk power transmission service to MEAM. This service t

is similar to the transmission service available to SMEPA under f) Service Schedule TS-2 to the MP&L-SMEPA Interconnection Agreement.

Unlike MP&L's present arrangement with SMEPA, however, the MP&L-MEAM Interconnection Agreement includes Service

, Schedules for Reactive Power and Transformation Capacity and, most importantly, an unprecedented Service Schedule under which MP&L will provide Partial Requirements to MEAM.

The Partial Requirements Service Schedule (Service Schedule A) will enable MEAM, subject to specified conditions, advance scheduling, ratcheting and load factor limitations, to purchase firm power in monthly increments at the same base rates MP&L will sell full-requirements service under Article I of the Settlement Agreement. The Service Schedule does-provide, D

6 o

-n

C however, that MEAM shall pay an excess demand charge of 125% of the base demand charge for excess demand as defined in the Schedule.

Under Article III of the Settlement Agreement, MP&L agrees to modify the MP&L-SMEPA Interconnection Agreement at SMEPA's request to bring it into conformance with the MP&L-MEAM Interconnection Agreement.

All other Articles of the Settlement Agreement are self-explanatory.

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- UNITED STATES OF AMERICA

(')

BEFORE THE FEDERAL ENERGY REGULATORY COMMISSION Mississippi Powar & Light Company ) Docket No. ER82-128 DRAFT LETTER ORDER In immediately preceding dockets.(ER78-583, ER78-584 and ER79-529), the,FERC used letter orders to accept settlement agreements submitted by MP&L to resolve very similar issues with MEAM and SMEPA. Accordingly, MP&L submits a draft letter order in the format used to terminate those proceedings:

Docket No. ER82-128 Mississippi Power & Light Company O Attention: Mr. Frank S. York, Jr.

Vice President and Secretary P.O. Box 1640 Jackson, Mississippi 39205

Dear Mr. York:

On November 5, 1982, your company submitted pursuant to Rule 602'of the Commission's Rules of Practice and Procedure, an offer of settlement concerning the rendering of (1) full-requirements service to five municipals; (2) transmission service to three interconnected municipals; and (3) trans-mission service to one GET association of rural cooperatives.

All customers in these classes of service were represented in these proceedings. The settlement contains a proposed new Interconnection Agreement between MP&L and the Municipal Energy i

s

i P '

,(m Agency of Mississippi. It is to become effective upon ratifica-tion by MEAM and its members. The settlement was certified to the Commission by the Administrative Law Judge on ,

as a complete resolution of all issues pending in the proceeding.

The Commission Staff filed comments in support of this offer of settlement on . No other comments-were filed. .

The offer of settlement, including the proposed new MP&L-MEAM interconnection agreement is in the public interest and is hereby accepted. The Commission's acceptance of this settlement does not constitute approval of or precedent regard-ing any principal or issue in the proceeding.

Other than the new MP&L-MEAM Interconnection Agree-O ment, the revised Service Schedules attached to the settlement agreement are accepted to become effective on July 3, 1982, as designated on the Enclosure. The MP&L-MEAM Interconnection Agreement is to become effective upon ratification by MEAM and its members.

All revenue amounts, if any, collected in excess of the settlement rate levels must be refunded within 30 days of the date of this letter order, with interest computed in accordance with Section 35.19a of the Commission's Regulations.

Within 15 days after refunds have been made, the Company shall file with this Commission a compliance report showing monthly billing determinants and revehi3s under prior, present and .

je settlement rates, the monthly revenue refund, and the monthly

~

1 i

O interest computed together with a summary of such information for the total refund period. In addition, the Company shall furnish a copy of such report to each party on the service list in this proceeding and to each State Commission within whose jurisdiction the resale customers distribute and sell electric energy at retail. .

This order is without prejudice to any findings or orders which have been made or which will hereinafter be made by the Commission, and is without prejudice to any claims or contentions which may be made by the Commission, its staff, or i

any party or person affected by this order, in any proceeding now pending or hereinafter instituted by or against Misissippi

'O Power & Light Company.

Upon satisfactory completion of the above compliance and refund report requirements, the proceeding is terminated.

By direction of the Commission.

Secretary

'O INTERCONNECTION AGREEMENT between MISSISSIPPI POWER & LIGHT COMPANY and MUNICIPAL ENERGY AGENCY OF MISSISSIPPI

, Dated as of , 1982 THIS AGREEMENT, dated as of _, 1982, is between MISSISSIPPI POWER & LIGHT COMPANY, a Mississippi corporation (MP&L) and the MUNICIPAL ENERGY AGENCY OF MISSISSIPPI, a Mississippi joint agency (MEAM).

MP&L owns and operates an electric generation, trar4smission and distribution system in the State of Miscis-(} sippi and, together with its facilities, is part of the Middle South Utilities System. MEAM is a joint agency organized on November 21, 1978 under Chapter 363, Laws of Mississippi of 1978, by the Mississippi cities of Clarksdale, Greenwood, Yazoo City, Leland, Kosciusko, Canton, Durant, and Itta Bena. Three of MEAM's Members, the Cities of Clarksdale, Greenwood and Yazoo City, each owns and operates an electric generation, transmission and distribution system and currently supplies power to its customers directly from such system. Five of MEAM's Mem-bers, the Cities of Leland, Kosciusko, Canton, Durant and Itta Sena, presently purchase their total Capacity and 1

9 4 8

.i Energy requirements at wholesale from MP&L. The systems of i

MP&L and each of MEAM's Members are interconnected by 115 KV transmission lines and related facilities, which lines and facilities are installed and in operation.

MEAM is considering the acquisition of additional generation resources including up to a 2.48% undivided ownership interest in the Grand Gulf Nuclear Station, owned by Middle South Energy, Inc., a member of the Middle South Utilities System. The services provided to MEAM hereunder are intended to complement the Capacity and Energy available to MEAM from the generation resources of MEAM's Members and which may be available to MEAM from the Grand Gulf Nuclear Station or from other such resources.

MEAM and MP&L agree that they should provide each other with certain mutual support services. Accordingly, the parties hereto are concurrently entering into this Interconnection Agreement (and the Service Schedules attached hereto, which shall be considered part of this Interconnection Agreement) and the Coordination Agreement and intend to enter into the Substitute Power Agreement, related to Grand Gulf. However, neither the execution of this Interconnection Agreement, nor any provision herein contained, shall obligate MEAM to purchase any interest in Grand Gulf.

- ( l l

. a n .. _.

NOW, THEREFORE, in consideration of the premises n'-

and the mutual covenants herein set forth, MP&L and MEAM hereby agree as follows:

ARTICLE I - DEFINITIONS Section 1.01. . Bulk Power Transmission Service shall mean the delivery by MP&L of Capacity and attendant Energy for MEAM from non-MP&L owned generation in accordance with the provisions of Section 5.01.

Section 1.02. Capacity shall mean the capability of producing Energy and is measured in kilowatts.

Section 1.03. Contract Year shall have the

- meaning set forth in Section 8.02.

Section 1.04. Coordination Agreement shall mean the Coordination Agreement between MP&L and MEAM entered into concurrently herewith, which establishes the Coordina-tion Committee, as hereafter supplemented or amended.

Section 1.05. Coordination Committee shall mean the committee established by the parties under the Coordina-tion Agreement.

Section 1.06. Decremental Cost shall mean the t

incremental out-of-pocket expense in any hour, expressed in 4

mills per'KWH, to the supplied party of generating or obtaining Energy from any-other source if Economy Energy f

l-l 3._ _ ,

i

e

. were not to be furnished to it, including but not limited to t

the cost of placing w generating units in operation (if I l avoided by receipt of such Energy), cost of replacement fuel I

which would have been burned, incremental labor, supplies

and maintenance, and the incremental increase or decrease in transmission losses attributable to the transaction.

, Section 1.07. Economy Energy shall mean Energy i 4

available on a "when, as, and if" basis from the generating resources of a party to the other party to reduce the output i from the supplied party's available generating resources.

Section 1.08. Emercency Service shall mean Energy supplied by one party to the other party during any period when forced outages of generating units or transmission or other facilities caused by failure of such units or facil-ities to function properly exist temporarily on the system of the supplied party, so that the generation, transmission or other facilities of such system, including purchases (not including such Emergency Service), are inadequate to carry the party's system load responsibility and provide the operating reserves deemed necessary by the party in need.

Section 1.09. Energy shall mean the quantity of electricity produced (or consumed) over a period of time and is measured in kilowatt hours.

Section 1.10. Federal Power Act shall mean the I

Federal Power Act, 16 U.S.C. 5 792, et sec.

i .

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......,o Section 1.11. FERC shall mean the Federal Energy l O Regulatory Commission or any successor or substituted agency having comparable responsibilities.

! Section 1.12. Firm Capacity shall mean Capacity intended to have assured availability to the customer to

! meet his load requirements.

Section 1.13. Force Maieure shall mean any cause beyond a party's control which prevents a party from per-forming its obligations hereunder including, but not limited to, any act, delay or failure to act on the part of any state or federal governmental authority, whether legisla-tive, executive, judicial or administrative, including delay or failure to act by any governmental authority in the issuance of any necessary permits or licenses and the 4

prohibiting of acts necessary to performance hereunder or the permitting of any such acts only subject to unreasonable conditions; acts of God; damage, accidents or disruptions i

including but not limited to fire, flood, explosion, tornado, hurricane, earthquake, windstorm or equipment breakdown; failure or delay beyond a party's control in i securing materials, equipment, services or facilities; labor difficulties such as strikes, slowdowns or shortages; delays in transportation; civil unrest, disturbances, demon-strations; provided, however, that in no event shall unavailability of funds be considered Force Majeure.

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Q Section 1.14. Good Utility Practice shall mean any of the practices, methods and acts engaged in or

approved by a significant proportion of the electric utility industry during the relevant time period, or any of the practices, methods and acts which, in the exercise of
reasonable judgment in light of the facts known at the time

- the dec'ision was made, could have been expected to accom- --

plish the desired result at the lowest reasonable cost consistent with reliability, safety and expedition. Good l

P Utility Practice is not intended to be limited to the L

optimum practice, method or act to the exclusion of all ethers, but rather to be a spectrum of acceptable practices, l

methods or acts.

Section 1.15. Grand Gulf shall mean the Grand Gulf Nuclear Station in Claiborne County, Mississippi.

Section 1.16. Holidays shall mean those days designated as such by the NAPSIC accepted guides for inter- l connected operation or those days agreed to by the Coordina-tion Committee.

Section 1.17 Incremental Cost shall reean the incremental out-of-pocket expense in any hour, expressed.in mills per KWd, to the supplying party of furnishing Economy Energy, Emergency Service, or Maintenance Service, including but not limited to the cost of placing generating units in operation (if actually incurred), cost of replacement fuel O

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(]) as burned, incremental labor, supplies and maintenance, and the incremental increase or decrease in transmission losses J

j attributable to the transaction.

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, Section 1.18. Interconnection Point shall mean U

each interconnection point between MP&L and MEAM established

,, under the provisions of Article II.

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Section 1.19. Maintenance Service shall mean ..

] Energy supplied by one party to the other party during any period when scheduled outages of generating units or trans-mission or other facilities coordinated and agreed to by the

[ Coordination Committee exist on the system of the supplied l party, so that the generation or transmission or other facilities of such system, including purchases (not includ-

) ing such Maintenance Service), are inadequate to carry the party's system load responsibility and provide the operating i reserves deemed necessary by the party in need.

Section 1.20. MEAM shall mean the Municipal Energy Agency of Mississippi, a Mississippi joint agency.

Section 1.21. MEAM's Members are those Missis-sippi cities which are members of MEAM pursuant to Chapter 363, Laws of Mississippi of 1978, as may be now or hereafter supplemented or amended.

Section 1.22. MEAM Points of Deliverv shall mean those points of delivery of MEAM or MEAM's Members as are served from the MP&L Transmission System and which are

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Section 1.23. MEAM Off-System Generating

. Resources shall mean the generating resources of MNAM or of j one or more of MEAM's Members, which are located on the MP&L

Transmission System and which provide Capac'ity and Energy to -

MEAM.

