NL-11-0449, 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))

ML110890326
Person / Time
Site:	Vogtle
Issue date:	03/29/2011
From:	Ajluni M Southern Nuclear Operating Co
To:	Document Control Desk, Office of Nuclear Reactor Regulation
References
NL-11-0449
Download: ML110890326 (120)

Text

Mark J. Ajluni. P.E. Southern Nuclear Nuclear Licensing Director Operating Company. Inc.

40 Inverness Center Parkway Post Office Box 1295 Birmingham. Alabama 35201 Tel 205.992.7673 Fax 205.992.7885 March 29, 2011 SOUTHERN'\

COMPANY Docket Nos.: 50-424 NL-11-0449 50-425 U. S. Nuclear Regulatory Commission ATTN: Document Control Desk Washington, D. C. 20555-0001 Vogtle Electric Generating 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 NPF-68 and NPF-81 for the Vogtle Electric Generating Plant. On behalf of the licensed owners of the Vogtle Electric Generating 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.

Respectfully submitted,

~~r M. J. Ajluni Nuclear licensing Director MJAlLWW/lac

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-11-0449 Page 2 cc: Southern Nuclear Operating Company Mr. J. T. Gasser, Executive Vice President Mr. T. E. Tynan, Vice President - Vogtle Ms. P. M. Marino, Vice President - Engineering RType: CVC7000 U. S. Nuclear Regulatory Commission Mr. V.M. McCree, Regional Administrator Mr. P. G. Boyle, NRR Project Manager - Vogtle Mr. M. Cain, Senior Resident Inspector - Vogtle Georgia Power Company Ms. A. P. Daiss, Vice President, Comptroller and Chief Accounting Officer 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

Vogtle Electric Generating Plant Financial Assurance Requirements for Decommissioning Nuclear Power Reactors (10 CFR 50.75(1)(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 404.506.6766 Fax 404.506.3128 apdaiss@southernco.cDm March 4, 2011 GEORGIA'\

POWER A SOUTHERN COMPANY Docket Nos.: 50-424 50~425 U. S. Nuclear Regulatory Commission ATrN: Document Control Desk Washington, D.C. 20555 Vogtle Electric Generating 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. Accordingly, Georgia Power Company (GPC) hereby submits the enclosed information in accordance with 10 CFR 50.75(f)(1) for operating licenses I\JPF~68 and NPF-81 issued for Vogtle Electric Generating Plant Units 1 and 2, respectively. Southern Nuclear Operating Company, as the operating licensee and as an agent for the owners of the Vogtle Electric Generating 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 of the Vogtle Electric Generating 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 NPF-68 and NPF-81.

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 Accounting Officer APD/LWW Enclosure

Enclosure Vogtle Electric Generating Plant Georgia Power Company Ownership Percentage - 45.70/0 I

i 10 CFR SO.7S(f)(1) Requirement Unit 1 Unit 2 1 The NRC minimum decommissioning estimate, 2 2

$210,076,000 $210,076,000 pursuant to 10 CFR 50.75(b) and (c). 1 2 The amount accumulated at the end of the $104,335,000 $107,725,000 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 31958 Per GPSC Docket 31958 (a) rates of escalation in decommissioning 2.42% 2.42%

costs; (b) rates of earnings on decommissioning 4.42% 4.42%

funds; 2.00% 2.00%

(c) real rate of return; and (d) rates of other factors used in funding None None i projections.

I 5 I 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 modifications since the No modifications since the of providing financial assurance occurring since last report. Funding is to an last report. Funding is to an the last submitted report. External Sinking Fund with External Sinking Fund with the source of funds from the source of funds from Traditional Cost of Service Traditional Cost of Service ratemaking as ordered by the rate making as ordered by the GPSC in Docket No. 31958. GPSC in Docket No. 31958.

7 I 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. 14, for the burial factor (Option 2) and the December 2009 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 Vogtle VOGTLE 1 VOGTLE2 SEG OF ENDOF SEGOF ENDOF YEAR FUND FUND YEAR YEAR FUND FUND YEAR FUND SAL EARNINGS CONTRIB FUND SAL FUND SAL EARNINGS CONTRIS FUND SAL 2011 104,335 4,612 0 108,947 107,725 4,761 11m 2012 108,947 4,815 0 113,762 112,486 4,972 11 2013 113,762 0 118,790 117,458 5,192 122,650 118,790 0 124,041 122,650 5,421 128071 124,041 0 129,524 128,071 5,661 0 133,732 129,524 0 135,249 133,732 5,911 0 139,643 2017 135,249 0 141,227 139,643 6,172 0 145,815 2018 141,227 0 147,469 145,815 6,445 0 152,260 2019 147,469 , 0 153,987 152,260 6,730 0 158,990 2020 153,987 6,806 0 160,793 158,990 7,027 0 166,017 2021 160,793 7,107 0 167,900 166,017 7,338 0 173,355 2022 167,900 7,421 0 175,321 173,355 7,662 0 181,017 2023 175,321 7,749 0 183,070 181,017 8,001 0 189,018 2024 183,070 8,092 0 191,162 189,018 8,355 0 197,373 2025 191,162 8,449 0 199,611 197,373 8,724 0 206,097 2026 199,611 8,823 0 208,434 206,097 9,109 0 215,206 2027 208,434 9,213 0 217,647 215,206 9,512 0 224,718 I 2028 217,647 9,620 0 227,267 224,718 9,933 0 234,651

~'267 10,045 0 237,312 234,651 10,372 0 245,023

'1i 2030 7,312 0 247,801 245,023 10,830 0 255,853

~"309 2031 247,801 10, 0 258,754 0 267,162 2032 258,754 11, 0 270,191 I 267,162 11,809 0 278,971 2033 270,191 11,942 0 2 278,971 12,331 0 291,302 2034 282,133 12,470 0 294,603 291, 12,876 0 304,178 2035 294,603 13,021 0 307,624 3,445 317,623 2036 307,624 13,597 0 321,221 317,623 14,039 331,662 2037 321,221 14,198 0 335,419 331,662 14,659 346,321 2038 335,419 14,826 0 350,245 346,321 15,307 361,628 2039 350,245 15,481 0 365,726 361,628 15,984 0 377,612 2040 365,726 16,165 0 381,891 377,612 16,690 0 394,302 2041 381,891 16,880 0 398,771 394,302 17,428 0 411,730

~

398,771 17,626 0 416,397 411,730 18,198 0 429,928 416,397 18,405 0 434,802 19,003 0 448,931

~

2044 434,802 0 454,020 1 19,843 0 468,774 2045 454,020 0 474,088 4 20,720 0 489,494 2046 474,088 20,955 0 495,043 4 21,636 0 511,130 2047 495,043 11,116 0 506,159 22,592 0 533,722 2048 23,591 0 557,313 2049 55 12,811 0 570,124

Vogtle Electric Generating Plant Financial Assurance Requirements for Decommissioning Nuclear Power Reactors (10 CFR 50.75(f)(1>>

Enclosure 2 Oglethorpe Power Corporation Response

OglethorpePower February 25,2011 Oglethorpe Power Corporal,on Rocky Mounta~n Hydroelectric Plant Docket Nos.: 50-424 4050 Big Texas Va:jey ?oad NW 50-425 Rome, GA 301659754 phone 706-290-5400 fax 706-290-5493 U. S. Nuclear Regulatory Commission AT1N: Document Control Desk Washington, D.C. 20555 Vogtle Electric Generating Plant Financial Assurance Requirements for Decommissioning Nuclear Power Reactors (10 CFR 50.75(Q(l>>

Dear Ladies and Gentlemen:

Pursuant to 10 CFR 50.75(£)(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. Accordingly, Oglethorpe Power Corporation (OPC) hereby submits the enclosed information in accordance with 10 CFR 50.7 5(f)( I) for operating licenses NPF-68 and NPF-81 issued for Vogtle Electric Generating Plant Units 1 and 2, respectively. Southern Nuclear Operating Company, as the operating licensee and as an agent for the owners of the Vogtle Electric Generating Plant, is providing this information to the NRC on behalf of OPC.

Based on the information presented herein, there is reasonable assurance that the funding necessary for decommissioning ofthe Vogtle Electric Generating 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 NPF -68 and NPF-81.

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 ILLW Enclosure

Enclosure Vogtle Electric Generating Plant Oglethorpe Power Corporation Ownership Percentage - 30%

Unit 1 Unit2 10 CFR 50.75(1)(1) Requirement The NRC minimum decommissioning estimate, 2

$137,905,000 $ 137.905,000 2 pursuant to 10 CFR 50,75{b) and (c). 1 2 The amount accumulated at the end of the $ 53,650,686 $ 48,598,400 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

• • "'."""' ...m _ '*.. _____ , ~ " ' ...... _ _ _ ~ . _____ ~ _ ~

4 The assumptions used regarding:

(a) rates of escalation in decommissioning 2.42% 2.42%

costs; (b) rates of earnings on decommissioning funds; 6,00% 6.00%

(c) real rate of return; and 3.58% 3.58%

(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. 7S( el{ 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. August 2010 executed August 2010 executed revised Trust Agreement. revised Trust Agreement Draft provided to NRC March Draft provided to NRC March 2010. 2010.

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 stari ng spent fuel on-site until transfer to DOE are not included in the cost formulas, This number is based on NUREG-1307, Rev. 14, for the burial factor (Option 2) and the December 2009 values for labor and energy factors.

Attachment 1 Schedule of the Annual Amounts Remaining to be Collected Oglethorpe Power Corporation 2010 NRC MINIMUM Vogtle 1 Vogtle 2 Earnings Rate: 6 Earnings Rate: 6 Balance Balance Balance Balance Year Begin Year Earnings Contribution End Year Year Begin Year Earnings Contribution End Year

-~---------- ----~------------.--- - ----- -----_._- ------- ~--------- -------------------- --------~--- ------------------ -------------------

2010 48,457,4<)5 2,907,~4 0 53,650,686 2010 43,894.171 2.633,650 0 48,598,400 2011 53,650,686 3,219,041 0 56,869,727 2011 48,598,400 2,915,904 0 51,514,304 2012 56,869,727 3,412,184 0 60,281,911 2012 51,514,304 3,090,858 0 54,605,162 2013 60,281,911 3,616,915 0 63,898,825 2013 54,605,162 3,276,310 0 57,881,472 2014 63,898,825 3,833,930 0 67,732,755 2014 57,881,472 3,472,888 0 61,354,360 2015 67,732,755 4,063,965 0 71,796,720 2015 61,354,360 3,681,262 0 65,035,622 2016 71,796,720 4,307,803 0 76,104,523 2016 65,035,622 3,902,137 0 68,937,759 2017 76,104,523 4,566,271 0 80,670,795 2017 68,937,759 4,136,266 0 73,074,025 2018 80,670,795 4,840,248 0 85,511,043 2018 73,074,025 4,384,441 0 77,458,466 2019 85,511,043 5,130,663 0 90,641,705 2019 77,458,466 4,647,508 0 82.105,974 2020 90.641,705 5,438,502 0 96,080,207 2020 82,105,974 4,926,358 0 87,032,333 2021 96,080,207 5,764,812 0 101,845,020 2021 87,032,333 5,221,940 0 92,254,273 2022 101,845,020 6,110,701 0 107,955,721 2022 92,254,273 5,535,256 0 97,789,529 2023 107,955,721 6,477,343 0 114,433,064 2023 97,789,529 5,867,372 0 103,656,901 2024 114,433,064 6,865.984 0 121,299.048 2024 103,656,901 6,219,41.J. 0 109,876,315 2025 121,299,048 7,277,943 0 128,576,991 2025 109,876,315 6,592,579 0 116,468,894 2026 128,576.991 7,714,619 0 136,291,611 2026 116,468,89.J. 6,988,134 0 123,457,027 2027 136,291,611 8,177,497 0 144.469.107 2027 123,457,027 7,407,422 0 130,864,449 2028 144,469,lm 8,668,146 0 153,137,254 2028 130,864,449 7,851,867 0 138,716,316 2029 153,13 7,254 9.188,235 0 162,325,489 2029 138,716,316 8,322,979 0 147.039,295 2030 162,325,489 9,739,529 0 172,065.018 2030 147,039,295 8,822,358 0 155,861,653 2031 172,065.018 10,32.1,901 0 182,388,919 2031 155,861,653 9,351,699 0 165,213,352 2032 182,388,919 10,943,335 0 193,332,254 2032 165,213,352 9,912,801 0 175,126,153 2033 193,332,254 11,599,935 0 204,932,190 2033 175,126,153 10,507,569 0 185,633,7:!2 2034 204,932, 190 12,295,931 0 217,228,121 2034 185,633,722 11,138.023 0 196,771,745 2035 217 ,228, 1 21 13.033,687 0 230,261,808 2035 196,771,745 11,806,305 0 208,578,050 2036 230,261.808 13.815,709 0 244,077 ,517 2036 208,578,050 12,514,683 () 221,092,733 2037 2~.077,517 14,6~,651 {) 258,7 22, 168 2037 221,092,733 13,265,564 0 234,358.297 2038 258,722,168 15,523,330 0 274,245,498 2038 234,358,297 14,()61,498 0 248,419,795 2039 274,245,498 16,454,730 0 290,700,228 2039 248,419,195 14,905,188 0 263,324,982 2040 290.700,228 17,442,014 0 308,142,241 2040 263,324,982 15,799,499 0 279,124,481 2041 308,142,241 18,488,534 0 326,630,776 2041 279,124,481 16.747,469 0 295,871.950 2042 326,630,776 19,597,847 0 346,228,623 2042 295,871,950 17,752,317 0 313,624,267 2043 346,228,623 20,773,717 0 367,002.340 2043 313.624,267 18,817,456 0 332,441.723 2044 367,002,340 22,020,140 0 389.022,480 2044 332.441,723 19,946,503 0 352,388,227 2045 389,022,480 23,341,349 0 412,363,829 2045 352,388,227 21.143,294 0 373,531,520 2046 412,363.829 24,741,830 U 437,105,659 2046 373,531,520 22,411,891 0 395,943,412 2047 437,105.659 26,226,340 0 463,331,998 2047 395.943,412 23,756,605 0 419,700,016 2048 419.700,016 25,182,001 0 444,882,017 2049 444,882,017 26,692,921 0 471,574,938

Vogtle Electric Generating Plant Financial Assurance Requirements for Decommissioning Nuclear Power Reactors (10 CFR SO.7S{f)(1>>

Enclosure 3 Municipal Electric Authority of Georgia Response

POWER Docket Nos.: 50-424 50-425 U. S. Nuclear Regulatory Commission ATIN: Document Control Desk Washington, D.C. 20555 Vogtle Electric Generating 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. AccordinglY,Municipal Electric Authority of Georgia (MEAG) hereby submits the enclosed information in accordance with 10 CFR 50.75(f)(1) for operating licenses NPF-68 and NPF-81 issued for Vogtle Electric Generating Plant Units 1 and 2, respectively. Southern Nuclear Operating Company, as the operating licensee and as an agent for the owners of the Vogtle Electric Generating Plant, is providing this information to the NRC on behalf of MEAG.

Based on the information presented herein, there is reasonable assurance that the funding necessary for decommissioning of the Vogtle Electric Generating 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 NPF-68 and NPF-81.

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

Respectfully submitted, M~NIC: EpTRIc;7OF GEORGIA,

~

by, es E. Fuller enior Vice President, Chief Financial Officer ILWW Mllni('ipal Electric Authority of Georgia 1470 Riveredge Parkway NW Enclosure Adanta. Georgia ~0~28-4686

Enclosure Vogtle Electric Generating Plant Municipal Electric Authority of Georgia Ownership Percentage - 22.70/0 10 CFR 50.75(f)(1) Requirement Unit 1 Unit2 1 The NRC minimum decommissioning estimate,

$104,348,0002 $104,348,0002 pursuant to 10 CFR 50.75(b) and (c). 1 2 The amount accumulated at the end of the $81,287,554.15 $76,299,280.82 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 Attachments 2&3 Attachments 2&3 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.

1 This number is based on NUREG-1307, Rev. 14, for the burial factor (Option 2) and the December 2009 values for labor and energy factors.

Attachment 1 Schedule of the Annual Amounts Remaining to be Collected

MEAGPOWER Decommissioning Funding Plan Nuclear Decommissioning Fund - Vogtle 1 (Dollars in Thousands)

Calendar Balance at Interest Less: Balance at Year Be~. of Year Contributions ~1) Earnin~s Fees End of Year (A) (B) (C) (D) (E) 2010 81,288 2011 81,288 4,512 (127) 85,672 2012 85,672 4,677 (132) 90,217 2013 90,217 4,851 (136) 94,932 2014 94,932 5,034 (142) 99,825 2015 99,825 5,228 (147) 104,905 2016 104,905 5,432 (153) 110,184 2017 110,184 5,647 (159) 115,673 2018 115,673 5,874 (165) 121,381 2019 121,381 6,113 (171) 127,323 2020 127,323 6,365 (178) 133,509 2021 l33,509 6,631 (186) l39,954 2022 l39,954 6,911 (193) 146,672 2023 146,672 7,207 (202) 153,677 2024 153,677 7,519 (210) 160,985 2025 160,985 7,847 (219) 168,613 2026 168,613 8,194 (229) 176,578 2027 176,578 8,559 (239) 184,899 2028 184,899 8,945 (250) 193,594 2029 193,594 9,351 (261) 202,685 2030 202,685 9,780 (273) 212,192 2031 212,192 10,232 (285) 222,139 2032 222,139 10,708 (298) 232,549 2033 232,549 11,210 (312) 243,447 2034 243,447 11,740 (326) 254,861 2035 254,861 12,299 (342) 266,818 2036 266,818 12,888 (362) 279,344 2037 279,344 13,509 (379) 292,473 2038 292,473 14,164 (397) 306,239 2039 306,239 14,854 (417) 320,677 2040 320,677 15,582 (447) 335,812 2041 335,812 16,349 (468) 351,692 2042 351,692 17,158 (491) 368,359 2043 368,359 18,010 (515) 385,854 2044 385,854 18,910 (540) 404,223 2045 404,223 19,858 (567) 423,514 2046 423,514 20,857 (595) 443,777 2047 443,777 1,829 (52) 445,554 Total 374,831 (10,564)

Options: Level Payments Footnotes:

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

N:I005154103233612011 Amts Remain Collected-v2.xls Page 1 of 1 Date: 3/2/2011; Time: 12:44 PM

MEAGPOWER Decommissioning Funding Plan Nuclear Decommissioning Fund - Vogtle 2 (Dollars in Thousands)

Calendar Balance at Interest Less: Balance at Year Be!1i.ofYear Contributions (1) Earnin~s Fees End of Year (A) (B) (C) (D) (E) 2010 76,299 2011 76,299 4,238 (119) 80,418 2012 80,418 4,399 (124) 84,694 2013 84,694 4,569 (128) 89,135 2014 89,135 4,749 (133) 93,750 2015 93,750 4,938 (139) 98,549 2016 98,549 5,137 (144) 103,542 2017 103,542 5,347 (150) 108,739 2018 108,739 5569 (156) 114.152 2019 114,152 5,803 (163) 119,793 2020 119,793 6,049 (169) 125,673 2021 125,673 6,309 (177) 131,805 2022 131,805 6,583 (184) 138,205 2023 138,205 6,872 (192) 144,885 2024 144,885 7,177 (201) 151,861 2025 151,861 7,498 (209) 159,150 2026 159,150 7,837 (219) 166.769 2027 166,769 8,194 (229) 174,734 2028 174,734 8,571 (239) 183,067 2029 183,067 8,968 (250) 191,785 2030 191,785 9,387 (261) 200,911 2031 200,911 9,829 (274) 210,466 2032 210,466 10,295 (286) 220,475 2033 220,475 10,786 (300) 230,960 2034 230,960 11,304 (314) 241,950 2035 241,950 1l,850 (329) 253,471 2036 253,471 12,425 (349) 265,547 2037 265,547 13,032 (366) 278,213 2038 278,213 13,672 (384) 291.502 2039 291,502 14,347 (402) 305,447 2040 305,447 15,059 (432) 320,074 2041 320,074 15,808 (453) 335,430 2042 335,430 16,599 (475) 351,554 2043 351,554 17,433 (498) 368,488 2044 368,488 18,312 (523) 386,276 2045 386,276 19,238 (549) 404,966 2046 404,966 20,216 (576) 424,605 2047 424,605 21,246 (605) 445,245 2048 445,245 22,332 (636) 466,942 2049 466,942 3,918 ( 118) 470,742 Total 405,899 (l1,457l Options: Level Payments Footnotes:

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

N: 10051541032336\2011 Amts Remain Collected-v2.xls Page 1 of 1 Date: 3/2/2011; Time: 12:44 PM

Attachment 2 Vogtle Electric Generating Plant Financial Assurance Requirements for Decommissioning Nuclear Power Reactors - 2011 Submittal Project One Power Sales Agreement

e.

POWE~ SALES CONTRACT Btt'Wct.ll 14uNICIPAL ELECTRIC A.UTHORITY OF, GEORGIA Pd. ' '.

. CI'l'Y OF

'1"h1s Coutnct, made aDa etircd hlto u of October 1. 1975,' by ud baem th.

Jd:lD:llclpal Electric Authority of Georaf... &l1ublIe. 'bocl7 torpor.tAI Ill! POlttS4 Ill! .. 1Iu'one.

c~t:!q of the Stat. of Gt.ord& herdnafttr r,ometfma 4ufpatld as the Authority. (tl&t.

ed b1 the ~CIl1I of,I GL L. 1975, ,. 107, ... a:DUldec!, ad CITY OF

.. politlw .~bc:!ivislOD of the Stat. o! Georria, bueb,ali.cr lometim" duIiU&W ai the Par*

• ~clp&Dtt WITHE SSETH THAT:

WBEKEAS, the Partidppt bas JS.td for all tcanom1cal, reUabJ, IO'Ul'c, of electrlc powu . . mUI7 to meet the rrowllll' demand.t of Sta custol:llerS 1U:l.d. h... detumlDed to

'purchue .ach .J.ctrlc. PO"11' e4 .iw':Jy frozza ruoureu "OWned,' contro)Jtc!, 01' P~1.il b7the Authority. &l'Iel

" WEEllEAS. the Autborlt;r wUl take or e&ual to be t.akm aU ,up. IllCeuar)" to Itcm:.

IUch I~ plJ'Dllu. UCIIIlIQ, ana appronll q Il& DecUlIU7 fol', ed 1Ir1n then litO.

cHCI .... Ipp:oprllt. with flnal 4"'111, 1'U1anc1ar &lid ac:quf.1Ucm or conatrw::tloa of those' fadlltla hartln dllCrlW IDel duJpaW as th.ProStetforth. '\1Pplyof tlectric~1t and

'alrD to the PartSdlIant ..'Cd to all otlll1' poUUwlubcivtslou .coutridlril1rit1& th, Autlacr.

StJ thutfor, ud. will lell the output UIII luvica ~ IUch fadDUca PlD'lllUlt to tIIb Contract and t.D contracta 'sullltalitfall7 IdmtfCll to Wi COJItnc:t with other ];Iolitlc:al ,u'bal..,sUODS, dafpatlll toptbu :with: the ParlIc:tplnt ... th.., PuUdpanu, oed. .'

WHEREAS, In ad4lt1O'C to the 1.1. to the l'uticiPIAts of \he oatput ed aeriic:u of the PHject. tla, .A.utllonty \\ill ilia. obblD. tor Itld provide to tli. Participu.ts the P&.rtSeflllllts' Supplt=lDtal,Balk l'o"a: SDPpbr, as h~~r c1dbed...tid WBEllBAS, fa order to eDahle the .luUxorftv to fuu. Its rtVII1UI boD.ctl ttl p..,. the ecctS of acquirill.f a¥ COD&tnctfD, th. Project, it II nlcUlU7'for the Authorit:y to hay. blndinl contneb ..nth ** poHtfcal IUbCUvWODa of, the Stat. 01 Georaia ... may debrmil1e. PtlUGlDt

~ autlsorif.7 of I Ga. 1.. 1975, p. 107, AI Jmuc:lld, to contract 'WIth Us. Authorlt:t, cd all Pat

,mad.ll"l4lufnd to be JD&c!afn accordanc. with the provUlolU of A.:.rtic1. DI of IUch contracts, bl::Juclfn, PlflIIt.Ilts rtqufud to 'be 1:aId. under Arlfde tu 0( this Contract. u.d an other P&1'.

ml1'1t1 att.ribvtahle to the Ptoj~t or to 111* .luua] .Prolect Costa, ... h.ulD&.ftirddSued, ~ b.

mid, fa accordQU wltl:& or PUI'IUlDt to any otlJer pr01'I.doD ot ibis Contuct 1m! Illeh othu CDlltra.cts.haD la,_ pIedsed as 1~9' for the p.r.:ymtDt at IVcll.,BOJIds; .'

1

.e NOi'l"uKE.FORE:

Fol' and In consltleratloa of the preml.u and the mutual connAta IDe! a.rreem'lll:.s b.~

inaftlr lit 'forth. anc! fA orcler to pay the Authorit:r for ita coati at provie!lq (I) tht Part!..

cpu'" Batlt_lIlt Shart.... hUflDlftC'dfflned, of the output and .errJeta of uc:h fadlit7 oftha Project ~ (D) thl 'artJdpa:at'. Suppl'MeDtaJ .Bulk Power Supply. it 1I.1.1I'eec1 br*ad.

~twll!D the puifu hereto u follow.:

ARTICLE I

'I'E.R.MOF CON~CT, DEFlNlnONS StdlOll101. Tu:m.

Th. term of th1a Contract thaU bel'1Jl 1JId, this Contnc.t abU CQutltut.e & blDdlnw obt£..

p.l:ioa of th. pa:rtl1S hereto from and after iti execution br the Jut p&rt:r to el\*ltlt. th.

uma. Tha ObU...tfOZl at the A.uthority to )rovid. electric power am! 111IEO' una..... the >>1"0 visions of this CODtnct .uU bepD with the first Issulnet" ,lid 4IUYU1 by aaIe! Authont)"' 01 aD,. of ltl Bonda whtch Ira aathomed to h iuued 1:Ir the proddou of I GL L. 1'15, p ..101.

u 1UD1I1d&d. or. fa lb. event 2l0tu of the Authority are blued In Inticip&Uon of the fU'lWlC1

• crf BODdI. r.ach obU....tloJl shalJ beatit with tb 11I\Wlc:a 1.114 a.UtlU1 of IUch. bold Ultidp&tf.ou notu. 'l'ht tum of this Contract ,hall COl1tinUI In fuU force ucl effect UJltU IUch trm, Dot a:ccMdf.Ac ftltr tun. .... IU of the A.uthorltYl .Bonds ... laen1l1aftU'" cllftDld 01' nota WI.lIci

'm Atfdpat:fOD of the 1s111&UC1 of BolUla &n4 the lnterat thlHOU ha,ve bep pale! or prorillon for paJ1lllCt shall hlYI belli. mad. in aCcordlncl with tlIl pIO~OSUI of the Bog aeaol\1tioll

, or urdU ItICh time ... the ProSect Ihall IN reijrld troz:uen1a. d.c:om.=1.roZlld.. 02' ilispolld of by thl Autlaorltr. wlUch..,.da1r.ter. . . . -' .' .

$e<<:Uon 10.2. Del1JliUof\l:ute! EzplaaaUoll' ~f 'l'lnnt.

. As usmhuein:

(a) "Act" Jha.U mun that certain Act of lb. 1116 IUlioll of tb. o."tral Aaem'bly of the State of Geortl' complied anti pubUthed in I Ga. L. 1915, p. 10'1, &a thll&mtlwl QteD her..

Wort 'or maT. be hlrwt.r 1mau:ltc1. ' ..

(b) ..Au,aal ProSect Costl" ',haD mUb, 'WIth rupect to a Power SVPllJ,. Yur, to tbl 'Co tmt not paId II & part of thl COib of AJ:.quisltfotl and CImItruetion. aU coatll anc! ltXpt!I.Iet of the Autllorib' paid. b7 tluI AuthodQ- for uch of the **neratin.. f&CilnS. Ad the tnaamJ...

liou vstem fadlltlu comprblnc the Profitt durinl IUch POlfD' Suppq Yea.r aUoc&ble t.o the Project uu:tudIDI'. but .l2ot limited to, thOiI 1te."ttS* of c:GIt azul I¥p.nle re'ferrid to III 'IrtiOD 806 (b) .l1d (c), hereof*. u .Annual Project GlDuaUoD 'FLxed Char,es, O~ A:nn\IIJ Project GlnlrI,tfOD Coati, .Annual hojlet TranamJllion Fixed Ch&t"., .nc1 Other A.:nuwU Pl'Ojt:c:t

'lransm.li.lon COII:t. " . ..

. (el "Annual SUppl.m:I:atal COlts'* ahaU meaD :\011 coall ancl expen.sa of the A.llthOritr .

aDoabZ. to thI purc:lwln.. or turulshlna of Suppllmtnt.tl Bulk Power Supply to the PAftW..

lI&uts. . .

(clJ "ApuaI Systlm Buifrlt" shall mont with rapid to. POlYII' Supplr Year, thlllmds et.ad.opt.ld bY thl Authority not llu thaa thlrf;y d.,.. prior to tlla blrrlDniq of auch PQWII' Supply Yur wlaleb. bud,lt shill itemizi uUJIlatlll oi ADDu1 ProJec:t OOlta 1114.A.Paal Sup p1ement.t.l Costs uG all rIVIDUII, income. or other funu to be ..>>pUed to .such COlt.. rupee:.

U,tl7, for IDd IppJlcabll to Juch Power Supp17Xu.r or. 121 the can of.an amllX!e4luc:b Bud.!*

• t, far and appUcabll to ~ueb. Yu.r tar th, I'Ill:uJndu of IUch Power Supp17 YI&1'.

2

e.l "BUlInr Statement;" ahaU Mean the written statement ,Prepared or c:uued to ~ >>re.

pared montbl,. bt the Authorib' that .han 1M ba..d upon th. Anaual S;rrtIm Bud,d 04 upou the -.muded MDual S1lItem Bu4pt adopted by tha Authorlt,. p'unuu~ to StctloD 202 bl1'lKIt, rand. th&t IhI1l ahow thl mt;lnthb' amoUDt to bl p&14 to the Authority lIT the Puticlpa:n\ fa ac cordance with the provtsfonl of SIdIODI Sor ed 403 hereof. "

(t) . "Bonda" shan mea'll thtbondJ laued 'bl the Authorit,. ,P1lrIcmt to thl pNVtdone of "

th. 'BoM Ruolutlon to f1UDCe or reflD&l1CI the Colt of A.C(UtlltiOI1 ad. CombuctioD 01 the Pro,flet. whither or Dot Illf wile of .uels bo11d4 ..ball bl lubordLuted u to P&)'DleIlt to any othu IsSUI ot auc4 bow. i.nd IW Include additional Bondt haued Pl1l'luut to tlut provi slou 01 SICtloD 501 llulilf and rtfuudlnl' Bonda wued. plU"Suant to {he pn'fisiOl'lS of Stc i;fOll 502 blt'lDf.

Cll "Bond aaO~UOD" .hall Ullin the l'ower Kntrltle Bond a.,olutlon aDd anySuppl..

ment&l POWit' RevIDUI Bond l'lllolutiOD to be adoptld by.the Autllorit.y and acctpted b, the Trustel and thl Coo'l.rJd,tI-(if illY) thl1'IUDdU' for'the bmaf1i of thl ownU'1 oCthl Bouds "'blch shall p~oW1. tor the wuance'of Ncb BoI1d.. a copy of which Powu_Revenu. Bond 11t.sclution aDd Ffnt SUpplemental POWit' Rlvlllul Bond R.tlClution in Illbat.lntially the fonn to be adopted by the Authority aha.Il b_ on 11.11 In the recordl ot tbe Putlcfptnt, (h) "Bulk POW'1f SU>>l:r" .ball mUll, \'Vith respect to a Participant. all ellCtric powlr ud meIV requifecl by RcA Puticiput l:n. exCIU of that amoUlSt' (l) IUPPUtcl bt aD7 glllU ation aDd tnnamlufoll resources ownec! 'by IUeh PartrcIpant on the dtedlve. ute of tlds Con tract, dn' rec:tivtd bYIllcll ParUdput troll:!. the Southustuu Powv .Adml:a.J.tr&Uon (SEPA). anel (fU) procured by IIlch: Partldput fr= altm;aate 'bulle po,,"r aupply :rao'lll'CU 111 aeeon1a.ac:. w:tth the provWou of SIdIOD 404, bullOf. . . "

(I) "ComrurcIal OperatJon Dat... lhiJ1 mUD, with rapid to each ,acUity of u!.o Proj ed, the bq:f,Jm.IDr at till day oD w1l!d1luch faeWt;r of tl\e Projlct iI. !D thlopblem of the Author*.

itT, produdDr anel eltH'Verlq .lectric PG"fa' &D4 elW'lT for COI'.lUl1U'dal Ule. p:oTldea, bow

.ver, in th_ ....qt &Dr .uch t&dUv III produdq and de}iveriD, electric power amel eJlll'l1 tor commercr.d UII OD the data of &eq,uflftfon of thl AuthoritTi (lltued tUrein, the Author itY may establish & Commc.n:l&l Opva.tiOD "Date. tor IUcb fadlib' ,.,hJ~ date aball be 't'Ifthia ..

ft&lCIubJ. &:at of the d'tectiYI date of Reb. aeQ.u!eJtloll., ,

(1) "CouwtUaar Eufluler' ,hall mUD aD uaJiDetI' or IIl!fzaeerlzlr firm 01 utlow repu tation ba'f'iDl'demOlLltraW upUU.. in the tleld of elldric power .(ItIl~&tlo~ t:rannnia.loD, paWn' IUPPly, elec:tric ut1lity' opua~cu, rata, and flulb!lit7. "

(k) "Cozlfact" and "PO"'1t' Sal ... Contracts" IbaJl mean. rupecUvtl,. tbIa eontnet with the l'artJeJpent and all Power Sales Contracu. lncludln, this Cca~, subitaatlaJ11 Idlat1c:aJ hedto Intarad Into by the Authority and a Putldpant; In each CUI u the

'"lI.Dle mal be "'Ilded !'lom thae to tfmL ' '" " "

(1) "Colt of A.cqullftlOl1 aDd- CcnatrucUo:o" shiD UlUD, toth. ~t nottuclueled. In Ali DUal Proltct Costs, all costs of uel e:r;pena.. ot )lIADDInl', desfniul'. KClulrlna'. COl1ltrac:tiu" ixutalUnr, I.IIllJuandll, the ProSect, pl&cbi, the Pndect In operatfon. decommlslfozUDr, or dt=po..l of tile. ProjlCt, uel obtdnlna aovuame.at.a] approvall, certJftcata. pu'ZIlIta and JiceDSU 'WitliltrplCt therlto heretofore or hereafter paid or iDcurrid bT the A.uthol'it,. and "1,Day lDclud., fll addltfoll and. Without 1.fJD1taUOD, t.h'I foUowlDr: "

(1) worJdll1' c:.apltaland rUlrY. In lac::h amoullu u may be atabliahed ,purS1l&Dt to tbe :Boud lluolut1on. " .

" (2) Inlera' aecrufnr In 'Wholl Ol!' in part 011 BODU :prior to and d~ l:onstruct:rOD aDeI for such ufdltfCl2al ,perIod IS thl A.utll.o~ty llU.Y ru.soDabb' d,termilll to be D~17 S

for tU piadul of lb. Project or IllJ facWt,r therIOt fD. operatiou ID aecordane. with tha proriafollS of the BOlle! ltuolutfon. " . '

, (8) &cqullitfon of lnlt!al fuel tor eaell 'lueraHon f&cnitJ of. the ProSect ana work Ins ,capital aDd nsUYu thae!or ,Dd. vorJdDf capltallDd rtSIt'I1I10r nlo&d futI.

(4) th. dlPOlit II' d.poaJt& from th. 'procl~ Of BOlda faal1N to 1luttcl.ueh cost.

,in Of :fund or IcCOlUtt ut&blbhec! PtU'SUI1t to the Bond RQolutiOll to mHt D.~ Sit'":

'Vica fueI'Ve requirtlUnb for BondI,.

(6) the deposi\ or depoaita frOEQ the \'Iroc-w. of BOI1da.lualCl to fllWl.CI 1u.c:A cQllta 1111111 fda. or secollllts ut&bl.lsbed pursuant to 'lb. Boud RuoIuUoo as rtJvv_ fm: r..

In,,;1Ils aDd rtp1&ctmel1b, ..UrlDl.nt from *.mee. c!ecoll::&Zll.lulouq or dlapo.a1 of 1II'ol:r smiratinl' f&c:W1:7 of the Project or coutlu,ccl.,

C6} ~r and tlltlftr celta InNmd by ~. J,utl!odt}r.' ,

(1) preUmhuty fDvestl:p.tion and d<<ftlopment eoatt. _peeMl f,a. C;gntnl:tol'l',

feu: cosU, of labar, m&ttdals., Iqwpment, I.l.~ty .mica and su~plWl and ,11111 and finUc1n, costs, (8) III eOlt. ot InIun.nce appUc.ah1e to~. periot! 0' cOll.ltrutiion. and (9) all othtr coltlinclU'l'ed by the Authority and proper'l1 al/.oeable to the acqulsition and con.ttructJon of th,'Project. fncludlnl aU costa nMnced by the lnwl,ace of additional Bondi pur1tWlt to s.cUon 501. hereol.

"<=) "Debt Se.t'Yie.- shall rutan, 'With :respect to any'perlod. the arp'epta of the.lllodt.

requIred by'the Bond RuoluUoa to b. 'Pud durin.. Aid plriol bsto IDY flUId or facia creat.d

, by the lJoucllbsolution tor the 101. 'PUl'pOIe of ,armi ,tAt pritlC1pal (lnelud.lnl' .1DJdD.r fU1ld

'lnauUmmu) of ud lIremium. it any. and inttrot on all the BOlla 1roD\ time to time outlituu!.

In... u the .aml IhIU beeorue due, Pro1'ir!td, hO.ITer, that D.bt. s.me. wu not Iucll.l.d. &D.Y acceleration o! thl1D&turlt;r of th. Bonds. ' .

tn) uECltftlemcat Sb&r'" ,hall mau, with rupiIC& to a PLrt:tci,ant dd aJlf Power Sun17 Year and 'With ruptct to the- Clllll'atlD.r facilities (lnc1W!(DI,nlated traDUliuiou fadUt{es) anci the b:aumlsaIon Q.tem f&cUlU. of the ProfeCt, (I) tha~ ;trCtZltap 'of the output 1.."-11 aervfces of ludap.alratUsrflc:Ultfu Idfortla In lb. Sc:hedu.le of Out;ut Entitlement Shue:s

.tu..chec1 hereto tor .uch Partldpanl: 'u.ucla Power Supply l"u.r... t.bc I&D'MI:mAT here&tter be fnu-.secl fll accordlUlte with tb. proYblou of the Power Salls Ccmtrl.ct. with .uch Pu*

ttcillant. aDd (!l) .that percmtaae of tra~fOD IlI:"flc:u whIch IhaD be det.trm!ucl b:r tn.

.A.uthorlti !flUiD" ada POWII' Supply Year to b**llocab1a to IUch Par:ti.cillUlt 1D. accorduce

,nth the l)ro~ou of Stcf:fou ~08 hereof.

(0). "FIle! Colts" 1hall1D1Wl*...U casts Incurred by the Authorl17 durlnt M, Power Sup.

ply Yla:r that are allocable tD the .cquieUioa, procu.iJII. f.bdc.tion, trllllportatloD. deliver Jnl'. r.proceuiD... stora,.: a:ad dlapo.ta],of Duel..,. matuUls nquJrtd for t!ae'lIlllftUOU ta.d1 fUel of ~. Pro.l.ct, J:acll.ld.tur l:raa.d'ers to IUUTeli .. tabUlhed by the A.ut2loritT fol' .uch eoab ralate!! to lu'h.tre POWill'" SuppJ;r YMh. IIQ c.r~rt.. related to auch c!IIb applied as .al'l'Proprl..

ate iD ,the dfscrttfou of the Authodty. I '

(p1 "Puiicill&llt" ,haU mean the poUticalaubcU-rilion, whlch I, ... partr to thu Col1itact.

"Partldllub" IlW1111Ull all pol1tJe&1 'u'bdl'lllJoZla I'D tne Stat. of Georaia wh.lch 01n1 ud op

.*~te electric: cUatributJon .,.tlm. to '1Il'1" theIr cUb:enl, lr1ha'bltanta aDd Cl.lltOmtl" 'bT pro v:ldlJ.li' them "IIrSth tllctrfc powlr and ,:oclD" Qc1 whic:h .re SIIU:ti. to COl1tracta With the AlIthor it,- substl,21tSa1lr Jdentlcal to thJa Centrad. The tu11l "Puticlpanu- .hIll iadud.. the *4par.

Udpallt," Uld tl:ue ttnna "& P&riidPUlt" or " ...ell Partfdpa:ot" _hall Meta IJI1 oal of t.be Partldp~l1t.s or ~cb of tb. P.rtfdpul:s, u the cue 1':11&1 be. PartlcflWlr' WU flIclude aJlY C~lOQ or apAq of aucb poUth:allvbcUvlliou which opuatls or C;OIU!vcta. or uudslII

lutiscUCtfoQ over a117 eq~tbl fu:oct.!o:o of the P&rUc:fPUlt". eleetric dJatributiOD .,.,tem.

4

, (ll) "Power Supply Year" shill mean tll.. a.ltndll' year. UCIIPt. that -th. fl:at Pawer Sup ply Year shan bldn on the date the Au.thority 1Iu an. obU,aUon to provic!& tlKtric power inc!

Inerw &I determined in accordance ~th tIl1roviafoftS at Sectfolll01, henol.

(x) ~roportionata SharI" ihall mullt with respKt to a Putidpmt and ~ Power Sup.

ply Year. that percental'e of the kilowatts 01' kilowatt hoUri. &I the e.... ZUy b.. crt Q.dI t:rpe m

cd aeMee included Supplemental BuIt'Power Stlppl,. which tum Puth:i'pallt I. entitled to reeaw anc! for JlfbSch web Partidpan\ 1.1 o'oUpted. to pay In each mo.nth of a Pow.r Supply the maxfmunl one--hour fnbrratetl colntldlJlt 1)'1_

Yur. With rupect to kiIowatb, IUch 'Ptrtenur' ahtll be obtalntcl for eaeb 1Il0Dth bJ' diYi&r; demanll of lum l'arUclpa.Dt'. Suppl...

mental Bulk Power Supply provtded by the Authority durin I' the particular mont'h by the m.,a...

(mum one-hour lntel'l'alc4 colnc:!dent I),tam iemands of Supplemental BIlDe P01ll'tt Strp1'11 '

provided by the A.ilthorlb'to ,u the P.t.rtfc:!,antl durina' that month. W\t.h rapect to kJlowatt hour.. neb percenta,. for each month .b.lJl be obt.a!ned ,b;r dMdl111 the kilowatt. haUl of Sup.

plemental JuDe Power Sopply deUyued by the Authority to lum Partfcipant du""nr; the particular month bt tb. totalldlowatt hvura of SupplcmentaJ Sulk Power SuPPb' deUvuid by the AuthoritY' to ,U of th. P~rt!dpa~tI durlnr that month.

<II> "ProJlCt" .haU mun tho.. electric rtntraHon and rel&ted transmission iadUties whSch art Jientified In the Dacri>>t/o%l of Project and tho.. traftlDUuJon Iystem f~mtlu to

, which referlnce II made In the DlICrlption of Proj~t to be acqulrtcl aDd conatruete4 by the Authority dUMr; the time pdor to the Colrlnllrclal Operation Date of the last at the Iinarat..

