NL-09-0431, Financial Assurance Requirements for Decommissioning Nuclear Power Reactors (10 CFR 50.75(f)(1))

Financial Assurance Requirements for Decommissioning Nuclear Power Reactors (10 CFR 50.75(f)(1))

ML090900724
Person / Time
Site:	Hatch
Issue date:	03/30/2009
From:	Ajluni M Southern Nuclear Operating Co
To:	Document Control Desk, Office of Nuclear Reactor Regulation
References
NL-09-0431
Download: ML090900724 (88)

Text

Southern Nuclea7 Operating Company, Inc .

. C+{ 3!.-)/- 2S~1

~s 2C5.99250ee SOUTHERN'\

COMPANY March 30, 2009 Ellergy to SerlJe Your Worlrl Docket Nos.: 50-321 NL-09-0431 50-366 U. S. Nuclear Regulatory Commission ATTN: Document Control Desk Washington, D. C. 20555-0001 Edwin I. Hatch Nuclear Plant Financial Assurance Requirements for Decommissioning Nuclear Power Reactors (10 CFR 50. 75(f)(1))

Ladies and Gentlemen:

Pursuant to 10 CFR 50. 75(f)( 1), each power reactor licensee is required to report to the NRC the status of its decommissioning funding for each reactor or part of each reactor it owns on a calendar year basis, beginning on March 31, 1999, and every two years thereafter. Southern Nuclear Operating Company (Southern Nuclear) holds operating licenses DPR-57 and NPF-5 for the Edwin I. Hatch Nuclear Plant. On behalf of the licensed owners of the Edwin I. Hatch Nuclear Plant (Georgia Power Company, Oglethorpe Power Corporation, the Municipal Electric Authority of Georgia, and the City of Dalton, Georgia), Southern Nuclear provides the enclosed submittals in accordance with the requirements of 10 CFR

50. 75(f)( 1).

This letter contains no NRC commitments. If you have any questions, please advise.

