NL-13-0676, 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))

ML13091A214
Person / Time
Site:	Hatch
Issue date:	03/29/2013
From:	Pierce C Southern Co, Southern Nuclear Operating Co
To:	Document Control Desk, Office of Nuclear Reactor Regulation
References
NL-13-0676
Download: ML13091A214 (87)

Text

Charles R. Pierce Southern Nuclear Regulatory Affairs Director Operating Company, Inc.

40 Invern ess Center Parkway Post Office Box 1295 Birmin gham, Alabama35201 Tel 205.992.7872 Fax205.992.7601 March 29, 2013 SOUIHERN '\\

COMPANY Docket Nos.: 50-321 NL-13-0676 50-366 U. S. Nuclear Regulatory Commission ATTN: Document Control Desk Washington, D. C. 20555-0001 Edwin I. Hatch Nuclear Plant Financial Assurance Requirements for Decommissioning Nuclear Power Reactors (10 CFR 50.75(f)(1))

ladies and Gentlemen:

Pursuant to 1 0 CFR 50. 75(f)(1), each power reactor licensee is required to report to the NRC the status of its decommissioning funding for each reactor or part of each reactor it owns on a calendar year basis, beginning on March 31,1999, and every two years thereafter. Southern Nuclear Operating Company (Southern Nuclear) holds operating licenses DPR-57 and NPF-5 for Edwin I. Hatch Nuclear Plant Unit 1 and Unit 2, respectively. On behalf of the licensed owners of the Edwin I. Hatch Nuclear Plant (Georgia Power Company, Oglethorpe Power Corporation, the Municipal Electric Authority of Georgia, and the City of Dalton, Georgia), Southern Nuclear provides the enclosed submittals in accordance with the requirements of 10 CFR 50.75(f)(1).

This letter contains no NRC commitments. If you have any questions, please contact Ken McElroy at (205) 992-7369.

Respectfully submitted, C. R. Pierce Regulatory Affairs Director CRP/TWSllac

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.

Nuclear Regulatory Commission NL-13-0676 2

cc:

Mr. D. Cope, President and CEO P. Daiss, Vice President, Comptroller and Chief Accounting Officer Mr. S.

KuczynSki, Chairman, President &

Mr. D. G. Bost, Executive Vice President & Chief Nuclear Officer Mr. D. R. Madison, Vice President - Hatch Mr.

L. Ivey, Vice President Regulatory Affairs Mr. B. J. Adams, Vice President - Fleet Operations RTYPE: CHA02.004 Mr. V. M. McCree, Regional Administrator Mr. R.

Martin, NRR Senior Project Manager - Hatch Mr.

D. Morris, Senior Resident Inspector - Hatch

Edwin I. Hatch Nuclear Plant Financial Assurance Requirements for Decommissioning Nuclear Power Reactors 0 CFR 50.75(1)(1>>

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 404.506.31 28 apdai ss@southernco.com GEORGIA'\\

POWER March 8, 2013 A SOUTHERN COMPANY Docket Nos.:

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

Dear Ladies and Gentlemen:

Pursuant to 1 0 CFR 50.75(f)(1), each power reactor licensee is required to report to the NRC the status of its decommissioning funding for each reactor or part of each reactor it owns on a calendar year basis, beginning on March 31, 1999, and every two years thereafter. Georgia Power Company (GPC) hereby submits the enclosed information in accordance with 10 CFR 50. 75(f)(1) for operating licenses DPR-57 and NPF-5 issued for Edwin I. Hatch Nuclear Plant Unit 1 and 2, respectively. Southern Nuclear Operating Company, as the operating licensee and as an agent for the owners of the Edwin I. Hatch Nuclear Plant, is providing this information to the NRC on behalf of GPC.

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

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

Respectfully submitted, GEORGIA POWER COMPANY By: Ann P. Daiss Vice President, Comptroller and Chief Accounting Officer Enclosure

Enclosure I. Hatch Nuclear Plant Georgia Power Company Ownership Percentage - 50.1 %

10 CFR 50.75(f)(1) Requirement Unit 1 Unit 2 The NRC minimum

$320,552,0002 pursuant to 10 CFR 2

The amount accumulated at the end of the calendar the date of the

$224,866,0003 items and 3

A schedule of the annual amounts See Schedule in See Schedule in collected; for items in 10 CFR 4

The assumptions used (a) rates of escalation in decommissioning 2.41%

2.41%

costs; (b) rates of earnings on decommissioning 4.41%

4.41%

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

2.00%

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

5 Any contracts upon which the licensee is relying None None pursuant to 10 CFR

)(v).

Any modifications to a licensee's current method No modification since the No modification since the of providing financial assurance since last report. Funding is to an las!

is to the last submitted report.

External Sinking Fund with an External the sources of funds from T radi!ional Cost of Service ratemaking as ordered by Service the GPSC.

ordered 7

Any material rh",nrl'

None None NOTES:

1 The NRC formulas in section 10 CFR address reasonable assurance for funding decommissioining and include only those decommissioning costs incurred by licensees upon the expiration date of operating licenses 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 systems and structures is not included in the NRC decommissioning cost estimates.

costs 01 managing and storing spent fuel on-site until transfer to DOE also are not included in the cost formulas.

2 This amount is based on NUREG*1 Rev. 15, for the burial factor (Option 2) and the June 30,2012 BLS data for labor and energy. Use of June 30, 2012 BLS data best correlates with the July 1, 2012, burial costs used for determination of the burial escalation factor described in NUREG-1307, Rev. 15.

3 This amount represents the December 31, 2012 balance of funds in the external trust rI""If1r\\""~\\rI for license termination and does not include funds identified and held in subaccounts within the external trusts for spent fuel and of fuel facilities. The subaccounts include $489,000 and $1 for Units 1 and 2, through rates in accordance with Public Service Commission Orders.

Schedule of the Annual Amounts Remaining to Collected

GEORGIA POWER COMPANY NUCLEAR DECOMMISSIONING Based on 12/3112012 NRC2 Cost Estimates (In thousands)

SEG OF YEAR FUND YEAR FUND SAL EARNINGS 2013 224,866 9,917 2014 234,783 10,354 2015 245,137 10,811 2016 255,948 11,287 2017 267,235 11,785 2018 279,020 12,305 2019 291,325 12,847 2020 304,172 13,414 2021 317,586 14,006 2022 331,592 14,623 2023 346,215 15,268 2024 361,483 15,941 2025 377,424 16,644 2026 394,068 17,378 2027 411,446 18,145 2028 429,591 18,945 2029 448,536 19,780 2030 468,316 20,653 2031 488,969 21,564 2032 510,533 22,514 2033 533,047 23,507 2034 556,554 13,413 2035 2036 2037 2038 HATCH 1 Adjusted ENDOF FUND Annual YEAR CONTRIS Expend.

FUND SAL 0

0 234,783 0

0 245,137 0

0 255,948 0

0 267,235 0

0 279,020 0

0 291,325 0

0 304,172 0

0 317,586 0

0 331,592 0

0 346,215 0

0 361,483 0

0 377,424 0

0 394,068 0

0 411,446 0

0 429,591 0

0 448,536 0

0 468,316 0

0 488,969 0

0 510,533 0

0 533,047 0

0 556,554 0

0 569,967 GEORGIA POWER COMPANY NUCLEAR DECOMMISSIONING Based on 12/3112012 NRC2 Cost Estimates YEAR 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 SEG OF YEAR FUND SAL 208,614 217,814 227,420 237,449 247,921 258,854 270,269 282,188 294,632 307,625 321,191 335,356 350,145 365,586 381,708 398,541 416,117 434,468 453,628 473,633 494,520 516,328 539,098 562,872 587,695 613,612 FUND EARNINGS 9,200 9,606 10,029 10,472 10,933 11,415 11,919 12,444 12,993 13,566 14,165 14,789 15,441 16,122 16,833 17,576 18,351 19,160 20,005 20,887 21,808 22,770 23,774 24,823 25,917 14,788 (In thousands)

HATCH 2 Adjusted ENDOF FUND Annual YEAR CONTRIS Expend FUND SAL 0

0 217,814 0

0 227,420 0

0 237,449 0

0 247,921 0

0 258,854 0

0 270,269 0

0 282,188 0

0 294,632 0

0 307,625 0

0 321,191 0

0 335,356 0

0 350,145 0

0 365,586 0

0 381,708 0

0 398,541 0

0 416,117 0

0 434,468 0

0 453,628 0

0 473,633 0

0 494,520 0

0 516,328 0

0 539,098 0

0 562,872 0

0 587,695 0

0 613,612 0

0 628,400

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

Oglethorpe Power Corporation Response

t~OglethorpePower An Electric Membership Corporation March 7, 2013 Docket Nos.: SO-321 SO-366 U. S. Nuclear Regulatory Commission ATIN: Document Control Desk Washington, D.C. 20SSS Edwin I. Hatch Nuclear Plant Financial Assurance Requirements for Decommissioning Nuclear Power Reactors (10 CFR SO. 7S(f)(1 ))

Dear Ladies and Gentlemen:

Pursuant to 1 0 CFR SO. 7S(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. Oglethorpe Power Corporation (OPC) hereby submits the enclosed information in accordance with 10 CFR SO.7S(f)(1) for operating licenses DPR-S7 and NPF-S issued for Edwin I.

Hatch Nuclear Plant Unit 1 and 2, respectively. Southern Nuclear Operating Company, as the operating licensee and as an agent for the owners of the Edwin I. Hatch Nuclear Plant, is providing this information to the NRC on behalf of OPC.

Based on the information presented herein, there is reasonable assurance that the funding necessary for decommissioning the Edwin I. Hatch Nuclear Plant, consistent with the NRC prescribed minimum set forth in 10 CFR SO.7S(c), will be available on the expiration date of operating licenses DPR S7 and NPF-S.

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

Respectfully submitted,

/

1 J-(!~ _ / -' A

~ ?I '

//)/V'~- )

Anne F. Appleby Vice President, Treasurer Og lethorpe Power Corporation ILWW Enclosure Oglethorpe Power Corporation

• 2100 East Exchange Place

• Tucker, GA 30084-5336 Phone: 770-270-7600

• Fax: 770-270-7872 e A member of the Nationat Rural Elecrflc Cooperative Association

Enclosure Edwin I. Hatch Nuclear Plant Oglethorpe Power Corporation Ownership Percentage - 30.0%

10 CFR 50.75(f)(1) Requirement Unit 1 Unit 2 1

The NRC minimum decommissioning estimate,

$191,947,0002

$191,947,0002 pursuant to 10 CFR 50.75(b) and (c). 1 2

The amount accumulated at the end of the

$104,168,272

$81,894,712 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).

4 The assumptions used regarding:

(a) rates of escalation in decommissioning 2.41%

2.41%

costs; (b) rates of earnings on decommissioning funds; 600%

600%

(c) real rate of retum; and 3.59%

3.59%

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

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

6 Any modifications to a licensee's current method None None of providing financial assurance occurring since the last submitted report 7

Any material changes to trust agreements.

Replaced one fixed income Replaced one fixed income manager with another fixed manager with another fixed income manager income manager

• As a rural electric cooperative, ope rates are established by its Board of Directors. The ope Board of Directors approves the Long Range Financial Forecast annually. The Long Range Financial Forecast includes a 6% rate of earnings for the Hatch and Vogtle Nuclear Decommissioning Trust Funds, less a 2.41 % rate of escalation, for a real rate of return of 3.59%.

NOTES:

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

2 This amount is based on NUREG-1307, Rev. 15, for the burial factor (Option 2) and the June 30, 2012 BLS data for labor and energy. Use of June 30, 2012 BLS data best correlates with the July 1, 2012, burial costs used for determination of the burial escalation factor described in NUREG-1307, Rev. 15.

Schedule of the Annual Amounts Remaining to be Collected Oglethorpe Power Corporation 2012 NRC MINIMUM H atch 1 H atch 2 Earnings Rare:

6 Earnings Rare:

6 Balance Balance Balance Balance Year Begin Year Earnings Contribution End Year Year Begin Year Earnings Contribution End Year 2012 9),055,71 R 5,58,34 0

104,168,272 2012 73,I SR,277 4,389,497 0

81.894,71 ~

2013 104,168,272 6,250,096 0

110,418,368 2013 81,894,712 4,913,683 0

86,808,395 2014 110,418,368 6,625,102 0

117,043,470 2014 86,808,395 5,208,504 0

92,016,898 2015 117,043,470 7,022,608 0

124,066,079 2015 92,016,898 5,52),01 4 0

97,537,912 2016 124,066,079 7,443,965 0

131,510,043 2016 97,537,912 5,852,275 0

103,390,187 2017 131,510,043 7,890,6113 0

139,400,646 2017 103,390,187 6,203,411 0

109,593,598 2018 139,400,646 8,16 -1,039 0

147,764,685 2018 109,593,598 6,575,616 0

116,169,214 2019 14-,764,685 8,865,881 0

15(.,630,566 2019 116,169,214 6,970,153 0

123,139,367 2020 156,630,566 9,397,834 0

166,028,400 2020 123,139,367 7,388,362 0

130,527,729 2021 166,028,400 9,961,704 0

175,990,104 2021 130,527,729 7,831,664 0

138,359,393 2022 175,990,104 lOSS9.406 0

186,549,5'10 2022 138,359,393 8,301,564 0

146,660,956 2023 186,549,510 I 1,192,971 0

197,742,481 2023 146,660,956 8,799,657 0

155,460,61 4 2024 197,742,481 11,864,549 0

209,607,029 2024 155,460,614 9,327,637 0

164,788,251 2025 209,607,029 12,576,422 0

222,183,451 2025 164,788,251 9,887,295 0

174,675,546 2026 222,183,451 11331,007 0

235,514,458 2026 174,675,546 10,480,533 0

185, 156,078 2027 235,514,458 14,130,867 0

249,645,326 2027 185,156,078 11,109,365 0

196,265,443 2028 249,645,326 14,978,720 0

264,624.045 2028 196,265,443 11,775,927 0

208,041,370 2029 264,624,045 15,877,443 0

280,501,488 2029 208,041,370 12,482,482 0

220,523,852 2030 280,501,488 16,830,089 0

297,331,577 2030 220,523,852 13,231,431 0

233,755,283 2031 297,331,577 17,839,895 0

315,171,472 2031 233,755,283 14,025,317 0

247,780,6IJIJ 2032 31 5,171,472 18,910,288 0

334,081,760 2032 247,780,600 14,866,836 0

262,647,436 2033 334,081, 60 20,044,906 0

\\,)4,126,666 2033 262,647,436 15,758,846 C

278,406,282 2034 354,126,666 21,247,600 0

375,374,266 2034 278,406,282 16,7 4,377 0

295,110,659 2035 295, I I 0,659 17,706,640 0

312,817,298 2036 312,81 7,298 18,769,038 0

331,586,336 2037 331,586,336 19,895,180 0

351,481,51 7 2038 351,481,517 21,088,891 0

372,570,408

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

Municipal Electric Authority of Georgia Response

March 11,2013 Docket Nos.: 50-321 50-366 U. S. Nuclear Regulatory Commission ATIN: Document Control Desk Washington, D.C. 20555 Edwin I. Hatch Nuclear Plant Financial Assurance Requirements for Decommissioning Nuclear Power Reactors (10 CFR 50.75(f)(1))

Dear Ladies and Gentlemen:

Pursuant to 1 0 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, the Municipal Electric Authority of Georgia (MEAG) hereby submits the enclosed information in accordance with 10 CFR 50. 75(f)( 1) for operating licenses DPR-57 and NPF-5 issued for Edwin I. Hatch Nuclear Plant Unit 1 and 2, respectively. Southern Nuclear Operating Company, as the operating licensee and as an agent for the owners of the Edwin I. Hatch Nuclear Plant, is providing this information to the NRC on behalf of MEAG.

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

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

Respectfully submitted, MUNICIPAL ELECTRIC AUTHORITY OF GEORGIA, by, t:-F~?A Senior Vice President, Chief Financial Officer ILWW Municipal Elpctric Authority of Georgia Enclosure 1470 Riv"rl',lgl' Parkway, NW Atlonta. Gporgia :~0.'28-4686 I-HOO-:-l:n -MEAG i7U-S63-U3UU rux 770-CJ5:{-:H-H

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

10 CFR SO.7S(f)(1) Requirement Unit 1 Unit2 1

The NRC minimum decommissioning

$113,249,0002

$11 24Q nnn2 pursuant to 10 CFR 50.75(b) and (c) 2 The amount accumulated at the end of the

$89,800,634.58

$88,053,662.51 calendar the date of the report for items in 10 50.75(b) and 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).

4 The assumptions used regarding:

(a) rates of escalation in decommissioning 3.60%

3.60%

costs; rates of on V"-'VII

funds; 5.60%

5.60%

(c) real rale of return; and 2.00%

2.00%

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

5 I Any contracts upon which the licensee is relying pursuant to 10 CFR 6

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

7 Any material ""OII;,j"'" to trust agreements.

None None NOTES:

1 The NRC formulas in section 10 CFR 50.75(c) include only those costs incurred by licensees to remove a facility or site safely from service and reduce residual radioactivity to that (1) release of the property for unrestricted use and termination of the license; or release of the property under restricted conditions and termination of the license. The cost of or and structures is not included in the NRC decommissioning cost estimates. The costs of spent fuel on-site until transfer to DOE are not included in the cost formulas 2 This amount is based on NU REG-1307, Rev. 15, for the burial factor (Option 2) and the June 30, 2012 BLS data for labor and Use of June 30, 2012 BLS data best correlates with the July 1,2012, burial costs used for determination the burial escalation factor described in NUREG-1307, Rev. 15.

Schedule of the Annual Amounts Remaining to be Collected

Calendar 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 Total Options MEAG POWER Decommissioning Funding Plan l'iuclear Decommissioning Fund - Halch I (Dollars in thousands)

Balance at Interest Less:

Balance at 89,801 89,801 5,004 (140) 94,665 94,665 5,227 (146) 99,746 99,746 5,462 (152) 105,056 105,056 5,7LO (159) 110,607 110,607 5,972 (167) 116,412 116,412 6,247

( 174) 122,485 122,485 6,538

( 182) 128,841 128,841 6,844

( 191) 135,495 135,495 7,168 142,463 142,463 7,508 (209) 149,762 149,762 7,868 (219) 157,411 157,411 8,247 (229) 165,428 165,428 8,646 (240) 173,834 173,834 9,068 (252) 182,650 182,650 9,512 (264) 19]'897 191,897 9,980 201,601 201,601 10,474 (291) 211,784 211,784 10,995 (305) 222,474 222,474 11,544 (320) 233,699 233,699 12,123 (336) 245,486 245,486 12,734 (353) 257,867 257,867 8,924 (247) 266,545 Level Payments Footnotes:

(1) - Based on the current funding levels and decommissioning forecast, the decommissioning contributions lor Hatch Unit One are being suspended Date: 3111/2013; Time: 4:52 PM

Calendar 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 Total Options:

MEAG POWER Decommissioning Funding Plan Nuclear Decommissioning Fund - Halch 2 (Dollars in tllOusands)

Balance at Interest Less:

Balance at 88,054 88,054 4,902 (137) 92,8]8 92,818 5,110 (143) 97,785 97,785 5,329 (149) 102,965 102,965 5,560

( 155) 108,370 108,370 5,804 (162) 114,011 114,011 6,061 (169) 119,903 119,903 6,332 (177) 126,058 126,058 6,618 (184) 132,491 132,491 6,919

( 193) 139,218 139,218 7,237 (202) 146,253 146,253 7,572 (211 )

153,614

]53,614 7,925 (221) 161,319 161,319 8,298 (231) 169,386 169,386 8,691 (242) 177,835 177,835 9,105 (253) 186,687 186,687 9,542 (265) 195,964 195,964 10,003 (278) 205,689 205,689 10,488 (291) 215,886 215,886 11,000 (305) 226,582 226,582 11,541 (320) 237,802 237,802 12,110 (336) 249,577 249,577 12,710 (352) 261,935 261,935 13,344 (369) 274,909 274,909 14,011 (392) 288,529 288,529

/4,715 (411 )

302,832 302,832 7,736 (216) 310,352 Level Payments Footnotes:

(I) Based on the current funding levels and decommissioning forecast, the contributions for Hatch Unit Two are being suspended Date: 3/1 Time: 4:52 PM Edwin I. Hatch Nuclear Plant Financial Assurance Requirements for Decommissioning Nuclear Power Reactors - 2013 Submittal Project One Power Sales Agreement

I I.

PO~ SALES CONTRAGr BIhmn MmnCIPAL ELECTRIC AUTHORITY OF* GEORGIA CITY OF This Cclltnct, made and entired into II of October 1. 1975. by and bctnen the HlUIlc:lpal El.etnc Autharlty of Georda. a public body corporat. ad politic: and ~ pl1~rr:

corporab ot the Stat. of Georai& hueiDa1ter lOZIIet5mes dufpatad. u the Authority. aut..

t4 lIT the prcm.sfcma 01,1 GL L. 1975, Po 107. U UDIftded. llId.

CITY OF a political sllbdivbfon of the State Dt Georaia, 'htrtil1l.1tG' sometimes duf.-nated a.i the Pat' *

• ~dllallt, WITNESSETH THAT:

WllEREAS, the P.rticIpl.1lt hu Jletd tor III ICDnom1tal, reliable lOurte ot electrlt P01fU' &Dd enera7 to 1:Dftt the rrowfur demaulls of fts CIlStomerS aDd has dltarmined to purchue I\\Idl Iledric power and eul'lY trom ruourou 'owned, c:ontro]J.ed, 01' llarchalld bTtheAutlumtJ.and WHEREAS, the AuthOrlt7 wU1 taka or caase to be Wcm all steps necess&r7 to lec111'l Illth roverDDlutal pl!1"Ddtt. licenla, anet anro';&1J u are necuaalT for. I.DII will theu pt"1)o c:Hd.. apprapJ'fati witll final dmp, flllandQr and.cq,ursttloZi or c:onstruction at Utese

!adUties hertbl dac:Jbe4 and desfpat.. IS the Project tor the IU})Ply of IIltctrlc power UId.

ezsU'17 to 'the l'artfdp&Ilt cd. to all otlI~ poUtlcaJ lubdlYfllou.coJltract.ln. 1rith the Authar StJ thue!or. &DCI "frill ltD the output AIld Ie:'lfces o~ ncb facDltfullunuaut to thIlI Col1tnct 1.114 to contracts

• lubltutfally fdantfeal to tldJ Cel2ttaet with other poUtIcal lubdlvWODI" duianatC to,ctber :with the Parlfdpant &a the. Parlfdpnts.,and WHEREAS. !n addiUon to the saIl to the Partieipcb of. \\l&e output and l.mca of the Projec:t. ille Authority 'frlll allo. obtaln tOI' and provfd. to the Putrdpanb the Put!dp&Dti Suppl~eDb1.B~

• Pcrwu StlPply, as b.~~aftar dt&td, and WHEREAS, fa order to enable the Authority to luue ttl r~v.nue bed, to pay the COlli 01 acqufriJlr.2I!d CODItl'lIctiDI' the Project, Jt I. nlCuwy'!or the Authorib' to ha.,. bindJllr cCll1tncts yUh web,oUtic:a1 subdl-nllonl of the State of ~orli& U IDar det.um.1ne, pursuant to authorltT of I GL 1.. 1975, p, 107. as ammded, to contrad With the Authority, 1.1Ic! III pa1~

.menu required to be made iu accorduu with the pron..[oDS of Article m of IUch contrad.t,

.!DcludlDI' paJ'lllmb required to be Inde under.A.rtfcJe nr of this CoJltract, and all oUle,. pq meta attributable to the ProSec:t or to the.A.DJlIl&l Project Colb, ** hue1.n&ttilr deflued, to be made {n a~aDC' with or pursuant to IllY other pl'ovidon at tiw CoJltnct and.~ch otha contracts Oall b~ pJed,ed as lIC:urity for the z,aymmt at sudl,Bondi; 1

NOW,.-uREFORE:

FoC' and in con.wideraUoD of the pr.~i.tll and the Mutual cOVInanta and a;:reemeu.i:.s here blaftv **t forth, and In order to ~ay the Authority for ib COlts.aC prOYidl~ (I) the l'arti.

d~ant'l EnUtJemant Share. as hveinafter definld, of the oatpGt cd semell of u.eh f&cU1t1 of the Project ~ (Ii) thl ParUdpant's SUllplellllnt&1 Bulk POWa' Supply. it iaalt'ttd by and betYtlm the partilS hueto as foUOW1:

.ARTICLE I TEBM 'OF CONTRACT. DEFINITIONS Sec:t(anlO1. Tum.

The term of this Contract shan btiin and this Contract shall canititutli a biDdm. obU-ption of the partlu hereto from and attar fb execution by the lut party to exKu~ the am.. Thl obll,ation ot the AutllorltT to provia. llectric po1l"tr ane! cnerl7, under the p~

vilioM of thiI CODtract.'hall blain with the !lrlt issua'ACl aDd dellYlq by uld Authority of any of Its Baads whkh ara authorized to ~ [..ued by the prov1llona of I Ga. L,l~5, p, 107.

as amtuded. or, In tht nent nata of th. AuthoritT art taued In aatic:lpatloll of the Illuanee _

at Bow, IUch abllptian shall beain with the taa\\l&DCI ud a.tUnl'7 of aucb. bond &Atlclp&tian DOtes. Tb tum of this Contract shalt contInu. tn full force aDd Iffeet \\ULtn IUch tim.. Dot L'CCK<llaK fifty run, as aU of the Authority'l Boud,s u hlnlDAfter*dtfiad or Data. fuued in antidpaUon of the inu&Ilct of Banda and the Interest thereon ha... 'been pald Dr prllTiJion for pa1=lllt ahall have bun made In accordance with t4t provialons of the Boad Ruolution

, or until sadl Uma as tht Projld.!taU be rtt$.rtd lrom..a&rTica, decamm.i,.ioD~ or dispoaed of bT the Authority, whichever b law.

Section. 102. D.t1nlUoDS ucl Esplanatloll*ot Terms, AA DIed herein: '

(a) "Act".ball mean that certain Act of tllt 197~ unIon of the GlIDeral.Asaembl1 of the Stat. of GtorJia COMpillci.nd ~ubl1lhed. fn I Gao L 1976. p. 10'1, as the Am. hu l!eG her..

tDfoA *or 111&1-be htrwttt alftlJldld.

(b} "AnnUl Proleet Costa"ih&n mun, with rupect to & Power SapptT Year, to tht'ez, tellt not paId AS a part of tht COlts of AcqulaltroD aDd Constructlon..n coat.. and exptUlS of the Authorit1 paId by th8 Authority for ucb of the paeraUDe f.clUUa and the transm.t.

don IJItem faci1Itiu coazpmll\\l' the Project durinr IIIch Powc SupplT Yt'&r aUocab1e to the ProJeet Includbl., but lIot Umited to, lhasa ttt:n.s 'of COlt aud IXpIJ1H reftrnd to In $ICtIOD S06(b).. nd Cd. hereof,.. Allnual Proj.ct a.nentlon F'lXed ChUKa, Ot;!llr ADDual Project GenuaUon Coau, Anniu.l Project Trall.la1ialon Fi:uld Char **, and Othl1" ADuual Project TraumltIloI1 Cam. '

(e)" "Anuw Supplemental Cosu" lhall ChiD l'1aae cost. and expllDlU 01 the Authority,

allocable to thl purclwln. Or furnbhlDl' 01 Supplemut&! BII!Jc Power Supply to the ParttcI.

pants.

Cd} "Annual S,stem. Bud.e!;".hall mlln, with roped to. Pa'Wlr Supply Year, tht budr*

et.adoptad bt the AuthOrity not leu than thlrt7 dar. prior to the bqina.iJl1' of IUc:h POWtr SllpplT Year Yhreb budret shall itemize uthnata c,f AnDual PraJlCt Costa and Annw Sup plemental c.tt ucl aU revenues, income, or othel' fundi to be applied to lach Cosu, rupee.

tbe17. for aDC! appHeabJt to Iuch Power SlIlIply Year art in the ease of.an &mInded IQUl Budr.

et. for and appUc:able to ~ucb. Year lor the remainder of such Power Supp1r Yea.~.

2

(a) "13ill1Dc St&tlmmt".hall mean thl wrltteD atat.emmt pnpand or C&Ulecl to be, pre pared monthlt by the Authority that ahall bl baud upon the Annual S)'IUm l!udc.t or upon tha ~ended.AnDual S1Ittm l!udllt adopted b1 the Authority llanuant to Section 202 hereof,

, &lid th.Jt.Ull maw thl mcmthb' &mOlmt to be paid to tha Authority by the Putfc1p&nt In ac:.

cordaDce with the prO'rialonl of SectlODI 807 and 408 hueof.

(f) "Jondi" Ihan me~D thl bow lulled by tb Authorlt:1 punuant to ~I pl'O"lialollS of '

the Bond :ResolutioD to finaacl or rdllWlCl the Coat of AcqllUltlon ad ConItruction 01 the Proiett. whethu or Jlot aDy iaue of IUc:h bondl IhaU be subordiJl&ted.. to ~1lDtnt to UJ1 oth.r wue at,uc:h bonds, and.hall (nelude addit50iW lIonds lasue.4 purl11IJ1t to the pravi aloDS at Section 501 hereof and nfuJ1db1, Janda issued parlUl11t to the prcm.ions af Sec tion 502 hereof.

(I) "!and Reiolutfon" shall mlan the Power Rivenul Bond RuolutiOD and any S\\.lpp~

mental POftf RavID". Boud Ruobrtloa to be adopted. bY,thl Authority and Iccepled by the Trustal and the Co:-Trustel '(If any) thereunder tor'the benefit of the OwnUI of the BoDds which shall provide for the luuance'of web Bonch, a copy of which PowtLlleYenul Boed Rlaolut1oa.

~d Pint Suppllmental Power !tneDul Bond Ruolutlon In substantiaUy the form to be adopted by thl Authority ahall be on 111e In the rlcords ot the Putic!pteJt.