Inl taclUtiu ot the Project to b. corapl.tlil In order to meet lb. AuthoritTa Invest:.ment respon stbiUty durinl suCh time til conllktion with any a&lammt tar an Sntep'.ttd trrmImlI.IOD ay&o

, tem to which th. Authority may b... party maccordance with the lIrOylllona of Sectlon 802 hereof, tonther with. (I), any m~j'or rentwall, zepi&eemlntc, repaln, a4c1ltlolll, bettu;menu and fm,proV'tm.llu nacusa1'7, in the 'opinion of the CODilUtfU Enp,%leei,;to keep the ProJ.ct i%l ,ood operaUn, condition or to prwenl .. 10.'- of nV,IlUIS thari!rol'D, (U) art1 maJor add!.- ,

UOIII. ImprOVlDltllb. repalra and tlladl!lcatfou to the Project. ael. anr deca~atord2lr. or d.flpolSr. of the Project, required by an, roYernmlDtal Iren", Jaa"f1n. jurisdlctfon 0.,." the Project or for whIch the Authority ah.all H ruponaibJ. by virtue of any oblliation of the Au thority ,dSlnr out of any cODtnet. to which the Authority Diay be .. Jla.:V relatSnr; to owner ahflJ of th. Prt'lJtICt or allY fadl1ty thereof, (ill) those trallSDlfaafon lyatma fadlit!u to 'Which rifeune. 1. _ . In tit. Dtlcl'JpUCD of PrOJlct al1d wblc:b a:. required. hi the oplDlOD of the ConaultiDl En,mtv, to be acquired and COllitructtd '0)' the 4uthorJty 00 or afte:r the Com medal OperaUoA Date of tIIelut of the reDeration faclUtfq of th. ProilCt to be' cOJnl'Iet.d in orda to meet the AuthoritT. m.,utm,l1t ruponl[bm~ .fter .ucla CommcrcJal OpU'ftlon" Dat. In COIIDactioD with any a~etmlDt for an iot-rrated transmission I)'Item t.o whlcl1. the AutJaorit.1_haJl b. a pub in accordance with the p:ovlaloll. of Section. 3DZ her.d, aDd (b)

WorIdl1l capJt&1 required 'or the Authority durlnr conlauctlon of the Project ad tor the ptac:

" inl of the 'ProJect in Opll'atioD for ;proYidInl :Sulk POWU' Suppl~r In.c1udinl' Supplemental, Bulk P~"er Supply, to the Partfclpa"t. .

, (t) "Prudent UtJUtT Practf,," at a ;particular tim. shall mean any ot the Pl'ac:.tiCta, methods cll aclI en,qtd In 01 Ipproved by a slpifical1t porUon of thl electric utwb' lD.

dUltry prior to such tlm., or allY of tbe practic.., l1,I,thodt and loeb whlch. fn th. exucJ** of reuoDabJe juc1,ID.ent 1ft llrht of the facu bown at the time the decbJon 11'1.1 xnad.. cOl:l14 have bUll .."(pectld to accolnplbh the dill",. re,ult at tAt *lowut tlLSonable cott comlstmt wfth

,ood. bU.lIlnw practlca, rellabIUb'. "'et)' and upedltlatl. Prudmt UtlUt:Y 1'u&c. fa DOt fbtlnded to be HmJte4 to the opUrnum pr&cUce, mithod. or act to the uc1usfon of an others, but ratller to be a Ipectrum of poulble practlca, methoda or acts ham, due r .....ri for

muu!actunl'l' wurantIea and the reqtUrlDlltlb ot 'roverZll12lntal aaetldu of' cOllIpetent 6

jurladlcUop.. h ."aluatf.J1; ."llllthu' any, let or propoeal colLformi to Pr~~ Ub.1ity Pru.

tic** the puttu iha1l taka into account thl obltctiTi to achieva cptiIl1um. utiliuUon of the' AuthoritY'1I i~urc:u.

(u) "SuppltmentU '.Bulk Powa' Sapp1T' 'han me~, with J'Ul)ect to .. Pariici'PUlt, that poJ'tiOI1 II! :Balk Po....arS.upply req,u1re! br IUc:.b. Putl'clpant In t:c:t:Il of that I~U.a 'from th. Project Ind, unlus otherwise provided, hom anyluturl projec:la oWDld or cOlltroDed Dr .

tluI Authoritr tram which the Particlpant COlltneta with the, Authority to purc:'but ~ec:tric powe.t a:ael .Irp' and Iii IUIUI of tbe I:lueraUn.l up.dty reserve lervice, tnraamlalDll or..

vice, Ilc:htdWtd. ell'W',lDcy. or IconQtD)" IDterclw1rllemce, aM..uch other 1IIVlc:, uaodated 1rith the Project &.I shall bll'u;pplied by 1h. A.t.tthorltr in' accord.uzCl wi~ the promfolUl 01.

Seetlcn 80a, hereof.

(v) "UlcoulroUable. Forces" midi arq caa.. beyond' tha control of the Author~tr ..,hfeb.

by the eurcl.l* .of dll' dlU,uica th~ A\lthorit,yll unable to prevent or overcom.. bJC1udiur but not Umfbld to, failur. or l'eluul of any other periOD or tDl:5tr to comply with thmt exirtlDr cOAtracbl with the Authorltr or with .. Partfclpant, IJl a.r::t of God, tlr.. floOc:1., UploaIon, str.lb. labola,e, putOence, aD. act ot the pubUc entmT. civil nd lI1Sl1tuy ..uthtJrltr Includinl' court orderf, IDjunctiODS. l.Ild ordera of lovU'l\melltal apnciu 'll.'ith prop.:: ~urLtd.lctloD. In su:rract.ion or not, 112 act. of the .l,menta. illlu.1'1 of ~wpmUlt, 01' tDab.Ui1:)' of the AuthoTlt)"

or any Contn.ctors Inlaled III 'Work on the Pro}eet to obWIl or .hlp Jnl.tedals or equiPtIWIt becaaaa of the effect ol.lmilar cause. *oll.uppUara or "carriers, or lllaba'Uty ot,the Allthorlty to seU 01' baullta bow or nota. ' "

(ow) "'UcJ!onXa 51StlD1 of Accounts" means the 'Uniform SrlUm of Accoua.ts for Claas A.

,and:B Pu.blIc: tltfUtfes and Liceaae. u pracrlbed and; from thai to tim... II amlnded or

. thenlor made br. the Federal Powlr Commlilion 01' Its RCC_or.

mac1lfied or subal:ftutfQD. ~ ~ ~

ABtrICLE n CERTAIN OBLIGA;TIONS or tIlE A.1JTHORlTY AND THE PARTICIPANT" SecU0Il201. ':Bulk PDwer SuPp17.

Thll Authorlt7'lhall :provld, or caUle to b. provida4 IIld the Part:!dP41lt lhiU tab ft=

the Authorlt,. the Bulk Power.Supply of the ParlidpanL 'Th. A.IlUiorlt;r wm M :reapo:uible for plaDnlnr. neloUalinr. d-.fplI1" liDanelnE, acqllfrlnr 0%' CO'nltructIUB'. COlltrIC1:flI.c tor, aclmi.niltarilll', oJle.ratln., and mUDtalnlDl' aU ~efteral1on aDd t:raDaLlaiOll ananaaeub and fadlitiu MCWa17 to eff.c:t the de1Il-arr apd lall of luch :sulk Power Supply to the PR'- .

tfdpant, provir.!.t4, hOW4Verl that tha Parttdpl.2lt may pmeur. alternate bulk power lupplr rI.SOUf4;1I pw'Iuant to the terms of Sectlau ,(04, laarlCt., ,',

j Sec:tioa 202. AJulual Byahin'1Juda:et'. .

The Autharlty wD1 pfepare an4 aubmft to the Participant aU. unual SnttQl :Bull,at at l....t DJu'ty dar. prior to the lI.linnlnr of nch Powv SllPpl.y Year. The Parilclpant ma.y the,l1lUbmit to the Authorlty, at ur thn. unUI such bud~et 11 adopted; a'b1' matttra 01' IUI:

&uUOU rellltlq to tlIe lhzdl:.t wWch tI&. Partfdp&r:I& *mar c:ate to pru&Ilt. 'I'l. AutborilT ahall then proceed with the. cozutileratloll and adoptfon ot such Eudatt pot 1... thau tIIIrt7 Dor mon thlLD torlT-llve day. prior to the beriwq Qf .vch Power Supply Y.u atlll lUll ea.uae coplel of ncb .~gpttd :Buc!ret to be cllllYel'ed to t4a ParUc1pant" >>rcnfd&d. hO....lnr. the Bad.-.

et for. the fIrst POWII' Supply Yp r .han be pnpand, cOlllider..., adopted and de1lVll;'" In 6

e, the moat practluble manner av.nable tn the c!iluation of th. Autborff;J. Alnquueli !:om 'j time to time aurinr any POWIt Supply Yu.r a.!tu Wrt7 days notiee to ille Pariiclpant, the Authority mat ,dopt .~ amended Annua] SYIWzl BudEtt for and applicable to IUcll Yea.r for the nmaindu of Iucb Yaar.

Sed.lon 108. Rlporlr.

Thl Authority win ptepu, and Issue ~ tb.e Pa.:Ucipant& the folloWlDa' rt>>Orls uch month 01 the :POWI1' SuPpl1 Yur:

(1) Fl.undal and Operat.inl' Statemt1:lt :IUtin, to the Projaet and. to the SupplUl'l.mta1 Bulk PaWl" Sap,ly. " ' , '. .

(2) status of Ann~d SysWn Bud,.t, (3) Statua of con,true.l:lou budret of the ProJed durin, eoub-ucHon.

(4) Analysi. of operations .tI1.tinr to the Plojd and to the SuppJIDlIl:It.a.J Balk :POWI%'

Sl1p~I)". " .

Stetion 104_ Rlcordi ana Accounll.

The Authority will kllJl accura.b lecorda and ae.counuct each at the faeUltlu colnpd.mr the ProJeet and of the uanuetionl retatillr to the SUPJllamelltal Bulk Power SupplT .. well as at the opuations Of the Authority In ac:c:ordaual' with tlle Uniform Syltlm of AccouutL Sald Lecount! ,baU be .ubSeet to &n annual ~udlt by a :fIrm. of Independent wtlfitd. public accounbnf.a L"CPe.riluced In electric utiUty ac:countln;r and of natfonal reputation to D. 1'Db.

,mftte4 to tha Authority witldn sixty daYI afttr the clotl. 01 ID1 Power Supply Tw. 'All tra'l1l&c:tioDi of the Authorit,r nlatinr to the Project and' to' the Supplemmtal BullI: Power SupPI7 with lUPect to ucb Power SupplT Yur &haIl be lubled to .uch &11 audit.

SKUIl1\ 206. Con.~t1n1 Enrlnnr.

(a) Th* .Authority will "bin a cOl1luJtinl' enrinttr to "'list, aavlae an4 make 1'1ICOzn..

menutloIU to the Authority on matters :re1a.tlDa'1o t.Iectrfc power ,anaration. traDlm1ploll,

>>O"'IU' I1Ippl1, .ltdric utllU:1 aperaUou, l'ata and charces. tullhflitt ad 'budptJ aD4 &ball P.USI .uelL co1l.lulUn, enlineer to prepart withbl one hundred ed hraty d...;. folhnrfnr the clot, of u.ch Power Supp1y Yea: aD amlual c:oJDPl'lh.Ddve eDafneerlDr report with raptd to the Pra!ec,t &Dd,to the Supplemental Bulk POWII' Sapplr for the h:ru:tI~fat~y PlecedJnl' Power Supply YIIU' wh!ch .hall coJltain .. copy 01 the lumullludit and whIch ahall !Deludl: '

(1) A reporl on the operaUou o! tA6 Authorityj (2) A report' on tn. mlL11a,lmlDt of the *Project; .

(S) A r'pori on th~ lu:f!~ciency of 'raiu ~d eb&rres for 1a::r1i~eI,

(') A repo~t on requfreJl1mtstor future bWk power .luPpJf; (5) itec:ommencb,tioDJ as to chan res in operation ud. tbelDlldDI' of "pairs, rel1l11" 1I:r, :uptICID1!l1U, extezisiol1t, bettcrml.uts and improvlmtntai and ,

(6) 'A 'ProS.etlon of the AvthoritJ'a COlts of p~ovidlDI the BuDe Power Supply to aU PartIcipants fot the eDlull:a, five 7U1' pmoa. . '.

~) The Authority abn eause a copy at JaJd ualnHrlnl' up0rl to be deUvered tel each PartidpQt. . . . * "

1

.e Sldian 206. Pow,r Supply Pl&rm!nr. . ' .

, Tal Partlcipan~ "";'U keep the Authority idviaed on ,U :aatters 2:e1&tinr to the Part!cf..

pant'. powv luppl, ptwUDr blcludln,r hut not lindt.ed. to loa4 foncasb, prClpolid trlJ1&

2nlsslCll'1 and ..e~eratlon 'a4ditionJ and Utw d.lllYn)" point.s.. "

Sec~~ 201. DiUltUce.

. 'the Pa:tt<:fpant wOluerw. dlUrenceln the operation ot ftl elecule s1lteDi with. the.

vie"" o! lecurinC' .mcllDC1l~ kllpfnC"wfth P:rudellt UtIJltT Practice. wW cODitrod Ita fwlt

, Uu In acco.r4ance with lpeclfteatiolll at IUlt equal to thou pruenW by the National ElK trlc S&.fity Code of the U. S. Bureau af Sunduu, win mlLlntain its Unes at aD tlmes In ..

• afe opil'..Unr condltiOu, and wiU 'operate uld tiDes 11\ suc'h maMef as not to lntefu. UD duly wUh the Oplra.troDl of other.. 'n\e Pattlctpant will use electric senfce equally. from thAI three ph....... n~rl, u:polliblelJ1d w!ll malnbin a power fictor of 8U7'il&rifnr Of au.ch r:uter power tactor ... -7 h .,reed UpCI.11 by the Participant In the UlI'bt of uq other co,n

'trad betWeen thl Authoritr and a.ny other part:,y, and. IUch apHlUeAt by the Pa:ticipant ahaU not bl unrRuolllbly1fithhe1d. '. '

Slctlon 208. ACeta. '

Partfclp&nt wiD rln all necUaary perdltian to Illable the apntS of the Allthorlty to eany Ollt thil Contract aDd 'Will othenrlll be subject fa .ppUcabi. tr.n:tlol a.nd coDditiolUl let

forth In thole brUt. ,,'Idc'h a1fect the Participant &lui which an filed witb ~ Federal Pvw e1' Commisllon. The Authority and the PuUc1p.nt each will tin the ot'her the rirht to euter iluI ,remflle. of the other at al1 ,fe~sonabJe.tlmu tqr the purpon of

repalrhsr or retllG'rilIr

. t.clUtlu. rudin, meters .ud periol'minr 'WOrk Incldlll~l to deUYeiT and receipt. of Balle Power SUIIP17. '

Sec:Uon 209. Adjustment of.:~nUlnr.

"At the eDd ot .uh Power Supply Yur the AuthOrity .blJ detum.ine if the -rtrerata

, imount p.ld by the PsrtIcipantund.er SectiolU S07 and (03, hcnol, to provide recoverJ of aU the Authority's COita dllrin.'suc'h Power ;iupply Year ",aI In ~. proptr am.oullt, ,w, upon the makinr of IUC'b determination. any alUount fOllnd to hav. been paltl. by lb, Par.

tlcfpant In ""Celis ot '~ell1iOUDt which .houkl ha...e 'been paId by \be Participant ,hall be cr.aU eel on the :BilUnr Statements to th~ Partldpant for th. r.mabdlll month or montls. of the

Power Supply Yu: next .uecledI!1I' the Power Supply Yin for",hlda .~ch aQJubrWlt W&I dat.rmlD.ell to have bHD necessary. Taa '4p'cellt of the '!noat at 1U11 de1tcib1::7 ,wU be added to lach of the aext teD BilUnr Statl!l1mta. In the ,vent that th, :failure of .. Part1d~

pant to P&'1lts.EnUtll!l1ellt Share of Auual Project Costs. in acco.rdance with, ttl Power' Sala Contract maU haYi resulted,In the .ppUc.tfon of amounts iD 01' HII1"ge Of worklDe tUlId under the DoDd ReloJlltion to thl p&)"meJlt ot COlb PI),abl. lrora .uch rUen. Of 'Woi-:t IDr tl1l1d Iud the other Partldpanb l'h.n h..... made up the' cllf.idlDc7 crated by IUch appll c.Uon or paJd aMlttonal amounts .Into tuch ra,". or worldna' fund,. amoub thereafter paid to the Authority hy 1Uch' l10Dpayfnr Parltcfpaat for appUcaUoD to lum put dill p.,-muts aun l:Ie credited 011 thll Blum, Slttements of IIlCb othU' Part:idpanb In the nt:d month 01: mon~

&I ahall b. appra,prlate.

Section 210. ' Dbput" ltlonlhly ::SWlnl"Stalcmmt.

In c.... all7 portfon of any mo'tlW7*lU1lIAr Sb.tement receIved bT the p.rt1clpant from the Authorlt1t .halI be In bona tide dispute. the Partklpqt lhall 'la, the AuthorIty th. fuD.

amouot , of ",UCA mOl'lthlr BllUnr StataDWlt, net, upon determinatfon , ot the corrct amount, 8

the dUferenee between such correct amount and such full amouDt, if nT, will be eredtted to the PartfcIpant by th. Authority &ftu IUch determination. In thl nlIlt IUeb mo~thll BllUnr statamet Ia In dispute, the Authority 1rill si" coulduaUon. to luth dl.pute aM will advi..

tha Participant wStli r"anl to the AuthoritTl poaitlan re1at1vI thueto witblD th1:tT dar.

CoDowlni ~ttm Dotlfla.tiOD 'bY, the Partldpant of IUCla diaput.i. .

SecUon 211. Souzcu* of ParUcipl.l'lfl PIJDlCt:s.

. The o"bliratio1\1 of the Partld))lJlt to make the plJ'%!le%l.ts to *the Authoritr under thiJ Contr*ct lhall coutituta lenual obli,aUoDi of the Putidpant for the .prment of which the full faith and credit of the Partidplnt .haD be and the lime hereby Is pledpcl to provide

• the funda required to fulftll all obHratfoZll ad.inr under Wi Contract. UDleu IUch paymanta or pravidalll for .UeA ]la)'DIlnt. .han have bun made froID the rI~lDtI" of the electric 111 UtD ot tJie P.rtJdpant or tram athu IUlIdl thanof; thi p.rtIcipant win allnaallr.m u.ch and e"ery liscal rlfr duriur the tum of thi, Contract include In its ,meral. *re.,en.ue or appro-

. priatfon measure. wb.thu or not 'ny other item~ are iucJudtd. ,UEnS lufficient to satisfy the*

payments required to be nada *in each year by this Centrad u~tll all paymlnts required UD der this Contract han b.tn paid in full. In the event tor any reuon any IUch provfllon or approprlat.!on rl not Ulade tor. tlac:al yur of a ParUdpant, then the chid fflcal aUlc:er ot the Putidpant shall, In .ccard.nce wftl1 the prClvf.rOI1l of the Act fn effect as of tht date at thfs Contract, lit up &I In .ppropriation 012 the accounts of the PafUclpallt in uc:h fl.ul yur the amount! rtqUired. to pa1 tht obJl,.Uona*called for under thia Contract. The amount of the 'pprapriatiol1 in IUch fiscal rear to ~..t the obU,ationa .of thil Cantuct allall be 4ue aDd p~able anrllhall ba expmde4 for the purpc&e o! p.yiDI' .nd m.etinw tll, o~liratfona provided I.lndU'the tUmI and cond.itfonl of tlUa Contract. a.nd IUeb. appfopriatlon 1h&l1 have tha lime

. ItraJ lutua as if the Particip.nt b.d Included .the amount oC the appropriation In its rener&1 revenue or appropriatfOJUDUI~e. .

S.ccUan 212. Rd. COVl1\Int.

Th. Participant will utablWl, maintain and caUect rates Illel chari'S for the electric service of its Illdric lYIum 10 as to pro'(fd. rnenuu au:fflcltnt. tOl'ethlr' witJi ...,a1labl. elec tric system felenu, to enable lb. Particip.nt *to pa,. to the Aathonl:;r aU u=tmb palabl.

under tlds Col1trac:t and* to par all other IJDOO%l.ts payeble from and all lawful c:h&rru .,.Inst or Utili on th. revtnuu of ita tl~trlc 11item. .

ART1CLE m ELECTlUC POWER AND ENERGY FRO¥ THE PROJECT Sletian !01. 01f1lush1p* at Project:

Th. Authorit,. wiD IUDe the Bonds In Ilfill 'from time to time under the Bond Reaolu.

tfon to flnance IDd .hall aq the Project COl1lfltinw of the AuthorltJ'a OlVDUshfp Intareat hs the reneraUan LIld transmJ.slloD faclUUu ducrlNd In the DucrfptiOD of Project attaCh.d, to ttl!. CaDb'i.ct aDd will caule to be d.uvend to the. Partl cSp ant durlnw ...ch mouth of ucla.

Power Suppl1 Year ttl EAtitlement ShJrIl of the. output and* .uvlces of ucla. fadlit,' at the Project for the uaeful Ute at each 11lc:h f&d.Ut7

. at tht

. Project..

S'CtiOIl 302,.Ca.tI at Gtntntfon and Transmiufoll Fadlitfes C01Zlpril!ai the Projeet.

Ca> 'l'ha** ,enu.Uan and traMmlulaniadllthl cazapdlfnc the Project wiD, for pUrpGS4I 9

of accounUnr for the Authority'l COlts and charles to the Partfdp~~ts. be "panted 'lntci (il

,en,ution and ret.ltd. trll1lmlu[on fac1UM.., aDd. (11) tr&DJmiuioll S1sUm facilities i

. (b) TU Aut)Jorit)".'costs of praYidlAr to' the Partic:lpnts tht!r En~tlemeat SllartJ of

. luc:h ,eneratIon aild related tra~.mlu{GD' fadUtiu IS are included in the PIO)Ict wUl be ac.,

counted for u described In Sec~on 80,' Cb) heriof. and .

(c) The Authority'nodl of p~ovidinr to th~ Participant. theIr Entitlement Shares ohum tnnamlslton systeDl Ca.cWtiea U Ile !n,cludtd in the hojlc:t will blaccounted tor II dacrlbed in Section aQ6(c) hetlof, and will be determined u foltows:.

, .. (l) Such tnl1lm~lon I~tem facilities II are Included In the Projec~ will be acquired

. 'by the ~uthority from tim. to time for the term ot this Coatr.ct tNoUP partfclpaHoft in an in,tepled trans~ilsloD IYltem * *ement \fitll othtr I;IUUtfu. The Auth0r!ty"J inVllt~ent rupglllibfllty In Nch b'an.lmbsion system l&dJlHu tor any Power Supply YeU ;..m be that ptr!entq. of the total investment la the combined traDllDilsion sysl.tm t.cmuu 01 the Authority and such oUt.. *uWlties obtained by divldinl libe dell1and of total Bulk Power Suppl7 provided by the Authority to III &he Participants du:ini IUch Power Supply Year by the combinld dRmand. of thl Authority and luch other utJUtiu duM( well Powu: Supply Year ind Ixprllltnc the ruJ,lU u

• pezc:enta,e.

The Authority'. ruponslbruty tor annual capItal c:osta ,.1&tln, to I1IBew.lt. replace In.ntJ, lIPaira, addftfonl, b1ttaltllenta and Improvlmmti to lad fot annual OPen.tlnl COlts ot such trtnJtDIuion s;at.m tacllitlu tor any Pewef SugPI1 Year 'Will be the*

unual caplta1and operatinc c:ostlinc:uned by thl Authority for such facUltili.

(2) In thl erent the Authority UlUmel tesponsibnfty tor tu.~llllisIion ot the Partlc/

Pllltl' allotmlAti, ot S!l'A power punllant to uraapmlntl tor ,!h!cb Foririon is made lh SectJODI 803 and 804 blnof, thw Authority} mponalbilJty tor Investment ln, and annual capital and opezatlnr co.ta ot, nic:b tmftlD!.lSllon lYitlnffaci1itlel acquired by the Authority !Jom time to *tlme tbroulh partlcJpation in such lntqratad trans*

mission system aar.. m.nt may be iQcreued. Th. Authority',lnvatlJlent tesponsl1:iDity in luch Increued tnnsmiUlon I)',tlm tacUitlu tor any Power SupplJ Year wW be that puc:ent&1I1 *o! the. total lDVQt.nent lil lht combined tnnsmlJalon tacOiH.. 01 the Authority and IUch other utWtfes obtained by dhidinl the dln:wid ol such SEPA powlr plu. thl dlmand of tot&! Bulk Power Supply prondld by the Authority to all the Parlic:ipantl durlJ'l, 1Uc:h Power Supply Yell by the comblntd demandi of the Authority aQd .uc:b other utUltle. dwm,lUch POWIl S~pply YJlr and exprell\nJ the Inuit u a percentare *.The Authorlty', rlJponsibWly for annual* capital COiti reJatm, to rlne"w, r.pl&c:.ml1lb, r.pain, additions; bettermellt. and imP'CQvtll1entl to and tot annual Opuat~i cOlts ot luch inc:reued tnnrmilalon systern facUlties for uiy POWir Supply Yell: will*be thl! ~ftual Capitallnd opuatln, cosu Incun.d b,- the Authority tOl' such !aCiliU'L '. ", ' . .

Sectlon S03. Intuc:onnlcUon .\rt1UlleMenls.

The Authority will purchase or provide Jueh rlll.raUDr capacity ruerve service. traM mission ,enic:e. m.intulnc. llniee, emerrenc1 .nvice, ICollomr fnterc1l.G.e Ilrvlce aile!

o~ fnhrehlllrelervice &$Ioelated \Tftb the ProJtc:t .. may be neciU&.r7 tOI' thl nllabl. aDd eeonoudc:al supplY ot the output ILJld anlca of UuI Project IIId wiD caUl. to be delivered to the Partfc:lliut durln.r each month. of the Power Supply 1'1&1" Ita EDtltlemeD~ Sb:a.re of luch o~tput ancl .,mclI. Thl Authorlt.Y may Ill' elICU(; tDUIY trona thl Project wblch Is surpl.u 10' the req"lnmel1b of the P a rtlC:(Pllltl. as lucn surplu. may be available from tim. to timl.

tor thl purpose' ot ecollOmy lnterclJanr. It"lce or other futerc:haJlI' leme.. with othen

• !'lei ey n.t rlVIZIUI!!I ree.lv,d bT the AutJ\orlty for allY IUch lenlce. slull be cred.ite.d t~

th. ParUdpants . '". the AuthOrity IQ proportion to their EfttUllDI.lat Sheru.

10

SecUOI.t3ot. OpuaUOD and ldalnlUla.t.'cL

'l'bl Authcrlt,- covel1Al1U &114 "ittes that It wiU opuate. ml'n~n Ind maure the Pro.

jeet olL' *caUlI tIlllaml to bl operated, maiDtalntd u4 =ana:red in an afflclmt and econom-Ical tslllUler, c0nsi3tentwlth Prudent UUUt7 Practice. ... .

secUo1l a05. 1n.sunDce.

Tht Authority IhaI1 m.latarn or c:attJt to bt maintalned. in force fer the blnlfit of the parl:!d bereto, as ~efr ixlterut sUll &llPUrt as Costs of Acqalsitioll aDd Co%l.ltraetioD. or A:a.

Duall'ro)ect Costt. IUch inluranc, 'With. 1'IIPIct to the Project &I sball be t..,aUa'bl. &tid as ill tlSualb' camed bJ utiUtIu cOllltructfqlUld oparatinl IllleraUnr fadUtfes but, m the CI!4' of nuclear JGlIltl1II' f&t:llitlu, bot lUI than 'Will iatld'1 ~ requiremenb of Feaua' and ItI.ta Jaw aut! thl Nuclear XeplatQr1 CommIuio*ri rtl'l1lltiOIll led such othar wuranct LI 11 tI.I1l all7 urrIed bY electric uttllUu in co.DtoZ1Ditr with :Pruc1mt Utility PracticlI:-

SecUcm aD&. Chrres and BiOI",. far the ProSect.

(a) 'l'bl A.uthority will etablish faIr and na)ldlstrlminatorY' cbarla for all ouf;Jlu!; and luvica proridid. br the :Authority to th, Participants nlatf~* to u.cb fadUty of the Project dl.siped to reeonr an of tht .Authorftr'. cOlb IDoabll to such faclUty commandnr with the Commlrdal Operation Dat. of IUlch facility or the date to which Interest hal _II eapttalbed DD. :Bonds aUocable to sucb f ..dUty, whleb.vet Is the urUut as Jet. forth in tb* .Annul SrsttM

Sudiet, or tht alDlllded .A.nnull Syatem :Sudrtt IIIqpted by the Aut.\ority punUlUl.t to Section 202 ~ereof, and IUch cOlts abaU mcl.ud' Azallual PIO!ec.t Costs. .

,(b) ThI Anna:!.l Project COlta alloc&ble to tbe ,lllUltWu and related trausralulon fad!..

ltiu of the PrajlCt shall !nclud. at lust th. followbill' Iteml of COlts ,&2I.et e:cpmse:

(ll ..Aanu&l ProJI~ Glnuadon Fixed Cbarru," which ~uns:*

CA) the' amount 'Which the Authority II required under th, :Sond RuOlutiou to PaT or delloslt into any tund or "count ISta'bl.iahel! by tha Bon4 :a.olutlon for tile JlI7MlDt ot D.bt Sirriu Il:Id. &1'11' resln'l nqulrlZllmts for BOlla. wbIch "'1'1 allabl. to (l) the lenentlon and lelated trll1lmtulon l ..ciUUu of the Project aDd (II) tbe worklq capital wblch la raQ.ulre:cl bJ the Authontt for pro'ddlnr :Bulk Pow.

ar Supply, Inc1u4lb, Supple!Dmtal Bu1!c Power Supply to the Putfclpantt ~ which 11 aBacabI. to the renarat!cm anI! related tnumfsslon fae.IUtiu of the Project: .

(:8) the amount (not otherwise iaduded unetar tony item ill thlI Set;Uon 80S (b>>

alIocabl. to th. IDeration ana related tr"UrnisaiOD racilities of the Projld: wbich the Autllorltr 11 required undu the Bond RtloJution to pay or d-.poat durill, Ilia

• Power SUPP\1 YIU Into aDY other lUnd or Keount utabUlhl4 b7 lb. Bond Xesolu tion. "lid shallincludl, 'W",Ithout Umltation, a:A7 such amounts rlllulnll to mat. tip all7 ddldenq!n &1ly rUll'Ve fund or workia, lund r&Q.uIr.d or penz:dtte4 by the BOM Resolution luultlftr Iro%D .. c!efIU1\ Jt! paymlnts by any PIl't.Icipant or Par Help.Db of lZZlOunts dDt under it. or tblir Powu Silu Cot:luacb with the Authority;

. . (C) amounts wbtc:h th. Authority fs rtqldrcd. under the provtsiom of the EoDd

!aoJlltioD to PlY or illJlolit into a ruen.: tor renlwal. and fltplI.cementl;.

(D) amounts whIch must be ru.Uttul by the Autho:tt)" fol' ~O"Var.I' of Dibt Su-ric. :as ma.y be :reqwrtd by,the Bond Ruolation; ..

'(E) amounts wbidi n:n:as\ be ut astele by the AuUloriq for tb'1'ttirelXlcUrom u

".nict. c!e~mm.iJalonfnl, or dIsposal of'th_ feDeration facilitiu of the Project ,15 "

m&)" bl :required. by thl Dod RQolutioll: ,

(F), imOilllts 1I'hJch must be >>1[4 by the Authoril:7 for the pllftwe of ill1uat Ins apacll1 tuel"lQ for ~. Projeetj an~ ,

'(G) 'amounb whIch mUlt ~ pJld li, the 'Authority for the p'Ill'ehue at t:ranrDWI aioa lervlci ftrt the Project i a1l4 (2) "other Annual Project Gel1e.ratlon COlts," wbleb means:

(A:.)' all costs of produc:fnr an4 IllUvlrinl electric power gd IntrlY from thl Project and providln.. thi p.rticlpants' Ellfitlml.llt Shard ilc:Ju4Inr, but MtUmlUd to, (f)' Fut1 Colts and other ol'dlnary operation aDd m.fntll1&11cI com azzd pron aiolls fOJ' rlSllVU there!or. admlnlltr.tlvl .nd ,eUln.! costa, i1l.ll.U'anc.. oVlrlsta4 and anT cbrIM >>Iyable ls,. the Authority in C01\J1ec:tfoD with th. output of tbI P:roJtc.t, (H) net COlts of IchlcluJecl, trIlerll'llCY, eCOIlOIn7 or other iDterchanl'e ,ernca f~ur*

red by the Authorltyln COMectioD wftb the Ptolec:t, aDd UU) all op...ati,on aDd main UDallC:. c:o,ts related to th~ opera Una and collducUna of the hu.ia** of the'Author ity inc:lud!nr &alarln, fe. for leeal, I1'Idne...inL IAIl other aerrieq and all other upenall ,properly rel&ted to U.e conduct of th. alfaln at. the Authority; and '

(B) &mOuuts required of the Authority by th. provf.lolll of tlw Spud Ruolu.

trOD to 'Pay the' COlt of or to providl rllS,"" tor (I) extr"ordilla.ry opel'lt$nr Qd m&fnteuanci coats fucll.IcHq the colta of Idlflfuled. emer,II1C'Y, or othU' fnterdsm,.

aimci Ad the 'PuventfoA or correction of 'UT unll.lual lOllS or dam**e to k"p the

,ener.ttlr fa.cIJlUQ ot the Projac;t ~ load op....tln. col1ditiOD, or to preyqt a losa of rtVl1101 therefrom, (U) aUl major .rtDewaJ., rlplle,lmenta. repair***ddltfozu,lbet.

termlau I.l1d llnP:roVIlIlClb DlICwlry.la tlIlopi.alon ot the Col:UlwllD, EndAllr. to klIP the ,I%ler&tlnl' flclUU.. of the Project in ,ood op....tinl' c01I.alti'on or to 'Pre

'Vmt a lOll ot rlvenuu therefrom Inc{ (m) lilT major a4dltloNl, iml1rovuaanta, r..

pa.in or moditications to any auch ItnlJ'&tinl' fadJiI:1, or .n,. dtcOlZ1mlssiouI.'rIII or c!bpouJ.I of any IUth lenerltlltl' f.dJlty, nquJred by * .IlT IOY,rZUI:Iltltal armcr hay.

Inc JlU'!s4tct(OI1 over thl Project or for which tl'II Authority sJWl be rtlpOutbli bT

'VlrtUI of 1111 ohllptlon of !:be Authcu:lty arUln. out of "'1 COIltt&et to "bleb the Authoritr maT be I partY nJdln, to o'lVl1drp of the ProJect or In, tac:ntty then of to tlIi .." nut that the Authority fa not rabuned"therelot from the ,l'oceea of f!duranci or iqn£bi fez: .\Iuc:h 'Pa1!lltDt arl .!lot avaJ]able to thl Authority thlrefor

!tom "', funGi or accoun.ts 1.t:&blitl1ed 1.JDd,r thl Bond Ih.olutiol1, or fundi tor such paymlnt arl nol provldld or, to b. p'ro¥1dld by thl lsniance of additional Bonds PW'lUlJl.t to Artlcle V of thb Col\tract.

(e)' ~e ~~1 ,ProJd Coats allOcable to th~ trwmlillon If.tlm !lclDifli of thl

.ProJlet ,Ihalt fwade at least .the toltomZ11' [tema vt COIIU and I!XSHIl1II:

(1) ",Annual Project T~Im.isstoll Fixed Cum.," whic:b muns:

(A) thl amount which the Aut.horit7 11 required under the 1301l,d Ruolutiol1 to plr III' d,pOllt Into- .'n,. fund 01' .C(OUILt . .tabUthed 'bT the B01ld ltHolllti'on for thl 1111Ullnt of Dlbt Servici nd .ny ~e". rlqulrlDl.e.llb tor. Bonds whId1 are allocable to (1) tbe tr.rumLul04 .1,,_ ladUtf., of tbe Project and {U) the wort.

Inl' elpltal whlc:b ... .required bl the Authority tor PfDvidilll' SuUr: Power Sup,J,.. fn ch.u:llnr Supplemlntal Bulk Power 'Supply. to the Partidpan t.I and whlct. is .Uotallie

" to the tl'ansm{sa!on I,.atem. facilities of the Pro'ect; 12

(B) the Il'nOlll'lt (not ot.h.trwtae included unda: Iny item of thfl s..:ticn 306 (~>>

aneelblt to th. trallll'lliulOll 111tan fl'dUt:{q of the Project which the Authority ts reqa.irad tlnda' the Bond ltesclutfon to payor d,peart durinr 111m POWIr' SliIpptr

':leu lato IU other fund or account ut&bJbW by the Bond llaolutioD, ga ahaJl Include, 'WIthout Umitatlon, U1 luch Ilnoanb rlquired to malt 'lip IJ17 d!fklGCT lu b7 rden. fund ar worJdnr fUnd raqulrtd or permltb4 h7 the Jotld RuofuUcm rlSultb.r trom a dtfl'lllt in plyments bran, PutldpaDt or Partldllanta of amounb ilut tmdtl' tts or thttr Power Sila Conuacts 'WitD. the A\It.horll;7:

(0) tht tJDow:.t which the Autb.crnr Is rtCtufred UDder the plOrilfoll! of the

BoM ~oIl1t10D to l'Ill' or dtl!O'it Into. ru,rv_ tor 'rtn~wa.b gd nptaccmenta i and (D) ImOIllIU which m.uat b. rean~td by the Allthorltr for cov....a'e of Dibt ScrriCt u may b. reqt.drad by th, BoDd llasoh"UOD = Ind (2) "Other ADnIllI Projlct Tranlmlsllon Cons.'" whIch meant:

(A) I.mOwds for ordinur operaUoll Ind nu.lnte.DanCAI COIIti, adndn.lltratlve ud

,entral ~a.bf fuuruc~t overhucT. Iqd any othlr charlu pay.bIt by the Allthorlt,r In cOJUulction with .uch ullLImf.sion II1ltem fadlJUa, 1nclul1lrlr an ue4lu due to PaJ.'tldplAti with fUptei. to deUvuy point tral:1lmlniOZl t":iUtfu; &:Ii (I) amouZib nqIJlrtd of the Authority by the provisIons of thl BODd Rqoba*

.don to' pay the costs of cr to provide ruerves lor (I) utraordinU7 operation ad matnt.ellaJlce COII;i. bcludinl' the pr."entfoQ or COIT<lCtioZi of lay IJllll.luallOil Of dam are to keep th, trlAm'llufOll I,.tem fa.cillUes ot the l'roJ~t In ..00II opantlnl' con lUUon. 1)f to prlYCIt,a lou ot ravenuu tAeretrotll, (Ii). &Jll" ntIjor renl1V'&~ replac.,

ml1l.ts, r..,&fn, addItfo:l)l. het.tartn.nb and rDl.provCWlb lItGtUl.r7, In the oplnlon of th_ Con.ultfD, Enlfnler. to aMp the transmtulO.ll S7lt.tm bdllHes of the ;Project .

b coocl operaUl'll' condiUoD 01' to prevent a lou of re~enUtl therdro!l\ ad (IU) any major: acfdiUon., Improvements. I'lpdr'. or modfficatlou to an, such trlDmliufoll f&dUt7 requirtd by an,. I'OvUlU'Ilenta111lUC, havlq lqrildlct{oll 01'er the ProJeet or fOf ."JUch the Autbority .1Iall be responsible by 'i!rtue of &n1 obllrathm of thl Au tborltr arfaUla' out of II'1Y tontract to whIch ta. Authorlty DI.I.1. be a JulY ntatiD, to onenlUp ot the Project. or anY' tI.clUt1 thehof to the t._t thet tn, AUthcfit1 fa not. HJmbul'Ieci thuefor trout the proclld. of mlurlJlCe or twads for such pa7 ment an 110\ a....flabJe tel the Authority tberefor froD!. anyfondi or &CCOWlts uta~

l.bhed IfAde.r the Bond RuomUoD. or fund. lor .uch P~IAt 11'. Dot provtdad br the iuu.nci of addItional Bonds ]lIltJU'&Dt to Article V of thll Contract.

(d) 'l'hJ AuthOrity lJi.n biD the Partfdputeach lIlonth dll1'inl ei.ch Po\\'u Suppl:rYear by pro'Yi4hlr the Partfc1p.lIt w:lth

• BfllfDa Statement lor .uch mouth In &CC01'd&Dce with the ~&rI" t.tta'blflhlcl PU%llI.Qt to tA. prO"risfons of tbU ScHOll 301i. SucA Biuta~ Statunent

.~ lit forth, amon, cthU', thlan. th& swn to b. )l&14 lor .uch %'IIozsth by th. Paztfdpant lor Its EnUtltmtllt 8h&.r. of the Project out)1utand SIIl'viw, IDd lach Ilml,ahall ~ual tha Putidpant'l EatfthtDlIU\ Shan of that amount of kmual Pl'ojact. Colta, U utlmated SI1 thl tIl.1D CuntAt Almual SJ"ItaD Bucll~ whJch the Authorltr Jt required pursuant to the Boud 1luolDtioD to acalle, payor set ufd. durlJl, each month: Such monthl1 BmlD,' Sta.tcnl.l1t Jh&D {Delude & e:tdit for IUch cf.UVIlZ7 poInt trlllamlasJon 1adlltlu 1.1 at'e owued. fm...nt:ed.

Qr operated by the ParUciput. and sudl :alUm" sta.twut abaU 11. paid. br thtI Pa~dpAt OD or before.the tenth day from the dati of .ueb bJU. AmounU due and not pald br the Par ticipant on o~ bltOft .al4 dl1lhalJ bur an addJtiou) chure of one ud qe.halt pucUlt pu

month W1tfl the amowat duels p.rd ill. fuIJ. A.t the end ot ucll Pc':Vtr SIIPPIy Yur,' adju.to.

mmf.l af bUllQluaD be ltI.de In accorduce wIth Section 209 hereof. II the ParticIpant >>&71 13

leu than the full amount due with rul*f, to aBlUm, SbbDlmt. \hI parlW PI.7D1Ult ao :til ceind Ibn H appU.d £nt Sa l1tdln,. 01 thel'art!dpmt'l obU.aUOlI ~ pq Its EI1Utlemmt Share Of. the A.Maal ProJed Coati ... prorided la thb A.nicJe ill blto.... u:r fl1l2da fror;l:l.l:Ich pat:tSal paym.lnt &1'1 aplIUld to,~' d.lacha.r,. of the P&rtldpaat'a oblIptfotls IDlUr the pro visions. 01 Arlie1. rv herlof. ' '

<e) At .uch tlntea u the AuthorU,. 1uu_ addItioaa' BOileD in &ccor4&DCt wiill. th. pro viaioDl of Arttet. V, hueot. the A.uthority will mereul allch elemuau 01 Annual PnJeet Colts as u. nKISI&1'1 and the Participant .haD pay. itl EntitlemtDl Sbar. of NCb IDaWiled ehuilS p~nulJlt tl3 t'ht proYtslc:u Of StctIon 307 hmaaf..

Stctlo,Q SD1. Project E"UUelDlDl and Parmul Obll,.tiou.

. Ca) The Partlcip~t shall be entitled to zlCl.iVa its El2tiUemint Shan of tlae*output and transmission .emea ot the Profttt aud 01. aU* .uvicn proffer'" bT the Autho.rlt.J' h2 a.e.

corc!uee with the promioRS ot Sectton JOB herlOf. as ZIU.J' b4I availabJ. for tAe u!eful U!e of the Project. .