I Section 1.24. MEAM Remote Generating Resources

shall mean the generating resources of MEAM or of one or more of MEAM's Members, which are not located on the MP&L Transmission System or on the MEAM Transmission System and which provide Capacity and Energy to MEAM.

Section 1.25. MEAM Transmission System shall mean

! the electric transmission system and related facilities

, owned or leased by MEAM or by one or more cf MEAM's Members.

i Section 1.26. Middle South Utilities System shall r

mean Middle South Utilities, Inc., a holding company regis-i, tered under the Public Utility Holding Company Act of 1935, and all of its various direct and indirect subsidiaries.

Section 1.27. MP&L shall mean Mississippi Power &

Light Company, a Mississippi corporation.

Section 1.28. MP&L Transmission System shall mean the electric transmission system and related facilities owned or leased by MP&L.

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h Section 1.29. MSE shall mean Middle South Energy, l Inc., an Arkansas corporation.

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d Section 1.30. NAPSIC shall mean the North Ameri-

i can Power Systems Interconnection Committee or any successor
j in its function.

't d Section 1.31. Net System Load shall mean, with

, respect to MEAM, the 60-minute integrated kilowatt demand --

.] during any clock hour determined by the sum of (i) the v

actual net output of those MEAM generating resources located in one or more of MEAM's Members' systems, (ii) the metered quantities at MEAM Points of Delivery, and (iii) with respect to the Interconnection Points, the metered quan-tities "in" less the metered quantities "out."

Section 1.32. Partial Recuirements Service shall mean Capacity and attendant Energy supplied by MP&L to MEAM on a firm power basis to be used to supply MEAM's own use and resale requirements to MEAM's Members' ultimate customers to the extent that these requirements are not suppl!.ed from generation owned or leased by MEAM or by any of MEAM's Members or from other non-MP&L owned generation.

Normally, Partial Requirements Service shall not include

! service for resale to other Public Utilities; however, Capacity and Energy committed in excess of MEAM's resale requirements to MEAM's Members' own use and ultimate

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l customers may be resold by MEAM to others from time to time, d .

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Energy as hereinafter described.

Section 1.33. Peak-Period Hours shall mean those i hours designated as such by the NAPSIC accepted guides for i

interconnected operatien or those hours agreed to by the

] Coordination Committee.

Section 1.34. Public Utility shall mean a person, .,

a private or public corporation, a governmental entity, a municipality, a co-operative, a joint agency, an asso-

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ciation, a joint stock association or business trust owning, operating or proposing to own or operate equipment or facilities for the generation, transmission, or distribution of electricity; provided that, except for municipalities,

() governmental entities, joint agencies, or rural electric co-operatives, "Public Utility" is restricted to those which are or will be public utilities under the laws of the State in which the Public Utility transacts or will transact business or under the Federal Power Act, and which are or will be providing electric service under a contract or rate schedule on file with and subject to the regulation of a state regulatory commission or the Federal Energy Regulatory Commission. '

Section 1.35. Reserve Camacity shall mean the Capacity and associated Energy available on a supplemental

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. . . . e, basis to meet the reserve-generating Capacity requirements set forth in Section 3.03 hereof.

Section 1.36. Scheduled Deliveries shall mean the quantities of Capacity and/or Energy to be delivered to or i 1

for MEAM by MP&L under this Interconnection Agreement and '

[ all Service Schedules hereto. Deliveries to MEAM shall be I

deemed to be made at the secondary terminals of a substation .,

serving an Interconnection Point or a MEAM Point of Deliv-i i ery. Scheduled Deliveries equal Scheduled Quantities less transmission and transformation losses in the MP&L Trans-mission System as set forth in Section 4.10.

Section 1.37. Scheduled Quantities shall mean the quantities of Capacity and/or Energy scheduled by MEAM to be delivered to or for it by MP&L under this Interconnection Agreement and all Service Schedules hereto, at the point of input into the MP&L Transmission System. As the case may be, the point of input into the MP&L Transmission System shall be deemed to be at the low voltage terminals of the step-up transformer at (i) a MEAM Off-System Generating Resource, (ii) an Interconnection Point, or (iii) an MP&L generating resource located on the MP&L Transmission System, or at the point of interconnection between the MP&L Transmission System and the transmission systems of other i

Public Utilities, with which MP&L is interconnected.

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, delivery.

Section 1.39. Valley-Period Hours shall mean.

those hours designated as such by the NAPSIC accepted guides

  • O for interconnected operation or those hours agreed to by the

! Coordination Committee.

, ARTICLE II -

INTERCONNECTION FACILITIES Section 2.01. Interconnection Points. The initial Interconnection Points hereunder shall be at the O following locations:

(1) the terminals of the City of Clarksdale's 115,000 volt transmission line on MP&O s terminal structure at MP&L's Clarksdale substation as shown on the sketch marked Exhibit B attached hereto and made a part hereof; (2) at the terminals of the City of Greenwood's 115,000 volt transmission line on MP&L's terminal structure at MP&L's Greenwood substation as shown on tlie sketch marked Exhibit C attached hereto and made a part hereof; and y egg %www qyo.O .gsweye*y A&W QA .%> _

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(} (3) at the point in MP&L's Yazoo City municipal switching station bhere Yazoo City's

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a 115,000 volt circuit is attached to MP&L's AX Tower as shown on the sketch marked Exhibit D

't j attached hereto and made a part hereof.

j- With respect to each of the Interconnection Points, except j as otherwise provided in a separate agreement, MEAM shall ..

i R install, own, operate and maintain or cause to be installed, 1

l operated and maintained, facilities on its side of the line

, of responsibility, and MP&L shall install, own, operate and maintain facilities on its side of the said line of respon-sibility, as shown on Exhibits B, C, and D. Each party will grant the other suitable easements for the installation,

() ownership, operation and maintenance of such facilities as may be necessary. The coordination of protective relaying shall be approved by the Coordination Committee. Additional Interconnection Points shall be added only pursuant to provisions of Article V.

P Section 2.02. Changes in Cacacity at Inter-connection-Points Between the Parties. Capacity of all Interconnection Points may from time to time be increased, decreased or otherwise modified as determined from joint 1

- studies, if required and/or as agreed upon by the parties. l Section 2.03. Changes in Interconnection Points Between MEAM g -MP&L and Third Parties. Because of the ph

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technical complexity of the arrangements between MP&L and 4 MEAM and because of the technical complexity of arrangements 1

j between both MP&L and MEAM and others involving power 1

] transfers at multiple interconnection points, MEAM and MP&L 1

agree that any interconnection for the purpose of power exchanges with any person not a party to this Agreement will be established, and any alteration or termination of exist-

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ing interconnections with any person not a party of this S

Agreement will be accomplished, only after full discussion of all technical details affecting the other party's trans-mission system or system operations, with representatives of MP&L'or MEAM, as the case may be, and satisfactory resolution of all technical problems related thereto. MP&L and MEAM will work with each other in good faith to overcome any technical problems arising from any such proposal, and neither party will withhold its concurrence on the resolu-tion of the technical problems except upon a showing of an adverse impact on its transmission system or its system operation.

Section 2.04. Interconnection with Other Systems.

Subject to the foregoing provisions of Section 2.03, nothing contained in this Agreement shall restrict or limit either party from establishing, altering or terminating inter-connection points with any person not a party to this Agree-ment or amending or entering into agreements therefor.

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) Section 2.05. Meters. MP&L will install and lI maintain at its own cost metering equipment at each Inter-connection Point and at each MEAM Point of Delivery, as the 1

g case may be, as required to provide data on kilowatt-hours

.i 4

per clock hour, kilovar-hours per clock hour, and to i

t register total kilowatt-hours. Both "in" and "out" metering equipment shall be installed at each Interconnection Point.

The metering equipment at all Interconnection Points, at all s

M?.AM Points of Delivery, and at any additional MEAM Points of Delivery or Interconnection Points established hereunder, shall be used for billing purposes, and shall be tested in accordance with methods and procedures developed by the Coordination Committee and, at MEAM's request, shall provide

at MEAM's expense indication devices necessary for the establishment of a remote load and generation control area.

Where metering is at voltages of 115 KV or greater, the Capacity and Energy quantities metered at the MEAM Points of Delivery and Interconnection Points ("in" meters)-shall be reduced by 1% to compensate for 13.8 KV delivery equivalence. Where metering is at voltages of 115 KV or greater, the Capacity and Energy quantities metered at the Interconnection Points ("out" meters) shall be increased by 1% to compensate for 13.8 KV delivery equivalence.

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ARTICLE III - RELIABILITY CONSIDERATIONS Section 3.01. Oeerating of Systems in Parallel.

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y It is intended that the electrical systems of the parties shall normally be operated in parallel; however, either a party may from time to time interrupt the parallel opera-tion, if, in its opinion, it is reasonably required for the

  • O safe or satisfactory operation of its system.

f Section 3.02. Control of System Disturbances.

Insofar as practicable, MP&L and MEAM shall protect, operate and maintain their respective systems so as to avoid or ,

minimize the likelihood of disturbances which might cause impairment of service in the system of the other party. The

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parties recognise their responsibility to their respective

.O' customers with respect to continuity and adequacy of service and their responsibility to each other with respect to reliability of bulk power supply facilities. As a reli-ability consideration, but without prejudice to the right of either party to interrupt the parallel operation of the two systems as provided in Section 3.01, each party agrees to install underfrequency relays.to disconnect automatically a

. minimum of thirty percent (30%) of its load (in MP&L's control area) in three (3) ten percent (10%) steps as follows:

(a) Disconnect no less than 10% of system load ~

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when frequency drops to 59.3 Hz; (b) Disconnect no less than a second 10% of system load when frequency drops to 59.0 H:;

and (c) Disconnect no less than a third 10% of system load when frequency drops to 58.7 H .

Each party will review the amount of load that would be dis-connected automatically at least once each year and make such adjustments and changes as are necessary to assure that no less than thirty percent (30%) of its load will be auto-matically disconnected at the intervals set forth above, unless otherwise changed by mutual agreement from time to time in accordance with the criteria of the Southwest Power Pool. Such underfrequency relays shall be tested according to procedures developed by the Coordination Committee.

Section 3.03. Generatine Cacacity Reserve Recuirements. MP&L shall maintain through ownership, pur-chase, exchange, or otherwise, a minimum reserve generating Capacity for reliability puiposes in accordance with prac-tices applicable to its responsibility to the operating companies of the Middle South Utilities System. MEAM shall maintain through ownership, purchase, exchange, or other-wise, a minimum reserve generating Capacity for reliability purposes at least equal to the percentage oJ. reserves maintained by the Middle South Utilities System provided,

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[ however, in no event shall MEAM be required to maintain minimum reserve generating Capacity for reliability purposes 1

under this Section in excess of twenty-five percent (25%) of its estimated annual peak load during the current Contract

., Year. Firm Capacity purchased by MEAM (including Partial Requirements Service) shall be deducted from the Net System i

Load in determining such annual peak load to whf.ch to apply _

the reserve requirements set forth herein. MEAM shall provide reserve generating Capacity for reliability purposes and associated backup Energy for all of the generating resources of MEAM and of MEAM's Members, including MEAM's or any of MEAM's Members' Capacity entitlement in any generat-ing stations jointly owned with MSE, MP&L or others. For

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purposes of this Section the generating Capacity of the generating resources of MEAM, MEAM's Memberss and MP&L shall mean the dependable load-carrying capability of generating stations as demonstrated from time to time in accordance with Good Utility Practice under actual operating conditions using the predominantly available fuel for each unit in that station. MEAM shall maintain all cr a portion of such minimum required reserve generating Capacity as spinning reserves, ready reserves and regulating Capacity, in such proportions as may reasonably be required, in accordance with Good Utility Practice and the practices of the South- l 1

west Power Pool. Subject to the maximum reserve generating O l l

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l Capacity limitation set forth above, in the event MEAM elects not to construct or elects to defer construction of j additional generating Capacity, it shall purchase from MP&L a

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or a third party sufficient Reserve Capacity on an annual j basis to bring its Capacity at the time of its annual peak 4

load up to the percentage required hereunder.