(h) "Bunt" Power SupplT'.. hall mean. with rupect t4 a Part5cipant, aD e1eet:ric l>O'Wl%'

and enlt.,. required by IUch Partlc:lpant In ucus of that amoUDt (S) lUPpUed 'br an1.mer ation &JIll tz-IDImfaafcm raourc:a owned by lut.h Partldpant OD the dfdn date o:f tJdII Con tract, <ii) ' received by auch Partidpant trom the Souiheutun POWIf A.dmJD,lstntfan (SEPA), md (UI) procured by 1Uc:h Participantfram alterData ba.llc power IUPPly resourc~

in accordaJl~e with the provlafou of Sec:tlOD 'D4, llueot.

(I) "Commercial Oper&tSon Dat," miUl mUD. with respect ~ each fadllty of the Project, the beJUmJn, rtf the clay on wldcb auch tac:mtT of the Prvjec:t; iI. in thl aphdOll. of th. Author...

tty, produdD, IJId dellnriDC elactric po'War aDd IDUI1 for. COmlZluda.l12M, prnidec!, how.

,I';er, In the..at IJIY IUch fadUty Is prod~dD&' md del1.erin. electric pcnrtr and CUll" tor commuda.l ua. on the d.ta of a.cqll!litfon of the AuthoritYa interest theieln, the Author.

Ity mar estabUah a Couunerdal Operation 'Date for such faciliV which date shall be witbm a J'UIO~l. time of the aU_diva date ofauch "1l1l1lltion.

(j) "CanllIltl~ Ezi,meU shalJ IDUIl an en';neu or Ulrll1euiDc firlD of naUonal repl1 t&Uon hanrsr demoDitrat.ed exputla.ln the fflld of electric power &eneratf~ tran.mUuion, po1Rr sapplT. electric: utUfty ' oplfa~OJU, ntes, and flu1bility.

(Ic) "Contract" mci ;'PowU" Sal.. Contracts" Ib&ll mtl.ll, respecUyely, tb1s Contnc:t with the Putic:ipant and all PQwer Sal.. Contnell, fndudinl tAU Contraet, NbltantiaD1 ldent:1eal hereto Intend into by the Authority and a Puticlpaot; In each cue U tbt

" 1UD1 may be am'Dd~d rtom,time to time.

(n "Cod of Acqu!.ttfon &lSd' CoDStnction" lhall me.u, to thl extent not bseluded iD ~

naa! Project Coats, all co.ts of aDd uptUU of plmnfnl', des1pinl', acquiriDr. cODltrl1ctinr, imt.a.lJinl', and fiUDcinr the Project, pJaciZlr thl Profect in operation. decommf**ionJD" or dlspo.ul of the Project. ud obtalnlnl,IOVtrDJDlDtal appronll, c:ettlficatu. pena1b1 and.

IicIDSU 1ritl\\ respect therlt.Q heretafon or her-aft.,. pald or incarred b, thI Authodti &lid

. ~ay !nc:ludt, hI addJtioJ1 aDd without 1Im.itatJOD, the followiDr~ '

(1) worldal' capital and reservQ Il1lu~h &mOUDta u may be estabUlhed purl1l&llt to tlIe BoDd llaolut!oa.

. (2), 1Dterat aeerulD, in whole o~ in part OD Bonds prior to and cl~ cODltnlc:tlon and for auch addltional,lerfod at the A.\\ltll.o~ty maT n...,ol1&b17 det.e~1 to be n~Ul7 S

for the placiDI of the Project or IIl'Il flLl::ilit,r thueot ill operation in ac.dard.ame witlJ. t1uII prOYislou o:l lb. ::B'oDi! ltuoluHoll, ".

, (8) 1.Cq,*lUo1l. of Initial fuel for each..en.eration f&.cinty at the Proj<<t and In.r capital au ruerru therefor &1I.d 1rorkina-capital ud %UG'T8S for raloa.d filet.

(4) the depoa1t or deposita from the protetda i:lfBow _ed to fhu..I.c.e SUc:lHOIIIb

,m 1UlJ' fwd or I.CCOlmt lll11ta'blWsed pl.U"lU.aXlt to tbe BoDi! Ilao1utioll to mNt Debt Su.

"rice resene requirmumta for Bc:n:Ub.

,(IS) the depcait or depoldb from the proceedlli of Bona. tuu14 te 1'ttw1C1lt1dl coati mpy fWld!il or accounts lIb'bUaW punttaD.t to the Boud. :RaoIutlon II raena for ri

]leWaIa IUld replAcements. ntfr.DHIDt from lIIenlce, deeommilllotWi, or dJ.Irpoclll of anl

,amtin.. fadl!tr of the Project or COl'ltmlllmclu.

C6l tn..£n.In, rmd tedin, cOIt.1mcurnil by the Authonly.

(1) preUmfnuy mvntiption and development cosU. enlfnew, fnll, contmcton*,

feU; eom, of labor, matl%f.dl. equipment, utl!it.'y servicu UId &u~pll. &rid 'J.ep1 aDd

.f1Iu.ndnI costa, (8) 8ll COlts of ~ applicable to th. pmod 01 cofl.tbuetion. and (9) all otha com Incurred by th. Authority and,properly a.Uocable to th. acquisition and cal'Ulwcticm of l1:ufPtQject, lnckldl.nr all coll:a finllJlCed by the Enu:rl.nCtl of Id.d!tlotl.lll Bondi pWS!.W'At to Ser.:Ulm 501. bueot.

. (m) "Debt SU"Iiciil" IhaD mun. with rupact to &Il"perlod, the aor.pt.of tba amowt.1i required bi the :S~nd. Raolutlcm to be pald. llum:1' _aid pulod IDte lilY faud. or funda crated by the :Bond :Resolution for the IOle purpoae of payial' the principal (bcluc1fnc IiDJI:inI fune!

. installments) of and prllmlmu. if.my. and Interest 011 &l1 the Bond.t frlIDl time to tlmit o'llbtand.

iD.. u the.a..m.e ahaU bKome clut. proYicbd. howeft!'. that Debt Senic& ahaU Dot mdudAtaU1 aeceiv&tion of the ma.turlt:r of tlui Bo:ud&

(n) "Enl::itlemmt Sbare" dal1 MUD, with fUpect to a Parl.iciput awl Pow~r Sapp17 Year aDd 'With rapcct to tb.e,ellvatin.. f&dUties (Ine!udllll'*re1ate4 tuaamiulon f&e1UtUa) and thl tn.n.amillllion Q'Jltim facUltiu af the ProjeCt. (1) that PU'Clllntap'af the output &:14 GuricllS of lueb ree%atlq fulUtfu IIltt forth [a th. Sdlll!duJe of Out>>ut EnHtltD1llllt S~*

..ttaehed hlllreto for a!lela Partlcfpant ia lueb Power SupP1r Year,.u the BalM ma.J' heru.ft.er be waUied fll &ceonhnc:. with the provf.liou of the Power Biles Coatn.ct. with.ach Par ticipant:. 8lId (il).that pvc.b.... of t:an.mwudon auricu whieb Wll be clet.vmfDad b7 tha AuthoritY durlDI' ueh POWit!' Supply Yar to b. allocable to lIw:h PartWpllLDt in IU:Cl.n-du.ce 1dth the pro'ri~oaa of SKtfon lOB her~

(01 ":rue) Costs" ahaD. mUD'aU cosb incurred b:Y the Autbcrltr. dnrinr ~, Powu Sap..

ply Yur that are aUocabt~ to the AcqufllltfoD, proc:lI!ulnr. :Cabrlatloll, tnnsportatlbD,. <<I.D:ver.

JQ'. reprocwiQ'. stora.p, aDd diepaaal*af Iluclur matuWa requfzed fol' tBw-llU'.lvatiOll. fadl ltla of ;be ProjeCt. IDClud..irJ.I tranil:ferlll to muves utablWml bJ the Authorltrfor IUela eosts relat.e4 to future Power Sl3pply Yet!ora, leu c:.t't.dJb rel.&ted to IIIldl. cosb appW u approprl.

ate ID,the dfscreUcA of the Alllhol.it;r.

(p) "Participant.. lhall mean the politieallubdivfilcm. whIch 111 a party to thl. Con:tract.

"Partidpub" shall mean all poUth::aI Gl.lbdh1aioM In the State cst Georrla which cnt'l'l &Dd op.

er~t. IIIltetric IUstri'buUo:l1 8)'lIums to Ilene their eit1se.DS. Inhabitant. and cuatomen b, pro

'rldiD, them with etecf.:ric: poWU' and enul1 AI'l4 wbId! llU'e paMIII to contracb with the AllthO'C4 ft;r aubatutiaJb' tcluUaJ to thll Contract. Th. tum PllUtfclpantl llha11lnclude th. "PIU:'.

tic[pllnt," Ills! the terms Ifa P.ut1dpant" or "eaCh Particlpant" lIhllll tauu Q1 on of the Putidpantlll or ~dI.. of the PazUdpanb, &II the CJII.Se :mA,. be. *'Partidpa.at" alta.U Include 1U1 cOD:'U:'l':du£Or& or qu\\cy of.nch polUlcal 8ubcUyflion whlc:b operata IV coni!acta, or _wa.

Swi.lldli:tIoIl OVU 07 ult!rd::fA.! fUl:I.CtioJl I1f the Pl..l:'tIdpot".lI electric: IlIstrihuUon a,lIt.em.

4&

- (Ii) "'Power Supply Year" IIMJJ mem the calendar Jear, aclpt tha.t \\hI firat Power,S~p ply Yur.ball 'klin on the date thll Authority WaD ollUI_tion to prcrvldll e1edrlc power and IlDIlrIY as determlned in accordanclI 't"fth the proviaIons of SlCtia:a 101, hll%'tCf.

(r) *"Proportionat:4li Shan" IIhall mun, with raped to.. Pa.rtidpant awl I!' Powu Sup.

PlY Yai, that p<<reenta,. of thll ki1.ow&t.tl Of kilowatt houri, as the ea.1 may be, ef Ueh type of lneluded in Sl.Ip:p1einei2tal l3gD( Power Supply whJch sue'&. Parttdpmt i8 atJtled to reel,.. aDd for which.uch Partidpamt III obliptcc:\\ to PIIY' In each mO,lth of.. Powa-Supply YINZ. With 1'III'PKt tD Jdlcwat:b. ncb Pfrcmtap lhaJl be obblnad tor moath bY' dh'fdinr the maximum. oillt-hour mterr&t.ecl colncldrmt ayatim demand of lUeb Putidpl1lt'1l Sl.Ippw.

mental Bulk Powu SupplJ provided Dr the Authority durInr the particular month the max ImUM one-hour intqratm colneidat anwm dtil1l.nda of Supplemental Bdt: Power Supply pro'ridllld 'by fbI Authority ta aU the Putic:ipal1t.t durinl tht month. mth lapllCt to 'ldJl.",.'t;t hourI,.ueh pm:entare for..ch month wn be obtained.by div.ldln, thll'ldlawatt ho\\U'lll of Sup plemental Bulk Pawll" SupplY' deHvered by thll Authority to !luch Puti'dpent durinl' the particuJar month 'by t'h.e total kilowatt bUrl of Supplemental BIllk Power Sl2pPlJ' delinred bY' thll Authorit1 ta all of the P.u-t1d'pan~ dll.rmlr that month.

(I) "ProlKt.. shall meaD these electric lenuaUon and nlatad transmisaoll facilitiu which an IdentUled fn the DamptioD of Project and thou tw.umjulon Qatm!. faf;rutiu to

. which reference i. mad_In thlll Daaiptloa of Prol~t to bill acq,uir9d ami cohlltruc:ted the Authority dudq the time :prior to the Comll'utrdal OperatiaD n..t. of the lut of the Inl' fac:mU.. af the Pro/ed. to 'k completed In order to l!I.nt the Authl)rtty'IID'Yutment reapan

~Ibmb' dUrill,lI\\ich time ill COl'lnKtiOTl 'lrith any ap-Hmlnt for 11.1\\ lnbt,rated tranamiu~OD Iy....

tem to whfeb the Authority mar btl a puty In accorda:nce wJtk the pra'risioWi of SectiOD 802 hereof, tolether witb. (I). allY' m~or renewal!. :replacements. repa.irs, addltio'lllt bett.el:meDb and lmProvemeDts DKeuuy. In the 'oplnlcll2J of the CODlLllltbr Enif:n_i,to l:eep tha ProJCII:;t in,.ood o:pentinl condJtfoD or to PATent a lOA of revenuu thentrom, Ui) IlDY' major addl 110M, Impro'lemets, repairs and modifications to th. Project lind Ill,.. decommlulaD.b1p or '

dfspoaall of the Project. required by al21' punmenb.1 al'ency hsvED" jurisdlct50n over the Project or for whieh th. A!lthorlty shall bll fIIlpoMible by virtue of any obllratlcm 01 the Au.

tharit,y ad.ln, out of any contrad:: to which the Autha:r!t;r mar b. a. PU"t7 reIaUnr to owner

.blp of the Prt'ject or any fadJity thueof. Oil) thOle trarwnlulon.Yltem fuilltlu to whlc.b rdvence I.. mad. in t.~. Description of Project Ind wlUeh are nqalred. hi thll opUdon of til.

ConsuJtSn, El1pnHl', to be acq,uired uf! conatructed by the 41lthorU:y OD or aftar the Com mudal Cpuatian Date of the but of the "Deration facillUu ot tla Projed. to b. com:pletlld in order to mHt the AuthoritTa fnvutmmt responlibilit.1 after.1.It:h Commudal Op~Uoa' Dat. In connection with uY'a,nem4lnt for an 'f:nwrnttcl trapmlalon system to which the Authority abO he a :pan,. in aeeordaru:e with thl provili'onl of Section 802 hereof. and CIT) worldur capital required by the Autharity durin, construction of the PrOJee;t and for the plac

.. Inl' of the 'Project In operation tor provfdJng Bulk Power~UJU"lY.F includinl' SuppJemantd.

Bulk: P9wer Suppl:r. to the PBrtidpaDt.

(t) "Prudent UtU!ty Practice" at II partfcular tlme shaU mun any of th. pra.ctSclS, methOds and IIIcta.:np,td In or a",proved by I Il,rnificant portion of the electric: utfHty In du.ttrT prior to IUch time, or IIny of thll practlca. l'(I.ethoda and acts which, In the uerci** of rUllonablejudrment 1I111,ht at the full bowll atth.

th. Clec.Won 'Was cauld bav.

~f1 UPKtId to &CcompUsh the tlufred result at the -lowat reDenabl. cost:

with rood businds pndfca. reUabUJt.1. u.fet:f and e.:1:pidltfon.. Prudent Util1t:r Pr..ctfce I, not Intendlld to be limited to the optfZl2um practIce, m"ethod ai' act to the uclWlicn of aU others.

but rathu ta be...pecb'um. of :pomble practicu, methods 01' acts laavinr due npri 101' manufaeturers' WUl'lUltfu and the rll!qldremllnbJ of I'Ovenuuental a,.ncies of caDlpetel:lt

JurisdIc:1:ioD. In evaluatl~1I' wheUiu' anY,ad ar propOial c:onfOrml to Pradent UtnltT Prac tiCI, the parlla.hall take into account the objectlY. to achIeve optiml1Ill utilization of the' Authoritr'1 ~urct!.

(u), "Supplement&! Bulk Power SaPP!1".hall mun, with rapeet to & Partidpant, tl!.&t portion of BuUe POWIr Supply required br ncb Participaut in txCl;SI at tbt.qpplltd 'from the Project and, unit!. otherwise 'provided, from aDT future projactl 0wD1d or cOlltroDII! bJ.

tb Authority frorn which the Participant coutracta with the* Authorilr to purchase ~tc:trlc power a:lui eBlrlY and iii excess of the I'uentfnt tlpaclt,- resun lernc.. trazumlaloa IG'~

vice. achtduled, 1mef,1DC)", or ICOnQmy' btlrcban,e arviCI, and.ucb other..me. auod&ttd.

....-ith the Pro! tel as.shall be sUpplied by the Authority in*accordance 'WitJa the Jrovbiou of Section SOa. harlOL (v) "Uncontrollable Farcu" DllaM uy cauae bqond tha control at the Author~t;r "hIch by the e."Cuclle.of dUI dl1{rel1ce th~ Authority Is unable to prevent or OVlrcOme, lnc1wilnr but not limited to, failure or nfusal of &DY other penon or entity to comp17 with tha u.iIt:blI' eontncta with tha Au~orilr or "With a FuUclpet. &11 act of God, tin. floOd, axploalon.

atrlb. ubcta&e, pestnence, aD. aet of the pabHc eDem)*,* dYiI and military authority fncladin.

court orders, lDlunctioDJ, and orders of tonrnmeDt&l l,ellCies ~th proper jUrU41~D, In smrectioD or riot, au act of the elamenb, f.llure of equipment, or InablUt,- of the Authority or &DY ColltrutOrs eDppllD work on the Project to obwn ot Ihlp materials or eqaipment blQDSI of th-died of ahnllar causes 'on aupp)fara or curlers, or InaliUtT of.tb AuthoritT to seU or Is,ae 1~ bondl or notu.

(w) "Uniform Syllem of Accl)unb" meau the Ullitorm System af Accounts for C1au A

,and :a Pabllc UtiUties and Llctnleea as prescribed and~ froID.time to time, as azuDded or modifled or sUbstit';ltiPIl therefor made lIy the Federal POWI. Commlulon or,its IUCClalOr*

.ARTICLE n CE.RTAIN OBIJGA7IONS OJ' THE AUTHORITY AND THE PARTICIPANT Section 20L *Bulk Power Supply.

~ Authority'shaU provide or caw. to be provided and the P~Tticlp~t Ihall tab from the Authority the Bulle Power. Supply of the P&rt1cfplnt. The Allthorit7....m be :r:IIIpOUl"b1e for plan.ninl'. nerotiatlDl', desil'1lirlir, fhwlI:lnr, &cqulrtJ1l' or const:r:uc:tIDJ'. eODtnctmr tor, admiDJlter~ operatinr, and maintainlni' all,enaratlon and transmiuiOli ar-r&ilWmcb

&ad facilities necllaary ~ etfec~ the deUvClY a!1d we of IUch Balk Power Supply to the Par*

tlcipant. provided, however, that the Partfdpant may procure IlterDate bulk po".. nwb' rllour1;l1 purslWlt to the terms of S.etfon 404, hereof.

j SecUo1120~ Annaal 's7ltliD :aucfl.e~.

The Authority mll prepare and sublDit to the ParticiJwlt an Anuual SYlt. Budret at IUlt nlDetr d&71 prior to the bar!nnlq of each Fower Supply Year. The PJrildput may theJl ItUbmJt to the Authority,. at any time antU IUc:h Dudret iI acloptlli.* aDf matters or I~_

I'utiona ztbtiq to the :Sud,lt whIch tile Partfdpant -ma)' care to present. The Antho~

shall thin proceed with the coM£deratron and adopU911 Olillch Bacirlt pot 1... thaD thhtr DOl' more tUn Corty.five daYI prior to the btlillmDl' of IUch Power Supply Year aDd a'ha1l caUie eopJu of luch a~pted 13l1dl'et to be deU'Ved to the Part1ciplLDt, praviiIK, however, the :Bad&'

et far. the first POW" Supply Yur wU be prepared, con.sidered, adopted and deUYe~id lD 6

e*

the moat practieable In&JlDer avallable In the ducretfoll. of the AuthoritT. Aa required from tUne to time durinr any Pow.tr Supply. Year after thfrty da1s notice to the Participant. the Authority mal' adopt ~ aDlel!dld Annual Sntem Ba4retfor and applIcable to such Year for the rtmab:ldar of ncb Year.

SecUoa: %03. Jt.portl.

The Alrlhcrlty will pttpare and issue tq the 'Puticiputa the foU~ nports *each month of thl Po.et Suppll' Year:

el} Fillandal and Opuatinr Statement rel.tin, to ille Projec~ and to the Supplemental BolkPaWerS~p1y, (2) Status 01 Annual System Budret, (3) Statut of construction bud,lt of the ProJed durill&' construction, (4) Analy. af operations relatinr ~ the Proled and to the Supplemental Bulk Power

~up~ly.

SectIon 20'. Ricard.! and AccounUl.

Thi A.uthority will k..p accurate rtcora. and acc:oanta of uch of the fac.il1tl.. comprlshar the 'Project aDd of the tnDUc:tiaDa relatlne to the Supplemental Balk POWtr Supply a. well as of the operations of the Authorit7 1n accordance* with thl Uniform System of Account..

Said &c:counta.hall be aubj.ct to an annuAl audit by & fIrm of indtlliDdant tutified public accounwts experiencld in electric utility iccountlnr and of lIadonal reputation to _

IIU~

mltte4 to the Authority within slxb" da,.. after the clost of &D1 Power SuPPl1 Yur..JJ.l btUadioes of the Authotlf.7 relatinr to the Project azul* to* tls. Suppltnlct&l Bulk POWIt SDPplf 1rith ruptct to uch Powu.Supply Y..r ahall be.ubject to.udl an audit.

~Uon 2Q5. COl\\SultlDE Enrilleer.

Ca) 'l'lle Autherlty win* retain & fOlllultlnr eqillHZ' to NlSt.to advUe &.lid make :rec:ODl m.ndatfon.t to th. Authority OD mattera relatiq to electric pO"V ItDuat\\:OD, tnumlllJoD, peWU I1IPJ1Iy, elad:rlc utruty opera Hens, rata ~d charru. feuibWtT and. bud,lts aDd ah&l1

~UH luch tcm.ultln~ Io,aineer to prepare within 01:1 hundred lDd tWcty daja followbl.. the

. clf)ll of u.ch Power SuppJT Year an aDDU" eompnhensJu arineuiq nIPOrt with rllJled ta the Prefect and, to the Supplemental Bulk Power SuPPI7 for the I~Uly precadln, Pcnrtr SuppltYur which shall contaJn... COp7 of the aMuAlawlt IlJld whkh IhaJl fnclad.:

(l) A report on the operation. of tht Autltorlt)-;

(2) A report OD the manartmlZlt at the *Project;.

(3) A nport on thllu:t!~cllII.q of rat.. &;ZId char,. for ~ca~

(4) A npo~ on requirements for future bulk power lupply; (5) RtcotmnendatiOllJ as to chanl'u In operation and. the maldDr oI npain. renew all. replaftlJlanb, utcisfozu, betterm~ntl &llc! Improyements; and

.(5) *A proSectIon of the AuthoritT.I cOlts of prorldlJlK the Bllllc Power SUPP17 to IoU Partidpanta for the mswnr fhe 71U' JlerIod.

(b) The Allthority.hall C&\\lIe & cOllY of laid crinetrinr reporl to be deUvand 112 each Participant..

.e SecUon 206.

Po~"r SlIPply Planninr.

. The ParlIclpant will ktep the Authoriq adYiled ou aU matters rtlatiur to the Partic1 pan~*' power supply lllaJULilil includinr but Dot Umited to Ioael foncuts, p~apoted tnDa misaloD ue!,eneration *additfons and DeW' deU.,.r)' points.

Sec~lo~.201. Dili,mu.

. The Participant willexlrcbe dilfrlDCe in the opera-tion of its electric I11teal with the view of IKunnr elfldlllcY i~ kelpinr'"With Prudlnt UtllltY Practice. wm COllltruct ita f&elU ths lD accorduce with specificatioDS at leut tqual to those pruuibed by thI Nat!ozW Elec tric Safety Code of *the U. S. Bureau of Standards, win maintain ita Un.. at aD tim. La &

lafl o-piratilll condit1oD, anel will 'operate dId Hno In aucb InIMU' II not tea bltedare un duly with the operaHons of othars. Tht PU'Hclpant wlll WI ellCtriC aen{ce tCllWly.from tlW three phuu IS nurlr II poWble and will maintain a power factor of 89.'", 'lapl' or IUch

&TUter Jlower factor.. may be arned upon by tht Pamdpant in the UI:'bt of Iny othlr c:o,n*

• tract betWeen the Authorit, and &n7 other party, ane! IUch alTeement bf the Participant shall not be unreuoDabl)- withheld.

Section ZOI. Accus.

Particlpant 1IiU ri"e aU neelun)' pemdulol1 to enable the arentS of the.A4thorlt:r *to.

C&rT)" out tllb Contract and will othenrlse b. aubject to appleable tanu &Del CClitUttoas let forth In tlIG.e tarlt!1 whIch affect the PartWpaut and which are rued with ~ lederal Pow er Commlulon. The Authority and the Parlfcipant each wiU lin tht other the rI(ht to mler

. the premill. of thl other at aU rusonabJ*.Hmn !qr the PW'PO'. of rlpa.lrfnr or remo'rinr tacmliu, I'cadinr meter. and plrformln&' work fncle!lntal to dellni;- alld receipt. of Bulk Power Supply.

SeeLion 20'. Adjuahnrnt a'.1!I1Wnr.

At the end ~f eacll Power SuPPl1" Year the Autbority shaU determlna If the aurqate

. amoLint paId by the Partlcipant *under Sections 307 aIId '03, hlnol, to,rom' recOYI%7 of all the Authority'. COlts durinl' luch Power SLipply Year 1fU in tl!e proper amotlD~ aDd, upon the makinr of luch dtterminat{on, aD)' amount found to have balD pald by the *Par tscipant in axtu. of~1 lrDount which lhoaId hau been paid. lIT the Participant IhaU be uecUt ad. OD the BilUnt' Statemlnta to ~ Particfpant for the I'lmalolnlf month or montha of the Power Supply Year nut sueceeeUDI' the Power SLipply Year for "hlcll ~h adIusblLlnt wu determlned to have been necul&ry. Ten ~Ult of the &mOunt of any deflc:luC1.lhal1 be added to each of the JlL'Ct tin lHUlol Statem-nts. In the nent that the failure a! a Partici pant to pit ibl.Entltletntnt Share of Annual Project Coat. in aCcordaDca with* ita Power Sala Contrad thaU hue raulted In the Ipplicatlon of amoQDb In anr ralrYl or worldq

• fUlld under thl Bond Ruolutlon to the p.rment of ~ta payable from,uch flSUYe Or work In, fund and the othll" l'artfc:Jpanu.han ha... made up the*tlefideZ1CY cruW bt.such appU catlon 01' pald addit!ouI amounb.lnto.uch ruun or workfnl fund, lUDoats tbtruft&r paid to the A uthorlty br lucn nonpa)'fn,l'arlic1plDt for applfeaUon to IUell past dUI paymenll ah&I1 be credited OD tha BiUlq StatlmlZlts of such other ParticIpant. in the next month or mODthe

a. shall b. appro.prl&tL Seeffon 2l0. Dilputed ltlanthly BWlnr*Sla1cment.

In cau &Itt parUOIl of any monthlY-BilllJll' Sbtement' recdyed by tha PartiCipant !rom the Authority, shall he In bona tide dispute, the Partfclpant shall pay the Author.itJ' the fun amou~t of such monthly Brufns-Statemt!1t, and, upon rJetumlD.aUon. at the concel amcIUDt, 8

the. diffumte behrem meb correct amount and such full amou:ot, It IIIDY. 1rill be credited to the Parlfcipant: 1:17 thI AI1t:hmity lfter such detcmill&tion. I.u the tveut: such monthb' BlllliIr 5t&t.e.mIlJ1t II In dispute,. the Authority will live I:oulduatloll to al.puta &lid 'Willlldvt**

tb.a Par~dpaD.t with r.,ud to the Authorit:fa pcafticm reIativl thereto withiD. thlzty daTI

!oUr.rwinS ~ttm J'lOtIf"lCILti01'l "., the Participant of.ua dflputi.

Sldic'll 211. &lured of PuUelpu\\", Payme.nu.

Tb" obUptlo'M of the PutidplILnt to th.

to the Authorltr under thb CODu.et shall constituu IDual obliratioWil of the Partidput: for tha PJ'lDmt of which the tWl faith qd credit r:4 the PUUdP81lt.haD bll mel til. IUD. hVllbr fs pledp!! to provide the tun41 required to aD obUratlons ulahl, Wi Ccmtnct. UllltillUCh payments or prow!fonsfer IU plymlnts ah.a.ll hav. bean maie from the r.~enu_ of the eledrlc.,.11 tem tli'i Pariidl)llIt or :from ather funds iharllof. the Participant wm. IUUll.laD." in llIel Iver1' :fl.a!,. !fam, tha term cf this Contrad fneluaa in its p!lllra1,'rl'fln.ue or appro

, pd.troD. l'l'lIUu.re, wbather or net 8117 othlr (taw! UII il:u:J1.1ded. IIJIU nfflc:!at to u.tllfy th.1 perm.nb required te be mIIIde in ueb b1 WI Contract u1!tll all,armenta required un der this Contn.ct ha,,"

pdd hi full.:

the eVllnt for any rtuaD all1 IUcb proYlaion. or appropriatien ia Dot made for a fiaca\\ yur of III. ParUdpant, tha the c:lUef f!seal omen of the Partidpant Ihall,ln ACCJ)rchiulce with the provll.ioDS of the Ad; ia effect &II of tha date of this Contract..at up u an appropriatien oa the ILCCounta of the PuUdpant hi ocb. flleal Jur the amounts required to pat the ebUlations called. for UM" thta Contnc.t. Thill ameunt of tha appropriation JDlUchfiaca1 yur to the obJiptSou,of thfJ Coatract shaD. be c$.lJe and.

p~yabJe I.1'Id ~U be ~1Id for thapunlua Df payiq and meetl11l the obUptionil previdd undU' the tum.II and cond.ltiou of t.h.Ii Omtn.et, and IUCn. app;opriat!cm ihaU une the 'samll

. l.pl datal ILl If the Pa..rt!dput bd b&cJuc!&<! tht amount of th. appropriation in Ib renllw revenue or approprfa~OIl lIlIUl.!l'L Stenon 21%.

~te ~t.

The Parifc:fpant wiU utahUIn. maIntaIn. IUId c:oUect rates mel WI'EIIS for elec1::rie lenica of Itl theinc: mttftllO IS to pro~da rUeDau JUtfldlint. to.retbu' witli anOabIe alee tde l)"St4Im ruC"u, to eua'We lb. Put!dpant,to pay to tha Authorib' all amcnmts -payabll rmder: thfl QI'II.trac;t and to pa1 a~ othu amounts lIay.ble from and aU lawful charl'u al'aln.$t or lJUlI on the rtIftDua of Ita ~c Q'ltem.