Sincerely,

~~~

M. J. Ajluni Manager, Nuclear Licensing MJAlTWS/daj

Enclosures:

1. Georgia Power Company Response

2. Oglethorpe Power Corporation Response

3. Municipal Electric Authority of Georgia Response

4. City of Dalton, Georgia Response

U. S. Nuclear Regulatory Commission NL-09-0431 Page 2 cc: Southern Nuclear Operating Company Mr. J. T. Gasser, Executive Vice President Mr. D. R. Madison, Vice President - Hatch Ms. P. M. Marino, Vice President - Engineering RTYPE: CHA02.004 U. S. Nuclear Regulatory Commission Mr. L. A. Reyes, Regional Administrator Mr. R. E. Martin, NRR Project Manager - Hatch Mr. J. A. Hickey, Senior Resident Inspector - Hatch Georgia Power Company Mr. C. S. Thrasher, Executive Vice President and CFO City of Dalton, Georgia Mr. D. Cope, President and CEO Municipal Electric Authority of Georgia Mr. J. E. Fuller, Senior Vice President and CFO Oglethorpe Power Corporation Ms. A. F. Appleby, Vice President, Treasurer

Edwin I. Hatch Nuclear Plant Financial Assurance Requirements for Decommissioning Nuclear Power Reactors (10 CFR 50.75(f)(1))

Enclosure 1 Georgia Power Company Response

Ann P. Daiss Bin 10120 Vice President, Comptroller 241 Ralph McGill Boulevard NE and Chief Accounting Officer Atlanta, Georgia 30308-3374 Tel 4045066766 Fax 4045063128 apda iss@southerncocom February 25, 2009 GEORGIA'\

POWER Docket Nos.: 50-321 A SOUTHERN COMPANY 50-366 U. S. Nuclear Regulatory Commission ATTN: Document Control Desk Washington, D.C. 20555 Edwin I. Hatch Nuclear Plant Financial Assurance Requirements for Decommissioning Nuclear Power Reactors (10 CFR 50.75(f)(1))

Dear Ladies and Gentlemen:

Pursuant to 10 CFR 50.75(f)(1), each power reactor licensee is required to report to the NRC the status of its decommissioning funding for each reactor or part of each reactor it owns on a calendar year basis, beginning on March 31, 1999, and every two years thereafter. Georgia Power Company (GPC) hereby submits the enclosed information in accordance with 10 CFR 50.75(f)(1) for operating licenses DPR-57 and NPF-5 issued for Edwin I. Hatch Nuclear Plant Unit 1 and 2, respectively. Southern Nuclear Operating Company, as the operating licensee and as an agent for the owners of the Edwin I. Hatch Nuclear Plant, is providing this information to the NRC on behalf of GPC.

Based on the information presented herein, there is reasonable assurance that the funding necessary for decommissioning the Edwin I. Hatch Nuclear Plant, consistent with the NRC prescribed minimum set forth in 10 CFR 50.75(c), will be available on the expiration date of operating licenses DPR-57 and NPF-5.

Please advise if you have any questions or comments regarding the information provided herein.

Respectfully submitted, GEORGIA POWER COMPANY By: Ann P. Daiss, Vice President, Comptroller and Chief Financial Officer APD/LAC Enclosure

Enclosure Edwin I. Hatch Nuclear Plant Georgia Power Company Ownership Percentage - 50.10/0 10 CFR 50.75{f){1) Requirement Unit 1 Unit 2 1 The NRC minimum decommissioning estimate, $ 268,012,000 2 $ 268,012,000 2 pursuant to 10 CFR 50.75(b) and (c). 1 2 The amount accumulated at the end of the $ 145,990,439 $ 133,575,456 calendar year preceding the date of the report for items included in 10 CFR 50.75(b) and (c).

3 A schedule of the annual amounts remaining to be See Schedule in See Schedule in collected; for items in 10 CFR 50.75(b) and (c). Attachment 1 Attachment 1 4 The assumptions used regarding: Per GPSC Docket 25060-U Per GPSC Docket 25060-U (a) rates of escalation in decommissioning 2.93% 2.93%

costs; (b) rates of earnings on decommissioning 4.93% 4.93%

funds; (c) real rate of return; and 2.00% 2.00%

(d) rates of other factors used in funding None None projections.

5 Any contracts upon which the licensee is relying None None pursuant to 10 CFR 50.75(e)(1 )(v).

6 Any modifications to a licensee's current method No modification since the last No modification since the last of providing financial assurance occurring since report. Funding is to an External report. Funding is to an External the last submitted report. Sinking Fund with the sources of Sinking Fund with the sources of funds from Traditional Cost of funds from Traditional Cost of Service ratemaking as ordered by Service ratemaking as ordered by the GPSC in Docket No. 25060-U. the GPSC in Docket No. 25060-U 7 Any material changes to trust agreements. None None NOTES:

The NRC formulas in section 10 CFR 50.75(c) include only those decommissioning costs incurred by licensees to remove a facility or site safely from service and reduce residual radioactivity to levels that permit: (1) release of the property for unrestricted use and termination of the license; or (2) release of the property under restricted conditions and termination of the license. The cost of dismantling or demolishing non-radiological systems and structures is not included in the NRC decommissioning cost estimates. The costs of managing and storing spent fuel on-site until transfer to DOE are not included in the cost formulas.

This number is based on NUREG-1307, Rev. 13, for the burial factor (Option 2) and the December 2007 values for labor and energy factors.

Attachment 1 Schedule of the Annual Amounts Remaining to be Collected

Attachment 1 Schedule of Annual Amounts Included in Current Rates (Dollars in Thousands)

Plant Hatch HATCH 1 HATCH 2 BEG OF ENDOF BEG OF ENDOF YEAR FUND FUND YEAR YEAR FUND FUND YEAR VEAR FUND BAL EARNINGS CONTRIB FUND BAL FUND BAL EARNINGS CONTRIB FUND BAL 2008 145,990 133,575 2009 145,990 7,197 0 153,187 133,575 6,585 0 140,160 2010 153,187 7,552 0 160,739 140,160 6,910 0 147,070 2011 160,739 7,924 0 168,663 147,070 7,251 0 154,321 2012 168,663 8,315 0 176,978 154,321 7,608 0 161,929 2013 176,978 8,725 0 185,703 161,929 7,983 0 169,912 2014 185,703 9,155 0 194,858 169,912 8,377 0 178,289 2015 194,858 9,607 0 204,465 178,289 8,790 0 187,079 2016 204,465 10,080 0 214,545 187,079 9,223 0 196,302 2017 214,545 10,577 0 225,122 196,302 9,678 0 205,980 2018 225,122 11,099 0 236,221 205,980 10,155 0 216,135 2019 236,221 11,646 0 247,867 216,135 10,655 0 226,790 2020 247,867 12,220 0 260,087 226,790 11,181 0 237,971 2021 260,087 12,822 0 272,909 237,971 11,732 0 249,703 2022 272,909 13,454 0 286,363 249,703 12,310 0 262,013 2023 286,363 14,118 0 300,481 262,013 12,917 0 274,930 2024 300,481 14,814 0 315,295 274,930 13,554 0 288,484 2025 315,295 15,544 0 330,839 288,484 14,222 0 302,706 2026 330,839 16,310 0 347,149 302,706 14,923 0 317,629 2027 347,149 17,114 0 364,263 317,629 15,659 0 333,288 2028 364,263 17,958 0 382,221 333,288 16,431 0 349,719 2029 382,221 18,844 0 401,065 349,719 17,241 0 366,960 2030 401,065 19,773 0 420,838 366,960 18,091 0 385,051 2031 420,838 20,747 0 441,585 385,051 18,983 0 404,034 2032 441,585 21,770 0 463,355 404,034 19,919 0 423,953 2033 463,355 22,843 0 486,198 423,953 20,901 0 444,854 2034 486,198 23,970 0 510,168 444,854 21,931 0 466,785 2035 466,785 23,013 0 489,798 2036 489,798 24,147 0 513,945 2037 513,945 25,338 0 539,283 2038 539,283 26,587 0 565,870

Edwin I. Hatch Nuclear Plant Financial Assurance Requirements for Decommissioning Nuclear Power Reactors (10 CFR 50.75(f)(1>>

Enclosure 2 Oglethorpe Power Corporation Response

tt OglethorpePower Oglethorpe Power Corporation 2100 East Exchange Place February 26,2009 Tucker, GA 30084-5336 phone 770-270-7600 fax 770-270-7872 Docket Nos.: 50-321 An Electric Membership Cooperative 50-366 U. S. Nuclear Regulatory Commission ATTN: Document Control Desk Washington, D.C. 20555 Edwin I. Hatch Nuclear Plant Financial Assurance Requirements for Decommissioning Nuclear Power Reactors (10 CFR 50.75(f)(1))

Dear Ladies and Gentlemen:

Pursuant to 10 CFR 50.75(f)(l), each power reactor licensee is required to report to the NRC the status of its decommissioning funding for each reactor or part of each reactor it owns on a calendar year basis, beginning on March 31, 1999, and every two years thereafter. Oglethorpe Power Company (OPC) hereby submits the enclosed information in accordance with 10 CFR 50.75(f)(l) for operating licenses DPR~57 and NPF-5 issued for Edwin I. Hatch Nuclear Plant Unit I and 2, respectively. Southern Nuclear Operating Company, as the operating licensee and as an agent for the owners of the Edwin I. Hatch Nuclear Plant, is providing this information to the NRC on behalf ofOPC.

Based on the information presented herein, there is reasonable assurance that the funding necessary for decommissioning the Edwin I. Hatch Nuclear Plant, consistent with the NRC prescribed minimum set forth in 10 CFR 50.75(c), will be available on the expiration date of operating licenses DPR-57 and NPF-5.

Please advise if you have any questions or comments regarding the information provided herein.

Respectfully submitted,

~j~~

Anne F. Appleby Vice President, Treasurer Oglethorpe Power Corporation Enclosure cc: Southern Nuclear Operating Company Mr. J. T. Gasser, Executive Vice President RTVPE: CHA02.004

u. S. Nuclear Regulatory Commission Mr. L. A. Reyes, Regional Administrator Mr. R. E. Martin, NRR Project Manager - Hatch Mr. J. A. Hickey, Senior Resident Inspector - Hatch e A member of the National Rural EJectric CC)operatlve Association

Enclosure Edwin I. Hatch Nuclear Plant Oglethorpe Power Com pany Ownership Percentage - 300/0 Unit 1 Unit 2 10 CFR 50.75(f)(1) Requirement 1 The NRC minimum decommissioning estimate,

$ 160,486,000 2 $ 160,486,000 2 pursuant to 10 CFR 50.75(b) and (c). 1 2 The amount accumulated at the end of the $ 69,374,003 $ 54,540,254 calendar year preceding the date of the report for items included in 10 CFR 50.75(b) and (c).

3 A schedule of the annual amounts remaining to See Schedule in See Schedule in be collected; for items in 10 CFR 50.75(b) and Attachment 1 Attachment 1 (c).

4 The assumptions used regarding:

(a) rates of escalation in decommissioning 2.93% 2.93%

costs; (b) rates of earnings on decommissioning funds; 6.85% 6.85%

(c) real rate of return; and 3.92% 3.92%

(d) rates of other factors used in funding none none projections.

5 Any contracts upon which the licensee is relying none none pursuant to 10 CFR 50. 75(e)(1 )(v).

6 Any modifications to a licensee's current method none none of providing financial assurance occurring since the last submitted report.

7 Any material changes to trust agreements. No changes to Trust No changes to Trust Agreement. Re-allocation of Agreement. Re-allocation of assets from ten fixed income assets from ten fixed income managers to two fixed income managers to two fixed managers and from five equity income managers and from managers to two equity five equity managers to two managers. equity managers.

NOTES:

1 The NRC formulas in section 10 CFR 50.75(c) include only those decommissioning costs incurred by licensees to remove a facility or site safely from service and reduce residual radioactivity to levels that permit: (1) release of the property for unrestricted use and termination of the license; or (2) release of the property under restricted conditions and termination of the license. The cost of dismantling or demolishing non-radiological systems and structures is not included in the NRC decommissioning cost estimates. The costs of managing and storing spent fuel on-site until transfer to DOE are not included in the cost formulas.

2 This number is based on NUREG-1307, Rev. 13, for the burial factor (Option 2) and the December 2007 values for labor and energy factors.

Attachment 1 Schedule of the Annual Amounts Remaining to be Collected Oglethorpe Power Corporation 2008 NRC MINIMUM Hatch 1 Hatch 2 Earnings Rate: 6.85 Earnings Rate: 6.85 Balance Balance Balance Balance Year Begin Year Earnings Contribution End Year Year Begin Year Earnings Contribution End Year 2008 83,011,190 (13,637,187) 0 69,374,003 2008 65,261,498 (10,721,244) 0 54,540,254 2009 69,374,003 4,752,119 0 74,126,122 2009 54,540,254 3,736,007 0 58,276,261 2010 74,126,122 5,077,639 0 79,203,762 2010 58,276,261 3,991,924 0 62,268,185 2011 79,203,762 5,425,458 0 84,629,219 2011 62,268,185 4,265,371 0 66,533,556 2012 84,629,219 5,797,102 0 90,426,321 2012 66,533,556 4,557,549 0 71,091,105 2013 90,426,321 6,194,203 0 96,620,524 2013 71,091,105 4,869,741 0 75,960,845 2014 96,620,524 6,618,506 0 103,239,030 2014 75,960,845 5,203,318 0 81,164,163 2015 103,239,030 7,071,874 0 110,310,903 2015 81,164,163 5,559,745 0 86,723,908 2016 110,310,903 7,556,297 0 117,867,200 2016 86,723,908 5,940,588 0 92,664,496 2017 117,867,200 8,073,903 0 125,941,103 2017 92,664,496 6,347,518 0 99,012,014 2018 125,941,103 8,626,966 0 134,568,069 2018 99,012,014 6,782,323 0 105,794,337 2019 134,568,069 9,217,913 0 143,785,981 2019 105,794,337 7,246,912 0 113,041,249 2020 143,785,981 9,849,340 0 153,635,321 2020 113,041,249 7,743,326 0 120,784,575 2021 153,635,321 10,524,020 0 164,159,341 2021 120,784,575 8,273,743 0 129,058,318 2022 164,159,341 11,244,915 0 175,404,256 2022 129,058,318 8,840,495 0 137,898,813 2023 175,404,256 12,015,192 0 187,419,447 2023 137,898,813 9,446,069 0 147,344,881 2024 187,419,447 12,838,232 0 200,257,679 2024 147,344,881 10,093,124 0 157,438,006 2025 200,257,679 13,717,651 0 213,975,330 2025 157,438,006 10,784,503 0 168,222,509 2026 213,975,330 14,657,310 0 228,632,640 2026 168,222,509 11,523,242 0 179,745,751 2027 228,632,640 15,661,336 0 244,293,976 2027 179,745,751 12,312,584 0 192,058,335 2028 244,293,976 16,734,137 0 261,028,114 2028 192,058,335 13,155,996 0 205,214,331 2029 261,028,114 17,880,426 0 278,908,539 2029 205,214,331 14,057,182 0 219,271,513 2030 278,908,539 19,105,235 0 298,013,774 2030 219,271,513 15,020,099 0 234,291,611 2031 298,013,774 20,413,944 0 318,427,718 2031 234,291,611 16,048,975 0 250,340,587 2032 318,427,718 21,812,299 0 340,240,017 2032 250,340,587 17,148,330 0 267,488,917 2033 340,240,017 23,306,441 0 363,546,458 2033 267,488,917 18,322,991 0 285,811,908 2034 363,546,458 24,902,932 0 388,449,390 2034 285,811,908 19,578,116 0 305,390,023 2035 305,390,023 20,919,217 0 326,309,240 2036 326,309,240 22,352,183 0 348,661 ,423 2037 348,661,423 23,883,307 0 372,544,730 2038 372,544,730 25,519,314 0 398,064,044

Edwin I. Hatch Nuclear Plant Financial Assurance Requirements for Decommissioning Nuclear Power Reactors (10 CFR 50.75(f)(1))

Enclosure 3 Municipal Electric Authority of Georgia Response

Docket Nos.: 50-321 50-366 U. S. Nuclear Regulatory Commission ATTN: Document Control Desk Washington, D.C. 20555 Edwin 1. Hatch Nuclear Plant Financial Assurance Requirements for Decommissioning Nuclear Power Reactors (10 CFR 50.75(f)(I)

Dear Ladies and Gentlemen:

Pursuant to 10 CFR 50.75(f)(1), each power reactor licensee is required to report to the NRC the status of its decommissioning funding for each reactor or part of each reactor it owns on a calendar year basis, beginning on March 31, 1999, and every two years thereafter. The Municipal Electric Authority of Georgia (MEAG) hereby submits the enclosed information in accordance with 10 CFR 50.75(f)( 1) for operating licenses DPR-57 and NPF-5 issued for Edwin I. Hatch Nuclear Plant Unit 1 and 2, respectively. Southern Nuclear Operating Company, as the operating licensee and as an agent for the owners of the Edwin I. Hatch Nuclear Plant, is providing this information to the NRC on behalf ofMEAG.

Based on the information presented herein, there is reasonable assurance that the funding necessary for decommissioning the Edwin I. Hatch Nuclear Plant, consistent with the NRC prescribed minimum set forth in 10 CFR 50.75(c), will be available on the expiration date of operating licenses DPR-57 and NPF-5.

Please advise if you have any questions or comments regarding the information provided herein.

Respectfully submitted, THE MUNICIPAL ELECTRIC AUTHORITY OF GEORGIA, by,

~ £}.-.RL James E. Fuller Senior Vice President, Chief Financial Officer ITWS

\lllllif'il'al Ell'f"tril' \L1thorily of Ct*ol"/lia l-l":-O Rivl'n'dg-t> Parkway. ~\\

Enclosure \ 11<1 II t il. (~t'ol'g-ia ;{O.'{:!H-*H)H6

Enclosure Edwin I. Hatch Nuclear Plant The Municipal Electric Authority of Georgia Ownership Percentage -17.7%

10 CFR 50.75(f)(1) Requirement Unit 1 Unit 2 1 The NRC minimum decommissioning estimate, $ 94,687,000 2 $ 94,687,000 2 pursuant to 10 CFR 50.75(b) and (c). 1 2 The amount accumulated at the end of the $64,386,653.57 $63,172,102.78 calendar year preceding the date of the report for items included in 10 CFR 50.75(b) and (c).

3 A schedule of the annual amounts remaining to be See Schedule in See Schedule in collected; for items in 10 CFR 50.75(b) and (c). Attachment 1 Attachment 1 4 The assumptions used regarding:

(a) rates of escalation in decommissioning 3.60% 3.60%

costs; (b) rates of earnings on decommissioning funds; 5.60% 5.60%

(c) real rate of return; and 2.00% 2.00%

(d) rates of other factors used in funding None None projections.

5 Any contracts upon which the licensee is relying Attachment 2 Attachment 2 pursuant to 10 CFR 50.75(e)(1)(v).

6 Any modifications to a licensee's current method None None of providing financial assurance occurring since the last submitted report.

7 Any material changes to trust agreements. Attachment 3 Attachment 3 NOTES:

1 The NRC formulas in section 10 CFR 50.75(c) include only those decommissioning costs incurred by licensees to remove a facility or site safely from service and reduce residual radioactivity to levels that permit: (1) release of the property for unrestricted use and termination of the license; or (2) release of the property under restricted conditions and termination of the license. The cost of dismantling or demolishing non-radiological systems and structures is not included in the NRC decommissioning cost estimates. The costs of managing and storing spent fuel on-site until transfer to DOE are not included in the cost formulas.

2 This number is based on NUREG-1307, Rev. 13, for the burial factor (Option 2) and the December 2007 values for labor and energy factors.

Attachment 1 Schedule of the Annual Amounts Remaining to be Collected

MEAGPOWER Decommissioning Funding Plan Nuclear Decommissioning Fund - Hatch 1 (Dollars in thousands)

Calendar Balance at Interest Less: Balance at Year Beg. of Year Contributions (I) Earnings Fees End of Year (A) (B) (C) (D) (E) 2008 64,387 2009 64,387 3.604 (\ 02) 67.889 2010 67.889 3,795 (107) 71,577 2011 71,577 3,998 (113 ) 75,462 2012 75,462 4,21 I (118) 79,555 20\3 79.555 4,436 (\25) 83,867 2014 83.867 4.673 ( 131 ) 88,409 2015 88,409 4,923 (138) 93,194 2016 93,194 5,187 (145) 98,236 2017 98,236 5,465 (\ 53) 103,548 2018 103,548 5,759 (161 ) 109,146 2019 109.146 6,068 (170) 115,044 2020 115,044 6,394 ( \79) 121,259 2021 \21,259 6.738 (188) 127,809 2022 127,809 7,\00 (198) 134,711 2023 134,71\ 7,483 (209) 141,985 2024 141,985 7,886 (220) 149,652 2025 149,652 8,31 I (231 ) 157,731 2026 157,731 8,759 (244) 166,247 2027 166,247 9.232 (257) 175,222 2028 175,222 9,730 (270) 184,682 2029 184,682 10,256 (288) 194.649 2030 194,649 10,810 (304) 205, I 55 2031 205.155 11,394 (328) 216,221 2032 216.221 12,009 (345) 227,885 2033 227,885 12,658 (363) 240.180 2034 240.180 8.895 (255) 248,82\

Total 189,774 (5,340)

Options: Level Payments Footnotes:

(1) - Based on the current funding levels and decommissioning forecast, the decommissioning contributions for Hatch Unit One are being suspended.

N: 10051541032336\2009 Amts Remain Collected.xls Page 1 of 1 Date: 3/11/2009; Time: 12:28 PM

MEAGPOWER Decommissioning Funding Plan Nuclear Decommissioning Fund - Hatch 2 (Dollars in thousands)

Calendar Balance at Interest Less: Balance at Year Beg. of Year Contributions ( I) Earnings Fees End of Year (A) (B) (C) (D) (E) 2008 63,172 2009 63.172 3,530 (100) 66,603 2010 66.603 3,708 (105) 70.206 2011 70,206 3,895 (I 10) 73.991 2012 73,99 I 4.092 (115) 77.968 2013 77,968 4,300 (121 ) 82.147 2014 82.147 4.519 (127) 86.539 2015 86.539 4.751 (133) 91.156 2016 91.156 4.994 ( 140) 96.010 2017 96,010 5.252 (147) 101,115 2018 IOLll5 5,523 (155) 106.483 2019 106.483 5,809 (163) 112,129 2020 j 12.129 6.110 (171 ) 118JJ68 2021 118JJ68 6.428 (I80) 124.316 2022 124,316 6.763 (189) 130.891 2023 130.891 7.117 (198) 13 7.809 2024 13 7,809 7.489 (209) I45,rJ89 2025 145.089 7.882 (219) 152.752 2026 152,752 8.297 (231 ) 160.818 2027 160.818 8,734 (243) 169.309 2028 169,309 9,194 (256) 178,248 2029 178.248 9,680 (272) 187.656 2030 187.656 10,192 (287) 197.561 2031 197,561 10.732 (309) 207.985 2032 207,985 11,301 (325) 218.962 2033 218,962 11.901 (342) 230.521 2034 230.521 12,534 (359) 242,696 2035 242,696 13.201 (378) 255,519 2036 255.519 13.904 (425) 268,999 2037 268,999 14,645 (446) 283, I97 2038 283,197 7,714 (235) 290.677 Total 234, I92 (6,687)

Options: Level Payments Footnotes:

(1) - Based on the current funding levels and decommissioning forecast, the decommissioning contributions for Hatch Unit Two are being suspended.

N: 10051541032336\2009 Amts Remain Collected.xls Page 1 of 1 Date: 3/11/2009; Time: 12:28 PM

Attachment 2 Edwin I. Hatch Nuclear Plant Financial Assurance Requirements for Decommissioning Nuclear Power Reactors - 2009 Submittal Project One Power Sales Agreement

.._. I PO~ SALES CONTUar

!ltween

MuNICIPAL ELECTRIC A.UTHORITY OF, GEORGIA and '

,. CITY OF This Contract. made and entired into IS at October 1, 1975, by and between the Klm!cipal Eledl'ic Autharib- of Georda. a public 'body carporata and. politic lID4 ~ Pll~UC carporatfim of the State at Georl'ia hereinafter lomet5mes dufp.&tec1 as the Authority, ereat-,

t4 bT the prcm.s!cma of.I GL L 1975, Po 107, U Ul2eDded, and. ,,

CITY OF a poUtica1 snbdlnlfon of the State of Georiia,'hereina!ter soznetfmes desipated a.i the Par

• ~dpa1l.t, WITNESSETH THAT:

'WBEREA.S, the Participant hu :!lewd for aD ICDnomfcaJ, reliable source of electric power and enerrr to meet the irowinr demands of its cQstomers aDd has d.tarmined to putchue such Ilectric power and eur:zy from resourou *owned. c.ontrolJed. or pnrc:hued by the Authazib-. and '

" WlIEREAS, the Authorft)- wU1 take Qf cause to be taken all steps necessarr to secure lath IOVU1l.JDmtal ptrDdtt, lic.enla. and approvals u are necessarr for, &.Del win then pTO cftd u approPrlate with final dUfrn, ffDan~ IDI! aCquisition or c.cmstruct:ion o! tbOJe facilities herabl ducrlbecl and deslpated as the Projed for the supply at Ilectric power am mern to 'the ParlIc.Jpant and to aU oth~ political subdiYlslou.contzolctlnK wSth the Author.

ftr there!or, &Del will len the output and serrlees o~ I'llc.h faC11itiu pursuant to this Contract aD4 to c'ontracts 'substaAtfaJ]Y id.entlcal to WI Contraet with ather polftlcal lubdlvidODl, a_pated tolether:with the Partlcfpant as the. PartfapaDtI, ,and -

WHEREAS. in aac!1tfoD to the sat. to the Partfdpsnu at u.. output and serVices af the

.Project, 'the AuthoritJr wm &llO, obtain for and pro\;de to the Putidpub the Putfciputs' SupplmlDb1.Bu~*Pawer SupplT, as be~eb?aftu ddintd, and WHE:REA.S, fn order to enable the Authority to Issue its r~venu. banda to pay the c.oati of ac:quiriD, .~ CODlU'uctfDI' the Project, it II neclSW"1"!or the A.uthority to han bind1nc contracts with I\Ich political snbdi'rilloJlI of tbe State of Georria as maT determine, ~ursuant to authoriv 01 I GL L 1975, p. 107, as amended, to contract with the Authority. anI! aU plr..

.menu req,ui-rec! to be made in accordaAte with the prO\"iafoDS af .Arlic1e Dr of aueb contraeta,

.!Dc:lucUAW p&JII1lDb required t4 be znade under Article nI of Ws Contract. anI! all other pay.

ments attributabl. to the ProSec:;t or to the ADJUIIl Project Com.... berelnatw defined, to be made fA aCCOl1!anc.e with ~ pursuant to IllY other provWan o! tlWl Contnc.t Inc! I~ch otber contracts IhaD b~ pleal'ed u uc.uritJr for the P&71Z1eDt of such,Bond.. ; ,

1

NOW ~REI'OJlE:

For a.nd in consideration of the pre~is.. and the lnulYal covenants md arreemeDts here Illafte:r let forth, alld In order to ia1 the Authority for its cosu .of prcmdiq (i) the Pd*

diant'l EnUtJement Share, as he:reiD&!ter defined, of the oatpl1t and sen:leea of aa.c:h f.&dl1t1 of the Project ~ (Ii) the Partfdpant'l SU'PPltznintal Bulk Power Sappl1. It is. aKreecl by &Dd betwem the parties hereto as foUoWl:

ARTICLE I TElUd: 'OF CONTRACT, DEFINITI9NS Sedlan 101. Tum.

The term of this Contract shan beiin and Ws COlltract shall canititutli a biDdiq obti p.t10D of the parties hereto from a.nd after Ita execution by the lut party to exteut. the um.. Th. obilratlan of the Authorltr to provide electric power and enerO'. under the'lIra vi.ions of this Contract lhall helin with the flrat issuallce aDd de1iverT by aa14 Authority' of an7 of its Bow which are autlulrized to be luutd by the provilions of I Ga. L. 18'15, p. 107.

as &minded, ar, In the event nates af the Authoritr art taued in anticipation of the Isluanc, .'

of Bonds, such obltratloD sh&1l belin with the luuancl aDd c!eUvef7 of such bond aAtic:ipatlon notes. Thl term of this Contract shall continue in full force aDd effect until such tim.. not LuMdinK ft1'tr run, as aU of the Authority'l Baud.* u hereIaafter'dlflned or notes luued in ant{QpaUOD of the i.luane. of Bauds and the Interest thereoD han been paid Dr prllnaion for pa11Dent shall have been ms4e in aceordanee with ~e proviaions of the Boad Ruolution

. or until such time &I the Project ahall be ret$.rtd from'lUTica, decomznissioZl~ or dispoaecl of bT the Altthorft71 whleh.ever b later. . " . .

Sectfon. 102. DelbdLlollS ud EsplanaUoft' ~t Terms.

. AI a.aed hlrein : .

Ca) ",Aet" .halt lDean that certain Act of the 1975 auslon of the General Asaemhl1 of the State of Gtorria compiled and iubllshed. In I Ga. L 1916, p. 107, as the same has been her..

tofore 'or mar. be hereafter amended. ...

Cb) "Annual Profect COSts....h&n mean, with respect to a Power Sapp17 Yu.r, to the'a tent not paId as a part of the COlts of AcqulsltiOEl aDd CODStrucUon, aU coats. and exptUU of the Authorit:1 paId by the Authorftr for each of the "DenUDe faclUtla and th8 tnnsml..

lion I)'Stem facilities cOlDprislnr the Projtct dltrinr .1Ich POWtIr SapplT Yi&l" allocable to the Project Includinr, but not Umited. to, thoaa lte:us' of eost and expense refvnd to In ~ectlOD 506(b) 4nd Cc), hereof, as Annual Project Generation FIxed Cb&rKa, Otlser Annual Frojec:t Generation Casts, Annuu Project Trazaa1iaion Fizecl Cbarl** and Oth.. Annual Project TransmiSsion COlts. . , " . " .'

. (c)' HAnl1ul Supplemental Costs'* 1h&1l aleIA t~OIe costs and expmsu 01 the Authority .

alloc:able to thl purehuln, or furnlshlnr 01 SlJpplem~t&1 Bulk Power Supply to the Partlc1*

~ts. .

Cd) ".A111lua.l System Budrel" shall mean, with respect to a Power Supply Ye&!', the bltdr et.adoptad bt the Authority not leu than thirty days prior to the hqinninl' of .ueb Power SlipplT Year "hleh buda'et shall itemize uUmatiS of A.nDul Project Costs and Annual Sup plemental Coati and aU reveDUU, income, or othel' fund. to be applied to IUch Costa, rlSpee tI't'I17, for and appUcabJe to such Power SUPpl7 Year or, in the case of.an &D1eDded I~eh Bud~.

eto for and appUcabIe to ~uch Year for the remainder of such Power Supply: Year.

2

(e) EilUq Sta.temenr' shall m~ the wrltteD statement pnpared or caued to be. pre.

pared montbly by the Authority that shall bl bue4 upon the Annual Sylttm Bul!ret or UpoD the amended AnDual S1ltem Budret adopted by tne Authoritr pDrluar.t to Section 202 hereof, I aDd th.-t sball shaw the JDOJlth17 amount to b. paid to the Authorltr bT the Participant in ac:.

cordance with the prcmlionl of Sec:tiODI 807 and '08 hereof.

(f) ":Bondi" Ihan me~D thl bond! iuued by the Authority pUntlant to ~I proviaiODS of .

the 130nd ResolutioD to finaDce or refiJlanc:e the Cost of A.c:qmsltioD and ConstruCtiOD of the Proieet. whether or not any iaue of such bond. Ihall be subordiute4 &I to paymlDt to auy other i.su<< of. nch bonds, and shall IDclude &dditfoiW :Bonds tssue! punu.nt to the provi aloDS tit Section 501 hereof and refundfnr :Bonda Issued pursuant to the prcmslOllS of Se<<:

tion 1502 hereof. .

(&) "BoDd lleiolutlon" shaIl mlan the Power Revenue Bond ResolutioD and any Suppl..

mental Power Revenue Bond Resolution to be adopted. by ,the Authority and accepted by the Trustee and the Co,.Trustee,(j! any) thereunder for'the benefit of the Owtlll'S of the Bondi which shall provide for the iuuancI'of such Bonds, a copy of which Pow'LRevenue Bond Resolution and First Supplemental Power Rennue Bond 1leIOlution In substantially the form to be adopted by the Authority shall be on 111e in the records of the Putic:l!>'~t.