, ARTICLE IV - MUTUAL SUPPORT SERVICES 1

i Section 4.01. Partial Requirements Service. MP&L will supply MEAM with Partial Requirements Service in accordance with the terms and conditions of applicable rate schedule (s) filed from time to time with duly constituted

. regulatory authority, which rate schedule (s) shall be attached hereto and made a part hereof. The initial rate schedule for Partial Requirements Service is attached hereto as Service Schedule A.

l Se'etion 4.02. Emergency Service. Each party l

hereto will supply the other party with Emergency Service to the fullest extent available from the supplying party and desired by the party in need. Such Emergency Service shall be provided if and when available from the supplying party's i own generation and from the generation of others to the j extent it can do so without impairing or endangering service

. to its own customers, including other electric systems to i

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which it has firm commitments. The party taking Emergency Service shall use all practicable means to restore the affected units or other available units or facilities to

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j service as expeditiously as possible. Such service shall be paid for in accordance with applicable rate schedule (s) i filed from time to time with duly constituted regulatory 9

authority, which rate schedule (s) shall be attached hereto and made a part hereof. The initial rate schedule for k Emergency Service is attached hereto as Service Schedule B.

Section 4.03. Maintenance Service. Each party hereto will supply the other party with Maintenance Service

, to the fullest extent available from the supplying party and desired by the party in need. Such Maintenance Service shall be provided if and when available from the supplying party's own generation and from the generation of others to the extent it can do so without impairing or endangering service to its own customers, including other electric systems to which it has firm commitments. Such service shall be paid for in accordance with applicable rate sche-4 dule(s) filed from time to time with duly constituted regu-latory authority, which rate schedule (s) shall be attached I

hereto and made a part hereof. The initial rate schedule

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[ for Maintenance Service is attached hereto as Service Schedule C.

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Section 4.04. Economy Energy. From time to time, there may be Economy Energy available from the generating resources of a party. When such Economy Energy is, in the l sole opinion of the supplying party, available, such Economy

, Energy may be offered to the other party to enable the supplied party to reduce output from its generating re-J 1

sources. Economy Energy shall be available only on a "when, as, and if" basis, so that all Economy Energy sales can be i

, terminated by the supplying party at any time upon notice to the supplied party. The supplied party shall pay the Incre-mental Cost of the supplying party plus one-half the differ- .

ence between that cost and the supplied party's Decremental Cost. Such service shall be paid for in accordance with applicable rate schedule (s), filed from 'cime to time with duly constituted regulatory authority, which rate sched-ule(s) shall be attached hereto and made a part hereof. The initial rate schedule for Economy Energy is attached hereto as Service Schedule D.

Section 4.05. Reserve Cacacity Service. MP&L will make available to MEAM Reserve Capacity service in accordance with the terms and conditions of applicable rate schedule (s) filed from time to time with duly constituted i regulatory authority, which rate schedule (s) shall be at-tached hereto and made a part hereof. The initial rate l

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schedule for Reserve Capacity service is attached hereto as (2)

Service Schedule E. ,

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Section 4.06. Inadvertent Transfers of Enerev.

An inadvertent transfer of Energy is a transfer of Energy j between and through the transmission systems of the parties hereto differing from the scheduled quantities or load responsibilities as a result of the inherent physical and electrical characteristics of the transmission systems, the 1

limitations in the equipment used to control the flow of electricity between the parties' transmission systems, or the limitations in the operation of such equipment. An inadvertent Energy account will be maintained by both MP&L and MEAM, and inadvertent Energy will be cleared and accounted for, from time to time, by the parties as pre-scribed in industry guidelines. MP&L and MEAM will use their reasonable best efforts in accordance with Good Utility Practice to minimize inadvertent Energy transfers.

Inadvertent transfers of Energy shall be accounted for in accordance with applicable rate schedule (s) filed from time to time with duly censtituted regulatory authority, which rate schedule (s) shall be attached hereto and made a part hereof. The initial rate schedule for inadvertent Energy is attached hereto as Service Schedule F.

Section 4.07. Reactive Power. It is intended that neither party shall impose an undue burden upon the

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4 other with respect to the flow of kilovars. Reactive power O shall be paid for in accordance with applicable rate sched-4 ule(s) filed from time to time with duly constituted regula-

) tory authority, which rate schedule (s) shall be attached c) l.I ,

hereto and made a part hereof. The initial rate schedule

'i 9 for reactive power is attached hereto as Service Schedule G.

1 Section 4.08. Transformation Capacity Service, j' ..

i MP&L will supply MEAM with Transformation capacity Service 4

j in accordance with the terms'and conditions of applicable rate schedule (s) filed from time to time with duly constituted regulatory authority, which rate schedule (s) shall be attached hereto and made a part hereof. The initial rate schedule for Transformation Capacity Service is attached herato as Service Schedule H.

Section 4.09. Scheduling of Lead and Generating Resources. The Coordination Committee shall establish procedures for scheduling hourly deliveries to and from MEAM and shall establish procedures for scheduling the Capacity and Energy output of those MEAM generating resources located in one or more of MEAM's Members' systems, of MEAM Off-System Generating Resources, and of MEAM Remote Generat-ing Resources for the account of MEAM, provided, however, l that MEAM shall have the right, at its option, to (1)

! establish a "real-time" control. area for its loads and i

generating resources, or (ii) schedule its generating 1

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resources to serve its loads on an estimated basis. Unless otherwise specified in a particular Service Schedule or otherwise agreed to by the parties, on Thursday of each week 1

) each party shall provide the other party with a daily log

sheet showing the hourly capacity, Energy or other service which such party desires to be furnished under any of the

{ Service Schedules to this Agreement, including the aggregate I hourly loads MEAM expects to input into the MP&L Trans-s mission System at the Interconnection Points, and the aggregate hourly loads MEAM expects to furnish for MEAM's Net System Lead and to furnish for other than MEAM's Net System Load. For dispatching purposes under this Interconnection Agreement, (i) in order to account for transmission losses on the MP&L Transmission System, MEAM shall schedule Capacity and/or Energy to be delivered by MP&L from MEAM to any Public Utility, with which MP&L is'

interconnected, at 97% of the Scheduled Quantities to'be r

input by MEAM into the MP&L Transmission System as set out in Section 1.37; and (ii) when MP&L purchases Capacity and/or Energy from MEAM under this Interconnection Agreement, the scheduled deliveries of Capacity and/or Energy by MEAM to MP&L shall equal the Scheduled Quantities.

These schedules shall begin with Monday and end with Sunday 1

of the following week but may be changed by the party 1

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({} desiring service, in accordance with agreed upon procedures, upon four (4) hours notice to the other party.

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.g Section 4.10. Scheduled Deliveries. MEAM shall schedule Capacity and Energy under this Interconnection Agreement and all Service Schedules hereto as Scheduled Quantities. MP&L shall deliver Capacity and Energy to or I

for MEAM under this Interconnection Agreement and all .,

Service Schedules hereto as Scheduled Deliveries. Scheduled h

1 Deliveries equal Scheduled Quantities less losses. Losses are 3% for transmission over the MP&L Transmission System and 1% for step-down transformation.

Section 4 11. Control of Power Flow. The parties recognize that under the arrangements herein contemplated

() MEAM or MEAM's Members will have primary control and deter-mination of the amounts of kilowatts and reactive kilovolt amperes flowing through an Interconnection Point at any given time. Accordingly, MEAM will furnish and maintain or cause to be furnished and maintained the necessary equipment to monitor and control power and reactive flow at each Interconnection Point, and, will use its best efforts, in accordance with Good Utility Practice, to maintain the power flow as near as possible to the agreed upon schedules between MP&L and MEAM.

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({} ARTICLE V - TRANSMISSION SERVICES Section 5.01. Bulk Power Transmission Service for

] MEAM. MP&L will transmit Capacity and Energy for MEAM 1

{ through the MP&L Transmission System in such amounts as MEAM i

,; may specify i

a) from any MEAM Off-System Generating Resources ..

q to any Interconnection Point or to any MEAM Point of Delivery, and b) from any Interconnection Point to any MEAM Point of Delivery or any other Intercon-nection Point.

Further, from time to time upon request by MEAM, MP&L will transmit Capacity and Energy for MEAM from any MEAM Remote Generating Resource and will transmit Capacity and Energy for MEAM and/or will facilitate the exchange of Capacity and Energy by transmission over its system between MEAM and any i

Public Utility engaging in Capacity and Energy supply; provided that the facilities of such Public Utility or such

, MEAM Remote Generating Resource and MP&L's transmission facilities and other transmissier itees would form a con-tinuous electrical path (pre +1<<. y at permission to utilize such other transmission lineti has besn obtained); and N. further provided that, in the judgment of MP&L, exercised in

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accordance with Good Utility Practice, such arrangements-O

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(]), reasonably can be accommodated from a functional and techni-

} cal standpoint; and such service does not impair or endanger y service to its customers. Such service shall be arranged on a contract path basis. MP&L shall have no obligation to j supply such service whenever a contract path is not avail-q *a ble. MEAM shall give MP&L reasonable advance notice of its 1

schedule and requirements prior to requesting that such ..

1 service be initiated. Transmission service supplied from i

MP&L to MEAM under this Section shall be on a short or long term firm basis or on a "when, as, er if" basis as requested by MEAM and shall be paid for in accordance with applicable rate schedule (s) filed from time to time with duly con-stituted regulatory authority, which rate schedule (s) shall

() be attached hereto and made a part hereof. The initial rate schedule for transmission service by MP&L under this Section is attached hereto as Service Schedule I.

Section 5.02. Additional MEAM Points of Delivery or Interconnection Points. Upon reasonable advance written notice from MEAM, MP&L will establish, at MEAM's sole cost and expense, additional MEAM Points of Delivery, Off System Generating Resource connections or Interconnection Points at any of MP&L's 115/13.8KV substations in service at the time of the request, provided the specified location of each such new requested MEAM Point of Delivery, Off System Generating Resource connection or Interconnection Point is in each case O

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{ tified and feasible, and does not impose an undue or unrea-j sonable burden on MP&L or the MP&L Transmission System.

Should MEAM require service at any other point or points on or adj acent to MP&L's 115 KV or 230 KV Transmission System, MP&L shall provide such service, but necessary additional facilities will be provided by MEAM at its cost. Should .-

MEAM require a MEAM Point of Delivery, off System Generating

  • Resource connection or Interconnection Point remote from the.

115 KV or 230 KV portion of the MP&L Transmission System, MEAM shall provide the necessary intervening facilities.

Notwithstanding the above two sentences, MP&L may elect, where mutually agreeable, to share with MEAM in the use of

() such additional facilities on or adjacent to the MP&L Trans-mission System or such intervening facilities from the MP&L Transmission System to a remote MEAM Point of Delivery, Off System Generating Resource connection or Interconnection Point. In such event, MEAM agrees to share with MP&L the use of such facilities and to negotiate with MP&L in good faith for the planning, construction, ownership, and cost sharing of such facilities. All facilities paid for or provided by MEAM, pursuant to this section, shall remain the property of MEAM. If at any time, MEAM or one of MEAM's Members discontinues the use of any such facilities, which are located at any MP&L sub' station or within the MP&L (J)

- ~ , . . _ _ _ _ _ _ ___

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Transmission System, MP&L may, at its option, purchase such 4

g facilities at the then fair market value thereof. Notwith-standing anything in this Interconnection Agreement to the g

contrary, this Interconnection Agreement is designed to provide for the exchange of services at the Interconnection

^j Points and the MEAM Points of Delivery of the Mississippi cities presently members of MEAM. If MEAM desires to estab- ..

lish an additional MEAM Point of Delivery or Interconnection Point for the purpose of serving a new member, not now a member of MEAM, such MEAM Point of Delivery or Intercon-nection Point will be established only pursuant to a mutually agreeable amendment to this Interconnection Agree-ment. MP&L and MEAM agree to negotiate in good faith for the establishment of such additional MEAM Point of Delivery or Interconnection Point, as the case may be.

ARTICLE VI - RECORDS

+

Section 6.01. Records and Log Sheets. In ad-dition to meter records, the partier shall keep log sheets and other records as, in the opinion of the Coordination Committee, may be needed for the purposes of this Agreement,

- including records to afford a clear history of the various movements of Capacity and Energy between *de systems of *de parties in transactions hereunder. The originals of all O

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() such meter records and other such records shall be open to s

d inspection by representatives of the parties and the Co-1.

i; ordination Committee. All such records shall be retained by 1

the respective parties for a minimum of five (5) years or 1

such longer period as is required by any regulatory agency

. with jurisdiction in the matter.