ARTICLE In ELECTRIC POWER AND ENERGY no~ 'l:"BB PltOJEC'T S.dlon'SOl. OWllmlafp ot PMied:

The Authority will 'aul the :Bonda tn from tsme to time under the Bond Buolv.

tiOD to fJAGCe eei ~bl1 12,", th. Projllct c:oulatfnr of the Authorlttl ownlnldp lntuut In tha rUllntiol1 ed tn1W11Juton f.. dUU. ducdbtd in the Dueriptiw of Pl"jeri attaCh&<!

to thr.

Del wlU caUl. to be eleli."ued to the. Parl:!dpant dl.lZ'l.rl.l' uc:h mouth of each PoWII.!:' Supply Yur it.. EZlt!tJamut Shut! of the.

ed'suvka of ucla tadllty of tbe Project fell' lb. nsdW W'e r:4 iW!h fadUt:t ef hoJII'Ct.

SICtiOI'1 302..,COlt.. of Gt!%lIndon &111.'.1 'I'ran.rmiuion. F.cnitfes Comp~ th. hoJac:t.

(., Thcselel1Uation aad tran.smf.ulo'll flll.dJIUu eomprblnl' the ProjKt w1lJ. for pU1"p(I4Iu I

of &ccoVllthl.r for the Aulhorlty'li ccsb ani! cbutl!ll to the ParticiP~~ts, be.urpuatd lnt9 (tl'

.IIXllU'&tioXl, UId,rttl&tld tr&llImw(oll fad.UHa. ad (ii) ttlLUlI:tiDI.oa ~em f~ti~j (b) The Aut1'/.Onty'I'costa of pnvidfn.. to'the Partkipanl:ll their ElltltJcnut ShIU'll ot renentioll ILM relatea tnn:smlulol'l' flldUtfu ILS ill inelwllli mthe Pnjac:t will 'be ac*

counted for II ducnW In Sc<:l.iOIl ~8 (b) henol. aDd te) The A~thority'lfcostl of PfOvidinl to the PutIciPIlll~ their EntitlemlllnUI'wu of lUcia m.namJ.m.oR S)'Item t.acl1itfes as ue m,dwlllf in the Project wm be accounted for II daaibed In Section 306(e) hueof. and wW be detumined ILl folloW'!:.

. (1) Such tnnsmiuion system f_mUd ~ ue Included In the ProJect wW biilll.cquired

, by the Allthodty from time to tlme!er the term of tlUs Conl.uct tmouah pllrttclpatlol1.

III an [a~p1r.tlld t'nnsqdMloIl iysLlm 8p'eemllnt,nth other I;ItUltiu. The Alltho,!ty'a I.nl1ut~ent l'IlpOaaibUlty In Ncb transmbslon. &yIteftl. tadlldu for aQ1'owel: Supply "leu will be that pere.nta&e of lhlll total invutment In the combrned m.nsmblion

~ facWUq of the Aut.hcdty and Nch other u.tI1Wes obt.dnilld by dMdln, the demand of total Bulk Power SIlPp).J ptoYided by the AuthOrity till 11.1 the hitil::ipantl durln,lIUcb Power Supply Yeu by the col'llbi!lld demand.. ot the Al.lthorlty and Nch other utWUIIIS duM, Nch Power: SupplJ Year and expl'Winr the ra!Jlt U I pucantap.

The Authority'. ruponaibWty for &'1\\1:11.1.11 apft&1 cost.. re1atbl.g to renewals. I:llpl&c:e mInts, repairs, I4dltfou, be ~rmenll and improYlmlll1t.t to 1I.a.d tor Ullnw operat1f11 cOlts of IUdl tuum_ion rystem facllitfu for lAY Power.Supply Yur wiU be the, ann.ual eapU:alend opera.tinl COllI!! inCW'red 1:Iy tn. A:llthority tor such facWtlu.

(2) In the event the Authmlty umm.u rapon.dbility tor tn.ruIl'Ilialon of the Partlcl*

pantil, allotmillts of SUA power JMllW'it to am.npments" tor,!,blds. pro-mlnn ill made in SlIctions 808 IU'IQ 104 herIOt. tIur Authority" wPoaalbWty for inmtmllni!.ft, and a'Qll!.W. capit&L and. operatfq COlts of, Nch trlIl'UmIsIlon Q'lt.m:'faciUttu &Cquked by thIII Authority from time to timIII tMol.lih putidpatJon In Al.ch Intapated tnoJ mi:uion lI)'$tI!lD ap'eement mar be Ina.ued. The Au.lhodty*s lnvutmenc reapoMfbility In. luch inaealld tnmtl:l.u.lon II)"stemfaeiUtlu for any Power Supply Ynr will be thaI:

peteenllll.p 'of the toW Invlltment iii the combined tn.nstiliaion faclUtIa of the Authority and such other utml:1u obtained by clMdl.nrtlui demand of such BElA power pllll the d.lma.nd ot total Bulk lawar Supply pro¥fded by the Authodty to aU the Partictpanu durinl ntc:h Power Supply Year 1:Iy the combined demands of the Authority arid.ud1 other uWltiu d.urln, such Power S~pply Yjtu IUld IlXPI'II.IIiIinJ the l.'I!sWt III a pECI!IlC.qlt. Thill Authority's1'tsponslbl.IUy for um.ua.l,cllpital cosb.t:e1atJq to tenewals, npl&cemlnb. repilln. ad.dltloM,* bettvmenb and lmpMWlmeftbl to and for Innua.i openti'1.11 COlts of wcb Inc:reuld. t:ran.nt.llJJlon ayitem fadlilia 1m IkDY Powtllr Supply Yeu wiIl'be th~ ~nuaI npitalllJ.ld. opltatlnr costs iru::ulrllld. b7 the Authority.

for mds. fadUtiu.

Section 303. Jntuconn<<Uon Arnulleml%l.Ls.

The Authori.tr will purchase or proTfde such I'lneratinr cllp&city rUe"e serv1ca,. trans...

miu[on umee. maIntenance service, emerpncl lIuflce, eCCMm.T intenhlJlr. Mnice and other Interehul1 umell uaot:iated with the Project III may 'be n<<au.rr for the nU.bl.e "tid KOnomlc:aI JU]'P17 of the output ud,lfIvlc:u of the Project and will cause to be del1yulild to the l'artldpant d.l2r:1DJ; nch month of tbe :Powlr Supp],y Yar U. Entitlement Shllnt of lIuch o¥f:Pl.1l and sVYfc:es. The Authority may lIIe ellc:t:rlc.nul)" from the l'ndec:t which. III aurplwa to the req,ulnmillb 01 t.Q Partlclpllnb" u.l.ldI lurpl111 mat be available mm tlma to time,

tot' the pl.l!:1lCIIIIII ot IIICOMm)" In~re.s.mee or otMr hrtudwl,**errie. wJth Othln.

and UI' net I:lIIIftl1l1. 1l'1Ce(ved. by the Authority for' any 1I.Ich. lIernces sb&D. bI cred!tec! to the Partfcipmtlil b7 th.~ Autborit)" fn ;proP4?rtfon to til. EntitlBlAt SlIll'H.

10

Sft&r:t IOL OpUaUOJllUU! MdnlulUlCIII.

'l'he Alltbority covtm..tlta and III.gTtU that it wru opu&te, m:dnl!afn and manala the PJ:(!.

ject or CaUSI tM,ami til bl operated, mainbined cd l.'I':IGapd. in an dl1clot and econom*

ted m.uw.er, ccmsl~nt with Prudent Ut1l1t.1 l'radiee.

SeetrCID. a05. lIII'U'.IJlC!III.

'l'he j,lItbority ahall :m:dnwn or UU.e to b. mai1:I't.ained.. in forei for tlUIL bendif:: of the pdq h**to, u thdr i>>terut shall apPtU'. II Colts of Acquisitio!1 lind CoOSU:l.'ldiOD or An*

flual PtofeCt C'mb. 1It1c.h imuranu with IUl*t to the l'roieet as ihaU N &'fllilabla a..n4 u it UsuaJlT carried b7' aWlt1u eoutrud;b.r and OJIulltinr,enultin.r !1Idllt1u but; In the ~I of nuclear Imeratinr !adHtlo, not lesa than will thJl requirements of F<<dlll:ral ael at&t.

law Ill&! the Nuclear RlI'llatory Commission replatiolll a.:d Itlch othu tUlln.nce lUI r.. un ally urried bT elubie utnitlu in cO.nfonnlt}" with l'rudmt Utmty Pnetiee..

Section SOli. Clw:r;t:i IIIl'Id Bminp.lor t.h. 17ojKt. '

ea) 'nIe A..uthorlty 'Win esb.blish fall' and nopdberimlnator,. ehules for an (lut,put and "mea pro'ridad by thl,A.uthority to the PartidPIDU re1atfnr' to uch, fadlity ot tlw Project dulped to rKOYer all of the AuthoritY. cOsta.Illocable to nd! facility cammandnl' with the.

Comm.lI:rdal Opua.Uon Date of such fAcility or tn. data to whIch fntarut bill been c&pitalllld on Bo~iIa allocable to such facUity. whichever II the u.rliu. u let. forth in the AlU'.I.ud S7Sbm Btldlltt, or the amended Almu.J System Budg.t adopted by thl Authority PIU'IUD.l1t to Section 202 hereof, and IUcA costs shaU Jncll.1d. ADnual PJ;Oject Costa.

.(1:1) ThI AllDU31 ProJed CO&u aDocable to thl pneratioll u4 nl&ted tnJwz.a5l1ioll fWl

!liu of the Pro311!ct sha.D. Includl at but the foUowml Items of cc:m. and txplUe:

(ll ".AnnuAl ProJ~t Gtnuatiou F1:ed Chulu.'* whlch fIl,a:I'.I.I ~

(A) the' lIItnOll11t which the Atlthorlty 18 rlIquirm undu the Boud RaOJ.'Irlion to gaT or depQ!llt into an,. tund or ICCOl.1llt utallUabed. b,. the BoDd BoIolutlll11 tor th, pa;rment of Debt Semee and any rlll.Hrl8 reqw.rement.s tor lIonds whIch an IUOCIlble to (I) thlllllne:at!OI1 and.relatlld trlL%Wl:lfsuon :t'ad.Ut!a of th. hojed IUI.Il (11) the wo.rldur capital Is required br the Authorl.t.f t-or prO'ridlDI BuIt Pow.

er SUJlIl1'. Illclad1%l1' SUPP!eDUIDtal 1Mk POWft" SllPpq to the Putrdpmb cd wh1dl JIB alloeabl" to thlllllneration and related trOlm!adon faciliUa of the PJ;Ojeet;.

(:8) the amoimt (not oth,ndu bxluded war any item. In this Section SOi(b>>

alloabla to thI "llIeration and re~abd tra.nsmiuioll l.dUUu of the Project which the Al.I.thodtr: is rellmrid unaer the Bond :Ruolutlon to pay' or dGoift !lonna Il.lch

,Po'lfU'St1PJll1 into an,. other tund or au::cowt *utabU.hed. 111 tlae.Bond Ruolu..

ticm. and sb.all1l:Lclllde,..",jthout liadt&tlon, any IUcA amounts t'lilquirlild t.o IIitJi;a up ID)" dlftcle.tlCY' In uy reliuvlII !1.I.00 or workil2l' fOlic! nquired or permitted b7 thi Bond Resolutfon n:su!tlnl from IlL ddaalt fa pa)'l:U1UtI by aAT Pa.rtidpaat or Par ticipants of amounts due under n. OJ:' their PDwir Sales Conuau::t.s with the Authorltr;

. (0) amounb which the Authority is raqllind IlluJer the proviaiOllll of the BOlId Resolution to payor deposit hdo a reeen8' for reD.wale anil rlllpJKlllml!.Du; CD) amoullb which must be reslked b,. the Authority for cover.,. of Debt Su-rice au may be requhed Bond Resolution;

'(E) amoQts which must be set uide the Authority for the rdlre:mmt from 11

III1!,nice. I!tc~15[Clrutl~. or dlsPoal of 'the,Ulultron fadUtfa of tM ProJect as "

ma.r be requfred by the Bond Rellolution:

(F). IImOUI1t1i1 which must be paId by the Authoril:7 fm: the purcbau of rllluato in. c:apacltr l"U1lln'U loT the Proltcl:; and (G) amountlil wblch must be pdd br the Authoriq for the purchase of tr~

.[on lIuvlee for the Project: and (2) "Other Annual ProjlCf; GenU&tiOl\\ Coats,'" which MUU:

(Al all coati of pr04udq am4 dellveriur electrie powu Ud eMra from tho Project and :provid(nr the Pariidputl' Enf:ltlrmut Sh&ralAdudtDr. 'but not llmitacl to, m' Fuel. COiti and otblllr ordJlI&l'1 operation II.l1d.l:II.IIintem.nce costs nr1 prorl~

alou for rlSen'es there:tor. admlnbtrath'e IIlZld pn.enl1:05Q., fmurlllJlel, o'hrhed lUll!

anr clI.a:r:u parable b7 the Authorll7 ill COJmtction with the output of the Project.

(il) net eClb of scheduled, emerrener. tcODOIDJ' or other inttE'Chanp senko meur.

red by the Authority In ccmnectlon with the Project. m.nd. (JU) aU open.tion aM mal..

tellllJ'lCe co~bI rl1a1:14to tho opn.Unr and condtlctiq of U. bUllA** of the Aathor~

tty lm:ludlD,f 5ala.rlU, feu for 1e.&1. Ullhaednr. aruI oth.-.8n"fcu and.n other lIIXpeJUu.prol'luJy.re1a.t.ed to the conl!uc:t of the &f!1Jn o,r the Authority; and (B) amounts nqulred of tlu! Authortty by the pro1'iatou of the B\\'lM it.olu tton to ",aY the' coat of or to pnvlda relllln'u for (1) utr~rdlnUJ' opentinr ad malntel1al1ee eOllt.l incluw. the COIm of scheduled. emurmc)'. or otMc-lDbll:'ChUlP Simet and the prevenUoa or correction of allY I.Inl1ll1&11011.1 or oa.m.afl! to keep the

.teneratillS' f"iIlU** of the Proj~ In SOO<l operlltins C01'lditton, or to prevd~ II. lou of l'eYel:lae thenfrom, (U) lU'1Y major reneWals. nplacu.tUIrl.ts.:rt!]'/&in. addltfoas. bet..

terments aDd im",rovlllmaDtJ l1i111'!a11ary. 11:1. the opmfol:l. of the C4ll1ultb. Enriuer. to kelp the I'IUUlIltlnr fadUtfu of the ProIed: In pod operaUnr c:caaltfon or to 'Pr~

vat a lou of revenllu therefrom qlf (Ui) qy major a,ddJUou. lmpronmenb. n pain or macUicatlolUl to any much PDen.tf1l1 facJlit)', or any dllK:omminioninp CIT dl5:pOlaill 01 anr such lenIratin. fadlit:r. required. by any,O'f'ernmlltltal allllRq' bv Iq lw:lldJctlon over the Project or fm: which the Authority shall be rl:lllpOMlbhiby virtue of &1:1.'1 oblirallon of thIII Authoclty nisin. out of U7 c:ontn.ct to which the Authority may be II. pari;jo reJatln, to o'!'f'1len'IUp of the hoiec:t or any f.cn!ty tb... e.

of to the atent that the Authoritr !!loot ndm1:ll.tnad *therefor trom the pl'ilC'eeds of iUIl11lllf1 or frpub for sud!. parmUlt are Dot ava.il&ble to tba Authority ~fttfcir ftom any tuna or aC:C:Quntil htabU.hed under the Bond ltuolutiol1, or Alndt tor fUch payment Ue not provided or, to be pr01l1ded by the isniancll of lLdditional Bcmds PlUluant ~o ArtIete V of thb Contract.

eel n:- Annual *Pro,ld' Coata &Ilocab1e to the tra13Smwlon IIJ'l!1tem faelllUIIII of the ProSst,shall Illclud.e II~ tud,the fcUowinr rtems of co.wtlil &!Id a:pulII:

(1) "~llaJ ProJKt Trausmiulon Fixed Chu,fS," which meum:

(A) the amount which the Authority is required undlilll' the Boad Resolution to pay ok'dllpClllit Into, any !und or ucout utabtlshed by tbe 80nd RHolutlon for the pa;rmrmt of Debt Service and any rllU'fe flqlllremenb for, Bondi which &1'111 alToc:a'ble to 0) the tnnamlAfoD 'yabm faciUtiu of the ProSect aud (U) tb. work.

In. apitAt which II nqUired hY' the AuthOrity for provldlal BuJJc Pon!: Supply. in cJl.IdIn, SupplllNJltal :Bulk Power Supply, to the Partlcfpanu and walch Is allocable

• to the tran.smlll[ou lIysbtlfl fadUU. of UtI Project.

12

(B) the amount. (not orilenrisl included Ullder any Item of this Section 80S (c>>)

aUocabll to the tranami..iOll 'Yltem ficilJUes of thl Project which the AuthoritY i.

reqwrad UDder the BClDd Resolution to payor depoaft duriJlr auch Power Suwly Year mto &DJ' other fund or account uW,lfJbed Dr the Bcmd RuclutfoD,and shall fncJud., wlthout lJDdtatiOD, any luch amovnta requJnd to mw lip &J17 4cfIdcCT in ID7 rtrMrVl flUId or worklnr fund rlquIred or permitted by the BOlld Resolutlol1 resultUl,:from a defa\\llt in payments by 1lI71'artldpctor Participuta ot amounts due aDder its or their Power Salu Contracta with thl AllthDrltri (C) the &lQOaDt wlUcli thl Authority b r~uired ullder the proTialoDS of the Bond ~olut:ion to pay or deposit Into a reserve for l'IlI~".ls an4 replacements; and (D) amounts which must be riaJlud br the AuthoriV for coveni'I of Debt SeniCI... m&y bl nq,uInd by thl! BODd RuoIDtlan; and (2) "Other Almu&1l'rojectTransmisaion Cosh," which means*:

(A) amounts {or ordinary opiraUoD and malnteJllIICe COIta, umhilitl'ative and I'enerat COlts, lnll1rlllce, overhead, anel any other charrn pa,able by the Authority in cODDlCtion with IUch tnnmuu[on '"tern.tacJ1ltia. Ulclucl1Jl. aU credib due to PartIclputs with raped.to eleUvery point transmission !acf1!tiel; and (B) amounts required. of the Authority by the pr*ovislonl of the Bond Ruolu tion to PI.l" llle costs of or to ~o"[dl reserves {or (I) utrlordlnuy operation and ll'Ia!nt.eJwlce cost,a. lnctudfnr the lIrevmt!on or torrectlon of..IIY UJiUJual loa or dam

... to kaep the transmJU[OIi ']'Itlm. flCl1itles of the Project in IGod aperatln, cou cUtion, ~r to prevmt. a lou of revenues thuwom. (Ul al11 =alor nne~, replac.*,

menu, repahs, additiotU, betterments and bnproveDlmu heclllllT, In the oplDlon of.

the CODWJtbI., Bnrlneer, to keep the tranamiufon s,..tem fadllties ot the Project.

In J'I)Od oplratbl. conditloll or to lItennt a loss 01 "'t.mlu thcrefroilland (ill) any major... eldltfou, ImprO'tementa. rep'irs* or modifications to uy IUch tranamiuion funit)' required b,. any 10vemmenlala,tI1cy hulnl jurisdiction o~u the Project or for which the AutborU:,.hall be respoDSfble by virtue of Ul1 obUp.tioD of the Au.

thotf~ aridnl out of any CODtract to which the Authority mar. be

• party rel&t1nr to ownershJp of the ProjlCt or IJIY facllJtr thettof to the L'Ctalt that the Authority I. not r-almbursed therefor frolll the proceeds at JDlUrancl or tunds lor.

• uch P&7 mct are Jlot AnUable to the Authorltr thUefor from an,. funda or ACCoUJits.st.,!>

Jiahed ulldll' the ;Bond Raolution, or fllnds for IUch p~.nt are not provided by the uauance ot acldltlonal Bonda pUrlU"lnt to Article V of t~ COIItrut.

(d) Th~ Authority shall bill the l'artrclpant each month durin, cich Po......r Supply Year bT prmdlD, the l'artfclpant with & BlUIng Statement fcir '.lIch month In accordance with the ch.ulU estabUshld ParsuaDt to the provblona at thb Sectlon806. Such !fm~ Statemmt shall ut; forth. amon, otller thIn.., the awn to be paid for Illch month by the Puth:ipant for its Entitlemmt Shu. of the Project output IDd.uviees, and IUch sam sJW1 equal the l'uUdput'1 E.1ItftJlIDar~ ~e of that amount of Annual Project Costa, u utfmattd In the theD current.Annual S,..teaa Budpt, whIch the A.utlJ.orit)' II nqwrtd P~U&Dt to the Bond.

JluoJUtioD to accrue. payor set aaide durfJlI each month*. Such mDnthl, JlflliDr* Stat..-ntnt

. ahaU ~dud. a credit {or IUch deli'ttr1' pOiut tranimJulon faclUtSu u an owned, finlllt:ld, or operated by the ParUclpant. and such BilUna StaltlJllnt aball be pJ.fd by the Part1ciput on or Wort.the tenth d.y!t'Dm the date of lueh bill. AmountA due aDd IIOt paid by the Par tWpaDt OD or Wore.aIel da)' Ihall bur an addJtlonal charre of onl ud ona*half percellt par month u.utll the &mount dut 15 paId in full *.At the end of each Pe~er Supply Year,* adjust mtrlb of bmlnl'.han be mad. fn accord.nu with SectIon 209 hereof. U the PartIcipant pays l3

1esa thaD tu full amount due with uspect to a Billinl' Statement, th, partfal pa1!Ullt ao re ceived,hall be apPUld fint In dbcharle of the Partidpant's obllpticm to parib EIlUtlemmt Shar. cd Ul. AnDualProJtd Co.... provided In tb1s Article mblfon 1llJ' f1m4I!ram aueb partial pl.ymtnt art appUed to. ~e dlJchult of the PartfcipaJlt;'a ob~atlou IDldez: the pro-YlsiODS. of Arlicle rv henot.

,.).At "such tim..,.. th~ Authority UIDes additional Bondi lD acc:ordance with the pro yisions of.Article V, hUIOf, the Authorit:7 will mttKltlucl1elemlnb of,Aml1w Project: eMU as are necuI&r7 and tl\\a Participant.. hall par "itl Entitlement Share of such inc:ru.secl charps p~nu&llt to the provisfoaa o:f Section 807 hertel.

SecUOQ 8D7. Projcd Entitlement and Payment Obantlons.

. Ca) The ParticiPallt shall be entitled to rtc:e1n its Entltlemmt Sh&re at the'output ed tran5nli!slon lerrlcu of the Profect aDd of &U* IUTica pro'fid.d 'b7 th. Autharitr In ao cordance with the proviaiona of Section 308 hueof, as DlJ.7 be..alIable for th. uaeful li!.

of the Project.

(b) The Partfetpant lhall pa7 Us Eutftletnent Share of Annual Project Costa Nt torlh In the monthl,. BOliDa' Stat.mme. lubmitted br the Authority to the Put1dpaut In aecorcl anet: with th. proyfslora of Stc:tfon 306 bereof, wheth.r or not the ProjlCt or IJI1' put ther..

of has been completed, !s opcratin~ or optiabI. or its output iI saspeDded, In~ptad, in terfered with, reduced or curtaQad or termInated In whol. Dr fa part, aDi IUch p&1JllA1lb

,hall not be lu~Jec:tt() reductIon whether by offset Dr othlnd... and sball not be COJu!it1ou*

.&1 UPOJl the performance or nODperf"orl'tl.lDce by ~DY partJ 01 an7 arreau.t for --.nT cause wbu~."

SectlDll 308. D.lennl.,.,Uon of Parttc:lpanl-. EnUtlement ShutS ot TraDullsaloll SJ'riem F....

dUtieS ~cluaed In.tho ProjeeL Ca) With ruped to t~nslDi.uicil1 sYltem fac:1llUes illcluded In the Project, the Entitle ment Share for.ach Participant to be determined by the Authorit;r for each POWer "Sappl7 Year.hall be the p.t~lDtq**Ioeabl. tc. the PartldpaDt of the tnnImJ..lon IUTlca proYided by the AutharitT and of the coats lnc:uned bJ' th~ Authority n1a~to such tr&lllDlbilol1 ~

tim. taclliU.... art acqulrld by the AuthorltT from timt tG tim. for the term o:t WI Contract throu,.h p&rtfdpaUon "In an inlerratal tratumJsalon ayrtem Irn.ment with other I1tilltfU.

Such perc:enta~ Ih&ll be d.termiJled by thl Authorlty br dividJD6 th_ an,..,.. of the ~ur illtqr.ted coinc:lcieut lyatem c!ezunds for "Bulle Power SUllplr prOTiclad 117"the Authorltr to luch Partfdpant durlnl tAch month ot Iuch Power SuPPJr Y.ar br the averaI' of th. 0118 hoW' jnttaTat~.coiDcident l7Item dem&Dds 01 total BuDc Power Suppb' pronrle{ by the Au thorit;r"to all of th. Parttdp~ts darln", I&!=h month of such PDTfV Suppl"yur &DC! apressiq the relult at a percenb,.. 80 that, "hln all of 11Ic:h Entitlement Sbua 10 cODlP\\1tC ~ the Authority are added torethC!l", their IUDl.hall be 0111 hundred. For the PllrpoHi of IUch com-.

putalion; the oUlo-hour interval.haD be t~ hour dlU"iDi which there ~ accvz: the DWdmIUl1 one-hour illttlraUd colnddent Q'.tem demands of tab.] 'Bulk Power Supplr prodded b7 the Authority to all o! the P&rtlclpanb..

{b) L:.. the eTeDt th. Autllority auuma nsponnbUlty for tran.ml1ssfoD of the l'artlc:l pants' allotments of SEPA power punuaut to arrIDllmenta.for which pf09bloa Ia made in Sectfou 80~ aucl 804 harlof, and.ach rupoD.IIlbru~ ruulta lD aD lDc:reu. In thl 1nvtstmeut In aad aIUlIJIl*operatln,. costs of 'Dch traDltnluiOQ S71tam tlc11itiu, the ElltftltDleDt Shan tor each Parlicip~t to be d.t,rDUned br ~.AuthorltT tor tach Power SUPJl17 Year IlWl be the p.reent&J't allocable to the Patticlpant ot the tranamfuiOJ1.semea proYlrled b7 the Au.

14

thont.r awl of the ~y ~ed 'by the Authority relatinr to lach ~enu.d ruponillW!tr.

Sl.'Icn pcceb,e "l~ 'be dlttnmned by the Authority hT dIvfdbl( l-he avua" of the Onll-JulIll' Intlif&t.t co{nddeut IIPWD demands at such SE.PA power J.llus the dlll:!TJADib of.Bulk Power Supply provid~ by tbe Authority to stich PirtSc:Spa.at chllinl pm month'of such Po~er Sup ply Yp1" l71 the avua,. one-hour intlll(nted I!I)lDc:ldent.J'Wa demaDib of SEpA power and lIematub of,total Balk Pow,r Supply provided b.J the Authority to aU of the Pertidl1anta durinr tu l&mlll oDe-homo interval of w:h mODtb of 1I1:1dl.Powu Sapply Year and u:prll!llDa' the :nt

'.Wt II a puctmtare 10 that, whm &ll of 81.1cb Entltlemillilt Sharn ao COlDpubid 'by the Authority ue a4ded tordber, their 113m wll be oue hundred. For the parposu of'luds. coi:nputatlcm.. the onll-hOl1f intuvallbaJl be the bour durin&: which there shall occw: the m'Jtil:.aum one-how tnt...

Il'&ua c:ofl'1ddmt mUm de:m.&nd. of 8EPA poWer and demmds at taW Bulk Powa: SU'PPly provided by the Authority to III ot th. PuUdpanb.

eel Sach Entitlement Shares of traJlll1l.'lJQton syltm:! t..dllties included in the P;rojild ahaD hi utfmated by the Autbprity priO'f' to the berfmUlli at my.Power SuppI, 1'_r and such utimatu'shaD hi..t forill fn the Annual SllteDi Budllt. Rni.iol'll o( auds. utlmatad ElltitlllDlmt SAara shaD be made by the Authorlt,' at the eud of Judi PoWer SIIPP17 Year bued upon IUch Q'ltem dmands &II actuau,. experteDeed and. the1illiinp for, such.POWU' Sup llIy 1'ar tball be adlu.dad by the Authority "conUns)y.

SectiQn 809. Pledr. 0/, Paymenu. '

. AU 'Pa)1.l1Pts required to 'be made 'by the Putidpmt pursuant tQ the pro..-lilions c.f this Article IU, and aU other paymallu attrfbubbla to the Project CI.l' to the Ana\\1l.1 Project Costs to be m&de In aeco.rd&nee with. Qr pursuant to 11'17 other provialon Qf thb ContrlU:t, sbU 'be 111ed.. ed to lIIec:11ft the PI7?D.ant of the A\\lthorlt.1's BODd.L StctJon 310. Pa)"1I:Ient q OpU'allilr Exp.nll*

. So lonr &I elKt:tic power aDd IlDUQ sbll adually be nc:eivtd by a P~dpm from any

t'adll.ty or !&dUties cd tha PrQ1ect, 'the Part!dpant'l EmJtltmmt Sba:e of Am!.ul boled Costa.dian be pald 'by thlll P&rtldpmt u a eoa' ot p!l.ll:hued dKb:ie power and. eDVIrt for Parlidpant"s electric a:rstem &.Del ~ a:n upenall of operatSOJ:I I" mliDtlnanc. thll'ltof *.