(h) "BWk' Power Suppb'" IhaU mean, with respect to a Participant, all electric power and eDUn required by IUch Participant In excess of that amount (I) luppUed by aDY aIDer atioD &ad. tranamb.lon resources owned by lueh Participant on the dfdve date of tbis Con tract, (il)' received by such ParticIpant from the Southeastern POWIf AdmfD,istration (SEl?A), and (ill) procured by such Participant fram al~tebl1Dc power supply resourc~

~ accordanee with the prO"lialou of Seet:1011 ,~ hereof. "

(i) "Commercial Operation Date" shan mUD, with respect to each fadlity of the hoi act, the bqinnJnr of the daT OD which auch facility of the Proiect ii, in the opinion ~ thl Author..

tty, ptoducmr and deUverinr electric power mel enerl)' for. eonunercial use, provided, how

,ever, in. the ,nut my IUch faE:iUty is producinr and delinrinl electric power and DlrlY for commerc.W use on the date of acquisition of the Authority's interut thei-ein, the Author Ity may establish a Commercial Operation 'Date for IUch fadlitr ",hich aate shall be withm a re.uo~bl. time of the effective date of web acquisition.

(j) "Cau'll1tiq ED,meer" .shall mean an erineel' or e%lrine.uU1r firm of D&t10D&1 repl1 tatlon haMI demonstrated expertla' !n th<< field of electric power lenerati~ tran.smiaaioD, power suPPI1, elee:trfc: ut111t7' opera~ons, n tel, and feasibility. ' .

(k) "Contract" and i'POWIf Sal.. Contnets" shall m.an, nspec:tively, this Contnet with the Participant and all P.ower Sales CODtraCts, indudinl thit Contract, subltantially Identical hereto Intend Into by the Authority and a Partic:ipant; In 'ach cue IS the

.'same may be amend~d from. time to tim.. ..'

(1) "Cod ot AcquLsltrOD and' Construction" shall mun, to the extent not Included !n Ali.

naa! Project Coats, all COlts of and explDSU of planninl. desfamnr, acquirini'. c:on.strl1ctiDa'.

inataUinl, and financ:inr the Project, plac:inr the Project iD operation, decozm:c.1ssiomr, or disposal af the Praject, ud obtalnini rovernmental Ipprovals, certificatu, Plna1ta and liclnsu lriUi rupect theretQ heretofore or hereafter paid or incurred by the Authoriti &Dd

. J;Day include, In alidition and 1rithout Umitat10D. the foUowiDI:

(1) workinr capital and ruerves in sUl:h amounts u may be estabUshed pursU&I:lt to the Bolld Resolut:!on. ' , .

. (2) interest aeCrufnl in whole o~ in part on BODds prior to and d~ conatrue:tlon aDd for auch additional perIod. as the .Aut.ho~ty may ru.sonabl'1 dete~e to be n~sa1'7 S

for the plAcinr of the Project or lLZI1 fa.c:ility thereof in operation in acc"ordance wi~ the prcmslollS of thl 30Zll! Resolutfou, " , ,

. (8) acqU:bltfon of initial fuel for each. reneration f&ciUty of the ProJect and work ing capital and reserves therefor and 1rorJdnr capital and reHZTa for nload fuel,

, (4) the deposit or deposlb from the proceeds Of Bonds fuuld to ~I such,ccsts

.in aDY fund or account estab11shed parauaut to the BoDll Rao1ut:lon to meet ~ebt Ser.

'rice reserre requlremab for Botllb,

,(15) the depoait or deposia from the proceeds of Bonds. imJed to finnce luch costs in any funds or accounts establ;illhed punaant to the BoDll Resolution IS resenu for re neWa1I aDd replacemenb. retfrement from service. decom m$.slo'll1lir or cUapoIal of aDY leDeratinr fac:U!t)- of the Project or contIDrlDcies. .'

(61 t:nJnJn1 and testlnl cOltllncurre4 by the Authon'Y,

. (1) preUarlnary investiption and development costs. en(lneerinl fees. contractol'l'.

fees' coltS. of labor. materlds. equipment. utility

.fiDI.ndnl costs, seMces and supplill andlepl and (8) an COlts of insu:anee applicable to the period of cOl1Jtructiol1. and (9) all other costa incurred by the Authority and ,properly allocable to the acquisition and constzuction of lbe' Project, includinr an costa llna.nced by the Issurl.nce of addItional Bonds pursuant to SectiD1\ 501. hereot. ' ,

, (m) tlDebt Service" shaU mean, with respect to &ny*period. the aorept, of the amount.!

required b1' the B."nd Raolution to be paId duriDI( .aid period into IJJY fuDd or funda crated by the Bond :RuolutioD for the lole purpoae of payml( the principal (tDducUnr Iinldnr fund

'installments) of &Dd prmdam, if any. aDd Interut on all the Bonds from time to time outltand.

inl' u the .&me shall become dUI, provided, however, thd Debt Serriee abU DOt mducle al17 acceleration of the m&turlty at the Bo*

.(n) "Entitlement Shari" Ihall MUD, with rupect to a Participant ad an1 Pow~r Supply Year and 'With rapect; to tb.e ,eneratiD" facilities (Inc1udll1lr,rel&ted tr&IWDiulon fac"Utles) and the transmfssion .".ltam facUlties of the ProjeCt, (1) that percentap 'of the output &:1d services of such re.nnatinr facWties let forth ID the Schedule of Output Entitlement S~es attached hereto for au.ch. Participant in such Power SuPpl1 Year, u the lime II1&Y hereafter be increased in accordance with the provWou of the Power Sales Contract with IUch. Par*

ticipant, and (it) .that percentare of uaumIaslon aenices which sh&U be determIned b7 the AuthoritY duriul( each Power Supply Yur to b. allocable to lIuch Participant in accordance

."nth the provialODl of SecttoD 80B hereof.

(0). "Fuel Costs" abaU meaD'all ecsb incurred by the Authcrit)-. darinr NIT Power Sap..

ply Year that are aIlocabI~ to the acquisItion, procHslnr, fabrication, trUUlport&tiOD, deli.,er ina'. reproceuina". star..e. aDd disposal* at nuclear Materi&ls required for tbe',eDeration faciJ.

itles of ~e ProjeCt, iDCludiDg tr&Di1'ers to reslrves established b1 the Authority for such costs related to falure Power Supply Y~rs, less ~dlts related to such cosb applied IS appropri ate in .the dlscretfcD of the Aa.thodty.

(p) "Participant:' shall mean the poIitie&lsubdivislon. which fa a party to this Contract.

"P&rt1dpub" shaD mean all politiCAl lubdIvislolUl In th. State of Georria which own and op.

ert:te electric distribuUon systems to servl their citizens. Inhabitants and cuatomers b1 pro

'rldiDf them with electric power and eDUIY and wblch are parlia to contracts with the Author ity aubatantfal17 identical to this Contract. The term Putfc:ipants IhaD include the **Par.

tIc:Ipant," and the terms **a Parlidpant" or "each PartIcipant" shall !Dun any one of the Participants or ~ch of the Participants, as the ca.se ma1 be. "ParticiplUlt" shall include any eommisaiol1 or arency of such poUtfCAI lubdivi.ioD which operates 01' cOl1ducb. or exercises jur,iSd1CtIOD over any esseDtfAl fUJ1COOD at the Partlclpant's electric distribution system.

. (fI) "Power Supply Year" shall meln the calendar Jear, except th.~ the first Power .S~p ply Year sball \elin on the date the Authority bas an obU,ation to provide electric power and

&DerlY as determlned in accordance 'WIth the. provisions of Section 101, benet.

(r) *'"Proportionate Share" shall mean, with raped to a Partic:tpant and a Power Sup plY Yur, that percental' of th.ldlowatts or kilowatt hours, u the ca.e mAy be, 01 each type of semce Included In Supplemental !uDc"Power Supply wbleh such Participant is entitled to receive and for wbleb IUeh Participant I. obllpted to paY in each mOJith of & Power Supply Year. With respect to ldlowatb, such percentare shall be obtained tor eath month by d1vidin(

the maximum one-hour interrated coincident Iystem demand of nth Participant'l Supple.

mental Bulk Power Suppl1 provided br the Authority durInr the particular month br the max Imum one-hour intqrated coincident s)"ltem demands of Supplemental Blllk Powir Supply provided by the Autborlty to aU the Participants durin, that month. ~th respKt to kilowatt hours, such pucrntare for eaeh month shall be obtained.by d1vidinr the kilowatt hours of Sup plemental Bulk Power Supply dellvered by the Authority to .uch Partldpant durinK the particular month by the total kilowatt hours of Supplemental Bulk Power Supply de~vered by the Authorltr to all of the Putidpant:s durln( that month" e.) "ProJect" sbaU mean those electric Jenera.lIon and related transmissio1l facilities which are Identified in the nacription of Project and those transmission s,ste= fa~ruties to

. which reference is made In the Deecription of Proj~t to be acquired and coDshucted by the Authority durin&' the time prior to the Commercial Opera~o1l Date of the lut 01 the renerat Inl' facnltI.. of the Project to be completed in order tG meet Ute Auth~rfty's inve.stment respon.

slbility dunn, su'ch time in connection with any agreement for an inte(rated transmtlli.on sys tem to which the Authority may be a :party in accordance with the provisioDi of Section 802 hereol, toretber with. (1). any m~jor renewall. replacements, repa.irs, additions, bettet:ments and Improvements Decessary, In the 'oplnian of the CODI\1ltln( Enil:neer, *to xeep the Project in rood operatin, condltloD or to prevent a loss of revenues therefrom, (Ii) any major adell UOnl, Improvements. repairs and modIfica~ons to the Project and any deeommiuioD!:np or' disposals of the Project, required by anT rovernment:11 arency hanD( jurisdiction over the Project or for which the A9thority shall be respoMtble by vi~ue of any obUlaticm of the Au thority Irlslnr out of any contract to which the Authority may be a party relatfn&, to owner*

ship of the Prt"Ject or any facility thereof, (Iii) those transmission system facilities to which rderence I. made in t~e Description of Project and which are reqaired, in the opluio1l at the ConsulUn&, Enrinftl'r to be acquired and constructed by the 4uthority on or aftu the Com mercial Operation Date of the lut of the reneration facilltiu of th. Projed to be completed in order to meet the Authority', Invutment responsibility after such Commercial Oper~tfoll r Date In connection with U1y 's,reement for an 'Interrated transmission system to which the Authority shan be a part1 in accordance with the proviaioDI of Section 802 bereof, and (h')

'Workinl capital requir8d by Use Authorit, durin, construction of the PrOject and for the :plac

" in&, of the 'Project In operation for provfdinr Bulk Poweraup.plYr includlD( Supplemental.

Bulk P~wer Supply, to the P.rtidpa~t. .

(t) "Prudent UtlUtJ Pr&e:tice" at

• particular time shan mean any of the practices, methOds and acts enraled in or approved by a aJrnificant portion of the electric: utfHty in dUltrr prior to such time, or any of the ~ractices, l'I,\ethods and acts which, in the exercise of reasonable judrment (n li,bt of the facts bow" at -the time the c!ec:lsio1l wu Dl&de, could have b~n upected to accomplish the daired result at the *lowest reuonable cost consistent with SUod buslneas practfcu, reUabIlJty, ,afet7 and e.'tpedltfon. Prudent Utility Practice Is not Intended to be limited to the optimum practice, m"ethod or act to the exclusion of all others, but rather to be a Ipedl'um of possible pracUcu, methods or acts ha\rUtI' due ulard tor manufacturers' warranties and the rlquirements of governrtle:nbI agencies of cOJnpetent 5

Jurisdiction. In evaluatinr whether' oY,Kt or proposal conforms to Pradent Utillty Prae tice, th~ P~II shall take into account the objectlYe to achieve optimum. utilization of the' Authont1'1 ~urces.

(II). "Supplement&1 Bulk Power SaPJ111'" shall mean, with rupect to a Participmt, that portion of Bulk Powu Supply required 'br IUch Participant in txce;u of that l~ppUICl'from the Project and, unless otherwise'provided, from aDT future project. inmll! or controlled by.

the Authority from which the Participant contracta with the* Authority to purc1u.se ~ectrlc power aDd enulY and hi excess of the reeratint capacity resern lernce, tr&ZllD1laiOI1 hr~

vice, Icheduled, emer,rmcy, or ICOD.QM1' iIlterchanre amee, aDd .uch other ..mee uaodated with the Project as sh.al1 be sUpplied by the Authority in* accordance witJi the proVisioI1l of Section 80a. hereof. . .

. (v) "Uncontrollable Forces" mearLI &Dy cause beyond the control of the Author~tr "lUch by the e."Cercbe.of due dmeaDce th~ Authority II l1nable to prevent or overcome, Includlnl but not limited to, failure or refllSal of &DY other pencn or entity to campty with the:a emt:bI.r eonU&cb with the Authority or with a Particlpmt. an act of God. tir.. floOd, explOlion, atrlke, sabolale, pestnence, an ad of the pubHc enem.y; dYiI &!ld military auth()rity Including court orders, Injunctions, and orders of ro\"trnmental arewes ~th proper :furildlc:tio12, In surrectioD or riot. an act of the elemmb, failure of ~ulpment. or £n&blUt7 of the Authority or my CoDtractOrs enlaced In 'Work on the Project to obtain Or Dip m&terlals or eqafpment becaase of the effect of shnilar causa 'on IUppllus or carriers, or lnabilit,- of.the Authorit,- to sell or lillie Ita bondl or DOtes. .

(w) "Uniform Sratem of Accounts" means the Uniform System of Accounts for Clau A

.and B Public UtiUtiea aDd L!ceJ1aees &I prescribed and; frol:l1. time to time, q ameDded or modified or subatit1;1tipn therefor made by the Federal P01'le.t' Com.mlssloD or.its IUtC.lor.

ARTICLE n CE.RTAIN OBLIGA"TIONS OF THE AUTHORITY AND THE PARTICIPANT Sectlon 201. *.Bulk Power SuppIr.

~ Authority 'shaD provide or cause to bl provided and the PaTtic1p~t shall tab from the Authority the BuDc Power. Supply of the Particlpant The Alltliorit,- will be rlllpoUl'b1e for planniJlr. necotiatilli, desiping, financInf' acql1irlDl' or construd~, eontractfDl for, admiDflterLnr', operatfnr, and maintainfnr all reuratlon and UaI1lmi**iOD arnJieemeatll and facilities necessary ~ effec~ the deUverr a~d sale of IUch :Balk Power Supply to the Pll' ticipant, provided, however, that the Participant may procure alternate bulk po.....appl,.

fUOUft;1I pUrllW1t to the terms of Section 404, hereof.

./ SeclioD %02. Annual'S7ltem :Budre~.

The Authority will prepare and submit to tb. Participant an Annual SYlIt_lIgdret It lust Dinetr d&1l prior to the beaiDninc of each Power Supply Yar. The Parllclput may tbeJi ltubmit to the Authority; at any time uDtll IUch budret is adopted,' allT matters or auc I'UtlODB reI:ltinl' to the ~udret whIch the ParticIpant -may care to present The AnthoritT shall theD proceed, with the couideratfon and adoptf9R ot ncb Badret}lot Ius than thirtT nor more than tortT-five daYI prior to the beliunlq of IUch Power Supply Year aDd .hall cause copies of luch ad.opted Budcet to be deUvered to the Particip&Dt, proTiifed, howevu, the Badl' et for. the first Power Sapply Year shall be prepared. considered, adopted aZ1d deUve::ed III 6

the moat priu:tieable manner available In the dfacretioD . of the Authority. As required from time to time durfnr any Power Supply. Year after thfrly da1s nottce to the Participant, the Authority may adopt an. amended Annual Sntem Bl14ret for and applicable to such Year for the remainder of auch Year. .

SectlOIl 203. Reports.

'l'be Autharlty will pripare and issue ~ the Partidpanta the foUoWi.Dr reports "each month of the POWIT Supply Year:

(1) FiJ1andal and OperatiDr Statement relatinr to tAe Project and to the Supplemental Bulk PoWer Supply, " .

(2) Status of Annual System Budget.

(3) Statu. of construction bud let of the Project durin&, con.struct!on, (4) Analysis of operations relatlnr to the Project and to the Supplemental Bulk Power

~up.,ty.

Sectlm 104. Records and AccounLs.

The A.uthority w[ll keep accurate rtcor~ and aCl:QlIDU of each of the facilities c:omprilin&,

the Project aDd of the tnnucC01ll relatln&' to the Supplemental BuDe Power Supply al well I I of the operations of the Authorit11n accordance* with the Uniform System of Accounts.

Sald IccOUDta shall be subject to an anDu&l audIt by a firm of iDdtpendmt certified public ICcountaDts experienced in electric utility iccountlnr and of national reputation to be su~

milted to the Authority withIn sixty days after the cloSI of any Power Supply Year. *All transactions of the Authority relatinl' to the Project and* to* the SuppltJllctal Bulk Power Supply with respect to ea.c.b Pov;-u.Supply Y...r shall be lubSect to IUch an audit.

Seelion 1Q5. Ccmsultl1\E EDrlneer.

Ca) The Autharit1 will" retain a cOl1lultln&, enl"lneer to ~Ill.t. advise and %nake :recom mendations to the A.uthority OD matters reJatiq to electric power reneration, traJWZIbIJoD, power euPP17, 11ectrlc utmty operatiaUl, :rates lIu! cbarru. feulb1lftr and. budlats aDd ahaU

~UH such cQulultfnl' e~lineer to prepare withfn 01:. hundred aDd tWcty data foUowi%I.. the "e]ose of u.ch Power Supply Year an aDDual comprehensive t1llineeri~ nport with raped; to the Project aDd. to the SuppJemcmtal Bulk Powu SuPP17 for the imm~attlyprlCedln, Power Suppl)"Yur which shall ~ODt&iD .. copy of the anDual audit and which Iha1l fDelede: "

(1) A report on the operations of th6: Authority; (2) A r~o~ OD th~ mUiaeUl1ct of the *Project;" .

(3) A. report OD the lutfS.clmer of "rates &,%Id charr. 1ar lernces~

(4) A relloz:t on requirements for future bulk power lupply; (5) Recoznmendatians as to ellanru iD operation and the makfn.. 01 repairs. renew a1l, replacements, exteD.slons, betterm~nts and lmprovement.s; and .

,(6' 'A proSectfon of the AuthoritTI colts of providlZlI" the Bulk Power SUPpl7 to &11 Partfdpants 10r the eD.llwne 1Jve 7ear pulod. ", '.

(b) The Al1thority shall callSe a copy of laid eaineerine report to be delfvered to each Participant. . . . . ."

7

,e Sedion 206. power Sapply Planninr. . . .

. The Parlicipant win keep the Authority adTiaed on all matters relatiDr to the Partici pant's power supply plmnilll includlnr but not Umited to load forec&llts, ptClpOled trans misliIon and reneration 'additfons and new l!eUvery points.

Sec~lo~ %01. Dili,tnee.

- The Participant will exerebe dill,tDCe in thl opua-tion of ita electric .,..teai with the view of lIecurinl' elficiel1cy i~ keepinr'with Prudent UttUtr Practice, will CODltruct ita f&elli ties In accordance with specificaHoDS at leut equal to those prescribed br the National Elec tric Safety Code of the tJ. S. Bureau of Standards, will maintain ita Un.. at aD tim.. In ..

safe oper&ltlll' conditioD, ud will 'operate said Una {n lIucb DlaMU u not to interfere ~

duly with the operations of othars. The Participant wlll USI el.eetric Anic:e equUy.!rom tU three phuu as uearlr u possible and wID maintain a power factor of 89."" 'lapr or IUch rreater Jlower factor &lI may be arreed upon by the Participut in the lh:bt of any other co,n*

'tract betWeen the Authority and an: othu partr, and such arreement br the Participant shall not be unreuonably withheld. ' " .

Section 208. Access.

Partidpant win rive an necewry permlutoD to enable the areAtS of the ,A&ttboritr 'to carry out this Contract and will othenrfse be subject to appUcable terml and coadltloas let forth In tholle tariffs which affect the Partldpant and which are fUed with ~ Federal Pow.

er Commission. The Authority and the Participant each will rive the other- the ript to enter the premises of the other at a'll reuonabJe.times fqr the PW'PO** of rlpairinr or- removins

. !aciUt.iu, rudlnr meters and performil1l' work fncidental to deJ1",ery and receipt. of BuDe Power Su-pply. '

Section 209. Adjustmtnt 01 BiWnr.

At the end of each Po~~r Supplr Year the Authority shall determine if the allTerate

,amount paid by the PlIrticipant 'under Sections 307 aDd 40S, hereof, to proYid. recoyU'1 of zl1 the .... uthority's costl durinl atlch Power Supply Year was in tl)e proper- alDOWl~ alid, upon the makiDI' of such determination, any amount found to bve been pud by thl 'Par ticipant in L'CeeSS of'tJ;le amount which shoWd hue been paid by the Participant ahaD be credit ed. on the BiDina- Statements to t~ Partlclp&nt for the remalnina- month or monthl of the Power Supply Ylar next succeedinr the Power Supply Year for which suc:b adjustment was determined to have been necess&ry. Ten ~lJ1t of the &mount of any' deflc:icC1' .Ihall be added to each of the Jle.'rt ten BiUlnr Statements. In the ....ent that the faUun of a Parllci.

pant to pay it.!.Entitlelnent Share of Annual Project COita in. aecardaDC8 with* its Power Sales Contract shall ha"'e ruulted In the appUcation of amounts In aXl1 raerve or worklq' fUAd under the Bond Ruolution to the payment of costs payabll from lach reHrYe or work.

inr fund and the othtr Partfcipants lhan have made up the*tiefieency created bylUch appU cation or pald additJona.1 amounts .into such reserve or worldnr fund, amo\mts thereafter paid to the .A uthority by sucli nODpaY{n, P artic:1pant lor application to such put dUI payments shall

b. credited on thl! BiWqo Statements of such other ParticIpant. .iD the next month or mentha

a. shall bl appro.prlatL SecUon 2.10. Disputed lrlollthly BWLnI"Statement.

In cast any partlon of any monthlY-BilliDl' Sbtement" reeeh'ed by the Participant trom the Authority, sha.ll be In bona lide dlapute, the PartlclpaDt shall pay the Authority the full amou~t of such monthly BiUlnl' Statemet, and, upon detumination. of the correct amount, S

tha duference 'betwem IUch correct I.!nQunt and such full amouDt, if any, will be credited to the Participant by the Authority a.fter such detvmination. In the event such monthly 13lllinr StatemelLt Is In dlsp1lte, the Authority wm live consideration to Judi dispute aDd 'Will advise the Participant with resard to the AatboritT'1 posltiou. relatlvi ~ereto within thirty days foUDWinr ~ttm notif"u:atioD 'b1. the Participant of IUCh dispute.

Section 211. Sources of PUUclpUl~" PaymeJ\u.

The obUptiol\l of the Partfclpa'Dt to %D&ke the })armmts to the Authoritr under this Contract shall constftute 18lIera! obllratio11l of the Partidpant for the payment of which the full faith &%Id credit of the Partfeipant shaD be and the l&II1e hereby fs pled red to provide the funds required to fu1:fil1 all oblfratfoJU arlsinr u'Dder thii Contract. Unless aueh payments or provisloJUfor IUch paYMents ah&11 have been made from tne re~enu... af the electric sys tem o~ tlii ~artichant or from other funds thereofi the ParticIpant ..111 &nnuall1.1n each and ever)" fiscal Ylfr ~arlDr the tum of this Contract Include in its reneral*rev~u. or appro

. priatron meuure, wbether or not any other items are induded. Illms suffIcient *to satisfy the payments required to be made in each year by this Con~c:t u~tl1 all paJmenb required un der this Contract have 'been pa.id in full. In the event for any reuon any IUch provision or appropriation il not made for a fiscal year of a Participant, then the chief fiscal officer of the Participant shall, In accordaDCe with the provisiollS of the Act in effect as of the elate of this Contnct, set up as an appropriation on the accounts of the Participant in each fiscal year the amounts reqUired to pat the ohUaations called for under thIJ Contract. The amount of the appropriatfon !n IUch fiacalyur to ~.et the obUratlolUl. of this Contract shaD. be 411e and p~yable and ~aU be expended for the p\U1lose of payiq and meeliDK the obliptions provided under the terms and cond.ltiollS of this Contract, and such. app;roprfation shall have the -lame

. lepl atatus as If the Participant had IDcluded the amoant of the appropriation in Its lenerat revenue or appropriation mUl~re.

~cUon Zl2. Jtate Covenant.

The Participant will ut&bUsh, maintain and collect rates and cAa.rKtlI for the electric service of itl Iledrlc mtem so as to pro~de reVeDaes sufficient, torether with anDable elec tric s)"Sum reservlS, to mabie the Putfdpant *to pay to the AuthoritT an &mounts lIlLyable under this Contrlc;t and to pay a~ other amounts Slayable from and all lawful charr81 aralnst or lle%Lll on the reveDues of ita e1~c S7Stem. .

ARTICLE In ELECTRIC POWER AND ENERGY FRO~ THE PROJEC1' SectfozlS01. Ownusldp ot Project:

The Authority wfU Juua the :Bonds in series *from time to time undu the Bond Resolu tion to finance and shan own the Project consiltinr of the Authorltrs ownersldp Interest IA the reDlrati~D and tnnsmJss10n facllities described in the Ducripti01l of Projed attached to Uti. Coutract and wiD calise to be de1i'Yered to the. Participant durlnr' udi month of each Power Supply Year ttl Eutltlemetlt Shu. of the. output aDd 'Iervices 01 each lacWt)" of the Project for the Qsefu111te of eac:b lach f~lit1 of ~e ProJ~t. .'

Secc.ion 302... Cosu ot Generation and Trarumiuion Facilities Comprlsiac th. Project.

(a) Thele ,eDeration and transmission facfUties comprising the Project will, for pulllOSu 9

of accoQ!ltinl for the AuUtority'1 costs and c'harres to the Parlicip~~b1t be leparated'into (ll

~eneration and re1at!d tnnsmlsston faeilities, aDd (ii) transrni.s3lon system faciJ!t:les; (b) The Aut~orittl'costs of providinr to' the Participants their EntfUemellt Shares of

, such renention ..ad related tra.nsmiu[on' facWtfes AI are inclllded in the Project will ba ac- .

counted. for as descn"bed in Section SO.6 (b) hereof, aDd (c) The Authority's'cosu of p~vld.inl to the Participillts their Entitlement Shatu of such transmiss\on system facilities as are in.dwhd in the Project will be accounted for u desaibed In Sectlon 306(c) hereof. and wUl be determined u follows:, .

, (1) Such trannnlssion system facUlties u are included 1n the ProJect wW be &cquJred

. by the Authority from time to time !or the term of tbII Contzact throulh pctielpation, ll\ an In.tepted tn~lsIlon system -ereement with other I:ItUltia. The Author!t,'.

In,,ut~ent responsibility In Nch tra:asmfslion IYltem. facDitiu for aDY Power Supply Year will be that perhntqe of the total \nvutment In the combined transmluion system facilltiu of the Authority and such other utilities obt&lned by diYidlnl the demU\d of total Bulk Power SupplJ prorided by the Authority to aU the Paitlcipantl durin. such Power Supply Year by the combined demands of the Authority and. such o~tr utilltles dUMrSUch Pow~ Supply Year and fXpressinr the ra~t u a percantlp.

The Authority'. responsibnity for annual capital costl rtlatin, to renewals. raplace mentl, repairs, addItions, be~rmenta and improvemmts to and tor annual opentlllJ costs of such transmission I)'Stem facilities for any Power. Supply Yar wiU be the" annual !:Spital and operatin. co.tllncw:red by tlw Authority for Nch facUlties.

(2) In th! event the Authority aaulD.U responsibility tor trm.million ol the Partici pants' aUetmenb of SUA power pursuant to urll1Iemenb" for ~hlch provislcn' is made in Sections 803 and 804 hereof, th... Authority'. ruponsibUlty for investment ln, and IOQual capital and operatfnr costs of, such tnnJrnIIIlon system'facilities acquired.

by the AllthOrity bom time to 'time throulh participation In Nch intepted trans*

million system asreement lDAy be increued. The Authority's Investment responsibnity in such increased transrniislon systemfacilities lor any Power Supply Year will be that percentap 'of the total Investment in the combined tnnsril.ission facilities of the Authority and such other utUitiu obtained by dividing thi demand of such SEPA power plus the demand ot total Bulle Pown Supply provided by the Authority to aU the Participanta dwin. .uch Power Supply Yeu by the combined demands of the Authority arid such other utUltiu durin, such Power S~pply Y~ar lAd exprusinJ the result .. a percentap. The Authority's responsibilIty for annual' capiW costs r.elatlal to renewals, replacement.l, repain, additions," betterments and improvementa to and for annual operatir:'ol costs of luch inc:reued traftnnission ayitem facUities for any Power Supply Year will'be th~ ~nua1 ':'pital and operatinll::osts incuITed b1 the Authority for such facilities. .

SKtion 303. JnterconnecLion Arrun~erllents.

The Author~ty wUl purchase or provide such leneraHo, capacity rue"e semeR, trans misaion unice, maintenance service, eme~enc:1 !ervice, economy interchan,e service an4 o~er fntereh&Dp semel aSlociated with the Proiect as may he neeesSU7 for the reDahie and economical supply of the output and .elvlees of the Project and wiU caus. to be de11Y1red to the Part!clpant durina' each month of the Power Supply Year Ita Entitlement Sb;lre of auch o~tput and lervil:U. The Authority may use electric enulY frorn the Project which la surplus to the rtclUlremellts of the Par~[c:lpants, II auc:h IUrptUJ may be available from time to time, for the pU~OIle of economy Interchanre a.rvice or Q~her hrterchaDre IImea with others.

and. &oy net revenues received by the Authority for any such Itmee, shaD. be credi~ to the Participants by th~ Authority in ]Irop~rtlon to their Entitlement Shares.