Section 6.02. Sucolv'of Data to Coordination -

.., Committee. Each party shall furnish to the Coordination

  • 4 Committee appropriate data from meter registrations and from other sources on such time bases as are established by the Coordination Committee when such data are needed for settle-ment, special tests, operating records, or other purposes consistent with the objectives thereof. As promptly as practicable, each party shall render to the other party statements setting forth appropriate data from meter regis-trations and other sources in such detail and with such segregation as may be needed for transactions under the various service schedules, operating records, verification of billings, and settlements hereunder.

ARTICLE VII - BILLINGS AND PAYPENTS Section 7.01. Billing. Bills for services under the provisions of this Interconnection Agreement shall be k

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s rendered monthly. Such bills for any calendar month shall i

be paid on or before the 20th day of the succeeding month or j not later than fifteen (15) days after receipt of the bill, d

I whichever is later. Payment shall be made at the office of 4

the party to which payment is due as designated by such I party. To any amount due and unpaid after the due date, J

, there shall be added an administrative charge at the rate ..

provided in Section 7.02 until the amount is paid in full.

I Section 7.02. Administrative Charge on Overdue Payments; Indemnity. In addition to any other rights or remedies, legal or equitable, available to the parties, in the event either party fails to make any payment to the other party when due pursuant to this Interconnection Agree-() ment there shall be added to such overdue amount an adminis-trative charge from the date such payment was due at an annual rate equal to 1.15 times the prime lending rate announced by Citibank N. A. , New York, New York, as its

" prime rate" in effect on the date on which such payment was due. Each party shall also indemnify and hold the other harmless, from and against any and all losses, costs, damages and expenses arising out of or resulting from the

, other party's failure to make such payments when due.

Section 7.03. Usurv. Notwithstanding any other

provision herein to the contrary, it is the intention of MP&L and MEAM that any amount paid as an administrative

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(} charge, whether it be characterized as an administrative

! charge, interest, finance charge or otherwise, shall n6t be i

] usuriou~s; to that end, should any calculation of the admin-istrative charge provided for hereunder result in an amount of charge which would be usurious, or which is subsequently held to be usurious, the amount of the administrative charge a

to be charged hereunder shall be reduced so that the amount

~

actually charged will not be usurious, or if the administra-5 tive charge has already been paid, the amount by which such charge is held to be usurious shall be refunded pursuant to the provisions of Section 7.04.

Section.7.04. Disputed Bills. In case any portion of any bill be in bona fide dispute, the undisputed

() amcunt shs11 be payable when due, and the remainder, if any, upon determination shall be paid promptly after such deter-mination. Any such remaining amounts found to be payable shall be paid pursuant to the provisions of Section 7.01 and 7.02 as overdue payments.

ARTICLE VIII - TERM Section 8.01. Term. This Interconnection Agree-ment shall become effective (subject to the receipt of any necessary regulatory approvals) on the date of its execution and delivery and shall continue in effect for an initial

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m term ending January 1, 1992; provided, however, that in the event of any joint ownership of generation facilities by the

., parties hereto, or by MEAM and MSE, such joint ownership I

shall ipso facto extend the initial term hereof to the date of the permanent cessation of operation of such jointly owned generation facilities. Subject to the foregoing, this Interconnection Agreement can be terminated by either party at the end of such initial term by giving at least five (5)

! years' prior written notice of termination to the other party and shall, if not so terminated, continue in effect after such initial term until terminated upon at least five (5) years' prior written notice of termination given by one party to the other party.

Section 8.02. Contract Year. For the purpose of this Interconnection Agreement, the Contract Year shall commence on June 1 of each year and extend through May 31 of the succeeding year.

ARTICLE IX - RATE CHANGES AND COMMISSION REGULATION Geetion 9.01. Chances M Rates. The rates and charges for the services provided in this Interconnection Agreement are subject to amendment and change, and each party reserves the right to seek unilaterally amendments, or changes in the rates and charges set forth herein in b

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accordance with law from any regulatory agency having jurisdiction thereof.

Section 9.02. FERC. If and to the extent that this Interconnection ! - ment or any part hereof, shall be required to be filed, or hall be filed, with any regulatory agency, including, without limitation, FERC, as a rate or r

rate schedule, nothing in this Interconnection Agreement

a. ..

3 shall be construed as affecting in any way the right of MP&L

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to make application unilaterally to such agency, including application to FERC under Section 205 of the Federal Power Act, for a change in any rates or charges in this Intercon-nection Agreement or' Service Schedules attached hereto.

Furthermore, nothing in this Interconnection Agreement shall be construed as affecting in any way the right of MP&L to make application unilaterally with any regulatory agency, including, without limitation, FERC under Section 205 of the Federal Power Act, for a change in the load factor limita-tion of Paragraph 60.23 of Service Schedule A attached hereto in accordance with Section 4.01 of this Intercon-nection Agreement; or to make such application to FERC under Section 206 of the Federal Power Act for a change in MEAM's required minimum reserve generating Capacity in accordance with Section 3.03 of this Interconnection Agreement. To the extent that MP&L makes any such filing, MEAM reserves the right to intervene in any proceeding involving such a filing ag ki/ .

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by MP&L and reserves the right to object to any proposed change.

ARTICLE X - GENERAL CONDITIONS Section 10.01. Resoonsibilitv for Loss, Damage or Iniury. MP&L shall indemnify, and defend MEAM against, and .,

save MEAM unharmed from, any loss, damage or injury to any person, property or interest arising out of the operation of the MP&L Transmission System hereunder and the transmission of Capacity and Energy on the MP&L Transmission System for delivery hereunder unless such loss, damage or injury was caused by the negligence of MEAM, its agents, servants, or employees; provided, however, that MEAM stall in all cases be responsible for any liability under the provisions of any applicable workmen's compensation law for loss, damage or injury to its own employees and will not seek any reimburse-ment therefor from MP&L. Conversely, MEAM shall indemnify and defend MP&L against, and save MP&L unharmed from, any loss, damage or injury to any person, property or interest arising out of the operation of the MEAM Transmission System hereunder and the transmission of Capacity and Energy on the MEAM Transmission System for delivery hereunder unless such loss, damage or injury was caused by the negligence of MP&L, its agents, servants, or employees; provided, however, that C .

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7 MP&L shall in all cases be responsible for any liability under the provisions of any applicable workmen's compen-a sation law for loss, damage or injury to its own employees h

,; and will not seek any reimbursement therefor from MEAM.

Section 10.02. Further Assurances. From time to time after the execution and delivery of this Intercon-nection Agreement MP&L and MEAM will execute such documents, upon the request of the other, as may be necessary or

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appropriate to carry out'the intent of this Interconnection Agreement.

Section 10.03. Governing Law. The validity, interpretation and performance of this Interconnection Agreement and each of its provisions shall be governed by the applicable laws of the State of Mississippi and of the United States of America.

Section 10.04. Notice. Any notice, request, consent or other communication permitted or required by this Interconnection Agreement shall be in writing and shall be deemed given when deposited in the United States mail, t

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q addressed to:

(j Mississippi Power & Light Company i

Post Office Box 1640

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j Jackson, Mississippi 39205 H

l Attention: President 2

and if given to MEAM shall be addressed to: .,

I! Municipal Energy Agency of Mississippi Post Office Box 866 Greenwood, Mississippi 38930 Attention: Chairman

- unless a different officer or address shall have been desig-nated by the espective party by notice in writing.

() Section'lO.05. Headings Not to Affect Meaning.

The descriptive headings of the various Sections and Arti-cles of this Interconnection Agreement have been inserted for convenience of reference only and shall in no way modify or restrict.any of the terms and provisions hereof.

i Section 10.06. Amendments. This Interconnection t

Agreement.may be amended by and only by a written instrument

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duly executed by each of the parties hereto.

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Section 10.07. Successors and Assigns; Assignment. This Interconnection Agreement shall inure ton the benefit of and be binding upon MP&L and MEAM and their respective successors and assigns, and, insofar as is

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permitted by law, on any receiver or trustee in bankruptcy, O'

reorganization or receivership of either party. Nothing in

t j- this Interconnection Agreement, expressed or implied, is a

intended to confer upon any person other than MP&L and MEAM

'. any rights or remedies hereunder. Neither party may assign

. its interest in this Interconnection Agreement without the express written consent of the other party.

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j Section 10.08. Counterparts. This Interconnec-tion Agreement may be executed simultaneously in two or more.

counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument.

Section 10.09. Good Utility Practice. MP&L and

, MEAM shall discharge any and all obligations under this Interconnection Agreement in a prudent manner and in accor-dance with Good Utility Practice.

Section 10.10. Force Maieure. Neither party

,i shall be in default in perfoEmance of any obligation or duty 4

hereunder if such failure of performance is due to Force

Majeure.

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! Section 10.11. Entire Agreement. This Inter-I connection Agreement together with other agreements referred 1

to herein shall constitute the entire understanding between MIAM and MP&L, superseding any and all previous t

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understandings between the parties pertaining to the subject matter contained herein.

Section 10.12. Substitute Power Agreement. The proposed hiubstitute Power Agreement will provide for the supplying of Capacity and Energy by MP&L to MEAM under certain circumstances not applicable to the service provided under this Interconnection Agreement. Nothing in this Interconnection Agreement shall be deemed to conflict with any provision of the proposed Substitute Power Agreement.

Section 10.13. Service Schedules. In the event and to the extent that any provisions of this Intercon-nection Agreement are in conflict with those of existing or

-subsequent service schedules, the provisions of the service schedules shall govern.

Section 10.14. No Consent to Violation of Law.

Nothing herein contained shall be construed to constitute consent or acquiescence by either party to any action of the other party which violates the Laws of the United States (which include the TVA Act of 1933), as their provisions may be amended, supplemented or superseded, or which violates any other law or regulation, or any order, judgment or decree of any court or governmental authority.

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n ARTICLE XI - COORDINATION COMMITTEE 1

7 Section 11.01. Coordinction Committee. The

Coordination Committee shall be responsible for the adminis-tration of this Agreement in accordance with its terms, in-

, cluding such duties as determining metering arrangements, l

coordinating communication facilities, setti..gs of relays ,,

and automatic generation controls, establishing operating i

practices for guidance of load dispatchers and other operat-ing employees in the respective systems as to matters affec, ting interconnected operation and deliveries of Capaci-ty and Energy from one system to the other, and other similar operating matters. The Coordination Committee shall

([ furnish to the parties by June 1 of each year an estimate of each party's Peak-Hour Load and Energy requirements for each month of the next two Contract Years and an estimate of.each party's summer and winter Peak-Hour Load and Energy require-ments by years for the upcoming fifteen-year period begin-ning with June 1 of the next succeeding year. Such load a

{ forecasts shall include for MEAM, and show separately, the 1

i load of each of MIAM's Members. Such Peak-Hour Load data as l'

reviewed each year shall be used by the Coordination Commit-l tee in administering this Agreement.

[ Each party's Coordination Committee representative shall be responsible for notifying the other party's t- -

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Coordination Committee representative as far in advance as

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. practicable of any scheduled maintenance outage of generat-j .ing units and/or transmission facilities which could rea-1 sonably have an adverse effect upon the other party's 1

operation, and such schedule shall be made with due consid-j eration for minimizing any burden on the other party. The Coordination Committee shall coordinate the scheduling of -

outage of transmission facilities so as to minimize the burden of such outage on both parties.

The Coordination Committee shall have load-flow studies of the MP&L and MEAM systems made on a joint basis as may be required from time to time to determine the need for increased interconnection capacity between the systems, O including consideration of emergency assistance, system stability, and reliable operation of generating resources.

The cost of such load-flow studies shall be shared by'the parties on a basis determined to be appropriate by the Coordination Committee.

The Coordination Committee may make appropriate recommendations for increases in existing interconnection capacity or alternate Interconnection Points between the MP&L and MEAM systems. Terms and conditions governing such increased interconnection capacity or additional Inter-connection Points shall be negotiated when the need is i .