Siction all. CzecUl.II to Annuu Project CoiL The Authority may. punuant to til. Sehldule of ElltUJPIWlt Shu"a and ptUt!dpation m.

an'hrtqra~ traJLm'l~.ufon lyatcn arramqt with otliers. tor which proyfaloll is,m.a.dAlln 8<<

lion SOICe), hereof, liD the output and lIuneu uf fac.Ultiu included In the Project to othu utlUtlu. :rht anUdpattd procetds from Inch eala lIhall be aHmated !n the Annual S)'Stem Budl1t. aDd arq net r....e111.10 actually ncelv,d by thI AtI~rity &:II thlll ruult at Rm ules to othu-uUUtSlI lurins ~ mO'ilth of thll POWit' SupplT Tux shan be ered1ted to the Potld pmbi in proportion to thefr Entlt.llll:mat Sturu in tbe monthly lUmnl' Statement for the foUowlnir JDo.nt.h.

Sec:tlcm 312. Sal. or Exc:eu PuUdpa.nt's ElIlUUeMlllnt Shari.

In.;he ev.nt the Participant shan dlltmnfDe that all O'f' Iny put of the ParlJdpanfll

. EDt!tIement Share of the output lILnd Iwvh:u of the,lneraliDs !aeiUtiu of the. Proiact &rill In fXCUil of the requh:mulDtI! of the Participant, thl.AuthorltT may, leU mel transfer tor I&ny puled ~ time aJ1 or any par~ of lum L'CI:U!I output and aan:Icu to lueb othu-Partldpanb

u. shall aJfl'H to take IUch ucess output and ulI.'vlcu. prcrrided.* hOWllver, that in the event the other P~rlfdpllnbl do not allrRe to take the entire amouDt of auch e.u:ue,. the Authorit;,.

15

shall ha.Te the. r!rht to dispose Ct IUch u;cus to othel' Qu1iHes. If all or aU" portiClli,ot IUd!.

uceU of the Parijdpallt'll Entitlement Shue of output and lurices Is IOld pmluut to W&

,section. the Particfput's Entitlement Share wll not 'be nUuced.

the Participant &han remain liable to tM Authcirity to pay the full amount r4 Its B1Ilf.Dr Statcunt AI if 1Iuc:b..ale had not beeu mad.; except that lU~h UabfUt,. IIhllli 'be dllllwr,H to t'h, ~t that the Authori ty lull ned",e payment for Bach tx.c1lU outpat and services mID the parc:hau or pl.u:chuerll thereof.

ARTICLE IV SUPPLEJ4EN'l'AL BULl: POWER SUPPLY ARRANGEMEN':l'S Sedf.on 401. Supple:m.entaI Bulk PO"lftr Supply fronded *11, U. AuthorItr.

The Authority 1rill provide or cause to 'be provided to ~III Participant ita Sappl~.lltal

Bulk Power 5a.pply duriDI uch month of u.ch Power Supply lu.r. Such Supplemental Bulk Power S.upply may Include, but llban not be"1Jmitild to, putfal aM :fuU nqmx:emenb fh-m power purcwa, AlIef unIt p01n!t' aamc:e, firm aDd noD1irlll capacity ucl eJ!er17 ae.rnce, transmluiou.emc. ud otbr Interc:h.a."'tI umel made a,at1s.bl, u a rault of tr~"

Horus wUh other utilitiu. The COIIIb to the Authorll:.r of e1ect.rlc power IIJ2.Ii Il1UI7 purchallld by tlill Al.ltbori17 from oUler utUitia 'build UPOD britts rued 'by lIuch oth.u utWtia 'With the Federal Power Commlulon win bill directly rtflec:ted Il1 the montblf Bl'I.Iiq Statement to the

.* Parlldpant. Sl1c&' monthly BlUlq St&temet will il.lc:ludll.. aedit for Reh llel{vU7' pO{D't:

t::raJ.umlss[ol:l faciliUM as are.owned, firwu:.~. or operated b, the Pa.rlfdpant.

Section* 4102. Charl'ea for SupplmuID.!.al BulJc Power Supply..

• (I.) The Authority wiU IStabUllh 1air and nand.ixrimiutory char.. for &1l ""leu provided by the Authorl17 to the P.:dldpant5 reJaUl'lI' to the Supplemental Bulk :Power Sup..

ply of the Partrdpmb claImed to recover a.ll ot the AuthorItY! costs ot aeq,minr. finlJ1dnr.

operatinr &1Id malnt&inJns&l.Ic.h SUPllem@t:ltal Bulk PO'MIr Sa.ppty u such coati ana.eUorh In tIi. Annual S,..tlm Bud..et 01' an1 ammded Alallual S)'IIt.em Dudpt adopted br the Au thority pl.lnuant to Section 202 llveed'. ad sueh costa shall inclUde Annual SIIPP'lemmbl Coab u defiMd in Section 101 (e), henof; md (b, The Authority.shall but the PntScipant each month duriq each Power Sllpply Yur by providinr the Putfdpant "Nil!!. II. BilUnr Statenumt &CCordilll to the chUI. tsrtabUahed punuant to the prCl!llIIoDa of *W. Section 402" tor the lIervica auppUed to the Pa.ri1cfplJ1t bJ" tnll Authority AI Ht fortb in 8ectipn 408 'hereof, ' and for the costs incurred by the Aflthcn:itJ' as Nt. forth in tbla StetSon 402. and IUth bllllha.n be paid by the Pllrtidpa.l.'lt on or Wore the teDtb day Irom theGlltAt thereof. Amounb dUlLaltd nol: :paId by the Parlfelpant on or before sald dal' 8haD bur &11 additiollal eh&r... of one and owt.ht.lf 1;m'Ceo.t per month Wltn the amount dUll ls paid In tLlrt. At the end of each Power Supply Yu.r. adjustmellbi of bilUnp.'IIh&U be mllde in accordance 1Yflb the pt:o'fbions f1l. Slctiol'l 209 hereof.

Section 403. Supplemelltal Bulk Power Supply Ta.kcn by the. Pu1ldpnt:

'l'he Parlidp&ni: WU take all of Svppllraentsl Bulk Power Supp1;r from the Author1tJ:

IJ1d ahlll! pay to the Authority the Parlldpllllt'1II Proportionate ahue of A.nllual5upplti'l'lmW Coats.Nt forth ~ the l.II.OftW,. DilHns Sl:&tmsent: submlt:ted by.the Authority to the PutW pm~.

1&

e*

BeetleD 4.0.. Altml.llt. Supplemenbl :Bulk Power Supply Resourcu.

I! the PuUdpq.t lialr. to pr<<un an alternate IOUrte of supplemtntal bulk power sup...

ply other thin thlt ;provided by the Authority, the P&rlfdpll'lt 121&1 do 10 UlIdu thlll folloWI tenu and c

ondltf~:

(a) In DO tVent 1riU the Participant's Shut of the Pr!ljlid be reduced. and.

the Partlc:lpUt 'W'ij] conf:(nue to lie obUI&"ted, to P&Y Its EJltitlUl1lnt. Share cd Almulll Praject*

~*;.'

(b) The ParlkIpnt will enter into an b:!.terccMlCtion &pument with the AuthoritT Jor lUanu, tlDUIZ'lenq. economy. sd:lll11tuled. and other inbu:chlmp 11In'iee, Uw tuma awi condl tlons of wmeh 'IriD 'bl.im!lar to thOle conb.fned In lllUrconneeUon ufUlemmb between tha Authorlt.y a.n4 o~.rull.

(e) The P.uticlpantwiJlli'l7e notice to the Authority of its intention to procure auc:h alte.rD&.te 1I0ure. wbJch will "lie** the Authority from Itl obllptloll to prmde lIerriee equiv alent to lI\\1ch altun&te SOllrCL Sueh notice win be at l..... t the toDnrillr:.

(1) Two 'fun if ncb aUlInlate 1I0L'll'CI equals 20" or las of Participant'. total puk dttlDJlL.l1d l~ SEPA pown ull Partfdpa.nt'l En"tltmmt Share of thal output and semel!!

of the IIlW"&f:(DI' flll.A:.iJitiu of the Project; (2) Three,.un if such altuu*.. IOUrcu Iquals 'IIl0" than 20,. bqt not mater than SO~ of ParlIdPII.nt'1il total peak dirrwut lUll SEP"\\' PO'YU and ]!,uf:(dpant'. Entitlerneat Shue of the ~\\1tput and.ser..1c. of the leneraim, tacDities-included In thl P.rcledi (3) Fi9t Jun if IUch aJttruateaolUC8 equals more thau 80" but not rruter tha:a

~" of PartSdpa~i's t,.,fal pull: dUllud Jen SEPA power and Putielpmt'i EnUtIement Shue of the output.and sUYicu of the 1'1.JW'atiq t!idlitfa of t:hl rrojld; (4.) Swm,.Iara if lIuch IltUl1&te lIoure. Iql.'la1s mort tb.IA 40" b\\Jt!lot p'utU' tho.

10'; of Pu1fdpmt's tobl peak d.emand leu SEPA powu and l'Arlieipll'1t's E~tUlement' Sllare a! the ~utput. alld sU'Vicq of the' leDU'atiq !&dillies oUbe P:roject.

(5) Nine :rurll jf nch ait.1.nata SOurCI equals more than fiO" of Parf:(clpant'a total peak de:matMi lltlll SEPA POWIt ud Participant's Entltlefl'&eilt Share ot th. outpnt W se:nicu of the reneratin, facllitlu of that Project; Pro'rided, hOWl'II'tr, th&t the A~thodt:y aDd the Partfdpant m..,. mutuall1.It" to a DOtiC.

shorlu t:blm dT of thDH pro'ridllld.a'bave if no burden or cOlt would be !mpOled U'pOD the Allthorlt:1 u the ruult of IIlch.mortar notice..

SecUon 40S. IniercoMedfol'1 MrIUI'Ut:le.nil*.

The.Autharit;v.&Dd ~~ Puticipant ma,. mutuaU,. alt** tQ ent".Into InMO'I1nectfoll aI' rani_tnt.. for tllle".. amerrenq. tconol'll7~ Icheduled ~d other i;ntUchanp lIurice for

,lUluatioD and tran&:nfSlion f&dUtIes ownea 'by the PuUc[pazst on the ttfectiq ute of w..

ConbUt, the tenu and coruUtiOlUl of wh.!ch u:ru,uumt.l WD !lot be ~t with *th, provWolUI of this Ccnulll.A:t.

ARTICLE V ADDITIONAL.:sONDS S<<-cUOli 501. lavlUlce of AddJUo:nal :sondl.

(a) A.~dltlonaJ Bonelli may be 10111 and ilsuld by the Authority in Ill.A:coriwlII with the prO".isiom of the BOM Rellclutlcl!l a.t a!1J' thlle and fram. time to time in the n'.8Qt, tor U1 1'1

,e reu=. the procH<is derl... ed frora'the,ale of the Bond. flrlt nliaated pursaant to the pr~,

visIODS of the A.ct wi of W, CoDt:act ahalI be iNuffte1ent for the purpOle of complltfna the hlitfa1 faeiUties 01 the Project 04 placiq I&ch ficility thereof in Commardal Operation In cladiq the I:ompl.t{oll of thOle tranmUui01ll1ltam fadlltiu to be acquired uul eODitruetad by the AatboritT prior to the Commercial Operation Dd. of the last of the IUl4fltf~I"tacW tics ot the ProJect to be CQmpJ.ted lD order to me.t the Authority's b~TestmeDt rllpODlfbWtr

,durbr such period Ln colUlect,ion with IJl1' acreemot for Il1lntqrated tr.nsml"ica syltem to

~ch the Autboritr mar be.. p.rtr in &ecord..nc. with the pro'ltsloDl of 1IICtioll 802 hertof; (b) Ad4Jtloual Bonda inay be sold uclluQecl by the Authority'ln accordaau 'With tlle pro viIIo" of the Bane! allobstloll.. t IJlf time IlId from time to tfma hl the:"'Ill fUDcill an r...

quald. to pay the cott of (I) Ul1 lllaSor nnewala, r.pluUZltnt'l, repairs, &d41t1oas. b.tter menta, or hnprOYe.mlll1b, to the Projtd nlCUl&r1. ia. the oplnlOD. of the CouWtiq ED.Iinter, to keeP the Projee~ tD looct open~J1r condition or tq pnTlnt & loa of raTIDUII th~rom.

(U) Iny major addltfou, impfOVmWltl, repair.. or lDOdlfle&tlou to the P.rolect:. or aJl7 de cammlsaiolSlllp or dlIpoaah ot the Project, reqtllred by any,oyunmeDtal areDC1' h.. vll1l jll1'Wiction ofel' till Project: ar far which the Authority sball be nsponslble.'by Yirtu. of any obUptlon of the Authority arlaill, out of uy coatract to whkh the Autborltr IDAr" & party rtlatinr to owull'lh{p of the Project or &Dy tacWty thtrtof, or (iil) nload btl for nch pnlr aHoll facWty of the Project LA an, Power Supply Year to the ~'At that ~cient fu~ ue not "nllable tu aDY r.'l"'fet utabUahtd by the Authority far Fuel Cotta i llroriW however, that DO such.ddltlonal Bondi 1UrlM IQUld for tlIe SlllrPoal of addlnr.daU1oul.eneratinJ lJZI1ti to Uw Project.

(c) At IUch time as fUllds mar be r~uired to provide funds in CA:6U of those provid.d

!tom the "Ie of thelloDlb fir.t valIdated parsuQtto the Act and this Contra.ct to Jnllt the Authority's fnvatmeDt rapGll.IIlbWo-in amn.e&1l with tl1. a,r.etlDeDt to whlch the Authori ty IMY.,... put)' proyfdtnr for an fnt.elfatad tnDsml.loll."tam, hs accordace with the preriJlcnw of Section 802, htrtot, the Authorib' ma7 provide sl1ch funds &I ma.y be Decua&l'7 therefor by the illUDe. of add~tlOIl&l Bonda.

(d) NlT such additional BOllets.hall be.ecund by assizn,mea.t of the P&1D1tDts to be made br the Partlclpants purluant to the ilrcmsloU of Article m ot the POWIl' Sales Con buts, IDcludlDI,.,'Zunta required to 'be made unli., Artfele III of this Contract:. and..U oth Ir pI)'lDmta attribl£t.a'ble to the Project or to the AnDualProject Coati to be DWle In &ccord

.nce with or punuant to 'any otherpro.. WoD ot* W, Contra.ct, and. lach other Power Sales CoauKb. uluch paYJQlDta may be Incnutld &Del extandtcl by r'.1OJl af the luunce of.ach a.cfditiOl1a1 Bondi, anel such addJtloaal BOD",may be luue4 In amounu.lIffJcfmt to paT the full ~Wlt ol.uch C05ts &lid luffldent to provid.,.uch raerY... as may be nuoD&blT de-'

terndDac! b7 the Authority to he desirabl.. ADY Iw:n additIonal Bonch Lulled in accorduee with the prorisiOnl of ~h!. Secthm 501 anc! secured by u.sfrnmmt of p&ynlcnta to be In&de in a~eordlJ1<< with the pro1iaioDI of this Sec:t1aa. may rauk parl passu as to thit aec:url~ &1- "

forded by the proyt,laDi ot,thla Contrac:t and of aU other Power Sala CoDtractl h.tw.en the Authority ud the Partldpanta rel.~ ta the Project And to the luualK:e of Bonda tb.refor

-with all BODcIa th..eto!or. [uued PUl'Illut to and lecureel In accordance with the proYi.lo~

c! thb Contract.

S.cH01l 502.

lu~UCI of Relundlnw Bonds.

In the n'.nt the Annual. Project COita to the PartIcipant. of.ketrie power and tntl8)' from the Project mq be reduced bT the utllnciil1J of anT of the Bonds then outltandlq or 1" the evmt It -;U otJ:.I.~. be advanta,eous, In the opInIon ot the Authorlty, to refund any Bocdl, the Authonty, may lAUe &n.d IIU retundla, Bond. &0 be secured l:Iy Ulfrnment ot the paymentl 18

to be made by the Putidp&ntl purl'Uint to the provisions of Article mof the Power Sales Contncu. mcludlnl payml!lld.lll tequheel to be made uruiu Article III of th1I Contract. and all othu payments attrlbutabJII to the Project or to the AJ:.mWll !'rojed ~ to b. made In accar dmC81 with or p~t to eny other pJOvU{on of this Contract cd ruch oUsu POWft' Salu Contnct.lll. JUly such l'efuncUnlllonds lwed in al;terdance with the pnl'ridollJl of thts Sectlon and.

HCUl"td. by u:ri(rl,raent ~f.NCb paYl4ent; ma,. rut put pamlll.'ll to the SlC'lUitfy lIf.fordid by the PrOridOnl of thJs Contract md of III other Pow. Salu Contradl betwlm the Authority and the Puticlpantll nl&tinr to the Profect cd to the iaumct of Bonda thmfot with all bol'JCb thereto feA luued pwiuant to a..ncI Rcured In accordance, with the proYbiom of this Cont:ll:t.

SeeUan 50!.. AdjlisUntllt of Almtlal' Project. Caltl.

In the nmt the procuU derIved :frcl'l1 the sale of all,J' Bonds lMued purJuAllt to the pro mions ot this contract, the lIayme.llt at which la ucllI'ed by' uslpmeDt of pa'1l1lmu made PUl1ll.lant to tha provisiolUl o~ WJ Contract and of.n other PoWtt Salu Cont:ru:tlll bttwem the Authority.and the Parii¢paDQ rdatJnr to the ProjllCt ael to the [auanu of Bonda tl1e.re for, Ul:ttld the qll'epie amOlll'lt rlllq.l.IInd for the pl.lrpCla for which.nIQ BondI w"" t..

"Il.ud. ~I...mOUDt. of a'l1Ch cc.. IIhaJJ be IlMd to nuke up an,. de.fidenc:,. ~tn ~ in 1Ill7 fund or KCOunt under the Bond :Resolution in tP.e llWIIIU therein provided, and an:v baJuce shaD be 11114 to r.tJ1'II. bY.llurd:!ue or c:all anc! rtdtmptioc,Bow in &dvuu:e of

matI:trity. and,in.lIIueh nent tn.. Authority 'frill reduce such elllWl1'1bi1 Elf Annual ProJect Costll as U'a nKeuU':v and appropriate to tetilld auc:h accelerated retUtmel\\t.

.AR'IlCLE VI DEFAULT Sed.IDft. 601.

E"\\II~t of Default.

Fl!lUl'uf tM llU1.ldpllllt to make to the A uUwritr Im7 of* th. pqmGts for whfeh pro vWon !.III.made $D. Ws Contract.i1u.U c:oilstitut, IlL def&ult on the part of the l&riidpant.

&td.iDil 102. CcnUaumr ObJ,&UoD, Ri,hl.to DlsconUnue SUTlcll*.

In the evmt of UI1llUeh dlfanlt. the Putldpal:lt.hall DOt. be relined of Ita lIt.bU!t;r for paymIDt of tht &mouuf:l in aefault, UI.d the Authority.w.hall bI.". the rirht ta recover frcm the Partrdp&1'1t Ill,.. lUUotmt in d~awt. In eaion:em.ent at. 1m,. neb. right Ill' J'ICOVIiZ']". the Au.

may brilll' al:i1 suit, adiem. or FoeHdln, In Ja" or in equity, l:aclud.lq UUIJIdamu' u:u1 adfon lIped.flc perf'ona&E8 lUI J:Il&1' he nKIIUIlI.r1' or appropriattl ta _orclll &nJ' coTmaat, agrument or obJJl'ltioD ta mU:1I any parmmt tor which pro'lisfoa II mau mWI Contract llpinst tlla PI.rlfelpant, &Dd. thlll.Authority may. '11'011 IIb:tJ d&711 wrlttu lllltice to the PIIU' tldpllU'lt, CIIQII and dlllC:ontiuue pro'rldInl' all or auy portion of the PartIdpaaflll Bulk Powu Supply.

SectIon 603. Le'¥7 of Tax for Payment.

. In the eYlllt of lIuch cJd'lLlllt by the Putiefput, the Participant Jhlll provide. far the

~Ullmel1t and,cOn.cUOD of an annual tax stdfldmt m amount to ~e :fna rumUan,. to male. aU PA7DlIllU due under the proriJdOH of thla CoutrN:t in Ul:A 1ur over the re.r.a.a!D.du of the lIfe oJ. W. Contrad aDd. the AuthOrity shaU hn the ript to 'brlDr &n7 Rdt, a.ttlOD. or proclledJn.r mlaw OJ: lD eqaltr. f!lcludln~ EIlaadamuII IIIl'I.d action for lIptd:fJc "DU!OImuce" to m.

force tll. a.ulnment and coUHtlcm. qf. & contl.nuiDl" direc:t a:nftual tax upon aU t'h.a t.&:x.lII.b1e property wIthin the 'bog_ria of IUds Put:lclpant nffIcfaDt in &mocm.t ~ :rnvid. "eli twada rumuaU7 1D uth qf. the :r~du of thellfe of thf4 Q'I1'atrm.ct.

19

Seetllltl 604. 'l";ra:xW1lf of Pa1l'U ed Ellarr:r PW:SUl.II.t to De!uU.

lD th *..,mt of.. default by a Puttdput, the AlltltorltJ IUD tr&l'l.l!U'. 011 a pro rata b&Ir.i.Ia to all gUm: Pariklpeu which an noi fD Ibdnlt. the c1W.ultiD.r PIIrlld.pant'1I Entitle ment Shu, of the output JlI4 IImcu of the Pro1ed whJch a.hIJ1 un bHl'! dJRoutinGe.4 'b7 nuou of IUch default. allii the pro rata. portfoJl of sm::h Ez:Itltlemenk Share of the default..

it!.I' Participant 10 ~ ihIlll bKom. 1& put of I.II.d.1WI be &l!ded to. the EntltW:PZlt Shue of t..e sudl. tnufuu Putfdpant, md ijae tnndU'H ParUdp&nt UaU be QbUrated to P"" for tEa EZltitlirslmt Shue, luututc! as aioruaid. is If th Eutitlel'l'lAmt Shan! of* th" h1msfUM ParUdpmt. iDcn.,.ed u alorudd. had 'bmI. Ibte! ariaiUlIl &III t.he ;Bctltlt%lWlt Sha.nt of the trauferM Putldpa.l'It fD ItII Power Sales Co!\\tn.ct wttta the AuUlI:n:1t:r. pmrided.,

how.".r, that i:l DC..,aut ahaU n,. traufeJ: 'Qf &I.J pad of a def&111tiq Par6dpmr'1I Entitle-.

mllZlt Shue ruwt Ie u. obltl'atiotl of.. tmufuee Putfdpu.t to bill ou.tput* 8lJd Ierne. of the Projact from. the J.utborlb' in e:cceu 01 fUb' pu!:lIII1t olth. mOlt rw:t!%I.tb' ptllbUlhed ~

IIxU.Ul:I..r.mwd hOllri;r pdk demand. of II~ tra'lUfene PuUc:iPlJlt u.d pron4!ea, furlliu. tlu.t the obUption of the dlfaulthtr Partlc:ip&nt to PIILY the Allthorll:1 Ib11 be n~lleed to the exist that patmenbi IIhall be rUIIII..,!td b:r the Autharltt tar that portfOI1 of the 4efaw.tb3lr E.utfdp&1l.t'a EntltleDuJlt Shu, which J.I.'!Q' be tun.sfund as afonsald.

Se-etfon.05. othtr.Dd'wt.by P~PllJ1t.

In the e'fUlt of.. f&iIure of the Partidpal'lt. to estabUab. mdablli. or collect riLta or chUgM. a4equat.. to prOTldl. reTIIIDUIII suffJdllllt to 1111&111. th.II PuUdpet. to pay all 1IJD000ta due to the AutborlV wI!&" th1a Contract or la the wmt of a f.. U\\1ZI of thl ParUdpqt to take from. the Aubatr Us Bulk Power Slll'pb' 111. a.c:eordaDCe with the pnrriIfous of this

• CObtrae:t,. or in the n.1:. of ey defalllt by the Putfdpant under allY ot:br CCT1I11IILUt, -I%M-.

DWl.t or obU,l.tion r.d W. Contn.d, the Autborltr may bd" Ill, suIt, a.c:tIoD. ot' prucet,dlug La. tlll:W or iD iBQmt1, fllcludml'.ma:ndamus, lnjundloQ ud. dOn tor aped.flc ptd01:1lW\\Ce." U

'ma1 'be necUAtT or appropriate to l.I1foree u,. tOftU~\\ alrUl2Wl.t Of' ObU,a.t:lolS of th1I Contract.,.waat the ParticlpaDt..

Sedloa GG.. Defu.it 'b1 A\\1~orUy.

In thl! eYl!ot of an,r default by the ALlt.hority uMlIIr 1.1'11 covenant, rqrein:lent or obUpttoQ ot. this Conluct. the lutidpmt may brinl lay Nit, action, 01: pl'tlWtcU.q IA 1&"" 01' in equil:y.

Jneludlq mandamUli. WSuncUon. and. IJIUon fer sp8Cutc pmormllJl,Cl U rm., be MCWUY or a.ppZO'pNte to /In!OI:CI an1 eovelKnt. asreemuat. or cbUpt.!cl'l of" tbJs Contnct IIp.lmt the Authority.

SectJOtl &01.

AiI&D.OAm.!2~ of Rcr.uily.

In CUtiaDT proeeedlng tHen*on a.c:couut of ariy 4efawt shan aa". bam dtseoutUlIle4 or

..bJDdoa.~ for u.rr nuon, the partiu to IUd.!. proceedlup willie restom to -their forma'.

pcWtiOAlil am! d.hbl hereWlder. J'lUPectivaly. de! aU rirbta. rtD.Udf-. pcnn.n. and chnSu of tha Authority and 1M' PartlcfplIDt.hall continue u tboarb ilO ndt procHdlnrs had betri tU:en.

ARTlCLE VD JdlSCELLA..Ni!OUS GENEI.A.L PROVISIONS SecUon fOl. Cbanc:ter and CcnUZluU,. Cit SuTl'cL '.

(a} The A.lIthorlty may Umporuily m.tUTllpt or lHuce deli.,eriu of 1I1ectrlc enulJ" to the ~rtidp&nt if the Alrthorlt,. determin." tlat Iud: JutUTuptran or *l2cUon r.. QKUIa:ry in CU411 of emupodca or ID. order to iulaU.,wpm.tlt hi or :aU1! r.epa,(n to Or replacUllmtt, 20

ID"uf;fratiou. mit i'tispeet1cM ot 01:' UI pufonn ~tber l1lallltmlll'1C8 "ark oD Its !tileraUoa or trUl.llm.i,.e,icm. fadJUes ud related' "PPU-.tWle5. A.:fter wllI'mi:a1 the Parili:lpLl'lt r111~

,All, filch :pla:uliid'l:att.mlptfon or rec!l1ctfOD, d'riJlI tlJe reDaD t!tudor, and sbtinl' the prob a'ble duntJcm. thulOf. thll Authority d tel the \\at lit Its ahility IIchedul. IUch mtlln"Uption or reductio'll at So timll whlc:h will "'II" tbe Jeut fDtu!umu:. with th. Open.tioXla of the Pari!~t&.

" (b) The Autboritf'shall not b. nqulhl!. to,pn.rridet 1lf be lfl.b!e for fentlre to PfovWe.

, lII.mce ondu W. Cc1tract when suh bUm-I 0'1: the WlI"tloD or. curb.ilmat d or mbr fU'uu:e 'Jritk Uti aernee is allSeC b, Uncontrollable Force or, with l'upect to the aemcD to bellrcvided tor Supplemllnbl Balk Power Supply. II c.aused by the fdlure or refusal at al11' othe balk JO'III1I2' slJPPller to entU' !nto rwoJLl.bJe coutnw with the Au.thority or* 'b,. thll 1mbfHtf of the Authcritr to obtain anr r~uIre4 lovtrmnental lI:pprl:jvall to eublll the Au thorit:r to ac:qtdre or coutn,u::t uY!a.dl!Uu.

Section 702. Mderirr,.'

(.I.),The Authority raU"lIU the dlht to provldl for inatallaUon of meten and will pro

'lId. or ~. to be pro1lided all neCUIU7 meierlllr equtpMeDt for tktuml.nh!, the quurtltr aDd condltJoDS of the Bmppl, ot electric pawl%' IIDd taUIT daJivued by the Authorlty uDdc tlUa 'Cmtra.et; provided bowever that the Participant m&'1 at Ita OWD. cod insbD..ddltil,ln&!

materm,. eqmpmmt to pro.,(1!111 a.. check em that at the Allthoritf. '1'U Partidpallt.baD. vullP'Iy without cost to the Authority II. suitable place for ImWliDI thl Authorlty'l tneteril'1r eQtdp.

mc~

(b) ~ 1.I!1' mttar uaad for bnunlf falb to reliBtu or Is fouud, to 'be bw:Ilrate. the Au thority shall npaJ'r or l'IIpJaee l'Oc1l matu or caUl. It to be repaired 01' replaced. ed 11:13 app'l"Opmi. bllllilr.ball 'be mllde to the Participant br the Authority ~ucd 'IlpOD the best InformatIon avant.bJ. for the paiod. not IIlXceediDl'lI1xty &'r:l, durinr which :u metu.ir1lnl:-.

curnd. Aut mete-tasted I.I!d foubd to be not, morl thaD two pueat abo," or 'belinr Dormal allall be consIdered accurah maotar u coneHan of bWSDP' b cODcuAed. It. &II.It. ruult ot uy tat. a meter Is found to res{rllll" In uceu of two percent above'ot' beloW' norma1" then the "adiD,. of ~Ilc.h meter p%'cyfolUly t&lwl tor blUUtI purposes.hall, b. ~ted f,Q the p,pod duriq whIch It 11 esbblbbed the miltI%' W&II WCCUftte. ~u.t nq COl'l'UtIOD ~aD bl mada tor anr period be),cl1d aIxt, dillY. prior to lb. dab 011 wmch aD iDacellracy fa dlIcCIVued &y IIl1l.cb tu~

(c; In additiuD to lI'!tell hstaJ' as ATIII deemed lleuuuy by tne Authorltr. th.* Aath!,rlty

.haJJ have UI.1 meter tated' at IIny tUn. UpOA writfeu nquut al the P"xt[dput udt if such mete P'I"OVIII accurate within two percut above 'or bttlow DomaJ; the lIIXptDIe of IUch lui Slh~ b,,bOnle.br the PartidpaD~

(d) The Authority shall :notif:y th'Putld~l&l'lt JUl.dva.nce of the time of uy meter tut 10 that... repruaatAtive of the PartJdput ma:r be prumt.