.(h) The Participant altall pay its Entitlement Share of A.nnual PraJect Colts alt {orth in the :m,ol1thl, BUUall Sta.ttmmta aubmitted b, thl Allthodtr to the p.ns;JPQt in accora..

aDC' with the prarislons of Sac:tioD 808 hUIIOJ. "'hethu or not the hOjkt or Ill7 pm til....

of ho bIG compl.ted. is operattnr or operabl, or UI output f. IUIpeJ1ded,laturullted. ID4 brfered with. ndu~1d Ot' eurtal1t11 or iel'1l1lnaQd l.D ....hole or 121 part, lll4 ,11th pqments Ihall not be all'l>hct to l'tduetfda whether b,. offllt or otll.enrla. auahall uot De coJ1d1t1on

,.. ' ".t upon the pldOrml.DCe or DOApmorm,m.c:e by ~:tlY partr 01 anY ap'HIDIl'4t for ',.ziT "I.I.I!

what.Ylr. '

Sectto" 808. D.tUlllhu.tlon of Partldp&l\L'. Entitlement Slwes ot TxanamfutOll S,.t1Dl F ...

cIUlla ll\clucled la*t.he Project.

(a.) WUh ruptct to trul1.mluloQ

.,.hlll facUlties Induded ill the '.Pl'Oject, tho EDtltl.

mel'lt Share far tach :Partic(plll~ to b. d.tlnnlllH by the AuthodtJ for w:A !tower'SGP'pt, Year ,haD be the p.r~taK. altac:abJ. to t.b.a PutldpLIlt ot the t.raaIImlllloll ,uvkei provlded by .tht A.athoritT and of the com Incurred b7' the Authority relatinw ~ .uch tnumlaion .,....

tam faciUtJ.. u are &c:qulred bl' tb A.uthodq, f.rom tim. to 'titzM tor the tana. of tld.I C01ltract tbrourh partidpation *In au Inttarabld trl.Z:l.lrl'liulOIl _Yltem aartGlllDt "Ith othtr utDftles.

Such Pel'Clll1lta l' shaU b. detel1lllnm by the Aatnont;r lIy dividlnc tke nv.... of th, ~.hour jnt'patte! colnc:fdlnt '"'_ dmuuds 'lor Bulk Power SIlPPlJ' prGviW br'the Authodt1 to luch ParUc:!pLllt dulilll' ac:h mcmth of .uch 'Po.lr Supp17 Teat by the aVtI'll'" of the OIlA hour Jntqnt"'.c:obu:ldtnt IY'ltem derD.l:l1lls at total Bulk Power SI.IP.Pb" proYlded' bJ" the Au.

thorlt;r*to all at the Pa:ticlpa~ta dgriDl' ~ month of such 'Power Suppl,. Yw: I.lld upnuiD, the ruutt ... a percenb,,1 '0 that. ..hell all of .uch Entltfemet Shar.. ID computed )),. te.

Authority an alldtd to,ethlU', theIr .azn.IhaU b. 0111 hU1lcfred. For the PIlIPUU at .czeh COQZ*

putatlon. the oal-llour Interval Jhall bl tu hOUl'darinl 'Which thue .ba.U acc:m:tha m'~mQm ont-hoW' fntel1'&td calncldent ayatUQ demancls ot total Bulk Power SI1PPir provfclcd by thl

'Au~hotit7 to aU of the Partldpanta. .

P,) In the IVUlt the Authorlt:y ....lUl1es ruponaihlll/;f for transm.lssloa 01. the Putfd pants' aIlotmect.l ot S!)PA. pOW", pllauaat to &rranrel3leDU 'lor ;,bleh pl'O'l'lalOll ta made I.u ScetiOIl' 803 aad 804 h.r-IOf, ad .uch ruponelbiUtr results Ia LIl IDcr.ue In til. .tnatmeDt fll a.ucl ann.\I&I oplratlrir cos1:l of s~ch transwulOD system fadUtl.IS. tba' hti~t Shar.

for e.ch P..rticrpa~t to b. cf.~rmfQed b7 thl Authod/;f for' each. power Supply Yeat" .UU b.

the percel1tqe alIocabll to the Parildpailt Of the transmIutop umces provided b.r tlIe A.u

e.

thorU,. and of the costs Inc~ntd by the' AuthDrity rel"tinl to IUch ~m.uld ruponilbiijtr.

Such pe.rclntaae Iha~ 'be 4eterm1ne4 'by the Authority by dhidmr ~. ,verap of the OD..hQ~

Interrate4 coinddlDt mtem demands ot IUe];l SEPA penn%' l'lu the. 4em~uda of Bulk. Power SuPply provid~ 'by the Authority to such Partieipant durilll each mouth of such Po"a: Sup.

pI,. 'Ytar ~ thln..",e one-hour inte,rato cobseldellt Intem dem.auds of SEPA POW" and dem&Jl4l of total Bolle jlow~ SUPJly provided by the AutlloritJ to aU of lb. Putktplllu dunnl the pme one-boW" tntenal of each'month of web PO"11' Supply Year au exprtllinr the ~..

• sult ... a pnceDu,(e so tf1a.t, ",hen aU of lueb Entitlemeut Shara 10 comput14 'by the A.uthorltJ are a4d1d to,ttblJ'. their sim .hall be one hundred. For the plD:pOlU ohach c:omputaUon. the olle-hour Interval ahaD be the hour duriDI' ",hid... thll'e ~ occur the DlaxblWll on..hour i'Q.te.

lTated cofnddeDt IJ'ltem demand. of SJ;PA poWit' 'Dd. IiemaDda of toW Eulk Powu Sopply provided b:r thI A.lIthOrit.7 to aU of !:he Participanb. ..

(c) Such EntStlement ~a%'u of trannUU!oD system f&dlities included in the Projd ah&U be estimated. 'by the Authl'ril7 prior to the beJin'llill, of allY Power Supply Year and .

.

• ueh utlmalu 'shall be.et torth (n the Annual System. llud,lt. Re."isloOl o( sum estfm.Ated EntitllUneDt*Shares shaJ1 'be mad. bJ the Authority ,t the end of lueh Power Supp17 Year.

'baud upon such l)'ltem. demands u actually experienced. ~nd the blUInp for. such Power Sup..

ply Yur shill 'be adjuded by the Authority ac:cordlozIT. . .

Section 309: Pled,e of. PlL)'lftenw.

All payment. l'Ctluired to be mad. by the Partiefpa:a.i pursuant to the prcmaolUl of this A.rt£cl. Ill, and all other payments attributable to the Proftd 01' to tht ADnual Project Cost!

to be made jn ~o:ordi.nee with 01' pUrsuant tIlan1 othe: provision of U:dI Contract, shaJ) be pledpd to lecur. the pa~.eI1t of the Allthority's 130M3.

SecHca 310. Pa1lDent ... OpuaUDr E:XpeDSL

. So 1011, u elldric power and enerl7 Jlsa]) actaallr be reethed by a Parttclput from anr

!acWtr or {adlttles ot the pJ:QJect;.1he Partfd~\'. EI1tftluaeat. Share of .AmnlAl ProSect Costa .hall be paid 'by th, Partfdpaat u a COlt of purchased tlectrl, pcnru and eiltrIY for Partidpant"s e1ec:tr.k: I,1Item IDd a:' an exptNe of ope:ation and maJnulWlf;e thereof*.

S.cUon 311. CreilfAI (0 Aanllal Project Coa...

The A.uthority :znay, J)1lnUAnt to the Schedule of EDtitlement Shares an4 puticipation in

&Dlldqra~ trau~s.dOD a,..tun a,rreeDleDt "With ot1ier... for which proylaloD f.*made In See*

ticm 802 (e), hereof, .Ian the output and IInlclS qf fadlitfu Induded £11 the Project to othe utilities. '!'be autfcJpat.d pl'ocHih from such .ale shall be estimated In the Almual SJStem Budret. and &D1 net rlVlnun actually 1'lCcv4d Q' the Aq~orltr as the reault of BUm ules to.

otller utl.IUi.. dlUiar tU!1 mouth of the Power Supply Year &baU be ereditad to th. Partici.

pants In P(1)llorticm to their- EatJtldlent Sbru In th6. monthl,. Bllllilr Statement !t.tr the ",

toUowmi mouth. .

SfIoCUon 312. Sale of Ezcaa .PUudplllt'. EDUlIauml Share..

ID ,~he lV.tIIt the Participant shall determl1u that all or anY part of the Partidpail.t'a

. E~tit1emmt Sh.n of the output and Hl"'Ifcea of the IlneratiD&' facillU.. of th .. Projeet are In excess of the r"ulremut. of the PuUdp&Dt, the ..Authority m&1. stU &Del tnmfer fO!' by period of tUue aD or ..y part of .uch uc:ua output and a.mea to such other Parllc(paatl as ab.tJl al1'l1 to talc, such txceaa output aM ..me... provided.* howlvll'. that in the IVtnt the othtr l'~dpanb do not. aIT" to talcl th. eDtlre amouZit of such tUIII,. th. Autharlt,'

115

e.

ahIll have thl r!rllt to* dispose at such . . . to other at."Utfu. If aD. or 1.117 portlO11 ,of lach exceSs of the PUtScipant's Elltitlement Slu.n. oi output and lime. is lold punlWlt to WI tIIction, ill- Part!~lpant'a Entitlement Sharl.haU not be reduced. and. the Participant ahall remaIn liable to the Authority G pay the full 'lnount of ib BiDfDr Statement &I S! such sal, had. not. 'been made: except that .uch Ua'bUiI7 shall be cUlCbar,ed to tla, ¢ent that the Allthor!.

t:r shall recti'Y. payment for such "ut. . output and services (rom the purc:lt.utr ot" parchuerl thereof.

ARTICLE IV SUPPLEMENTAL BULK POWER SUPPLY.AllR.ANGE>>ENTS

.SecU.on 401. Supplemental Bulk Po"er Supply ~oYi"ed br the Authority.

The Authoritr wfll provide or CAUle to be provided to the Participant its Sapp1il,Dental Bulk 'powlr Supplr durinr elC.h month of uch Power Supply TW'. Such SUPPUDenta1. Bulk Power S,..pp~ JU7 Induct., but .hall not beUmited to. putlal and full req~menta :firm pOWlr' purcha.su, aDd IQIlt power amce. firm and DoD11tm capacity 1.114 !!DUn lemce, transmiuion lernce aM other Intan:Jsanre IImee maae anib.bl. as .. result of t..~-""

lions with other uUUtlu. n. CCita to the Authority of electric power and lmerD' purchased by the Allthorit;r from other utlliUu based upon tariffs flIed bJ'IUth other uttUtI.. with the Federal Pomr Cor.a.miIlIion wiD be directly rdlected In tha montblJ' B~ StatemeDt to t.hI

.PUUcipllllt. Such monthly Brm. Statement win include a credit f~ IUch deJJyerj point trallSDlislfon fadlltiu .. art owaed, fllW1Ctd. "

or operated bJ the ParUc1pant. . " .

Section 402. Char,l!l for SupplemlD:tal :BUlle Powtr Supply*

.Ca> 'l'be Authority will eatabUsh fair and 1l011discriminatorr ch&rltS for aD serriees provIded 'by the "Authority to the ,,ParticipAnts relatf~ to the Supplemental' Bulk Power Sup ply of the Pa.rticipanb dQiptd to recover aU ot the Autllorit;r's cosb of aCCl.uirinr. filWldnr.

opuatlnr aDd tiWntalal:a, IUeb Supplemental BWk Power SuPVtr as sllch CGlb are set'forh In. the Allllual System Buctpt or allY amended AnllaILl Sr.t.m Budset adopted by tba Au thor[ty PUlSlW\t to Sectfon 202 hlrtot, and INth COlts shalllncluileAmllw Supplemental Coats .

as defined In SectIOll102(c), hereof; Il1lCI (b)* The Authority shaU bPI tha Participant each mon.th durin, each Powar Supply Year by provialna the Participant with a BOOnr Statement ILccordll1r to tha charta esta'bUIbe4 pursuant to the PlC!lsions of *thil Section 402,. for the seniees IUPpl1ed. to the PuttcIpant by the Authority as lit forth In SectiC).I1 .(03 hereof,' anti ftX' the eostl fDCIUTId bJ the Authority as set ~orUa in. thIs Sec~on 402, and IUch bill lhaD be paid 'by the Parlidpant on oibafare the .

tenth dq from the elatl thereof. .A..u::io'UlU d. and not paid by the Part!dpant on or Wort la.Id clay shaD bear III adcliUow char,e at <ll1e ami aile-hall percat per month DDtU the amauDt clue is paId fn full; At the ad of tach POwer SapplJ' Year. adjUitmenb of bUUup IhaU be'

=ade in &ccarcfanc. wIth the pJ::o'ria[on. at Section 209 hereof. .

Section 403. Supplemental :Bulle Powu Suppl1 TUtm &1 th. PuUclpant.:

The Participant shall take aU of fLl' Supplemental Bulk l'01fQ' 5uppb' trom. the AlZthoritT, and shaU pq to the Authorfty the Partldpal1t's Proportionate Sbare of Amlual Supplem.ental Costa at forth (A the m<lDWl' BillIn, Statement submittld by the Authority to the Putfd pant. . . " , .

16

Section 'D4. Alfernalt Sopplemenfal BaDe Power Supply Resourcu.

If the Partld,ant dulres to proeure an alternate souce of IIlJIPlemental bulle power' aup..

PlY other th&1J. that provided by the Authoritr. the Partlcipct mal ,do so WIder the foUOw:iJ:ll tenns and CO~llI: . ' ' * .

Ca) I.a DO event wiD the Participant's Entitlement Shue of the 'Pr!)ject be reduced, fond the Particlpani will contlnul to tie obliliteQ. to :pa,. its Entitlement Share of Amlull Pro~l(t-costa: '

(b) The Participant will enter into IJ1 interc"lll1ec:t1an ..-reemet with t.h. Authorit:;r 101' reservu. _&rIder, fCOIlOZQY, scheduled anel other interehUq;1 semel. the tena. 122&1. eoniSl ttolUl of wlUch will 'be Ihullar to tha** contained ill tllter~nntd:lon arranlenumb betwea.

the Authority ud othar.s,llDd . "

(e) The. Pdciput ,will Jive notice to the Autltorlty of its fDten.tlon to procure ~uch alfArpta loure. whieb wUl relieve the Authority from itl obljpUon ,to pro'flde len1ce l!.Q.uiv~

alent to lOch ,.ltemate 101ll'ce. Such notice win be it least the 10DmD,:

(l) Two ,.earl if suclt altern.t.te source equals 20" or Jess o! P,rlicipant's total peak dalttud l~ SErA power and Pll'ticipant's EntiUemellt Share of the output an4 senices .

of the leDtnti'D' facilities of th. Project i .

(2) Three rurs If such a.ltern.a.~1 Icurees equala snore thaD.20~ 'b~t:not .nu,tu- than 80~ of ParlIdpant's total :pule demand. less SEPA. po\'fU and ParlIdPlDt'S Entitlement ShaH of the 9utput anelSIn-ices of the ,euatln. fKilltEes'inclucle4 In the Project:

(S) Five ,earl If Sl1ch aJternate source equals more thu 30" but not anatar thaD

" 40" of Partidpant'. total,pw dezqan41w SEPA power aDd P.ut!cipant'.i EntiUGDl!!Dt

, shan ot the output ,and .services of the &,~eratiDl flefltiu of. t;h. fl'Oject; "

(4) aWeD yean .if .IIC& alternate IOUrce equals mote than 'O~ btlt Dct Inlter than 60" of Partidpant's total,peak demand 1tu SUA. power md PartfdplDt'.s EntItlemeni' Shin of the ~utput a1l.d ..servi.:1S of the Keneratbll :f..dUties of the Prl:dilct; (5) Nine 1un .if lach alternate source equals more than 60~ o! Partidp..n.t'l total peak dem&Dd 1111 SEPA. :power and Participant's EntitlU'lleDt Share o! tb. output and aervilOcs of the IllleraUn. :fa~Ut1e1 ot th(! Project;'

Provided. l!owevl.l", that: the A.uthorlty and the Partid}iaDt !Dar mutually alree to .. .JI.otfee shcrler ~ P1 of thou providld.,abovi If DC burden I2r cOli 'Would be im1208C upon the Au.thorlf:7 as the result of .lUdl .shorter Dj)tfCe. .

Sedlon .O~ Intar.eormecUoa Arn.n.rlmenf.s. ,

, 'l'he Authority .and ~~ Participant mal mutalll ..,re. to enter.luto intut:onnaction ar.

ranaemenb :tor r:aer've:l, aUKenef. econollll'. ac:heduled ~4 other' fntetch&np Ierne. tor

,renustiol1 Il1d t:raJwnfSSfoD ;fldUUes owned b1 the Parllclpant on the dtectt-.e d4ta at Ws Contrl~t. the tums anel condition. ot which arran.ements IhaU not be incoluktent with the pnvilwM of this Contract.

AR'l1CLB V

, , ADDITIONAL lIONDS SedIon SOl. ,WWU'lc. Df AddJUonaJ BimV.

<a) .Ad,dlt:ional Bonds may be lold and. f~ued 117 the A.uthorIty In accordance with t:he

prcn.isiOlll of the Bond ResolutfOD at I.l1Y time and :from time to time hi the h:I3l~ for all7 1'1 f

renoD, £he proceeds dui.Yed frllla: the aate of th. Bolllb fint validated ptU:sQant: to the pro...

...won. of the Ad lad of thJa COI1b:a:ct.U be inaufficte.llt tor the 'Purpose of completing the initial fadIitfu of the ProJect and pJadnl' .uh facility thertof In Cammmial Operation in~

eladlDl' the coaapletiOll of thOle tr-acamtuion .,stem facilities to be ICqufred nd couhuctad by the Allthorlty prior ~ the Commertfal Operat!oa D..te ot therast of the PIlP~' tadU tiel of the Project to be completed in order to m~t the AuthorltTs iA91Ita:uaDt rapcnu,lbIlf.tr

.durllur such period in alD:D.edioD 'llfitla any altamw for an lutepated. trlDSlDbslon.,..tem. to w~Ch tba Alltborlt;r m.t.:Y be .. partJ i:D. accora-nee with th. prorislou of .section 802 bereof; (b) Additional :Bond. may be sold lAd waecJ .by the Aathoriq'lll .cc:ord..nee with. the prQ visIons of the 'Bond BIIOIQtl!)D. ..t UlT tim.. ud from- tUue to tiJna 111 ih6. nerLt funda are re quired to P&7 the COlt at. (l) IJlT major renew..la. rep1.a.cementa. :repab, adc!1tions, batter~

mente, or Jmpro'ftmtl'lD, to tltl ProJed neclUll'1'* .in the oplnion 01 the Co1llUltinrE'Albleer.

to btp the Prolec~ il1 rood operatin, c:onditlon or to- preY~t I 1011 of reVeAUes Plertfrcm.

(It) aDY major additiou, imprOV'CIIWlta. repair,. or l21oditiutioD.l to the P.roject. or any d..

commlssionlQS or di!polall of the Project, required by any 100000000000IDtal apnq hadar jurisdiction 0"11:' the Project or for wllidI the Authority .baD be rupoDllblt .by virtu. of Il1'1 oDulatioll of the Authority Irblns' out at. any l:oDlract to whIch the Autlaolitr may b, & party l'Utfll1' to OW1.1mhip of t.ht Project Dr any fadlltJ thlll'eof. or (lll) Mad fuel for each lUer~

atioD f.dUty of the Project III any Power Supply Year to the Utat that .uItldlnt funds ar.

not .....alla.ble In ISlY fUlna utabllshed by the Authority for rl1el Costa; provfdtd however.

nal no such additional Bon4s may 'be Issued for the purpose of addinl' ddiUonal reneratins unUs to the Project.

. (c:) At such lime &s fundi may be required to llrovicle funda bfucer.s 01 those provided from the .sale of the :Sonda tint valIdatld pur.USAl to the Ad &ad this Contract to ml.~ the AuthoritYl lnnstmenl rtSlIOl1IlbiUt11D tOlllllCtfou with fb. I.lrta:aent to wblch; the AuthCrl~

t7 132&7 he & party -proYidiq for a.n Inknatect traMm!u1on. Q'lltam, In ICI'!01."dtnce with the llrovlsiQl15 of Section 302. berea!. lbe Authority may Pfov:(dt .uc4 funds IS mal' be necwar;r tfwreicr by tht Juu&nce of a.dd~tional :Bonds. .

(d) Any such addItional Sands ahaIl be IIKured by aslirnme:at of the pa:rments to be made hi th. Partidpa.nts 'Pursuant to the provisIons of A.rlh:le nr of the PO'fU' Sales Con.

tracts, lIu!1udIDI' pl,Jmeo.ta required to be made Ul1der Article III of tJstt CoDtract, lnel all oth*

II' p&1mlJltJ attrlbutable to the Project or to the Annual Project CoIta to be made il1 accord

.ace with 0," pursuant to UIT other prorislOJ1 of* thls COI1tract. and SDc:h ol:her Power Sales Colltrac~, u such pa)1;QIDb may 'be Im:rused and u:tu4etl by r.ason of the u.daDce at ~uch additfoDaI Bond.t, and such addittoul BOAd., ,may be faotd iIllJDo.mtl ..omelet to paT the fuU UlIoWlt of Ilicb COIta nd iutficia1t to prmcle sl.Idl rlSHYU AI may bit l'U!Ol1abl,. d ...*

temuDed b7 the Authority' to be duir&ble. Any Juds additional -Bonda Issued In accordance with the provisloD.l of lhi.. S,dlon 501 ..nd seeured by u.lpDlIZlt of parmmls to be made in. al:t:ordmu with lhe provfaiolU of t.ls.1I Section, may rank pad passu u to the security at.. _

, forded b the proyJalons of,thI. Colltract and of all other Power Sala Contracta between the

.Autllorit;:r And the Partlctpanb relattnr to the Project and to tbe LlSuance of :Bonds tha-etoZ' with aU Bcmdl theretotore Wiled pl.ltSllJ.n.t to al1d secund In. accordance with the proYiaioba of thb COl1tracL Section 502. ht~uce ol.Rtluft~mr Bollds.

In .the eveal the A..ruIwd Proj.ct Cod.. to the ~tcfpQb olelec::tric power &.l\d' enefIY trom the Pr0J'ct mar br ~ueed by the rltl.lndinl' 01 an,. ot the Bonds thea oLlbtandfnt OT In the IYlnt Jt s~ oth.c~ be aciVItLialeous, In th. opinIon ot the Authcrit,.. to refund any BocdJ.

the Authonty. m&r liNe and HU relundlnl Bond. to be u~d by asslpuftCnt of th. payments 18

to be Dlade by the PLttlcipmts punuint to the prov:ldonJ of* ~e m of the Power Sales Contractl. incll.ldinl payment. lIquf:ed to be mlde under Artide m of thll Contn.et. and all other payment. Ittnbutab1e to the Project Ilr to !:he Arsnud ProJed Cod.& to be 1DI.d. in accor danca with or pursuant tD any otber p.rovlslan of th1I CoDtnd anll IIlch ather Power Sda Contncbl. AAy 1tscb retundin, Bonda luuld in accozdance with the provisions of this Sdon and secund by usipullet of .JUdI p&ymentl may rank pari pam u to the HCutifiy alfQtded by ~e PrOMoDS ot thJI Contract. md ot all other POWI!!%' Sales ContnCt. between the Authority and the Partkipants rlllatin. to the Project and to the fawm~e of Bonds theretor with aD bOlldJ thauto*

fore hlum puisuant. to and secured in ICCoMlJ1Ct. with the proYidonl of thil COI1t:n.Ct.

Sc:cUon 503. AdjDstmut of .AnnuarProjeet Cosu.

In'the event the procuds derived from thl*1I1e o! IDJ" BOllrh lAued punuant to til, pro vtsiou of this CoDtI'l.Ct" thl' paymmt of whlch ls :sec:are.d by auiJ'llD'lel1t of :p&7Dlmts made pursuant to the proyhdou ~ W, Contraet and of aU othlr Power Sales ~tracb between.

the Aot.horit)' and the Parl!l;Iplnu rel&tiJlr to the Project and to the Issuance of :Banda*there for. exceed the al.l'lente amount required fot' the purposes for which such Bonds were is

".ued, the .mount of Budl exclSl .hall be uled to lnIke u, any detIcfmcr ~en e:datlul' In any fUnd or a.ccount under the Bond RuolllUan iu the raa~1lI1:' tlltnin lIlOVlded, and anY' balance .h.n be Died to re.Ur~ by purchue or call .and redanptfon,' Bondi 1D adT&Dce of m&tutlty, qd.ln such "VlDt the Authority win reduclluch dementi of Annual Projec.t Cosu u are nece:ssU',)" ad appropriate to iltfJec;t IIUc:h acclleraW ntlremml .

.' AR'IlCLE Vl DE1AULT seCtion 501. EYlllt ot Dtlault.

Faflure of the PlJ'ticipant. to make to the Authority aD, of the Jl&JUllntl for wh1ch pro vWon is made in thb Contra" shaD constitute II. default OIl the put of the Partfdpmt.

BeetloD. 502. COl'I11Alllllr ObU,aUoa. Rfa'ht. to Dlscoul1l\u, SUTtte..

, III the evtnl of UI1' I'Gch default, the Parlfdpaat ahaJl not be relieved. of ita 1I11.'biIlt:r for pay.ment of thAi! amounta In d.tault, 8Jld the Authority .ball bue the riaht to 'Z'ICD'9'Q' from the Participant .Illy amount in d~ult. ~D. wcrcement of ADT allCh rlsbt of rec:net'J'. the Au tbori~ m.,. 'brIDI AD'" .u.U. action" or proctedin, ill law Of in eqw.tr. IndlJdiDI mandamus" and a.dion for apeeitfc: >>mormanee u may be UICISS&l"1 or appropriate to enfottt urr covenant.

agnemmt or obUt.tiOD ta lXlde IJlT paymlDt for which pro'rislau II macte in this Contraet apllllt tlle Part!dpant, &Dd the. Authority lDa.1t up_ t!:d;r dan written 1I0tia to the Par ticipant, cease and dllcoDtfllue prCYfdkll all or an)' porUon of the Paztlc:ipmt"1 Bulk Power SUpply.' ' .

Section 603. Lev:r of ".1".a% far Pa)"lftGt.

. In the "cd of IUch default by the Participant" the Part.lcfpant ,hall provide foZ' jhe ai

~ess=.nt; qd collection of 111 annual tax stdtfe1et 1A amoUII.t; to pzovlcle fundi am:nwl.,. ~

make aU pa1DlUlb chll undu th. pl'ovlllou of thll Cout..rlct In eaeb J'tI.I" over the rem.aIJ:u!er of the Ut. of. WI Contract ud the Autlaorlt,r Ihlll ba.... the ritht to briDr &D.1' salt. action. OJ.'

proceedinl' in Jaw 01' In equIty, includJnl manclalDlJl Uld attlon for ~dflc PIl'formauc-, to era f04Ce the .a.uesltDent &Del coUectfon of & contfnuilll dlred Ilmual tax upon an the taxable.

propertT wlthJD the 'boundad.. of each Parttdpa:nt lu1ttdent In amoWlt to prOvide IUc:.b. 'lunda aDlIuaUy . m each .year of the remainder

. of the Uf. of thtI Contract.

1.

SectIon 604. T.r:a.a5ler ol Power aDd Elleru PlU3U&.Ilt klDd.all

Ill the e'VtBt of a ddawt by .. PartidplZlt. tAt A.uthority ih&lI f:ratJlfer, on a pro n:br.

'basis to all othtr Partidpanm ,...b.ich are not ift deflWt" th, de:fawtb!.r P&rtlclpantfa Entitle-ment Shua 01 the ootpllt ~d IImces of the ProJect whida shall bft bien dllctJJ:atiDued by rllloq of lu.ch default, lIlel tht pro rata pol"tfon of au Ezd1tJ'l.'IWlt She. of tba de:faalt luI' P.artfciplDt .0 traufernd ahan 'blcome .. part ot and sbaD 'be added tD. tha Entitlua.ut ,

Share of each. such traluferee Parl:fcipant. and t;J1e lnDsferec Par\ldpan~ ahall be obUpW to pay tor lia ElI.tit1tm.nt Sbut; lll.ttu.ied as a!oru&id. as If the Bl1l:StJemat Share of* the tranafe.r:.. Putfc1put, ~e4 ai aforesaid, had bun atwd orf.clnallr ~ the ;eJl1tltlllllent abare ot the transfere. Putlc:ipant In its Power Salts Contract with thaAutborll:,r. proDded, however, that In no niat shall 01 tn.1I.I:!11' of u.r part of a dafaulttq Partldpant'i Entitle

mInt Share result 111. an obUptlon of .. tn.u.fene Putidpant to bar output and. Itni.c.. at.

~e Project from the Authority in cceu of fifty percent of thllllas\ rec:el1t!J estt.bUa~ed 'J.1:UL':ICo.

imam IJlnual houro- ped: dema.nel of auch tranafu** Putlclpa.nt and prodded,' further" that the oblipUa.Q of the default:iD.ar Participant to PIJ' the AutnOrit)' .baIl be ftduced to the extent that paJlDIIlbi ahall be received bJ' the Authorlq for that portion of the de:faultflllr 2utidp.mt".s En.tSt1emeat Share which lJ2&7 be transtmed u aforesaId.

Section 605. Olher.Dtla1dl by Pa.rtJ~pant.

In the eftnt of & faDun of the Participant -to lIubUsb, maiDb[n. or conect l'aw or char,es- adequate to provld., J'ev,nal luffldnt to enabl. the Participant to pay aU amOWlta due to the AutharitJ UDder th!s Contract or III the event of a failure of the Partic:1pot to take !rom the Authoiit,' it. Bulk Po-artr SupplJ in ,lI!cor.danc:e with the prmslons of this

.COlltract, 01' In the event of aay default by the Putldpant under mt other con'l1lllt, an.....

m.ent Of obUaation. of this Contract" th. Authodty %Ill)' brlnr allJ' iuit:, action, or pr~nl in. law or in equity, IlIcllldInl' .l:IWld&mus, fnjUllctiOI1 aad aetlcin for .pec1flc peZ'fOrm&Dce." ..

ma.7'be necelll&lT or appropriate to enforce an), cQvenant, a,retmellt OJ' obUptlOl1 of this Co:atr&et ap.[n1t the ParticlpaoL .

SecUoa 60&. DetaQ]t q AI1~borit.y.

In* the event of In)' defl.ult by the Authority under any covenant, qreement or obUpUoli ot. thlt Contract. the PlLlticlJlan~ may brlnl &l\y Nit. action. or Prooetd1nl In. 1&,.. or bltqtlitJ.

includinl n:t..andall'l\.ll. lnJU11Ctlon. and action far tpecmc: pedormance u may be l'Ieceaa:y or appl.'Oprlatol to en!art:e any* C:OVtl2&Zlt. qrument, or obUption of*thil Contw:t aplnri the Authcrlty.

Section 6D7. Abandonment , . of RlltJUldr.

, In cue aa,. proc:eediDlr taken, 011 account ot aulr default shall have bem dilcoDUnued 01' a'baudonec1lO1.' IJl1 rllUOlI. the :partf,'1 to such proi:udiars IhaU *be reatcrecl to -thelr fonaer '

'Positions Cc1 rirhtshlreunder, respec:tlveJr, aDd all rirbts. rem.dies, powen. and dlltl. of the A.uthorlty and the' Putidpant .hall C1>nUnUI as ihoulb no Inch proeeedinp had htli taken.

ARTICLE. VlI 1dlSCELL.4.NEOUS GENERAL PROVISIONS SectiOD 701. Oan.c:f.. lad CAn.tbl.1dt7 of SenieL'

<a) 'l'hl A,uthortl:,r ma.y t.mporuDy bltenupt or reduce deBTed.. of eledrlc &Dvsr7 to tile P,.rtfdpurt Jt the Authority cfetamdnea that IUch (JlterruptSon. or ~ctfon Is PCI!S'&rT

!D. CUI of lI'IIup.udes 01' 1.Q ordu to Install t<lulp1n.ll~ III or make repafra to or .replacementa.

20

e" fnvutf,atioDS. and in'5ptetlollS of or to perform other mah,tmanee '!'Drk on Its rel:leraUOll or tr;m.smLslfon fadlitiu and related apparatules. Alter Infonn.lnr th. ?artidpant relardfnl

,&DY' auch plannecHllttmlption or reduction; rlvlDl' the reason thmfcr, and amun, tbe pro'b abl. duratiOD the:lOf, the AlIt.horltr will to tile but of ib ablUty leltedllie luch fnter:mptiOD or reduction at & thae "Afch wiU call.. the leut intedU'lalce lritb the opuatiou. of the p~~ "

" (b) n. Autborlt7 'shall not be required to .provide. 1:Ir be trabJ, for fanure to provf4e, aervfce under t.hia Coutract. when such fallure o"r the cUlatioD oz: Ctlrtalliuent 01 ot fnter fe.retICI Jrith the sernce fa causae! by UDcontrollabie Foreu or, 'lrith resPlct to the aemc.cs to be provided for Supplemtntal Bulk POWIT Supplr, fa causK by the fallun or refuaal ofau.y other built pawer supplier to loter Into rUloll&~. contracts with the Authorib' or* bT the tnabU1t,r of the Authod17 to obtala anT requtrri ronrnmetal 1ppn1'1&!.*to lubl. the Au thcrit,' to acq,wJ'l or CODstruct: an,. fadUtlu.

Section 702. HderiDf.**

Ca) .The Authority flSU"VU tha daht to pro'ride for in.tanation of miters and wDl pro..

vida or caJ1Se to btl prOYided an necessary metcrinr Illuipmeut for dt=tarmhdnl' the quantif:;r al:ul condItions of the auppl;r of electric: pftU' an4 murY delivered b, the Authorll;J' UMU' WI Ccmtrad; provided hawever that the Participant. may at Itl 0W11 COlt -fn.staU a4d1tfobl mlterlD,. equIpment to pro'ridl & check on that of the Authbri17. The Partlclpant ahallllu'Pply "Iritbout cost to the Authodty L ,ultable placa for lnttaDlnl' the Allthorlty'. Inetermr equip..

menl' .

(b) 11 au,. meter used for biDinl' faUs to rqfatu or ia found. to b. inaccurate. th. Au thority .lad repair or l'epli.ce luch metar or 121181 It to be upaired Or replaced, and au appropriat. hDli>>r shan be JUde to the Partfclpant* by the Authodtr pulIS upon the but Intozmatlon * .,dJabl. for ~e period, not excledmr ,Ixt,. dar" durinr which DO m-eterinr *oc- .

cuzrecL AJl7 Dieter tested and fOllud to be Dot.more than two pe.rcmt above 01' below Dormal sJa...u b. considered acearate maaf" as corr~t:Ion of bIDinp U coDeUlled. If, III .. nlalt of any tat. a miter fs found to reristel' In UCUI 01 two pucent Above' or below normaJ, then the l'eadfnr of ~ucb Dllter previously t&ke.n for blWnl' PUl'lJOlU shan, be ClIlTlICtU for the lleriod dlll'lnr w'hfc:b. It II utlbli,hed the ratter wal Snaccurat., "u~ nq cO'1'nctfoa.l:uD be made tor any period beyondlbty da,)'s prior to the dat. on which In Inaccuracy ts discovered '6y auc.h tesl (c) III addItion to II!-lch testa' u are deemed neceuarr by tho Authority. th._ Anth9rit.y

,ball han &DT meter tested at any time Up01l written request of the P&riielpa'Qf. ud, U! such meter pl'O'fll accurate wlt.hfn two percent above '01' below normal; the expense of such tat sh\Jl be .horD*. by the ParticipUlt.

(4) Thl Autbo.dty alIall notif,. the Parl:fc:i~t in adYancll of th~ time of IJQ' tnlt~ tut. .

10 that*& repreunbtsve at the Part:ldpant maT be pres ant.

SectIon '103. Po'trer D.UTlde.s*.

Po....er &Dd enerD" fu.rnished to the Pa.:rtfclpaz1t Under W~ *COl:Ltn.ct .hlll be in the form

~f th.Ift p'hue clUTent, aSternatlnr at & frequenq of approximately 60 Httts.

Section 7D(. LfahWlT of Parlla.

Th. Agtborlt;y ud th. Partidpal:lt 111&n allume tull rupo=ibiUty &214 UabWtT 10%' the maintenance aDd operation of their l'u]2ective preputia and each .hall lDdemuify and ave harmIP. tAl! ather from aU Ifablnty and uplMe OD account of any ud all da.m&I'IS, d.a.bna, 21

. e*

or ac:tion.t. includlnl' iniurr to 01' dut.h*of pUlIona arlsiil.r from illY a.d or aecident in con ned;lon with tbe inatallaUon, prUlDCe. matDtlJl.lJ1CI and opllation of the properly and equIp ment at tbe indemDlf,mr parlJ nd not cal1sed in whole or In paR by the nlaUlieDCe of th.

other party: provtded that &Dy lIabiUtr whlch. tl hlCW7e4 br the Authorltr throuth the ope.

attoR ana maintenance of the Project and not cavered, or not covered. II1fffciut:lJ'. by lnauz..

ancI abdl be paid 100ely izOlD tis, revmua. of.the Aut.boritt. and allY paymeDb' made 'br the Authorltyto aatidy. lucb t!abm~ ahall b~e part of the Annual STl~ Budad.

SectIon '10$. Other TtnnS ailel Conditions. , . .'

Sarvice hereunder shaJJ be In accardanc.*with such othel'.terms aud c:onditions .. are uti.bJ&hlli aa pari at the Authorltr'1 luvfct l'ulu aDd resuJaUoDi. which. shaD. not be in comtstent with the provlsfcms of this Contrac:t.

Section 706. AssillUllml ot ContraeL t.) Thil CQn~ shall inure to the 'buefit of and .hd be bizicWw upoa. the respective succes.ors and uerpa of the parties to tlda Contract. provided. however. that ucept as pro-.

-vided in the event of a ddawt, and. y;cept for the a.ssIaummt by the A.l1thority .~

hereby. neither thi. Contract.aor IJ1'1lnterat hertID .shall 'h. transfmed or alfiDe4 by either party hereto ueept with the COD&ent In wriUDz of the other putT Dardo" p.roride4.

bonnr. thAt* such consent ahIII Dot be 'lrithheld. unruaollAblT. No a.ufpmat or t:rc.sfa of thIs Cont:rai:t .hall relieve the Pries of IDJ' o'hlftatJcD hereW1l1er*.

(b) The Pa.rtldp&JIt aclcnowledlu and .area that thcl Autborlty may assill'1 and pled,e to'the T.tUstee ad Co-Trustee dealruted In the Bond Resolution all Its ziliht. title, and m..

t'e:rest; In and to aD parmenta.to be made to the Authorit,c muJu: the proris[ou 01 A:rt:kla.m "

of tlUI CoDtraet and all pafl3ldb attributable to the PreSKt or to 91* .A.1Uluall"ndtICt*Co!Ita to 'be macfe £D Iccordance with Dr punuant to &aT other provfsion of this ~ct .. aeeuri"b:

aDT. .=

1.or: the pQmt%lt of the luindPll (blclucUnr sir1Jc:fqo !U'.Ild hutalJmeau) of, ana prem!am" it bhnst OD aD the B01ltU. ud. UPf)D the aeeutiOD of 1'Qc:h asaiiDJ!W1t IlI.d pledp, such T.ruatee shaD haYe aU nl'lsts ud mnedies herein pm'ri4ect to tIt. Authority" ud any refll"Uc. l1erefD to the A.utbori17 slWl be dewed, with the necesa&1'1' c'hantes fa detaD, to Include s~h Trultee "Ideh IhaIl be .. thlZd partr be.ndIdar.r at the c:ovenanbl and agree..

lI1eDti1 of :the PartfclpaDt herem CODta.l:aed.

SectloD '107'* . Termination or A.m.mclmut of CoDirac:L .

(a) This Contract shaD Dot be to:mfnatd. by either}la:rf:T under aD7 c:ircumitaneU.

whether based upon the default of the other part;r under tl!.b Contract or anT other inatru..

mot or ot'berwil. except .., I)edtlr.aDy ;proTided In thia Contr&ct. . . .. '

'III . ' * *

(b) Thi. CoDtr-aet -w Dot be ame.nifed, modified, or atbenn.e altered in any' :a:iaD.ner t.hd 1ri1t .*dveraeJy atfect the lecurlty for th. BontU afforded 'bT th. pro'9Uiou of this Con.

b:a.ct COVWI' U. Plitcha.a and ,sale of power heremder upon ;,!deb tile OWJIeCI hom time to tune Qf the Bonda .hall have relied as an lDcJucemuat to pui'clJue anel hold t'he :BODdL So lODr as an.1 of the Bonds are outstaDdfDI' 01" until adequate prOYlalou lor til. PQmu.t tllcreDt haye been mad. in ac:corda.nc:. mtll the provllfou of tlae Bond Resolution. tIUs Ccmtrad .hall Dot be amendtrJ. modWed;; or olbema. alter.,. in aDT zUBer ",bleb wm l'edvca the paT.

%Dents pJedCed as lIecurlty for the Bond, fir extend Pte time of auch PQ'DllIDq Pl'CI'Iidt;d h.....

In <1:1:' .hlch wiD In any m&l1ller fmpdr 01" adl'l.l'leJ7 atfect the riahu ot the 0WDerII =m thae to time at the Boacb. .

(c) None 01 the Power Sale Coub-acts'm..,. be ataended as to Ul.7 OD.8 OX' mOX'e P..rtfdpants

10 U to praricle terms .tId conQitions dif1erent from thOle lw'da ~onb.ined e:ceept npoD: 'Writ ten notice to and 'W'ritten !=OMent 01' ",&iver by uelJ at the otllu Partldpanta, u.d. upon 85mllu

'amendment 'beba, made to the Power Salo Contrac:t of Anr othu PatHciput l'eQ.uutflll' IUch amendment after rtceillt br .such Putidplnt of DOtlce of snch Jnlendment, ,

AltTI~vm

.FlJTl.LRE PllOJEC'l'S UNDERTAKEN

, BY '1'BE AUTEOlUTY Set:f1a 801. . Futm:e P:rujeeb.

The Allt:horitr may hom tlme to time conduct dodie! and nqotatfo11l 'With r!spect. to p.1alIl1iag. dufpIDr. :thtandDl'. coDltruct.lDa. admlnbtmnr. open.tiq,.&:ad lXII.bt:a.bWJr or othuwiae acquSrfar flltun. leDfnUon and tramrniJdon f&cillU.. or rlrhts to the QU~ut thereof In addition to tJaOle amt_plated* for the ProSect. and mar make recotlmllUldaUona to the Partfdpant that IUch future facilities b. undertakeD by the Authorlt,y. If the Part!dpant wlahel to participate in, a:ad the Allthority wishes to undertake any iuch futu:na facllitlu. the

'~cipant .halllXlcute a contract therdor with th. Authority.

SecUon 102.. Futlll'e PartIclpanll. ,

It fl exptesaly uDdentood that nothiq herein ahan preclude othtU" future :pari:!cip&nb from contractinr with tlIe Authorlt, for pWminr. procwr. a.ul :pro'ricHnr such otluu:' fu ture pa.r1:!cipantl' bulk power lupply. inciudinl parUeipation In other projeds 1UI.de:xta'kt:!1 by the Aut1:lorlty. .

S.etlon $03,: ClwJ,I!S in. Em~1 SEP.A A..r.ruilaDub.. "

The Authority mar DeptJate bulk powu IUPp17 ananl!%DQb\ with the Southeutam .

Power AdmfDlmtio~ &Dd the Gtorrfa Power CoJDpalIY f.or chillIes in the etln'entl7 cd:Itlnz contracts between the Parifcipanb .lDd Southeutern POWit' Admlnfdratlcm Ill4 betw&Ul GIIOZ' lia PO'WV Company aDa Solrtheuhm Po"a .A.dmiDittratJon which .dwlI..' lila for the ez prul~d pUrpol~ at lowail:lr the ~artfdpl.l1b' overall bulk power suppl)" costa by acqtdslt10Xl

, 'by the PartJdpurta of their full lawfal &llotments of Southeutem Pcnru.Admlnlstratio:a.