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j Section 11.02. Coordination Agreement; Amendment.

! The Coordination Committee shall operate in accordance with l the procedures established under the coordination Agreement i

and shall have only those powers hereunder such as are expressly set forth herein. The Coordination Commirtee -

shall have no power to amend or alter the provisions of this Interconnection Agreement.

IN WITNESS WHEREOF, the undersigned parties have duly executed this Interconnection Agreement in Jackson, Mississippi, on the date first above written.

O ATTIST: MISSISSIPPI POWER & LIGHT COMPANY I

PRESIDENT SECRETARY ATTEST: MUNICIPAL ENERGY AGENCY OF MISSISSIPPI By CHAIRMAN SECRETARY O

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-O MEAM POINTS OF DELIVERY l I

City of Canton J

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t 3ERVICE SCHEDULE A PARTIAL REQUIREMENTS SERVICE MUNICIPAL ENERGY AGENCY OF MISSISSIPPI and MISSISSIPPI POWER & LIGHT COMPANY 4

SECTION I - PURPOSE 60.10 It is the purpose of this Service Schedule A j to facilitate the purchase of Capacity and Energy by the Municipal Energy Agency of Mississippi (MEAM) from .

Mississippi Power & Light Company (MP&L) on a partial requirement basis.

SECTION II - CONDITIONS FOR SERVICE 60.20 MP&L will commit to furnish firm Partial Requirements Service in accordance with'this Service Schedule A provided that MP&L has kdequate capability to provide such service ~to each MEAM Point of Delivery and each Interconnection Point in accordance with sound engineering and operating practice; provided however:

(a) MP&L shall not be obligated to: increase.its commitment-to furnish such service to each MEAM Point of Delivery-and each Interconnection Point except as may be otherwise required when, in MP&L's judgment, reasonably exercised:

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(1) such service will impair the quality, reliability or safety of service to any of MP&L's retail or resale full requirements customers

, 'during the term service is requested; or (2) such service will endanger or impair the operation of MP&L's system, or create unsafe conditions on the system or any of the facilities of MP&L or its customers, or utility systems with L

which MP&L is interconnected; or (3) such service will require MP&L to

, construct or install new facilities except as hereinafter provided in (b) below.

(b) If, in MP&L's judgment, MP&L is unable to

'( ) satisfy the request for increase in service for one or more of the conditions specified in 60.20(a), MP&L shall promptly provide MEAM with a written explanation describing such condition (s) and the estimated costs of modifying or installing facilities-which would enable the service to be rendered. If MEAM offers to construct and own the necessary facilities to allow for such service or to reimburse MP&L for the costs incurred by MP&L to construct the facilities, MP&L shall, at its option, accept one of the offers and commit to furnish the service requested.

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(c) The determination of the availability of '

( existing and projected capability to each MEAM Point of Delivery and each Interconnection Point of MP&L should be made on the basis of existing load, future contracted or projected new load beyond normal load growth, and normal load growth of MP&L, as determined by MP&L.

60.21 Partial Requirements Service shall be scheduled in increments of 1,000 KW. When MEAM desires initially to commence Partial Requirements Service, at a reasonable time prior to the proposed commencement date,

(} MEAM shall submit to MP&L a five year schedule showing for each full or partial-Contract Year:

(a) MEAM's projected peak hour load in kilowatts and total Energy input from all sources; (b) the aggregate maximum hour quantity of Capacity MEAM elects to purchase from MP&L under this Service Schedule; (c) the aggregate maximum quantity of Capacity MEAM expects MP&L to deliver to each MEAM Point of 1

Delivery and each Interconnection Point; (d) the total estimated Energy MEAM expects to purchase from MP&L; o

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i (e) the aggregate maximum hour quantity of Capacity MEAM expects to purchase from non-MP&L l

sources; (f) the aggregate maximum, hour quantity of Capacity MEAM expects to satisfy from its own generation; and (g) the names and addresses of all non-MP&L sources from which MEAM expects to purchase Capacity and Energy.

60.22 By May 31 of,each year following submittal of the initial five year schedule, MEAM shall submit to MP&L a revised five year schedule, including therein the

() information specified in' Paragraph 60.21, for the following five (5) full Contract Years. However, in conformance with Paragraph 60.23 below, the information specified in Paragraph 60.21(b) for the first full Contract Year in the new schedule (the second Contract Year in the previous year's five year schedule) may not be changed from that contained in the previous year's five year schedule.

Submission of a revised five year schedule to MP&L by May 31 of each' year shall constitute a request-by MEAM for MP&L to furnish under dais Service Schedule A the aggregate maximum hour quantity of Capacity, as submitted to MP&L under

a, ,

Paragraph 60.21(b) hereof, for the second Contract Year in  !

O such schedule.

60.23 Upon acceptance of MEAM's initial and each subsequent five year schedule, MP&L shall commit to furnish and MEAM shall commit to take the maximum quantity of Capacity, as submitted to MP&L in accordance with Paragraphs ,

60.21(b) and 60.22 above, for the first two (2) Contract Years as shown on such schedules. However, should MP&L encounter a problem in not being able to maintain adequate inventories or supplies of fuel to serve its total firm requirements, MP&L may, upon thirty (30) days notice, require that MEAM thereafter limit its monthly load factor

() to a maximum of the greater of:

(a) a load factor which is an average of the previous five years' history of service under this Service Schedule, based upon the same month as the current month or, when less than five years' actual

' history of service is available under this Service Schedule, of the last two years of acttal history of i.

l. service for the MEAM Members, who are presently wholesale customers of MP&L, or such portion of two L years as is necessary when added to the period of actual history of1 service'under this Service Schedule to make five years of history, or 4

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e (b) sixty percent (60%).

O SECTION III - CHARACTER OF SERVICE j 60.30 Service provided under this Service Schedule

, A shall be 3-phase, 60 Hertz at nominal 115,000 volts, 13,800 volts, or such other voltage as may be available at the present or future agreed Interconnection Points or MEAM Points of Delivery. Where service is provided at voltages other than 115 KV, or 13.8 KV, the rate for such service shall be adjusted to reflect the cost of previding service at the delivered voltage level.

SECTION IV - RATES-AND BILLING 60.40 MEAM's Monthly Maximum Hour Load. As used

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herein, MEAM's Monthly Maximum Hour Load shall mean the monthly maximum 60-minute integrated kilowatt-demand during any clock hour. determined by the sum of (1) the metered quantities at the MEAM Points of Delivery, (ii) with respect to the Interconnection Points, the metered quantities "in" less 96% of the metered quantities "out," and (iii) 96% of Scheduled Quantities of Capacity and Energy by MEAM into the MP&L Transmission System at the Interconnection Points, less (iv) the Scheduled Deliveries to MEAM for Net System Load under any of the other Service Schedules to the Interconnection. Agreement.

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. 60.41 Net Monthly Rates Customer Charge

$1870.00 Demand Charge Base Demand

$4.30 per KW Excess ~ Demand 125% of the Base Demand charge per KW Energy Charge

$0.02943 per KWH Minimum Bill-The Minimum Bill shall be the

() Customer Charge.

60.42 Base Demand. The Base Demand for the month shall be the sum of (1) 96% of the maximum hour quantity of Capacity MEAM schedules to purchase from MP&L during the Contract Year as provided in Paragraphs 60.21 (b) and 60.22 (herein called'the Scheduled Demand) and (2) the difference, if any, between MEAM's Monthly Maximum Hour Load and the Scheduled Demand; provided however, Base Demand for the month shall not exceed the greater of (1).one hundred and ten percent (110%) of the Scheduled Demand or-(ii) the Scheduled Demand plus 5,000 KW. For billing purposes the l .

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Base Demand shall be the greater of (a) the Base Demand determined during the current month, or (b) the maximum Base Demand established during the previous months of the i

1 Contract Year.

60.43 Excess Demand. The Excess Demand for the month, if any, shall be determined by subtracting from MEAM's Monthly Maximum Hour Load, established under Paragraph 60.40, the greater of (1) 110% of the Scheduled I

Demand or (ii) the Scheduled Demand plus 5,000 KW. For billing purposes, the Excess Demand shall be the greater of:

(a) the Excess Demand determined during the current month or

() (b) the maximum Excess Demand established during

  • the previous months of the Contract Year.

The determination of Excess Demand shall be applicable only l during hours that Base Demand is scheduled.

l 60.44 Energy. Energy shall be the sum of (i) the monthly kilowatt hours metered at MEAM Points of Delivery, (ii) with respect to the Interconnection Points, the metered 1

kilowatt hours "in" less 96% of the metered kilowatt hours "out," and (iii) 96% of the aggregate Scheduled Quantities of Energy by MEAM into the MP&L Transmission System at the

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I . . . . . . . . . _ + - - - - - - - - - - - - -

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s Interconnection Points, less (iv) the aggregate Scheduled O Deliveries to MEAM for Net System Lead under any of the 1 other Service Schedules to the Interconnection Agreement.

60.45 Adjustments. There shall be added to or subtracted from the net monthly billing an amount equal to:

(1) A fuel adjustment amount computed in accord-ance with the following formula:

Fm FA = }] - $.0279200 WHERE:

FA = Fuel adjustment per KWH to be applied to Energy billed in the current month.

Em = The projected cost to MP&L of fossil and

(}

nuclear fuel used during the month, which shall include MP&L's estimates of:

(a) the actual cost of fossil and nuclear fuel used for the production of electric Energy in MP&L's generating stations, plus MP&L's share of the actual cost of fossil and nuclear fuel consumed in jointly owned generating stations, less the actual cost of fossil and nuclear fuel recovered through intersystem sales including the actual fuel costs related 9

to economy Energy sales and other Energy sold on an economic dispatch basis. The cost of fossil fuel as used herein shall include no items other than those listed in Account 151 of the FERC Uniform

. System of Accounts for Public Utilities and Licensees. The cost of nuclear fuel 2

shall be that shown in Account 518 except that if Account 518 also contains

, any expense for fossil fuel which has already been included in the cost of a

fossil fuel, that expense shall be deducted for thic calculation.

() (b) the actual identifiable fossil and nuclear fuel cost associated with Energy purchased for reasons other than identified in (c)'below.

(c) electric Energy purchased on an economic i

dispatch basis. Included in the Energy hereunder may be economy Energy t

purchases, Energy purchased as a result of a scheduled outage, and Energy-purchased by MP&L to substitute for its own higher cost of Energy. .The costs of such Energy shall be the net Energy cost t

- . - , , . ,e-- , -- y -4 ---- -

l and shall exclude capacity or demand L

charges irrespective of the designation assigned to such transactions. ,

Sm = The projected actual net KWH input into I i

MP&L's system for the supply of Energy in its operating area during the month. Said input shall be determined as the sum of (1) .

generation, (2) purchases, (3) interchange-in, less (4) intersystem sales j referred to in (a) above, less (5) total system losses associated with wholesale sales for resale delivery level.

(2) The adjustment for any month will be made on

() the basis of the estimated production, pur-chases and costs for the month. Actual i

monthly fuel expenses and KWH sales as sub-sequently accounted for will be used to determine any excess or deficiency-in the 4

amount of the fuel adjustment applied during 1

the month. Any excess or deficiency in the recovery of actual fuel costs recovered in the current billing month will be taken into account by subtracting or adding the amount of the over or under recovery to the amount to be recoveted from MEAM;through the c-  !

  • -.n,,,, _ . r , , , y

e adjustment as projected for the second

O succeeding month.

(3) The adjustment factor computed above shall be further modified to allow the recovery of gross receipts tax and other similar revenue based tax charges. occasioned by the fuel adjustment revenue.

60.46 Payment. Billing and payment shall be as

prc vided for in Article VII of the Interconnection Agreement by and between MEAM and MP&L.

, SECTION V - METERING

_ ()' 60.50 Metering equipment shall be as provided in Section 2.05 of the Interconnection Agreement by and between

'MEAM and MP&L.

SECTION VI - REGULATORY APPROVAL 60.60 The effectiveness of this Service Schedule A is contingent upon any required regulatory approval or acceptance for filing by the regulatory authority having jurisdiction. However, nothing contained herein shall be construed as- affecting in any way the right of _ the ~ party furnishing service under this Service Schedule to make application. unilaterally to any regulatory agency,

u. , . ,- _ _ . - . - - - . . _ . , - - .