Section: 703. POlflll" DeI!TerlU *.

Power and e:aeTQ' furu.illh64 to th. Parlfdpct undu tbis 'Coliltn.ct,hall be in the form of tJu:-H phu. clUTent, altlU'Il&tinl' at a freque.ru;y Gf approldmatary 60 Hertz.

Std'oIl104. UabWI;r of Partfu.

'Th. Authority and the Partldpa.nt..haD IISSWlUt tuD re.sporw"bnlt,y alld JiIlbfllb tar'tb.

mamtuanec ud opeatioD ot theIr reapedive proputia and am ahall mdem.nU:r nd aavI harmlUI the other trom.11 UabJUty and U'pUSIL aD al:eOunt ot any ud all damll"" dabUt 21

or IldiOlli. Indudlnr in]ury to ilr doth of penona arisiq from UJ' ad or ac:cldmt In c0n.

nection with tb. InaWlatioD" pt'l!lItDCt" maintenance and operation of tb. proput;r and equip mtrd: of the 1l1demnlfrinr party mel net e&IlSH !n whole or In part b., ti, IleI'BleDc:I of tb, other PariJ'; pnlvlded that uy liability which.!. IU\\:IlI'l'H by the Authorlt'1 tlIroqh. the Gpn atfon and maintenance of the Profect &nd. not CDVUK, or IlOt covered luffl~. b1 Insur..

ance.hall be pdd solely :from th!I nvenul!S. riI.. tha Authority. and D7 paymlllltl J:U.I4. by the Authority'to IIIlithfl,IUch nabrut.,.~ becoml put 01 the AlmUill Srsta Jndret.

Serilon 1Q5. Othu':lum.s mcl COl'lclltfou.

Sarriee hereunder.13tll "be lD l.<<O'rdanee with INch other b:rm.III &mI c<<IiUtfoq.u an utiblfahed. u put of the Authority. nmea rulq and replaUo.u. lVldc:h sball ~ be m...

c:omistent with the provfa[ou of thfs Cont:m:t.

SIe.tion 7116. A..aipmmt of COIlf.n~

ia) This Cqntract shall inure to tile buefl.t of and shaD b. bilidf:Q.r ~ the rllliPdv8 succ:uson a.nd &SliP'll of the puti-to thf. Contract; provided. bcnrou. that o:eept as PT1>'

vlded in t:he e'fent of a dilfauIt" lilli, except for U1e a,pip:Dlen.1: "b., the Au:thorib' authorillfl'd hereby. uJtl:iu this CODtract liar a:rJ:'1' IDtuut herdJ:l.hall 1M traulured Ol" usipad by eithu parl:r hereto o:eept with the COJ:I!ent In writ,lnl' of tlie oth.. 1I&ri1 hereto, pro'ridtd.

'hQ'ln'fer. th&t ndl C:Onqni: ahall not he "lrithheld uD.reu,oubl,., No U1Ipmat or transfer 41f Ws Contract.ka.D ralleve tle putiq of Qf ohJ1ptrou hueWldv.

(b) The P.utidpant adcn.awlHra and aena that tbe AutlaontT ma., uaip uel pl.6 to'the TrIUtM aut Co-'l':I:wstee dllidpated mtb. ::Bond lbsolutl= Ii.ll Its rilbt, title" and J:D..

terut mand to all P"fUllnu to be _e to the AuthorltJ: und.. the piorildcm.s ci Article,m ql Ws Contrac:t aDd aU pa.,ml1'lu atlril:lltbbla to th.*P1'ojKt or to tbAi'..A:Imud P.taJ_*Cocb to be =lILde in accordance with ot' puntllUtt to IUl1' other pm'rislcm of t'bI.I Cont:rut M aecllri.t:r:

for tlla JiI~ of the prlndpd fmetudbl' abld:Dr fund ~entl) of, IUl4 pt'lIImImn. If 1IlD1~ uel tnten5t 011 all the Bcmds. ud, upPn th. o:ec:ut{on at auch Uldpm.t and plllidre.

lIIuen 'l"ruaue shaD have aU nrhtl and 1'eUlediu herein provided to the Autharit7*. and limY reference h..eln to the AulhoriI;J ahsIl be ~td.. with the nllClUa;ry elw:Ir-In detaU. to inchufe lIIuch Tn.t.Itee "bfeh.lWl I)e a third pll'tJ' hendtclu;r of th4I c:Gvenam:s and. ig:ne..

mlDta of the Pu1;!dpant he.nb& c:onWntd.

SKtIo.ll 7D7. Term.!.natJon. or ~clmellt of Contract..

(at) This Contract IhIllnct be tumbl.ated hy eithu);l&rt.r until!!:' U7 ~

wh.tha' baed upon the default of the other puty under this CoAtraet or &D1 other IDatru mmt 01" oth4!:nrise aeapt &II.,eq.ncally,IIl'OffcIed.in thts Contn.c:t.

"('b) 1"b1II cODb:ac:t lhall :!lOt 'be ~.J:llfetJ, madflbd, or othenri:lile altarld.ira uf ~

that will..IIdvae1:r &Uect the security for the BODdI dforded h1 the pro~ of th.tI ecn...

tract covtrillr the pW'ehaa.e andu of pnl'1l" hereunder upon which the 01ll"llU'lllJ from time to thae of the.DoDd.,haD have nUllld II.IJl Incll:u:emezrt to PIU"cha. a.M. hold U. Bm.b. So loq u any cd the Bonda ve oubt.lmdi:tll' or lmtil adequate prorisioDa to#:' the PA;rIIIW1t thvac!

haYe btu awr. ma<<orunce with the pnriafol'lJll of th. 'BoM Resolution. W. Contn.et.hall not b. amended. modifIed. or atlIuwf.ae IIIltullld In &%17 ~U' whida wm l'aI:1ac:. the pa, ments pladred as 'Kw.-fq for the lIo~ !Sr t::de:ad ~e tim-of such plQ'mlDb p:rarlded 1Ie;re..

1:11 or whkh will iA any maJ.U'.lU' impaIr or advenelJ' a!fect the nlhts of tQ aft... ~m time to time of Ule B~nd".

ie) None of the Power Sare Cmtnda'IIIII1 be ILn:umdttl IS to anT Cll:le or mora Mdpmts 22

eo u to proTid. tt1"JXll abc! conditiolU diHuent from thoae berejn conWned except upon writ teD. notte. to and written consent or wa.{ver b,. uth of the other Putfdpanta, and upon dmilar

. amendment bemr made to tbe P01fU Salts Contract of anr other Partfdpallt rlquutfZl8' such amenlblDt after r.ecapt 'by.ach Partldpant of notic. of such amendment.

..unCLE. YIII YU'11TRE PROJEC'm UNDERT.AXBN BY THE AUTHORl'l"Y Sec:tfOa 801..Future Projects.

The AQthorfty.ma,. from time to time coQdact.tudfu Il3d u.rotiatfOnl with rapKtto pll.Zl%l.fq. c!u1phtl'. fwnemr. collltructiDr. adzn.l!usterinr. opuatinl' *. 1IXl m.amta1nbll' or othe.:rwise &Cquirilll' future. renuation and tnnsnUufon faclllti. or rll'htl to the ouqrot thereof lD a~dltfou to '-hOIl contlJDlIlaW*for tha ProSact, aDd mal make rtCGDlDlmdatlou to the PartIcJpant that siJch futore facilltfu be UDdutaken by ~ Authorltr. If the Part!dpmt wishes to parti.te tn.an4 the Authority wishes to lllJderWteID1 iuch tuture f.crutt.... the

~arUcipant shall execu~. a contrart tbenf!?Z' with the Authorl~.

Section 802. Futun Pari.lcJpaJits.

It fs exptusl,. undustood th.t ucthlnr huein alWl preclude ather future p&rildpant.

from contr.ctinl' with the AuthoritT for plannmr, procurm8'. ~a proYfdfil, IUch other fu.

tun partidpanu' balk power Iuppl,.. Includlllr partfdpatlO1l in otller project. anduta~ by the Authority.

Sectlon 80S.: Chan.tS in *Emun. SEPA ArrP,IUrICt... '.

~a Aathorftr may DqoUate bulk powv supply uTanpmmm with the So\\ttheutern.

Power AdmlnWntto~ and the GtOrIfa POWII' CoJDpanJ' f.or ehlllJtl In the eurrentl1 afstlnr contracts b.tween the Partidputa and Soutbe&atuu Power AdmbUatnUq and betwMD Gear lia Power CompaDY cd Southt&S~ern Power.Administration whfch.chan...*.,. for tll. ex

.~aed parpOl~ of loweri.ar the ~c.fpmb' Q,eran bulk power.upply COIb b,. acquisition b,. the Partfdpantiof their full Jamul aDotmmta of SOllthea.stem Powu*AdmWatration power. U Inch exprtlslC! p~. is ac:blaved aDd the Authorlty wfahu to: aDdutalce.uch ananpmcta. the P.rtfclpant %Da,. execute

• cDZltnet therefor with the Autborlt7 In.which.

the Partidpant mq auflll Its alJobDtDt at Southu.rtarn.PoWU' AdmlnJatration power to the

• Authorlq. for t!dfveJ'7 by tha Autharlty to the Partlcip&Dt..

SecUon 804. Othu SEPA Arnn,uRenu..

Tht Authority mq neaotSate other bulle power.upply arranrtmanta* with. the Soutl:l...t.

ern POWtr Admhlr.tratSoD relatinl' to other JlroJ.ct. o! the Southeuten Power Aamfnlatzoa.

tSon DO~ now Included, in tha curna.tl,. ¢atinr calltrads betwetIL the Putfdpanta and the SoutheutarD Power AdDUDistrat1cm for acquIaltfoll by the Participants of tlWr full JAw1ul allotment at. IUch other proJeeti. The Partldpant !DI1..mID ita allotment of,ueh other prQJeds to the Authorltr for cfelfvll7 by the Authority ta the }la.rtfcipan~,'

~ecUon 805. *A!JOCJIt!OIl Itt Coda.

UDtfl the Autborlt)o' Ihall unc!Rrtake

• future project or until tM pro'filfOILl of Sect1on.

80s or 804 huaat rela.tbll' to SEPA arr&n.tmmta ue Impl~ted. en opuaUlI1' and main tenance costa telated to tlIe opuatiD, acd conductmr ol the bui!JSIQ of the Authority shaD b4I trubd Lt. Atmual Projact Coata aad, UpOD the undwtaJdDI' 'by the..(othodt:Y of a future project. or upon lxaplemmtatfon of the provisions of Sections 803 or 804 heraat, the Authorl-*

23

• tr Shall aUoa.te an ipproprlate man of its ac1mhl.btu.tlv.11lI.4 leIlen! u:pe:Dsa to.~c:lI. fl1tw:a prDject and.llludt UTllU:llemen!;s lnul.. S&<:tlim. 893 and ~

...............'"~ IX SEVERABILITY In cua D1 C1111 or man ct the prOTbSoD.S of Centrad sUU for JaY na.ecm be held to bll..metd or InvaUd b:r a cou.rt of completed jl1tiadic~on. it is tb IDteDttoll of ct the pa.rilu hereto that IUi!h Werality or IDnUdity 'ban ~ct I!f~ any other provlaion

. 04 but th.IIII Contnct &hall coutrlled and enforud as 11 Iud! iDqaI or =1'1.114 pro"'1011.

had not. been contained hll1'l1D, and thts Cont.net...hall be coutraed to &dopt, 'but; no~ to en

]&rp UpOD. all the appUcable pt"omloq of PI4 aDd. III the appUl'!I.bk pl'O'rlsfoDl of the ConititTlticm aDd,lUW'lIJ.l*la'lfs of Gtorrb. and. if an,. prOYiafou 'tnlOf I!odct mrt appUCIIlb18 Jl'arlslon Idd Conatitutlol:l. or*laWl.tlc 'attu u adopted-the lqial&hue ad.

as hltuprllltad by the 1!013111 of thfa.tatl.haD prevail in Heu of lD1' provision hereof 1a. con flict or not in humcm:r thunrith.

IN WITNESS ~ltEOF, the Municipal ElectrIc Authority of GlOWa. hu eal1aed th.i.a Contrad to be executed f:a. ita corporate nama by ita dill,. ~llthorUed oMcera and. b;r tht u:t<~uttl)n hereof III admow\\edl*l that pa.:rmants made under tlW! CoJitl'l.ct m&:T bII &UilDed, ILl provided In

'TOI (b) herMf. by the to the ".I'rlJ.ttn aDA Co-Tra.itee to be dulpated In all1 SIlppi8lll1WbJ Bond RUoll.ltfon...

for the prment of dBonda at.

the Authorlt:r. as lilt :fonh In u!d Sed:!:ol'l. 'T06(b) hU60t. and tha Authority hu allied ita

. corpante sol to be hereantl) impruud aDA attubd i the Putfdpmt Au caused thU Con tract to be exKubd Iu Ita corporate n,ama b,. 11:.1. duly a~e4 citfIctD ad Ita 'COfl)Orate IW to be hereunto Imprand &1'1.4 attut&d, and dal!YIlT henof by tlia AuthorftJ' to the Par.

ticipUlt I'.s 'htreb7 admowledrld, aU as of the da:r and TUI" fint &bo'l.e*wri,ttel1.

MUNICIPAL E:I.!:GI'RIC AU"l'KOIUTY OF GEORGLl BY:

~.".II""' ** ".".'"'~ ** ''. *** '.-** '

.ATT:

BY:

II'........ t

".. 0( ~ "

"..... II,..... '".. " <<...... ~.... <II II.. I'.. '...

U1'O'&

.... '".......... '".... <<.... ".. to

" << ".... III............

e.***

DESCRIPTION OJ' PROJECT hUla! FadlltJes.

The IDltal facilltiu of the Project shall be the toUOYtnr:

1. Imtial Bledrlc Genu,atlolland Related TransmIsaJon Flclllt1u IIlcluded In The Project.

(a) l'1.nt lIateh.

A.....aok.n lAd seven-kntbs *Puc.nt Wu:tivided* ln~ut in the t..,o 80'1 MWe nominelly rated nudur aenaitinl UDib to be mown.. the Edwin tHatch Nuclear Unlta, Numbcn On*.

and Two, (lndMdually ~.lirnated II Hatch Unit No.1 &nd Hat.eh Unit No.2 and cc1lectt'ftly dulJnat<<d.. PlaDt Hatch) to be located near Baxley in ApplJn, County, a.orafa, fncJudfnc tor such units (i) land delineated and dac:ribed III the tecorda ol the Clerk ot the SUpulor CoUn.ot ApplIn, Couuty. Georp. in Pllt Book 8, pacl 35, md In the n~rdJ of the CllI'k of the SUperior Cowt of Toomba Co'unty, Geoqla. in Plat BooIe 11, PIP '4, and III land rfabtl putaJainr thereto, (ll) the nucleu power reactors, thl tutbInl-leJImtazs, ~e bui1~inp "ounne the laene, Uie u~ted Iwdllci~.lIld.quipment, and the rmqd trt.nimluioa facJl1tlll all.... mon pet!

. culuiY dllc:dbed tb the Application, and Imendmlllb thereto, by the Gear.,. Pow.r Company

. belora the AtQmil: Enll'lY Commiulon in Doclret Nor. S~S21 and 50*386 and th. PreUmlna:y Sa/.ty ~ 1leporl, and amendrunts \\hC'eta, ",bkh c:onstituta

• part of IUCh AppUcatlon, (Ill) inventodal.!)C materials, suppl1.., fuel, toolll:Qd I~uipm.nt for usa In c:oDDadion ~th Plant Hl.tcb, acd (1.) the Plant Hatcb lWlroad delil\\llted and cSucribed in the tlc:orcb of t.b. Clerk of the Supenor CoUrt ol ~~ County in Plat Book a. pqu 36, ~7, and 38.

(b) PlUlt VDatle.

A tbIrly Plrclnt WldIYided Int.enrt In the two 1150* MW. muimum rated nuc:leu lellentiq.

unit. to be blown as tha Alvin W. VO(tle Nuclear Unlta, Numbul en. UId Two (lndtridu.aUy des!pated as Vopl. Unit No.1 alId VopJ. Unit No. 2 and coUedivel7 dalpted.. PJax\\t Vort!.) to be locattd near Waynesboro In Burke County, Georst.. Includln, tor Neb IlDiti (I)

. l~d dallnuted and described bJ GeorP Potret Company Map :rna M-8-.9, to be X'tCoMed iD ~

tlCO~ ol the Clark ot Use Superior CoUtt of.Burke County, Geoqia aDd all land rlChta penam la, thcato, (II) the nuclear power reactors, the turbln.,enerators, the bulldlnp hollliDC.th.

ame, the...ociated auzlliarl., and equipment. aDd the tetated tnn.mU.alon facilltfa an as more particularly. dac:rilMd fn the AppUcatfoa, and ameadmenb thereto, by th. Gearp Po.wer eom-.

pill)" belon the Alolldc EnerlY ColUIZ11sllon In Docket NOL "S0042~ and &a...25 and the Pre lfminuy Salety AnalYN Report, and amendments theeto, whleh co~tutea a part ot such Application, IDd (lB) In.mtoriu ot materiaJl, lupplfes, fuel. tooll and lqulpenenU f= \\lH In eaQDICtion rib Plant Vcatl., proYided. however, In the Ivent tor any ieuon Bonds an.not lUued fot that portion ot the ~oject delfrnated u Plant Vo(tle, the Cacrntia de!c:rlbld. mtb1l sub;arappb (b) shaD not ~ a pan of lb. Project.

(c) Workfnr C&pf~.

Worldnl CapItal required bT the Authorft)- durlnr c:o~truct10D of the Project and 1.(%

.the pJadnr at the Proled in operation. fo~ provSdinr Bulle Power SU]lply, 'fncludinr Supple m.ut.alBulk Power Supply, to an the PartlcIp&Dta *.

25

II-Initial 'l'ral:I.smlsC9l'A* Fae.Dltfa hel,ws.d Ia The ProJad.

Thall traD.m1Iaabm fadUtiu to be ",I.d:nd 1M constructed b7 the A'GtharitJ 4a:rb:i1' the time prior to the C<lmm~ Oper.tion Date 01 the lut of the paen.Hni' tadlitla 'Of the Project to b, c.umpletid order to med ita luvutment :r:upoulbDlLr durlnr nda tim.

eonuec:tiOl1 with aD;' al'l'ellmet for 1m i.utqratei! tn:Dam1ukrl. Q'Ita1 to which the Au tllorit,: m&r be a puty JA ~dlmee'with the Pl"Oridom d ktlOJl 101 at the Contract.

AddlUo.a.a1 l!ldUUeL The...dditfoaalladDtfa of thi P:rcject. 6baD be tll.ll.u additioM aDd imp1."O'ftm4Ilta to the e.1ect::rie p12mtioB. usd related ha'lWllLu{on taciUt[u end to the tnlmlba!OD I11t.1m f&d1Jti~

of the Projcet provided fer in dalUU (1). (U) and (iii) of Sec:tiOl'A 102<II> of thA CGa1tn.ct.

SCHEDtn..E OF ENTlTLEMENT SBAR.ES.

1. PARTICIPANTS' ENTI'l'LE14ENT Slt4l!tES or 1RE O'CJ'l'l?UT AND S2.RVlCES OF

'!liB GINStATING P'ACtLlTIES (INCLUDING llELATEDT.RANSlflSSIONFAOILITlES)

INCLUDED IN THE PROJ'EO'l' The Putidpantl!' 'SntitWnUlt Shara of the outPlit UId.II.Mea c! tlI. Pll~ tadli tieft (lncJucf.i.q reIaW tnlwmuiOB. l.ad1itla) of the P.roItci:, wlUch Project taduw IlL IfIl'A11 talD and 1Irt'm-i:entha pueu.1: udiriW inter-ut In PJmt Katch aDd.. Wrt7 ptlalD~ undivided iatuut iu Plant Vosrtla lIoth of "bleh ~. 'mOr. putfazluiy dacribed In thl!" Duedptfol'A ~

Project. ud of the IUVtca prrn1~ed by the Authcrltr In aecorUnca with the p:rcrllJ.ou of

-SectJOQ a03 of the Coutract, sluD for 111m Partfdp.u1t be thol. EDtitleml.t Swa,.t forih Ell t1ua foUo1rl.Dt'.uIldWe-:

P**udp&"t

',ACWORTH ADEL AIJl.ANY BAllN!:lm.LE

.BI..ABELY TOWN' OF BRmSoN BUFORD CAIRO CAlJ:IOUN' CAldII.LA CA.:R.'l'.USVILLE COLLEGB PAll1t CO!lQlEB.('.:B COYl.NGTON'.'

ClusP (lOUNl'Y DOERUN DOUGLAS BA.STPomr ELaEM'ON 0.610 Ula lUn 0.558 4UiU O.03S

. 0.5'1"

.1.81S 2.2!6.'

.1.149 G..2'M' 5.804 0.'160 2.e91S 2.548 0.129 2.3(]5 7.662 Ui45 li:zItUJ_lIal Shue Altu l'fnat

.lIla_lIlI&

0,"'

1.220 l2.468 0.4.59 CU6S!

0.DS5 U61

.1.680 2~638 l.Z0I li.J7ti UT3 0.692 2.658

!US5 0.~6 2.640 usa loMl blltllllUllt ShrtAlta:r

.....,........,,\\

UIS 1.162 10.412 ud 0.838 0.M3 USO i..801'

'2.757 Ll04 15.197 1'.'09 0."5 US1 8.159 0.l19 2.607

'1.101 1.841

'EA1Stlaaa&

SilartlAftMo

'1'It.W

.*Ulutaetd.

0.614 1.15"{

lO.cu.s 0:01 0.809 0.088.'

0.166 I.TI2 2..'198 1.086 5.173.

1.659 0.611 2.671 8.410 0.118 2.61)f 6.176 1.350 15

ELLAVILLE 0'u7 0.2.&8 usa o.a06.

FAllUIunN G,",

0,526

,O.S56 0.164

~GElULD U29 2.'169 2.895 2.182 FOlUnTH 0.98Z 0.B19 0.96'1 lUIS' FORT vALLEY 1.&47 1.616 1.162 1.J14 GRAN.'l'VlLLE tOtO 0.089 0.OB8 0.00 GRIJ'FIN uoo 8.080 2.954 2.182 HOGANSVILLE O.s81 0.801 0296 UN lAC1tSO~

Il.542 0.617 0.499 UI8 LAFAYETI'E 1.139 1.618 1.604.

1.101 L.A.,GRANGE 4.130 8.839 8.101 usa LAWRENCImLLil 1.521' UIGS 2.081 2.141 0.051 0.036 0,028 0.021 MAlUET'l'A' 10.561

.11.519 12.448 12..688 MONROE XONTI~LLQ 1.608 o..s61 1.422 O.8S4.

,1.<<4 U9S 1.453 0.402 KOULTlUE UD usa 8.011 I.OS1 NEWNAN 1.609 1.145 US3 Uge NOILCllOSS o.s8~

0.783 0.820 0.84.1 P.ALHETTO US2 0.297 O.lza 0..829

. QlJl'l'KAN D.74" 0.165 a.HZ 0.630 S4NDElISviLLE 0.881 0.818 0:rr8 '

0...,.,5 8YLVJ.NIA.

SYL'VElSTSR TKOKA.STON 1.'157 U,'

l.2J9 2.689 0.88" Ul1

'lt043

.' UN 1.216 3.099 0,9'18

.1.220

'l'HOKASV'ILLE U'S8 U9' 4.409 4.lS2 WASRINGTON 1.018 0..994 1.0S9 1.00 WEST POINT 0.561 0.1544 0-"'

0,424.

. WHIGKAJrI 0.0116 0.109 0.121 0.124 TOTAL.

100.000

.100.000 100.000 100.000 n, IwtW EDtitJlmlllt eWIL lIet-!'orlh abovil ahaU be the ED,tiUlmlmt Shan for the _.

puled CQzumlll!1dlll',"th' th'. Comml:l.'1:W Opuatlol.'l Date of Hatch Unit No. 1 ami endirlr with thll Commerdal OpentfcD Date o! Hatch Unit No. 2 or.Decembu 31, 1911, wbIeheYU" ia the urUer.

,. The'Ei:ltiUmllmt Sbue Altu F1nt.Adjuatm.a:at.haD b. ~e E:atitlemmt Shan tor the pmo/l commellClDr with the COI'.IIID4I1'daJ OpCllltiem Data of Hatch Vldt No. I ot' laDuary 1.

19'1!. which.ver k th. urlkr, aM eD&r 'lrith the CommucW ()p4t.r&t.fon Dlte ot Vc:irtI.

UDlt No.1 or Dllcambu Sl. 1882, whfche.u Is the urller*.

ntt Ent!tiamllmt SlIUI Alter Second A.d.fustmlU1t dull] bII thl E'nUtlemmt SluLre. for the period ~mm.llC:.Il3r with the Conun.uelal Operation. DaflB of Voltle '01t.lt No.1 or 11lD\\U1.1'7

'1, 1911a, whfch....er I. the a.rlle:r, Gel. endml' with the Commudal OpuatlcmDat. of Vort!*.

Unit,No. 2 or Decamw 81.1981. whichever Is tbA earlier.

Th. El1tItlemeDtSbara Alter 'l'hinl.AdJuatmlllllt.h&Jl be' the EntJtleau!'ut Share for the period ecmmenc.i.nl with the ComlDucW Open.UOD Date of Vortl. umt No. Z en: JUU&r7 I, 1984, wlUclI.vu Is the arUu. and endinr with the Jut day at the tum cd the Contrad; 27

pt'ovided howllYu. th.d ID thl e'llat PlMt VoFle II not colUf:ructed. the EatiUemn.t ~ Aftei

.Second J.,djwltmmt &Dd the E.a.titlement Si,url A:ftu Tb.b:d AdjustlnGt shaD DDt be.~pUcabll.

ud the Entltllment Shan Atter J"Irst Adfuatmmt.ball apply for the ~ col'.IIU.IUIOctnl 'lri.th the Com.m£dld OpcatioziD.t8 of iIdch tTuii Ho. 2 ot laa.WILI'11. 1919. whk:hcn.r Ia the.eU...

and. el1&1 with the lat day ~f the fel:.il of the Contnct; a.cd PftIvidArd. ~.. that,the Authorityt in acCDrdlmClll with "\\be 'FDW!iCWI Of Sution 311 of thai CoDI::nu::t...w..u the output and ~ ot such ~<rid.d m~ 1n PWat HAtch lUll! Plmt Vcctlt to Ct. Power Compa.nym ac::cordioce with the followinr schedulu:

<a) lhteh Ullll: No.1 ed IUtih Unit No. 2..

That Portlol1-of the PO"tm SlJPp1r Yur Re.m&inins' After tl!a Cmnmer-eW Operat[on Dat. of.. UDlt of the Project 60.0,.

Ftnt Full Power Supptr Year FoU4wml' Cc=mwd OpmLtSQD Date 50.0" SeceDe! FuD PO'llNl' Sl1wl1 Yu.r Follo1ri.l:ll' Commudal Opeutiou Date Thl:d Full PCI1,erSuppl,r Year

,Fcillcl1rinl' Commerda1 OpuaUOII Da~

FourlA Full Poll'll' Suppit Yur FoI!owml' ComDMrdal OpentionlAlte 25.0" F1f~:roJt PQlfer BapplJ' Year FolJowlng C4t'.!.l.mm:.fal Operation Data 25.0" SIxth Full Ponr BUllpq Yur FoUO'ffi,Dr cOmmerda1 OperatiOl1 Date 12.67' S.".nth PUUPowU' SLIpplJ' Year Followiq Ccmmue1a1 OpuaUOD. Date*

(b) Vortle UDii No.1 and VoatIe UDit No.2.

Pew.,S."I,. Tur That Forlfon of lb. POWII' Supply Year

. RemdniD8' Alw the Commercial Operation Date of a Utift of the Project FIritFull power Supply Yut Followiq Commudll Operation Date 50.0" Second Full Pow SappJy Year Fol1ow:1llr CQJl1D1ateW Operation Date

. 87.1"

'!bird Full power SU'pply Yur Follo'!riDl cOmm~al Owation D&te Fourth FIJn Powu SlIWJy Year FollowiDI' Commercial Operation Date 2$.O~

ruth Fall PoW'tr SUM Year Follo~ Commercial Operation D&te Sixth Full Ponr Supply Year Fo1lowmr CoDImudai OpentioD Date 12.5" S.veuth Full Power Supply Year FoUoWUi.. Commerclal Operation,Dat..

Provided. however that for the p~e of detumInlna' the ~tap ~ output and servfces:

to be aold to GeorJia Pawer Company, the FIrat Full Petrer Supply Yur. J'~~8' Ccmmu.

cla] Opention Dlte, 1'I"lth r~ to VoatJe UuJt No.1.haII b. DO later than the wenCSU year 1984 aud with respect to VoJ1]e UDlt No.2,hall be DC later thaD the caJadar year 188e. &JUI the peiuntarl of output ud aenicu to be. sold (when luch output &lid all"vfca are AnDabI.

tor allth we).haD be taken from the tor"om, Ichedala 10'" the appropriate yta" baaed uPOD.

the coDdufn prdWllptfOJl that the Com"mude.2 Operatfcua Date at VOItle Uzzit No.1 i.I DO later thIll the 7eu 19B5 &lid tllat the' CoJZ11:D.:dal OpuatiCID Dat. of Vo,tI. UDJt No. :a fa DO later tbUl the yuz 1984, aud provided, further, that the UIIOIIDt of IUch capadt,.old to Geazo.* '

rfa Power Camp&llT.baD not exeaecf 26" a! tM Authorlt,'. G'II'DU'IbJp.h&n of the et.padty of VortJe Units lies. 1.lId 2' over the Ulefullft. ot IUc:h alt..