10

SectiOIl 104. Op<<ra'lloD anel MainllDllDce.

'!'he Authority covenants and lLiTeu thlLt it wiU OJlU&te, maln~in and mlLDale the Pro.

ject or caUle the lame to be operated, mamtained and mana:ed. in an ef!lciet and ecanDm*

ical mauer, cousi~tent with Prudent Utlllty Praetfee. . . .

Sectlon aDS. Insuranee.

The Authority shall maintain or eaule to be maintained. in !arc:i for the benefit ot the partltl b**to, u their interest shall appear, U Costs af Acqaisitioll. aDd Construction Dr An*

nu..l Pn!ect Colts. IUch in.suranu 'With rupeet to the PrDjeet as shall a ..vailable anel u is UsuaDy carried b1 utiUtiu eonstructinr and OJIuatinr Ierluatin,r !adUties bat, m the ~e of lIuc:lur IUluatinf fadlitlu, not lesa than win aaUlf1 ~ requirements of Federal &Del .tate law anI! the Nuc:laar Rqulatary Commission rtrulatioDi and such other lnsurance as fa au.

ally carried. bY electric utnitiu in co.n:formSty with Prudent Utility Practiee~

SectIon 306. CharceS &riel Billinp lor lh. Project..

ea) The hthoritr will establish fair and DopcUserimiuatory ebarl'u for .n outlJllt and

. ,ervica pronded by the ,Authority to the Partlcipanu relatln:* to each facilitr of tbI Project duiped to ree~er all o! the Authority's costs aDocable to nell fa.cility commanclnl' wlth the .

ComD1!rcial OperatIon D.te of such facility or the date to which interest baa been c:apitalbed ou Bonds allocable to Iuch facility. whiehever is the earliu, as let forth in the ADnual System Budret" or the amended Annual System Budret adopted by the Auth.ority punUILut to Section 202 bueof, and auch costs shall includ. Annual Project Costs.

. (b) na Annual Project C05U aDocable to the reneration and related tr&usmiaaion !acD lties of the Projec:t shaD. include at lust the foUowUil items of costa &Dd apUlIa:

(1) ".Annual Proj~t Generation FJxed Chari..." 'Which ;Deans ~

(A) the* amount ,.hich the Authority Is required under the Boud Res~lutiOA to PaT or depO!if: iDto any :fund or account utabUlhed by the Boud R..olutlon for the pa:rment of Debt Service and any reserve requirements for Bonds wblc:h are aUlX2ble to (1) the.eneution and related transmission faciUtia of the Project and (11) the workiq capital which is required b1 the Authorit1 :f~r prDTidinr Bulk Pow.

I t SuP.Il]Y. ineludiDl Supplemental BuDe POWII' Sapply to the Partrcipants aDd which is aUoabl. to the rener,tion and related trlDlmlsslon f.dUties of the Project: .

(B) the amoant (not otherwise included unaer an1 item in this Section SOS("a>>

aUoabJe to the I'etleration* and related transmillion fadUties at the Project which the AuthoritY. i5 required under the Bond ~esolutfon to pa1* or depomt duiinr IUch

.Power Sapp17 Year into any other fund ar account utabUshed 'b1 the Bond Ruo1u tion. and sb&1l1nclade, without limitation, any such amounts required to make up

,tl1 defIciency in GY reserve fund or worldn~ tund required or permittC b1 the Band ReaoluHoD resultfor from & default in pa)'1:Deuti by &DT Particlpa.at or Par*

tic:ipa.nts ot amounts due under ita or their PDwer Sales Contracts 'With the Authority;

. . ee) amounta. which the Authority is rllluired under the proviaions of the Bond

.Resolution to pa.y or deposit into a reaerve' for renewala and replacementa:

CD) aJDountl which must be ~eaiired b" the Authority for COTer.,. of Dibt Semce &5 may be required by*the Bond Resolution; .

.(E) amounts which %Dust be set uide by the Authority for the reHrementfrom 11

SErvice, l!ec~1ZWbsionin~, or disposal ot 'the lueutioD facilitieS of the Froj let as ",

m~y be :required by the Bond ResoJution:

(F). amounts 'Which must be paid by the Authorit)" for the purcbue of Imerat iDr capaeltr reserves tor the Projeet: ud

. . .(G) amounts which must be p~id b1 the Authority for the purchase of transmi.l

,ion lerviee for. the Project; and .

(2) "Other Annual Project Generdion Coati," which means:

. (Al aU costa of pr~ucinr an4- deUveriur electrie power aDd IHrlY from the Frojeet and providlnl the Participants' Enfftlement Shares iDduc1inr. but not llmited to, (I)' Fuel Coati and other ordinary operlltion alldmaIntenatu:e costa aDd pron alona for reserves therefor, admlnbtrative and reneral costs, lnsurUlC" oYerhead &Dd anT c:harlu payable by the Authority in conDect!on with the output of the ProjKt, (il) net costs of scheduled, eMtri'enCT, econolDl or ather interc:hanp Ierric:' incur red by the Authority In connection with the Project. and (iii) aU opeBtlon and maln tenan" cOJts reJated.to the oper_tinr and coDdllCtiq ot the busmlll of the Author ity IncludiDi salaries, feu for lel&1. enrimerm., and other seMices and an other expensuproJlerJy .re1&ted to the corlliuct of the &!1'airr a.f the Authority; and "

(B) amounts required of the Authority by the provistoIU of the Bond Raolu tIon to pay the' cost of or to provide resuves for (n utr~rdlnr.ry operatinr and maintellUlce costs incJudil1l the COiti of scheduled. emulenc)', or othQ' interchanle semce and the prevention or conectlon of my unusud loes or damare to keep the

.eneratilll faciUUes of the Proie<<;t iJ!. load operatinlr condition, or to prevent a lou of reyenue therefrom, (If) aD)" major reneWals, rlplacemenl:.!,repaln, r.ddftloDS. bet termel1ts aDd Improvements neculary, in the opinIon of the Consultbl' Enrmeer. to keep the Ilner.tinl facUltiu of the Project in rood operatlnl condition or to 'Pre vent I Joss of revenues therefrom and" (iii) any major additIoDS, lmproTemenb. re pairs or modifications to any sucb r.neratlnr facility, or any decommissiouln&'1 or disposab of an1 .uch I'eneratinr facility, required by allY 10T,rnmetLt&1 araney hav iDa' Jurisdiction over the Project or for which the Authority ahan'be respoDSibJ."by virtue of &111' obliratlon of the Authority arisinr out of any contrac:t to which the Authority ma)" be a partY reJath!1' to o~ers1Up of tne Project or Iny facfiity there of to the t."ttent that the Authority Is not reimbursed'therefor trom the proceeds of insurance or ftmd. for auc:h payment are not available to the Authorlt7 therefor from any fundi or accounts ht&blished under the Bond Resolutiol1, or funcll fol' IUch p.yman~ are not provided or, to be provided by the issuance of additional Bonds punuant to Article V ot this Cantnct.

(d ~e ~~u~J *P:roject* Costs allocabJe to the trau'smiuion lyatem fKIllUel of the Project,shall hlclude at lea.t .the fclloMn, Items of costa and expenae:

(1) "ADJ:IuaJ Project Transmission Fixed Charles," which mullS:

(A) the amount "'hieh the AuUlority Is required under the Boad Relolution to plY o'r depOliit fnto, any fund or account utablished by the Bond. Resolution for the payment of Debt Service and. allY reserre 'requirements for. Bonds which are alloclble to (i) the tranamiuion sYstem facilft!u at the Project and (li) the work.

ml capitAl which is required by the Authority tor providiar Bulk Power Sllpply, in cJucUnl" SupplementaJ :Bulk Power Supply, to the Partlcfpr.nts ud whIch is allocabie to the tran5mission ay!t@ftl fr.dUties of the Project; 12

(:8) the amount (not otherwise ineluded under any item of this Section aos (c>>

aUocable to the transmiulon IYltem ficlUt1a of the ProjKt which the Authoriti is requind wder the Bond Resolution to payor depoalt durblr aueh Power Supply Year blto &JQ' other fund or account* uta.blished 'by the Band Resolution, 'and shan mclude, without Umit&tion, an,. luch amolmts requlrld to m.ake lip IU1)" cl8fldcC7 In ID7 reserve fud or 'Worldnr fund required or permitted by the Bond Resolutlon resultlDl ~m a defalllt in payments by any Partldpant or Participant. of amounts clue under its or their Power Sal. Contractl with the Authoritri (C) the &mORt which the Authorlty Is t'eq,uired uIIder the provilious of the Bond ~olutioll to P&7 or deposit into a reserve for nn~wl1s and replacements; and (D) amounts which must be realized by the AuthoritJ for coverai'e of Debt Service Q 1:11&" be required by thl! Bond Ruoll1t1an; and (2) "Other Annua.l Projec:tTranlmission Cosb," which meam':

CA) amounts for ordinary operation and maintenance cOlta, Ichnh1lJtr&tive and I'eneral coat", insurance, overhea.d, and any other charres parable b,. the Authority in connll:'tion with such transtrUu(on Q'stem fac:11ltia. inc:1udllll' 111 aedib due to Partlciputs with respect. to delivery point transmission facfllties; and

(:8) amounts requlred of the A.uthority by the provisions of the Bond Resolu tion to ~ the costs of or to lIrovlde reserves for (I) ,xtraordlnar)' operation and maint.nnce cOl~, includinr the prevention or correction of any UJlulualloS1 or dam ap to keep the transmfuioll sntern facilities of the Project in rood operatlnl' con dition, 'Or to prevent. a loas of ravenues therefrom. (ill anT ~jor rtnewals, replace-* .

ments, repairs, additiolUl, betterments and Improvements hecessary, in the opinion o! .

the Con.uJtml' Enrineer, to keep th. transmiuion S7ltem faclllti. of the Project .

in J'OCId opllratbll' condttfoll or to prevent a loss of revenues therefrom and (iU) any major. addltfcms. Jmprovements. repairs' or modifications to any such transm!ufoD f"Uity required by any I'overnmental agency hniDI' jurisdiction over the :ProJect or for which the Authorlt,. shall be responsible by virtue of any obUption of the Au.

thority arisinl' out of any contract to which tne Authority mar. be a part)r relatinr to ownership of the Project or any faclUty theteof to the L'CteDt that the Authority Is not r..lmbursed therefor from the proceeds ot Insurance or funds for. luch P&.7*

lXlut are not l."afJable to the Authority therefor from an,. fundi or accounts ata.b Jished under the liond Resolution. or funds for luch pa~lnt are not provided by the usuance of additional Bonds pursuant to Article V of thts CoIItract.

(d) Th~ Authority shall bill the Participant each month durinl ~c:h Power Supply Year by providiDl the Participant with & BlUing Statement for s.uch month In accordance with .'

the ch.&r,u estabUshtd parsuant to the provisions of. thb Section 806. Such BiJUq Statemmt shaIl set forth. amonf otlJer thInll, the sum to be Ilaid for .Ilch month 117 the Participant for its Entitlement Shu, of the Project output aDd servlees. and .uch sum shall equal the

~artfdp&Dt's EatftJement S~re of that amount of Annual Project Costs, u estimated in the thua current Annual Sy.tem Budpt, whIch the Authority is required pUr$ualit to the Bond .

~uoJUtfOD to ac:e:nJe. payor set aaide durin.. each month. Such monthl)" BiUin..* Stat..- nct

.*ball tneIude a credit for IUch deUvery pOint tranimJssion faclUtJu u an owned, f"m&ll~d, or operated by the Participant, and such Billing Statement sball be paid by the PartJdpant on or before.the tenth day from the date of such bOl. Amounts due and DOt paid by the Par.

ticipant 021 or betore .aId day .hall bear an additional eharre of on. and one.half percent per month tmW the amount due Is paId in full. At the end of eath PC':Yer Supply Year.. adjust ments of bmfnl' shall be mad. in accord.nc.e with Section 209 hereof. If tbe P&rtldpant pays 13

leu than the full amount:. due with respect to a :alliiDr Sta.lement, th' partial pa)'mt11t 10 :re ceived shall be applied fint in discharre of the Participant's obUrltiOD to PI)" iblElltltltmlmt Shari o:f the AIlDual Project Cor.. LI provided fa tb1s Article m baforll211 f1mdI from IUch partial p~yment. are appUed to, ~e diacharr. of the PLrticip&~t'a ob~atiou -mde the pro mioa, of Article TV henof. , . .

Twions of .Article V, hereof, the Authority will mcreue suc:h elemenb of Azmual Profect:

as are necusar7 and the Participant 'shall pa)", its Entitlement Shan of such increased charps p~luant to the provisions 01 SeetloD 801 hereot.

c_

ee) At* such times u the AuthorIty iasues additional :Bondi in lCCordance with. the prOe SecUon 307. Project Entitlement and Pa:rment ObUplloDl.

, Ca> The Participant sh&ll be en~Ued to receive its Entitlement Share at the'output ad transmission services of the Project ud l)l all' services pro'rided by lbe Authorit,. In ac cordance with the provisions of Section 303 hereof, as m.&7 be IVaDable tor th' useful Ii:Ce at the Project.

(b) The Partidpant shall pa7 ita Entitlement Share ef AnDual Project Colts let :forth fn the monthI)" BflliD,. Sta.temmta lubmitted by the oAuthorityto the PartiCIpant l:n accord ance with the provisions of SectiOD 306 hereof, whether or not the Project or &D1' part ther..

of haa been completed, rs operatin~ or operable or fbi output r. 1IllSptDded, In~ptad, in terfered with, reduced or cumDed. or termInated in whole or 1D part, aDd IUch pa:rmmu

.hall not be su~leet tG reduction \Thether by offset or otherwise and sbaU not. be condition

.&1 upeD. thtl'edonnaJ1ce or nonperferrtl:ance by ~ny party of an7 arreeuwLt fer'~ cause wh&tever.

SectlDn a08. DetermL"1.&Uon of Participant'. EntiUemen~ Shues ot TraDsnzisaioli SJ'ltem F....

cUi tieS IllcJuc1ed ~ .the Project.

Ca) With respect to tnlnsmisaian system facillUes included in the Project. the Entitle ment Share for each Pa.rticlptnt. to be determined by the Authorib' for each Pewer* Sapp17 Year shaII be the pet-:eDtqe aRoeabIl to the P&rtldpant of the tnunUlllon .nca provided bT the Autharity and of the cD8ts Incurrecl b1 the Authority re1&~ to such t.r&Jl.Smi\OD ~

tim facilitiu AI art ac~uired by the Authority from time to trme fOI the term of thlI Contract tbroul'h p&rtic!patfon!n an interrated transmlssloD mtem Irreement with other utilities.

Such percentare lhall be determizsed by the Authority b7 dividln, the aytrap of the ~e:-bour inttif&ted coincident system dezunds fol' :Bu1Jc Power SU'Pp!)" provided bJ" the Authorltr to such Partldpant durinr each month of lueh Power Supply Year b7 the avera,e of the ODe hour JnteaTatlld.coincident s7ltem demands 01 total BuDc Pewer SupPl1 pzoYidecl* by the Au thorib"to aU of th' Partlcfp&~ts durbir ea!=h month of suchPlIWu Supply Year and apressinr the result as a percent:l.t so that. when all of such Entitlement Sbllrel 10 computed by the Authority are added torethar, their sum shall be one hundred. For the purpo.s.. of IUch com-.

putatiOD, the one-hour interval ..haD be the hour duriq which there ahaI1 accuz: the mufmum one-hour interrat.!:i cofneident STatem demands of tatal 'SuUe Power SupplJ provided b7 the Authority to all of the P&rtfdpanu. . , .

{b> III the eveDt: the Authority a.uuma rupouibility for transmlsalon of the Partici pants' allotments of SEPA power pursuant to arranremeDts 'tor which pf011slon is made in Sections 803 anel 804 hereof, and 'uch rupouibilitT resuIta In an increase In the investment In and annual'operatin. costs of IUch transmission !)'Stem flcilities, the EntiUeznent Share for each Participa~t to be det~rmined by the Authority for each Power SaJ)plT Year IlhaU be the percental" allocable to the Parliclpant. of the tranamlui~ .serricu provided b7 the _I\.u 14

e.

thorlty and of the ~b in~rrea 'by the Authority relatiDr to laeb ~crus,d responilbi1~ty.

Such percenta~eshal~ be datermined 'by the Authority by dJvfcUnr ~e averap of the on..ho.~r

!:atesntad coincident Iystem demands of su~ SEP A power plus the de~Ddl of Bulk Power Supply provfd~ by the Authority to IUch Participant durinr each month of such Po~er Sup ply Year py the averare one-hour interrated =fncident s1ltem demancb of SEPA. power and dema.ud. of .total Bulk Pow~r Supply provided by the AuthoritJ to aU of the Participants durinr the same one-hour interval of each montb of IUch Power Supply Year and uprusiDa' the zoe

'sult u a percentara so that. when all of such Entltleme>>t Shares 10 computld by the Authority are a"'deli torether, their lum shaD be one hundred. For the parposu ohuch coinpuutlem. the oo..hoor fntuvallball be the hour during which there shall occur the maximum oneo-hour Inte

~ated coincident I)'IWD dem.and. of SEPA poWer and demands of total Bulk Power Supply provided by the Authority to all of the Participants. . ' .

(el Sach Entitlement Shares of transmJision system fadUties included in the Project shan be estimated by the Authprity prior to the bepnninr at &Dy Power Supply Year and such estimates 'shaD be ~t forth In the Annual System Budae!:. :Rr.isioDl o~ sueb estImatad.

Entitlemeut Shares shall be made 'by the Authority at the end of IUc.li PoWer Supply Year based upon IUch .,.Item demandl u actuaD,. expertenced and the blllinl'l for.luch Powv Sup ply Year sball be adjusted by the Authority accord!nrly.

Section 809. Plldre ot. Paymellt.l. .

. AU pa1D1ents required to be made b1 the Participant pursuant to the pro..isioDS of this Article IU, and aU other paymeut.s attributabl~ to the Project or to the Annual Project Costs to be made In accordi.nce with or purluant to anT ather provialou of this Contraet:, shall be pledled to secure th. paJ:m.lnt of the Authority's Bcm4s.

Section 310. Pa)-ment u OperaUn.. EXpeIlSl.

-So lonr as Ileetdc power and enerrr shall actually be receivld by a P~dp&Jlt from any fadlity or facilities at the Profect., 'the Participant's Entitlement Share of Am",~al Profect Costs shan be pald by the l'articipant as a COlt of plU'Chased electrie power and eDUKY for Participant's electric Iystem and ~ an upenae of operation and maint.Dance thanof*.

Section 311. Credit. tQ Annual ProJ.d Cost.

The Authority may. pursuant to the Sebedule of Entitlement Shares &Dd ps.rt!cipation In an*hrtqra~ transmission system alnement with otliers. for which provilfon is-mad. In See tion SD2(e), hereof, leU the output and lle"ieu of facilities lncluded In the Project to other ut:llltlu. !'he aDticipated proceeds from IUch aaa shall be est1mated in the Annual System Budret. and anr net revenues actually rec:e1v.d by the Authority al the ruult of IUch ..lea to other utlUtill durinr ~ month of the Power Supply ye..r shan be credited to the Partici pants in proportion to their Entitlement Shares in the monthly BURDI' StatemGt for the foUowini month. .'

Section 312. Sale of ExclS! Participant's EntUl.ment Shart.

In .~h" ev~nt the Partlclpant shan determine thlt all or auy part of the Partidpant's

. Entitlement Share of the output and IIVVICIS of the rlnuat!Dr faciUtiu of the* Project are in IXCeu of the requirements of the Participant. the .A.uthorlq may leU and transfer for any period 01; time all or any par~ of IUch I."(ceq output and anees to lueb other l'artldpanta aa shsJI &i'rH to talce IUch excess output and IIrvlc:.., provided,' however, that In the event the other P~rt!dp.nta do not al1'ee to take the enUre amount ot luch excesl,. the Authority 15

e, shlLll hlLve the rlrht to dispose of laeb ex.c:~s to other uhuties. If aU or any portlOJi ,of lach exceSs of the PartJcipant'1 Entitlement Share o! output and .urica Is 1014 purll1&Dt to this section, the Participant's Entitlement Shire IbU not be teduced, and tH Participant ahan nmain liable to thl Authority to pay the full amount o:l Its BW1Dr Statement &I if laeb, lale bad not been mad.; except that auc;h llabiUtr shall be dilchar,K to the ~t that the Authori ty .hall receive payment for sach excesa output and services frolll the purchaser or purchuerl thereot.

ARTICLE IV SUPPLE14ENT.U, BULl: POWER SUPPLY ARRANGEMENTS

,SecU,on 401. Supplemental Bulk PO'ftr Sllpply ProYided 'by the A'IIthoritr.

The Authority will provide or cause to be provided to ~. Participant its Suppl~ental Bulk Power Supply during each month o! each Power SlIPply lear. Such Sllpplemenbl Bulk Power S.upplr may include, bllt shan not be'limited to, pl1'tfal and full requl~.lZlenu firm power purchases, l:ad unIt power lar:vice, firm and nontirm capacity and cerlY aernc:e, .

ttallsmluioll service and other [nterchanc. IImee made ILvaIlabl.... a result of tranu.~'

Hons with other utilities. The COlIbi to the Authority of electric power &Dd enerD' purc:baaad by th'e Authority from other utilities based upon tarilfs filed. by IUch other utilitl.. 'With the Federal Power Commlsllon win be directly reflected in the monthl, BilJinl Statement to the

, ,'Participant. Sllch monthly BOnDI Statemut wUl Include a credit for such delivery point tranamissioll faciUties as are owned, fin&Jl,~, or operated bT the Part:l:c.ipant.

Section 402. Charres for Supplemental Bulk POWI%' Supply.

'ea) The Authority '\ill establi.h fail' and nondiacriminatory charps for all aervices provided b)" the Authority to the Participants relatl~ to the Supplemental Bulk 'Power Sup" ply of the Pa.rticipanb desl~ned to recover aU of the AuthoritTs cost! of acqulrinr, fina.neinr, operatin~ and. maintainllll'such Supplemental Bulle Power Supply I I such cOlts are let'forh in the Annual System Bud~et or any amended .ua.ual System Budpt adopted b1 the Au thority pU'rauant to Section 202 llereo!, and suth coats shallinc1'ude Annual Supp1emmtaI C08ta I I defined in Section 102 ec), hereof; ud (b) The Authority shaD bill the Participant each month duriDl each Power Supply Year by providinr the Psrtldpant with a BilUnr Sta.tenumt accordiDr to the chug. est&bUlhed pursuant to the pl'cry-islona of *thi. Section 402,. for the lervices lupplled to the Partlcipant by the Authority asaet forth in Seeti~n 403 hereo!,' and for the costs incurred by the Aathoritr u se~ ~orth in this Sectlon 402, and IUch hlll shalt be paid by tAe Participant 011 or 1M!ore the .

tellth da)" Il'0m the ~ate thereof. Amounts due and not paid by the PartIcIpant on or before said daY' shall bear an additiona.l c:har~e of one an.d one.ht.l! percent per month until the &mount due is paid in full* .At the end of each Power Supply Year, adjustmenu of bilHnll IhaU 'be made in accDrdance with the ptovisions fS1 Section 209 herlof. .

SecUon 403. Supplem.enlal Bulk POlVer Supply Taken by the PartlclpaDt:

. 'rhe Participant: shall take all of t"ts Supplemental Bulk Power Supply from the Authority.

and shall pay to the Authority the Partfcipallt'l Proportionate Share of .~uua.1 Supplemental Coats aet forth i~ the JUOllthl,. BimCK Statement submitted by ,the Authority to the Putlc1 pant:. . ,

1&

'*e*

SedlDn '04. Alternate Supplemental Bu1Jc Power Supply ResolUces.

If the PuUdpant desires to procure an alternate .ource af supplemenW bulle power sup. ,

ply other than that provided by the Authority, the Participant may do 10 under the followinl' tenu and condlti~: ' '. ,

(a) In DO eVent will the Participant's Entitlement Share of the Pr!liect be reduced, and the Pdc:1pant wiD contfnue to lie obUrat~ to pay its Elltftlemmt Share of .AJmual Project Coats; , .

(b) The Particlllant will enter into an intercomedlan ap'WDut with the Authority lor reserves, emurtncy, tl:onomy, sc:1ledulecl &Ild other interc:hanr. service, the tuma and condf tioDS of which ,,111 be ,1mJlar to thOle contained In interconnection arrurtments betweeu the Authority and otlwn.i'aDd , . ,.

(c) The Partidpantwill!ive notice to the Authority of its intention to procure IUch alterna.te lource which will relieve the Authority from its obijpt.ion to provide .ernce equiv alent to such altIrDate source. Such notlee wl11 be at leut the foDowinr:

(1) Two ,.ears if such alternate SOurcl equals 20'; or less of Particip&llt'l total peak demand J~ SEPA power and Participant's En~Uement Share of the output an.d services of the rceratinr facilities of. the Project; .

(2) Three :rearl If IUch alterna.L.e SOurelS equals more thaD 20" bqt not rrl&ter th&n SO % of PerUdpant's total peak diman4 leas SEPA. po\"er and Putfc1pant'1 Entitlezneat Sbne of the ~utput a2id str\icel of the reneratiDr facilities-included. fn the Projecti (3) Fiye rlars if such alternate source equals more than 305(, but not nuter than

. ,~" of Participant's ~ta1 peak d~and lUI SEP.A power and Particfpant'i Entitlement Shari of the output.and services of the rl~atinr t~1itlu of t,hl ~roject:

") SIVa :rlars f! lucb alternate lonrce equals mon than 'O~ but not poater tbQ 60'; of Participant's total peak demand leu SEPA power Ind. .Partidput's EntiUement' Share of the ~utput and services of the' ieneratlnr f&ciUtiu of the PtOjecl i (ll) Nin. :rears jf such aiternate SOurCI equals more than 60" of Participant's total peak demAnd lesl SEPA pOwer and Pa:rticipant'l Entitlement Shan of th. output and.

services of the rentratin, faclUtlu of the Projectj' Provided, however, that the Autharity and the Participant mar mutuall)' aaree to a notic.

corter than an:r of those provided -above if no burden or cOlt wouJd be bDposed upon the Authorit:Y u the ruult af such ahorte:- notice.

SecUon' 405. IntercoMectlon Arranremenb. ,

. The Authority -and t:h~ Participant mar mutua.Ur agree to enter.into fntere011nectiOu ar.

ranr~entl for r.UlrvU, mUrlncy, economy, schedulld a~d other Inteichanp IInice for leneration and transmiSlian facilities owned by the Participant on the tlfective d&te of th1a Contrkt, the terms and conditions of whIch arranrements shall not be 1nconI!stent with .the proriaiollS of this Contrad. . .

ARTICLE V

. ADDITIONAL .BONDS SecUOJl 501. IssulJ\ce of .Additional Bonds.

Ca) Ad,dftional Bonda may be aold and il~Utd b:r the Authority in ACcordance with th pr~;![olll at the Boad Rllolutfon a.t an7 time and from time to tim, in the n'~t, tor oy 1'7

raUGJl. the proceed! derived frau! the 'ale of the Bond. flrat: vaUdabd pursuant to the pr~.

viJions of the A.ct ud. of WI CoDtr.ct shall be iDaufficient for the purpose of completing the initial faciUties of the Project &Del placiq nch f&cility thereof In Commercial Operatioll In eludin the compl.ttoJl of thOH tnDsmiuion 11Item fadlitles to be acquired and eonstructed bY the AathoritT prior to the Commerdal Operation D..te of th.last of the leDpti~I"fac1U ties of the ProS eet to be CDmpllted 1D order to m"t the Authority's investment respoDS.lbt1ltr

.durlDr such pariod fn coDeetlon with lIl1arreemmt for an intqTated transm1aicm sYstem to

~ch the Authority ma1 be .. part)" in lccordaDcI with the proYlsloDi of ..section 802 hereof~

(b) Additional Bonda may be sold and IsSlled by the Authority'ln ICco.rdaace 'With the pro vilions of the Bond Resolution ..t &D1 time Uld from time to time In the. enut funels are r ..

quirtd to pay the COlt of (I) Q1 mljor renewar.. replaeemenb, repairs, dcUt[(n:~II, better ments, or ImprOvements, to the Projeet neclUl:7. in the oplnlon of the CouWtiq E11IUl1C",

to keeP the ProSec~ til road OpeutSDI condition or to- preveAt a Joss of ravInues th~rom.

(ii) any major addltlou, improvements, rep&l1'I. or tI1odifleatlou to the Profect:, or aJl1 4e commissionlDP or diJpoIah of the Project, required by any governmental areucy h&vtD.i jurlldictlou 01er tal Project or for which the Authority shall be nspoDJ!ble.by "lirtue of any obUsatlon of the Authority win, out of any coatract to which the Authoritr may bt a party rllatiDI to owuenhip of the Project or aD1 facUity thereof, or (iii) nload futl for each pner ation facUity of the ProJec:t ta lDy Power Supply Year to the i~el1t that ~c:ient tuw &1'e Dot available in anT I.lnes uubliahecl by thl Authority for Fuel Coat. i proviW however, that DO such addItIonal Bondi may ))e issuld for the purpose of addinr additional l'eneratinJ uDita to the Project. .

(c) At IUch time as fuuds may be required to provide funds in ucess of those provf4~

fIOm. the uIe of the ,Jow fir.t validated parsuQtto the Act and this Contract to meet the Allthorlty's invatment responalbilltT hi Connee&n with the al'z:eunent to wbleh tha Author{

t1 II\&Y be & party providin, for lD fnterrated translD1uloll .t1.tem, In accordmce with the prOvbionl of Section 802, hereof. the Al1thoritJ' m&f provide such. tunds IS may be nICW&17 therefor by the £llQUce ot adciitlonll Bonda. . . .

(d) MT such additional Boads ah&11 be secured by assiznment of the pa7D1enta to be made by the Participants pursuant to the provisions of Article m of the Fower Sala Coli tracts, ineludiDI plrments required to 'be made under ArtIcle III of this Contract. an4 aU oth er payments &ttriblltable to the Project or to the Annual Project COib to be 1D&d.e In &Ccord Ince with or punuant to'lDY other prov!a1ol1 of* W. Contract. and. IUch other Powu Sales Contracb. ulw:h plyments may be Increued aDd e..dendad by re_1Oll of the lawanee of au.c:h.

additional BODd.s. and such addltlonal BOIlda .%Day be Issued in amounu luffJdeut to par the full &DlOWlt ot .ueh costs and lufficient to provide-such reserves &I may be nuombl, de-'