JIOwer. If such u:preuecillurpose is ac:bJeTed aDd the Authority 1rish.. to: udertaQ IUch.

alTllnJ'llll.lIts. the Part1d:p&nt ma,. execute a CODtract therefor with the .Authariti fJiw1dch. .

the Part1c:ipaut may udp Its aDotmct of SautlLautam.'awu Adm1n!stralSon POWII' to the '

Authorlt,- tor delfvU7 by aa* .Authority to the Participant. . ., '. ..

SecUon 804. Otber SEPA A1'ranrements. '

The Authority may nerotiate other bulk power 11I1Ipl,. ~,ementr witb. the Scutheaai;..

em PO'Wlr .Aa~IUOD. reIatinr to otlaer pZ"o~ of the SouthuaterD' POWI!!' Adm.bd.....

tiOl:l n~ now htdad~ fn the elllTlI\t!7 e.xJJtina- cona-eta betw_ the Parlft!pa.nta and the Soutlae..tem Powu Aclm1nfstn.tlOl1 for aequilitiOD by the Part.ldpats of their tull l&wful aUotment of lucia other projects. Th. P:artrclplll~ D1&y ..sip itt allotment 01. alum other prQJed:s to tbe Authority lo~ dellvvr by the Authority to the Parlfciplat.*

Sec:U0ll805. 'ADocatlon of Celli.

Until the Allthorif:7 shan uaotrlake a :futuu pioJect or wtU the proYillona of Seetscml

'803 or .04 harea1 nJaUDr to SEPA arrallpmaita.".. In::I,pJemented, aU operatfnl' cd mafn ta&Dca coati related to the o]len.t1l11' and conduetin, of. the builnes. of the Authority ,han

'be tratea ... Almul Project Coats &nd. UpeD th. ulldertaldDI' b1 the Authorif;;r of & future project, " upaD impletnctatron of the prOYiIiODS of SectionJ 808 or 80' het~ the Authorl-.

23*

tr shall aUCIC&te an a~prgpriat. Ihar. o! lb aclm..I.tUJtrat.iv., and iUl.ull ef.XPe.n.s8 to .~cll1t1tun project :and IUclt a.rtaurtmmta under Section soa anil 80('

.A.R'1'lCLE IX SEV.ERABlLI'l'Y In C&I. anl ol1e or mora uf the pronslons of uua Col1tract .1IaD for an)" flllLllOU btl held to be.iUII(&l Of invalid 'b7 a court at competent jttritdk!:1on. It is the. Intention of each 01 the partia her~to that IUcIs lDepl1ty or inn114ity lhan ,ot af(~ tD7' other provlaioD hua

. at. but this Colltract slulI be coustruad Iud .nforctd as if .!Xh fDepl or Invalid llrorlalC?1l had uot bem cou.talne4 herein, ed. thts C011tract ahan be constrtte4 to adopt, but: no.t. to ell Jarre upoBt all the applicable pronsfollS of .!IaJd Act. alld all the appUeab1e provtaloDa of the ConitItl1tiOJl ad Imerll* laa of Gtorrfa. and. U an, provfalou hereof co11fUc:t 'ff'lth. &:DJ appUcable pl'O'filfou 'ot laid Collltituticu or*.1aWl. ,tll. latter as adopted* bY' the ledslature gd.

as irlterpnted br the courts of tbi& atate :tliaU prevaIl h:& Ilell at anT proridon hereof In con*

tlict or 2lOt In harmDu1tharnnth. .

IN WITNESS "WfIEREOF, the lrf13nicipal Electric Authority at GeorJia. has -cauaed this CCDtract to be executed In its corporate na1l1. by its duJ,. authorized offIcera and, by the execution hereot it,ll adCZ10wledled that paymentl made I1nder this Colitract may' be _ped, IS pro'ddtd In Section 'lOltb) hereot. by the Authority to the Ttustee and Co-T:ru.st.. to be dufpated In anr Supplt1l1ental Bond Rt.iolutlcn IS aecarltr for tha p&)'1Unt of all-Bouds ot the Autlaorit.r. u set fortA in said Section'T06(b) Alftof, and the Authorltr hIS C&ultcllta

. eorporate seal to b, herell1lto impressed and attested; the Participant: hal C&Wlad thil Can-.

tract to he executed In. ttl corporate naIQa b7 it*. dul7 &utho~.cl ~1eert ami Ita 'corpora.t.

.e.a1 to be hereunto Im:Ptelltd and attuted, and dtlivtrT huea! br thaAuthoritT to th~ Par~

ticipant is herebr admo1rledatd. all IS at the day :md :rur lint aboqwritten..

lrlUNtcIPAL ELECTRIC AUTHORITY

. OF GEORGIA .

BY: ~t."'. *** ** ' ** ' ** ' . ' ' ' . ' *****'.'_

AT!':

BY: .................... _.........~.:............ .

ATT: '" . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4' * " " ............... " . . . . . . . . ..

DESCRlPl10N OJ' PKOJEC1' WUd FadlItles.

':Be"lnitlal f&dlltles of the Project *.haD be the !ollowiq:

L laltbl Electric q~~atioD and Related Transmission FaciUtie.s Included hi. The 'Project.

(&1. PlaDt X.tcb. .' .

- A IC'Itnt.een aDd RYtn-t.lntht puclnt u~Mded'ln~ut in thf. h!O 807 MW. nominally rated. nudear ,.nuitf:nl wnb to ". known u the Edwin 1. Batch Nucleu Unlb. -Num'ben One "

ed Two, (individually ~pttd b Hatch 1}pit No. I and Hatch Unit No.2 and ea11tcttv.ely duIpat.td 1I1'Iet HItch) to be locatad nor Buley In ApPUnI County, aeoxllla. inc:lud.1nl f'ar such units (I) land deUDtat.ed aDd described in the XlCotd.. of the Clerk of the SIlperior CoUrt. of Applfn, CoWlty. Geo~ In Plat .B~ok 8, PIle H, and In tbe~ordl of the Cck ot the ~~or CoUlt of Toombs COunty, Georp..-ln Plat Book 11, PII. 8", and all wnl rtlhtl pirtainlnl th.eto. (il) the Du!=luz: power reactan. the turbine*l.nmto~. the:~inp ~ousinl the same, tJi. 1SS0~ted. awdUl::ri~ and equipment, and the rel..tad transmildon faentties all &I mOhl partt.

- c:ulI:rty descrlbed In the AppUcltlon, and amendments thaeto. by the GeortJa Po...-er Com.pany Wore the Atomic: EnulY Commission In Docket Nos. 50-a21 and 5c)'366 and the PWbnhwy Salety .A.nIlJ1\I Report, artclalllendments thereto, which corutitute a pat of nch AppUcation, (til) IAvlntoot.t-!2f mlteritlt, supplies, fuel, tools and equipment for use In connection with Plant Hatch, and (Iv) the Plant Hatch Ra.Ilroad dIIUn.ted artcl described In the ,records of th. C1ck of the Superior Cou:t at AppJin,s C4;lunty in Plat Book 8. pqes 36, ~1, and 38.

~ ., ..

Cbl Plant Vost]..

A. th.i:cty percent unc:Uvided interest In. the two 1150'MW. maximum. tabid nuclear lenuaUn, .

units to be known as the Al~ W. VoiUe Nud. . Unlta. Numb.t.ts'One uxt Two (In.dMduan, dllipatael as Volde Unit No. land VoctJe Unit No. i anel collectlftly dedpated q Plant Vorue) to be locatrtld 1'I1:1Z Wa)'Desbaro In BUlb Countr. Georpa. lndudlnl far such w:dts (I)

, ~d dtltn_ted and dac:rlbed In Gec:qf.a Power Company Map J1le N-8-3. to be recorded In \be il .

recom. ot the Clerk of the Supmoj. Comt of Burka CollDty I Geoqla and alllancl ziPt;I pertIain tb.eto. (I) the nuc:Iiu po1m' Bacton, the turh1ne-leneraton. the bullcUnp hoUllr:l.r tlw ame, the ISIOCiatacl auiUl:du and equ[pmlDt, ~ U\e :-elated. 1n.tumlafoD fldlItfd ill &I moor.

putkuJulr. dtIcribed In the AppllcatfoD. and amel1dment& thereto. by th. Gtorllalower Com- .

pmy beto. the Atomic EcclY Commlsaioa ill Dacket Nos. S~U, IDe! &()..r&25 and th. Pr...

liminlZY' Saleiy AaIIlydl Report, and amendmenb thereto, which co~tuta a put of such AppUc:.Uon, md (fiI) mventort.. of matafall. luppUa, fuel, tools and eqUfpmlllltl for: UH In caantcUall witb Plant Voltl_. pt'O'fIded. however. In the event for any rusOl'l' Bonds ve ,not bsued. for that portion of the Project dedpwted &I Plant Voltle, the i.dlltlll dQcrlbed In tbla subpuqrapb fb) "baD Dot ~ I pu:t of tM Project.

(e) Workfnr c&.,Ital. , ,

Warkilll'- Caplt&l required 1>7 the Autharit7 durlul' con.truct!cn of the Project and tor

.the plac:lnl d th. lro$4tCt 1.!:1 apll&tlol1.for provfcUul' BuUc Power SU),plY. '£ndlld1a, Suppl.

~tut.al Bl1lk Power SUP'P17, to aU -the Partfclpan.tI.,

It InItIal Tnn.stnJsal\'lL Fac:illties Int:1.uded In 'The Project:.

Thoal tnD3mbalon tldUtiu to bl acq,uind aDe! crll31tructad bJ the Authorlt,' du:rUi1' the' ttm._ prior to the Commerdll OJ;,e:ratfou D..te of tho l&a~ of th.. ,pneratinlr fadlities at tb.

Project to b. amapleted In order to meet Its inTutmmt rupollllbDltt durlnr IUch time in connectfolL with u:r alJ'ctmat fDr &D iDtlll'ated trdlll:l.l.J.l£Oll I)'IterzL to ..hlc:h the A.u..

thorlty. mI.,. be a PNV m. aCCOl'lWlee With the }:Il'ONfa of Sect!aD SOl at tlae Contnc:t.

AcldlUonal J'~tld. .

'l"he ..dditfon..1 facilities I1f the Project a1iaJJ be thoM additions and imptoHments to the tlec::tric Iluutl:iOD. aDel rel..t.ed trallSID..iN{oll f ..dlJtles and to th. b:&~OI1 SfStmn faciUties of the Projlct prorid.d. for in dal1.MJ (I). (ll) and (W) of Section *102 Ca) of the Coatnct.

SCilEDULE or ENTITLELtENT SH.ARES.

L P AImCIP.Aln'5' ENTl'l'LE.MENT SHARES OF 'l'XB O'UT.PUT AND SEIt.VlCES OF THE GENF4It.ATING F AClLlTlES (INCLUDING RELATED TRANSHlSSION F ACILl'l'IES) iNCLUDED IN 1'BB PROJECT .

The l'articlllanb' "Etltltltment Sharu of the OIltput IlDd onico. of th_,lntnt!na' facU£.

tlu Undu41D1' nJat.d tra1Wllf.uton 1'acWtlu) of the Profect. whfch Project ludue!e.i .. '1'ftlI.,

t.en ..tid .eym.tenthl pIlCent IJI:,4i?Jderl fDtuut bJ Plant Bateh au a thirt1 petcellt undMdtd lnhzut In Plant Vort1e both of which ~ mon p&rllcuJarly ducribtd hi 'the' Descrlptlo'a of Project, ud of the ,en1ces pr:ovId:ld by the AlltLorit,. (n acc:odl.llClt with the PIOYWODl 01

• Sectloa. loa of the Contract. ..ha~ for ...eh Putfc1pant be thoa. iutlUem.tJ! Shant let torlh In the toUowiJ::Is' ac1&cdul..: " ' .' . ..

• EfttlU.1II11Il '.Elatitl....t Elltlu....t IAlU.l SJaueAfkt Slun~ Sh'Rw,A.Itu

Eatltlt_nt . FJnt SICOII4I P.ftf~ &han .&clllll"'.' AjJ**tml'llt. . .A."I'lUUlUlIIt i p,; ,

'ACWORTH ADEL "

0.610 I.US O.&<<

1.220 fi 0~6l8 1.182 0.614 1.l6'{

ALBANY lUll 12.4068 lO.tlZ 10.048 BARNESVILLE 0.168 . 0."69 0,422 0.411 BLAXELY D.981 0.569 O.aaS o.ios TOWN OF BRINSON 0.0815 O.OSS 0.083 0.088 .'

BUFORD . ' 0.1514 O.liil 0.55'0 0.&66 CAIRO ,1.318 USO i.807 '1.712 C.A..LHOtlN* 2.258 ." 2~ '2.157 a.n!

CAimloA .UU 1.202 Ll04 " 1.08&

C.U:1'.DSVILLE 5.211 un 6.197 f5.l7S*

COLLEGE p,ABX &.804 6.1'78 .,.409 '1.659 COIOIERCB 0*160 0.6&2 0.645 0.A1 COVlNGTON. 2.696 2.1158 2.&61 2.m ClUSPCO~ 2.643 U5S U69 8.'10 DOERUN 0.129 O.~S O.US 0.118 DOUGLAS 2.805 2,640 UQT 2.609 EAST POINT '1.662 6.662 7J.Ol B.9'7'6 ELBERTON loUS 1.351 1."1 1.810 2S

°e

,0.2111 0.268 O.z;S OJt)6 .

ELLAVILLE FAIlUnnW 0..&44 0.526 .0.5fi6 U64' n';l'ZClmALD t.829 2.769 2.89$ 2.~az ,

FOtur.l'1"H '. .0*

• 0..819 0.967 0.986 FORT VALLEY lJU7 1.616 U62 Us(

G~ 0.090 0.OS9* O.osa 0.082 GlUl'FlN 3.600 8.080 2.9SC 2.982 ROOAJlSVlLl.,E 0.181 0.808 0.296 0.294 lACKSOl{ 0.542 0.&17 0.C99 0.496 LAFAYET.rE 1.639 1.618 1.604 1.6otJ LA*GltANGS *4.8110 U39 8.302 8.198 LAW'.R.BNCEVILLE 1.527 l.S09 2.082 2.148 M:A.NSFIELD 0.051 0.036 0.028 o.m XAlUE'I'TA. 1un .11.519 12.448 12.883 MONROE 1.508 1.422 .1.4** U5S 1(ONTlCELLQ D.361 0.384 0.S98 Q.402

]l(OULTll.IB 2.989 2.985 3.031 3.051 NEWNAN 1.609 1.645 1.583 U96 NOltC1\OSS G.5~ MSS 0.820 0.841 PA.'IJ&:ZTtO 0.282 *0.291 0.328 G*

• o QUlTHAH 0.147 0.'165 0.65! 0.630 SANDEllSVILLE 0.881 O.8ta o.m ' 0:175 sYr..V A..NlA.  !.TiT 2.689 ' 3.042 S.OS9 SYLVES'l'ER D..9" 0.881 0 . 0.954. 0.913

'I'BOMASTON 1.299 1.211 1.216 .l.220 THOMASviLLE 5.'l88 U9C 4.C09 4.8S2 WASBING'I'ON 1.018 . 0.994 1.aS9 L0S2 W'ESr POINT Q.G61 0.5" 0.4<< o.~

o WBIGlIAlt 0.086 0..1.09 0.121 o.J.24 TOTAL . 100.000 ,100.000 100.000 100.000

'l'b InltW EnUtlemUlt Shu. let'forth .bov, shaD. be u.. EntltllDWlt Shan for til. ~'

periocl comme:adDl" wftla' ai. ColMlmIal OpvatfO!1 Date of Hatch VDif; No. 1 aud endbI:l' with the Commerd&l Operation Date TJf Hatch Unit No.2 ar.Decallber II, 1978, "Mcllent' a the earlier*

.' . ne'EntlUllDct Share .After First'Adjust:!ullt shan be the EntitJemuat Shu. for the ptriod eommwncmsr '9rith the Cotnnlvcill Op.ra.tion Date of Hatch Vult No. I 01' J'Uluat'11; 1919, wJdchever Js the urHtr, alld. mdlnr with the COllIln.Cda] Operatf01l. Dat. of Voatr.

Unit No.1 or December 81, 1982, "W"'.l' the euUer. a o The ElIdtleme.nl Share A..flc- StcoDd Adjultmaut ahal1 be the EatitJen:JeDt SlIue for:

. the period ~orDmllldDr with lb. Colnlllerdal O,ptntlon Date of VolUe UD1t No.1 or lanuU7 .

1, 1988, whIdI.....er f. the euHv, aDd qdhs. "With the Corunudal {)pen.tlon. -Date of Vortle.

Unit No. 2 or De~ernber 81, 1983, "hftbeyer Ja the urlle:. , '

The E.tIb"tJe.au!llt Shara A.ttqo '.t'JUld AdJustment.halI bli the Entltla.ut Share for U.

period commendnr witn the CGmmerclal Operation Date ot Vo..ue 'Unit No. a 01' JUII&:7 1, 1984, whklla,er Is tile earlier, and ccdiD, with tbe last day of the tenn cf tht Contract; 27

ptQvtdtd howcYcr. that iD the eVIlli: Plant. Vcpw ill not constn.u:ted, the Entitlement Share' .A.ttei S.COJ1t.1 Adjaltment IDd the Entitllm4l1t SI:w'- After 'l'blrd Acljust2Uent .hall not be ",plic;a.b~.

and the &titllment ~ AftIr i'bat M,JUltmlDt .blll apply for the pmoc;l commenclnl with th, Coa:u:acclal Opaatlon Date of Hatch. Volt No. :2 or JIQU&I11. 1979, wbkbCftl' 11 ~e .arlier*

.and eadiDr with the JaR dt., pf the term ot the Contract; and proYide4 ~ tb&t: tha Authority, In Iccorc:tmct with 'til. 'pl'D'If.d.o.,. Of Sldion 311 01 the Conlnet, willlell the outPut

.a.od ...mea or lUell uqdi1id.d ~tcu\s In Pt.nt Hatch &bel PI.IDt VoJtle to Gecqla Power Com.pany in accord,&IlCl with ~e toUawlq achecllUl:

C.) Satch Umf: No.lud B'.Iti:'& Um~ No. 2, 1"0" SgPP!,y...

, Th,'" Portion uf thl! Power SnP.Pb' YIII' Rmia,lnml' A.tter the Cornmerda1 Opention

,Date of a UnIt of the Project 50.0" Ylnt FIIl1 Power Suppl, Ya.r FoDo'l'riDI Commerdal Q:pe.rat10tl D..te SteOM Full Power Suppt,. Yur Followina' COIl1Sllerc.ial Opv&tiOIl D.te Tb1rd P'u:1I POWC" Suppl, YIII'

FoDoNI Commlrclal Open.tfDn D.~

Fouztb Full.Pow" Suppli YII.%"

J"oqowiAa' Commt.rdal Open.tfoD Date Ftfth F\lIt POwer StrppJ,. Yeu FoUowiq CommtrdJl Open.tfoD Data. 215.0" SL"dh Full PO"tl" Supw YIIL1:

FoUa'IriDl' cOm.ra.U'Cl&I Operatfcm Date Sncth N Ptnt'1Z' Sappl7 Year FoIJawfn. Cammerdal OperatfOIi Date .

(b) VoatJe Unit No.1 ana VoatJe Umt No.2.

l!!!~ .S_!!? Tear That. portion at tb. Po.a SuPpl1 Y III'

. Remambs* ..utU' the Commudal Opuat:lon nate of & Unit at tll.e Project. . &0.0".

FIrst Full power Suppl, 'rut .

FoU01fInl" CommerciIJ Openlion Da.t. 60.0" Second. Full Powu Suppbr Yar FolJow5.D1" CD.DIJIludaJ OJIeratfon Data . 81.1"

'l'ldrd. FuD P01fU' Supply Year FoUD.\'rina Comm.ercial ~tfDl1 Data Fourth Full Power Supply Year Follcrwin. Commetd.aJ Opttat:lon :Oate 25.0" Fifth Fall power Supply Year FoDcnri:zt1' CommU'cllll Operatfon Dat.

Strlh Full P'aW'U Supply 'Year

.FaIlawiDl' CoIlUllen:1al OJIention Data 12.&,.*

SeY'lIth Fall Power Supply Year Follo. (;omD:t1l'cial O)IeratiDI1.Da te .

Provided. howlYer that for the poQIQIe at de.te:mlnlq the peI'1:u.tal" at 'Output IJ!Ul senfces:

to b. acid to Gaoraia Poyer Complll7. the FIrat Fall POWI' S1IPP1,. Yar. F~r Cammer eieJ OptntioD Date, 'lrith respect to VartJlI Un! t No.1 a1W1 b. DO late' thu the cale1Ul&:r yur 1984 aDd with resped. to Vallie Unit No.2 ahaD be no t.ter tlIan the wadar '16&:r 19B~, ~d

.the ~lDta,. at output aDd lerriCes to be .ola (whasuch output aDd l...sea ai-e &vaD&ble for IUch sale) .haD be takm from the io:re.raml" .cheda-'1or the Ippropnata )'ear bUed upon the condualve pruumptfou that the Com.mU'daJ OperatfOD. Date of Vostht UDlt No.1 fa no lata' than t1:Le 7w.r 1985 aua that the Cotame.rdal Operation Da.t. of VosQ. thdt No. 2 fa 110 later thaD the ,ur 1184, aDd provided, 1'1:U:t:lI.er, that the IZIIO\lDt of .u.c:b ClPac::lt7 sold to aeor...

lDi.....

IP& Pawer CoIDpI.Il)t'.baD DOt exceed 25" t3l th. AutharitT_ QWDual:dp _han of the capacity of Vo"'-_ Units Noa. 1 and 2 over the usefu111:te ot auch .

It II w:uSustocd tJaat tltere shall110t be .I.IQ" reda~OJl In Entitlemmt SWq of the Far.

tfdputa II & result olluch .sales of ou.tput and aenfca ~ Ge.orJla Paw., Compuy' and ucla ParUdput .haD remaSn ltabJ. for Jts full EutJt1em.ut Shan exapt I t l . UabDit:J' nall b.

dllclw'itd to the txWrt the Authcmty rece.lves pa~t trnm C.-afa, POYe;' CompaaT.

fi. pARTlCIPAN'l'S" ENTITLEMENT SHARES 01' SEB.VlCBSOI' TBANSlUSSION SYSTEM FAClUTIES INCLUDED IN 'l'l:IB PROJEC'l'. *

. . "th. PartidplU'lts' EnUtlement Shares ot Services ot Tranmiu.lou System Faeilitieslnduded

,in the :P:ro1ect'JhaII btl d.tarmined b7 th. Authorit.Y durin.'each Power Supply 'Vur In aceOr*

danc:a with thl prov!.tloAi of Sec:tloD 308 of the Contract. . '

29

AMENDMENT POwER SALES CONTRAor Betwun J

MUNlC1P~ ELECTlUC.AUTBORIT'Y or GEORGIA

, ~d THE inmE.RSIG~D pIt.RTI~A.NT' This Alpndml4t of Contract. mid, IUd' entered into U 0.1 Much 1.1978, b)' md hetwl.1S

. the M~ .ctri~ Authority of Geoxp.. I pubHc body ccnporafa md politic and

• public coIpOratiol1 of the 8tlw of Geor&ta. hereinafter someUmu dedpated III the A1.'Itborit.y. created br the prorkiOld of lOLL 19'15,. p. 107, II ammdlld.lIld the UDdmlptd poUtlca1lUbdivfllon at the State of GeorJia. hereinafter lometima deafp&te4 u thl ?uticipant.

WITNESSE'l'S THAT:

BE it telXllmbered that. a Power Sales Contract dated.,1S of October 1. 1916. has been previowiy aec:uted by and betwftn the Authori.ty and the ParlIeq-.t. md WHEREAS, the pIl'ties dulu to amend aid Contnc:t ~ otitain.~pectJt NOW TBEREFOU:

For .nil ~ coiUfdcratfol1 of the premfle:t and the mu tull, cGVII'UIl2W md .apeementl herein*

Ift.er let farlb. it 11 qwttd by md hlbt:een the parties hereto ItI foUo...: .

• • Sed:ioc1. ~d Powe!' Sale. ~ontract alulll be dated .. of Iluch.l. 19'78.

SecliOD 2. SlctiGD 1I;J2 (1) (3) 'of aJd cGntac& k deleted fa Itil ents:r.ty md the folJo"trizll Dew Sectloa 102 (1) (3) fa subltituad In lf~ thereof:

"(3) acquJsitiOD of bdtW fuel or fuellnvctor,r for any ieDlRtloJ1lacDit, of the Project and worJdo, capitallllld ruel'\"U thmfor mtd worlinl capital and rUIn.. for teIolid fuel lind add!.

tlonU full iDYl!I1tories."

" .s.dioo 3~ Sed:i.GD .10~ (n) of said Cont:H.ct iI.~ended b1 deleb, the wotd "OutpUt*' in the fourth line thereof. . '

. Scdicm 4. Sectlcm 102 (0) of lald Conbl.et is del, ted In Its entiat,. 'Il'ld. the followina llew ScctiOD lO~(o) b S\lbltltutid In lieu thereof: .

"(0) 'Fuel Com'mllD mean. III easta Jncuned by the Authorit,v du.rlnl my Po"" Sum Year that ale allocable to th.e acquillUon. proceainc. fabricaUoa. UanlpOztatloa, dellvmn,.

eprOc:eSlfaC. rto:ra&e. ,1m! dltpoal of bQdeu mat.en.h mel ot foui! materiaJI Jequfrecf lor aD7 of the &cncaJ011lacilltfa ot the Project, tncludln, tnJufen to raartr. BtablUhed by tM Authori 1

.......- -.. - .. --~~ ...---------

e.

ty for web cosll re\aud to fuuUe Powu Supply y~. leu aemta related to mc:h costa applied as appwprllte in the 4bcn t! on of the Authority. . "

Section Ii. Section 102. (I) of aid Contzact is deleted in its entirety and the tollawinc neW' Section 102 (., Is wbltituted in lilu theriot: .

u(.) '!roJect' :shall meUl thOle ellctriC 't~eratlon aDd related tranmsfAion fadlltiec which a.ne identified hi the DacriptioD of 'Project and thOle trms=1II10n Iysmn tadUU.. to W'hleb reference is made in the DucdpUon of Project to be acquired and coJUtnlcted by the Autbority durinl the tim, prlor to the Co.mmm:ial O~t.1on Ddt of the last ot the ,t!nel'lI:1n, faclUtla of tite Project to bt! compld.ed in order to meet the Authority', mvestment rasponsibUity dum, IUeh time in connectioa with any ape~ment for aD intep:ated tn:qaa:siuion aystem to wh.lch the Authority may be a party in accordaaci with thl proviIIonl of Seetlon 302 henol, .tolethe with (l) my maior renewals, replacements, repl!n. additions, betterments and Improvement. neCft-o

.azy. in the opirdao of the Conmttin, Eoafnetr. to keep thl 'Project In lood operatlOC condition or to prevent. a los. at revenue theretrom, (6) aDy major additiona. lmprovementl. repain an~

modi11catlOl1I t9 the Project md my dtcommlslioninp or disp'oWs of the Ptoject. r~d by lOY lovemmental lltacY.hrIina Jurisdiction Oftf the ProjllCt ortonrhich the Authority iIlIll be re-ponllble 'by virtue of any obliaation ofthl Al.lthoritr ariliol Ollt of any contract to which the Authority may be a party rtladnl to ownmhip of the 'Project or anylacility thereof. md (iii) workin, capital required br the Authority durinll conltNction of the Profect and for the. placllll

. of the Ptofec:t In operation for providin. BuIlt Power Supply, indudibJ Bupplemlntll Bulk lower Supply. to the P&rtJcipant." . ' .

Section 6. Section (01 of sa1d Ccm,t.:act is deleted in ita entirety ~ the foDowiDg new Sectlon.401 is IUbstit:ut.lld in Ue~*the.t'lot: .

"Section 401. The AutbclJ:t:ty will pro'Vfde or cause to be provided to the Partlcipant ita S~pp1em&Qtal Bulk Pawer Supply cSa, ada month of each POWIr Supply Yeu. Such Supple mental Bulk Po,.,.r Supply XDAY InclucSt. but ah..Unot be Uudted to. putial and tun requktmenb power puicb.ues and. unit power lerrict, ceneratfnt caplCity fUuve service. firm ad 110Dfkm capacity and. enG[J' service. tnnsmb.lfon .mice (indudinl tnnsmflalon aervice puIcllued by the A\ltboritJ to supplement the Putidpmt's Entltlemmt Shue of banaadast~D .emces provfded by th, Authority 1rom thoce tran.nDJ.,Ion IYliema fac:il!tia inclUded in th. Project) tnd other int.erc:hmp lIII'Vk:e mId.I aftUabte II

• nl'Ult of truuac:tfOni with oibe IatUitiu. The COlli to the Authority of .electric power md merJY puzchued by th. Authority troD! gtl;u utDIt!a baed upon talUfI med by Nch other utilities with the Federal Power Com.mfufOI1 will '!;Ie dlrec:tJy relitciecS in the monthly BiWl1I Statement to the Putldpant. Sucb mODthly BDlfnr Statement 1rilI inclucSe .. credit for Ncb delivery point trillsmiuion CaclJifiu u are owned, ftnInc:ed. or operated by the Partk.ipant. n .

Section 'I. '~on'"501 (b) of said Contr~t is deleted fn iti enttHty and WI toUowml new .'

Section 503. (b) 1.1 wtritute.d in lieu .thereof: .

. '*(b) Addlt.1onll Bends may be sold md luued by th. Authority in accard&aceo with the provilsioas of the Bond R.olution at my Urne and from time to time In"the event fundlue required to pay t.b. cali of (I) any mIIJor renewa.l.c. npJac:emlntl. rapafzs. additions. betterments or Improvements, to the Project neclHUy. In the opinion of the Con..u1Un., Enlf;n.ee:r. to keep ~

P.rojlCt 10 ,oad opentina' condition or to ,puent & JOII of reyenues therefrom. (H) IUlJ' mtJor addidoas. ImproYl~mta. reJ;drI. or modifications to the Project., qr any deeommllafonb:!p or dkposaIs of thai .~c:t. nqull'ed by tny iovlmmenUJ Ilaney havin, J~ctlOft ave:r the Project 2

a"  ;.~

or felt which th~ Authority ibIll be rfllPQmible by virtue ot any obliption of the Authority arlIiril out ,(,.{my contract to which the Authority may be a puty rellan, to ownemup Of Ibe Project or ~y' facWty thereot. or UU) reload fuel or addiUonal fuel inventory tor any senentioa fae-ruty.ot, the Project In any POwa' Supp11 Yu.r to the exte:\t that suffitient funds .re not,

.YaiJaw. in any reserve established by th, Authority fot Fuel COlts: p:ovlded \lowever, that no such additional Bond. IDlY be .ued lor the purpose of Ilrtding addltlond generatlnl units to the

• 'floJect.

SecfiOD 8. Section 501 (c) is deJeted in the its entirety. and Section 501 (d) il renumbeted Section- 6Q1 (c). .

Section 9. '1'be. aUacbmmt to &tid Contract entitled "Oescriptlon of Proj~ct.", and "Schedule of Entitlement Sham'* consJlUnl of fly. Pllttl Is deleted in its en~ty Ind th.

Dp::riptiOft of Project and Schedule ot Entitlement Shares attached hueto I.Ilubltltut.ed. ~ lieu thmoL

~tlOD 10.. Said Contract sh~ remafa in fuD torce and e~lect except .. herein amend~d.

IN WlTl'lESS WHEREOF, 1be Municipal Electrle Authority of Georgia and the P'a.rtidpant bave' caUMd tbla .Amendment of Contract to be executed in *their corpomte MINI by ibm dulJ' authoriud otftcen and their corporate lUll to be hereunto bnpre88ed and attested. til u of the '

day IUJd YtU flm aboYe written. . .

"'II!: ;" *

~ ~.~ '.

". "-~ .. .

I

e*

THIS PAGE INTENTIONALLY UFT l3L.ANK.

.~

DESc;KIPTlON OF paOJEct lni.t.faI :Vacili tilL ThI initW fidliUa of the Projed.m..il be th. foUowinr!

J. ' Inltial ~eCtr!c ~enei-Ition and R.lated 'I'nrumLnioa i'tcilitfu Included ~ Th. Projeet.

Ca} Plant ]fatch.,

A'lulDteen and ..yan.*ten~ percent UDdivid,d int.e1:est in the 'two 807 W. no'DlfnlllJ rated DUel.U' ,.ntn'tin( unit. to be known u the U'9rln I. Hatch,Nucl.ar Unit., Numbers On.

and TWo, Ondividuall7 dufpated u Hatch Unit No. land Hatch Uolt No.2 U)d coDed!"!y dulpated .. l'J.mt Batch) to be located nell' BuJi1m AppUDI County, Gee. I:a.Clu&lfor such UDitI 0) land. delineated and daaibed in the recorda of the Clerk of the Superior Court of Applin. Co~ty, Gecqla. in Plat Boot 8. pap 35, and In th. r.CQEda of the Clerk of the Superior Court of Toombi County, GeorIfa. In Plat Book 11, pAl' M. aDd all land richta ~I thueto. (8) the nuclCli' power nactoll. the turbtrt.pnenton. the buildfbp hOl1lfDt the Am**

th. UlOet.ted aUXiliazies and eqWpbllUt. and th. r:tla.ted trJl.DSl'llisatOn facl1itW all u more perti.

tu1a:rl)- duc:n"bed in th. AppUcation. and am.ndmentl thereto. liy the GeOllla Power Comp&D1 b,!oN th. Atomic Iaetu Con:t.rcialon In Docket Nor. Go-32l and 1S00a68 and the PtelJmlnll1 SlLtIV AnalyIfI- Report.,meI amllldmenta tlutreto, which COlllUtute a pm of Ndi Application, (Ul) In....entoriet of b:IaterlIIl:I, luppUel, fuel" toolland equipll.1lllt for ustdn CCllDdOD with Plant Hatch. IIDd (Iv) the PIlat Hatch Railroad delineatlld and desaibed in the r* .com. of~ Clitk.of the Supirior Court of Appllnc ~wit, in Plat, Book 8, Plies 3&. 37,,1Dd. 38;prowided. hoWl'**

the Authority aha1J fa"', the crill and POWII' to .all to any all. or mon of the poUtlcalaubdiYi.

liohl Dated in the fOUowm, St;bedule ot Entitlement SbartI wb1ch '1ba11 not; e:xec:ate a Power '

Sal.. Contract :lIIltb thi AutbozltJ Ncb podign ot 1<<1 uudi'Yidetl Ibkrut in Plant Hatc;'b u tbe '

,,\uthodtylb&U be lawfUlly obUpted by virture of ally contJ1c:tu11 obUptlon of the Authority to .

un to IUch pa11ttca1rubdlvisirml to uUafr the .Ilcut.a. coniUttoDi pert;afDinI to P1mt Hakh.

(b) Plant Vol1le A HYU1teen 'and lt1'm-t.enlhl percetl\ uadMdeel interest in the twa '1l5D MWe IZlUi1mu2:I.

rated. Das l.aeratblI urdtI to be known u the Al'ri.b W. Voctlf ~uc1ear UDlIl. Num.beiI On.

• aiId Two. (lncUftduaUy deripated u VortJ. UDii No.1 and *V9fll. Unf\ No. a ILIUl c:oUeet1ftly desipated u PlaAt Void') to be loctJcd DIIU' Warn.bolO In Burke County. GeoqIa~ tnc!u_ '

tOr lUcia unltI (1) Jma cLrUnuwd aDd cWc:ribed. in GI!O~ Power .Company Map PIl. w.s..U dated March 15, 1911, to be'Reomed m the nconll 01 th. Cleric of the Supcior Com 01 Burke County, GeoJ.'ffa md .u land- dPtI pertalniDf thereto, (ii) the nuclear power raeton" the turbin..pneratoJl* Ch. bWJdfup houalq tit. &1m., th. usodaiad luxillarleslncl equip_tit. and the nJated transmlsdml fadliUu III I I 'tQoni particularly deaaibed fa' the AppJlc:atSOl:I. and

.mlllCl.utl thereto. 'b)' th. Gtoqfa POwer Compe1 befoze the Atoadc: EIIej:y Co.ll1lllllJdab In' Docket Na.. 5~ and 5Q.4.28 and the PreUmftwy W.tJ ADal,m "port, mel a.mendmen\l thereto, which c:ondltutu Ii put ot IUch APpUcation. mel (IU) lnwntodel of maWri&II. nppU**

fu.l, ~11 md equipmelltl ~ tIM in connection with Plant VOJtle. P%O~ howeYer. fa the ev.nt tor any relioa BoQds U'f not _eel for that porUaa of the Pzojeet dtlipated I I Plant Vort!** the faCiJi#'lducn'bed in thiJlubpanlhPh (b),shll) not bea part oltbe.Pro.lect.

ee) PlanI Wansle7~

A t.m ,PttC.nt undivided blirtst In lb, two 86S MW noJidoally tated ~oaJ.~d lemltllt1n.

uniti to be known II tIul Hal WIniI_y Steam Ptant UnIta, Numbers On_ IJ\d ""'0, (lndividua1ly delip.at.eid II w&nlley Unit No. lind Wwle), Unit No. 21I1d coDecti.....ly duip1at.ed II Plat WlnIle,.) to be 10c~d near CentTlIbatcbee In Hurd and Carro.n Cauutiel. Georp. fnc:ludb1r for sucb ,tmitI (1) 1a.ud dtliA~.ted IU'ld duc:ribed 1D Oeoqil POWll' Company Map Pil, X-&l dated June 5, 1912, to be recorded In theltcorda of the aats of Bupedor COW of BIard Illd Cmoll Counties, QeoralI.. wi all Imd .rlPti partaUlmr thereto. till the turbin.t-pal1'doDt tU 'boilm,

.'the bu.lld.lall bousfna the &ame, the ,tack, til. cooUnr faelJities. the uaodated aux!1faMlad eqI.lipment., and the related ttammJalOIl faclBU. all .. more.putlc:U1Illy d.c:ri.bed*!a the en;'

'Vlton.tlleJltal Impact It.lement xeIat1DI to Plaut WlD&Jly, and (Iii) mventoda cf matakJi, 1Up pfiic. fuel, t.colltpd equipr.oent for use In connection with Plant W~." proYkled.*bo'ftVer. In the !Weill for my leuon Bondi are 1101 fllutld for that portion of the Projl~t dedpat.ed II Plant Wansley. the fadlitiel deIcrlbed tn this aubpuqraph (c) Ibatlilot be , part. of th. Ptoj~

(d) Plaut SCherer.

A ten percent' undivided Jnterest in the four 810 MW nominally nted co~*.ffrld IlDeratinl' unJb to be mo.-n II the Robert W. SchUir Steam PLant U'nits, Nwnbus ODe. TWo. ThtH. and Fow, (ind.1vici'Ll..lJy desflnltad u ~lter Unlt No.1. Schver UQit No. 2,,*Scbmr Unit ~o. 3, and Schmlr UDit No. 4, and COUectiVlly dlllpited u Ibnt Scherer) to be located neu Fonyth in MolU'Oe Colmty, Oeoqia. ~cludm, for luch urdu (I) land delineated IIld d.cribId In Geoqia POWIl' Pompay Map Fil. N..as*9 dated Decfmber 19; 1914, containfDllpproxlm.at.eJJ twmty

.even bl.lrldred lan, toretbu with such additional Iahd of IPProxhnately tan tbou.III1d. trrU acquired or to be u:quind for use in connection with Ptmt Scberer, to be NConled fa lbe leCOMa ot tbe Clerk of Superior Couzt Dr MOI1rOI COWlty~ O.cqia and alllaru:l rlIbtl pedllafD.*th. .to, (ti) the tu:rblne-pa,-.tors, the boilett. the ha11.cUnp houdnl the ~e, the etacb. the l:!ooliD(

faciIltiu. the' associated lu:xWula and equIpment. and the relatlld tnnmualcn ladlitIAI an- u

, moze pUticul.lul1 dflcnOed la. the llWiroQ.lQentallmpll:t atalltm.en.t reJatiq to Plant ScbIrer; end (f.U) Iny,mod.. of ~. suppl:(es. AIel. toollmd equlpm.ent tor UA bi cOIIntdlOD with Plant Selimar, pcod:1ed. ber""'IZ'. lD the CQnt for Ifty reuon Borld1' are not !sUed. fo: tbal ~on of the Project dufFated .. Plant Schem. tb. (.dllt!ei dllaibed in tliJ. lUbpuq:nph (d) .baD. nat be .. pari of the Project. .

Ce) .Warklq Capital.

WorlcfDl Capital required b,. tha Authoritr durin, coastruct{on of the Project mel for tbe pJ.ac:fnc of the Project in opaation for pro'IidSDl 8ulk Power Supply, fnclW!fnr SuppJemmtal

Bulk Power SupplJ, to all the Partldpentl.

n. .rmtial 'lDnIm.&sion r.cilitf. Included mTh. ProjeeL Tho.se tn.nItIiiIsfoD' f~tllS to hi' a.cqllbed aDd. ccnsltn.tc:ted by the Authorib' dutSq the

. time pear to the Commudil Op.ratfcm DaW ot the l&A of the .enuatlDc lacilHil. of 1iI:Ie Ptojac" to .. completed .In order to meet itllnvatment rflponllblilty durlDllUc:b time In COIU'UIctlQD with aDY IIPIl.IDent lor an Illtqr.ted lzanl!D.l.uicm .yst.em to whIch the AutbodtJ m.,. be I partJ' 1.11 acconllllce with the provilhmi of Section 302 of the Contract.

Addit::!.onaJ fltilitlu...

Th. ad.dit:iond fldlItl. ot £h~ ProjK.t -haD be ihoae addltfa~ .ad lmfltOVemeaa to the electric IfDlll'ltlon. and ~ted transmJsrion I.mtl_;aruf to tIM ttansDduton ~ fac:WUu of the Projed prarided lor In clauses (I), and (Il) ot Sec:tl.OD l02(.} of the Contract. . .

G

SCHE01J'LE 01' ENTITLEMENT SHARES.

L PAlLTICll'AN'rS' EN'nTLEItfENT SHARES OF THE OUTPUT AND SERVICES or THE GBNE8.ATING i'ACJLITlES (INCLUDING RELATED TllANSMlSSlON' J'Acn...m:E8)

INCLUDm IN THI PltQlBG'T .

Th. Participants' Ent1tlemtnt Shares ot the Qutput. and sll'V'lctJ of the lene:ratinri lacf.UtW (mdudinl nlated tnnIudalOA fadllttes) ot the ?roject, and of dlI semCD pzmded by the AutholitJ' in accorduCI!- with tbe provisions 01 Section 803 01 til. Contract., lbaD for each Putic:ipmt be thqle Xntlt.lement SIwu let forth In the foUcrwiDglcbedule; pzoYided. bOW'lVtr, t.h&t in no eVl!nt ahaIJ the Ebtltlemnt Ihare olmy Panic.ipant be leu than that Id forth In the followiDf schedule lind provided. furthu, that in the avent. anyone Or mara of the poUtlc.l lubdlris10nl lJ.ted In the followinc schldul. Iban not execute II PDwer Sala Contract. with the Authorlt}'. the EDtItlf:ment ShUll of the remaininc Put!ciputb. as wcb Entitlement Sham are At forth In !ll.ch c:olumA of the lol1oTime schedule. may be inc:rtUed pro rata by In amount not exceedlnl fifteen ~t of IUcb Entitlement Shares In order that the SUID of the reml.l.n1J\l Entitleraent Shuu in eacb 01 the (aUDwinl columns ."hen 10 acijuated

. ,hall total 100.000~

EblJu-ll'It EIlWl.IIl...' Eatltltaeu&

J....u.a S.... l.ttltr SWe Alt., Share .&ltv EIItkI'.lI'It PInt S,taM :n.w P..,Uclpl.' ....f. .MI._lilt ..ufUlaUl' Ac1jutaa1

r; 1fa ACWORTH 0.810 1.418 0.644 .