It II understood that thlre shall DOt be aD7 reduction fA EntitlemtDt Shu.. of the Par.

tidJI&Dts u. rault 01..ach,.1.. of oa.tput and atrrices to ~ Pcnrer CozapaD,7'UId each ParticlPUlt ahall remafJ1 Uele for Jis full Entitlanent Shah except I~ l1abD1ty.hall be diaeharirld to the otent the AuthaHty reed". pa;rmct frnm G.orrfa Powu Com~..

D. PAAnCIPANTS' ENTITu:MENT SHARES OF SERVICESOF TRANSMISSION SYSTEM FACUJTIES INCLUDED IN THE PROJEcr.

. The Paztidplll1ta' Entitlement Shues ef ~cu of ~mainlll1en Sy.tezn Pacllfu** included In the ProJect'Ihall be detennJntd by the, Authority dllrlnl ad! Power SUpply Year In ac~*

danc:e with the pzoviJlon. of Section 808 ef tile Cantnct.

29

..... ?

AMENDMENT POwER SALES CONTRAOl'

'l"biI ~DW1t of Olntlld. made me!" mtexed into ILl ot Mueb 1. 19'76,'b1md b8tw1eD

!:he M~ ~~ Aut.borltr of ~ II. pubUe body co:pawta and polWc lind, public corporation of the State of Gee.., he:elD&ttu lomeba d~d ILl the Authorft7. aeatN by the ~ of I GI..L.1975,. p.l07, ILl Amlllded.l,Ild thl und.1IIl'JIp1ild POHtlcal8,ibdidriOll of the St&te of a.orlla. benlnAftH lO~ma duipated ILl the ~ridpmt.

WITNESSETH THAT:

BB it remembmtd that. a Pewer Salu Contnd dated. IU of october I, 19"15, h.u bUll prcmoUll)' uec:ut.ed by and belMen thil Authority IDd the putldpllAt. mel WHE.B.llAS. tba putia dun to.mend.aJd Col.'lb:act,lD cUtUn I'upedf.

NOW'I'BE'JIErOU; :

For aftd £D conaidentlon of thl pnun and the mutwU eo"enAZlbl im4 apuunenbl henm lI.ftu' Nt forth, it is qree4 and between the putiu henlto ILl foDew.!

',Sedioal. SaJd Power &.lu ~llbct sUJJ be daif<i ILl of!Weh1.1976.

$Ictia 2. Sedion 102 (l) (8)"01 A1d Centmct 11 dilated b ita entirety and ttl.. foDo1lliq new StcUoa 102 (I) (3).. -u'bltimtllld 1.n n~u thueof:

"(8) ac:qu1l1tioll of lnJtlal fuel or fwil inventory for an,. lelunt!oo fadllty of the Project and Work::iD1 capitaJ Rd nHn'III thlhfor and wo.ddn, capit.aJ md reM". for woad fuel and IIddi dow tt.l1II1 mnntoria'"

.s.CtiOEl i. Seet!SD102 fa) of add Contnct II lmeDded'by d.eI&tlDr the word "OutPut." in t.bII fQ\\.T.Jth b thl!Aot.

S.d:3cm 4. Section 102 (0) 01 qfd Contnct ill /SaINd in its entinty mel the follo'l'l'lDs lIaw StcUca 102 (0) fuubatitvted In Beu thereof:

"(0) "FIII!.I CoIIU'Ihar.U mem III cOS'la fnc:u.rnd by th, Authority d~ &1:1.1' Pom Supply Year tbat UI aD.oc:able to th. acqUilitl'orl. proClUllinr. r..brk::atfoll. ~t1cm, deUvuin(.

l'IItFOC~. atonle, and dllptllll8.l of nuclu.r maulials md of lod ~ ~ fer m1 o!

the leneatlOQ t&dUti. of tht Ptoj<<:t. fndud.tq t:n.nsten tll nurva.t.tbl!lhed 137, the Alitb~ri*

1

e.

ty (or Ncb Calts related to futUre Power Supply y~, Iell mdita related to IUch costs appUed IS appropriate in the dllaetion o( the Authority.

Section !Ii. Section 102 (.) of Slid Contract is deleted in Ita entinty and the !ollowina new Section 102 (I) is lubltituted In lieu thereof:

"(I) 'Projl~' Ihall mu.n those electric renention and related tnnsmiuiOD facilities which are Identified In the Dtscription of Ptojtet and those tn..nsmiaion rpte'lll fadllt.fa to whicb.

rtftnnce is made Tn the*Dacrlption of ProIert to be acquired and constructed by the Authority durin. the tim!l prior to the Cotcmerdal O~at1on Date of \\he Iut 01 the ianentfnl/aclUtlll of the Project to be completad in onSe: ~o milt the Authority'. imatmcot rllpontibWty durlnl luch time ill connection with 1n1 acrument for an intecnted tm\\Imfulon IYltem to which the Authority may be

• pan, in accordance wltb thl provUlOOI of Section 802 hlnof, toletber with (l) any maJor renew.lJ, replaeementt,' repairs, addltlon.l, betterments ad improvement. neep.

la:y, in the opiJdon of 1M ConrulUnI Enllnetr, to keep the l'roIectlD lood oPlllat.inl conditio" or to prevent a lou of nyenue thtrtfzom. (11) uy ~or addltJoDl, lmprovemanta, Rpain an~

modification. to? the PzoJect and any decommi.-lonb\\p or dlsp.csala of the ProJect. requ!r:td by any IOVaDlIlentalqency.havin, juri.diction over the Project or for which the Authority ibID be responsible by virtue of lilY obUaatiol\\ of thI Authority wiDl out of my conlnet to which the Authodty may be

• party r.1aUnI to ownmhip of the Project or InY tadl1ty thereof, and (ill) worldnc capital required by the Authority durin, conltludlon of the Project and for the.pladnf of the Project In. 0pan.t1011 for IJro~dlnc Bulk Power Supply, includln, Supplemmtal Bulk POlft!'

Supply, to the Partidpanl" Stc:tfOD 6. Section 401 of aafd Con~lCt is deleted In Itt entirety and the foUowini ne".

Sec:bon."Ol f.s lU~tutIId In li'~.I'"tb~of:

"Section 401. Th. Authority will pro"ride or ClUi. to be provided to the P.azt!ciput III Suppltmmtal Bulle Power Supply d\\aiD, each month of each Power Supply Yar. Such S"upplt.

DuntA! Bulle Power Supply may Include. butshall Dot be lbnlted to, partial and fun requirement:&

pOWIt pmhues and W1ft power llnice. leneratfnc c:tpKity rulrVe,emee, firm IDd noD1hm capacity and enerJ1 Ilrvice. tranlmillfcn..mce (lncludinl tnDsmlulon aervlce puzchued by the Authorit7 to lupplement tM Participant" Ent.itlemtnt Share of tnNmIalon services provided by.

the Autbotity from thOll tranllDlufon lYiteJDI tadUtfes includld in tbePzoject) and othez Interclwlp service mad. a'll1lable u a r..ult of transact10n.l. wUh other utWti** 'l'11e COlt. to the AuU,odt,. of.electric power and InerlY pun:b.ued by the Authcrity from other Iltmt1u baed upon tarllfs 1Ded by IUch other utHities wf1h the F.dual POWI!' Comm1Alon will hi dlnct.ty reflected In the mODth17 BIIllna Statement to the Putfc:fpant. Such monthly BilllDc Statell\\ent wiDlnclude

• c:redit for Ncb deliyU}' point tranaml&lion fac:i1itill U are oWDed, nomced, or operated by the Plrticipant...

Sect!oo 7. Sec:ti0ll'601 (b) of said CoDtz~ct Is deleted in iti entirtty and the foUoWinI nl.",

Seetion 501 (b) ia IUbltitutad mlieu thlnof:

"(b) Addft;(oad Bondi may be.old and liNed by the Authority in accordance with the provilfOZ21 of the Bond Resolution at any time and fzcm time to time In' the nwnt fundi III required to ~ l:he COlt of (1) any maior renewals. replacements, [epain. addition** betterments, or ~proYlan&l, &0 the Project necaaU7, in the opinioQ<lf th. Cou.wUnI Enlblnr. to lc.epJhe ProJeet fD,ood opcratmc con.dltton or to prevent a JOII of reVUlun therefrom, (U) aD7 mtJor addlt!ona, lmFOveJDents. repalrl, or mcdif'.u:atiOI1l to the Project, qr my deeommlaioDlnp or dilpoaala of the.Proiect,. reilu!rtd brinY,ovmUDlntal..ency havin, juriad1ctIon oyer the boJeet 2

....:.'-......a '..

~.** !',

.. ~

or fOIr wl:!.ich t.lur Authority Ihall be n.sponsible by virtue of any Obnptioil of the Authority a.rWrt.8 oui.ot any,contract to wbkh the Authority may be

• p!U:1.y rellun, 'to own'uKdp at ~he l'roject or ~J" '.sciUty thereof. 01 (iJi) reload fuel or additiorud {ue.! i11Vl!!l.t.or.r for 1J\\,1 Itneration flr:mt.,. of. the Project In any Power Supply YeN'to the eXW:l' that sufticltnt fundi are Dot*

ava.ilabfA in any J"eRn'e."bUshed. by the Authority (or Futi COSb; proYSded bowever, thlt no s:zcl:a additional Bondi n:IIIIY be i.a,ued !Ol the purpoce of Il~dtnl addltJonalleJur:atin,unib the

• Ptojed.

Sed$OD. 8. Section 501 (e) is ditlet.ed in the its entirety, and Section &01 (d) ia renumbered

~~~~'

Section. 9. The.,Uac:bmmt. to* alii Contrad mtftled "Description of Project'*.aDd "Sc:becfula at EntidUDmt Qwa" eons.1n1nll of five pilI4I!1 iI deleted In ita en~ty and the

~ptioD. of Projict cd Scbedule of EutftJement Sbara.ttached hueto k IUbilt1tut.ld in Uw

~~oL Section 10.. SI.1d Cont.naet &hall f'el"nllin in full for<< and e1fect a<<pt u herein llrDen~d.

IN wrrHE.SS WHEREOF, 'l"be Munh:ipaJ Elec~ Authority of GeozPe Md the P'~PUlt have' CIIIUMd thSI Amenclm.e",t. 01 Conb'a.ct to bit n:tcut,e:d i.n'their corpoAte names b" the dutJ autbOl'iad oUJem.<<:1 lb_ corporate IIU to be hereunto impreued and II.ttaWd. aU IU of the '

dillY a:nd,tar &It.bon writt.m.

M UNlClPAl,. ELECl1U.C It.

G:J.Ql~~'-

BY:

BY:

"... ~

I ATT:

THIs PAOE INTEmlONALLY LD'T BL.AlfK.

D~ON OF PROJECT lnltial Faci1itSu.

The Initial {dUet of the Project ahait be thl foDowing:

,I. ' InltW ~edric ~enC'ltion and Related TnnsmLuion F.dUtl.. lncludcd In '!'he Project.

(a) PlaDt H&tc:h.

A llventeeD and leven*tenthl percent undividld tntenst ID the two. 807 MWI nominally rated nuelear,enft1t1ni un.it. to be known u the tdwin 1. Hatch,Nuclear UDltl, Numben One

~ Two, (Individually deApated u H&tch Unit No.1 and Hatch tmlt No. 2 &Ad c:oUectl'flly ciuipted u Plant Hatch) to be located nur Suay in Applin, County. c;.ollk, mdudhzl for I11ch unit. (1) land ct.liDeabed and deaaibed lD the recorda of the auk of thl SUplrior Court ot ApplIn, County, Georp, In Plat Book 8, pAp 36, and In the ~ccria of the ~k of the Superior Court of Toombl County. Georsf,I, ill Plat Book n. pile U, md aD lIsld riChtl pez:talDibC thllrlto, (Ii) the Dueleat powe ructarl, the turbine-Ieneratoll, the buildJap hauIlnI the ami, the usoc:!at.d alailiarlls and el:luipment, and the ItI&t.ed. tnaamiSlioll faciI1tles all u mOta put1 cUla.riy described In thl Application, aDd amlndments thueto, b7 the Geoqia Powv ComPlll1Y before the Atomic: BaIqy Commiaalon In Docbt Nos. 50*321 md 6a-a~ IDd the Pldmmcy Saflty AnLly. Repo:t.,md amendmmts thereto, which coutltuta.. put oIlIICh AppUcaUoa, (til) invmto:iU of mmrfa.la, RlPPUa, full, too.. and equipment fol' UII'm collDCCiJoD with PJmt Hatch, and (") t~ PlaDt HAtcb Jl&iJroad d,UDa.t4d aad described in the rl.cord.t of ~e Cl8k*of the Supmar Court of App~ 90unty in :Plat. Book 8, Pilli a6, 87. and 38;pra¥lded, howeYer, the Authority.ball ba., the dlht and pawn' to Nil to any oD! or mort of tM poUtlcal 5ubc1M

'Ilonl listad In the faUowinl &;hedule of EntiUemmt Sbilnl wblch ahaIl not aecut. a Power '

Sw Coatnct,with tM Authorlty 111m portiOD of ita uncUndid iDtGelt lD PlaIl& HUc;h ~ the Authority.hall be lawfuDy oblfpted bl '9i:tun of any CDDtndUJl obliptloD ot the Autborlt1 to nD to IUCh politicallUbd1vbio1U to..tilt), theliclDH COD~ttOni partafDlnr to l'IantHai.ch.

(b) Plant Voatle*

A InentelQ'and sevln*tentba petelut uncilvtded lntereat In the two '1160 MWe awdm~

rated nuclear,eneratm, uNtil to be knOWil u the Alvin W. Vo(tle,Nuc:1ev UI1itI. Number. em.

and Two, (Individually daipatld u V0ltle t1Dit No.1 and 'V~e UnR No.2 mei coDectlvtly dedpWed.. Plmt Vc~) to be located near Wayn.boro iD Bura CountJ', c.arp; lnc:huHJSI tor Ndl unltl (J) land deUDatid and dac:ribK CD Georp. Pawer,CompID1 Map J1J. M.... l~

dated Mucli 15, 1976, to be recotded In the nc:oidJ of the auk of the Superior Coud of Buru County, Gear.. and aD land rfahta pctalDlll, thento, (il) the DUc:Iar power radon, the tuxbln..eneretlln, the bu:ilcUnp boUlb:lI ~e ame, the Ulaci&teci.wdlfari. and tq\\1!pawat, &ad the nlated ~11 !ac:Dltie. all IS 1D0n puticullr11 described m' the AppUC&tiOl2. and amendmentl tbazeto, l!y the ~ Power ComplDY bef~ thi AtorDi~ EatriJ Comm'~ q,'

Dod:et No.. 50-4,24 aad 50-428 and lbl PteUmfnuy Sa!et1.A.aalyIit....pcnt, IIDd am8admmta thue&o, whjcb c:onatStutel a put oflUch AppUc:ation, and (ill) laftutoMi of matarialI, INppU.,

full, taoll and Il:lwpmcu for Ut In C::OMlCtion with Plant VOft18, proridld. bow..,." mthe event 'fol' any nuOIl Bondi are not lINed fol' that porUcna af thl ProJed dlllln&ted AI P1ut VOJtI., the tac::Wt:i.. ducnDed in W. I1.Ibpanltaph (b) shall not be

• pan 01 the ~lect.

(e)

Plant W~y.

A un puc:ent undMd.d interut in tn, *wo 866 MW noDrlnally rated. co.Hlred I'naatin, 15

unita to be mowa II tIM Hal Wanlley Steam Plant Unlta, Numben On. and Two, (lndlv!dually duipat.ed u Wms!ey 1.1n1t No. 1 and Wwlay Unit No. 2 Ind coDectively dillan&tecl u PWlt Wansley) to' be loc~d DIU CeDtnlbatcbl' !n Heard and Cano.DCounties, Geoqia. Indudl.ril for such uzUta (il land ct.lini!ated and daaibed In Geoqia Powu Company Map'rul It-&-1 dated Junl S. 1912, to be "cardld in the "cordi of thl Clerks of Superior Courtl of Heald and Carron

.CoUDtiu, a.aztja. wi all land r!&!ita pertabilnl ~ueto, (it) thl twbinl-fmuatara, &he bollcp,

. the buildJnp houainl the.... thl -tack, tbe c:001fnC fa.c:il1t1a. the Ulociated auxilWiM lind equipment, and the related tnnJmlsslon tadUtfu III u man particularly ducribecUD ~ In~

vironmantalllDpacl _tatlment m.tmc to Plant Wansley. and (liS) Invented.. of materlall, 1Up pili.. full. tools aDd Iqulpmlnt for ilia ill coulCtion with Plant W~.,. proQ!.d,J~owftlll", in tha evl"t for In,. "lIOn Scads an not _uld for that portion of thl Pro}ec:t dafanated.. Plant

. Wan.sJIY, the f.emU.. duc:rlbed In thlt aubpvqrapb (e).baD lIot be. part of thl ProJId.

(d) PWlt sC:hetr.

A tIP perclDhndlYidtd lntenst In thl four 810 MW nominaDy rated eoll*flred ICeratinl UDlb to be moWD u thlllobut W. Sc:bll'lr Steam Plant Units, Numba Onl, Two, 'l'btH, and Four. (Indlwhlllllr dlllFattd u ~e:wr UnIt No.1. Sehlrer Uult No. 2. ScI'Ienr UnIt ~o. 8! md Scheu UaJt No. 4 and coUectMly dulfnat.d u Plant Schem) to be located nUl Fcnyth in Monr~ CoWlt;r, Oeoqfa. lncludiAI far aueb uniu (I) land del1naatad and dac:rlbed in Oeoqta Power Campen1 Map Tile N-85.9 dated Declmber 19~ 1974, contaiDlal appraxlmat.17 twenty*

..Yell huodnd acru, ~ wit.h Ncb addlUona11and of approx1malaly tan thouund aeru Icqu!nd or to be acquind for ua ID COrullct:5oll with Plant Scbenr. to be recordld mthe record.

of the Clerk of Superior Coart ofMoaro. CoWlty. Geoqia md allllUld rlIhta pertaSniq'ther:eto.

(ti) thl turbfD...neraton, ~ boUem, thl bu!ldiJ\\p houIInt the am., thl nacb. the Qoolln,

!acil1tMs. UM' Uloc:Iattdauxm.n. and IqWplUllt, Uld the rwlaud tn.mmilRon fadlltia aIr IS

. mor. patlc:uluJy dllCribtd In thl CD'I1romnmtal impact datemen.t rala=- to Plant Schlru;and (IB) Jnnntoriat of matmlll, auppUa. fuel. toola and equipment for we ID CCDDact:IoD with Pl&J1t Sclieru, provide. b~wtrYu, In the I.ent for IIDY r.uon Bcmdf U'I Dot lauld for that ]lOltiOIl of the holld delilD&ted u PSant Scherer, thl facilitilj described In th1a IUbpuqraph (d).han Qot bea pm of tba Project.:

(~).Worldq CapHal.

WorkiDI Capttal required by thl Authodt]r durini coutnlction ot the Project md for the Plac:inl of the ProJed In operaUon for proYidinr Bulk Powu Supply, 1nc:bidJD1 SuppJ.eaurntaJ Bulk l'owu Supply, to all tbe hr'Iidpanu.

D. Ini~ TlmamIafoa FaciUtf~ Included ~ The PrOject.

nOM ~ f~Ua to ~. acquired mei* eonltNcted by thl Authority duriq the

. tiDll prior to the Commerdil ()puaUOIl Dati of the la.it of the aentratfnc !&dUU. ot tba Pro/let

• to be compJat.ed in order to mee' Ita inveatmll1t ftlpoaalbility durlDl such time m CODIlICUon with my apIIlDlnttOl' an mtllP'lted tnnsm!ulon I1SUDl to whIch the Authority ZDa7 be a put)'

In aeeoNanC:t.w.. the prondon.t of Seetfon 302 of thl Contract.

AddftfoDai facilitia..

Th. additional ~ti. of tb~ l'tojlct.hall bl thee. additions IDd improv.meDta to th.

electric IlDaatiOll. and n~ttd uanamillion fac:iUUu'anc! to the U~.mrutOD I)'Itcm fadllUI. of the Pro,itd proYided for In clau... (l), and (U) of Seetlon 102(1) of the Contnc:t.

SCHEDULE OF EN1'l'l'LENENT SHA.R$).

1. PARTICIPANTS' ENTITLEMENT SHARES OF THE OUTPUT AND SERVICES or THE GENERATING J'ACIU'I'lES (INCLUDING RELATED TRANSMISSION FACILlTIES)

INCLUDm IN 'mE PRQJECT The Partldpanta' Entitlement Shares of the output and ruvices of tb. pneratinr tacilitin

(!ncludfnl relatld trmllDisdoo fadlltfa) of the Project. md of the urv1c:a provided by the Authority in accordance with the prOviliolLl of'SectJon 308 of the Contract, shaD. for each ParllCipIDt be thou Entitlement Slwu lit forth in the faUowin, lc:hedWe; provided, however,

(,

that In no eyen~ ahall the !)ltiUemmt.Ma of my Puticipmt be Ie.. than that let farth In the foUowin, Ic:h~ and povided, l'urther, thG In thl e\\'lnt my one or man of the politfcal lubdlvilionJ Hatad In the fonowinc sehedule shall not IXCOlte

• Power Salll Contnct with the Authol1ty, the Entitll!mlZlt Shan, of the remafnkc PartJcip.ntl, u IUch Entitimnent Sh&reIare lilt !orth in each col\\1l11J3 of the foUqwin, sc:hedule, EDay be fnaeued pro rata by ID amount not eUndin, !Uteen perc:mt of such Entitlement Share, in order that the lUlU of the r'emainlDl EntUlement Sharu in.each of the !oUowin, cO.IIlJDJlS when 10.d~ustId.haIl total 1oa~ooow.:

EaU"__l Batlo..lIIIl EatltJ....t rllltlal Shan AI'"

lilian Itlw

!ilan Ute l:DUtl...t PInt I.e-'

'n..W Pntfd,lUIt Slare Allfubalft\\

..Ujlletant.

.M,uta..t 0.610 0.618 ADEL 1.418 1.220 1.162 1.1157 ALBANY

. 1'4.151 12,468

. 10.412 10.0411

BARNES'VlLLE.

0.8M 0.469 0.422 OAD

BI.AKEI,Y 0.981 0.969 0.SS6 0.809 TOWN OF BlUNSON 0.085

.O.osa 0.088 0.088

BUFORD 0.674 0.1551 O..MO 0.5" CAIRO 1.318 1.680 1.807 1.'1'72 CALHOUN 2.26a 2.588

'2.7&7 2.793 CAltILLA U.s 1.202 1.1M 1.086 CAATEBSYILLB 5.zrr 15.J16 5.19'1' 5.173 COLLBGE PARX 5.80.

U'7S 7.409 7.668 COJdMBllCE 0.760 0.Sa2 0."5 0.687 COVINGTON 2.&915 un 2.667 2.67T CRISP COtlNT1 2.&48 8.1M 8.369 8.410 DOERUN 0~129 0.12&

0.119 0.111 DOUGLAS 2.301i 2.640 2.807.

2.608

!WiT 'POINT

'7.&62 ACWORTH 0.,"

0.614 "

U62 7.101 6.9'1'6 ELBERTON 1.145 1.361 1.M7 1.380

. ELLAVILLE (loU7 un 0.298 O..so6 FAmBURN 0.5"

. 0.526 0.556

• 0.614 Fl'l'ZGERALD 2.329 2.'189.

2.aO&

2.M2 FORSYTH 0.J82 D.a79 0.967 O.s8a FORT vAL.t.EY 1.647

-1.616 1.562.

UN GRANTVILLE

' 0.090 0.083 0.089 0.082 GRIFFIN 8.600 8.080 2.984 2.182 HOGANSVILLE 0.331 0..301 0.296 0...294

,7

0-"2 0.51'1 0.499 0.496 IACXSON 1.618 1.601 LAFAnn'l'E 1.639 1.~

LA GRANGE 4J30 3..839 U02 8.198 2.082' 2.148 LAWRENCEVILLE U2'1 1.809 MANSFIELD 0.0151 0.03&

0.D21 O.OZ'T MARIETTA

~0.5151 11.&19 12.<<8' 12.688 MONROE 1.508

.1.422 UU 1.461 MONTICELLO.

0.317 0.884 0.898 0.402 MOULTlUE 2.989 2.986 US1 8.061 NEWNAN

.. 1.609 10US 1.681 1.1598 NORCR'OSS 0.583 0.'133 ono 0,841 PALMETI'O 0.282 0.29'1 o.32S 0,U9 QUlT)lAN 0.'147 0.'185 O.M!

0.580 0.'1'115

• SANDEllSVILLE 0.881

• 0.818 O.'l'lB SYLVANIA 1.'15'1 2.639 S.042 8.099 SYLVES'n;R 0.9((

0.88'1 us' o.m 1.299 1.216.

1.2aO TBOKASTON 1.21'1

. 5.'188 TBOKASVILLE 4.89'

.4.409

".am!

WASBlNGTON 1.018 0.99'.

i.oa9 1*982 WEST POINT 0.15&1 0.6<<

0.444 0.424 WHIGHAM 0.088 0.109 0.121 0.124

'l'OTAL 100.000 100.000 100.000 100.000 The Initial Eatitlameat Shm Nt forlh abOYe ahall be" the Ent:tti.ment Shan for the plriod c:ommmcin. with the Colllmerdal Operation niota of Hatch UDllNo.1 and mdfn, December Sl, 19'18.

Tbe EntitJemlDt Share Aftc F1nt Adjuatmeat shill be the Entltlemint Share for tM period c:ommencinrJaruurjl, 1979, and mdlq ~bu 31,1982.

Tb. Eatit1emeat SJwe After ~ol1d Adjurt.Jilent Ih&Il be the El1tltlemmt 'Shue for the period commeacinl ~1Dua:ry I, 1983, and ezuiln, Dl!cember 1l,198!.

'nIe Entitll!ment Shan After 'lh1zd Adjustment abaD be ~. Eatitlemen; Shar. f(% the peDod comm~clnl Januazy 1, 198.f, and endInr wftbtbe Jut dar of the lena of tbe Contract.

The Authority,' in accordance with the prcYlalCIIU at Section 811 of uU Contract. will MU a portioD of the output aDd '~u of lucb undivided, fnteredlm Plant Hatch. ~ Voitle. PlaDt '

W&DIlI)', and P1mt Sehere:r to Georp. Power CompID1 ID ICCONIllCl with Ibe foUowiq

~uJ.:

,8

1'__

• 11.,011 TIN Th&~Port!OD of thI PDWd B\\JlII)l1 Yu:r.

R..".f:ain; Attar the CorJunercIaJ Opvat!OIl 60.0",

Data at a Ullft ot the Ptoj!d

~ FaD Pawc SUPP}:r Year o

FoUcnn.n1 CcimmIrdal Open~on Date 50.0" Second Full Po~ SuppJ.1 Year FoIlcnriD.c CommerdU Oparatfon Data Thh'd Full Paw.. Supply Yur FoUcnrinl' Commtrdal Operation Dat.

1'10.5" Fourth Full Powv Supp)7 Year Fo~wtD. CGmmudd C)penI~°Dat.

FIfth Full Pawc SuppJr Year FaUowlq Comm.dJ1 Opent!oli Data 26.0" S!xth Full Power SUlIPir YUl' Fon~ Ovnmerdal Optratioll. Date S..UDth Fall Pow.. SuPJIb' Yur FoDowfnI' Commerdal Opentioa Date

'l'ban! ~ not be I11Y nc:iuctiollin °Entitlement Sham of the MdplNltl... n:IUlt of.w:h.

uJa at output and...,(ca to o.cqi.a Power CompillY aDd taCh Put!dpmt.hall remain bbl, fat ItI !\\aU EntfdemtDt Shce except.uch UabiUty Ihall be dilcbllltcJ to the utent the Authority reuivu p~t from GeOflfa Power CamPI'll.

II. PARTICIPANTS' ENTITLEMENT SHARES 0' SIB.V1CES OF TRANSMlSSION SYSTEM PACILlTIES INCLUDBD IN TBE PROJE;CI'.

The hrtldplllU' EntitlemeJ1t Shuas of Semce of'I'zlAamluiOll SyaWa hdlltia includld o In the Profed Jhall be c:ite.rmlDeci by the AutbozilJ dlUb2c each POlrlr Supply Yar in ac cordance with the prcvfdOIll of SectIon 308 of the Coutrad.

t 0

"... 1

rOWER SALES CONTRACT *

~ttJNICJPAJ. EI..ECTlUC.WTHOJ\\In' OP GEORCIA

. THE lJNDEI\\SlC!\\EDPARnC1PANT

,TM. S~nd,-\\mnIl1met.r uf C~lItnct. m:1c1~ :1nd nllcrcd in~ Ilol vI ~f:lr !S. 1iii. II)' lind b~~'L~ft thr

~lun/dpo1 E1c:ctri.:.'uthorlry of Ctor,1lI, a pubUc hod)' torpunli> ~d pcIl1tk and

• publf",eurporltklft 01 I.ho State or Ce:ur;b, h~ninaJ'l\\" somrllmu d.~IIPIIIMl u th~.,,,thurit)'. erC"ated.by th. pro\\illlJN of I Ca.

L 19i5. p. t<r.. Q.I am"ondcd, Illd the undt'rs!;nrc1 pulmcoJ,\\llldhiafun IIr lJlI Stat" aI Cmrttfa. l\\crrinllflcr

~ml'timd drs/p1Glm.. !h. Partidpallt.

WITNi:SSETH:

TH*... T:

HE it rt'D.etnb4.,ed that a.Powcr ~lIlca ~ntnct.nd 111\\ AnlClUbncnt, beth dated u D( ~Iarch 1. lr.8, h;a\\'C' b4.'C:1J pr~'\\io\\dly Clt'Culfd by and b.tw'C:1I tht.'uthorlty and the: l':iI't!dpant. and WllE:Jl.E,o\\S. the p;utj~.. dfJitt to arnrnd laid Umtrat1 In ctrt:llo rapm.:

NO\\\\' THEREFORE:

FDr and in collliclmtlClft or th*. premises and cl~ nlutuoJ cO\\'~nanU Ind IlIJe.mC!llb her,rMit" lit forth. the Jullidenq of which is hereby ac1tnowltd,td.,It I.e 'pcar by and b.twtell tlK' p:vtln MlIlI't.

u loUow'l Sectioa 1. Subieclfon 102(r) 01..uti PDWU Salta Contrad whum "PrQJ)OrtlOIl.Atw ShIW-fJ defined u hueb, deleted ID Itl eDtflety.

' Sec:lfolt !. 5cct1oa -403 or,.Id Coahtt is )'.r('lI,. dcol.tfti in Its entire~ and thC rolIawtn, new Sec:~a 400 r. lubltUuled ID 1!clllhu.cI:

• Section 403. S\\lpp1cm..,tClI Bulle Power Suppl)' Tw" B1 PutlC'lpun~. The Putfdp:Ult Ihzall t:lkl:

lU III Iu SUPfllcmental S~Dc Power Supply C~ the AUlhority and,Mil ~1 to the Authorll)r fa

,b:z~c: oCAnauil Supplanl:n&al Co.b let IIJrth 1ft thll Par1fclp:mt'1 month)' BllUnl StaltD'llDt u '

'cJ,etcrmIacd In IccilrclaiJc:e with Ill, foJ'tlOf", PFO\\iJloDi 01 tJW Artfclt J'" and, lU~d by tile' AuthOrity t4 the Partlclpnt,-

SectIoa 3. Sald Amendment shall be: el/e(ti\\O, tor "cll p~rtfc:lpant as of the time or the May. 1m.

me"'r readln **. Th. Authority II, flQ\\yCl'rr. luthoriuld to ma" ~Ialltraerwr l:om workr". Qpit:ll lor "'"

p.rluc1 (roul Fc.bnwy 7. 1m. tu the c:ffl.dl"l' dale of t)a[a Amend/aeat \\0 all'Rt th. IIIIOUQt In' wbiC'b t)a.

tab! 01 :lnY Particlp:ant'lIlc:tual b1IJlnp dll1fn; Ju~b ptriod bcrcdtd what \\lI, totarolnadl bliUnp wovld.

.h~~' bera undtr the WJ\\.g rate...ald a~IlIStmenu III II(,. COS,l 01 power nwlr de\\..lopmcI1.

SKtioa 4. Sald Contnrt.h2U rematia In luU rorew =nd,tHect AI herc£D AmeW.

1

• ..I~.

'.":~****~*..**:*~~*1~\\***

.,.('

e"

, 'IlIIRD AM:ENDMENT POWER SALEB COmR.AGT DEIWEEN MUNlCIPAL EI..ECTRlC AUTBORIIY OF GEORGIA

.AND nua Thfr4.AnI"',,1 of Contract. inaGI wi tired !n1D u of F.bl\\WY f, 197', by lAd !lithIA tilt

~p" EllCtdc Au~ty, of c.orJia,

• pubic body ~:PCl1&1 UId poUdc laid I'publlc c:ocponlloa D.~_daa Stata'of Citoqla. harduftar.amltfmu d.nIptt.4 II !h*.Authodl)'. C:~liael by dMI prcwIab1I of,l a... 1-1975.

p. 107. II amlDcl.d~ IUd lb. UDdanlp8d poIttbI aubdhWcm 0( tbI Stall of Gecqla. JMrdD&ftcr anadnlll

....tId II tU luUcfpw.

WITNES SBTH:

'IlIAT:

'u It nmea1b1nd that,' 70tlllr SaIl. COAUIcI lAd..

AmndrIIeDt. bam datM.i 0(1IaQ 1. 197151and *

~01lCl AaMn4mct dltlCl II or WJy 45.1977. hU belli prnfOlUly &UC1Itlcl by aad bcMeA tU A.utho~ lAd tII.t Puddpat, 1114 WHEREAS, aaJd Contnd contlmplatu that 1I!dJ~ plOjldl may b. ~ by ilia AII~ to JII'O"

.u. I partloa 01 the*Partldpuat'l bllDc power R4illlralwatl, ma llllilow dtemlcl ftaIII8 IIlIlllalrabla by till l'uUclp_ ID4 tbt Authcdty thIt tb Autllotl~ ICqUb addItiaDll pMftlfa. capldt;y Ia pnMda a portl~ of