terminI<! b1 the Authority to be desirable. Any Inch &ddltlonal Bonda Issued in accordance with the provisiON of ~hIl Seetlon SOl and secured by asa{rnmmt of pa1l1ltnts to be made in IccardU1ce with the promions of this Sec:t1oa, may rank parr puau as to the leCuri~ af- .'

forded br thl proybloIlS of*th!I COl1tract and of aU other Power Sala Contracts between the Authority and the Participants reiaUnl' to the Project And to the Issuazu:e of Bonda therefor with all :Sonlls theretofore [s.ued purillant to and lecured in accordance with the provislotLs of thIs Contract.

Sed Ion 502. bs~&!lc, of Relnn.dInI' Bonds.

In the IYent the Annual Project Costa to the Putlcipanta of electdc power ana In_ZIY from the Praject may- be !'duced by the refundill' of any of the Bonds then outatandlftl or in the event it 1h.w;11 oti:le~e be advantareous, In the opInIon of the Authority, to refund an1 Boeds, the Authonty. may lSIue And leU te!undln, Bondi to be secured by uslrnment of the payments 18

to be made by the Participants purlUant to the provisions of Article ill of the Power Sales Conmcta. lncludlnl paymmts required. to be made uncier A:tlcle III of this Conttact. and 111 other payments attributable to the Project or to the Annual Project Cost:- to be made In aceOt' dance with or pwsuant to any other provision of this Contract and Nc:h other Power Sales Con~. Any such refundlnr Bonds issued in ac~rdanc:e with the provisions of thls. Seetlon and .

s.cured by aailnment ~f .IUCh paymentl may EaDk pm pusu u to the secuzity &!forded by the previsions of this Contract and of all other Power Sales CoDb'adI between the Authority and the Putic:ipanta rtlatinr to the Project Ind to the issuance of Bond. therefor with all boDds thereto

. fore !slued pursuant to and .cured In ac:c:ordance. with the proMon. of this Contract.

SectIon 50!. .AdjastmeJtt of .bnuarProjec:t Casll.

IZ1 the e'VeDt the procudl derived from the sale of any Borads lssued pursuant to the pro visions ot this Contract:. the ll ayment of which Is secured by usSpment of paymenta made purauant to the prorisiol1l o~ this Contract and of 111 other Power Salu Contrae:ta ~tweeD the Authoritr and the Parti¢~ants reJatinl to the Project and. to the lIsuanet of Banda there for. exceed th. arnepte amount required for thl pUZ'lIOIeI for whIch such Bondi wve ta "Sued. ~. amount of such uc:eu Ihall be uud to make up an,. ciefidenc,. then e."dstiq In

&D7 :fund or account under the Bond Resolution in Ule manner therein provided. and any baJuce shall be used to retire. by. purchase or c:a11 anel rec1emptlon,Bonda in &dV&Dce of maturltT. and ,in such &vent the Authority will reduce such element. of .Annual Profect COlts as are nec:essazy and ilppr~riate to i'ef1.ct luch accelerated retirement.

ARTICLE VI DEFAULT SecUon 60l. EYent at Default.

Fdlure of the Puticipaut to make to the A. uthority &n7 of; the payments for wlrlch pro vision. fa.made In Ws Contract shl.1J constitute a default on the put of the Participant.

SectlDn 602. Contuuilnr ObBraUou. Rfaht. to Discontinue Senice*.

In the event of I.D1lueb. ddat1lt, the Participant shall Dot be relieved of ita Uablllty for paymmt of the amounts in default, &Del the Authoriq- shall hav, the rlrht to recover from the Partfclpant UT aQl.ount in d~au1t. In eufo:cement of anT auch rfcht of recovlZ7. the Au.

tbcrity may brinl' aD1luit, action. or proceedInr in Jawor in equity, includina maDdam11l" and action for .pedf[c performanee u m&7 be D~usary or appropriate to eaforce UI1 COTeJ1U.t, qreement or obJiratfon to make aDy payment for which provision Is made in thil Contract lpinst tlle Part!dpaDt, anel the.Authority may. U1l0D IIxty daYI writteD notice to the Par ticipant, el&5' and discontinue providlnl' all or any portion of the Participant'. Bulk Power Supply,-

Seetlon 603. Le.". ot Tax tor PaymeDt.

. In the event of IUeh default by the PartlciplLJ1t, the ParUcipant shall provide for the u.

SlSlImellt and .collection of an anDual tax suffIcient in amount to provide funds annUally to iDak. aU P&1DIenu due under the prorlsloDi ot this Contract in eacb yur oVir the rema!ndu of the Uf. ~ Ws Contract and the AuthOrity_han haY! the rirht to briJIr &J1T mit, a.ctfOD. or proceedinr1D law or in equity. includin~ ma.ndamul and actlon for specifIc ~erform&Dce, to en.

force tll. assuslDent and coUectlou of a coJltinuiDl' direct annual tax UPOD aU the taxable properly within the bollDllaria of such Participant IUffldent In IJDOUDt to provide SUcA fW1d.s

&n.l1uall.7 111 aeh !eAr of the remainder of tll. life of ~ Contrl.Ct. .

19

Section 604. TraDsCe: of PaW&L* &Del Enera PursUlllt to De!IlIIt.

In the ."mt of a default by a Pllrtlcipant, the Authority shall transfer. on a pro rata basia ~ all other Particlpub which are Dot in default. the defaultiq PartSelpant'a Entitle ment Shue of the output ~d nrvicli ~ the Project which maU han bHll cUlContfnuc bJ reason of lOch d.taalt, and the pro rata portion at !m:h Entitlement Share at the def.ult.

~ Participant 10 trusferreci shan became & part of &!lei .haD be adeled to. the Entlt1emtzlt .

Shue of e-.ch. such tn.u!eree Participant, and tis. tramterH ParUdput ahall be obUrated to P&7 for if.. Entitlement Share. increaied as atorulid, u if the Entitlement Shan of* the transfer.. Participant. iDcn~ed as aforllaJd, had bien .tated oriaiDJUJ .. the ;Entitlement Share of the transfer.. PartJcipant in its Power Sales Contract witb the Authority. provided, howevlr, that U1 no IYmt 1ha.11 an,. tra1:l.lfer *of &JlJ' parl of a defaultlJ1r Partlclpmt's Entitle- .

ment Share reault: in &II. oblizatfoll of & tnmfuee Partidpant to bll1 output* IlDd .errica of the Proj act 1rom the Authority in excesa 01 fUtr patent oC the mOst ncently est&bUlhC mu.

imWD annual hOllrb' peak demand of s~ trlnsferee Participant and prodeled, further, that the obUptSon of the deflwtlnr Partlcipllnt to pay the Authoritr sllsll be rI~uc.d to the extent that parments mall be recel"ed by' the Authorlt, for that portion of the delaultlnlr P.artlc,fpct'. Entlt1emUlt Shan which may be trmslerrecl u donsald.

Section &OS. Other. De!a.ulL by ParU~pa.nt.

In the evant at .. failure of the Participant* to establlah, maiatalli, or coUecf: rates or aUi'M* &dlCluata to provide. revenue sufiic:!ent to eDahle tba ParUclpct to pay ..u amounts due to the Authoritr und~ thIs Contract: or in the nUlt 01

• fanun of the Partfcipant to take from the Authority its Bulk Power SIlJIPb' In, accordance with the provisfOl1S of tb!s

'Colltraet, or in the IYmt of any default b,. the Participant under Iny otAer COTetw1t, &11:"**

mint Ol' obUJlLtion of th1I Contnct, the Autboritr mlY brillJ auy suit. action, or proe:et:d!D.i' in l&w or in eqaitr, lnc1adiDl'. mandamus, hljUDl:tloll aDd action lor specific .performance.. III

. may 'be necusarT or appropriate to worce aDY covenant. arreement or obllrattoJ1 of thia COJ1tract qdnst the PuticlP&Di:. '

Sel:Uoa 60&. DefalZ1t b,. Authority.

In the event of an,r default by the Authority under any covenan~, apeRient or abUp:tloa of. this Contract, the Puticipant may brinK any Nit, action, or proeee~ in Jawor in equity, inc1ucUnl mandamlJ.l, iaJunction, and action for spec:iftc performance u may be necUSIIZY or Approprlate to tnIOl'Ct any coveDant. aereement. or obliption of* thIs Conlnct qalnst the Authority.

SecUOIl 601. Abanlfonme!2~ of Remeely.

In ,"ueaD)" proceedinl' t&ken,on &Ccount of IDY detlult sh.U have t-m discontinued or ab'Ddon~ 101' &rfT reason, the partiu to IUch proceec!lurs lhall .b1 restored to 'their former*

positions and rlrhb hereUDder, rupeetive]y, aDd all rlrbtl, nmedlll, powen, and. duties of the Aut1:lority and the' Partlcfpant ahaU continue u thourh 110 suds procetdfnrs had bleD taken.

.AliTICLE VD KISCELLANEOUS GENERAL PROVISIONS SecUon 101. Qaneter and ConUnuit.y of SvncL* .

Ca) The A.lltbority may temporarily b:l.turupt or reduce deliYeriu of elec:trl~ enUI7 to the P~riidpaDt if the A~hClritT detennJnll that IUch inturuptfon or o:ec!UCtfOD 11 necessary 1.n eu. of emerpnciea Or In order to inaUll eqwpmaDt In or zoalc. r.epain to Or replaeement.e.

20

InvuU,atioDl, md hispectioJII of or to perfonn otber maintenanCl ~ork on Ita rmeratloD or tranaw.sion fac11ftfu and related apparatulCs. Mter infot'Dlilir the Participant rlrardi11l

"&Dr ll1ch p1a:1ned.interruption or reduction, IinJlE the reuon thenfDr, aDd statinl the prob abla duratloll thereof, the Authority wID to the best of Itl a!lillty Ichedule such Interruptioll or reduetfon at .. time whIch w11I cau.e the leut Interference with the opentioDi of the Part!~~ta.

'. (b) The Authority "shl11nQt b. requlh4 to -provide, vr be ]fable lor fanlae to provl4e,

.*ervice UDder this Contract when such faUure o~ the cusatioD or. curtailment at or mter terence with the .eniee Is caused by Uncontrollable ForeH or, "I'ritb rupect to the aerrices to b. provided. for Supplennntal Bulk Powlr Supp11,lr caused by the failure or refusal of an1 othl:' balk power sgppller to lutU IIlto reuonable cO'l1traetl with the Authority or* b1 the ID&bfUty of the Authority to obtain an1 requl:ri rovermnentaI approvaIa to eD&ble the Au thority to acqu1r. or couUuct any laemUu.

Section ';02. Meterillr.'

Cal "The Authority resU'Ves the ril'bt to provide for installation of meters and will pro vide or W2J. to be pro'fided all necessary meter!1lr equipment for d.terminJnr the q,ulntit,'

and conditions of the lupply of electric power aDd Iller.,. dellvered by the Authority uDder tlda Contn.ct; provided however that the Partfdpallt may at Its own COlt instaD addItional materiDr ~uipment to provide a" check on that at th. Aathority. The PartJdpant.haIl wpply without cost to the Authorlty & suitable place for imtaJlhl, the Authority'l meterinr equIp..

ment. "

(b) II aDy meter used for bruin, faile to resister or Is found. to b. m&<<urate, the Au thority sball repair or repJace luch meter or C&Ula It to be repaired or replaced, cd au appropriate blllinr .ball be made to the Participant by the Authority ~ued upon the best

[DtonnatiOll avanabte for the period, not exceedinr sixty daTI, darinr which DO m.term,oc- .

cuned. AUT meter tuted ed found to be not. mere than two percent above or below Dormal allaJl be l:ol1SIdend accurate Inaofar as con-ecHon of bOlinp* is concerned. It, &I a result of

&I1Y telt, a meter Is found to reKister in excess of two percent above *01' 'beloW' Dormal, then the readinr of ~uch meter prevIously lakeD tor blUma' purposes shall, ba COlft;tec! for the

period duri~ which it Is establi.hed the meter was Inaccurate, but ~ correction shan be made tor any pence! beyond .!

rty day- prior to lb. date 011 which ~n 'lnaccurac1 ls discovered Dy sueh test.

(cJ In additioll to l)1ch testa as are deemed nel:ldl.t7 by tne Authorit1, th.* Aathorlty

.han han aJ17 meter telted- at any time upon wrltteli request: of the Par-tlclpant and, if 'loch meter proves accurate within two percent above'or below nonuaJ; the llXptDIe of such test sh~ be .borne.bl the Participant. " , - .

" (dJ The Authcritr shall natlf1 the 'Putfd~ant In advance II! the time of any me~ tui 10 that .. reprlleDtatlve of the Partldpant ma1 be pruent.

Section 703. POWI%' DeUTezies*.

Power and enerO' furnished to tha Pa.rtfclp&lit uDdllZ' ihi~ 'Cclltract ,hall be in

~f three phase current. altunatin. at a frequency of approximately 60 Hertz.

the form Section 10.(. LlabWtr of ParUu.

'Th. Authority and the Partidpant .haD assume fun responsIblllty and UabWty far'the maintenanet aDd operation ot theIr respective proptrUu and each shan Indemnify and .a:va harmle51 the other trom all JlabUit1 and expeD5I on aceount of anT and all damares, c:1al=-,

21

e* e*

or BC.tiOU, indudlnl injurr to ilr death of persona arisiZlJ !rom anr act or accident in COJ1 nection with tb. instanatfon, presence, maintenance and operation of the property aDd equip ment of thll indeam1fJinr pa:ty IDd JlCt eauled Sn whole or In part b1 the nerlflence of the other partJ; provided that an7 UabiUty which.!. Incurred by the Authoritr throuah the oper ation acd maintenance of the Profect md not covered, or not covered sufftdutl7, by Insur ance shaD be paId solely from thJ nvenu!I. of. the Authority, and aJI7 pymmtl rude b7 the Authority'to satisfy. BuchUabUit, shall become put of the Annual System Badlet.

Section 705. Other Tenu and Conditions. . .

Serrice hereunder .ball be lD &ccotC&DCI with such other terms and conaltioDi aa are utablfahed u part af the Authority'a .ernce rala aDd replaUODI, wlPch'shall npt be m consistent with the proviaioD!l of Ws Contract.

Sectlon 706. Assipmenl of Contn~

ta) This Cqntrac:t .haD inure to the beDefit of a.nd shaD be bi!id~ upo~ the reapedive succusors and asltpa of the parties to tAil Contract; provided, however. that exeept as pr0.

vided in Ule event o:t a default, and. except for the aasipment b1 the Authorib' authoriz~

hereby. neJther this Contract lIor l.Di IDterut herm ,shan be transferred or au1ped. by either party hereto exc.ept with the CODIent In 'Wrlt,lnl' of tli. other -parI:7 hereto, Fonded,

'however, that* such COllftnt shall not be withheld umeuoD&blT. No assipmet or trans!er of this Contrae.t shall relIeve the parties ~ &Dr obHl'atfon hereuDder.

(b) The Participaut ac1mawledlll and aanes that the Autlloritr ma1 u.il2l ad pIqe toO the Trl1Stee ad Co-Trustee des1snated in the :Bond 'RuohrtSon all its rirht, title, and In taut b:l and to aD P&11Uenta to be mad. to the Authortt7 under the prorislou Of ArticI.m qf this Contract aDd aU paJDleDts attn'butable to the Project or to the.AJmual Project,Coats to be mILd.. in accordance with or pursuant fD &DT oUler proTislon of this Coutract &I lecDri'tJ':

for ~. PQmeDt of the principal (includiDl' IbIlcmI fund in.staDments) al, aDd ptmI!um. it aDJ. and interest 011 aD the Bondi, and, uP!3J1 tha execution ~ such assipmat and pledlew suCl1 Tl'uatee shaD have aU rllhts and remediu henm pro'rided to thll Autharit7., and any referenc. herein to the Au"thoritr shall be 4eemed. with thellK81SUT ch&uI- in detaD, to include such Tru.tee wh!ch shall be a third party bene.ficluy of the c~venams and. .;rtf!

meDts of .tbe Partlcipl.Dt hereia ccmtalned.

Section 7D7. Term!natlon or AmeDUaat of Contract.

(a) This Contract .haJJ, not be tezmi:uted by either P&rtT under anT cirew:nituces.

whether bued upon the defAult of the other putJ under thia Contract or &D1 other matm ment or otherwise except as ap~ically provided in this Contract. ' ,.

'"Cb) ThJ. Contract shall not be mended, modified, or otherwise altered in CT' m'u'ner that will.adverael7 affect the seCUlity :rot' the BOD-cis afforded b7 the pro'risIoal o:f thfa CoD tract 1:0verill~ the pllrchu.e and. w. af power hereunder upon irhteh the 01nlUl from tfme to time of the B~I Ib&ll hay. re1fed u aft mducement to purchase and hold the BODdI. So lonr as any of the Bonda are oubtandin~ or WltiJ adequate provisions :f= the pqmct therIOt haTe bee made m accordance with the p~.lalona of the130nd Resolution, this Contraet shall Dot be &mended, modified.. or otherwfae altered in anT mUzzlZ' wbic.& will 'reduce the pa1 ments pIedred as aecaritJ for the Bo~ gr eXtend the tim. of such pa}'111eAta proTided 'here m or whfch will ill any manner impair or advenelT aI!ed; the rirhts of the O'WD&n ft:sm.

time to time of the Bond". .

(c) None of tlJe Power Sale Contneta'mar be amended as to IJ1T ane or more :P.rudpmts 22

e*

.0 u to pronda tennl I:od conditio'al diffuent from thoae berein contained except upon wiit teD. notice to aDd written ~DDSent or "aiver br eaeh of the other Pntfcipant:a, aDd upon dmiJu

.amendment bdnr made to tbe POWI%' Sales Contract of anr otbu Participant raquuUnS' such amendment after :.eeeipt 'brsuch Participant of notice of such amendment.

ARTICLE. 'VIII FU'l't1RE PROJECTS UNDERTAXE:N BY TBE AUTROIUTY SectfOa 801. 'Future Projects.

The Authority. mar from time to time coaduct ltudlu aDd D'rotiatiolUl with respee:tto planniDl', dedpinr. flnancinr. conatructiDl', admInisteriar, operatml'. ,aM JDaintamhll' or otherwise acquiriJll' future. renuatlon aDd trmsmiuioD facillti. or rirhts to the ouqmt thereof hi l.!ldi&D to ~Ol! contempJated* for the Project, aDd D:l&1 make recommmdatlou to the Participant that such futlne facilitiu be amdertakm by the Authority. If the Partldpmt wishes to particl1l&te In. and the Authority wishes to undertake aD)" iuch futun fac:illtlei. the Participant

. shall execu~. a contn~ tbtrelor '

with the.

Authorit1.

Section 80Z. Futur& ParlkIpaaits.

It is expresslr understood that Dothfnr h.~ein ah.a11 pnclude other :future plitlc:ipantl from contracunr with the Authorltr for planninr, procurml'. &J.li! providfDr IUch other fu.

ture participants' bll11c: power IUpp],.. fncludlDr participatlon in other projeetl underta~ by the Authority. '

SeetIon SOS.: Chanles In 'ExfauDr SEPA :Arra:D'!mIDf.!. "

~e Aathorlty mal necoUate bll!k POlrV supp})" arnnrementil with the Southeastuu .

Power AdmfDistr&tfo~ and the Gla:aia Power Com~ for churu in the currently a:fstlnl' contrada between the Partidpants and Southeaatem Power AdmhUstratioZl and betweezz Gear*

lia Power Company and Southeashrn Power Administration wldeb .chaar.' ara for the ex

.PJUlld parpOl~ of lawerial' the ~articipmb' overall 'bulk power .upply costa bl acqulsftfon bl the Partfc!pantaof their full lawful aDotments of Southea.stem Power.Admhdatration power. I:t luc:h &."q)rlISed PlI11IOS. iI ac:bi&Ye<! aDd the Authority wflhu to: aDc!erta.ke IUch arranrements, the Paztfcfpant %b&,. execute e caotraet therefor with the Authariti In. wbich .

the ParHdpant may auip Its allotment of Soutburtarn.Power Admlnirtratson power to the

• Authority for cleUverT br the Authority to the Participant. . . ..

Section 804. Other SEPA Arra.nrements. .

The Aathority mar nerotiate other bulle power supply arranremtnti' with the SoutlJeut ern Power AdnifDimatfon re1atlnr to other projectl of the Southeastern Power Aam1D1ltra tfan DO~ now incJuded. in the carn~tlY' ~It!n'r contracts betwHIL the Parlfcipanta and the Southeastern Power AcbniDistratiQn for acquIsition by tha Participa.nts of their :full J&wful allotment of IUch other projects. The Put:ldpant ma)" assil2l it! allotmmt of IUch other prQjeds to the Aathority fo~ deliY!r7 by the AuthorIty to the Partfcipan~"

~ect.fon 805. 'Allocation of Costs.

. Until the AuthorltT abaIl und~rtake a future project or until tM prov1l1olL1 of SectIon.

B03 or B04 berea! relatbll' to SErA ananrtments are Implemented, all operatilll' and main.

tenance costs related to the operatiD, acd conductlDl' of the bui!l11a1 of the Authority shaD be treated u. AlP1ual Project Coata and, upon the undertaJdDI' b:r the Authority of a future project. or upon Implementatfon of the provisions of Sections 808 or 804 hereof, the Authori.*

23*

tr shall allocate an appt'oprlate ahare of its admlnistrativ.a and rellen! e.-q,eJ1se to .~c1I. fatun project and lUck arrUiremmts under Section BOS and 8~

.AlLTICLE IX SEVERABILITY In case &Dr olle or mon of the pronsloDS of this Contract shaD for &DT ru.eoD be h.ld to be..illesrat or lnyaUd br a court: of competent Jl1l'Udic~DI1. it is tha intention of each of the partie! hereto that such iUel'aUtr or invalidity sbaU ~ot Iff~ &n1 oth.r provUlon ben

. of. but this Contract shall be coastned and enforced as If 50ch iJ1Ipl or mnl1d proYiliou had not been l:ODtSined herlin, and this Centrad shaD be l:Onstrued to adopt, 'but not to 1Il larl'e upon, all the appUcabl. PTovbloDi of lald Act. Izzd 1111 tAe appUc:abl4 -pr09bloDol cd the CcmStitution aad rlDual*laws of GeoraU. and. if an,. provialODS hereof eoDfBct "I'rith aD7 .

applicable provision of laid Conatltutioll. or*.lawa,the Jatter &I adopted- br the le;islature and as interpreted br tbe courtl of tbfa atate shaD prevail in lieu of IDI provision hereof 111 con fUe:t or Dot in harmony therewith. .

IN WITNESS ~REOF, the :Municipal ElectrIc Authority ot Geoml. has* caliled thia Contract to be executed in its corporate Dame by itl dul,. ~uthorized officers and. b7 the execution hereof i~ II ac:Jmowledl'ed that pa1D1lnta made Ullder thiI CoJitraet m&7 be usizued, as provided in Sec:tioa '106 (b) hereof. by the Authon'tr to the Truetee and Co-1natee to be deslpateclln &Dr Sllpplemet&J Bond Ruolutfon as securlt,. for the pyment of all Bonda at the Authority. as lit forth in said Section. 'J'06(b) hereof. and the Authority hal call1ed. ita

. corporate seal to be hereunto imprused and attutedi the l'artJdpaat baa caUl.a this Con tract to be executed in its corporate name by ita daly autbomed ciffictrl aDd. ltli *corporate leal to be hereunto impressed and attested. and delivery hWof br tlie AuthorftJ' to the Par ticipant Is herebr acknowtedred, aU u of the da)" and 7U%' first above :wri~eD. .

MUNICIPAL ELECTRIC AUTB:ORITY OF GEORGIA .

BY: : ..............*... ; .

CJUJ:IUlIAX

.A'l"r: ~ *..********.*******.

BY: ~ ~ _ '.

JUYDB

.An': ....................................................................

e.,* '

DESCRlPTION OJ' PROJ'ECl' Initial FaciUUes.

The'ln[tlaI faciltiu Df the P'roject 'shall be the loUcmnr:

L IDitW Eleebic GeDu.atioD and Related TrammtssiDn FacWtili Inclllded In The Project:.

(a) Plant Hatch.

, A IIVmteen and seven-tenths 'Percent undivided, interest in the t"o 807 MWe nominellr rated nudeR aenmtfn, units to be known u the Edwin I. Hatch NucJeu Unital Numben One' and Two, (individually ~esilMted u Hat.c.b Unit No. 1 and Hatch Unit N'O. 2 and cClUectl'ftly desip1lted .. Plant Hatch) to be located neu Baxley in ApplJn, County, aeorlla. indudlnc for such units (i) land delineated and described in tbe records of the Clerk of the Superior CoUrt.of Applin, County, Georpa. I.n Plat Book 8, pace 31, and in the n~ords of the Clerk at the Suplrior CoW't of Toomba Co'Wlty, GeotJi.. in Plat Book 11, Pile 84, and all land Ifebtl plJ'taJDinl thereto, (ii) the nuclear power reactors, the turbine-leJlmtors. ~e buil~inp b.oulin, the saene, tlie as~ted awdliJ:ri~ and eqUipment. and the related tranimlssion facilities all u more parti*

. c:ular!y clescdbed In Ule Application, and amendments thereto, by the Georlia Power Company

, before the Atomic EaerlY Commisl1on in Dodcet NOI. 50.821 and 50*366 and the bUmllwy Salety Analysts Report, and ..mendments thereto, which constituta a plrl at IUCh Applicatlon, (IB) inventories.!)! m&teriall, supplies, fuel, toollllld equipment for UN In cODDection with Plant Hdch, and (1.) the Plant Hatch lWlroad delineated and described in the records of ~be Clerk of the Supenor CoUrt at ~plinI County in Plat Book a. PlIes 36, ~7, and 38.

(b) PlUlt VoatJe.

A thirty percent Wldivided interllt In the two 1l50'MWe maximum rated nuclear lenentinl .

units to be known u the Alvin W. Vortle Nuclear UIl.1t1, Numbezs One and Two (SndMdually desfp1ated u Vollie Unit No.1 ..nd ValUe Unit No. 2 and coUectively cfalpted u Plant Vortle) to be located near Waynesboro In Burke County, Georglai includln, tor such units (l)

, l~d del1neated and described bJ Geo. Power Company Map FIle M*8-3, to be ftcoxded in ~

reco:rds of the Clark ot the SuperIor CouR of Burke County, Geoqia ..nd all land rlIhU perla!n.

in, theeto, (U) the nuclear power ructozs, the turbln..cene:aton, the buDdlnp boUIiDC the same, the Ulociated atWHarl.. a.nd equipment. and the related t:ra.nmdJslon fac:i11tfu an as more pari:icubrl,-: cWc:n"bed in Ul. AppUcation, and ameadmenb thereto, by th. Gecq!a Po,wer Com* ,

pm" before the AtomJc 'EnerlY CoTDmislfon In Docket NOL "50-424 and SO..,U5 and the Pr..

liminary Saf'ety Analysis Report, and amendments thereto, whfeh c:ona~tutel a pm CIt such Application, md (W) mventoriu of matariala. lupplies, fuel, tooll and equlpenentl far use In eODnectlon with Plant VOJtl., proYided. however, in the event lor any ieuon Bonds are not lUlled far that portion ot the Project designated u Plant Vo(t1e, the {acUities desc:rlbed. fA this subparqzaph (b) shaD Dot '?e a part of the Project.

(c) WorJdnr Capital.

. Warkinr Capital required b7 the Authodt7 durlnr CO~tructiOD of the Project and far

.the placiDf at the Project in operation. for providiDr Bulk Power Supply, 'fDeJudiDr Supple

~eDta1Bulk Power Supply, to all the Partldp&nb*.

25

II. lniUal TraDsmissiC?n :Fac:Dltles Ind.udell ID The ProJed.

Those tranJmlsalon facilities to be &cquired and COt1Itrueted b7 the Authorlt,- 4uriJil' the tim. prior to the Commerdal Operation Date of the lut ot the pI1lJ'&~ fadlltiu of the Project to b. completid Ja order to melt ita Uavutmat rupoDSlbDitJ dllrlq Reb time m connecti~ with. an1 asreement for &11 iutqrated trDsm1uiall QateaL to which the Au thority. IDIr be a pa.rtr !D aecordanc. 'with the prorlsioDi of SectiOJl 102 crt the Cwtraet.

Additional r~dllUes.

The "dditloaal fac!Utfes of the Project ehaD be those additioq aDd impt'Ovemmta to the electric IIDeratiOn and related tra1WDlJaioll lacilittu md to the tnlLSlDisllOD l7It1m fadUt1esl of the Project provided fer in dallJU (I). (n) and (iii) of Section 1D2 (I) Of the COntract.

SCHEDt1LE OF ENTITLEMENT SHARES.

1. PARTIClPANTS' ENTITLEMENT SlLUES OF THE OU'll'UT .AND SERVICES OF

'!HE GENijRATING FACIIJTIES (INCLUDING RELATED TRANSlSlSSlOlf FACILITIES)

INCLUDED IN THE PROlEO'r Th. Participants' °EntiUemmt Shares at the output and semea of tb. pneratlna' faci1i.

tie~ (Includin6 related transmls.ioD tacUitles) at the FroJe~ which Project lD.cludei .. Inen tem and sl'f'm-tentba percut undivided intuut in Pl&Dt Hatch aDd & Wrtr pe.n:eat llDd.lvldecl interest in Plant Vol(tla both of which are mort particalarly lIescn"btd In th.* Ducnptfon af Project. aDd of the aenices prm~.d by' the Autboritr in accordance with the prorislaDi ot:

'Sectlou 803 of the Contract, shall for each Participant be tho.. EntltlemlJLt ShUll ..t forth in tu foUowinr sehedule-: . 0 * * * .. *

• 0 * .'

EaUtJ.me.t Eatltlelllelit Enllt1elllnt JlIoitfat Shan A.ltu Slaan Alt.. Shan After nrst nw EatfU.. . .l SharD A.'......t Seen4I A.il..taal\~ . A.i.uta**t

r. fir "

.ACWOR'l'R 0.610 0.644 0,618 0.614 ADEL 1.'1:5 1.220 1.162 1.15'1:

.ALRANY 1(,151 12.C68 10.412 10.Od BAJlNE&VILLE 0.668 G.,U9 u2t 0.413 BLAKELY 0.951 0.969 0.836 0.809 TOWN OF BRINSON O.oos 0.OS5 0.033 0.083 ..

BUFORD . . 0.574 un 0.550 0.666 CAIRO .1.81B .1.680 i.801 1.Tl'Z CALHOUN* 2.256 0' 2.638 2.757 2.798 CAwJ,A, . 1.149 1.202 U04. 1.086 CARTUSVILLE 5.27'7 U76 5.197 6.173 .

COT.l.EGE PARK 5.804 U13 'U09 1'.659 COlQlERCE 0.'760 0.692 0.545 0.681 COVIl'fGTON' .' 2.15915 2.658 2.661 2.6'77 CIUSP COUNTY 2.6'8 3.155 8.369 s.no DOERUN 0.129 0.~6 0.119 0.118 DOUGLAS 2.395 2. 640 2.607 2.609 BAST POINT 7.662 6.662 7.IDl 6.976 EL!JE:R'rON 1.545 1.351 1.547 1.850 25

e; ELLAVILLE 0.2(7 0.268 G.298 0.806 .

FAIRBURN 0.5" 0.526 ,0.556 OoiN FI';t'ZGEltALD 2.329 2.769 2.895 2.182 FO~ 0.982 0.S19 0,967 0.I8B*

FORT v~y 1.647 . 1.616 1.662 1.514 GRANTVlLLE 0.090 0.089 0.088 0.082 GlUJTJN 3.600 8.080 2.954 2.182 HOGANSVILLE 0.331 0.808 0.296 0.214.

lACKSO~ G.542 0.517 0.'99 0.'95 LAFAYm'TE 1.639 1.618 1.604 1.1015 LA* GRANGE U80 8.839 8.802 8.198 LAWRENCEVILLE 1.527 1.809 2.082 2.148 lUNSFIELD 0.051 0.036 0.028 0.027 MAlUETI'A' 10.551 .11.619 12.44B 12.688 MONROE 1.508 1.422 .1.<<4 1.453 KONTIPELLq 0.367 0.884. 0.S9B 0.402 ltOULTlUE 2.989 2.985 8.0a1 8.051

~WNAN 1.609 1.&45 1.583 U96 NORCllOSS o.s8~ 0.783 0.820 0.84.1 PALKETIO 0.282 '0.297 0.323 0.329

. QlJlTMAN 0.147 0.765 0.652 0.630 S;ANDERSviLLE 0.887 0.818 0:178 . 0.775 SYLVANIA 1.157 2.689 . 3.04.Z 8.099 SYLVESTER 0.144 0.887 . 0.9S' O.9'1!

TROlrtASTON 1.299 1.211 1.216 .1.220 TROHAS'VILLE &.788 '-894. 4.409 4.332 WASHINGTON 1.018 0.994 1.OS9 1.052 WEST POINT 0.561 0.544. 0.444 O"Ui WHIGJLUf 0.086 0.109 0.121 0.124 TOTAL ' 100.000 *100.000 100.000 100.000 The lnitW Entitlement Share aet'fortli above ah&1l be the Eutitlemmt Shan for the _.

period commmdnr with' th'e Commudal Operation Date of Hatch UDit No. 1 and endirlr with the CommerdaJ OperatiOD DAte af Ratch Unit No.2 or Decmber 31, 1978, whichever 11 the earner. '. '

The EDtitlement Share After Fint Adjustme%lt shall be tb. EDtitlemut Share tor the perlod commenclDr with the COblmerdal OpVatiem Date of Hatch 'Ullit No.2 or laDaat7 1..

19'7.9, whichever 11 the urlSer, and eJldiDr with the CommercW Operation Dlte cst VcirtIe Unit No.1 or Dlcambu 81,1982, whichever Is the earlier.'

The EntitJ&DleDt Share Alter Second AdJustment shall be the Entitlement Shan for