1.220 .

0.618 1fa 0.614 ADEL 1.162 1.1&'1 ALBANY 14.1a1 120468 . 10.412 10.CN8 BA.:RNESVILLE.. 0*

• Q.469 0.422 O."'~

BLAxm,Y 0.981 0.J69 0.816 0.809 TOWN 0"8 JUllNSON o.08B 0.OS5 O.osa 0.088

BUFORD CAIRO

.CALHOUN 2_

0.n4 1.818 1.149 0.661 1.&80 2.638 0.560 1.801 "2.1tit 0.566 1.71'2 2.798 CAMILLA 1.102 1.104 1.08S CAllTDSVlLLE 5.2'r1 5.176 1.197 15.118 CO:r..t.EGE P AJtlC IUIM 6..878 'U09 'U&I COKHEBCE 0.760 0.&92 O.IB O.6IJ'l COVINGTON S*

• 2060 2.667 2.m CBlSP COUNTY 2.US UP S.!69 3.410 DOERUN DOUGLAS 0".129

1.101 0.1.28 2.640 0.119 2.60'1*

. 0.118 2.609 EABTPonrr 7.662 . U~ 1.101 6.976

.BL'8.EB.TON 1.1U.6 lJC5l 1.847 1.&50 EIUVILLE 0.247 0.268 0.298 O.S08 FAIRBlJRN 0,,", . OJ!G 0.666 0.6"*

FlTZGEltALD 2.&28 .2.'Ui9 . 2.896 2."2 FORSYTH 0.932 0.&'11 0.96'1 0.988 FORT VALLEY 1.641 1.616 1.B62. 1.1564 Gll.o\.NTVlLLE 0.090 0.0. 0.013 0.012 GJlni7Df 1.600 8.080 2.9154 2.912 HOGANSVILLE 0.831 0.808 0.296* 0.294 1

.JACKSON 0.542 0.61'1 0.499 O.~S6 LAJ'AYETl'E 1.638 1.618 1.60' 1.60&

LA GRANGE usa 8.839 S.B02 8.198 LAWltENCEVI:LLE 1.52'1 1.809 2.oat' 2.148 ldANSI'lELD 0'.061 0.036 D.028 I).o:rr

?fAlUE'l1'A lOSl 1lJ519 12.U8, 1l._

MONROE 1..508 :1..4.22 1.44' ,1**&1 MONTIqELLO . 0.S6'l US, 0.898 O.W MOUL'l'lllJ; 2.989 2.965 a.OSl 3.0&1 NEWNAN 1.609 1.645 U88 1.611 NOJlcBCSS 0.688 0:133 o.azo 0~.1 PALllETrO 0.%82 0.291 o.J2S 0.329 QtilTMAN 0."'1 0.'1'65 0._ 0.610 "SANDERSVILLE 0.887 "0.818 0.'M8 0.'116 "SYLVANIA 1.'16'J 2.639 3.042 8.019.

sniVESTER 0.1<< 0.&87 usC 0.978

'l'HOXASTON 1.299 1.217 1.216 1.220

'l'Ho'llWiV1LIJl '5.'188 4.894 ,4Ml9 4.a82 WASJDNGTON 1.018 0.194, . 1.089 1.Q!2

'W.JJST POINT 0.161 0.544 0.4" 0.424 WBlGllAll 0.086 0.109 0.121 0.l.24.

TOrAL 100.000 100.000 100.000 100.000 , '

Tbe Initial &U.u.mel1t Shan lit fortb abOYI .un be the "Bntitiem.ent Share fen: the period cOmIDendq with th. Commerdal Operation Date of B&teh t1n1tNo. 1 aa.d ~ ~mbI:r 81..

19'78.

Tbe BntitiePlel1t SbaJ:e After ilrst Ad~t .blll b. the EDUtJemint Share for the period cOIWDencinl JUluaa7 1.1919. and .dIn, December 31. 198.2.

'I'b, Entltlcn1ent $ban! :After SteQnd Adjurtri1tnt ahaJ1 be th. Entltle!l1mt "Share for t.he period commeZ1c:i.Z11~an1.W7'1.1983. IUld eadhl, December Sl.198S. "

'The EntUJame:nt Shan A:.ftar 'l'bi:rd Adjllatment .h.!1 be the- EntltIeutent Shant far the penod commeru:1D, .January 1. 1984. and .adin, with' the last dar of, th. term ,

of tbl.Contnct.

The Authority. mlCcordaau with th. pxo'fillona ofSiction at1 oitha Contrad" wm.1'"

pottiQQ of the' output wi 'MrVfc:1I of tUcb undfyfded. tntaestl in Plant Hatds. PIImI VOjrt:ief Plant .

WIU\IlI", i.Dd I'\ar1t Scht.ru to Georpa Power Compllll ID ac!:cordlnCt! with the foDowfaC

~dul..!

.8

P.rc..uc:

OIl£t...

"hili ..

' ....er S.,N r~U a......_ .. c..

']'hat Portion of the Pcnra' &uppb- YUl' .

Rtmtaftdui AJ.t.B th. CGmmtn:1l1 Open.tion ,

Dat. of & Vult at tal P:raj~ 10.05 F1n1:FuD POWa' Supplr. YII.I'

" FoJlowbir oamtrdll Open.!oiOA Date fio.O" Second Fun PO'II'uSuppIJ Ya:r

FoI1crtriu ~ OpentfoD Date '1.6" ThmlFuD Pcnrll' SuppJ;r ~u.r FolJowiJII' Comme1'IlW Op.m.Uon Date 8"1,.6" Foutth Full Paftr 8upp1J' Tear FO~wiq ~ Ope.raUo~*D..te 25.o" lI'tfth FIID ',",II' Supply Yur Fol101riq Comm&rcIIl Operation Date 26.o" SI.xtb Full Pmrcr SuppJ,r y u.r FDUowia, CcmmadaJ Ope:.ratloD. Date 12.15,.

Seventh Full Po..... SuppJ;rTal' FoU01rine Commerdal Open.t:1ou Datil lU"

'IbeR -..u £d bI auy reduction in 'Entitlement Sba:.m Df tb.e Participants .. a zuult of luck

.... of output aad JeJ:YIca to Gtorpa Pow. Companrw IIICh l'f,ztIcipll3t IhIll remain liable for Its twl Brditr.meDt ShIn! except Ncb IlabWty ,ball be cUsdluPd' to the uteDt tM Authodtp receiva pqment t:ro&ra GtorP POWII Compaoy. ,. '

II. PARTICIPAN'TS' ENTITLEMENT SHAlU!:8 OF SERVlCES OF TllANSMlSSlON SYSl'IM .PACILlTIBS INCLUDID IN TijI PB.OJ!jCT.

'the Partidpanb t EntlUcmat Sbuea of SeMct of T.r:Iul'tSlJaion SJ1ttm l'acmlles tnduded in the PNfeet sbIl be dtteJ:m.iDtd by the Authozflr dlQiq eacb PO'tI'IIr Supply Year in ac*

c:ordanc:e wUh the provSllODl of s.c:tIon 308 of th. Coutnt:t. ,

lOWEll SALES CONT.RAC'r

.~t1..lN1Cll'Al. ELECTRIC .\UTH01Urr O'p GEORCIA mil

TR.£ UNOE.RS1CSED PARTICiPANT

,l"hb StcOnd .\Jncmlroeut ur Cwtnct. I'llcu:ie :\00 L'ntertd inUt :IS uf ~f:l)' 2!. 19ii'. by Ind bt.-M'I.'t'n Ihr

)'funfdpal Electric .hdwiry o,E Ccw;h'I. I putrlh: hod,. ccrptr.!.tc and JXllltie Olnd I publiC'. COrp4.lnlliolt of dll: Slate of Ccurgb. huefllarll.'1' SomftimeJ daiJIUI'\'CI III lb.. Autlwrir,.-, C'C':Itecf by W pt'O\'Uluns of 1 CL t.. 1975. p. 111':', u arm."Odcd. :lIId eM undcn!pd p<llitic:al , **IlC1i,-IIKlIJ liE tIM' Stat" N C~ .hc."ftfmtrtlltf

, -.omdilJ'la desl~lI:1ted .. the rarddpapt. .'

WJTNESSETH:

TH*.4- T:

UE it rcrucJt1~'1'ed thall,PO\1r $ala Cuntrad "nd an .-\A1cndment. both dated u of ltarch I. 19itl.

hD\'C" b~ pr.:,iously executed .

. br mel bet\\'ec:n the .\ulhority :u'ld the P:utldp""t, and wn EI\£..,5. the putil.'I dnire to amfI'Id aId Culltr:U::1 in C'erf".tln reSpects.

NOW THER!.FOltE:

, For and In comfderatlon of the premJ5es IlI\d thr nlutual tiI\~nants and _.r**mllttl.l 'hc!rfl:ma.fttr let Eorth, the suIflCitncy of whl'ch is hcreti,r aC'Jcno\\"Lrd,~ ,It II Ip:ed' by and bet:wtm the plUtla hum u Eollows:

ScctiOQ 1. SubHction 102( r) of laid l'owru Sales Contnlct whum -Proportionate SJwe" " defJOed II here2ly delded Ia its entirety.

403 b mbslilutad In"

,section 1. SC'Ctioa 403 oIlalel ConIr.Ic:t II bercf:l)" d~retc:d lrl its entirety ~CI !hi (ollowlnl M\V SectIcm thud:

• SectiOI1-4CXl. Supplemental Bulle 'OWf:t SuppJr THeft Dr Partiripunt. The Pardc:ijWIt.dWl talC'

aU uE its SuwJemeataJ 8~Dc 10""1:1 !uppi1lrclIl tbt Aurhorit)" and ~J FY to tlu! Authority Itl share 01 Amlua! Sullptementd Costl set forth In lhe ~dpafttJ month)" JJdJID, S~cmcut at '

determined in .ccOrd&Me with- ch. roreaClfill pl'O\lIIons r:l this ArtIcle !,...... Mmfltell br tM Authorlfy to the Partidpa.at."

Sectfon 3. Satd Nnendmml dIall 'be etfec:tl\'f: ror uc:b P~dp:lnt u Dr the time of the M4Y. 1Wi.

mf'l", rudJnp. TlIe Allthority h. how,\".,. 111thorizrd to m,ke adjllstmenb rrom workln, a.pil:ll far the perilHl Innn Febrwuy 7, 19Ti. tu the cEff.'C.'th'. d:all 01 this Amtndmt'lit to oSf*SC't tIw IUIlUUllt blr whlth the or lot;J or uy l'utIdJlllnts actual biJJlnp cJlO"fnlluda pttfoc:I clCft'ClceJ \\iaat tlw totlr 1'Ud! b.iunp ",ould h:l~'t" been under the \VR*9 rite. laid adJurtmenu to bl; i ~t oE power .up", dn.lop:t.Mrtt.

St'ClSon t. Said Contract .lh~U ranaba hI lull lon::t :and .eRect .. Mr. amad_

1

.............. -., ~ ...* ..

IN "\VJTNESS 'WHEI'lEOF. 1'bc )'unIClpal ~c: ....u\borlC1 of ~ .....cJ, tl.. P&ri:Iei.pc.nt 'hAve ClUlcd thIJ ~coad Amendment fi Conlracl 10 be: oecuted ill their corporate DlIn'ICI by their duly.

autbOrfi:eCI 0EfJcers ..t their c:orpatate ,,,a ID b. Lrlcunto impr~~d oad "H,:sted. all of the day and

'leu lint ~e writta. .' . . . . . '

MUNICIPAL ELEGntIC AUTHOBJ1'Y OF

• BY, d~*

An, .1J ~&.~iiii

• 'llitASUR

~

e*,

nmm AMENDMENT POWER SALES CON'l1tACT BE'IWEEN MUNICIPAL,ELECl'lUC AtrrHOlUTY OF GEORGIA AND THE UNDERSIGNm PAllTICJPANT

, 'Ih1I 1hitd Amaldmcllt of Contnct. m.de md entlnd tDtD u of Flbnwy 1, 1971,137 md bctwuD 1M WwUdplll Eltct:dc Authpdty of Geoqfa.

• public 'body coIJonta I!Id pdItk _ * 'publ; cmporadoa oC !be State*ot' Gcoqla. htldDaftar iOlDltfzall dclipatad u lb. Authodtr. enatlld bJ duI pJa¥I.daIu 01',1 Gt.. L i91S.

p. 107, II amClAkd; and thl \1IIcWaiped politblllUbcl1YkSoa of tba Stall ofGeortra.Jsaef:aafttl IODdmts d&1fpIU41S WI PtrUcIpIilt.

WIT NBS S B T H:

TBAT:

. . 'Ja It raaembaed that.* Po.u s.rn CoJlblct mil 111 AmcDdmat, 'both dI:Ccd u of Wadi. 1.1976, an4 *

~oa4 AmlndmCut datad IS olllay 25, 1911,hid bea pre'lioady u&CVtlld by md ~ the Anthod\;v, and the PutJc::lpIa~ UId WHEllEAS. Ilk! Ccm.tnct cOII1anplatn thataddldoul projecU mq be ~ 137 the.wlhDdty to ,roo

..w. I pattioD of thI'Pudc:f;pmt'. bulk ,oMr requfnmmU, _ f~ II a.cw dIemecI flllllbk ad ~ by the Putkipat m4 tbI Authority that the Ambodty .~ IIIdltfaDil ,.cratfq"'__ to plU'llde

• pordoq of dreq\llnmll:lt.t,.md WHEll!A,S, 'IhIt hrddp.}lu dctcmW:aed to Ill!'r into

• Project Twa Powu SaIea Coai:r1ct of h'CII ~

hermth with 1ba Authodty Ia order to lub.. fbi .Authodtr to blue Its mea.ua boaa to JIIIIt duI COItI of IIQo ,

CJIddq IIDd I*IIUVcdnI ~ l'1ro nwmd to K1cnr IIld to eubll PutidflDt to l'III:elft aatpu.t mel. rdalltt.

. . . . from l'IojlCt two.m4 '. .

WBERlAS, It II q.ec~ II1d desInIU to ama.d tba

• l _ siJq c.tract. CCIIUIat.at wi1b 'IhIt Bod

.R.ucIDf.toa. to uabI. duI Authodty to ~ ma md dwpa. Ir daiItt.,.; to I'ICO\IIII COIICI. at

• ccmbJaa4 bull tor ~ :adk POWEr Sup,. ... dMI outpllt appDad Crem Plo,fIc:t Two ad It:rJ Ad... projKtl lqr whIdl1'l.rtlt:Jplllt m.I)' execute ~ CCQtnct; 111. to ullbll the Authodty to ~ ,acWdcIUI1 tnmIcdou "ith

,zapcct m lht qgtput* *nb. of the Projoct Ibc.mmdu. .

NOW TBEREFORE; For* . . ill CCIIII!deritfoa at dY p%Cllhu Ill' the mu'tllil CQ'fCII.IIIU md fII'UIDCJlu b.ctI:IDatlu '!It forth. the

~ of wJdda "banby ldalawJ.apd,lt Is lpIed by 1ft4 betlireGl the partial hento II feIIawI:

J

e. '

SccdOII 1. 'nuI'owes Sda Coxmut. U IImcD4&d.1J herelly Furthic lmuuSed lIy tddInl it ~ aDd 01 Soc_

J02 1M rollowlq dti!Dldau:

(lr.) "Plvjec:t Tf/O" IhID melll the Authority'. let:ood pwjec' co~ of IMtIoGll '11n11h14ccl iatl:lUtI lu-J\mtl wlDi1q and Scherer. Kq1IIIct pullUmt to lID OPUQII qrcaNIct 'WIth GeorplVtrer'Campliq daud II or of A:ul"'t 21. lP7f. II 1IIIt.Dde4.'whkL project k de~ In SectlcA 102(.) the Project nrc, ?ower Silts COIltnl:t.

(y) "PtoJect Two Pcwtr 511ft Ccm~t"" abIIl meili that ClrUlu. CoDtnctdl1d .. ohM da1l her.of'bft.

tweClt

• Aulhorlty IDd t.bI.?lIti:ipIIlt II the 1ImI'tUf be I.lnUIdcd from t!JDo 10 timI. relatlq to !he prowbiOtl of autput u4 related Jel"Ik;Q from l'roject 1Wo to the PuticfplAt:

Sa:tin 1. 1lta Povm SUa CoDt.rICt.

• amc.nded, ii herebY further lI11Ioded by dtltlinl Sectiaai 401 in ita elltHely u:ul SII1IItIlUtiq la 1ku 1hInofthe fo1lo..-iiJl ..... Scctloa 401: '

"'$ectIaD -401. SlJppJeml:l.fa1 Bulk Power Supply ~ 'b1 the Alathocitr. *

. 1ba Al.nhodty wid pM'lde or Ct.UIe to be p~eclto the I'udctpat itl Suppillmenbl Bulk Power.

Sup(lly dwiDl nda IDQDdt of.e_ 'Powtr Supply Year. Sucll Supplcma1bl BuI:k.Powcr SUVPIY may m.

dude. but IhID aot.be Umbe4 to, pmfllllld Adl requirtalC21ts ftml p","f pvrc:hael. IIId UDlt power

.mae. !!1m ad aoa-laD capldty ad -1JY lIIVlce. trw'IIifIIIoa IIJ1kI (lBdudfDa trumnlssIoa

• .me. purchued ~ the Authot!tY to.llippJaneat Iho Partklpaat's EaUtJan\el1t SIw't ol trui.srnbaIon seMe" pro'ridcd 'y the knhoJity from tho. tnnlllnisdOll qrUm fdJdellDduded la the Project) md otlw is:Itlrchaop lemel II1Me IIftIabIc

• I ttsult oftransKtiou with othet utfUties.

SlD. J. The Power Salu ContnCt,

• 1II'lIC1!Icl. 1'1 hentby lUrthlt IMI!11ded by ddelint SactJon 402 In Itt cntDety u4lN&tdmdq fa JIIU thezeof tM fono\¥inl aft SediaD 4Ol:

• "'SectfOli 401. ltaiet .... Daarps rllt' SapplemeataJ IWk'Dwa Supply.

(s) The Authorlty lI1lIJ' ccmbiae tAl Anaud SUppl.emeQta! COltS wl1I1 due amud cacti Gf my fbQln: projM:~ uadlrt1lknl by the Autllorl1y. indudm. Project Twa, for wtddl tbII l'Ink:!pant hu ei_ted a c.cmtnc& lor- die Ol1tput IIC1d relata!!...., thmof. for the pIIlP- of ~ ,aInu!!

. . . . or tU AIId&o~ JIlt; uta"liIIl fot IDY ofIUCh costa. Of com~tIoII tJw:tof.llpllata ratc.a mel dwpI, ,t tilt dlscttdoo of tha Alltbodly. Ia eidllJ' cae III IC~ct w!th Gal pmlliQIII 01 SccUOIl 402 (b)l\mof. .

(b) The AJrthodty ~ estalllllh mel maintain fail II\d DOl1diacrin11natoty rzf.II mil dlv. . which wm protide ~ thai lie 1UfBclent. but 0"" sutnda.l1t" to pay the AMuIl SuvJUmtaUII C_

wbe.r or IIOllUda COIla VI comIIi1ud with the .IUlU" cOltS of ay fIIftlft projectsUlldeEUbD by the

~tharity. fnclwUnl. Projact Two, for output and semces of whlcb th.Il hrtidplll.! hal a=tlld a COlI trICt. *.

(e) ..... kath.adty &ball b....1h. hnfdpaat eldl mal1th duma each rowe Supply Y_ by pnMr!.

fill the larddpu.t wltb 'a JI.Df.aa Stat&malt far NCh maatll ItL lCI:ordla.c:t wltb dI.II ratQ aalt cbaqa

~ pIIl1Daat to ~ foR&oIaI pnrdlfOlll of t!dI SetUon 40l for itl S'upplemal.W BaDe Po.,

Supply. Such. 1nG111hiy .INII.IDi Statemeat vri1l include , Cltdit for :IIIch dIlIvery poJa.t tn.asm1ai0ll fdJtLes II 1ft 0WDId. fhWrad or . . . . . by the Parddplllt. Such Bmlnl Stltemeat." be paJ4 lIy tI]Il'U1:Idp~t on or beta:c 1he tl.Dth day Irom tba datil 01 such bJll. AmOWltl doe ad DOt plid by 1ba Putfdpat 011 Or "fore aid datil" 111" aa Iddltfanll charp 010lll ud OIlH.alf' (1.1/2'.1).PIIfCIIIl' pel 1D000th lor eldi 1Il000th, OJ fiIctfon lblreot. u.odI the anount clu4f1pll4ln l\&JL A,*th. .zulohx:.\

POwer Supply Year, IdjultDlcftb of bmmp shall be made m~zdm:. with. till pmktaJu or Sctioa lO9hece01. " ,

(4) In the l?CIIlt dalt ~ Aathodty ~1tItilbhct n .... lDd char** PUllUW to Sectial. 402 (a) hereof to recORr. 011

• comblDe4 ball, Almud SIlppJcmcnlll c:..orts .d mauaI r:0ItI o~ my iutura pro~cta UDdeftlJcq 'by t.be Authority, IDdlldlq frqfact Two., far thI. output IIl4 1ItrYk:et of Wbi::b due PIi'dd.

p.t .11.. IPCUteli

• COJla.r. m. A.IIUlcIIl'Q' wID Idautt aa _ lIIIal Stltf:ac.Dt svtimlri.c4 by tJw AlJchadlJ to the l'uIIdpant puna.t to Seed= 4O'l (e) hcraof llut aDeNat 01 rlw ~ to be teo cd.. 4 by tM Al.uhority Ira t!ul 'anil:fplDt ,,,wlDt to IUdI ,afq ad dwps tlslt II alocabIa to 1M paymCII~ of mOlltbly ADDlld Supplt:meatll Coats. Such ItrUlunt shall be tfu= IIwnua to be recmed by L.*

" w_ : .

tho ADdlority tJ'OSD t,h, PartklpUlt )lot allOcatee! by Ihe Aulhotitj> to chi payment of CDllI af 1II,1UCb .: .

f'gcu_ projoc-tS PW'lUlQt to the CODlD~ rel.tIn. to .uth projecu.

StcIIoa .... The Poal s.JcJ Coa U1i:1. U 1m&!J.d. is hclthy Jilnhcr Ilnndtd b,1cnumbcrin, pmml SecQon l to~s.iiloQ "Uea), .Dch4~ auew Secllo.l!l JnCb)!'o. reachs loUows: . "

"'{b)Tbo Aulhorily .IILIY.*sa utlli:r.e.I8u. .....d cxdtuce electric ctPKitY illeS CIlCI)Y (10m. t.ha PartL:i.

p'aoC'. I:Atldimeat ShItII of Project Onl. wheACYCf. in III dbcrcJfoo. any IlICh UUJKtiOll can reucnably lit a,ecIM III IUIIIllIa 1IIore relbhle OJ econOJDJcaJ owllll Bulk 'neT Sllpply ~ the Puticlpanll.

TblID1Idpa1c4 pl'OCCCds rIGID lIIelI sale. or trlftllClJoN WD.IO tIM exuntpl'IClIcable. be mtnwccllrl

. . Aarsual S:Y-- JWFt IInIIl my nel meDUeS IC'CUaI1)' reuMe! by tha AuthorilY as 11 rault or8ICh

. ~ JbaII .. cn..... lI:d to the Parttcipmt"S' EDUtlcmcnt Sb.a~ of Annv.d Project Costs under Ule

. . '.Powe; We. c:::a.tnct."

~ $ *.s~' ConllKt Ihal rc:maIQ in ~uJJ r4mt and tlrecc at helcfn amended.

IN .wrl'KESS 'W8ER.2OF. n. MuDldpIl EJoctd; A~ or (;e0rP .lId the Putidpaot llhC nused thii J'd AIMtUfmea& .f CoaIllCl to lit a.~ lit lb. COIpOhlte :aama 10' their 4111)' 11Idlodi,d ofDceil add.

It CDJpOrIfe NIb to be hulwJro IrapmMd * *tldted, 'lID or the * .,.Uld )'** f1rit .1ICM wtltth.: .

MUHICIP.A1. £I.ECt1UC AUTHORItY OFG!O

)

FOUR.TB AMENDMENT PO'\\'ER SALBS CONTRACT BETWEEN MUNlClPAL ELEc.rRIC AUTHOaITY OF GEORGIA AND THE UNDERSIGNED PARTICIPANT Tht. FOurth Amendment of *Contra.c:t, D:l1d. and ente.red. into u, of 167 1, l~, 'bt ID4 between the JlUJdpal B1eetrlc AutborllJ of Georaf,a. a pubUc bod, corpora. and politte.

and .. pgbUc cozpora1toD of the state of GeorJl.a. hereine.tt&r lca1et1mtl dalpated. u the Au1horl.tf. ereateet 'bt the pravUlODJ of 1 GL 1..1175, P. 10'1, U amendtd, azul the w:ule:ndpecl poUtiw au~ of the State of Georlfa. hu~ sometimes des!pated IS the Pa:rtSc:f*

~t.

WITNBSSllTH:

THAT:

Blil it r!2J2embcwd that .. Power Sales Contract and III Amendment, bOth 4ated as of

.Much 1. a18. a S~d Amemb:nent dated IS of 1&, 25, 1m. and a TbJrd AJDmd.tnent claW "e'bru&r:r 1. me, have 'beG pAI'If.ou.rlf Ixec:ated by md betwllfD the Autbnrlty and the Partf.c1pl1d, and '

w.BBR'ZAS. the P~pmt md the Autbon\f han de~ed. that it ia m. 1he.I:r best .'

!ntu'atl &0 sen the AuthoritY. mter..... mSe!Ie;er UD1ta?:'brce md FOUl' ha ueh. of Project'One mel Projeet Two aDd to acqufn add.ttiouil ,c.e:i.tm. capacity 'lIQl:IMIDtbll,. equal to the hateres1lilo said in aeccrdaD~ with the provllfoDl of the Project Three Pow.. SiIles Contract c.ect into by the Paridpant aDd the Authority AI of t!. da~ of thla Amendment: aud WHEREAS, it !II 111C111U'1 and desirable to amend the Ilia Power Silel Contraet" eon dstmt 'WIth the Bond ReIob.rt:Icm. to (I) ~ the Project 10* ... to exc:l\lde the intll'ati in Schaer UDitl 'l'bree ad lev wb!d.\ 111'1 to be rBIpoIe4 of bf the Alrthorlty, IlId (11) to :rev:IJe the JCheifu1e of Illes of output IlId .G"VIcu from Scherer Unit. One wi Two.

NqW TBERBFOB.'8:

For ad in couldei:atlcm.of t:be prem.flea ed tilt mutual CDYeZUlDQ md apeem.eIltl herIto laa.ftel: aat fatth, t.be Iu.ftIcItIDCf of which ia hereby acmowledced. !t !II .gr_ by and between the putlell1ereto .. fo11om: . .

Sectioa 1. TIle .ttacbtae:nt to the POWII' Salu CcmtHct entitled "DESClUPTION 07 PBOJ:J:CT"; II amended. iI herebJ. further IU:l:\aCJed "by detctIDg RCUon I(d) in!t.. ent.iretY, and I.'I1blUtu.tmlm Um thereo:ftlle foDo'lllinllRtfa led): '. ,

"Cd) Plmt SellerII'.

A teD perceDt undSvfdea haterest in the two 810 lrIW nomtDIll7 rated eoaJ...fb:ed Il.lleratinl unitll tQ be Dawn u the Rabert W. Scherer SteUD .P:la.nt T1idfl; NUDibera One and Two (m. .

'dtvt:cl'l1l1lIf duipatm u Scl:Ie:rer U'nft No. Ou 1IDd' Sc:lu!tW Unit No. Two) to be located nev l"oayth la' MGI'lZ'Oe COUDty, GtorJla, iDclucUD, for IUch =1:1 (J) lmld d.U:Juted md de

.eribeG In a.orp PoWII' ComPIDf Map l'Jl.e N....9 datecl, December 19t 18'4, coDtahJ.ini 1

.~

app~oximately 'twellty*Slven hundred aeru, together with iUch addJUonal land of Ipprcn:f.

mately teD thousand acres aequ1red or to be acquired for uae In counKtlOQ With Plant SC!huv.

to be rec:ordt4 in the recorda of the Clerk of SuperlDr Court of Yoaroe C~ty, aeoqia IIld all land. rJpts periIIn1n, thereto, (Ii) the turb1lle-gmeratora. the boSlIn, the buUdmp houlinl the same. the _c:b. the eoolin,. fadIitle.. the UIOCIatad .uxillariea mel eqUlpmct..

aDd. the related tnnsmtaion fadl:ltiel aU u more pu11tularl14Ucribed m the svil'cnuzlental Impact statemeD& rtlatbl to *~t Scherer, ,(In) Inventories a1 ma~, auppll-. fI1el, too1J aDd equipment fDr ~ In connection with Plant Seherer. and (iv) an amount equal to 5.0 pere.nt of the eommop. tadlities of Plant s~.n .

Section z. '1'he attachment to the Power Sales Contract mtitlcd "SCHEDULE 01" EN TITLEMENT SlIAllES"... amended. II hereby further amended by del~ Plant Sc:herll'

.!ram, the acbedule of Illes of output and saVk:Q to Georp Power Carn.PIU1Y. an4 addinr a new ,cliedule of aalu of output ~d .servicea to Geor&ia Power CampaDY frOID Seheru Units.

One and Two AI fo11owr.

"The Authority, 1n ac:ecrill1ce with the provisions of Section. 311 of the Contract. hztends to seD. a porUoD of the ~tput and servicu of the Project to Georlil PowerCom.pIDY in ac c:orc!a:ac:e with the fOJlo'Mnf'schedale:'

p:::rr. .

af

~~14~

Geol-._ J.lowv ,

Powv RtnAIl., y.., CO!!p!!l That Pol1lcm of the Power Supply Year Bema!n!DI AftI1' the Commerdal Oper~t1oil Date of Scberer UDitl Oa. or TIro 100.0"

nm lull Power Supply Year Follcrwfn, Commm:llJ. Operatlon Date .

SecoD.cI :ran POwa' Supply Yur l'oDowm, Camae:dII Ope-.raUoa nate 8O.0~

'i'bJrdFnU Power Suppl,Year .

P'ollowiD, Comme:dal Operatfozl nate '10.0",

Fourt1a J'ull Power Sum Yell' I'ollowbll Commerdal Operation nat. 80.o,r, ntth J'U1l Power Supply Year J'onowm, ComIDerdal Operation Date 5o.0~

Sfxth hl1 Paw_ SupplJ Year lI'ollcnrm, CCIDIZDIrdIl ~UOD Date Seventh J'Wl Power Supply Year P'ollowhl, Cozom,rdal OjIeratlon Date 30.0" ElJbth I'WlPoW!r Supply Yell' J'oJ.iowm, Commerda1 Operation Date 2D.O~

NJDth I'ullPower Supply'Yeu .

FoUowin, CommerdIl 0pti0D Date .. 10.0':'

'l'.be AUthority lnay. In ib d.facretiOll, ertabllah c:onc:l~ve c:om.merdal operation datu for Ul2fu 01 the Projeet for the pwpo.e of Ule foreJI)fDI Khedul. and II1cb data may be dif ferent tram thole CODUDerclal Operltion Dates estabUJhtd In ac:c:ordmce with Section 102(1) of the Ccmtnc:t. The edabUslnnent of the foreau, lCbed.ule II not 1D.tended to Umlt the power cd the Autllority granWd in Section Sll to sell anc! uc:haD,e power and. eneru tram tbe Project... , .

2

IN WIT.NES3 WBiREO', Th.. MUni'clpai Electrfc Authority Df GecrrSa and. ~ ~.

pllD't have eaUSlld uu. FolUth AmeDdmil1t of Contrad to ~ executeclln their corporate JW:Ilet

• b:r llleJr QWT authorized ciWcen and their corporate . . . to be hereUDto impr-euecl m4 at

\e.Stec!, III t4 the day and :rear ~t abov~ wr.Itta. ,.. ..

MUNlCIPALJLEC'l'lUC AUTHO.RrrY OrGEOItGlA

..~

FIFTH AMENDMENT .

POWER. SALES CONtRAct BE'l'WEEN MUNIOPAL ELECl'RIC AtrrHOjUTY OF GEORG~

AND

.THE UNDERSIGNED PARTIOPANl' Thir Fifth AmcDdmeJlt of Colltract. made qd eotered iato u of November 16. 1983, by and between the 1dunidp&1 Electiic Au rlIonty Of Gear... a puhUe body corporate am! politic and a public corporation of.the Slate 01 Gcoraia. bucinll'ter lometimes dailnat.cd II die Authority, cn:atcd by the provilJoid 011 Ga. L. 1915. p. 107,'11 aD\fl.ll4e4 critie 45-3*110 O.C.OA), and the undenlpcd poUtlcalaubdiviaion or the 'State of GearI' bere~r sornctiml:l dapted u the Participant.

WITNESSETH:

-BE it rernelllbcrCd that a Power S..la Coateact a~d a.a A.mencImtut, both dated II 01 March I.

1976, a Second .Amendmll'lt dated .. 01 May 2'. 1911, * '!bird /uDCll.dmcnt dated Pcbfuary 1. 1911. '

and a Fabrth ~endment dated May I, 1980. have '?C1l1l prcYioUJIy QCl::Utaci by aDd bct"eca ~e Aud!orlty attd the Partidpet: ~

WHER.EAS. the ParticiPlDt IIId the Authority baYe detemlned tJIat it is in their bat interests

. that the Authority undert.l.ke a rou~ project in acc:ordazsc:a with tbe prorillou of tho Project Four

. Power SalOl Contract attend into by the Putleipaat and the Authority II or lbe da~ or lhiI AmCQf!..

- mcnt. which is .....ona&11 upectcd to rault ill a more ecanomical ovarall BwD: Powcc SlI.pply to the Panjdpaat and athcr polIdc:II m....mron. caotraetiq with the Aulharlty therefore by maJdni the QQ[put IDd related IOrvicca ol.ProJcct,Pour.avaiJabJc to tile Partidpbt, and byell&blJnj the Authority

\0 n:aruft.e ccrtlia .... or the output Of the 'froJect and Project Four to ether' utllitla which II intended to improve l'IIbstutiallJ 1h matc1dD1 of lbe output of both the Projct and Project Pour to the l'articipaa1" 1I~ Power Supply rcqWremClltli and ,

WliEREAS. it is neaaary and dairable to amad die aid Power Sal. Colltraet. COIIIktent with the Bond R8IOJutian. 10 AI to revile the scheduJe ot wes 0loutpu1 a.ud ,erricct IJom Vo,tlo Unit No. 1 ad Vo,ltle Unit No. 1. .

NOW TlIDD'ORE For and .in c:oDlidlUatiaa. of the premisa aM'tAe mut\lal coYenants.aa4 qtCCQ1CJlCI hG'Cinallcr lOt rorth, tbl-.l1lfliclcncy of whic:la is hereby Icbowled,ed. it is a.reed by aud betwCCD the partJa hucto tlIat ...iel Contr.et is fUrther a:mI:I1ded .. roUaw.:

SattlOll J. Dc attac:1u:a.ent. to the pOwer Sales Colll1'l.c:t ,ntitW "SCH.iDUI.l! OP'SNTI11..B MENT SHARES", u IlJI1CIIdcd, is .lIereby f'urtlIer I.IDeIIdcd by deletiq the meruce to Plant Voatle

!rom. ~ schcdule 01 .lea'ot output ud I<<ricca to Or:a.rsia Power ComJUY. aDd. a.ddiq

• Dew IClu:4ule ot ,lies or output aDd I~cc& to ~eoq;ll Power Campaoy from Plut Vollle u loUowa:

, ""Tbe Authority. in IccardlftCC wit!lthe provisiOl1l of Section 311 01 the Power Sales ContraCt. a amcadccl. and subject to the prOYilioDS 01 tlIc AIM w. YoatJo Nudaar Units Number. One aDd Two Purdwe, Arncri'd.m&nt, Aaf,nment Ind Assumption Acreement, dated I. of NoVember 16, 1!~8l.

Heweea GOOlJ/& Power ComplJlY and !be Autbority* .Intends (0 sell a portioa or the output a:n4 Al"licct of iu Project One ownuufp cntitlcmont iD YoatJa Units Nv.mbert One and 1Wo to Geors1t Power Company in accordaDco with the loJJowin,lChedule: '

I

.~

"A.. As to 11.966'J1 of the output QIOCiated with the Authority's Project One ownership ertti&

ment in VOItl... Units Numbers One ud T:-o, ~uch sales Ibll be IS tallows:

Pn.. S9J!!rY-.

That PottiOD oC tlac Power Supply Year

R.cmaiDilll Alter the Collllilcrcia.l OpcntioD or or Date a UDit Plant Voclle . sO.a" Pint Filii Power SllVPly Yetr FoUOR, c~crdiJ Operatiou Dat~ .sa.o",

Second F'IIJ 'OIRt Supply Year FoJlo1fiul CQlnlncrc:i&l Opcratiou Date Third FuU Power Supply Year .

Fotiowina COll'lmm:ial Operalioil Date 31.S5 FOW'th Fun Pawer Supply Year FoUowiq CottImerd.al-Opcration Date 2S.OS fiftb FuU Power SupplJ Year FoIlO'lldq Commctd&1 Op.ratioa. Date, 25.0" Sixth FIIB Pewer SIIppl~ Year .

Follo., Commercial Operation Date 12..5" SGveftth fiIlI Power Suppl)' Year Follollfin, Commcrc:ial Opcn.doD Datc , . .. 11.S~

".I. As to .,.l"SS 01 the output auoclated. with ille Authority. Project One ownership cntitJi:*

mlDt in VOltle Units Numbcrs.One aucl Two. .ucb ..1. \1) CJcoraia Power CoalpuyallaU be cqv.al to

']oos or tile output and "meet bcamnm. with tlte CollUDcrdal Operation date of a Unit of Aut "OItle aad CODtlnWIlJ unti) the eJId' of die lourteeDth full Power Supply Yar rol1owinl the Power Suppl, Year iii wI1icll tbe Commercial Opera,don ot such Unit OCQU'L , " *

..c. A. to 14.Q;.,s of tbe output UlOCiatecl with the Autllority'l Project One owncnJdp mudc ment i.a Voatle Unitt Numbers One aDd Two, luc:b wcs to Georafa Power Company sbaU be' .:qal to 1005 of die outpu.t &.lid IUViccs bcpwna with tile Commeteill Operation date 01 a Uait 01 Plmt VOStJe and. abaIJ CClDWal&C until the law to occur of (i) rctJ:emat 01 such* Vail. or (iJ) tbe first to occur of Ule 1ItCIt date ltatcd lor th& .Plymat of the priDdpal ol.BOindl or of provf.liola bela. made for lUeb payman fa _ccord.w:e 'lrilh Section )201.01 the BcDd. Raol,don. '

"D. 'Ihe dtablilbmct of tlIc forcaoiDa Ichedul. 11 not iatended to limit tile pawer ot the Autbor it)' arant" in Section ] J 1 to sell ud exditllie ~r and enc:rJ)' (tOm Project One."

Sedioa 20 The IoUowina IICW lection to be knOwn III "Section 2)]" iI hereby .dded:

• 'Section 213. * .... COUDlat.

. The Participant -.,eeI th., it wiD not. without tile c:xprCdI written co.asent o( tho Alltbority, enter into lUIy contract pursuant to whicb a nonexempt penon ,.,.11:1 to take. tit to tako or pay ror. power parchucd from Project, One. For puJpoICI 01 the precedl.aa lentence. "nohex.anpt person" ,ban mean any "tit7 wl&.icb ilDDt * 'lite. territory. or poueaion 01 tho UDitcd. Sm tea. tb& District of Columbia.,

or ID7tMilltlCa! l,bcliviliOl1 thcn:oI'. and which b DOl cumpt from taatloD under Scct10n SOl of the Intc.nial Rcrinue code of 19$4. u amended." ,

2

IN WmESS WHEREOF, the MuB1ciP'l ilcctric Aumorily 01 Georgia and the: Particip&lIt ba.."c caURd this Faith ;Amc:u.dmart of CoAtrlet to 'be executed hi thdr corporate names by their duly "

authorized oliccrllad their corpat,atc sc:als to be hereunto imprt:liCd u.d attutcd, &ll or the ~te and yeu ,Ant above written. . , . '

MUNlCIPAL ELEct1UC AUTHORITY OF GEOJ.GIA.

Approved AI To FQ~ BY: tb "h '"'tnP:-l.Qc ~c_ _

Cha1rmu.' ,25 AU: ~ td* ,.(t on,;):::o",. (

Secretuy.Yreuuru .

Appr01'cd Aj To Form J

..", ..It... .;. .

glt'm, >>s9DENr ...

~SM.2S~

BB:IltE!N MlRICIPAL ELB:."'J.tttC AI1lBlU'l.Y or GDJmA

1'b1~ sixth ArDel1l'!ment: of Contract" DlIde and ezitered into as of JaOO.:ry 1, 1986, by end i:!&t_ the Municipal El.ec:tr~c lU:lt:bod.~y of Georgia, a public body corporate and-pelitic aDd a PJhUc c:orpora'tion .

of the State o~ Georgia, hereinafter somet.tme.'s refeI;re4 to u the AUtbority, created by the provisions of I Ga.. L. 1375, p. 107, as amended (Title 46-3-11D O.C ..G.A.J, and the unde.nignm political subdivision of the State of Georgia, bereina.fter saaet~

~ ~" .

designate:!

.. as 'the Partic1pu1t.

~

I 'r li E,S S E.or Hz BE I!: .rememberec!, that a Power Sales o::m.t:ract acd an 1.m!nd-rrent, both dab!d,as of Marc::h.l" 1976, a Secona Amendment dated u of May '25, 1977, II. 1h1.J:d ~t. dated f\ebJ:uary 1, 1978, II. FCIw:1:h ~

.neat &.ted May I! 1980, IIIXl a Fifth ~t dated &I of tbv~ 16, un, have all been executed previowsly by ana betweea the AUthority and the Part!i:!pantl am

'I9B:BR2M, , the CIty of OlCford ("Oxf~.) wh!ch baa previa:l81y .

received its 'Wholesale power supply frOil the Ci tl' of Covington has reqLJeSted to bec:aDe a Part.icipant, and

'~, ,

it is iD the but int.ereau of the AuthoritYI t.he Pllrtlc:il?ots and ~ord tor Oxford to bec::cms a 'hrtdc1pant ,upon the.

, all!CUtioa of a Power Sale. Contract.

e*

lor and in c~sidera.t1on of the premises and the !IIltual covenants ana agreements hereinafter set forth, ~. &Uffi~ie.ilC::Y of whicb is herel:)y ~ck.ntN~e4, it is ag.r:eed by anCl betweeD the parties

. ~eto I:hat. said Contract is further au.mded as falla.rrs:

sect:.1on 1. 'ltle Authority is hereby autborized to enter ioto

. a "p~r. . Sales CoDtrae"t" with "

o~~ in :substantially tM'fom af! this

~

POwer Sal- Ct:lntI.;ac:t, u aJIlI!nded. with &lX:b ~es as JD4y be reqnired to melee such CCIl'lt:ract 'applicable to Oxford, "

and to praY'.i4e OXfodl with

~ Enti~lement Share.of 0.191'. and an ~ppropri~te Tran8m~as~on Entiuenent Share. ealcula ted in aceordance with Sectioa 30a of the Power Sales Contract.

Section 2. "l'he lmtl'odty is autblrbed. ~ previae a port.ion

~

of OXford t s EDt!. tle.ment.