~~~~

WIIEJULU, till Pctfdp~tJiu dlllcmlnad to.D1Ir IDCo a hoj.ct 'I'wv PO'WU SaIu Caa.tnct of..,.11 dall hanwltll witJi tII.t AuthOlft)' III on., to.Dlble

• Authodty to IIIIIf JU mava boG. tID pq dIa co..01 ~

~ IIId couWctIaJ PIOJ'~ Two ral.mel to below mel tG ulbJ. PU'lfdplDt UI rac:a-aatput IIIlCl _lalld.

.me. 1toal1lajct 1Yo, IIl4 Wmu.u. it.. qc~ ani 4aftabll 10 II1ICG4 thI..d POWl( SIn COIitzKt, caulatat widl tilt Bod JWcbHSaa,' to ULlbIl au AUIhoria, tG lltablllll Rial mil ~.. JI dellrabla. to recGWt CGItI aa

• COIIlbiDId bull tar Sapplmlatll DuDt POWII SupplY aad d1a oulpllt IIlpplJad rrem PrajIct Two IIId urit\\lfum 'projlctl rill' wbIda I'IltIdpuIt may GKUII II COA tract; u4 10 In,b_ the Asathozity Co 1l'\\flII.ad.41lbull:lnllCtlo" with JlIpICt III 'the ~t and.Mea: aClU ProjlC1lhemllLdv.

NoW 1'Bl!lU::f'ORE:

FOI" &1Id III COIIIldItaUal oC IhI pmnJu. Illd thI lIIuUI&I C~.1WItlln4 qrttmeJIbb.enlDaftlr _t forth. tba iU1lSd1llCy olwfl!dlll.uraby acIalo...llitpd, II 11 qr..d ~ &Ad ~twMI) fA-partIu ~rsta u relawa:

e, kc'dml.l. ThI ~ Salu CcmtIul, 'All UllCI:I.Ild. b ~rcby C\\I:Ihu ~ by &4dfn& It till ~c4 olSol:dan 1<<12 the faUowml4efilllitioar:

(1) ~ Two".duIl:.nem the Authmily'. _CAd prapet co.o.sfIt1!tI of a.dd.itlollil 'UClfrided uUCled!

fIl-]I1m'la "I'Imi1lIy W ScMm,~d pna.!lIII'lt to

• aptS_ ~t 'With GNlqi& Fn8f'Cca!pmy "tad II of AqUlt 21. lP16, III ~d.'ri!d. project 11 duc::1:ibt4 f.u Sec1fo1l, 102(1) of the Pr....t Two 1'0"IIP8: Ia.IQ C=~

(y) ~ Two Powu S&\\q CClItnef' s!WI 2UiIi that cartafD ConulltCt datIld u or tluI dati hmol 06 tw... tM Authority w the h.rtJcipliat IItb _umy be ~ from tfmI to tbI,l'CI&_ to tba p~

ofOI.Ilput lAd _Itad.NIWflom PrcIjKt l'n to It!.t hnidpmc,'

~l. 'Ihi PoWIf SIll. CoD1nlCt" IIlI IJI1indld. Ii heftIlY tw1.tw ~ by dlI1at1n1 Stc~ 401 1Il1u latktty mel IUba~t1Iti'Iaabau.u dw'Mftb Iollowfq An Sec:daa 401:

40!. SappJQDQ£iII1W'Ir PO"II'V Supply ~ liT dI. Authodt,y.

'Ib.8 ~ wm p.l'lMd41 ar 1: to b. pro'¥ldll4 to the pilltJdpl.1lt lu Slippllmlcltallll* PftIJI, Supply cluriq ad! mud! or.-."OMr Supply Y.ar. Sueh. Supp1tmmtllll Jutk..Powtl, Suppl;y ~y..

cJ:ud~. lI\\lt a..n not,b. Umltad to, partW w fWl n~1I ih:m,Oft. PIlrdwM,. mdud POR' RMCII, film Wllon-!!m ClIpldty.d 'Utty, rcM:" t.ru\\mlIUIOli IIII'*' (!I1I:.lwII'q ~

"IIIIIl'I'IC1 pu:chuld by tU Auth~ 1o.IIi,plerunt thAt Pmfdprmt'a Ead~t mw. o( ~

l8I'riClIa Fnmad by the Amhod1J from lb. u~OD I)'ItIrD Cdlda IzI.d:uded to. tAl Projlct) IIBd other mtaJdl&qe..met I1UII1I ~1II III IlL lIIsWt of ~ClU Mth other 1rtI1I,tlu.

Sledd 1. nw PoRt sa.. Con1.rlliCt, U &mUU" II Mnby AIrtlIlRI i.m.Mdlcl by ddst/.q Section 402 In ill

_draty IIBd ru'brtltlltmiwiltu tbmof tU follo\\\\liq I1nt S.ct:lor& 401:

• "SutfoG 401. Jlitd_ Oal.dor SappIIrm.t&J Bulk Pn>e Supply.

(I) 'Iht Authority IDlY combine Iht Annual Supplmlll.l1t11ll Coltll with thiUlDlld e06tI oi.y t'utlmi plOjllC~ II~ by !hi Audllld.ty, 1ridudJn( Project Tn. lor whkft 1M PutkfplUlt 1w Uccuflld

• coatnAt for' UIa output md ".4..~. dlanol, (or eM JlDzpoII ofuu.hHshbll d. ad c:f:wpi, or tU ~IDaY II~ for 'IIIlI1 01 mda CDit&. Ot cemblnlf!cA thereof.lrlJlUate mw md cb.tqa. tt eM dJlmdOD or Ib.a Authodt)'. in IIJtbu CIIIII 1r1.~4mI;e with d!.I prOtWQI1I of s.1Iaa 402 (/I) bIraol.

(/I). 1"b.8,AutllO!ity

'-1!IIh md II'I.llatein flit Md lI~tory mWi mit1:.b..upa 'IfII&IdI Will pronde I'I:YWI~ t.hllt IJIII II\\Irtlclml, bllt oo.Iy IlUIndeDt, to ply UIa A.!wJd Supp~ Ccm.

whEIMr Of aot web COliS IJIII ccmldMd 'Irlth the IWIIIIIl eCIIU or In)' i\\ltlaN plCjKt.1Il.1I:Idertll.bu &)' tba

!>ulhoril)', 1BdudI.n.I,'mject two, for O'IItpUt eel.mcca of whIdl the Pa.n:fdpw IW UIlCUUldll clII.I

~.

(c) 'Iht Au1bodty Wl1 ~,t.h4 Putk;fpant II -= IDonth dl.lMa ach 'OWIr SIlppb' Yilt by pfl.'Md.

.. the PIU1:IdpDt 'Irlth "II, Il1Uq Statmllllnt for suc.h muth 1r111!COnkac:c with tM dIU wtchar..

"embUllb.d pYmlmt to Cbt {OlllJOm. *,.orWcw 01 this SclCtiOll 402,. hi Su"s-.ataJ hie Po'lllrc.r Supply. Sud!. maathly BIlI.IIsa StlltlmlUll 'IIIiIr incJuU II mdlt fot sud! dIU.,. point ~

ladlida U IIJ1I r.ttnICd, fbuDcad or ape;'l111 by the Pl.I1idpmt. Sucla BlDlq S~atf:ment ahall btl paid hy Putldp~~ en or Wen the _til dq hom the tim ofwell bII. AmOIiAU dull "11.01 plllld lIy the J'ardqUl1IIt 011 or biI(on PId Ula lIball l!w D IIddftJOGIIl dwp of OM..~(1.1Jlti),neat per mOlll.th (ar.KIa IDOIII.Ib. or I!ractiaA dlusol, 1Iuti1 die dOWS! !Sua II plid ba I\\IL At 1M Md ol**

}10M' 'Supply YIV. 14iIlllClleDI; orb** ahaII be m'" m,"Ot~ wilb 1M ILlrcrlslo.

209 hanG(.

(d) 111 WI nQ\\t Ib.at,die Authodty uLlllill.lbea raw IIId charp. puiaumt 1:0 kctkm 402 (1I) haita(

1:0 J1ICOYV. OIl III comWud bub" Aullal !uppl.emenbi r.:1:IdIIL awS mmlal COlita 01 my tb1:We PIO~

i.WIIInakm by the Authcdty, ~I project Two, lot tl1I. OI.RpUt IIBd an'll:llt af which lb.1 hitId

,ui lu allCUtid

• CCIltncJ., the AuilaGritr wII Idnlily G1II the IIDlIAI Sla'lllll1lll<llll cabmitUd ~ ilia AIIthoricy 1:0 the.Pvddpmt INIIIUIIIU " See_ 402 (e) Mtllcllbat IIIIU3wt or.. NfI&I'1\\Ifl to 1:1.....

Clmllll1 the Authority _

tile lllltldpllBt JNl"llllUlt 1:0 SIICb lUI' rmd I:!wau dlillt I.a allocable to tha

~Il! or rI'IOl'1t1!1T Amun.! SUppJ.em.aw Com. Sw:h lmoull1 WIll bl1be IPUUU UI 'be NUived 'by 1......."

J"~'.'

.' ~':'e':'

;'~, "'. ""-41~',

'~ " ". ',: ' ~"

tb AQdlcrlry lrara 1M PartJclplftt IIGI a1Joatet! by the Authority 'ollie payment of co." or lIlY aId\\

fuhl,. pzojecb,VJS'I&at to the eOlllnc~ rcJ&tlI\\l 10 tilth projccu.

......... Th. P~r SaId Coatrxt. u amended, Is MUll)' further arncnd.cd b,lcnllmbirinl plneftl Section 1 to"s.cf.JoG,'Uea), lAd alfcf1q IDCW ScaJcn 311Cb)t'llcad a follows:

"(b)ne Allchoril)' mJY.also "tIlIe. sell. and cxcbl.l1J1 cJrc1ric ClpICilY III~ CDCfJ)' rrQfts th. Partici.*

,111'" Ealflfl.ellt Sha.r. of Pr~t OM, wbenner, ill III dlJereJfon, any sudl tRftIICtion ~an r~JSOnab1y be apoCud Ie......' II. more rcJJab!i' OJ ltonamltiJ DYeta1l Bulk Powa Supply 10 the PatucipanU.

DI and1:tpdc4,J'OQCdt rlOJD IUCh

• or tran.cUonIlhalJ,lo em uunlpnctkablt. be adrnaucl in*

the AMus1 SyNal Judpt and any lilt mcallCilCluaZl1 received by che Authorili.s * ~tr oIJUdt

,~ IbaU ~ Ct\\Idlaccl to N ~an(1 EDdtkment ShIre Dr Anna&! l'r*,l CO$u,under' tnc

,,~owu'~c. CoIl~*

~ J.~'ConlrlC\\ lhaJI ~afzt!n (uJI toru and cJTect II hesetn Imendld.

IN,Wl'l'HESS WHElU!O', Tha NueJdpll EJ.cttk Authority a rCcorP 1114 the Putidput baw Q\\lJC~ cJdi td AmtIIdmeac bf Conbla to bit QlQIkd IIllhdr '~rlc.c lam" by dulr 4twy I"lhoriicd offic'"'tid u*ccupOraU uaJa to bllslmlJllAt Jraprcwd and IU.Itc4. 'all or&be dar ~ )'nr &it abavc wrlum,'

MUNICIPAl. £L.ECTJUC AunJOJUTY Of GEOIlC

FOURTH AMENDMENT POWER SALIS CONTRACT BETWIEN MUNICIPAL ELECTRIC A.UTHORITY OF GEORGIA

~

THE UNDERSIGNED PARTICIPANT TbiI Jourtll Amendment cd 'Ccmtnct, In&c!e and entered. mto.., of ~ I, lDBo, bylDd h.twtC the Mu.UIc:1pal Electric Aathartty at Georp., I public body corporate and palitlG and a public COrpoUt!02l of the State at Geor~a, heremafter IOme~ del1lD1W4 u the Auth~, ended b, the prov1J10111 of 1 Ga. L.lm, p.lar, U axaeded, AD4 tb. UZ1dmflDed polJt1callUbdJ~ of the State of Oeorafa. h.:n~after som.tIm.. du!lD&tad as the part!d.

pmt.

WITNXSSZTH:

'1'IIA1':

BJ: It nmembued that a Power Sales COII.trut and m Alnendmc.t, both dated u of March I, 1818, a Sec02ld AmlDdment dated ".of 1UJ 20, 1m, Illd' I 'l'l:I.Ird Amaldmmt dated J'ebruar7 1, 1W7a. han heeD prmCNlly.XlCUted by &ad betwem tha Autbarity u.d the Pa:rUdPQt, aDd

. 'Wl!DEAS, th. Partldpmt md,the AulbDrlty haft detenmDed., tlIai it u m tlllir best Jnteraia to MIl the Authorlij'a 1l!1erutamSch~er Unit. ?:hr" and Jour maach of Proj.ct-<Ale.

md ProS.d Two and to acqaltt Iddltionil "nar.tiD, Clpadt, '1U~tlt117 equal tl) tha

.iJ1wat. io IOld hi ICCotd.a.ace with the provfdcms of the Project nr** Power Sill.. Cantrlc:t entered into by the Plrtldpmt aDd the Authol1ty u of the d.lte of th1I Am..."maatj aDd wmr:a:&AS, It fa necesiu}t and dalnbla' to amed the uJeI POWII' Silet Ccmtract, con a1Itclt With the BODd Reloluticm, to (I) rlddl.Da tha Projeet ao' u' to exclude the Snt..1tI fz1

. Sc:htrllZ Unit. 'l'brH &J1d!'CNl' which an to be dJJpaHd. of by the AuthDrlV, uu! (U) to rm.e the lChedul. 01.alu 01 output and IG"I1cU from Scheru 111111.1 On. and Two.

NOW nIEREFORE:

For aDd 1D ccna1dant!on,of the prem1ses and 'tha mutuAl coven.antl ad alfaemea here ma:ttu: aat fGrlh. tIIa W1fldcnC'J' of whlch [I bereby al:knowled,ec!., it 11 ap.d ~ and b.tw1lD.

tlua putfu ~.. follow.:

S.ctfClll L 'lbe attadmleat to t1III POWII' Sala COJ,lu..ct mt1tlec! "DESClUPTION. OF PllODCT"; u amlnded, 11 lIuebY, further amended by dd.tfq HCtioA I(d) ill 1.. mtirety and

.uh.tltuUq III Uw thereof the follow1D. lldiaD I (d) :

-Cd) PlaDt Scharer.

A WI p£emt unc!!vidlCi mterest in the two 810 MW nCl2:l:lflW17 rated coal-find ICleratina umta iQ be bawn... the Robert W. Schll'tr Steam PlaJlt l1idta,' Numbers On. ed Two (m.

'cUvUulll1 dulJDlt.d AI Sehenr Unit No. Oaa Illd'Sehenr Ullit No.. Two) to be locfted Alar I'orayth in'lIQIIl'oe Count)', Geor".. inc1uc1tnt ~oa"' IUd! \\mila (I) lmd dlllDe.ted mdd..

• "!bed m a.orJ1a Power Company Uap Fil. N..as.e dattci December 18, m~ eorrtab1Jni 1

IIPPTox:i.r,Qata'1y tIImty-pvq hW'ldred lens, to,etber with ruM IdcUtlonal '1.anil of appro:d matel7,. thouWld ae:ra aeqmed or to 'be &e:quinci for usa in ~cm. With ~t Schulll1".

to be reecrded iI:l the rlleardi of the Clerk of &lpe.rio:r Camt of Mama C~tyt Georpa mil all WId rlpb pe~, tbueto. (11) the turb1nt-ZIllltntm'&, the bo!len, the DuOOnp houalDl the WIle. the Itacla,1l:Ie cool!n.lac.WUu. U:liIa usodIW 1lu.z:ll1aiu I.11Cl eqmprntIDt,.

II.Dd. the rlllliud ~0I:l fadHUu all U m.ol'lI plrilcWulJ daai.bed bI the enviromnmtal impact. mttm'lut nlat.t:n. to *Pbmt SchU'U',.(W) mvmWia of taltcWB*. INppl1a" fU.:I.

toolII and aquipmmt for '!1H bI ~ct1OD with Plmt Sdlent, and. (tv) an amoUDt IIqul to 1i.0

>>vcent of the =m;mollladlitla of Plant S~."

Sec:tlCla I. The attuhmmt to the PC'ft'i Sale. CGnirict entitled uSClIIDtrLJ: OJ' EN

~ SlIAlU:S", a amended, 11 haraby further emilllied b:1 delet.lD1 Plant Sehe1V

'm=.the lChIIduIe cd._ of output and.C"iIa_ to GiW'P POW'll' Compu1. m4 addml I Dew lIcli.edule of ula of output IIJ'ld sU"Vieu to Geo:rlla Pcnrar ComP&D1 from Schuer Umta ODs uil 'hm u loJlowr.

"'l'hs Authority. I.D Iccordmce with the proviliOlli 01 Section,311 cd thll Contn.ct, 1DtUldl to Hll II poriillft of. tlle output IIlId _~e.1 of the P:cjec1 ~ a.orPa Power CompG1 11:1 IIC cordance with the follow1q'aehedule:'

P~C"

~.::ol~

Gdrp..:rlll'llt'_,

~

'l"hat PorUcm at the PowC' Supply Vea.r

Rc:Iain1l!I Afta' the C~rdIl Openticm Dilis of ScherIII!' Units ODII! or Two 10(1.0" I'1fd hllPowa-SDpply y.,.

lI'ollO"lliD, ~ Opulltfmt Dllte.

Seco= NlPowIII' Sll~Ve"

'J'ollewm, ~ OpuatJoD Date 80.0"

'llIJrd J"WJ POWa"Suppl;r Vear J'ollowi.rLg ~ Op!IIn.tfoDDate

'10.0",

J'ourtll Full Pow. Su.Pp1;rVa:r Follr:nll"b.lr 0:iI:m1w'd&l Operab Data

, J'ffth:rwI Powa-Su~p1y Yu:.r

ronC'W'l.!l, CommIlZ"llial OpmUoD DatAl!

50.1),.

SfSth J'un Pcnnr SUPPl:' Ye.v JI'ollClWf.u, ~ ~tJonDatll 40.0" '

SlaVeDth :run Powa-Supply y.,.

J'cllowm, ~dal OpuatJcm. Dat.

Ef~thF'Wl POWIl' SumVar Nt:IWJ.'q Ccmmll'cial OperatioD Data NInth J'Wl Pawa' S'I.ZJjIJ:Il;r'TIIlU'.

FolJowm, Ca:nmm:W. OptJOD Date "

10.0~

"!'.he Aut:horlt,yll:l:lll,.. in ftl dhc:nti=. IlltabUIh CQDc:lWllv. commvdal operation datu fo:r units of the Project tor tlIe pwpo.. of th. fON,., achedu1Ail ane! II\\I..Ch dau. ma,. be dJ.f~

fUUl.t t.rom thClIL Commercial OperaUOD Datu e.t'a'bllahtcl iz:I. aecordll.l:lft with SlI!4:ticn 102(1) of the Contrllct. Thill atlbl!ahmmt of lA. fo:r.oiDl Khedw. 11 DOt mtmdlld to Umlt tha power of the AI.I'tborit,r rnnfed 111 SaeUcm 311 to _n ad excluat.Il& power and mUD f.rcm tlIlIl Projeet.It,

2'

IN WITNESS WB"EREOJ', Tb" MunfcJpal Elecuie Authorlty of Ge<irJia and' ~ p~.

PID' have ca~ this Fourth Amendmint of ConLr.c:t to be uecut.ecIln their eorporat.lW.'lu '

br Lhd:r d'wy authorUad officlZ" and thdr corporate ~uh to be hereunto Jmpraseci and..t taWd, all of the day and )'tar ~tt lbav,' writttD.

MUNICIPAL ELECTlUC AUTE:OIuTY OF GEORGIA

1_

FIFl'H AMENDMENT BETWEEN MUNICIPAL ELECfRlC AlITHORlTY OF GEORGIA AND TIm UNDERSIGNED PARTIaPANT

. ThiJ F"llth Amend=l:lt 01 ColltraC1. made and entered Into u of NC'f'CUlbcr 16. 1983, by and between the Jdlu1lcipal !lcctiic Authority 01 Georpl, a pubUc body corpon.to aDd poIltic and a public

. corporaUoP of thi: State of Gcofllll, hudl!.llw sometimes dai.utcd II the Authority, c:ratcd by the.

provWona of 1 Ga. L 1"5. p. 107. u amcn40d (Title 46-3-UO O.CGA). ud the uaderallud political &ubdLvldon 01 the State oIO.ala. hUII[nt.lkr somct.ir.na daipatld. ILl lbe Puticipe.nt.

WITNESSETH:

-'BE it remembered that a Power Sales ContracI IIDd ill AmeAdmlllt. boda dated. ILl 01 Mud11, 1916. a Second Amendment dated. ILl ot May 15. 1911. a Th.itd AmcrXfmlilDt dat&:d Febniuy I, 1911.

lind a Fourth A~!!daaat dated May 1, 1980. un ~WJ. prmoUlly w:cutcd by aDd bet."ee. I.bl Authority aDd tho Participant; ~

WHER.BAS. the Participant alKllhc: Autbority have dctcnniDmd thai It is ill their bat interata

. that lhe Authority mtdutab a t~ projcc:t. ha accordance wllh the prcwiliou of lhe ProjDCt Four Power Sill. Contract enten:d Into by the PartJdpant Ibd the Authority u or the cbItc& ot tl:&1I Amead menta which is rasOIIabIy expected to result ill a mon economical arenll Julk Powu SIl1lP]y to the hr'Jidpant ad olbu politiwaubdlvblcw COI'Itracem, vdth the Authority thuc/0f'1I by mak:i.B,i the outpat u~ related sun_ of.Project Fow.lftl1ablc to the Partfeiput, u4 by cmabl.!nl the AUlberity 10 RUtIJlIe cmam uJlIt.of tha cmtput of the frojeet utd ProJKt FoW' to other' I.ltiBtl. wldch iJ iIItCl:ldc:d 10 Improve ftI'bItImtllllJ.y tho matchJnl ot thl output 01 both the Project and Project Fout to the Pudcipallt', Bulk Powv Supply rcqWlllftWlh; ud WHERBA!. It b TlCCIIII.Jal7 and dulfable to amend the Ilid Power Sales Contract. c:ondatc.at with the Bond Resolution, 10 u to mise the schedulo 01 wca of output ud w:vicea lrom VOitle Unit No. I and Vo_e Unit No.1.

NOW'l'HDD'ORE For !lad In COIUldcrat.lOl'l oft.h& prc:miJa and i.e mula] Covelllll:l'ltil.iU1d lIal"u.trlCIItI.hcreiufter let forth. the\\. Il.IfJicimlqt 01 which 1I hereby Iccowlod.ed. k iI qrcc:d by ud bctwCQ the puUa hereto that qid Contract is tu.rt.hr amended IU tollOWI:

Sullo.. J. The -Uadllneat to the POwer Sal. CoAl.rac:t IIDtltled "SCHWUl.E 01 ENTlTl..E MWT SHAIlES". u amadllld, II hereby lurula" amcuded by dcllltiq the reI_" to PlaDt VOltlc from th!lllchedwe or n.la*d cmt~ and.cmc:q to Georlfa Powu Company. aDd addiq aDn aclu:dule ot salQ of output aud ~ca to Georaia Power Campany &om PllIl1t Vo.. AI roucrwl:

The Authority, In "CordaDce with the provilioll$ otSectlou 311 01 the Pawer Sal. O:'Ilur&ct. as IImIDeled. and subject to the pl'OYiafon. of the AjYln W. VOIt1e Nuclear tmits Numbcn Ofac acd TWo Purchase. AmqdmCllt, ANipmellt and A.uI1mptioll Airamcnt. dated u aI Nowmber 16. J9i3, bIIItweeD Gct1r.ia Pew... Company IIIlul the Authority,,lJIlcuds.to.di 11\\ partioll of'the output and

.ervicq or its ProJect Ow: OWDVIhlp enlhJamcnt in "ollle UDJts Numbcrl One IIlId Two to Oqqla Power Compu)' in u:cortluc.e wiU. tbe lallowm,.chodule:

• e "A. AI to 1135611. of tha output wociued with the Al.1.thorilYI Project Ono ownership entitle ment in VOItlc Units Number. Ouc and Two, ~ud! WeI shill be u foUows; SO.Oft

'SO.OJ 37"S1I Fourth FI.I FoUo'llll'b\\.

Dacc

~.1)i5 Firth pun FoUo'llll'm.

Date 2'.oIi Sl:th FulJ Follow.

Dacc 12.511 Scvath Full Powa'Sl.l FoUowiq Consme.rdal Date 12.'t5

, "D. Alto 1.34'$ or the output wocIafed with Alltllority's Project ane ownershIp enliUi:*

ment in VoJtle vatu Numb'era, One aDd Two. web lllla to C3l1Oqii. Pc~e~ Cc 100IJIi cllh4l Ol.ltPUt ad wvlC&l bqiD.lllnJ with the Commadal OperadOli Vostle eel continuiAl IIUtii the 1UId.' of the fOllttMllth M1 Power Supply Year followml the Power Supply Yur ira 'IIII'hidl the C~aI Open,tfon o~ncb Unit CC:C1Itt.

"C. AI to 14.'19'1 of tho output woc{a,ted with tho Aqt.borlty's Projed. One ownenhlp entitle ment In VOIUe UDits Numba1 Olle &.all Two. rw:b ala to Ocorlia Pawa' ComplOYlhllJ bel equal to 100" of tlie output aM saMcu beaJnnin. witb the Ccmmudal Ope.radGa date eI.. Ullit or Pllnt VOltle.1.1'14 eall ccmtlAue uDill thllatcr to 0Q:II.f of (1) rcwcmcat of suCh-UaJt. or (il) tho flrit to OClaIr of the (atm dati allied tor &Jas payment of th. prlDdpaJ or Bon. 01.' cl proYiIkm beiq made tor IUcb plymUll rll.c::cord&1.'IIC.e with Sac:1ioD 1201, 01 the bd Raoll'troa.*

"D. The umbtilhmc.nt ofahe forqolnl acheduk is net intadcd to limit tlle power of the Author*

ity It'lnted in Section 31 J to,ell Ilid Uchfl.nle power and eMfI), frem Proj= On....

