ML17208A700

Application to Amend CPPR-144,transferring Partial Ownership of Facility & Site to City of Orlando,Fl & Orlando Utils Commission.Supportive Financial Matl,Contracts & Amend Fee Encl

ML17208A700
Person / Time
Site:	Saint Lucie
Issue date:	06/13/1980
From:	ADAMS M S, ADOMAT E A, MILLER G M FLORIDA POWER & LIGHT CO., ORLANDO, FL
To:
Shared Package
ML17208A699	List: L-80-187, Forwards Application to Amend CPPR-144,transferring Partial Ownership of Facility & Site to City of Orlando,Fl & Orlando Utils Commission.Info for Antitrust Review Also Encl ML17208A700
References
NUDOCS 8006170273
Download: ML17208A700 (419)

Text

Ui'lITEDSTATESOFAi~lERICANUCLEARREGULATORYCOMMISSIONInthetlatterofFLORIDAPO"iER5LIGHTCOt1PANY,(St.LucieNuclearGeneratingStationUnit2))))DocketNo.50-389)))))APPLICATIONFORPERMISSIONTOTRANSFERANOWNERSHIPINTERESTTOTHECITYOFORLANDO,FLORIDAANDTHiOR[+NDO'UTILITIESCOlli"EMISSIONANDFOR!A'ENDi~'lENT'"0CONSTRUCTIONPERl"lITNO.CPPR-144I-'OPIQAPOMER5LIGllTCOi'lPANY("Applicant"or"FPL")andthecityof'RlAllDO,Florida,amunicipalcorporationandOrlandoUtilitiesCommission,tastatutorycommissionun'derthelawsofFlorida(collectively"Orlando"),pursuantto10C.F.R.550.90submitherewiththis"ApplicationforPermissiontoTransferanOwnershipInteresttotheCityofOrlando,l=ioridaandtheOrlandoUtilitiesCommissionandforAmendmenttoConstruc-tionPermitNo.CPPR-144."Thepurposesofthisapplicationareto,obtainpermissionforFPLtotransfertoOrlandoapartialownershipinterestinSt.LucieNuclearGeneratingStation,Unit2andtheSt.Lucie82UnitSite;andtorequestappropriateamendmentoftheUnit2constructionprmitupontransfer.PermissiontotransfersuchownershipinterestsisrequiredunderSection101oftheAtomicEnergyAct(42U.S.C.2131).Insupportofthisapplicat'ion,ApplicantandOrlandoaverasfollows:1.OnNay14,1973Applicantfiledanappl'.cationwiththeAtomicCONCILPATpgItN80O6170POCUMENTARYP1'73 EJC EnergyCommission("Commission")forconstructionpermit,operatinglicenseandotherappropriatelicensesforSt.LucieUnitNo.2.Theapplication,,asamended,containedthegeneral,technical,financialandantitrustreviewinformationrequiredbyCommissionregulations.Thereafter,theCommissionStaffissuedareportwhichconcludedthatSt.LucieUnitNo.2,asproposedintheapplication,couldbeconstructedandoperatedat-theproposedlocationwithoutunduerisktothehealthandsafetyofthepublic.TheapplicationwasalsoreviewedbytheAdvisoryCommitteeonReactorSafeguards.TheAdvisoryCommitteeissueditsreport,datedDecember12,1974,whichconcludedthatifdueconsiderationweregiventotheconcerns'"pressedinitsreport,Unit2,asproposedintheapplicationcouldbeconstructedandoperatedwithoutunduerisktothehealthandsafetyof,.thepublic.TheCommissionStaffalsoprepareddraftandfinalenvironmentalstatementsasrequiredbytheNationalEnvironmentalPolicyActof1969andCommissionregulations,whichconcludedthatconstructionandoperationofUnit2,subjecttocertainconditions,wouldnothaveanunacceptablyadverseimpactontheenvironment.2.OnHay14,1973,FPLalsosubmittedtotheAtomicEnergyCommissiontheantitrustportionsofitsapplicationforpermissiontobuildSt.LucieUnitNo.2.Inaccordancewithsection105(c)(l)oftheAtomicEnergyAct,acopyoftheapplicationwastransmittedtotheAttorneyGenera1requestinghisadviceonpossibleantitrustimplications.TheAttorneyGeneraldidnotrecommendanantitrusthearing,insteadproposingtheCommissionawaittheoutcomeofFPL'sconsiderationofcertainparticipationrequests.There-after,FPLandtheNRCStaffagreeduponantitrustconditionstobeplacedonanylicensewhichmightissueforSt.LucieUnitNo.2.ThecommitmentsI 5

madebyFPLincludedofferingtheopportunitytopurchaseareasonableownershipshareofSt.ucieUnitNo.2tocertainentities,notincludingOrlando.3.Ontlay2,1977,theNuclearRegulatoryCommissionissuedtoApplicantConstructionPermitNo.CPPR-144forSt.LucieUnitNo.2subjecttotheantitrustconditionsdescribedinParagraph2above.4.OnAugust6,1976,Orlandojoinedbyotherparties,filedapetitionrequestinganantitrusthearinginconnectionwithFPL'sapplicationforaconstructionpermitforSt.LucieUnitNo.2.AhearingwasorderedbytheAtomicSafetyandIicensingBoard,whichalsograntedOrlando'requestforintervention,LBP-77-23,5NRC789(1977),affirmedALAB-420,6NRC8(1977)CLI-78-12,7NRC939(1978).SubsequenttotheaboveorderFPLandOrlandoenteredintoanagreementunderwhichFPLhasundertakento~~transfer"a6.08951percentownershipshareinSt.LucieUnitNo.2toOrlando,andOrlandohasagreedtorequestleavetowithdrawfromthependingantitrustproceedings.5.ApplicanthascontractedtosellandOrlandohascontractedtopurchasetheownershipshareinSt.LucieUnitNo.2describedabove.ApplicantandOrlandohaveagreedthatcertainconditionsmustbefulfilledpriortotransferringtoOrlandoanyownershipinterestinSt.LucieUnit2,oranyportionoftheUnitSite.AmongtheseconditionsisFPL'sobtain-mentofanamendmenttotheconstructionpermitissuedbytheNuclearRegulatoryCommissionnamingOrlandoasaco-licensee.6.Section101oftheAtomicEnergyAct(42U.S.C.2131)requiresOrlandotoobtainCommissionapproval,asaconditionprecedenttobecoming S

anownerofaninterestinSt.LucieUnitNo.2.Accordingly,FPLherebyappliesforCommissionauthorizationtotransfertoOrlandotheownershipinterestdescribedaboveandforanamendmenttotheSt.LucieUnitNo.2constructionpermitthatwouldaddOrlandoas"Applicant"underthepermituponnoticetotheCommissionbyFPLthattheownershipinteresthasbeentransferredbyFPLtoOrlando.7.TherelationshipbetweentheCityofOrlandoandtheOrlandoUtilitiesCommissionisthattheOrlandoUtilitiesCommissionisapartofthegovernmentoftheCityofOrlandobuttitletorealestateisnormallytakeninthenameofboththeCityofOrlandoandtheOrlandoUtilitiesCommission.TheOrlandoUtilitiesCommission,however,hassoleresponsibilitytoprovidemunicipalelectricservicetotheCityofOrlando.ThefollowinginformationpertainingtotheOrlandoUtilitiesCommissionisfoundattachedheretointheappendicesreferredto:A.AppendixA:thegeneralinformationrequiredby10'C.F.R.550.33;B.AppendixB:thefinancialqualificationsinfor-mationrequiredby10C.F.R.550.33(f);C.AppendixC:theantitrustinformationrequiredby10C.F.R.52.101(a)(5),50.33a,10C.F.R.,Part50,ApperdixLandCommissionRegulatoryGuide9.2(Revision1).Eachoftheseappendicesisbythisreferenceincorporatedherein.8.TheOrlandoCityCommissionandOrlandoUtilitiesCommissionhaveresolvedtoacquireanownershipinterestinSt.LucieUnitNo.2andver'ify 0

thattheinformationhereinsubmittedandreferredtoinParagraph7aboveistrueandcorrect.9.Noenvironmentalimpactrequiringanenvironmentalimpactstate-mentpursuantto10C.F.R.,Part51iscreatedbythecontemplatedtransferofapartialownershipinterestinSt.LucieUnit2byFPLtoOrlandobecausesuchtransferdoesnotinvolveanydesignorotherphysicalchangestoUnit2,anychangesinthetransmissionorotherfacilitiesassociated.withUnit2,anyincreaseorchangeineffluentscreatedbyUnit2,oranyincreaseintheauthorizedpowerlevelsforUnit2.10.ThecontemplatedtransferofpartialownershiptoOrlando.doesnotinvolveanychangewhatsoeverintheexclusiveresponsibilityandcontroltobeexercisedbyFPLoverthephysicalconstruction,operationandmaintenanceofUnit2.Therefore,theproposedamendmenttotheUnit2constructionpermitisdeemednottoinvolveeitheran"unreviewedsafetyquestion"ora"significanthazardsconsideration"as'thesephrasesareusedin10C.F.R.552.105,50.59(a)and50.91,andSection189aoftheAtomicEnergyAct(42U.S.C.2239).11.IntheeventthisapplicationisapprovedbytheCommission,Orlandoagreespursuantto10C.F.R.550.37thatitwillnotpermitanyindividualtohaveaccessto"RestrictedData,"asthattermisdefinedin10C.F.R.550.2(o),untiltheCivilServiceCommissionshallhavemadeaninvestigationandreporttotheCommissionorthecharacter,associations,andloyaltyofsuchindividual,andtheCommissionshallhavedeterminedthatpermittingsuchpersontohaveaccesstoRestrictedDatawillnotendangerthecommondefenseandsecurity.

1 WHEREFORE,ApplicantandOrlandorequestthefollowingrelief:1.ThatFloridaPower5LightCompanybegrantedpermissiontotransfertotheCityofOrlando,FloridaandtheOrlandoUtilitiesCommissionanundivided6.08951percentco-tenancyownershipinterestinSt.LucieNuclearGeneratingStation,Unit2andUnitSiteincludingtheeasementappurtenantthereto.2.ThatupontransferoftheaboveownershipinteresttotheCityofOrlando,FloridaandtheOrlandoUtilitiesCommissionanduponwrittennotificationtotheDirectoroftheOfficeofNuclearReactorRegulationbyFloridaPower&LightCompanythatsuchatransferofownershipintereststotheCityofOrlando,FloridaandtheOrlandoUtilitiesCommissionhasbeenconsummated,ConstructionPermitNo.CPPR-144shallbeamendedtoprovidethattheCityofOrlando,FloridaandtheOrlandoUtilitiesCommissionbenamedas"Applicant"therein,inadditiontoFloridaPower8LightCompany.SubscribedonthisdayofRespectfullysubmitted,FLORIDAPOWER8iLIGHTCOMPANYiBYE.A.domaExecutiveVicePresidentre>x,Subscribedandsworntobeforehorme,thisIQdeyofrgeMvCom'miooSxoiroxOmosor30,-icosBonded-t-ViaynardBonaingAgencyASTOFANDLEGAILTY1980Cityof1oG..ieilleDeputy~tClerkOrlanoU'iesCASSISTAttlCI>yAToOTI,ORtAttgg,/10844issionBySubscribedandsworntbeforemethisg~+dayofSetonas,,MayorProtern0655CiirtIIIhcP<@dfHaO%nbfO're,ssiSXxpirestglp.5f1IoTOtrgPPROVEDASTOFORI4ANDEGAKITY~~19sNIIItiEVornyfor0landoUtz.litiesmissionNo(ayPi:~r,5(:tnnfT'ri".;V~at4rgafAyCr:>>.'..i'.>>'nr,;",..'.;'i,i989bnnoiodriyAoroorsnniiiiebt.neony<rrx C1IhXJIQ(

APPEllDIXAlOCFR50.33(a)(b)(c)(d)(1)(d)(2)(d)(3)()GENERALINFORt1ATIOt$REQUIREDBY10CFR50.33OrlandoUtilitiesCommission500SouthOrangeAvenueOrlando,.Florida32801ElectricandwaterutilityN/A'/AOrganizedasaSpecialDistrictunderthelawsofFloridawiththeprincipallocationforbusinessinOrlando,Florida(d)(3)(ii)Mr.CharlesJ.Hawkins2Z15lt.GoreAvenueOrlando,FL32805tls.GraceC.Lindblom2000CountrysideCircleNOrlando,FL3Z804tlr.H.E.GeneJohnson245lJ.SpruceStreetOrlando,FL32804tlr.GroverC.Bryan1271SpringLakeDriveOrlando,FL32804MayorCarlT.Langford2001ValenciaOrlando,FL32803Mr.C.H.Stanton740AlbaDriveOrlando,FL32804tlr.H.C.Luff,Jr.950TerraceBlvd.Orlando,FL32803ter.LouisE.Stone90ZSweetbriarRoadOrlando,FL32806Mr.T.C.Pope,Jr.723BaxterAvenueOrlando,FL32806Mr.H.H.Halker525FloridaAvenueOrlando,FL32806'PresidentFirstVicePresidentSecondVicePresidentCommissionerllayor-CorrarissioneExecutiveVicePresident,GeneralPlanager8SecretaryAssistantGeneraltlanagertlanagerofElectricOperationstlanagerofHaterOperationsflanagerofFinancialOperations8AssistantSecretary

APPENDIXA(cont)(d)(3)(ii)(cont)Nr.StephenP.!lillis4716JamersonPlaceOrlando,FL32807Mrs.DorothyH.Grays1100DelaneyAvenueApt.H12Orlando,FL3280651anagerofSupportOperationsAssistantSecretaryI.(d)(3)(ill)(d)(4)AlloftheaboveareU.S.citizens.HTheapplicantisnotowned,controllednordominatedbyanalien,aforeigncorporation,noraforeigngovernmenteSN/A APPENDIXB10CFR50.33(f)FINANCIALQUALIFICATIONINFORMATIONRE(UIRED'BY10CFR50.33(f)(1)Itsstheintentionoftheapplicanttoissuerevenuebondsinanamountsufficienttoprovidethenecessaryfundstocompletelyfinanceitsportionofthecostofthefacility.(2)Copyoftheapplicant'sAnnualReportasofSeptember30,1979andinterimComparativeFinancialStatementsandStatisticsasofFebruary28,1980(AttachmentsB-1andB-2)(3)Copyoftheapplicant'sExpansionPlanAnalysis(AttachmentB-3)

ATTACHMENTB-1ORLANDOUTILITIESCOMMISSION1979'NNUALREPORT

QRLANC3QUTlLITIEStOMMlSSION500SOUTHORANGEAVENUE~P.O.BOX3193~ORLANDO,FLORIDA32802~305/423-9100IROVERC.BRYAN'residentMANAGEMENT'REPORTHARLESJ.HAWKINS'rstVicePresidentiGRACEC.LINOBLOMSecondVlccPresidentOperationsfortheyearendedSeptember30,1979reflectanincreaseingrossrevenuesof24.55forelectricoperationsand7.8lforwateroperations.Thesubstantialincreaseinelectricgrossrevenueisdirectlyattributabletothepassthroughoftheincreasedcostoffueloil(42.2X).Otheroperatingexpensesforelectricoperations(excludingdepreciation)decreased2s6%.Wateroperatingexpensesincreased9.2X.ThisreflectstheeffortbytheCommissiontocontrolcostswhencomparedtoaninflationrateofapproximately125.StatisticaldatarelatingtoelectricandwateroperationsforthefiscalyearsendedSeptember30,1979and1978isasfollows:ActiveServicesat9/30:ElectricMaterAmount1979197882,88281,21664,59762,5492.13.33.12.8PercentIncr(Deer19791978~HENRYT.MEINERtmedlatePastPresidentCURTISH.STANTONExacutltreVlccPresidentbGeneralitdanagerIJ.THOMASGURNEY,SR.eneralCounsel.O.Box1273'rlando,FL328023051843.9500AverageAnnualUsage:Electric(kilowatt-hour)Residential11,98812,321SmallCommercial20,85520,972Mater(1,000gallons)234222(2.7)1.9(0.6)0.75.4(3.'1)AveragePricetoCustomers:Electric(kilowatt-hour)Residential'.83tt,3.72tt:3.0(5.6)SmallCommercial4.7644.6841.7(7.1)Water(1,000gallons)56.55457.044(0.9)3.1Mewereabletolowerourbasicelectricratesthisyearbecauseofincreasedbulksalesofelectricitytootherutilities.Thiswasmadepossibletoacertainextentbyourmaintenanceofahighdegreeofgeneratingunitavailability.TherateswereadjustedeffectiveSeptember1,1979,toprovideapproximately$1.4millionlessrevenue.Waterrateswerealsoadjustedtoprovideanadditional$146,000inrevenues.

Asnotedlast'year,theCommissionhasaparticipationagreementwiththeCityofLakeland,Florida,forthejointownership(Lakeland-60Ã,OrlandoUtilitiesCommission-40%)ofa364megawattcoal;,firedgeneratingplant.Constructionofthisplant(C.0.McIntoshPlantUnitf3)wascommencedduringthisfiscalyear.AtSeptember30,1979,wehadexpendedapproximately$16.7millionofanestimatedcosttousof$75million.Itisanticipatedthatthisunitwillcomeonlinein1982.TopartiallyfinancetheconstructionofMcIntoshUnit83,wesold$40millionofrevenuebondsduringthecurrentyear.Thisispartofanauthorizationof$225,330,000ofwhich$75,000,000remainsunissued.Thesebonds'receivedaratingofAaandAAbytheratingagencieswhich-isconsistentwithourpreviousissue.Ouring,thecurrentyearwebeganacashmanagementprogramutilizingapooledinvestmentaccountasexplainedinNOTE.AtotheFinancialStatementswhichfollow.Combiningcashresourcesofseveralfundsenablesus-topurchaselargerandthereforemor'eprofitableinvestments.Werecognizetheimportanceofelectricityandwatertoourcustomersandtheneedtobelessdependentonpetroleum,ascitedintheNationalEnergyAct.Withthisinmind,weareinvestigatingothersourcesofpower(coal,nuclear,andsolidwaste)inourcontinuingefforttoprovidereliableserviceaswellasgoodqualitywateratreasonablecoststoourcustomers..C.H.STANTON'ExecutiveVicePresident'ndGeneralManagerOrlandoUtilitiesCommission T

ErnSt8CinneyCertifiedpublicAccountants332NorthMagnoliaAve.P.O.Box3426Orlando,Florida32802305/841-2050OrlandoUtilitiesCommissionOrlando,FloridaWehaveexaminedthebalancesheetsoftheOrlandoUtilitiesCommissionasofSeptember30,1979and1978,andtherelatedstatementsofincomeandaccumulatedretainedearningsandchangesinfinancialpositionfortheyearsthenended.Ourexaminationsweremadeinaccordancewithgenerallyacceptedauditingstandardsand,accordingly,includedsuchtestsoftheaccountingrecordsandsuchotherauditingproceduresasweconsiderednecessaryinthecircumstances.Inouropinion,thefinancialstatementsreferredtoabovepresentfairlythefinancialpositionoftheOrlandoUtilitiesCommissionatSeptember30,1979and1978,andtheresultsofitsoperationsandthechangesinitsfinancialpositionfortheyearsthenended,inconformitywithgenerallyacceptedaccountingprinciplesappliedona.consistentbasis.Orlando,FloridaDecember7,1979 BALANCESHEETSORLANDOUTILITIESCOMMISSIONASSETS.September3019791978UTILITYPLANTInservice:ElectricWaterCommonAllowancesfordepreciationandamortization(deduction)$201,202,98247,911,30411,838,795$196,755,27743,899,67711,668,344170,686,496168,504,711Constructionworkinprogress-NotesAandE249556369.031328,195,642,132177,536,039RESTRICTEDASSETS-NotesAandBDebtservicefundsConstructionandrela'tedfundsCURRENTASSETSCashShort-terminvestmentsPooledinvestments-NoteACustomeraccountsreceivable,lessallowancefordoubtfulaccounts(1979-$217,318;1978--$196,531)AccruedutilityrevenuesMaterialsandsuppliesAccruedinterestreceivableMiscellaneousreceivables,prepaidexpensesanddeferredcharges22,602,9634482698067,429,943161,270-0-109900,28311,367,9334,767,9127,050,995154,52429386834,696,78515,664,6611840272434,067,385356,08414,705,000-0-8;311,8133,679,3585,810,235218,136396512330477,138278624862 LL1'i40

,L:CAPITALIZATIONANDLIABILITIES'September3019791978CAPITALIZATIONEquity:Accumulatedretainedearnings:Appropriatedfordebtservice,Investedinorappropriatedforutilityplantandworkingcapital$17,962,375$12,236,214103994673103667986121,957,048115,904,200Contributedcapital58840724515014Long-termdebt-NoteC:Bondprincipal*Unamortizeddiscountandexpense(deduction)127,841,120120,419,214I150,330,000110,330,000(469732)149860268110330000CURRENTLIABILITIES-payablefromrestrictedassetsAccruedinterestpayableonlong-termdebtCURRENTLIABILITIES--,payablefromcurrentassetsAccountspayableandaccruedexpensesCustomermeterdepositsandinterestthereonCollectionsforstateandpoliticalsubdivisionsDuetotheGeneralFund-oftheCityofOrlando-Note,D277,701,3884,640,5886,525,0032,252,2492,153,374209907013,029,696230,749,2143,428,4473,800,4352,311,1881,919,3544845788,515,555OTHERLIABILITIES.CustomerwaterandelectriclineextensiondepositsCOHHITiiENTSANDCONTINGENTLIABILITIES-iVoteE2,397,1882,387,34624082.Seenotestofinancialstatements STATEKNTSOFINCOMEANDACCUMULATEDRETAINEDEARNINGSORLANDOUTILITIESCOMMISSIONYearEndedSeptember3019791978Operatingrevenues$118,948,769$96,649,494Operatingexpenses:ProductionTransmissionanddistributionCustomeraccountingGeneralandadministrativeStateutilitiestaxConsumereducationPaymentstotheGeneralFundoftheCityofOrlando-NoteDOPERATINGINCOMEDepreciation-NoteAlInterestandotherincomeOtherdeductions-'-principallyinterestINCOMEBEFOREEXTRAORDINARYITEM76,158,0455,000,3022,092,3585,527,7921,065,693118,84430324039299543725,953,332749665918,4567673546636023,923,033760118516,321,84856,810,2005,155,8711,988,9644,826,1961,023,166111,41128604747277628223,873,212741220216,461,.010334953819,810,548534225314,468,295Extraordinaryitem-gainonadvancerefundingoflong-termdebt-NoteG-0-11686231NETINCOME16,321,84826,154,526Accumulatedretainedearningsatbeginningofyear11590420096009674hLesstransferstotheGeneralFundoftheCityofOrlando-NoteDACCUMULATEDRETAINEDEARNINGSATENDOFYEAR132,226,048122,164,200(10269000)(6260000)'48Seenotestofinancialstatements0

'STATEMENTSOFCHANGESIN'INANCIALPOSITIONRLANDOUTILITIESCOMMISSION"SOURCEOFFUNDSIncomebeforeextraordinaryitemChargestooperationsnotrequiringcurrentoutlayofworkingcapital:Dep'reciationandamortizationAmortizationofbonddiscountandexpenseTOTALFROMOPERATIONSBEFOREEXTRAORDINARYITEMExtraordinaryitem-gainonadvancerefundingoflong-termdebtAmortizationofbonddiscountandexpensenotrequiringcurrentoutlayofworkingcapitalTOTALFROMOPERATIONSProceedsfromthesaleofrevenuebondsContributedcapitalIncreaseinrestrictedliabilitiesIncreasein.otherliabilities~JAPPLICATIONOFFUNDSAdditionstoutilityplant-netTransferstotheGeneralFundoftheCityofOrlandoReductionoflong-termdebt~IncreaseinrestrictedassetsExpensesattributabletosaleofrevenuebondsYearEndedSeptember30197919787,948,773.27477,810>0444686724,273,36822,325,206-0--0--0-24,273,36840,000,00017369,0581,212,141984211,686,2311,30876'9~1299500035,320,206110,330,000772737830,56843910266~864409147j69261326,054,8669,055,22860260,000126,885,000522,617~-0-10,269,000-0-33,362,55847247970158903142722845$16,321,848$14,468,295INCREASE(DECREASE)INWORKINGCAPITALCHANGESINCOMPONENTSOFWORKINGCAPITAL"Increase(decrease)incurrentassets:CashInvestments'ustomeraccountsreceivableMaterialsandsuppliesOtherreceivablesandaccounts.Increase.(decrease)incurrentliabilities:AccountspayableandaccruedexpensesUtilityplantconstructioncontractsCustomermeterdepositsandinterestthereonCollectionsforstateandpoliticalsubdivisionsDuetotheGeneralFund'ftheCityofOrlandoINCREASE(DECREASE)INWORKINGCAPITALSeenotestofinancialstatements$(194,814)(3,804,717)',056,1201,240,7609222981,219,6472,724,568-0-~(58,939)234,020I614492451414156,8338,105,0001,763,579(1,1021028)(1896378)6,927,0061,222,660(23,466)373,240.221,6091631951957238

NOTESTOFINANCIALSTATEMENTSORLANDOUTILITIESCOMMISSIONNOTEA-SUMMARYOFSIGNIFICANTACCOUNTINGPOLICIESwhichincludespayrollandrelatedcost,generaland,administrativecostandcostofequipmentusedinconstruction.ItisthepolicyoftheCommissionnottocapitalizeinterestduring"construction.Undiv'idedInterestinJointProects:TheCommissionaccountsforundividedownershipinterestsinelectricgenerationplantswithotherutilitiesbasedontheproratashareoftheprojects'ssets,liabilities,revenuesandexpenses.DereciationandMaintenance:Theutilityplantisbeingdepreciatedusingthestraight-linemethod,at,ratescalculatedto.amortizethecostover'heestimatedeconomicusefullivesoftheassets.Suchamountsarechargedtodepreciationoroperating.'expense.TheCommissionchargesmaintenancewiththecostofrepairsandminor*renewalsofproperty,andtheplantaccountswiththecostofrenewalsandreplacementofpropertyunits.Thecostofsignificantunusualrepairsaredeferredandamortizedoverperiodsnotexceeding24months.PooledInvestments:DuringtheyearendedSeptember30,1979theCommissioncreatedapooledinvestmentaccountwherebyallinvestments(restrictedandunrestricted)exceptforthoseintheInvestedSinkingFund,havebeenplacedinthisaccount.The'investmentsconsistmainlyof'imecertifi-catesofdeposit,debtinstrumentsoffederalagencies,andsecurities'heldunderrepurchaseagreements.Theseinvestmentsarecarriedatcost,~whichapproximatesmarket.'PooledinvestmentsbyclassificationatSeptember30,1979consistedof.$60,600,957inrestrictedassetsand$10,900,283incurrentassets.(SeeNoteB)MaterialsandSulies:Materialsandsuppliesarestatedataveragecost.Reclassifications:.CertainitemsonthebalancesheetasofSeptember30,1978havebeenreclassifiedtobecomparativetocurrentyearclassifications.

NOTESTOFINANCIALSTATEHENTS-CONTINUEDORLANDOUTILITIESCOMMISSIONNOTEB-RESTRICTEDASSETSRestrictedassetsconsistofthefollowingfunds:PSeptember30-19791978Increase(Decrease)SinkingFundSinkingFundReserveRenewalandReplacementFundConstructionTrustFunds$11,158,485$6,417,412$4,741,07311,444,4789,247,2492,197,2297,226,6216,288,426938,195376003591211429825486061TOTALS28Theabovefundsareclassifiedinthebalancesheetas:DebtservicefundsConstructionand,relatedfunds$22,602,963$15,664,661$6,938,302448269801840272426424256TOTALS28Thefundsconsistof:CashandCertificatesofDepositUnitedStatesTreasurysecurities-atcost(approximatemarketvalue:1979-$5,691,000;1978-$25,875,000)Short-terminvestmentsPooledinvestments-NoteAInterestreceivableOrlandoUtilitiesCommissionRevenueBonds-atcost50690,407-0-60,600,9571,136,93125,754,5673,479,000-0-399,355-0-.589581,648$4,375,505

NOTESTOFINANCIALSTATEMENTS-CONTINUEDORLANDOUTILITIESCOMMISSIONNOTEC--LONG-TERMDEBTeByresolutiondatedApril18,1978andamendedMay15,1978,the.Commission.providedfortheadvancerefundingofallofits'aterandelectricrevenue..bondsoutstandingatApril1,1978intheaggregateprincipalamountof$123,325,000(RefundedBonds)bythesaleof$110,330,000WaterandElectricRevenueRefundingandImprovementBonds,Series1978and$94,650,000SpecialObligationBonds,Series1978.Fromtheproceedsofthesaleofthetwoissues,monieswereinvestedinUnitedStatesobligationsinanirrevocableEscrowDepositTrustFund.SuchUnitedStatesobligationswillmatureatsuchtimeandinsuchamountssoastoprovidesufficientfundsforthepaymentofmaturingprincipalandinterestontheRefundedBonds.AllinterestearnedoraccruedontheUnitedStatesobligationshasbeenpledgedandwillbe.usedforthepaymentoftheprincipalandinterestontheSpecialObligationBonds,Series1978.TheRefundedBondsaretreatedasextinguisheddebtsintheaccompanyingfinancialstatements,eventhoughtheRefundedBonds~donothaveaprovisionfordefeasance.ThetransactionhasbeenaccountedforinthesamemannerasadefeasedtransactionbecausetheobligationoftheCommissionfortheRefundedBondshasbeensatisfiedinsubstanceal-thoughnotinform.OnJuly27,1979theCommissionissued$40millionWaterandElectricRevenueRefundingandImprovementBonds,Series1978AaspartoftheApril18,1978resolution,,asamended.TheSeries'978and1978AarepayablefromandsecuredbyafirstlienuponthepledgeofthenetrevenuesderivedbytheCommissionfromtheoperationofthewaterandelectricsystemandfrominvestmentincomeearnedonmoniesandobligationsincertainsinkingfundaccounts.BondsoutstandingasofSeptember30areasfollows:197919781978series,5.8%-6.375%,dueserially1994to20081978Aseries,5.6%-6.4%,dueserially1993to2008$110,330,000$110,330,.00040000000

)NOTESTOFINANCIALSTATEMENTS-CONTINUEDORLE%DOUTILITIESCOMt1ISSIONNOTED-PAYHENTSANDTRANSFERS-GENERALFUNDOFTHECITYOFORLANDOTheCommissionmakespaymentsbasedongrossrevenuesfromserviceswithintheCitytotheGeneralFundoftheCityofOrlandowhichareconsidered.operatingexpenses.,TheCommissiontransfersadditionalmoniestotheGeneralFundoftheCityofOrlandobasedontheCommission'sincome.F-NOTEE-CO>iMITMENTSANDCONTINGENTLIABILITIES(1)Byresolution,theOrlandoUtilitiesCommission,onJuly12,1955,appropriated$180,000annuallyfora'periodof26yearscommencingApril1,1955,fortheretirementoftheSewerRevenueBondsoftheCityofOrlandodatedApril1,1955,intheamountof$5,438,000.ByanagreementbetweentheCityandtheOrlandoUtilitiesCommission;theCommissionmayoffsetthiscontributionagainsttheCityofOrlandoutilitiestax.TheagreementwherebytheCommissionpledges$180,000ofitsrevenuesannuallyhasbecomeapartoftheagreementbetweentheCityofOrlandoandthebondholdersand,therefore,itisacontingentliabilityrankingjunioronlytoobligationsoftheOrlandoUtilitiesCommissiontotheholdersofitsWaterandElectricRevenueBonds.ThisliabilitybecomespayableonlyiftheutilitiestaxisinadequateandthereaftertheCityfailstoreimbursetheCommissionfromotherutilitytaxrevenuesandalsofailstolevyasewertaxasrequired.(2)OnDecember22,1969,theOrlandoUtilitiesCommissionpledged$480,000ofitsannualrevenuesinconnectionwiththeissuancebytheCityofOrlandoof$5,500,000,ImprovementRevenueBonds.Thispledgeisforaperiodof22yearsfromthedateofissuancebytheCity.oftheImprove-mentRevenue,Bondsorsuchlongerperiodasshallberequiredtopayandretireallprincipalandinterestonsaidbonds.Thislienonthe'evenuesderivedfromtheUtilitiesshallbejuniorandsubordinatetothelienoftheholdersofanyobligationsoftheCommissionout-standingorparipassuobligationshereinafterissuedforpurposesoftheCommission,andtotheannualpaymentfortheretirementoftheSewerRevenueBondsdescribedintheprecedingparagraph,butshallbepriorandsuperiortoanylien,pledgeor-encumbrancehereaftermadeofsuchrevenuesforanypurposesotherthansaidobligationsofthisCommissionforwaterorelectricpurposes,andsaidannualSewerRevenueBondpayment.

'OTESTOFINANCIALSTATEMENTS-CONTINUEDORLANDOUTILITIESCOMMISSIONNOTEE-COMMITMENTSANDCONTINGENTLIABILITIES-CONTINUED(3)TheapproximatecosttocompleteconstructioncontractsinprogressenteredintoasofSeptember30,1979is$12,900,000.Itiscuirentlyanticipatedthatadditionalfutureexpansionprogramcosts,plannedforthenextthreeyearswill'approximate$85million.Theseamountsin-cludeajointprojectwiththeCity.ofLakeland"toconstiucta364K4steam-electricgeneratingplanttobelocatedinLakeland.TheCommissionwillhavea40%ownershipinthegenerating'plantandbeentitledto40%ofitscapacity.(4)TheCommission,,leases-realestate.forafuelsupplyterminalunderanoperatingleasethroughtheyear2023.FutureminimumpaymentsforthisleaseatSeptember30,1979are$11,880annually.(5)TheCommissionhasfiledaclaimagainstthebondingcompanyofacon-tractorallegingdamagesfordelaysintheperformanceofcertainconstructioncontracts.Ifthe,Commissionisunabletoshowdelaydamage,retainagesofapproximately$500,000wouldbeduethecontractor.Theaccompanyingfinancial'tatementsdonotincludeaprovisionforliability,ifany,thatmayresultfromsettlement:,thereof.(6)TheCommissionwasoneofthedefendantsinanallegedclassactionlawsuitbroughtagainsttheCityofOrlando'andOrangeCounty,aswellastheCommission.ThelawsuitsoughttoenjointhemakingofpaymentsbytheCommissiontoOrangeCountyofonepercent(1%)oftheCommission'sgrosselectricrevenuesearnedoutsidetheCityandto'equirerepaymentoftheamountspaidamountingtoabout$12;000permonthsinceMarch1973.Secondly,itsoughttoenjointheCommissionfrompayingtotheGeneralFundoftheCityanypartoftheCommission'snetincome,whichiscurrentlythepractice.ThecomplaintwasamendedFebruary7,1978,toallegethatrateschargedforutilitiesservicesareunreasonable,thatpaymentforcertainexpensesareunreasonableandtoseekaninjunctionforoverchargesfrom1970todateplusattorneys'ees.Thecourthasdecidedinfavorofthedefendants.Theplaintifs,however,havefiledanintenttoappealthedecision.(7)TheEnvironmental.ProtectionAgencyhasissuedapermitfortheCo'mmission'sIndianRiverelectricgeneratingplantwhichrequirestheCommissiontoprovideanoff-streamwatercoolingsystemforsuchplantbysomedateinthemid-1980'sintheeventthatanecologicalstudy,intheopinionoftheAgency,showsthatthepresentcoolingsystemisdoingsubstantialdamagetotheecologicalsystemofthe NOTESTOFINANCIALSTATEMENTS-CONTINUEDORLANDOUTILITIESCOMMISSIONNOTEE-COMMITiafENTSANDCONTINGENTLIABILITIES-CONTINUEDadjacentportionoftheIndian.River.ThecosttotheCommissionofsuchstudyisestimatedtobe$1,300,000ofwhichapproximately$800,000hasbeenincurredasofSeptember30,1979.ThefinaldeterminationoftheAgencyisappealabletothecourts.Ifconstructionofoff-streamcoolingfacilitieswerebegunnow,it.isestimatedthattheywouldcostapproximately.$20,000,000.(8)InAugust.1978,theCommissionadopted'planofpayingemployeeshavingatleasttwoyearsofemployment-foraportionoftheirunusedsickleaveaccumulatedatthedatetheyterminateorretire.Themaximumestimatedliability,calculatedonthebasisofunusedsickleaveforeligibleemployeesatSeptember30,1979isapproximately$775,000.ItisthepolicyoftheCommissiontorecordthecostsoftheplanonlyasbenefitsarepaid.BenefitpaymentsfortheyearendedSeptember30,1979were$38,508.NOTEF-PENSIONPLANTheOrlandoUtilitiesCommissionhasapensionplancoveringsubstantiallyallemployees.Thetotalpensionexpenseforthe'years1979and1978was$1,622,763and$1,390,132,respectively,whichincludesamortizationofpastservicecostsoveraperiodofapproximately30years.Thefundingmethodusedistheentryagenormalwiththeinitialunfundedaccruedliabilityfrozen.FundingisbyaDepositAdministrationContract.AsofSeptember1,1979,theanniversarydateoftheplan,thePensionFundassetsexceededtheactuariallycomputedvalueofvested.benefits.NOTEG-EXTRAORDINARYITEMAsaresultoftheApril1978advancerefundingoftheCommission'sout-standingrevenuebondsasexplainedinNoteC,againwasrecognizedinaccordancewithgenerallyacceptedaccountingprinciples.Therecordedgain(non-currentcash)wascomputedasfollows:NetcarryingamountofrefundeddebtLessunamortizeddiscountandissuecostsRefundingbondsissued$123,325,0001308769122,016,231110330000GAIN(NON-CURRENTCASH)ONADVANCEREFUNDINGOFBONDS82 NOTESTOFINANCIALSTATEMENTS-CONTINUEDORLANDOUTILITIESCOMMISSIONNOTEH-'-BUSINESSSEGMENTSTheCommissionoperatesintwobusiness,segments,thegeneration',trans-missionanddistributionofelectricityandtheproduction,treatment,transmissionanddistributionofwater.Asummaryofthesegmentinforma-tionissummarizedbelow:YearEndedSetember301979ElectricHaterAdministrationTotalOperatingrevenues'peratingincomeIdentifiable,assetsDepreciationCapitalexpenditures$109,940,70721,950,648243,607,0046,,485,81723,463,953'9,008,062$'0-4,002,684-0-42,579,933,11,581,9231,010,842-0-2,744,463-0-$118,948,76925,953,3322979768,8607,496,65926>208,416IIl.-YearEndedSetember301978OperatingrevenuesOperatingincomeIdentifiableassetsDepreciationCdpitalexpenditures$88,.289,61220,094,153195,214;8056,463,8307,078,492$8,359,8823,779,05942,331,574948,3722,142,883$-0--0-7,534,183-0--0-$96,649,49423,873,212245,080,5627,412,2029,221,375Operatingrevenueoftheelectricsegmentincludesapproximately$13millionininterchangesalestoanotherutilityforeachoftheyearsendedSeptember30,1979and1978.NOTEI--INCOMETAXESIntheopinionoftheCommissionanditscounsel,theenterpriseisexemptfromfederalandstateincometaxes.-

ATTACHMENTB-2ORLANDOUTILITIESCOMMISSION1980COMPARATIYEFINANCIALSTATEMENTSANDSTATISTICS F>>LHS043C~ORIAXOOVTLLITIf5COHHISSIONFIXAXCIAlHAhAGEHEXf5YbTENCOHPARAflVECONSOLIDATEDSTATEHEN'fOFFINANCIALCONDITIONATFEBDATE03/28/80L>>A4L>>1)98019791900I979UTILPLNTLNSVCELECvATACOSHTOTL202~004~81S48~169~32315>>178~65S265>>352'96195'37'9S43'67o91514~579~173254F08'83CAPITALIZATIONAETNEAANBALATBEGNFTINCHXFRTOCITYINOTEA)TOTLRETNEARN120'92'7913~156~23S-10~627~200123~321~31797'93.,330-o29~25lo9416'51F000120,792~279-ACCUHDEPNELECvAfACONNTOTL72~51I~4bI13>>091'997~262~757-92'66~21766>>651~94112~10LL>>9646~879~S6005~720~765-CIACELECMATRCOHHTOTLI~403~492-5~156~650-0096'60'51I~150o5353>>724o920d094'TD264XETPLNTELECvATRCOHHfOTLCVLPELECvAfRCOHHTOTLfOTLPLNT129'93'S43SF07'247~915~901172'86>>57930~IS7>>4981~801'73225'2340'15'94212'01'73129~105'5431'78'517>>699~313160>>363~8188'18'493>>650'0280'34L2~648'85181'12'03LONGTEANDEBT19781978ATOTLUNAHBONDDISCTOILLONGTERNDEBTTOTLCAPITALCURRLIABAESTACCRBONOINTR110~330~000-40~000~OCO-150~330'00462'65)49>>db7~135279'49'033'67~156I10>>330~000-1I0~330>>000-110'30F000235,998,543-2'57~040CURRASSTCASeACCTACCTACCTIXVIXVPPOACCRACCROT>>LACUSTPUBLOTNAHECVRECVAECVFUELNATLEXPINCHINCHCVRRTOTLIN'fARECVNONBILLSALEASSTCURDASSTTOIL.ASSTAESTFUNDBONGSINK5INKFUNDRESVRENEvAXDAEPLFUNDCONSTFUNDSTOTLNESTFUND12>>023'77llew444~4707~540~39419,60808750'17'368~248>>4598>>049~39017,053330'596'63'll3'25'59I~014~246LS5~69S-4~767~912S6~61733'25'16296'44'2>7'81'439~182~0697~226~491ll,013,77534,604,67014,833,1328~355~25526>>307217~66S2'45'053'12848I~Lbb~876603'7L3'79'505~09033>>945,207249'62'88CUARLIABACCTPAYACCAEXP-PAYR-TAXIUTILANDUSE)-XFRTOCITY-PHTTOCNTYTAXCOLL-PAYRSTATOFFLA-CITYOFORLSVCCOLL-CITYANOCNTYPAYRDEBTOTLCVRRLLABCUSTFVNDDEPSIINCLINTR)ADVSCIACOTHATOTLGUSTFUNDTOTLCAPITALANDLLAB4>>302~780-20L~54326b~51S-Loll8~34125'51172~920-III~725-248~913-I~110~363Ibad2277~654~781-3,793o381-93AS)9202~437269o75621~05673>>9L7-99o2)9-245>>054-I~043~SS413~185F055,403-2'35'63I~873~734816~230-40~1505~073~I05-2'S3~769I>>92S>>25050S>>523-30>>9604~851~S0229bo344~525249o562F488NOTEh-SeeOverleaf'IncludesSll,686,231gainondebtret'undingLhSTYEAR ORLJWDOVTILITIESCONNISSIONCONPUTATIOHOFCITYFAYNENTFORTHEFISCALYEARENDING,SEPTENBER30,1980FEBRVARY1980NetIncone19781979198019811982$14,468,00015,000,00014,741,00010,600,00012,200,0005YearAverage$67,009,000$13,402,000504Nonthly38Nonthly18Nonthly88$6,701,000$484,000$781~800$558.400 FHRS0430-So0RLANO0UTILITIESCOHHIS5I0NFINANCIAtH*NAGEtofNlbYSTEHCOHPAAATIVECONSOLIDATEOSTATEHEhTOFOPEAATIONSFORYfAAENOEOFEB1980OAIE03/28/80PAtiC2THISYEARCURRENTHONTNLASTYEARLNCRE/OECREPERCENTOESCRIPTIONI2HONTH5ENOINCTNLSYEARLASTYEARLNCRE/OECREPEACEhT10~517~993-o87~730II~o05~7239'o3od9L27'09235F78714'05329'68112'47280'4219~59925.45LICF35'999'34'04642~035-10~076~439-5'55'85216~738I7I~1459~407315~83397o703250'0918~94721~0561o057~323I~083'8945'95129'843~108~20660~Gll64F6425'9813'3514~84429'336524o3953o302~I1611~57~111~252o228%03785844~315o21'3'20o946oSELECAEVvATRREVTOTLAfVELECOCHEXPVATROCHEXPCUSTACCTGHKTGGENLAOHNSTATUTILCITYSUPPXFAELCITYSUPPXFR-VABRANChTYPHTTOTLEXPII4~150~9089~013~204-123~L64~IL285'34'052~921~9972~197~023130~555bo525o674I~207o2743~011~505247~580268~779100~845o09295~605o3638'66~592104~371~9556'77~2372'29'452~018~293I13~6534'31'83I~0LGo7422,644.8822450L56230'737S~4C7~06418'45'45246o61218~792~1572C~757'68292'52t78~73016'02594~591I90~532366~6232~42438~00622~438~C2819o42oS18o032~IIIoISo914o912'ISo79I~016o52846846~224543o53679~93o18~112204670-LQ~C12-214~682-SSS~992-to5~295173~431I~3139~93SI4~5633019~tt6-524~92070~10217~1832~40o~311-21~952-2~428~263-355~817-10'04571'080II~47142'932~172~892-ISo5869~2349292~201~o41-II~940-2~213~581-530'7558'91202'23I~373I~533-27~930-72o03'13~ISo491~554.491~255~I35~413~465~7INCHBEFORfOFPNElECOfPNCAHORVATROfPNCCMtoOfPNSYSTINCHLEASINCHCPhSIhCHINTRtNCHNONOPhSINCHBONDINTRfXPBONO8I5CAHCACTNAINTREXPNONOPNSEXP22~319~020-6~466o414I~017~877215~304I4~619o425151~87914~77I~304-6~057~2L2773~3208~230~6549~614118~82486~50625~964~891-6'58'30852~090277~41018~516~561205~152-18~781~7133'12~48912~223~519-5o380~2357~807I15~20862'303~645~871-2070584L65~78762F1063~957~136-53~273-4~010~4092~244~723IIo450~199-2'50'19IF8073'1623'76L403~319o522'21o3260021o458'93'5'23'3~I38~3466~6o4-558~4009L~7362~265~312-484F000I~761~312I~798~648-74'00I~873~048-79~415'hETINCHXFRTOCITYRETNEARN13~156o23829~251~94110'27'006'51F0002~529o038-23~000~941-16F09'034'76'0020~471~903-55~070'89~0 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APPENDIXC(cont)Type3contractsexistbetweenOUCandCityofSt.CloudandJacksonvilleElectricAuthority.(AttachmentC-8)C.l.e.C.1:f.C.1.g.Type4contractsexistbetweenOUCandNewSmyrnaBeachUtilitiesCommission,LakeWorthUtilitiesAuthorityandCityofVeroBeach.(AttachmentC-9)AnnualReport1972(TheGoldenAnniversary)(AttachmentC-10)Attachedarecopiesofloadflowdiagramsfor1982and1985takenfromarecentFloridaElectricPowerCoordinatingGroup(FCG)report,whichindicatelineflowsbeforeandafterSt.LucieUnit2isinservice.(AttachmentC-11)AlsoattachedisamapshowingOUC'sproposedtransmissionadditionsthrough1985.(AttachmentC-12)N/AOrlandoUtilitiesCommission(OUC)isajointowner,alongwithtenothermunicipalandREAutilities,ofFloridaPowerCorporation'sCrystalRiverP3825HWnuclearunit.OUCownsa1.6015/(13.2HW)shareasatenantincommonwithanundividedinterest.ThePartici-pationAgreementwassignedJuly31,1975,andtheunitwasplacedincommercialoperationMarch13,1977.OUCisajointowneroftheCityofLakeland'sHcIntoshJ/3334HWcoal-firedunit.OUC'sshareoftheprojectis40/(134HW)asatenantincommonwithanundividedinterest.TheParticipationAgreement,wassignedApril4,1978.TheunitisexpectedtobeincommercialoperationinOctober,1981.N/AC.1.i.GenerationandinterchangecontrolisaccomplishedthroughtheuseofananalogcomputerutilizingtielinefrequencybiasandAutomaticGenerationControl.Theschedulinganddispatchingofgenerationisbythemosteconomi-calconfigurationconsistentwithreliabilityandqualityofservice.(AttachmentsC-13&14).Communicationsconsistofhardwiredcabletosubstationsandleasedtelephonecircuitsfordistanttelemeteringandcontrol.VoiceCommunicationincludestwowayradio.Leasedtelephoneandteletypecircuitsprovidecommunicationswithneighboringsystems.TheControlCenterislocatedonthesecondfloorofanunmarkedbuilding.AGeneralElectricanalogcomputerforGenerationControlandWestinghouseVisicodeforsupervisorycontrolofsubstationsaretheprimarycontrolsystems.10CFR2.101(a)(5)(AttachmentC-15) frORLANDOUTILITIESCOMMISSIONELECTRICBOUNDARYANDTRANSMISSIONMAP/'IItoolr~C)iI~.JIeeetSeeFFDINERILLS~<<<<rcovNTR1ELVD/SVdLt/NCdfir/SVDIJNSSVdet%IS8ArefrrIi~ire<<reAEALEA/SVDSJNNFNAN/RIEFL/SVD/OJ~IC-IL/SlidJAJQTVRRE1CANE~~orIrooNALC'1/SVDISJaCrIIII*NIONIOANSVDDJNIFNOI.g~eeettt~tSTSJ/INP/SESSSLS(Prc)terrorNOLDE>>g/SV4AJ~reletSOOTHROOD/SVDSJ1FNFFFSF<<ortllARTIA'~1~/SVI~DJ,1II1.l1'rosis---OITVLINITSO.LI.C'.ELECTRICDOVNDARIESIISNVOVERIIEADTRANSltlSSIONLINESIISRVVNDERSROVNDTRANSNISSIONCldfsZSORvTRAIISNISSIONCINESFNroot<<eet<<eNfer<<FN~orNrr<<r~SNNtttet

<<le<<ee/~leeatcetlefee~t/cellssr.mrssnrret/eeettetlletcute~eelleteeetOU.C.TERRITORIALBOUNDARIESIISKVTRANSMISSIONLINES230KVTRANSMISSIONLINESe<<eeeteleel<<jttteel/It/I gIrJ(tQ$40,000,000OrlandoUtilitiesCommissionWaterandElectricRevenueRefundingandImprovementBonds,Series1978ADated:April1,1979Due:April1,asshownbelowTheWaterandElectricRevenueRefundingandImprovementBonds,Series1978A(the"1978AImprovementBonds")willbeissuedascouponbondsinthedenominationof$5,000each,registrableastoprincipalonly,orastobothprincipalandinterest.Principalandsemi-annualinterest(April1andOctober1,commencingOctober1,1979)willbepayableattheprincipaloSceofTheChaseManhattanBank,N.A.,NewYork,NewYork.The1978AImprovementBondsaresubjecttoredemptionpriortomaturitycommencingApril1,1989asmorefullydescribedherein.The1978AImprovementBonds,partofanauthorizationof$225,330,000ofwhich$110,330,000WaterandElectricRevenueRefundingandImprovementBonds,Series1978(the"RefundingBonds")wereissuedinJune1978,arebeingissuedtofinanceaportionofthecostsoftheMcIntoshUnit3Project,tobeconstructedjointlywiththeCityofLakeland,Florida,asmorefullydescribedherein.The1978AImprovementBondswillbeissuedpursuanttoaresolutionadoptedbytheOrlandoUtilitiesCommissiononApril18,1978,asamended,andwillbepayablefromandsecuredbyafirstlienuponthepledgeoftheNetRevenuesderivedfromtheoperationoftheWaterandElectricSystemandfromcertaininvestmentincome.AMOUNTS,MATURITIES,COUPONRATES'ANDPRICESORYIELDSPrincipalInterestPriceorPrincipalInterestPriceorAmountDueRateYieldAmountRateYieldDue199319941995199'61997199819992000$2,025,0005.60%100%$2,480,00020016.00%6.05%1,620,0005.651002,635,00020026.101001,725,0005.70'002,800,00020036.106.151,830,0005.751002,875,00020046.201001,945,0005.801003,060,00020056.251002,065,0005.901003,255,00020066.301002,195,0006.001003,465,00020076.306.352,335,0006.001003,690,00020086.40100(PlusAccruedInterestfromApril1,1979)The1978AImprovementBondsareofferedfordeliverywhen,asandifissuedandreceivedbytheUnderwritersandsubjecttotheapprovaloflegalitybyMudgeRoseGuthrie&Alexander,NewYork,NewYork,BondCounsel.CertainotherlegalmattersonbehalfoftheCommissionwillbepassedonbyJ.ThomasGurney,Sr.,ofGurney,Gurney&Handley,P.A.,Orlando,Florida,CounseltotheCommission.ItisexpectedthattheBondswillbedeliveredinNewYorkCityonoraboutAugust7,1979.IntheopinionofBondCounsel,interestonthe1978AImprovementBondsisexemptfromallFederalincometaxationunderexistinglawsandfromtaxationunderthelawsoftheStateofFlorida,exceptastoestatetaxesandtaxesimposedbyChapter220,FloridaStatutes,oninterest,incomeorprofitsondebtobligationsownedbycorporations,banksandsavingsassociations.Ratings:Moody's:AaStandard8tPoor's:AA(See"Ratings"herein)E.F.Button4CompanyInc.Dated:July27,1979StephensInc.ArchW.Roberts8t:Co.

Nodealer,broker,salesmanor'otherpersonhasbeenauthorizedbytheCommissionorthUnderwriterstogiveanyinformationortomakeanyrepresentationsotherthanthosecontainedinthisOflicialStatement,andifgivenormade,suchotherinformationorrepresentationsmustnotberelieduponashavingbeenauthorizedbyeitheroftheforegoing.ThisOIBcialStatementdoesnotconstituteanoffertosellorthesolicitationofanoffertobuynorshalltherebeanysaleofthe1978AImprovementBondsbyanypersoninanyjurisdictioninwhichitisunlawfulforsuchpersontomakesucholfer,solicitationorsale.ThisOIIIcialStatementhasbeenapprovedbytheCommissionandtheinformationsetforthhereinhasbeenfurnishedbytheCommissionandothersourceswhicharebelievedtobereliablebutisnotguaranteedastoaccuracyorcompleteness,andisnottobeconstruedasarepresentationbytheUnderwriters.TheinformationandexpressionsofopinionhereinaresubjecttochangewithoutnoticeandneitherthedeliveryofthisOScialStatementnoranysalemadehereundershall,underanycircumstances,createanyimplicationthattherehasbeennochangeintheaA'airsoftheCommissionsincethedatehereof.TABLEOFCONTENTSSummaryStatement.DefinitionofCertainTerms.IntroductionAuthorityforIssuanceofthe1978AImprovementBonds.Descriptionofthe1978AImprovementBonds.Securityforthe1978AImprovementBonds..RateCovenant.PurposeoftheOQ'eringApplicationof1978AImprovementBondProceeds.EstimatedDebtServiceSchedule($225,330,000).EstimatedDebtServiceSchedule($150,330,000).EstimatedDebtServiceSchedule($40,000,000).OrlandoUtilitiesCommission.SummaryofCertainProvisiohsoftheResolution.LitigationRatings.............................................TaxExemption.Legality.Miscellaneous'ertificateConcerningOfficialStatementAppendix"A"-FinancialStatements.Appendix"B"-CopyofEngineeringReport-ElectricAppendix"C"-CopyofEngineeringReport-WaterAppendix"D"-SupplementalInformation-TheCityofOrlandoandOrangeCounty..............Appendix"E"-CopyoftheResolution,asamended.Appendix"F"-FormofBondCounsel'sOpinionAppendix"G"-ParticipationAgreementBetweenCity'fLakelandandtheOrlandoUtilitiesCommission.II33456616232424242425A-IB-IC-ID-IE-IF-IG-I ORLANDOUTILITIESCOMMISSIONPRESIDENTGroverC.BryanFIRSTVICEPRESIDENTCharlesJ.HawkinsSECONDVICEPRESIDENTGraceC.LindblomMayorCarlT.LangfordCOMMISSIONERSHenryT.MeinerEXECUTIVEVICEPRESIDENTANDGENERALMANAGERCurtisH.StantonASSISTANTGENERALMANAGERHarryC.LulI'ANAGEROFELECTRICOPERATIONSLouisE.StoneMANAGEROFCUSTOMERRELATIONSANDSUPPORTOPERATIONSStephenP.WillisMANAGEROFFINANCIALOPERATIONSHaroldH.WalkerMANAGEROFWATEROPERATIONSTheodoreC.PopeGENERALCOUNSELJ.ThomasGurney,Sr.Gurney,Gurney&Handley,P.A.Orlando,FloridaCONSULTINGENGINEERSELECTRICDEPARTMENTWATERDEPARTMENTBlack&VeatchOrlando,FloridaBONDCOUNSELMudgeRoseGuthrie&AlexanderNewYork,NewYorkFINANCIALCONSULTANTM.G.Lewis&Co.,Inc.WinterPark,FloridaCH2MHillAtlanta,Georgia (THISPAGEINTENTIONALLYLEFTBLANK)

SUMMARYSTATEMENT(SubjectinallrespectstomorecompleteinformationcontainedinthisOflicialStatement)TheOrlandoUtilitiesCommission(the"Commission")wascreatedbytheFloridaStateLegislatureaccordingtoChapter9861,LawsofFlorida,Actsof1923andChapter10968,LawsofFlorida,Actsof1925andisapartoftheCityofOrlando,Florida(the"City").TheCommissionconsistsoffivemembers,includingtheMayoroftheCityofOrlando.Membersservewithoutsalaryand,withtheexceptionoftheMayor,whoautomaticallybecomesamemberoftheCommission,areappointedbytheCommissionsubjecttotheapprovaloftheCityCouncil.TheElectricandWaterSystem:Powerfortheelectricsystemloadissuppliedfromthreeplants.The.Commission'sIndianRiverPlantislocatedapproximately32mileseastoftheCity.Thisplantisamodernsteampowerplanthavingatotalnetgeneratingcapacityof612,000kwinthree1800psireheatsteamturbine-generatorunits.TheLakeHighlandPlantislocatedintheCity.Thisplanthasatotalnetgeneratingcapacityofapproximately117,000kwconsistingofthreesteamturbine-generatorunitshavingacombinednetcapacityof90,000kwandtwoquick-startcombustionturbineunitshavingacombinednetcapacityof26,000kwandonedieselgeneratorwithanetcapacityof1000kw.TheLakeHighlandPlantisusedprimarilyforpeakingandstandbyservice.TheCommissionisajointowner,alongwithtenotherutilities,ofFloridaPowerCorporation'sCrystalRiverUnit3NuclearPlantwhichislocatedontheGulfofMexicoinCitrusCounty.TheCommissionownsanundividedinterestof1.6015%oftheplantasatenantincommonandisentitledto13,200kwoftheplantnetcapacity.TheNuclearPlantsupplies1.78%ofthetotalsystemrequirements.Inaddition,thesystemhasasubstantialinterconnectioncapabilitywithFloridaPowerCorporationandFloridaPowerandLightCompany.TheElectricSystemcurrentlyservicesapproximately82,600customers.TheCommissionalsoprovideswaterfortheCityandoutlyingareas.Anabundantwatersupply,obtainedfrom23deepwells,istreated,storedandpumpedfromeightinterconnectedplants.Duetothehighqualityofthewellwater,theonlytreatmentneededisthatofaeration,chlorinationandfiouridation.TheWaterSystemcurrentlyservicesapproximately63,700customers.TheCommissionhasfollowedapolicyoffinancingexpansionofitsfacilitiesfrominternallygeneratedfundstotheextentpracticableandhasconsistentlyincreaseditsaccumulatedretainedearnings.Equityinthesystemhasaveragedmorethan40%oftotalcapitalizationoverthepasttenyears.Purposeofthe1978AImprovementBonds:The1978AImprovementBondsaretobeissuedforthepurposeofprovidingmoniestoconstructa364,000kwcoal-firedsteam-turbinepowergenerationfacility,jointlyownedbytheCommission(40%)andtheCityofLakeland,Florida(60%),andtobeconstructedbytheCityofLakelandatitsMcIntoshplantsite.Thisunitwillbeamodern2400psiunitdesignedtofirecoalasaprimaryfuelwithfueloilandrefuseassecondaryfuel.Securityforthe1978AImprovementBonds:The1978AImprovementBondsarepayablefromandsecuredbyalienuponandapledgeoftheNetRevenuesoftheWaterandElectricSystemandfrominvestmentincomeonmoniesandobligationsintheDebtServiceReserveAccountandtheInvestmentAccountestablishedbytheResolutionanddepositedintheInterestAccount.The1978AImprovementBondsarepayablefromtheNetRevenuesandcertaininvestmentincomeparipassuwiththeRefundingBonds,exceptthatnoneofthe1978AImprovementBondsorPariPassuAdditionalBondswillbepayablefrommoniesorinvestmentsondepositintheInvestmentAccount;onlytheprincipaloftheRefundingBondsmaturingApril1,2008areadditionallysecuredandpayablefromsuchmoniesandinvestmentsondepositintheInvestmentAccount.The1978AImprovementBondsdonotconstituteanindebtednessofeithertheCommissionortheCitybutarepayablefromtheNetRevenuesoftheSystemandcertaininvestmentincome.TheCityisnotobligatedtolevyanyadvaloremtaxesforthepaymentofthe1978AImprovementBondsortoapplyanyofitsfundsforsuchpayment.Rates:TheCommissionhasfullpowerandauthoritytoprescriberatesforitsserviceandtochangeratesatitsdiscretion.Therateschedulehasbeepadjustedperiodicallyasconsiderednecessary,thelastbeinga$3millionannualincreaseforelectricserviceefiectiveSeptember1,1977.TheCommission'selectricrateshaveconsistentlybeenamongthelowestinFlorida.TheresidentialratewithintheCitylimitsfor1,000kwhinApril1979was$36.03includingfueladjustment.(Seepage9forfurtherinformationwithrespecttorates.)RateCovenant:TheCommissionhascovenantedtoestablishandmaintainsuchratesfortheservicesandfacilitiesoftheWaterandElectricSystemaswillalwaysprovideineachfiscalyear,NetRevenues

.adequateatalltimestopayineachfiscalyearat'leastonehundredtwenty-fivepercent(125%)ofthe.AnnualDebtServiceRequirementfortheRefundingBonds,the1978AImprovementBondsandanyPPassuAdditionalBondshereafterissued,andthatsuchNetRevenuesshallbesuflicienttomakeallotpaymentsrequiredbythetermsoftheResolutionandthatsuchrates,fees,rentalsorotherchargesshnotbesoreducedsoastobeinsuflicienttoprovideadequateRevenuesforsuchpurpose.AdditionalBonds:TheCommissionmayissuePariPassuAdditionalBondsfromtimetotimeuponcertainconditionsasspecifiedin4heResolution.SuchPariPassuAdditionalBondsmaybeissuedonlyiftheNetRevenuesduringtheimmediateprecedingFiscalYearoranytwelveconsecutivemonthsofthe-fifteenmonthsimmediatelyprecedingtheissuance,asadjusted,willequalI50%oftheMaximumAnnualDebtServiceonalloutstandingBondsandthePariPassuAdditionalBondsthenproposedtobeissued.Theremainingauthorizedbutunissued$75,000,000WaterandElectricRevenueRefundingandImprovementBonds,Series1978whenorifissuedaresubjecttothesamerestrictionsandconditionsasthePariPassuAdditionalBonds.EstimatedCoverageofDebtService:SetforthbelowarethehistoricalandprojectedNetRevenues,asdefinedintheResolution,togetherwiththecoverageprovidedbysuchrevenues.See"HistoricalandProjectedOperatingData"and"EstimatedDebtServiceSchedules"containedherein.Historical(a)YearEndedSept.30,HISTORICALANDPROJECTEDNETREVENUES(Inthousandsofdollars)Historical(a)YearEndedDec.31,GrossRevenuesandIncome.......TotalExpensesNetAvailableforDebtService...CurrentDebtService.CoveragebyNetRevenues.........19741975$81,298$89,75656,50863,89824,79025,8587,5998,1163.26x3.19x1976$89,46662,48826,9788,6533.12x1977$92,53466,00426,5308,8772.99x1978$99,75370,26229,4919,813.0Projected(b)YearEndedSeptember301%91980198119821983GrossRevenuesandIncome..........................$114,395$121,887$130,067$153,317$157,407TotalExpenses85,800'0,17496,246114,919117,724NetAvailableforDebtService......................$28,595$31,713$33,821$38,398$39,683EstimatedDebtService(c)(d)......................10,01114,698'4,69514,69814,704CoverageofCurrentDebtService(c)(d).....2.86x2.16x2.30x2.6lx2.70xCoverageofEsumatedMaximumDebtSer-vice(c)(e)......................................1.83x2.02x2.16x2.45x2.53x(a)HistoricalamountsarederivedfromtheCommission'sauditedfinancialstatementswhicharepreparedonanaccrualbasis.SeetheCommission's"HistoricalOperatingData"setforthherein.(b)ProjectedamountsweredevelopedbytheCommissionandreviewedandapprovedbytheConsultingEngineer.Increasesinexpensesofoperationasaresultofinflationcouldbesubstantialandresultinadecreaseintheabovecoveragefiguresintheabsenceofa'ateincrease.SeetheCommission's"ProjectedOperatingData"setforthherein.(c)DebtServicereflectsacreditgivenwithrespecttoprojectedandestimatedinvestmentincomeearnedonmoniesandinvestmentsondepositintheInvestmentAccountandtheDebtServiceReserveAccount.l(d)EstimatedDebtServicereflectsactualdebtserviceontheRefundingBondsplusanticipateddebtserviceonthe1978AImprovementBondsandtheremainingPariPassuAdditionalBondswhichtheCommissionplanstoissueduringtheyears1979-1980.(e)EstimatedMaximumDebtServiceontheRefundingBonds,the1978AImprovementBondsandtPariPassuAdditionalBondsisestimatedat$15,663,837.