() including, without limitation, FERC under Section 205 of the w

Federal Power Act, for a change in rates or charges.

SECTION VI: - TERM 60.70 This Service Schedule A shall become effective on , and shall continue in force concurrently with the Interconnection Agreement by and between MEAM and MP&L dated , 1982.

EXECUTED as of .

MISSISSIPPI PCWER & LIGHT COMPANY BY

(} ATTEST President By Secretary MUNICIPAL ENERGY AGENCY OF MISSISSIPPI BY Chairman ATTEST By ,

Secretary l

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SERVICE SCHEDULE B

() EMERGENCY SERVICE s

MUNICI/AL ENERGY AGENCY OF MISSISSIPPI and MISSISSIPPI POWER & LIGHT COMPANY SECTION I - PURPOSE 70.10 The purpose of this Service Schedule B is to provide for the sale and purchase of Emergency Service between the Municipal Energy Agency of Mississippi (MEAM) and M'ississippi Power & Light Company (MP&L).

SECTION II - CHARACTER OF SERVICE 70.20 Emergency Service provided under this Service

}

Schedule B shall be 3 phase, 60 Hert: at nominal ll5KV, 13.8KV or such other voltage as may be available at the present or future agreed to MEAM Points of Delivery or Interconnection Points.

SECTION III - CONDITIONS FOR SERVICE 70.30 It is the intent of both parties that either i

l party is entitled to request Emergency Service and the other party shall be obligated to supply such_ Emergency Service to the maximum extent-practicable as set forth in this Service Schedule B.

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O 70.31 At the time of any request for Emergency Service the buyer shall provide the seller information  !

4 concerning the nature and extent of the conditions causing the emergency.

. 70.32 When one party desiring Emergency Service requests such service from the other party and an agreement is reached as to (1) the amount of Emergency Service which can be delivered by the seller, (2) the probable duration of such delivery, (3) the schedule of delivery of such Energy, (4) any necessary noticei requirement for discontinuance of such delivery, and (5) any other pertinent factors, then the seller shall furnish the requested Emergency Service from any available source (including purchases from a system or systems not a party to the Interconnection Agreement for resale to the buyer, if requested by the buyer) to the extent that, in the judgment of the seller -

, the generation or purchase and the delivery of such Emergency Service will not . impair or jeopardize service to the seller's system or its commitments to others.

SECTION IV - RATE AND BILLING 70.40 Scheduled Deliveries of Emergency Service hereunder shall be billed and paid for at 115% of the seller's Incremental Cost of supplying such service; -

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provided, however, when MP&L hereunder supplies Energy to O MEAM which is purchased from sources outside the Middle South Utilities System, the cost per KWH shall be the sum of the following:

(1) The cost of the Energy purchased from non-Middle South Utilities System sources (third party sources); plus (2) Compensation for transmission losses associated with the delivery of the purchased Energy, as determined by applying the applicable transmission loss factor at the time of the transa'ction to the internal incremental generating cost. The incremental generating cost shall consist of the costs of fuel,

() labor, maintenance and operating supplies (including start-up and spinning costs if any) associated with the highest cost generating resource furnishing Energy at the time delivery of the Energy purchased from-non-Middle South Utilities System sources (third party sources) is made; plus (3) Ten (10%) percent of the incremental generating cost per KWH as defined in (2) above.

70.41 In. lieu of payment under the above, the seller may, where mutually agreeable and upon reasonable notice, require the buyer to return an amount of Energy s

o. ,

t equivalent to that which was supplied by the seller for

( Emergency Service. The seller and buyer may agree to a schedule for the Energy to be returned at a time and under load conditions similar to those under which the Energy was originally supplied by the seller to the buyer, or at such other times and rates of delivery as is mutually agreeable.

70.42 Billing for Emergency Service shall be based upon the Energy scheduled during each calendar month.

70.43 Billing and Payment shall be as provided for' in Article VII of the Interconnection Agreement by and between MEAM and MP&L.

O SECTION V - METERING 2

70.50 Metering equipment shall be as provided in Section 2.05 of the Interconnection Agreement by and between MEAM and MP&L.

SECTION VI - REGULATORY APPROVAL 70.60 The effectiveness of-this Service Schedule B is contingent upon any required regulatory approval or l acceptance for filing. However, nothing contained herein shall be construed as affecting in any way the right of the party furnishing service under this Service Schedule to make 4

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application unilaterally to any regulatory agency, O including, without limitation, FERC under Section 205 of the Federal Power Act, for a change in rates or charges.

SECTION VII -

TERM 70.70 This Service Schedule B shall become effective on and shall continue in force ,

concurrently with the Interconnection Agr(ement by and between MEAM and MP&L dated , 1982.

EXECUTED as of .

i MISSISSIPPI POWER & LIGHT COMPANY

() President j ATTEST By Secretary j MUNICIPAL ENERGY AGENCY OF MISSISSIPPI BY Chairman ATTEST I

By Sacretary

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SERVICE SCHEDULE C MAINTENANCE SERVICE MUNICIPAL ENERGY AGENCY OF MISSISSIPPI and MISSISSIPPI POWER & LIGHT COMPANY SECTION I - PURPOSE ~

80.10 The purpose of this Service Schedule C is to provide for the sale and purchase of Maintenance Service between the Municipal Energy Agency of Mississippi (MEAM) and Mississippi Power & Light Company (MP&L).

SECTION II - CHARACTER OF SERVICE i

80.20 Maintenance Service provided under this Service Schedule C shall be 3 phase, 60 Hert at nominal ~

113KV, 13.8KV or such other voltage as may be available at

the present or future agreed to MEAM Points of Delivery or Interconnection Points.

1 SECTION III - CONDITIONS FOR SERVICE

80.31 It is the intent of both parties hereto that -

either party is entitled to request Maintenance Service and the other party shall be obligated to supply such Maintenance Service to the maximum extent practicable as aet forth in this Service Schedule C.

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A O 80.32 At the time of any request for Maintenance Service the buyer shall provide the seller information concerning the nature and extent of the conditions causing the request.

80.33 When one party desiring Maintenance Service requests such service from the other party and an agreement ~

is reached as to (1) the amount of Maintenance Service which can be delivered by the seller, (2) the probable duration of such delivery, (3) the schedule of delivery of such Energy, 1 i

1 (4) any necessary notice requirement for discontinuance of such Energy, and (5) any other pertinent factors, then the seller shall furnish the requested Maintenance Service from O any available source (including purchases from a system or systems not a party to the Interconnection Agreement for resale to the buyer, if requested by the buyer) to the extent that, in the judgment of the seller, the generation or purchase and the delivery of such Maintenance Service will not impair or jeopardize service to the seller's system or its commitment to others.

SECTION IV - RATE AND BILLINO 80.40 Scheduled Deliveries of Maintenance Service hereunder.shall be billed and paid for at 115% of the seller's Incremental Cost of supplying such service;

() provided, however, when MP&L hereunder supplies Energy to MEAM which is purchased from sources outside the Middle South Utilities System, the cost per KWH shall be the sum of the following:

(1) The cost of the Energy purchased from non-Middle South Utilities System sources (third party sources); plus -

(2) Compensation for transmission losses associated with the delivery of the purchased Energy, ,

as determined by applying the applicable transmission loss factor at the time of the transaction to the internal incremental generating cost. The incremental generating cost shall consist of the costs of fuel, labor, maintenance and operating supplies (including start-up and spinning costs, if any) associated with the highest cost generating resource furnishing Energy at the time delivery of the Energy purchased from non-Middle South Utilities System sources (third party sources) is made; plus (3) Ten (10%) percent of the incremental generating cost per KWH as defined in (2) above.

80.41 In lieu of payment under the above, the seller may, at its sole option and upon reasonable notice in advance of the time of service, require the buyer to return

, I

(- an amount of Energy equivalent to that which is supplied by the seller for Maintenance Service. The seller and buyer shall agree to a schedule for the Energy to be returned at a time and under load conditions similar to those under which the Energy was originally supplied by the seller to the buyer, or at such other times and rates of delivery as is mutually agreeable. ~

80.42 Billing for Maintenance Service shall be based on the Energy scheduled during each calendar month.

80.43 Billing and Payment shall be as provided for in Article VII of the Interconnection Agreement by and between MEAM and MP&L.

SECTION V - METERING 80.50 Metering equipment shall be as provided in Section 2.05 of the Interconnection Agreement by and between MEAM and MP&L.

SECTION VI - REGULATORY APPROVAL 80.60 The effectiveness of this Service Schedule C is contingent upon any required regulatory approval or acceptance for filing. However, nothing centained herein shall be construed as affecting in any way the right of the e

o O party furnishing service under this Service Schedule to make application unilaterally to any regulatory agency, including, without limitation, FERC under Section 205 of the Federal Power Act, for a change in rates or charges.

SECTION VII - TERM 80.70 This Service Schedule C shall become effective on and shall continue in force concurrently with the Interconnection Agreement by and between MEAM and MP&L dated , 1982.

F EXECUTED as of .

MISSISSIPPI POWER & LIGHT COMPANY O

BY President ATTEST By Secretary MUNICIPAL ENERGY AGENCY OF MISSISSIPPI BY Chairman ATTEST By L

Secretary

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O SERVICE SCHEDULE D ECONOMY ENERGY MUNICIPAL ENERGY AGENCY OF MISSISSIPPI and ,

MISSISSIPPI POWER & LIGHT COMPANY SECTION I - PURPOSE 90.10 It is the purpose of this Service Schedule D to provide for Economy Energy deliveries between the Municipal Energy Agency of Mississippi (MEAM) and Mississippf. Power & Light Company (MP&L).

SECTION II - CHARACTER OF SERVICE O 90.20 Economy Service provided under this Service Schedule D shal: be 3 phase, 60 Hert: at nominal 115KV, 13.8KV ort such other voltage as may be available at the present or future agreed to MEAM Points of Delivery or Interconnection Points.

SECTION III - CONDITIONS FOR SERVICE 90.30 Economy Energy shall mean Energy which the supplying party can produce and deliver to the receiving party at an '.ncremental Cost which is lower than the Decre-mental Cost of the receiving party. Each party shall deter-mine when Economy Energy is available, and it may, but shall

O not be obligated to, offer Energy to the other party. When Economy Energy is available each party will, upon request of the other, furnish information with respect to:

a. the Incremental Cost of Energy it can make available, and
b. the Decremental Cost of Energy it can utilize.

90.31 A party is entitled to receive Economy Energy hereunder only to the extent that such party has alternative dependable Capacity, including adequate reserves, concurrently available, that would otherwise be used.

O 90.32 Upon request of one party the other party may supply Economy Energy to the requesting party up to the Capacity of the power source or fuel available for such supply subject to the judgment of the supplying party that the supply of such Energy will not impair or jeopardize service to its own customers, including other electric systems.

SECTION IV - BILLING AND SETTLEMENT 90.40 Scheduled Deliveries of Economy Energy shall be billed at a rate equal to one-half of the sum of e e

o.-. . ,

O a. the Incremental Cost incurred by the supplying party for the Economy Energy scheduled and delivered, and

b. the Decremental Cost of the Economy Energy to the receiving party.

The cost to the supplying party shall be that stated by its load dispatcher prior to commencement of delivery of Economy Energy and shall be subject to change on an hourly basis by the dispatcher prior to any hour. Inter-change settlements shall be computed on the basis of clock hour intervals.

From time to time the operating representatives of the parties shall review the methods and bases used by each party to determine such costs and values.

1 Each party shall be the sole judge of the Capacity and fuel available for Economy Energy supplied from its system and all commitments to other systems which may have priority over Economy Energy supplied hereunder.

90.41 Billing for Economy Energy shall be based upon the Energy scheduled during each calendar month.

90.42 Billing and payment shall be as provided for in Article VII of'the Interconnection Agreement by and between MEAM and MP&L.

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, SECTION V - METERING 90.50 Metering equipment shall be as provided in Section 2.05 of the Interconnection Agreement by and between MEAM and MP&L.