,SeedD.1. The: foU.owmllllw sec:tlon to be :mown u "Section lU" ill hereby added:

"Section 2U. RUIlIe CO'f'mut.

Th. Partldput Ilrnl that it will not. wIlJIINt the: upr_ wrJltcn COMClfI.t of tbe Authority. cater uno I.IIJ eontr~ pUrnll'llt to which II nonuc:mpt penon aFe~ to take, CIT to tU:c or ply tor. power pureJwe:d from Project One. Fer purJl<ll~ of the prccedlill aenf.el:&C8, "noDexcmpt penon" Pall mAUlD lillY eatily whld! b not tho Ullitcd St,at-. tho Dbttkt 01 Columbia, or iny poUtlca1 subdM.doa thereof 11 liot exempt from tllXatlon under Sectlon SOt of the Inte.ma.l R,venul code 01151.54, u amlnded:'

z

IN WITNESS wHEREOF, llle MuniciP'l ~c Authority o( Gcorpa and the Pt.nlclp&Dt I1ave ca",cd thiI firth Am~DdD:lCDt ot Contral:t to be ~tci In their ccrport.tc IllInC1 by thcif duly,

authorized officcn aDd their corpo~te.caII to be huCUDto imprCSlCd IDd atteated, all of the date Uld year.hlt abovo wriltcQ.

MlJNlClPAL ELECTRIC AUTHOlU1i' OFGEOROIA.

Appmvcd At To F~

BY:

J.:, 'h ")):)o..oOt --,1'___

Cbairmu:.(3 A IT: ;(; "'.,); 04&>= <

Secrcwy*Trcuuru.

ApPf1)vcd ~ To Form l

. This Sixth Amendmtlrlnt of Co~tract, IIiI'Ii!a and ezi~ into as I'.lt Ja.nUa.ty 1, 1986, by and ~twean t.he M.mJ.cipal n.:tr~c AUthOr!~y of Georgia, hereinafter sClMt1meil referred to &I tho AUthority, 1.#.1:a.~~Q by the prov1dooa of I Ga. L. 1915, p. 107, as subdivision of the State I'.lt 1,iIIIIII;~,UI

~ I '1' NitS S B '1' HI BE

.r~.d. that a Power Sa.laI 0Jet.ract Md an AIrltnd-.

nant, both &Ud u of Marc::b '1',1.976, a Secane. ~nt. dated lUI of May'25, 1.977, II ~rd ~t,

!'e.bruuy 1, 1979, a rcurth ~

JIlIiIIlt dated Hay l! 1980, aDd IIJ. :rUth AlmndIamt:. dabld as of ~r 16, 1983, hava all bean uec:ut.ed previCllS1y by and bet::lorMen tha ~ity ana the Par:1Ud~psDt; and WEERBJ\\S I the City of Oxford ("Qxf~") tlbich hal pt'lNiwa1y.

whclelAle ~ Illpply from the city of Covin~ton bas ragues,ted.to bec::me a Participant, and

~, it :U! 1n the but interests of i;he l\\:uthorlty, the Participants and Oxt,ore! tor Oxford to Oeo:ma a Plu:tici~t upon the

~...

".~

e*

For ana in co~!ideration of premisea and the mutual

~t.e d agreemm.\\ta he~.!nafte.r set forth, ~e IUfflcle.ncy of whleb b hereby ~ckna.r~Gd., it; is egreed by and be~.t:he partiu hm:eto that said Contract

~ u follOWliJ:

.to make such o:mtract app:Uable to OXfard, and to pravic:le with l..............,... Shu*.of 0.1911, and an approprh.te 'l'nn.smiuion Entitlement Shu. calculated 11.1 accordance with 308 of the

'.the' A\\lthw:lty i. IW.thor.h::ed ~

a.

of Oxford's Entitlement Share from this Partic1..PAI'Jt'a Entitlement Share pro rata with the other approvinCJ' thls Sixth

~.

Section 3. 'l'his Part~c1pant agrees to ~ti.mHt obllgated for itt fllll Entitlement Shue withollt daal.i~tion foJ::' the PJ::'O rata partion usignee'!. by the Al.1thority to OXfp,tdz ProYldad.~, that*

the ~ity hereby agreeS tMt it will take all necul!I&J:y action to

. enforce t:lle payment of all 81J.IlIS due by Oxford foJ::'

lUll! this Partlc!p.mt shall receive credit for ita pro ra~

s'han! of IiUC:h ~ta.

'!'hill 1!I!!eDiblmt _ball ~ efffil!Ct.iva ~

such ~t I:I.1!w been apprOYlllld by Participants whos. 1~85: '1'ranllmia

Prov i~ed, nowever, t:.hat. t.be AUtt)o"ri£y may.4 make service to C?Xford ntroactive to January 11. 1966.

IN WIl'rm5S WHEREOF, the Municipal: Electric Aul:hodty of,

Georqia and the Participant have cau.sec1 this Sinh ~ndment. of COntract t.o* be exeo.rl:.ed in their, corporate MID!B by their duly aut:h;)r lIed ~ficers and theiJ: 'corporate seUfI.~o be he.reunw inlpresed and

,'at.tested, all as of the data and year'first abovawrittaa.

Appt"OVed As to Fom '

~&~

~;" to """'. ~

v ~

SEVENTH AMEHCYENT

\\

POIER SALES CONTRACT

'WNrCIPAI. ELECTRIC Al111iOAlIY OF GEORG'll.

M!

This Seventh A.lundment of Contract, made and,ntered Into as of 1.b.y 31, 1989. by 'and between tl'll Munl ci pal Elac t rI c Author I ty of Georg i I, II publ ~c bpdy corporate and politic and II,Public cOlp~ratiol'l of t~e S11ta of Georgia, hlrel naft~r soaliltil7ll1 reflr,red, to &I the Authori ty, crelt,ed by tho provisions of 1975 Ga. Lawl 101, a& amended (O.C.G.A. § 46:'3-110"

.L and the undersigned political.subdivision of the State of Georgia. hellinafter SOtilthlU 'd,slg~ttd as the Participant.

WITNESSETH it remembered that a Powlr Sahli Contract and ~ Amendment, botJ't

,: dated al of Yarch 1, 1975. a Second Amendmtnt dated 3101 lIay 25, 1917. a Third Amendment dated II of february 1. 1918. a Fourth AmendlH"t dated as of May 1.1980, a Fifth AII.Ilndment dated as of NoV_II 16,1983, and a SIxth AIIendment dated as of January 1. 1986. have a II beln ex,cutld prav.ioully by and between the Authority and the ParticIpant: and' YtliEREAS, the Part.fclp'ant and the Author! t)' havliI datllnillned that the financing of translV,illlion syat. facllHha after th commercial 'operation of Yogt II Unf t No. Two is to be continued as iiII p~rt of,ProJect One; 'and

e, WHEREAS, a contract*. wI th tht Soutneashrn fower AdIIinlatn.tion (SEPAl permits the Authority to wheelSEPA allocation. for IllUnicipa( preference CUltolDara wi thIn the Stata of Geor; la.

HOr, T)i!REFORE For and In consideration of the pr~iaes and tna.ut~al covenant. and agreemenb hUlinaf~er lUll

forth, the' luffic:lency of which ts hareby acknowledsed,,It Is reed by and between the parties hereto that said Contract Is further amended IS follow.:

PROfOSEI) AlIENDYEHTS TO POtER SALES alNlRAcrS' Section 1.

Th8 Power,Sales Contract. as amended, ill h.~eby further Ulended by deleting subsection 102(s) In It. entfretY,I!"Id.U!:1I.5UtuUng I new lubsection

~

102(11) to read III' follow.:

"(s) 'ProJect' shall IIIUrI than. electric generation and relatid trlttllll'liulon fllu:lllti'u wtllch 11" Idantiflad In the Descl'Iption of'ProJect and' thou transmlu'on IYltllll fact Iitiea to 'IIIhlch referlnce I. made In the

'Descrfptlon of

Projlct, together with.<n any

_Jar fanewallll.

rep'acellents I repai 1'1,

~ddition" bethrlll'lntl, and ImproYMlent..s necissary.

In the opinion of the Consulting,Englneef. to keep the Project In good operatIng condition or to,pr~v.nt a loss of (lvenue thlrefrom. (f D any IIIIjor addition. I lmprovelllent',

rep~i 1'& and IlOdi ficatiONI to the Project 2l'\\d any, dtcoamlu Ion inger dl spolllh of the Project. requ I r~ by any gov.fmunlll Igency having jurisdiction over the Prejlct or for which tho

Authority shall be responsible by virtue of any obligation of the

~

Authority arising aut cif any contract to which the Authority my be a party relating t,o owner.hlp of the Project Dr Iny fa~i Iity thereaf. and (iii) working cipital required by the Authority during construction of the

,Project and for the placing of the Project in.operatlol'l for providing Bulk Power Supply and SEPA po~~r t~ the Partlclp~n'~.1'1 Section 2.

The Power Sales Contract, l1li amended.

Is hereby further am.nded by deleting subsection 302(c)(2) in Itl entirety Section 3.

The Pow.,r SailS Contract, as* amended, is hereby further amended by deleting subsection 30B(b) In its entirety and by substituting in IieY thereof a new s~bsect lan, 3OS(b} so t~at when 10 amended subsect.iQn 308(b) 11'1,11 read as followl:

"(12) Th, Authority may.aSSUlle ruponslbil ity fo'r.t'rapsmll.,'on of *SEPA" power to' Participants and ottler cUltClller. of SEPA, provIded that the Authori ty sha II I'Icoverll least 1Is cas II fo I' such translillII ion s~ rv i ce *.

During any Power Supply Year In whf.ch tha Authcnlty hal flsponsiblli ty for

. t ransllllsalon 0 f SEPA power. auch transml 11.1 on SCI rV' Iell shal f be proy Ided by the Authority to the Partlclpants and other cuatolllliHS of SEPA by accepting

,delivery of such SEPA power frCIIII SEPA, for the accounb of the rlll,P,otlvl ParticIpants and other customers of and clar,lvering Il.Idi WI. power to -such Particlpantl ancl* other cuatollllH. through USI of the transl'llliaion sYlt. faciIi ths Included in the Project, and the Authority ii authorlud to, incr,e!lse fts lnveltment in, and the annual operating costs of, 80ch tranaraia.ion systelll facil! tiel as lIIIIy bit requl red to provide auch

transmission 'urvicl. " The chargei for such service shall be calculated and collactad by the Authority as provided in' Section 30SA hereof.

All amounts eo lIected by,the Aulho\\ Ity for.uctl translRiuion service shall approprlately.credlted to Annual ~roject eo,ts In the Sail manner as oth'r cred I h pUfluan t to.Sect Ion 311 'he rco' _."

. Sectian 4.

The Powlr Sails Contract, as U'lend.d. Is hereby further'

4.

~

a.mended by adding a new section following Section 308

b. designated Section 308A to read II f~1 Iowa:

The Authority ah,11 utabl iah, ~ rate (expressed in dollars per ki lawait per month and determined utiliz.lng the annUli dclJar costs and billing d-eterminanb) f!:H each II'lOnth of tha Power Supply rear for purposes of dalivering SEPA po"~r to the Particlpan'h and'othet cUlltomer~ of SEPA which are not Parti.cfpanhl ('nof1particlpant custOdlau'" for each month of' the Power Supply Yea~.

Such rate shalr be oeterllinlld I"r each POVIer Supply Year by dividing the sum of (j) the Annual Projec,t Tran$lII.ission fixed Charges. (ij) the Other Annual Project Tra.nslI,llIlon Costl, and Oli) aInOl.mtl. If any. which DllJ.lt be paid by the Authority for the purehue of tran$lIlnion aervices for the Project under ita Integrated transmlasion 1),lt_ agreement with 'other utilltlu; in each' 'can III budgeted or I,Umated to be Incurred for the Power Suppfy Year; by the lSum of (11) the hlgh.I't annuaf one-hour Inhgrated cciincldent _ystelll delllltld of Bulk Power Supply provided by the Auth.ority to all of the Participants, (b) tha highe$t annual SEPA cap~cit1 delivered by the Authority to the'

e' Part i c i pants and nonpart ici pant custOllers. and (~) Ien dllland cred its and

l.

tranillission losses, if applicable. incurred by the Authority under its Integrated transllf.ulon systein' Jgreement with other utilities that ;lre.

proper.IY ~llocabie to *the SEPA capactty delivered to the P~rtlclp.nts and nonparticIpant cUltomer., In each

• case to be lupplled during the Power Supply Year; with the re.sult. further divld,ed by the number of IIOnt~s In the Power Supply YeaL The amount payable by each' Participant and nonpart icipant, customer for ellch ~nth of the Power Supply* Year.

• hall be the product of the rate. determIned In accordance wi th the foregoing, and the SEPA capacity delivered by the Authority to luch Participant or nonpartlclpan~ CUltOlller or SEPA during the respective Mnth of the Power Supply Year, plus, in.the cue of I'lonparticlpant customers of SEPA, any

. applicable surchar&e."

. Sectl9n 5.. The attachment to the Power Salu Contract eMltled lI~scription of Project" I as iUIIended, II hereby further amended by deleting

. the paragraph designated "AddItional Faci I ities" in *lts

~ntlrety and substituting a new paragraph to read as follows:

"Additional Faeilltie*.

The addItional faclll ties of the Project Ihall be tho.e additions and improvement.

to the electric generation and related trl,llSllllssion. facilities and to the translIIl'ulon syatell facilltl.es af the ProJect provided for In clauus (I) and (i i) of Sectio!" 102(,) of this Contract; and thos.

transmission system,facilltiu" renewal.,

rep Iacemen til

repairs, disposalS, and add Itlon.,. betterments,

IlIlprovementa. and IIOdlflcatlOnI ttlerilto. ac1:ltllred or constructed by the

\\

Authority subsequent to the Comercial Operation Oats of the last of.the gene rat Ing faclll tles of the Pro'Jeet to be complete~ in erda.r to meet Ita Investlllent responsibility In connection with any agrement for an Integrated trans~iSl\\on *.Yltem to which the Authority NY b. a party *.

IN IITNESS fMEREOF, the Llunlcipai Elec;trlc Author I ty of Georgia an~ the Participant,have caused this Seventh A.Dendllllnt of ~ntract. to be executed In their corporate n~s by their duly authorized offil:ers and their

• corporate sea1s to be hereunto i8pr...ed and attested, all as of the date and year first above written.

WlW1CIPA( ELEcmfC AlITMORITY OF GEORGIA AP~VED AS TO FOIW:

BY; Q!1~.-Lt

• ~'illan

~&ri'i6.~

@£4;.,..-.',

ATTEST:

Gene Counsel Secretar)'~rreasurer.

APPfltjVED AS TO FOAM:

AMENDMENT TO POWER SALES CONTRACTS BEl'WBEN MUNICIPAL EL'EC1lUC AUIHORlTY OF OEORGIA

. AND TIlE UNDERSIGNED PARTICIPANT This Amendment (the.. Amatdmeat"') is mad.c and enteRd into Q of JIIDU8Z)" 14,

. 200S by and bctwccn the Municipal Electric Authority of Gear.... a pIlbUc body COIpOrate I.1:Id polmc Imd.II public oorporatipn of the State of 0e0rPa. ~

50metimcSrefemd 1.0 as the Authority, c:reatcd by the provisions of 1915 Gc!>rJia I...IrNs 101*.. ~ed (O.C.OA § 46-3-110. et seq.). and the !lDdenfped.polltlcal subdivisioD ofthe State tlfGeorgia. ~.,mdimes~ IS the Participant WITNESSETH:

c:ldDd IS of October I, 1975. III Pint Amendm=t dated IS ofM'arcb I, 1976. I Sei.:oDd Amendment dated l1l.I ofMay 2S, 1917,. 'Ihhd AJJlemdment dated as ofFcbrulry I, 1973, So Fourth Amendment dated IS ofMay I, 1980, So F'lfth Amendmmt dated IS ofNovember WHEREAS. the Aldhority and the Participant ~ into 11 PO'llltl'a" SalCl Commct dated l1l.I ofFfibn..y 1. 1978, II First AmendmeDt dated u ofMay 1. 1980. Md I Seooad Am.endment dmld u of January I, 1986 ~ "Projed Two Power Sa.Ics Contracf'); and

WHEREAS, tho Authority and tho Pamcipmt entered. into I Power Sales CoDIDct dated as ofMAy 1,1980, 1Dd. Firat Amendment dated as oflanuary 1,1986 (hcRiDa1\\cI' "Project Tbree Power Salea Contract); and WHEREAS, the AWbority and the Participant cutercd into

• Power SalCli Contract dated as of November '16, 1983 ad

• Fint Amendment dated.. of lanuary 1, 1986 (hereiDa1ler "Project Four Power Salea Cc:>>ntract',); and WHEREAS. the Autbonly and the Participant wiIll to exteau:I the Cam of ~

Project ODe Powa-Salea Cootract, the Project Two Power Salea Cootract, the Project

'I'bnIo Power 8m ContrId IIIId tho Projcct FoUl" Power Sales Cootract (hcreiDa&r somcamc. refomd to collectivoly

• tU "Power Sales CooIneIl) to tho IDIXimmn period allowed by law; and WHEREAS,.the Authority haa determined that it will DOl extend* c:xistinl gcoc:ration debt, but excludiDl eXilting debt pertaining to wOrkiDgcapital.and IllICtear

..G.~

file] worlCiDg capital debt c:ompoQt.l1ti. beyond the exiatiDg tcn:a of tho PoWCl" SalOl Contractl; and.

WHBRBAS. tho AUIbority and Ibe PlI1idpmt wiIh to proVide for

• method of allocation of the output and ICrVicca ad com relating to Project Two, Project Three &ad Project Four for the period ofthe tam extensfoa of the Power Salea ConInIctI pcrtainjq to auch Projects.. weD as providina for an ameodIncnt to tho Sc:hcdulo of ObUSabOD Shara pertaining to PJojcctFour.

NOW llIEREPORP.. for IDd in ccmaidention of tho prcmisa aod mutu.l COV8D&llU md agrceme:nll bereinafta' let forth. and in order to provide for cert&in

-2 Al'LOJlJ *...,....

changes in the Power Sales CoDb'&cts, it ill by and. betweea the Authority and !hB Participant dW lhe terms ofthe Power Sala Conbact IIhaU be amended u fbUoWl:

Sedla!Il.

ElttDdou. or die Term of tile Power Sala COIltnm.

11m Authority ami the *Participut.hereby e.xkmd the term of the POWl'lr Sal.

ContractI. follows:.

<I)

The lmm of tho Project One Power Sala Contract ill hereby extc:Dded. from March I, 2026 until June 1. 2054 (be:reiDafter. "'Project ODe Tam

~teDlldonPeriod").

(b)

The tem::I of the Project Two Pow.. Sal. Con1nct iI hereby Fefxuay I, 2028 Wlblll.1:De 1. 2054 (h~ "'hojcd Two Tam ExtuonPeriacr,.

(c)

The tam the Projcd 'l'hreo PO\\\\"m' Salu Contract is hereby cxt.cMed. from May 1. 2030 until luno 1. 2054 (hereinafter '".Project 'I'hree Term

~ Period").

(d)

Tho term of the PJoject Four Power Sala Comnid.iJ hereby e.xt.eDded. Ihm November 16, 2033 until June I, 2054 (hereina.fta' '?rojCd Four Term Exte:nIioo Period"').

SedioIl1.

AJlocation pfPmicc1 Two. Pmjcd l'hrcc and ptgied Four.

(II.)

Prqject Two AlJoc:alipq Section 308(11.) of the PrQject Two Pow.. Sal. Coniract obliptea the A.utbQrlty to provide to NCb PJojoct Two Participaat. ami oblipiee such ParticipIm CO take ftDm the Authority. tho output IIDd servic:a ofProjCld Two bued upon tho nte:a IIIDd d:wgcs eatablisbed by the Autboritypur!l\\W1t Co SectiOD 307(&) ofthe Projcct Two Power

-3

Sales Contract. The Authority and tho Participant hc:raby I8f" that during tho Project Two Tcnn Ex1c::naion P.criod the output and acmecs and costs of Project Two IbaJl be allocated. to each Project Two Participant bued upon a percentago derived by dividing the toCIl paymeata made by e,ch Project Two Participant for debt semce and for capital costa during the cotircty of the original term of tho Project Two Power Sales Contract, adjusted to prac:ot value. divided by the total payments made by 111 Project Two Participants for debt aeMCO and capital COlli. for the entirety of the origjna1 tam of the Project Two POWIII' Sales Contra&:t. also adjusted to presed valuo (bereinaftc:r "PJoject Two BiDin& Sbarcaj. The Present value calculation IhaJl be baaed upon a discouDl factor cquaI to tho weiptcd &Venae intereIt ~ of debt relatinJ to Project Two durin, the cotirety ofthc original tam ofProject Two.

(b)

Pnziccl!l'hge AUOQIiop.

Section 308(&) of the Project 1'lIree Pawa' Sale. Contract obUgatcs the Authority Co provide to each Project Three Participant. ind oblisates such Participant to take 1i'om tho Alltborily~ the output mi services ofProject Threo based upon thentes md cllarPR atab1iabcd by the Authority Puml8l1t to Section 307(a) of the PIojcct TIno Power SalOl Coatract. The Authority aod the Participlllt hereby &gJU tIW during the Project Tbreo Tam Extension Period tho output and services and coati ofProject 'J1Imj Ihal.I be allocated to each Project 'IbJee Participmt baed upon a perccnt.p dcriwd by dividiDa the tofU pAynlem.1DIde by each Project Threo Participant iIr debt..mce and fot capital com durin, the cutircty of the ori&inal=m of the Project 'Ihroc Power Sale.

Contlact, adj1llted to preac:at value. divided by the total paymCDtl made by aD Project Throe Puticipaota for debt service aDd capital com ror the cotirety oltho original tam of

-4 4TLOlfllltTU5wl

the Project Throe Power SalOl Contract. adjusted to present value, ~ ~cct

'I'hnIe Billin, Shln::lj. 1bc pracnt value calculation IhaU be bued upon a dil(:OUDt factor equal to the avenae wci&bted intaat COlt ofdebt relating to Project Three cimini tho aItirety oftbe original tam ofProjcct Three.

(c)

Pmioct FoUl' Allocati9J1.

Section 308(&) of the Project Four Power SalM Coo1ract obliplet the Authority to provide to each Project Four Participant, and obligaJel aucll Participant to tab ft'om the Authority. the output and Iel'Vicea ofProject FolD' bued upon the rata mel c:lW'geI eatab1i.lbed by the Authority purwant to Section 307(&) of Ih.tI Project. Four PowerSa1cs CoDtract. Tho A~ and the Participant badly agree Chat durina the Project Four Term ExteDlion Pc:riod the output and servicea and COD ofProjcct Four ahaIl be allocated to each Project Four Participant baled upon a pcI"CCIl1age derived by dividing the total paymcm. made by each Project Four P8ltic:jpant for debt aecvico aod fOr clpital COItI cfuriDs the catirety of the origioal team of the Project Four Power Sales

~t. adjUlted to preaent value. divided by the total paymenll made by aU Projcd Four Pmicipanw for debt *,cMce aDd capital costa for the entirety ofthe original tam of the Project Four Power Sales Contract. adjuated to present value, (heteiDafter "?rojcct Fom Billin, Sblrcaj.* The preseal value calculation shall be baed upon a diJcount

&ctor equal to the averap weighted interat cost of debt ~ to Project Four durlni the entirety oftho original tenD ofProject Four.

Additionally. effective U of November 16.2033. which is the expiration date of the original tCITJJ of the Project Four Power SalCl Contract, the Schedule of Project FolD'

Obligation Sbarea abaU be ameaded 10 that eacb Project FoW' Participant" Obliption Share Iball be equal to such Participant', Project Four BiUiDg Share.

SecdoD 3.

Tho Authority hereby qrees that it shall not c:xtald the tmn ofany exiating generation debt, cxclulive of cxiJtinl debt pertaiuina to warkinl capital and nuclear 1UoJ workinl capiral debt componeots. beyond the following dales: cxiacin8 Project One generation debt IhaIl not be cxtc:Dded bO)'OlId March 1.202.6; cxistina Projoct Two 8CUt.rabon debt Iblll DOt be exteDdcd beyond Febtulry 1, 2028; cxiatina Project Three generation debt ahall DOt be extended beyond May 1,2030; and ClciItiDg Project

. Four genention debt Ihall not be exteDdcd beyond November 16, 2033.

SeedOR 4, lbe POWCI' Salca Contracts u amcnded h~y Iha11 conIinue in effect and arc reaffirmed by the partiea. Terma not defined herein are to be defined u in

• the Powa' s.la ContrICtAI; SecUoD 5..

T'hiI AmendmClIt ahalJ become effective wbaa duly approved and exccWd and delivered by the Participant, and wbca executed md delivered by the Authority. The Authority wiD only execute and dclivc:r the Ammdzumt when it baa dd"'DJinod that the AmendmeDt or aimilar amcndmenu hIVe beCn duly CXCICUted.00 deUvcrod by each ofthe cUlI1lllt 1brty-ninc (49) Participants.

[Sipturea Appear on Next Page}

-6 ATUlIl1"""',

IN WITNESS WHEREOF. the Municipal Electric Authority of Georgia has caused this Amendment to be executed in its corporate name by its duly authorized officers and, the Authority has caused its cotpOrate seal to be hereunto impressed and attested; the Participant hIS caused this Amendment to be executed in its corporate name by its duly authorized officers and the corporate seal to be hereunto impressed and attested, and delivery hcreofby the Authority to the Participant is hereby acknowledged, all ofthe date and yur fiDt above written.

MUNICIPAL ELECTRIC AUTHORITY OF GEORGIA AttClted:

By. r::! 2-fl.

[SEAL]

PARTICIPANT:

CITY OP ADEL By.~l~

Its:

L

-1 AlUIIl1611iJh1

. ~.;..~~~*;>f '

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

City of Dalton, Georgia Response

~

Dalton UTILITIES Docket Nos.: SO-321 SO-366 U. S. Nuclear Regulatory Commission ATTN: Document Control Desk Washington, D.C. 20SSS Edwin I. Hatch Nuclear Plant Financial Assurance Requirements for Decommissioning Nuclear Power Reactors (10 CFR SO.7S(f)(1))

Dear Ladies and Gentlemen:

Pursuant to 1 0 CFR SO. 7S(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. Dalton Utilities (Dalton) hereby submits the enclosed information in accordance with 10 CFR SO. 7S(f)(1) for operating licenses DPR-S7 and NPF-S issued for Edwin I. Hatch Nuclear Plant Unit 1 and 2, respectively. Southern Nuclear Operating Company, as the operating licensee and as an agent for the owners of the Edwin I. Hatch Nuclear Plant, is providing this information to the NRC on behalf of Dalton.

Based on the information presented herein, there is reasonable assurance that the funding necessary for decommissioning the Edwin I. Hatch Nuclear Plant, consistent with the NRC prescribed minimum set forth in 10 CFR SO.7S(c), will be available on the expiration date of operating licenses DPR S7 and NPF-S.

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

Respectfully submitted, zx;;LlT~I~--,,-

ILWW Enclosure j)ptiLinR 1200 VD. Parrott, Jr. Parkway ' P.O. Box 869.. Dalton, GA 30722, 706.278.1313

~. 706.278.7230 Fax.. www.dutil.com What is PO S SIB L E:

Enclosure Edwin I. Hatch Nuclear Plant Dalton Utilities Ownership Percentage - 2.2%

10 CFR 50.75(f)(1) Requirement Unit 1 Unit 2 1

The NRC minimum decommissioning estimate,

$14,076,0002

$14,076,0002 pursuant to 10 CFR 50.75(b) and (c). '

2 The amount accumulated at the end of the calendar year preceding the date of the report for

$17,999,543

$17,574,895 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).

4 The assumptions used regarding:

(a) rates of escalation in decommissioning 2.41%

2.41%

costs; (b) rates of earnings on decommissioning 3.70%

3.70%

funds; 1.29%

1.29%

(c) real rate of return; and (d) rates of other factors used in funding N/A N/A projections.

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

None None 6

Any modifications to a licensee's current method of providing financial assurance occurring since None None 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 amount is based on NUREG-1307, Rev. 15, for the burial factor (Option 2) and the June 30, 2012 BLS data for labor and energy. Use of June 30, 2012 BLS data best correlates with the July 1,2012, burial costs used for determination of the burial escalation factor described in NUREG-1307, Rev. 15.

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, 2012 Plant Hatch Mor~an Stanle~ (formerl~ Bank at New York)

Carrying ValuE Market Value Par Value Mor£lan Stanle~ (formerl~ Wachovia BanK)

Carrying ValueM!rketVall.le Pa~Value Total Funds GaITyil'LQ Value MarketVaLue Par Value Unit 1 9,597,401 11,864,561 12,718,000 4,687,524 6,134,982 5,918,179 14,284,925 17,999,543 18,636,179 Unit 2 Total 9,870,304 19,467,705 11,584,651 23,449,212 12,249,000 24,967,000 4,820,814 9,508,339 5,990,244 12,125,226 5,699,935 11,618,113 14,691,118 28,976,043 17,574,895 35,574,436 17,948,935 36,585,113 Plant Vogtle Unit 1 5,587,494 5,417,842 5,608,000 2,729,022 2,801,483 2,609,620 8,316,516 8,219,325 8,217,620 Unit 2 Total 5,171,025 10,758,519 5,165,267 10,583,109 5,171,000 10,779,000 2,525,611 5,254,633 2,670,880 5,472,362 2,406,267 5,015,887 7,696,636 16,013,152 7,836,146 16,055,471 7,577,267 15,794,887 Grand Total 30,226,224 34,032,321 35,746,000 14,762,972 17,597,588 16,634,000 44,989,196 51,629,909 52,380,000