DEFINITIONOFCERTAINTERMS(AsusedinthisOScialStatement,thefollowingtermshavethemeaningsindicatedbelow.)"AnnualDebtServiceRequirement"means,atanytime,theamountrequiredtobedepositedinthethencurrentFiscalYearintotheInterestAccount,=PrincipalAccount,InvestmentAccountandtheBondRedemptionAccount,asprovidedintheResolution;provided,however,thatsuchamountshallbereducedbyanyearningsorinvestmentincomeinthethencurrentfiscalyearfrommoniesandinvestmentsintheInvestmentAccountandtheDebtServiceReserveAccount."MaximumAnnualDebsService"means,atanytime,themaximumamountrequiredtobedepositedinthethencurrentoranysucceedingfiscalyearintotheInterestAccount,PrinicipalAccount,InvestmentAccountandBondRedemptionAccount,asprovidedintheResolution;provided,however,thatsuchamountshallbereduced(i)byanydeterminableearningsorinvestmentincomeprojectedtobeearnedontheInvestmentAccountSecuritiesand(ii)byanyestimatedearningsorinvestmentincomefrominvestmentsintheDebtServiceReserveAccount,whichestimateshallbebasedontheincomeandearningstobereceivedfromtheinvestmentsthenondepositintheDebtServiceReserveAccount."I978AImprovementBonds"meansthe$40,000,000principalamountofWaterandElectricImproveme'ntBonds,Series1978AauthorizedtobeissuedundertheResolutionandofferedbythisOScialStatement."Bonds"meanstheRefundingBonds,the1978AImprovementBonds,andanyPariPassuAdditionalBondshereinafterissuedpursuanttotheResolution."PariPassuAdditionalBonds"means(a)theremaining$75,000,000authorizedbutunissuedWaterandElectricRevenue.RefundingandImprovementBonds,Series1978,(b)anyadditionalBondsissuedundertheprovisionsoftheResolutionpayablefromtheRevenuesoftheWaterandElectricSystemparipassuwiththeRefundingBondsandthe1978AImprovementBonds,and(c)anyDemandChargeComponents,whentheprovisionsoftheResolutionwithrespecttotheissuanceofPariPassuAdditionalBondsaremetatthetimesuchDemandChargeComponentsareincurred.SuchPariPassuAdditionalBondsarenotpayablefromorsecuredbythemoniesandinvestmentsintheInvestmentAccount."RefioidingBonds"meansthe$110,330,000WaterandElectricRevenueRefundingandImprove-mentBonds,Series1978initiallyissuedpursuanttotheResolutioninJune,1978forthepurposeofrefundingtheoutstandingobligationsoftheCommission."InvesrmenrAccount"meansanaccountwithinthesinkingfundestablishedbythisResolution.AllinterestderivedfromallmoniesandinvestmentsondepositintheInvestmentAccountshallremainintheInvestmentAccountandshallbeusedandreceivedandcreditedagainsttheamountofRevenuesrequiredtobedepositedintheInvestmentAccount.WhenthereisondepositintheInvestmentAccountasuScientprincipalamountofinvestmentaccountsecuritiestogetherwithanyotherfundsondepositintheInvestmentAccounttopaytheprincipaloftheRefundingBonds,dueApril1,2008,thenallinterestorinvestmentincomeshallbedepositedintheInterestAccount."SerialBonds"meanstheBondsofanissuewhichshallbestatedtomatureinannualorsemi-annualinstallmentsbutnotincludingtermBonds."Resolution"meanstheResolution,asamendedandadoptedbytheCommissiononApril18,1978,authorizingtheissuanceof$235,000,000WaterandElectricRevenueRefundingandImprovementBonds,Series1978."Revenues"meansallrates,fees,charges,orotherincomereceivedbytheCommissionoraccruedtotheCommissionfromtheoperationoftheWaterandElectricSystem,includingtheinvestmentincome".requiredtobedepositedintheRevenueFundfromtheinvestmentandreinvestmentofmoniesondepositincertainfundsandaccountscreatedandestablishedbytheResolution."NetRevenues"meanstheRevenuesremainingafterdeductionofOperatingExpenses.SuchOperatingExpensesdonotinclude(a)TransferofFunds(b)PaymentstoOrangeCountyand(c)anyDemandChargeComponents.

"OperatingExpenses"meansthecurrentexpenses,paidoraccrued,ofoperation,maintenance'andordinarycurrentrepairsoftheWaterandElectricSystemanditsfacilitiesandincludes,withoutlimitinthe.generalityoftheforegoing,insurancepremiums,administrativeexpensesoftheCommissionrelatinsolelytotheWaterandElectricSystem,andsuchotherreasonablecurrentexpensesasshallbeinaccordancewithgenerallyacceptedaccountingpractice."OperatingExpenses"donotincludeanyallowancefordepreciation."TransferofFunds"meansthetransferoffundsmadetothegeneralfundoftheCityofOrlando,whichincludesbutisnotlimitedto(a)fundspledgedfortheretirementoftheCityofOrlando's1955SewerRevenueBondsand(b)fundspledgedfortheretirementoftheCityofOrlando's1970ImprovementRevenueBonds."PaymentsmadetoOrangeCounty,Florida"meanscontributionsmadetoOrangeCounty,FloridapursuanttotheproceedingsoftheOrlandoUtilitiesCommission,datedMarch13,1973."DemandCirargeComponent"meansthatportionofanyrates,fees,chargesorpaymentswhichtheCommissionisobligatedtopaytoanotherentityforpurchaseofelectricaloutputforthespecificpurposeofmeetingprincipalorinterestorbothonthatentity'sobligations.DemandChargeComponentsshallbeexcludedfromOperatingExpenses,butshallrankonaparityastopaymentwiththeBondsprovidedthattheprovisionsoftheResolutionregardingtheissuanceofPariPassuAdditionalBondsaremetwithrespecttoDemandChargeComponentsatthetimesuchDemandChargeComponentsareincurred.Otherwise,DemandChargeComponentsshallbesubordinatetotheBonds.AllsuchDemandChargeComponents,however,willnotbepayablefromorsecuredbythemoniesorinvestmentsdepositedinthe'nvestmentAccount.-"WaterandElectricSystem"meansthecompletewaterandelectricplantsnowunderthecontrolandjurisdictionoftheCommission,togetherwithanyandalladditions,extensionsandimprovementshereaftermadetotheWaterandElectricSystemfromanysourceswhatsoever,includingtheadditions,extensionsandimprovementstotheWaterandElectricSystemconstructedfromtheproceedsofthBonds,andshallinclude(withoutbeinglimitedto)alllandsorinteresttherein,plants,buildings,machinery,franchises,pipes,fixtures,equipmentandallproperty,realorpersonal,tangibleorintangible,noworhereaAerownedorusedinconnectionwiththeWaterandElectricSystem.

$40,000,000OrlandoUtilitiesCommissionWaterandElectricRevenueRefundingandImprovementBonds,Series1978AINTRODUCTIONThisOlllcialStatementoftheOrlandoUtilitiesCommission(the"Commission")providescertaininformationrelatingtotheCommission,itsWaterandElectricSystemandits$40,000,000principalamountofWaterandElectricRevenueRefundingandImprovementBonds,Series1978A(the"1978AImprovementBonds").The1978AImprovementBondsarebeingofferedforthepurposeofconstructinga364,000kwcoal-firedsteam-turbineelectricpowergenerationfacility.ThisfacilitywillbeconstructedintheCityof,LakelandandwillbejointlyownedbytheCommission(40%)andtheCityofLakeland,Florida(60Po)(seeJoint-ownershipagreement,appendixGherein).The1978AImprovementBondsbeingofferedarepartofanauthorizationof$235,000,000principalamountofBonds,ofwhich$110,330,000principalamountofRefundingBondshavebeenissuedtorefundtheCommission'soutstandingwaterandelectricrevenuebonds,andofwhich$75,000,000principalamountofbondswhichtheCommissionintendstoissuetocompletethefinancingofthenewpowersupplyfacilityandotherprojects.Theauthorizationoftheremaining$9,670,000principalamountofBondshasbeencancelledbytheCommission.AUTHORITYFORISSUANCEOFTHE1978AIMPROVEMENTBONDSThe1978AImprovementBondsarebeingissuedpursuanttotheauthoritycontainedinChapter9861,LawsofFlorida,Actsof1923,asamendedandsupplementedbyChapter10968,LawsofFlorida,Actsof1925,asamendedbyChapter13198,LawsofFlorida,Actsof1927;Chapter24758,LawsofFlorida,Actsof1947;Chapters31075,31076,31077,31078,31080and31092,LawsofFlorida,Acts'f1955;Chapter2589,LawsofFlorida,Actsof1961:andotherapplicableprovisionsoflaw,andpursuanttotheResolution,asamended.The1978AImprovementBondswercvalidatedbyjudgmentoftheCircuitCourtoftheNinthJudicialCircuitofOrangeCounty,FloridaonMay12,1978,fromwhichjudgmentnoappealwastakenduringtheapplicableappealperiod.DESCRIPTIONOFTHE1978AliVIPROVEMENTBONDSPrincipalAmount,Date,InterestRateandMaturltlesThe1978AImprovementBondswillbeissuedintheaggregateprincipalamountof$40,000,000,willbedatedApril1,1979,andwillbenumberedconsecutivelyfromone(1)upwardinthedenominationof$5000each.The1978AImprovementBondswillbearinterestfromApril1,1979,attheratessetforthonthecoverpagehereof.payableonOctober1,1979,andsemi-annuallythereafteronApril1andOctober1ofeachyearandwillmatureintheprincipalamountsandonthedatessetforthonthecoverpageofthisOfficiaStatement.The1978AImprovementBondswillbeissuableincouponformregistrableastoprincipalonlyorastobothprincipalandinterestandmaybeconvertedintocouponbondspayabletobeareruponthetermsandconditionssetforthintheResolution.The1978AImprovementBondsarepayableastoprincipal,interestandredemptionpremium,ifany,attheprincipalofficofTheChaseManhattanBank,N.A.,NewYork,NewYork(the"PayingAgent").RedeinptionThe1978AImprovementBondsshallbesubjecttoredemptionattheoptionoftheCommissionpriortomaturityonorafterAprilI,1989,inwholeatanytimeorinpartfromtimetotimeonanyinterestpaymentdateintheinverseorderoftheirmaturities.(bylotwithinamaturityiflessthanafullmaturity) atparandaccruedinterestplus/sof1%foreachyearorfractionthereofbetweentheredemptiondateandthestateddateofmaturity;suchpremium,however,shallnotexceed2%.Noticeofsuchredemption(i)shallbepublishedatleastthirty,(30)dayspriortotheredemptiondat~inafinancialjournalofgeneralcirculationinNewYork,NewYork,andinanewspaperofgeneralcirculationintheCityofOrlando,Florida;(ii)shallbefiledwiththePayingAgent;and(iii)shallbemailed,postageprepaidtoallregisteredownersofthe1978AImprovementsBondstoberedeemedattheiraddressesastheyappearontheregistrationbooks.IssuanceofPariPassuAdditionalBondsTheCommissionmayissuetheremainingauthorizedbutunissued$75,000,000WaterandElectricRevenueRefundingandImprovementBonds,Series1978andotherPariPassuAdditionalBondsfromtimetotimeonlyuponcertainconditions,assetforthintheResolution.Amongotherthings,theCommissionisrequiredtoreceivefromitsConsultingEngineeracertificatestatingthattheNetRevenuesduringtheprecedingFiscalYearoranytwelveconsecutivemonthsofthefifteenmonthsimmediatelyprecedingtheissuanceofsuchadditionalbonds,subjecttocertainadjustments,willbeequaltoatleastonehundredfiftypercent(150%)oftheMaximumAnnualDebtServicerequirementon(i)allRefundingBondsand1978AImprovementBondsthenoutstanding,(ii)anyPariPassuAdditionalBondsthenoutstanding,and(iii)theproposedPariPassuAdditionalBonds(see"SummaryofCertainProvisionsoftheResolution-IssuanceofPariPassuAdditionalBonds"herein).SECURITYFORTHE1978AIMPROVEMENTBONDSThe1978AImprovementBonds(andanyPariPassuAdditionalBondsissuedhereafter)arepayablesolelyfromandsecuredbyalienuponandpledgeoftheNetRevenuesderivedbytheCommissionfromtheoperationoftheWaterandElectricSystemandfromcertaininvestmentincomeearnedonmoniesanobligationsintheDebtServiceReserveAccountandtheInvestmentAccountanddepositedintheIntereAccount.The1978AImprovementBondsarepayablefromtheNetRevenuesparipassuwiththeRefundingBonds,exceptthatnoneofthe1978AImprovementBondsorPariPassuAdditionalBondswillbepayableI'rommoniesorinvestmemsondepositintheInvestmentAccount;onlytheprincipaloftheRefundingBondsmaturingApril1,2008ispayablefromandsecuredbysuchmoniesorinvestmentsondepositintheInvestmentAccount.ThepledgeoftheNetRevenuesderivedbytheCommissionfromtheoperationoftheWaterandElectricSystemdoesnotconstitutealienupontheWaterandElectricSystemoranypartthereoforanyotherpropertyoftheCommissionortheCity.TheBondsdonotconstituteindebtednessoftheCommissionortheCitywithinthemeaningofanyconstitutional,statutoryorcharterprovisionsorlimitations,andarepayableasdescribedabove.ThefullfaiihandcreditoftheStateofFloridaortheCityarenotpledgedforpaymentoftheBonds,andtheCityisnotobligatedtolevyanyadvaloremtaxesthereforeortoapplyanyofitsfundsforthepaymentoftheBonds.TheCommissionisrequiredundertheResolutiontodepositintheDebtServiceReserveAccountasumwhich,whenaddedtothemoniesandobligationsalreadyondeposittherein,willbeatleastequaltothecombinedMaximumAnnualDebtServiceRequirementontheRefundingBondsandthe1978AImprovementBonds.TheCommissionisfurtherrequiredtoreplenishdeficienciesinthe-DebtServiceReserveAccountinthemannerprovidedintheResolutionsothattheDebtServiceReserveAccountwillcontainfundsequaltotheMaximumAnnualbebtServiceRequirementontheoutstandingBonds(seealso,"SummaryofCertainProvisionsoftheResolution"hereinformoredetailedexplanationofrequirementswithrespecttoreplenishmentofdeficienciesintheDebtServiceReserveAccountandtheaccumulationofdepositsthereinuponissuanceofPariPassuAdditionalBonds).TheResolutionprovidesthattheprovisionsthereofandofthe1978AImprovementBondsconstituteacontractwiththeholdersofthe1978AImprovementBondsandinaccordancewiththeResolution,theholdersofthe1978AImprovementBondsoranytrusteeactingforsuchholdersmay,eitheratlaworinequity,bysuit,mandamusorotherproceedinginanycourtofcompetentjurisdiction,protect,enforceocompeltheperformanceofalldutiesrequiredundertheResolution.

RATECOVENANTTheCommissionhascovenantedintheResolutiontoestablishandmaintainsuchratesfortheservicesandfacilitiesoftheWaterandElectricSystemaswillalwaysprovideineachFiscalYearNetRevenuesadequateatalltimestopayineachFiscalYearatleastonehundredtwenty-fivepercent(125%)oftheAnnualDebtServiceRequirementontheRefundingBonds,the1978AImprovementBonds,andanyPariPassuAdditionalBondshereafterissued,andthatsuchNetRevenuesshallbesu5cienttomakeallotherpaymentsrequiredbytheterms.oftheResolutionandthatsuchrates,fees,rentalsorotherchargesshallnotbesoreducedsoastobeinsu5cienttoprovideadequateRevenuesforsuchpurpose.PURPOSEOFTHEOFFERINGThe1978AImprovementBondsarebeingissuedtoprovidefundstojointlyconstructandowntheMcIntoshUnit3ProjectwiththeCityofLakeland,Florida,thefirstsuchjointgeneratingprojectbetweenmunicipalitiesintheStateofFlorida.TheCommissionwillhavea40%ownershipinthegeneratingplantandbeentitledto40%ofitscapacity.Theprojectisa364mwsteam-electricgeneratingplanttobelocatedonthenorthsideofLakeParkerinLakeland,Florida.ElectricPowerGenerationTheOrlandoUtilitiesCommissionandtheCityofLakelandenteredintoaParticipationAgreementfortheConstructionandJointOwnershipofMcIntoshUnitNumberThree(the"JointOwnershipProject"),a364megawattcoal-firedsteam-electricgeneratingplant,beingbuildadjacentto,andcontiguouswith,existingelectricgeneratingplantsownedbytheCityofLakeland.TheJointOwnershipProjectwillusecoalasitsprimaryfuelandbecapableofburningnumber6fueloilandsolidrefuseasfuelsupplements.Thecoalsupplywillbedeliveredbyrailin"unittrains"andunloadedautomaticallywithatrestle/dumpingprocedurewhichemptieseachcoalcarwhilethetrainmaintainsaslowforwardspeed.Therailroadspurandcoalstorage/handlingfacilitiesarepartoftheJointOwnershipProject,asisthefluegascleaningequipment(alimestonescrubberandaprecipitator).Appropriatestorage,handling,classifying,conveyingandshreddingequipmentassociatedwithprocessingsolidrefusewillalsobeconstructedaspartoftheJointOwnershipProject.ElectricTransmissionTheJointOwnershipProjectincludesthose230KVfacilitiesnecessaryforswitchinganddeliveringtheenergyoutputoftheJointOwnershipProject.230KVtransmissionfacilitiesnotapartoftheJointOwnershipProjectwillbeconstructedbytheCommissionwithaportionoftheproceedsofthisissue.That230KVtransmissionsystemwillbewhollyownedbytheCommissionandincludeapproximately40milesoftransmissionlinewhichwilldelivertheCommission'sportionoftheJointOwnershipProjectenergyoutputtotheOrlandoUtilitiesCommissionelectricdistributionnetwork.APPLICATIONOF1978AIMPROVEMENTBONDPROCEEDSAllmoniesreceivedbytheCommissionfromthesaleofthe1978AImprovementBondsarerequiredundertheResolutiontobedisbursedasfollows:Theaccruedinterestderivedfromthesaleofthe1978AImprovementBondsistobedepositedintheInterestAccountestablishedforthepurposeofpayingtheinterestbecomingdueandpayableonthy1978AImprovementBondsontheirnextinterestpaymentdate.Asufllcientamountofthe1978AImprovementBondproceedsistobedepositedintheDebtServiceReserveAccountwhich,togetherwithotheravailablemoniesandsecuritiesalreadyondepositintheDebtServiceReserveAccount,istoequalthecombinedMaximumAnnualDebtServiceontheRefundingBondsandthe1978AImprovementBonds.Thebalanceoftheproceedsofthe1978AImprovementBondsaretobedepositedintheConstructionFundcreatedandestablishedbytheResolutionandappliedinthemannerprescribedbytheResolution.

Theestimatedapplicationoffundsderivedfromthesaleofthe1978AImprovementBondshereinoAeredisasfollows:JointOwnershipProjectCosts(theCommission'sshare).........$36,994,485DeposittoDebtServiceReserveAccount...............2,500,000Legal,fiscalandadministrativeservicesandprint-ingcosts..............................................................150,000AccruedInterestfromAprilI,1979........................848,498TotalApplications.............................$40,492,983Proceedsofthe1978AImprovementBonds.Add:AccruedInterestfromAprilI,1979.....Less:Underwriter'sDiscountTotalSources..$40,000,000848,498355,515.$40,492,983ESTIMATEDDEBTSERVICESCHEDULE$225,330,000GrossDebtServiceon$110,330,000RefundingBondsIncludingDepositstoInvestmentAccouEstimatedDebtServiceon$115,000,000AuthorizedBalance,IncludingntthisIssue(1)TotalDebtService'11,083,82216,554,00316,760,59616,992,44717,244,54617,512,02917,731,91617,972,10918,299,32718,672,35819,055,09219,473,16819,921,26220,414,68620,525,79820,944,08320,926,44020,932,47320,933,65420,619,14120,912,24020,917,83820,895,62321,184,87020,873,62120,775,51020,782,21619,783,31819,565,925$81,310,512sesonly.orizedbalanceat8.5'.YearEndingSept.30,I979.............I980.............I98I.............I982.............I983.............I984.............I985.............I986.............I987.............I988.............I989.............I990.............I99I.............I992.............I993.............I994.............I995.............I996.............I997.............I998.............I999...;.........2000.............200I.............$002.............2003.............2004.............2005.............2006.............2007.............2008.............(I)A6.2(2)Assu.(3)Deb$1,250,000(2)7,187,5007,187,5007,187,5007,187,5007,187,5007,187,5007,187,5007,187,5007,187,5007,187,5007,187,5007,187,5007,187,50010,072,5007,452,1887,399,3757,393,1257,370,62510,802,81313,988,75014,025,31314,050,93814,369,37514,903,31315,027,81215,014,68815,629,37515,630,000$15,634,687forcalculationpurportheremainin'gauthuntincomecalculated$9,833,8229,366,5039,573,0969,804,94710,057,04610,324,52910,544,41610,078,60911,111,82711,484,85811,867,59212,285;66812,733,76213,227,18610,453,29813,491,89513,527,06513,539,34813,563,0289,816,3286,923,4906,892,5156,844,6856,815,4956,783,3085,747,6985,767,5284,153,9432,925,925$65,675,9255%interestrateusedmesnodebtservicefotServiceReserveAccoLessInvestmentIncomefrontDebtServiceReserve&Invest-mentAccountsandMaturingPrincipalofInvestmentSecuritiesAppliedtoReduceDebtService(3)$1,073,2321,855,6192,065,5812,293,4872,540,7802,806,8433,089,6123,388,6743,710,0124,060,2244,438,6934,849,9555,294,6315,777,4616,308,7626,453,5506,453,5506,453,5506,453,5506,453,5506,453,5506,453,5506,453,5506,453,5506,453,5506,453,5506,453,5506,453,5506,453,550$65,646,775in1979only.'etDebtSrrie$10,010,59014,698,38414,695,01514,698,96014,703,76614,705,18614,643,20414,584.43514,589,31514,612,13414,616,39914,623,21314,626,63114,637,22514,217,036'4,490,53314,472,89014,478,92314,480,10414,165,59114,458,69014,642,28814,442,07314,731,32014,420,07114,321,96014,328,66613,329,76813,112,375$15,663,837 ESTIMATEDDEBTSERVICESCHEDULE$150,330,000YearEndedSept.30,I979......I980.......I98I.......I982.......I983.......I984I985I986.......I987I988...........19891990.199119921993I994......I995......I996......I997I998.......I999.......2000.......200I.......2002.......2003.......2004.......2005.......2006.......2007.......2008.......GrossDebtServiceon$110,330,000RefundingBonds,IncludingDepositstoInvestmentAccount9,833,822....$9,366,5039,573,0969,804,94710,057,04610,324,52910,544,41610,078,60911,111,82711,484,85865,675,92511,867,59212,285,66812,733,76213,227,18610,453,29813,491,89513,527,065'3,539,34813,563,0289,816,3286,923,4906,892,515,6,844,6856,815,4956,783,3085,747,6985,767,5284,153,9432,925,925DebtService$40,000,0001978AImprovcmcntBonds(I)$1,212,1402,424,2802,424,2802,424,2802,424,2802,424,2802,424,2802,424,2802,424,2802,424,2802,424,2802,424,2802,424,2802,424,2804,449,2803,930,8803,944,3503,951,0253,960,8003,967,9903,976,1553,984,4553,989,3553,995,5553,999,8203,904,0203,910,7703,914,5203,919,4553,926,160TotalDebtServtce$150,330,000$11,045,96211,790,78311,997,37612,229,22712,481,32612,748,80912,968,69612,502,88913,536,10713,909,13814,291,87214,709,94815,158,04215,651,46614,902,57817,422,77517,471,41517,490,37317,523,82813,784,31810,899,64510,876,97010,834,04010,811,05010,783,1289,651,7189,678,2988,068,4636,845,38069,602,085LessInvestmentIncomefromRcservchInvestmentAccountsandMaturingPrincipalofInvestmcntSccuriticsAppliedtoReduceDebtService(2)$770,0811,515,6191,725,5811,953,4872,200,7802,466,8432,749,6123,048,6743,370,0123,720,2244,098,6934,509,9554,954,6315,437,4615,968,7626,113,5506,113,5506,113,5506,113,5505,773,5505,518,5505,518,5505,518,5505,518,5505,518,5505,433,5505,433,5505,263,5505,263,55064,456,775EstimatedNetDebtService$150,330,000$10,275,88110,275,16410,271,79510,275,74010,280,54610,281,96610,219,0849,454,21510,166,09510,188,91410,193,17910,199,99310,203,41110,214,0058,933,81611,309,22511,357,86511,376,82311,410,2788,010,7685,381,0955,358,4205,315,4905,292,5005,264,5784,218,1684,244,7482,804,9131,581,8305,145,310(I)Calculationbasedonactualinterestrateson1978AImprovementBonds.(2)DebtServiceReserveAccountincomecalculatedat8.5%.