SECTION VI - REGULATORY APPROVAL 90.60 The effectiveness of this Service Schedule D is contingent upon any requisite regulatory approval.

However, nothing contained herein shall be construed as affecting in any way the right of the party furnishing service under this Service Schedule to make application-unilaterally to any regulatory agency, including, without limitation, FERC under Section 205 of the Federal Power Act, 1

-O for a change in rates or charges.

SECTION VII - TERM 90.70 This Service Schedule D shall become effective on and shall continue in force concurrently with the Interconnection Agreement by and between MEAM and MP&L dated , 1982.

EXECUTED as of .

MISSISSIPPI POWER & LIGHT COMPANY BY President 4.-

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O ATTEST By Secretary MUNICIPAL ENERGY AGENCY OF MISSISSIPPI BY Chairman ATTEST .

By Secretary O

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t O SERVICE SCHEDULE E RESERVE CAPACITY MUNICIPAL ENERGY AGENCY OF MISSISSIPPI and MISSISSIPPI POWER & LIGHT COMPANY SECTION I - PURPOSE 100.10 It is the purpose of this Service Schedule E to provide for the sale of Reserve Capacity by Mississippi Power & Light Company (MP&L) to the Municipal Energy Agency of Mississippi'(MEAM) on a firm supplemental basis in the event such service is required by MEAM to augment MEAM's Generating Capacity Reserve Requirements.

SECTION II - CHARACTER OF SERVICE 100.20 Service shall be delivered at nominal 115KV, 13.8KV or such'other voltage as may be available at the present or future agreed to MEAM Points of Delivery or

- Interconnection Points.

SECTION III - CONDITIONS FOR SERVICE 100.30 MEAM shall be entitled to purchase Energy under this Service Schedule E during any hour. The maximum Energy scheduled for any hour shall not exceed the Contract KW.

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SECTION IV - CONTRACT QUANTITY AND BILLING ,

100.40 Subject to the provisions of Section 3.03 of the Interconnection Agreement, the quantity of power MEAM shall purchase under this Service Schedule (" Contract KW")

in any month shall be determined as "P" in the following equation whenever "P" is a positive quantity:

P= LS ~

R where P = Firm Capacity in KW to be p,urchased under this Service Schedule L = MEAM's highest Net System Load experienced in the 12 months ending with current month expressed in KW C = MEAM's Capac'ity in KW at the time of highest Net System Load utilized in deriving L above

() Middle South Utilities System Capacity at time of maximum hourly load maximum hourly load

  • on Middle South Utilities System The value of R shall not exceed 1.25.
  • Maximum clock hourly load in 12 months ended with the current month.

" Capacity" for purposes of this formula shall mean the total Capacity established pursuant to Section 3.03 of all units owned or leased by.MEAM or the Middle South Utilities System, as the case may be.

The parties will promptly inform each other of changes in load and capacity that may affect the Contract KW hereunder.

NOTE: Firm purchases from MP&L or a third party will be first deduc'ted from load and not considered an addition to Capacity.

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100.41 Monthly Billing: 125% of the Base Demand charge (as set forth in the Partial Requirements Service Schedule) per KW of Contract KW. Scheduled Deliveries hereunder shall be billed at 115% of MP&L's Incremental Cost of supplying such Energy; provided, however, when MP&L hereunder supplies Energy to MEAM which is purchased from

~

sources outside the Middle South Utilities System, the cost per KWH shall be the sum of the following:

(1) The cost of the Energy purchased from non-Middle South Utilities System sources (third party sources); plus (2) Compensation for transmission losses associated with the delivery of the purchased Energy, O as determined by applying the applicable transruission loss factor at the time of the transaction to the internal incremental generating cost. The incremencal generating cost shall consist of the costs of fuel, labor, maintenance and operating supplies (including start-up and spinning costs if any) associated with the highest cost generating resource furnishing Energy at the time delivery of the Energy purchased from non-Middle South Utilities System sources (third party sources) is made; plus (3) 10 percent of the incremental geneiating cost per KWH as defined in (2) above.

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() 100.42 Billing of the Contract KW under this Service Schedule E shall be for a period of no less than 12 months.

The Contract KW to be billed in any month hereunder shall be the greater of (a) the Contract KW so determined for the current month or (b) the highest Contract KW so established during the preceding eleven (11) months.

100.43 Payment: Billing and payment shall be as provided for in Article VII of the Interconnection Agreement, by and between MEAM and MP&L.

SECTION V - METERING 100.50 Metering equipment shall be as provided in Section 2.05 of the Interconnection Agreement by and between MEAM and MP&L.

SECTION VI - REGULATORY APPROVAL 100.60 The effectiveness of this Service Schedule E is contingent upon any requisite regulatory approval or acceptance for filing by the regulatory authority having jurisdiction. However, nothing contained herein shall be construed as affecting in any way the right of the party furnishing service under this Service Schedule to make application unilaterally to any regulatory agency,

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O i==1=a1=e vita === 11 it =1==. rzac umaer se==1== 205 ef the Federal Power Act, for a change in rates or charges.

SECTION VII - TERM 100.70 This Service Schedule E shall become effective and shall continue in force concurrently with the Interconnection Agreetaent by and -

between MEAM and MP&L dated , 1982.

EXECUTED as of .

MISSISSIPPI POWER & LIGHT COMPANY l

I BY l President .

ATTEST By Secretary MUNICIPAL ENERGY AGENCY OF MISSISSIPPI i

BY Chairman AT'"EST By Secretary

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() SERVICE SCHEDULE F INADVERTENT ENERGY

- MUNICIPAL ENERGY AGENCY OF MISSISSIPPI and MISSISSIPPI POWER & LIGHT COMPANY SECTION I - PURPOSE -

110.10 It is the purpose of this Service Schedule F-to provide for a basis for the payback of' inadvertent transfers of Energy between the Municipal Energy Agency of Mississippi (MEAM) and Mississippi Power & Light Company (MP&L) which occur (1) during a Contract Year for which Partial Requirements Service is not scheduled under Service

( Schedule A or (2) during a month, within a Contract Year for which Partial Requirements Service is scheduled, for which the quantity of Energy determined in accordance with Paragraph 60.44 of Service Schedule A is negative.

SECTION II - SETTLEMENTS 110.20 A monthly accounting for the inadvertent transfers of Energy will be provided on or before the tenth a

of each month. On or before the twentieth of each month MEAM will supply MP&L with a payback schedule showing the day (s) and hour (s) MEAM desires to deliver Energy to or receive Energy from MP&L to compensate for the prior month's

[

() inadvertent transfers of Energy. MP&L reserves the right to approve the payback schedule as originally submitted, however, either party may request that the schedule be changed upon four (4) hours notice ~.

SECTION III - METERING 110.30 Metering equipment shall be as provided in .

Section 2.05 of the Interconnection Agreement by and between MEAM and MP&L.

SECTION IV - REGULATORY APPROVAL 110.40 The effectiveness of this Service Schedule F is contingent upon any required regulatory approval or

() ~

acceptance for filing by the regulatory authority having jurisdiction. However, nothing contained herein shall be construed as affecting in any way the right of the party furnishing service under this Service Schedule to make application unilaterally to any regulatory agency, including, without limitation, FERC under Section 205 of the Federal Power Act, for a change in rates or charges.

1 SECTION V - TERM 110.50 This Service Schedule F shall become effective on and shall continue in force i

o .

  • 4 ' O concurrently with the Interconnection Agreement by and between MEAM and MP&L' dated , 1982.

EXECUTED as of .

MISSISSIPPI POWER & LIGHT COMPANY SY President .

ATTEST By Secretary MUNICIPAL ENERGY AGENCY OF MISSISSIPPI BY '

O ca ir n ATTEST By Secretary-l k

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.., , o SERVICE SCHEDULE G REACTIVE POWER SCHEDULE

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MUNICIPAL ENERGY AGENCY OF MISSISSIPPI and MISSISSIPPI POWER & LIGHT COMPANY SECTION I - PURPOSE .

120.10 It is the purpose of this Service Schedule G to provide for the measurement, billing and settlement of the reactive power (kilovars) supplied to the Municipal Energy Agency of Mississippi (MEAM) by Mississippi Power &

Light Company (MP&L).

SECTION II -

KILOVAR SUPPLY 120.20 It is intended that neither party shall impose an undue burden upon the other with respect to the flow of kilovars. Both MEAM and MP&L shall install and maintain the necessary facilities to prevent the-undue flow

, of kilovars from one system to the.other.

120.21 The power factor at each MEAM Point of Delivery and Interconnection Point shall be maintained at-not less than 85% lagging.

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SECTION III - BILLING AND PAYMENT 120.30 Net Monthly Rate. The net monthly rate for reactive power shall be $0.20 per Excess KVAR.

120.31 Excess KVAR. For billing purposes under this Service Schedule G, the monthly Excess KVAR shall be determined by subtracting from the sum of the maximum ,

aggregate hourly net 60-minute KVAR demands on the MP&L system metered at (i) the MEAM Points of Delivery and (ii) the Interconnection Points (the net of the "

in" and "out" quantities); the sum of (a) 60% of 1) the 60-minute KW demand metered at the MEAM Points of Delivery and 2) net i

"in" quantities at the Interconnection Points during such

  • hour, and (b) the aggregate 60-minute KVAR input to the MP&L Transmission System during such hour from any-MEAM off-System Generating Resource.

120.32 Billing and payment shall be as provided in Article VII of the Interconnection Agreement by and between MEAM and MP&L.

SECTION IV - METERING 120.40 Metering equipment shall be as provided in Section 2.05 of the Interconnection Agreement by and between MEAM and MP&L.

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{} SECTION V - REGULATORY APPROVAL 120.50 The effectiveness of this Service Schedule G is contingent upon any required regulatory approval or acceptance for filing. However, nothing contained herein shall be construed as affecting in any way the right of the party furnishing service under this Service Schedule to make application unilaterally to any regulatory agency, ,

including, without limitation, FERC under Section 205 of the Federal Power Act, for a change in rates or charges.

, SECTION VI - TERM 120.60 This Service Schedule G shall become effective on __ and shall continue in force

() concurrently with the Interconnection Agreement by and between MEAM and MP&L dated , 1982.

EXECUTED as of .

MISSISSIPPI POWER & LIGHT COMPANY BY President ATTEST By Secretary 4

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O MUNICIPAL ENERGY AGENCY OF MISSISSIPPI BY Chairman ATTEST By Secretary . .

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() SERVICE SCHEDULE H TRANSFORMATION CAPACITY SERVICE MUNICIPAL ENERGY AGENCY OF MISSISSIPPI and MISSISSIPPI' POWER & LIGHT COMPANY SECTION I - PURPOSE _

130.10 It is the purpose of this Service Schedule H to provide for the sale, billing and settlement of transfor-mation Capacity between the Municipal Energy Agency of Mississippi (MEAM) and Mississippi Power & Light Company (MP&L).

() SECTION II - CHARACTER OF SERVICE 130.20 Transformation capacity Service under this Service Schedule H shall mean (i) the step-down transforma-tion of Capacity and Energy delivered from MP&L's transmission voltage of 115,000 volts or higher to the distribution voltage of one or more of MEAM's Members at a MEAM Point of Delivery or Interconnection Point through MP&L transformation facilities, and (ii) the step-up transformation of Capacity and Energy from the input voltage level of one or more of MEAM's Members to MP&L's transmis-sion voltage of' 115,000 volts or higher at a MEAM Point of.

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e O O Delivery or Interconnection Point or off-System Generating Resource connection, when provided by MP&L transformation facilities.

SECTION III - CONDITIONS FOR SERVICE 130.30 MP&L will furnish Transformation capacity I ~

Service in accordance with this Service Schedule H provided that MP&L has adequate transformation capability to provide such service at a MEAM Point of Delivery, Interconnection Point, or Off-System Generating Resource connection, as requesten by MEAM, in accordance with sound engineering and operating practice; provided however:

(a) MP&L shall not be obligated to commit to

( furnish such additional service at a MEAM Point of Delivery or Interconnection Point, except as may otherwise be required when, in MP&L's judgment, reasonably exercised:

(1) such service will impair the quality, reliability or safety of service to any of MP&L's retail or resale full requirements customers during the term service is requested; or (2) such service will endanger or impair the operation of MP&L's system, or create unsafe conditions on the system or any of the facilities of MP&L or its customers, or Public Utility (ies) with which MP&L is interconnected.