. the period ~mmenc:lJlr with the Commercial Oplntion Date at VOatll UJl1t No.1 or lanuuy

~, 1983, whfchever fa the arller, aDd endlDr with the Commerdal Operation Dati of VOKtlI.

Unit. No.2 or December 8It 1988, whichever !I the earlier.

The EntitlemeDt Share After Third Adlustmant aball be' the EntitJemeat Share for the period co~menci~r with the Commercial Operation Date of VortIe Unit No. 2 or, Janu&r,T 1.

19841, whicl:lever 15 the earUer. and eDltinr with th~ last day of the tum af the Contract:

27

provided however. th&t iD the event Plant Vostle is not CDDstnll:ted. the EatitlemtDt Sh~ .After

.Secolld Adjustment &ad the EntitlemlDt Sbar. After Third Ad,furbueat shill DDt be aPIIUcable.

&ftc! the ElltitIlment ShIre ,Alter PUst AdJUstment shaD apply for tb. pcio~ colZllUllCfnlwith the Commercial Opcat1on"Date of Hatch Vuit No.2 or .Jill"" 1, 19'79, whlcbnv II the **lier, and. endinl with the 1at day ~f the ten:ia of the Contract; d provided. ~Ir th&t the Authority, in ICCOrdmce with -the "ptgvisiolll of Section 311 of the Cont:aet, will ae1l the output and suvlces of such ~Wfed Interat. III Plant Hatch and Plmt Volt1t to Gtoqia Power Company. in accor~1 with the foBowin, schedu1u:

Ca) Hatch Unit No. 1 aDd RaUb. Unit No. 2.

'I'hat portion vf the Power Supply Year lhmainiDl' After the Commercla1 Operation.

Date of a Unit of the Project 60.0" First Full Power Supply Year FollowlDr Coasmerdal Open.tion Date 60.0" SleoM Fun Power Supply Year FollowiDl' Commudal Operation Date 87.15"

'l'hircl FuII Power .SupP17 Yur

. Followinr Commercial Opuation Da~ 87.5" Fourth Full Power Supplt Yur FoUowiDl' CommerdaI Operation Date 25.0" FtfUlFQl1 Power SllppIT Year FoIiowinr Cammerdal Operation Date. 25.0" Sixth Full Power SupPlY Yur FolloNr COmmerdal Operation Date lUi" Seventh Full Power SlippIT Year Fol1owi:r CommereIal Operatloll Date .

28

(b) VoltJe UJdt No.1 and Vostle UJlit No.2.

That Portion of th. Power Supply Year

. RemabUDI' After the Commercia' Operation Date of a UJiIt of the Project YuitFuD power SuppJy Yu.t Fo11owiQ Commercial Opention Date &0.o" Second Full Power Sapp!r Year Followfnr Commercial Operation Date Third Full power SIJllPly Year Fo11o'VVfDI COmm~cial ~tlon Date Fourth Fun Power SIIPPlrYear Fo1lowiDI' Cammerclll Opentlon Date 25.07'0 Fifth i'all POWif' supply Yar Follo~Commercial OperatiOD Date Sixth Full PoYer Supply Year Fo11owiDI' eommerdal Opention Date 12.6" SeveDth Full Power Supply Year Fo1loWiliI' Commerclal Operation Dati " .12.6 '"

Provided. however that tor the purpose of determinfnl' the perctJ1tap ~ output &z:u1 * .mea:

to be laId to Geora'ia Power CompallY, tha Firat Full power Supply Year. F~cnrhll' Cammer dal Operation Date, with rapect to VoKtJe UDit No.1 .baJ1 b. DO later th&n thi ca1endU year 1984 aDd with respect to Voa'tJe UDJt No.2 .hall be nO later thaD. the calendar year 198e.

the pelcenta~1! of output ud lerrica ta be sold (when lueh output aM aernca are avaIlable

-=

for aach sale) shan be taken tram the foreloml schedule fot" tbe appropriate yur 'baaed upon th. coDelllllve Pll!5DZZlpHoD that the ComiDuc:b1 OperaUcuz Date of VOIt1e UDit No.1 is DO later than th_ yt:U 19B! ud that th.- Commudal Operation Dat. of Vostle UDft No. a is no lAter thu the yeu 1984. and provided, further, that the amount of such capacity sold to Gear.* .

ria Power CompaDy.baJJ not exe." 2&" of the A.uthoritT. ownership lhue of the el.p&dty of VoKtie Unib Nos. 1 Ina 2" over tbe useful Ute of IUch mdta. .

It it anderstood that there shall not be aD)' reduction m EDtitlem~t Shari. of the Par.

tidpants u & result of lOch aales of output and aerrices to Gt;orria Pcnrv Compan7' aDd uell ParticiPlU1t aha11 remam liable for Jts full Entitlement Shan except .a~ l1abD1t,' lhall be diadwrpd to ~e utent the Authority lICGV. pa11D_nt fmm Georpa Pawu Compaz17. " .

II. PARTICIPANTS* ENTITLEMENT SHARES OF SEll.VICES.QF TRANSMISSION SYS'I'Et'd FAC.l1JTIES INCLUDED IN THE lROJEC'r.

. Th. pa:tidpants' Entitlement Sharu of ~cu of 'n-aminbaion S)'Item FacDiti** included In the ProJect" &hall be detennlnecl by the, AutbodtJ' dUlinK ac:h Power Supply Yur In ae~or*

dance with the provision. of Section S08 at the Cantnct. .

29

POWER SALES CONTRAor BetweeD MUNICIPAL ELECTRIC. AUTHORITY OF GEORGIA THE UNDERSIGNED PARTICIPANT

'IbiI ~dment af Contlact, made Ind' entered into U ot l4azcb 1, 1976. by and between the MwW:ipll ~.ctri~ Authority of GeQrIS&. & pubUc body corporate and poRtlc: md

• public:

corporatfoc of the State of GeoZJ!a, herelDafttr lomeba duipted u the Authori't1. creatH by the p:ovfsicml of I GL L 1975. p. 107, U &mended. and the undmlped pol1tlca1lUbdiYiaioD of the State of a.orlia. hereinafter IOmetima duipated u the ?Iltldpmt.

WITNESSETH THAT:

BE it remembeRd that

• Power Sales Con1nct dated as of October 1, 19'75, bu been FnioUl1Jr executed by md between the Authority and the Putlc:iplDt. md WHEREAS. the parties desire to amead &aid Contract.1D cUtaln respedf.

NOW THEREFORE: .'

For aDd ~ coruideratioc of the preues and the mutual co'YeDmta i.nd apeemeets herein*

after let forth, it is qreed by and beiw:een the partS.. hento u follow.: , .,

",Section 1. ~ Pawer Sales ~ODtraet sball be dated u of Much 1, 1976.

. Sectlon 2. Section 1Q2 (1) (8) '01 u1d Centzact ill dl1eted fa ill entirety and th. foUowing new Sectioa 102 (1) (3) ilsubstituted in li~u thereor~

"(3) acqufJition cf initial fuel or fuel inventory for any lenlBUol1 lacUity of the Project and Warkin, capital md ruerva therefor and wOtkin, capital and reselYa for moad. futl and addi tional fuel inYentories."

.Se~tiOD S~ Secti.OI1,l02 (a) of uJd Contract is &mended. 'bY dtl.e~1 the WOM "Outpu.t" in the foUJth !IDa therea!. .

Secticm 4. Section 102 (0) of laid Contract is deleted in its entlJety md the followiDI Dew Sectica 102 (0) is substituted In lieu thereof:

"(0) 'Fuel COlts'.hall mean all costa incuned by the Authority durinl any Power Supply Year tbat VI allocable to the &cquisition. proceaiDlo fabricatioD. tnnIport&tlOll. del1verinl.

reproceainl. Itoraae, and dlapoal of nuclear =alan. md of louD. mat.uiaJI nquirec! for an7 of the lenen~OQ fadliti. 01 the Project. fndudfnl transfen to reserva lltabUshed 137, the AutbC?ri*

1

e.

ty for sUch casts rl!lated to futUrl Power Supply y~, lea aedita related to such costs appned as appropriate in the dilaltion of thl Authority, '. . ,

Section 5. Section 102 (I) of silid Contrac:~ is deleted in its Inth'ety and the [oUowinc new SectioD 102 (I) is Iubstituted in lieu thereof:

"(I) 'Project' aha11 mean tbose elec:tric reneration and relawd tnnsmislion facilitiel wbic:h are ldentif1ed in the Description of Project and thOle tnnsmillion IJltem faci1ltl.. to which reference is made In the*Dac:rlption of Project to be Icq,uited and constructed by the Authorlty durinl the tim~ prior to the Commerc:iaJ O~.tion Date of the lui of the lenentinl facUlties of the Project to be completed in order to meet the Avtbonty'. investmeot responJibility durinl

.uch time in connec:t1on with m1 altument for an intecrated tzaI\Imfulon syltem to wh.ich the Authority may be a perlJ in accordance with Ute provisionl of Section 302 hereof, tolether with (1) my major reneWl.1l, replacements,' repairs. addltiona, bettermenb ed improvlments Deep.

lezy, in the opinion of the ConrulUnI EDllneu, to keep the Project In lood operatiDI condition or to pRvent a 1011 of revenue therebom., (ll) &111 major addition&, Improvemmb, repairs an~

modif"atlonl ~ the Project and any decommiSitoninp or dtsp,osaJI of the Project. requh:ed by I.ny IOVmlmlntal qency.bavin, jurildictiOD over the Project or for which thl Authority iball be responsl'b1e by virtuI of any oblilation of the Authority winl out of my contDct to which the Autholity IDlY be a puty relatin, to ownmhip of the Project or any lac:fUty thereof. and (Iii) worJdnl capital req,uJred by the Authority durinl conlt:uc:tion of the Project and for the. pladnc of the Project in. OperatiOl1 for proYidinl Bulk Power Supply, includin, Supplemental Bulk Powe:

Supply, to the Participanl" .

Sec:tlOD 6. Section 401 of said Con!:Zact Is delited In its entiretY and the 10Uowini nlW Secbon.'4011s lU~tuted In 1i1~*thueof: .

"Section 401, Tbe Authority wiD. provide or ClUSI to be provided to the ~cipant ita Suppllmeatal Bulle Power Supply durinr each month of each Power Supply Yar. Such SUppI.~ '.

mental BulJc Power Supply may Include. but shall DOt be l1mlted to. putfal and fun requirlment.

power purchues md unit POWa' lervice. lene:ratfDI capldty ruerve ,ervice, firm and nonfirm capacity LDd eneIIY limiCe. tran.mission semce (includin, t:n.nsmlsalon umce purcbued by the Authority to lupplement the Participant" Entltlemmt Share of tnnsmiaiC?n IUVices provided by, the Autboz:ity from those ttann:niufon ayltems tacflltles included in the Project) and othu interehaap service made *..nable u & ruult of l:ransactfona with other utWti** '!'he casta to the Autbodt., of .electric power and eDlrlY purchased by the Authority from Ot1\tr utDltlu bued upon tariffs toed by IUch other utilities with the Federal Power Commfuion will be dfnc:tJy

reflected In the monthly BlD.inc Statement to the Putlcipant. Such monthly BilUnI Statement will include a credit tor Nc:h delivery point transmission facilities u are owned. tmmced, or operated by the Participant. II Section 7. Sect.ion '501 (b) of said CoDtr~ct is deleted in iti entirety and the foUom' nlw Section SO-l (b) illUt:.tituted in lieu thereof: .

"(b) Additional Bonds may be .old and tlsued by the Authority in accordance with the provisions of the Bond Ruolution at any time and from time to time hdhe event fundi are req,uired to ~ ~ cost of (i) any maior renewals. replacements, repairs. addition., betterments, or ~provements, to the Project neeeuary, in the opinion iJf the Consultin, Enlinnr. to keep-.the Project fa. ,ood opcraq con.dltion or to prevent a Jou of raVeJ1ues thentroJD, (li) an, major addition.. Impro~ents, rep&lrl. or modifications to the Project, qr aDy d.commlssionlnp or dllpoaals 01 the .Pro]ec:t,. reilufred by any ,ovetnmental ..eney havinl juriadlction over the ProJed 2

/..~!)!::..~ ~':::':~~")r-:' ' ":':-' . ""'**e,,.. ,'",' . :. . . ~.,,:.I ..:. "

or tor which the Authority shan be ncpon.sible by virtue of any obJiption of the Authority ariain.S out ot an)" .contract. to which the Authority may be a pazty relatlns to own"enh1p at \~

Project or ~)'" facility thereof, or (iJi) reload fuel or additional fuel inventory for any sener.tion fac:Dit" of. the Project In any Power Supply YeN" to the ex~nt that suflic~nt funds are Dot, availabM m any reserve established by the Authority for Fuel Costs; provided however, that no such additionlll Bondi may be ~ued tor the purpose of otidlns addltlonl1llneratins units the to

~~ . ' . '

Section 8. Sectioa 501 (c) is C:!eJeted in the its entirety. and Section 501 (d) is renumbered Section, 601 (e). .

Section 9. ne .,ttachment to' aid Contract entitled "Description of Project" ,ud "Schedule of EntitJe=ent Sharutt C!onliltlnl of Iive pace. is deletad In ita en~ty md the

~ptiOD of Project and Schedule of Entitlement Share. attached huelo Ia lU~tituted in Un theieoL SecdOD 10. Said Contraet shall remain in fuB force and ~rect except u her~ln amended.

IN WInlESS WHEREOF, The Munic:ipaJ Electric Authority of Gearcia ud the P"l.I'tlcipant have' QUIte! this AJIIend~.D' of Contract to b. execu~ in 'their COrpOAte nemes b, their dul.7 day and ,tV authorized offtcm ind tbl!r corporate .ea1I to be hereunto tmpreued and atteltld, all U ot the .

&n .boYe written. . .

. a,,:: :" .

~ ......

BY:

. :-YOR °0 ~.. ,

A'M':~ **** ~! ****

U CLlU*

THIS PAGE INTSNTIONAtLY LD"l' BL.ANlL

DFSCfUPTION OF PROJECT lDltial Facilities.

The initial !i.ciliUet of the Project snail be the foDowing:

,I. Initial ~edrlc ~enmuon and Related Tnnsmiuion 'adlitieslnclu~In 'l'he Project.

(a) Plant Hatch.

A seventeen and seven*tentbl percent undivided inter~st m the twa. 807 Oe nomlnally rated nuel.ax ienera1in1 units to be known u the Edwin 1. Hatch. Nuclear Units, Numben ODe and Two, (individually deA(11ated u H&teb Unit No. 1 and Hateh Unit No. Z and coUeet!vely desipted as Plant Batch) to be located. neu BaxJ.y in Applinl COlmty, GeortJa. lDdudinl for

.uch units (1) lane! delIDeated and clelcribeci in the recordl of tile auk of the Superio~ Com of Applinl County, a.arP. in Plat Book 8. pap 36, and in the records of the ~k of the St1~or Court of Taambl County, Gecqia, in Pkt Book 11, pqe 84, md an land rilhtl pez:b!nilll th-reto, (li) the nudeat power reactan, the turbine-generatoD, the buildlnp hol&llnl the WIle, an the associated aui1iarils IDd equipment. ud the reJ&tad traDsmitlion fadIltil. u mota puti cuIuly described in the AppUcatiOt1, aDd amendments thueto, by the Oeoqla Power Compmy before the Atomic Eaaqy Commilaion in Docket Nos. 50*321 md 60-88$ and the Pre1iminlry Safety .Analy" Report, .md amendmmts thereto, which coUltituta a put of NCb AppUcatlon, em) lnventorleJ of materiala, IUppliel, fuel, toell anclequfpment for UII'1n cODDectlan with Plmt Hatch, and (ho) tu PWat Hdch llailzgad deUnated aDd desc::ibed in the re.cordl of tlte C1erk*af the Supuior Court of Applini ~unty in ?tat. Book 8, Plies 36, 37, and 38; provided. ho'ftYer, the Authority .ball hat'e the dlbt IU1d power to ,.U to any oDe or mon of the paUtica15ubdm

• .lonl lilted In the follo'lrin& Sl;1ledu1e of Entitlement ShiuP which ahaI1 nat IXeCl1te & Power .

S'" Conmct ,with the Authotity IUch portlan of its undhidect intense in Pllnt H&tc;h ... the Authozity .hall be JawfuIl,y obJipted b1 virture of Iny eontrictull abliptlon of the Authotity to

.eD to IUCh politicallUbdlvisio~ to satisfy the UceDH cOD~tiani pertaiDJnr to Plant Hatch.

(b) Plant VoJ\le*

.A IlYenteeD .and seven-tentba percent undivided interest in the twa'1150 MWe awdm~

rated nuclear lenezat:inr unia to be knO'WD u the Al'Yin W. Vo(t1e ~udev Unita. Numben One and Twa, (individ\1llly desipatC u Voltl. Unit No.1 md *ValtJe UnR No.2 md caDedtvely desiauated .. Plant Vo~) to 'be located n.ax Wayn.boro ill Burke CountJ'. Gtor~ iDc:lud1q for Ncb unltl (I) lind deJmeated and dac:ribN in Geollia Power .Campu, Map m. M-I-U dated March 15. 1976, to be zecazded In the rtco!dJ af the Cerk of the Superior Court of B~ke County, Gear. . and aD land rlIhtl putalnJol thereto, (il) the DUc:leu pcwer reactan, the tUlbin.ieneratom, the buildlDp hoUIfDI ~. ume, the usoeia:ted awdlfari. and equipment, and the related tranIm1IIion iaci1itie. all ,u mon particularly des=ibed !no the App1iCatlo~ and amendmentt thue&o, by the GeozPa PoWer CamplAY before tbi Atomic 1mtri7 Canmdsaloil q.'

Docket NOlo 5~.o24 ud 60-428 and the PreUmfiwy Safetr Ana1J1is .R.iport, IDd amendments thereto, which constitutes I put of such AppUcdian, and (ill) iaventodel of mataria1a~ IUppU**

fuel, tools and eqmpmentl for UII in connection with Plant VortI-, proridld. haw.... in the event °for any reuaa Bonds ue nat iAued for thai porttou of the ProJ.d dailnated u Plant VoatJe, the tacWf:i... descnbed in thia IUbparallaph (b) shill not be a pan of the ~ject.

(e) Plant WansLey.

A un percent undMd,d interest in tn, ~",o 866 MW noDuaany rated ~oal-fJred leneratinl 15

uaits ~ be knowa

• tha Hal WanSJey Ste;am Plant Uni~, Numbers On. and Two, (indlvJdually delifDatad u Wansley Unit No. 1 and Wansley Unit No.2 and collectively dellenatee! u Plant WlInIle,.) to" be located

Dear Ceatralb&tcbe. b1 Heard and Cmo.n Counties,

Geoqia. lnc:ludhil for such UDits (i) lind* delineated end duaibed in GeoIlia POWlt Compan,. Map- ru. It-Sol dated June 5. 1972. to be RCQtded in the tfcorda of the Clerks of Superior Courts of Eeli'd md Caroll Countlel, Gtortiao and al11and riPb pertabilnl ~ereto, eii) the tu:bin....lDlRtaI'I, the boUcp,

• 'the buildinp hOUliq the ume, the .tack, the eooUnc fadlit1a, the Ulociated .uxman. and equipment. and the related tranl~on facflltfu aU u mOle particuJan7 delCribecrm ~ en;'

wonmant&1lmpact It.lament reIatinl to Plant Wansley, aDd (fil) inYentorlu of materia1li, IU~

plii.. fUel. tools and equipment for UIa in connec:ticm with Plant W~lI,., provid.d,.~wevE', In the event for m1 zellOn Bondi ue not iaued tor that portion of the Project dellanated .. Plant

• Wansle,., the fdUes de.cribed in th1a subpuqrapb (c) sblll not be a parl of the Ptoled:

(d) Plant SCherer.

A ten paclnt* undivided interut in the four 810 MW nominally rated coal-fired ,muatin, units to be mown u the Robert W. Scherer Steam Plant Units, Numbm ODe, Two, Thtee, and Four, (lndlviduallr dllflnated u $charer Unit No.1, Seherer UDft No.2, Scherer Unit ~o. 8! md Scherer Unit No. 4 and coUective}y duilnded u Plant Scherer) to be located neu Fonyth in Momoe County. Geott1&. inc:1udm, far such units (i) Jand deJinaated end desc:rlbed in Geoqia Po"er Company Map me N*85-9 dated December 19~ 1974, c:ontaiDinl approxlmaa1y twenty liven huodred acres, to~er with Nch addiUonal land of approximately ten thouund acre.

m acquired or to be acquired fo~ use In connec:t:lon with Plant Scherer, to be reeolded the reeord.

of the Clerk of Superior Court of Monroe CoWlty, Georp. md aU land rlIhtl perta1aiD,'ther:eto, (til the turbfDe-pnerlton. the boilers, the buaewip housint the ame. the mcb, the coolln, facilities. tQe' Ulociated .auxfliarl. and equipment, IDd the related triDltDiuton :fadlltia an- u

• IDOra patlcululy described In the CDWonmental impact ltatemen.t ralalin, to Plant Scbuv,: md (m) jnyentGm. of mataiall, Npplia, fuel, too.la and equipm-nt for use hi CCDDectloD with 1'1ar1t Sclierer, provided. b~'Wever, in the ..lIlt for an,. rauon !oDds' an not blued for that ROrlion of the ProJect desipted u PSant ~er, the facilities" descnDed in tti1I subparqraph (d) .1W1 Dot be a part of tbe ProJec:t.; ' . . .. .

eel .Workiq C&pitaL WorkiDr tApltil required by the Authority durin( coaatruc:tion oUhl Project and for the placinl of the ProJ~ in operation for proYidhtI Bulk Power Supply, incNc:Un1 Supp1ementll Bulk Power Supply, to all tbe PartIcipants.

n. Initial Tnnamiaioa Facilities Included In The PrOject.

ThOM transm.fssion f~tfes to be* acquired and* eonstNcted by the Authority dUIiq the

. time pQar to the Commerdil OperattClD Data of the Iait of the ,eneratlnl flciUti. of the Project .

to be compJeted in order to meet ita lnvertment nlpOAlibility dwiD' IUch time mCOllDlCtlon with any qree IDlllt tar an inte Entad tnnsmilliCln I)'stelll to which the Autbarlty ma,. be a party in accordmc:;e with tae prorilfonJ of See~on 302 of the ContZ'aet.

AddftloDal facilities.,

The additioDIJ ~at:ilitia of th.e Project .hall be thell addltiot1l and improvemeau to the electric IlDeratioD.lnd re1l,ted trlnlm.iuion faci1itlu "and to the tr:anlliUaiion I)'Item fac:illtle. of the PrClject proYided tor In claUIeI (i). and (if) of Section 102(1) of the Contract.

6

SCHEDULE 0F ENTlTLENENT ~

1. PARTICIPANTS' ENTITLEMENT SHARES OF THE OUTPUT AND SERVIC~ OF THE GENEtlATING FACILITIES (INCLUDING RELATED TRANSMISSION FACILITIES)

INCLUDED IN THE PRQJECT .

The Partic:ipanb' Entitlement Shares of the output and services of the leneratln, fac:ilitin

(.incluctinl relatld tranlmisdon fadlitla) of the Project, and of the urv1c:a provided by the Authority in accordance with the provmona of' Section 308 of the Contract, shaD for each Part.icipmt be thOle Entitlement Shares let forth in the foUowWlscbedule; provided, however.

'~ that In no eyen~ aha1l the Entitlement .!wa of any Plrticipmt be lesa than that let fanh in ~e followinl schedule and szovided, further, tb8t In the ennt anyone or more of the poUtfcsl subdivision_ listed In the fonowin( schedule shall not IXecute a Power Sal. Contract with the Authority', the En~mlnt Sharls of the remaininr Paztlcipants, u such EnUt1.ement &bus are let forth iD each coluDUI of the fo ll~inlsc:hedu1e,may be inc:reuecl pro rata by an amount not exceedln, rI1teen percent of such Entitlement Sharel In order that the IWD of the r*emaininl Entitlement ShaI'es in .each of the followinC co~umns "hen 10 .d~usted .ball totallOO~OOO~:

Batltle* *t .utJ....t Eatld__t 11IJtI&l Shan A.ltar 81aarw Attar Slan A.ttv s....

Parllclll ut EDtkl. . .t Slar.

Flnt A.!lluballit A.'a..... t

'l"kW Ai,uca_t ACWORTH ADEL 0.610 1.418 0.644 1.220 0.618 1.162

~

0.614 1.1Ii7 ALBANY . 14.111 12.C68 . 10.412 10.048

BARNESVlLLE. .0.8a8 0.469 0.422 OAD

BLAKELY 0.981 0.969 0.836 0.809 TOWN OF BlUNSON 0.085 .O.GSS 0.088 0.083

BUFORD 0.674 0.&&1 00680 0.568 CAIRO 1.818 1.680 1.10'1 1.m CALHOUN 2.266 2.638 '2.717 2.798 CAMILLA Uti 1.202 1.104 1.086 CA:R.TERSVILLE 5211 15.S76 6.191 6.178 COLLBGE PA.RX loBO. U78 7.409 '1.611 CO.MMERCB 0.760 0.&&2 0."& 0.687 COVINGTON 2.595 2.868 2.66'1 2.111'1 CRISP COUNTY 2.648 8.11S5 8.869 8.410 DOERUN 0:129 0.128 0.119 0.118 DOUGLAS 2.306 2.640 2.60'1* 2.609

!WiT 'POINT *7.&62 * &.6&2 7.101 6.976 E1JlERTON 1.545 l.361 1.847 1.880

. ELLAVILLE 1).24'1 0.268 0.298 O.so6 FAmBURN 0.64' . 0.526 0.556 O.~

F;tTZGERALD 2.829 2.'169. 2.896 2.9&2 FORSYTH 0.182 0.8'19 0.961 0.988 FORT V.ALLEY 1.647 '1.616 1.562. 1.554 G1UNTVILLE *0.090 0.b89 0.088 0.082 G1UFFIN 8.600 8.080 2.9Ci' 2.982 HOGANSVILLE 0.S31 O.JOB 0.296 0.294 7

O.w 0.61'l 0.499 0.496

• 1ACXSON LAFAYETTE 1.639 1.618 1.604 1.605

.LA. GRANGE 4JSO SJl39 SJOZ 8.198 LAWRENCEVILLE 1.527 1.809 2.082 2.1" MANSFIELD 0.0111 0.036 om O.OZ'1 M.AlUE'ITA JO.5Bl 1Ui19 12.<<8 12.681 MONROE 1.508 .1.422 1.4<< 1.4P 140N'I'lCELLO . 0.387 0.884 0.898 0.402 MOULTlUE 2.989 2.986 LOS1 S.GEl NEWNAN .1.609 1.645 1.583 1.698 NORcRoss cuss 0.783 0.820 0,841 PALMETrO 0.282 0.29'1 o.32S 0.829 QUITKAN 0.747 0.785 0.652 0.680

• SANDEllSVlLLE . 0.887 *0.818 0.778 0.1115

, SYLVANlA 1.757 2.639 S.D42 8.099 SYLVESTER 0.944 0.887 0.954 0.973 TBOKASTON 1.299 1.217 1.216 . 1.220 TBOKASVILLE '6.788 4.894 .4.409 4.882 WASHINGTON 1.018 0.990& . i.08S 1*982 WEST POlNT 0.1561 0.544 0.444 0.424 WHIGHAM 0.088 0.109 0.121 0.],24 TOTAL 100.000 100.000 100.000 100.000 The Initial EDtitlement Shue let forth &bOYe ahall be the Entttiement Sbarafor the period c:omm.ndns with the Coauuerdal Operation Date of Hatch Unit-No.1 and cndfDl December 8l.

1978.

'!'be Entitlement Share Alter FlrIt AdjUitment aball be the Entitlemint Share for the period c:ommenc:inrJanua,ry 1, 1979, and en~ December 31.1982. .

period commmcini ~muuy 1.1988, and .dIn,

'lb., Eatitleznent Sbne :After Second AdjultD:lent shall be the Entitle=mt "Share for the December 81.1983.

ne Entitlement Shue .After Thin! Adjustment IbaD be th.* EDtitlement Share for the paiod cOmn1mcln, Januazy 1. 1984. and endm, wff;btbe Jut dar of, the tena of the.Contract.

'lbe Authodty,* in accordance with the praYislOni Clf Stetlon 811 of the Qmtnct, wm leU a portieD ot th.. output anc1'~.. of luch undivided intuelb in Plant Hatch. Plct Voltler P1aDt .

WanallY. ind Plaut Schezv to Gtorp. Power COmplU11 ID IccoNance with lb. foUO'\IrinJ ac::beduI&:

,8

1'1*

• Sip' Teu Th&t portSon of the Power S\JPP11 Year .

Rem~D!ni After the CommerdaJ Operation D&ta of & Uait of the Proj~ 60.0'"

Firn FaD *Power SUPP!r- Yur FoUcnnnr CciIlllXlUdal Opera~OD Date 150.0" Second :run Pow~ Supply Yeat P'oJ1owin1' eommerdal Opl1'l.tiOJl Data Thhc1 Full Pawer Sapply Yar FoIlowiDr Commerda1 Opca~on Date 87.*&"

Fourth FW1 Power Supp]7 Year Fa~w!Da- Cam;mtrdal Opera~'Date 26.0" FIfth Full PtlWllr S\lppl7 Year FoUow. Com m erda1 Operatkm Dl.t1I - .25.0" Sixth Full Power Suppa Year FoBcnriJIc CGmmerdaI Operation Date Sneth FI1U POWIl" Supplr Yur ll'aBowina' Commercial OpentiolL Date There ~baU Dot be InY %eduction in "Entitlement Sham of the Puttdp~ta u

• xault of .uch.'

I&Ia af output IDd aervfca to Oecq:ia Power Compmy and each Putlclpant .halll'llDl!n Dable for Its %\aU Entltlammt Sbce except sucb liabi1ity Ihall be dilcbUlicJ to the UieDt the Authority receivu pa,yment from Geoflia Power ComPlll7.

U. PARTICIPANTS' ENTITLEMENT SHARES OF SERVICES OF TRANSMISSION SYSTEM PACILITIES INCLUDED IN TaB PROJE;CT.

The hrtlcipnu' EntItltment Shares of Semce of'1'1uamlaion Syltua PadJitles included

. in tM Project Iha1l be dttlrmmed by the AutboJity duzinl each Power Supply Year in ac cordance with the provflfou of Stctfcm 308 of the Contrld 9

v ** 1 I". ,:,:

POWER SALES CONTRACT

.M\J~lCJP~J. ELECTRJC .\lITJiORln* OP GEORCIA lAd

'THE UNO£RSIC~EDPARnCIPA~'T

.This Se:tUnc1 Nnc:nclmet,( uf C~ntr&~. m:1clc: :1nd rntcrcd inta III vf ~I:l~' !S. 1llii. b)' I1Dd b"ot\\"L~ft tM

~lun'cfpo1 E1cctri~ .'uthorlry of Cl!Or,L,\ I public hod)* COrIKlfllLP and JXlIIUc :and I publiC'. eurptJraUon of the State of C-=ur;b, h""dnaJ't\*, some lime. de~l;lIIiMI as lhc: .,,,thtlrit}*, crc:aled.by the pro\islulU of I Ca.

"r 1_ 19i5, p. ICh, 01 amc.'Ildr:d. Illd tbe undl'rsl;nrc1 J'IlIlillell1 .ubdM.iun tile Statl' nI Cmrltl:L. ]u:rrinAFter "Omt"times des.;natld as the Participlat. .' '

WITNESSETH:

T B*.\. T:

UE it Il'Dlembc,'red that a .POWCl ~.b CYntrllC1 .nd an AnJmC!ment. both datl!t1 u of ~Iarch 1, 1!r.8.

ha"C' 1)C,~11 pt.....iously e,sC'Cuttd

. by and beh\*ec:IJ the .'uthorit>* ond the P~lcipant. and

\\"JlE:RE.o\S. the plUth... de.ire to amend sllid Cuntnt1 In eemln rup~rs:

NOW THEREFORE:

For and in couidrratlon of th', prtmhes and til(' mUNo) c:O\'l:nants Ind IIJI.mcllti IIl~rl'ln.:Ut" let forth, the .wlidency 01 which is heretiy. acknawW,td, ,It II Ii"=' by Ind betwfta ttKt FUn hereto' .

u IOUOWII SectiOIl I, Subsection 100(r) 01 Ale!' l'OIYU Sa In Contran ",hudn i'roportion.:at. Shw* fJ defined it hereby cfeJe~ ID Its cDtlrety.

, Sel:lfoll!. Sccdoa -403 of ..Id Contntt is herC'D)* d~leted !D its entirety and tile' rollowm, new Section 403 II subs tfm led .ID l!cu thereof: '

• Section 403. S\lpplemental Bulle PDwer Supp1r Taken By PlZtlC'ipun~. 11Ie Partfdput s1Wl tllka

all vr ill SUPrl~mcntaI S!l1Jc Power SIlPpJ11~om the Authority lnc1aMU ~'J 10 the AutlaorUY its .

,h:l~C: 01 .\naual Supplemc:ntal Colta let turth 1ft tho Pa~c:ip:l.nt*1I month)- JUlina Stalntlcnt IS .

'd.c:tumInecl In IccOrdaix:e with the loltJOIDI plO\1sl0Dl oJ tJUs ArtJcIt JY' and. IUbznltted by the' Au thOrity to the Partrcipi-Dt.* , .

Section 3. Sale! Amendment shall be: cUecth'e tor neh P~rtic:lpant is of the tinle or the ~IAY, 1m.

me'lfI' readlnal. Th. AuthorIty II, howt\'rf'. aut1aoriZl.-d tD make ltdjustments rrom workrn; C':Ipil:ll lor tht' ptrluc1l101n Febru.:ary 7, 197i. tu the c:Irc.'CtI\'1' dole or this Aml'nwnent \0 ort-",t the ImOUnt tn* which the tat:l1 01 :any l'artidp:lnt's leNal bWklp durin: ,utb peoriod exc<<dcd what the total'or IUdi bliUnp W<nlld.

. h:l~'" bC'rn under the \VI\*9 rate. .saId a~jllltmenrs ta b( a' con 01 powa JUpptr de\'etoplDClt.

Section 4. Said Contr:ltt .h:lU remain In luU forer :and ..Hect as hereiD Imellded.

1

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IN \'Vl'm~ W]1~o ... The )lunlC:'f8J ~G A\ld>>orit;r of Ccoa,:sla ...el ta. PUticiP~'1t aAve CiiUJed this ~eCDnd AmendmeDt of Conb'ad tD be oeasted in their corporate n~CI by their daly. '

autliopUci oIIJcen and Ibm eozpo,* I~:alt to bt MlcunfO JmpCSl.C'cf caacJ II tt"..ted. aU of the ell' and yeu flnt Above writtm ' . ,

MtlN1CJPAL ELEGllUC AVTHOBtTY qF

.Br:~

, . AJT* .I; ~""'\,(.~"1i '"b!OUUI uh~

Cln 0' ADEL, "GEO

~ I'Y I'I'JA.N ~ 6N

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. 'IlDRD AMENDMENT pown SALES CONnAGT BEnYEEN MUNlCJPAL EI..ECl1UC .AUTBORlIY OF GEORGIA AND mE UNDERSIGNED P.AltDCIt',ANT

. ThJs ThW AmuvimlDt of ContrlCt, inade wr ./lUrtd mID u of F.bnwy f, 197', by md balMlA Iht

~pll Electric Auth~ty. of CieolJia, I pubic body ~zponll wi poUdc IDd a 'pvbJlc ;cxpo~doa ~Ltba Stata'of Citoqla. .bardDaftar lCmetimu duIpata4 u the AuthODq. ;Iaatad by 1M prcwbb1a or.I a.. L 15175,

p. 107, u 1m1D"d81!; aDd th. UDderafped polidcl1lUbdiYlllcm of the State of Gacqia. IwrdDftcr IOInIdruI dnlpata4 II tU Par1icfpIll.t. ' '

WITNBSSETH:

'IlIAT:

, *U It remecnbcred that a Power Sllaa ConUiet aAC! III. AmndmeDt. botIL c!atM ai oCIWdll,l!i176, and a

~oDl! .Amed1Deat 4&tetl is of May 2J, 15177, hall bed preYiowly UIClIted by ud 'bctwlea the Authon\r aU tba l'utfcIpat! IIld . . . .

WHEREAS, aaJd Ccnt:lct COI'tamplatll that aG4ItloDal pzojecb may bl ~ by tI:Ie .AatJwttr to pro

'I!da a poztfoa of the* Putfdplllt'l buJk power nqldremelltl, ma It la DOW deaa4 feuII8 ad sIdnbIa by the PartktplS1t IDd die Authadt)' that tha Authodty acquUe addltfccll JlZlefttfn. capKitY lit proWla a portl~ of