DEBTSERVICESCHEDULE$40,000,000Thefollowingtableofdebtservicerequirementsisbasedonthesaleofthe1978AImprovemeBonds,whichisaportionoftheremainingauthorizedbutunissuedBondsandwhicharebeingissuedforthepurposeofpartiallyfundingtheJointOwnership'Project.YearEndingSeptember30,PrhetpalInterest(I)TotalDebtServiceinterestI979...............................I980...............................I98I...............................I982...............................I983...............................I984...............................I985...............................I986...............................I987..................,............I988...............................I989........,.....,................I990..........,....................I99I...............................I992...............................I993..................,............I994..;...............,............I995...............,...............I996...............,...............I997...............................I998........,......................1999...............................2000...............................200I...............................20022003.............................2004...............................2005............,...,..............2006...............................2007................,..............2008...............................TOTALS..:......~......)Interestonthe$40,000,000$1,212,1402,424,2802,424,2802,424,2802,424,2802,424,2802,424,2802,424,2802,424,2802,424,2802,424,2802,424,2802,424,2802,424,280$2,025,0002,424,2801,620,0002,310,8801,725,0002,219,3501,830,0002,121,0251,945,0002,015,8002,065,0001,902,9902,195,0001,781,1552,335,0001,649,4552,480,0001,509,3552,635,0001,360,5552,800,0001,199,8202,875,000',029,0203,060,000850,7703,255,000659,5203,465,000454,4553,690,000236,160$40,000,000$56,452,3701978AImprovementBondswas$1,212,1402,424,2802,424,2802,424,2802,424,2802,424,2802,424,2802,424,2802,424,2802,424,2802,424,2802,424,2802,424,2802,424,2804,449,2803,930,8803,944,3503,951,0253,960,8003,967,9903,976,1553,984,4553,989,355-3,995,5553,999,8203,904,0203,910,7703,914,5203,919,4553,926,160$96,452,370'alculatedattheactualratesofORLANDOUTILITIESCOMMISSIONGeneralInformationTheCommissionwascreatedbytheFloridaStateLegislatureaccordingtoChapter9861,LawsofFlorida,Actsof1923andChapter10968,LawsofFlorida,Actsof1925.TheCommissionconsistsoffivemembers,includingtheMayoroftheCityofOrlando.Membersservewithoutsalaryand,withtheexceptionoftheMayor,whoautomaticallybecomesamemberoftheCommission,areappointedbytheCommissionsubjecttotheapprovaloftheCityCouncil.CurtisH.Stanton,ProfessionalEngineer,ExecutiveVicePresidentandGeneralManagerofthCommissionhasheadedtheCommission'smanagementformorethanthirtyyearsandhasseenthesyste6 growfromaverymodestbasetoasystemwithassetsof$245,081,000asofSeptember30,1978.AccordingtolettersreceivedfromtheStateHealthDivisionwhichareonfilewiththeCommission,theCommission'swatertreatmentplanthasbeenselectedbytheStateHealthDivisionasthebestoperatedamonglargecitiesintheState.Mr.StantoniscurrentlyPresidentoftheAmericanWaterworksAssociation.TheCommissionhasatotalof747employeeswith357oftheseinvolvedinelectricoperationsand110inwateroperations.Theremainingnumberofemployeesaredividedamongcustomerrelations,supportoperations,financialoperationsandadministration.Thenumberofemployeeshasremainedrelativelystableforthepastfiveyears.Employeesarenotunionized.ElectricPropertiesandOperationsPowerfortheElectricSystemissuppliedfromthreepowerplants.AmodernsteampowerplantwithreheatturbinegeneratorunitsislocatedinBrevardCountyandisknownastheIndianRiverPlant.Forpeakingandstandbyservice,theCommissionhasaplantlocatedintheCityofOrlandoknownasLakeHighlandPlant.Inaddition,theCommissionisajointowner,alongwith10otherutilities,ofFloridaPowerCorporation'sCrystalRiverUnit3NuclearPlant.TheElectricSystemservesanareaofapproximately200squaremilesthroughalooptransmissionsystemof230kvand115kv.Fourteensubstationsprovidereliableservice.FourinterconnecuonswithotherutilitieswhoaremembersoftheFloridaElectricPowerCoordinatingGroup(FCG)allowstheCommissiontooperateinareliableandefficientmanner.Afifthinterconnection,whichwillbewiththeCityofKissimmee,iscurrentlyunderconstruction.Threeoftheinterconnectionpointsoperateat230kv.Afourth230kvconnectionexistswithFloridaPowerandLightCompanyandthenewtiewiththeCityofKissimmeewillbea230kvconnection.Theinterconnectionsgreatlyfacilitatemarketingofelectricenergyandthoseinvolvedintheinterconnectionsarecontinuallyenteringintointerchangemarketingagreementswitheachother.SalesandelectricenergyarrangementshaveovertheyearsbeenbeneficialtotheCommission.ThetablebelowshowstheCommission'sexistinggeneratingfacilities,capacityofeachunitandotherdatarelatingthereto.EXISTINGGENERATINGFACILITIESPlantName*LocationUnitNo.TrpcFuel~~PriAhEstimatedDateRetirementInServiceDateMo/YrMo/YrGenMaxNetCapabilityNameplateSummerivlntcrK'ivibllvMlYLakeHighlandOrlando,FLIndianRiver,BrevardCnty.'CrystalRiver,CitrusCountyTotalSystemasofDec.31,1978123GT-AGT-BDieselFHONGFHONGFHONGCTLONGCTLONGDLOFHONGFHONGFHONGNN9/4912/829/5412/826/5612/8212/5810/8612/5812/861970Unknown2/6012/9112/6412/942/74Unknown3/77Unknown28,75037,50037,50018,75018,7501,000142,25086,700207,600344,500638,000860,382303130313031131613161111712690922042083183216126211313742760'UChasanundividedownershipinterestof1.6015%(12.2MW)asatenantincommoninFloridaPowerCorporation'sCrystalRiver=3.825MWNuclearUnit"Heavyoil~HO,Lightoil=LO,NaturalGasNG,Nuclear=N7 ORLANDOUTILITIESCOMMISSIONSERVICEAREAPOPULATIONORANGECOUNTY4TRTTSORLANDOUTILmESCOMKIL9SIONSERVICEAREA206.19I/~I/PlW/IIA,I~ORLANDOUTIUTIESCOMMISSIONSEIIVICEAREANZiORLANDOCITYLDIITSSllM/WALTDSNEYWORLD////IggkCIIIIII0I-IIIIIII9 TheboilersoftheCommissionburneithernaturalgasornumber6fueloilandnumber2fuel'oilforflamestabilization.Theboilerswilloperateunderanycombinationofthesefuels.ThenaturalgasissuppliedunderacontractwiththeFloridaGasTransmissionCompanywhichexpiresin1985.Thenumber6fueloilissuppliedbytheBelcherOilCompanyunderafive-yearcontractwhichcommencedApril1,1975.BelcherOilCompanypurchasestheoilfrombothdomesticandforeignrefineries.TheCommissionhas382,000barrelsofstoragecapacitylocatedattheplantsites.Addiuonally,theCommissionownsa325,000barreloilstoragetanklocatedonpropertyleasedfor50yearscommencingMay27,1973,fromtheCanaveralPortAuthoritylocatedatPortCanaveral,Florida.Inadditiontothetank,theCommissionownsdockfacilitieswhichallowthetransferofoiltoorfromthestoragetank.'Oilisreceivedattheharborintankercargoquantities,transferredintothestoragetankandthentrans-shippedviabargesontheintracoastalwaterwaytotheIndianRiverPlantwherebargeunloadingfacilitiesareownedbytheCommission.TheCommissionleasestotheoilsupplierforthedurationofthesupplycontractthedeepwaterterminalfacilitieslocatedatPortCanaveral.Thisarrangementprovidesaturn-keycontractwherebythesupplierhasthetotalresponsibilityuptothepointofdeliveryattheIndianRiverPlantsiteandminimizestheCommission'srisksforoilspillclaims.AconditionoftheleaseisthattheoilinstorageattheterminalisfortheexclusiveuseoftheCommission.In1978,thecombinedstorageofapproximately707,000barrelsprovidestheCommissionwithaninventoryoffrom50-80burndays,dependinguponseasonalloadvariations.TheCommissionhasreceivedvaryingamountsofnaturalgasinrecentyearstomeetaportionofitsfuelrequirements.TheFloridaGasTransmissionCompanysuppliesthisformofenergyandin197828%ofthetotalelectricenergyrequirementscamefromthissource.DeliveriesofnaturalgastotheCommissionin1978amountedto8,735,000millionBTU'sascomparedto20,978,000millionBTU'sofnumber6fueloil,52,523millionBTU'sofnumber21'ueloiland436,000millionBTV'sofnuclearfuel.Thisrepresentsasignificantdecreaseinthesupplyofnaturalgassince1973whenthistypeofenergysuppliedover50%ofthetotalenergyrequirementsoftheCommission.Becauseoftheuncertaintyofnaturalgasdeliveriesinfutureperiods,theprojectionofrevenues,expensesandoperationsforfutureyearsasdevelopedbyCommissionstaffinconjunctionwiththeConsultingEngineersarebasedonthe-assumptionthatnonaturalgaswillbeavailabletotheCommission.ThefavorableratiosofrevenuestoexpensesandnetrevenuestodebtserviceintheseprojectionsascomparedtohistoricaldataareindicativeoftheCommission'snon-relianceuponnaturalgasasafutureenergysource.RatesTheOrlandoUtilitiesCommissionstaffannuallyconductsaneconomicstudyofthemostrecentfiscalyeartoassesstheadequacyofitselectricandwaterrevenuestomeetitsanticipatedrevenuerequirementsforthesubsequentyear.ThisstudyforthefiscalyearendingSeptember30,1978,wascompletedinJuly1979,reviewedbyErnst&WhinneyforcorrectnessandacceptedbytheCommissiononJuly17,1979.ApublicratehearingisscheduledtobeheldinAugust1979,atwhichtimetheCommissionisexpectedtoapprovethestudyrecommendations.TheJulystudyrecommendsanincreaseof$146,000inwaterrevenuesandareductionof$1,423,000inelectricrevenues.Theelectricreductionsweremadepossibleduetoextensivebulkpowersalestootherelectricutilities.ThesesalesareanticipatedtocontinuethroughSeptember1980.Projectedrevenuesincludedinthis0111cialStatementincludeanticipatedrateadjustmentsnecessarytomeetrevenuerequirementsinsubsequetityears.ElectricRatesThepresentsche'duleofelectricratesoftheCommissionareconsideredtobegenerallycompetitivewiththoseofothersimilarutilitiesintheStateofFlorida.AsaresultoftheCommission'sannualrateadequacyreview,theCommissiononlvlayIO,1977approveda$3millionannualrateincreaseforelectricservice(4.46%above1976electricrevenues)whichbecameeffectiveSeptember1,1977.ThisincreaseispartiallyoffsetbyareductioninfueladjustmentchargeswhichhasbeenmadepossibleinpartduetotheCommission'sparticipationintheCrystalRiverNo.3NuclearPlant.TheneteffectontypicalelectricbillingsforOrlandoresidentialcustomersassetforthbelowislessthan$1.00per1,000kwhpermonth.ElectricRates-'ResidentialCustomers(Subjecttoadditionalcostforfueladjustment)KiVHConsuntptionRateDesignationInsideCity.OutsideCity.200$9.27$20.189.9321.53l,000l,5002,000$37.72$54.59$71.4740.1558.0475.94 ElectricRateComparison-ResidentialCustomersMonthofApril1979(Fueladjustmentchargeincluded)500KWH1,000KWHl,500KWHJacksonvilleLakeland(insidecity).ORLANDO(insidecity).TampaElectricCompany..FloridaPowerCorp.....................................FloridaPower&LightCompany...............GainesvilleTallahassee...............................$27.0023.9919.3427.3624.7622.2023.7023.37$49.8845.5136.0350.4246.1142.4644.0444.73$71.8867.0352.0572.9166.7364.1564.3866.10$93.1388.5568.0995.3987.3385.8384.7287.46ElectricSystemRequirementsThedemandforelectricenergyintheOrlandoareagenerallyreachesitspeakduringthemonthofAugustofeachyear.ThemonthlylowpeakusuallyoccursinMarch.Thetableonpage11showsfortheCommissionElectricSystemthenetintegratedpeaksinmegawattsforthepastfiveyearsandtheprojectedpeaksthrough1987.Thepresentnetgeneratingcapacityforshortdurationperiodsis'60megawattsduringthewintermonthsand742megawattsduringthesummermonths.Theseamountsinclude13megawattsofnucleargeneratingcapacitywhichbecameavailabletotheCommissiononMarch13,1977becauseofitsparticipationintheownershipoftheCrystalRiverNo.3NuclearPlant.Annualelectricenergysales,expressedingigawatthours,aspresentlyprojectedbytheCommissionstaff,reflectanaverageannualgrowthrateofapproximately4.5%(seetableonpage11).ElectricenergyfromtheCrystalRiverNo.3NuclearPlantwillprovideapproximately70gigawatthoursperyearofthisrequirement.Priorto1974,duetotherapidgrowthoftheOrlandoareacoupledwithincreasedpercapitaconsumption,theaverageannualgrowthratefortheCommissionhadbeenapproximately10%.The-recessionthatoccurredafter1974wasaccompaniedbyasubstantialincreaseinfuelcosts.Theaverage'nnualgrowthratesince1974hasleveledoffatapproximately4.7%.WaterPropertiesandOperationsTheCommissionalsoprovideswaterfortheCityofOrlandoandoutlyingareas.Anabundantwatersupply,obtainedfrom23deepwells,istreated,stored,andpumpedfromeightinterconnectedplants.Duetothehighqualityofthewellwater,theonlytreatmentneededisthatofaerationandchlorination.Thetransmissionanddistributionsystemandstoragefacilitiesprovideexcellentwaterpressuresandreliableservice.ThesefactorscontributedirectlytotheCity'sClass3FireRating.WaterRatesOnMay10,1977theCommissionadoptedanewscheduleofwaterrateswhichbecameeffectiveonJuly1,1977.TheminimumbillinsidetheCityis$1.85forthefirst1,000gallonsandoutsidetheCitytheminimumbillforthefirst1,000gallonsis$2.54.Thenewwaterratesforadditionalserviceareasfollows:Next99,000gals.tAllover100,000gals.InsideCityper1,000gal.................................44tt37cOutsideCityper1,000gal...............................60c50cThesenewratesareexpectedtoincreasewaterrevenuesby$328,000peryearoranaverageincreaseof4.3%annuallyover1976waterrevenues.CustomersTheretailsaleofelectricenergyduring1978wasupapproximately6.2%overthepreviousyear(seetableonpage11).Boththeelectricandwatersystemshaveenjoyedconsistentincreasesinthenumbero10 connectionsoverthepastyears.ThefollowingtableshowsthenumberofactiveaccountsforbothsystemsasofDecember31fortheyears1974through1978andasofMarch31,1979.ElectricCustomers(active)IvaterCustomers(active)12/31/7471,86359,31612/31/7574,51059,59312/31/7677,01760,26712/31/77'9,92261,47112/31/7882,25863,3023/31/7982,61063,723Thirty-twoelectriccustomersoutofthetotal82,610accountfor6.1%ofthetotalelectricrevenues.Thelargestofthese(theU.S.NavyBase)accountsfor2.4%ofthistotal.Thenextlargestuserofelectricenergy(theMartinCompany)accountsfor1.8%ofthetotalelectricrevenues.CustomerBillingProceduresMetersarescheduledformonthlyreadingswiththeactualreadingtakingplaceapproximatelyfive-daysbeforebilling.Aperiodofapproximately30daysismaintainedforeachbillingperiod.Theperiodbetweenmeterreadingandbillingisusedtofollowuponitemssuchas:dirtydial,unabletoread,andmeterflooded,reportedbythemeterreaderonhismeterreadingcard.Billsarepreparedona20cyclebasiseachmonth.Billsaredueandpayableuponreceiptandbecomepastdueonthedateindicatedoneachbill.Thepastduedateisapproximately20daysafterthedateofmailingthebill.Pastduenoticesarepreparedformailingthedayfollowingthepastduedateifthereisanunpaidamountdue.Thenoticeindicatesservicewillbediscontinuedwithinthreeworkingdaysifthepastdueamountisnotpaid.ActualdisconnectionoftheservicetakesplacefivedaysaAerthenoticeismailediftheaccountisstillunpaid.TheCommission'sCreditSectionreviewsallaccountsscheduledfordisconnectpriortotheactualcut-ofl'akingplace.'Asamplecalendarofeventsformeterreadingthroughenforcedcollectionisasfollows:MeterreadingdateAugust1BillingdateAugust8MailingdateofbillAugust9PastduedateonbillAugust29MailingofPastDueNotice.August31FinaldayforpaymentonnoticeSeptember3DateserviceisdiscontinuedSeptember5Pastduenoticesaremailedtocustomerswhentheirunpaidbalanceexceeds$10,unlesstheymeetoneofthefollowingconditions:one,theyhaveadepositonfilethatismorethandoubletheunpaidamountdue;ortwo,theyhavereceivednopastduenoticeswithinthepast12consecutivemonths.RegulationHistorically,municipalutilitiessuchastheCommissionhavenotbeensubjecttostateregulationexceptforsituationsinvolvingenvironmentalconcerns,theprincipalregulatingbodynowbeingdesignatedtheDepartmentofEnvironmentalRegulation.In1974,however,theLegislatureenactedastatutewhichconfersjurisdictionintheFloridaPublicServiceCommissiontoregulate"ratestructures"ofmunicipalutilities.Itisfeltbycounselthatthisisclearlydistinguishablefromthetotalamountofrevenueswhichaparticularutilitymayreceivefromrates,andthatdistinctionhasthusfarbeencarefullymadebytheFloridaPublicServiceCommission.Currently,theFloridaPublicServiceCommissionisconductingadocket,thepurposeofwhichistodelineatejustexactlywhattypeofcontrolsandproceduresitwillseektoimposeunderthenewjurisdictionalauthority.Existingandproposedinterconnectionagreementswithinvestor-ownedutilitiesaresubjecttothereviewandapprovaloftheFederalEnergyRegulatoryCommission.11 IRPLHPSTLHPGTLHDieselCRP312TheEnvironmentalProtectionAgencyhasissuedapermitfortheCommission'sIndianRiverelectricgeneratingplantwhichmayineffectrequiretheCommissiontoprovideanolf-streamcoolingwatersysteforsuchplantbythemid-1980'sintheeventthataproposedecologicalstudyshowsthat,intheopinionotheAgency,thepresentcoolingsystemisdoingsubstantialdamagetotheecologicalsystemoftheadjacentportionoftheIndianRiver.ThecosttotheCommissionofsuchstudyisestimatedtobe$800,000.ThefinaldeterminationoftheAgencyisappealabletothecourts.Ifconstructionofofistreamcoolingfacilitieswerebegunnow,itisestimatedthatitwouldcostapproximately$21,000,000.FutureCapitalNeedsoftheElectricandWaterSystemsTheCommissionanticipatescapitaladditionstoitselectricandwatersystemsofapproximately$114millionthroughtheyears1979-1981.TheCommissionestimates$16millionofthoseadditionswillbefundedinternally,andtheremaining$98millionfundedwithadditionaldebt.Thispresentissueisaportionofthattotal$98millionrequirement,andtheschedulesonpage13reflectthattheCommissionwillhaveamplerevenueavailabletocovertheadditionaldebtservice.PensionPlanTheCommissionhasapensionplancoveringalleligibleemployees.Thetotalpensionexpensefortheyears1978and1977was$1,390,132and$1,317,039,respectively,whichincludesamortizationofpastservicecostsoveraperiodofapproximately30years.Thefundingmethodusedistheentryagenormalwiththeinitialunfunded'accruedliabilityfrozen.Fundingisbyadepositadministrationcontract.AsofSeptember1,1978,theanniversarydateoftheplan,thepensionfundassetsexceededtheactuariallycomputedvalueofvestedbenefits.FinancialStatementsThe'FinancialStatementsfortheCommissionasofSeptember30,1978areattachedheretoasAppendix"A"andareanintegralpartofthisOlftcialStatement.ORLANDOUTILITIESCOMMISSIONELECTRICALSYSTEMREQUIREMENTS1974197519761977197819791980198119821983198419851986198719NET60MINUTEINTEGRATEDDEMAND-MWJanuary'248345410'68-4304544684965255545856I6650684721February365272340409427429427447468489510532556579604March275311288328340313379396415434453472493514'36April312336314325325335412431451471492514536559583May366369331349389432453474496518541565589614641June370377353435431462483506530554578603630656685July379362406411411471493517'41565590616643670699August376385385394433486509533,558583609635663691721September376365384407413472494517542566591617644671700October294338334341361421441462484506528551575599625November280319406275311414434454475497519541565589614December334370379389339419439460481503525548572596622ANNUALENERGYREQUIREMENTS-GiVH-EXCLUDINGSALESFORRESALEGross1914198620282159'230124122529264727682896302431543293.34323577Net178718661917205521942299241025232638276028823006313832713409Sales170217621827194020622161226523722480259427092826295030753204GENERATINGCAPACITY-MW(Net,ShortDuration)Winter~IRP621Summer612'LHPST9390LHPGT3226LHDiesel~IICRP31313760742HistoricalData-ThroughandIncludingApril,1979NetInstantaneousDemand1.01019(NetIntegratedDemand)Source:OrlandoUtilitiesCommission ORLANDOUTILITIESCOMMISSIONWATERANDELECTRICSYSTEMHISTORICALOPERATINGDATA(000'SOmitted)19741975YearEndedDecember31,YearEndedSeptember30,1976(3)19771978SixMonthsEndedMarch31,19781979SourcesofRevenueElectricOperatingRevenue....................WaterOperatingRevenue....................TotalOperatingRevenue....................Interest&OtherIncome......................GrossRevenueandIncome......................ExpendituresElectricalOperatingExpenses(1)............WaterOperatingExpenses(1)............TotalOperatingExpenses(1)............OtherExpense(1).......TotalExpense(1)........NetRevenueandIncome(1)(2)CurrentDebtService(Principal&Interest)..DebtServiceCoverage........DistributionofNetRevenuesAfterDebtServicePaymentsRenewal&Replace-mentRequirementPerBondResolutionTransferstoCityGeneralFundsandpaymentstoOr-angeCounty.........BalanceAvailableforAdditionalOUCPlantImprovementsOver&AboveThoseMoniesSpentThroughRenewal&Replacement.:.....,...$74,191$81,478$80,254$82,228$88,289$39,140$45,5855,4926,705-7,4478,0918,3603,8084,26379,68388,18387,70190,31996,64942,94849,8481,6151,5731,7652,2153,1041,4841,92381,29889,75689,46692,53499,75344,43251,77156,25225656,50863,42147763,89862,31916962,48865,69431066,00469,91634670,26229,71317429,88735,80817935,98724,79025,85826,97826,53029,49114,54515,7847,5993.26x8,1163.19x8,6533.12x8,8772.99x9,8103.01x4,7373.07x4,7733.31x$4,247$7,968$8,818$8,770$6,289$4,516$3,6146,8937,9618,1057,6159,1204,3474,5016,0511,8131,4021,2684,2729452,896$53,322$59,959$58,891$61,638$65,566$27,651$33,5382,9303,4623,4284,0564,3502,0622,270(1)ExcludestransferstotheGeneralFundsoftheCityofOrlandoandpaymentstoOrangeCounty.(2)NetAvailableforDebtServ'ice(3)In1976theCommissionchangeditsfiscalyeartoSeptember30.Source:OrlandoUtilitiesCommission13 ORLANDOUTILITIESCOMMISSIONWATERANDELECTRICSYSTEMPROJECTEDOPERATINGDATAThefollowinginformationsetsforthprojectedrevenuesandexpendituresoftheCommissiongivingeffectto(1)thesaleof$115,000,000principalamountoftheremainingauthorizedbutunissuedBondsforthepurposeoffundingaportionofthecostoftheJointOwnershipProjectand(2)theincreasedrevenuesandexpendituresresultingfromsuchproject.1979(000Omitted)YearendedSeptember30,1980198119821983SourcesofRevenueElectricOperatingRevenue......WaterOperatingRevenueTotalOperatingRevenueInterest&OtherIncomeGrossRevenueandIncome....................$103,6318,771112,4021,993114,395$109,8919,350119,2412,646121,887$117,7469,888127,6342,433130,067$140,85710,350151,2072,110153,317$144,08911,092155,1812,226157,407ExpendituresElectricOperatingExpenses.............................$75,009$78,754$83;663WaterOperatingExpenses...............................3,0673,2373,510OtherOperatingExpenses................................7,7248,1839,073TotalOperatingExpenses................................85,80090,17496,246NetRevenue&Income...........28,59531,71333,821EstimatedCurrentDebtService(1)........................10,01014,69814,695EstimatedCurrentDebtServiceCoverage..............2.86x2.16x2.30xEstimatedMaximumDebtServiceCoverage(1)(2)BalanceAvailableforRenewalandReplacementRequirements,TransferstoCityGeneralFundandAdditionalImprovements.............................$18,585$17,015$19,126$23,700$24,979$102,8813,97510,868117,724$101,1483,75710,014114,91938,39814,6982.6lx39,68314,7041.83x2.02x2.16x2.45x2.53x(2)EstimatedMaximumAnnualDebtServiceontheRefundingBonds,the1978AImprovementBondsandthePariPassuAdditionalBondsisestimatedat$15,663,837.(1)DebtservicereflectsacreditgivenwithrespecttoprojectedandestimatedinvestmentincomeearnedonmoniesandinvestmentsondepositintheInvestmentAccountandtheDebtServiceReserveAccount.TheforegoingprojectionshavebeencompiledbytheCommissionandreviewedandapprovedbytheConsultingEngineers.TheannualsupplementaltransferofmoniestotheCityofOrlandoGeneralFundandtheannualpaymenttoOrangeCountyhavenotbeenreflectedasexpensesinthecalculationofNetRevenueandIncome.14 TEN-YEARCONDENSEDBALANCESHEETORLANDOUTILITIESCOMMISSION(000Omitted)Dcccmber31,September30,'0'0Assets1969197019711972197319741975197619771978UtilityPlantInservice-depreciatedvalue.......S89,779Constructioninprogress.............4,18493,963S91,402S94,164$103,5446,57118,16741,30597,973112,331144,849$108,35352,458160,811$167,1954,977$170,7308,291$167,00811,064$170,6825,609$168.5059,031172,!72179,021178,072176291177,536RestrictedFundsDebtservicefunds.......................5,184Constructionandrelatedfunds...4,717Other62810,5295,2569,0142,78440,0309,28913,7129,83614,8568,04049,04423,00124,69210,1747,47217,64611,0757,20512,9779,89413,76419,78115,66418,40318,28022,87133,54534,067CurrentAssetsCash.Marketablesecuritiesandspe-cialdeposit...............................Accountsreceivable,lessallow-ancefordoubtfulaccounts......Materialsandsupplies................Othercurrentassets.....................OtherAssets....1,3891,0462,5161,9613407,252141,8291,5712,5934,0663,0512,9062,1622,0063284519,96311,00073742,5753,3222,5427799,5921,5992533,9304,26384010,8852,4556,5287,3601,04717,390806,5007,6566,0651.53521,8362,1832993563,5006,60014,7054,7066,8913,5396,5486,9126,1908,382-5,8104,22433,47720,81926,549labiliticsandCapitalization$111,758$115,983$172,375$177,442$196,388$207,208$219,137$221,762$236,385$245,080AccumulatedRetainedEarnings....Contribution-in-aidofConst..........Long-TermDebtWaterandelectricrevenuebonds,lessunamortizeddis-count........................................TOTALCAPITALIZATION........CurrentLiabilities(excludingcur-rentmaturitiesoflong-termdebt)Notespayable-bank.................Accountspayableandaccruedexpenses...............,...................Utilityplantconstructioncon-tracts............~~--~~--"~-~"~.~.~-~~Customers'eterdepositsandothercurrentliabilities............OtherLiabilities'ustomers'aterandelectriclineextensiondeposits.............Commitments'...............................$50,162S55,722S61,317S66,872S72,565S79,0201,944S84,7932,787S89.948$96,0103,1183,742$115,9044,51558,15456.359106,891104.915117,517115.076121,952118.949125.529110,330108,316112,081168,208171,787190,082196,040209,532212,015225,281230,7491,4461151,4232581,654841,9305242,8041493,0004,354162,2502,3361974,817',578289233,800171,2561,5431,5621.8221.7642,0893,2642.7776.5558,1276256788671,3791,5891,7091,5581,8641,9482,387$111,758$115,983$172,375S177,442$196,388$207.208$219,137$221,762$236,385$245,080*SeeFootnotesonfollowingpage*'ecauseofstatutoryrequirements,theOUCchangeditsfiscalyearfromDecember31toSeptember30,in1976.Source:OrlandoUtilitiesCotrtmission15 FootnotestoTen-YearBalanceSheet-Byresolution,theCommission,onJuly12,1955appropriated$180,000annuallyforaperiodof26yearscommencingApril1,1955;fortheretirementoftheSewerRevenueBondsoftheCityofOrlandodatedApril1,1955intheamountof$5,438,000.ByanagreemenbetweentheCityandtheCommission,theCommissionmayoffsetthiscontributionagainsttheCityoOrlandoutilitiestax.TheagreementwherebytheCommissionpledges$180,000ofitsrevenuesannuallyhasbecomeapartoftheagreementbetweentheCityofOrlandoandthebondholdersand,therefore,itisacontingentliabilityrankingjunioronlytoobligationsoftheCommissiontotheholdersoftheRefundingBondsandthe1978AImprovementBondsbeingofferedherebyoranyPariPassuAdditionalBonds.ThisliabilitybecomesrealonlyiftheutilitiestaxisinadequateandthereaftertheCityfailstoreimbursetheCommissionfromotherutilitytaxrevenuesandalsofailstolevythesewertaxasrequired.OnDecember22,1969,theCommissionpledged$480,000ofitsannualrevenuesinconnectionwiththeissuancebytheCityof$5,500,000ImprovementRevenueBonds.Thispledgeisforaperiodof22'yearsfromthedateofissuancebytheCityofthe'ImprovementRevenueBondso'rsuchlongerperiodasshallberequiredtopayandretireallprincipalandinterestonsaidbonds.ThislienontherevenuesderivedfromtheUtilitiesshallbejuniorandsubordinatetothelienoftheholdersoftheRefundingBondsandthe1978AImprovementBondsbeingofferedherebyoranyPariPassuAdditionalBondsbutshallbepriorandsuperiortoanylien,pledgeorencumbrancehereaftermadeofsuchrevenuesforanypurposesotherthantheRefundingBondsandthe1978AImprovementBondsbeingofferedhereby,anyPariPassuAdditionalBondshereafterissuedbytheCommissionforwaterorelectricpurposes,andtheannualSewerRevenueBondpayment,asdescribedabove.During1978,authoritativeaccountingprinciplesrequiredachangeinthemannerofreportingContributionsinaidofConstruction.Amountsformerlyreportedasareducuonofplantinvestmentarereclassifiedascontributedequity.SUMMARYOFCERTAINPROVISIONSOFTHERESOLUTIONThefollowingstatementsarebriefsummariesofcertainprovisionsoftheResolution.ThesesummariesdonotpurporttobecompleteandreferenceismadetotheResolutionforafullandcompletestatementofsuchprovisions(acopyoftheResoluuonappearshereinasAppendix"E").CertaincapitalizedwordsandtermsusedinthissummaryaredefinedintheResolutionandhavethesamemeaninghereinasthereinusedunlessthecontextrequiressomeothermeaning.Creationof,FundsandFlowofFunds.TheResolutioncreatesandestablishesthefollowingfundsandaccounts:The"WaterandElectricSystemRevenueFund".The"WaterandElectricSinkingFund"andfive(5)separateaccountsinsaidSinkingFundtobeknownasthe"InterestAccount",the"PrincipalAccount",the"InvestmentAccount",the"BondRedemptionAccount",andthe"DebtServiceReserveAccount".The"WaterandElectricRenewalandReplacementAccount".InaccordancewiththeResolution,revenuesderivedfromtheoperationoftheWateramdElectricSystemaretobedepositedinthe"WaterandElectricRevenueFund"andshallbeappliedinthefollowingorder:1.RevenuesaretobeusedtopaythecurrentOperatingExpensesoftheWaterandElectricSystem.2.Revenuesarenexttobeused,tothefullextentnecessary,fordepositintotheInterestAccountintheSinkingFund,onthefifteenth(ISth)dayofeachmonth,suchsumsasshallbesufficienttopayone-sixthoftheinterestbecomingdueontheBondsonthenextsemi-annualinterestpaymentdate,provided,however,thatsuchmonthlydepositsforinterestshallnotberequiredtobemadeintotheInterestAccounttotheextentmoniesaredepositedintheInterestAccountfromtheproceedsoftheBonds.16 AnymoniesthataredepositedintheInterest'AccountfromtheearningsandinvestmentincomederivedfromthemoniesandinvestmentsondepositintheDebtServiceReserveAccountandtheInvestmentAccountshallbecreditedagainsttheamountofRevenuesrequiredtobedepositedintheInterestAccountandsuchRevenuesshallnotberequiredtobedepositedintotheInterestAccountaslongastheamountondepositthereinisequaltoorgreaterthantheamountrequiredtobeondepositintheInterestAccountatthetimeofsuchcomputation.3.Revenuesarenexttobeused,tothefullextentnecessary,(a)fordepositinthePrincipalAccountonthefifteenth(15th)dayofeachmonthineachyear,insuchamountsasmayberequiredforthepaymentoftheprincipalamountoftheSerialBondswhichwillmatureandbecomedueonsuchannualmaturitydates.(b)fordepositintheInvestmentAccountonthefifteenth(15th)dayofeachmonthineachyear,asmayberequiredforthepaymentorredemptionoftheTermBondspayablefromtheInvestmentAccount.AnyinterestorinvestmentincomederivedfromtheInvestmentAccountSecuritiesretainedintheInvestmentAccount,shallbecreditedagainsttheamountofRevenuesrequiredtobedepositedintotheInvestmentAccount.ThemoniesdepositedintheInvestmentAccountfortheTermBondspayabletherefromistobeappliedtothepurchaseoftheInvestmentAccountSecurities.ThemoniesdepositedintheInvestmentAccountuntilappliedtothepurchaseofInvestmentAccountSecuritiesmaybeinvestedin(i)directobligationsoftheUnitedStatesofAmerica,(ii)obligationsfullyguaranteedbytheUnitedStatesofAmerica,or(iii)CertificatesofDepositorRepurchaseAgreementscontinuouslyandfullysecuredby(i)or(ii)aboveortheFederalDepositInsuranceCorporation,whichmaturepriortothedatethatsuchmoniesshallberequiredforthepurposesoftheInvestmentAccount.IntheeventthatanyoftheInvestmentAccountSecuritiesshallbecalledforredemptioninaccordancewiththeirterms,themoniesresultingtherefrommayberetainedintheInvestmentAccountandmaybereinvestedinInvestmentAccountSecurities.SuchmoniesorInvestmentAccountSecuritiesmaybeappliedattheoptionoftheCommissionforthepurchaseorredemptionoftheTermBondspayablefromtheInvestmentAccountorthepaymentofsaidTermBondsatmaturity.TheInvestmentAccountSecuritiesshallbeheldintrustbyabankortrustcompanypursuanttoanagreemententeredintobyandbetweentheCommissionandsaidbankortrustcompanyandshallbepledgedandappliedsolelytothepaymentoftheprincipaloftheTermBondsatmaturityortotheirpaymentuponthepriorredemptionthereof.AllinterestorinvestmentincomederivedfromallmoniesandinvestmentsondepositintheInvestmentAccountistoremaininandbecomeapartoftheInvestmentAccountandsuchinterestorinvestmentincomeistobeusedasreceivedandcreditedagainsttheamountofRevenuesrequiredtobedepositedintheInvestmentAccount.UntilappliedforthepurchaseofInvestmentAccountSecuritiesallinterestorinvestmentincomemaybeinvestedasprovidedabove.WhenthereisondepositintheInvestmentAccountasuScientprincipalamountofInvestmentAccountSecuritiestogetherwithanyotherfundsondepositintheInvestmentAccounttopaytheprincipaloftheTermBondspayabletherefromnofurtherdepositsintosaidInvestmentAccountarenecessary.ThereafterallinterestorinvestmentincomederivedfromtheInvestmentAccountSecuritiesistobedepositedintheInterestAccountandusedforthepurposesthereof.SuchinterestorinvestmentincomederivedfromallmoniesandinvestmentsondepositintheInvestmentAccountshallbepledgedtothepurchaseofInvestmentAccountSecuritiesuntilthereisondepositintheInvestmentAccountasu5cientprincipalamountofInvestmentAccountSecuritiestogetherwithanyotherfundsondepositin,theInvestmentAccounttopaytheprincipaloftheTermBondspayabletherefrom.(c)fordepositintotheBondRedemptionAccountonthefifteenth(15th)dayofeachmonthineachyear,beginningonsuchdate,insuchamountsandineachyearasmayberequiredforthepaymentoftheTermBondspayablefromtheBondRedemptionAccount.17 ThemoniesintheBondRedemptionAccountaretobeusedattheoptionoftheCommissionforthepurchaseorredemptionoftheTermBondspayabletherefromorsuchmoniesorinvestmentsmayberetainedintheBondRedemptionAccount,investedandreinvestedasprovidedhereinandapplietothepaymentofsaidTermBondspriortoorattheirmaturity.TheCommissionmayatanytim~purchaseanyofsaidTermBondsatpricesnotgreaterthanthethenredemptionpriceofsaidTermBonds.IftheTermBondsarenotthenredeemablepriortomaturity,theCommissionmaypurchasesaidTermBondsatpricesnotgreaterthantheredemptionpriceofsuchTermBondsonthenextensuingredemptiondate.TheResolutionprovidesthatnodistinctionorpreferenceistoexistintheuseofthemoniesondepositintheRevenueFundforpaymentintotheInterestAccount,thePrincipalAccount,theInvestmentAccountandtheBondRedemptionAccount,suchaccountsbeingonaparitywitheachother.4.Revenuesarenexttobeused,tothefullextentnecessary,fordepositsintotheDebtServiceReserveAccountonthefifteenth(15th)dayofeachmonthineachyear,suchsumsaswillbesufficienttopayanamountequaltoone-twelAhoftwentypercent(1/12thof20%)oftheMaximumAnnualDebtService;provided,however,thatnopaymentsarerequiredtobemadeintosaidDebtServiceR'eserveAccountwheneverandaslongastheamountdepositedthereinisequaltotheMaximumAnnualDebtService.ThereshallbeinitiallydepositedintheDebtServiceReserveAccount,fromtheproceedsderivedfromthesaleoftheBondsandthemoniesandsecuritiestransferredfromthedebtservicereserveaccountscreatedandestablishedfortheOutstandingObligations,anamountequaltotheMaximumAnnualDebtServiceontheBonds.MoniesintheDebtServiceReserveAccou'ntaretobeusedonlyforthepurposeofmakingpaymentsintotheInterestAccount,PrincipalAccount,BondRedemptionAccountandInvestmentAccountwhenthemoniesintheRevenueFundareinsufflcienttherefor.IntheeventthatanymoniesshallbewithdrawnfromtheDebtServiceReserveAccountforpaymentsintotheInterestAccount,PrincipalAccount,BondRedemptionAccountandtheInvestmentAccountsucwithdrawalsshallbesubsequentlyrestoredfromthefirstRevenuesorfundsavailableafterallrequirepaymentshavebeenmadeintosuchAccounts,includinganydeficienciesforpriorpayments.AnymoniesintheDebtServiceReserveAccountinexcessoftheMaximumAnnualDebtServicefortheBondsandanyPariPassuAdditionalBondsmaybetransferredtoanddepositedintheRenewalandReplacementFundandusedasprovidedhereinforsaidfund.5.RevenuesarenexttobeusedforthepaymentofanysubordinatedobligationsissuedbytheCommissioninaccordancewiththeResolution;provided,however,suchsubordinatedobligationsaretobepaid'onlyafterpaymentoftheTransfersofFunds.6.Revenuesarenexttobeused,tothefullextentnecessary,fordepositsintheRenewalandReplacementFundonthefifteenth(15th)dayofeachmonth,suchsumsasshallbesufficienttopayone-twelfth(1/12th)offifteenpercentum(15%)oftheRevenuesderivedfromtheWaterandElectricSystemduringtheprecedingFiscalYear,afterdeductingfromsuchRevenuesasumequaltoonehundredpercentum(100%)ofthefuelexpenseandenergycomponentofpurchasedpowerexpensesincurredduringsuchFiscalYear.NofurtherpaymentsarerequiredtobemadeintotheRenewalandReplacementFundwhenthereshallhavebeendepositedtherein,anamountatleastequaltofifteenpercentum(15%)oftheGrossRevenuesderivedfromtheWaterandElectricSystemfortheprecedingFiscalYear,afterdeductingfromsuchGrossReveneuesasumequaltoonehundredpercentum(100%)ofthefuelexpenseandenergycomponentofpurchasedpowerexpensesincurredduringsuchFiscalYear,provided,however,that(i)suchrequiredamountsfordepositmaybeincreasedordecreasedastheConsultingEngineershallcertifyisnecessaryforthepurposeoftheRenewalandReplacementFund,and(ii)intheeventthattheConsultingEngineershallcertifythattheamountsondepositareexcessiveforthepurposesoftheRenewalandReplacementFundsuchexcessmaybewithdrawnfromtheRenewalandReplacementFundbytheCommissionandusedforanylawfulpurposeinconnectionwiththeWaterandElectricSystem.18 ThemoniesintheRenewalandReplacementFundaretobeused,whennecessary,forthepurposeofpayingthecostsofextensions,improvementsoradditionsto,orthereplacementorrenewalofcapitalassetsoftheWaterandElectricSystem,orextraordinaryrepairsoftheWaterandElectricSystem.ThemoniesintheRenewalandReplacementFundarealsotobeusedforpaymentintotheInterestAccount,PrincipalAccount,InvestmentAccountandBondRedemptionAccountwhenthemoniesintheRevenueFundandDebtServiceReserveAccountareinsufficienttherefor.TheResolutionprovidesthatthereshallbeinitiallydepositedintotheRenewalandReplacementFundallmoniesandsecuritiesondepositintherenewalandreplacementfundscreatedandestablishedbytheproceedingswhichauthorizedtheissuanceoftheOutstandingObligationsandsuchamountsaretobecreditedagainsttheamountrequiredtobedepositedintheRenewalandReplacementFund,asprovidedinthisresolution.7.Thereafter,thebalanceofanyRevenuesremaininginsaidRevenueFundshallbeused(i)tomakeanyTransfersofFunds,and(ii)foranylawfulpurposeinconnectionwiththeWaterandElectricSystem;provided,however,thatnoneofsuchRevenuesistobeusedforthepurposesdescribedin(i)and(ii)ofthisparagraphunlessallpaymentsrequiredinparagraphs(1)to(6)above,includinganydeficienciesforpriorpayments,havebeenmadeinfulltothedateofsuchuse,andtheCommissionshallhavefullycompliedwithallcovenantsandagreementscontainedintheResolution.8.MoniesondepositintheRevenueFund,InterestAccount,PrincipalAccountandintheBondRedemptionAccountmaybeinvested(i)indirectobligationsoftheUnitedStatesofAmerica(ii)inobligationsfullyguaranteedbytheUnitedStates,(iii)inCertificatesofDepositorRepurchaseAgreementscontinuouslyandfullysecuredby(i)or(ii)aboveorinsuredbytheFederalDepositInsuranceCorporation,maturingnotlaterthanthedatesonwhichsuchmonieswillbeneededforthepurposesofsuchfundoraccount,or(iv)suchotherobligationsasarepermittedbytheapplicablelawsoftheStateofFlorida.MoniesondepositintheDebtServiceReserveAccountmaybeinvested(i)indirectobligationsoftheUnitedStatesofAmerica,or(ii)inobligationsfullyguaranteedbytheUnitedStatesofAmerica,maturingnotlaterthanthefinalmaturityofanyoftheBonds.MoniesondepositintheRenewalandReplacementFundmaybeinvested(i)indirectobligationsoftheUnitedStatesofAmerica,(ii)inobligationsfullyguaranteedbytheUnitedStatesofAmerica,(iii)inCertificatesofDepositorRepurchaseAgreementscontinuouslyandfullysecuredby(i)or(ii)aboveorinsuredbytheFederalDepositInsuranceCorporation,or(iv)insuchotherobligationsasarepermittedbytheapplicablelawsoftheStateofFlorida,whichmaturewithinfive(5)yearsfromthetimeofsuchinvestment.AllincomeandearningsreceivedfromtheinvestmentandreinvestmentofmoniesondepositintheInterestAccount,PrincipalAccount,BondRedemptionAccountandRenewalandReplacementFundaretobetransferredonthenextbusinessdayfollowingtheirreceipttotheRevenueFundandusedinthesamemannerandorderofpriorityasothermoniesondeposittherein.AllincomeandearningsreceivedfromtheinvestmentandreinvestmentofmoniesondepositintheInvestmentAccountaretoremainondeposittherein'untilthemaximumamountrequiredtobeondepositinsaidInvestmentAccountisondeposittherein.ThereaftersuchincomeandearningsaretobetransferredonthenextbusinessdayfollowingtheirreceipttotheInterestAccount.AllincomeandearningsreceivedfromtheinvestmentandreinvestmentofmoniesondepositintheDebtServiceReserveAccountaretobetransferredonthenextbusinessdayfollowingtheirreceipttotheInterestAccount.IssuanceofPariPassuAdditionalBonds.TheCommissionmayissuePariPassuAdditionalBondsforthepurposeoffinancingthecostofconstructionofadditions,extensions,andimprovementstoorconstructionofrevenueproducingutilitieswithintheoperation,maintenanceandcontrolorjurisdictionofl9 theCommission,eitheraloneorjointlywithotherpersons,publicbodiesorprivatebodies,orthecostofacquisiuonofrevenueproducingutilitiestobe,whenacquired,withintheoperation,maintenanceandcontrolorjurisdictionoftheCommission,eitheraloneorjointlywithotherpersons,publicbodiesorprivatebodiesorforthepurposeofrefundingoutstandingBondsissuedpursuanttothisResolution.DemandChargeComponents'aredeemedtobePariPassuAdditionalBondsforpurposesoftheResolutioniftheconditionsfortheissuanceofPariPassuAdditionalBondsaremetatthetimeofincurrancewithrespecttotheincurringofsuchDemandChargeComponents.PariPassuAdditionalBondsshallbeissuedpayablefromtheRevenuesoftheWaterandElectricSystemparipassuwithBondsoriginallyauthorizedandissuedpursuanttotheResolution;except,however,thatsuchPariPassuAdditionalBondsarenotsecuredbyorpayablefromthemoniesandinvestmentsondepositintheInvestmentAccount.Theauthorizedbutunissued$75,000,000WaterandElectricRevenueRefundingandImprovementBonds,Series1978,ifissued,shallbeissuedunderthesameconditionsandtermsasPariPassuAdditionalBonds.NosuchPariPassuAdditionalBondsaretobeissuedunlessthefollowing,amongotherconditions,arecompliedwith:(1)TheCommissionmustbecurrentinalldepositsintothevariousfundsandaccountsandallpaymentstheretoforerequiredtohavebeendepositedormadebyitundertheprovisionsofth'ResolutionandhavecompliedwiththecovenantsandprovisionsoftheResolutionandanysupplementalresolutionshereaAeradoptedfortheissuanceofPariPassuAdditionalBonds.(2)TheamountoftheNetRevenues,asadjusted,duringtheimmediateprecedingFiscalYear.oranytwelve(12)consecutivemonthsselectedbytheCommissionofthefifteen(15)monthsimmediatelyprecedingtheissuanceofsaidPariPassuAdditionalBonds,ascertifiedbytheConsultingEngineer,willbeequaltoOneHundredFiftypercentum(150%)oftheMaximumAnnualDebtServiceonoutstandingBondsandthePariPassuAdditionalBondsthenproposedtobeissued.Forthepurposeofthissummarythephrase"immediateprecedingFiscalYearorthetwelve(12)consecutivemonthsofthefifteen(15)monthsimmediatelyprecedingtheissuanceofsaidPariPassuAdditionalBonds"shallbesometimesreferredtoas"twelve(12)consecutivemonths".TheNetRevenuescalculatedpursuanttotheforegoingsubsection(2)maybeadjusted,attheoptionoftheCommission,asfollows:(a)IftheCommission,priortotheissuanceqftheproposedPariPassuAdditionalBonds,shallhaveincreasedtherates,fees,rentalsorotherchargesfortheservicesoftheWaterandElectricSystem,theNetRevenuesforthetwelve(12)consecutivemonthsimmediatelyprecedingtheissuanceofsaidPariPassuAdditionalBonds,shallbeadjustedtoshowtheNetRevenueswhichwouldhavebeenderivedfromsaidWaterandFlectricSysteminsuchtwelve(12)consecutivemonthsasifsuchincreasedrates,fees,rentalsorotherchargesfortheservicesofsaidWaterandElectricSystemshadbeenineffectduringallofsuchtwelve(12)consecutivemonths'.(b)IftheCommissionshallhaveacquiredorhascontractedtoacquireanyprivatelyorpubliclyownedexistingwatersystemorelectricsystem,thecostofwhichshallbepaidfromallorpartoftheproceedsoftheissuanceoftheproposedPariPassuAdditionalBonds,thentheNetRevenuesderivedfromtheWaterandElectricSystemduringthetwelve(12)consecutivemonthsimmediatelyprecedingtheissuanceofsaidPariPassuAdditionalBonds,shallbeincreasedbyaddingtotheNetRevenuesforsaidtwelve(12)consecutivemonthstheNetRevenueswhichwouldhavebeenderivedfromsaidexistingwatersystemorelectricsystemasifsuchexistingwatersystemorelectricsystemhadbeenapartoftheWaterandElectricSystemduringsuchtwelve(12)consecutivemonths.(c)IftheCommission,inconnectionwiththeissuanceofPariPassuAdditionalBonds,shallenterintoacontract(withadurationnotlessthanthefinalmaturityofsuchPariPassuAdditionalBonds)withanypublicorprivateentitywherebytheCommissionagreestofurnishservicesinconnectionwithanywatersystemorelectricsystem,'thentheNetRevenuesoftheWaterandElectric20 Systemduringthetwelve(12)consecutivemonthsimmediatelyprecedingtheissuanceofsaidPariPassuAdditionalBondsshallbeincreasedbytheleastamountwhichsaidpublicorprivateentityshallguaranteetopayinanyoneyearforthefurnishingofsaidservicesbytheCommission,afterdeductingtherefromtheproportionofoperatingexpensesandrepair,renewalandreplacementcostattributableinsuchyeartosuchservices.SuchpaymentsshallbedeemedtobeRevenuesderivedfromsaidWaterandElectricSystemandpledgedfortheBondsinthesamemannerasotherRevenuesderivedfromsaidWaterandElectricSystem.(d)IftheCommissionshallbeconstructingoracquiringadditions,extensionsorimprovementstotheWaterandElectricSystemfromtheproceedsofsuchPariPassuAdditionalBondsandshallhaveestablishedratesorchargestobechargedandcollectedfromusersofsuchfacilitieswhenserviceisrendered,suchNetRevenuesmaybeadjustedby(i)addingtheretoeightypercent(80%)oftheaverageannualNetRevenuesestimatedbytheConsultingEngineertobederivedduringthefirstthreeFiscalYearsofoperationaftercompletionoftheconstructionoracquisitionofsaidadditions,extensionsandimprovementstotheWaterandElectricSystem,and(ii)dividingsuchtotalamountbytwo(2).Insurance.ThattheCommissionisrequiredtocarrysuchinsuranceasisrequiredbytheStateofFloridaorisordinarilycarriedbyprivateorpubliccorporationsowningandoperatingsimilarutilitiesastheWaterandElectricSystemwithareputableinsurancecarrierorcarriers,includingpublicliabilityinsuranceandsuchotherinsuranceagainstlossordamagebyfire,explosion,hurricane,cycloneorotherhazardsandrisks.BooksandRecords.AnyholderofaBondorBondsshallhavetherightatallreasonabletimestoinspectsaidWaterandElectricSystemandallpartsthereof,andallrecords,accountsanddataoftheCommissionrelatingthereto.TheCommissionisrequiredtopromptlyafterthecloseofeachFiscalYearcausethebooks,recordsandaccountsoftheWaterandElectricSystemforsuchFiscalYeartobeproperlyauditedbyaqualified,recognizedandnationallyknownindependentfirmofcertifiedpublicaccountants,andshallfilethereportofsuchcertifiedpublicaccountantsintheofiiceoftheGeneralManageroftheCommissionandshallmailuponrequest,andmakeavailablegenerally,saidreport,orareasonablesummarythereof,toanyholderorholdersofBondsissuedpursuanttothisresolution.OperatingBudget.ThattheCommissionisrequiredtoannuallyprepareandadoptbyproperproceedingsofitsgoverningbodyadetailedbudgetoftheesumatedexpendituresforoperationandmaintenanceoftheWaterandElectricSystemduringthesucceedingFiscalYear.TheCommissionisrequiredtomailcopiesofsuchannualbudgetandallresolutionsauthorizingincreasedexpendituresforoperationandmaintenancetoanyholderorholdersofBondswhoshallfilehisaddresswiththeCommissionandrequestinwritingthatcopiesofallsuchbudgetsandresolutionsbefurnishedhimorthem,andshallmakeavailablesuchbudgetsandallresolutionsauthorizingincreasedexpendituresforoperationandmaintenanceoftheWaterandElectricSystematallreasonabletimestoanyholderorholdersoftheBonds.MaintenanceoftheWaterandElectricSystem.TheCommissionhascovenantedtomaintaintheWaterandElectric,SystemingoodconditionandcontinuouslyoperatethesameinaneScientmannerandatareasonablecostasarevenueproducingenterprise.TheCommissionisalsorequired,priortotheendofeachFiscalYear,tocausetheWaterandElectricSystemtobeinspectedbytheConsultingEngineers,whoarerequiredtomakeawrittenreportofsuchinspectionandoftheconditionoftheWaterandElectricSystemandarerequiredtofilesuchannualreportwiththeoriginalpurchasersoftheBondsandtheCommission.TheCommissionisrequiredtomailuponrequest,andmakeavailablegenerally,thereportofsaidConsultingEngineers,orareasonablesummarythereof,toanyholderofBondsissuedpursuanttotheResolution.ServicesRenderedByTheCommission.TheCommissionisprohibitedundertheResoluuonfromrenderinganyfreeservicesofanynaturebyitsWaterandElectricSystemoranypartthereof,norwillany21 preferentialratesbeestablishedforusersofthesameclass;andintheeventtheCity,oranyotherpoliticalsubdivision,publicbody,oranydepartment,agencyorinstrumentality,ofiiceroremployeethereof,shallavailitselfofthefacilitiesorservicesprovidedbysaidWaterandElectricSystemoranypartthereof,thsamerates,feesorchargesapplicabletoothercustomersreceivinglikeservicesundersimilarcircumstancesarerequiredtobechargedtheCity,orsuchotherpoliticalsubdivision,publicbody,oranysuchdepartment,agency,instrumentality,oificeroremployee.SuchprovisionsshallnotbedeemedinanywaytoapplytoanyreducedratesforanyclassificationofusersforservicesandfacilitiesoftheWaterandElectricSysteminefiectonthedateoftheadoptionoftheResolutionandshallbesubjecttoanypresentorfutureapplicablelawsorregulations.EnforcementofCollections.TheCommissionhascovenantedthatitwilldiligentlyenforceandcollectallfees,rentalsorotherchargesfortheservicesandfacilitiesoftheWaterandElectricSystem,andtakeallsteps,actionsandproceedingsfortheenforcementandcollectionofsuchfees,rentalsorotherchargeswhichshall.becomedelinquenttothefullextentpermittedorauthorizedbyapplicablelawsandregulations.NoCompetingSystem.NeithertheCommissionnortheCitywillgrantanyfranchise,licenseorpermit,orcauseorpermitthegrantingofanyfranchise,licenseorpermit,toanyfirm,corporation,agencyorbody,publicorprivate,oranypersonwhatsoever,forthesupplyingofwaterand.electricpowerwithinthecorporatelimitsoftheCityincompetitionwiththeWaterandElectricSystem,exceptasmaynowexist.DischargeandSatisfaction.Thecovenants,liensandpledgesenteredinto,createdorimposedpursuanttotheResolutionmaybefullydischargedandsatisfiedwithrespecttotheBondsinanyoneormoreofthefollowingways:(I)by-payingtheprincipalofandinterestonBondswhenthesameshallbecomedueandpayable;or(2)bydepositingintheInterestAccount,PrincipalAccount,InvestmentAccount,andBonRedemptionAccountandsuchotheraccountsmoniessuScientatthetimeofsuchdeposittopaytheBonds,allappurtenantinterestcouponsandtheredemptionpremium,ifany,asthesamebecomedueontheBondsonorpriortotheredemptiondateormaturitydatethereof;or(3)bydepositingintheInterestAccount,PrincipalAccount,InvestmentAccountandBondRedemptionAccountandsuchotheraccountsmonieswhichwheninvestedindirectobligationsoftheUnitedStatesofAmericaorobligationsfullyguaranteedbytheUnitedStatesofAmericaorintimedepositsinbanksortrustcompaniesfullysecuredbydirectobligationsoftheUnitedStatesofAmericaorobligationsthatarefullyguaranteedbytheUnitedStatesofAmerica,willprovidemonieswhichshallbesufilcienttopaytheBonds,allappurtenantintere'stcouponsandtheredemptionpremium,ifany,asthesameshallbecomedueontheBondsonorpriortotheirredemptiondateormaturitydatethereof.ModificationorAmendment.Nomaterialmodificationoramendmentofthisresolutionorofanyresolutionamendatorythereoforsupplementalthereto,maybemadewithouttheconsentinwritingoftheholdersoftwo-thirdsormoreinprincipalamountoftheBondsthenoutstanding;provided,however,thatnomodificationoramendmentshallpermitachangeinthematurityofsuchBondsorareductionintherateofinterestthereon,orafiecttheunconditionalpromiseoftheCommissiontofix,maintainandcollectfees,rentalsandotherchargesfortheWaterandElectricSystemortopaytheinterestofandprincipalontheBonds,asthesamematureorbecomedue,fromtheRevenuesoftheWaterandElectricSystem,orreducesuchpercentageofholdersofsuchBondsrequiredaboveforsuchmodificationoramendments,withouttheconsentoftheholdersofalltheBonds.22 LITIGATIONSetforthbelowisasummaryoftheitemsofmateriallitigationinwhichtheCommissioniscurrentlyinvolved:OnMay16,1979,thehnaljudgmentwasrenderedinanallegedclassactionlawsuitbroughtbyRosalindHoldingCompanyagainsttheCityofOrlandoandOrangeCounty,aswellastheCommission.ThejudgmentfoundagainsttheplaintiffsandfortheCommissionaswellastheotherdefendantsand,inaddition,dismissedthecomplaint.Theplaintiffhasfilednoticeofappeal.ThelawsuitseekstoenjointhemakingofpaymentbytheCommissiontoOrangeCountyof1%oftheCommission'sgrosselectricrevenuesearnedoutsidetheCityandtorequirerepaymentoftheamountspaid,amountingtoabout$12,000permonthsinceMarch,1973.Secondly,itseekstoenjointheCommissionfromtransferringtothegeneralfundoftheCityanypartoftheCommission'sprofitsfromitsoperations,whichiscurrentlythepractice.ThecomplaintalsoallegedthattheCommission'sratesareunreasonable,thatpaymentsforcertainexpensesareunreasonableandseeksanawardforoverchargesfrom'1970todateplusattorneys'ees.Iftheplaintiffisultimatelysuccessful,theamountofliabilitywhichcouldbeimposedupontheCommissionisalmostimpossibletoestimateatthistime.LegalcounselfortheCommissionisoftheopinionthatthesuitisnotwellfounded.TheCommissionisdefendingalawsuit,broughtbyUnitedStatesFidelity&GuarantyCompany,seekingdamagesinconnectionwithallegedcontractualliabilityarisingoutofaconstructionprojectononeoftheCommission'spowerplants.Themaximumliabilityisestimatedatapproximately$1,100,000.LegalcounselfortheCommissionisoftheopinionthatthissuitisnotwellfoundedandthatCommission'scounterclaimfor$2,500,000iswellfoundedalthoughnotnecessarilyfullycollectible.TherestillexistsapossiblebreachofcontractlawsuitwithIndevcoastheclaimantwhichcouldinvolveasmuchasapproximately$85,000inpossibleliability.Indevcohasfurtherthreatenedthatintheeventitdoesnotprevailonthatmatter,itmaybringaclassactionagainsttheCommission,althoughintheopinionofcounselthesuccessofsuchanactionisremote.TheCommissioniscurrentlythedefendantintwobodilyinjurycases.However,anypossiblerecoveryisthoughttobemorethanadequatelycoveredbyinsurance.TheattorneysfortheCommissionareoftheopinionthatthechanceofanadversejudgmentisminimal.TheEnvironmentalProtectionAgencyhasissuedapermitfortheCommission'sIndianRiverelectricgeneratingplantwhichmayinelfectrequiretheCommissiontoprovideanoff-streamcoolingwatersystemforsuchplantbysomedateinthemid-1980'sintheeventthatanongoingecologicalstudyintheopinionoftheAgencyshowsthatthepresentcoolingsystemisdoingsubstantialdamagestotheecologicalsystemoftheadjacentportionoftheIndianRiver.ThecosttotheCommissionofsuchstudyisestimatedtobe$800,000.ThefinaldeterminationoftheAgencyisappealabletothecourts.Ifconstructionofoff-streamcoolingfacilitieswerebegunnow,itisestimatedthattheywouldcostapproximately$21,000,000,whichfigurewouldinalllikelihoodsubstantiallyincreasebythetimeconstructionwasbegun,ifitisrequired.TheCommission,alongwithmostoftheutilities,bothpublicandinvestorownedinthestateandincludingallthelargeones,iscurrentlygoingthroughanadministrativeproceduretoattempttorelaxtheopacityandparticulatesrulesundertheCleanAirAct.IftheEnvironmentalProtectionAgencydoesnotrelaxtherequirementsbyearlyAugust,alargeportionofthestate'sentiregeneratingcapacityincludingtheCommission'swouldhavetobeeliminated,ortheofficersofthevariouscompanieswouldfacecriminalchargesandthecompanieswouldbesubjecttofines.DiversifiedFuels,Inc.,anon-Floridacorporation,recentlyfiledanactionagainsttheCityofLakelandseekinganinjunctionandadeclaratoryjudgmentbasedonthegeneralallegationthatLakelandusedanimproperprocessintakingbidsandnegotiatingwiththelowbidderforthecoalsupplyrequiredfortheJointOwnershipProject.TheCommissionwas,andis,vitallyinterestedinthisactioninasmuchasitwillown40%oftheunitandwillreceive40%ofthepower.TheCommissionintervenedintheactionandahearingfortemporaryinjunctionwasheld,withthecourtfindingagainsttheplaintiKThisdoesnot23 disposeoftheactionandpresumablyatsometimetherewillbeahearingrelativetotherequestforpermanentinjunctionaswellasoneormorehearingsontheCommission'smotionstodismiss.IntheopinionoflegalcounselfortheCommissionthesuitisnotwellfounded.Thereisnolitigationorcontroversyofanynaturenowpendingorthreatenedtorestrainorenjointhesale,execution,issuanceordeliveryofthe1978AImprovementBonds,orinanywaycontestingthevalidityofthe1978AImprovementBondsoranyproceedingsoftheCommissiontakenwithrespecttotheauthorization,saleorissuanceofthe1978AImprovementBonds,orthepledgeorapplicationofanymoniesorsecuritiesprovidedforthepaymentorsecurity,ofthe1978AImprovementBonds.RATINGS'Moody'sInvestorService,Inc.Moody'sInvestorsService,Inc.("Moody's")hasgiventhe1978AImprovementBondsaratingofAa.BondswhichareratedAaarejudgedbyMoody'stobeofhighqualitybyallstandardsandaregenerallyconsideredhighgradebonds.TheyareratedlowerthantheAaabondsbecausemarginsofprotectionmaynotbeaslargeasinAaasecuritiesorfluctuationofprotectiveelementsmaybeofgreateramplitudeortheremaybeotherelementspresentwhichmakethelong-termrisksappearsomewhatlargerthaninAaasecurities.Standard&Poor'sCorporationStandard&Poor'sCorporation("Standard&Poor's"}hasgiventhe1978AImprovementBondsaratingofAA.BondsratedAAareconsideredbyStandard&Poor'stoqualifyashigh-qualitydebtobligations.Theissuer'scapacitytopayprincipalandinterestisconsideredverystrong.TheCommissionfurnishedtosuchratingagenciescertaininformationandmaterialsinrespecttotheCommissionandthe1978AImprovementBonds.Generally,ratingagenciesbasetheirratingsonsuchinformationandmaterialsandoninvestigations,studiesandassumptionsmadebytheratingagencies.Thereisnoassurancethatsuchratingswillbemaintainedforanygivenperiodoftimeorthattheymaynotbeloweredorwithdrawnentirelybytheratingagencies,oreitherofthem,ifintheiroritsjudgmentcircumstanceswarrant.Anysuchdownwardchangeinorwithdrawalofsuchratings,oreitherofthem,mayhaveanadverseeffectonthemarketpriceofthe'1978AImprovementBonds.TAXEXEMPTIONIntheopinionofBondCounsel,interes'tonthe1978AImprovementBondsisexemptfromallFederalincometaxationunderexistinglawsandfromtaxationunderthelawsoftheStateofFlorida,exceptastoestatetaxesandtaxesimposedbyChapter220,FloridaStatutes,oninterest,incomeorprofitsondebtobligationsownedbycorporations,banksandsavingsassociations.LEGALITYThe1978AImprovementBondswerevalidatedbyjudgmentoftheCircuitCourtoftheNinthJudicialCircuitinandforOrangeCounty,FloridarenderedonMay12,1978,fromwhichjudgmentnoappealwastakenduringtheapplicableappealperiod.Alllegalmattersinconnectionwiththeissuanceofthe1978AImprovementBondsaresubjecttotheapprovalofMudgeRoseGuthrie&Alexander,NewYork,NewYork,BondCounseltotheCommissionwhoseapprovingopinionwillbeavailableatthetimeofdeliveryofthe1978A-ImprovementBonds.CertainlegalmattersinconnectionwiththeoAeringofthe1978AImprovementBondswillbepassedoninbehalfoftheCommissionbyJ.ThomasGurney,Sr.,ofGurney,Gurney&Handley,P.A.,Orlando,Florida;CounseltotheCommission.MISCELLANEOUSSofarasanystatementsmadeinthisOIIicialStatementinvolvemattersofopinionorofestimates,whetherornotexpresslystated,theyaresetforthassuchandnotasrepresentationsoffact.Norepresentationismadethatanyoftheopinionsorestimateswillberealized.24 OFFICIALSTATEMENTAsofthedatehereof,theCommissionhasnotmettoconsideraresolutionastotheformofthisOfficialStatementdatedJuly27,1979.CERTIFICATECONCERNINGOFFICIALSTATEMENTItisexpectedthattheCommissionwillapprovetheformanduseofthisOfficialStatementatitsAugust14,1979meeting.Thecertiticatesetforthinthenextsucceedingparagraphwillbeexecutedasofthedateofdeliveryofthe1978AImprovementBonds.We,theundersignedExecutiveVicePresidentandGeneralManager,andManagerofFinancialOperationsoftheOrlandoUtilitiesCommission,DOHEREBYCERTIFYTHAT(i)wehavereviewedtheOfficialStatementdatedJuly27,1979withrespecttothe$40,000,0001978AImprovementBondsoftheOrlandoUtilitiesCommission(the"OflicialStatement"),andthattothebestofourknowledgeandbeliefthestatementsthereinaretrueandcorrect;and(ii)nothinghascometoourattentionwhichwouldleadustobelievethattheOfficialStatementcontainsanuntruestatementofamaterialfactoromitstostateamaterialfactwhichshouldbeincludedthereinforthepurposeforwhichtheOfficiaStatementisintendedtobeused,orwhichisnecessarytomakethestatementscontainedtherein,inlightofthecircumstancesunderwhichtheyweremade,notmisleading.INWITNESSWHEREOF,wehavehereuntosetourhandsthis7thdayofAugust,1979.ORLANDOUTILITIESCOMMISSIONByBy25 QRLANDQLITILITIESCQIVIMISSIQN500SOUTHORANGEAVENUE~P.O.BOX3193~ORLANDO,FLORIDA32802~305/423-9100GROVERC.BRYANPresidentMANAGEMENTLETTERCHARLESJ.HAWKINSFirstVicePresidentGRACEC.LINOBLOMSecondVlccPresidentCARLT.LANGFOROMayorHENRYT.MEINERImmediatePastPresidentCURTISH.STANTONExecvtlveVicePresident8GeneralManagerTheCommissionhadaverygoodyearin1978.InApriltheCommissionapprovedtheadvancerefundingofallitswaterandelectricrevenuebonds,outstandingApril1,1978intheamountof$123,325,000,bythesaleof$110,330,000WaterandElectricRefundingandImprove-mentBonds,and$94,650,000SpecialObligationBonds.Inaccordancewithgenerallyacceptedaccountingprinciples,theCommissionrecognizedthegainof$11,686,231inthisyear'sincomeasanextraordinaryitem.IntheyearendingSeptember30,1978,grossrevenuesincreased$63million;operatingexpenses,increased$4.3million.Incomebeforetheextraordinaryincomefromrefundingincreased$3.6millionor33K.Thetotalactiveelectricservices,yearendingSeptember30,were81,219anincreaseof2,482or3.2Xfromthepreviousyear.Activewaterservi'ceswere62,549,anincreaseof1,697or'.8%.Theaveragepriceperkilowatthourforresidentialelectricservicedecreasedfrom3.85tt:in1977to3.72tt:.for1978.Averageannualuseofelectricity,forthesameclassofcustomers,increasedfrom12,188kilowatthoursin1977to12,411in1978,anincreaseof1.8X.Inordertomeetthefuturepowerrequirementsofitscustomers,theCommissionenteredintoaparticipationagreementinIAprilwiththeCityofLakeland,Florida,forthejointownershipofa364megawattcoal-firedplant.Itisanticipatedthatthisunitwillcomeonlinein1982.J.THOMASGURNEY,SR.GeneralCovnselP.O.Box1273Orlando,FL32802305/843-8500H.StantonExecutiveVicePresident8GeneralManager APPENDIXArnstkErnst...,...........,....E332NorthMagnoliaAve.~MailAddressPOBox3426~Orlando,FL32802~Phone305/841-2050OrlandoUtilitiesCommissionOrlando,FloridaWehave'xaminedthebalancesheetsoftheOrlandoUtilitiesCommissionasofSeptember30,1978and1977,andtherelatedstatementsofincomeandaccumulatedretainedearningsandchangesinfinancialpositionfortheyearsthenended.Ourexaminationsweremadeinaccordancewithgenerallyacceptedauditingstandardsand,accordingly,includedsuchtestsoftheaccountingrecordsandsuchotherauditingprocedures.asweconsiderednecessaryinthecircumstances.Znouropinion,thefinancialstatementsreferredtoabovepresentfairlythefinancialpositionoftheOrlandoUtilitiesCommissionatSeptember30,1978and1977,andtheresultsofitsoperationsandthechangesinitsfinancialpositionfortheyearsthenended,inconformitywithgenerallyacceptedaccountingprinciplesappliedonaconsistentbasis.Orlando,FloridaNovember27,1978 BALANCESNEETSORLANDOUTILITIESCOMMISSIONASSETSSeptember3019781977UTILITYPLANTInservice:ElectricWaterCommonAllowancesfordepreciationandamortization(deduction)$196,755,27743,899,67711,668,344$194223,48542,240,21011,627,269(83818587)(77408711)168,504,711170,682,253Constructionwork-in-progress-Note-E90313285608602177,536,039176,290,855RESTRICTEDASSETS-NoteBDebtservicefundsConstructionandrelatedfundsCURRENTASSETSCashShort-.terminvestmentsCustomeraccountsreceivable,lessallowancefordoubtfulaccounts(1978-$196,531'977-$129,688)~AccruedutilityrevenuesMaterialsandsuppliesAccruedinterestreceivableMiscellaneousreceivables,prepaidexpensesanddeferredcharges15,664,6611840272434,067,385356,08414,705,0008,311,8133,679,3585,810,235218,13639651233,477,13813,763,6061978116233,544,768299,26,600,0006,548,2343,748,0916,912,263186,251225604226,550,132A-2 LIABILITIESANDCAPITALIZATIONSeptember3019781977CAPITALIZATIONEquity:Accumulatedretainedearnings:AppropriatedfordebtserviceInvestedinorappropriatedforutilityplantandworkingcapitalContributedcapitalLong-terradebt(currentmaturities:1978-$-0-;1977-$3,560,000)-NoteC:BondprincipalUnamortizeddiscountandexpense(deduction)103667986115,904,2004515014120,419,21488403947961009,674374227799,751,951110,330,000126,885,000-0-(1355636)110330,000125529364230~749t214225>281,315$12,236,214$7,605,727.CURRENTLIABILITIES,(excludingcurrentmaturitiesoflong-termdebt)AccountspayableandaccruedexpensesUtilityplantconstructioncontractsAccruedinterestpayableonlong-termdebtCustomermeterdepositsandinterestthereonCollectionsforstateandpoliticalsubdivisionsDuetotheGeneralFundoftheCityofOrlando-NoteD3,800,435-0-3,428,4472,311,1881,919,35448457811,944,0022,577,77523,4662,597,8791,937,9481,697,7453213839,156,196OTHERLIABILITIESCustomerwaterandelectriclineextensiondepositsCOMMITMENTSANDCONTINGENTLIABILITIES-NoteE2,387,3461,948,244240226SeenotestofinancialstatementsA-3 STATEMENTSOFINCOMEANI)hCCUMULATEl)RETAJ.NJ',I)EARNINGSORLANDOUTILITIESCOMMISSIONYearEndedSeptember3019781977Operatingrevenues$96,649,494$90,318,997Operatingexpenses:ProductionTransmissionanddistributionCustomeraccountingGeneralandadministrativeStateutilitiestaxConsumereducationPaymentstotheGeneralFundoftheCityofOrlando-NoteDDepreciation-NoteA56,810,2005,155,8711,988,9644,826,1961,023,166111,4112860474"7277628223,873,2127412202'4,095,8344,586,9961,903,5123,910,8601,073,388122,41028318596852485921,794,138726202116,461,01014,532,117Interestandotherincome334953822146Otherdeductions-principallyinterestINCOMEBEFOREEXTRAORDINARYITEM16,746,19,810,5485342253590273714,468,29510,844,074Extraordinaryitem-gainonadvancerefundingoflong-termdebt-NoteF11686231-0-NETINCOME26,154,52610,844,074Accumulatedretainedearningsat'eginningofyear9600967489948365122,164,200'00,792,439TransferstotheGeneralFundoftheCityofOrlando-NoteD6,2600004.782765ACCUMULATEDRETAINEDEARNINGSATENDOFYEAR042060674SeenotestofinancialstatementsA-4 O'I'hTEMENTSOFCIIANGESINFINANClhl.VOSi'I'IONORLANDOUTILITIESCOMMISSIONSOURCEOFFUNDSIncomebeforeextraordinaryitemChargestooperationsnotrequiringcurrentoutlayofworkingcapital:DepreciationandamortizationAmortizationofbonddiscountandexpenseTOTALFROMOPERATIONSBEFOREEXTRhORDTNhRYITEMExtraordinaryitem-gainonadvancerefundingoflong-term.debtAmortizationofbonddiscountandexpensenotrequiringcurrentoutlayofworkingcapitalYearEndedSeptember301978'19777,810,044468677,605,460116942,22,325,20618,566,47611,686,2311308769-0--0-$14,468,295$10,844,07412995000-0-TOTALFROMOPERATIONSProceedsfromthesaleofrevenuebondsContributedcapitalIncreaseinotherliabilities18,566,4769,875,000624,3348376535,320,206110,330,000772,737439102146,862,04529,149,575APPLICATIONOFFUNDSAdditionstoutilityplant-netTransferstotheGeneralFundoftheCityofOrlando,Reductionoflong-termdebtIncreaseinrestrictedassetsExpensesattributabletosaleofrevenuebonds9,055,2286,2607000126,885,000522,617-0-5,824,1734,782,7653,285,00010,673,79812612914272284524691865INCREASEINWORKINGCAPITAL420044770CHANGESINCOMPONENTSOFWORKINGCAPITALIncrease(decrease)incurrentassets:CashShort-terminvestmentsCustomeraccountsreceivableMaterialsandsuppliesOtherreceivablesandaccountsIncrease(decrease)incurrentliabilities:Accountspayablean'daccruedexpensesUtilityplantconstructioncontractsAccruedinterestpayableonlong-termdebtCustomermeterdepositsandinterestthereonCollectionsforstateandpoliticalsubdivisionsDuetotheGeneralFundoftheCityofOrlandoINCREASEINWORKINGCAPITAL$56,8338,105,0001,763,579(1,102,028)(1,896378)6,927,0061,222,660(23,466)830,568373,240221,609163,195278780641200$(1,884,013)3,100,0002,508,60321,40219843395,730,331208,545(265,950)232,194581,474446,247701111272621447710SeenotestofinancialstatementsA-5 NOTESTOFINANC1ALSTATEMENTSORLANDOUTILITIESCOMMISSIONNOTEA-SUMMARYOFSIGNIFICANTACCOUNTINGPOLICIESwhichincludespayrollandrelatedcost,generalandadministrativecostandcostofequipmentusedinconstruction.ItisthepolicyoftheCommissionnottocapitalizeinterestduringconstruction.DereciationandMaintenance:Theutilityplantisbeingdepreciatedusingthestraight-linemethod,atratescalculatedtoamortizethecostovertheestimatedeconomicusefullivesoftheassets.TotaldepreciationandamortizationfortheyearsendedSeptember30,1978andSeptember30,1977amountedto$7,897,044and$7,665,460,respectively.Suchamountsarechargedtodepreciationexpense,operatingexpensesandutilityplantaccounts,asappropriate.TheCommissionchargesmaintenancewiththecostofrepairsandminorrenewalsofproperty,andtheplantaccountswiththecostofrenewalsandreplacementofpropertyunits.Thecostofsignificantunusualrepairsaredeferredandamortizedoverperiodsnotexceeding24months.Reclassifications:CertainitemsonthebalancesheetasofSeptember30,1977havebeenreclassifiedtobecomparativetocurrentyearclassificatiMaterialsandSulies:Materialsandsuppliesare.statedataveragecost.NOTEB-RESTRICTEDASSETSRestrictedassetsconsistofthefollowing:September3019781977Increase(Decrease)SinkingFundSinkingFundReserveRenewalandReplacementFundConstructionTrustFunds$6,417,4129,247,2496,288,42612114,298$4,377,8969,385,7106,377,63613403,526$2,039,516(138,461)(89,210)(1289228)TOTALS340644622617Theabovefundsareclassifiedas:DebtservicefundsConstructionandrelatedfunds$15,664,66118402,724$13,763,60619781162.aa$1,901,055(1378438)22617A-6 NOTESTO,.FINANCIALSTATEMENTS--CONTLNUEDORLANDOUTILITIESCOMMISSIONNOTEB-RESTRICTEDFUNDS-CONTINUEDSeptember3019781977Increase(Decrease)Thefundsconsistof:CashandCertificatesofDepositUnitedStatesTreasurysccurities--atcost(approximatemarketvalue:1978-$25,875,000;1977--$29%700,000)Short-terminvestmentsInterestreceivableOrlandoUtilitiesCommissionRevenueBonds-atcost25,754,56729,569,5303,479,000-0-399,355.155,997(3,814,963)3,479,000,243,3585895858958-0-$4,375,505$3,760,283$615,222TOTALS47834476822NOTEC-LONG-TERMDEBTByresolutiondatedApril18,1978,theCommissionprovidedfortheadvancerefundingofallofitswaterandelectricrevenuebondsoutstandingatApril1,1978intheaggregateprincipalamountof$123,325,000(RefundedBonds)bythesaleof$110,330,000WaterandElectricRevenueRefundingandImprovementBonds,Series1978and$94,650,000SpecialObligationBonds,Series1978.Promtheproceedsofthesaleofthetwoissues,monieswereinvestedinUnitedStates'bligationsinan'rrevocableEscrowDepositTrustFund.SuchUnitedStatesobligationswillmatureatsuchtimeandinsuchamountssoastoprovidesufficientfundsforthepaymentofmaturingprincipalandinterestontheRefundedBonds.AllinterestearnedoraccruedontheUnitedStatesobligationshasbeenpledgedandwillbeusedforthepaymentoftheprincipalandinterestontheSpecialObligationBonds,Series1978.TheRefundedBondsaretreatedasextinguisheddebtsintheaccompanyingfinancialstatementseventhoughtheRefundedBondsdonothaveaprovisionfordefeasance.ThetransactionhasbeenaccountedforinthesamemannerasadefeasedtransactionbecausetheobligationoftheCommissionfortheRefundedBondshasbeensatisfiedinsubstanceal-thoughnotinform.TheWaterandElectricRevenueRefundingandImprovementBonds,Series1978arepayablefromandsecuredbyalienuponandpledgeofthenetrevenuesderivedbytheCommissionfromtheoperationofthewaterandelectricsystemandfrominvestmentincomeearnedonmoniesandobligationsincertainsinkingfundaccounts.A-7 NOTESTOFINANCIALSTATEMENTS-CONTINUEDORLANDOUTILITIESCOMMISSIONNOTEC-LONG-TERMDEBT--CONTINUEDInNovember1976,theCommissionenteredintoanadvancerefunding'trans-actionwherebyWaterandElectricRevenueRefundingBondsintheprincipalamountof$8,875,000wereissuedtofacilitatethefutureretirementoftheCommission'soutstanding1975AWaterandElectricRevenueBonds.TheproceedsoftheRefundingBondsweredepositedintoanirrevocableescrowaccountandwillbeinvestedinUnitedStatesTreasuryobligationsthat,togetherwiththeinterestearnedthereon,willprovidesufficientfundsforthepaymentof$375,000maturingprincipaloftheRefundingBonds,interestontheRefundingBondsuntilApril1,1985,andthe$8,710,000outstandingprincipalandcallpremiumonthe1975ARevenueBonds.InaccordancewiththeprovisionsoftheRefundingBondTrustIndenture,the1975ARevenueBondswillbecalledforredemptionandpaymentonApril1,1985atacallpremiumof$210,000.Untilsuchdate,theprincipalandinterestrequirementspertainingtothe1975RevenueBondswillremaintheobligationoftheCommission.ThebondsoutstandingasofSeptember30areasfollows:197819771957series,3%-3.7%,dueseriallyto1984.1959series,.3.25%-3.6%,dueseriallyto19861962series,2%-6%,dueseriallyto19921970series,4%-6%,dueseriallyto19961971series,3.5%-5.5%,dueseriallyto19981973series,4%-6%,dueseriallyto20031975Aseries,4.5%-6%,dueseriallyto2002;outstandingprincipal($9,900,000)lessamountstoberetiredbyTrustee($8,500,000).1975Bseries,4.9%-,5.7%,dueseriallyto20021976series,5%-6%,dueserially1977to2002;outstandingprincipal($8,865,000)lessamountstoberetiredbyTrustee($365,000)1978series,5.8%-6.375%,dueserially1994to2008-0--0--0--0--0--0-$11,975,006,200,00024,000,00019,115,000.31,895,00013,925,000-0--0-1,400,0009,875,000110330000-0-8,500,000TOTALSI03300002688000 NOTESTOFINANCIALSTATEMENTS-CONTINUEDORLANDOUTILITIESCOMMISSIONNOTED-PAYMENTSANDTRANSFERS-GENERALFUNDOFTHECITYOFORLANDOTheCommissionmadepaymentsbasedongrossrevenuesfromserviceswithintheCitytotheGeneralFundoftheCityofOrlando.TheCommissiontrans-ferredadditionalmoniestotheGeneralFundoftheCityofOrlandobasedontheCommission'sincome.NOTEE-COMMITMENTSANDCONTINGENTLIABILITIES(1)Byresolution,theOrlandoUtilitiesCommission,onJuly12,1955,appropriated$180,000annuallyforaperiodof26yearscommencingApril1,1955,fortheretirementoftheSewerRevenueBondsoftheCityofOrlandodatedApril1,1955,intheamountof$5,438,000.ByanagreementbetweentheCityandtheOrlandoUtilitiesCommission,theCommissionmayoffsetthiscontributionagainsttheCityofOrlandoutilitiestax.TheagreementwherebytheCommissionpledges$180,000ofitsrevenuesannuallyhasbecomeapartoftheagreementbetweentheCityofOrlandoandthebondholdersand,therefore,itisacontingentliabilityrankingjunioronlytoobligationsoftheOrlandoUtilitiesCommissiontotheholdersofitsWaterandElectricRevenueBonds.Thisliabilitybecomes-realonlyiftheutilitiestaxisinadequateandthereaftertheCityfailstoreimbursetheCommissionfromotherutilitytaxrevenuesandalsofailstolevyasewertaxasrequired.(2)OnDecember22,1969,theOrlandoUtilitiesCommissionpledged$480,000ofitsannualrevenuesinconnectionwiththeissuancebytheCityof$5,500,000ImprovementRevenueBonds.Thispledgeisforaperiodof22yearsfromthedateofissuancebytheCityoftheImprovementRevenueBondsorsuchlongerperiodasshallberequiredto.payandretireallprincipalandinterestonsaidbonds.ThislienontherevenuesderivedfromtheUtilitiesshallbejuniorandsubordinatetothelienoftheholdersofanyobligationsoftheCommissionoutstandingorparipassuobligationshereinafterissuedforpurposesoftheCommission,andtotheannualpaymentfortheretirementoftheSewerRevenueBondsdescribedintheprecedingparagraph,butshallbepriorandsuperiortoanylien,pledgeorencumbrancehereaftermadeofsuchrevenuesforanypurposesotherthansaidobligationsofthisCommissionforwaterorelectricpurposes,andsaidannualSewerRevenueBondpayment.(3)TheapproximatecosttocompleteconstructioncontractsinprogressenteredintoasofSeptember30,1978is$9,250,000.Itiscurrentlyanticipatedthatadditionalfutureexpansionprogramcosts,plannedforthenextthreeyearswillapproximate$110million.Theseamountsin-cludeajointprojectwiththeCityofLakelandtoconstructa364MWsteam-electricgeneratingplanttobelocatedinLakeland.TheCommissionwillhavea40%ownershipinthegeneratingplantandbeentitledto40%ofitscapacity.A-9 NOTESTOFINANCIALSTATEMENTS-CONTINUEDORLANDOUTILITIESCOMMISSIONNOTEE-COMMITMENTSANDCONTINGENTLIABILITIES-CONTINUED(4)TheCommissionleases'ealestateforafuelsupplyterminalunderanoperatingleasethroughtheyear2023.FutureminimumpaymentsforthisleaseatSeptember30,1978are$11,880annually.VariousunitsofdataprocessingandofficeequipmentareleasedonamonthlybasiswithanannualrentalexpenseforthcyearendedSeptember30,1978and1977ofapproximately$45,000and$67,000,respectively.(5)TheOrlandoUtilitiesCommissionhasapensionplancoveringsub-stantiallyallemployees.Thetotalpensionexpensefortheyears1978and1977was$1,390,132and$1,317,039,respectively,whichin-cludesamortizationofpastservicecostsoveraperiodofapproximately30years.Thefundingmethodusedistheentryagenormalwiththeinitialunfundedaccruedliabilityfrozen.FundingisbyaDepositAdministrationContract.AsofSeptember1,1978,theanniversarydateoftheplan,thePensionFundassetsexceededtheactuariallycomputedvalueofvestedbenefits.(6)TheOrlandoUtilitiesCommissionhasbeennamedasadefendantinalawsuitwhereinitisallegedthattheplantiffcontractorandabondingcompanysustaineddamagesbyreasonofactsoromissionsoftheOrlanUtilitiesCommissionand/ortheengineers(namedinthecontract)inconnectionwiththeperformanceofcertainconstructioncontracts.TheamountsclaimedagainsttheCityofOrlandoandtheOrlandoUtilitiesCommissionapproximates$1,250,000.TheCommissionhasfiledacounterclaimagainstthebondingcompanyallegingdamagesfordelaysincon-struction.CounselfortheCommissionisunabletoexpressanopinionastotheprobableoutcomeofthesesuits.Theaccompanyingfinancialstatementsdonotincludeaprovisionforliability,ifany,thatmayresultfromsettlementthereof.(7)TheCommissionisoneofthedefendantsinanallegedclassactionlaw-suitbroughtagainsttheCityofOrlandoandOrangeCounty,aswellas.theCommission.ThelawsuitseekstoenjointhemakingofpaymentsbytheCommissiontoOrangeCountyofonepercent(1%)ofthe.Commission'sgrosselectricrevenuesearnedoutsidetheCityandtorequirerepaymentoftheamountspaidamountingtoabout$12',000permonthsinceMarch1973.Secondly,itseekstoenjointheCommissionfrompayingtotheGeneralFundoftheCityanypartoftheCommission'snetincome,whichiscurrentlythepractice.ThecomplaintwasamendedFebruary7,1978,toallegethatrateschargedforutilitiesservicesareunreasonable,thatpaymentforcertainexpensesareunreasonableandtoseekaninjunctionforoverchargesfrom1970todateplusattorneys'ees.Undertheamendedcomplaint,ifthePlaintiffobtainsallthereliefrequested,theamountofliabilitywhichcouldbeimposedupontheCommissionisimpossibletoestimateatthistime.LegalcounselfortheCommissionisoftheopinionthatthesuitiswithoutmerit.

NOTESTOFINANCIALSTATEMENTS-CONTINUEDORLANDOUTILITIES'COMMISSIONNOTEE-COMMITMENTSANDCONTINGENTLIABILITIES-CONTINUED(8)TheEnvironmentalProtectionAgencyhasissuedapermitfortheCommission'sIndianRiver-electricgeneratingplantwhichrequirestheCommissiontoprovideanoff-streamwatercoolingsystemforsuchplantbysomedatein-themid-1980'sintheeventthatanecologicalstudy,intheopinionoftheAgency,showsthatthepresentcoolingsystemisdoingsubstantialdamagetotheecologicalsystemoftheadjacentportionoftheIndianRiver.ThecosttotheCommissionofsuchstudyisestimatedtobe.$1,000,000.ThefinaldeterminationoftheAgencyisappealabletothecourts.Ifconstructionofoff-streamcoolingfacilitieswerebegunnow,itisestimatedthattheywouldcostapproximately$20,000,000.(9)InAugust1978,theCommission.adoptedaplanofpayingemployeeshavingatleasttwoyearsofemploymentforaportionoftheirunused.sickleaveaccumulatedatthedatetheyterminateorretire.Themaximumpossibleliability,calculatedonthebasisofunusedsickleaveforeligibleemployeesatSeptember30,1978isapproximately$690,000.It.isthepolicyoftheCommissiontorecordthecostsoftheplanonlyasbenefitsarepaid.Benefitpaymentsareexpectedtoapproximate$50,000peryear.NOTEF-EXTRAORDINARYITEMAsaresultoftheApril1978advancerefundingoftheCommission'sout-standingrevenuebondsasexplainedinNoteC,againwasrecognizedinaccordancewithgenerallyacceptedaccountingprinciples.Therecordedgain(non-currentcash)wascomputedasfollows:NetcarryingamountofrefundeddebtLessunamortizeddiscountandissuecostsRefundingbondsissued$123,325,0001308769122,016,231110330000GAIN(NON-CURRENTCASH)ONADVANCEREFUNDINGOFBONDS NOTESTOFINANCIALSTATEMENTS-CONTINUEDORLANDOUTILITIESCOMMISSIONNOTEG-BUSINESSSEGMENTSTheCommissionoperatesintwobusinesssegments,thegeneration,trans-missionanddistributionofelectricityand'heproduction,treatment,transmissionanddistributionofwater.Asummaryofthesegmentinforma-tionasofSeptember30,1978issummarizedbelow:3'ElectricWaterAdministrationTotalOperatingrevenuesOperatingincomeIdentifiableassetsDepreciationCapitalexpenditures$88,289,61220,094,153195,214,8056,463,8307,078,492$8,359,8823,779,05942,331,574948,3722,142,883$-0--0-7$534,183-0--0-$96,649,49423,873,212245,080,5627,412,2029,221,375Operatingrevenueoftheelectricsegmentincludesapproximately$13millionininterchangesalestoanotherutility.

APPENDIXBBLACK8IYEATCHCONSULTINGENGINEERSTEL.(913)967-2000TELEX42-62631500MEADOWLAKEPARKWAYNAILIHOADOAE$5sP.OSOXNO.8405KANSASCITY.MISSOURI84II4June7,1979Mr.C.H.StantonExecutiveVicePresidentOrlandoUtilitiesCommissionP.O.Box3193Orlando,Florida32802

DearMr.Stanton:

Thislettersummarizespertinentinformationrelativetoyourelectricsystemoperations,forinclusionintheOfficialStatementbeingpreparedbyyourfinancialconsultants.I.ElectricSstemLoadGrowthInJanuary1978,wepresentedtotheCommissiontheresultsofourpowersupplystudyfortheelectricsystem.Thisstudyindicatesthatthegrosssystempeakdemandisestimatedtoincreaseatanaverageannualrateof5.3percentperyearfrom1978through1986.The1978grosssystempeakdemandwasessentiallythesameasthe1977grosssystempeakdemandbutthenetsystemenergyrequirementwasconsistentwiththestudyprojections.Itisexpectedthatthe1977systemenergysaleswillbedoubledin1991.II.PowerSu1FacilitiesPowerfortheelectricsystemloadissuppliedfromtheCommission'sIndianRiverPlant,theirLakeHighlandPlantandfromtheFloridaPowerCorporationCrystalRiverNo.3nuclearunitownedinpartbyetheCommission.TheIndianRiverPlantislocatedapproximately32miles.eastofOrlandoandisamodernsteamplanthavingatotalgeneratingcapacityof639,000KWinthree1800psireheatsteamturbine-generatorunits.TheLakeHighlandPlantislocatedintheCityofOrlandoandhasatotalgeneratingcapacityofapproximately120,000KWinthree30,000KWsteamturbine-generatorunitsandtwo15,000KWquick-startcombustionturbineunits.Coldstartcapabilityisprovidedforthisplantbya1000KWdieselenginegenerator.TheLakeHighlandPlantisusedprimarilyforpeakingandstandbyservice.TheCrystalRiverNo.3nuclearunitisanominallyrated825,000KWunitutilizingapressurizedwaterreactornuclearsteamsupplysystem.TheunitismanagedandoperatedbyFloridaPowerCorporationbut13,200KWofthecapacityisownedbytheCommission.B-1 8LACKE!VEATCHOrlandoUtilitiesCommissionMr.C.H.StantonJune7,1979TheIndianRiverPlantandtheLakeHighlandPlantfireeithernaturalgasorfueloilandamplefueloilstorageisprovidedateachplantsite.AdditionalfueloilfacilitiesareinstalledatPortCanaveral.ThesefacilitiesincludehandlingfacilitiesandastoragetankcapableofreceivingtankerquantitiesoffueloilandtransferringtheoiltobargesfortransporttotheIndianRiverPlantviatheIntercoastalWaterway.NewpowersupplyfacilitiesfortheCommissionssystemincludeownershipof146,000KWofcapacityinanominallyrated364,000KWsteamturbine-generatorunitjointlyownedbytheCommissionandtheCityofLakeland,Florida,andtobeconstructedbyLakelandattheirMcIntoshplantsite.Earlyconstructionworkforthisunitiscurrentlyinprogress.Thisunitwillbeamodern2400psiunitdesignedtofirecoalastheprimaryfuelwithfueloilandrefuseassecondaryfuels.TheunitwillbedesignedsothatuptotenpercentofthetotalfuelrequirementcouldbesuppliedfromrefusecollectedbytheCityofLakeland.Sewagetreatmentplanteffluentwaterwillbeusedasmakeupforthe'lantcoolingtowerandsulphurremovalsystem.ThisplantwouldbeamongthefirstinFloridatouserefuseandtreatedsewageeffluentwaterinitsoperation.Operationofthisunitisscheduledforlate1981.PowerSstemFacilitiesPoweristransmittedfromtheIndianRiverPlanttothe.Orlandoloadareaovertwo115kVandone230kVtransmissionlineswhichterminatatamajorswitchingsubstation(Pershing)locatedinthesoutheastcorneroftheloadarea.A230kVlineextendsfromthis(Pershing)substationtoanothermajorsubstation(Southwood)locatedinthesouthwestcorneroftheloadareatofirmlyconnecttheeasternandwesternsectionsoftheOrlandoloadarea.Powerfromthe230kVsystemissuppliedtoa115kVloopnetworkwhichcoverstheOrlandoloadarea.TheLakeHighlandPlantisconnectedtothis115kVnetwork.PowerisdeliveredtotheCommission'sprimarydistributionsystemsthroughtwelvemajorloadareasubstationsstrategicallylocatedonthe115kVnetwork.TheCommission'spowersystemisinterconnectedwiththeFloridaPowerCorporationsystematthreewidelyseparatedsubstationsintheOrlandoloadarea,andwiththeFloridaPowerandLightCompanyattheIndianRiverPlantsubstation.TheseinterconnectionsprovidetheCommission'ssystemwithreadyaccesstoreservecapacityavailableintheFloridainterconnectedsystem.B-2 BLACK&VEATCHOrlandoUtilitiesCommissionMr.C.H.StantonJune7,1979Thepowersystemismonitoredandcontrolledthroughacentraldispatchingcenterandasupervisorycontrolsystem.Currentlyworkisinprogressforexpandingthedispatchingcenterandinstallingamoderncomputerbasedsupervisorycontrolanddataacquisitionsystem.Newpowersystemfacilitiesincludetheinstallationofadditionaltransformercapacityanddistributionfeederswitchgearatthreeexistingsubstationsandanew230kVtransmissionlineextendingfromanewsubstationatthesouthcentralportionoftheCommission'ssystemtotheMcIntoshplantoftheCityofLakeland.ThenewtransmissionlineiscurrentlybeingdesignedandwillfacilitatetransmissionofthepowerfromthenewcoalfiredunitintotheCommission'sloadarea.IV.ElectricRatesTheCommissionhasdevelopedinhousecapabilityforroutinelyre-viewingtheadequacyofratelevelsandfordeterminingtheamountandappropriatedistributionofrateadjustments.TheelectricratesoftheOrlandoUtilitiesCommissionarecompetitivewiththeratesofotherelectricutilitiesservingthesurroundingarea.Respectivelysubmitted,BLACK&VEATCE.C.WindischECW:dkB-3 (THISPAGEINTENTIONALLYLEFTBLANK)

CH2MISHILLengineersplannerseconomistsscientists17April1979GN11701.80APPENDIXCMr.C.H.StantonExecutiveVicePresidentOrlandoUtilitiesCommission500SouthOrangeAvenueP.O.Box3193Orlando,Florida32820

DearMr.Stanton:

ThepurposeofthisletteristosummarizecertainpertinentinformationregardingtheWaterOperationsDepartmentforinclusionintheOfficialStatementcurrentlybeingpreparedinconnectionwiththeissuanceofthe1978AImprovementBonds.HistoricalBackroundofWaterSstemPriorto1956,Orlandoobtaineditswatersupplyfromachainoflakesinthenorthcentralpartofthecity.AcomprehensiveengineeringstudyofthewaterutilitywaspreparedbyBlack,CrowandEidsnessin1956,whichshowedtheinadequacyofthissupplyandresultedintheestab-lishmentofaprogramtoreplacethesurfacewatersupplywiththatofdeepwells,approximatelylr400feetdeep,penetratingtheMiddleEoceneformation.Thewaterobtainedfromthesewellsprovedtobeofexcellentchemicalandbacterialquality,andgreatlyreducedtreatmentcosts.In1978theNavyPlantwascompleted,therebyincreasingservicetothenortheasternsideofthearea.ATen-YearMasterPlanhasbeenpreparedbyBlack,CrowandEidsnesscoveringtheperiod1973through1983.Thisplanincorporatesprojectionstomeetfutureconsumerdemandsandprovidesforthecontinuedorderlydevelopmentofthewatersystem.C-IAthntaOffice4AWestPeachtreeStreet,N.E.,Suite1640,Atianta,Ceorgia303084N/588-1990 Mr.C.H.StantonPage217April1979GN11701.80PresentWaterTreatmentandPuminFacilitiesWiththeexceptionoftheNavyPlant,allplantstreattheincomingrawwaterbythesamemethod,namely,aeration,chlorinationandfluoridation.InthecaseoftheNavyPlantasuccessfulresearchprogramhasbeenadvancedtothedesignstagewhereinnewtechnologywillbeemployedtoeliminatetheaerationstep.ItisanticipatedthatwithconstructionofthefirstfullscaleinstallationattheNavyPlantin1979,andfollowingasuccessfuldemonstrationofthatoperation,similarmodi-ficationswillbemadeattheotherplantsinsubsequentyears.PlantRawWaterCapacity(mgd)-AerationCapacity(mgd)HighServicePumpingCapacity(mgd)ReservoirCapacity(10'al)NavyKirkmanHighlandPrimrosePineHillsKuhlMartinConwayTotal35151515101070*351515151010112154821242712141732.02.03.52.02.02.01.02.016.5*Substitutesystemtobeinstalled.C-2 Mr.C.H.StantonPage317April1979GN11701.80WaterDistributionSstemThewaterdistributionsystemconsistsofmainsfrom2inchesto36inchesindiameterandpresentlyprovidesserviceforanareaofapproximately150squaremiles.Atrunkmainsystemcomprisedofmains12inchesto36inchesindiameterprovidesabeltloopinterconnectingallplantsandelevatedtanks.Elevatedstoragetanksconnectedtothetrunkmainsystemareshownbelow.LocationRugbyHazelCopelandGoreHiawasseeOakRidgeELEVATEDWATERSTORAGECapacity(gallons)500,000500,0001,000,000500,000500,000500,000Total3,500,000ProposedImprovementstotheWaterSstemTheimprovementsforconstructionthrough1983listedbelowareproposedtobefinancedfrombondproceedsandareacontinuationofimprovementsproposedinourengineeringreportsof1956,1962and1973,asupdated.C-3 Mr.C.H.StantonPage417April1979GN11701.'80DescriptionEstimatedCost1.TreatmentSystemModifications$5,500,0002.ConwayWell,Treatmentand,HighService1,100,0003.NewCentralComputerControlSystemandInstrumentation'1,100,000Total$7,700,000RateStructureDuring1972themanagement.ofthe.OrlandoUtilitiesCommission,recognizingtheneedtoincreaserevenues,offsetincreasedoperatingexpenses,andprovidefornecessaryexpansionofthesystem,authorizedthisfirmtoconductacomprehensivefiscalanalysisoftheWaterOperationsDepartment.Periodicupdatesofthisanalysishaveresultedinincreasestowaterratesleadingtothecurrentratestructure.Themostrecentadjustmenttoratesbecameeffective1July1977andisshownbelow:CHARGESPER1000GALLONSMonthlyConsumptionInsideinGallonsCityLimitsOutsideCityLimits0-1,000*lg000100i000Over100,000$1.85~44.~37$2.54.60.50*Residential(3/4"meter)minimummonthlycharge.C-4 Mr.C.H.StantonPage517April1979GN11701.80CostofServiceStudInordertoestablishanaccuratedefinitionofcostofserviceforthe,varietyofclassesofwatercustomersservedbyOrlandoUtilities,astudywasinititatedinearly1978.Thefirsttwophasesofthisstudywillbecompletedduring1979'andfollowingafullyearofdatacollection,phasethreewillbeconcludedin1981.HistoricalRecordandPro'ectionsofWaterConnectionsandConsumtronTheWaterOperationsDepartment'shistoricrecordsandprojectionsofwaterconnections,populationserved,andconsumptionareshownbelow:AverageActivePopulationYearServicesServed'otalAverageMaximumSales'ayDay'970197119721973197419751976197719781980198551,70753,59655,29457,18158,48259,25859,74360,72962,32564,62268,878219,900226,440232,800238,980244,990250,850256,550262,100267,510282,784313,7459,57510,68211,37811,61012,52212,88913,24414,07514,32915,31817,22032.434.137.039.341.040.940.445.945.848.253.660.365.060.869.573.371.664.970.073.1,80.688.4'DeterminedbyusingthetrafficzonepopulationdefinedbytheEastCentralRegionalPlanningCouncil.~Millionsofgallons.'Millionsofgallonsofwaterdeliveredtothesystem.C-5 Mr.C.H.StantonPage617April1979GN11701.80Theaboveindicatesaverystablepositionfromthestand-pointofsupplyanddemand,particularlywithrespecttofireprotection.ThecityenjoysanoutstandingNationalBoardofFireUnderwritersrating.ofthree.Thisratingisdueinalargeparttothecapabilityofthewatersystem.Conclusions~1.Populationandloadgrowthprojectionsindicatesteadilyincreasingsalesoftreatedwaterwithintheservicearea.2.Totalrequirementsfortreatedwaterareexpectedtoreach78,000,000gallonspermaximumdayduring1979withpeakpumpingratesinexcess'f122mgd.3.4~Previousstudiesbyourfirm,andothers,indicatethatanabundantsupplyofhighqualitywaterisavailabletosupplytheserequirements.Adequateandproperplanningofrequiredfutureplantexpansionsisbeingachievedaffordingorderlydevelop-'entofthewatersystem.5.TheforesightednessoftheOrlandoUtilitiesCommission,throughrecentlyadoptedratestructureadjustments,willensurethatfuturerevenueswillbeadequatetomeetthedemandforanticipatedplantexpansionandprovideforWaterOperationsDepartmentproratashareofpresent.andfuturedebtserviceandcoverage.6.OrlandoUtilitieshasoccupiedaleadingpositioninthetechnologyofwaterservicesformanyyears.Withcontinuedgoodmanagementsystems,thisexcellentrecordwillbedemonstratedthroughouttheyearstocome.Respectfullysubmitted,Manager,WaterandWastewaterAtlantaRegionsjhC-6 APPENDIXDSUPPLEMENTALINFORMATIONTHECITYOFORLANDOANDORANGECOUNTY.ThefollowinginformationconcerningtheCityofOrlandoandOrangeCountyisincludedonlyforthepurposeofsupplyinggeneralinformationregardingtheCityandtheCounty.The1978AImprovementBondsarepayablesolelyfromtheNetRevenuesoftheCommissionderivedfromtheoperationoftheWaterandElectricSystemandarenotpayableorsecuredbytheCityortheCounty,oranypoliticalsubdivisionoftheState.'eneralOrangeCounty,establishedbytheFloridaLegislaturein1824,islocatedgeographicallyintheapproximatecenteroftheStateofFlorida,midwaybetweenJacksonvilletothenorthandMiamitothesouth,betweenSt.Petersburg-TampaontheGulfofMexicoonthewestandDaytonaBeachontheAtlanticcoastontheeast.TwooftheState'smajorhighways,Interstate4foreast-westtravelandtheFloridaTurnpikefornorth-southtravel,intersectjustoutsideofOrlando.TheCountyencompassesapproximately1,003squaremiles,rankingnineteenthintheStateintermsoflandarea,andranksseventhinFloridaintermsofpopulation.TheCountyenjoysanexcellentclimate,withtemperaturesrangingfromanaverageofapproximately54'(F.)inJanuarytoanaverageofapproximately81'(F.)inAugust.Longnotedforitsnaturalscenicbeauty,Orlando'scentrallocationandmildclimatehaveproventobeespeciallyattractivetoresidentsandabroadeningeconomy.TheOrlandoareaoffersauniquerangeoflivingstylesfromaquietcountrysidetotheculturalandentertainmentamenitiesofamajorurbanarea.GovernmentTheCityoperatesunderamayor-councilformofgovernment.TheMayoristheCity'sadministrativehead,electedforatermoffouryears.TheMayor'sresponsibilitiesincludetheenforcementoflaws,controlofCitydepartmentsanddivisions,appoihtmentandremovalofofficersandemployees,supervisionofCityproperty,andnegotiationofcontracts.TheMayormakesrecommendationsforcreationofordinancesandresolutionstotheCityCouncil,andpresentstheannualbudgetforapproval.TheCityCouncilisthelegislativebranchofCitygovernment,andisresponsiblefortaxation,finances,zoningregulationsandboundaries.ThefiveCityCommissionersincludingtheMayorreviewplansandspecificationsforpublicimprovements,enactlegislationgoverningCityoperationsandapprovetheCitybudget.Theyareelectedforfour-yearterms.PopulationTheU.S.CensusBureaureportsOrlandowasthefifthfastestgrowingmetropolitanareainthenationfrom1970to1974,witha27.7%increaseinpopulationduringthatperiod.ThefollowingtableindicatesthecontinuinggrowthoftheCountyandtheCityinrelationtotheStateofFlorida:Year19501960197019711972197319741975197619771978Orlando52,36788,13599,006106,615111,000114,500117,435118,457118,661122,090123,534OrangeCounty114,950236,540344,311361,000412,'253428,517424,000424,556420,552434,543438,278Florida2,810,4004,951,6006,671,1007,120,0007,441,5007,845,1008,248,9008,485,2008,551,8008,717,3008,966,400Source:U.S.Census;andUniversityofFlorida,BureauofEconomicandBusinessResearchD-1 TaxDataTheCityislimitedbytheConstitutionoftheStateofFloridatoanadvaloremtaxlevyof10millsoneachdollarofassessedvaluationforoperatingexpenditures.Themillagein1979foroperatingexpendituresamountedto8.879millsperdollarofassessedvaluation.REALESTATEANDPERSONALPROPERTYTAXESCityofOrlandoRealEstateTaxes(000'sOmitted)YearNetTaxable'AssessedValuationCeneratFundMillsLevyG.O.BondFundMillsLevyTotalLevyCollected19741975197619771978$974,1328.0601,040,304"8.1501,072,4948.5151,098,9068.557,1,181,7928.487$7,8878,4789,1329,40310,028.610$5978.670.5205418.670.4705048.985.4284718.985.3924638.879$8,484.9,0199,6369,84710,491$8,2928,7349,3129,403(a)PersonalPropertyTaxes19741975197619771978$1,8512,1882,5392,6212,625$211,413252,336282,617291,647292,8328.060$1,721.610$1308.6708.1502,057.5201318.6708.5152,406.4701338.9858.5572,496.4281258.9858.4872,509.3921168.879$1,7642,0882,4452,517(a)(a)NotavailableSource:OfficeofFinanceAdministrator,CityofOrlandoIndustryandCommerceLocatedwithinOrangeCountyand/orimmediatelyadjacentareMartin-MariettaCorp.,amissileandelectronicproductionplanthavingapproximately4,500employeesandanannualpayrollofapproxi-mately$90million;WaltDisneyWorld,locatedona43-square-miletractoflandapproximately16milessouthwestoftheCityofOrlando,withatotalconstructioncostofover$700million,havingapproximately13,000employeeswithaweeklypayrollaveragingapproximately$1.1millionandanother$1millionspentongoodsandserviceseachweek;twenty-sevenindustrialparksencompassingmorethan18,000acres,containingnationalorregionalcompanies,includingChrysler,DowJones8cCo.,Inc.,PepsiColaBottlingCo.,MasoniteCorp.,Westinghouse,FederalPacificElectric,ContinentalNationalAmericanGroupofInsuranceCompanies,LumbermansMutualInsuranceCo.,MontgomeryWard,andothers.MinutesawayfromtheCityofOrlandoisSeaWorldofFlorida,theworld'slargestmarinelifepark.OpenedinDecember1973atacostof$23million,SeaWorldhasquicklybecomeFlorida'sthirdmostpopularattraction,drawinginexcessof2millionpersonsannually.Corporaterelocationandexpansionplanspostponedduringtherecessionarenowbeingrevived.In1975,theOrlandoarealedtheStateinnewindustriesandnewjobs,withsome176industriesemploying1,750people.Amajoraddition,AppliedDevicesCorporation,anelectronicsfirmemployingapproxi-mately450persons,openedinthespringof1976.Acentrallocation,modernfacilities,qualifiedlabormarket,anddeterminedleadersplaceOrlandoinabetterpositionthaneverbeforeforattractingnewindustries.,Furthercomplementingtheprospectsofexpansion,projectedindustrialactivitiesatWaltDisneyWorld'sEPCOTwillenhanceOrlando'sdrawasanindustrial/distributioncenter.Constructionshouldbeginin1979ontheEPCOTCenter,apermanentinternationalexposition,whichincludestheworldshowcase.Theexpositionisscheduledtoopenin1982andwillbelargerthantheexistingthemepark.D-2 TheopeningofWaltDisneyWorldspawnedunprecedentedgrowthoftravelaccommodationsinOrlando,andtheareanowrankssixthintheworldinthenumberofhotelandmotelroomsavailablebehindNewYorkCity,London,Chicago,LasVegasandWashington,D.C.From6,300hotelandmotelroomsavailablein1971whenWaltDisneyWorldopened,theOrlandoarearoomcounthasgrowntomorethan30,000.ConventionsareoccupyingalargerpartoftheOrlandoareatravelpicture.IncreasingnumbersofnationalgroupsarechoosingtomeetinOrlando,resultinginlargerandlongerconventions.Approxi-mately430,488delegatesattendedconventionsinOrlandoin1978,withanestimatedeconomicimpactofapproximately$69.3million.Tretnendousgrowthinretailtradehasmatchedtherapidindustrialandtourismgrowthduringthepastfewyears.Orlando,asanationalretailmarket,movedfrom75thplacein1970to51stplacein1977.Grossretailsalesreachedapproximately$3.3billionin1978.RecognizingOrlando'spotential,developershaveopenedtworegionaland17othermajorshoppingcentersduringthepastsevenyears,whichcentersincludefivemillionsquarefeetofshoppingspace.Approximately1,000businessesand25governmentbuildingsandpublicfacilities,employinginexcessof13,000persons,arelocatedindowntownOrlando.Retail-orientedspacetotalsinexcessof5millionsquarefeet.TheOrlandoCentralNeighborhoodDevelopmentBoardforecaststhatby1980downtownOrlandowilladd700,000squarefeetofoScespace,79,820squarefeetofretailspaceand6,500moreemployees.Includedin$35millioninconstructionrecentlycompletedinthedowntownareaisthe$8.5millionSoutheastNationalBankBuildingandthe$8.5millionFederal05ceBuilding.Recognizingthegrowth,theOrlandoCentralCityActionPlanhasbeendevelopedasaflexibleandpracticalsystemforexpansion.AmongspecificproposalsisGovernmentPlaza,anareanearInterstate4wheregovernmentfacilitiesareexpandingandwhereanew$9.2millionState05ceBuildinghasbeencompleted.TheOrangePlazaprojectisanupgradingoftheOrangeAvenueCorridor,andLibrarySquareisgrowingoutoftheexpandingrequirementsoftheOrlandoPublicLibraryandtheCity'sParkingCommission.TheActionPlanalsocallsforpreservinghistoriclandmarksandcooperatingwiththeChurchStreetStationproject,"historicOrlando'scompleteentertainmentanddiningcomplex.Growingasacenterofgovernment,finance,insuranceandgeneralbusinessactivity,downtownOrlandohasremainedapleasantplacetoliveaswellaswork.SomeoftheCity'sfinestneighborhoodsarenearthecentralbusinessdistrict,andnewdevelopmentsincludeseveralhighandlowriseapartmentsandcondominiums.LakeEolaanditssurroundingparkenjoyincreasingpopularityforoutdoorconcerts,artshowsandholidaycelebrations,andseveralsmallerparksaremaintainedintheCity'scoreforresidentsandworkers.EmploymentPrincipalcategoriesofmanufacturinginOrangeandnearbycounties,togetherwithapproximateemploymentatNovember1977andNovember1978areasfollows:19781977DurableGoods:Stone,clayandglassproducts............Fabricatedmetalproducts..Ordnanceandelectricalmachinery.....MachineryexceptelectricalOtherdurablegoodsNon-durableGoods:Foodandkindredproducts.PrintingandpublishingOthernon-durablegoods.TotalManufacturing.Note:IncludesOrange,OsceolaandSeminoleCountiesSource:OrlandoAreaChamberofCommerce1,3001,6007,2002,3008,9004,2002,9003,30031,7001,0001,6005,4002,1008,2004,0002,7003,10028,100D-3 EMPLOYMENTSECTORORLANDOSMSA(InThousands)19721974197519761977197S(a)Manufacturing(durable/nondurable).................25.9ContractConstruction...................22.8Transportation,Communication&PublicUtilities....,...,....,....10.6Trade,Wholesale&Retail...........46.4Finance,Insurance&RealEstate12.2Service&Miscellaneous........."......44.9Government.28.1Total(IncludingOther)...............190.928.828.324.525.730.224.212.611.712.112.511.8'1.554.759.157.359.813.814.914.414.351.452.151.554.730.934.235.236.1221.9225.3207.3213.827.131.712.314.411.312.261.663.015.316.857.860.237.439.2222.8237.5Note:Theabovefiguresdonotincludeself-employed,unpaidfamilyordomestic.Source:FloridaDepartmentofLaborStatisticsDivision(a)toNovember1978COMPARISONOFUNEMPLOYMENTRATE>>CalendarYearEnd12/31(Percentage)OrlandoMetropoutan~~AreaFloridaUnitedStates1971(a)1972(a)1973(a)1974(b)1975(b)1976(b)1977(b)1978(b)5.24.24.46.611.39.07.05.94.94.54.36.310.69.07.06.45.95.64.95.68.57.77.05.9'eceivedfiguresfromStateofFlorida-LaborStatistics"IncludesOrange,OsceolaandSeminoleCounties(a)Calculatedbycensussharing(b)CalculatedbydisegregatemethodTransportationMcCoyInternationalJetportprovidesairtransportationtoallpartsoftheUnitedStatesandincreasingserviceforbothcargoandpassengerstoforeigncities.Eastern,National,Delta,Southern,AirFlorida,Braniff,United,TWA,Allegheny,PiedmontandOzarkAirlines,alongwithanumberofintra-statecarriers,providefar-reaching,efftcientairtransportationforthousandsofpassengersperdayandplayavitalpartinthearea'sgrowingtouristindustry.During1978,thetotalnumberofarrivinganddepartingpassengersattheJetportwas5,182,264,whichrepresentsa24.7%increaseoverthe1977totalof4,154,781.Totalairfreightincreasedfrom18,327tonsin1977to23,075tonsin1978.TheJetportprovidesapproximately1,300jobsandgeneratesapproximately$180millionayearinrevenues.D-4 During1976theJetportterminalwasremodeledandenlargedtohandleincreasedpassengerloadswhenitbecameaninternationalportofentry.Developmentof2,500acresoflandacquiredfromtlieU.S.AirForcewillresultinanewairportcomplexemployingupto5,000persons,complementaryairportindustry,andtheintroductionofinternationalflights.Anew$225millionterminalscheduledtoopenin1980isunderconstruction.TheJetportalsocontains201acresdesignatedasaForeignTradeZonewithinwhichgoodsmaybestoredduty-freeandquota-freeuntilprocessedandshipped.TheOrlandoareaisalsoservedbythreesatelliteairports.HerndonAirport,a1,000-acrefacilityneardowntown,ishomebaseforthreefixedbaseoperatorsandover275locallyownedaircraft.SanfordIndustrialAirport,innearbySeminoleCounty,includesover1,600acresandisidealforaviation-orientedindustries,companieswhichoperateexecutiveaircraft,andforthosewhousecharteredaircraft.Anew6,000squarefootterminalhousesIGssimmeeMunicipalAirportinadjacentOsceolaCounty.TheOrlandoareaiscrossedbyInterstate4foreast-westtravelandtheFloridaTurnpikefornorth-southtravel.TheMartinAndersenBeelineExpresswaylinkstheeastcoastbeacheswithInterstate4andtheTurnpike.TheHollandEast-WestExpresswayexpeditestrafBcthroughtheCity.LongrangeplanningisunderwayforabeltlinearoundtheOrlandoarea,andconsiderationisbeinggiventothefeasibilityofamassrapidtransitsystem.Themetropolitanareaisservedby29commoncarriertrucklines,mostofwhichhavelocalterminals.InadditiontoseveralparceldeliveryandpackageexpressservicescoveringOrlandoandneighboringcommunities,16freightforwardingcompaniesprovideservice.GreyhoundandTrailwaysBusLinesoflercharter,expressandpassengerservice.SeaboardCoastlineRailroadprovidesfreightandpassengerservice.Railpassenger'stationsintheOrlandoareaarethebusiestinthesoutheast,withsome500Amtrakpassengersarrivingandleavingdaily.Auto-TraintransportspassengersandtheirautomobilesbetweenSanfordandLorton,VirginiaandSt.Louis,Missouri.MilitaryOnJuly1,1968theU.S.NavalTrainingCenter,Orlando,wascommissionedonthesiteformerlyoccupiedbyOrlandoAirForceBase.Withtwocomponentcommandsand18tenantcommands,,theCenterisoneofthelargestNavalTrainingFacilitiesontheAtlanticcoast,andoneofthemostmodernintheNavy.ItincludesRecruitTrainingCommand,ServiceSchoolCommand,NavalTrainingEquipmentCenter,AdvancedUnderseaWeaponsSchool,NavyFinanceOflice,DefenseContractAdministrationService,NavalHospital,andvariousconcomitantdepartmentsandsupportfacilities.Inaddition,twonewtrainingfacilities,theBasicElectricity&ElectronicsSchoolandtheEnlistedNavyRecruiterOrientationDetachment,beganoperationduringJuly1975.TheCentercurrentlyemploysapproximately5,000militaryandcivilianpersonnelandbetween4,500and9,500recruits.TheNavy'stwoNuclearPowerSchoolswererecentlymovedtoOrlandointwostages.ThefirstphaseoftheconsolidationmovebroughttheNuclearPowerSchoolfromBainbridge,MarylandtoOrlandoduring1975,whilethesecondphasebroughttheNavy'sNuclearPowerSchoolatMareIsland,CaliforniatoOrlandoduringthefirstquarterof1977.Nowthatbothmovesarecompleted,approximately3,000studentsandstafFareassignedtothisCommand,increasingthetotalNavyTrainingCenterpayrollbyapproximately$10million.ThreehundredadditionalfamilyhousingunitshaverecentlybeenconstructedattheNavalTrainingCenterAnnexatMcCoy(formerlyMcCoyAirForceBase)tosupplementtheexisting668homesinpreparationforthearrivalofthemarriedstaffandpersonnelassignedtotheNuclearPowerSchool.TheCenterdisbursesapproximately$135millionannually.Approximately$2millioninmilitaryconstructionisunderwayandanadditional$23millionayearisspentonservicesandmaterials.Theannualpayrollisapproximately$88'millionandabouthalfofthisisestimatedtogodirectlyintothelocaleconomy.D-5 HousingThedevelopmentboomofthe1971-1973periodinthegreaterOrlandoarea(Orange-Seminole-OsceolaCounties)resultedinth'econstructionofseveralthousandcondominiumandapartmentunitswhichnumbered68,316attheendofthethirdquarterof1978.Single-familyresidencesandmobilehomestotaled161,109and19,909respectively,forthesameperiod.Thetotalnumberofresidentialunits,intheCityofOrlandois48,430.5.5%ofresidentialunitswereunoccupiedasofApril1,1978.TheseunitsarewithintheOrlandoUtilitiesCommissionserviceareaandarealreadyconnectedtoitswaterandelectricsystems.Astheseunitsbecomeoccupied,theCommissionwillnothavetoassumehook-upandmeterinstallationcostssincetheyhavealreadybeenpaidforfromthesystem'searnings.Areviewofthenumberofbuildingpermitsissuedforsingle-familydwellingunitsinOrangeCountyindicatesthatthereisanincreaseinthistypeofconstructionactivityinrecentperiods.Setforthbelowarethenumberofpermitsissuedduringthefourquartersof1977and1978togetherwiththepercentageincreaseinthoseperiodsduring1978over1977:Quarter19T7IIIIIIIV47684778%649103059%69181818%592'17698%Source:EastCentralFloridaRegionalPlanningCouncil,Autumn,1978Anotherimportantindicatorinhousingmarketandpopulationanalysisisthenumberofresidentialelectricmeters.ThenumberofmetersinOrangeCounty(servedbytheOrlandoUtilitiesCommissionandFloridaPowerCorp.)showsthatthenumberofactivemetersduringthefourthquarterof1978representsanincreaseof3.8%overthesameperiodfortheprioryear.ThenumberofmetersinOrangeCountyareasfollows:QuarterNumberhletersQuarterNumberMetersI/77II/77III/77IV/77152,907152,951153,918156,655I/78II/78III/78IV/78158,106158,232159,663162,615Source:EastCentralFloridaRegionalPlanningCouncil,Autumn,1978AgricultureandCitrusThreeoftheState'slargestmanufacturersoffrozenconcentrateorangejuicearelocatedinOrangeCountyatWinterGarden,PlymouthandOrlando.PlymouthCitrusGrowersAssociauon,alargefreshcitrusshipper,islocatedjustnorthofOrlando.OrangeCountyiscurrentlythefourthlargestcitrusproducingcountyinthestatewith54,000acresproducingapproximately15.4millionboxes(worthapproximately$35million)offruitannually.FarmersintheZellwoodareaaremajorproducersofsweetcorn,celeryandleafyvegetablecrops,thevalueofw'hichexceeds$18millionperyear.Apopka,theheartofthenation'sleadingfoliageplantproducingarea,islocatedintheCounty.Productionofornamentalfoliageplantsin1978wasover$57,000,000whichmakesthisfacetofhorticulturenumberoneintermsofproductiondollars.Productionofdairyproducts,cauleandpoultryhaveacombinedannualworthof$6,750,000.BankingandFinanceThecentralFloridaareaisservedbyfifty-fourbankswithtotaldepositsofmorethan$1.4billion.Includedinthisnumberarelocallyownedindependentbanksandunitbankswhicharesubsidiariesofbankholdingcompanies.ThegeographiclocationofOrlando,coupledwiththerecentrapideconomicgrowth,hascausedtheareatobecomeamaturefinancialcenterinrecordtime.Theareahasbecomeaninsurancecenter,withsixregionalhomeoScesandninenationalhomeofiices.Employmentininsurancefirmshasmorethandoubledfrom2,400employeesto4,900employeesinthepasttenyears.D-6 Income/SalesBUSINESSBAROMETER(OrlandoMetroArea)1970197419751976Incomepercapita..IncomeperHousehold...RetailSalesEffectiveBuyingIncome(000)5,3569,47l13,628I3,586l4,71915,840443,987596,076872,0751,987,96I2,059,0782,406,3492,757,221,394,0792,676,4722,891,0IO3,079,I4I3,39936$1,698$2,999$4,5I3$4,680$5,120$5,634Source:1978SurveyofBuyingPower-SalesManagementEconomicIndicatorDec.1978Dec.Percent1977ChangeYeartoDate1978YeartoDate1977PercentChangeConstructionNo.ofResidentialUnitsValueResidentialUnits(000)TotalValue(000)EmploymentCivilianLaborForceNon-FarmManufacturingUnemployedUnemploymentRateTransportation(b)TotalAirPassengersAirCargo/MailEnplaned(tons)TourismHotel/MotelOccupancyRateHotel/MotelRoomsRentedPerNightNumberConventionDelegatesNumberofConventionsMiscellaneousBankruptciesFiled(c)RealEstateSales(000)(a)RealEstateMortgages(000)(a)PostalReceipts(000)(asofSept.'78)SalesTaxCollected(d)(asofOct.'78)870586+48.5$8,999$28,114$15,489+81.5%$293,003$50,077$28,931+73.1%$449,946$5,757+56.4%$163,247+79.5%$289,844+55.2%288,354240,00032,40017,0915.9%281,195229,70028,60018,2706.5%+2.5%+4:5%+13.3%-6.5%288,559236,45430,30017,8426.2%275,392224,99827,05021,4227.8%+4.8%+5.1%+12.0%-16.7%412,1121,759332,724+23.9%1,427+23.3%4,762,91921,4593,794,654+25.5%16,683+28.6%47%54%-13.0%67%61%+9.8%14,75819,37612916,486-10.5%20,83518,634+11.8%25,697-24.6%430,488380,923+13.0%141-8.5%2,2521,761+27.9%45$61,876$63,44971-57.8%$37,191+66.4%$33,352+90.2%834897-7.6%$796,441,$590,047+35.0%$670,525$487,442+37.6%$11,988$9,765+22.8%$119,877$97,651+22.8%$2,316$1,729+34.0%$17,435$15,021+161%(a)OrangeCounty(b)PreviousMonth(c)Orange,Seminole,Osceola,Brevard&VolusiaCounties(d)Orange,Seminole&OsceolaCounties(monthlyaverage)Source:EconomicResearchDepartment,OrlandoAreaChamberofCommerceD-7 EducationTheOrlandoareahasfourmajorinstitutionsofhigherlearning:UniversityofCentralFlorida(formerlyFloridaTechnologicalUniversity),RollinsCollege,SeminoleCommunityCollege,andValenciaCommunityCollege.UCF,whichopenedin1968,islocated12mileseastofOrlando.Itisafour-yearcoeducationaluniversitywithanenrollmentofapproximately10,000students.RollinsCollegeinWinterPark,theoldestfour-yearinstitutionofhigherlearningintheState,isanindependent,coeducationalliberalartscollegewithanenrollmentofapproximately1,300.ValenciaCommunity.College,withanenrollmentofapproximately8,000students,hasthreecampusesandisundergoinga$3.5millionexpansionprogram.SeminoleCommunityCollegehasapproximately3,600students.TheOrangeCountySchoolBoardoperates74elementaryschools,20juniorhighschoolsand1Iseniorhighschoolswithacombinedcurrentenrollmentofapproximately85,000students.D-8.0 APPENDIXETHEBONDRESOLUTIONTABLEOFCONTENTSARTICLEISTATUTORYAUTHORITY,FINDINGS,ANDDEFINITIONSSECTION1.AUTHORITYOFTHISRESOLUTION.SECTION2.FINDING.SECTION3.RESOLUTIONCONSTITUTESCONTRACT.SECTION4.DEFINITIONSARTICLEIIAUTHORIZATION,TERMS,EXECUTIONANDREGISTRATIONOFBONDSPageE-2E-2E-3E-3SECTION1SECTION2SECTION3SECTION4SECTION6SECTION6SECTION7AUTHORIZATIONOFBONDS.~.DESCRIPTIONOFBONDSREDEMPTIONPROVISIONSEXECUTIONOFBONDSANDCOUPONS.NEGOTIABILITYANDREGISTRATION.BONDShfUTILATED,DESTROYED,STOLENORLOSTFORMOFBONDSANDCOUPONS.E-5E-6E-5E-5E-5E-6,E-6SECTIONSECTIONSECTIONSECTIONE-8E-8E-8E-9E-9'-9E-10.E-10........E-10........E-12.E-13.E-13.E-14.E-14.E-14.E-15.E-15.E-15.E-16.E-16.E-16.E-16.E-16.E-16ARTICLEIIICOVENANTS,FUNDSANDAPPLICATIONTHEREOFBONDSNOTTOBEINDEBTEDNESSOFTHECOMihIISSIONANDTHECITYBONDSSECUREDBYPLEDGEOFNETREVEiVUESANDCERTAININVESTMENTINCOME.APPLICATIONOFBONDPROCEEDS.COVENANTSOFTHECOhIhIISSION.A.ARBITRAGECOVENANTB.RATESC.WATERANDELECTRICSYSTEh1REVENUEFUND.....D.OPERATIONANDMAINTENANCE.E.DISPOSITIONOFREVENUESF.SALEOFTHEWATERANDELECTRICSYSTEM.......G.ISSUANCEOFOTHEROBLIGATIONSPAYABLEOUTOFREVENUES.H.ISSUANCEOFPARIPASSUADDITIONALBONDS.......I.INSURAiVCE.J.BOOKSANDRECORDSK.OPERATINGBUDGETL.MAINTENANCEOFTHEWATERANDELECTRICSYSTEihI...................................M.SERVICESRENDEREDBYTHECOMMISSION......."~.N.REMEDIES.O.ENFORCEihIENTOFCOLLECTIONSP.NOCOhIPETINGSYSTEMCONSULTINGENGINEERR.TRANSFEROFOUTSTANDINGOBLIGATIONS,FUNDSANDACCOUNTSS.SIMULTANEOUSDELIVERYT.DISCHARGEANDSATISFACTIONOFBONDS.....~.....~SECTIONSECTIONSECTIONSECTIONSECTIONARTICLEIVMISCELLANEOUSPROVISIONSihIODIFICATIONORAMENDMENTSEVERABILITYOFINVALIDPROVISIONSVALIDATIONAUTHORIZED.SALEOFBONDSEFFECTIVEDATE..E-17.E-17.E-17..E-17..E-17 ARESOLUTIONAMENDING"ARESOLUTIONAUTHORIZINGTHEISSUANCEOFNOTEXCEEDING$250,000,000WATERANDELECTRICREVENUEREFUNDINGANDIM-PROVEMENTBONDS,SERIES1978,OFTHEORLANDO'UTILITIESCOMMISSION,TOFINANCEPARTOFTHECOSTOFTHECONSTRUCTIONOFADDITIONS,EXTENSIONSANDIMPROVEMENTSTOTHEWATERANDELECTRICSYSTE5I,ANDTHEREFUND-INGOFCERTAINOUTSTANDINGOBLIGATIONSHERETOFOREISSUEDBYTHEOR-LANDOUTILITIESCOMMISSION;ANDPROVIDINGFORTHETERMSOFSAIDWATERANDELECTRICREVENUEREFUNDINGANDIMPROVEMENTBONDS,SERIES1978,ANDTHERIGHTS,SECURITYANDREMEDIESOFTHEHOLDERSTHEREOF."Whereas,theCommissionhasdulyadoptedaResolutionau-thorizingtheissuanceofWaterandElectricRevenueRefund-ingandImprovementBonds,Series1978,onApril18,1978andherebydeterminestoamendsaidResolution,thereforebeitresolvedbytheOrlandoUtilitiesCommissionthatsaidRe-solutionbeamendedtoreadinfullasfollows:ARTICLEISTATUTORYAUTHORITY,FINDINGSANDDEFINITIONSSECTION1.AUTHORITYOFTHISRESOLUTION.ThisresolutionisadoptedpursuanttotheprovisionsofChap-ter9861,LawsofFlorida,Actsof)923,asamendedandsupplementedbyChapter10968,.LawsofFlorida,Actsof1925,asamendedbyChapter13198,LawsofFlorida1927,Chapter24758,LawsofFlorida1947,Chapters31075,31076,31077,3)078,31080and31092,LawsofFlorida1955,Chapter2589,LawsofFlorida1961,andotherapplicableprovisionsoflaw.SECTION2.FINDINGS.Itisherebyascertained,deter-minedanddeclared:A.ThattheCommissionnowoperates,maintainsandcon-trolsamunicipalWaterandElectricSystemforthesupplyanddistributionofwaterandelectricitywithinandwithouttheCityofOrlando,Florida.TheCommission,pursuanttotheauthoritysetforthinSection1hereofwascreatedandestab-lishedtooperate,maintainandcontroltheWaterandElectricSystem,asapartoftheCityofOrlando,andhassince1923,hadfullandcompletecontrolandjurisdictionoftheWaterandElectricSystem.B.Thatthereisherebyauthorizedtheconstructionofadditions,extensionsandimprovementstotheWaterandElectricSystemincludingbutnot,limitedtoanadditionalsteamelectricgeneratingunitatMcIntoshPlant,withrailandcoalunloadingstorageandhandlingfacilities,asolidrefuseburningfacility,andsewageeffluenthandlingfacilitiesforthecoolingrequirementsofthegeneratingunit,additionstotheelectrictransmissionandsubstationfacilities,additionstothewaterproductionplantandtransmissionsystemsandtothewaterplantcentralcomputercontrolsystem,andother'acilitiesappurtenant,necessary,orincidentaltoanyoftheabovelistedfacilities.Thesaidadditionalsteamelectricgeneratingunitshallbeanundivided40%interestastenantsincommoninajointownershipprojectinparticipationwiththeCityofLakeland,Florida,whichshallowntheremainingundivided60%interestin'heproject.C.Thattheconstructionofadditions,extensionsandim-provementstotheWaterandElectricSystemisimperativeinordertopreservethepublichealthandsafetyofthecitizensoftheCityofOrlandoandothercustomers,anditisessentialtothephysicalandeconomicnecessityofsaidCitythattheWaterandElectricSystembecontinued,maintained,im-provedandextendedasprovidedinthisresolution.D.TheCommissionhasconstructedadditions,extensionsandimprovementstotheWaterandElectricSystem,financedpursuanttoaresolutionadoptedbytheCommissiononMarch13,1948(hereinafterreferredtoasthe"OriginalResolution"),bytheproceedsof$20,500,000WaterandElectricRevenueBonds,Series1957,datedOctober1,195Z,issuedpursuanttoaresolutionsupplementaltosaidOriginalResolution,adoptedNovember26,1957,bytheproceedsof$8,000,000WaterandElectricRevenueBonds,Series1959,datedOctober1,1959,issuedpursuanttoaresolutionsupplementaltosaidOriginalResolution,adoptedOctober13,1959,bytheproceedsof$28,000,000WaterandElectricRevenueBonds,Series1962,datedApril1,1962,issuedpursuanttoaresolutionsupple-mentaltosaidOriginalResolution,adoptedMarch27,1962bytheproceedsof$20,000,000WaterandElectricRevenueBonds,Series1970,datedOctober1,1970,issuedpursuanttoaresolutionsupplementaltosaidOriginalResolutionadoptedSeptember21,1970,bytheproceedsof$33,500,000WaterandElectricRevenueBonds,Series1971,datedOctober1,1971,issuedpursuanttoaresolutionsupplementaltosaidOriginalResolutionadoptedJuly13,1971,bytheproceedso$)5,000,000WaterandElectricRevenueBonds,Series1973datedApril1,1973,issuedpursuanttoaresolutionsupple-mentaltosaidOriginalResolution,adoptedApril10,1973bytheproceedsof$)0,000,000WaterandElectricRevenueBonds,Series1975-A,datedApril1,1975,andof$9,875,000WaterandElectricRevenueBonds,Series19Z5-B,issuedpursuanttoaresolutionsupplementaltosaidOriginalResolu-tionadoptedJuly8,1975.ThattheCommissionhasrefundedtheWaterandElectricRevenueBonds,Series1975-A,datedApril1,1975maturingintheyears1986to2002,inclusive,fromtheproceedsofthe$8,875,000WaterandElectricRe-venueRefundingBonds,Series1976,issuedpursuanttoaresolutionsupplementaltosaidOriginalResolutionadoptedSeptember23,1976.E.ThattheCommissionhasheretoforeissuedandhasnowoutstandingandunpaidtheOutstandingObligations.F.ThattheRevenuesderivedfromtheoperationoftheWaterandElectricSystemarenotpledgedorencumberedinanymannerexceptforthepaymentofprincipalofandinterestontheOutstandingObligations.ThattheCommissionalsomakesTransfersofFundswhicharesubordinatetothelienontheRevenuesoftheBondsauthorizedbythisresolution.G.Thatthereisherebyauthorizedthepaymentandre-fundingoftheOutstandingObligationsallinthemannerasprovidedbythisresolution.H.ThatforthepaymentandrefundingoftheOutstandingObligationstheCommissionshallasprovidedhereindeposipartoftheproceedsderivedfromthesaleoftheBondsinE-2 specialEscrowDepositTrustFundtogetherwiththepro-ceedsderivedfromthesaleofSpecialObligationBondstobeauthorizedbytheCommissionandissuedsimultaneouslywiththeBondswhichshallbesufficient,atthetimeofsuchdeposit,topayandrefundtheOutstandingObligationsasthesamebecomedueandpayableorareredeemedpriortomaturity,allasprovidedinthisresolution.I.ThattheestimatedGrossRevenuestobederivedineachyearhereafterfromtheoperationoftheWaterandElec-tricSystemwillbesufficienttopayallthecostsofoperationandmaintenanceoftheWaterandElectricSystem,theprin-cipalofandinterestontheBondstobeissuedpursuanttothisresolution,asthesamebecomedue,andallsinkingfund,reserveandotherpaymentsprovidedforinthisresolution.J.ThattheprincipalofandinterestontheBondstobeissuedpursuanttothisresolution,andallofthereserve,sinkingfundandotherpaymentsprovidedforinthisresolu-tionwillbepaidsolelyfromtheNetRevenuesderivedfromtheoperationoftheWaterandElectricSystemandcertaininvestmentincome,except,however,theprincipalofcertaintermbondsareadditionallysecuredbyandpayablefrommoneysandinvestmentsondepositintheInvestmentAc-count,allasprovidedherein;andtheadvaloremtaxingpoweroftheCity,orthetaxationofrealestateintheCityortheapplicationofanyotherfundsoftheCommissionwillneverbeauthorizedtopaytheprincipalofandinterestontheBondstobeissuedpursuanttothisresolution,ortomakeanyofthereserve,sinkingfundorotherpaymentsprovidedforinthisresolution,andtheBondsissuedpursuanttothisresolutionshallnotconstituteadebtoftheCommissionortheCityorbealienupontheWaterandElectricSystemoruponanyotherpropertywhatsoeveroftheCommissionoroftheCity..K.Thatthecostoftheconstructionoftheadditions,ex-tensionsandimprovementstotheWaterandElectricSystemandtherefundingoftheOutstandingObligationsshallbedeemedtoincludebutshallnotbelimitedtothecostofanylandsorrealestate,includingeasementsorotherintereststherein,oranyotherproperty,realorpersonal,necessarytherefor,interestontheBondsissuedpursuanttothisresolu-tionpriorto,during,andforoneyearafterthecompletionoftheconstructionoftheadditions,extensionsandimprove-mentstotheWaterandElectricSystemauthorizedbythisresolution;administrationexpenses;capitalizationofallorpartofthereserveorotherfundscreatedandestablishedpursuanttothisresolution;discountonthesaleoftheBonds,ifany;engineeringandlegalexpenses;expensesforfiscalagentsorfinancialservices;expensesforestimatesofcostsandofrevenues;expensesforplans,specificationsandsur-veys;andsuchotherexpensesasmaybenecessaryorinciden-taltotheconstructionoftheadditions,extensionsandimprovementstotheWaterandElectricSystemauthorizedbythisresolutionandtheplacingofthesameinoperation;provided,however,suchcostshallnotincludeanylegalex-penses,expensesforfiscalagentsorfinancialservices,ex-pensesforestimatesofcostsandofrevenuesandsuchotherexpensesasmaybenecessaryorincidentalandincurredbytheCommissioninconnectionwiththeissuanceoftheBondswhichshallbepaidfromtheEscrowDepositTrustFundasprovidedherein.L.ThattheBondsauthorizedtobeissuedbythisresolu-tionmaybeissuedatonetimeorfromtimetotimeasdeter-minedbytheCommission;provided,however,thatasuffi-cientamountofBondsauthorizedbythisresolutionsh'allbeissuedsimultaneouslywiththeSpecialObligationBondswhichshallprovideasufficientamountofBondproceedstopayandrefundtheOutstandingObligationsinthemannerprovidedinthisresolution.SECTION3.RESOLUTIONCONSTITUTESCON-TRACT.InconsiderationoftheacceptanceoftheBondsau-thorizedtobeissuedhereunderbythosewhoshallholdthesamefromtimetotime,thisresolutionshallbedeemedtobeandshallconstituteacontractbetweentheCommissionandsuchBondholdersandthecovenantsandagreementshereinsetforthtobeperformedbysaidCommissionshallbefortheequalbenefit,protectionandsecurityofthelegalholdersofanyandallofsuchBondsandthecouponsattachedthereto,allofwhichshallbeofequalrankandwithoutpreference,prior-ity,ordistinctionofanyoftheBondsorcouponsoveranyotherthereofexceptasexpresslyprovidedthereinandherein.SECTION4.DEFINITIONS.That,asusedinthisresolu-tion,thefollowingtermsshallhavethefollowingmeanings:A."Act"shallmeanChapter9861,LawsofFlorida,Actsof1923,asamendedandsupplementedbyChapter10968,LawsofFlorida,Actsof1925,asamendedbyChapter13198,LawsofFlorida1927,Chapter24758,LawsofFlorida1947,Chapters31076,31076,31077,31078,31080and31092,LawsofFlorida1965,Chapter2589,LawsofFlorida1961,andotherapplicableprovisionsoflaw.B."AnnualDebtServiceRequirement"shallmean,atanytime,theamountrequiredtobedepositedinthethencurrentFiscalYearintotheInterestAccount,PrincipalAccount,In-vestmentAccountandtheBondRedemptionAccount,aspro-videdinthisresolution;provided,however,thatsuchamountshallbereducedbyanyearningsorinvestmentincomeinthethencurrentFiscalYearonmoneysandinvestmentsonde-positintheInvestmentAccountandtheDebtServiceReserveAccount.C."Masimu>nAnnualDebtService"shallmean,atanytime,themaximumamountrequiredtobedepositedinthethencurrentoranysucceedingFiscalYearintotheInterestAccount,PrincipalAccount,InvestmentAccount,andBondRedemptionAccount,asprovidedinthisresolution;provided,however,thatsuchamountshallbereduced(i)byanydeter-minableearningsorinvestmentincomeprojectedtobeearnedontheInvestmentAccountSecuritiesand(ii)byanyesti-matedearningsorinvestmentincomefrominvestmentsintheDebtServiceReserveAccountwhichestimateshallbebasedontheincomeandearningstobereceivedfromtheinvest-mentsthenondepositintheDebtServiceReserveAccount.TheamountofTermBondsmaturinginanyFiscalYearshallnotbeincludedindeterminingtheMaximumAnnualDebtService.D."Bondholder"or"HolderofBonds"oranysimilarterm,shallmeananypersor.whoshallbethebearerorownerofanyBondorBondsregisteredtobearerornotregistered,ortheregisteredownerofanyoutstandingBondorBondswhichshallatthetimeberegisteredotherthantobearer,orofcouponsrepresentinginterestaccruedortoaccrueonsaidBonds.E."Bonds"shallmeanthe$250,000,000WaterandElec-tricRevenueRefundingandImprovementBonds,Series1978,authorizedtobeissuedpursuanttothisresolution,to-E-3 getherwithanyparipassuadditionalBondshereafterissuedpursuanttothisresolutioninthemannerhereinprovided,andtheinterestcouponsattachedtotheBonds.,F."City"shallmeantheCityofOrlando,Florida.G."ConsultingEngineer"shallmeananyqualifiedandrecognizednationallyknownengineerorengineeringfirmasdeterminedbytheCommission.H."Commission"shallmeantheOrlandoUtilitiesCommission.I.."EscroivDepositAgreement"shallmeantheEscrowDepositAgreement,datedasofApril1,1978,enteredintobyandbetweentheCommissionandabankortrustcompanyornationalbankingassociation,astrustee,tobehereafterdes-ignatedbyresolutionoftheCommission,inconnectionwiththerefundingoftheOutstandingObligations.J."FiscalYear"shallmeanthatperiodcommencingonOctober1andcontinuingtoandincludingthenextsucceedingSeptember30,orsuchotherannualperiodasmaybepre-scribedbylaw.K."InvestmentAccountSecurities"shallmeanthedirectobligationsoftheUnitedStatesofAmericaorobligationsthatarefullyguaranteedbytheUnitedStatesofAmericawhicharetobedepositedintheInvestmentAccountintheSinkingFundforthepaymentoftheprincipaloftheTermBondspayablefromsaidInvestmentAccount.L."Revenues"or"GrossRevenues"shallmeanallrates,fees,chargesorotherincomereceivedbytheCommissionoraccruedtotheCommissionoranyagencythereofincontrolofthemanagementandoperationoftheWaterandElectricSys-tem,andallpartsthereof,fromtheoperationoftheWaterandElectricSystem,andshallalsoincludetheinvestmentincomedepositedintheRevenueFundderivedfromtheinvestment'ndreinvestmentofmoneysondepositinthevariousfundsandaccountscreatedandestablishedbythisresolution,whichbythetermsandprovisionsofthisresolutionarerequiredtobedepositedintheRevenueFund.~M."¹tRevenues"shallmeanthe(i)GrossRevenuesre-mainingafterdeductionof(ii)OperatingExpensesnotinclu-siveof(a)Transfersoi'undsand(b)PaymentstoOrangeCountyand(c)anyDemandChargeComponents.\N."OperalingExpenses"shallmeanthecurrentex-penses,paidoraccrued,ofoperation,maintenanceandordi-narycurrentrepairsoftheWaterandElectricSystemanditsfacilitiesandshallinclude,withoutlimitingthegeneralityoftheforegoing,insurancepremiums,administrativeexpensesoftheCommissionrelatingsolelytotheWaterandElectricSystem,andsuchotherreasonablecurrentexpensesasshallbeinaccordancewithgenerallyacceptedaccountingpractice."OperatingExpenses"shallnotincludeanyallowancefordepreciation.0."OutstandingObligolons"shallmeanthefollowingoutstandingobligationsoftheCommission:(i)WaterandElectricRevenueBonds,Series1957,datedOctober1,1957,outstandingintheamountof$10,325,000maturingApril1intheyears1979-1984;(ii)WaterandElectricRevenueBonds,Series1959,datedOctober1,1959,outstandingintheamountof$5,900,000maturingApril1intheyears1979-1986;(iii)WaterandElectricRevenueBonds,Series1962,datedApril1,1962,outstandingintheamountof$23,600,000,maturingApril1intheyears1979-1992;(iv)WaterandElectricRevenueBonds,Series1970,datedOctober1,1970,outstandingintheamountof$18,915,000,maturingApril1intheyears1979-1996;(v)WaterandElectricRevenueBonds,Series1971,datedOctober1,1971,outstandinginth'eamountof$31,530,000,maturingApril1intheyears1979-1998;(vi)WaterandElectricRevenueBonds,Series1973,datedApril1,1973,outstandingintheamountof$13,525,000,maturingApril1intheyears1979-2003;(vii)WaterandElectricRevenueBonds,Series1976A,datedApril1,1976,outstandingintheamountof$1,300,000,maturingApril1intheyears1979-1985;(viii)WaterandElectricRevenueBonds,Series1976B,datedApril1,1976,outstandingintheamountof$9,730,000maturingApril1intheyears1979-2006;(ix),WaterandElectricRevenueRefundingBonds,Series1976,datedApril1,1976outstandingintheamountof$8,500,000,maturingintheyears1986-2002;and(x)InterestwhichbecomesdueonorbeforeApril1,1985ontheWaterandElectricRevenueBonds,Series1976A,datedApril1,1975maturingApril1intheyears1986-2002.P."SerialBonds"shallmeantheBondsofanissuewhichshallbestatedtomatureinannualorsemi-annualinstallmentsbutnotincludingTermBonds."SpecialObligationBonds"shallmeanorhaverefer-encetoaprincipalamountofnotexceeding$125,000,000ofSpecialObligationBonds,Series1978,oftheCommission,tobeissuedsimultaneouslywiththeBondswhichareissuedtoprovidefortherefundingoftheOutstandingObligations.R."TennBonds"shallmeantheBondsofanissuewhichshallbestatedtomatureononedateandfortheamortizationofwhichpaymentsarerequiredtobemadeintotheInvest-mentAccountortheBondRedemptionAccountintheSinking,Fund.S."TransfersofFunds"shallmeanthetransfersoffundsmadetothegeneralfundoftheCitywhichincludesbutnotlimitedto(a)fundspledgedintheamountof$180,000peryearfortheretirementoftheCity's1955SewerRevenueBonds;and(b)fundspledgedintheamountof$480,000peryearfortheretirementoftheCity's1970ImprovementRevenueBonds.T."PaymentstoOrangeCounty"shallmeancontribu-tionsmadetoOrangeCounty,Floridapursuanttothepro-ceedingsoftheOrlandoUtilitiesCommission,datedMarch13,1973.U."!VoterandElectricSystem"shallmeanthecompletewaterandelectriclightplantsnowunderthecontroland jurisdictionoftheCommission,togetherwithanyandalladdi-tions,extensionsandimprovementshereaftermadetotheWaterandElectricSystemfromanysourceswhatsoever,includingtheadditions,extensionsandimprovementstotheWaterandElectricSystemconstructedfromtheproceedsoftheBonds,andshallinclude(withoutbeinglimitedto)alllandsofinteresttherein,plants,buildings,machinery,franchises,pipes,fixtures,equipmentandallproperty,realorpersonal,tangibleorintangible,noworhereafterownedorusedinconnectionwiththeWaterandElectricSystem.V."U.S.Obligations"shallmeanthedirectobligationsoftheUnitedStatesofAmericaheldbythetrusteeundertheEscrowDepositAgreement.W."DemandChargeComponent"shallmeanthatportionofanyrates,fees,chargesorpaymentswhichtheCommissionisobligatedtopaytoanotherentityforpurchaseofelectricaloutputforthespecificpurposeofmeetingprincipalorinterestorbothonthatentity'sobligations.DemandChargeCompo-nentsshallbeexcludedfromOperatingExpenses,butshallrankonaparityastopaymentwiththeBondsprovidedtheprovisionsofArticleIII,Section4Hareinet,atthetimesuchDemandChargeComponentsareincurred.Otherwise,De-mandChargeComponentsshallbesubordinatetotheBonds.Wordsimportingsingularnumbershallincludethepluralnumberineachcaseandviceversa,andwordsimportingpersonsshallincludefirmsandcorporations.ARTICLEIIAUTHORIZATION,TERihIS,EXECUTIONANDREGISTRATIONOFBONDSSECTION1.AUTHORIZATIONOFBONDS.Subjectandpursuanttotheprovisionsofthisresolution,obligationsoftheCommissiontobeknownas"tVaterandElectricRevenueRefundingandImprovementBonds,Series1978"areherebyauthorizedtobeissuedintheaggregateprincipalamountofnotexceedingTWOHUNDREDFIFTYMILLIONDOL-LARS($250,000,000)forthepurposeoffinancingpartofthe,costoftheadditions,extensionsandimprovementstotheWaterandElectricSystemandthepaymentandrefundingoftheOutstandingObligationsasprovidedinthisresolution.SECTION2.DESCRIPTIONOFBONDS.TheBonds,shallbedated,shallbeinthedenominationof$5,000each;shallbearinterestat,notexceedingthemaximumrateorratespermittedbylaw,payablesemi-annuallyonApril1andOc-tober1ofeachyear,andshallmatureannuallyonApril1ofeachyearorsemi-annuallyonApril1andOctober1ofeachyearinsuchamounts,asprovidedforbysubsequentresolu-tionoftheCommission.TheBondsshallbeissuedincouponform,shallbearinterestatsuchrateorrate's,shallbepayableatsuchplaceorplacesofpaymentwithinorwithouttheStateofFloridaastheCommis-sionshalldeterminebysubsequentresolution.SECTION4.EXECUTIONOFBONDSANDCOUPONS.SaidBondsshallbesignedinthenameoftheCommissionbythePresidentoftheCommissionanditssealshallbeaffixedtheretoorimprintedorreproducedthereonandattestedbytheSecretaryoftheCommission.Thesigna-turesofsaidPresidentandSecretaryonsaidBondsmaybeamanualorfacsimilesignature,providedthatoneofsuchsigna-turesshallbeamanualsignature.IncaseanyoneormoreoftheofficerswhoshallhavesignedorsealedanyoftheBondsshallceasetobesuchofficeroftheCommissionbeforetheBondssosignedandsealedshallhavebeenactuallysoldanddelivered,suchBondsmayneverthelessbesoldahddeliveredashereinprovidedandmaybeissuedasifthepersonwhosignedandsealedsuchBondshadnotceasedtoholdsucho'fice.AnyBondmaybesignedandsealedonbehalfoftheCommissionbysuchpersonasattheactualtimeoftheexecu-tionofsuchBondshallholdtheproperoffice,althoughatthedateofsuchBondssuchpersonmaynothaveheldsuchoffice-ormaynothav'ebeensoauthorized.ThecouponstobeattachedtotheBondsandthevalidationcertificateonthebackthereofmaybesignedwiththefac-similesignaturesofthepresentoranyfuturePresidentandSecretary,aforesaid,andtheCommissionmayadoptanduseforthatpurposethefacsimilesignatureofanypersonwhoshallhavebeensuchPresidentandSecretaryatanytimeonorafterthedateoftheBonds,notwithstandingthathemayhaveceasedtobesuchPresidentorSecretaryatthetimewhensaidBondsshallbeactuallydelivered.SECTION5.NEGOTIABILITYANDREGISTRA-TION.TheBondsmayberegisteredattheoptionoftheholderastoprincipalonly,orastobothprincipalandinterest,attheofficeoftheRegistrarasshallbehereafterappointed,orsuchotherRegistrarasmaythereafterbeappointed,suchregis-trationtobenotedonthebackofsaidBondsinthespaceprovidedtherefor.Aftersuchregistrationastoprincipalonly,orastobothprincipalandinterest,notransferoftheBondsshallbevalidunlessmadeatsaidofficebytheregisteredowner,orbyhisdulyauthorizedagentorrepresentativeandsimilarlynotedontheBonds,buttheBondsmaybedischargedfromregistrationbybeinginlikemannertransferredtobearerandthereupontransferabilitybydeliveryshallbere-stored.Attheoptionoftheholder,theBondsmaythereaiteragainfromtimetotimeberegisteredortransferredtobearerasbefore.Suchregistrationastoprincipalonlyshallnotaffectthenegotiabilityofthecouponswhichshallcontinuetopassbydelivery.TheBondsshallbeandhaveallthequalitiesandincidentsofnegotiableinstrumentsunderthelawmerchantandtheUni-formCommercialCode-InvestmentSecuritiesLawoftheStateofFlorida,andeachsuccessiveholder,inacceptinganyofsaidBondsorthecouponsappertainingthereto,shallbeconclusivelydeemedtohaveagreedthatsuchBondsshallbeandhaveallthequalitiesandincidentsofnegotiableinstru-mentsunderthelawmerchantandtheUniformCommercialCode-InvestmentSecuritiesLawoftheStateofFlorida,andeachsuccessiveholdershallbeconclusivelydeemedtohaveagreedthatsaidBondsshallbeincontestableinthehandsofabonyfideholderforvalue.SECTION3.REDEMPTIONPROVISIONS.TheBondsmaybesubjecttoredemptionpriortomaturityatsuchtimes,atsuchredemptionpricesanduponsuchtermsinadditiontothetermscontainedinthisresolutionasmaybedeterminedbysubsequentresolutionoftheCommission.SECTION6.BONDSi~IUTILATED,DESTROYED,STOI,ENORLOST.IneaseanyBondshallbecomemutilatedorbedestroyed,stolenorlost,theCommissionmay,initsdiscretion,issueanddeliveranewBondwithallunmaturedcouponsattachedofliketenorastheBondandattachedE-5 partofthecostoftheconstructionofcertainadditions,exten-sionsandimprovementstothe1VaterandElectricSystemoftheOrlandoUtilitiesCommissionandtogetherwiththepro-ceedsof$125,000,000SpecialObligationBonds,Series1978,tobeissuedbytheCommissionsimultaneouslywiththeBondsoftheissueofwhichthisBondisone,torefundcertainout-standingobligationsoftheOrlandoUtilitiesCommissionundertheauthorityofandinfullcompliancewiththeCon-stitutionandStatutesoftheStateofFlorida,includingChap-ter9861,LawsofFlorida,Actsof1923,asamendedandsupplementedbyChapter10968,LawsofFlorida,Actsof1925,asamendedbyChapter13198,LawsofFlorida1927,Chapter24758,LawsofFlorida1947,Chapters31075,31076,31077,31078,31080and31092,LawsofFlorida1955,Chapter2589,LawsofFlorida1961,andotherapplicableprovisionsoflaw,andaresolutiondulyadoptedbytheOrlandoUtilitiesCommissionon,1978asamended(hereinafterreferredtoasthe"Resolution")andissubjecttoallthetermsandconditionsofsaidResolution:(RedemptionProvisions)ThisBondandthecouponsappertainingtheretoarepayablesolelyfromandsecuredbyafirstlienuponandpledgeofthenetrevenuesderivedfromtheoperationoftheWaterandElectricSystemandcertaininvestmentincome',allinthemannerprovidedintheresolutionauthorizingsaidissueofBonds.ReferenceismadetotheResolutionfortheprovisions,amongothers,relatingtotheterms,lienandsecurityfortheBonds,thecustodyandapplicationoftheproceedsoftheBonds,therightsandremediesoftheholdersoftheBondsandtherights,dutiesandobligationsoftheOrlandoUtilitiesCommission.ThisBonddoesnotconstituteanindebtednessoftheOr-landoUtilitiesCommissionortheCityofOrlandowithinthmeaningof'nyconstitutional,statutoryorcharterprovisioorlimitation;anditisexpresslyagreedbytheholderofthisBondandthecouponsappertainingtheretothatsuchholdershallneverhavetherighttorequireorcompeltheexerciseoftheadvaloremtaxingpoweroftheCity,orthetaxationofrealestateintheCityortheapplicationofanyotherfundsoftheCommissionortheCity,forthepaymentoftheprincipalofandinterestonthisBondorthemakingofanysinkingfund,re-serve,orotherpaymentsprovidedforintheResolutionau-thorizingthisissueofBonds.ItisfurtheragreedbetweentheOrlandoUtilitiesCommis-sionandtheholderofthisBondthatthisBondandtheobliga-tionevidencedtherebyshallnotconstitutealienupontheWaterandElectricSystem,oranypartthereof,oronanyotherpropertyoftheOrlandoUtilitiesCommissionortheCityofOrlando,butshallconstitutealienonlyonthenetrevenuesderivedfromtheoperationofthetVaterandElectricSys-tem',allinthemannerprovidedintheResolution.TheCommission,intheResolution,hasconvenantedandagreedwiththeholdersoftheBondstofix.establishandmaintainsuchratesandcollectsuchfees,rentals,orotherchargesfortheservicesandfacilitiesoftheWaterandElectricSystem,andtorevisethesamefromtimetotimewhenevernecessary,aswillalwaysprovideineachyear,netrevenuesadequateatalltimestopayatleastonehundredtiventy-fivepercent(125%)oftheannualdebtservicerequirement(asdefinedintheResolution)fortheBondsandanyparipassuadditionalBondshereafterissued,andthatsuchnetrevenuesshallbesufficienttomakeallotherpaymentsrequiredbythecoupons,ifany,somutilated,destroyed,stolenorlost,inexchangeandsubstitutionforsuchmutilatedBond,uponsur-renderandcancellationofsuchmutilatedBondandattachedcoupons,ifany,orinlieuofandinsubstitutionfortheBondandattachedcoupons,ifany,destroyed,stolenorlostandupontheholderfurnishingtheCommissionproofofhisowner-shipthereofandsatisfactoryindemnityincludinganyex-pensesorcoststheCommissionmayincurinconnectiontherewithandcomplyingwithsuchotherreasonableregula-tionsandconditionsastheCommissionmayrequire.AllBondsandcouponssosurrenderedshallbecancelledbytheSecretaryandheldfortheaccountoftheCommission.IfanysuchBondorcouponshallhavematuredorbeabouttomature,insteadofissuingasubstitutedBondorcoupon,theCommis-sionmaypaythesameuponbeingindemnifiedasaforesaid,andifsuchBondorcouponbelost,stolenordestroyed,with-outsurrenderthereof.AnysuchduplicateBondsandcouponsissuedpursuant-tothisSectionshallconstituteadditionalcontractualobligationsonthepartoftheCommission,whetherornotthelost,stolenordestroyedBondsorcouponsbeatanytimefoundbyanyone,andsuchduplicateBondsandcouponsshallbeentitledtoequalandproportionatebenefitsandrightsastolienonandsourceandsecurityforpaymentfromtheNetRevenuesoftheWaterandElectricSystemandcertaininvestmentincome,withallotherBondsandcouponsissuedhereunder.SECTION7.FORMOFBONDSANDCOUPONS.ThetextoftheBondsandcouponsshallbeofsubstantiallythefollowingtenor,withsuchomissions,insertionsandvariationsasmaybenecessaryanddesirableandauthorizedorpermit-tedbythisresolutionoranysubsequentresolutionadoptedpriortotheissuancethereof:No.$5+00UNITEDSTATESOFAbIERICASTATEOFFLORIDACOUNTYOFORANGEORLANDOUTILITIESCOMMISSIONWATERANDELECTRICREVENUEREFUNDINGANDIbiPROVEMENTBOND.SERIES1978KN01VALLMENBYTHESEPRESENTS,thattheOr-landoUtilitiesCommission,inOrangeCounty,Florida,forvaluereceived,herebypromisestopaytothebeareror,ifthisBondberegistered,totheregisteredholderashereinpro-'ided,onthefirstdayof,,solelyfromthenetrevenuesandcertaininvestmentincome,hereinaftermen-tioned,theprincipalsumofFIVETHOUSANDDOLLARSwithinterestthereonattherateofpercentum(%)perannum,payablesemi.annuallyonthefirstdayofAprilandthefirstdayofOctoberofeachyear,uponthepresentationandsurrenderoftheannexedcouponsastheyseverallyfalldue.BothprincipalofandinterestonthisBondarepayableatinlaw-fulmoneyoftheUnitedStatesofAmerica.ThisBond'isone~aggregateprincipalalikedate,tenor,andmaturityandinterestTobeinsertediuaudinvestmentsonTobeinsertedinandinvestmentsonofanauthorizedissueofBondsinthemountofnotexceeding$250,000,000ofeffect,exceptastonumber,dateofrate,issuedforthepurposeoffinancingTermBondspayablefromtheInvestmentdepositintheinveslmcntaccounteslabhsallBondsuofpayablefromtheInvestmealdepositiutheinvestmentaccounteslabliE-6Account:"andisaddiliouallysecuredbynndpayablefrominoueyshedpursuaiittotheResolution.'ccount:"ThisBondisuotsecuredbynndpaynblefronc>!!oueysshedpursuaullotheResoluliou."