.. .Share

,,"- . from this Part'iclpant' 8 !tnt! tlement Sbare pro rata with tbe othet .PartiC.!pa:ntB appr~ing' this SIxth

~.

Section 3 _ 'l'his Participant agrees to ccmtiiu:Je oblJ.gated far its full EntiUement Share without ded~tion for the pro rata portion .. signed by the JWtbority to OXfpml" Prc:IIdC1e4 b::Jwaver. that:

the Aa;ltbn'ity hereby agrees that it will taka all necessary action to

" enforce the payment of all sums due by Oxford for .ita Enti tlement

~, and this Participant shall receive credit:. for ita pro rata.

csbu:e of such psyaents.

, Section 4. '1'h1a S.ixth ~t shall baocma effect:.i". ~

such 8J:I!lldment has been IIp'awd' by' Participants whose 1~85: 'l'ranl!llllis eien. 1nt.1tl.e:rleni: Shares represent, in the ~t:e, not.less than 751 of the tctal. Participants' TrlUlsmission Entitlement ShU. . for 1985&

e,

.J.

prov i ded, 'however I that the 'JJtt)C::irHy may make servlc~ to <?'dort!

retroactive to January l#.. 1986.

IN WITNESS ti1D::REOP,' .the Municipal' Electric Authority of ,

Georgia and the Participant have caused this Sixth Amendment of Contrac:t to' b!' ,exeorted, in thei!-" ~tpQrate MID!S by t,J1eir daly aut:bct' bed offic:ers and their corporate seals. '.to be heretin~o !~ressea and lIpptovec1 AS to Form '

ytyg{H

e, .'

\ . ~

SEVENTli AuEMJjEHT

\

POfER SALES CONTAACT BETWEEN

't.a..WICIPA( ELECTRIC AUTflJRlTY OF GE(lQG1A AND THE lKIERSI<J.IEO*PARTICIPANT Th i s Seventh AIIendment of Cant ract I IIlade and entered into as of flay 31 I 1989, by 'and between the Iluniclpal Electric Authorit~ of GeO~gia, a publ.Jc b.ody corporate .nd politic 'and a public corp~ratiDn oft~' S1ate of Georgi ** hereinaft~r sometimes refer,red ,to u the Authority. creat.tId by ths provisions of 1975 Ga. laws 107" as amended (O.C.G.A. § 4&-3-110 *. !! seq.),

and the underiigned political subdivision of the State of Georgia, hereinaftee sometillles des(9~ated as the Particip't:'t.

• WITNESSETH BE it remembered that a Power Salas Contract and an Amendment. bot~

dated as of March 1, 1976. a Second Allencinent dated as of Yay 25, 1977 **

Third AlIandment dated as of February 1, 1978. a Fourth AmendllM!nt dated as of May 1. 1980. a Fifth AIIIendll\ent dated as of November 16. 1983., and a Sixth AIIIendment dahd as of Januaiy 1. 1986. have all been executed prev.iously' by and between the Authority and the Participant; and' WHEREAS l the Participant and tha Authority havtl deterllift!ld that the financing, of transmission system faci II ties after the connercial' operation of

,Vogtl. Unit No. Two is to be continued as a P!lrt of , ProJect Ont; and

.Ii WltEREAS, a contraC\with the Southeastern Power Adtlil\iatratiort (SEPA) permits the Author j'ty to wheel 'SEPA allocations far Il'lmicipal preference custom.r. within the State of Georgia.

NOI. lHEREFOOE For and In consIderation of the premiaes and.the.llUt~al covenants and

'agree~.ntl hlt.re inaf~er set forth, thi' sufficiency of IIIhi~h . is hereby acknowledged.*1t Is agreed by and between the parties hlreto that said Contract I. further amended as follows:

Section 1. The Power Sat.. Contract. as amended. is he~eby' further' Ulended by deleting subsection ~~(s) In its e~thety, ape! substitutIng a new

~ -. "

subsaction 102(s) to read as follows:

,It(S) 'P~ojectl shal I .ean those. electric' generation 'and related transD'lf IS fon faclll Hea which' Ir. Ident i ned in the Description of' Project and those transmission systell fac,llllies to which reference I. made In the Description of Project, together with (0 any lIaJor renewall, replacements *. repairs,' additIons, b~tterllents, and impro..,..ent. necessary, fn the opinIon of the Consulting engineer. to keep the Project in good operating condition or to ,pr~Vl!lnt I 1018 of revenue therllfrom, (ti) any Mjar additions, improvements.

, . repairs and IIOdlficafionato tn. Project alld any. deconmlsaloning 'or disposa Is of the Project. requi re~ by any governmental agency having Jurisdiction ov.r the Project ar for whIch the

e.: ,. ' .

• • 0£ ......

Authority s~a" be responsib\a by 'virtuo of 311y obligation of

. the Authority arisIng out of any contract: to which the Authorl ty. may bo a party relating t,o oWfltuhip of ttllll .Project or any facility thereof,. and (iii) working c8pital required by the Authority during construction *of the*

.Project and for tho placing of the Project in,operation for prov.1aing Bulk Paws r Supp Iy, and SEPA po~e r to the. Pa rtf c I p~n'~

• H Sectfon 2. The Power Sales Contract. as amended, II hereby further amended by deleting Subsection 3Q2(c)(2) In Ita entirety Section 3. The Power Sales Contract I as' amended, is hereby further amended by deleting lubuction 308(b) in ita entirety and by substituting in*

lieu" theteo~ a naw* a~b;ectiQn. 3OB(b) so t~t when so amended subsec"tion 308(b)

<<hal I read as foltows:

Web) The Authority may ,assume responsibility for tr~&mrssron of SEPA' power to'Partielpanta and other customers of *SEPA. provided that the Authority shall recover at JU$t ita coata for .uc:h translllissi'Qn service.'

During any Power $upply Year *In wh i.ch the Author.ity* has respanslbll ity for

. transmission of SEPA PO"", such trans.iss.ion ser'llce shaH be prOVided b~

the Authority to the PartIcipants 'and other CUltOlll8ra of 'S~A by acceptlng

, del ivery of such SSPA power from SEPAl for the accounts of the respective Participants and ather customera of SEPA., and de\.lvering sucH SEPA power to 'such Particlpanti and 'other custOmers through u.. of the tranlll'ulon system facFlities included in the Pro1ect, and the Authority Is authorized to, incr,e.,se its investment in. and the annual operating costs of ,auch transmission .yatem faeli it i~. , aa may be requl red to provide such

transmissIon *'servlce *. The charges for swell aervice shall be calculated and collected by the AuthorUy" . as provided in Section 308A hereof. All iUI'IOl.lnts collected by the Autho~ity for such. transmission nrviee shall be appropriately credited to Annual Project Coats in the Sale manner as other credl ts pursuant to .Section 3~1'hereof _."

, S'ee!"lon 4_ The Power Salei' Contract, as aJlended, " . is neulby further" amended by adt;llng a new section follO'lltng SectIon 308 to be designated Section 3081. to read as fC?llows:

"Section ,308A. Calculation of Charges for SEPA Trans.issJon Servfce.

The Authority shJll establ ish," rate (expressed in dollar. per ki lawaU per month and detemined uti lizlng the annua. dollar coats and bi II ing determ}na":a) f9 r !Sell IIOnth of the Po..er StJpply Ye~r for' purpoaes of .dellverl!'9 SEPA .pow~r to the Partl.;ipa~ts aneS,'other cu.tomer~ of sePA which are not Parti.cipants ('nonparticipant cust~~SI) for each lIIonth of the .Power Supply Yea~. Such rate shall be determined for each Power Supply Year by dividing the .sum of {D the Annual Projec.t Transmission FiJt8~ Charges, (if) the bthu Annual Project Translll,ission Costs. and (ii/)

amounts. if any, which IIIU~t be pa'.d by the Authority for the purdlase of translIlissioli services for, the Project under its fntegtated tran.minion 5ysteld agre_en't with' other uti I IUel; in each case .. budgeted or eaUmated to be fncutred for the Power Supply Year; by the sum of (a) the highest annua, one-hour integrated co'lncldent ayatail deund of Bulk Power Supply provided by tbe Aut~ority to all of the Pa.rticipants, (b) the hlQheat annLlal SEPA cq~city de riveted by the Authotl ty to the

Parti~lpan~s' and nonpart{cipant customers, and {c) fen detrland credits and trall_iUloR losle., If applicable, incurre4 by the Authorlty under its Integrated transmission systain' agreement with other utilities that ~re.

properly ~tlocab'le to the SEPA capacity delivered to the ~rticipantl and nonparticipant custollers, In each* case to be' supplied dUring the Power SupP'y Yeari with the reJult, further divid,ed by the number of mcH'1t~s tn the P~wer SUpply Year~ The 2IIOunt payable by each Participant and nonpart Icipant. euatCllller for each month of the Power Supply, Year ahall be the pr~uct of the rate. determined in ac~ordance with the foregoing, and

~h:e SEPA capacity de I ivered by the Authority to auch Participant or nonparticipant, customer of SEPA during the respective month of the Power Supply Year, plUI 1 in. the clIse of nonparticipant customers of SEPJ, any

, app II ~b Ie C!lurchar.se. If

. Sec:tfpn 5. The attachment to the J:'OWtr Salos Contract enti tied "Deacription of ProJect", as amended, is hereby further amended by deleting

. the paragraph dllignated "Additional Facilities" In its ~tlraty and substituting a new paragraph to read as follows:

"Additional Facilities.

The additional facilities of the Project shall b. those add I t Ions and improvements to the electric generatfon and related tr~Sft)issio" fl-cilitin and to the tranallrssion' sylltell 1acllltl~s of tho Project provided for in dauses (0 and (II) of, Sect.io!, 102.(1) of this Contract; and those t ransmiuiQn SYltflll ,fac!<< ltles,. renewals, replacuents, repaI: r., 'dlspolals, and addU ions, ' bettlrll,nts,

irr.proven1eotl, and modifications th'erillo, acquired or constructed by the

. Authority subsequent to tns Camlercial Operation Date of thIS last of .the g~erat ing h.ct II ties of the Project to be cCGIPJete~ In ordu to meet i tl Investment responsibIlity in connection with My agreement for an integrated tnll~lssion syst.. to ,which the Authority may be II party *.

IN'WITNESS WHEREOF. the Iluntcipal Elecrtric ~uthorlty of Georgla an~ the Participant ,ha~e caused thIs Seventh .A.uendmtlnt of ~ntract to be executed in their corpor,ate n~es by their duly au.thol"ized offh:ers and their corporate sea1s to be hereunto impressed and attes ted. a II as of the date and year f i fat above written.

IIMICIPAt ELECTRiC AtJn<<lRITY OF GEORGIA APpt:pYED AS TO FOfII:

APPROVED AS TO FOAM:

AMENDMENT TO POWER SALES CONTRACfS BBTWBBN MUNICIPAL ELECTRIC AUTHORITY OF GEORGIA

. . AND THE UNDERSIGNED PARTICIPANT

'f:his AJDC!DChnCllt (the "Amendment) is made aDd eDteJed into 11$ of lm~ 14, 2005 by and ~ the Mualcipal EI~c AUthority of Gcorgia,. a public ~y corporate aud politic aDd a public COJpOfIl1i~n of the State of Georgia. ~

sometimes referred to as the Authority, created by the provisions of J9?S 0e9raia Laws 107. ~ amended (O.C.G.A. § 46-3~110, et seq.), and the undusigDCd ,political subdivision ofthe Sbdc DfGeorgj~ bercina&r sometimes de.signaied as the ParticiPant WITNBSSETH:

WHElmAS. the Au1hori1y and the Participant enteRd into a Power- Sales Contmd dated as of October 1, 1975. a First Amendment dated as of March 1, 1976, a Second Amcodment datcchs of May 25. 1977, a Third Amendmmt dated. as ofFebtuary 1. 1978.

a Fourth Ameadment dated as of May 1. 1980. a F"1fth AmeudmeDt dated as ofNovanber

16. 1983** Sixth Amendment dated as of Janwuy 1, 1986, IIDd a Seventh Amendment dated as ofMay 31. 1989 (hereiaafter "Project One Po~ Sales Contract"); aad

~. the'Authority mil the Participant entered into. Power Sales Contract dJded as ofFebfuuy 1, 1978. a First Ameahnent dated lIS of May 1, 1980, and a Second Amendmem dated lIS of January 1. 1986 (herciDafter "Project Two Powa- Sales Coutract"); 8Dd ATUVlI~1

WHB'REAS, the Autbority and !be Participant entered into a Power Sales Contract dated as of May I. 1980,_ a FiF.t .Anu:Ddmcnt dated as of jmwu:y 1. ]986 ~

"'Project 1'bree Power Sales Comnd~ and

. . ~ ...

WHERBAS. the .Authority and the Participant entered iD10 8 Power Sib ContJ.xt dated. U of Novc:mber ']6, 1983 and a Fimi Ameoc:bneot dated .. of Iazmary J. 1986

" {ha:eioa.fter "PIqjc:et Four Power Sales ~tractj; and WHEREAS. !be Authority aad th~ Participant willJ to exteod the tam of tJx:

Project ODe Power SlJes Coatnet. the Project Two Power Sales Contrad., tim Pmj~

'lbKlo Power Sales Con1rlCt end abo Prqjc:et Pour Powel' Sales ContnIct (berei:rlafter sometimes tefemd to collectively II the "Power Sales Contxactatl) to tho 1IlIXitnmn period II1towal by law; and.

WHEREAS*. tho Authority bu dete:nniD::d ~ it will DOt ex.U::Qd. exiating gmention debt, bot excluding cltiJtiDa debt pertaining to wcdiaa capital ;mel Ducl.,.. . .'G.~

fuel wortiDg capital debt compoaea1i. be)'oad the existing tam of the PoWIi' Sales Contaeta; aDd .

W8BR.BAS., tm: Aut.bority ad the PlWdcipant wish to proVide fOr a method of allocation of the output ID4 RrViClCS aad costs rcJatiDg, to Project Two. Project Thn::e aad Project Pour for 'the period of the 'b!Im extension of the Power Sales ConfrIcta pertaiDina

'- to auc:h Projecta as well as pmvidiDs for 811 _mdment to tho ScbeduIe of Ob1igatim Sha1:s ~ to Projc:d Four.

NOW* 'llJEREFORE,. tor . . in COIlIideration of the prcmiJes and mUlGll COW8IID1I IIl4 agreemca1s haeiDafter let forth. and in onter to provide b certaiD

-2.

cbmges in the Power Salel Contr1Iets, it is agreed by and ~eeu tho Authority and1he Participant that the te:nns of1hc Power SalOl Cold:ract IhalI be 1Dlcmd.ed .IoJlowl:

SedIoII t. EJ:te.... of tile Teria of the Power Saa CoatradL The Authority IIJd the *Paticipant. hereby extend the term of the PoWtl' Sales CoofDCta.. foUows:. .

(a) The term of' the Project ,One Power s.Iea ~ is henby cxteaied from MIrdl 1. 2026 UDIi1 June I, 2054 (hereinafter. "Project One TCIJD SxIea.sioa .Periodj.

(b) The tcDn of the Project Two Power Salea Contract is hereby extended !om February 1. 2028 until June 1, 2054 (hereinafter "Project Two T=m E1:talsion PenoN,).

(c) '['be term of the Project Three Power Salea Coutnct ishmby cxteDded fi:om May 1. 20~0 lUIIil June 1. 2054 (heceiDaftcr "'Projoct 1."bn;Icr Tc:zm

'Bxtmsion pmodj.

(d) The tt:I1Jl of the Project Four ~er Sales CoDb:1lct. is bmby

~ from November 16, 2033 until JUDe 1,2054 (hereinafter "Project Four Term BxteaWon Period"').

SedIo1I ~ Auocatiop ofPmj!5l Two. PuUeg TbrM IQd PuUect Fpur.

(a) lJpiea Two AUOCIIiop.

Section 308{a) of the Project Two Power Sales Cordract obUgate. tho Aulharity to p.nmdc to cech Project Two Paticipaut, ad obJiPtcs meh ParticiplDt to, tab &om 1be Authority. tho output and smic:es ofProjeet Two bued upon the rates and chirps establiahcd by the Authority purAIIDt to Sedion 307(a) of 1hc Project Two PoWCI'

• 3

-==:=:":~~:::::::::::==--=~~=~-=-=======:-=-=-=-~.-- -.---------

SaJes Comract. Tho Authority and. tbe ParticipIDI hereby agree that duriDg the Project Two Tam ExUmsioa P.c:riod the output and scrvicca and COlts of Project Two sbaJl be allocated 10 each Project* Two Plltidpaut based upon a percentage derived by dividing the total payments made by cpch Project Two ParticiplQt for debt seMco md for cap.itIl costs during the c:Dth'ety of the original term of 1he Project Two Power Salea Ccmtract, adjumd 10 prescmt 'YlIhtc, divided by t.bc total paymCits ~ by all Project Two PartieipmtJ for debt service 8Ild capital costs for the entirety of tho origiual teno of the Project Two Power SaJcs ContJact, also adjusted to presem vame (her'einafte:r "'P.roject Two Billing Shm:Ij. The Presem valms calculation shall be bated upon a dillCOunt '

factor" equal to .tba weighted. averaae i.Dtereat cost of deDt tc1lting to Project Two during the eutim)t ofthe original tcnn ofProjcc1 Two, (b) PmiC!Q& 'Three Allocation.

Sectioa 308(a) of the Project lbreo Power Sales Contract obliptcs the Authority to provide to each Project Three Participat, iDd oblipfell such Participard to take JioID. the AuthLlrity" rho output IDd acrvicca ofProjoct Three based upon 1hcndca and chmgc:s estab1isbed by the Anthority pursuant to Section 307(a) of the Projed 1'bree Power Sales Contract. 'lbo Authority and the Participant bcrcby asreo that chuing the Project 1bree Term Bxtemion Period the 0U1pUt and sc::rvi.ces and COItB oflrojcct 'l1Dee abalI be aUocatec1 to each Ploj~ '1"I:Re Participa beHd upon a pe.t'CQDlJIp derived by dividing the total paymc:.nts made by each Ptoject 'l"Ilfte Participant for debt service and for c.pibll costs dutin& the c:atinty of the ori&fDal term of the Project 'Ibree Powet Sales COD1nlct. adjusted to prcsc::nt value, di"Vided by the total p&ymmtl made by aD Project Three Participantl fur debt service and c.lpital costs for the ,entirety of tho original tmm of

-4

the Project 'Ibm: Power Sales Contract, adjusted to presart va1~e, (hereinafter "Project Three Billing Shares;. The present value calculation IhIll be hued upon & diIcount fae10r equal to the BVcnp weighted interest cost of debt relating to Project 11uec during

. the entirety oftbe original term ofProjc:ct Three.

(c) rmiectFourAlJocatjCIL Section 308(a) of the Project Four Power Sales Contract obligates the Authority to provide to each Project Four P~cipant. lOci obligates sw:h PM'licipant to take fiorit the Authority. the outp1l1and services ofProject Four based upon the rates and cbaTges established by the Authority pursuant to Section 307(&) of th.<<; Project Four POWel' Sales Contract. The Autho~ and the ParticipaDt hereby agree that during the Project Four Teon Extensim Period the output and senr:ices BDd costs of Project Fam sIWl be aUocated to each Project Four Participant based upon a pc:rcentage derived by dividing the total payments made by each Project Four Pllrticipant fix debt service and for capital costa during the entirety of the original tmn of the Projcct Four Power Sales Contract. adjusted to .prcsem value, divided by the totd payments made by all Project Four ParticipaD!lmr debt service and capital casta fOr the cmtiIety of the origiDal term. of the Project Four POWCC SaleaContract, adjusted to present value, (hercinaftc:r "Project Four BilliDg Shares"). The present value calcu1ation shan be based upon a diJCOlIDt factor equal to the a\'1n.gc weighted interest cost of debt ~lating to Project Four during the en1irr:ty of the o.riJinal kim ofProject Four.

Additionany. effective as ofNovernber 16,2033, which is the expiration date of the original feuD of the Projcd Four POWeI" Sales CoDlnct, the Schedule ofProjea Four

-5 ATUlln IM'lUkI

Obligation Shares shall be ameaded 10 that each Project Four Participant's Obligation Share s1udl be eqoaI to such P.ucipaotts Project Four BilliDg Sbate.

S8etIoa 3. 'The Authority hereby agrees that it shall DOt extcad the term oflIllY

=xiItine gme:ration debt. exclusive or existing debt pertainins to wor.kiDa capital and nuclear fuel WOIking capital debt compc:mcmts- beyond the followina daIcI: exiItiDa Project ODe ceoention debt sball DOt be <<XteOOed beyoDd Ma:roh 1. 2026; existing Project Two paention debt shall not be extalded beyond Fcbruiuy 1, 2028; cxistiDg Project Three gc:nentian debt sba.U not be emndcd beyoad May I, 2030; and exiJtq Project Four geoa'ldion debt sbaU DOt be cxteDded beyond November 16, 2033.

SeetioD 4. The Powa' Sales ComrIcIa as an'1aIded heroby abal1 contiDue in eft'ect a.od arc reaffirmed by the parti.... Temu oot clcfiDed herei:n an to 'be defined as in the Pawer Sales Contracts.

SedioD 5. This .A.maldmeut shaD become dfeetivc whea duly approved and executed aDd cicJivcml by the Padicipmt. IIDd wheu exeaJ1ed aad delive.red by the Authority. The Authority will 0Dly c:xewtc aad deliver the AmfllllC!meui whea it 1laa determined tIud the AmCDdmmt or similII' amendments have been duly executed and delivered by each oftbc eumm forty-Dine (49) Participants.

[Sigaatura Appear OIl Nm Page]

IN WITNESS WHEREOF. the Municipal Electric Al1thority 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 officm and the corporate seal to be hereunto impressed and attested, and delivery hereof by the Authority to the Participant is hereby acknowicdscd.

aU of the date and year fint above written.

MUNICIPALELECIRIC AUTIiORlTY OF GEORGIA PARTICIPANT:

CITYOFADEL

.' '.: ./,. . [SEAL]

-1

Attachment 3 Vogtle Electric Generating Plant Financial Assurance Requirements for Decommissioning Nuclear Power Reactors - 2011 Submittal Project Four Power Sales Agreement

: = ==

PROJECT FOUR POWER SALES CON"fMCf Between MUNlC1PAL

' . ELECTRIC AUTHORITY OF .GEORGIA and THE PARTICIPANf Da'ted as ()f Novem~e~ 16, .1.983

= a 3*1

• ,',/

PRomer FOUR POWER SALES CONTRACf Betlfetl!

MUNICPAL ELECIRIC AUI'HORITY OF GEORGIA ud THE UNDERSIGNED PARTICIPANf .. .

TJd. Contract, made and entered into u of Novembcllti. 1983. by IDd betwCCl the Municipal Electric Autbority 01 Gcot&la** plibUc body corponte and politic and a. public corporatlo. of tho Slate o( Georpa. hereinafter IOrDetbnq daipated .. the Authority. created by me pro¥kiou of I GL L 1975,.p:107, u ametldcd CrItle 4,6-3*110~ O.C.O.A.). and the uDdersfped poIitiCllIllbc!ividcm. of the*

State of Gcorlia. h~einlf\cr lometimu daianau.cl u the PlrucipanL . .

WITNESSETH:

THAT:

WHEREAS. the Pltticipanl all4 the Authority bave berctaforc entered Into a Power Salis Om- .

tract dated U o( March I, 1976, as ameaded. UDder whlcb tile Autllori17 became thG bulk pow<<

IUPPUcr to tbe Partldpaat. and said Caauact contemplates that addilioDil projccu may_ wdr.rta.kca by the Authority, ud baye heretofore eDtcreel illto a Projcc;t Two Power Sales Contract dat04 u or Febnwr 1. 1911. II amcacted, lad I Project TArcc Power Sala Contract dated .. of May 1. 1'80.

undCf which tha Authadt, acqultcd Iddldoaal projcds; aud ' .

WH.JmEAS. the hnidpaat ami the AuthoritY have determinecS that (t ia In their bCat int.c:n:au dial the AktborkY UDda1atc

• lourth Project whlcl Is rcUou.'bl1 capoGtA;d ~ ruuit* ill a mc:iro economic::al overall Jult Power SappJJ to tb4 Putlciput nd other poUtIcallubdivlatoal CODtn.cti.q with the Aathority thcrcl"or by IDII::UIS

• 011 tput and related scmca of Project Four avanabJe to the Participant..a:n4 "1 Cu.bUIl, tho Autharlty to Ral'J'l.ll,e Ce.rWn sales of the O1ltput ol PrvjOl:t ODe aDd Project Four to otJacr utiUdll wlaicD is !at_elect to improve IIlbitantially*the m.tcl!inl at the OGtpUt of botll Project OIle md project FOW' to the Puticipar&t's Bult Pawa' Supply tcquirc:mcats; ud WHEREAS. tile Authority will take or c&uso to. be tabI:!' allltcpl DCCCIIazy to leCUre IUCh 10000DDlcntal pemitI. Uc:aI.UI, ud. I.pJirovU u ~e. n~uy f<<, a04 'WfIl, th&1l proceed u appropriate witb .ftIIaJ dcafp. ilna.nc:iill a.ncl acquisition ad COftItructioa or th. !ac:ilitia hcreia dac:nW aDd dlllipated u PJojoct FO'I&r Cor the 'lIppl,J or eleetJic power ud eDCrIl to tbe Puticipaot ad to aU other palidcallUbdlviftoas cantn.cthiJ with tbe Authority there.for, aad ..m.n the outtnit IJId aemces oI.ucla (aciUtic:a pIIJ"UIIJ'll to t.h1s CoDtract and to CODtr&ctI witi otbcr JlOItic:aI subdiYi

.ions. dcslpted toJetbcr with the Partic;:lPI!UI U .~ Partlcipalltl-; and WHEREAS. m~cr 10 enable the AutiOrity. to issue. ita rcycalle llondl- to ]a'; tlJe COlIS of . :

acqulriq and cons~ctiAf Project. Faur it 11 necasar,y for tbe Aut!J.ority to have bludiat contractl with ~ .' _

aU pcliticalIUbdiril1Qlll of the State 01 GcorJia, pursuant to autlt;arit1 or I Oa. t. 1"5. p. 107, U

• amaadcd (T"JJ!e ~l-I lQ. O.C..G..A.). tbat ue Participants- ill Project Ouc. Two and* nroe. and aD pa)'JDCltl a \In~tlble to Project FoUr or to tile AAaUll Project Four c.u. u llerelnafter dcAacd. to be made in .cconIanc::c with or ",maDl to this Omuaet aDClsuch other C'OatradI chaD be p~pd u

~T for tbo fll)'ZDCDt of such Bo.n4s.

NOW "l'BJi:R..EFOR£: ,

For and ill couideradon 01 the: PfCmisa IJKI the mutual CCM:IUGts and III"CClIlCllU hcrcinaftcr set Ionb. aud in or= to payihe Authority for its COlts 01 prOYidina to the PartfcipIDt output and related.

1

lemca trom Project Four. Ind, to further enable tbe Authority to improve the Participant's Bulk Power SU.pplylhrwlh the rcarraDIc:mcnt or certain "lei to other lltililia or I portion of the output or both Project One lIld Project Four. lad to tw.ther eubte 'he Authority to ccmtIuuc to pt'OYid4 the Plrticiput's Supplaaltlt&1 Bulk Power SupplYf it is qreed by Ind belwcell tha parties hereto u

[oUows:

ARnCL£I .

TERM Of CON'l'RACf. DUINmONS SectiolllOl. Tum.

The tenu of this Contract .hali beaul ancl this Contract sban constitute. bindina obtlptioo of t.hI:

pardes hereto from ami .ncr its execution by the J.lSt Plrty to*w::cut.c the lame. The term. of thiI Contract shall ccmtlllue In CuJl roree and dect UAtilsu.c.b tIme, not ux:cedlnl My yem.u aU of.the Authorit)", Soada IS hereinafter defined or nota 'issued in lnticipatioa oC tho Usua1'1C6 of Bema I..Ild the intdt tbcreOD have been paid or pl'OYbioDi tor pa,.lIt lbIJ haw beca ma~ In accordlDCI with

.che prO'llisiOlU of dtc BODd llcsohatioZl or until such time. DOt exc:.eedhll aft)' (.50) )'CAtI. u Project Four shan be ret1ted frem service, decommissioned or disposed of by the Au~ority, "'hichc~ is I.ILter.

ScctSoa 10l. Deft.nitlollS tnd Explal1ltlOIli ofTenu.

M mt;d. herein:

. (a) "Act" .Wl m",n that certain.Act ot the 191'seaioc otlhe General AJecmbly 01 th.Sta~e ot' Gcorala compiled and pubUsbed in I Ga. L. 1975, p. 101.11 the same bu bt;cD hcrctbl'ore or may be laerQfU:r amended (Title 3-110. O.C.G.A.).

(b) "Annual Project Four Budlet" shU mean willi respect 10 I PoWer Supply Ycar.thc bud,ct or uccnd=i budacl adopted 'by tbe Authority pnfSU&Dt to SectIon 201 herco' whic:ll budpt ahalI coatah2 itemlf.e4 estimates or AnnUll Project Four Costs ll1d III revmu*es. iDcome, or,other fUndt to ~ IppJic4' to sU'Ch Costs. , .

, (c) "Annual Project Four CQ&ts" sblU mean. with respect to

• Powct Supply Year. to the Cltut not paid U a pan!4 thc o.t of Acquisition ud ConstrUction. aU casta IIId ClJICDIII of the Au.thority

'paid hJ the Authority durin, such, Power Supply Yca.r alJocable to Project Four w.bkh shaD ccDiilt of those itcJnl of cast and eltpellSe rctcrred to ill ScctfOll 30.5(b) lIcreol. .. Annual Proj= Four f"xxcd

.Charla and ~ Arunw Project Four Costs. .

(d) "Annual Project Three Costs.. lhall meaa those tGSts and exp.C1lHI dc6.necl ill Section 101(c:)

of' th~ Project T1Ircc Power Sal. C a a t r a c t . . '

, . (c) .. ADnufi Pro.fcct Two Costs" lhall meaD those c:osts ADd upenscs ddned in Section 102(c:) of

, the*Project Two Power Sales Contract. ' . .;

(I) "Annll&l SupplemeDtal Cans" shalt mea.u those COlts .nd expenses oC the Authority aUocable to the ~I or luf!li.bin, or SupplcsnClftal Bulk !'olVer Supply to the '-rtldp,.nts*

.'. (a) ::"'BoIlu" sUll Dlean the Bondi or other eridem:es of ind.cbterblFa Wued by tha Authority.

purI'IlQt to the plO¥fslons or the Bond Resolution to finlDc:c or rdlnanc:e the Colt of Ac:quiliticlll IDd Construction of Project Four. wbelher or Dot &Dr issue of such bib &hall be IUbordbaated u to pa)'lnCllt to illY other issue of SUch Bonds. lad sbaU \nd\lde addJtioual'Bonda isrud pumJmt to th~

provisions of Section -401 hcr~t Ind ruuudiol Dollcb ismcd PUfllllllt to the promicm.s at Sectica 401 her~t, .

• (b) "BoDd ResoJutlOI\" shin mell the GCJI~ P9'Wtr RcvCl1ue BoDd RuoilltiOG adopted and readopted by lbe Authority CD MarelJ 22. 19" and April 19, 1978, rapoctinly. u IrGlrl tfm~ to time lupplcPJected IJId amcnclcd by Supplemental R.csoluliom thereto. inclDdlnllhe Supplemental General Power Rcvc.uua Bond llesatUUOD al.lthorlzhl, Project Four to be aclcpterJ by the AutlJority ud accepted by tbe Trustee thetcunder lor the beDdt or the ownctl ~ the BondI which ,hall poriI1o for 1

the luvancc of Bonds, a copy or ....hich Gcneri.1 Power iUveGuc Bonri Resolution and Supplement.al (kQcta1 Power R.cVCDue ~oDd Rc&olutioll a"tbOOzlo, Project Four in ,uOIll1ldlDy the fonn to be adopted by the A.uthority .hall ~ on file in the n:cordI or the PartltipaliL Ci) "Bulk POW4r Supply" s1ia1l mc&1l.with rupect to i Plrtidput. aU electric: poW" and: eDCrJY required by such Participant in w:as 01 that amdunt (i) mppUed by oy Icncration I1Id transmiuion rescmrc:es owned. by such PvUcipant au the clf'ccUn date ollhc Power Sales Contract. (U1 ~ec:ciYed by

.v4 Partici.pa.at from the SoutbClStera. Power A.dministration (S~A.lt ud (iii) procured by IUch .

ParticlpaQt from atlCralle .,.lk power .upply raoutCel Ulaccordaace with the proriJioa. oC Sectron 4Q.4 Of the J'qwer SaJ~ Contract ud l1IbJcct to Scc:tioa 306(c) oC th~ Contrict.. .

en COmmerciaIOperatJon Datil" .ball mea.a, with respect to each fa.ciJ.ity DC Project FoW', the bc&innial of the day 00 whicb such CacUlty 01 Project Four u, in the oplDiOl1 of the. Autbority f procluc:iq and ddiveriq electric powcr aad ener'1 Cor ccmmcrcial use.

(k) "Coasu1UDI EDIin"r" .ball mean an etllinc:er or ellliaCenn, linn 01 national reputation havfn& dcmoutrated apcrtiIC in the ficJd oC e1cctric power Ir.ncratton. transmiuiOft. power .apply.

c:lccttie 'I1tDity opetltions, rata, and reuibiUty. .

(I) '"COlitrad" IDd "PrOject FOlir Power Sales Omtraell" Iban muD. relpcetivdy. this Contract "jth the Participant and all Project Four Power Sal. Contracts. iDcIudSq this Coauact. C:I1tered into by the Authority aDd a Participant, ill each cue .. the lime lUy be amcad.ed fnmI. time to time.

(m) "Cast 01 Acquisition aDel CoustructiOIl" shall'mean, to the exteut not i11c1udcd in Annual Project Four 'Casu, all COl" alUl expcnaes oC plaltAiaJ. i a i . aCllulrlq. consuuc:tlnl, IDltalliD&.

and &unciA, Project Fev. placin, Proj.,;t Four In opcn.ticm, icc:oinmiasionlns or dispoaal 01 Project FOIU' uid obtainins ,OYUJUDCIlt&lapprcwali. 'certUlcata. permits and Lk:cllli:l witft respect thereto he:rctoCorc or laerea!ter paid or incurred. by the Aut.borlty 1.114 11J&1 iaclude, In addftlolS and without .

D'mita.ti~ the (oUowiaa: "  :. .

(1) workin& capitll ami reserves ill such aiDoUAtI U DllY be cstl.blishccl punuaut to Ute Boad Resolulioa; ." " , . .'

IUel additiOuJ period II the Authority may r_bJy 4etcrmilll1O be IIcceuary Cor the 01 Project Fo,¥ or I1IY CIQ1iry tIIcrcofin OPctlUaa 1a accordl~ with the prorisloDl ot the B~d pta.,

(1) iatcrest accruflJlita wide or in part on Boada prior to and dlJ.liDa eonstrllCtion ud for RcsolutiOll, '

. (3) acqulsidon of iaitial Cud or Cud i.Qvcnto.ry ror cac:h ,enGation (adlity oC Project Foll1' and worIdna capital and rames therefor and worm, capital anc! rl:lCI'YCI lor re101.r1,Cuc:l1lld a,ddi.

dow Cud IDTCIltory. ' ." .

(4) the deposJt or dc,posl.. from tho proce.eds 01 DandJ isnacd to finance I\lcb COllI ill aDl rund or ai:cout establJshc4 RW'lUInt to the Bond R.csoluriOil to m=t Debt Scrricc n:scrvc: nMt~

JDCDU (or Bonds, (5) tla dcpCllit or chposits Crom the prOceeds or the Boada bst.ied to iiuJl~ neb cOlts Us any

, fuods or' accounts cstabliJbcd 'pursuant to the Boad llesolution as rearY. Cor fcnmls ad or

• rcpla~. ratitemcnt Cro~ .e.mCe. dac:ctnmlsiioDfni or disposal oC 1111 CaQlity .Project lour 01' c : c m M l e n c f a . * . .

. (6) tniains ud testln. CCIIb incurred. by the Authority, (1) prcUminal1mvestiption lDd devclopment coati, cnaincc:rina Ceca, I;O.lltractorJ' rees. costs or labor. materia1l, equipment. utility urriees and SUppUIII, aad lepJ aDd tiDindDs COlts.

(8) ~n calLI of Insurance applicable to the: period of COUtru~tiOD, and (9) aU other coats incurred by thc.AutborJt.y and properly alleeahle to the acquisition ud CODllnlctlOll of Pro.fect Four, b:x:hadiD, aU casts luanccd by the issuance or ad4hlonll Bondi p1ll'l1lant to Sectiou 401 hereor.

3

e, e ,

(Il) "Debt Service" sban m.un. with respect to any period. the a'p'e.ate 01 the amounts required .

by the &Ad ResoIutioQ to be paid dUrUsl said. puiod m.to all)' 'Cund or Cundr created. b)' tile BoDd ,

Re!Olution for the sole PlIl}'IOIC or payial tbe principal (indudml slnldq Cund wtaUmeDtI) of &lid prem!um.lC &DY. and interest all all the Bonds Cram t.imI: to time outstandinllS tk lime shall become or dllCt ptOYidcd, bo~eYer. t~t Debt SefYicc sban not include any ac:tetuatio.1l the maturitj ~ or BondI. .

. (0) "F1IeI Costs" shd meal &11 COltS incurred by tbe Authority durin, lII.y Power SuPPly Year that Ire aUocable to tbe acquisition, rlbrkl.tion, processillJ, reproccuin& transportation. deliverin.l.

stDrqe. DandliDl. arid Gispoal of Duclear fuel. maleriall required Cor the leneraticm f'tc!.'Utles oC Project Four. indudiq truslers to rit.sC1"l~ atabtisbed,b, tbe Authority ror such casU related to future POwer Suppit Yean. leu credits related to such costs applied u app.ropriate- tn the; discretion or the Authority. '. . . . .

(P) ~'Putic:iplftt" shaJJ mean the poIltiCl.lsubdiYisi~ whlc~ is a party to this CotI'f:I'I-ct. "Pactid*

panta" shaU mean aU political subdivilions in the Stile or Georsia whicb OWD aDd operate electric:

di$tn131.tioa systems to lem their cititens. IDhtbitlllU alld CUltomC1'S providiDI them with ~lcctric

" power INI ellCfIY aDd which are partica to COJ1lZUIs with tbe Authority ,ubltantiaUy iden~ to thb Contract. 'Ibc term "Plrticipant," II1d the ten!.U "a Pardcipll1t'~ or !'eacb Puiicipallt" shlU mcu.

aay one of the Pa.~cipI.nLl or each of tbe PlrdcipllIU.... the cue may be. "Pudciplll.t" sbaII include Ill)' COI1U!lissioQ.or alcncy or .uch poUtiat 'UbctiritiDll which operata or conductl or CJ.er~ jurisdlc tiOD aver In1 aseDtialCuuctioll or the Plrt1dpaDl'S elec:trlc. ,distributioa I)'Item. .'

(q) "Powct Sales Coatrt.et" Jhall ma.a that certain Power Sale& Conuact, U has beea heretarore or roa, bereaftc:t be ameadcd. entered. mto by the Authority a.ad the Participll.t is or Mareh I, 1916 (r) "Power Supply Year" lball mean the ca.!c:.adar rear, except that the &at Power Supp'l1:Year shall beliA 011 the earUer of (i) the date the Authority firn providca efectriC power and ena" hereun der, (la") the dlte to which Illlnterat is captaUud Oil aD Bonds. (lii) the date whicb'i. '11 moathl priqr .

to the Ute on which the mst prillcipll.lMtaUmcitt ... aay or the Bcmds is ave; or (Iv) the data'aD 'Which .

an)' .AlIbul Project Four o.ts become .Pt)"lble. .

(s) uProject One" sbaU mean that project detined ia SemoD 102.(1) oC thi Power ,Sales Contract.

. (t) ,iP.roject Four" sllall *melD. these electric pllcratloa lad related tranllniuiaa rlcilitfc::l 'Which

&fC idasdfted ill the Dacripdoq of P.rojtoCt FoW' attached to this Contract, tOI~t.her wltf:& (I) Ill' .Ijor

. renr:nll. rcplaccmenu, repairs. additlolll, betterments ad ImproveD:lmts Il~ary, ia the opinion of the Comv.Itina EDlmur. \0 kelp Project Four in ,oad opcratiDicondilioll or to prevent I Jau of revenua thercl.rom. (Ii) any mljor additions, impravemenb, repair. Ind me4iJlcations to Project Four

• ami any dr:coll11DilSioDinll or dbpoall ot Project Four required b)' any ,OVCl'1UDCllW l&erlCY ha'liq jurlldicdoll owr Projeet Four or Cor which Ill. Authority Ihall be responsible bl Yirt:\I& ot aDY obl!.a.

tioll of the AlIttaoril)' Ir_ina 01lt 01 Illy contract to wbich the Authorit)' ma)' be. part)' reJatiq to ownership of ProjI:Ct Four or auy fld1itylhereor. elb") reload IUd or *adclitionll f\.Ie.I mYaltol)' for uy ae.llClllUnlllcWty QC Project Four to th_ ~ent* dlat suBtcleat fundI are nat .va.ilablc to pt.1 the cost thereol. and (w) workina capital required by tb. A'Olhority duriDi COJ1ItrUction of Project F~ aDd for

• else p1acin. of Project Four In operation ud durina Iny period thereafter 'u may 'ric rCl.IODably required ill th. dircretloll. 0" the Autllority.

(u) ..Prqject. Four BWiq StatCDlCl1t" sJsan mc:u the writteu statement prepve4 or caused to be preplred moalhly by tbe Aut1lority that saall*be ~ upon the Anllual Project Four :Uudaet or upon the amended o'JInull Project rour Budlct that shall mow tbe mODthly &mOUJlt to be plid to the

'Autllority by the Plrticipant UDder chJs Coatrac:t.. , ..

(v) "Project Four ObJiJlti~ Share'~ shan meaD, With. respect tD I Partlcipant and Illy Power Supply Year. that respective percentile let [orlll in til. Schldule of Oblliati... Shira attached bereto 1114 hereby incorporated by reference u a part of tI!ia Cantrl.Ct, of the Annual Project Fou:r CosLl that neJa Participant is ohUalud to pay under thb Conlract. . .

(w) "Project Three" sull mean that project deftncd in Secdunl01(s) of the Project Three Power Salts Contract,

(~) "Projcct Three ~owt:r Sales Contract" sban mw1 that certain. Project Three 'Power Sales, Contract, as has been heretOfore or may hereattcr be amended, cntered into by the AuLhority and the Part!clpant as or May 1. 1910, (y) Project Two" shaD Ineln tbat project dclind in Sectioo'lOl{.) or the P~ject Two 'Pr:/Wcr Sates Contract. ' .

(~) '1'rojcct Two Power Sales Contract" IbtU mWl tN.t certAin Project Two, Power S&la Con*

tract, as has beell heretofore or t:n&y benarur be auacadcd, entered into by the Authority an4 the Participant u of February I, 1978. , .'