~~~~ .

'NHEIEAS, 1M Petfdp~'t .AU dltalmlntd to 'CltJr Into a 2'rojlec 1"0 PlI'Wtl SaJq CcD.tnet of '11 ~te IwIwltll with tb Authodt)l JD order to IClble tIw .Authority to 1auI1U ....uc boll. to ptf tb& COG of ~

cpfdq tad c;oAItnICtlaJ ProJI~ Two ref.md to bela. mel to ulble Puddpmt to raodN autput IIlCl alated..

.me. !om1Iojct '!'wo, ad '. .

WmBA.!, It II qlCiIw)i md 4ulrabJe to am=cl tha 1114 Power siI.. COIi'trKt, caml&tat with the Boa.4 JWo1u't1Cl1l, to uubll tho Authority to Iltab1bll rataa md dwp.. It 4.llrab1l. to ~CO'ftr eaatI CIIl a conblDed bull for Sapp1lmuta1 Bulk POWIf SuppJ1111d tile outpgt IIIpplJad from Projoct Two and ID'/' f\ltum 'prajecUi for whlda PuticJpult may IXK'Ute ~ COIl tract; wi to enlble tblAuthoDty to ~ .a4411:bu1 trmIIctlOIl& with respect to 'the ~t wlMrvices aClha Project themmdv. .

NOW THEREFORE:

For- ad In ca=dcratloa ot chi premJsel and the IDU'llJaI C~'DlUlts uu1 lpaDlJlU benIDaftIr _t forth, the mfBdmq otwbidlll.bereby lCUowl.iilld,lt Ja qre'd b)' mel between tbe partSu biram u f..OWI:

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e, ' ...

Sectioa 1. Tho Power Salu COIltrlc:t, U UDCIldecl, 11 hereby fluthu UIICDde4 by addin& It tbe cad oiSc.

102 tbI foUawiDl defilUtlClDl~ .

(1) '"Project Two- IhIIl melll the Authority" acccmd propct camfI~ or additfaall uc!Mdld mterests iD.l'lu'tl w_y &ad Schelcucquired punulllt to III opdaa IIRcment with Gecqia 1'ow..'CaaapIily claud u oC ADlUlt 27, IP76, U IIDCIlc!lcl,"wbkL pzoject 11 ducD"b1ll fA SecUca 102(1) or the Pr~t Two l'OWIr SalcI CQIltraet. .

()') ~t Two POWII' Sa1u CQDtrll:t"' shaJl meiUi that cartafa CaDtllct cSatld u or the dati hueol be twdll the Asatharity ad the PIltJciPlat U thllI1Illmay be amended CrCllll tlmc to dale, relatlD& to tU plQVlslGll of OIItput lAd relltld .rvfcli rrom Project Two to till Pvdc:ipmt.*

Sectknl 2. 1'hI Powlr SaIl. CoDtrKt. U ImIDdlcl, Il herebY fuittw IInII1ded by deltdn' Slc:tioQ 401 III III IDtirety IIlCll1lb.~t\IUD,1D. Ueu dwIoC dIoIlollow'lllW SectIon 401: '

."SIlCtiar1401. SappJlJDaltIJ JuDr 10ftI' Sapply Pzovidcd by the AuthodtT.

• The AuthadCy ri1 pl'O'fd' ar CI_ to b. pro.sd.d to the PartJdpant iU SlippJemezatal BWk Power Supply cluriDa ucb maad:l or.llck"Power Supply YIU. Such Supp1&meatll BuIkJlowcr Supply ~y tD chide, but aIuJ1 DOt.blllmltld to, pll'tla1 mel tun raquim1\lntl ibm pawll purcUaea. mduult polftr IIMIlI, 6J:m and ftOIl-!ml capacity and lnerlY.lIMe" In.nIn1laIQD 1IM;e (hlCl.n_ trulimIsiOD

...mel pusclwecl by the Auth~ to.aUl'plement the Pudcipmt'. htitlaDta.t saw. oC trIIlImiulo1i amici. prcmdld by the Aathodty Crom &hOM tummisaion I)'It&m CacI1da IDchIcIad Ira the Project) II1d other Inte!dWlp acmel midi anilallJa U I ralUlt oC trullletlOlll wlth othlr utiIltieL seed. 3. The Power Sal.. Contract, u em.nud, Is hereby lllrthu Unal1dtcl by de1ltinl Stctioa 402 In itl Ctlrlty II1d subrtfrutirlilra lJau tbmof the foDowiq DIW Section 402:

• 6I$ect\'OD 402. Rite ... a...., for SapplaDllIItallWk PDWr Supply.

(I) The Authority IDlY combinl the AnrIual Supplcmtntal Com with till lIlDIIaI cORl of my future projcc~ uadtrtaltal by tho AutbClDty, fn.c1udiq Froject Twa, lor wblc:tl the hrdr:!pll1t 1111 u.eutlld

• COIltrKt' ror' tbt output md relaClI! IIl"Ic** tbtreof, lor the pDJPOII or ut&b1bII..m, dWucl dwpI, or the AIltho~' 1D.y1lt&bUab for In)' of ncb cOIta, 0' ~bbntSollthanof, ..pantl rata md dwps, ,t the dbcredoD of tha Authority, in IJtber cue In .~dIDce with the provWoaa of Section 402 (b) h m o C . . .

(b). TbI Authodty ~ Istabl1lh anti uuint&ln fllr IJI.d 11000000000000tOlY rata md,the. . widell wm prorida I'CftJWc~ thlt 1ft auftldant, but oaJy SU£fldcDt. to ply tbI Annual SuppllllllDtIJ Cons.

whether or not aueh COlts III cambin&d with the wwl1 COIU oC UlY tutuftl projectalDldartakm by tba

!-uthority, 1IIcJud1rLI,Project Two, Cor D1ItpIIt aud

~. .

.rYiie, oC which the Puddput I1Ii l1ecuUd

• cClll (e) Ths Authodty IhaII b!q.d:l1 Partic:fIlant Ildl month dUM' eld1 Powar Supply Yelr by pnmd Iq the Putlc:ipant with '& BIJ1fq SUtarltllt (or ach mQl1th fD accotdmcl with tht dIU lilt!' chupi

.utlbliahld pumrmt to the fOICaoq'prorisfOlli oC th1J Section 402 1M ita SuppJemutIJ BaDe Powe.r Supply. Such mOlubly BDlIaa Slatlllliftt wiU inducle

• credit for _ dtII,.ay pomt traun1uIoA fldUtI** u 11'1 OMIC~ tmmced or opeiatttl by tbI Pmiclpmt. Such BWm& S~atlmtDt mall be paiel by

~ Puticlp~t on or belore the ttAth day from the dltl of SUcA bDl. .Amounta duclA4l1.Ot p:114 by 1ba 1artk:Jpat aa or bafon IUd data call bllr 111 addJttOl1al cJwp of one IA4 onHI,a1l (1-1/~) pcrcalt per mOl1th lor lach month, or hct1aA dwtaf. until the Gount dua II plld III ftdL At tb IDel or IlICh JoWlr 'Supply YIU; acijuaaaclill oC biWDp IhaD be mada bl accordancl with tbI prcwlslaas of Stct!oIl 209haraof. .'

Cd) La the cYent that.the Autbodty ,atalillsb.u rate' IIld chirp, pur.umt to Scc:~ 401 (a) blita!'

to l&CoYII, =* combined bub. AnIlual S~pplemental Com IIl4 lIlIIual C1)ItI o~.nr lutwe proJeets undlrtak.a by dII Authodty, lDdudIaa PJa38Ct Twa, for tt1e*omput IDd .nt:et of wllJch the ~

pui ku ulau,d

• COAtnc:&" tU .Aaaib.Clrity wi! idllltU'y GIl the 8IDIrl, Sll~ aubinItUd by tha Autl1ori£)' to tbt Fuddpaat punuMC !D SNdoD 402 (c) urao! that 1lZl000t of eM IIVIIIU,I to' b. J'to Clint! by tbI Authority Irc= the l'lItIdpmt pursuet to JUCh rUtland char. . that 11 alloc:abll to the paymcn~ or monthly kmual SuppWneaw Com. Such amouDt IhII1 be the menua tel be received by l....

the AudJorlcy frena 1M Pattklpant nat aUocatec! by the Authoril)' to Ibe plymcnt or COIlS or any IUCh tvNl'I P'zojcc~ ,WS'IlOt fa the CallrnC~ :cJat1n. 10 mch projce:u." "

SI:c'tIo,. 04. n. POM' SaJcs COIltrxt. u amended, is hcr&~ fuM.r mended by rcnumbcrinl prnl:at SecUon J IQ'~ 3*UC.),ud adctiqucw ScdJon 31I(b} to' rad u(oUows: ,

"(b)'ne Aurhoriry may'.

• lItJl1ze.aeD. and czebanI' eJeetric capacity an" CDCrIf Crain the Partie),'

PIDI" Eaddlmeat Shale of Project One, wbcnenf, ill its cI1JcreJ:fon, In)' such transaction can reasonably be apeellCl ID rault III. mote rcU.bS. or cccnDlDki! Ilvell1J Bulk Power Supply ~ the Parlicipanu.

1bI anlkfpllA proc:ccda (,OID IUch sa1ca or tran.~UOftlIhaD.IQdie c,",nlprscUcablt. be adm.wei in, the .AMuaI S)'IIinl.Buclpt and any net fCYtUUCI ICtually reccived by the Authority IS

• mutt of mdl

. ~~oit. IhI!I be CIlIdJlcd to Ihc PmfcipUil'S EDlithmenl Share Dr Mnlld PrQ~t COIt.I,uncSer the

. . :Po.,.i ~c. CocIIMt. II

~ ,.~'CorUrKt duD ran. in ful ioru md clTect II he~tn am.ndceL.

IN*WJTNESS WHEllEOF, 1hI Nullldpli EJectric Itut!lorily or CeorP IDd ~ Putidput ban ClUIC~ tJdi td AmtIldmeat ~,. Coatnel to bt aec:uscrllza Ibdr corponc.e 111m" by dulr cfqJy IUthortUd office,. .ad tt,cmpOrlCO aea!I to be blJwJJlAt Jnlprn-d and .U:eItc4, 'Ill or the dq JAd Ylar filii _tum wrfUm,'

MUNIClPAL £LECTAIC Al1TUORllY OF GEOIlCi

/"

... . .-t

• FOURm AMENDMENT

POWER SALES CONTRACl' BETWEEN MUNICIPAL ELECTRIC AUTHORITY OF GEORGIA AND THE UNDERSIGNED PARTICll'ANT Tha J'ourth Amendment of 'CaDtr&Ct, mi.de and entered. Into u, of Ki.,. I, 1980. b,. and between the 2iluidc:fpal J:1ect:rlc Autllarity of Georp., a publlc bod,. corporate and palitlg and a publlc corporation of the State at Georlia, he:.baftez' &Ometfmel d_JDate4 u the Authority. created by the prov1J1ons of 1 GL L.lns, p.lar. U &me=ded, aDd the undlnlptd poUtical IUbdi~ of the State of Georl1a, hve~after sam.tIm.. duilUtacl u the Pariid pant.

WITNESSETH:

'l'BAT:

BE it remembered that a Power Sales Contl-&Ct me! an Amendment, both dated u of March 1, 18'18, a SecODel Ameadmct dated a,of !4a,. 28, 18'17, and' a 'l'hlrd AmeIldmmt dated J'abnw)' 1. 1818, han heeD prmously execute by aDd betweeD Use Authority uc! the pa11c:fpat, ad

, WB:J:REAS, the PuUcipaDt and the Authority bave dete:=5ned.. that It u m tblir best fnteresta to M1l the Authority'I1D1eruta ~ ~~er 11D1t1 ';thr.. and FOUl'm. elCb of ProJtc:t<>De, ,

Uld Protect Two ad to acqu1re additional ,Ineratln, capadty' 'lU't*tantllUT equal to the

'inierutl ;0 I01d m .ccordaDee with the prov1a1cml of the Protect Thr** Power sate. Ca1ltr.c:t entered into by the ParUdpant aM the AuthOl1ty u of the date of tbla Amenm.lII.tj aDd WHE:REAS. It 18 necesiu)t and del1nble' to ammel the wd Power Sa1eI Ccmtrad, con aisteDt With the BODe! :a.olutloD, to (I) redefine the Proieet 10' U* to exclude the mtereltl in

, Scherer UD1t1 Tbree aDd Four which an to be dlJpoae4 of by the Authol'iV. aDd. (U) to revUe the lChedul. at .ala of output a.nLI lervSc:ea from SchUl!' Urdu On. and Two.

NOW 1'BEREFORE:

For and mcllns1den'tlon ,of the prem1ses and 'the :a:nutul1 covtunta IDO aareematl here inafter: .et !crib. tile Wfflc1mc:y of which tl henby al:know]eclled. it is aareell b1 md betwHD '

the par'tf.. heleto .. follow,: . , '

SectJlIIl L 'lbe .ttachmea~ to thI Powc Sal.. CQZl.u.ct entitled tlDESClUPTION. 0";

nOmeT"; u amendeds 11 herebY, further amended by de1etmc RetiaD 1(0) Sa ita c.Urdy aDd subatltutinl mllw thereof the follow1n, 1tct1aD l(d): ' ,

• (d) Plant Scherer.

A teD percent uadl:vioea mterest in the two 810 'MW nominally rated. ca.l-t1red i C2er.tb1J unitt iq 'be known .. the Robert W. Sc:heru Steam PW1t 'UiUts: Numben On. ane! Two (1D.

'cUviduall,. dulpteo .. Sehenr Unit No. Oaa and'Schenr Unit No. Two) to be loc:ated A.ar For.)"tJl in' KcmrOl County, Georlla, !Deluding fOZ" web \mila (1) lmd daUne.ted. meld..

Icrlbed m Georli_ Power Company Map File N-8S-a dat.d December 18, 187" contlJnJni 1

' ~..

approximately twmty..wen hundred acres, to,ether wIth such additil:lwland. of approD mately ten thouIaDd acre. aequ1red or to be acquired tor USe in conuctlcm With Plant Scherer, to be recorded in the reeordl ot the Cler~ of Superior court of Mama. Cou:aty, Georiia and aU laad rlihtl pel'tlbUng thereto, eU) the turbine-llDerltar.. thl boilua, the bulldinp houafDI the sam.. the .ucla, thl coolmg facWUu, the usodaW .Wdliar1u aDd equ1pmmt,.

and the related trmmUalfOll !adDUu an u more particularly cluc:ribed in thl cv1rcmmmtal impact ItIte=ut rtlatiDg to *Plat Schuu, ,(W) mvmtoriM of matuia1a,. IUppl1.., fuel.

too1l and equipm~t for '\ZN in eonnacUon with Plant Scherer, and (tv) an UDOlmt equAl to 11.0 percct of the common tlcOits. of Plant S~."

SedioA Z. The attlchmmt to the Powv Sale. Contract entitled "SCHEDULE OJ' EN TITLEMENT SHARES", u .mInded, JI hareby further amended b1 deletiDS Plant Scherer

.frOm, thl JCbedule of ale. of output and leri1etl to Georp Pawar Company, an4 adding a nlw .cAeduIl of aaJu at output ~d .U'Vieu to Georl1a Power Company from Sc:berer Un1t1 OD. and Two .. follows: '

"'Thl Authority, 1D aceordance with the prov1lfona of Section.311 af the Contn.ct, mtenclt to H1l a portion of the output and aervieel of the Project to Georlf,a Power Company in ac cordanci with the follow1ng'acbedule:'

p~ IIQD1y Year That Po:rtlcm cd lb. Power Supply Year Remamlnl After &be Commerc:ial OpentiQD Dat. of Schenz UDfu ODI or '!'wo 100.0'"

nnt J'u1l Power Supply Year P'ollowiDg Cammerdal OperatiDn Date ' ~O.O7' Second hU Pawer SupplJ Year , .'

'FoU'ow1nI CODUDereIaI OperatSon Date BO.O%

'nm'd Full Power Suppq Year FollowillJ Caznrnarcf:al Operation Date '10.0% .

Founb :run Po1Wer Sup;pIy Yl!U' FoUow1Dr camm .rc1al Operat1cm Date 60.0"

, FJfth Full Power Supply Year J'oUowfD, CommendaI Op8l'lUoD Date 50.0" SIxth J'ull Power Bawl,' Yl!U' FallowiD, Commerd&l ~erat:1ODDate 4.0.0" '

Seventh :run Power Supply Year FollowUl' Comm,rc!al Operation Date 30.0~

Ei~th FW1 Power SapPly Year J'o1iowm, Cammerc:la1 OpcrationDate 20.0" Ninth P'uJl Power Supply'Year ,

Followm, Coznmerdal Opt:1OD Date " 10.07' The Autharit1 tnay, In ttl d1lc:reU=, eltabUIh cOJlcl~ve c:ommerclal operation datu for uD1t1 of the Project for the puzpoae of the fore,oml lChedule and IUCh datil! may b. dif.

!ere.nt trom thOle Commerclal Operation Data ..iabUahed 111 ICCOrdllDCe with Section 102(1) of the CoDtraet. Tb. . .tablllhmmt 01 the 1orel01l11 lChecluIe 11 DOt SDteadld to Umft ~

power of the Authority greted in SecUon 311 to .n aDd exchange power and car.... from the Project." . Dol 2'

IN wITNESS WB"EREOJ', Tb.. Municipal Electric Authority of GeorJia and' ~ P~l pan' have eaus-d this Fourth Amendmiat of ~ntrlet to be e,xec:uteclln their corporate names .

by their IW7 &utlsorlzecl officer, and their corporate sull to be hereunto Imprasecl and. .t tened, all of the dayand)'Qr ~st aboY,' wr!tttD. ,.' ,

MUNICIPAL ELECTRIC AUTHORITY OF GEORGIA

.~

FIFrH AMENDMENT POWER SALES CONTRACf BETWEEN MUNIOPAL ELECTRIC AlITHORlTY OF GEORGIA AND 1m UNDERSIGNED PARTICIPANT

. This F"1ltb Amendment ot Contract. made and entered illto .. of NO'fcmbcr 16, L983, by and between the ;Municipal Elcc:tiic Authority of Oeorlia, a pllbUc body corporate and poUtic and a public

. corporatioll of the State of Gcorlll, hereinafter sometimes dcsilDlted II the Authority, created by" the .

provislons of 1 GL L. 1975, p. 107, U IIncn4cd (Title 46-3*110 O.C.G.A.), ud the uJldersi&ud politicallubdivilion of the State of Oeorlia. hereina1'tcr somctimcl daipted u the Participant.

WITNESSETH:

-BE it remembered that a Power Sales Contract aud aD AmelldmeJlt, both dated u of March I, 1976, a Second Amendment dated u of May 25, 1977, a Third Ameadment dated February I, 1971, and a Fourth A~ndlftCJlt dated May I, 1980, have ~ccn previously CltCCIltcd by IDd betweell t.be Authority aDd the Participant; ~d WHEREAS, the Participant aad the Authority have determined that It is ill their best interests

. that the Authority undertake a fou~ project in accordancc with the provisions or the Project Four Power Sales Coritract CDtered into by the PartldpaAt aDd the Authority U or the data of th1I Am=d ment, which is rusonably expected to result in a marc economical oynll Bulk Power Sllpply to tlIe ParJicipant aDd other poHtical.ubciivilions contracan, with the Authority thcretore by maldDi the output aDd related serric:a or.Project Four &YI.I1able to the Participut, ucl by CIIab~i the Authority 10 rcarranae GCJ1Iin lalea .of the output of the :froJect aDd Project Four to other' utiUtfei which it intended to improve subitaDtia1Jy ths matchinl of th. output of boll!. the Project and Project Four to the Puticip&at'l Bulk Power Supply requirements; lAd WHEREAS, it is necasary and desirable to &mead the Slid Power Sales Contract. consilient wich the Bond Raolutian, .0 u to revise the: schsdula of sales of outputud semCei from Voille Unit No.1 aDd VoJt1e Unit No.2.

NOW 'IlD:RD'ORJ:

For and in consideration of the preaUsCi and \lac mutual covelliDCUnd larc:cznc:Dts llereinuta' set forth, the. Illflicicncy of which II hc:rcby acknowledacd, it 11 qreld by ud bc:cwCCI1 the part1C1 bereto that Hid .Contract 11 lwther amended .. follows: . ..

SecdOD J. The attachmCDt to the POwer SalCi Contract entitled "SCHEDULE OF ENTITLE MENT SHARES", u amended, is hereby further amended by deletiD& the reference to Plant VOltle from th~ .chsduJe of .w*o! outp~ and .emces to Georp Power Compauy, aDd addiq a new IChcdule of lila of output aDd ~ces to Georaia Power Company Crom Pllnt Vo,tJc u fOUaWI:

"The Authority, in accordance with the provilillftlllfSectJOD 311 of the Power Salu Col1tr&ct, U amended, and subject to che provilions of the Alvin W. VOltle Nuclear Units Nwnbc:n One and Two Purchuc, AmClidlDc.nt, Auianment and AuumptioD Aarcemcut, dated U 01 November 16, 15183, between Gcor,ia Power Company and the Authority, .lntcuds .to lell a portioll or the output and lervices or its Project One OWllcnhip entitlement in VOltJe UD1ts Numbers One and Two to Gearsla power Compuy iJ1accllrdancc witllthe fo))owiD,scbedu1e: .

""A. As to 77.966'S or the output wociated with the ALltboritYI Project One oWAership entitle ment in VOltle Units Number. One and T~. ~uch Wei shall be u rouows:

PI** SaM Yar nat Pottion of tbe Power Sup~y Year Rcmaiftin. Alter the Commercial Operation or Date I Unit of Plant Voatle '. 50.OS first Full Power S~ply Year .

Follo....inl CommercW Operadon Date . 50.0$

Second Fu.1I power SUPllly Year follo....inl Commercial Operation Date 37.S" Third FLlU Power Supply Year .

foUowiq CommuciaJ Operation Date 37.511 fourth Fun power SllrpJy Yeat foUowinl Commercii Operatlon Date 2S.Q15 Firth fun power Supply Year followlnl COaU'Dcmal operation. Date 2S.Q15 Sixth FuU Power Supply Y e a r '

FoUowiD. Commuaal Opcrttioil Date 12.5" Seventh Full Power Supply YelZ FoUowifti Commercial Operation Date 12.S~

. "B. As to 7.3451. or the output uaoci.afcd with the Authority's Project~. ownership eatitli:

ment in VOltla UDiu Numben. One and Two, IUCb sales to GlQIJia Power Compuy .hall be equal to 1005 of the output ud servicu bqinniq with the Commercial Ope.dOD date 011 Ull1t of Plant VOltle and continuinJ until the encl' of the rOl&rteenth fvJl Power Supply Year falJowia. the Power Supply Year in which the Commcr:aaJ Opera.tion or such Unit occurs.' ..

"C. AJ to 14.6891. or the output wocilted with the Aathority's Project One ownenhip CDtitle ment in VOIUe UmU Numbers One &Del Two. sucb ala to Gcorlia Power Company shall be' equal to lOO~ of the output ud semcu beaInninl witia the Commerclal Opcradoa date 01 a Unit or Plant VOltJe anclsban coolinue until the late: to occur of (i) rewcmCDt or sueb'UlLit. or (ii) tbo flrat to OCC\&r or the Iitest date ltaled for the payment or th. priDcf~ or BoAdi or or prorision bciDl made for such payment in Ic:eordlncc wilh Section 1101. oflhc Bcmd llaol\ltlon.* .

"D. The establishment orlbe forqolnllChcdule is not int=ded to limit Ihe power of the Author ity lranted iD Seclion 311 to leU lIld u:ch~nle ~er ancl encrlY 'rom Project On****

.SecdDn1. The roUowinl DCW section to be known u "Section 213" it hereby added:

"Section 113. Resal' CDYInut.

The Participant IlrcCI that it will not, without the express written consent of the Authority. enler Into uy contr~ punu*.nl to which a nonexempt penon a.reca to take, or lo take or pay for. power purehucd from Project One. For purposes of thc prel:e1:linlleDtencc. **nonexempt penon" ahal1 mean allY entity wblch itllOt & Itatc, territory. or posswion or tho United Stat-. tho District of Columbil or any poUtIcal lubdivilJOD thereof, Iud whIch unot exempt from tandon under Section 501 01 th~

Internal Revenue code of 1954. u amlnded:' .

z

IN Wl1'NESS wHEREOF, Ule MUDiciP'l ~c A.uthority or Georlia Ind thc Participial have caused tJUa Fifth Am(ndmcnt of COAtrlc:t to be cucutcd in their corpora.tc Ilames by their. duly "_

an luthorb.cd offic:cn aDd their corpof.'-te scali to be hereunto imprCSICCIIDd attested, of the ~lC and year .fint abovc written. . . . .

MUNICIPAL ELEenuc AUTH"ORITY OF GEOloGIA Approved AI To F~ BY: ~n "")-r:, ""'" 0 t ('

Chairman: .43

.AIT: "" 63. ,<:: 'klAb.. <

Secretary-Treasurer .

Approved ~ To Form 3

B!:lW'E!X IflNICIPAL !UX:'lMC ~ (R GEXJmA

~

, . mE:. ONDERSICND PAR'l'ICIPAN1'

. 'l'hi~ sixth Amendment of Contract, made and entered into u of JanUary 1, 1986, by and t;etwe&n the Jollnicipal Electr~c Authori 1;-y of Georgia, a public body corporate and'poll~ and a publfc c:mpcration ot the State o~ Georgia, hereinafter sC1II8t1me's referred to as the Authority, created by the provisions of I Ga. L. 1975, p. 107, as amended (Title 46-3-110 C.C,.G.A.), and the undersigned political subdivision of th~ state of Georgia, here~t:er ~timIs desigM,tC

..as -the Particlpimt. .'