termsoftheResolutionandthatsuchrates,fees,rentalsorotherchargesshallnotbereducedsoastobeinsufficienttoprovidefundsforsuchpurposes.Additionalbonds,payablefromrevenuesparipassuwiththeBondsofwhichthisBondisone,maybeissuedbytheCommissionfromtimetotimeuponconditionsandinthemannerprovidedintheResolution.SuchparipassuadditionalbondsshallnotbesecuredbyorpayablefromthemoneysandinvestmentsondepositintheinvestmentaccountestablishedbytheResolution.INWITNESSWHEREOF,theOrlandoUtilitiesCommis-sionhascausedthisBondtobesignedbyitsPresident,eithermanuallyorwithhisfacsimilesignature,andthesealoftheOrlandoUtilitiesCommissionorafacsimilethereoftobeaf-fixedheretoorimprintedorreproducedhereon,andattestedbytheSecretaryoftheOrlandoUtilitiesCommission,eithermanuallyorwithhisfacsimilesignature,andthecouponat-tachedtobeexecutedwiththefacsimilesignaturesofsaidPresidentandSecretary,allasofthefirstdayof,1978.ORLANDOUTILITIESC051MISSIONItisherebycertifiedandrecitedthatallacts,conditionsandthingsrequiredto'xist,tohappen,andto'beperformed,precedenttoandintheissuanceofthisBondexist,havehappenedandhavebeenperformedinregularanddueformandtimeasrequiredbytheLawsandConstitutionoftheStateof.Floridaapplicablethereto,andthattheissuanceofthisBond,andoftheissueofBondsofwhichthisBondisone,isinfullcompliancewithallconstitutional,statutoryorcharterlimitationsorprovisions.(SEAL)Attest:SecretaryPresidentThisBond,andthecouponsappertainingthereto,isandhasallthequalitiesandincidentsofanegotiableinstrumentunderthelawmerchantandtheUniformCommercialCode-InvestmentSecuritiesLawoftheStateofFlorida,andtheoriginalholderandeachsuccessiveholderofthisBond,orofthecouponsappertainingthereto,shallbeconclusivelydeemedbyhisacceptancethereoftohaveagreedthatthisBondandthecouponsappertainingtheretoshallbeandhaveallthequalitiesandincidentsofnegotiableinstrumentsunderthelawmerchantandtheUniformCommercialCode-InvestmentSecuritiesLawoftheStateofFlorida,andtheoriginalholderandeachsuccessiveholderofthisBond,andofcouponsappertaining,thereto,shallbeconclusivelydeemedtohaveagreedandconsentedtothefollowingtermsandconditions:(a)TitletothisBond,unlessregisteredashereinpro-vided,andtotheannexedinterestcoupons,maybetrans-ferredbydeliveryinthemannerprovidedfornegotiableinstrumentspayabletobearerinthelawmerchantandtheUniformCommercialCode-InvestmentSecuritiesLawoftheStateofFlorida;and(b)AnypersoninpossessionofthisBond,unlessregis-teredashereinprovided,oroftheinterestcouponshereuntoappertaining,regardlessofthemannerinwhichheshallhaveacquiredpossession,isherebyauthorizedtorep-resenthimselfastheabsoluteownerhereofandlsherebygrantedpowertotransferabsolutetitleheretobydeliveryhereoftoabonafidepurchaser,thatis,toanyonewhoshallpurchasethesameforvalue(presentorantecedent)withoutnoticeofpriordefensesorequitiesorclaimsofownershipenforceableagainsthistransferor.EverypriortakerorownerofthisBond,unlessregisteredashereinprovided,andoftheannexedcoupons,waivesandrenouncesallofhisequitiesandrightshereininfavorofeachsuchbonafidepurchaser;andeverysuchbonafidepurchasershallacquireabsolutetitleheretoandtoallrightsrepresentedhereby;and(c)TheCommissionmaytreatthebearerofthisBond,unlessregisteredashereinprovided,oroftheinterestcouponshereuntoappertaining,astheabsoluteownerhereofforallpurposeswithoutbeingaffectedbyanynoticetothecontrary.ThisBondmayberegisteredastoprincipalonly,orastobothprincipalandinterest,inaccordancewiththeprovisionsendorsedhereon.CERTIFICATEOFCITYOFORLANDOTheissuanceofthisBond,andtheissueofwhichthisBondisone,hasbeenapproved,ratified,andconfirmedbyaresolu-tionadoptedbytheCityCounciloftheCityofOrlando,Florida,on,1978.CityClerkMayorFORiNOFCOUPONNo.thendueonitsWaterandElectricRevenueRefundingandImprovementBond,Series1978,dated1,1978.ORLANDOUTILITIESCOMi~IISSIONAttest:ByPresidentSecretary'Tobeinsertedincouponsmaturingafterfirstpriorredemp-tiondate;"(unlesstheBondtowhichthiscouponwasattachedhasbeendulycalledforredemptionpriorto'maturityandpaymentthereofdulyprovidedfor)"Onthedayof,19;OrlandoUtilitiesCom-mission,inOrangeCounty,Florida,willpaytothebeareratinlawfulmoneyoftheUnitedStatesofAmerica,fromtherevenuesdescribedintheBondtowhichthiscouponisat-tached,thesumofdollars($),uponpresentationandsurrenderofthiscoupon,beingthesemi-annualinterestE-7 FORMOFVALIDATIONCERTIFICATEThisBondisoneofaSeriesofBondswhichwerevalidatedbyjudgmentoftheCircuitCourtoftheNinthJudicialCircuitofFlorida,inandforOrangeCounty,Florida,renderedonthedayof,1978.PresidentSecretaryPROVISIONSFORREGISTRATIONThisBondmayberegisteredinthenameoftheholderonthebookstobekeptbytheDateofRegistrationInWhoseMannerSignatureNameofofRegisteredRegistrationRegistrarARTICLEIIICOVENANTS,FUNDSANDAPPLICATIONTHEREOFSECTION1.BONDSNOTTOBEINDEBTEDNESSOFTHECOMMISSIONANDTHECITY.NeithertheBondsnorthecouponsappertainingtheretoshallbeorconstituteanasRegistrar,orsuchotherRegistrarasmayhereafterbedulyappointed,astoprincipalonly,suchregistrationbeingnotedhereonbysuchRegistrarintheregistrationblankbelow,afterwhichnotransfershallbevalidunlessmadeonsaidbooksbytheregisteredholderorhisdulyauthorizedagentorrep-resentativedulyauthorizedandsimilarlynotedintheregis-trationblankbelow,butmaybedischargedfromregistrationbybeingtransferredtobearer,afterwhichitshallbetrans-ferablebydelivery,butitmaybeagainregisteredasbefore.TheregistrationofthisBondastoprincipa)shallnotrestrainthenegotiabilityofthecouponsbydeliverymerely,butthecouponsmaybesurrenderedandtheinterestmadepayableonlytotheregisteredholder,inwhicheventtheRegistrar,shallnoteintheregistrationblankbelowthatthisBondisregisteredastointerestaswellasprincipal,andthereaftertheinterestwillbe'remittedbymailtotheregisteredholder.WiththeconsentoftheholderandoftheOrlandoUtilitiesCommission,thisBond,whenconvertedintoaBondregis-teredastobothprincipalandinterest,maybereconvertedintoacouponBondandagainconvertedintoaBondregisteredastobothprincipalandinterestashereinaboveprovided.UponreconversionofthisBond,whenregisteredastoprinci-palandinterestintoacouponBond,couponsrepresentingtheinteresttoaccrueuponthisBondtodateofmaturityshallbeattachedtheretobytheRegistrarandtheRegistrarshallnoteintheregistrationblankbelowwhetherthisBondisregis-teredastoprincipaonlyorpayabletobearer.indebtednessoftheCominissionortheCity,withinthemean-ingofanyconstitutional,statutoryorcharterprovisionsorlimitations;butshallbepayablesolelyfromtheNetRevenuederivedfromtheoperationoftheWaterandElectricSysteandcertaininvestmentincomeexcept,however,theTeriBondspayablefromtheInvestmentAccountareadditionallysecuredbyandpayablefrommoneysandinvestmentsondepositintheInvestmentAccount,ashereinprovided.NoholderorholdersofanyBondsissuedhereunder,orofanycouponappertainingthereto,shalleverhavetherighttocorn-peltheexerciseoftheadvaloremtaxingpoweroftheCity,ortaxationinanyformofanyrealpropertytherein,ortheapplicationofanyotherfundsoftheCommissionortheCitytopaytheBondsortheinterestthereon.SECTION2.BONDSSECUREDBYPLEDGEOFNETREVENUESANDCERTAININVESTMENTINCOME.ThepaymentoftheprincipalofandinterestonalloftheBondsissuedhereunder<<ndanyparipassuadditionalBondshere-afterissued,asprovidedherein,shallbesecuredforthwithequallyandratablybyafirstlienonandpledgeoftheNetRevenuesderivedfromtheoperationofthetVaterandElec-tricSystemandoftheearningsandinvestmentincomede-rivedfromthemoneysandinvestmentsondepositintheIn-vestmentAccountandtheDebtServiceReserveAccountanddepositedintheInterestAccountinthemannerprovidedinthisresolution.TheTermBondspayablefromtheInvestmentAccountareadditionallysecuredbyandpayab!efrommoneysandinvestmentsondepositintheInvestmentAccount.TheNetRevenuesderivedfromtheWaterandElectricSystemandthecertaininvestmentincome,inanamountsufficienttopaytheprincipalofandinterestontheBondshereinau-thorizedandtomakethepaymentsintothesinkingfundandallotherpaymentsprovidedforinthisresolution,areherebyirrevocablypledgedtothepaymentoftheprincipa)ofainterestontheBondsauthorizedherein,andotherpaymenprovidedforherein,asthesamebecomedueandpayable.SECTION3.APPLICATIONOFBONDPROCEEDS.AllmoneysreceivedbytheCommissionfromthesaleoftheBondsoriginallyauthorizedandissuedpursuanttothisresol-utionshallbedisbursedasfollows:A.TheaccruedinterestderivedfromthesaleoftheBondsshallbedepositedintheInterestAccounthereinaftercreatedandestablishedandusedforthepurposeofpayingtheinterestbecomingdueandpayableonsaidBondsontheirnextinterestpaymentdate.B.AsufficientamountofBondproceedsshallbedepositedintheDebtServiceReserveAccounthereinaftercreatedandestablishedwhichtogetherwithallofthemoneysandsecuritiesondepositinthedebtseivicereserveaccountscreatedpursuanttotheproceedingswhichauthorizedtheissuanceoftheOutstandingObligations,whichbysshetermsandprovisionsofthisresolutionshallbetransferredtotheDebtServiceReserveAccount,shallbeequaltotheMaximumAnnualDebtService.C.AsufficientamountofBondsproceedstogetherwiththeproceedsderivedfromthesaleoftheSpecia)ObligationBondswhichshallbeissuedsimultaneouslywiththeBondsshallbedepositedinanescrowdeposittrustfundtobeheldbyabankortrustcompany,asTrustee,underthetermsandprovisionsoftheEscrowDepositAgreementandappliedinthefollowingmanner;(i)Aportionofsaidmoneysshallbedepositedirrevoca-blyintrustintheescroivdeposittrustfundunderthetermsandprovisionsoftheEscrowDepositAgreement,sucmoneysshal)atthetimeofsuchdepositbesufficienttoptheprincipalofandinterestontheOutstandingObligationE-8 asthesamhshallbecomedueandpayableorareredeemedpriortotheirmaturity,andshallbeinvestedinU.S.Obliga-tionsinthemannersetforthinthe'EscrowDepositAgree--ment,whichinvestments(beingtheprincipaloftheinvest-mentspurchasedinaccordancewiththetermsoftheEscrowDepositAgreement),shallmatureatsuchtimesandinsuchamountsasshallbesufficienttopaytheprincipalofandintereston.theOutstandingObligationsasthesamematureandbecomedaeandpayableorareredeemedpriortomatur-.ity.Suchinvestmentsshallfurtherprovidesufficientin-comeandearningstopaytheprincipalofandinterestontheSpecialObligationBondsasthesamematureandbecomedueandpayableinthemannerprovidedintheresolutionwhichauthorizedtheirissuanceandintheEscrowDepositAgreement.(ii)Thebalanceofsaidmoneysprovidedforinthissub-sectionCshallalsobedepositedintoaspecialaccountintheescrowdeposittrustfundandusedforthepurposeofpayingtheexpensesincurredbytheCommissioninconnectionwiththeissuanceofthebondsandtheSpecialObligationBonds.D.ThebalanceoftheBondproceeds,shallbedepositedina"ConstructionFund"inabankortrustcompanywhichiseligibleunderthelawsoftheStateofFloridatoreceivede-positsofstateandmunicipalfunds,whichfundisherebycreatedandestablished.NowithdrawalsshallbemadefromtheConstructionFundwithoutthewrittenapprovaloftheConsultingEngineerandonlyuponreceiptofawrittenrequis-itionexecutedbythedulyauthorizedofficialinchargeot'heWaterandElectricSystem,specifyingthepurposeforwhichsuchwithdrawalistobemadeandcertifyingthatsuchpurposeisoneofthepurposesprovidedforinthisresolutionprovided,however,thatnosuchwrittenapprovalshallberequiredforlegal,financialandengineeringexpensesandfeesinconnec-tionwiththeconstructionoftheadditions,extensionsandimprovementstotheWaterandElectricSystem,andinterestontheBondspriorto,duringandforoneyearafterthecom-pletionoftheconstructionoftheadditions,extensionsandimprovementstotheWaterandElectricSystem.IfforanyreasonthemoneysinsaidFund,oranypartthereof,arenotnecessaryfor,orarenotappliedtothepurposesprovidedinthisresolutionthensuchunappliedproceedsshallbedeposited,uponcertificationoftheConsultingEngineerthatsuchunappliedproceedsarenotneededforthepurposesoftheConstructionFund,inthefollowingorder:FirsttotheDebtServiceReserveAccountherein-aftercreatedandestablishedtothefullextentnecessarytomaketheamountthenondepositthereinequaltothemaximumamountrequiredtobeondepositintheDebtSer-viceReserveAccountinaccordancewiththetermsofthisresolution.SecondtotheRenewalandReplacementFundhereinaftercreatedandestablishedtothefullextentnecessarytomaketheamountthenondepositthereinequaltothemaximumamountrequiredtobeondepositintheRenewalandRe-placementFundinaccordancewiththetermsofthisresolu-tion.Thirdthebalance,ifany,foranylawfulcapitalexpendituresinconnectionwiththeWaterandElectricSystemorthere-demptionorpurchaseofoutstandingBonds.Themoneysdepositedinthe.ConstructionFundmay,pend-ingtheiruseforthepurposesprovidedinthisresolution,betemporarilyinvested(i)indirectobligationsoftheUnitedStatesofAmerica,(ii)inobligationsfullyguaranteedbytheUnitedStatesofAmerica,(!ii)CertificatesofDepositandRepurchaseAgreementscontinuouslyandfullysecuredbydirectobligationsoftheUnitedStatesofAmerica,obligationsfullyguaranteedbytheUnitedStatesofAmerica,orinsuredbytheFederalDepositInsuranceCorporation,maturingnotlaterthanthedatesonwhichsuchmoneyswillbeneededforthepurposeoftheConstructionFund,or(iv)suchotherobli-gationsasarepermittedbytheapplicablelawsoftheStateofFlorida.AlltheincomeandearningsfromsuchinvestmentsandreinvestmentsshallremaininandbecomeapartoftheConstructionFundandusedforthepurposesoftheConstruc-tionFund.AnymoneysreceivedbytheCommissionfromtheStateofFloridaorfromtheUnitedStatesofAmericaoranyagenciesthereofforthepurposeoffinancingpartofthecostoftheadditions,extensionsandimprovementstotheWaterandElectricSystemauthorizedherein,shallbedepositedintheConstructionFundandusedinthesamemannerasBondproceedsareusedtherein;provided,however,thatseparateaccountsmaybeestablishedintheConstructionFundformoneysreceivedpursuanttotheprovisionsofthisparagraphwheneverrequiredbyFederalorStateregulations.AlloftheproceedsofthesaleoftheBondsshallbeandconstitutetrustfundsforthepurposeshereinaboveprovidedandthereisherebycreatedalienuponsuchmoneys,untilsoapplied,infavoroftheholdersofsaidBonds.SECTION4.COVENANTSOFTHECOMMISSION.TheCommissionherebycovenantsandagreeswiththehol-dersofanyandalloftheBondsissuedpursuanttothisresolu-tionasfollows:A.ARBITRAGECOVENANT.TheCommissionagreesthatitwillnotdirecttheinvestmentoftheproceedsoftheBondsinamannerwhichwouldcausetheBondstobe"arbi-tragebonds"asdefinedinSection103(c)oftheInternalRevenueCodeof1954,asamended,ortheregulationsthere-under,proposedorineffectasofthedateofissuanceoftheBonds.B.RATES.ThattheCommissionwillfix,establishandmaintainsuchratesandcollectsuchfees,rentalsorotherchargesfortheservicesandfacilitiesofitsWaterandElectricSystem,andrevisethesamefromtimetotimewhenevernecessary,aswillalwaysprovideineachFiscalYear,NetRevenuesadequateatalltimestopayineachFiscalYearatleastonehundredtwenty-fivepercent(125%)oftheAnnualDebtServiceRequirementfortheBondsandanyparipassuadditionalBondshereafterissued,andthatsuchNetRev-enuesshallbesufficienttomakeallotherpaymentsrequiredbythetermsofthisresolutionandthatsuchrates,fees,rentalsorotherchargesshallnotbesoreducedsoastobeinsufficienttoprovideadequateRevenuesforsuchpurpose.C.WATERANDELECTRICSYSTEMREVENUEFUND.ThattheentireGrossRevenuesderivedfromtheoperationofsaidWaterandElectricSystemshallbedepositedinaspecialfundinabankortrustcompanywhichiseligibleunderthelawsoftheStateofFloridatoreceivedepositsofstateandmunicipalfunds,whichfundisherebycreated,es-tablishedanddesignatedastheWaterandElectricRevenueFund"(hereinafterreferredtoasthe"RevenueFund").SaidRevenueFundshallconstituteatrustfundforthepurposesE-9 providedinthisresolution,andshallforthepurposesofanaccountingbekeptseparateanddistinctfromallotherfundsoftheCommissionandusedonlyforthepurposesandinthemannerprovidedforinSection4EofthisArticleIII.D.OPERATIONANDMAINTENANCE.ThatitwillmaintainingoodconditiontheWaterandElectricSystemandallpartsthereof,andwilloperatethesameinanefficientandeconomicalmanner,makingsuchexpendituresforequipmentandforrenewal,repairandreplacementasmaybeproperfortheeconomical'operationandmaintenancethereof.E.DISPOSITIONOFREVENUES.Thereareherebycreatedandestablishedthefollowingfundsandaccounts:The"WaterandElectricSinkingFund"(hereinafterre-ferredtoasthe"SinkingFund").Therearealsoherebycreatedfive(6)separateaccountsinsaidSinkingFundtobeknownasthe"InterestAccount,"the"PrincipalAccount,"the"InvestmentAccount,"the"BondRedemptionAccount"andthe"DebtServiceReserveAccount."The"WaterandElectricRenewalandReplacementFund"(hereinafterreferredtoasthe"RenewalandReplacementFund").TheSinkingFundandthefive(6)separateaccountsthereinandtheRenewalandReplacementFundshallbedepositedinabankortrustcompanywhichiseligibleunderthelawsoftheStateofFloridatoreceivedepositsofstateandmunicipalfunds.AllrevenuesatanytimeremainingondepositintheRev-enueFundshallbedisposedofonlyinthefollowingmanner:1.RevenuesshallbeusedtopaythecurrentOperatingExpensesoftheWaterandElectricSystem.2.Revenuesshallnextbeused,tothefullextentneces-sary,fordepositintotheInterestAccountintheSinkingFund,onthefifteenth(15th)dayofeachmonth,beginningwiththefifteenth(16th)dayofthefirstfullcalendarmonthfollowingthedateonwhichanyoralloftheBondsaredeliv-eredtothepurchaserthereof,suchsumsasshallbesufficienttopayone-sixthoftheinterestbecomingdueontheBondson.thenextsemi-annualinterestpaymentdate,provided,how-ever,thatsuchmonthlydepositsforinterestshallnotberequiredtobemadeintotheInterestAccounttotheextentmoneysaredepositedintheInterestAccountfromthepro-ceedsoftheBondsasprovidedinSections3Aand3DofArticleIIIhereofandaresufficientforsuchpurpose.AnymoneysthataredepositedintheInterestAccountfromtheearningsandinvestmentincomederivedfromthemoneysandinvestmentsondepositintheDebtServiceReserveAc-countandtheInvestmentAccountshallbecreditedagainsttheamountofRevenuesrequiredtobedepositedintheIn-terestAccountasprovidedinthissubsectionandsuchRev-enuesshallnotberequiredtobedepositedintotheInterestAccountaslongastheamountondepositthereinisequaltoorgreaterthantheamountrequiredtobeondepositintheInterestAccountatthetimeofsuchcomputation.3.Revenuesshallnextbeused,tothefullextentnecessary,(a)fordepositinthePrincipalAccountonthefifteenth(15th)dayofeachmonthineachyear,one-sixth(I/6th)oftheprincipalamountoftheBondswhichwillmatureandbecomedueonsuchsemi-annualmaturitydatesandone-twelfth(V12th)oftheprincipalamountoftheSerialBonwhichwillmatureandbecomedueonsuchannualmaturidates,beginningonsuchdates,asshallhereafterbedeteminedbysubsequentresolutionoftheCommission.(b)fordepositintheInvestmentAccountonthefifteenth(15th)dayofeachmonthineachyear,beginningonsuchdate,insuchamountsandineachyearasmayberequiredforthepaymentorredemptionoftheTermBondspayablefromtheInvestmentAccountasshallhereafterbedeter-minedbysubsequentresolutionoftheCommission.AnyinterestorinvestmentincomederivedfromtheInvestmentAccountSecuritiesretainedintheInvestmentAccount,shallbecreditedagainsttheamountofRevenuesrequiredtobedepositedintotheInvestmentAccountasprovidedinthissubsection.ThemoneysdepositedintheInvestmentAccountfortheTermBondspayabletherefromshallbeappliedtothepurchaseoftheInvestmentAccountSecuritiesatsuchtimesandinsuchamountsastheCommissionshalldeter-minebysubsequentresolution.ThemoneysdepositedintheInvestmentAccountuntilappliedtothepurchaseofIn-vestmentAccountSecuritiesmaybeinvestedin(i)indirectobligationsoftheUnitedStatesofAmericaor(ii)obliga-tionsfullyguaranteedbytheUnitedStatesofAmerica,(iii)inCertificatesofDepositorRepurchaseAgreementscon-tinuouslyandfullysecuredby(i)or(ii)aboveorinsuredbytheFederalDepositInsuranceCorporation,whichmaturepriortothedatethatsuchmoneysshallberequiredforthepurposesoftheInvestmentAccount.IntheeventthatanyoftheInvestmentAccountSecur-itiesshallbecalledforredemptioninaccordancewiththterms,themoneysresultingtherefrommayberetainedtheInvestmentAccountandmaybereinvestedinInvest-mentAccountSecurities.SuchmoneysorInvestmentAccountSecuritiesmaybeappliedattheoptionoftheCom-missionforthepurchaseorredemptionoftheTermBondspayablefromtheInvestmentAccountorthepaymentofsaidTermBondsatmaturity.TheInvestmentAccountSecuritiesshallbeheldintrustbyabankortrustcompanypursuanttoanagreemententeredintobyandbetweentheCommissionandsaidbankortrustcompany,andshallbepledgedandappliedsolelytothepay-mentoftheprincipalofsaid'IbrmBondsatmaturityortotheirpaymentuponthepriorredemptionthereof.ThereshallbeinitiallydepositedintheInvestmentAc-countallmoneysandinvestmentsondepositinthesinkingfundcreatedandestablishedbytheproceedingswhichau-thorizedtheissuanceoftheOutstandingObligationsexceptforthedebtservicereserveaccounttherein.AllinterestorinvestmentincomederivedfromallmoneysandinvestmentsondepositintheInvestmentAccountshallremaininandbecomeapartoftheInvestmentAccountandsuchinterestorinvestmentincomeshallbeusedasreceivedandcreditedagainsttheamountofRevenuesrequiredtobedepositedintheInvestmentAccountasprovidedinthisSec-tion4E(3)(b)ofthisArticleIII.UntilappliedforthepurchaseofInvestmentAccountSecuritiesallinterestorinvestmentincomemaybeinvestedasprovidedinthisSection4E(3)(b)ofthisArticleIII.WhenthereisondepositintheInvestmentAccountasufficientprincipalamountofInvestmentAccouSecuritiestogetherwithanyotherfundsondepositintInvestmentAccounttopaytheprincipaloftheTermBon payabletherefromnofurtherdepositsintosaidInvestmentAccountshallbenecessaryandthereafterallinterestorin-vestmentincomederivedfromtheInvestmentAccountSe-curitiesshallbetransferredonthenextbusinessdayfollowingtheirreceiptanddepositedintheInterestAccountandusedforthepurposesthereof.SuchinterestorinvestmentincomederivedfromallmoneysandinvestmentsondepositintheInvestmentAccountshallbepledgedtothepurchaseofInvestmentAccountSecuritiesuntilthereisondepositintheInvestmentAccountasufficientprincipalamountofInvestmentAccountSecuritiestogetherwithanyotherfundsondepositintheInvestmentAccounttopaytheprincipaloftheTermBondspayabletherefrom.(c)fordepositintotheBondRedemptionAccountonthefifteenth(15th)dayofeachmonthineachyear,beginningonsuchdate,insuchamountsandineachyearasmayberequiredforthepaymentoftheTermBondspayablefromtheBondRedemptionAccount,asshallhereafterbedeter-minedbysubsequentresolutionoftheCommission.ThemoneysintheBondRedemptionAccountshallbeusedattheoptionoftheCommissionforthepurchaseorredemptionoftheTermBondspayabletherefromorsuchmoneysorinvestmentsmayberetainedintheBondRe-demptionAccount,investedandreinvestedasprovidedhe-reinandappliedtothepaymentofsaidTermBondspriortoorattheirmaturity.TheCommissionmayatany.timepurchaseanyofsaidTermBondsatpricesnotgreaterthanthethenredemptionpriceofsaidTermBonds.IftheTermBondsarenotthenredeemablepriortomaturity,theCom-missionmaypurchasesaidTermBondsatpricesnotgreaterthantheredemptionpriceofsuchTermBondsonthenextensuingredemptiondate.TheCommissionatitsoptionmayuseanymoneysinsaidBondRedemptionAccountf'rtheredemptionpriortomaturityofsuchTermBondsinsuchmannerandattimesasshallbedeterminedbysubsequentresolutionprovided.NodistinctionorpreferenceshallexistintheuseofthemoneysondepositintheRevenueFundforpaymentintotheInterestAccount,thePrincipalAccount,theInvestmentAc-countandtheBondRedemptionAccount,suchaccountsbeingonaparitywitheachother.4.Revenuesshallnextbeused,tothefullextentneces-sary,fordepositsintotheDebtServiceReserveAccountonthefifteenth(16th)dayofeachmonthineachyear,beginningwiththefifteenth(15th)dayofthefirstfullcalendarmonthfollowingthedateonwhichanyoralloftheBondsissuedhereunderaredeliveredtothepurchaserthereof,suchsumsasshallbesufficienttopayanamountequaltoone-twelfthoftwentypercent(1/12thof20%)oftheMaximumAnnualDebtService;provided,however,thatnopaymentsshallbere-quiredtobemadeintosaidDebt,ServiceReserveAccountwheneverandaslongastheamountdepositedthereinshall.beequaltotheMaximumAnnualDebtService.ThereshallbeinitiallydepositedintheDebtServiceRe-serveAccount,fromtheproceedsderivedfromthesaleoftheBondsandthemoneysandsecuritiestransferredfromthedebtservicereserveaccountscreatedandestablishedfortheOutstandingObligations,anamountequaltothe61aximumAnnualDebtService,asprovidedinSection3DofthisArticleIII.MoneysintheDebtServiceReserveAccountshallbeusedonlyforthepurposeofmakingpaymentsintotheInterestAccount,PrincipalAccount,BondRedemptionAccountandInvestmentAccountwhenthemoneysintheRevenueFundareinsufficienttherefor;provided,however,thatmoneysondepositintheDebtServiceReserveAccountshallbeusedforthepurposeofmakingpaymentsintotheInvestmentAccountwhenthemoneysintheRevenueFundand/ortheinterestorinvestmentincomederivedfromtheInvestmentAccountSe-curitiesareinsufficientthereforandsuchpaymentsmadeintotheInvestmentAccountinaccordancewiththisparagraphshallbeinvestedinsuchmannerasnottobreachortoviolatethe"ArbitrageCovenant"assetforthinSection4AofthisArticleIII.IntheeventthatanymoneysshallbewithdrawnfromtheDebtServiceReserveAccountforpaymentsintotheInterestAccount,PrincipalAccount,BondRedemptionAccountandtheInvestmentAccountsuchwithdrawalsshallbesub-sequentlyrestoredfromthefirstRevenuesorfundsavail-ableafterallrequiredpaymentshavebeenmadeintotheInterestAccount,PrincipalAccount,BondRedemptionAccountandInvestmentAccountincludinganydeficienciesforpriorpayments.AnymoneysintheDebtServiceReserveAccountinexcessoftheMaximumAnnualDebtServiceforthebondsa'ndanyparipassuadditionalBondshereafterissuedmay,inthedis-cretionoftheCommission,betransferredtoanddepositedintheRenewalandReplacementFundandusedasprovidedhereinforsaidfund.5.RevenuesshallnextbeusedforthepaymentofanysubordinatedobligationshereafterissuedbytheCommissioninaccordancewithSection4GofthisArticleIII;provided,however,suchsubordinatedobligationsshallbepaidonlyafterpaymentoftheTransfersofFunds.6.Revenuesshallnextbeused,tothefullextentneces-sary,fordepositsintheRenewalandReplacementFundonthefifteenth(15th)dayofeachmonth,beginningwiththefifteenth(16th)dayofthefirstfullcalendar'monthfollowingthedateonwhichanyoralloftheBondsissuedhereunderaredeliveredtothepurchasersthereof,suchsumsasshallbesufficienttopayone-twelfth(1/12th)offifteenpercentum(15%)oftheGrossRevenuesderivedfromtheWaterandElectricSystemduringtheprecedingFiscalYear,afterde-ductingfromsuchGrossRevenuesasumequaltoonehundredpercentum(100%)ofthefuelexpenseandenergycomponentofpurchasedpowerexpensesincurredduringsuchFiscalYear.NofutherpaymentsshallberequiredtobemadeintotheRenewalandReplacementFundwhenthereshallhavebeendepositedtherein,anamountatleastequaltofifteenpercentum(16%)oftheGrossRevenuesderivedfromtheWaterandElectricSystemfortheprecedingFiscalYear,afterde-ductingfromsuchGrossRevenuesasumequaltoonehundredpercentum(100%)ofthefuelexpenseandenergycomponentofpurchasedpowerexpensesincurredduringsuchFiscalYear,provided,however,that(i)suchrequiredamountsfordepositmaybeincreasedordecreasedastheConsultingEn-gineershallcertifyisnecessaryforthepurposesoftheRe-newalandReplacementFund,and(ii)intheeventthattheConsultingEngineershallcertifythattheamountsondepositareexcessiveforthepurposesoftheRenewalandReplace-rnentFundsuchexcessamountmaybewithdrawnfromtheRenewalandReplacementFundbytheCommissionandusedforanylawfulpurposeinconnectionwiththeWaterandElec-tricSystem.ThemoneysintheRenewalandReplacementFundshallbeused,whennecessary,forthepurposeofpayingthecostofextensions,improvementsoradditionsto,orthereplacementorrenewalofcapitalassetsoftheWaterandElectricSystem,orextraordinaryrepairsoftheWaterandElectricSystem.

ThemoneysintheRenewalandReplacementFundshallbeusedforthepaymentintotheInterestAccount,PrincipalAccount,InvestmentAccountandBondRedemptionAccountwhenthemoneysintheRevenueFundandDebtServiceReserveAccountareinsufficienttherefor.ThereshallbeinitiallydepositedintheRenewalandRe-placementFundallmoneysandsecuritiesondepositintherenewalandreplacementfundscreatedandestablishedbytheproceedingswhichauthorizedtheissuanceoftheOutstandingObligationsandsuchamountsshallbecreditedagainsttheamountrequiredtobedepositedintheRenewalandReplace-ment,Fund,asprovidedinthisresolution.V.Thereafter,thebalanceofanyrevenuesremaininginsaidRevenueFundshallbeused(i)tomakeanyTransfersofFunds,and(ii)foranylawfulpurposeinconnection'withtheWaterandElectricSystem;provided,however,thatnoneofsuchrevenuesshalleverbeusedforthepurposesprovidedinthisparagraph(7)unlessallpaymentsrequiredinparagraphs(1)to(6)above,includinganydeficienciesforpriorpayments,havebeenmadeinfulltothedateofsuchuse,andtheCommis-sionshallhavefullycompliedwithallcovenantsandagree-mentscontainedinthisresolution.8.TheInterestAccount,PrincipalAccount,InvestmentAccount,BondRedemptionAccount,DebtServiceReserveAccount,RenewalandReplacementFundandallotherspecialfundscreatedandestablishedbythisresolutionshallconsti-tutetrustfunds.MoneysondepositintheRevenueFund,InterestAccount,PrincipalAccountandtheBondRedemptionAccountmaybeinvested(i)indirectobligationsoftheUnitedStatesofAmerica(ii)inobligationsfullyguaranteedbytheUnitedStates,(iii)inCertificatesofDepositorRepurchaseAgree-mentscontinuouslyandfullysecuredby(i)or(ii)aboveorinsuredbytheFederalDepositInsuranceCorporation,maturingnotlaterthanthedatesonivhichsuchmoneyswillbeneededforthepurposesofsuchfundoraccount,or(iv)suchotherobligationsasarepermittedbytheapplicablelawsoftheStateofFlorida.MoneysondepositintheDebtServiceReserveAccountmaybeinvested(i)indirectobligationsoftheUnitedStatesofAmerica,or(ii)inobligationsfullyguaranteedbytheUnitedStatesofAmerica,maturingnotlaterthanthefinalmaturityofanyoftheBonds.MoneysondepositintheRenewalandReplacementFundmaybeinvested(i)indirectobligationsoftheUnitedStatesofAmerica,(ii)inobligationsfullyguaranteedbytheUnitedStatesofAmerica,(iii)inCertificatesofDepositorRepur-chaseAgreementscontinuouslyandfullysecuredby(i)or(ii)aboveorinsuredbytheFederalDepositInsuranceCorpora-tion,or(iv)suchotherobligationsasarepermittedbytheapplicablelawsoftheStateofFlorida,whichmaturewithinfive(5)yearsfromthetimeofsuchinvestment.AllincomeandearningsreceivedfromtheinvestmentandreinvestmentofmoneysondepositintheInterestAccount,PrincipalAccount,BondRedemptionAccountandRenewalandReplacementFundshallbetransferredonthenextbusi-nessdayfollowingtheirreceipttotheRevenueFundandusedinthesamemannerandorderofpriorityasothermoneysondeposittherein.AllincomeandearningsreceivedfromtheinvestmentandreinvestmentofmoneysondepositintheInvestmentAccountshallremainondepositthereinuntilthemaximumamountrequiredtobeondepositinsaidInvestmentAccountisodeposittherein,thereaftersuchincomeandearningsshallbtransferredonthenextbusinessdayfollowingtheirreceipttotheInterestAccountandusedasprovidedinSection4E(2)ofthisArticleIII.AllincomeandearningsreceivedfromtheinvestmentandreinvestmentofmoneysondepositintheDebtServiceRe-serveAccountshallbetransferredonthenextbusinessdayfollowingtheirreceipttotheInterestAccountandusedinthesamemanneraswithmoneysondepositthereinasprovidedinSection4E(2)hereof.Forthepurposeofinvestingorreinvesting,theCommissionmaycomminglemoneysinthefundsandaccountscreatedandestablishedhereunderinordertoachievegreaterinvestmentincome;providedthattheCommissionshallseparatelyac-~countfortheamountssocommingled.9.IfonanypaymentdatetheRevenuesareinsufficienttoplacetherequiredamountinanyofthefundsoraccountsorforanyofthepurposesprovidedabove,thedeficiencyshallbemadeuponthesubsequentpaymentdates.F.SALEOFTHEWATERANDELECTRICSYSTEM.ThattheWaterandElectricSystemmaybesoldorotherwisedisposedofonlyasawholeorsubstantiallyasawhole,onlyifthenetproceedstoberealized,togetherwithothermoneysavailableforsuchpurpose,shallbesufficientfullytoretirealloftheBondsissuedpursuanttothisresolutionandallinterestthereontotheirrespectivedatesofmaturityorearlierrdemptiondates.TheproceedsfromsuchsaleorotherdispositionoftheWaterandElectricSystemshallimmediatelybedepositedintheSinkirigFundandshallbeusedonlyforthepurposeofpayingtheprincipalofandinterestontheBondsasthesameshallbecomedue,ortheredemptionofcallableBonds,orthepurchaseofBondsatapricenotgreaterthantheredemptionpriceofsaidBonds,or,iftheBondsarenotthenredeemablepriortomaturity,atpricesnotgreaterthantheredemptionpriceofsuchBondsonthenextensuingredemp-tiondate.Theforegoingprovisionnotwithstanding,theCommissionshallhaveandherebyreservestherighttosell,leaseorotherwisedisposeofanyofthetangiblepropertycomprisingapartoftheWaterandElectricSysteminthefollowingmanner,ifanyoneofthefollowingconditionsexist:(i)suchpropertyisnotnecessaryfortheoperationoftheWaterandElectricSystemor(ii)suchpropertyisnotusefulintheopera-tionoftheWaterandElectricSystemor(iii)suchpropertyisnotpro(itableintheoperationoftheWaterandElectricSys-tem.,Priortoanysuchsale,leaseorotherdispositionofsaidproperty;(i)iftheamounttobereceivedthereforisnotinexcessofone-hundredth(V100th)ofonepercentum(1%)ofthevalueofthegrossplantofthe.WaterandElectricSystematoriginalcost,thegeneralmanagerorotherauthorizedofficerinchargeoftheWaterandElectricSystemshallmakeafindinginwritingdeterminingthatsuchpropertycomprisingapartosuchWaterandElectricSystemiseithernolongernecessausefulorprofitableintheoperationthereof.

(ii)Iftheamounttobereceivedfromsuchsale,leaseorotherdispositionofsaidpropertyshallbeinexcessofone-tenth(I/10)ofonepercentum(1%)ofthevalueofthegrossplantoftheWaterandElectricSystematoriginalcost,thegeneralmanagerorotherdulyauthorizedofficerinchargeoftheWaterandElectricSystemandtheConsultingEngineer"shalleachfirstmakeafindinginwritingdeterminingthatsuchpropertycomprisingapartofsuchiVaterandElectricSystemiseithernolongernecessary,usefulorprofitableintheopera-tionthereof,andtheCommissionshall,byresolutiondulyadopted,approveandconcurinthefindingofthegeneralmanagerorotherdulyauthorizedofficerandtheConsultingEngineer.SuchproceedsshallbedepositedhitheRenewalandRe-placementFundtotheextentnecessarytomaketheamountondepositthereinequaltotheamountthenrequiredtobeondeposittherein;andanyadditionalmoneysnotneededforsaidRenewalandReplacementFundshallbeusedforanycapitalexpendituresinconnectionwiththe1VaterandElectricSys-temorthepurchaseorredemptionofoutstandingBonds.G.ISSUANCEOFOTHEROBLIGATIONSPAYABLEOUTOFREVENUES.ThattheCommissionwillnotissueanyotherobligations,exceptupontheconditionsandinthemannerprovidedherein,payablefromtheRevenues,norvol-untarilycreateorcausetobecreatedanydebt,lien,pledge,assignment,encumbranceoranyotherchargehavingprioritytoorbeingonaparitywiththelienoftheBondsissuedpursuanttothisresolutionandtheinterestthereon,uponanyoftheRevenues.AnyotherobligationsissuedbytheCommis-sioninadditiontotheBondsauthorizedbythisresolutionorparipassuadditionalBondsissuedundertheterms,restric-tionsandconditionscontainedinthisresolution,shallcontainanexpressstatementthatsuchobligationsarejunior,inferiorandsubordinateinallrespectstotheBondsissuedpursuanttothisresolutionastolienonandsourceandsecurityforpay-mentfromtheRevenuesandinallotherrespects.AnysuchsubordinateindebtednessshallalsobesubordinatetotheTransfersofFunds.H.ISSUANCEOFPARIPASSUADDITIONALBONDS.ThatnoparipassuadditionalBonds,asinthissub-sectiondefined,payableparipassuwithBondsissuedpur-suanttothisresolutionoutofRevenuesshallbeissuedaftertheissuanceofanyBondspursuanttothisresolutionexceptupontheconditionsandinthemannerhereinprovided.SuchparipassuadditionalBondsshallnotbesecuredbyorpayablefromthemoneysandinvestmentsondepositintheInvest-mentAccount.AnyDemandChargeComponentshallbedeemedtobeanoutstandingparipassuadditionalBondforpurposesofthisresolutioniftheconditionshereinaftersetfortharemet.TheCommissionmayissueparipassuadditionalBondsforthepurposeoffinancingthecostofconstructionofadditions,extensions,andimprovementstoorconstructionof,revenueproducingutilitieswithintheoperation,maintenanceandcon-trolorjurisdictionoftheCommission,eitheraloneorjointlywithotherpersons,publicbodiesorprivatebodies,orthecostofacquisitionofrevenueproducingutilitiestobe,whenac-quired,withintheoperation,maintenanceandcontrolorjurisdictionoftheCommission,eitheraloneorjointlywithotherpersons,publicbodiesorprivatebodiesorforthepur-poseofrefundingoutstandingBondsissuedpursuanttothisresolution.NosuchparipassuadditionalBondsshallbeissuedunlessthefollowing,amongotherconditions,arecompliedwith:(1)TheCommissionmustbecurrentinalldepositsintothevariousfundsandaccountsandallpaymentstheretoforerequiredtohavebeendepositedormadebyitundertheprovisionsofthisresolutionandhavecompliedwiththeconvenantsandprovisionsofthisresolutionaridanysup-plementalresolutionshereafteradoptedfortheissuanceofadditionalparipassuBonds.(2)TheamountoftheNetRevenuesduringtheim-mediateprecedingFiscalYearoranytwelve(12)consecu-tivemonths'selectedbytheCommissionofthefifteen(16)monthsimmediatelyprecedingtheissuanceofsaidparipassuadditionalBonds,adjustedashereinafterprovided,ascertifiedbytheConsultingEngiheer,willbeequaltoOne"HundredFitypercentum(150%)oftheMaximumAnnualDebtServiceon(1)theBondsoriginallyissuedpursuanttothisresolutionandthenoutstanding,(2)anyparipassuadditionalBondstheretoforeissuedandthenoutstanding,and(3)theparipassuadditionalBondsthenproposedtbbeissued.ForthepurposeofthisSection4Hthephrase"immediateprecedingFiscalYearorthetwelve(12)consecutivemonthsofthefifteen(15)monthsimmediatelyprecedingtheis-suanceofsaidparipassuadditionalBonds"shallbesome-timesreferredtoas"twelve(12)consecutivemonths".TheNetRevenuescalculatedpursuanttotheforegoingsubsection(2)maybeadjusted,attheoptionoftheCommis-sion,asfollows:(a)IftheCommission,priortotheissuanceoftheproposedparipassuadditionalBonds,shallhavein-crea'sedtherates,fees,rentalsorotherchargesfortheservicesofsaidWaterandElectricSystem,theNetRev-enuesforthetwelve(12)consecutivemonthsimmediatelyprecedingtheissuanceofsaidparipassuadditionalBonds,shallbeadjustedtoshowtheNetRevenueswhichwouldhavebeenderivedfromsaidWaterandElectricSysteminsuchtwelve(12)consecutivemonthsasifsuchincreasedrates,fees,rentalsorotherchargesfortheservicesofsaidWaterandElectricSystemhadbeenineffectduringallofsuchtwelve(12)consecutivemonths.(b)IftheCommissionshallhaveacquiredorhascon-tractedtoacquireanyprivatelyorpubliclyownedexist-ingwatersystemorelectricsystem,thecostofwhichshallbepaidfromallorpartoftheproceedsoftheis-suanceoftheproposedparipassuadditionalBonds,thentheNetRevenuesderivedfromtheWaterandElectricSystemduringthetwelve(12)consecutivemonths,im-mediatelyprecedingtheissuanceofsaidparipassuaddi-tionalBonds,shallbeincreasedbyaddingtotheNetRevenuesforsaidtwelve(12)consecutivemonthstheNetRevenueswhichwouldhavebeenderivedfromsaidexist-ingwatersystemorelectricsystemasifsuchexistingwatersysterr.orelectricsystemhadbeenapartoftheWaterandElectricSystemduringsuchtwelve(12)con-secutivemonths.Forthepurposesofthisparagraph,thenetrevenuesderivedfromsaidexistingwatersystemorelectricsystemduringsuchtwelve(12)consecutivemonthsshallbeadjustedtodeterminesuchnetrevenuesbydeductingthecostofoperationandmaintenanceofsaidexistingwatersystemorelectricsystemfromthegrossrevenuesofsaidexistingwatersystemorelectric,'nthemannerprovidedinthisresolutionforthedeterminationofNetRevenues.

(c)IftheCommission,inconnectionwiththeissuanceofparipassuadditionalBonds,shallenterintoacontract(withadurationnotlessthanthefinalmaturityofsuchparipassuadditionalBonds)withanypublicorprivateentitywherebytheCommissionagreestofurnishservicesinconnectionwithanywatersystemorelectricsystemthentheNetRevenuesoftheWaterandElectricSystemduringthetwelve(12)consecutivemonthsimmediatelyprecedingtheissuanceofsaidparipassuadditionalBondsshallbeincreasedbytheleastamountwhichsaidpublicorprivateentityshallguaranteetopayinanyoneyearforthefurnishingofsaidservicesbytheCommission,afterdeductingtherefromtheproportionofoperatingex-pensesandrepair,renewal'andreplacementcostat-tributableinsuchyeartosuchservices.SuchpaymentsshallbedeemedtoberevenuesderivedfromsaidWaterandElectricSystemandpledgedfortheBondsinthesamemannerasotherRevenuesderivedfromsaidWaterandElectricSystem.(d)IftheCommissionshallbeconstructingoracquir-ingadditions,extensionsorimprovementstotheWaterandElectricSystemfromtheproceedsofsuchparipassuadditionalBondsandshallhaveestablishedratesorchargestobechargedandcollectedfromusersofsuchfacilitieswhenserviceisrendered,suchNetRevenuesmaybeadjustedby(i)addingtheretoeightypercent(80%)oftheaverageannualnetrevenuesestimatedbytheConsultingEngineertobederivedduringthefirstthreeFiscalYearsofoperationaftercompletionoftheconstruc-tionoracquisitionofsaidadditions,extensionsandim-provementstotheWaterandElectricSystem,and(ii)dividingsuchtotalamountbytwo(2).Theterm"paripassuadditionalBonds"asusedinthisresolutionshallbedeemedtomeanadditionalobligationsevidencedbyBondsissuedundertheprovisionsandwithinthelimitationsofthissubsectionpayablefromtheRevenuesofsaidWaterandElectricSystemparipassuwithBondsoriginallyauthorizedandissuedpursuanttothisresolution.SuchBondsshallbedeemedtohavebeenissuedpursuanttothisresolutionthesameastheBondsoriginallyauthorizedandissuedpursuanttothisresolu-tionandallofthecovenantsandotherprovisionsofthisresolution(exceptastodetailsofsuchBondsevidencingsuchparipassuadditionalobligationsinconsistentthere-with),shallbefortheequalbenefit,protectionandsecur-ityoftheholdersofanyBondsoriginallyauthorizedandissuedpursuanttothisresolutionandholdersofanyBondsevidencingadditionalobligationssubsequentlyis-suedwithinthelimitationsofandincompliancewiththissubsection.AllofsuchBonds,regardlessofthetimeortimesoftheirissuanceshallrankequallywithrespecttotheirlienontheRevenuesoftheWaterandElectricSystem,andtheirsourcesandsecurityforpaymentthere-fromwithoutpreferenceofanyBonds,orcoupons,overanyother.Theterm"paripassuadditionalBonds"asusedinthisresolutionshallnotbedeemedtoincludebonds,notes,certificatesorotherobligationssubsequentlyissuedunderthetermsofthisresolution,thelienofwhichontheRevenuesoftheWaterandElectricSystemissubjecttothepriorandsuperiorlienontheRevenuesofBondsissuedpursuanttothisresolution,asprovidedinSection4.GofthisArticleIV,andtheCommissionshallnotissueanyobligationswhatsoeverpayablefromtheRevenuesoftheWaterandElectricSystem,whichrankequallyastolienandsourceandsecurityfortheirpaymentfromsuchRevenues,withBondsissuedpursuanttothisresolutionexceptinthemannerandundertheconditionsprovidedithissubsection.IntheeventthatthetotalamountofWaterandElectricRevenueRefundingandImprovementBonds,Series1978hereinauthorizedtobeissuedarenotissuedsimultane-ously,suchBondswhicharesubsequentlyissuedshallbesubjecttotherestrictions,conditionsandlimitationsofthisSection4HofthisArticleIII.I.INSURANCE.ThattheCommissionwillcarrysuchinsuranceasisrequiredbytheStateofFloridaorisordinarilycarriedbyprivateorpubliccorporationsowningandoperat-ingsimilarutilitiesastheWaterandElectricSystemwithareputableinsurancecarrierorcarriers,includingpublicliabil-ityinsuranceandsuchotherinsuranceagainstlossordamagebyfire,explosion,hurricane,cycloneorotherhazardsandrisks.J.BOOKSANDRECORDS.ThattheCommissionwillkeepbooksandrecordsoftheWaterandElectricSystem,whichshallbeseparateandapartfromallotherbooks,recordsandaccountsoftheCity,inwhichcompleteandcorrectentriesshallbemadeinaccordancewithgenerallyacceptedaccount-ingprinciplesofalltransactionsrelatingtotheWaterandElectricSystem,andanyholderofaBondorBondsissuedpursuanttothisresolution,shallhavetherightatallreasona-bletimestoinspectsaidWaterandElectricsystemandallpartsthereof,andallrecords,accountsanddataoftheCom-missionrelatingthereto.TheCommissionshallpromptlyafterthecloseofeachFiscaYearcausethebooks,recordsandaccountsoftheWaterandElectricSystemforsuchFiscalYeartobeproperlyauditedbyaqualified,recognizedandnationallyknownindependentfirmofcertifiedpublicaccountants,andshallfilethereportofsuchcertifiedpublicaccountantsintheofficeofthegeneralman-ageroftheCommission,whichreportshallcoverinreasonabledetailtheoperationoftheWaterandElectricSystemandshallmailuponrequest,andmakeavailablegenerally,saidreport,orareasonablesummarythereof,toanyholderorholdersofBondsissuedpursuanttothisresolution.K.OPERATINGBUDGET.ThattheCommissionshallannuallyprepareandadoptbyproperproceedingsofitsgov-erningbodyadetailedbudgetoftheestimatedexpendituresforoperationandmaintenanceoftheWaterandElectricSys-temandtheestimatedRevenuesoftheWaterandElectricSystemduringthesucceedingFiscalYear.DuringthatFiscalYeartheCommissionshallcausetobeprepared,eachmonth,adetailedreportinwhichactualexpendituresarecomputedwithbudgetamounts.TheCommissionshallreviewthesereports,examinevariances,andinstituteappropriatecorrec-tiveactioniftheydeterminesuchvariancesarecontrarytoprudentutilitymanagement.TheCommissionshallmailcopiesofsuchannualbudgetandallresolutionsauthorizingincreasedexpendituresforoperationandmaintenancetoanyholderorholdersofBondswhoshallfilehisaddresswiththeCommissionandrequestinwritingthatcopiesofallsuchbudgetsandresolutionsbefurnishedhimorthem,andshallmakeavailablesuchbudgetsandallresolutionsauthorizingincreasedexpendituresforoperationandmaintenanceoftheWaterandElectricSystematallreasonabletimestoanyholderorholdersofBondsissuedpursuanttothisresolution.

L.MAINTENANCEOFTHEWATERANDELEC-TRICSYSTEM.ThattheCommissionwillmaintainsaidWaterandElectricSystemingoodconditionandcontinuouslyoperatethesameinanefficientmannerandatareasonablecostasarevenueproducingenterprise.TheCommissionshallalso,priortotheendofeachFiscalYear,causetheWaterandElectricSystemtobeinspectedbytheConsultingEngineers,whoshallmakeawrittenreportofsuchinspectionandoftheconditionoftheWaterandElectricSystemoftheCommissionandfilesuchannualreportwiththeoriginalpurchasersoftheBondsandtheCommission,andtheCommissionshallmailuponrequest,andmakeavailablegen-erally,thereportofsaidConsultingEngineers,orareasona-blesummarythereof,toanyholderofBondsissuedpursuanttothisresolution.M.SERVICESRENDEREDBYTHECOMMISSION.ThattheCommissionwillnotrenderorcausetoberendered'nyfreeservicesofanynaturebyitsWaterandElectricSystemoranypartthereof,norwillanypreferentialratesbeestablishedforusersofthesameclass;andintheeventtheCity,oranyotherpoliticalsubdivision,publicbody,oranydepartment,agencyorinstrumentality,officeroremployeethereof,shallavailitselfofthefacilitiesorservicesprovidedbysaidWaterandElectricSystemoranypartthereof,thesamerates,feesorchargesapplicabletoothercustomersreceivinglikeservicesundersimilarcircumstancesshallbechargedtheCity,orsuchotherpoliticalsubdivision,publicbody,oranysuchdepartment,agency,instrumentality,of-ficeroremployee.Suchchargesshallbepaidastheyaccrue.TherevenuessoreceivedshallbedeemedtobeRevenuesderivedfromtheoperationoftheWaterandElectricSystem,andshallbedepositedandaccountedforinthesamemannerasotherRevenues.~ProvisionsofthissubsectionshallnotbedeemedinanywaytoapplytoanyreducedratesforanyclassificationofusersforservicesandfacilitiesoftheWaterandElectricSystemineffectonthedateoftheadoptionofthisresolutionandshallbesubjecttoanypresentorfutureapplicablelawsorregulations.N.REMEDIES.AnyholderofBondsorofthecouponsappertainingtheretoissuedundertheprovisionsofthisresol-utionoranytrusteeactingforsuchBondholdersinthemannerhereinafterprovided,mayeitheratlaworinequity,bysuit,action,mandamusorotherproceedingsinanycourtofcompe-tentjurisdiction,protectandenforceanyandallrightsunderthelawsoftheStateofFlorida,orgrantedandcontainedinthisresolution,andmayenforceandcompeltheperformanceofalldutiesrequiredbythisresolutionorbyanyapplicablestatutestobeperformedbytheCommissionorbyanyofficerthereof,includingthefixing,chargingandcollectingofrates,feesorotherchargesfortheservicesandfacilitiesoftheWaterandElectricSystem.Intheeventthatdefaultshallbemadeinthepaymentoftheinterestonortheprincipaloi'nyoftheBondsissuedpursuanttothisresolutionasthesameshallbecomedue,orinthemakingofthepaymentsintotheSinkingFund,includingtheaccountsthereinoranyotherpaymentsrequiredtobemadebythisresolution,orintheeventthattheCommissionoranyofficer,agentoremployeethereofshallfailorrefusetocomplywiththeprovisionsofthisresolutionorshalldefaultinanycovenantmadeherein,andinthefurthereventthatanysuchdefaultshallcontinueforaperiodofsixty(60)days,anyholderofsuchBonds,oranytrusteeappointedtorepresentBondhol-dersashereinafterprovided,shallbeentitledasofrighttotheappointmentofareceiveroi'heWaterandElectricSysteminanappropriatejudicialproceedinginacourtofcompetentjurisdiction,whetherornotsuchholderortrusteeisalsoseekingorshallhavesoughttoenforceanyotherrightorexerciseanyotherremedyinconnectionwithBondsissuedpursuanttothisresolution.Thereceiversoappointedshallforthwith,directlyorbyhisagentsandattorneys,enterintoanduponandtakepossessionoftheWaterandElectricSystem,andeachandeverypartthereof,andshallhold,operateandmaintain,manageandcontroltheWaterandElectricSystem,andeachandeverypartthereof,andinthenameoftheCommissionshallexercisealltherightsandpowersoftheCommissionwithrespecttotheWaterandElectricSystemastheCommissionitselfmightdo.SuchreceivershallcollectandreceiveallRevenuesandmain-tainandoperatetheWaterandElectricSysteminthemannerprovidedinthisresolutionandcomplyunderthejurisdictionofthecourtappointingsuchreceiver,withalloftheprovisionsofthisresolution.Whenever'allthatisdueuponBondsissuedpursuanttothisresolution,andinterestthereon,andunderanycovenantsofthisresolutionforreserve,sinkingfundsorotherfunds,anduponanyotherobligationsandinterestthereonhavingacharge,lienorencumbranceupontheRevenuesoftheWaterandElectricSystem,shallhavebeenpaidandmadegood,andalldefaultsundertheprovisionsofthisresolutionshallhavebeencuredandmadegood,possessionoftheWaterandElec-tricSystemshallbesurrenderedtotheCommissionupontheentryofanorderofthecourttothateffect.Uponany.sub-sequentdefault,anyholderofBondsissuedpursuanttothisresolution,oranytrusteeappointedforBondholdersashereinafterprovided,shallhavetherighttosecurethefurtherappointmentofareceiver.Suchreceivershallintheperformanceofthepowershereinaboveconferreduponhimbeunderthedirectionandsupervisionofthecourtmakingsuchappointment,shallatalltimesbesubjecttotheordersanddecreesofsuchcourtandmayberemovedtherebyandasuccessorreceiverappointedinthediscretionofsuchcourt.Nothinghereincontainedshalllimitorrestrictthejurisdictionofsuchcourttoentersuchotherandfurtherordersanddecreesassuchcourtmaydeemnecessaryorappropriatefor'theexercisebythereceiverofanyfunctionnotspecificallysetforthherein.AnyreceiverappointedasprovidedhereinshallholdandoperatetheWaterandElectricSysteminthenameoftheCommissionandforthejointprotectionandbenefitoftheCommissionandholdersofBondsissuedpursuanttothisre-solution.Suchreceivershallhavenopowertosell,assign,mortgageorotherwisedisposeofanyassetsofanykindorcharacterbelongingorpertainingtotheiVaterandElectricSystem,exceptasprovidedherein,buttheauthorityofsuchreceivershallbelimitedtothepossession,operationandmaintenanceoftheWaterandElectricSystemforthesolepurposeoftheprotectionofboththeCommissionandsaidBondholders.TheholderorholdersofBondsinanaggregateprincipalamountofnotlessthantwenty-fivepercentum(269')ofBondsissuedunderthisresolutionthenoutstandingmaybyadulyexecutedcertificateinwritingappointatrusteeforholdersofBondsissuedpursuanttothisresolutionwithauthoritytorepresentsuchBondholdersinanylegalproceedingsforthe enforcementandprotectionoftherightsofsuchBondholders.SuchcertificateshallbeexecutedbysuchBondholdersortheirdulyauthorizedattorneysorrepresentatives,andshallbefiledintheofficeoftheSecretaryoftheCommission.O.ENFORCEMENTOFCOLLECTIONS.ThattheCommissionwilldiligentlyenforceandcollectallfees,rentalsorotherchargesfortheservicesandfacilitiesoftheWaterandElectricSystem,andtakeallsteps,actionsandproceedingsfortheenforcementandcollectionofsuchfees,rentalsorotherchargeswhichshallbecomedelinquenttothefullextentpermittedorauthorizedbyapplicablelawsandregulations.TheCommissionspecificallycovenantsthatitwill,underreasonableregulationsadoptedbyit,discontinueandshutoffthesupplyingofwaterandelectricservicestoanyusersoftheWaterandElectricSystemwhoshallfailtopaythefees,rentalsorotherchargesforwaterandelectricserviceswithinaperiodofthirtydaysfromtheduedatethereof,totheextentpermittedbyapplicablelawsandregulations.P.NOCOMPETINGSYSTEM.ThatneithertheCom-missionnortheCitywillgrantanyfranchise,licenseorper-mit,orcauseorpermitthegrantingofanyfranchise,licenseorpermit,toanyfirm,corporation,agencyorbody,publicorprivate,oranypersonwhatsoever,forthesupplyingofwaterandelectricpowerwithinthecorporatelimitsoftheCityincompetitionwiththeWaterandElectricSystem,exceptasmaynowexist.CONSULTINGENGINEER.TheCommissionwillre-tainaConsultingEngineeronanannualbasistoinspecttheWaterandElectricSystemandmaketheannualreportcon-cerningthesamehereinbeforereferredto,andtoperformthedutiesprovidedforhereinforsuchConsultingEngineer.R.TRANSFEROFOUTSTANDINGOBLIGATIONS,FUNDSANDACCOUNTS.Allmoneysorinvestmentsondepositinthevariousfundsandaccountscreatedandestab-lishedbytheproceedingswhichauthorizedtheissuanceoftheOutstandingObligations,upontheissuanceanddeliveryoftheBondshereinauthorized,shallbedepositedinthefollow-ingmanner:T.DISCHARGEANDSATISFACTIONOFBONDS.Thecovenants,liensandpledgesenteredinto,createdorimposedpursuanttothisresolutionmaybefullydischargeandsatisfiedwithrespecttotheBondsinanyoneormoreotthefollowingways:(a)bypayingtheprincipalofandinterestonBondswhenthesameshallbecomedueandpayable;or(b)bydepositingintheInterestAccount,PrincipalAc-count,theInvestmentAccount,andtheBondRedemptionAccountandsuchotheraccountsastheCommissionmayhereafterdeterminetocreatebyresolutionmoneyssuffi-cientatthetimeofsuchdeposittopaytheBonds,allappur-tenantinterestcouponsandtheredemptionpremium,ifany,asthesamebecomedueonsaidBondsonorpriortotheredemptiondateormaturitydatethereof;or(c)bydepositingintheInterestAccount,thePrincipalAccount,theInvestmentAccount,andtheBondRedemp-tionAccount,andsuchotheraccountsastheCommissionmayhereafterdeterminetocreatebyresolutionmoneyswhichwheninvestedindirectobligationsoftheUnitedStatesofAmericaorobligationsfullyguaranteedbytheUnitedStatesofAmericaorintimedepositsinbankortrustcompaniesfullysecuredbydirectobligationsoftheUnitedStatesofAmericaorobligationsthatwerefullyguaranteedbytheUnitedStatesofAmerica,willprovidemoneyswhichshallbesufficienttopaytheBonds,allappurtenantinterestcouponsandtheredemptionpremium,ifany,asthesameshallbecomedueonsaidBondsonorpriortotheirredemp-tiondateormaturitydatethereof.IntheeventtheBondsarenotbytheirtermssubjecttredemptionwithinthenextsucceeding60days,theCommis-sionshallpublishanoticeinafinancialpublicationofgeneralcirculationinNewYorkCitytotheholdersoftheBondsthatthedepositrequiredby(b)or(c)abovehasbeenmadeandthattheBondsaredeemedtohavebeenpaidinaccordancewiththissubsectionandstatingsuchmaturityorredemptiondateuponwhichmoneysaretobeavailableforthepaymentoftheprincipal,interestandredemptionpremium,ifany,ontheBonds.(i)amountsondepositinthesinkingfund,exceptforthereserveaccountthereinshallbedepositedintotheInvest-mentAccount;(ii)amountsondepositintherevenuefundshallbede-positedintotheRevenueFund;(iii)amountsondepositintherenewalandreplacementfundsshallbedepositedintotheRenewalandReplacementFund;(iv)amountsondepositinthereserveaccountsshallbedepositedintheDebtServiceReserveAccount.S.SIMULTANEOUSDELIVERY.ThattheBondsau-thorizedtobeissuedbythisresolutionmaybeissuedsimul-taneouslyorfromtimetotimeastheCommissionmaydeter-mine,provided,however,thatanamountofBondsshallbeissuedsimultaneouslywiththeSpecialObligationBonds,astoprovideasufficientamountofbondproceedstorefundtheOutstandingObligationsinthemannerprovidedinthisresol-ution,shallbeissuedanddeliveredsimultaneouslyatsuchtimeandplaceasshallbedeterminedbytheCommission.Uponsuchpaymentordepositintheamountsandmannerprovidedinthissubsection,theBondsshallnolongerbedeemedtobeoutstandingforthepurposesofthisresolutionandallliabilityoftheCommissionwithrespecttotheBondsshallcease,determineandbecompletelydischargedandex-"tinguished,andtheholdersthereofshallbeentitledforpay-mentsolelyoutofthemoneysorsecuritiessodeposited.ARTICLEIVMISCELLANEOUSPROVISIONSSECTIONLMODIFICATIONORAMENDMENT.Nomaterialmodificationoramendmentofthisresolutionorofanyresolutionamendatorythereoforsupplementalthereto,maybemadewithouttheconsentinwritingoftheholdersoftwo-thirdsormoreinprincipalamountoftheBondsthenoutstanding;provided,however,thatnomodificationoramendmentshallpermitachangeinthematurityofsuchBondsorareductionintherateofinterestthereon,oraffectheunconditionalpromiseoftheCommissiontofix,maintainandcollectfees,rentalsandotherchargesfortheWaterandElectricSystemortopaytheinterestofandprincipalonthe Bonds,asthesamematureorbecomedue,fromtheRevenuesoftheWaterandElectricSystem,orreducesuchpercentageofholdersofsuchBondsrequiredaboveforsuchmodificationoramendments,withouttheconsentoftheholdersofalltheBonds.SECTION2.SEVERABILITYOFINVALIDPROVI-SIONS.Ifanyoneormoreofthecovenants,agreementsorprovisionsofthisresolutionshouldbeheldcontrarytoanyexpressprovisionoflaworcontrarytothepolicyofexpresslaw,thoughnotexpresslyprohibited,oragainstpublicpolicy,orshallforanyreasonwhatsoeverbeheldinvalid,thensuchcovenants,agreementsorprovisionsshallbenullandvoidandshallbedeemedseparatefromtheremainingcovenants,agreementsorprovisions,andshallinnowayaffectthevalid-ityofanyoftheotherprovisionsofthisresolutionoroftheBondsorcouponsissuedhereunder.SECTION3.VALIDATIONAUTHORIZED.ThatGur-ney,GurneyEcHandley,P.A.isherebyauthorizedanddi-rectedtoprepareandinstituteproceedingsintheCircuitCourtoftheNinthJudicialCircuitofFloridainandforOrangeCounty,tovalidateandconfirmtheissuanceoftheBondsauthorizedbytheresolutionandallproceedingsandactionstakenrelatingth'ereto.SECTION4.SALEOFBONDS.TheBondsshallbeis-~"suedandsoldatonetimeoifromtimetotimeandatsuchpriceorpricesconsistentwiththeprovisionsoftheActandtherequirementsofthisresolutionastheCommissionshallhereafterdeterminebyresolution.TheBondsshallbesoldanddeliveredonlyifasufficientprincipalamountoftheSpecialObligationBondsaresoldanddeliveredatthesametimetoeffectthecompleterefundingprogramdescribedinSection2ofArticleIofthisresolution.SECTION5.EFFECTIVEDATE.Thisresolutionshalltakeeffectuponitspassageinthemannerprovidedbylaw.TheCommissiondidonJuly24,1979,amendSection4.F.oftheforegoingresolutionbyaddingtheretosubsection(ii)inthefollowingmanner:ARESOLUTIONAMENDING"ARESOLUTIONAU-~THORIZINGTHEISSUANCEOFNOTEXCEEDING$250,000,000WATER,ANDELECTRICREVENUERE-FUNDINGANDIMPROVEMENTBONDS,SERIES1978,OFTHEORLANDOUTILITIESCOMMISSION,TOFI-NANCEPARTOFTHECOSTOFTHECONSTRUCTIONOFADDITIONS,EXTENSIONSANDIMPROVEMENTSTOTHEWATERANDELECTRICSYSTEM,ANDTHEREFUNDINGOFCERTAINOUTSTANDINGOBLIGA-TIONSHERETOFOREISSUEDBYTHEORLANDOUTIL-ITIESCOMMISSIONANDPROVIDINGFORTHETERMSOFSAIDWATERANDELECTRICREVENUEREFUN-DINGANDIMPROVEMENTBONDS,SERIES1978,ANDTHERIGHTS,SECURITYANDREMEDIESOFTHE.HOLDERSTHEREOF,"ASAMENDED.WHEREAS,the'CommissionhasdulyadoptedaresolutionauthorizingtheissuanceofWaterandElectricRevenueRefundingandImprovementBonds,Series1978,onApril18,1978,asamendedMay15,1978andherebydeterminestoamendsaidresolutiontoclarifyacertainambiguity;NOW,THEREFORE,BEITRESOLVEDBYTHEOR-LANDOUTILITIESCOMMISSION:SECTION1.ThatSection4FofArticleIIIbeamendedtoreadinfullasfollows:F.SALEOFTHEWATERANDELECTRICSYSTEM.ThattheWaterandElectricSystemmaybesoldorotherwisedisposedofonlyasawholeorsubstantiallyasawhole,onlyifthenetproceedstoberealized,togetherwithothermoneysavailableforsuchpurpose,shallbesufficientfullytoretirealloftheBondsissuedpursuanttothisresolutionandallinterestthereontotheirrespectivedatesofmaturityorearlierredemptiondates.TheproceedsfromsuchsaleorotherdispositionoftheWaterandElectricSystemshaHimmediatelybedepositedintheSinkingFundandshallbeusedonlyforthepurposeofpayingtheprincipalofandinterestontheBondsasthesameshallbecomedue,ortheredemptionofcallableBonds,orthepurchaseofBondsatapricenotgreaterthantheredemptionpriceofsaidBonds,or,iftheBondsarenotthenredeemablepriortomat'urity,atpricesnotgreaterthantheredemptionpriceofsuchBondsonthenextensuingredemptiondate.Theforegoingprovisionnotwithstanding,theCommissionshallhaveandherebyreservestherighttosell,'leaseorotherwisedisposeofanyofthetangiblepropertycomprisingapartoftheWaterandElectricSysteminthefollowingmanner,ifanyoneofthefollowingconditionsexist:(i)suchpropertyisnotnecessaryfortheoperationoftheWaterandElectricSystemor(ii)suchpropertyisnotusefulintheoperationoftheWaterandElectricSystemor(iii)suchpropertyisnotprofitableintheoperationoftheWaterandElectricSystem.Priortoanysuchsale,leaseorotherdispositionofsaidproperty:(i)iftheamounttobereceivedthereforisnotinexcessofone-hundredth(1/100th)ofonepercentum(1%)ofthevalueofthegrossplantoftheWaterandElectricSystematoriginalcost,thegeneralmanagerorotherauthorizedofficerinchargeoftheWaterandElectricSystemshallmakeafindinginwritingdeterminingthatsuchpropertycomprisingapartofsuchWaterandElectricSystemiseithernolongernecessary,usefulorprofitableintheoperationthereof.(ii)Iftheamounttobereceivedthereforisinexcessofone-hundredth(1/100th)ofonepercentum(1%)ofthevalueofthegrossplantoftheWaterandElectricSystematoriginalcostbutnotinexcessofone-tenth(1/10)ofonepercentum(1%)ofthevalueofthegrossplantoftheWaterandElectricSystematoriginalcost,thegeneralmanagerorotherauthorizedofficerinchargeofthe-WaterandElectricSystemshallfirstmakeafindinginwritingdeterminingthatsuchpropertycomprisingapartofsuchWaterandElectricSystemiseithernolongernecessary,usefulorprofitableintheoperationthereof,andtheCommissionshall,byresolutiondulyadopted,approveandconcurinthefindingofthegeneralmanagerorotherdulyauthorizedofficer.(iii)iftheamounttobereceivedfromsuchsale,leaseorotherdispositionofsaidpropertyshallbeinexcessofone-tenth(1/10)ofonepercentum(1%)ofthevalueofthegrossplantoftheWaterandElectricSystematoriginalcost,thegeneralmanagerorotherdulyauthorizedofficerinchargeoftheWaterandElectricSystemandtheConsultingEngineershalleachfirstmakeafindinginwritingdeterminingthatsuchpropertycomprisingapartofsuchWaterandElectricSystemiseithernolongernecessary,usefulorprofitableintheoperationthereof,E-1V andtheCommissionshall,byresolutiondulyadopted,approveandconcurinthefindingofthegeneralmanagerorotherdulyauthorizedoftlcerandtheConsultingEngineer.SuchproceedsshallbedepositedintheRenewalandReplacementFundtotheextentnecessarytomaketheamountondepositthereinequaltotheamountthenrequiredtobeondeposittherein;andanyadditionalmoneysnotneededforsaidRenewalandReplacementFundshallbeusedforanycapitalexpendituresinconnectionwiththeIVaterandElectricSystemorthepurchaseorredemptionofoutstandingBonds.SECTION2.Thisresolutionshalltakeeffectuponitspassageinthemannerprovidedbylaw.