(aa) "Prudent Utility Practice" at I. partjwlar time ~bal\ mCln uy or the prwica, methods anlt acts CllSaied ill or approved by a .ipi6c&Jlt portioll 01 the electric utility industry prior to .a tlrnc. or any or the practices, lZLc:thods and acts which, in the uerdsc 01 reasonable judp!oCllt'ln upc or the fa= known at tile time me decllion wu made. could ave bcc:n expccte4 to accoJDplish t1:Ic" desired result at the lowat reuonable cost colliistCDl with goocll:lll1iDw practIccs. reliability, .dety uul cspeclitloll. Prudent Utility Practice is not illtc:lldcd to be Umltcd to the optimuD pn.cticc. method ar act to tbe ~cllISion of an othen, but rather to be a Ipcl:tr'llm 01 possihle practIc:a. m~dI or acts havill, dlle rclard Car mllluCacturetS' W1.1'TI.Dtlea IIId the rC'lwcmcnts of lo,ernmefttal a,enci. of, competeDt jurisdiction. In evaluating whether al1y lei. ar proposal CODtorr.ar to Pnade.m Utility PraO:

dec, tbe partiCilhaU take into acCOUIlt the objective to .achieve optirpGlI!l utiliution of the Authority'$

rc:sourc:es. ,

(bb) "Supp!cmcntal'Bulk power Supply" abaD meaD, with respect to a Partidpam. that portion or Bulk PO\1ler SuPPly required by ll.!Ch hrticlptnl in QcaI or that .1lppUcd fral ProJa:II ODe, Two, Three Ind Four. ill w:eu of the amcntil1& capacit)l rcrcrYO Icrricc. tn._loa Icrricc. Ichedulcd, emergoncy. or tCODom), iDtcrehaDlc sefYic:c, and suda oUau aeMee UIOciatccl with Projccu ODe, Two.

,Three and Four, aDd, unless othcnrilc providccl, in a.ccu of ontput ud related Icnic:a or aDJ'lutu.re projectr owned or controUed by tbe Authority ~rom which the Participant contrac:u to ~clectric power and cnctI)'*

(cc) "Uncontrollable Forca" means lay cause 'beYond the control of the AutlIOrity "bleb by the c;r.crcise or duc dw,cncc: the Allthorit1 is UDablc to pref~t or cwucomc. lndudiq but not limited to, failure or refusal of auy other 'persall or auty to comply with diu ex1stina conlraCIs witlJ the Autlsor it)' or with I. Participant. aa act of God, fire, flood, explosion. strike, ubotaae. pc:&1iIeac:c, I.Il act or the pullnc cnc:m.y. dYilaad. military authority iDt;Iv.dJca CCIIIrt orden. i1Qllnctiou, 1114 orden 01 ,OYII"D melltalapncics,with proper jurisclk:tioD, insurRCtiozs or riot, all actol the: e1cmcats, failure or equip- ,

a:1t:(lt. or IDibpi" 01 the Allthority 'or any contractora cfIII,pd hi work OD Project Four to a'btabl or aJdp materials or cqufpncut bt:c:ause 01 the. cft'ect of sUnlJu causa on lupp1im or carriera, or iu.'bO.ity of t1e A1ltharity ra &ell ~ laue it. B,onds or DOtes. *

(dd) "Uniform System of ACCoul)u" mc:an.s the tJa.ilorm System of AccouJltI far C1us A and B Public Udlitics &lid Liccue.C&,u prw:ribcd and, from dille to time, U l.t1lCQdccfor m~cd or I\Ibs~-'

tutioll thc:rd'or ~dc by thO Fcderd Encru .R.eluiatotY Commissioll or Its IUCCCSlGr. .

ARna.EU CERTAIN OBUGAnONS OJ' 'I'HE AtrIHORrn'

,AND THE. PARTICIPANT

&~dOD 201.. ~uI Project Four Budlet.. .

The Authority will prepare Ind submit co the Participlllt aD AnDual Projc:ct Faur Buclcet at least nin'ClY clays prior to die bcafDDina 01 cac. Power Sup,I, Year, The PartieipUlt may thClllUbmlt (0 the AathCritY,at a~y tim: Ulltn Neb Budlct is adopted.. ID,. matlel'S or sUllettiCllll rclat1q to lUeb .Budpt 5 '

wblch thc Participnt may ruc*to presenl Thc Authority sban then ptp"ed with the consideration and adopt\on o( hell Bud,et not less thin thirty nor more tban forty-five da;rs prior to the bqimJ.in1 of SIlcb POWCl Supply Year &Ill! ,ball cause copies Olsucb adopted l!udpt to be delivered to the Partid PfoJlt. provided., hawcvu, the Bud,_ (or the fint Power Supply Year sball be prepared. cODiidC:cd*

. adopted IIld deliYcrcd in the most p'acticabIe mallllCr ayailable in the discretion of the Authority. M requirccl-Crom time to t1mc durlnl1ll1 Power Supply Year afta' thirty clays notice ~ the Pudcip.~lt. ,

the Authority may adopt III lmended AMuaI Project Four Budpl (or and applicable to such Year (or the rcmaiader o( such Year.

SectiOlllOl. llepoaU.

, The Authority will prcpare ud issue to tbe Participant thc (~110wi.n, repons cach month of the PoWer Supply Ycar:

(1) FJnancialamS OperatiDa StatelllCDt relatina to Projc:ct FOllr.

(1) Statul'of ADDual,Prc~cct Four Budset, '

(1) Status of construction budlet o( Project Four durina c:onstruct.ion.

'(4) Analysia ot opera,lions rclatiq 1.0 Projcl:l Four, Section lOJ. ]tKords ani ACCOUIItJ.

The Authority W11l keep aecurate records &Dd accounts of each of tlH? tacUitic:a comprlsiq Project Four and of J.hc oper&tiOllS of the Authority in accordabc with the UDiform System or Aca:lUllu. 'Said acc:ounts shall he subject to a1l annual audit by a Inn ot independent ccnitied. public aClCOU1ltantl experiea!=ld in electric IIbli~y acurul1tiDa and of ;national reputation to be submitted. to the -Authority

-within siny days af\er the dose of any Power Supply Ycar. AU tn..osactlOnl ot the Authority rdatina to Project Four with respect to each Power Supply Year shanblillUb~to Sll.C?h an audit. A r:opy o~

the anDUll lildit shan be delivered to qch PvticipanL _- . - ,

. Ser.:don 204. Couultlq Enafnler.

(a) The Authority will rctain a Consuldn, Enain~ to a..ilt. advise ud ruh reeommCDdaucms to the Authority 0" matters relatir!1 to clectric power ICJlCratiOD. trUsmilliOD.1'OWCIt I1lpplY. electric utility apcraticw, ratcsand char,i:I. fua"bUit)' and budaw lad ,hall cause sucliCoDnluq Eqineer (0 prcpare withia onc"Al1l1dred lAd t""tnt)' dayr taUowin. tllc dOle. at. each PrtWCr Supply Year all

'Innual coJllprdicnsivc cRJinccrinl report with Rlpcct to Project Four tor the immcdilt&1y Prcc:cdlna Power Supply Year aad which Ihlll include a rcport ill reasonable d~ on the opcraliOJll at the Authority, mc/Udilll'U items required by the Bond ReIolutioa to be reported u'pon.

(b) Thc Authority shall calLlc a t::IJp,/ of said qillccrin, report to be' ddivmd to' each Partidpanl.

Sectlo~ 205. Ad'j1l$tmat or BIlIa,_ .

. At th~ 1:IICl,~ eada Powcr Supply Year,the Authority shall detcnaiu if the'awepte UDOUDt))l;id '

• by the ParticiplDt uDdct dtis Contract. to Provide recovery or an the ~uthori~. applicable CQJtJ dUM,sueh Power Supply Year W1S III the proper amount. ud. up the matJaI or sud! dit.cnDfna-tion., IllY amount tound 10 have been ..lei by the PartlcipaDt in acca ot thc aDlOIUIt wlli.ch IboI1d bVC beCll paid by thc Participant shall be cred.ited on the PrOject Four BillInl S&ltarnentl to the PutidpaDt.

Cor the rernainin. molltJi or months ot tltc Power Supply Year next succccdi.aa the Power SIIPpll' Year Cor which Illell .djustmcnt wu dctcrmillcd to ha.,. ben necessary. Ten'pcrcv&t at the 1DlO1IIIt or any dc&clene), shall be added. to each of th& next tea Project fOllr BiJliq StatC1DCllts. Ia the mlat that the failure or a ParUdplDt to pll' any amounts duc un<ler thll.Qmtract ahaD Uft rctwtcd In thc appJic;:a..

tJo.n or &mOUIIII iZi allY rcserve or workinl fuDd UDcIcr tltc Bond R.csolutiOll to the payma.t of COSts payable Crom such reserve or wadell'l, lund and tile other ParticipaDti shan have made up tlIc deficiency created by such Ipplieatioa or paid additional amounts into nch l"Ulln'C or woddDllbnd,

• 6

,mounts tberealttr paid .to the Authority by ,uch nonpaying Participant for applic:atica to such put due payments shall be credited Oil the Project rOllJ' J1IUIIlI Statements.or ,ueb otllcr Participanll in tbe ne~t month or montbs u ,haU be appropriate.

SectiOI '106. Dhputeil Montbl, ProJett FOIlf ~lllliIi Sf1temtaL In CUI: IllY podion of aliy monthly P,roject F~ Bruin, Sb.tcmr::Q1 teceived. b1 the Puti.ci.pant .

(rom th_ Authority .ball be in botJa fide dispute, the Putidpanl shilt pi)' the Authority the ruu amouni of lucb Statement, a.neI. Upon detcrminalioil or the COrtectlJDOllDt, thedilfmncc between such correct IUllQUIlt a rid such full amount, it InY, will be c:rc4itccl to the participant by the Authority at\er such detCfmlna.lton. In the event such Scatement is in dispute. the Authority will Pe CODSideralion to sllch cn.pute and willldvise the Partidpanl with reprd to the Authority', palition relative dweto witlWa thlny daY' toUowtn, wiittCD nOllJicaau by the Participut or IUc'll dispute.

~ec:.tioll lOT. Soured Dr Participant" P'11H1ltL The obliaations or the Participao.t to make the payments to tbe Authority und.er thia Ccmtract or shall constitute general obli,atJons oC the PIntciplDt fot the payment which tI&e Cull raith and. cn:dit of the Patlidpant sbaD 111 aad the ..1M hereby & p1cd..1ed 10 pronde the Cuntb rcquind to CulIlI aU' .

obliplionl aNini Ullder this Contract. Uo,J_ such pa1D1l11t1 or pnwbiOIl.l tor such paymc:utl aha11 have been mlde Crom the reYCD~ otthe electric system or the Particlplat or from o~ t. . . thereor, the Participant will aanuaU, in each aitd eftf)' fisc:aJ year durtiq the tam of thia Coatract Include in its. &lI1eral revenue or appropriation meuurc, whether or not allY other itaU UI: iacludcd, nms IvJfiaent to satilJ7 the payments required to be made meach 7CU by thiI ~trKt atJl all pa,ments required under this contract have been paid In ~IL. 111 the eYeDt Cor any rcuora &I11111da prcMdoa or appropriation .is not snade ror a fisc:al year fJC. Partlcf.pa.m. tJia the chld'1IeaI oiIk:cr or thclwtid*

pUt sbalI. in accordlDCC with tbc prorilioDl ot the Act la.e.I!'eCt II of th_ .sato or tbII eo"'tract.lCt up d ID appropriatlolf OD the a~oun~ oC the ParticiPlPlt in each 6JC1l yeat tho amauntt reqaJred to pay the obUII dons caBed tor WIder this Colltract. The amowat of tho appropriatioll ill IUda &c..l year to meBtth~ obliptionl ot this Contract shall be due and pa:pble aad shaJJ 'be cxpeDdp4 Cor the pwpoIC or pl1inaaDd meetinJ the obliptions provided uder thl: tMIDI ud comfitioDi or thil Contract. aD~ ncb appropriapon ,ball ha.,. the same lep.l StatulU II the Participant lad indaded. the amowtt or thc appropriation in its acDetll1 revenua or IpptcpriatloD meuu.re. .

Stc:dOl't 208. Rate Co'UIJIt, De Participaal wW Cltablilh. malillaia and coUect qtCllnd dlups Cor tlIe dectric ICMce or ill system so u to proride tevcmull 1Utlk:ieDt, tOlllbu with .nillble elOctrlc QltoaI.ruerva. to ca.a'ble me Partieipant to pay to the Authority aD p.M0IID1i j)lyablc UDder thII Contract aad to Pl.Y an GCbcr

• amountl payable from and an lawtuh:b.,&e:s apWt or lic:as on the rCYtIl'" ot ill elec;lrlo.S)'Itcm. ..

SeedOD 201. .Resale COftIUJlt.

De Participant aan:d that it' will not, without the "'prell writtca coascat of die Authcrity. enter:

into aft)' eoatrac:.t pursuant to which I. 110DCltempt person .,rca to takc. or to tab or pay tfJr, power plUchascd from Project Four. For purposa of the prwcedlq, SCl1t.1DCe, "acmc:xelllpt pCull" dWI meaD aD)' entity which II not a stale, territory. or pouculoa ot cfle UDited StatCit tb DIstrlct or eotumlQa.

or In)' politlc:aJ I1llldfrillon thereof, I.Od ~hlch is Dot uempt tl"ClGl t.Ua~CIl undt;r Sec:ti0ll .501 oC the Internal ae-n:Dlle.code or 19.54, u amended. . .. .

1

e, AllTICLEm J:LE(:IlUC'POWER AND 'ENERGY FROM PllDJECT FOUR .

Seelio. 301. Owaerahlp or Project Foll1'. ' . _.

The Authority Will wuc Bondi i:a sedd from ti~ to time uDdcr tho Bocci Resolution to Bnana:.

acquite and o~ Pmject Foar. TheAlltJaority wW caU1C to be dcU.,= to the Partidputs the OtU:pll and scniC:CI ot ea.eIi fadJlty 01 Project Fcur ror the lUetullife of uch such facility, cubjcct to the pro.,bfons 015ectioos 302. 30711111. 311 hereof. ..

SediOa 301. IDterco1l1lecdou Arra.naantnts.

The Authority, will p.trehuc or protide such &CIlm.tina capacity reserve Icrvicc. trusmillion service. mahltCllUlCC ternc:c. cmerlCllCJ service. CCOllomy fatc:chal1le Icniee md other b:ttcrcb.aJlae*

lemce assocIated with Proj~ FOOl' as may be DCCCSW'J tor tile reliable md. 1lCOIl0mical I,upply. of die output aDd.emed otProject Four. The Authority m&),lISe dcctric caer,y trom Pr~ Four "blela.

'in the determination or the Audlority. is IUrplU, to the rcquiRmClltf of the Participants. U I1Ich surplus may be aftill.ble Irom time to time, Cor the purpose or economy interc:haDlo Kryk:c or other Intcrcllanp "mea with others, and uy nel reVCDUI:S rccciYed by the Authority lor any such Scn1ca

.haJJ be credited by the Authority to the ADnu~ Project POQ1' Com:

Seetio. 303. OperatiOll and MaiatchlDce.

The Authority COYell&:nU ud aarea that it wW open.t4, maintain anel man&lO Project Four or c:ause the lame to be operated. maiDtaiDcd and muapcf in an efficient and cconamiCll mamu, eonsistent with , PrudCllt Utility Practice, Sectioa 30, ~Dce. ", .

The Authority shaU maintain or ClllIe to 110 maintained. as Costa ot ACquflitlollll1d CoIIStnll:tioD or Annual Project ,Four Costs, luch bwranc.= willa rapect to Project Four u shaD be ..va.,la.bl, ud u is usuaRy carried by IIb1itia constractlq a:lld operatinl Fller.dnl Cacillties aDd lucb other Insurance as is usuaDy carried by electri~ u,~tJ. ID conformity with Prudent Utility Practice. '

, Sedloa 305. COles of Project :row.

C.) The Authority wiD determine aD Of its costs lOr the output' and .~cea p.roridcd by the

, Authority tothC.Partlc:lpaAts relatiq to each tadUtyofProjr:ct Pour lor cada PowerSupplyYcar, u setlorth ill theAMUlI Ploject FGIIt .hdlel. or the amaidcd,A.lmuaJ ProjcctFour Blldpt adapted by the AuthoritY,purau&Dt to S~doD 201.hClllOf. 1lId. lueb COlts abI.J ill the aarepte be-eqwd to the A.o:cua1 Project Pour Coats.' .

(b} The Annual Project Four Costl Cor the BCI1ll11tion Ind related U.tIS~OlI racrutllll of Project. Four Ih,aIl fnc;:lude ,the loI1owmll~ of cost and Illper1lC: '. '. : : ' , '.'

(I)' -"Annual Project Four Fixed Cbaraes... ~blch Means all' ~d ccstt aUoca.ble'to 'Proicd F~, '

bot not limited to: '

(At amounts whieh the Authority iI required uuder the BOlld Jtuolution to pay or deJlCllit.

mto AllY lund or tccouut eJtablishcd by the Bond J',e&clution tor the payment ot Debt Service a:Dd any I'CSCfIC tequfrcmCD IS tor l O I I d s ; ' .

(I) 1ID000llts (not otherwllc !Deluded UDder U)! itrm or this SeetloD 305(b)) tor tbc lacilities 01 Project Four wbich tb. A1athority II required und", the Bolld RClSOludou 10 pay or dc:porit duriD,'lICh Power Supply Year Into any odler t\IDd or accoWlt CltaWilhed by the Bond R.r.tolu.

tkm. and shaH include, without limitation. any such llDOulS required to male up any dddCIICJ in any reserve IUM or worl:in& fulld required or permittc:d. b, die Bond. ltcsolutioD rc.mJtm. trom a I

deCawt in P'Ymetits b)' any Participant or Participants or amountl due under its or their Project Four power Sal.. ~lIlr1cts willa the Allthority; ,

(C) amountl which the Authority is required to pa)' for tuta or pa)'ments in lieu tbucot attn'butabk to Project Four; , '

(0) amounU which tbe Authorit)' is required UDder the provisions or the Bond Raolution to pa)' or deposit into a ruerve for renewals and replacemCllts; ..

(E) am~unts required to be paId by tbe Aulhorit)' under the provisloni of tlle Bond Resolu tion into an), fund, acCOunt or sub-account C;1ItI'blh:hcd theC&uDder to mw up for payments thererr:QD1 to any other fund, acx:aiUlt or lUb-aC:C:OU'IIl U a r~lt or hm!.t!icieacy of revenuCl viidl res~ to aDY project financed upder tht Bond. Resolution ror which the Participant hu executed a coatri.ct with the Authority for the outpul and scnices therear; _

(F) amounts wlUch must be set aside by the Au~orit)' ror the rctinmcnt from service, deain.unislionixll or dispoial of the racilitIu or Project Four as ma)' be RClUircd b), the Boac!

RaoI.utloa; _. , '

(0) amounts which mlUt be paid b)' the Authority (or the pwchut: of len.erati'lll capacit)'

re.sCIVCS for Project Four; anI! ' . .

. (l)' "Other Annual Project Four Costs," which Means aU Annual Projeet F~ Casts other thi..a Annual Project Four Fixed Charlet. iDdudinl. but GOt limited to: '

(A) aU cosU of prOOuc111' ud dcJiverin, ela:trlc pD~er and eneru from Project Fou to tho Participants inctudial. but noC lImill:d to, (0 Fuel ClJsts and other ordihuy op&rauau and malate naace CCItI and provisions (or mcrve t.l!ercror. admlalatratlvc aDd.aene.ra1c:osll. insUlaIlCe aDd overhead CUlts and aD)' charla payable by the AulJiority in couection witb'lJie output of Project

'Four. (ti) net cOltS 01 scbeduled. emerlCDq'. ccollOm), or other mterchanac lemce inalrrid 1ty the Au~orit.r in cODneCtion with Project Four. and (iii) a share. determined b)' the Au~t)' to be anocable to project Four, o( an opcratio~and mallteljlllce CUlts tdawt to the opera.itou and conductiDl Qf tlU: bumw' of the Authority 'bcludinl salariet. (eel f~ ,lepl, eqiDecriq. aad ot1ler services Ind all other ~penscs properly related to tlIe conduct o( the affaln of the Authority; aM '

(B) amounts required of the Authority b)' !he prl1l'isiollJ 01 the Bond R.csolutiDD to pa)' the cost of or to provide rcscrvu for (i) C1traordlnary operatiDII aDd maintenance costs lAcludfDl the C05ts of sc:hcdulcd. emerle!"C1 or other interchuae service aad tho preYCI1tion or carreclioD of IJI)'

unvual loa or damaae to keep the 'ac:iJ1tics of Project Four bt ,oad opcraliDl condillon Of to prmnt ,J. loa of t'CYenucsthcrcfrom. (u1 any major rencwall. rcpJacancD!.s. repaIrs, a4d1tions, betcenDadiand tmproyements DtcclSU),. fn the opUdon of the ConsuItlnS Enabiccr. to bcp tbe fadUties or Project Four in ,oad opcratUsll coadition or to prewmt a lau or reftnua thc:rclro~

and (iii) U)' ms,jor additiou,. improvcDlmts. repairs or modifications to aD)' such facility. Or ..Uy retiremCDts, decommJssioniD" or dis]lOll.ll of any such fac:iJity. requiicd by An)' JOYCI'IUDClltal alCDC)' haYinl jurisdiction oYer Project Four or ror which the Authority lhall be rapDlW'bIe by virtue of An)' obDla~n or the Authorit)' arisins out of an)' contract to which the Autborhy.ma), be

'1: pitt)' reladD,l to,oWDcrsblp ot.Pr,oject Fo.... or u)' facUity thereof to the ~tCllt that thl A1d.Ilor*

. . 1ty ill not reimbursed therefor from the procccdI of insuraace or fuDda for such pa)'lZlClltl arc DOt avaifa'ble to the Authority thereIor from ~y fqDds or aCC01QI1S cscabDshed under the Bond RI:SOlu tioD. or fuMs ror luch payment arc not provided or ~o bc provided by the islUance of additional Baed! punuant to Artide ]V t# this ContracL ,

Section 306. E1tctrfc Power alld Entfl1 Prorided b)' the A~hcrll1.

(a) The Authorit)' wlU provide or cause to be plOYldcd to the Particl,PGt output and scrticcs from Project Four I.Dd suvka dcscr1bcd ill Section 302 hereof. u ma)' be available for the ucfulli1e or Project fou, l.llci s1WI continue to provide or cause to be 'provided to the Paniclpaat iu Supple;alCDtaI 9

'Bulk Power Supply which may Include, but shall not be limited to. partiallnd Cull requirements firm power purchases, usUt power service, firm and nonfitm CApaaty and eners), servic:c. transmission scrvico (includin, transmission,semce purchued by ~he Authority to supplement the P&iticipa.nt'. Entitle>

ment Shares of tnllSmis.sioD services provided by the Autborhy under tho Power Sala Contract Crom tbose tn.nIminioll system Cacilities included in P.oject One), and other iDtcrchanae lervice made aunable IJ a ruult of trwactions with otber uillitics. It is rtC"OlnfU:d that the Authority may Il1o .

undutaka additiQDII projects in' the future. and that the Participant may contract fOt QUtput and

,related services from any such future projCCL ' " "

. (b) The Authority mly c:omblrle the Annual Supplemental Costs, the Annual PrOjr;ct Two Costs, the Annual Projet:l Three. Costs, the Annual Project rour Cosu. and tho aMual casts of any futuro' p.oject undertakeD by the AutlK?rity ror which the Participaat has exCClltcd a CCGtrac;t for the OIUPlit

'ud .-dated smica thereof'. Cor the p1lI1IOH of establishm& rata and c:hafICI. Or may establish Cor any of such costs seplllte rata and -Ier, at the disaetioD oC the Authority in either cue.subject 10 the prorisions oC SI!edoa 307(a) hereof'. '

(cl In the event any'Particlpant procura alternate bulk power SOUl'C:CS under the provisions of seCtion 404 or tbe POwer Sales Contract, IUch Participant" Bulle Power Supply hereunder ~hall be deemed to be not l~ than the product of luch Participant'l &tltlcment Share. IS defined '" its Power Sale. COGtract. or the capacity related output and services oC Project .Onl: prorided by the Authority ,

under the Powu SaJes Contract multiplied by a fraajOD the numerator oC which is the sum. or the capacity rdated output and semces otProject One provided by the Authority to aU or the Project Four Participants under the Power Sala Contracts plus the capacity related outpllt and servlCCl orProJect Two prorided by t2le Authority to an 01 the Plrticipilts under tbe Project Two' Power Sales C:llitrac:ts plus the capacity related output and IIrvlc" or ;project Three provided by the Authority to aU of the Participants under the ProjllCl Thter. Powu Salcs Conuacts plus the capacity related output and scnicu of Project Fow- ptoyliied to aD or the Participants under this Contract, IIld ~be denominator Dc whJcb is the IUm of the cajlUit)' related outpu t and seniw or'Project ODe:provided by the Authority to all or the Projet:l Four P.artfcipa1ltl uDder the PGwcr Sala Contracts.

Section 307. Rata aDd Owl" (I) ne Authority wll1 establish and main~D Cair alUi nondisc;rimlAatory rata and charla wbicb will prcmde revenues that are sul5cicnt, but ouly IIlJficient, to pay tbe ADDuaJ Project Four Colts, whetber or qot such Cosu I.R combined, IS authorized by SeetiOD 306(b). with' AIlllual Project Two ,

CCItI. AnDUI) Project Three Costs, Annual Supplemental Costs or tbe anaual casu 01 any lttture projects WIder-taka by the Aulhority with respect 10 which the Participant hal executed a amtract Cor output and Jemca therelrom. '.  :

(b) The Authority, ~aJl biIJ the Participant each month durIn, ca.cb Power Supply Year by providin. the Participant with a Project Four Dillin, St&tcnieDt lor such month,for*the scrrices obtained by the ParticiPJAt from the Authority as 'let forth in Sectioa J08{a) hereof. m III 1m000t

'equal to ill portlcm 01 ADDUaJ Project Faur Costs detum[ned in accordance with ,the prcwiIiODs. of Scc,tloa 30~(b) hll:teOf. Su~ StAtcmCAt. shall 'be pa.Id by the Participant on Or bc!or~ the tenth day ,

trom the date of .ruch bin. Amounts due IIld not paid by the Participant on or Wore uid day ,ball bur al3 Iddltional charae of one and one-halt (1 !&S) pc:.rcmt per month fo. each mon" or fra~on therc.oI. UAtll the amount due is paid in CUlL At the end or each Power SapplJ Year, adjastmans or bUDD, shaU be made In a~DQ: w:lth Section 20' bereot ,

(C') At .tuc:h time as the: Authority issucs additioDaJ Bonds in accorduce witll the'prorisioas 01 Artlde IV hlteot. or at luch time IS the Authority shaD have determined that Project Four or any part thereof sbaJI nol he completed., II not operaUn. or operable or ita output is 1USpaldcd. intcnuptc:d.

interfered with. reduced or c;unaflcd or termiaated ita wllole or in part (but flu not declared*Projcc:t FO!lf to be lOt&IJy and permanently ...tired lrom Imlce), the AuthorJty will adJut such demeolJ of Annual Project Four COSli as are MCcsIary and the rates and charscs ~Ilab.ishcd undel- S~Oh 301{a)

JO

'e or netcor and the Participant ,haU pay iu. sbare ,uch I.djusted ntu and charles punuant to the prOYiJiol'll or Section lOa bercor.

(d) Isl tbe event that Ptoj~ FoW' should be tcrminated before beilll p1acc::d ill service or should be declucd by the Authority to be totall, ..04 ~Lllcnt1y retired ltom si:rvice and no PUlP,lt or services therefrom arc beinl delivered. thell the Projed Four Obligation Share of each Participant u of the time of such terminauoa or dc:cllration shaU be lli&t respective petCCDtlp set forth in the Schedule or ObIiption Shares atlac:hcd IIcrcto; ..ad the Puticiplnt ,hallll&Y ita Prol~ FOUl' O~ip..

tioa Share of Amallal Project ,Follr Coati" U lball be sel forth in the InOnthly ~roJect four Dillin.

Statement. which shall be submitted by the Autboricy to tJ?c Parlicipant leu the allocable credits to the Partli:ipant'slhare of sucb costs ftom mcnucs raultiD, from conttKts '¥ith other utilttiu' entered Into by the A~thorit)' pursuant to Section 311 hereof, If aay, and slich payments shall not be subFt to redu.ctioll whether by offset or otherwise ad OIU not be collditional Upoll the performance or nooperformance by an)'. party of anyasn:cmcat (or any cause whatner. '

'Ce) In tbe evenl thlt Projecc ~our if totally out or Ienic:e but liu not bc:CD Icclared hy the

. Autbarity to be totaUy and pcnlIlnea&ly retired (rom SeMce U proYiclc:d In the (OtcCO!DI Section 307(d), alld Lbe Authority is ,uub1c to provtclc: Ill, of the services described ill Sectiim 301, the AutbodlY sbalt noliIy ~ Participant lad die PartlciplJlt sull p.y its Project Four Obliptiou Shuc, u set forth ill the Scbedule or ObUlltico Sh&RI attached hereto. of AlUlual Project FoUt Colts; u shad be Itt forth iA the mOQthJy Project Four BiDla, Statement whic:b .balI be submitted by the Authority to the Partldput less the tIlocable credits to the Participant's sure or IUl;h costs (rom.' .

revClUl. r.u1dnl (rolD coatracts with other utilities e:Dtercd into by the'Authority pursuant to SectiOQ

. 311 bereaf, it allJ. for so 10RI as such c:.oaditioni obtain. and sud! paymcllts Ihall DOt be subject to reduction whdfler by oKlCt *af othctWitc: and chaO IlOt be conditional upon the pc:rlormanco or noaperfonnmc:e by a.)' party of Ifty qrec:melll fOlany cawe wutevu.

Seedoa 301. power IaldtitlDtllt ud Pa1lltnt OblilatioDS. , .

Ca) The Partici~l shall tab r~mlhe Aut.horlty output and SeMCeti oC Pr6J~ Four Lad .emca provided by the Authorily in accordance with the provisIons 01 Scc:tioQ 302 herepf. u may ~ a"i.Da.blc (ar the \!Se(ul Ute 01 Projcc:t FO\1r, ml. bued UllOa the rates and dwa- cstablllW purluut to Sceuon 307(a) bereor, the Participant shall Ply to ~e Authority its ponlon or the wu!1 p~oJoct Fo1U' Costs. '

, . (b) III the eVCDt the Authority shall combine AlUlual Project Four Colts with other ~ U let eonh III Scc:tio113D6(b). ror the purpose o( IItlhlishilll rates aad c:haraa. tile Authority wiJl idctify 011 the monlhly Project rOW' Billinl Statement submltted by the Authority to the PartidpaDt that poniOD of tII& tm:a_ to be n:cciYCd by llae Authority from the' Particlpaot produced by IUcb rata ud:

cbarpt tut is allocable to the paymeat of the monthly budlcted amowrt. 01 Auual Project Four Costs. Sa.ch portioalhlU be ek:rmincd by the Authoritl"u' fonows: DWI an), montA ofa Po."..

Supply Year, tile Ptrticipant'l portion 01 the monthly Annual Project Four rw:4 Chuaca shall be such capacity related revenues for such month to be received from the Partldput. muldpUcd by I

. f....cUOD. the numerator 01 whl!=1lshllfbt tho buqcted amount of Annual Project J:wr F'",cd Cllaraa rOt Ncb month (lest II\,)' capacity related rlWtDucs adually received bj tbel Autbority durma IUch .

moilth puiSllAnt tL\ Section 311 'hereof) ud llc denominator ofwbich.haD be tluuWI:I. 01 the bud&ctm Im.ount of Awnsal Project Four Fwd Ollie. for such month (leu any caP.Clty related rcrqUQ*

Ictua~y tec:dvcd, ~y the Authot!t7. du.rin~ IUd ,month pursuant to Seetioll 3J1 Jacreof). pI.. the budplcd amouat of Annual Project Three Fb:ed Curlu lor such MOUth (leu ally capacity-related rlVCDUIIS ac:tuIUy receiyed by the Authority duriDlluch I110JUh pursuallt to SectioD 311 of the Projett 1'1!rcc Power Sllrs Contracts), pl~ the badpted amount ot AMual Project Two Fazed Claar. . lor sue!! month (leu IllY capacity-related fllY4InUli act.aUy received by the AuthoritY durilll such mol1th pUtlUlftt to ScctIod 311 or die Project Two Power Sala 'CollUaCtl), pIllS the. actual &DlOWlt of capadlY-rcktcd AnIlll..1SupplementaJ Costs (or ncb month. plu. the budlete4 'meNDt aI c:::apacity relaled- aMual COlli durinl suc:1s monl' of anyluture proje.cts undertaken 'by the Authority with .

11

respect to whicb the Participant hu CltlculCCi a contrl(;t and the c:oIU oIwbich have1mn combined fot purposa of utlbU.sbilll lUeh riles Indda~les; Ind the Plrlidpaat', portion of the mouthly Other Aanual Proic:ct Four Casts shaU be Neh enugy-relaled revCftuQ Cot such month to be: rc:ccivcd from thll: Participant mul1iplied by I fraction the numerltor oCwhich IhIJI be the ~udleted.lmOUIIt ot Other Annul Projcd Four Casts (or IUch month Ow Iny encrar-rtllted reYCDua Ictually roccived by.~e Autbority duna, sudl mouth pun1Wlt to SectioAi JOl and 311 hcnal) and the deIlOmW.~ of whiCh

,hall be the NUl ot tbe budlctcd Imaunt oC Other Anrwal Project Four Casll Cor such maDth (leu Illy CIlCl'J)'-rdated reveD-au letbUy received by the Authority duriD,*such moadi punuat. to Scetiou 3~ Illd III hereol). pJu the budacted amount, or Orhcr Anal1l.1 Project nrcc Costs for such month Ow lilY ellerJ1-related mGUICS Ictuilly rccclvcd by tlIc Authority durina such mouth pUl'SIlIDt to ScctionIlOllDd 311 of tho ProjeCt nne Power Slles Contracts), plus tlae budacted IlnOUl or Otber Anriual*ProJect ,Two Casts Cor IIlch montA (tesl anY CDUV-related rCYCIlucslctual.ly received by the Authority durin. ,udl monUa pumll'lt to Sections JOland 311 or the Project, Two Pawer SaJa Contraeu). plus the actual amount of cnG'IY ret-ted Aanual Suppemcnll.l Colli Cor lUeh month. plus the budpted Imouall of CDClJY related lD.Qual COlIII , durin, IUch month or Iny future projects ulldertabm ,by thlt Alltharity with respect. to which the Participul hal cxccute4 I. amtract and the .

cosll 01 which have been combined tor the purpose of atablirhiD,lueh rates IDd cllarJa; provided.

howevct. U durinlsucb montb the IlnountJ to be paid by the PuticipaatJ pumalnt to the foreaoiog pravilioN or tbiI Section'(or their portions of moDlhJy Aanu&1. Project Four. Pbed Clalles lAd monthly Other AMual ProjCct Four COJtI do Dot in the lIIfepte equal the budleted amounts for tota) Annual Project. FoUl' 1ixcd Charles and Owr Anaua1 Project Four Colli Cor nrcb month less ab1 rCYCl1ue1 Ictuau, received by the Authority durinlsuch month punuanJ to Sedions 302 and 3t 1 h&reor, the Pa.rticlputs' portions of AJUl1w Project Four Fixed Cbarles aDd .Oel.. Annual Project Four Coats ahall be acljuIlcd pro r.ta Ie that the sum or aU*ot tflc Pattic:iPIIlU'.porticms of monthly ,

Auua1 ptojcct Four fixed Charles as 10 adjustl:d IDd the sum of all of the Part1dpaats' portioDS or moathly Other Anilua.l Project Four Coats U Ie Idjuatid maJ.l equll one hundred (11Xtlr.) percent oc.

the INdicted Annual PJ'Ojcc:t Four Costs tor each 1'.I1OJI.th Ius _IlY rEVenues actuaUy received by the .

Authority durinlsucb ~nth pursulDt to Sections 302 Ind 311 laercol'.

Sectloa 309. Pled.e 01 PI}menu.

All paymeDts l'llI'luirc:d to be made by the Participant punuant to this Contract attributable to Prcdcct Four or to the ADrlual Project Four CosII ,ball be pledged to secure the paymf;llt. of the .

Authorft;fl bouds. .

Sccl:Ioa 310. PaJDIW as OpcratJDi Expase.

So fon,ld electric power IDd eaerlY sllill actuall, be: rc:ccivcd by a Participut from 1111 tac:i1ity or Cldliticl of Project four, the Partic:jpant'. POltioll oC /umul Project. FOUl' coalllbaJI be paid by tbe Participants II a ~t or purehued electric power and lI:IIerlY tor P.lrtic:iPlJlt*1 elcd.ric system anillll'l tlpeNC or open,tiou and maiJlteDUCC thereor. . . , ' '.. ' . ',. . . ....*

Secdoa 311. Credits to Amnl'" Project Four Colts.

, The AuthOrity may, pt.ln~lnt to Schedule A ,hereof. JeU the output and .nic:eI of f.c:iUtics iDcluded ill PJOjecl four to other Iltilllies. In additloa. the Authority mQ utilize, IcIl. Iud uc'baD,e elec:trfc capacity &ltd IlUIUIY trotll1 Project Fou whollC'fU. ill Itt dbcretfon**ny llIea IJ:UIa.ctroo can reuoaabJy be upilcted to result ba a mOre reliable or economical avenU Bulk Power Suppl1 to lbe Pudc:ipbtl. '1'1Je IlIdctpa.ted proceeds trom uy ,uch ..lei or traDlletioaa IhlD. to tic eltt&l'1t pried caW.. be estimated in the A.nDull Projcc:t Four Bud,,,, and aDY 'Dct rewlWCI Ictllllly RCCl,ed by the Autborit)' as the resuJt of sucb ,ales or trlnUc;tions slull be credited to Annual ProJ~ Four COlli.

12

AltTICU:IV

'ADDmOHAL BONDS SeedDD 401. IssulBee of Add!tloDiI Bern1**

(a) Additional Doads may be lold and issued by the Authority in accordance with the pn:nisiOl1l of 'the Bond ResolutEon at JAY time aad (rom time to time in the event, for ..y rcuoll., the proceed.i derived (rolD the sale of the Bonds fint validated PIlJ1Ulnt 10 tbe provisioDi or the Act' aud 01 thiI Coutract shaD be iDsuHicicut tor th,e purpose of compleW11 the: faciUties o( Project Four and placln, etch (lcUitY t~ereor in Commercia. Operation. '

(b) Additional Bond5 may be sold and islued by the Authority in accordance with the proririODi or the Bond Resolution at any time aDd (rom,time to time iD the event (WIGs are required to pay the cost of 0) aD)' ,lJ'qorrenewali. replacemcau. 'repairs. additions, bctterD'ICnts. or Improvemenlf. to Project Fou 1l~Il7, in the opinion of tho CoIIIultin. Enlineer. to keep Project Four in aood opcratfnl conditiou or to preveDt a loss 01 reW:lluea therelrom..(h1Iny major additio:u. impmemeats, repairs. or modUicatiOJll to Project. FOI.Ir, or any rctlrements; deeomm1aloniqJ o~ dIspasall oIPro~

Four required by Iny IOVulUDCDtal a,eney havin, jurildiclion OYer Project FOISt or for wbich the Authority shaD ~ respcmlibJe by virNe of uy obllaal1an of the: Authority arb,lDa ou.t or ta)' .tract to whieh the Authority may be a party relatiD,l to ownership of Projcc:t Four or 10), r.dlit)' thereof. or (iii) reload fuel or additional fuel inveawy (or cac:b facWt), orPr~cct FOW'in uy Power Supply Year to the eJttent that JulBc:ient funeb Ire not available ill aD), reserves established by the Authority for Fuel Costa; provided. hO'ft'llCr. that no such additiolll.l Boadl may be lulled tor the purpose or addina additioaalaenUiUDI units to Project Four. .

(c) ADY such additiODlI BOlldl shall be KCllred by assipment, of all payment. attributable to hoJcct FDW' ex to the Annual Project four Com to bi: made in accordance with or pumlIDt Co the provisions of thiI Contract, IDd aU other Project Four Power Sales CoGtrar:ts, as IUd! payments mlJ be iDa-cased and uteaded by rCUOD of ~I fnuaace of such addidoaal BODdI. aad IUdi addltlOial Boadl may be Issued in alJlOUDtlluflident to pay the MI amount 01 i1sch COIU and ,ufldtat to pzovIduucb rc:serres al may 'bo rcuoaably detennfacd by the Authority to be desirable.. Ally I"I1dl addldoul Boud.

issued fD accordance with the PfOYIslons or this SClCti0l401 aad iecured by I.J:Iip.mall 01 ~)'mclltl to be IPlde:, ia ac:cordaaee with the provlaioas or thia Sectloa. may rJDk put ..,..,. as to iIIe aecurity alford ed by tllc prGYtsions or tms COitract a.u4 of 111 other Project Foir Power Sates Coatracu botwCCD.

the Authority and the PartidpaDts relatiq to ProJcct Four &ad to the UaUDCC or Bonda therefor with all bondJ thetetolore iJsucd pursuaat to and secwcd in accordance with thI: proYisiolU of this Coatnct.

Seedoll "Ol. lssuaaie of lld'UDdlnr Boada.

In the CYCIlt the Anllui Project FOW' Costs to the Participants or electric 'powe:r.ud eaerl1 froaa PlOjcc:t Fou may be reduced by the ref'und.iD1 01 allY of the Bondi ti:ieD oulstudbtJ or ht the eVent*it shall otherwise be adYantqeou. ia the opt_ 01 the Autkority. to zc:CtaDCluy baaIk" the AuthOrity may isslle and acU reCuodilll Boadl to be s~ by wf&nment 01 all paJ1DCDU attri1N.t&ble to Project Four or to tJao Anaual Project FOI.1t COSIS to be made itt accordance with or punulJlt to the PfOYIs.oaa or thiI Contrad ud aU other Project Four Power Sat. CoatraCU. AAy..Judi reludiq BOlldllasu.td In

'. accordaQC& with tile pioYWou of thla ScctioD Ilid secured b,lSliBDDlent oIlucb. paymeatJ may rI.Dli:: .

pari plSSlot II to tbe IeClUIty afforded by the provfsiou. 01 tJdI Contract and of aU otb.et ProJa;:t. Four.

Power Sara CODtrlcU bet.e~ the Authority ata4 the Participuts reladA, to Project Four I.Dd the issGalce of Bondi tberefor With aU bonds theretofore issued pursuaDt to l.IId .sccurecl ill accon!aDce witlltbe proYiJiont of this Contract.

SKtio.a "03. AdjldbDent of Amlual ProJtd Four Costs.

. In the 'C'YCDi the pzoc:cedl derived from the ute of ~y Bouds exceed the I.,arepte amount roqufrcd lor the putpOlU for which ,uch Bolldl were issued. the UJlOWlt of IlIeh' eucu ~ be UHd to make. up any deficiency then ~JstiDi illuy lund or.account uDder the BoDd ltciolutioa ill the muLIIU 13

e, thuein pro¥idcd. and any balanec ,han he wed to retire.. by purchase or call.aod redcmption Bonda in advtDCC of maturilY. and in such eYeDt the Authority will reduce such deme'Dts of Annual ProjeCt fonr Costs u tre ncees5lry and Ippropriate to r~8cct suCh accelerated retireUlCnt.

AllDCLEV DEfAULT or Secd61l501. Etellt Dtlrault.

FailUn of the ParUc.ipant to make to the: Authority uy 01 the pa~nts lor which provision is made in this Contract sball consub1~,a default o.n the part 01 the: Participant.

StcdllllSOl. ContinadDl ObD,adolt Riehl to Discontinue Ser-nce.

, In the cyent of any sucb delault. the-Participant s~U not be relieved of its liabi11ty for paymcot of the amounts in default. and the Authority lhaU bYe the rilht to recover from*tIle Participaal any amount in default. IA worcemel1t or uy such riahl of recovery, the Authority may brin, f.IlY suit, action. or proc:cedlnl ill Jawor III equity, indudla. mudl11lus and acUon tor spdc perf~ u may be ru=:uary or appropriate to tl.'lf'orce illY covenanl. asreement or obU,atioD to make payment tor which pnmslon is made in this Contract apiDlt the hrtic:1put, and the Authority l1l&7,'llpoD liUt dl)" written nolice to the Participant, cu.le aud discaatinue provif:Un1 KrYl" undu thla.Conuact,.