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  • s v (b) If, in MP&L's judgment, MP&L is unable to satisfy the request for such additional service for one or more of the conditions specified in 130.30 (a), MP&L shall promptly provide MEAM with a -written explanation .

describing such condition (s) and the estimated costs of modifying or installing facilities which would enable the service to be rendered. MEAM may thus provide such facilities itself, pursuant to Sections 2.01, 5.02, and 11.01 of the Interconnection Agreement or accept MP&L's offer to provide such facilities.

130.31 When MEAM desires Transformation Capacity Service for a MEAM Point of Delivery, an Interconnection l

(f Point or a MEAM Off-System Generating Resource connection or for increased or decreased service at a MEAM Point of Delivery or Interconnection Point for which service is presently being provided under this Service Schedule H, at a reasonable time prior to the proposed date such change in service is to commence, MEAM shall submit a written request to MP&L which provides the following information:

(a) The maximum transformation Capacity needed at.

the BER04 Point of Delivery or Inconnection Point; and (b) the proposed date service is to commence.

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e. , *e SECTION IV - RATES AND BILLING j 130.40 The net monthly rate for Transformation

, Capacity Service shall be $0.30 per KW applied to the aggregate monthly Contract Capacity provided to MEAM's Members under this Service Schedule H.

130.41 Contract Capacity. For each MEAM Point of Delivery, Interconnection Point or MEAM Off-System Generating Resource connection receiving' service under this Service Schedule H, Contract Capacity shall mean the greater of (i) the maximum hourly load expressed in kilowatts metered during the current month, or (ii) the maximum hourly load established during the previous months of the Contract

(} Year, or (iii) fifty percent (50%) of the maximum capacity established under Section 130.31(a).

130.42 Payment. Billing and payment shall be as provided for in Article VII of the Interconnection Agreement by and between MEAM and MP&L.

SECTION V - METERING 130.50 Metering equipment shall be as provided in Section 2.05 of the Interconnection Agreement by and between MEAM and MP&L.

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o SECTION VI - REGULATORY APPROVAL O- 130.60 The effe'etiveness of this Service Schedule H is contingent upon any required regult. tory approval or acceptance for filing by the regulatory authority having jurisdiction. However, nothing contained herein shall be construed as affecting in any way the right of the party furnishing service under this Service Schedule to make application unilaterally to any regulatory agency,

, including, without limitation, FERC under Section 205 of the Federal Power Act, for a change in rates or charges.

SECTION VII - TERM 130.70 This Service Schedule H shall become effective on , and shall continue in force

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concurrently with the Interconnection Agreement by and between MEAM and MP&L dated , 1982.

EXECUTED as of .

MISSISSIPPI POWER & LIGHT COMPANY BY -

President ATTEST By Secretary 4

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MUNICIPAL ENERGY AGENCY OF I' MISSISSIPPI i

BY Chairman ATTEST By

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SERVICE SCHEDULE I BULK POWER TRANSMISSION SERVICE x MUNICIPAL ENERGY AGENCY OF MISSISSIPPI and MISSISSIPPI POWER & LIGHT COMPANY SECTION I - PURPOSE 140.10 It is the purpose of this Service Schedule I to facilitate the sale, purchase or the exchange of bulk power by transmission (Bulk Power Transmission Service) over the MP&L Transmission System to or for the Municipal Energy Agency of Mississippi (MEAM) from any MEAM Off-System Generating Resources to any Interconnection Point or to any

{ MEAM Point of Delivery; from any Interconnection Point to any MEAM Point of Delivery or any other Interconnection Point; from any MEAM Remote Generating Resource; between or among MEAM and any Public Utility (ies) with which Mississippi Power & Light Company (MP&L) is interconnected; and between or among MEAM and any other Public Utility (ies) engaging in bulk power supply with which MP&L is not interconnected but between whose facilities MP&L's transmission lines and other transmission lines would form a continuous electrical path, provided that permission to utilize such other transmission lines has been obtained by l

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from a functional and technical standpoint.

. SECTION II - CONDITIONS FOR SERVICE 140.20 MP&L will commit to furnish firm Bulk Power Transmission Service in accordance with this Service -

Schedule I under the conditions specifed herein, provided ,

that MP&L has adequate transmission system capability to provide such service in accordance with sound engineering and operating practice; provided however:

(a) MP&L shall not be obligated to commit to furnish such service except as may be otherwise required when, in MP&L's judgment, reasonably h exercised:

(1) such service will impair the quality, reliability or safety of service to any of MP&L's retail or rezale full requirements customers during the term service is requested; or (2) such service will endanger or impair the operation of MP&L's system, or create unsafe conditions on the system or any of the facilities of MP&L or its customers, or Public Utility (ies) with which MP&L is interconnected; or (3) such service will require MP&L to construct or install new transmission and/or

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(b) If, in MP&L's judgment, MP&L is unable to .

j satisfy the request for increase in service for one or i

more of the conditions specified in 140.20 (a), MP&L i shall promptly provide MEAM with a written explanation describing such condition (s) and the estimated costs of modifying or installing transmission and/or distribution facilities which would enable the service i

to be rendered. If MEAM offers to construct and own the necessary transmission and/or distribution facilities to allow for~such service or to. reimburse MP&L for the costs incurred by MP&L to construct the facilities, MP&L shall, at its option, accept one of

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the offers and commit to furnish the service requested.

(c) The determination of the availability of existing capability of MP&L shall be made on the basis e

of existing load, future contracted or projected new load beyond normal load growth, and normal load growth of MP&L, as determined by MP&L.

(d) If the service requested by MEAM involves-transmission over the facilities of a third utility system, MEAM will make arrangements.for the use of those facilities directly with that third system. HMP&L shall not be obligated to commence service until such

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arrangements have been completed. MP&L agrees to cooperate in facilitating those arrangements. In the event the supplying Public Utility is unable for any reason to supply bulk power to the MP&L Transmission System, MP&L shall not be obligated to deliver such Capacity and Energy under this Service Schedule I.

.(e) Bulk Power Transmission Service shall be .

arranged through contract path basis. There shall be no obligation by MP&L to supply such service whenever this contract path is not available.

140.21 Bulk Power Transmission Service may be acquired on a Long-Term, Short-Term, or Non-Firm basis.

(} (a) Long-Term Firm Bulk Power Transmission Service shall be scheduled for a period of twelve (12) months or such longer period (Contract Period) as may be agreed upon by the parties. Each transmission arrangement from non-MP&L sources shall be requested by MEAM in writing at least thirty (30) days before the initial service is proposed to commence, if such notice is reasonably required by MP&L. Such service is available only by specific agreement, executed by an authorised representative of MP&L and MEAM and.shall be scheduled in accordance with MP&L's standard dispatching practices.

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(b) Short-Term Firm Bulk Power Transmission Service shall be scheduled in increments of one (1) week (Contract Period) and shall be requested at least forty-eight (48) hours before ths initial service is proposed to commence, if'such notice is reasonably required by MP&L.

(c) Non-Firm Bulk Power Transmission Service shall be provided on a when, as, and if available basis and therefore, may be interrupted without liability ' to MP&L (however, MP&L will, when circumstances permit, give MEAM advance notice of such interruptions). Each transaction or arrangement of a like character will be verbally scheduled on an hour-to-hour basis in accordance with MP&L's standard dispatching practices.

L SECTION III - CHARACTER OF SERVICE 140.30 Service provided under this Service Schedule

'I shall be 3-phase, 60 Hert
at nominal 115 KV, 13.8 KV or I

such other voltage as may be available at the present or future agreed to Interconnection Points or MEAM Points of Delivery or MEAM Off-System Generating Resource connections

, or such other points of interconnection,as may now or in the future exist between MP&L and other entities to and from

, which transmission service in available under this

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} Interconnection Agreement. Where service is provided at voltages other than 115 KV, or 13.8 KV, the rate for such service shall be adjusted to reflect the cost of providing service at the delivered voltage level.

SECTION IV - RATES AND BILLING ,

140.40 Net Monthly Rates Bulk Power Transmission Service Charaes

$1.127 per KW of Contract Demand for Long-Term Firm Bulk Power Transmission Service

$0.260 per KW per week of Contract Demand for Short-Term Firm Bulk Power Transmission Service

( S0.0015 Per KWH of scheduled Non-Firm Energy 140.41 During any Contract Year in which Partial Requirements Service is scheduled by MEAM, the Contract Demand, if any, under this Service Schedule I for the current month shall be determined by subtracting the sum of the Base Demand and the Excess Demand billed to MEAM under the Partial Requirements Service Schedule during the current month from the greater of (i', the maximum sixty (60) minute integrated demand during any clock hour of t.

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(\ the Contract Year to date determined by taking the sum of (a) the metered quantities at the MEAM Points of Delivery, (b) the

' metered quantities "in" at the Interconnection Points, and (c) 96% of the Scheduled Quantities under this Service Schedule I for other than Net System Load; -

less, during the same hour, Scheduled Deliveries of Non-Firm Bulk Power Transmission Service under this Service Schedule I and the Scheduled Deliveries under any other Service Schedule to this Interconnection Agreement, except Partial

( Requirements Service; or (ii) the maximum sixty (60) minute integrated demand in kilowatts determined by taking the sum of the Long-Term Firm Bulk Power Transmission Service and the Short-Term Firm Bulk Power Transmission Service scheduled by the MEAM dispatchers for delivery by MP&L under this Service Schedule I during any clock hour of the Contract Year to date (excluding losses as stated in Section 4.10 of the Interconnection Agreement).

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(, During any Contract Year in which Partial )

Requirements Service is not scheduled by MEAM, the Contract Demand for the current month shall be the maximum Capacity scheduled by MEAM dispatchers for delivery by MP&L under this Service Schedule I during any hour of the Contract Year to date (excluding losses as stated in Section 4.10 of the Interconnection Agreement). If the maximum sixty (60) ,

minute integrated demand during any clock hour of the Contract Year [ determined by taking the sum of (a) the metered quantities at the MEAM Points of Delivery, (b) the metered quantities "in" at the Interconnection Points, and (c) 96% of the Scheduled Quantities under this Service Schedule I for other than Net System Load; less, during the

( same hour, Scheduled Deliveries of Non-Firm Bulk Power Transmission Service under this Service Schedule I and the Scheduled Deliveries under any other Service Schedule to this Interconnection Agreement], exceeds by 5,000 kilowatts the Contract Demand established pursuant to this paragraph, then the excess capacity shall be billed to MEAM for that month at the Excess Demand rate set forth in the Partial Requirements Service Schedule. During any such Contract Year, variations from Scheduled Deliveries of Energy shall

'be accounted for under this Service Schedule I-pursuant to the Inadvertent Energy Service Schedule.

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Solely for billing purposes under this Service Schedule I, when a Contract Period expires during a Contract Year, billing for that service will be only for the months of the Contract Year in which such service was available.

140.42 Payment. Billing and payment shall be as provided for in Article VII of the Interconnection Agreement by and between MEAM and MP&L.

SECTION V - METERING 140.50 Metering equipment shall be as provided in Section 2.05 of the Interconnection Agreement by and between MEAM and MP&L.

r SECTION VI - REGULATORY APPROVAL 140.60 The effectiveness of this Service Schedule I is contingent upon any required regulatory approval or acceptance for filing by the regulatory authority having jurisdiction. However, nothing contained herein shall be construed as affecting in any way the right of the party furnishing service under this Service Schedule to make application unilaterally to any regulatory agency, including, without limitation, FERC under Section 205 of the Federal Power Act, for a change in rates or charges.

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SECTION VII - TERM s.,-

140.70 This. Service Schedule I shall become effective on , and shall continue in force concurrently with the Interconnection Agreement by and between MEAM and MP&L dated , 1982.

EXECUTED as of .

MISSISSIPPI POWER & LIGHT COMPANY BY President ATTEST 1

By

('), Secretary i

MUNICIPAL ENERGY AGENCY OF MISSISSIPPI BY Chairman ATTEST By Secretary 6

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