APPENDIXF[FORMOFBONDCOUNSEL'SOPINION]LETTERHEADOFMUDGEROSEGUTHRIE4ALEXANDERAugust7,1979ORLANDOUTILITIESCOMMISSION,Orlando,FloridaSirs:WehaveexaminedcertifiedcopiesoftheproceedingsofyourCommission,theCityCounciloftheCityofOrlando,thevalidationproceedingsintheCircuitCourtoftheNinthJudicialCircuitofFlorida,inandforOrangeCounty,andotherproofssubmittedtousrelativetotheissuanceandsaleof$40,000,000ORLANDOUTILITIESCOMMISSIONWATERANDELECTRICREVENUEREFUNDINGANDIMPROVEMENTBONDS,SERIES1978ADatedApril1,1979Numbered1to8,000,inclusive,$5,000eachBearinginterestonApril1andOctober1,commencingOctober1,1979attheratesperannumandmaturingseriallyinnumericalorderonApril1ofeachyear,intheyearsandamountsasfollows:Year1993.....1994.....1995.....1996.....1997.....1998.....1999.....2000.....Amount$2,025,0001,620,0001,725,0001,830,0001,945,0002,065,0002,195,0002,335,000InterestRatePerAnnum5.60%5.655.705.755.805.906.006.00Year2001.....2002.....2003.....2004.....2005.....2006.....2007.....2008.....Amount$2,480,0002,635,0002,800,0002,875,0003,060,0003,255,0003,465,0003,690,000InterestRatePerAnnum6.00%6.106.106.20'.256.306.30640Beingpartofatotalauthorizedissueof$225,330,000ofwhich$110,330,000havebeenpreviouslyissuedandarenowoutstandingandunpaid.PrincipalandinterestpayableatTheChaseManhattanBank,N.A.,NewYork,NewYork.The1978AImprovementBondsshallbesubjecttoredemptionpriortomaturityattheoptionoftheCommissiononorafterAprilI,1989inwholeatanytimeorinpartfromtimetotimeonanyinterestpaymentdateintheinverseorderoftheirmaturities(bylotwithinamaturityiflessthanafullmaturity)atparandaccruedinterestplusNthof1%foreachyearorfractionthereofbetweentheredemptiondateandthestateddateofmaturity;suchpremium,however,shallnotexceedtwopercentum(2%).F-1 Noticeofsuchredemption(i)shallbepublishedatleastthirty(30)dayspriortotheredemptiondateinafinancialjournalofgeneralcirculationinNewYork,NewYorkandinanewspaperofgeneralcirculationintheCityofOrlando,Florida;(ii)shallbefiledwiththePayingAgent;and(iii)shallbemailed,postageprepaidtoallregisteredownersofthe1978AImprovementBondstoberedeemedattheiraddressesastheyappearontheregistrationbooks.Wehavealsoexaminedoneofsaid1978AImprovementBondsasexecuted(1978AImprovementBondNo.1).Weareoftheopinionthatsuchproceedingsandproofsshowlawfulauthorityfortheissuanceandsaleofsaid1978AImprovementBondspursuanttotheConstitutionandStatutesoftheStateofFloridaandpursuanttoaresolutionentitled:"ARESOLUTIONAUTHORIZINGTHEISSUANCEOFNOTEXCEEDING$250,000,000WATERANDELECTRICREVENUEREFUNDINGANDIMPROVE-MENTBONDS,SERIES1978,OFTHEORLANDOUTILITIESCOMMISSIONTOFINANCEPARTOFTHECOSTOFCONSTRUCTIONOFADDITIONS,EXTENSIONSANDIMPROVEMENTSTOTHEWATERANDELECTRICSYSTEM,ANDTHEREFUNDINGOFCERTAINOUTSTANDINGOBLIGATIONSHERETOFOREISSUEDBYTHEORLANDOUTILITIESCOMMISSION;ANDPROVIDINGFORTHETERMSOFSAIDWATERANDELECTRICREVENUEREFUNDINGANDIMPROVEMENTBONDS,SERIES1978,ANDTHERIGHTS,SECURITYANDREMEDIESOFTHEHOLDERSTHEREOF,"dulyadoptedbytheOrlandoUtilitiesCommissiononApril18,1978,asamendedandsupplemented(hereinaftercollectivelyreferredtoas"Resolution")andthatsaidBondsarevalidandlegallybindingobligationsoftheOrlandoUtilitiesCommission,payablesolelyastobothprincipalandinterestfromthenetrevenuesderivedfromtheoperationoftheWaterandElectricSystemunderthecontrol,managementandjurisdictionofsaidOrlandoUtilitiesCommissionandcertaininvestmentincome,allasprovidedinsaidResolution.'earefurtheroftheopinionthatthelienoftheholdersofthe1978AImprovementBondsonthenetrevenuesderivedfromtheoperationoftheWaterandElectricSystemandcertaininvestmentincomeisonaparityandranksequallywiththelienthereonoftheoutstandingWaterandElectricRevenueRefundingandImprovementBonds,Series1978,heretoforeissuedbytheOrlandoUtilitiesCommission,except,however,thattheprincipaloftheoutstandingWaterandElectricRevenueRefundingandImprovementBonds,Series1978,maturingonApril1,2008,isadditionallysecuredbyandpayablefrommoniesandinvestmentsondepositintheinvestmentaccount'establishedbytheResolution,allasprovidedintheResolution.WearefurtheroftheopinionthattheOrlandoUtilitiesCommissionhasvalidlycovenantedandislegallyobligatedtofix,establishandmaintainfees,rentalsorotherchargesfortheservicesandfacilitiesoftheWaterandElectricSystem,andtorevisethesamefromtimetotimewhenevernecessary,aswillalwaysprovideineachyearnetrevenuesadequateatalltimestopayatleastonehundredtwenty-fivepercentum(125%)oftheannualdebtservicerequirementsfortheoutstandingWaterandElectricRevenueRefundingandImprovementBonds,Series1978,the1978AImprovementBondsandanyparipassuadditionalbondsandthatsuchnetrevenuesshallbesufiicienttomakeallotherpaymentsrequiredbythetermsoftheResolution;andthatsuchfees,rentalsandotherchargesshallnotbereducedsoastobeinsufiicienttoprovideadequaterevenuesforsuchpurposes,andhasfurthercovenantedtocreateandmaintaincertainreservefundsandrenewalandreplacementfunds,alltotheextentandinthemannermoreparticularlydescribedintheResolution.Wearefurtheroftheopinionthatundertheterms,restrictionsandconditionscontainedintheResolution,theOrlandoUtilitiesCommissionmayhereafterissueparipassuadditionalbondswhichwillrankequallyastolienonandsourcesandsecurityforpaymentfromthenetrevenuesderivedfromtheWaterandElectricSystemwiththelienthereonoftheholdersofthe1978AImprovementBondsandtheoutstandingWaterandElectricRevenueRefundingandImprovementBonds,Series1978,heretoforeissuedbytheOrlandoUtilitiesCommission,except,however,thatsuchparipassuadditionalbondsshallnotbesecuredbyorpayablefromthemoniesandinvestmentsondepositintheinvestmentaccountF-2 establishedbytheResolution,allasprovidedintheResolution,andthatexceptforsuchparipassuadditionalbondsanyotherobligationshereafterissuedbytheOrlandoUtilitiesCommissionpayablefromthenetrevenuesdeiivedfromtheWaterand.ElectricSystemwillbejunior,inferiorandsubordinateastothelienonandsourceandsecurityforpaymentfromthenetrevenuesandinallotherrespectstotheBondsandtheoutstandingWaterandElectricRevenueRefundingandImprovementBonds,Series1978,heretoforeissuedbytheOrlandoUtilitiesCommission,andanyparipassuaddiuonalbondsthereafterissuedpursuanttosaidResoluti'on.TheOrlandoUtilitiesCommissionhasenteredintocertainothercovenantsandagreementswiththeholdersoftheBondsforthetermsofwhichreferenceismadetotheResolution.Wearefurtheroftheopinionthattheinterestonthe1978AImprovementBondsisexemptfromallFederalincometaxationunderexistinglawsandfromtaxationunderthelawsoftheStateofFlorida,exceptastoestatetaxesandtaxesimposedbyChapter220,FloridaStatutes,oninterestincomeorprofitsondebtobligationsownedbycorporation's,banksandsavingsassociations.Respectfullyyours,MUDGEROSEGUTHRIE&ALEXANDERF-3 APPENDIXGPARTICIPATIONAGREEMENTPARTICIPATIONAGREEMENTBETWEENCITYOFLAKELANDORLANDOUTILITIESCOMMISSIONFORTHEJOINTOWNERSHIPOFMcINTOSHUNITTHREEGENERATIONPROJECT PARTICIPATIONAGREEMENTThisAGREEMENT,datedApril4,1978isbetweentheCityofLakeland,Florida,hereinafterreferredtoas"Lake)and"andOrlandoUtilitiesCommission,hereinafterreferredtoas"OUC".WHEREAS,LakelandIsamunicipalcorporat(onowning,operatingandmaintainingelectricgeneration,transmissionanddistributionsystemsinordertomeettherequirementsofitscustomers;andWHEREAS,OUCisanentity,createdbythelegislature,operatingandmaintainingelectricgeneration,transmissionanddistributionsystemsinordertomeettherequirementsofitscustomers;andWHEREAS,inordertomeetthefuturepowerneedsoftheircustomers,toreducetherequirementsforimportedfueloil,torea(izesavingsincapitalandoperatingcosts,througheconomiesofscale,bytheinstallationofa(argerandmoreefficientandeconomicalsteamelectricgeneratingunitthanwouldbeundertakenbythepartiesinseparatelyownedandoperatedplants,LakelandandOUCdesiretoparticipatewitheachotherastenantsincommonwithanundividedownershipinterestinMcIntoshUnitNo.3,acoalfueledsteam-electricpowerplant,hereinafterreferredtoasthe"Project";andWHEREAS,thePartiesdesiretoestabliishthetermsandconditionsrelatingtotheirownership,astenantsincommon,andtheplanning,financing,acquisition,construction,operationandmaintenanceoftheProject;NOW,THEREFORE,forandinconsiderationofthemutualcovenantsbythemtobekeptandperformed,allashereinaftersetforth,LakelandandOUCheretomutuallyagreeasfollows:SECTION1.DEFINITIONS1.01Thefollowingterms,whenusedhereinshallhavethefollowingmeanings,unlessthecontextotherwiseindicates:1.02CAPITALIMPROVEMENTS:AnyunitsofpropertywhichareaddedtotheProject,thebettermentofanyunitsofpropertyconstitutingapartoftheProject,andthereplacementofanyunitsofpropertywithotherunitsofpropertyintheProject.1.03COMMERCIALOPERATION:Theconditionofoperationinwhichthecompletesteamwlectricgeneratingunitwithallsubsystemsandsupportingequipmentisavailableforcontinuousoperationatvariableloadsuptoandincludingratedcapacitywithoutabnormaloperatinglimitations.1.04COMMONUSEFACILITIES:Allimprovements,facilitiesandstructureslocatedonthePlantSitewhicharenecessaryorrequiredforlicensing,construction,startup,operation,maintenance,control,supply,orshutdownoftheProject;whicharerequiredandusedforoperation,maintenance,controLandsupplyofMcIntoshUnits1and2;andarenotincludedintheCostsofConstructionoftheProject.ThesefacilitiesaremoreparticularlydescribedinExhibit1attachedheretoandmayberevisedfromtimetotimepursuanttothetermshereof.1.06CONSTRUCTION:Designing,engineering,licensing,permitting,purchasing,acquiring,installing,startingup,test(ngtheProjecttomakeitreadyforcommerc(aloperation.1.06COSTSOFOPERATION:AllcostsassociatedwithOperatingWork.Thesecostsshallinciudeproductionexpenses(includingjointfuelpayments)andproductionsupervision;insuranceandHabilitypayments;employeebenefits(includingpayrolltaxes);allocationsofallexpensesc)assifiedasAdministrativeandGeneral(AandG)expensesassociatedwithoperationoftheProject;repairs,renewalsandreplacementsnecessarytoassuredesigncapabilitylallinkeepingwithPrudentUtilityPractice.Creditsrelatingtosuchcosts,includinginsuranceproceeds,shallbeappliedtoCostsofOperationwhenreceived.1.07EXTERNALFACILITIES:Allimprovements,facilities,andstructuresnecessaryforconstruction,operationmaintenance,control,supply,orshutdownoftheProject,butwhicharenotwithintheProjectsite.Thesefacfl(tiesaremoreparticularlydescribedinExhibit2attachedheretoandmayberevisedfromtimetotimepursuanttothetermshereto.1.08FCG:FloridaElectricPowerCoordinatingGroup.1.09FERC:FederalEnergyRegulatoryCommission(FERC),formerlyFederalPowerCommission.1.10FUEICoal,oil,ofladd(tives,solidrefuse,andanyothercombustiblesusedinthefiringandstartupofthesteamgenerator.1.11MINIMUMCAPABILITY:Theminimumgenera-tionatwhichthegeneratingunitmaybeoperatedasdeter.minedbyLake)and,butnotlessthantheminimumgenera.tionpermittedbythemanufacturer'srecommendations.1.12NETCAPACITYOUTOFTHEPROJECT:Theinstantaneouspowerflowoutofthehighsideofthemainstep-uptransformerminustheinstantaneouspowerfiowtothestationservicebusforemergencyandstartupservice,adjustedforthereservetransformerlosses.1.13NETENERGYOUTOFTHEPROJECT:TheenergymeasuredatthehighsideoftheProjectmainstepuptransformerminustheenergydeliveredto,theProjectstationservicebusforstartupandemergencyservice,adjustedforthereservetransformerlosses.1.14OPERATIONOROPERATINGWORK:Engineering,contractpreparation,construction,purchasing,repair,supervision,recruitment,training,operation,expediting,inspection,accounting,testing,protection,equipmentretirement,reconstruction,maintenanceandotheractivitiesassociatedwithoperatingtheProject.1.16OUTPUT:ThenetcapacityandnetenergyfromtheProject.116OWNERSHIPSHARE:OfapartyisthefractionalsharespecifiedinSection2hereof.1.17PLANTSITE:ThelandonwhichtheProjectislocated,asdescribedinExhibit3attachedhereto.1.18PRIMERATE:TheminimumcommerciallendingrateexistingfromtimetotimeforborrowersofthehighestcreditstandingatMorganGuarantyTrustCompanyofNewYork,orsuchsuccessorasmaybeselectedbytheProjectCommittee.G-2 1.19PROJECT:Projectmeans(a)thecoal.fueled364megawattgeneratingunit,McIntoshUnitNo.3;(b)Project230KVSwitchyard;(c)necessaryrealproperty;(d)alllicenses,permits.rightsandapprovalsnecessaryorconvenientforconstruction,operation,maintenanceandretirementoftheProject;(e)roads,railroadspurs,docks,parkinglots,fencingandsimilarfacilities;(f)Lakeland'senergymanagementsystemadditionsassignabletotheProject;(g)sewageeffiuentpipelineandhandlingfacilitiesand(h)allthingsacquiredbythePartiesforuseinconstruction,operation,maintenanceandrepairoftheProject;allwaterrightsaspermittedforuseintheProject,butexc)udingthetransmissionlinetobeconstructedbyOUC,referredtohereinafterinSection2.14.AdescriptionoftheProject,Exhibit4,astatementoftheestimatedcost.Exhibit5,andalistofmajorProjectfacilities,Exhibit6areattachedandmadeaparthereof.1.20PROJECT230KVSWITCHYARD:LineandswitchingfacilitiesconnectingMcIntoshUnit3totheProject230KVSwitchyard;lineandswitchingfaciHtiesforconnectingthereservetransformer;230KVbuses,insu)store,structuresandfoundations;bustieswitchingfacilities;230KVbuspotentialandcurrenttransformers,relaysandinetersandcontroldevicesforthesebusfacilitiesinstalledandmadeoperationalwiththeProjectandswitchingfacilitiesandotherequipmentrequiredforinterconnectingLakelandandOUCrespectivetransmissionsystems.1.21PRUDENTUTILITYPRACTICE:Shallmeantheexerciseofreasonablejudgmentinlight,ofthefactsknownatthetimeadecision(smade,andshallrequiretheuseofpractices,methodsandexpertisecommonlyemployedintheelectricutilityindustry,forthepurposeofaccomplishingdesiredresultsatthelowestreasonablecostconsistentwiththesafe,efficientandreliaÃeoperationofanelectricutility.PrudentUtilityPracticeincludesdueregardformanufacturer'swarrantiesandshallapplynotonlytofunctionalpartsoftheProject,butalsotoappropriatestructures,landscaping,painting,signs,lighting,otherfacilitiesandpublicrelationsprogramsreasonablydesignedtopromotepublicunderstandingandacceptanceoftheProject.PrudentUtilityPracticeisnot,intendedtobelimitedtoanoptimumpractice,methodoracttotheexclusionofallothers,butrathershallapplytoabalanceofthecompletespectrumofelectricutilitypractices,methodsoracts.1.22UNIFORMSYSTEMOFACCOUNTS:TheFERCUniformSystemofAccountsprescribedforClassAPublicUtilitiesandLicensesineffectonJanuary1,1970,asthesamemaybeamendedfromtimetotime.SECTION2.OWNERSHIP,RIGHTSANDOBLI.GATIONS2.01ThePartiesshallhavetitletotheProjectexcludingCommonUseFacilitiesandExternalFacilitiesastenantsincommonwithanundividedinterestthereinandshalLsubjecttothetermsofthisAgreement,owntheProject,havetherelatedrightsandobligations,includingpaymenttherefor,andbeentitledtotheOutputasfollows:PartyOwnershipShareLakeland60%%uoOUC40%TitletoOUCwillbeinthenamesofOrlandoUtiTitiesCommission,astatutorycommissionunderthelawsoftheStateofFloridaandtheCityofOr)ando,amunicipalcorporation.2.02SubjecttoParagraph2.09,thePartiesshapromptlyandwithallduediligence,actingjointlyoindividuallyasmaybeappropriate,takeallnecessaryactionsandseekallregulatoryapprovals,licensesandpermitsnecessarytocarryouttheirobligationsunderthisAgreement,andalllicenses,permits,approvals,contracts,obligationsandcominitmentsobtained,madeandenteredintoorincurredbyLakelandpriortotheeffectivedateofthisAgreementinconnectionwiththeacquisitionandconstructionoftheProjectareherebyratifiedandapprovedbyOUC.Alistof)icenses,permits,approvals,contracts,obligationsandcommitmentsandtheamountsexpendedandcommittedtherefor,priortotheeffectivedateofthisAgreementisattachedheretoasExhibit7andinadeaparthereof.2.03Lakelandshallwithinareasonabletimeanduponreceiptofanyrequiredregulatoryapprovalsandfromtimetotime,executeanddeliverdeeds,biHsofsaleandsuchotherdocumentsasmaybenecessaryinadditiontothisAgreementtovestownershipinthePartiesassetforthinParagraph2.01above.2.04Theduties,obligationsandliabilitiesofthePartiesareintendedtobeseveralandnotjointorcollective,andneitherPartyshallbejointlyorseverallyliablefortheacts,omissionsorobligationsoftheotherParty,exceptthatOUCshallbeseverallyliable,inproportiontoitsOwnershipShareoftheProject,fortheacts,omissions,orobligationsheretoforeorhereafterperformed,omittedorincurredbyLakelandinconnectionwiththeProject.2.05Lakelandshallhavetheright.subjecttoreviebyOUC,toenterintocontracts,agreementsand'anyothecommitmentsfortheexpenditureoffundstowardtheConstructionandOperationoftheProject.LakelandshallhavetherighttobindandobligateitselfandOUC,asOUC'sagent,eachinproportiontoitsOwnershipShare,forthecostsincurredbythesaidcontracts,agreementsandothercommitments.ThePartiesherebycovenantandagreetobeartheirrespectiveobligationsrelativetoallofthesaidcommitmentsandtopaythesaidcostsastheybecomedue.2.06EachcontractenteredintobyLakelandin1978shallbecence)lablebyLakelandifthisAgreementisitselfcancelledpursuanttoSection2.17hereinafter.2.07NeitherPartyshallhavetherightorpowertobindtheotherPartywithoutitswrittenconsent.exceptasexpresslyprovidedinthisAgreeinent.EachPartyshallseverallybearitsOwnershipShareofallobligations,includingthesupplyofenergyforstationusewhennotgeneratedbytheProject,andshallseverallybearitsOwnershipShareofliabilitiesrelatingtotheProjectastheyarise.2.08OUCshallhavetherighttogouponandintotheProjectatanythnesubjecttoinsuranceandindustrialsecurityrequirementsandthenecessityofefficientandsafeConstructionandOperationoftheProject.2.09InordertoprovideunifiedmanagementoftheProject,OUCauthorizesanddesignatesLakeland,andLakelandagreestosoact,asitsagenttoConstructandOperatetheProjectunderthetermsofthisAgreementanthePartiesagreethatLakelandshallhavesolepossessioandcontroloftheProjectforthePartiessubjecttotheprovisionsofParagraph2.08,andshallhavesoleauthorityfortheConstruction,OperationandretirementoftheG-3 ProjectinaccordancewithPrudentUtHityPractice.ThePartiesagreethatsuchrelationshipshallnotbechangedexceptbythewrittenconsentofbothParties.2.10IntheConstruction,Operation,andretirementoftheProject,eachPartyshallactwithoutcompensationotherthanpaymentorrehnbursementofcostsandexpensesasprovidedherein.2.11EachPartyreleasestheotherParty,itsagentsandemployeesfromanyconsequentiallossordamagearisingoutoftheConstruction,OperationorretirementoftheProjectforanyreason,includingnegligence,exceptfordamageresultingfrombreachofthisAgreementorforwillfulorwantonmisconduct.Lakeland,actingforandonbehalfofOUCanditself.shalltaketimelyandappropriatelegalactiontorecoverlossesfromdamagesresultingfrombreachofanyothercontractrelatingtotheProject,andshaHpromptlynotifyOUCofanysuchbreachandanticipatedlossresultingtherefrom.AnycostofsuchproceedingsshallbesharedinaccordancewiththeParty'srespectiveOwnershipShare.2.12Anyloss,cost,HabiTity,damageorexpensetothePartiesoreitherofthem,otherthandamagestoeitherPartyresultingfromlosso!useandoccupancyoftheProjectoranypartthereof,arisingoutoftheConstruction,OperationorretirementoftheProject,andbaseduponinjurytoordeathofpersonsordamagetoorlossofProjectpropertyandpropertyofothers,totheextent,notcoveredbycoHectibleinsurance,shallbechargedtoCostsofConstructionorCostsofOperation,whichevermaybeappropriate.2.13If,inthefuture,OUCdeterminestoconstruct,asteamelectricgeneratingfacilityof270MW(twohundredseventy)netcapacityorlarger,LakelandshallhavethefirstoptiontobecomeajointownerofatleastanamountofcapacityequivalenttoOUC'sparticipationinMcintoshUnit3.2.14OUCshaH,subjecttoprovisionsofSection2.17hereinafter,constructa230KVtransmissionlinefromitsserviceareatotheMcIntoshPlant.IntheeventthatLakelandshallbecomeajointownerinafutureprojectwithOUC,inaccordancewithSection2.13above,andprovidingOUC'sbondrequhementscanbemet,Lakelandshallhavearighttopurchase,orlease,aportionof,oranundividedpercentageinterestinsaidlineandrelatedsubstationequipmentatOUC'sterminusoftheline.Theportion,orpercentage,towhichLakelandshallbeentitledshallbecommensuratewithLakeland'stransmissionneedsrelativetoLakeland'sownershipshareinthesaidfutureproject.2.15Intheeventthat,OUCisunabletosellthesaidportionorpercentage,duetoitsBondResolutionrequirements,thenOUCagreestoleaseandLakelandshaHhavetheoptiontoleasethesaidportionorpercentage,fortheexpectedlifeofthesaidfutureproject.ThepurchasepriceorleaseratetoLakelandshallbebasedonthereplacementcostofthelineandrelatedterminalequipmentdeterminedbyapplicationoftheHandy-WhitmanIndexasofthedateofsaleorlease,lessdepreciationcalculatedonthebasisofreplacementcosts.Ifneitheroftheseoptionsareexercised,thenLakelandshallotherwiseprovidetransmissionfacilitiesormakeotherarrangementstofulfillitstransmissionneedsrelativetoitsownershipshareinsaidfutureproject.2.16EachPartyreleasestheotherParty,itsagentsandemployeesfromanyconsequentiallossordamagearisingoutofadelayincommencementofconstruction,construction,operationorretirementofsaidtransmissionlineforanyreason,includingnegligence,except,fordamageresultingfrombreachofthisAgreementorforwillfulorwantonmisconduct.2.17If,byDecember19,1978,thenecessaryStateofFlorida,orFederallicensesorpermitsfortheconstructionoftheProjectand/orthe230KVtransmissionlinebetweenLakelandandOrlandohavenotbeenobtained,then,oratanyothertimebymutualagreement,eitherPartymay,atitsoption,bereleasedfromthisAgreement,andLakelandmaycancelthecontractsthatithasenteredintoandeachPartyshallbeobligatedtopayitsOwnershipShareofaHcostsaccruedtothePIoject,asofthedateoftherelease.IfthisAgreementisterminatedasprovidedaboveandLakelandelectstocontinuewiththeProjectasdefinedbythisAgreement,thenOUCshallbereimbursedbyLakelandfortheactualpaymentsOUChasmadetowardtheProjectcontracts.2.18IntheeventofsuchreleaseOUCwillcausetobedeliveredtoLakelandoritsdesigneeaHinstrumentsreasonablynecessaryfortheconveyanceofOUC'sinterestintheProject.SECTION3.DESIGN,ENGINEERINGANDCON-STRUCTIONRESPONSIBILITY3.01Lakelandhasenteredintoan"AgreementforProfessionalEngineeringServices"withChas.T.Main,Inc.,datedNovember7,1977,relatingtotheProject.LakelandagreestoretainonacontinuousbasissaidengineeringfirmorothernationallyrecognizedfirmuntiltheProjecthasbeencompletedandsubjecttoterminationprovisionsofthesaidAgreementforProfessionalEngineeringServices.LakelandshalluseaHreasonableeffortstocausetheengineertoperformaHitsobligationsunderthesaidcontract.InstaHationandCompletionofProject.3,02TheProjectfacilitiesshallbeinstalledandcompletedbyLakelandashereinprovided.Lakeland,foritselfandforOUC.shallhavetheresponsibiTityforthesupervisionoftheConstructionoftheProject,ashereinaftersetforth.Contractsrelatedtoconstructionshallbeletonthebasisofcompetitivebidding.3.03UponexecutionofthisAgreement,Lakelandshallsubmit,toOUCanestimateoftotalcostandassoonaspracticablethereafteraschedulesettingforththeestimatedcosts,bymonths,ofconstructingandcompletingthePr'oject.LakelandshallthereaftersubmitquarterlyrevisionsofsuchmonthlyscheduletoOUC,togetherwithasununaryreportoftheConstructioncostsaccumulatedtodateandotherpertinentdataincluding,whenrequested,copiesofconstructioncontractsandpurchaseordersrelatingtotheprogressofConstruction.Construction3.04TheProjectshallbeconstructedatthelowestreasonablecostandinaprudentandskillfulmannerinaccordbothwithstandardsprevailingintheutilityindustryforprojectsofasimilarsizeandnatureandsubstantiallyinaccordancewiththedescriptionoftheProjectsetforthinExhibits4and6.TheProjectshallsubstantiallyconformtodesigns,plans,specificationsandconstructionscheduleswhichhaveorwillbemadeavailabletoOUCassuchareavailable.ItisintendedthatthecontractsforpurchaseofG-4 equipmentandconstructionoftheProjectshallbescheduledsoastoprovideforadateofinitialtestandoperationoftheProject,presentlyscheduledfor1981,andforthecompletionandcommercialoperationoftheProjectnotlaterthanOctober1981.3.05Lakelandhasheretoforeenteredintoagreements,purchasecontractsandordersinitsownnameprovidingforthepurchaseofmaterials,equipmentandservicesfortheProject,andLakelandshallwith.reasonableexpeditionasagentsforthemselvesandOUCenterintofurthersuchcontracts,andcontractsfortheConstructionoftheProject.LakelandshallcontinueasagentforitselfandOUCtoincurobligationsandmakeexpendituresrelatingtotheengineeringandotherservicesnecessaryforcontinuedProjectplanningandengineering.3.06Lakeland,onitsownbehalfastoitsowninterest,andasagentforOUC,shallsupervise,performengineeringandotherservicesinconnectionwith,mayprovidematerialsandsuppliesfromitsinventoryfor,andshallpaytaxesproperlyleviedagainst,theConstructionoftheProject,exceptanytaxassesseddirectlyagainstOUC.Lakeland'scostsandexpensesforsuchservicesperformedbyLakelandunderthissubparagraph3.06shallbeincludedinthecostoftheProjectashereinafterprovided,exceptthecostofanyfeasibilitystudies.3.07Lakelandshallmaintain,orcausetobemaintained,separately,appropriatedocumentationandrecordsofsuchexpendituresmadeandcostsincurredbyLakeland,togetherwithallothercharges,paymentsandany.expensesorreceiptsrelatingtotheProject.SuchrecordsofLakeland'sshallbemadeavailableforinspectionbyOUCanditsauditorsatallreasonabletimes.3.08LakelandshallkeepOUCinformedofallsignificantmatterswithrespecttotheConstructionoftheProject(includingplans,specifications,engineeringstudies,environmentalreports,budgetsandsupportingdata,fuelplans,andstaffing),and,whenpracticable,shallfurnishsuchinformationintimesothatOUCmaysubmitcommentsandrecommendationsthereon,whenappropriate,beforedecisionsaremade,andshallconferwithOUCasandwheneverneedsarise.Lakelandshallfurnishormakeavailableanyandallotherinformationrelatingtoany'spectoftheProjectuponrequestofOUC.3.09Allbids,contractsandrelateddocumentsshallbemadeavailabletoOUCasinformation.Theawardofanycontractsinexcessof$20,000,andanychangeorderwhichwouldincreaseacontractpricebyanamountinexcessof320,000,shallbereviewedbyOUCwhichshallforwarditsrecommendationstoLakelandinatimelymanner.3.10Allrecommendationsshallbeconsideredingoodfaith,butshallnotbebindingonLakeland.SECTION4.PROJECTCOSTSANDPAYMENTSProjectCosts4.01ProjectcostsshallincludeallpaymentsmadeandobligationsincurredinconnectionwithConstructionoftheProject,andshallincludebutnotbelimitedtothefollowingitems:4.02Preliminaryinvestigationanddevelopment,(aberandothercosts,engineering,contractors'ees,constructionlabor,materialsandsupplies,includingspareparts,operatorandotherpersonneltraining,testing(lessnetreceiptsre)atingtotesting),andallothercostsproperlyallocabletotheProject.AnynetreceiptsrelatingtoConstructionshallbecreditedagainstProjectcost.4.03AllcostsofinsuranceobtainedpursuanttSection7hereof,andapplicabletotheperiodoConstruction.4.04AllcostsrelatingtoinjuriesanddamageclaimswhichmaybepayableandpaidarisingoutoftheConstructionoftheProject,lessproceedsofinsurancemaintainedunderSection7hereof.4.05Allfederal,stateorlocaltaxesimposedupontheProjectandpaymentsinlieuoftaxes,duringtheConstructionperiod,excepttaxassesseddirectlyagainstonePartyunlesssuchtaxwasassesseduponbothParties.4.06AppropriateamountsofadministrativeandgeneralexpensesasmutuallyagreedtobythePartiesandinaccordancewithgenerallyacceptedcostaccountingprinciples.4.07ThevalueofallCommonUseFacilitiesandExternalFacilitiesshallbedeterminedbyLakelandandbasedonreplacementcostofthesaidfacilitiesdeterminedbyapplicationoftheHandy-WhitmanIndexasofthedateofexecutionofthisAgreement,lessdepreciationcalcu)atedonthebasisofreplacementcost.4.08AllothercostsincurredbyLakelandandOUCdi-rectlyapplicabletotheProjectincluding,butnotlimitedto:(a)Payrollofemployees,whichcanbedirectlyassignabletotheProjectonanactualtimebasisincludingrelatedemployeebenefitcostssuchasSocialSecurityTaxes,UnemploymentInsuranceExpense,GroupLifeInsurance,GroupHospitalizationandMedicalExpensesInsurance,PensionFundingExpense,Workmen'ompensation.LongTermDisabilityandotherInsurance,andPaidLeave.(b)Materialsandsuppliesincludingre(atedpurchasingandhandlingcosts.(c)Travelingexpenseincludinguseofcompanytransportationequipment.(d)Constructionpowercosts.(e)Othermiscellaneouscosts.PaymentofProjectCosts4.09EachPartyshallpayitsshareoftheProjectCostsasdeterminedbyitsrespectiveOwnershipShareundertheprocedureshereinaftersetforth.4.10LakelandshallfurnishOUCwithpaymentschedulesforallmajorcontracts,inwhichthecontractpriceisfor350,000,ormore.Uponreceiptofinvoicesfrommajorcontractors,Lakeland,uponapprovalandauthorizationofpayment,shallnotifyOUCthatpaymentisdueonsuchinvoices,andOUCshallpromptlymakepaymentsofitsshareofthesaidinvoicestothecontractorsinvolved.4.11ForpaymentofallotherProjectCosts,LakelandshallestablishaseparatecheckingaccountinabankofitschoicefordepositbyOUCofitsshareoftheProjectCosts.4.12LakelandshalLonorbeforethe15thofeachmonth,furnishOUCaninvoiceshowingthecurrentestimateofOUC'sshareofallotherProjectCostsrequiredforthfollowingmonth(CostMonth).4.13OUCsha!Lfollowingreceiptofsaidinvoice,depositinthesaidcheckingaccount,bythe10thoftheCost Monthorthefirstworkingdaythereafter,theamountofthesaidinvoice.Lakelandshallwithdrawthefundssodeposited,asrequiredtomakepaymentforOUC'sOwnershipShareofthesaidotherProjectCosts.4.14AnydifferencebetweenthesaiddepositsmadebyOUCandactualpaymentsforOUCmadebyLakelandshallbeadjustedbyLakelandonthenextinvoicefollowingthecloseoftheCostMonth.4.15Intheeventthatsuchdifferencesaresubstantialand/orcontinuous,theProjectConunitteeshalldeterminehowcorrectionsshouldbemade.4.16LakelandshallpaydirectlytothecontractorsinvolveditsOwnershipShareofaHProjectCosts.SECTION5.ACCOUNTING5.01Lakelandshallkeepseparate,completeandaccurateaccountsofaHreceiptsandexpendituresofProjectCosts,asdescribedinSection4,andCostsofOperation,asdescribedinSection9,andothercostsoftheProjectinamanneragreedtobytheProjectCommittee.EachofthePartiesshallkeepcompleteandaccurateaccountsofaHcostsincurredbyitfortheProject.AHaccountsshallbekeptinaccordancewiththeUniformSystemofAccounts.TheaHocationofcostsbyLakelandbetweenProjectCostsandCostsofOperationpursuanttothisAgreementshallbebindingonthePartiesforpurposesofthisAgreement,butthemannerinwhichaccountsarekeptpursuanttothisAgreementisnotintendedtobedeterminativeofthemannerinwhichtheyaretreatedintheseparatebooksofaccountoftheParties.5.02OUCshallhavetherightatanyreasonabletimetoexaminetheseparatebooksof.accountrelatingtotheProjectkeptbyLakelandpursuanttothisSectionandtoexamineandcopyaHplans,specifications,bidsandcontractsrelatingtotheProject.EachPartyshallhavetherighttoexaminetheaccountbooksandaHsupportingdataanddocumentsrelatingtoamountsforwhichtheotherPartyistobereimbursed.ThemeasureoftheacceptabilityoftheamountsforwhichaPartyistobereimbursedshallbePrudentUtilityPractice.5.03ThePartiesheretoshaH,promptlyuponexecutionofthisAgreementandfromtimetotimeasneededthereafter,requiretheproperaccountingpersonnelfromeachofthePar.tiestomeetforthepurposeofestablishingandmaintainingmutuallyacceptableaccountingmethodsandprocedures.ThisactivityshallbeunderthesurveillanceoftheProjectCoinmittee,asprovidedinSection8ofthisAgreement.5.04LakelandshallcauseaHaccountstobeauditedbyafirmofIndependentCertiTiedPublicAccountantswhoaremembersofaDivisionofCPAFirmssponsoredbytheAICPAacceptabletobothPartiesatannualintervalsandwhensuchaccountsareclosed.CopiesofsuchauditsshallbesuppliedtoOUC.SECTION6.LICENSESANDPERMITS6.01UpontheexpirationofanylicensesorpermitsrequiredfortheoperationoftheProject,orshouldanyadditionalorfurtherlicensesorpermitsberequired,Lakelandagreestofiletimelyapplicationsforaneworfurtherlicenseorpermit,asthecasemaybe,tobeheldastenantsincommonintheundividedinterestssetforthhereinabove.Alistoflicensesandpermitseitherapprovedand/orappliedforasofthedateofthisAgreementshallbesuppliedtoOUCbyLakelanduponrequest.SECTION7.INSURANCEANDTAXESInsurance7.01LakelandshallprocureattheearliestpracticabletimeandthereaftermaintainineffectataHtimeshereinafterprovided,totheextentavailable,atreasonablecost;andinaccordwithstandardsprevaiTingintheutHiityindustryforprojectsofsimilarsizeandnature,adequateinsurancecoveragefortheConstructionandOperationoftheProjectwithresponsibleinsurers,witheachPartyasanamedinsuredandwithlossespayabletotherespectivePartiesbytheirrespectiveOwnershipSharesfortheirbenefitastheirrespectiveinterestsmayappear,toprotectandinsureagainst:(I)ComprehensiveLiabilityforbodilyinjuryandpropertydamage,(2)aHrisksoflossandphysicaldamagetopropertyorequipment,includingtheperilsoftransportation,installationandtesting.LakelandshallprocuresuchotherinsuranceasthePartiesdeem'necessary,andwithreasonablelimitsandsubjecttoappropriateexclusionsanddeductibles.7.02Uponsustainingalosscoveredbysaidinsurance,LakelandshallpromptlyadviseOUCandgivepropernoticeandmakeproperclaimstotheinsuranceagentsorcarriers.LakelandshaHalsoproceedwithappropriaterepairorreplacementoflossordamagetoProjectequipmentorpropertyandthecostofsuchrepairorreplacementshallbebornebythePartiesinproportiontotheirrespectiveOwnershipShares.ProceedsofsuchclaimsshallbedisbursedtothePartiesinthesameproportion.7.03Thepremiumcosts'forsuchinsurancecoveragesuntilthecompletionofconstructionshallbeaProjectCost,andshaHthereafterbeanoperatingcostandshallbebornebythePartiesinrelationtotheirrespectiveOwnershipShare.7.04LakelandshallkeepOUCinformedastothestatusofinsuranceinforceandifitdoesso,LakelandshallnotbeliabletoOUCforanyfailuretoinsureorinadequacyofcoverage.OUCmayrequestadditionalinsurancetotheextentavailable,andLakelandshallpurchasesuchrequestedinsurance.Anyportionofsaidadditiona(insurancenotagreedtobyLakelandshallbepaidforbyOUC.TheproceedsfromanyclaimwithregardtotheadditionalinsurancepaidforsolelybyOUCshallaccruesolelytothebenefitofOUC.Taxes7.05Lakeland,actingasagentforOUC,shallhavesoleresponsibilityfornegotiatingthevaluationofanyassessmentsontheProjectfortaxationpurposes.7.06ItshallbetheresponsibilityofeachPartytoobtainsuchexemptionsfromtaxationtowhichitmaybeentitled.7.07Lakeland,actingasagentforOUC.shalluseitsbesteffortstohavethelevyofanytaxesor.paymentsinlieuthereof(exceptpayrollandsalesandusetaxes),madedirectlyandseparatelyagainsttheOwnershipSharesofLakelandandOUC,orinsuchothermanneraswillalloweachPartytoperfectanyexemptiontowhichitmaybeentitled.7.08Ifanypropertytaxes,orpaymentsinlieuthereof,oranyothertaxesorassessmentsrelatedtotheProjectareleviedagainsttheProjectasawhole,suchtaxesorpaymentsinlieuthereofshallbeapportionedbetweenLakelandandOUCinaccordancewiththeirOwnershipG-6 Shares.LakelandshallbillsuchapportionedtaxesorassessmentstoOUCintimeforOUCtotakeavailabletaxdiscounts.IfOUCthenmakestaxpaymentstoLakelandintimefordiscountedratesandLakelanddoesnottakeavai)abletaxdiscounts,OUCshallnotbechargedfortheincreasedtaxcosts.Salesandusetaxesshallbechargedaspartofthecostofthematerialsorservices.7.09Totheextentpermittedbystatelaw,OUCshallbeexemptedfromanytaxationlevieduponitsshareoftheProjectbyLakeland.SECTION8.PROJECTCOMMITTEE)8.01Asameansofsecuringeffectivecooperation,interchangeofinformationandmanagementofthepropertyownedincommon,onapromptandorderlybasisinconnectionwithvariousadministrativeandtechnicalproblemswhichmayarisefromtimetotimeunderthetermsandconditionsofthisAgreement,thePartiesherebyestablishanadvisoryProjectCommittee.Thecommitteeshallconsist,ofatleasttworepresentativesfromeachParty,butnotmorethanfourfromeachParty.8.02TheProjectCommitteeshallhaveasitschairmananappointeerepresentingLakelandanddesignatedbyLakelandforthedurationofConstructionoftheProjectanditsfirstyearofCommercialOperation.Thechairmanshipwillthenrotate,onanannualbasis,betweenOUCandLake)and.ThechairmanshallbedesignatedbythePartyhavingthechairmanship.'.03TheProjectCommitteeshallkeepwrittenrecordsofallmeetings.8.04TheProjectCommitteeshallappointAdHocCommitteesasnecessarytoperformdetailedworkandconductstudiesregardingmattersrequiringinvestigation.8.05EachPartyshallnotifytheotherPartyinwritingpromptlyuponexecutionofthisAgreementofthe-designationofitsrepresentativesontheProjectCommitteeandshallnotifytheotherPartypromptlyof'anysubsequentchangeinitsdesignations.EitherPartymay,bywrittennoticetotheotherParty,designateanalternate(s)toactasitsrepresentativets)ontheCommitteeintheabsenceofitsregularmemberis)oftheCommittee,ortoactonspecifiedoccasionsorwithrespecttospecifiedmatters.8.06TheProjectCommitteeshallhavenoauthoritytomodifyanyoftheprovisionsofthisAgreement.8.07TheProjectCommitteeshallmeetatsuchtimesasreasonablyrequestedbyeitherPartyandshallinspecttheProjectfacilities,receivereportsonconstruction,operationandmaintenanceoftheProject.Functions8.08TheProjectCommitteeshallhavethefollowingfunctions,amongothers:8.09ProvideliaisonbetweenthePartiesatthemanagementlevelInthiseffort,LakelandshallkeeptheProjectCommitteeinformedofallsignificantmatterswithrespecttoConstructionandOperation,oftheProjectand,whenpracticable,shallfurnishsuchinformationintimefortheCommitteetosubmitcommentsandrecommendationsthereonbeforedecisionsaremade.8.10Provide)iaisonbetweenthePartieswithrespecttothefmancialandaccountingaspectsofConstructionandOperationoftheProject.Theseshallincludesuchitemsas:AnnualCapitalImprovementsbudget,annualOperationbudget,plannedoutages,writtenstatisticalandadministrativereports.8.11Copiesofallrecords,reportsandformsandothinformationpertinenttotheProjectshallbeprovidedtothProjectCommitteebyLakeland.8.12UponnotificationbyLakelandofintenttoretiretheProject,reviewanddeterminethedetailsoftheultimatedispositionoftheProject.8.13Review,discussandtrytoresolvedisputesarisingunderthisAgreement.8.14ExpensesincurredbyemployeesofeitherPartywhileservingontheProjectCommitteeoranyothercommitteerelatedtotheProject,shallbeaccountedforinaccordancewithSections4and9.SECTION9.OPERATIONSMANAGEMENT,OPER-ATINGCOSTSANDPAYMENTSOperationManagement9.01Lakeland,assolemanageroftheProject,shalL9.02PerformallOperatingWork,execute,administer,performandenforcecontractsforOperatingWork,including,withoutlimitation,anyandallwarrantiesonequipment,facilities,materials,andservicesfurnishedpursuanttoanysuchcontract.9.03FurnishorrecruitthenecessarypersonnelandprovideforsuchtrainingasmayberequiredtoqualifythemtoperformtheOperatingWork.9.04Purchaseandprocure,throughandfromanysourceitmayselect,theequipment,apparatus,machine.tools.services,materials,suppliesandsparepartsnecessafortheperformanceofOperatingWorkandtheadditionofCapitalImprovements.9.05ExpendfundsinaccordancewiththetermsandconditionsofthisAgreement.9.06Havetherighttoenterintoanyarrangementforthepurchase,delivery,andhandlingoffueL9.07TakeanyactionrequiredinanemergencyforthesafetyofandtheOperationoftheProject.9.08ProvideOUCwithregularreportsonOperationoftheProject.9.09SubmittoOUC,onorbeforeJune15ofeachyear,apreliminarybudgetofitsestimateoftheCosts-ofOperationbycalendarmonthsfortheoperatingyearbeginningOctober1nextfollowing.OUCshallreviewthepreliminarybudget,andshallsubmittoLakelanditsrecommendationsrelative.tosaidbudgetonorbeforeAugust1.Lakelandshallgivedueconsiderationtotherecommendations.ThebudgetshallincludesuchitemsofexpenditureforreplacementandrepairofProjectfacilitiesasarenormaltoprojectsofasimilarcharacterandshallprovideanadequatecontingencyitemforemergencyrepairsandreplacements.Lakelandshallsubmitbudgetrevisionsasmaybecomenecessaryfromtimetotimeduringanyoperatingyear.OUCshallpromptlyconsidertheserevisionsandmakeanyrecommendationsitmayhaverelativetothem.Lakelandshallgivedueconsiderationtotherecommendations.'.10SubmittoOUC,onorbeforeJune15ofeachyear,apreliminaryconstructionbudgetofitemsofCapitalImprovements(otherthannormalreplacementsbudgetedG-7 underthepreviousparagraph)anditemsofretirementoffacilitiesandequipment,relatingtoProjectfacilitiesasmaybeproposedbyeitherPartyandmutuallyagreedtobybothParties,forconstructionorretirementcommencingduringtheyearbeginningOctober1,nextfollowing.OUCshallreviewthepreliminarybudget,andshallsubmittoLakelanditsrecommendationsrelativetosaidbudgetonorbeforeAugust1.Lakelandshallgivedueconsiderationtotherecommendation.9.11ThePartiesrecognizethatitwillbenecessaryforcontinuedOperationoftheProjectthatLakelandbeinapositiontomeetcommitmentsforpayrolLrepairs,andrep)acements,materialsandsupplies,servicesandotherexpensesofacontinuingnatureinorderthatitmayfulfillitsobligationsunderthisAgreement.Accordingly,regardlessoftheforegoingprovisionsofthisSection,Lakelandmaymakeallexpendituresinthenormalcourseofbusiness,orinanyemergency,asnecessaryfortheproperandsafeOperationoftheProject.Assoonaspracticableafterthemakingofanysuchexpenditures,LakelandshallmakeafullreportthereoftoOUC.9.12LakelandshallswitchandprovidesafetyclearancesofOUC's230KVtransmissionline,attheProject230KVSwitchyardasrequestedbyOUC.9.13OUCshallhavetherighttospecifyrelaysettingsfortheprotectionofitstransmissionline,providedhoweverthatsuchsettingsshallbecoordinatedwiththeProject'srelayingandLakeland'ssystemrelaying,inaccordancewithPrudentUtilityPractice.CostsofOperationandPayments9.14EachPartyshallpayitsshareoftheCostsofOperationasdeterminedbyitsrespectiveOwnershipShareundertheprocedureshereinaftersetforth.9.15LakelandshallfurnishOUCwithpaymentschedulesforallmajorcontractsandpurchasesinwhichthepurchaseorcontractpriceisfor350,000ormore.Uponreceiptofinvoicesfromsaidmajorcontractorsorsuppliers,Lakeland,uponapprovalandauthorizationofpayment,shallnotifyOUCthatpaymentisdueonsuchinvoices,andOUCshallpromptlymakepaymentsofitsshareofthesaidInvoices.9.16ForpaymentofallotherCostsofOperation,Lakelandshallestablishaseparatecheckingaccountinabankofitschoice,fordepositbyOUCofitsOwnershipShareofallotherCostsofOperation.9.17Lakelandshal4onorbeforethe15thofeachmonth,furnishOUCaninvoiceshowingthecurrentestimateofOUC'sOwnershipShareofallotherCostsofOperationrequiredforthefollowingmonth(CostMonth).9.18OUCshall,followingreceiptofthesaidinvoices,depositinthesaidcheckingaccountbythe10thoftheCostMonthorthefirstworkingdaythereafter,theamountofthesaidinvoices.Lakelandshallwithdrawthefundssodeposited,asrequiredtomakepaymentforOUC'sOwnershipShareofthesaidotherCostsofOperation.9.19AnydifferencebetweenthesaiddepositsmadebyOUCandactualpaymentsforOUCmadebyLakelandshallbeadjustedbyLakelandonthenextinvoicefollowingthecloseoftheCostMonth.9.20Intheeventthatsuchdifferencesaresubstantialand/orcontinuous,theProjectCommitteeshalldeterminehowcorrectionsshouldbemade.9.21LakelandshallpaydirectlytothecontractorsandsuppliersitsOwnershipShareofallCostsofOperation.CapitalImprovements9.22ThePartiesshallberesponsibleforpaymentoftheirrespectiveOwnershipSharesofthecostofanyCapitalImprovement.'Lakelandshallperform,orcausetobeperformed,suchconstructionunderproceduressimilartotheProjectconstruction.Therights,titlesandinterestsincludingOwnershipSharesofeachPartyinandtoanysuchCapitalImprovementshallbeinthesamepercentageasthe'OwnershipShareshereinprovided.SECTION10.SCHEDULINGANDDELIVERYOFPROJECTOUTPUTANDSCHEDULINGOFOUTAGES10.01OUCshall,bythetimetheProjectgoesintoCommercialOperation,constructatitsowncost,230KVtransmissionfaciTitiesnecessarytodeliveritsOwnershipShareoftheOutputoftheProjecttoitsownservicearea.10.02EachPartyshallbeentitledtoschedulealloranypartofitsOwnershipShareoftheOutputoftheProject.LakelandshallaccuratelymeasuretheOutputoftheProject.10.03Unlessotherwisemutuallyagreed,eachPartyshallschedulecapacityandadhereascloselyaspracticabletothecapacitytowhichitisentitled.10.04LakelandshallberesponsibleforthedispatchingofcapacityavailablefromtheProjecttomeettherequirementsoftheprovisionsofthisAgreement.10.05LakelandshallaccuratelymeasuretheflowsatallofitspointsofinterconnectionsothatOUC'sshareoftheProjectOutput,adjustedforLakeland'sincrementaltransmissionlossesassociatedwithOUC'sshareof'theProjectOutput,willbedeliveredtothesaidpointsofinterconnection.TheselossesshallbedeterminedbyLakelandfromloadflowstudies,madeannuallyorotherwiseasmutuallyagreed.10.06IntheeventofthelossofOUC'stransmissionline,describedinSection10.01above,Lakelandshallprovidetransmissioncapacityoverits230KVtransmissionsystemtodeliverOUC'sOwnershipShareoftheOutputoftheProject,adjustedassaidabove,toLakeland'spointsofinterconnection.10.07OUCshallreportitshourlyscheduleforthefollowingdaytoLakelandby4o'c)ockp.m.eachday,exceptthatthescheduleforholidays,SaturdaysandSundays,andforthedayfollowingsuchdaysshallbesubmittedby4o'lockp.m.oftheprecedingworkday;provided,however,thatOUCshallhavetherighttorequestachangeinitsscheduleonshorternoticetoreflectchangesinitsrequirements.10.08LakelandshallnotifyOUCiffulfillingtherequestedscheduleswouldrequireoperationoftheProjectbelowMinimumCapabilityandthePartiesshallreschedulesuchthateachshallreceivetheirrespectiveOwnershipSharesofsuchMinimumCapability,unlessotherarrangementsareagreedtobytheParties.10.09IfonePartyscheduleslessthanitsOwnershipShareoftheProjectcapacity,theotherPartyshallhavethefirstoptiontopurchasetheremainingcapacityoranyportionthereof,fromthefirstParty,onthefoUowingbasis:(a)suchsaleofremainingcapacityshallbeinaccordancewiththecontractforinterchangeservicebetweentheG PartiesdatedMay2,1977,asrevisedasofthedateofsuchsale,or(b)asotherwiseagreedtobytheParties.10.10WithrespecttofirminterchangesalesbetweenthePartiesoutoftheProject.thecapacityshallbepricedbythesellingPartyonthebasisoftheoriginalcostofthecapacity,anditslevelizedfixedcarryingchargesbasedonanexpectedservicelifeof,thirtyyears.10.11ItisunderstoodandagreedthatifanyportionorallofthesaidremainingcapacitynotscheduledbyonePartyisnotpurchasedbytheotherParty,thenthePartyowningthesaidremainingcapacitymaysellorotherwisedisposeofasitchooses,thesaidportion,orall,oftheremainingcapacitynotsopurchasedbytheotherParty.10.12Whenstart.up,testingoranynonwommercialoperationoftheProjectrequiresgeneration,eachPartyshallmakeprovisionsforacceptanceofitsOwnershipShareofsuchgenerationunlessotherarrangementsareagreedtobytheParties.LakelandshallnotifyOUCoftestschedulesasfarinadvanceaspracticable.10.13Lakelandshallprovidestationservicerequire.ments,includinglosses,whenevertheProjectOutputiszeroornegative.OUCshallreimburseLakelandforitsshareofsuchstationservicerequirementsbyanexchangeofenergyinkindor,atLakehnd'soption,bymakingapaymentinaccordancewiththeprovisionsofSection9.10.14LakelandshalloperatetheProjectsoastominimizelossesduetoreactivepowergeneration,consistentwithPrudentUtilityPractice.OUCandLakelandshallcooperateintheoperationoftheirrespectivehighvoltagetransmissionfacilitiesrelatedtotheProjecttofacilitatetheabove.10.15EachPartyshalloperateitssysteminsuchamannerastomaketheactualnetdeliveriesoftheOutputfromtheProjectasnearaspracticabletothenetscheduled,andactualnetdeliveriesshallbeaccountedforandsettledaccordingtotheestablishedproceduresforinterconnectedsystemoperationinaccordancewiththeFCGOperatingCommitteeHandbook.10.16ThePartiesshallcoordinatetheirtransmissionlinemaintenanceschedulessoasnottoplaceanundueburdenonthesystemofeitherParty.10.17EachPartyshallmaintainorprovideforspinningreserveasrequiredtocoveritsadditionalgeneratingcapacityacquiredintheProjectandascalculatedinaccordancewiththeprinciplesestablishedandasmayberevisedfromtimetotime,bytheOperatingCommitteeofFCG.SchedulingofOutages10.18Scheduledoutagesformajormaintenanceshallbeasrequiredbythemanufacturers'pplicableconditionsofsaleanddeliveryoftheaffectedfacilitiesandequipmentorotherwiseasagreedtobytheParties.LakelandshallcoordinateplannedProjectoutageswithOUCasfarinadvanceaspracticable.LakelandmayshuttheProjectdown,reducepower,ortakeotherappropriateactionwhichinthejudgmentofLakelandisnecessarytoinsureproperOperationoftheProject.10.19Intheeventofemergencyoutages,orforcedoutages,orreductionsinProjectcapabilityforanyreason,OUCmayrequestthatLakelandexpeditetherepairs,replacementsorotherrestorationmeasuresprovidedthatOUCshallbeartheexpeditingcostsinvolved.SECTIONll.FUEL11.01Lakelandshalllocate,purchase,andarrantransportationforallFuelfortheProject,includingainitialreservecoalstocksufficienttosupplytheProjectat,itsexpectedOutputforaperiodofsixty(60)days.TheinitialreservecoalstockshallbecomeapartoftheProject~andthecostofeachParty'sOwnershipSharethereofinaybecapitalizedbyeitherPartyastheyelect.11.02ThecostofFuelshallincludeallobligations,liabilities,creditsandrecoverieswithrespecttoinsurance,shipping,leaseandservicechargesfromanysupplierorshipper,andtheexpenseofunloading,storingandhandlinguptothepointwherefuelentersthefirstcontainerorholdingvesselwithintheboilerstructure.11.03LakelandandOUCshallshareinthecostoftheinitialreservecoalstockinthesameproportionastheirrespectiveOwnershipShares.11.04LakelandshallexerciseitsbestjudgmentinthesecuringofailfuelfortheProject.OUCshallhavetherighttoreviewallspecifications,bids,contractsandotherdocumentsrelatedtofuelfortheProject,astheybecomeavailable,andshallmakerecommendationstoLakelandregardingthesecuringofthefuelsupply.11.05OUCshallfurnishtoLakelandasrequested,forecastsofitsgenerationrequirementsfromtheProject.LakelandshallusesuchforecaststogetherwithforecastsofitsgenerationrequirementsfromtheProjectinarrangingforfueldeliveriesandinpreparingafuelbudget,asrequiredforthetotalbudgetfortheProject,inaccordancewithSection9.09.11.06Lakelandshallestimateand,asnearlypracticable,causetobedeliveredduringthemonthitistobeburned,thefuelwhichwillberequiredfortheProject,'suseforthatmonth.Lakelandshallbythe15thofeachmonthprovideOUCanestimateofthedeliveredpriceoffueltobedeliveredinthefollowingmonth.LakelandandOUCshallshareinthecostoffueldeliveredeachmonthfortheProjectinthesameproportionastheirrespectiveOwnershipShares,exceptasfollows.11.07IfduringanymonththefuelburnedforaPartyislessthanitsOwnershipShareofthetotalfuelburned,thenthedifferenceinexpensebetweenitsOwnershipShareofthetotalfuelburnedandthefuelburnedforsaidParty,shallbecreditedtosaidParty'spaymentandchargedtotheotherParty'spaymentfordeliveriesinthefollowingmonth.11.08IfduringanymonththefuelburnedforaPartyismorethanitsOwnershipShareofthetotalfuelburned,thenthedifferenceinexpensebetweenitsOwnershipShareofthetotalfuelburnedandthefuelburnedforsaidParty,shallbechargedtosaidParty'spaymentandcreditedtotheotherParty'spaymentfordeliveriesinthefollowingmonth.11.09Ifduringanymonththefuelburnedislessthanorgreaterthanthedeliveriesinthatmonth,thenLakelandshalluseitsbesteffortstoadjustthefollowingmonth'sdeliveriestocompensateforthedifferencessoastomaintaintheinitialreservecoalstock.Thisprovisionmaybesuspendedwhencircumstancesrequirethereservecoalstocktobechangedfromitsnormalvolume.11.10ThemonthlyfuelconsumptionshallbedividbetweenthePartiesinthesameratioastheirnetenerbearstothetotalnetenergy.TheaccountingforfuelconsumedshallbeasagreedtobytheProjectCommittee,inaccordancewithgenerallyacceptedaccountingprinciples.G-9 11.11LakelandshalLunlessotherwiseagreed,preparemonthlyoperatingrecords,based,asappropriate,uponmeasuredorestimatedquantitieswhichshallcontain,withotherdetailstobeagreedupon:fueldelivered,fuelconsumedandnetkilowatt-hoursdelivered(hourlyanddaily)toeachPartyduringtheprecedingmonth.LakelandshallconsultwithOUCregardingsuchrecordsandmakerevisionsasappropriate.SECTION12.SOLIDREFUSEBURNINGFACILITIES12.01TheProjectshallincludethefacilitiesnecessaryforburningsolidrefusemateriaLIncludedshallbeallequipment,storage,handflng,conveyingandotherequipmentandfacilitiesnecessaryordesirabletotheburningofthesolidrefuseintheboilerfurnace.12.02ThecapitalcostsofthesaidsolidrefusefacilitiesshallbesharedbytheparticipantsinthesameproportionastheirOwnershipSharesintheProjectAllcostsassociatedwithobtainingandreceivingtherefuseandstoring,handling,processing,andburningtherefuseshallbesharedbythePartiesinthesameproportionastheirOwnershipShares.Thesesaidcostsshallincludeallcostsofoperation,maintenance,andtestingofthesaidfacility.Thesaidcostsshallalsoincludeallinsuranceandtaxes.12.03Anyandallrevenues,receipts,orcreditsofanykindaccruingtothesaidsolidrefuseburningfaciTitiesshalllikewisebesharedbythePartiesinproportiontotheirOwnershipShares.12.04AnysavingsinfuelcostsfortheProjectresultingfromburningthesaidsolidrefuseshallaccruetothebenefitofthePartiesinthesameproportionastheirrespectiveOwnershipShares,exceptwheneveraPartyschedulesotherthanitsproportionateshareoftheOutputoftheProject,asprovidedinSection10.IntheeventthateitherPartyschedulesotherthanitsproportionateshareoftheOutputfromtheProject,anysavingsinthecostoffuelfortheprojectaccruingfromtheburningofthesaidsolidrefuseshallaccruetothePartiesinproportiontotherespec.tivequantityofcapacityscheduledbyeachParty,forandduringtheperiodoftimethatthesaidschedulingisnotinproportiontoeachParty'sOwnershipShareintheProject.12.05SavingsinthecostoffuelresultingfromtheburningofthesolidrefuseshallbecreditedtoeachPartyonlyduringthetimeperiodinwhichthesaidsolidrefuseisactuallybeingburned,andshallaccruetoeachPartyinproportiontoitsscheduledOutputfromtheProjectduringthesameperiodoftime.Savingsonfuelcostsshallnotbeaccumulated,res'erved,andcarriedforwardforeitherParty.12.06Anyincrease,ordecreaseinthecostofmaintenancetotheboiler,scrubber,precipitator,oranyotherProjectfacility,causedbyorsuspectedofbeingcausedbytheinclusionanduseofthesaidsolidrefuseburningfacilityshallbesharedbythePartiesinthesameproportionastheirOwnershipSharesintheProject.SECTION13.DISPOSALOFWASTEORSURPLUSCOMMODITIES,MATERIALS,EQUIPMENTANDOTHERPERSONALPROPERTY13.01Theflyashextractedbytheprecipitators,sludgefromscrubbers,bottomashfromtheboilerfurnaceandanyotherwasteproductsfromtheProjectshallbedisposedofasmutuallyagreedtobytheParties.13.02Anycommodities,materials,equipmentorotherpersonalpropertyincludingtheitemsreferredtoinSection13.01whichisproducedfrom'orisavailablefromtheProjectandwhichissurplustothethenpresentorreasonablyforeseeablefuturerequirementsoftheProjectmaybesoldorotherwisedisposedofuponsuchtermsandconditionsandforsuchperiodsoftimeasmaybemutuallyagreedtobytheParties.Thereceiptsfromsuchsalesand/orthesharedcostsofsuchdisposalshallbesharedbythePartiesinproportiontotheirrespectiveOwnershipShares.13.03TheforegoingshallnotbeapplicableunderanycircumstancesorinanymannertosaleordisposalofelectricenergyfromtheProject.SECTION14.TRANSMISSION,LOSSESANDSERVICECHARGES14.01OUCshallprovideitsowntransmissionfacilitiesfromtheProjectsitetoOrlandotofacilitatedeliveryofitsOwnershipShareoftheOutputoftheProject.14.02IntheeventOUCsuppliesLakelandwithenergy,throughOUC'stransmissionfacilities,payment,forlossesshallbeinaccordancewiththecontractbetweenthePartiesforinterchangeservice,datedMay2,1977asrevisedasofthedateofsuchtransaction.NotransmissionservicechargeswillbeassessedbyeitherPartyforsuchbilateraltransactionsbecausethePartieswillbedirectlyinterconnected.SECTION15.DAMAGETOORDESTRUCTIONOFPROJECT-DISPOSITIONUPONABANDONMENT.15.01IfallorsubstantiallyalloftheProjectbedestroyedordamagedbeyondrepairordamagedtotheextentthatthecostofrepairsubstantiallyexceedstheproceedsofinsurance,asoutlinedinSection7,availableforreconstructionorrepairandthePartiesdonotagreetojointlyreconstructorrepairtheProject,orifforanyreasonthePartiesdeterminetoabandontheProject,thesalvageableportionoftheProjectshallbedisposedofinaccordancewithaprocedureagreeduponbytheParties,orifthePartiescannotagree,thismattershallbecomeanarbitrabledisputesubjecttotheprovisionsofSection17herein.15.02TheproceedsfromsuchdispositionshallbedistributedtothePartiesinaccordancewiththeirrespectiveOwnershipShares.Anydemolition,removalandcleanupcostsshallbechargedagainstandbornebythePartiesinaccordancewiththeirrespectiveOwnershipShare.15.03LakelandmayelecttoreconstructtheProjectinwhicheventthevalueoftheProjectshallbeappraisedbythreeindependentappraisers,oneselectedbyeachPartyandthethirdselectedbythefirsttwo.LakelandshallpayOUCitsrespectiveOwnershipShareofsuchappraisedvalue,andOUCshallcauseitsinterestintheProjecttobeconveyedtoLakeland.15.04IntheeventthatlessthansubstantiallyalloftheProjectshallbedestroyedordamaged,andthecostofrepair,restorationorreconstructiondoesnotsubstantiallyexceedtheproceedsofapplicableinsurance,theProjectshallberepaired,restoredorreconstructedbythePartiesinsuchmannerastorestoretheProjecttosubstantiallythesamegeneralcharacteranduseastheoriginalProject,unlessotherwisemutuallyagreedtobytheParties.SECTION16.DEFAULTSANDNON.PAYMENTS16.01LakelandandOUCherebyagreethattheyshellpayallmoniesandcarryoutallotherdutiesandobligations agreedtobepaidand/orperformedbythempursuanttoaHofthetermsandconditionssetI'orthandcontainedinthisAgreementandfailureofeitherPartytofulfiHandkeeptheobligationsandcovenantshereinshallbeanactofdefaultbytheParty.16.02IntheeventofanactofdefaultbyeitherParty,theotherPartyshallpromptlynotifythedefaultingParty,inwriting,oftheexistenceandnatureofthedefault.Upongivingthesaidnotice,thenon-defaultingPartymayelecttoprovisionallyremedythedefaultby'payingormeetingtheobligationsofthedefaultingParty.16.03Withinten(10)daysafterwrittennoticehasbeengiven,thedefaultingPartyshallcuresuchdefaultandreimbursethenon-defaultingPartythetotalamountofmoneypaidorexpenseincurredbysuchnon-defaultingPartyasaresultofsaiddefault,togetherwithinterestonsuchmoneyorexpense,atanannualrateequalto1.30timesPrimeRateatthetimeofdefault.SuchinterestshallaccruefromthedateofpayingsuchmoneyorincurringsuchexpensetothedateofreunbursementbythedefaultingParty.16.04Shouldanact'fdefaultbyeitherPartyinthepaymentofmoniesorperformanceofanyobligationunderthisAgreementcontinueforaperiodofthirty(30)daysfromthegivingofsaidwrittennoticewithouthavingbeencuredbythedefaultingParty,thenthenon-defaultingPartymay,bywrittennotice,suspendtherightofthedefaultingPartytoreceiveanypartoraHofitsproportionateshareoftheOutput-oftheProjectandmaysuspendtherightofthedefaultingPartytoberepresentedonorparticipateintheactionsofanyProjectcommittees.16.05ShouldthesuspensionofthedefaultingPartycontinueforaperiodofthirty(30)daysorlonger,afterthegivingofwrittennoticeofsuchsuspension,thenon-defaultingPartyshallhavetheoptionofpurchasinganyportionoraHoftheOwnershipShareandaHapplicablelegalandequitableinterestsintheProjectofthesuspendedParty.SuchoptiontopurchaseshallbeexercisablebytheservingofwrittennoticeofintenttopurchasetothesuspendedParty.Afterapplyingappropriatecreditsduethenon.defaultingPartyformoniestheretoforeexpendedand/orexpenseincurred,plusinterest,onbehalfofthesuspendedParty,thepurchasepriceandtermsshaHbesubjecttonegotiations.ShouldthePartiesbeunabletoagreeonthenetpurchaseprice,andthetermstoconsummatethetransaction,withinthirty(30)daysofthegivingofwrittennoticeofintenttopurchase,themattershallthenbecomeanarbitrabledisputesubjecttotheprovisionsofSection17herein.SECTION17.ARBITRATION17.01IfadisputebetweenthePartiesshouldariseunderthisAgreementeithermaycallforsubmissionofthedisputetoarbitration,whichshallbebinding,ifbothPartiesagreetosucharbitration.17.02ThePartycallingforarbitrationshallgivewrittennoticetotheotherParty,settingforthinsuchnoticeinadequatedetailthenatureofthedispute,theamountoramountsofmoney,ifany,involvedinsuchdispute,andtheremedysoughtbythePartycallingforarbitration.17.03Withintwenty(20)daysfollowingdeliveryofthesaidwrittennotice,theParties,actingthroughtheirrepresentativesontheProjectCommittee,shalleachdesignatetwoarbitrators.Thearbitratorssoselectedshall,withintwenty(20)daysfollowingtheirselection,selectoneadditionalarbitrator.17.04IfthearbitratorsselectedbytheParties,ashereinprovided,shallfailtoselecttheadditionalarbitratorwithinthesaidtwenty(20)dayperiod,thenthearbitratorsselectedbythePartiesshallrequestfromtheAmericanArbitrationAssociation(orasimilarorganizationiftheAmericanArbitrationAssociationshould"notatthetimeexist)alistofarbitratorswhoarequalifiedandeligibletoserveashereinafterprovided.ThearbitratorsselectedbythePartiesshalltaketurnsstrikingnamesfromthelistofarbitratorsfurnishedbytheAmericanArbitrationAssociation,andthelastnameremainingonsaidlistshallbetheadditionalarbitrator.17.05AHarbitratorsshallbepersonsskilledandexperiencedinthefieldwhichgivesrisetothedispute,andnopersonshallbeeligibleforappointmentasanarbitratorwhoisanofficeroremployeeofanyofthePartiestothedisputeormay'otherwisehaveaninterestintheoutcomeofthearbitration.17.06ExceptasotherwiseprovidedinthisSection17,thearbitrationshallbegovernedbytherulesandpracticeoftheAmericanArbitrationAssociation(ortherulesandpracticeof'similarorganizationiftheAmericanArbitrationAssociationshouldnotatthattimeexist)~exceptthatifsuchrulesandpractice,conflictwithstateorfederallaw,specificallyapplicabletosucharbitrationproceedings,suchlawshallgovern.17.07ThefeesandexpensesofthearbitrationshallbesharedbythePartiesequally,unlessthedecisionofthearbitratorsshallspecifysomeotherapportionmentofsuchfeesandexpenses,whichotherapportionmentmayberequestedbyeitherParty.17.08IntheeventthatonePartyshallattempttocarryouttheprovisionshereinsetforthinregardtoarbitration,andsuchPartyshallnotbeabletoobtainavalidandenforceablearbitrationdecree,orifbothPartiesdonotagreetoarbitration,eitherPartyshallbeentitledtoseeklegalremedies.17.09Pendingtheresolutionofthedisputebyarbitration.LakelandshallproceedwiththeProject,includingaHConstructionwork,Operatingwork,orotherworkinamannerconsistentwiththisAgreementandPrudentUtilityPractice,andOUCshelladvancethefundsrequiredtoproceedwiththeProjectinaccordancewiththeapplicableprovisionsofthisAgreement.AmountsadvancedbyOUCpursuanttothisSectionduringthependencyofsuchdisputeshallnotbesubjecttorefundexceptuponafinaldeterminationthattheexpendituresweremadeinamannerinconsistentwiththis'AgreementandPrudentUtilityPractice.SECTION18.MISCELLANEOUS18.01GoverningLaw.Thevalidityinterpretation,andperformanceofthisAgreementandeachofitsprovisionsshallbegovernedbythelawsoftheStateofFlorida.ItisagreedthatthisAgreementisenteredintopursuanttotheprovisions,powers,andauthoritygrantedbyChapter361,FloridaStatutesof1975,knownas"TheJointPowerAct".18.02Notice.Anynotice,request,consent,orothercommunicationrequiredbythisAgreementshallbedeemedproperlygivenwhendepositedintheUnitedStatesMail,postageprepaid,andifgiventoLakelandshallbeaddressedto:CityofLakeland,DepartmentofElectricandWater Utilities,P.O.Box368,1000EastParkerStreet,Lakeland,Florida33802,marked:NOTICEtoDirector,andifgiventoOUCshallbeaddressedto:OrlandoUtilitiesCommission,P.O.Box3193,500OrangeAvenue,Orlando,Florida32802,marked:NOTICEto'ExecutiveVicePresident.Routinecommunicationsduringconstructionandoperationshallbeexemptfromthisprovision.18.03SectionHeadingsNottoAffectMeaning.ThedescriptiveheadingsofthevariousSectionsofthisAgreementhavebeeninsertedforconvenienceofreferenceonlyandshallinnowaymodifyorrestrictanyofthetermsandprovisionsthereof.18.04Severability.Intheeventanyoftheterms,covenants,orconditionsofthisParticipationAgreement,itsAppendices,andExhibits,ortheapplication'ofanysuchterm,covenant,orcondition,shallbeheldinvalidbyanycourthavingjurisdiction,allotherterms,covenants,andconditionsofthisAgreementandtheirapplicationshallnotbeaffectedthereby,andshallremaininforceandeffect.18.05Integration.ThetermsandprovisionscontainedinthisParticipationAgreement,includingAppendicesandExhibits,constitutetheentireagreementbetweenLakelandandOUCandshallsupersedeallpreviouscommunications,representations,oragreements,eitherverbalorwritten,betweenLakelandandOUCwithrespecttotheProjectandthisAgreement.18.06Cooperation.LakelandandOUCshallcooperatewitheachotherinallactivitiesrelatingtotheProject,including,withoutlimitation,thefilingofapplicationsforauthorizations,permitsorlicensesandtheexecutionofsuchotherdocumentsasmaybereasonablynecessarytocarryouttheprovisionsofthisAgreement.WithoutLakeland'swrittenconsent,OUCshallnotincuranyobligationwhichwouldorcouldobligateLakelandtoanythirdparty.18.07Assignment.DuringtheexistenceofthisAgreement,neitherPartyshallhavetherighttosell.lease,convey,transfer,orassigninanymannerwhatsoeveritsOwnershipShare,oranyportionthereof,intheProject,withoutfirstofferingsuchsale,leaseorotherconveyancetotheotherPartyuponthesametermsandconditionsasinaproposedsale,lease,orconveyancetoathirdparty.18.08Amendments.ThisAgreementmaybeamendedbyandonlybyawritteninstrumentdulyexecutedbyeachofthePartieshereto.18.09SuccessorsandAssigns.ThisAgreementshallinuretothebenefitofandbebindinguponLakelandandOUCandtheirrespectivesuccessors.ThisAgreementshallinuretothebenefitofandbebindingupontheassignsofLakelandandOUCwhensuchassignmentismadeinaccordancewiththeprovisionsofSection18.07.18.10ForceMajeure.LakelandandOUCshallnotbeliableorresponsibleforanyloss,damage,injuryorexpense(includingconsequentialdamagesandcostofreplacementpower)resultingfromorarisingoutofanydelayintheperformanceor,theinabiTitytoperform,anydutyorobligationrequiredbythisAgreementintheeventofaforcemajeureoccurrence.Theobligationtopaymoneyinatimelymannerisabsoluteandshallnotbesubjecttotheforcemajeureprovisions.Forcemajeureasusedhereinshallmean,withoutlimitation,thefollowing:naturaldisaster,prolongedstrikesand/orlockouts,sabotage,riot,fire,f(ood,war,explosion,oranyothersimilarextremecauseoreventreasonablybeyondthecontrolofeitherParty.ThePartysufferinganoccurrenceofforcemajeureshallremedywithallreasonabledispatchthecauseorcausespreventingthecarryingoutofthisAgreement;providedthatthesettlementofstrikes,lockoutsandotherlabordisputesshallbeentirelywithinthediscretionofthesaidParty,andit,shaHnotberequiredtomakesettlementofstrikes,lockoutsandotherlabordisputesbyaccedingtodemandswhichareunfavorable,inthejudgmentofthesaidParty.18.11Time.LakelandandOUCagreethattbneisoftheessenceinthisAgreement.SECTION19.RETIREMENTORABANDONMENTOFPROJECT19.01UponRetirementoftheProjectinaccordancewiththetermsofthisAgreementoruponAbandonmentoftheProjectinaccordancewithSection15,OUCshallcauseitsinterestandthatoftheCityofOrlandointherealpropertyconveyedunderSection2.03hereoftobereconveyedtoLakelandinexchangeforthepaymenttoOUCbyLakelandofthesumoriginallypaidbyOUCtoLakelandforsuchinterestinthatrealproperty.SECTION20.EFFECTIVEDATEANDTERM20.01ThisParticipationAgreementshallbecomeeffectiveonApril4,1978,andterminate(1)attheexpirationof50yearsfromthedateofexecution,or(2)atsuchtimeasMcIntoshP3isretiredfromserviceandallattendantobligationsunderthisAgreementhavebeenfulfilled,whicheveroccursfirst.SECTION21.EXECUTIONOFAGREEMENTINWITNESSWHEREOF,thepartiesheretohavecausedthisAGREEMENTtobeexecutedbytheirdulyauthorizedofficers,andcopiesdeliveredtoeachparty,asofthedayandyearfirstabovestated.ORLANDOUTILITIESCOMMISSIONBy:PresidentATTEST:SecretaryCITYOFLAKELAND,FLORIDABy:ilfayor.CommissionerATTEST:CityClerkApprovedastoformandcorrectness:CityAttorney,Lakeland,Florida EXHIBITICOMMONUSEFACILITIES1.Firewatersystemandelevatedtank.2.Aircompressors.3.ElectricaltiesbetweenezistingunitsandUnit3.4.Auziliarysteamsystemcrossconnections.5.Warehousing.6.Chemicalstorage.7.FuelOilUnloading.8.Roads.9.Fenceandgatesecurity.10.Wells.11.Offices.12.Transportation.13.FuelOQStorage.14.Sanitarysewers.15.Maintenanceshops.16.Land.17.MakeupWaterInterface.18.ControlRoom.EXHIBIT2EXTERNALFACILITIES1.Lakeland'senergymanagementsystemadditions.2.Sewageeffluentpipeline.3.Railroadspur.EXHIBIT3LEGALDESCRIPTIONOFPLANTSITEThatpartoffractionaleastYiofwestl4ofnorthwestViwhichilessouthwesterlyofLakeParkerDrive,andalsothewestl4ofthenorthwest14,allbeinginSection4,Township28S,Range24E,andalsoU.S.Governinentlots1and2inSection5,Township28S,Range24E,lessandexcept:BeginatthenorthwestcornerofsaidU.S.Governmentlot2,thesamebeingthenorthwestcorner,ofthenortheastNofsaidSection5,runthenceeastalongthenorthlinethereofadistanceof864.25feet,thencesouth1365.59feet,thenceeast330.0feet,thencesouthtoLakeParker,thencewesterlyalongLakeParkertothewestlineofsaidnortheasti/i,thencenorthalongsaidwestline2640feetmoreorlesstothepointofbeginning,andalsothesoutheastNofthesoutheastNofSection32,Township27S,Range24E,andalsobeginning664.25feeteastofthenorthwestcornerofU.S.Governmentlot2inSection5,Township28S,Range24E,runthencenorth660.0feet,thenceeast1417.38feettothewestlineofthesoutheastViofthesoutheastNofSection32,Township2ZS,Range24E,thencesouthalongsaidWestlineadistanceof660.0feettothesouthwestcornerofsaidsoutheastNofsoutheastN,thencewest1412.14feettothepointofbeginning,beinginSection32,Township27S,Range24E,andalsothesouthwesti/iofthesouthwestNofSection33.Township27S,Range24E,alloftheabovedescribedpropertybeingsubjecttothatcertainroadright-ofwayasdeededtoPolkCounty,FloridaanddescribedinOfficialRecordBook1098,pages946,947and948ofthePublicRecordsofPolkCounty,Florida.,PowerPlantEXHIBIT5-'PROJECTCOSTEngineeringFeeSewageEffluentSystem230KVSwitchyardRailroadspurSolidRefuseBurningFacilityEscalationTotalProjectCost3147,760,0006,100,0005,400,0003,573,0002,200,0002,000,00023,390,003190,423,0000EXHIBIT6PROJECTFACILITIES1.Turbine.Generator,auxiliaries.2.Boiler,boilerfeedpump,fans.3.Scrubber,limestonehandlingfacilities.4.Precipitator.EXHIBIT4DESCRIPTIONOFPROJECTTheProjectisa364megawattsteam-electricgeneratinplanttobejointlyownedbytheCityofLakelandandOrlandoUtilitiesCommission.ThelocationoftheProjectisonthenorthsideofLakeParkerinLakeland,Florida,atthesiteoftheexistingMcIntoshSteam.ElectricGeneratingPlantwhichconsists'oftwogeneratingunits,namelyMcIntoshUnits1and2.TheProjectwillbeconstructedadjacenttoandcontiguouswiththeexistingunitsandshallbedesignatedMcIntoshUnitS3.TheProjectshallusecoalasitsprimaryfuelandshallbecapableofburningS6fueloiLTheProjectshallalsohavethefacilitiesforandthecapabilityofburningsolidrefuseasafuelsupplement.TheProjectshallutilizecoolingtowerstocoolthecondenserwaterandthemakeupwaterforthecoolingtowersshallbesuppliedfromLakeland'ssewageeffluentthrough.apipingandeffluenthandlingsystemtobeconstructedaspartoftheProject.ThecoalistobedeliveredtotheProjectbyrailroad,usingthe"unittrain"concepttotransportthecoalfromthecoalsupplier.Thecoalwillbeunloadedwithatrestleanddumpingarrangementwhichallowsunloadingthecarswithoutstoppingthetrain.TherailroadspurandallcoalstorageandhandlingfacilitiesshallbepartoftheProject.TheProjectshallhaveboilerfluegascleaningfaciTitieswhichshallincludealimestonetypescrubberandanelectrostaticprecipitator.TheProjectshaHhavefaciTitiesforburningsolidrefusewhichincludelimitedstorage,handlingand/orclassifyingequipment,conveyingand'hreddingequipment,anfacilitiesforinjectingtherefusematerialintotheboilefurnace.TheelectricaloutputoftheProjectshallbeat230KV.230KVswitchingfacilitiesshallbeincludedintheProjectfordeliveringforeachparticipantitsproportionateshareoftheoutputfromtheProject.TheProjectshallincludeanyotherfacilitiesthatarenecessaryordesirableforthesafe,efficient,economic,andreliableoperationofthesaidsteam.electricgeneratingunitandtheassociatedfaciTities.