• or Stctf.ou 5G3. LnJ TIiI: for Pa)'IQeat.

'1. Ihe cyeD! 01 neb default by tbe Pardciput, the Participant ,han provtde for the IS'ClU11i:I1t aad COUectjOll 01 all UlnDI tu suflcicnt to provide funds annuaUy to mab:I all paJlDCDts due under the proritionl of this Colltract ill cacla JCIt oYer the remainder of the Ufo or this Contnct anti the Authority shan have the riallt to briq ~y suit, tWIID or procccdiq ~ law or in equity, lnc111d.i:Di . '

mandam. and acUon fOf' spcci1ic performance, to enfOl'cO the uSCSImat and coUcedo.ri or.a colitmu rill direct &nuuaJ IU UPOIl all tAe tauble property withill the boadadea of ndl Partlciput .Iil&c:ient In f.lIl!)Ut to provide sudl fundi annual1y iD ~ ya..r of the r~du of the liCe of lbil Contract.

SectiOD 504. f)hJila~oD 'Sbue of Ddlll1t1aa ParddpanL ID the t:Ycat of I default by

• Jiartidpant. IUch Plrticipallt ,ba~ Ixcome liable for the p-catcr of (i) its rapcctiYe Project Four Obliption Share, U Jet forth in the Sclsedale qf ObUption Sbra bereot. 01 Annual Project Four Cosu, phas .U otbcr lDlICII.uts due lUlder this COlItraCt by .\tch default*

ina Parcidp.ant, or (if) its payment obliptloa Un. Section l08 hereof. and .ban remt.In IOlI&blc for sa leD. u I~ delavlt contblua..and utO an I1Icb 1JIl0UDts arc paid.

SectfOD 505. Otber DeI,alt by Partldpmt.

'111 the: CYut of a failure of the Pll1idpaat to cslablilb. maiDtain. or collect raw or chari.

ad.equate to prO'ridc revetlue .u1Iident to e.a.ablc tile Ptrtidpbt to PlY aD amounts duo to the Autbadty under thJI Contract or III tbl: CYCDt 01 a failure of die Partieipan~ to iakc from the Autbority ita Bulk or

. PC'I!fCi" Supply in acc:orda.ncc with the PJOrisicma tl&is*Coritrac:t. or in.the event of ant default by the '

Partictpant !.!Dder, any other CoVCGaIlt. alJCCDle..tlt or obli.alion 'of this Coatract, the Authority may briD. IDJ nUt. aedon. or procccdia. in law, u iD equity. iDeludlDa milldamus. bt,Iuactfon aud tctIOD for spccUSc per1oru:uec. I. may ~c l\Cc;aury or appropriate to worce any covenant. ~peemeat or .

obUptiOll of this Coltract t.alnat the Pardcipalt. -

SccdOil 506. Del.alt" A.atbodty. . .

In the "ent of uy deCa.lt by the Authority under allY COYtDant. RlI'eement or obli,ation of ~

Colltraa, the PuticlpaDt may brfDl IIIJ" ,ull. actioD. or prOClM4bla in ls.w or in equity. mctudinl muc(amu. inj!.IDc:doJl., ud actloa for spedfic puforDlUICC U ru&Y be ace...". or appropriate to enforce at1Y coYe..t\Ut, all'eemeat. or o'blilltion of this Conlra¢ ...aia.st the Authority.

14

e.

SletioD 501. Abandonment of lttmQy*

or 112 case all), proeecdiDl tl\:en"" ICCOl.lllt ID)' dda!!lt sblD have btcrl discontinued or abandoned for any reason, the. parties to such proccedinp lban be restored to tbelr former poaltions and. riabtl hcrcurukr. rapecuyciy. and all nabu. ra:ucdicl. powen. and duties ot the Auth"orit),an4 the Par11cl "pant shall continue .. thoup rio SIlch pnxeedmp bad beet1 tli.u. . '" .

. "AImCLEVl .

MISCEl..1..A.NEoUS GENERAl. PROVISIONS SectioD 601. a.racter and ~onllnu1ty of SeniC&.

(a> ne Authority may tem.pcruDy illiMtupt 01' rclillce deliveries Qt dec:tric energy to the Plrtlci*

"pallt if the Authorit)' cleterminCi that sucb interruption or reQuction il ncc~ry m case of

. ernerp:leitl or in order to mstaU equipment in or alan repaln to or rcpllcemcats. invuti,l.dlmll. and inspections of or to pcrCcnn other aWIltena1lCl work: on lts Icncrltioa 01' trallS1rliaJon Ca.c:i1.itia u.d related apparatuses. Mer informin. the Participlnt reprdin. any such planDCd. interruption or reduclioa. .iYiS1l the rwo~ theretor. and.stllina the probable duration thcteol. tha Authority wm to the best of its a&ility ichcduJe such InterruptiOQ or n:dl1cti01l at I time whlc:h will cause *0 Jcast intCrCcrcDCC wilh the operations or*the ~ardeipal1lS. . .

(b) Tbc Authoril1 shall Jlot be required. to praridc:, or bo Hable for failure to protide. service under this Contract wben such faDure or the ceultiOll or ~rtailmcn~ or or interCercnce witls thl acrrice' is caused by Unc:<lfttrollabll Fort,;U or, with respect to lbl ,enic:cs to bo praridccl for Supplemcfttal Bulk loft&' SIIPpl,. is caused by the faDwe or refusa] of any otbct bulk power lUPPUor to eater into rcalOllblc ~tracts willi .tAl Aathority or by the Inability 01 the Authority t.Q obtdD 0)' required 10verDDlealal apprOvals to eDable the Authority t.Q aeq,uire or co~ct any facUities.

SeetioD**"'2. *MettrlA(.

(a> ~ 'Au~ori'y reservel the: nlbt to prOYidI for installatiOn of metelS &ad wiU provide clr ClUIC to be prOYidccI aU J1ceeauy lDetcrial c:quiplPCllt Cor dctcrmiDiDa the qlllJitity.ad ccaditioDl of the

.apply or electric power and e:netO' delivered by Illi Authority WIder this CODtraet; proYided. hOweYer, that the hrticiput may at its own cost install addltioaal me&crin. cqtlipment to pnMdc a cbcck on thai of tlIc At.d.bority. ne Plnidput shall sopply withoat cost to fbi Authority ~ sultabk place rot iusWUpa the A.tlIo:rity'. mlterfq equipment." .

(b) It allY meter used Cor bilIiq (ans to reJister or II Coua.d to be UlaCCurate, the Aulhorit)' IhalI repair or replace s~ch meter or caUl& ~t to be rt:plin:d or replaced, and an appropriate bilJiD. ~ be made ro the PartiCIpant by the Authority bl.lCl5 upoD the best information ayallable lor the period., DOt exc:ecdiDI II:Itty days; duri11l wJUch DO metcrm. CICCIlrred. Any meter ~cd. 1.114 fqa.ud. to be DOl mon

• than cwo percent above or below lloimalsbaU be CODSidercd. aa::urate insofar .. comctloD of billilP is concemcd. It. u a resuJt of aDy test. a meter ia (wnd to rapter in e.1tCCISI of two pe.rcat alloYe or below normal thell the readilll of wela meter pmioualy taken (or billin, purpcses shaD be eor:rected (Of the paiocl duriDa which it is establisbed thl meter wu inacCurate-. but no correct1C1r1. dial1 be ~adl (or

.W pcdocl beyol)d ~ixtl da:ys prior to the cla~ oa which.UI. ~ . . ~y.lUch

. iDl,ccuracy is dlJccwer:cd .. test.

Sldlon '03. PO_It DeUTlJies.

. Power aJul encrlY (urnished. to the PaI1ic:ipi.nt IUldcr this Contract .hall be hi the form of tbn:c phue C1UT~L, Ittcrnatiq It a frequaicy of ap~tdy 60 Hertz. .

.Secdoa 60... I.IahDltr of Parties.

n. Allthority aad the Participant ,ball ulUme ibU'rcsponslbillt)' 1Ul4 liability (or tha md:nte aallCe I.IId opcratloll 01 their rCipecUYe propcnlu and acb IbalIlndCl.Nl1Cy aud Ave banal.. tho Olhcr from allliabil1ty.nd UpeDlO OD account or any and aU d&mala. ellim1. or ac:tionl, iaelu4illl ~ury to or cfcatll 01 pcOODl arisln, from IDI act or I::c:ident J.n conne:ction. with the hutl.UatioDt pfClUlce.

IS

or mlintenlnce and operation the property lild t:quiptnent of the indemnifying party Imlnot caused in whole or fa plrt by the ncaJiacaee of tPl other party; provIded Ibat aay liability whiei Js incurred by the Autlority throusk the opcratioa IIId maintenance of Project Fou aDd DOt C~, or Dot covered "llclendy, by in,nraace rkn be paid lolely from the revenues of the Authority, ind uy Pl1XQ.ents made by the Autbori~1 to ..tillY web liability ~U become part of the Annal, Project Four Budlirt. ,

-S~doll 605. Otbet Tums am) Ccnc1Ulo.;

Service hereuMer IhIU be iD accord.ucc with such other tennl and conditioDI u arc Clta'bUshed ai part of the Aulltori,,'s Ic:rv\cc ruJes and rcptatrOftS, wbich shall not be incaMistent witk the proYisionf of th.iI Cc:mtllcL - .

SediOIl 506. .t\SII&mDmt of CoameL and _pi (a) Ibis Cofttnct &hall inure to tbe benefit 01 and JhaJ1 be bindina upoa the n::Ipcctive JUCCCSlon of ~e part.iu to this Cooltact: provided. however, that except u provided ia the CY~t or a default, aad, cxecpt tor tho aui&;amont by the Autllonty authorized hereby, neither Iliis Contract nor

&IIy interGSt hltliD sblJ be,t,lDlferred or assilned by' tither putyhcreto aeept wit,b!be consent lD writiD. of the other Plrt)' hereto; pfO'llded, howCYCr, that 'ltell consent .ball not be withheld urucaSOIl- '

ably. No usilnn;umt or tramlcr orthfl Contract shall relieve the pubCl oflny obUptiou hcrcw:u:ler.

(b) The Pll'uciput IcbowlcdJeS IlId larea that 1he Authority may assIp Ind p1edac to the I.

Tl'\lltee dClspated in lay Supplemental. .Prajl~ Fcnsi Power RCYdue Bond .R.aolutioa. all its riPe.

title, Illd interCit lD ud to all pa,mlftb to be made to the Authority under the prOoristolli of this Contract attno'Dtable 10 Project Foar Or to the Aantl Project FOW' Costs as secu.rity for "tle paYtne.r&t _

'of the prlacipal (JDcIudlDlllatiaaJulld InstallmcntJ) ,01. and pr=.I~, II my. IDd fntctat on all Bondi. and, upoD the czc:etSt1ail of such auipmcnt lDd pJ!:d1C, &I'ck TtUlt~ sball have all iipb remedies buein prcwided to tbI Authority, and any refcnace herem to the Authodl1.hIll be decmeclt with the access"y clllaia in dctan. to iDdude such Trustee which shall be .. tbJriI PIrt1 bGucfld:uy 01 the COY_UIt&- and aarcemcnts of ~ PardclputJ hemll QODtaJncd. '

, &cdo. 601. TermlaadaD or ADltDd_t of Contract.

. (a) This Omtm:;l ahall aot be terminated by either party uAder any clrcumstances. wbether bued upOn the detault or the otht.r party UDder thD ContrlC:t 03: any other instrument or otherwise except u sp=c:ific:aUy provided III thb eon",c&. - ,

(b) This ConLrlct. shallllOt be amClldcd. modiSId, or otherwise al~rcd in any DWmV that wDl Idv_I Ilreel tbe .ccurity lor the Bandl a6ordc4 by the ,provisions 01 this Contract covw. the puretlue aDd JIIo ol'powcr hereunder upoo. which the OWDCI'I from time to thnc of-ille Bollda.Aail have relied U ID induceraeat to ptm:huc ncl hold Ibe Bonds. So 10111 u any of tho Boods arc OUtitodiDl or untilldcqUate ptcMsiou for the plyrIllllt lhc.reoC have beca made in atcordanc:c With tho prcrrillc:it:ia" or the Dodd llaolutloa. t1Wt eo.t.n.cl lhall Dat be amended. modified. or othcnrlso .aItend mUS)'

mal1l1Cr which will Rducc tho plymcats ,lcd,ed. u &ccwit1 Cor the Bonds or cxtcml the time. of such paymetlU proYidcd hereiD or which Will manI maaner impair or adversely affect the ri,hta r:I the owners from tlD'Ie to time or the Bondi. . '

(c) *lu the t:.rcJit 0) the Authority doa not lequire Uae -addidonaJ intcrcsll ill VOiOe Uniu Numben One lDei ~wo .. idaDtificd III the Dcic:rip,tlOIl of Project Four or [li) all 01 tile Partlcipants wbtch have cn1ctCd mto Power Sales COlItractl :witb the ..."thority shaD have lIOt entered into Con.

~acu 11Ibs1lntlaUy JdcndcaJ to.lhk CODtrlct lor tbc output Iud service of Project Four, tlieD tlliI ContnCt shaJltennlnlte and raatbcr party shall have uy further riahcs or oblfaatioDl h~er.

J6

e., ~.

AllnCLEVII

.. ScCtIOIl 701. Se,craIiWty.

of to

. In c:a.sc tn)' cmt or mon ot tht. pt~iol!S this CoDtraclshall (or 1.11)' reason be held be melat or iQvalid by a court or compctcllt jJlrJsdIctlOll, it Js tile inkation of each. of the pardel hereto thlt ruc:II illcaaUty or Invalidity shaD' Aot a!'ect any othl:r prorIsloll hereof. but tWa Contract sbn be c:allltnled and "farced as If I'IK:'h DIcp! or iDnJid Ilfomioa W DOl bca ccmw_l haciD.. ud *thiI coRmet shall be c:ol'lStl'UCd to adopt. but DOl to u1arJc upoI. all the applicable proYisioaI dllll! Act. fAd all the applicable prO¥fsioDI 0( the' ConadlutiolllJld 8C1\ct~l1&... of Georpa, aDd, if III)' prcwbioaa hc::Rot conftkl willi any applicable prOYidoD or uiel Constkutioll or Jaws. the 1& tl.et U adopted by the 1cPl.

. ture and as interpreted 0,1 the courts or this state shall prmll in lieu or any provlsJon hereo! In caJUct or nOl in banrJ,ollY therewith. . .

17

~~~j~~7~f~~f: ,~~ :;':,!,

',' " . ' e' ~:...:'":":'.~:: ~:::::.~.

• i.. ** .

IN WI'JlllESS WHERfOF.tll. M\lnir;ipal EJearic Authority or GCWlia bu <tallied thls Con

'\Tac:l tu be CSCl:IUcd In 11:1 COrycwalC Milia by i ... dilly slIcharizoc.d ~I&oas .ftc!. by d.. aeeution bereof' it is Ickno.,..~p!d tbal,paymeftll made lu,der WI CDftUIC\ may be :assigned.. u provided iu Scetioa

, 606(b) hereof. b,lJu: A\1lhority to the Tnutec tD be dcsiaaatcd ill 1111 Supplcmcntsl Prajcet Four Po..-cr RCVCDUC Bo!Id Ittsalatioa IS security for ,he payment or all Bonds of the AutborilY. U Jet f'onh In said Section 606(b) bcrtOr. ud tile Authority has QusaS its,corporate Kll \0 be hereunto imprc:ued .

and aUCSCcd: IJlc PanklJDAt flu caUJed tJUs Contract 10 be c.ucutecl in its CCIrpOr<It. Mae by its.daly auLbori2cd oIfic;crs Ind ias ~tc seal to be lIercunto imprc:ssed IDd Incsted. and ddiftry berear fly the AlilhorilY 10 tJte PartJcip.ftI is hereby IcJcnowJ~Icd. .U u of the day and year ftm .bon:, writlCl.

MUNICIPAt'ELECTlllC AUTHORITY OFOEORGIA A~AJTo~crm "

AlT: /..J /J 4~ . .* . . . .

Secr&lary-TruliUrer ,

APPJUWd M To FOI'IIl II

DESClUPIION OF PROJECl' FOUR l'h-= fa.dlities of Proj~ Four .ball be the. roUowIna:

A five percent undivided interat in t11-= two 1150 MWe maximllDl rated nudell ICDeratiJII units to be bod u tbe Atrin W. VOllie Nuc:lur Unita, NllD1bers Oae aDd Twa (indlYiduD.y designated II VOltle Unit No. I od VOJtle UDit No. laM collcc:tivdy.dcsiJQ&1e4 Q Plant VOid.) to be located near Wa)'llcsboro fa Burke: County. ~rsi **. lDdudtn, for sUch WIlts (i) la.od dcUncatcd.UICl dClCribccl In Gc.oraia Power CompIDy Ma, rd. M-I-3. to be recorded in the records of tho Clerk or tho Superior Court of Burke Couty, OcorJia and all JaDd nahla pertalclJl' thueto; (U) the 1l1dcu power reactors, the turbiall-lcacra.tOI'l, the buildi.np llou.dn& the JI.!2lea the ..liociate4 a1W1Jarles ud equipmcot, ud du: related tralUlmiuion faCilities aU u more plrtJcularl), dcscnW la the Applic:atioD. ~d amCDd*

meats thereto. by the GCQrP- Power Company bOrorc the AtamJc EnCfIY CnmmjmoD In llaelcet: Nos.

50-424 'and 50-425- Imt'thC Prelimllwy Safety AAall'Sb Rcpert, IllIl amcDdmeati thereto. wldm constiwtc:l a. part of lila A'pplica~ and (1if) lDYII1tariu of mataiaJr. JI1PPUu., tao!" "too1a &ad cquipmcDtI (or UJ4 iD CoMcCtion with Pla.pt Yottle. "

19..,

e*

• SCHEDULE. OF OBUGAnON SliAR!S .' .

The :Project Four Oblialtion Sbtrq of the ADnual hoje.ct Four COlts. which iDdud~ the ~ts or th~ "meet ptclYidcd ,b, tbe 4\utlloritYIn ateGrduc:c with the provisiou ol Sec:tioas 301a.nd 305 or the:.

Contract. ,ban (Of each ParticIpant be that rcspecti¥o Project Four Obli,.tlOD Sh.re set forth in t11e foliowilJ.lChcd.ule: ' .

~.. ,

O'.!ll__

~,lIcIr_'

SlIan .1'1~

'iJ=::

san

'Add **.***..*.*. , .*. " ** , *.*.. 1.164'" 0ritf\Il ........,.......... ....... I ...

uso""

AlbaDt ** : ** ; **. ! *************** lo.tO.$ Hoa.JSYillq ................... . 0.296

&rDCSvillo * * .. * *. *.. .. * * . . *.. . . . .. .... . 0.41.5 Ja.cboll ** ~ ..********'.*******.. 0.49' Btably ..................... ,. ................ . 0.814 laFayette .... I ********** t * * * * *

• 1.61$

B.tiDIoa....................................... . 0.033 LaGn.qo ., .*. , *..********.*.. l.l13 Bubd .................... 1,1 . . . . . . . . . . . . . . . . . f o.no La.~ ....... , ......... . 2.161 Cairo ......................................... . 1.713 MlIII6cld ***.******* " ****** "*** 0.021 Calhoun ...........'....... -.... ~ ............. . 1.810 . M~ ...................... . 11.1~1 Camilk ................. "..................... , 1.093 MOB.rOC ******* ".............. 1I

• 1.462 Ca1!"lctsYille ................ ,. ;........... . 5.2.0.5 MDldcello **.*****.***.******** . -0.405 CGIlel' Park ....... : ..*....*.** 7.101 MatI~ ........................... . 3.010 C~"'*.*****'******I CcriaJlllll - ......................... ..'

0.641 2.694 NGWDU ......

N~

1I ***** I ....

• ......... .. 1.60.5 OJ46 .

Crilp County****.*..******.**** 3.431 Palmetto ..................... . Q.331 Doec1aa. : .............. ,. ........... I . . . <. . . . . . .. 0.119 Quitman*.********..** '.' ****... 0.634

~ 1.~15

. . . . 11.' al* . . . . . . . . . I * * * * *

• SaDdu:m1le * * * * * * * * * * * . * * * * * **

• 0.110 BaIt Point. *.***** 0 .............. . "I.G19 Sr~ ............. I 3.118 BIbettoa................................... , .. . 1.358 SyJvlitq .**..*........*. '" *..

I ..... I ..... .

0.979 EDaYil1e ************** ~ ******** 0,301 ncmutal.......................... .

. FaIrbu.ra ... "............................... ,.. . ,0.568 1.l27 FItzlenl~ *.**....,.**....*.. , *. '1.9~O Thamatri11e............. ~ .. , **. 4.359

~~ ******** If. t * * * * * * * * * * * * * * . 0.994 WasbJDatoa, *** I; * * * * * *

• 4 . . . . ". * * *

• 1.059 Fort Va.U.ey **** , ............. .. 1.564 WCIII. PIsIJ:I t.. . . * . . . . . . . . . . . . . . . . Q.426 Gra.ntYille **** ".*******.****** I , 0.08] . W'IIiiham............. I Tow'*.*. t.*." .............

I

- 0.115 lOO.QOO~

20

~ .

. sownu A. ,

The Authority. in ~ccordanec whh tbe prcWions 0{ Section 311 at the Contract an4 mbjcct'to the pransions or the AlV'i1l W. Voade Nuclear Units Numbcn OIlC and Two Pur~e, ~elldmCDt.

AaialUllal and Assumption A&rcement.. dated u of Nonlilbcr 16. 19.3, blllween Gc6rp PQ\Iiet' Company and the Authority, intends to seU a portiOD of the output and Rmeca ol1llc Project Four to GeorJiI pOwer Company in ICC:Ordaza= with the foUowina schedule: .

.A. AJ to 78.0!. of the output associated willa the Authority'. Prolcct Foar,IUCJs lala ,ball be u' toUoWs~

r... s!fJ!ZV..

That POII1oD. of the Power Supply Yeer llemawq Af\er the Commeiclal Opcr&li.on Date or a Unit of PrOject Four ,

f\nt full Power Supply Year Follmng Commercial <?peration Dau SO.OS SeccIIld Fun Power SurP11 Year FoDowIq Commcrda OperadoJi Date 37.S'II Third Full POWCl Suppfr Year FoUo" Commercial Operation Date 17.5'11 FolUth Filii Power SIIPply Year FolJowin, Commercial OperatiOZl nate FlItb FuU 70"" Supply Yeer FolIowfnl Commcrciu .Opcra.tiOll Date Sixti'full power SuJlP.lY 'Year .

FoBowina CommcrQu OpcratiOll Date .

SeveptJa FliU Power Supply Yea$' .

Fo~OwlDI COIIJ1DCrc:ial Opa-adon Date 12.5~

IS. "M to 7.45 at the output us~ted with. the Authority's Project Four, IUch Illes to Ocaraia Power Company aban be equal to 100111 or the output and .cmcc:a be&fRnIAI with the CoJ:lllllCi'C1d O,PCfttiaD date ot

• Unit ollrojcct Fou and contilluln, uatD tha ad 01 tbc fwrtccath IuD Pewcr SupplJ .Yrv loUowbI, the Fower SupplJ Year ill. w1&lch the Commerclal Opuation.almch Ulit occurs.

C. AI to 14.65 of the output usocJatcd with the Authority's .Project Facar, such ..1. to Georpa Power Company .halI be eqnaJ to 100" of the output IDd 5CrYicc:a bqiDDiA,l with tho Commcrdal OpcraUOl dale of a trAit of ProJect Four and ahaU C:Ol1tmue llQtiI the later to 0CCIr of (I) Rtiremeat of such Unit., or rli) the 4rst to occur of the latest date lUted lot the pal'JDeat of the prindpll of Boa. or *,

or provisloI beiD. IOIde lor IUch payment h1.ccordaDc:c with SectfaD'1201 or tho BciJd RaaIutIa=. .

. .'. -D*. nc IIItIbuduDcal oi tho 'lorcp,illllChcdulc £s nOllnleDded ~ Ilm1t tk ~ of tho Autharitr IBated i.a SectIon 311 to ,eU lad w:hanle power' aDd Ula'U (rom Projcc:t Fow. .

,21

FlRSl'~"

~ RXJl\ PCmX SAIE.S ~

BEIWEm MJN1CIPAL EL'ECD1IC At1lRJ.U'lIf" or GB:RiIA fills :First ~ndment . of" )?rojec~ Four l:"oWI!r ~ :~traet, .

made and ent~ed into as of January 1,-1986, by ~ between t.be Mmici P.a.l Electr.f.c Jl.l:it.horit~ of Georgia, a publlc body corporate and pol~tlc

~ ' . . .

~ a pUc corporaUm Of the Stat.. of Georgia, hereina.ftar some times referred to u tba klt.Ixl.i-ity, created by the prov.lSloa.s of I ~.

L. 1975, p. 101, as amttldecl (TiUe 46-3-110 O.C.G.A.),. and the under signed polltiC8l. subllvislon of t.he State of Georgia, hereinafter sate

. * $ ~ ' .

. t " *

~a ~lgnate4 ~. the .Partic:~pant *

. \of I '1' NBS S B l' H:

B~ it remembex-ed t.ha,t a project l?CU.I:' Pc'wer ~ CClnb:act,

. &ted as of Novemhel' 16, 1983, hilS been exec:1lted. previously by and between the IIuthorlty*~.tha* Part1.ciplint, 'illld received its wholesale power sapply frOID the City C?f Cc"1ingt:on. bas r~ted ~ bee.aDe a Part.!eipantJ' and' H8DEAS, it 1s in-t.he best interests 'of the J\Qthodty, the Participan. ts an4 Oxford for Oxford to becane ,II . Part1cipent

.. upot1. the

• ~ti,on of a Project. FC!Ur PoWer Sales (bnt..raqt.

e.

For ana in eonaideraUon of the premises and tbe mutua.l cOvenants Md !qreeme.nts hereinafter set fortb, the sufUctancy ot which is hereby ackn~leOged, it_ is agreed by aDd between the putlea hereto that said r::t:mtrac.:t !a hereby aaeriIed u fol.l.awls:

Section 1. IJhe.Authcrity Is he.r!!by au.~.ized to ent.er inl:.o

. a- Project F~ur Powe~ saies cont:.r~ with cb:f~~ 4t .subst.mtl~Y the fom of th~. Project ?Q.Ir Power Sales -Contract* 'With. such chanqa as .

may be required to ~e such contract applicable to Qcford, efta tM Aathority is. further Authorized to provide to Oxfor4'outpu~ and services' of project. l'our in accordance wi th such contract, and to provide tba~ Oxfor4's Obligation share of Project Four'shall be O.19lt.

. Section 2. Thb Participant agrees. to ~e obligated ~

'assigned by the Authority'to Oxford: provid~, however, that the

AD.tbor.lty hereby avreea that it: will .take all ne!=essary action to enforce the payment:. of all sums due by Oxford for its ~U9.atioh Share, and this Participant 'shall receLve credit for its pro rata share of such pa~ts.

Section J. '1hia First llmel'ldnent ahall bec:x:im effectJ.w vhen SUch. emeodnent baa.been approved by Participants whose 1985 TranSmis- ..

sion Entitle:rent Shares represent, in the aggregate, oot less than 1St of the total Partlc:ipanta' Transmission Entitlement Shares for 1985, Prcn.tded, however, that t.hR Authority rray make s&rvlee to Oxford nI~

.active to ~ 1, 1986.

e.

IN WtTH~ WBEREO~I the Municipal Electric AuthorIty of

~rglaand the participant have'caused this First Amendment of Contract. to be exec.uted 11\, their corporate, na.nes by ~r duly autmr

~zed officers and the1.r c::Otporate seals to be hereu~t.o Impressed and attested,. ell.

. as of the date ana ~ first abovew:dtten.

~roYl!l4 As~ to rom

('lS~.;l*

BOAR) OF wum, ~ AlIl LIGEfl

. o:HaSS.IatmS OP '1BB crrr OIl ttI!JH\R

• AMENDMENT TO POWER S.A.LBS CONTRACTS BBI'WBBN MUNIClPAL BLECTRlC . . AND AUTHOlllTY OF GEORGIA THE UNDERSIQNED PAIlTICIPANr

~ ~ (1M"~ is.made and =tered iDro., of J8DIIBIJ 1",

200S' by and betwr,:en the' Murrlcipal Ekanc AUthority, of Gcorgia,. a 'pubUc ~Y COJpOOIte and politic' and a public ~~D of the Stale Of Getqia. ~.

som.cdmes referred to as the A.uthority, cn;atcd by the pnrrisicms of 19?5 Gcptgia Laws 107, " ameoded (O.eOA § 46-3-110, ot seq.), and the ~ ,polidcal subdivision of1he State of ~ hereiDafta' so~ destgoaic:d .. f:he Parliejpmt WITNESSETH:

~ tho A~ amd the Participant entered into a Power Slles CoatDct daIed !Ill of Oc:tober 1. 1975. a Fint ~ c::Iated as of Mardl I, 1976,

• Secoixt AmeDdmeot dated U of May 25. 1977, Ii 1'hhd Al;Dendma:at dated U ofFe1m:nrr:Y 1. 1978.

a Fow.th Amendment dated U ofMay J. 1980. a f"J.t\h Amendxne:ot dmd as ofNovembc:r

15. 1983. a SIXth Amendment dated U oflamwy I, J986, anel.a Sew:rrth AJ1ICDiroent d.ldcdu of May 31,1989 (beRiDafter"'Projec:l ODe PoWer Sales CoIltrl.Ct"); IDd WHBIUiAs, the Authority aDd 1hc PmtieipaDt tDtered mto a PO\Wr Sale. CoJmct dlDduofFcbruary 1,1978, .First~cndJ:w:m dated U ofMay 1. 1980, and aSeco¢ Amendmcat dated as of January I, ]986 (hereinafb:r "Project T'WO Power SlUes

~;AJJ4 :

"1U11I1A7UJorI

. WHER.EA8. the Autbority and the Puticipant entered into a Power Sales Comnct dated II otNay I. 1980. and a F'~ Ameudment dated .. ot1amwy I. 1916 {hc:reiDaftcr a.tproject l'hreo Power Sales Contract"); lind WIIBRBAS, tho ADtbority IDd thoParticipam eotrndimo a Power SaIQ ~

dated. II of Novaabc:r'16, 1983 aDd a Fa Amecdmeat dated at ot JIIDDI1l' 1, 1986 r *

. (h~ "Project Four Powa: SaJcs C~'); and W'BEREAS, tho Authority and th~ Pattidpant.~ to cxte:od. the tam of !flo Project One PowtI' Sales Cordnct. tho Project Two Power Sales COI'ltrac:t. tho Project

'J.l:no Power SUs Con1nlCl and thD Project Four Power ~ Con1:ract (herein.afh::r

.' . aometim.a refe:m:d to ooUectivcly as the "Power. Sales Coot:ract5") to the maximum period aDowe4 by law; aDd, WHER.EA8, . tho AutboDty hu dctcn:niDcd tb.tt it wiD DOt mmd' ex.iJtiD1 geoentiOil debt, but excludiug e'xistmg debt ~ to wOrldq c8pital,_ nuclear .' '/fo.rt fUel woddDa capital debt compoDGJli. beyond tho cximr.., tcmi ot ,. Pt)wei Sales.

. ' Contracts;", .

WHBRBAS. tho Authority ad die Participam wish to proVide for a method of aDocati.on ofthe oufpDt aud saMceI'lQd coats rela:tiDS to Project Two. Project Three BUd Project FoUl' fur1ho period of the term oxte.nsion of the Power Saba CoaInct.s pataining

" to JUdI Projeeta

• well IS provid.ing for aD ame:ndm.cnt to the Sebedulc of Obligation Shares pertaining to Project Four.

NOW THBR.BFORE, fOr aod in CODSidendion of the preiDiJes mJ mutual coVCDlDtl ad a~ herainaf!er* set forth., mld in orda' to provide f<< c;at.ain

-2

eIutuges in the POwal'Sales Contracts, it is agreed by aDd betwcco the Autbority and the Participant thU the terms oftbD Power SIlea Conb'lc:t IhIll be Imendcd u fonawa:

SeedoD 1. ExteDlloa of dI. Term of tile Power SaJa CaatracD.

The Authority IDd the 'Participm.t.hercby ex.temi die tam of tho Ponr Sales CoD1J:IdIa IS follows: '

(a.) The tenD of the Project One Power Sal. ~ is benby e:xtcadcd from March 1. 2024 until JUDO 1. 2PS4 (h=eiDafter, "Project One Tean

~'period*').

(b) lbo tmD of the Prqject Two Powr:r Salea eomr.:t it .bI:nby cxU:Dded from FCbrway 1. 2028 1IIdil,1U1Je 1. ~~4 (herciDafter "Project Two Tam EztcDIion Period"').

(c) Tho term,of the PIoject Threo Power so. CoDtract -is '~y mtcaded fiom May I, 2O~ UD!il ,1IILO J. 2OS4 (bcteiDaftcr "'Project 'Jbn?ct Term ':, ~

BxtmIlon Period").

(d) The tenD of the Pmject Four Power Salea Contrld.is hcrc:by

~ hn NOVClIDbBr 16, 2033 m:dil Juoc 1. 2OS4 (bcteiDaftcr ~oct Pour Tean Extcmiaa Period).

SeetIo. %.. Mapa pffmjecf 'fD. Pmject nm IIQd Project lour.

(a) Prqject :rwo AUoc;ation.

Section 308(a) of the Project Two Power Sales Coatnct ob~ tbc ADtbority to pro'llide to CICb Ptoject Two Participant, IUd obJipiea such PartidpIDt to, taka fi:om dlo Authority. the output Iud scrv.iccs ofProject Two bued upon !be rates and charges established by tbcAuthorityPursunt to Section 307(1) ofthc Project Two Power

.)..

A'DAIIII"""'1

Sales Contract. Tbo ADtbority and the Participant hereby ap that duting thD Project Two Tam Bxtemion P.aiod die output and aa:ricca aod c::osta of Project Two BbIJl be al10caaed to oath Project 'l'\¥o Participant baaed. 'DpOIl 8 pcrocotagO derived by. dividing tho total p&yDlCIda JDIde by Cf'Ch Project Two ParticiplDt for debt service aDd far capital colla during the CDt.irety of tbe origiDal tenD of the Ploject Two PO\\'er Salea CoDbet.

adjuatcd to prescm value. divided by the total payments ~ by III Project Two Participants fOr debt Ba"ViCD and capital c:osI:I fOr the eD1:irety of the original tam of the Project Two Power SaleI CoaIract, also adjusttd to present value ~ "'Project Two Billing Sbaret"). The Pmscnt value calculltioa sbaU be based upoD a discount '

t'Itctor equal to ,the wm,lhtod aVCGlF intal:st 90- of debt :relatiDg to Project Two durin, the entirety Gfthe orisiDal bmD ofPniject Two..

(b) Project TJapo AUocaIiOD.

Section 308(8) of the Project TIu:ee Power Sales Contract obligaIes the Authority to pmvidc to each Project lbrce Participmt, Snd obliptea such ParlicipIUlt to 1ake &om tbeAudJo.dty. the output md semces ofPIoject'Ibrcc based upoJI thcratellDd cbargcs estabJiahcd by the Authority pumwmt to Section 307(a) of the P10jeet 'lbree Power Sales contract. The Auibority BDd the ParticipaDt hereby ape that during tho' PlVjact 'J'1no TtIDl ExtmsiOQ Period. the 0Wput lad aervica md ~ of ProJect Three IhaIl be allocated to each Project TlDee PIIrtidpaat based upon a petca1IIp daived. by dividing the total paymcara made by cad1 Project 1'brcc Participant fbr dellt lCI'riec and for capital costs cfUrma die eatirety ofthe oripw1am of the PIOjcct 'l1ne Power SaJes Caotnct, adjusted to prcse:I1t value. divided by tho total paymcats made by aD Project 1bree PanicipBDtl for debt service and capital costa for the enbrcty of the origbW tesan of

tho Pmject tbreo Power SUea CcmtrIct. adjuted to present value, ~ '"Project

'l.'bree BiUiDa ShIrea"). The pnscmt value calculation shidI be bIsod upon a discount factor equal to the averep we.isbted irdcrest cost of debt roJatiDa to Project Threo cJuriug the a11iIet.y oftbe oripw term ofProject 1'bree.

ee) ProicctFqprAlJocaJjpp.

Section 308(a) of the Project Four Power. Sales Contract obliptel the Authority to provide to each Project Four P~cipaDt. and obUpres sudl PamcipaDI to tab 1hm1 the Aulbority. tho output IDIl services ofPmject Fo~ hued upaD the rates and chupa esbIbJished by the Authority pt1m1II1l to Section 307(a) of tb.Q ~acC Four Pawt=r ~es Contract The Auth~ IX1d the Participam btneby agree that duriDg the Project Four Tean ExteusiOll Period the output and services and COSCS of Prqject Four sbID be allocated to each Project Four Participant baaed IlpOD a pen:cutap derived by dividing the iotaJ. pt.ymca1s made by eaeh Project Four Participant for debt ICr'Vice IIDd fot t:apital oosts during the c:otircty of the oriJinal tmu of the Project Four Power Sales Contract, adjusted to prescot value, divided by tho total paYIDCDta made by all Project Four Particlpan1l for debt service and capital costa for the entirety of the origiml term of the Project Pour Pawt=r Sales Contrac:t. adjuated to preICIDt value. (he:reinIfter '"Pzoject Four BilHna Sbma"). The preiCDt value calculmon shan be bued DpGD a ditcoimt factor equal to the avenp weigbted interest cost of debt :relating to Proj~ Pour cfurin&

the entirc!tyofthc original tam ofPlOjed Four.

. MdidODllly, eftective ~ of:Novanbe:r 16. 2033. which is the erpinticm date of tho origiDaJ term oftbe Project Four Power Salel Omtnct. the Schedule ofP1qect Four

• 05 A1UI/11~1

Ob6ption Sbaza: sball be ame.oded so that each Project Four PartidpaDt:', Obligation Share sbIl1 be equl to such PlI1icipant's Project Four BilJiDg Share..

Setdoa 3. 'the Authorlty hereby asrees that illhaD not CJrtcDd the tt.nn of eo1 cxia1inJ gmcntion ~ cxcluaive of cXistiug debt pcrtaiDiog to wortibg capitIl.8Dd nuclear tucl ~ capital debt componen1s, beyond the- fttUO\Yi.na dates: existing Project One pcnDao debt &ball DOt be ~ beyond M.aIda I, 2026; existm& Project Two gcmention debt sball*mt be extended beyond FebnJiry I, 2028; exiiting Pioject

'Ibrec gcaen:tion debt sbaJl not be eUcmdM beyond May I. 2030; and aistins Pmject Four ge:neration debt IhaU not be -extc:Ddcd beyond November 16, 2033.

SeetioD 4. The Power Silos Contncts as amtmded ~ shall continue in eJli:d 8Dd arc reaffirmed by the parties. Tmm not defined hemn are to be defined a& in the Power Sales Contr8cts; SecdoD 5. This A.meadmcat &hall bcoomc et'fective wbm duly apprOved aDd exccatecl ~ dctivered by the ParticipIDt,. aud when executed IIDd delivered by the Anthority. The Authority will 0DJy execute and deliver the .Amendment wbcn it baa delivcRd by each of abe cDmGt b:ty-mne (4~) Participmtl.

[SiplltDrt.l Appc&r OIl Next Pap]

-6

IN WlTNESS WHEREOF. the Municipal Electric Authority of Georgia bas caused this Amendment to be executed in its eotporate name by its duly authorized officers and. the Authority has caused its corporate seal to be hereunto impressed and attested; tbe Panicipant has caused this Amendment to be executed in its corporate name by its duly authorized officers and the corporate seal to be hCRtmto impressed and attested, and delivery hereof by the Authority to the Participant is heRby acknowledged, aU ofthe date BDd year first above written.

MUNICIPAL ELECTRIC AUDiORITY OF GEORGIA

}:::!. u Attested:

By:

[SEAL]

PARTICIPANT:

ClIYOFADEL

'!::4~

I.

1Zb-nL f. L-c./

. ." .... t . *

, ,", (SEAL],

.j .)~

.. .~

-7

Vogtle Electric Generating Plant Financial Assurance Requirements for Decommissioning Nuclear Power Reactors (10 CFR 50.75(f)(1>>

Enclosure 4 City of Dalton, Georgia Response

~

Dalton UTiliTIES Docket Nos.: 50-424 50-425 U. S. Nuclear Regulatory Commission ATTN: Document Control Desk Washington, D.C. 20555 Vogtle Electric Generating 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. Accordingly, Dalton Utilities (Dalton) hereby submits the enclosed information in accordance with 10 CFR 50.75(f)(1) for operating licenses NPF-68 and NPF-81 issued for Vogtle Electric Generating Plant Units 1 and 2, respectively. Southern Nuclear Operating Company, as the operating licensee and as an agent for the owners of the Vogtle Electric Generating Plant, is providing this information to the NRC on behalf of Dalton.

Based on the information presented herein, there is reasonable assurance that the funding necessary for decommissioning of the VogUe Electric Generating 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 NPF-68 and NPF-81.

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

Respectfully submitted,

~ON UTILITIES, by, IL~~~

Enclosure 1200 V.D. Parrott, Jr. Parkway " P.O. Box 869

• Dalton, GA 30722

• 706.278.1313 "706.278.7230 Fax " www.dutil.com tAptiLinR

__.. . . . . . . . . . . .~~~

t:-'

'lVhatis POSSIBLE:

Enclosure Vogtle Electric Generating Plant Dalton Utilities Ownership Percentage - 1.6%

I 10 CFR 50.75(f)(1) Requirement Unit 1 Unit 2 i

1 The NRC minimum decommissioning estimate, pursuant to 10 CFR 50.75(b) and (c). 1 $7,355,0002 $7,355,000 2 2  : The amount accumulated at the end of the calendar year preceding the date of the report for $8,705,177 $8,742,401 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 2.42%

2.42%

costs; (b) rates of earnings on decommissioning funds; 6.41% 6.41%

(c) real rate of return; and 3.99% 3.99%

(d) rates of other factors used in funding N/A N/A i projections.

5

~~is~~~!r~c~sou6~~~~i~~::~~~~~~see is relying None None 6 I Any modifications to a licensee's current method None None

of providing financial assurance occurring since i 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. 14, for the burial factor (Option 2) and the December 2009 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, 2010 VJ n

=s (I) a.

c ar Plant Hatch Bank of New York CarrYing ValuE Market Value Par Value Wachovia Bank CarrYing Valu, Market Value Par Value Total Funds CarrYing Value Market Value Par Value -....

0

=s (I)

I

I C

Unit 1 7,609,447 10,698,893 14,100,000 7,465,996 6,706,638 4,712,833 15,075,443 17,405,531 18,812,833  !.

6,538,407 3 I>>

Unit 2 6,584,338 10,430,519 18,200,000 6,460,213 6,083,231 13,044,551 16,968,926 24,283,231 0 n Total 14,193,785 21,129,412 32,300,000 13,926,209 13,245,045 10,796.064 28,119,994 34,374,457 43.096,064 --

c

I 0

AI (I)

=s 3(I)

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3 I>>

Plant Vogtle

I

I Unit 1 3,167,416 5,350.929 12,200,000 3,107,705 3,354,248 4,077,770 6,275.122 8,705,177 16,277,770 co S'

0" Unit2 3,112,634 5,373,810 13,000,000 3,053,956 3,368,591 4,345,165 6,166,590 8,742,401 17,345,165 (I) 0 Total 6,280,051 10,724,739 25,200,000 6,161,661 6,722,840 8,422.936 12.441,712 17,447,579 33,622,936 2 ar n

(I) a.

Grand Tota 20,473,836 31,854,151 57,500,000 20,087,871 19,967,884 19,219,000 40,561,706 51,822,035 76,719,000