~ I or N E.S S E or B:

BE it ,remembered. that a Power, sales cectraet and an ~ ,

'. nent, both datl!d u of March '1" 1976, a secoDe! PtmeD,dment dated as of May'25, 1977,

• Third Anndnent. dated February 1, 1978, a Fcurtb ~

nent dated Hay 1! 1980, and a Fifth Am!ndant dat.ea as of lbveraber 16, 1983, have all been executed previc:us1y by and between t:ha ~ity and the Partfclpenti and WHEREAS, the City of OXford ('"Oxf~") which has prll'1iaJ81y ,

rBOiaiveCl its \tilclesa1e paver supply from the city of Covington bas requested to becane a Participantl and WBmE\S, it 1s in the best interests of 1;he Authority, the Participants and Oxf?rd tor Oxford to beccml a Partici~t upon the execution of

• Pow&r sales Contract.

e* e.'

For and in co~siderat1oD of the premises ane! the I1IUtual c:cvenants end agreements he~einafter set forth, ~e suffi~le.ncy of which is hereby ~cJcnowledged, it is aqreed by and betweeD.the parties

• Mreto that said Contract is farther anended as follcws:

section 1. 'l'be Authority is' hereby authorized to enter into a pow~r.. Sales ~ntr~t:

. wi ~h: ~Xf~ in substimtWiy the". fom 'd this Powe:' sales Contz:act, as anended, with such ~.. as may be required

.to make such ccmUact. 'applicable to OXford, and to pro\Ti~ OXfoxd with

~ Enti~lemant Share .of 0.191\, and an appropri~te Tr.n.m~ssion Entitlement Share calculated in accordance with Sec:t!co 308 of the Pc:lrer sales Contrae:t..

Section 2. '!he" ~thority i. authorized ~ proYide a. portion

• of ..,

oxford's Entitlement Share

. . from this Particip~t'

. 8 Enti tlement Share pro rata with ~he othet- "P~ticip~ts a~pr~inq' this Sixth

~t.

Section 3. This Pat't~cipant agrees to c~tinue obligated for its full Ent.itlement Share without dedu~tion for the. pro rata portion assigned. by t.he Authority to 0Xf9.rd:* prO'1ideC1.~, that*

the AI,Ithority hereby agreeS that it will take all necBSS&J:Y action to

• enforce tbe payment. of all sums due by Oxford for .*its Ent.itlement.

Share, and this Participant shall receive credit. for its pro ra~

share of such. p&ymants.

Section 4. nu.. Sixth mena-nt shall beo:ae effecti.,. ~

such aJIIlndment has been apprOY8d by Participants whose 1985.l'ranllZll1s dan Entltlazent. Shares represent., in the a~eliiat:.e, not 1esI than 7S, ot the total Puticipants r Transmission Entitlement Shares for 1985:

Appt"OVed As to Fom .

~~~~-¥

SEVENTH AMENCUENT

~

POIeR SALES CONTRACT '

SEmEN

'WN ICIPA L ElECTR IC AUTHOR lTV 0F GEORG'I A AND THE UNDERSIGNED PARTICIPANT This Seventh Amendment of Contract, IlIde and entered Into as of May 31, '989, by 'and between the Uunlcipal Electric Authorlt~ of Geo~gia, a publ ~c b~dy eorporate and po I itic and a publ ic corp~ration of t~e S1ate of Georgia, herelnaft~r sometimes refer,red 'to as the Authority, creat.ed by the provisions of 1975 Ga. Laws 107, as amended (O.C.G.A. § 46:'3-1'O,.!! seg.).

and the undersigned political subdivision of the State of Georgia, hereinafter someti~es 'deslg~ted as the PartIcIpant.

WITNESSETH BE It remllllbered that a Power Sales Contract and ~ Amendment, bot" dated as of r.tarch 1, 1976, a Second AIIIendment dated as of Ltay 25, 1977, a Third Amendment dated al of February 1, 1978, a Fourth Amendllint dated as of May 1, 1980, a Fi fth A/!Iendment dated a5 af NOYf!IIIber 16, 1983, and a Sixth Amendment dated as of January 1, 1986, have all been executed prev.iously by and between the Authority and the Partictpant: and' WHEREAS. the Part,icfp'ant and the Authority have deter.lned that the financing of translD,illion syat. faci lities after the conmercial*op.ratlo~ of

. Vogt Ie Uni t Ko. Two is ta be cont Inued as a p~rt of .ProJect Onei 'and

e, .'

WHEREAS, a contract wlth the Southeastern Power Adminiatration (SEPA)

I, .

permits the Authority to ~heel *SEPA allocation. for /I1Unicipal preference customers within the State* of Georgia.

NOI, T):iEREFORE For and In consideration of the pr~ises and th~ mut~al covenants and

,agreements hereinaf~er aet forth, the' sufficiency of which is hereby acknowledged, . It Is agreed by and between the partie. h.reto that said Contract is further amend.d as follow.:

PROfOSED AWENDMEHTS TO POtER SALES CONTRACTS' Siction 1. The Power .Sales Contract, as amended, i. he~eby* further UI.nd.ed by. ~eJet ing s~bsecrlon '~2(S) In Itl entl rety. a"d lubstituting a new subsection 102(1) to read as followl:

.'1(5) 'Project' shall lIean than. electric generation and related tranamisaion facIlities which are Idantifred in the Description of'Project and' thoae transmlaslon ,yatn faci Iitles to which reference Is made In the Descrrption of Project. together with .(j) any major renewal.,

replacements. repairs, ~dditions. betterments and Improvement" necessary, in the opinion of the Consulting ,engineer, to keep the Project in good operat Ing condl t IDn or to. pr~vilnt a Joss of revenue thlrefrOllI, cr I) any IIIjor additions, Improvellents, repaira and IIOdifications to thll Project 2l\d any. decollWllssioning *or disposal. of the Project, requ;re~ by any governmental agency having jurisdIction over the Project or for which the

.-.: * -6 Authority shall be responsible by virtue of any obligation of the

~

Authority arising out cif any contract to which the A.uthority flay be a pa~ty relating t.o owner~hip of the Project Dr any fa~i Iity thereof, and (iii) working capital required by the Authority during construction of the

.Project and for the placing of the Project in.operatlon for providing Bulk Power Supply and SEPA po~~r t~ the Particrp~n*~."

Section 2. The Power Sales Contract, as amended, Is hereby further amended by deleting subsection 3O~(c)(2) in its entirety Section 3. The Power Sales Contract, as' amended, is hereby further amended by deleting subsection 308(b) In its entirety and by substituting iii Iieu thereof a new s~bsect ion, 308(b) so t~at when 10 amended subsect,ion 308(b) ahall read as follows:

neb) The Authority may assune responslbi I ity fo'r .t'ra.nslIIllS,lon of *SEPA*

power to' ParticIpants and other customera of' SEPA, provIded that the Authority shall recoller at least Its costs for luch transmlsdon service.'

During any Power Supply Year In whi.ch the Author,ity' has respon,sibility for

. transllllssion of SEPA power, such transmlss.lon service shall be provided by the Authority to the Partici.pants and other customers of 'SEPA by accepting

, del ivery of auch SEPA power frOGl SEPA, for the accounts of the respective Participants and other customers of SEPA,. and del.lvering suct'i SEPA. power to 'such Participants and'other cuatomer, through USi of the transllllision system facilities Included in the Project, and the Authority is authorized to, incr.e~se itl Invutment in, and the annual operating costs of, luch transJlilsion aystem faei '11 t lei as may be requl red to provide auch

'. ~.

transmission 'service. " The charges for such service shall be calculated and collected by the Authority as provided in' Section 308A hereof. All amounts collected by ,the Autho~ity for such transmission service shall be appropriately .credited to Annual Project Coats In the same manner as other credits pursuant to.Section 31'*hereof."

. Section 4. The Power Sslci Contract, as llIIended, Is ~ereby further' amended by adding a new section following Section 308 to be designated Sectlo~

308A to read as fC?llows:

"Section 308A. Calculation ,of Charges for SEPA Transmiulon Ser-vice.

The Authority Ih~11 utabl ish . ~ rati (exprlSsed in dollars per ki lowatt per month and deterlllined uti lizing the annual dolJar costs and bl J ling d-eterlllinanta) f~H each month of the Power Supply Yea.r for purposes of de Iivering SEPA pow~r to the Participants and'other customer~ of SePA which are not Parti.clpants ('noflparticlpant custOllers')' for eacn month of '

the Power Supply Yea~. Such rate shall be determined f9r each Power Supply Year by dividing the lUll of (j) the Annual Projec.t Transmission FIxed Charges, (jj) the Other Annual Project Transm,lsslonCosts, and (jii) amounts. I f any, which Inust be paid by the Authority for the purchase of transmission services for the Project under ita integrated transmission IYI1.m agreemen't with 'other ut'i1ities; in each case al budgeted or est.imated to be Incurred for the Power Supply Year; by the sum of (~) the highes't annua! one-hour Integrated co*incident systelll demand of Bulk Power Supply prOVided by the Auth.ority to all of the Participantl, (b) the hi ghes t annul J SEPA cap~c i ty de livered by the Author i ty to the*

Part ici pants and nonpart~cip'ant custollers, and (c) less dUland credi ts and tranllllission losses, if appl icable, incurred by the Authori ty under its integrated transmission systein' _greement with other uti I iUes that ~re.

proper.ly _llocabie to *the SEPA capacity delivered to the P"rticiplnts and nonparticipant customers. In each*case to be supplied during the Power Supply Year; with the re.sult, further divIded by the number of IIOnt~s in the Power Supply Year. The amount payable by each' Participant and nonparticipant customer for each ~nth of the Power Supply, Year, shall be the product of the rate, determined in accordance with the foregoing, and the SEPA capacity delivered by the Authority to such Participant or nonpartlcipan~ cUltOlller of SEPA during the respective month of the Power Supply Year, plus, in ,the case of nonparticipant customers of SEPA, any app I i cab Ie surcharge."

, Sectipn 5. 'The attachment to the Power Sales Contract entitled "Description of Project". as amended, Is hereby further amended by deleting

. ~he pang raph del ignated "Add I tiona I Floe iii ti es II in itl ~n ti re t1 and substituting a new paragraph to read as followl:

"Additional Facllitil'.

The addU ional faci I i tiel of the Project ahall be thOle additions and improvements to the electric generation and related trl,l'lSlllission, facilities and to thl transllli's.lon systell facilitl.es of the ProJect provided for in clauos (I) and (ij) of Sect,lo~ 102(.) of this Contrac,t; and those transmiasion system .facilitiea.: renewal.,

replacements. repal rs. and additions *. betterments.

: * "0 . . .

Improvements, and modifications therilo, acquired or constructed by the

.Authort ty subsequent to the ConDercial Operation Date of the last of .the generating facilities .of the Pro*jett to be completed, in order to meet itl lnvastment reaponslblll ty In connect Ion with any agreement for an

. Integrated lrans~iSlion *system to which the Authority lII&y be a party *.

I.N '~TNESS WHER~OF, the ~unlcipai EleqtrJc Author i ty of Georgia an~ the Participant ..have caused this Seventh A.DendlDlnt of ~ntract. to be executed In their corporate n~s by their dLlly authorized offil:ers and their* corporate seab to be hereunto illlprissed and attested, all as of the date and year 11 rat above wr Itten.

I4JNICIPA( ELEcmfC AUTHORITY OF GEORGIA APfflQVED AS TO FORM: BY: Q 'Y) 1hi1,. - L 1)"

a ralan

&~

'7!:Gene~el

• ArnST: @ £&....._:

• Secretary~Treasurer.

APPROVED AS TO FORM:

~

.t~

AMENDMENT TO POWER. SALES CONTRACTS BETWEBN MUNICIPAL ELECTRIC AUTHORITY OF GEORGIA

. AND mE UNDERSIGNED PARTICIPANT This Amendment (the "Amendment") is made and entered. into .. of JlIIl1W)' 14, 2005 by and between the Municipal Electric Authority of Georgia, a public ~y corporate aDd politic and a public COrporati~D of the State of GeorJi8, heremat\er sometimes referred 10 as the Authority, created by the proYisions of 1rns GcprJia Laws 107, .. ameaded (O.C.O.A. § 46*3*110, et seq.), and the UDdcnipcd .polidcal subdivision oftbe State of Georgia, bereinaftersometimes designated as the Plrticipant WITNES S ETR:

WHEREAS, the A~ty aDd the Participant entered inID a Power Sales CoDlllct dated as of October 1, 1975, a First Amendment dated as of March I, 1976, a ~

Ameodmcnt dated as of May 2S, 1977, a Third AJ;Dendme:at dated as ofFebruary I, 1971, a Fomth Amendment dated as of May I, 1980, a F"lfth Amendment dated as ofNovember 16, 1983, a Sixth AmeDdment dated as of January I, 1986, and a Seventh Amendmeuf elated as of May 31, 1989 (hereiDafter "Project ODe Po~ Sales COD~; and WHEREAS, the Authority and the Participant entered into a PO'M:l' Sales Con1mct dated as of February 1, 1978, a First Amendment dated as of May I, 1980, aDd a SecoDd Amendment dated as of Imuary I, 1986 (hereiDafter "Project Two Power Sales Contract"); aud AnAlIJ IlI7U5Yl

WHEREAS, the Authority and the Participant entered into a Power Sales Contract dated as of May 1, 1980, BDd a Fint Amendment dated as ofJanuary 1, 1986 (bercinafter "Project Three Power

. Salea Cordnct");

. and WHEREAS, the Authority and the Participant c:atered into I Power SalCi Comract dated as of November '16, 1983 IIDd I Fim Amendment dated as of JIDUIl')"I, 1986 (hereinafter "Project Four Power Salea C~Dtract); and WHEREAS, the Autbon'ty BDd the Plrticipant wi.sIJ to extead the tam of tJJe Project ODe Power Sales Contract, the Project Two Powa' Sales CoDtrad, the Project Three Power Sales CoDtr8ct BOd the Project Four Pawa' Sales Coatract (hereiDafta' sometimes refemld to collectively as the "Power Sales ConIne",,) to the muim1DD period allowed by law; and WHEREAS, 'the Authority has determined that it wiD DOt extend' existing pcratioD debt. but excluding existing debt pertaining to wcirkingcapitaJ .and 1UlC1_ ,;(,~'

fUel working capital dcibt compoQeDti, beyond the existing term of tho Power Sale.

Contrlc1l; and .

WHEREAS, the Authority BDd the ParticiplDt wish to proVide for a method of allocation of the output and acrvicea aDd com relating to Project Two. Project 'lbree and' Project Four for the period of the tam extensioa of the Power Sales CoDInIcts pertaining to such Projects as well as providing for an amendment to the Schedule of ObliSatiOD ShaRI pertaining to Project Four.

NOW THEREFORE. for aDd in coDlideration of the premises aDd mutual cove:n.anta and agr=mentl bereinafter let forth. and in order to provide for cc::rtain

-2

changes in the Power Sales Contracts, it is agreed by and between the Authority and the Participant that ~ tams oftbe Power Sales Contract Ihall be ameDded u (oUowa:

Sectioa 1. ExteDdoD of tile Term of tbe Power Sales Contraell.

The Authority ad the *ParticipaDt.hereby exteDd the tcml of the Power Sales

~.foUOWI: .

(a) The tenn of the Project *One Power Sal. Con~ is hereby extmded from MII'Ch 1, 2026 until JUDe 1. 2054 (hereinafter. '"Project ODe Tam

ExteDsion

Period*').

(b) The term of the Project Two Power Slles ContrIct is hereby extcaded from February 1. 2028 until Juno I, 2054 (hereinlflCl' '"PJojoc:t Two Tam Ext_on Periodj.

(c) Tbc tcoD of the Projoc:t Three Power Slles Contract is ~

cxteaded from May I, 2030 until June 1, 2054 (hereinafter "Project 'I'hree Term ExtcmiOD Period).

(d) The term of the Project Four Power Sales CoDtnlct. is hereby

~ed from November 16. 2033 until June I, 2054 (hereinafter "Project Four Term.

Extension Periodj.

Sedtoa %. Allocation ofPmiect Two. Project Three and Project Four.

(a) Project TWO AllDCllion Section 308{a) of the Project Two POWClr' Sal. Coninet obliptes ~

Autbcrity to provide to each Project Two Plrticipaat, ad oblipia such Participant to take from the Authority, the output aDd services of Project Two baaed upon the mea IUd charges emblisbed by the AuthoritypurBUIIlt to SectiOD 307(a) of the Project Two Power

-3 A11Al/l18'7llJ5yl

Sales Contract. The Authority and the Participant hereby ape that during tho Project Two Tcnn ExtenIion P.criod the output and services and costs of Project Two sball be allocatai to each Project Two Participant bued upon a percentage derived. by dividing the toCI1 payments made by eJlCh Project Two Participant for debt Iel'Vice md for capital costa during the mtir'ety of the original term of the Project Two POWCl' Sales Contract.

Idjustcd to pracDt value, divided by the total payments made by all Project Two Participants for debt service and capital costs. for the entirety of the original tenD of the Project Two Powar Sales Contract. also adjusted to preseot valuo (hereinafter '?Joject Two BilliDa Sbarclj. The Prcsmt value calculation shaJJ be based upon a discouut

. factor equal to the weighted average interest ~ ofdebt relating to Project Two during the entirety of the origiDal tc:nD ofProject Two.

(b) Prqjcct-'I'hree Nlocatjop.

Section 30&(a) of the Project l"hroe Powa' Sales Contract obligates the Authority to provide to each Project Throe Participant, 8Dd obliples such Participant to take from tho Authority,. the output and services ofProject Three based upon the rates amd charges establiabed by the Authority pumumt to Section 307(a) of the PJoject Three Powc:r' SalOl Coatract. The Authority IIDd Ibo Puticipant hereby ape that during the Project Three Tmn BxtaLsiOD Period. the output and services and C08tB of Project 'Jbrce ahalI be allocated to each Project Three Participant based upon a pcrcengp derived by dividiDa 1be total payments made by each Project Three Participant tor debt ICrYice and for capital coati dna the entirety of the oriaiDaI tenD of the Projcct 1brec Power Sales Contract, adjUlted. to present value, divided by the total payments made by all Project Three Participmta for debt service IUId capital costs for the entirety ofthe original te:nn of

-4 ATUIlnl~1

the Project Throe Power Sales Contract. adjusted to present value, (hereinafter ""Project

'1"hnIe Billma ShaRa"). The presc::Dt value calculation shaH be based upon a disc:cnmt factor equal to the average weighted interest COlt ofdebt relating to Project 'I'bree durinl the artirety ofthe oriJinal term ofProjcct Three.

(c) Project Four Allocation*

Section 308(a) of the Project FolD' Power Salea Contract obliptel the Authority to provide to each Project Four Pa:rticipant. and obligates 8I1ch Participant to take from the Authority. the output and services of Project Four bued upon the rata IIDd cbargeI establiabed by the Authority pumumt to Section 307(a) of tb.tI Project. Four Power Sales Contnet. Tho Authori~ and the Participant hen:by ape that during the Project Four Term Exte:Dsion Period the output and services IDd COD of Project Four shall be allocated to each Project Four Participant baled upon a pcrccntage derived by dividing the total paymarta made by each Project Four Participant for debt scmcc md for capital costa durins the entirety of the origioal tam of the Project Four Power Sales Contract, adjUlted to present value, divided by the total payments made by all Project Four Participants for debt 'service and capital costa for the entimy of the original term of the Project Four Power Sales Contract, adjusted to present value, (hereinafter ""Project Four Billina Sbarea"). . The presem value calculation shall be based upon a discount

&dar equal to the averap weighted interest cost ofdebt relating to Project Four duriq the entirety oftbc original tenD ofProjeet Four.

Additionally. effective U ofNovemba' 16,2033, which is the expiration date of the original tc:nn oftbc Project Four Power Sale. Contract, the Schedule of Project Four

• s*

Obligalion Sb8reI shall be 1JDe:aded 10 that each Project Four PaticiplDt"s Obligation Share lIball be equal to such Participant"s Project Four BilliDg Share.

SecdoD 3. the Authority hereby aerees that it shall Jiot extald Ihe tcml of8DY exiating geoeration debt. exclusive of existina debt pertaiDins to woridna capital aDd nuclear fuel worldna capital debt components. beyond the following dates: existing Project One geocratiOD debt tba11 not be ateDded beyond March I, 2026; cxistina Project Two generation debt shill DOt be extc:Dded beyoDd February 1, 2028; existina Project

'Ibree generation debt shall not be exteoded beyond May 1, 2030; and cxiltiDg Project Four geoeratiOD debt shall not be*exteDded ~ November 16. 2033.

Secdoa 4. The Powa- Sales Contracts u amended h~y abaIl continue in e1foct IUd Ire n:affirmed by the parties. Tezma Dot defined herein BrD to be defined u in .

the POwel' SlI1es Contraetl; Sec:UOD 5. This Amendmc:at shalJ become effective whea duly approved. aDd executed and delivered by the PlIrticipant, and whca executed and delivered by ~

Autborlty. Tbe Authority wiD only execute and delivc::r the Ammdmmt when it bas detmmiMd that the Ameadmeut or similar amc::ndmc:llu have been duly exocuted md delivered by each o(the cumlDt tbrt)'-Dine (49) Participants.

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IN WITNESS WHEREOF. the Municipal Electric Authority of Georgia has caused this Amendment to be executed in its corporate name by its duly authorized officers and. the Authority has caused its corporate seal to be hereunto impressed and attested; the Participant has caused this Amendment to be executed in its corporate name by its duly authorized officClS and the corporate seal to be hereunto impressed and attested. and delivery hereof by the Authority to the Participant is hereby acknowledged.

all of the date and yev tint above written.

MUNICIPAL ELECTRIC AUTHORITY OF GEORGIA BY--r::!.

Attested:

[SEAL]

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PARTICIPANT:

CflYOFADEL

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Attachment 3 Edwin I. Hatch Nuclear Plant Financial Assurance Requirements for Decommissioning Nuclear Power Reactors - 2009 Submittal As of April 1, 2007, Wachovia Bank was replaced as fixed income money managers by Agincourt Capital Management.

Also during calendar year 2008, Tanglewood Asset Management was bought by Novant Health, Inc, which is known as Novant Asset Management. The money management team and primary manager has remained the same throughout, and there was no fundamental change in investment philosophy or operational capability.

Edwin J. Hatch Nuclear Plant Financial Assurance Requirements for Decommissioning Nuclear Power Reactors (10 CFR 50.75(f)(1>>

Enclosure 4 City of Dalton, Georgia Response

~

Dalton UTILITIES February 26, 2009 Docket Nos.: 50-321 50-366 U. S. Nuclear Regulatory Commission ATTN: Document Control Desk Washington, D.C. 20555 Edwin I. Hatch Nuclear Plant Financial Assurance Requirements for Decommissioning Nuclear Power Reactors 00 CFR 50.75(0(1))

Dear Ladies and Gentlemen:

Pursuant to 10 CFR 50.75(f)(1), each power reactor licensee is required to report to the NRC the status of its decommissioning funding for each reactor or part of each reactor it owns on a calendar year basis, beginning on March 31, 1999, and every two years thereafter. The Board of Water, Light and Sinking Fund Commissioners of the City of Dalton, Georgia, d/b/a Dalton Utilities, hereby submits the enclosed information in accordance with 10 CFR 50.75(f)(1) for operating licenses DPR-57 and NPF-5 issued for Edwin

1. Hatch Nuclear Plant Unit 1 and 2, respectively. Southern Nuclear Operating Company, as the operating licensee and as an agent for the owner of the Edwin 1. Hatch Nuclear Plant, is providing this information to the NRC on behalf of Dalton Utilities.

Based on the information presented herein, there is reasonable assurance that the funding necessary for decommissioning the Edwin 1. Hatch Nuclear Plant, consistent with the NRC prescribed minimum set forth in 10 CFR 50.75(c), will be available on the expiration date of operating licenses DPR 57 and NPF-5.

Should you have any questions concerning this matter, please contact Tom Bundros at (706) 529-1035 or email tbundros({i)duti1.com.

Respectfully submitted, Don Cope President and CEO 1200 VD. Parrott, Jr Parkway " POBox 869 " Dalton, GA 30722 "706.278.1313 "706.278.7230 Fax "wwwdutll.com j1pliLillK

Enclosure Edwin I. Hatch Nuclear Plant The Board of Water, Light and Sinking Fund Commissioners of the City of Dalton, Georgia, d/b/a Dalton Utilities Ownership Percentage - 2.2%

10 CFR 50.75(f}(1) Requirement Unit 1 Unit2 2 2 1 The NRC minimum decommissioning estimate, $ 11,769,000 $11,769,000 pursuant to 10 CFR 50.75(b) and (c). 1 2 The amount accumulated at the end of the $19,591,824 $ 19,498,746 calendar year preceding the date of the report for items included in 10 CFR 50.75(b) and (c).

3 A schedule of the annual amounts remaining to be See Schedule in See Schedule in collected; for items in 10 CFR 50.75(b) and (c). Attachment 1 Attachment 1 4 The assumptions used regarding:

(a) rates of escalation in decommissioning 2.93% 2.93%

costs; (b) rates of earnings on decommissioning 6.68% 6.68%

funds; (c) real rate of return; and 3.75% 3.75%

(d) rates of other factors used in funding N/A N/A projections.

5 Any contracts upon which the licensee is relying None None pursuant to 10 CFR 50.75(e)(1)(v).

6 Any modifications to a licensee's current method None None of providing financial assurance occurring since the last submitted report.

7 Any material changes to trust agreements. None None NOTES:

1 The NRC formulas in section 10 CFR 50.75(c) include only those decommissioning costs incurred by licensees to remove a facility or site safely from service and reduce residual radioactivity to levels that permit: (1) release of the property for unrestricted use and termination of the license; or (2) release of the property under restricted conditions and termination of the license. The cost of dismantling or demolishing non-radiological systems and structures is not included in the NRC decommissioning cost estimates. The costs of managing and storing spent fuel on-site until transfer to DOE are not included in the cost formulas.

2 This number is based on NUREG-1307, Rev. 13, for the burial factor (Option 2) and the December 2007 values for labor and energy factors.

The Water, Light and Sinking Fund Commission of The City of Dalton, GA D/B/A Dalton Utilities Nuclear Decommissioning Funds Investment Balances December 31, 2008 en

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r CD Bank of New York Wachovia Bank Total Funds C.

C CarrvinQ Value Market Value Par Value Carrvina Value Market Value Par Value Carrvina Value Market Value Par Value i5" 0

Plant Hatch

r Unit 1 6,482,222 10,345,240 14,100,000 10,719,729 9,246,584 7,151,765 17,201,951 19,591,824 21,251,765 CD

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l Unit2 5,610,779 10,296,091 18,200,000 9,278,613 9,202,655 9,231,357 14,889,391 19,498,746 27,431,357  ::::l C

Cll Total 12~93,001- -20,641,331 ~2~OQ,0()0 19,998,342 18,449,240 16,383,122 32,091,343 39,090,570 48,683,122

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Plant Voatle C:::::T 3.3 til CD Unit 1 2,711,935 5,934,422 12,200,000 4,484,761 5,304,191 6,188,052 7,196,696 11,238,613 18,388,052

03.

CD~

Unit2 2,678,965 6,071,650 13,000,000 4,430,237 5,426,846 6,593,826 7,109,202 11,498,496 19,593,826 3 Cll Total 5,390,900 12,006,072 25,200,000 - - -a.914,997-10,731,038--12,781,8~ 14,305,898 22,737,109 37,981,878  ::::l Grand Total 17,483,901 32,647,402 57,500,000 28,913,340 29,180,278 29,165,000 46,397,240 61,827,680 86,665,000

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F:\2008 Nuclear Decomm Funds-NRC Filing (2) 2/26/2009