6.Step.uptransformer.6.Auxiliarytransformer.Z.Start.uptransformer.8.Boilerfeedpumpturbine.9.Coolingtower,circulatingsystem.10.SewageeffluentlineandhandHngfacilities.11.SolidrefuseburningandhandHngfacilities.12.Railroadspur,trestle,unloadingfacilities.13.CoalhandlingandstoragefaciHt(es.14.230KVswitchingfacilities.15.Buildings,appurtenances.16.Land,landrights.1Z.SludgeandashhandHngfacilities.EXHIBIT7REQUIREDPROJECTPERMITS1.StateofFloridaPowerPlantSiteCert(fication.2.FederalEnvironmentalProtectionAgency(EPA)NewSourceReview,andPermittoConstruct.McINTOSHPOWERPLANTEngineeringFeesPaidTobereimbursedbyBondProceeds19ZZ,December2,1977,December14,1977,December22,1977andDecember29,1977respectivelyandyourProposalNo.P124640datedJanuary"11,1978forthesumof535,550,000.ItisunderstoodbetweentheCityofLake)andandtheBabcock&WilcoxCompanythattheCitycancancelthisletterofintentasofthefollowinglisteddatesandnotbeobligatedforanychargesinexcessofthelistedTotalCancellationChargescorrespondingtothesaiddates.CancellatloaDateTotalCancellationChesApril4,197854)-May1,197850,000June1,1978100,000July1,19Z8160,000August1,1978200,000September1,1978300,000October1,1978600,000November1,1978760,000December1,19781,000,000January1,19791,250,000WeexpecttobeginnegotiationswithyourcompanyinthenearfuturetoarriveatthetermsofacontractbetweenBabcock&WHcoxandtheCityofLakeland.Verytrulyyours,R.V.YoukeyCityManagerDatePaid~Paee11-14-77Chas.T.Main,Inc.11-16-77Dawkins&Associates,Inc.1212-77Chas.T.Main,Inc.Aoaa2020,00060069,600July8,1977GeneralElectricCompany103Century21DriveSuite101Jacksonville,Florida3221119-782-7-782.1?.783-7-78Chas.T.Main,Inc.Chas.T.Main,Inc.Edwards.PanterSurveying&Engineering,Inc.Chas.T.Main,Inc.101,320178,8004,000226,480$600,600LettersofIntent(attached):GeneralElectricCompany(Turbinegenerator)514,000,000Babcock&WilcoxCompany(Boiler)36,660,000March21,1978TheBabcock&WilcoxCompany500SouthlandDriveBirmingham,Ahbama35226Attention:T.O.JohnsonBirminghamSalesGentlemen:

Subject:

CityofLakelandC.D.McIntoshJr.~PowerPlant,Unit3SpecificationNo.3297-1.3020ThisletterisyournoticeofourintenttopurchasefromyoutheboilerandgascleaningequipmentinaccordancewiththeCityofLakelandSpecificationNo.3297-1-3200,datedOctober24,1977,asamendedbyAddendaNo.1through7,datedOctober27,1977,November3,1977,November9,Attention:RoyE.ElliottSalesEngineerGentlemen:Re:CityofLakelandMcIntoshPlant,Unit3SpecificationNo.COL-1ThisletterisyournoticeofourintenttopurchasefromyouaturbinegeneratorequipmentinaccordancewiththeCityofLakelandSpecificationNo.COL-1datedJune6,1977asamendedbyAddendumNo.1datedJune7,1977andyourproposalNo.LTSD.2519dated-June22,1977FGK.forthesumof$10,931,496withtheoptionofchangingratingusingthepricin'gstructureineffectbeforeJuly10,1977toa300MWunitoranyothersizeasmaybedeterminedatalaterdate.ItisunderstoodbetweentheCityofLakelandandGeneralElectricCompanythatintheeventtheprojectisabortedforanyreason,theCityofLakelandcancancelthisletterofintentwithnocosttotheCityofLakeland.Verytrulyyours,R.V.YoukeyCityManager

~IIIFPCForm1-MRevEd(12-77).ApprovedbyOMB38-RO316Expires12-31-79+asorg~4~o;.'-'=jj'Pg*tMUNICIPALELECTRICUTILITIESII>~4"J(HavingAnnualElectricRevenuesof8250,000orMore)rovi~.OFORLANDOUTILITIESCOMMISSION(Exactlegalnameofrespondent)r<ZDFRALENEHGYiRFGUK.ATQBVCQPAM]SS]QNFORTHE'f+~~~QPjQPJD!PQDECEMBER31$8.79

FPCForm1-isvunicipalutilities,annualelectricrevenuesof$250>000ormoreANNUALREPORTTOTHE'EDERALENERGYREGULATORYCOMMISSIONFortheYearEndedDmbe311979OFORLANDOUTILITIESCOKIISSIONExactlegalnameofrespondent500S~OrangeAvenue,P~O.Box3193,Orlando,Florida32802Addressofprincipalbusinessofficeat.endofyearGENERALINSTRUCTIONSAnofIglnalandthreeconformedcopiesofthisrepogtform,completedInthebestmannerpossiblefromavailablerecordsandvcrlfled,shallbefliedwiththeFederalKnefgyRegulatorycommission,washingtonD.C20426,onorbeforethelastdayofthethirdmonthfollowingthecloseofthecalendarorotherestablishedfiscalyear,byeachmunlcipagtywhichIsengagedInthegeneration,transmissionordistributionofelectrlchyandwhoseannualelectricopemtlngrevenuesamounttoS250,000ormora.OnecopyofthereportshouldberetainedbytherespondentinitsfilesTheconformedcopiesmaybecarboncopies.Iftherespondentpublishesfinaneialandoperatingstatementsofitsutilitydepartmentsubmitthreecopiesofsuchstatementswiththisreport>>Iftherespondentmaintainsaonelinegeographicmaporschematicdiagramofitsprincipallinesandsubstatlons>onecopyshouldbcsubmittedwiththisrepo.t>>Accountnunbersandtit)esusedinthescheduleshereinrelatetoaccountnumbersandtitlesintheUniformSystemofAccountsPrescribedforPublicUtilitiesandLicensees(ClassAandClassB)~"Acopyofthissystemwillbefurnisheduponrequestfortheinformationandguidanceofrespondentinthepreparationofthisannualreport>>EXCERPTSFROMTHELAN(FederalPowerAct,16U.S.C.,791a-825s)ngcc>>3~ThewordsdefinedinthissectionshallhavethefollowingmeaningsforPurPosesofthisActstowitsemunicipalitynmeansacityscounty>irrigationdistrictsdrainagedistrictsorotherpoliticalsubdivisionoragencyofaStatecompetentunderthelawsthereoftocarryonthebusinessofdevclopingstransmittingsutilizingsordistributingpowcrf~+>>n"Scc311>>InordertosecureinformationnecessaryorappropriateasabasisforrecommendinglcgislationstheConnissionisauthorized'anddirectedtoconductinvestigationsregardingthegeneration>transmissionedistri-bution>andsaleofelectriccnergyshoweverproduced,'throughouttheUnitedStatesanditspossessionse>>hethcrornototherwisesubjecttothejurisdictionoftheCommission,includingthegenerationstransmission>distributionsandsaleofelectricenergybyanyagencysauthoritysorinstrumentalityoftheUnitedStatcssorofanyStateormunicipalityorotherpoliticalsubdivisionofaState.Itshallssofarasispracticable>secureandkeepcurrentinformationregardingtheownershipsoperationsmanagementsandcontrolofallfacilitiesforsuchgeneration>transmission>>distributionsandsalefthecapacityandoutputthereofandthcrelationshipbetweenthetwofthecostofgenerationstransmissionsanddistributionitheratesschargessandcontractsinrespectofthesaleofelectricenergyanditsservicetoresidentialsruralscommercialsandindustrialconsumersandotherpurchasesbyprivateandpublicagencies)~>>>>"GENERALINFORMATION1~Same,title,addressandtelephonenumber(includingareacode)ofthcpersontobecontactedconcerningthisreport<<s-E~R.Neff.DirectorofGeneralAccount423-9100extension2562Statethcclassesofutilityandotherservicesfurnishedbyrespondent.duringtheyear>>Electric6WaterAevEd{f2771

~~~~~~~~~~~I~~Io~I'I,I~~o~~'~~~~~Io~~~~~~~I'IIyoI~

~~n<<go*ewo%v4k.'U4~*euAnnual'eportofORLANDOUTZLZTZESCOHHZSSZONYearendedDECEfd8ER31'19CONDENSEDINCOMESTATEMENT-FortheYearA123567B9,1011121314J5ElectricutilityoperatingincometOperatingrevenucaOperationexpensesMaintenanceexpenses,~~..~.DepreciationandamortizationTaxesandtaxequivalentsTotalelectricoperatingexpensesNetoperatingrevenues~~~e~~a~~\~~~~~~~~e~~~~~~~~~~~~~n~~~~~~~~~~~~~~~~~~~~~~~~~~Allowanceforfundsusedduringconstructionoo~~~~~~~~~~~~~~~.GrossincomeIncomedeductionsI~~~~~~~~~~o~~~~~~~~~o~~~~~~~o~~oincomefiomplantleasedtoothers~~~~~~~~~~~~~~~~~~~~~~~~Electricutilityoperatingincome............,.......,,..........,~........~Otherutilityoperatingincome(utilitydepartmentsotherthanelectric-specify)~~~~~~~~~~~~~~~~~~~~~eNatel:.~~~~~~~~~~~~~~~~Totaluti)ityoperatingincome...,.,~,~<<Otherincome113,715,8848,86,9326,139,794',578,7624,130,96098,706,44815,009,436180,89315,190,2892,758,00617,948,2955,986,68323,934,97816171B1920interestonlong-termdebt<<Otherigcomedeductions(seesch.pg.4,Exp.forCert.CivicsTotalinconedeductionsincomebeforeextraordinaryitems,.....~.................~..Extraordinaryincome(secfootnote(i)page4)Extraordinarydeductions(seefootnote(i)page4).~,iietincomeI~~~~~~~~~o~~~~~~~~~~Political&RelActivities)~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~7,826,60736,1017,862,70816r072r2'7016,072,270ineNo~RECLAIM)EAHHiNGSitern(a)Amountb313234353637.3BBalancebeginningofyearAtaounttransferredfroninconeaccovntoitiscellaneouscreditsAuthorizedcashdistributiontomunicipality(seenote(h)MiscellaneousdrbitsBalancecndofyear...onpage4)118,437t16716,072,27010,255,000124r254r437ELECTRICSALESDATAFORTHEYEARoneNo.41424445467950ClassofService(a)Residentialsales...,....ConmercialandindustrialsalesSmall(orCommercial)see1/belowl.arge(orindustrial)see1/belowPublicstreetandhighwaylightingOthersalestoultimateconsumers...Totalalestoultimateconsumers,Salesforresale...,~......,,,...,,,TotalsalesofelectricenergyOtherelectricrevenvcs~~TotalelectricoperatingrevenuesRevenues(b)35,423,74237,942,9196,408,8901,091,0281,076,05081,942,62931,455,487113,398,116317,768113,715,884Kilowatt-hours(c)885,910,711AvgNoofCustoeaerkd72,913974,223,733201,995,80718,909,38425,977,3742,107,017,009981,753,0003,088,770,0099,9203220,2023,808106,87510106,885xxxxxxxxxxxxxxxxxxxxxx.xxxxxxxxxxxxxxxxxxxxxxxXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXX:CXXXXXX11glClassiticationotCooetreialandInd~striaLs~ltsaccordingtoSnail(orCoaaerclal)endtarge(orIndustri~1]naybeaccordingtothohealsofclseslIIcatoonr>>ularlyustd'bytherosPondent,IlovtveroIIsvchregvlarlyusedclassificationisbas~dondenandandthodivl~ionbetvtenmalLandLgrgelein~aces~ot1000ILvde<<andthenforpurposesntthisreporttoeclassiticatoonshel'1bea<<alit1000hudeoandorleastandlorgttdteendIneoceneof1000bv,Xurbtrofcvstoaersshouldb~report~donthtsealsotnvabtrofottersplv~nveberoffl~trateeccountsteocoptthatvherestparatenet>>resdlngeLeetorbillingWrptststonecvatooershalLbecountedtortachgroupofetttrsao~ddtdIhttverag~nuebtrotcvstoeerseeanstheaverageofthtLdfigures~tth~clos~ot~achnontheIfth~cuotoeercountInthtre~idtntialserviceclassificatoonInclu".oscuttt~tracou~tedsergtheaoncehfcwsesfspeci~1~orvices,suchaeeatersealing,~tc,IndicateIn~footnot~thenutbarnfiuchdvplicat~cuot<<eraincludedInthectsssIflea(loneExplainsignificantamounts.vRoefIP-71L AnnualreportofORLANDOUTILITIESCOPLiIISSIONYearendedDECEMBER31>1979EPENDITURESFORCERTAINCIVIC,POLITICALANDRELATEDACTIVITIESReportbelowallexpendituresincurredbytheres-~pondentduringtheyearforthepurposeofinfluen-cingpublicopinionwithrespecttotheelectionorappointccentofpublicofficialscreferendaclegis-lationn,orordinances(eitherwiihrespecttothepossibleadoptionofnew,referendaclegislationorcrdinancesorrepealoraodificationofexistingre-ferenda,legislationorordinances)orapproval,nodificationcorrevocationoffranchises;orforthepurposeofinfluencingthedecisionsofpublicofficials>butshallnotincludesuchexpenditureswhicharedirectlyrelatedtoappearancesbeforeregulatoryorothergovernccentalbodiesinconnect-ionwiththereportingutility'sexistingorproposedoperations.2AdvertisingexpendituresincludedinthisSchedule3~4I5~shallbeclassifiedaccordingtosubheadings,asfollowsi(a)radioctelevlsioncandnotionpicturadvertisingj(b}newspapercaagazinecandpaecphleadvertising;(c)lettersorinsertsincustoaerscbills;(d)insertsinreportstostockholdersj(e)newspaperandnagazineeditorialservicesj.and(f)otheradvertising.ExpenditureswctlinthedefinitionofInstruction(1)cotherthanadvertisingshallbereportedac-cordingtocaptionsordescriptionscclearlyindi-catingthenatureandpurpose.oftheactivityIfrespondenthasnotincurredanyexpenditurescon-tenplatedbyInstruction(1)csostateForreportingyearswhichbeginduringthecalendaryear1964onlycninoraaountsccaybegroupedbyclassesifthenuccberofiteassogroupedi-shownLin123457e910Iten(aOrlandoAreaChamberofCommerceFloridaElectricPowerCoordinatingCommitteeSoutheasternElectricCouncilAmericanWaterworksAssociationTitusvilleChamberofCommerceIndustrialDevelopmentCommissionAccount(b)7,50022,1781,4771,5723743,00036,'101'THEFOLLOMINCEXPI.ANATIONSAREFURNISHEOFORTHEINFORMATIONOFPFRSONSNOTFAMILIAR'vlITilTHEACCOUNTSINOICATEO.(a)ADVANCESTOMUNICIPALITY:Thisaccountisdesignedioincludetheamountofloanssndadvancescnadebytheuilliiydepartmentiothemunicipalityor'isoihecdepartments,whensuchloansncadvancesscesubjecttorepaymentbuinoisubjectiocucceriseiilement.(b)RECEIVABLESFROXIMt'NICIPALITYcThissccouniisdesignedioincludesllchacgesbytheutilitydopsctmeniagainstthemunicips!iivocjcsotherdepsclmeniswhichscesubjectiocurrentsettlement.(c)INVESTAIENTOFMUNICIPALITYiThisaccountisdesignedioi~eludetheinvesimentofthemunicipalityinitsutilitydcpscimeni,whensuchinvesimeniisnoisubjectiocashsetileneniondemandocsisfixedfuturetime.Includeheceinthecostofdebi.fereuiiliiyplsniconstructedorscquicedbythenunicipaliiysndmadeavailablefocuseoftheuii)itydepscimrn:,cashicsnsfeccediotheutilitydepacic.".eniforworkingcapital,sndotherexpendituresoi'sninvestmentnature.(d)CONSTRUCTIVESURPLUSORDEFICITsThissccquniisdesignedioincludeamountscepcescniingihoexchangeofsecvices,supplies,eic.,beiivientheutilitydepartmentsndthecnunicipsliiysndiisotherdepartmentswithoutchscgeorat'sreducedi&scge.Ghscgesiothisaccountwouldincludeutilitysndoihecservices,supplies,eic.,fucnishedbytheutilitydepartmentiothenunicipsliiynciisotherdepartmentsv:ithoutcharge,ortheamountoftheredactioniffucnishedsiaccducedcharge.Ccediisiotheaccountwouldconsistofservices,supplies,officespace,cic.,fucnishedbyihomunicipalityiotheutilitydepacimeniwithoutchargeorthesmnuriofthereductioniffucnishedatsreducedcharge.!IETAINEDEARNINOSiThissccouniisdesignedioLncludethebalance,eitherdebitorcredit,ofsppcopcisicdorunop-pcopcisieiiretainedearningsoftheutilitydepartnentarisingfroaearnings.(f)ADVANCESFROX1XIUNICIPALITYcThissccouniisdesignedioincludeibeamountofloanssndadvancesmadebythecnunicipsliivocics.ichecdepscicnenisiotheuiiliiydepscicneniwhensuchloanssndadvancesaresubjectiocepsycsentbuinoisub)eciiocuccenisettlement.(g)PAYABLESTOMUNICIPALITYcThisaceous;isdesignedioincludesmounispayablebytheutilitydcpsctmeniiothemunicipsici'yoriisvihecdepartmentswhicharesbjeciio.cuccenisettlement.(h)AUTHORIZEDCASHDISTRIBUTIONTOXIUNICIPALITYiThisaccountisdesignedioincludethecashdistributionsau-ihocizediobrmsdrIoih>>municipalityouiofiheearnedsurplusoftheutilitydepartment.(i)XTRAOROIIiARYIliCOMEi(OEOUCTIONS)Theseaccountsaredesignedtoincludethoseitensrelatedtotransactionsofanonrecurringnaturewhicharenottypccalorcustooarybusine'ssactivitiesoftheutilityandwhcchwouldsignificant-'gdistortthecurrentyearisretcncoaeifreportedotherthanasextraordinaryitens.

AnnualReportofORLANDOUTILITIESCOMMISSIONYEARENDEDDECEMBER31,1979SALESOFELECTRICITYFORRESALEPAGE-5LINESALESTO(a)(b)(c)(d)(e)KILLOWATTHOURSREVENUESAMOUNT()PERKm(h)cents1234567891011121314FP(P)Fla.PowerCorp.'la.Power6Light.CityofTallahasseeCityofLakelandTampaElectricCO.CityofKissimmeeCityofSebringCityofGaiqesvilleCityofSt.CloudCityofVeroBeachLkWorthUtilAuthy.CityofHomesteadNewSmyrnaBch.Util.JacksonvilleElecAuthy"CityofFt.Pierce376,926,000355,919,0004,132,000432,00034,613,00014,097,0009,520,0001,387,00014,996,0004,683,0002,512,0001,911,0001,230,000159~384g00011,000$11,528,8319,585,235124,28413,5181~498,029458,823353,50053,699526,668117,11870,63947,95762,4597,014i3154123.062.693.013.134.333.253.713.873.512.502.812.505.084.403.74981,753,000$31,455,4873.20

~I~~I~~~~~~~e~~I~~~I~~~I~~~~~~~~~~~~0I'I~~~~~~f~0~~~~IIII~I~III~~~II~~~~4soII~o'I~'~~I~~~~~

~'~~~~~~P~I~~~~~~~~~~~~~I~II~~I~~o~I~~~I~~~I~~~~~~~I~~~~~~~~I~III~~~~II~III~III~I~~~~I~~~~~I~~~~~~~~~II~~I~~~I~~~~I~~I~~~~P~~~~~~~~PI'Il~~~~IP~~II~II~III~II~~I~IImmmSSIISSIR~(I~~PII~0~PNPP~0II~~~('~~Io~I~~~~~~~I~~~~~III~~~~~I~~~I~I~~~~~~~~~I~~~~~~~~%~~~P~PP~~~~~~~~~'~~~~P~44~~~~~I'~~~I~I~P~~~~~

Repo"4<<ORLANDOUTILITIESCOMMISSIONYearendedDECEMBER31~1979TAXES,TAXEQUIVALENTS,CONTHIBUTIONSANDSERVICESDURINGYEARReportbelowtheinformationcalledforrespectingontributionsandservicestothemunicipalityorthergovernmentunitsbytheelectricutilityandJconversely>bythosebodiestotheelectricutility~Oonotincludes(a)loansandadvanceswhicharesubjecttorepaymentorwhichbearinterest>(b)pay-mentsinretirementofloansoradvancespreviouslymade~(c)contributionsbythcmunicipalityoffundsorpropertywhichareofthenatureofinvestmentintheelectricutilitydepartments2iEnter,incolumn(c)thetotalcontributionsmadeorreceivediShowincolumn(d)amountsincludedincolumn(c)whichhavebeenaccountedforintheres-pondent'sfinancialstatementszi~ei>balancesheetsincomeaccountsearnedsurplus,operatingrevenuesfoperatingexpenses~etc+~andincolumn(e)showamountswhicharcnotaccountedforinrespondent~sfinancialstatementsForthoseamountsnotincludedinrespondent'sfinancialstatementscexp)aininafootnotethereasonfortheiromission~3~TaxesincludedinthisscheduleshouldbelimitedtothoseamountschargeabletooperationsoftheelectricutilitydepartmentsExcludegasolineandothersalestaxeswhichareincludedinthecostoftransportationandmatcrialsi4iTaxequivalentsincludedinthisschedu)eshouldbeamountswhichareunderstoodtoconstitutepaymentsequivalenttoorinlieuofamountswhichvouldbe~paidiftheelectricutilitydepartmentveresubjecttolocaltaxleviesiAmountofContributionorValueofServicesItemTaxcquIvalents~~~~~~~~~~~~~~~~~~~~~~~~Togeneralfundsofthemunicipality...Other(specify,)Pa~gnttoCO.un~~~~~~~~By'theElectricUtilitytotheMunicipalityorOtherGovernmentUnitssTaxes~~~~~o~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~kvh1~000~sXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXTotal1,176,4482,954,5128,306,550261,004IncludedinFinancialStatementsd1,176,4482,954,5128,306,550261,004HotincludedinFinancialStaicmentsc5~~~~~~~\~~~~~~~~~~~~~~~~~~~~t~~~~~~~~~~6Totalcontributions.....~,...,........,.....,XXXXXXXXXXXXXXxxxxxxxxxxxxxx126985141269851410111213Streetandhighwaylighting...,...........,..knicipalpumping............~o.......oo~..o.o~Othermunicipallightandpower....,...,.......OtherelectricserviceRonelectricservice(specifye)COm+UterSvos.MiscellaneousServices~~~~~~~~~~~~~~~~~~~~~~~~~~~~~Totalcontributionsandservicesbythe18,909,384NotAvailableXXXXXXXXXXXXXXXXXXXXXXXXXXXX1,091,0282,074,5759,99622,617.3,198,2161,091,0282,074,5759,99622,617319821614electricutility......"~~~~"~o~"~~o~~~~15,896,73015,896,73015Bytheiiunicipality-orOtherGovernmentUnitotheElectricUtilitysForoperationsandpropertymaintenancets16Other(specifyc).?~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~0~~~~~18Totalcontributions19202122232425Officespace.........;.....,....Vatcr~~~~~~~~~~~~~~~~~~~~~~~~~~~Engineeringservice.~,..........Legalservice...,...,,,.....,...Otherservice(specifye)PO~QQ,Corn+uter.&Misc.Svcs.Totalservices~Totalcontributionsandservithemunicipalitycesby3,165,60332,6133,198,2163,198,2163,165,6032,613,198,213198'1HetContributionsandServicesbytheElectricU!ilitytothcMunicipalityorOtherGovernment2?Units(line14minuslinc"26)Electric8,306,550Hater1,948,45010,255,00012,698,51412,698,51Use,insertsheetifnecessary.Rev(12-69)

~~~~~g~~~I~~~~~~~~~~~~~~~I~~~I~~~~~~II~~~o~~II~~I~~~~~It5~~~~~I~~I~~\~I~~o~~'I~II'~~~o ORLANDOUTILITIESCOKIISSION,..TearendedDEC31~STEAM-ELECTRICGENERATINGPLANT~xpcnsesdonotincludePurchasedPower,SystemControlandLoadDis.patching,"andOtherExpensesclassifiedas"OtherPo>>crSupplyExpenses.-9.ForI.C.andG.T.plantsreportOperatingExpenses,hcc'ts.Nos.5<8and5<9online26"ElectricExpenses,"andMaintenancehrc'u.Nos.553and554onlinc'2"hlsintenanceoCElectricPlant."IndicateplantsdesignedCorpeakloadscrvicc.DesignateautomaticallyoperatedpLnts.IO.Ifanyplantisequippedwithcombinationsofsteam,hydro,in-ternalcombusttonorgasturbineequipment,eachshouldbetcponedasa'separateplan>>Ho>>ever,il'gasturbineunitfunctionsinacom-STATISTICStLargePlants)(Cantintsed)binedcycle'operationwithaconventionalsteamunit,thegasturbineshouldbeincludedwiththesteamplant.II.Iftherespondentoperatesanuclearpowergeneratingplantap-pend:(a)abriefexplanatorystatementconcerningaccounungforthecostofpowergeneratedincludinganyattributionofexcesscoststoresearchanddevelopmentexpenses;(b)abricCexplanationofthefue)accountingspecifymgtheaccoumingmethodsandtypesofcostunitsusedwithrespecttothevariouscocnpancntsofthcfuelcost,and(c)suchadditionalinformationasmaybeinformativeconcerningthctypeofplant,kindoffuelused.andotherphydcalandoperatingcharactcristicsoftheplant.na3.anver(d)rysta3.ver(~)cl~No.SteamNuclearConventional19601974638,800566,0008,760~619,000610,000972,943,366,0001977197713,800*13,00013,00060,471,000"M~Tf'a@M~~""~rP~QcVc<'3.~1,~)ski"c.,~p~txSx~~p@,p~~r~~<<4:35b7I'10II121314)5lb~~a~~~eet~r;.>e",;c",1,:<<seepw<<.S<<cv-9>Iw't>>s~%x~ev'ctc~M~'CF~SwM~3~vcst%c~*OUChasanundiviedownershipinterestof16015%(13.8((())asatenantincommon'nFloridaPowerCorp'sCrytalRiver03Nuclearunit.19202123'>>4232d2723<<9al313233Cool)4CF11,524,4321,028OilBBL2,981,55149,88NUCLEARIILLIONB640,2301UGasOilCoalOil3435363738391.5921.5921.548$0.022510,4016.1316.130.1992.560.1994$0.0021010,587404142 hnnvotreportofORLANDOUTILITIESCOiMISSIONYeorendedDEC31,19.7rf,HYDROELECTRICGENERATINGPLANTSTATISTICS(LargePlants)I.I.argrplantsarehyclrciplantsuf10.000kw.ormoreofinitalledcapacitylnamrplateratings).3.Ifnetpeakdemandfor60minutesisnotavailable,givethatwhichisavailable,specifyingperiod.2.Ifanyplantisleased.operatedunderalicensefromtheFederalPowerCoinmission,oroperatedasajointfacility,indic'atrsuchfactsbythr.usrofasterisksandfootnotes.IflicrnsrhIrrnjrngivrprojectnumbrr.4.Ifagroupol'mployeesattendsmorethanonegenerat-ingplant,reportonlineIItheapproximateaveragenumberol'mploycesassignabletoeachplant.LineHo.FPClicensedProiectNo.ondPfontNome:Itemlol(c)2345789tolll2l3I415td,l7t8l9202t222324252b272829303l3233hindofplam(run-of-riverorstorage)Typeofplantconstruction(conventionalorout-door).Yearoriginallyconstructed.....Yearlastunitwasinstalled.....Tocalinstalledcipacity(gcncratornamepbiteratingsinkw.)Netpeakdemandonplant-kilowatts(60min-utes)Planthoursconnectedtoload...iietplantcapability,kilowans:la)Underthemostfavorableoper.conditionslb)Underthecnottadverseoper.conditionshvcragenumberofemployees....Netgeneration.exclusiveofplantuse.........Costol'lant:Landandlandrights.Structuresandimprovements.............Reservoirs,dams,andwaterways,..Equipmentcosts.Roads,railroads,andbridges.Totalcost.Coteperkw.'ofinstalledcapacity(LincS).ProductionexpensestOperationsupe.rvisionandcngincering.Waterforpower.HydraulicexpensesElectricexpcnscshiisc.hydraulicpowergenerationexpenses...Rcnts.Maintenancesupervuionandengineering.Maintenanceofstructures....Maintenanceofreservoirs,dams,andwater-waysMaintenanceofelectricplant..Maintenanceofmisc.hydraulicplant.Totalproductionexpenses.Expensespernctkwh.(hfills-2places)...NOTAPPLICABLE@'~C4~~w%'~+"%<<MRev(IO-67)'0 ORLANDOUTILITIESCOMMISSION...YearonctedDEC7931~19....HYDROELECTRICGENERATINGPLAN>STATISTICS(LargePlants)(Continued)5.Theitemsundercostofplantrepresentaccountsorcom-binationsofaccountsprescribedbythcUniformSystemofAccounts.ProductionexpensesdonotincludePurchasedPower,SystemControlandLoadDispatching,andOtherEx-pensesclassifieas,"OcherPowerSupplyExpenses."6.Ifanyplantisequippedwithcombinationsofsteam,hydro,internalcombustionengineorgasturbineequipmcnt,eachshouldbereportedasascparatcplant.I~)UneHo.NOT::APPLICABLETS910111213'14'15tdty1$192021222324252d2T2a2930313233NRev10-67

~~~II~~~~~~t~~~~.1~~~oo0~~~~~~~~~~I~~~~~~~~~00~~o~0 I.Smallgeneratingplantsarcsteamplantsoflessthan5,000kw.;internalcombustionandgasturbine-p)ants,con-ventionalhydroplamsandpumpedstorageplantsofless:honI0.000kw.installedcapacity(nameplaterating).2.DcsignalcanyplantIcascdfrom'others,operatedun-i.cralicensefromlhcFcdcralPowerContsitission,orop-G'ENH)ATIHGPLANTSTATISTICS(Sttto)lPfattts)cratedasajointfacility,andgiveaconcisestatcmcntofthcfactsinafootnote.Iflicensedprojectgiveprojectnumberinfootnote.3.IJstplantsappropriatelyundersubheadingsforstcam,hydro,nuclear,internalcombustionandgasturbineplants.Fornuclear,sccinstructionIO,page432a.4.IfnetpeakdemandI'or60minutesisnotavailablc,givethatwhichisavailable,speci('yingperiod.5.Ifanyplantisequippedwithcombinationsofstcam,hydro,internalcombustionorgasturbinecquipmenl,each'houldbcreportedasaseparateplant.)Iowcvcr,il'heexhausthealfromthcgasturbineisutilizedinastcamturbinercgencrativcfeedwatercycle,orforprchcatcdcombustionairinaboiler,reportasoneplant.c00~.INameofPhntlolYearOtip.Const.InstalledCapacity-NomePfal~Rctlnp-KW"(clNelPeokDemandKW(isoMtn.)(dlNelGenerationEpcludinoPlantUse(~)NCostotPlontAPPLICABLEPlantCostperKW,Inst.Copocily(0)OperationExc'I.Fuellb)Fuel(1)MaintenanceProductionExpensesKindofFuel(k)FuelCoilCentsperMillionb.t.u'CO:0;H'.III'H;0IOl213t4I>>ISlyIgIP20212223'242324272bVM'Z.UAco'o Portof.....OBLAHDO.UTILITIES.,COMMISSION,.........,.........vddDEC3l~l9..79STEAM-ELECTRICGENERATINGPLANTSI.Includeinthisschedulesteamwlectricplantsof25,000kw.(nameplaterating)ormoreofinstalledcapacity.2.Rcportthcinformationcalledforconcerninggeneratingplantsandequipmentatendofyear.'howunittypeinstal-lation,boilerandturbine.generator,onsameline.3.Excludefrom'thisschedule,plant,thebookcostofwhichisincludedinAccount12l;NonutilityProperty.4.Designate.anygeneratingplantorportionthereofforwhichthercspondcntisnotthesbleowner.Ifsuchpropertyisleasedfromanothercompanygivenameol'essor,dateandtermoflease,andannualrent.Foranygeneratingplant,otherthanaleasedplantorportionthereofforwhichthere-spondentisnotthesoleownerbutwhichthe.respondentop-eratesorsharesintheoperationof,furnishasuccinctstatementexplainingthr.arrangementandgivingparticularsastosuchmauersaspercentownershipbyrespondent,nameoico-owncr,basisofsharingoutput,expensesorrevenues,andhowttOILSRSLineNo.Hant~dfPlont'ocationofPlantMumberondYearhutolledKindolFuelondhtethodolsirinttRatedf'ressuroPsitf~Ro'ledSteornTemperotureeRatedPaax.ContinuousJA%as.Steornperflour(o)tb)(c)(d)(e)(9)rl23454yILOl2l3tal5F4l7l119202'l22232c2524272829303l3233LakeHighlandIndianRiverCrystalRiver3*OUChasanundFloridaPowerYrxerrfrrrnrr:Orlando,FL5)liles,SouthofTitusvilleSec.33T17sR16E.CitrusCFloridaidedownershiprp'sCrystal2-19491-19541-1956Oil-GasOil-GasOil-GasAtomizingSteamOila,'Burnersusedinallboiler8708708701-19601-19641-1974Oil&GasOilaGasOilaGasliechanicalAtomizingOilburnersusedallboilers1,8501,8701;8601-1977interestver()3of1.6015t).(13-8NW)uclearunit.9009009001501501501005/1056351005/1051,2001005/1052,265tincommastenannin'lndkstcrchcstboikrsthusly.1050/f000.

AnnoaIreportaI,ORLANDOUTILITIESCOI)h)ISSIONDEC79Yearended31~19...."STEAM-ELECTRICGENERATINGPLANTS(Continttcrd)expensesand/orrevenue;sareaccountedforandaccountsaf-fected.Speci('yiflessor,co.owner,orotherpartyisanassociatedcompany.S.Designateanygeneratingplantorportionthereof)casedto.anothercompanyandgivenameoflessee,dateandtermofleaseandannualrentandhowdetermined.Specifywhetherlesseeisanassociatedcompany.6.Designateanyplantorequipmentowned,notoperated,andnotleasedtoanothercompany.Ifsuchplantorequip-tnentwasnotoperatedwithinthepastyearexplainwhetherithasbccnretiredintheboo'ksofaccountorwhatdisposi-tionoftheplantorcquipmcntanditsboo)ccostarecontem-p)a'teel.T.Inc,ludeinthisschedulegas-turbinesoperatedinacom-binedcyclewithaconventionalsteatnunitwithitsassociatedsteamunit.TLIRblNEGENERATORSeeYeatInstalled(h)Max,RatingKilowatt'URSINESTypetSteamPressureatThrottleps'gttttt(h)R.P.M.AtMinimumHydrogenPressure(m)AtMaximumHydtogenPtessvtettttt(n)AamePlateRatinginrihswattsHyd>ogenPrescutettMin.(a)Max,(plGENERATORSPowerFactorVoltager.v.tttPlantCapocity,JAaximumGeneratorNomePlateRat>ngtttt(slLineNo.19491954195619601964197425,0030,0033,0086,70207,0344,5SCSCSCTC0TC0TC8508508501,8001,8001,8003,6003,6003,6003,6003,6003,60025,00030,00030,00028,75037,50037,5000.50.50.5PlantapacityLimbavailale70t00086r70005188,700207,60030294,500344,50030153030tedte3045450.80.80.812.512.512.50.80.80.913.822.022.0to6,000K(l28,75037,50037,50086,700207,600**344,500123lSd7b9'101112**thiunithasashaftdrive860,382boilerfeedpuprted1,5Or000lbs860,382perhr.1314IS16IlIb19202122242S2O27282930Notereferences:c~~oRat>at>rti>ss.n>o>lxmncttuiliiiar>crt>ctaintio>oaon>>ac>tio>eIl.l'.an>iuo.matI..I'.anuam,Ih<<ieou>a'nitsaa>ihabut>aaamu<lccllsailasIlia>ilooolaaGivrrupscit}tu>ingvfpumpsintrimsvffullIc>x>ltrnuitao>rnts,ttndirxtrtandemcompound(T,C.):crossca>npoundIC.C.);singlecitingISC.)."top;singunitI'I'.I.unctil<<I~~IIIIIcali<<cc~aIIDrsignstexircookdttrnrtxto>s.IItlfochrrthen3phxsr.60cycle.Iniliextrothrtchxtx>trti~>Ic.ItI)Shouldegtrewithcohimnin)ItIItlnct>xtrhuihextinctfi>t>heIx>ilrtxnalthrtothinercnnuiutofihixltutaxlm>i>illall<el>.313233+ta<<ataaaLIi~aaa>~~~15

~~~o~.~Iill~~~l~~~~I~~~~~~~~~~t~~~~~~\~~t~~0~~~~t~~~o Annualreportof,ORLANDOUTILITIESCOMMISSION...YearendedDECHYDROELECTRICGENERATINGPLANTS(Contiftued)plainingthearrangementandgivingparticularsastosuchannualrentandhowdelcrmined.Specifywhether)rssrricmattersaspercentownershipbyrespondent,nameofco-anassociatedcompany.owner,basisofsharingoutput,expenses,orrevenues,and6.Designateanypbntorequipml.ntowned.notoprratn).howexpensesand/orrevenuesareaccountedforandaccountsandnotlrastdloanothercompany.Ifsuchplantor<xtuip-a)fcc:ed!Specifyiflessor,co.owner,orotherpartyisanmentwasnotoperatedwithinthepastyearexpkainwhrtherithasassociatedcompany.beenretiredinthebooksol'accountorwhatdispositionofthc5.Designateanyplantorportionthereofleasedtoanotherplantorcquipmentanditsbookcostarecontemplted.companyandgivenameof)essee,dateandtermof)caseandDetittnHeodpAacenuntSp.CapacityofUnitotDetktnHood(i)WATERWHEELS-ContinuedYearInttolfed(k)Yattott~GENERATORSfre.quencyord.c.(m)(n)HomoplateaotinoofUnitinttito~ttt(o)NentberofUnixinPfont(p)TotalinttolledGen~rotinttCapacityinttifoeotttlnorneplaterotetttt)LineNo.NOTAPPICABLE$6789101112131$16171019202122232d2$2d27232930313233343$36373S39d011 Ann<>oltenet<ofO~)(NDOUTILITIESCOMMISSIONYeotendedDEC31)979INTERNAL-COMBUSTIONENGINEANDGAS-TURBINEGENERATINGPLANTSI.Includeinthisscheduleinternalcombustionengineand4.I)<bien<<t<dnsIslam<<c>rI><>rlionIll<'<<'l>fIoc'<sI><<lsth<~l(as-turbineplantso('0.000kilowattsandmore.f<'ci>on<1<'nt<<nc>lthc'<tl<'><su<'rI(su<lsI>rot>vrcs\sh'%<'I2.Rfro<uam>thvrron>I>any'ls<<'an>volI<'ss<t<<'<I<'<><(<I'>>>><tl.Rcportchvinfor<n<<tioneai(<<iforeonrv<nin<Iplants<<n<lIvasv.<<n<lannualccnt.I'<>runsstvnvr,s<<<>uI>lant<>liarth<<>svquipmvntatenclofYo;<r.ShossassoriatcclI>rimvn>oversa)<<<~el1>lant.or1>c><ti<>nlh<rc<>f.Ii>rshi<hthvrc.I>ouchntiandgrnrratorsonsamrlinc.notthvs<>l<'>ssm'rln>lsshi<Isth<'vsln>n<lvntop<'r;>lci<>r3.ExcludeI'romthissehrdulv.plant.<hrbookc'ostol'shiehsharccinthv<>l>vr<><i<usc>l'.fu<nislsasuccinctscss<<n><nt<w-isincludedint>sccountl21.>Conn<i(its'rcrt.1>lai<sinltthcarrctnu<'n>vntan<I<;isinv,1>.t<<i<ul,<rsvitc>esnI>PRIMEMOVERS(lneNoNomeofPlant(o)Loco<tonofPlant(b)It>>etltolCo>Ill>sts>tot>ocCos-ttttttttte(clYeorttts>ot!ed(dlCrete(elbeltedoeOttec>Cottttected-LakeHighland235b78910ll121315'lb1718192021222324252b2728293031323334353b373839d0Orlando,PLGasTurbinel958Open.D.CNoteref<cenccs.'Indicateb>siccycleforga>co<bine.oftenorclosed,It><tice!eb<>s>ecycleferinter>setcombos<ion<2oc0, Annvotreportot...,OIUrMIDO,UTILITIES.CQHMXSSIQN.INTERNAL-COMBUSTIONENGINEANDGAS-TURBINEGENERATINGPLANTS(Contlttued}mattersaspcrccntofownershipbyrespondent,nameofco-owner,basisofsharingoutput,'expenses,orrevenues,andhowexpensesand/orrevenuesareaccountedforandaccountsaffected.Specifyiflessor,co-owner,orotherpartyisanassociatedcompany.5.Designateanyplantorportionthereofleasedtoanothercompanyandgivenameo('cssce,datehndtermo('easeandannualrentandhowdetermined.Specifywhetherlesseeisanassoc)atedcompany.6.Designateanyplantorequipmentowned,notoperated,andnotleasedtoanothercompany,Ifsuchplantorequip-mcntwasrotoperatctlwithinthepastyear,explainwhetherithasbeenretiredinthebooksofaccountorwhatdispositionoftheplantorequipmentanditsbookcostarecontecstplated.PRIMEMOVERSContinvedprrtedhp.ofVnaTeartnttotledYohopeGEHERATORSfreqwncyord.c.HornePieteRotinttofUnit'nKitoeotteHornherofUniherriont(rn)TototInrtoliedGem~lo6leCopocltprnxi~nt(nonceploterotinttrf(n)LineHo.22,127195812,50060jl18,75037,50008d78910ll1213IdISldIrv18192021222324252d2l2829303'I323334333d373839ao ORLANDOUTILITXESCONMISSXON.,YeorendedDEC3IIg79CHANGESMADEORSCHEDULEDTO8EMADEINGENERATINGPLANTCAPACITIESGivebelowtheinformationcalledforconcerningchangesinclcctricgeneratingplantcapacitiesduringIhcyearA.GeneratingPlantsorUnitsDismantled,RemovedfromService,Sold,orLeasedtoOthersDuringYearrLineNo.I23a557Nomeofplontlo)NONEDispositionlb)Hydro(c)Steam(dltother)(~)INSTALLEDCAPACITY-KILOWATTSIsoldorleasedtoanothergivenomeondaddressofpurchaserorlesseelg)Satewhetherdismandcd,removedfromscrvicc,sold,orkascdtoanother.Plantsremovedfromserviceincludethosenotmaintainedforregularoremergencyservice.Datedismantkd,removedfromservice,sohf,orkascdtoanother.Designatecompletephntsassuch.B.GeneratingUnitsScheduledfororUndergoingMajorMod(ilcationsLineNo.I25547NameofplantNONEChoractsrofModificationlb)InstalledPlontCapacityAfterModigcallon-Kilowatts(clSlortld)Completion.(~)ESTIMATEDDATtsSOPCONSTRUCTIONC.NewGeneratingPlantsSchedu)edfororUnderConstructionPlontNatneand4cotion\(o)Typee'b)Initial(ciVtbmote(d)D4STALLEDCAPACITYKILOWATTSESTIMATEDDATESOPCONSTRUCPONStartle).'I24557i~lcIntoshN3,Lakeland,FL*Curtis.H.StantonOlOrangeCounty,FL**SteamSteam*OUChasacquireda40%unividedownehlcXntoshno3unit(334K/Nt)""OUCisplanningjointownrshipwithscoarareunxt.134,000200,000shipinteetunnameestintheparticipa1/7910/82CityofLtsinthis10/815/86elandFL4005Ã(ne)D.K~Un)tsinCx(st(ngr.antsScboc'su)edfororUnderConstrucHonLineNo.(o)Tn'nitNo.lc)SheofUnitKdowotts(d)ESTLVATEDDATESOPCONSTRUCTIONStart(e)NONE'Hydro,pumpedstorage,steam,internal-combuuion,g~urhinc,nuclear,ctc.

ORLANDOUTILITIESCOIIMISSIONDECEMBER3179AnnualreportofYearendedr19TRANSMISSIONLINESTATISTICS1~ReportbelowinfornationrequestedconcerningeachtransmissionlineShowhighestvoltagesfirst,Ifmorespaceisrequireduseaninsertpagewithcolumnheadingsasshowninthisschedule~2,Thetypeofsupportingstructurereportedincolumn(d)shouldindicatewhether(1)singlepole>woodorsteel>(2)H-frame,woodorsteelpoles;(3)tower;or(4)undergroundconstruction3~OesignateanytransmissionlineorportionthereofforwhichtherespondentisnotthesoleownersIfsuchpropertyisleasedfromanothergivenameoflessors'Oesignateanytransmissionlineleasedtoanotherandgivenameoflessee~cFromOESIGNATIONTo(b)Voltage(c)TypeofSupportingStructure(d)OnStructuresofLineOesignated(e)OnStructuresofAnotherLineLENGTH(POLEMILES)NumberofCircuits(g)SizeofConductorandMaterial(h)125678910IndianRiverPershingSouthwoodPershingCapeKennedy(FPL)OwnershipPointRioPinar(FPC)OwnershipPointtfindermere(FPCOwnershipPointIndianRiver230230230230'0.1731.950.413.13954MC11AC954MClilAC954MC1~&C954MCaIACSRSRSRSRTRANSMISSIONLINESADDEDDURINGTHEYEARloRcportbelowtheinformationcalledforconcerningtransmissionlinesaddedduringtheyear,Itisnotnec-essarytorcportminorrevisionsoflinesiIfnorespaceisrequireduseaninsertpagewithcolumnheadingsassho~ninthisschedule2oShoweachtransmissionlineseparately.Ifconstructionisundergroundindicatebyfootnote,Ifactualcostsofcompletedconstructionarenotreadilyavailableforreportingatlines32through35itisrequestedthatestimatedfinalcompletioncostsbeshownDesignateifestimatedamountsarereportedIncludecostsofClearingLandandRights-of-Way,andRoadsandTrails,atline32withappropriatefootnote,andcostsofUndergroundConduitat)ine33.3~Ifdesignvoltagediffersfromoperatingvoltageindicatesuchfactbyfootnotesialsowherelineisotherthan60cycle,3phaseindicatesuchothercharacteristic.oc21222325262728290132333435'inedesignationrFlom~~~~~~~~~~~~~To~~~~~~~~~~~~~~LinelengthinmilesSupportingstructurerType~~~AveragenumberpernileCircuit-perstructure:Prenrsent,~~~~~~~~~~~~~~.~~~Ultimate~~~~I~'I~~~~~~~Conductors:Size~~~~~~~~~~~Maaria.aterial.~...,....,...,...,..ConfigurationandspacingVoltage-Irv(operating)LineCost(omitcents):LandandlandrightsPolesrtowers,andfixturesConductorsanddevicesTotal~~~~~~~~XXXXPineHillstfoodsmere1.2XXXXWoodPoleXXXXoneXXXX954MCMACSR230XXXXNone82,3781$193,665XXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXRev(12-69)

~~~~~~~~~~~~I'II~oII~~~oI~~~II'I~~~~~~~

Continuedage21AnnualreportofORLANDOUTILITIESSIONYearEndedDecember31,197(a)SouthwoodWeberHeberHeberPineHillsAzaleaAzaleaHoldenlloldonSouthwoodPershingPershingPershingtlichiganAmericaSouthwoodPineHillsPineHills(b)PershingAmer1CQBennettCountryClubTurkeyLakePershingBennettSouthwoodMichigant4~rtinIndianRiverMichiganMichiganKaleyKaleyTurkeyLakeCountryClubNoodsmere(PPC)OwnershipPoint(c)230115115115115115115115115115115115115115115115115230(d)31412.1,211121141111(e)27.26l.963.151.923.304.182.783.555072.6631.90~4'95'92.121.442.433.221.2(g)11112111121111111(h)-954HCHACSR1500MCMCU400HCMCU1500MCMCU300MCMCU400MCMCU400MCMCU300MCHCU400MCHCU300tlCMCU.636MCtlACSR400MCHCU927MCHACAR2500MCHCU927MCMACAR300MCMCU927HCIIACAR954MCtlASCR

AnnielreportofORLANDOUTILXTIESCOMMISSIONYearendedDEC.31~1979ATTESTATIONTheforegoingreportmustbeattestedbyanauthorizedofficerofthereportingutility.ofRichardD.BrownInsertherethenaneoftheattesterAssistantIIanagerofFinancialOperationsInsertheretheofficialtitleoftheattesterORLNDUTILXTIESCOMI~IISSIONcertifiesthathehasexaminedthisreport;thattothebestofhisknow-ledge,information,andbelief,allstatementsoffactcontainedinthesaidreportaretrueandthesaidreportisacorrectstatementofthebusinessandaffairsoftheabove-.tamedrespondentinrespecttoeachandeverymattersetforththereinduringtheperiod-Januar1,l979,toandinc]uding31l979.Signatureofattester)opo935~soe

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~'~~~~~~'~~~~~~~~~'~~~~~~~~~~~~~~'~'~~~~~~~~~~~~~~~~~~t~~'~~~I~~~~~~~~~~~'~~~'~~~~~'~'~~~~~f~~~~~~'~'~~~~~~~~~'~~'~~~~~~~~~~~~~~~~,'~~~~~'~~~~~~~~~~'~~~~~'~'~~~~,~~~~~~~~~'~~~'~~~'~~~~~~~~~~~'~~\~~~~~~~~~~'~~~~~'~~~~'~'~~:~~~~~'~~'t~~'~~~~~~~~~~~~~'~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~'~~~'~~~~~~~~~~~~~~~~~~4~~~.~~~~~~~~~~'~~~~~~~4'~~'~~'~'~,~~'~'~'~~~~~~~~~~~,~~~~'~~~~~~'~'~~~~~g PowerSystemStatementof.fortheYearEndedDecember31,1978SYSTEMHYDROELECTRICDATAMontinuedINSTRUCTIONSFORPARTSBANDCl.Allthedatarequestedonthispageshouldbefurnishedforreservoirsandplantswhichwere:(a)Constructed,purchased,orleased,andplacedinoperationbytherespondentduringtheyear,or,(b)Operatedbytherespondentpriortotheyearcoveredbythisstatementbutnotreported'othisDepart-mentintheformprescribedbelow;2.Reviseddatafortheappropriateitemsshouldbefurnishedifchangeshavebeenmadeintheinstalledcapacityordesignofhydroplants,inavailablestorage,orin"operatingrulecurves"duringtheyearorthedatahavenotbeenreportedintheprescribed,form.3.For'thosereservoirsandplantsinwhichnophysicalchangeorrevisioninoperatingpracticehasoccurredaffectingthedatapreviouslyreported,listori.anaddendasheeteachreservoirand.plantnameandtheyearintuhichtheinformationwasfurnishedtogetherwiththenotation"correctasofDecemb'er31oftheyearhereinreported."B.StorageReservoirs.1.Furnish"Elevation-Volume"and"Elevation.KilowaAhour"curvesforeachstoragereservoironthesystemthatcanprovidemonthlyorseasonalstorage.Aformforshowingthesedataisillustratedintheaccompanyingsketch.2.Inadditiontotheforegoingcurves,show(a)themaximumwaterlevelwithoutspill(tobefurnishedforopera-tionwithoutandwithflashboardsifused),and(b)themaximumwaterlevelatwhichthereservoirisnormallycarried;(c)theminimumwaterlevelofthereservoirforplant,operationatthesite,and,(d)theminimumwaterleveltowhich.watercanbedrawnforuseatotherplants;and(e)capacity-headcurvesforplantshavinglargevariationsinhead.ElevationsshouldbereferredtoU.S.G.S.datum(ortothesamedatumasusedinplantlayoutsketches~eeitemC(1)below).3.Furnish"OperatingRuleCurves"foreachoftheforegoingreservoirs,intheforminwhichtheyareavaflable,andstateperiodforwhichcurvesareapplicable.tb)KifowaH-hoursinsloe:.~+.+.oo',.'.O4.l'io~iOELEVATION-VOLUMEANOKILOWATT-HOURCURVESNameofre~rNameofplantatsite.Namesofantskrcurve2Reservoirvolume-ocrabetC.HydroelectricPowerPlants,includingPumpedStorage.1.Foreachhydroelectricplantof10megawattinstalledcapacityorgreaterfurnish:(a)Apanoramicsketchoftheproject,andaprofilesketchoftheplantlayoutshovvingelevationsreferredtoU.S.G.S.datum,ifsuchdatumisavailable.Showforthedamitsmaterialandtype,maximumheight,totallength,thicknessatbase,andlengthofspillwaysection.Furnishcurvesshowingheadwaterandtailwaterelcvations,infeet,plottedagainsttotaldischarge,includingplantuse,incubicfeetpersecond.(b)Aphotographoftheplantifavailable.2.Ifavailable,furnishforallhydroelectricplantsof10megawattinstalledcapacityorgreater,curvesshowingtherelationbetweenover.allwateruseincubicfeetpcrsecondandgrossplantloadinkilowatts,fromminimumtoI'ullloadataconstantgrossheadwhichapproximatesthcaveragehead.Thegrossheadshouldbestated.Rev.(1275)

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PowerSystemStatementof........Or.itAJ~(QQ.Ui..':Jv'tact.t~>..~,~<.....fortheYearEndedDecember31,1978TEAM-ELECTRIC,INCLUDINGNUCLEAR,PLAiNTDATA~ontinuedD.INSTALLATIONDATANameofplantNameofSystemNumberofmalageneratingunitsNumberotauxiliarygeneratingunits(fndfcatebelowwhichareauxiliaryunits)'o'reacunicorgroupoienticeunitssowteoowngiltnecessaryattachadditionalsheets):eneratorata:Manufacturersmaximumnameplateratinginmegawatts.Hydrogenpressur~sigageMan'ufacturersininimumnameplateratinginmegawatts.Hydrogenpressure-psigager'rianufacturersnamepiat~owerfactor................Generatorcoolant-Air(A),Hydrogen(H),Liquid(L)...Generatorvoltageinkilovolts.Generatorphaseandfrequencyibianufacturer.TurbineData:Turbinenameplaterating~w.Singlecasing,tandemcompound,crosscompound,etc..Operatingspeed-revolutionsperminute...................Throttlepressur~sigageThrottletemperatur~egreesFReheattemperature,ifapplicabl~egreesF...............Exhaustpressur~sigageorinchesofmercury.....,...Fullloadsteamrateinpoundsperkilowatt-hour..........FullloadheatrateinBtuperkilowatt-hour.~.............Manufacturer.~1Yearinstalled........Turbine-GeneratorData:Maximumgrosscapabilityinmegawatts......................Hydrogenpressure-psigagenicNos.ncNos.nitNos.mcNos.Nos.nic2526272829303132.333536373839404142434546GiveforeachboGerorgroupofidenticalbogersthefollowlngiSIteampr'essure-psigageMaximumcontinuoussteamingcapacity-1000lbs.perhr.Kindoffuel(coal,gas,oil,etc.).)IethodoffiringYearinstalled.ManufacturerBoilerNos.BoilerNos.BoderNos.BoilerNos.Bo!ierNos.474649505152IE.STATIONSTEP-UPTRANSFORMERSDataarecobefurnishedtoreachtransformerorgroup.l.e..oneormorebanks.ofidenticaltransformers.fncludinsparesGroupIGroup2Group3Group4Group5Numberofidenticalrrdnsformerst(a)Inservice...........(b)Spare................Type:Ifauto,specifyPhaseandfrequencyCapacityofeachtransformerinmva.:(a)Normalrating..............~........~(b)iMaximumcontinuousratingwithforcedcooling(ifinstalled)......Voltage,inkv.:PrimarySecondary.TertiaryBankconnection(~,V,Y,groundedY,orother):PrimarySecondary.TertiaryBankcapacity,inmva.:PrimarySecondaryTertiary'lnocnewwhenlnstal!ed.showalsobyfootnotetheyearequipmentwasrnanufacturedandtheyearrebuut.53545556575S596061626364656667(16)Rcv.(12.75)

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\PowerSystemStatementof..........>~P~"tw-~;.I.!~;I-,.~~..~s+~r~fortheYearEndedDecember'31,1978~~SchedulecontinuedPARTA;ENERGYDELIVERIESTOSPECIFIEDSYSTEMSANDENERGYTRANSACTIONSEVITHBORDER-LINECUSTOMERS:V(SeePage19forGeneralInstructions)1.Showincolumn6theamountsofenergydeliveredforresaletoeachclassIIIatidclassVsystem.2.Iftherespondent'ssystemdeliveredenergytocustomersofanothersystem(sometimesknownas"border-linecustomers")suchdeliveriesalsoshouldbeincludedincolumn6.3.Ifcustomersofrespondentreceivedenergydirectlyfromanothersystemfortheaccountoftherespondent(borderlinereceipts),suchtransfersshallbeenteredincolumn5.Ifpartoftheenergydeliveriestosystemsspecifiedininstruction1andreportedincolumn6arereceivedbackintothereportingsystemthroughanotherinterconnection,suchreceiptsalsoshouldbeenteredincolumn5.Allotherreceiptsshouldbeenteredincolumn5,partB,ofschedule8.4.Energydeliveredbyrespondent'ssystemto"border.linecustomers,"orviceversa(energydeliveredtore-spondent'scustomersbyanothersystem),shouldbeidentifiedbyinserting"border-line"incolumn2.5.Indicatebyappropriatenotesthosesystemswhosefullrequirementsweresuppliedbyrespondent.6.Thetotalsshownonline40,'column5and6,shouldbecarriedovertoline13,columns5and6,respectively.ofschedule14.NameofOtherCompanyorSystemTransferPoint(2)Coadunate,LocationorSymbolonMap(3)Firnt(F)orNongnn(NF)Transfer(4)EnergyReceived(Instruction3)(Megawatt-hours)EnergyDelivered(InstructionsIand2)(hIegawatt.hours)(6)FloridaPowerCorp.FloridaPowerCorp.Total.Borderline-TurkeyLakeBorderline-RocketCity(20)1506166412345678910111213141516171819202122o324252627282930313233343o3637383940Rcv.(1275)

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Schedule8-ContinuedFootnotes-21-.FirmpowertoCityofKissirnmee,deliveredbyFloridaPowerCorp.Firmpowerto.SebringUtilitiesCommission,delivered.byFloridaPowerCorp.Firmpowerpurchased.fromtheCityofTallahassee,deliveredbyFloridaPowerCorp.

• OUChasoneclass;generalervices,whichincludesbothcommercialandindustrialcustomers.

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1.Inthisscheduleshowthcamountsoi'energyflowtooracrossaStatelincorinternntionalboundarytluringthcyear,includingenergytoandfromthercspon-tlcnt'sfacilitics.2.ltcport,Totalamountsofenergysotransfcrrcdineachdirectionovereachlineusnl.Donol.rcportNcttransfers.tVhcrctransferswercmadeovernnumberofcircuits,cstimatcs(noted"Lst."),ofthcamountstransfcrrcdmnybcI'urnishcd,ii'cnsurcdqunntiticsurcnotavailable.3.tVhcrcthctransfersreportedwercfromoneSystemCotnpanytoanotherSystemCompanyoperatinginanadjoiningState',thesecompanynamesshouldnlsobcgivenincolumns1and3."System"cotnpaniesarcthoselistcdunderitem6.C,page3.ScheduENERGYTRANSFERREDTOORACROSSASTATELINEORINTERNATIONALBOUNDARYDURINGTIIEYEAR0XII90)uI95ft'Trans(err<III:rum-(,ol'npuny(t)(2)Tranrferrauto-Company(3)Statot"rom-(G)t.lneDerlanuttnnTo-(G)AmountTranaterred(hlcgaIrat1'llourr)(7)1236678910ll13141616171819op212223Q252627282930tL"))~)'.-)Ia'Jncu69oIacocoCo

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rOzverOyStembtatementOf..~'.>;cd",~",,".".;rz~......,,........fortheYearEndedDecember31,1978Schedule14NETGENERATION,ENERGYRECEIVEDANDDELIVERED,ANDSYSTEMPEAKSBYirIONTHSFORTHEYEAR1.Incolumn2,showthetotalnetgenerationofsystemplantsbymonthsfortheyear.Theentryonline13ofthiscolumnshouldagreewiththeentryonline86,column8,ofschedulel.2.Incolumns3,46and'6showthemonthlydistributionoftheenergytransfersreportedinscheduleS,.partiAandB.Thetotalsshownonline13should~eev'iththetotalsreportedinscheduleS.8.Incolumn8theentryonline26shouldagreewiththeentryonline7ofschedule9.4.Incolumn10,showthemaximummegawattloadonthesystemI'oreachmonthoftheyear.Loaddatainthiscolumnshouldbethemaximumintegrateddemandoftheenergytabulatedincolumn9for60-minuteclockhourintervals.IVhereinteinateddemandsfor60minuteclock.hourintervalsarenotavailable,itisdesiredthatavailabledatabeadjustedtoapproximatesuchintervals.Adjustmentsmadeshouldbeexplainedinfootnotes.AVheresuchadjustmentscannotbemade,loaddatashouldbefurnishedintheformavailable.Theentryonline26ofcolumn10shouldagreewiththeentryonline23ofschedule13.ENERGYTRANSFERSFROhlSCHEDULE8~,MonthSyszemNetGeneration(Megawatt-hours)(2)PartB(Page21)Received(Col.5)(hiegawazuhours)(3)Delivered(Col.6)(Megawatthours)(4)PartA(Page20)Received(Col.5)(Megawalphouzs)(5)Delivered(Col.6)thlegawatt-hours)(6)JanFcbMar.Apr.hiayJuneJulyAug,Sept.Ocz.Nov.Dec.196,743196,906203,978240,907274;566259,443267,524.'88,887297,575191,540203,411255,08310r15776,71737,74832131355(01361,85049,38145,23631,423'64,09762,26362,16098,88486,340123,584145,132122,670112,210114,841125,69191,672.117,686159,6611,651293.24ll&3.463.621701381113.3.03.54123456789101112otal2876563682,358411095LOADDATAle66413hlonth(7)r(czEnergyforSystem(Col.2pluscol.3minuscol.4pluscol.5minuscol.6)..(Megawatthouzs)(8)NetEnergyforLoad(Col.2pluscol.3.rnlnuscol.4)(hiegawatt.-hours)(9)(Megawatts)(10)(Date)(11)PeakLoadDemandIntezva)~~ILLQ~>>Clock-hour~ending)(12)LoadFactort(Fromcols.9and10)(Percent)(13)Jan.Feb.hlar.Apr.hlayJuneJulyAug.adept.Oct.Nov.Dec.188,313174,904155,515149,760184,565198,769204,857219,452203,445164,076148,098157,7362149490r174,739155,386149,636184,447'198,623204,695219,282203,307163,965147,988157,5822,147,826427340'2538943141143341336131133943323613252910291,629128-29-780800080015003.7001800170018001700170019003.900180060.961.463.963.764.066.968.168.463.066.162.556.6"I15)16171819202123242526ReportMinbnurnHouzlyLoadExperiencedDuringshehlonthPercentNctcneforloadCol.9xtooloadfactorcaoaol.10)xhoursnmonth(oryr)Mon(14)n.eb.hler.Apr.hlayJune(Megawatts)(15)131122112130151hIonth(16)JulyAug,Sept.OcuNov,Dec.(hieawatts)(17)160152ll7119121Calculatesheloadfactortothenearesttentho(onepezcent.IIhoursusedlncalcuhuingtheloadrectorforamonthdiifcrfromthccalendarhourslntlzatmonth.rcportthenumberofboursusedincalculatingthcIoaZfactor.,303l3'9(26)Rev.(12.76) e~I..~~~~'~~~~I~~~~~~~~~~'~~~~~~~~~~~~~~~~I~'~'S.~~.~..~~~~I~~~~~~~t'~~~~'~~~~'~~~~'~~~~~~~'~'~~~~~~'~~~~~'~~'~~~~~~~~~~~~~~~~~~~~~~~~~I~~~'~)~~~I~~~~~~~~~IIII~~~~~~I~~~~~~~4lI~~~~

YOWerbyatemStatemenmof....AA.-l-.t~uuJ:.-:;---:-,'-:.:-~fortheYearEndedDecember31,'1978TimeIntervalSchedule25SYSTEiVILOADDATAFORSPECIFIEDWEEKSDemandInterval.INTEGRATEDDEhl*NDIHhlEGAtVATTSFirstFullWeekotAugustStartingWithSunday(indicatedates)hlldnlsht12.1122-33-44-55.6677-88.99-1010.1111-12Noon12-11-22-334-55-66-77-88-99-10ll12Totalmwhrs.Sunday(2)202187170165162l601611721942212682762923063062983143183152962922842592315849hlonday198182173168168175201'36283318.336349357.363.3753763883863813623573383032667039Tuesday228'208194187.1901912152502923273463613683563603693833803653523483292922577148Wednesday(5)2232051931841801882102482833233303493733833843864044124033903823603192817393Thursday(6)242221207200195200220255292325346362374392405413418417409385.3773543152747598Friday(7)3124422721020319720022125529933535635538843.33654044223903383343242982692387285Saturday(8)212197l,821761751803.99237277305323.330315313297295295296-2882942782522306117123567~891011121314151617181920ol222324IWeekorDecembFirstFules)nday(IndicatedaterStartingWithSuhfidnisht12-'11-2233-44~55-66-77-88.99-1010-1111-12,Noon12-11-22.3344-55-67899.1010ll11.12Toialrnwhsq.Sunday145135128125121126129141165l90205217226229229232234245258249235219185161hlonday148140133126134143180221268269272273280286298289279297310294275245210179Tuesday148143141137138152193236263260257248248234236236240250266253233207176161Wednesday150131126126129151199233235235236238244247260260266274291277260230204178(27)Thursday145135133128128133182215252263268276283286290290294297314298274252218190Friday160.150139137137150187224245277276280'92295303303300304317299277249221195Saturday1703.521461401341433.53.1712052342462512502502542542562732832712402161923.752627M&2930313233343536373839.104142434445~'l64&4950Rev.(12-75)

PowerSystemStatementof..fortheYearEndedDecember31,1978Schedulel6SYSTEMDEPENDABLEANDASSUREDCAPACITYINSTRUCTIONSl.(a).Showasthedependablecapacityofthesystemfuelplantsthatcapacitywhichcanbereliedupontobeavailableforactiveorstandbysezviqeattheusualtimeoftheannualsystempeak.AllowanceshouldbemadeforanymaintenanceoutageofequipmentwhichMUSTbescheduledduringtheusualtimeoftheannuaisystempeak,givingan.explanationunder"Remarks."Inthespaceunder"Remarks"showwhatpartofthedependablesystemfuelcapacityissuitableonlyforshor!.timeoperationorstandbyservice.1.(b).Thedependablecapacityofsystemconventionalhydroplants,asdefinedforSchedule16,relatesCothecapacitywhichunderthemostadverseflowconditionsofrecordcanbereliedupontocarrysystem'load,providedependablereservecapacity,andmeetfirmpowerobligations,takingintoacc'ountseasonalvariationsandotherchar-acteristicsoftheloadtobesuppliedandofthefinnpowerobligations.SomesystemsmaybeabletoutiIiseoEf-peakenergyfromothersystemssoastoincreasethedependablecapacityofthereportingsystemconventionalhydroplants.Whereconsiderationisgiventotheoff-peakenergywhichcanbesecuredfromothers,anexplanationoftheamountandconditionsgoverningthereceiptofsuchenergyshouldbegiven.Incaseswherethestream-flowrecordsindicatethaCChemostadverseflowsarenotlikelytooccurexceptatlongintervahoftimeandarelikelytobeofveryshortduration,thefiguresusedindeterminingthecapacityavailablefromconventionalhydropl'antsmaybemodified,tzeatingsuchabnormallimitationsasanemergencyconditiontobecoveredbythereservecapacity.Suchmodificationsshouldbefullyexplained.FullconsiderationshouldbegiventodatareportedinSchedule2foradverseflowconditionsincomputingtheannualdependablesystemconventionalhydrocapacity.1.(c).Thedependablecapacityofsystempumpedstorageplants,asdefinedforSchedule16,isthatcapacitywhichcanbereliedupontocarrysystemloadorprovidedependablereservecapacityattheusualtimeofannualsystempeaktakingintoaccountsuchfactorsaslimitationsinplantcapabilityduetoreservoirdrawdown,theenergyequivalentofstorageintheupperreservpor.amdtjeavailablepumpingenergyonadailyorweeklypumpingcycle.Forplantswithbothconventionalandpumpedstoragefacilities,theconventionalandpumpedstorageportionsofdependablecapacityshouldbereportedinitems1(b)and1(c),respectively.2.ShowtheamountoffirmpowerwhichisintendedtobeavailableattheusualtimeoftheannuaIsystempeakfromutilities,industries,orothers.Showamountstatedincontract;ifitisnotasingle,definite,fixedamount,explainunder"Remarks"oronaseparatesheet.DONOTINCLUDEPOWERWHICHMIGHTBEAVAILABLEUNDERINTERCHANGE,EMERGENCY,OR!'WHEN,'S,ANDIF"ARRANGEMENTS.Itisdesiredthatcorrespondingitemsreportedbeinagreementasbetweentheaffectedcompanies.Itis,thezefore,suggestedthatthecompaniescon-cernedagreeuponthefigurestobereported.3.ShowtheamountoffirmpowercommittedorobligatedwhichisintendedtobeavailableattheusuaItimeotherespondent'ssystempeaktoothersystems.Showamountstatedincontzact;ifitisnotasingle,definite,fixeamount,explainunder"Remarks"oronaseparatesheet.DONOTINCLUDEOBLIGATIONSUNDERINTER-CHANGE,EMERGENCY,OR"WHEN,AS,AND"IF"ARRANGEMENTS.Itisdesiredthatcorrespondingitemsreportedbeinagreementasbetweentheaffectedcompanies.ICis,therefore,suggestedthatthecompaniesconcerned'greeupontheEigurestobereported.5.(a).Showthetotalamountofreservecapacity,regardlessofthesource,considerednecessarytomainCainadequateserviceattheusualtimeoftheannualsystempeak,withoutregardtotherelationofnetassuredcapacitytosystempeak.Ingeneral,thelargestreductionindependablecapacitywhichmightzesultfromanoutageofageneratoro.boilerunitdeterminestheminimumreservecapacityrequired.Whereunusualconditionsobtain,explainfullyinthespaceunder"Remarks."5.(b).Showthatportionofthetotalrequiredreservecapacitywhichisreliedupontobeavailableattheusualtimeofsystempeakunderinterchange,emergency,orsimilaragreementswithothers.Inthespaceunder"Remarks"showindetaflthesourcesofthiscapacity.andstatewhatportionis(1)spinningreserveinstantlyavailable;(2)availableduringtimesofmaintenanceandinspection;(3)availableuponshortnotice;and(4)lengthoftimeavailable.5.(c).Showinthespaceprovidedfor"Remarks"whetherthereservecapacityrequiredtobesuppliedbyownplantsisavailablewhollyfromfuelplantsorwhollyEzomhydroelectricplantsoracombinationofboth,andstatethelengthoftimethiscapacitycouldbedependeduponincaseofsystemoutages.SomesystemshavingstoragehydromaybelimitedastothemagnitudeoEloadthatcanbecarriedbytheamountofpotentialenergyavailableundeiadversestreamflowconditions.Suchsystemsmayhaveexcesspeakingcapacity,someportionofwhichcanbecon-sideredasdependablereservecapacity,providedsufficientenergyisheldinstoragetotakecareofpossiblesystemoutagesduringthecriticalperiod.'uchcapacityshouldbeincludedinitem1.(b)withfullexplanationunder"Remarks"IEaconsiderableamountofenergyisnormallyreceivedfromordeliveredtoothers(exclusiveofdeliveriestosys-~temslistedinSchedule8,PartA)underinterchange,emergency,or"When,as,andif"arrangementsandsuchtransfers-.areexpectedtocontinue,giveabrieEdescriptionunder"Remarks."IVherefirmpowerobligationsorpurchasesvaryirantheamountofcapacitythatisavailableforanyspecificperiodoftimeorhavelimitationsastotheamountofenergyavailable,fullexplanationshouldbegivenunder"Remarks."Useadditionalsheetsforremarksifnecessary.Re'marks:(l)26MWofthisamountissuppliedbythorogasturbineunitswhichcanbeloadedwithin30minutesofinitiation.(2)TheFloridaElectricPowerCoordinatingGroupmemberutilitie,bymutalagreement,establishreserverequirementsformembersofthisgroup.The263i~Ãinterchangereservecapacitywasavailablefromothergeneratingunitsthroughoutthestate.OrlandoUtilitiesCommis'sionowns40%ofthisunit.asajointownerastenantincommonwithanundividedinterest.

~~~a~~gt~~~~~~~~~~I~~~~~~~~~'~'~'~o~t~~~~~~'~~~~'~~~~~~'~~'~'~'~~~~~~~'~~'~'~~~~Qg~~~~~~~~f~~~'~~~

Schf.'flffte17DISTRIBUTIONOFSYSTEMLOADINSERVICEAREAIN8't'llUCTlON8l.Informationisdtsircdregardingthctiistributionoi'hcsystemloadascnlcrcdincolumns9and10,schcduic11,withinthcterritoryservedbylitesystem.'thisinformationshouldbofurnishedonlitebasisusedbyrespondentinmaintainingtoaddistributiondata,suchasbyprimarysubstalions,operatingdivisions,communitics,mctropolilanareas,.industrialareas,orotherareas,inwhichthcannualcncrgyconsumptionwas10,000megawatt.hoursorgreater.2.Asketchmapshowingthelocationandthcapproximateboundaryofeachoftheseareas,togetherwithidentifi-cationsymbols,alsoshouldbcfurnished,ormaybeshownonmapssubmittedunderschedule18.DesianationofArea(Primarysubstation,oncratinadivision,orcommunity(1)hiauSymbol('-')Total(hlcsawatt.hours)(3)Harm(4)conf.alaitniJaubl(b)Com-mercial(a)industrial0)Other(ft)"blLrsstrPdt.tth)(9)AnnualHnerayProvidedforthcAreaHslbnatcdDistribution-PcrccntLosses(lo)ActualorHstbnatedPeakDemandofAreaDurlncthcYear.(hlet.awatts)(11)DateofPeak(1'-')AnnualLoJtlHactor(la)10PlOrlando,Fla.andAdjacentAreas+OUChasoneclass,gnera2,147,826services,41.1hichincl53des1.3othommecial4.14338-2956.6and'ndustrialcstomes.1235G78910111213lglq10'819n021nn232'5nQ2728 PowerSystemStatetnentof.,~z................fortheYearEndedDecember31,1978~/ScheduleI8SYSTEiWIMAPSANDDIAGRAMSAttachtoeachofthreecopiesofthepowersystemstatementoneprinteachofthefollowing:(a)Systemmap(ormaps)showinggeographicallocationofgeneratingstations,electricpowerlines,switchingstations,substations,andpointsoEinterconnectionwithotherelectricutilitysystemsandwithindustrialplantshavinggeneratingcapacityofonemegawattormore.(b)Single-Lineschematicswitchingdiagram(ordiagrams)showingtheelectricalconnectionsoflinesandfacilitiesoutlinedin(a)above.(c)GeneralCharacteristicsoffacilities.Allasmorespecificallyoutlinedbelow:1.Mapsanddiagramsshouldshowalllinesandthesubstationssuppliedtherefrom,operatingatvoltagesof69kv.andabove,exceptradialandlowcapacitydistributioncircuitsinmetropolitanareas.2.1ngeneral,systemmapsordiagramsorbothshouldbeofsuchscaleastobeeasilyreadandshouldshow:(a)Loca-tionandnameofallgeneratingplantsandofthosesubstationsandswitchingstationsspecifiedin(1)and(3);(b)namesofcommunitiesservedbyrespondent;(c)locationandnameofeachinterconnectionwithotherutilitysystems;(d)locationandnominalvoltageofeachhighvoltagelineof69kv.andaboveoranyotherlineregardlessoEvoltagewhichconstitutesthetielinebetweengeneratingstationsorfromgeneratingstationstohighvoltagesystemsof22kv.orabove,includingfrequencyandnumberofphaseswhereotherthan60cycleor3phase.3.Substationsandswitchingstationsinthefollowingclasses,togetherwithfacilitiesforsupplyfromthemainsystem,shouldbeshownonboththemapanddiagrameventhoughthevoltageofthesupplylinesmaybebelow69kv.(a)Principalsubstationsandswitchingstationswithinmetropolitanareas.(b)Substationsandswitchingstationsconnectingwithotherutilitysystemsortoindustrialplantshavinggeneratingcapacityof1mwormore(connectionsforminor"border.linedeliveries"neednotbeshown).4.Thefollowinginformationshouldbeshownonsingle-lineschematicdiagramoronsupplementa1tabulationforsubstationsandswitchingstationsspecifiedin(1)and(3)aboveandforgeneratingplantsof1mwcapacityorgreater:(a)Connectionsofmajorelectricalequipmentsuchasgenerators,conversionequipment,mainandauxiliarybuses,circuitbreakers,disconnectingswitches(otherthanforinstrumenttransformers),popovertransformers(specifyV,Y,orYgrounded,etc.),voltageregulators,phaseshifters,highvoltagelinesof69kv,andabove(b)PrincipalconnectionsEromgeneratingstationsandprincipalsubstations(regardlessofvoltage).(c)Nominalvoltageofbusesandequipment.<<(d)Continuousmva.ratingofrotatingequipment,transformers(normalandwithforcedcoolingwhereinstalled),rectifiers,condensers,andvoltageregulators.Meter,controlandhousecircuitsneednotbeshown.Characteristicsofstationstep.uptransformersgiveninschedules4,5,and7neednotberepeatedtocomplywiththisinstruction.5.Thefollowinginformationshouldbeshownforhighvoltage,tieandsubstationsupplylines:(a)Numberofcircuitsinstalled(ifspaceforadditionalcircuits,sonote).(b)Operatingvoltage(anddesignvoltageifdifferent).(c)Lengthofright.of-waybetweenterminalpoints.(d)Typeofconstruction,i.e.,overhead,undergroundorsubmarinecable.<<<<(e)Typeofstructure,i.e.,steeltower,woodH.frame,steelorwoodpoleandequivalentspacingofconductors.(f)'Conductormaterialandsize.6.bIaterialfurnishedunderthis'cheduleshallcarrythenotation"CorrectasofDecember3I1978'oralaterdate),andbeinitialedbyaresponsibleemployeeofrespondent.7.Existingmapsandswitchingdiagramspreparedforadministrativepurposes,loaddispatching,orotheroperatinguses,supplementedbysuchinkorcolornotationsortabulationsasrequired,maybeEurnished.8.1fsystemmaps,single-linediagramsandsupplementaltabulationspreviouslyfurnishedmeetthedetailedrequire-mentsoutlinedaboveandarewhollycorrectasofthecloseoftheyearofthisreport,suchinformationneednotberepeated,butanotationshouldbemadeastotheaccuracyandyearsubmitted,asfollows:Maps,diagrams,andtabulationssubmittedwithFPCFormNo.....,fortheyear19....,correctasofDecember31oftheyearhereinreported.<<Neednotbefurnishedforsubstationsoftotalratinglessthan3mw.<<<<Neednotbefurnishedforlinesunder69kv.ifthemaximumtransmissionvoltageofthesystemisgreaterthan115kv.(31)(Rev.12-75)

~~I~~~~~~I~~~~I~I~IIII~I~~I~~~~II~~I~oI~'~4~I~~~~~~~~tI~~~~~~~~~I~~~~~~~~~~~~~~~0~~~~~~~~I~~~~~~~~~~~~~~~II~

Sclreflrrlf.IS8-ContrirrreflHIGEIVOLTAGELINEDATA-ContinuedFrom-(1)LINETRftMINALSNormalFlowofPowerTo(2)LengthofEachLinc(miles)(S)OperatingVoltat.c(Kv.)htaxhnurnPossibleI.oading(mw.)(S)April(tr)August(7)Octo'ber(S)I)cccmbcr(9)LincLoadatTimeofhionthlySystemPeak-(rnw)Annualpeak(10)Sub.7Sub~7Sub.6Sub.6Sub.6Sub.6.Sub.3Sub.11Sub.9Sub.13.Sub.10Sub.9Sub.5Sub.1Sub12Sub,14Sub.5Sub.5Sub.6Sub.6Sub.5Sub.3Sub.9ASub.98Sub.11Sub.1Sub.13UGSub."10Sub'UGSub.4Sub.8Sub.12UGSub.2Sub.2Sub;-4Sub.14(2lines)(1line)(2lines)31.9031.9527.264,184.595.792.78'.152.121.441.965.072.661.923.223.303,552.43115230230115'15115ll5115115115115115115115115115115115165ea.414414135ea.1351921351351951921581351121581921121121124ea2672929ea32324355757ll188181350446657ea.283116'-47ea;64'47525:~81"81142012461452.357139ea2535436ea.403850668681922llll1958507620728341i11636ea.i474sj6445i644l7517I256S'l6SiSl25i146'0loI125i46o43,'5234,35'4-71ea.48ea.57ea.mw.~thousandkrlorvatts.crea 0I~Iy~00~~I.~~~~'~~~~~~'~~~I~~~~~0~0~~~~~~~~I~~~~~~~~~IIIIIIIIIIII~~0 ATTESTATIONTheforegoingstatementmustbeattestedbyaresponsibleengineerorexecutiveofficerofrespondent,orofoneofrespondentswhereaconsolidatedstatementisfiled,qualifiedanddulyauthorizedtoprepareorsupervisethepreparation.ofthestatementandtocertifyitsaccuracy,completenessandtruthfulness.Attest:~IamDirectorSstePlann(TitleofOfficeorPosition)OrlandoUtilitiesCommission(NameofResp'ondentorofoneofRespondents)and(TitleofAnyOfficeorPosition,or"Agent")of(NameofAnyotherRespondents)Iamqualifiedbytrainingandexperienceandamchargedwithresponsibilityfor,andhavepreparedsuervisedtherearationof~theforegoingstatementandassuchanofficeroremployeeandagentoftricone((respondent(s)certifythattheforegoingstatementisbasedupon,andisasfullandcompleteascanbesuppliedfromtherecordsofrespondent(s)andthatthestatementistrueandaccurate,tothebestofmyknowledgeandbelief.I~(SignatureofAttestor)DonMoore(Name,TypewrittenorPrinted)Director,SstemPlannin(TitleofAttestor)4-30-79(Date)(35)ceo$3810$Rev(l675)

FirstRevisedSheet',Jo.5.010ORLAHOOUTli.lTlK3Cok<QISSJQQCancellingOriginalSheetNo.5.010RESIDENTIALELECTRICSERVICERATESCHEDULERS1ForresidentialcustomersinsinglefamilydwellingunitswithinOUCservicearea.MinimumBill:CustomerChargeFirst750KNHOver750K';/HCustomerCharge1.9683.5604perKNH83,.3114perKNHTermsofyament:FuelCost:MunicipalTaxandOutsideSee"TermsofPayment"onSheetNo.5.060.Themonthlyratewillbeincreasedordecreasedtoreflectchangesinthefuelcostofdeliveredenergyaboveorbelowabasecostof1.9CperKWH.Themonthlyratechargesplusalladjust-mentsaresubjecttotheMunicipalUtilityTaxwithintheCityofOrlando'ndtoanequivalentchargeoutsidethecity.TheMunicipalUtilityTaxandtheoutsidecitychargedonotapplytoamountsforfuelaboveacostof0.6384perK~ri.ISSUEDSY'.C.L~r,ASSl87AHTSECRETARYKFF"CY1VE:S20ember1q1979 FirstRevisedSheetNo.5.020ORLANDO.UTILI]'IKSCOMMISSIONCancellingOriginalSheetNo.5.020GFNERALSERVICE-NON-DEMANDELECTRICSERVICERATESCHEDULEGSToanycustomerwithaconnectedloadoflessthan50KWwithinOUCservicearea.CustomerCharge$2.94First1000KKk95a1794perKNHOver1000K'~TH93.9834perKWHMinimumBill:Termsof~Pa~eat:FuelCost:MunicipalTaxandOutsideCustomerCharge.See"TermsofPayment"on'SheetNo.5.060.Themonthlyratewillbeincreasedoidecreasedtoreflectchangsinthefuelcostofdeliveredenergyaboveorbelowa.basecostof1.90perKrQi.Themonthlyratecharges,plusalladjust-mentsaresubjecttothoMunicipalUtilityTaxwithintheCityofOrlandoandtoanequivalentchargeoutsidethecity.TheMunicipalUtilityTaxandtheoutsidecitychargedonotapplytoamountsforfuel,aboveacostof0.6384perKNH.IMVKQSY~H.C,I.Lr-.,483/3TANTSKCRKTARYEFP'ECTIVE;September1,1979

Firs"Rv-'sedSheet!Io.5.0300@LAbl90UTILiTIK3COMM)88/OgCancellingOrig'nalSheeCNo.5.030GENERALSERVlCE-DEi~QDDELECTRICSERVICERATESCHEDULEGSDToanycustomerwithaconnectedloadof50KWormorewithinOUCservicearea.,$14.71CustomerChargeDemandChargeFirst25KWorless949.05Over25KW991.57perKWEnergyChargeFirst20,000KWHOver20,000KWH93.3644percGPi=.2.6094perKWHMinimum.Bill:rBillingDemand:PrimaryService:Termsof~Paent:Customerchargeplusdemandcharge.Themaximum15-minuteKWdemandmeasuredduringthebillingperiod.Whenthecustomerownsandmaintainsallequipment,exceptmeteringequipment,necessarytotakeserviceat12,470voltsorhigherandtheserviceismeteredatprimaryvoltage.(1)Themeasureddemandandenergywilleachbedecreasedby2%.(2)Thecalculateddemandchargewillbedecreasedby15%.See"TermsofPayment"SheetNo.5.060.ContinuedonSheetNo.5.031ISNZDSY>H.C.I.le,ASSISTANTSKCRKTARYEPFZCTIYX:Septenber1,1979

ORCWXOOuV'~L,lOZSCOwu~SS~OXORIGINALSRFFTNO.5.031(ContinuedfromSheetNo.5.030)FuelCost:MunicipalTaxandOutsideThemonthlyratewillbeincreasedordecreasedtoreflectchangesinthefuelcostofdeliveredenergyaboveorbelowabasecostof1.94perIGM.Themonthlyratechargesplusalladjust-mentsaresubjecttotheMunicipalUtilityTaxwithintheCityofOrlandoandtoanequivalentchargeoutsidethecity.TheMunicipalUtilityTaxandtheoutside.citychargedonotapplytoamountsforfuelaboveacostof0.6384perrWrl.lSNKOBY~H.C.LUFF,ASslsTAPITsKCRHPRYXFFXCTIVX:September1,1977

Firs+'RevisedSheetNo.5.040UT~L~T~cSCpMMISS(pNCane'1'ngOrigin1Sheet~iIo.5.040STREETLIGHTS;RVICEPKZSCHEDULE'Lservicearea.fueladjustmentaddedwhenapplicable,baseduponanestimatedmonthlyconsumption.EstimatedInsideOutsideMonthly~Cit~CitK'AHStreet,Lihtin-Customerma'<esnoInstallationPayment-CitPublicLihtstodateandCountandPrivateLightsriortoll/5/74:*295Incandescent*250W-Fluorescent*400N-Fluorescent*75WMV-Expressway*100Wi~1V175NMV*175WMVPoleTop*250NMV*250Ni~1VPoleTop400WMV400NMV-Expressway1000NMH100NHPS250WHPS400WHPS3.733.427.022.653.274.694.694.824.828.498.4916.224.217.409.243.733.908.022.653.815.42.5.425.515.519.749.7418.51-4.878'810.591007915435426868969615415436639105162StreetLihtin-CustomerPaysInstallationCosts-CountPublicLihtsandallPrivateLihtsafter11574:175WMV400WMV100NHPS250NHPS400NHPS3.446.902.435.007.103.957.882.805.718.116815439105162FuelCost:Themonthlyratewillbeinceasedordecreasedtoreflectchangesinthefuelcostofdeliveredenergyaboveorbelowabase'ostof1.9CperKNH*Thislightnolongeravailablefornewinstallations.ISSVKOEfiH.C.LLKF,AssiSTAM'ECRETARYEffective:september1,1979 0RIAND0UTIIITIOUSCOHMISSIOHORi'GlhAL8'rl-ZTNQ.5~0>0-TRAFFICSIGNALSERVICERATESCHEDULETSAnywhereinOUCservicearea.Inside-citytraffics'gnalsystemenergyanddemandaretotalizedandbilledmonthlyusingtheGeneralServiceDemandrate.Outside-citytrafficsignalsareindivid-uallymeteredandbilledmonthlyusingtheGeneralServiceNon-Demandrate.185VEO3Y~HCL4j)AS81FIAHTSKCMTARYKFI'ZCTIYK:Seotember1,1977

i'CONTRACTFORINTERCHANGESERVICEBETWEENCITYOFKISSIl'h~lEEIFLORIDA)'/ar),/'NDORLANDOUTILITIESCOi&4LISSIONcFtRSECTION0.1ThisCONTRACTma8eandenteredintothisE-Bay7.Florida,hereinreferredtoasthe"CITY"andtheOrlandoUtilitiesCommissionownedbytheCityofOrlando,FloridaandoperatedundercharterfromtheStateofFloridahereinreferredtoasthe"COMMISSION".WITNESSETHSECTIONOa2WHEREAS,thePartiesheretooperateelectricsystemswhicharedirectlyinterconnectedelectrically,andSECTION0.3WHEREAS,thePartiesheretodeem.itdesirablethatthiscontractbemadefortheinterchangeofelectriccapacityandenergythroughthisinterconnection,andSECTION0.4WHEREAS,suchinterchangemaybebeneficialtoallPartiesinvolved,andSECTIONOa5WHEREAS',eachPartydesirestoestablishthetermsandconditionsofsuchinterchangeofelectriccapacityand,energyforitsrespectivesystem;SECTION0.6NOW,THEREFORE,inconsideration.oftheforegoingandofthemutualbenefitstobeobtainedfromthecovenantsherein,thePartiesheretodoherebyagreeasfollows:ARTICLEITERNOFCONTRACTSECTIONl.l-Term:ThetermofthisCONTRACTshallcommenceonthe~~/dayof~..~.,;/,1977,andshallcontinueineffectforaninitialperiodoften(10)years,andthereaftershallautomaticallybeextendedforsucceedingperiodsofthree(3)yearseach,exceptthatthisCONTRACTmaybecancelledbyeitherPartyattheendofsaidinitialperiod,oranythreeyearextensionthereto,uponwrittennoticetotheotherPartythreeyearspriortotheendoftheinitialperiodorextensionperiod.

ARTICLEIIFACILITIESSECTIOL~J2.1-LocationofFacilities:TheCityandtheCommissionagreetoconstructandmaintaininterconnectionfacilitieslocatedinSection25,Township24South,Range29EastneartheintersectionoftheCommission'ssouthloopelectrictransmissionlineandStateRoad1527.ThisshallbeknownastheTaftInterconnection.LandTheCommissionshallacquireandretaintitletolandnecessaryforinstallingtheseinterconnectionfacilities;StructuresandEuimentTheCityshallprovideandretaintitletoallstructuresandequipmentnecessaryforthinterconnection,however,theCommissionhastherighttoprovideandinstalladditionalstructuresandequipmentinthissubstationatitsdiscretion,providedsuchadditionsdonotdegradethereliabilityoftheinterconnection.SECTION2e3-Maintenanceand0erationofFacilities-TheCommissionshallhavethesoleresponsibilityandrighttooperateandmaintainthesefacilitiesinaccordancewithacceptedelectricutilitypractice.TheattendantcostofmaintainingthesefacilitiesshallbepaidbytheLessorassetforthintheFacilitiesLeaseAgreement.SECTIQH2.4-t~1eterin-Meteringequipmentshallbeinstalledsoastopermitaccuratedetermination,oftheflowofpowerandenergyandreactiveKVAovertheinterconnection.InandOutI61Hmetersshallbethreeelement,fourwireandshallbeequippedwithcontactdevicesfortelemeteringofmeteredquantitiestothecontrolcenters'oftherespectivesystems.IncaseswherepowerandenergyflowstoeitherPartyfromtheotherPartythroughOTHERSYSTENS,adequateandequitablemeteringandaccountingforsuchpowerandenergyshallbeprovidedbythePartiesheretoinamutuallyagreeablemanner.e~ENHmetersshallbetestedbi-annually.TheCommissionshallberesponsibleforperformingthetests,afterreasonablenoticetotheCity,theCityshallhavetherighttohavearepresentativwitnessthetests.C-2 ARTXCLEXIIOPERATIONSECTION3.l-AccessorFacilities:ThePartiesheretowillprovidecommunication,telemetering,frequencycontrolandgenerationcontrolequipmentand/orsuchotherfacilitiesfordispatchingpurposesandforcontrolofpowerflowandflowofreactiveKVAasisnowoxmayhereafterreasonablyberequiredinaccordancewithgood,modernpractice,asdeterminedbytheCommitteeprovidedforinSECTXOM3.3.SECTION3.2-PartiesResonsible-EachPaxtyheretoshallprovide,operateandmaintainatitsowncostandexpense,suchoftheequipmentandfacilitiesasmaybeconstructedpursuanttotheforegoingprovisionsofthisARTICLEIIX.SECTION3.3-0eratinCommittee:EachPartyshallappointarepresentativeandanalternatetoanOperatingCommittee,andsonotifytheotherParty,.TheCommitteeshallmeetattherequestofeitherParty,atatimeandplaceagreeduponbythemembers,andreviewthedutiessetforthherein.Eachrepresentativeandalternateshallbearesponsiblepersonworkingwiththeday-to-dayoperationso'feachrespectivepowersystem.ThisCommitteeshallrepresentthePartiesinallmattersarisingunderthisCONTRACTwhichmaybedelegatedtoitbymutualagreementofthePartieshereto.EachPartyshallcooperateinprovidingtotheOperatingCommitteeallinformationrequiredintheperformanceofitsduties.Suchdutiesshallinclude;butarenotlimitedto,thefollowing(l)PreparationofOperationandMaintenanceSchedules.(2)PreparationofControlandOperatingProcedures.(3)SupervisionofInterchangeAccountingFunctions.(4)NegotiationsforElectricServiceunderallServiceSchedules.(5)NegotiationsforAdditions,Changes,ori>lodificationstothisCONTRACTandSexviceSchedules.IftheOperatingCommitteeisunabletoagreeonanymatterfallingunderitsjurisdiction,suchmattershallbereferredbythemembersoftheOperatingCommitteetotheirPrincipalsfordecision.FailureofthePrincipalstoagreeonanymatterreferredtothemshallnotconstituteabasisforcancellationofthisCONTRACT.AllcommitmentsandagreementsmadebytheCommitteeshallbeevidencedinwriting.2/22/77C-3 SECTION3.4-ReulationofTransferofPowerandEner:ThePartiesheretoagreethat.itistheresponsibilityofeachPartytooperateinamannertoprovideforitsownsystemloadatalltimes,exceptasotherwiseprovidedhereinorasmutuallyagreed,andtoholddeviations-fromnetscheduledeliveriestoaminimum.,Tothisend,eachPartyshallregulategenerationinaccordancewithstandardpracticesoastoavoidmakingobjectionabledemandsuponothersystemsduringnormaloperation.SECTION3.5-Disturbances:EachPartyshall,insofaxaspracticable,soprotect,operateandmaintainitssystemandfacilitiesastoavoiddisturbanceswhichmightcauseimpairmenttoserviceinthesystemsofotherPartiesoftheinterconnection.SECTION3.6-TransferofPowerandEnerThrouhOtherSstems:SincethesystemsofthePartiesheretoarenowdirectlyintercon-nectedwithothersystems,itisrecognizedthatbecauseofthephysicaland,electricalcharacteristicsofthefacilitiesinvolved,anyinterchangeofpointer.mayflowfromonePartythroughothersystemstotheotherParty.Insuchcases,thePartiesagreetomakearrangem'entswithothexsystemsforsuchdeliveriesandtransferssoasnottoburdensuchthirdPartiesandtomaintaingoodrelationshipswithaffectedthirdPartiesfortheoverallcoordinated,bulkpowersysteminFlorida.EachParty,whetherbuyerorseller,shallatalltimesuseitsbest,effortstomaintainsatisfactoryrelationshipswithothersystemstowhichtherespectivesystemsareinterconnected.SECTION3.7-W~sheelin:.EitherPartyshallpermittheuseofitstransmissionfacilitiesfordeliveryofpowerfromathird.PartythroughitssystemtotheotherPartytothiscontractprovidingsuch.tiansferdoesnotplaceanundueburdenonitstransmissionfacilitiesandfurtherprovided:thatasuitableagreementforcompensationcanbereached.4ARTICLEIVELECTRICSERVICESECTION4.1-.ElectricService:Itisrecognizedthattransferofvariousspecificclassesofserviceand.theratesapplicabletoeachclassofelectricservicemustnecessarilydependupontheconditionsexistingfromtimetotime.Thesaleandpurchaseofspecificclassesofelectricserviceandtheterms,arrangementsandratesapplicabletheretoaxesetforthinvariousServiceSchedules,whichSchedules,whenexecutedbythePartiesheretoshallbecomeapartofthisCONTRACT.TheseServiceSchedulesarerespectivelyreferredtoas:ServiceScheduleA-EmergencyInterchangeServiceServiceScheduleB-ShortTermFirmInterchangeServiceServiceScheduleC-EconomyEnergyInterchangeServiceServiceScheduleD-FirmInterchangeService

~~IaSECTION4.2-ScheduledDeliveries:ItisrecognizedthatboththeCityandtheCommissionmaintaininterconnectionswithotherutilities.Forthisreasontheactualflowofpowerintooroutofasystemwouldbethenet.flowmeasuredatseveralmeteringpoints.Therefore,duetothedifficultyofobtainingthesemeteredvaluesandmakingthemagreewithscheduledvalues,unlessotherwiseagreedupon,allbillingsshallbeinaccordancewithscheduleddeliveriesratherthanactualmeterednetinterchangeofpowerbetweentheCityandtheCommissionduringtheperiodofsuchscheduleddeliveries.Thedifferencebetweenscheduleddeliveriesandactualnetdeliveriesshallbedeterminedattheendofeachhour'f-thescheduleddelivery,andthedifference,sodetermined,shallbeclassedasinadvertent'interchange(SeeSection4.3)and-shallbeadjusted,asnearlyaspracticable,duringthefollowinghour,oratsomeothermutuallyacceptabletime.pSECTION4.3-.InadvertentTxansferofElectricEner:InadvertenttransferofenergyisatransferofenergybetweenthesystemsofthePartiesheretoatvariancewiththescheduleddeliveryasaresultoftheinherentphysicalandelectxicalcharacteristicsofthesystems,.limitationsintheequipmentusedtocontroltheflow.ofpowerbetweenthesystemorlimitationsintheoperationofsuchequipment,orasaresultoftemporaryarrangementsfortestingpurposes.Inadvertentenexgyshallbereturnedinkind,attimesmutuallyagreedupon.ARTICLEV~..-ELECTRICGENERATINGCAPACITYSECTION5.l-ElectricGeneratinCa'acittobeProvided.EachPartyagreestocarryitsproportionateshareoftheoperatingreserveas'iscurrentlyestablishedandrecognizedasgoodelectricutilityoperatingpracticeintheStateofFlorida.ARTICLEVIBILLINGANDPAYMENTSECTION6.1-PresentationandPament:Wheninterchangeshaveoccurred,eachofthePartiesshallsubmittotheother,aspromptlyaspossibleafterthefirstbusinessdayofeachmonth,aninterchangebillingstatementandbill,fortheinterchangetransactionsandtherespectiveamountsdueunderthetermsofthisCONTRACTfortheprecedingcalendarmonth.Allsuchbillsshallbedueandpayablewithinten(10)days.Toexpeditebilling,themostrecentcostdatawill'eusedfortheinitialbilling.Anadjustedbillingstatement,ifrequiredtoreflecttheactualcostofthedeliveredenergy,shallbeissuedwithinsixty(60)days.Bydefinition,economyenergyunderServiceScheduleCisnotsubjecttosuchadjustment.C-52/22/77

~~inbonafidedispute,the.undisputedamountshallbepayablewhendue.Upondeterminationofthecorrectamount,the,remainder,ifany>shallbepaidpromptly.ARTICLEViiFORCEMAJEUREANDINDEMNIFICATIONSECTION7.1-ForceMacure:Xncaseeitherpartyheretoshould.-bedelayedinorpreventedfromperformingorcarryingoutanyoftheagreements,covenants,andobligationsmadebyandimposeduponsaidPartybythisCONTRACT,includingallcovenantsand,obligationsmadeintheattachedExhibit(s)andServiceSchedules,byreasonoforthroughstrike,stoppageinlabor,.ailureofcontractorsorsuppliersofmaterials,riot,fire,flood,iceiinvasion,civilwar,commotion,insurrection,militaryorusurped.power,order.of-anyCourtgrantedinanybonafideadverselegalproceedingsor:action,orderofanycivilormilitaryauthorityeitherdefactoorde.jure,=explosion,actofGodorthepublicenemiesoranycausereasonablybeyond'itscontrolandnotattributabletoitsneglect;thenandinsuchcaseorcases,bothpartiesshallberelievedofperformanceunderthisagreementandshallnotbeliabletotheotherPartyfororonaccountofanyloss,damage,injury,,orexpenseresultingfromorarising'utofsuchdelayorprevention;provided.,however,thatthePartysufferingsuchdelayorpreventionshallusedueandpracticable.diligencetoremovethecauseorcausesthereof;andprovided,further,thatneitherPartyshallberequiredbythefokegoingprovisionstosettleastrike.exceptwhen,accordingtoitsownbestjudgment,suchasettlementseemsadvisable.SECTION7.2-Resonsibilitand,Indemnification:EachPartyhere-.to-expressly=agreestoindemnifyandsaveharmlessanddefend.theotheragainstall'claims,demands,costs,orexpenseforloss,damage,orinjurytopersonsorproperty,inanymannerdirectlyorindirectlyconnectedwithorgrowingoutofthegeneration,transmission,oruseofelectriccapacityandenergy,unlesssuchclaimordemandshallariseoutoforresultfromthenegligenceorwilfulmisconductoftheotherParty,itsagents,servants,oremployees;provided,however,thatneitherPartyherebyassumesresponsibilityfordamageorinjurytoemployeesoftheotherPartywheneversaidotherParty'semployeesareonfirstParty'premises.~ARTICLEVIXIMISCELLANEOUS.SECTiON8.1-Naivers:AnywaiveratanytimebyanyPartyheretoofitsrightswithrespecttotheotherPartyorwithrespecttoanymatterarisinginconnectionwiththisCONTRACTshallnotbeconsideredawaiverwithrespecttoanysubsequentdefaultormatter.C-6'2/22/77 SECTXON8.2-SuccessorsandAssins:ThisCONTRACTshallinuretothebenefitofandbebindinguponthePartieshereto,theirrespectivesuccessorsandassigns,andshallnotbeassignablebyeitherPartywithout,thewrittenconsentoftheotherPartyexceptastoasuccessorintheoperationofitspropertiesbyreasonofamerger,-consolidation,saleorforeclosurewheresubstantiallyallsuchproperties..areacquiredbysuchasuccessor.SECTION8.3-Notices:Any.notice,demand,orrequest.requiredorauthorizedbythisCONTRACTshallbedeemedproperlygivenifmailed,postageprepaid,toCityofKissimmee,AttentionCityManagerordulyauthorizedagent,P.O.Box340,Kissimmee,Florida32741inthecaseoftheCXTYandtoOrlandoUtilitiesCommission,P.O.Box3193,Orlando,Florida32802inthecaseoftheCOi~PLXSSXON,ortosuchotherpersonasmaybedesignatedbytheCITYorbytheCOMMISSION.Thedesignationofthepersontobenotifiedorthe.addressofsuchpersonmaybechangedbytheCITYortheCOMMISSIONat.anytime,orfromtimetotime,bysimilarnotice.SECTXON8.4-TaxAd'ustment=Tothecapacity(whenapplicable)andenergychargesofallServiceSchedulesshallbeaddedtheapplicableproportionatepartofanytaxesandassessments(exceptINNXTNESSWHEREOF,thePartieshereto.havecausedthisCONTRACTtobeexecutedbytheirdulyauthorizedofficers,andcopiesdeliveredtoeachParty,asofthedayandyearfirstabovestated.ATTEST:CitofKissimmeeStateorFederalIncome.Taxes),imposedbyanygovernmentalauthorityinexcessofthoseineffectasof'hedateoftheCONTRACTwhichareassessedonthebasisofmetersorcustomers,orthepriceoforrevenuefromelectricenergyorservicesold,orthequantityofenergypurchasedorgeneratedforsaleorsold.Inthe.eventeitherPartypaysa"grossreceiptstax"totheStateofFloridainrespecttointerchangeshereunder,thePartymakingsuchtaxpaymentshallbefullyreimbursedbythePartypurchasingtheelectricenergy.BityManagerMayorATTEST:OrlandoUtilitiesCommissionI/~<~!Secretary9m~~PATE~~President2/22/77C-7 SERVICESCHEDULEA.ENERGEiVCYELECTRICSERVICEITXSAGREEDthisServiceScheduleAwillbeeffectiveunder,andapartof;theCONTRACTdated~~~7'yforinterconnectionandelectr'icservicesupplied,betweentheCitofKissimmeeandtheOrlandoUtilitiesCommission,herein-afterreferredtoasthe"CONTRACT".SECTIONA.l-Term:ThetermofthisServiceScheduleAshallbeconcurrenwithandidenticaltothetermstipulatedinSECTION1.1oftheCONTRACT.SECTIONA.2-EmerencElectricService:Emergencyelectricservice,forthepurposeofthisSchedule,.'shallmeanemergencypowersuppliedtoeitherParty,foruseunderemergencyconditions,whensuch..Party,istemporarilyunabletosupplyitsrequiredcapacityandenergyfromnormally.availablesources.WhenanemergencyconditionarisesonthesystemofeitherParty,the.otherPartyshall.makeavailablecapacityandenergyfromall.itsowngeneratingresourcestotheextentthat,inthesolejudgmentofthesupplier,suchdeliverywillnotjeopardizeservicetosupplier'scustomers.Itisagreedthataconditionofdeficiencyinpowersupplyofeitherofthepartiesheretooccasionedbyshortagesofsystemfacilities,water,fuelorothersupplies,whichhasresultedfromfailuretofollowrecognizedgoodengineeringoroperatingpractice,shallnot(c:,beconsideredanemergencyconditionforthepurposeofthis"-ServiceScheduleA.'.-'tisunderstoodandagreedthat.thecapacityandenergyreceivedbyeitherPartyunderemergencyconditions,whenthe.periodofsuchreceipt.ofcapacityandenergyislessthansixty(60)minutes,shallbeclassifiedasinadvertentinterchangeofenergyandshallbetreatedassetforthinSECTXON3.3,ARTXCLEIII,oftheCONTRACT,ofwhichthisServiceScheduleisapartIfthetakinghereunderofpowerduringanemergencyshallbeforaperiodofsixty(60)minutesormore,allofthecapacityandenergytakenduringtheemergencyshallbetreatedasemergencyelectricservice,asprovidedforunderthis.ServiceScheduleA.Itisalsounderstoodandagreedthatthedurationofemergencyelectricservice,asprovidedforunderthisServiceScheduleA,shallnotexceedseventy-two(72)consecutivehoursforanysingleemergencyafterwhichcapacityandenergy,ifavailable,.willbesuppliedunderotherServiceSchedules.2/22/77

~~SECTXONA.3-PamentforEmexencElectricService:EmergencyelectricservicereceivedbyeitherPartyshall,attheoptionofthesupplyingParty,beaccountedforbyreturnoftheenergyinkindatmutuallyagreeabletimes,orbypaymentattherateorratesbelow-CurrentpricesforthisserviceshallbereadilyavailabletotheotherPartyuponrequest.A.3.1~paent-ReceivingPartyshallpaysupplyingParty'ox'nergyreceivedasemergencyserviceasfollows:.-A.3.1.1'ossil,SteamEner-FoxenergyproducedfromoilfiredsteamgenerationatapricepernetMNHequaltothesumofthefollowingthreeitems=(a)SupplyingParty'sreplacementcostoffueloilusedtogeneratetheenergy,indollarspermillionBTUs,timesthecurrentmonthsystemaveragenetheat.rateinmillionBTUsperMPH.'(b)Mostrecent12-monthaveragefossilsteamproductionoperatingandmaintenanceexpenseexcludingfuel.(c)Allowanceforactualincremental*transmissionlosses,basedonmostrecentload.flowdata.A.3.1.2XnternalCombustionEnineorFossilCombustionTurbineEner-Forenergyproduced,fromfossilcombustionturbinegenerationorinternalcombustionenginegenerationatapricepernetMNHequaltothesumofthefollowingfouritems:(a)Supplier'sreplacementcostoffueloilusedtogeneratetheenergy,indollarspermillionBTUs,timesthecurrentmonthaveragenetheatrateofthecombustionturbineplantor~internalcombustionengineplantusedtogeneratetheenergy,inmillionBTUsperT1$1H.(b)Mostrecent12-monthaveragefossilcombustionturbineoxinternalcombustionengineoperatingexpense,excludingfuelandmaintenance.(c)Forecastaveragelifecyclefossilcombustion-turbineorinternalcombustionenginemaintenancecost.orexpense.(d)Allowanceforactualincrementaltransmissionlosses,basedonmostxecentloadflowdata.2/22/77A-2

~~~4!A.3.2UnusualCosts-If,inordertosupplytheemergencyneedsoftheBuyer,theSellerissubjectedtoabnormalcostsforstarting,banking,orshutdown,oranyotherabnormalcosts,theBuyershallbeadvisedand-mutuallyagreeableadjustmentstothechargesshallbedeterminedbythePartieshereto.INWITNESSWHEREOF,thePartiesheretohavecausedthisServiceScheduleAtobeexecutedbytheirdulyauthorizedofficersandcopiesdeliveredtoeachParty,asofthedateandyearfirstabovestated.ATTEST:CitofKissimmeeCityManagerB.Q.iayorATTEST:OrlandoUtilitiesCommissionBrxQ/~/+Secreary-President2/22j77 SERVXCESCHEDULEBSHORTTERMFIRMELECTRICSERVICEXTISAGREEDthisServiceScheduleB~rillbeeffectiveunder,andapart,of,theCONTRACTdated~~4g/~/T7forinterconnectionandelectricservicesuppliedbetweentheCitofKissimmeeandtheOrlandoUtilitiesCommission,hereinafterreferx'edtoasthe"CONTRACT"-SECTTONB.l-Terra.Thetermoft'isServiceScheduleBshallbeconcurrentwithandidenticaltothetermstipulatedinSECTION1.1oftheCONTRACT.SECTIONB.2-ShortTermFirmElectricService:ShortTermFirmElectricServiceforthepurposeofthisScheduleshallmeanthecapacityandenergysuppliedbyonepax'ty(Seller)totheotherparty(Buyer)for'se.duringperiodsofroutineoremergencyoverhaulandmaintenanceoffacilities,orshorttermperiodsofdeficiencyontheBuyer'ssystem.Anyreserverequirementassociated~riththisfirmdeliveryshallbethexesponsibilityoftheBuyer.XtisintendedthatthePartiesheretowillschedulemaintenanceoffacilitiesinadvance,and,insofaraspossible,duringoff-peakperiods,andthePartieswillreasonablycoordinatetheirrespectivemaintenanceperiodstotheirmutualconveniencesothatreliableserviceonbothsystemscanbeassured.SECTIONB.3-ShortTexmFirmElectricSexviceCommitments:EachShortTermFirmElectric.ServiceCommitmentshallbemadebetweenOperatingCommitteeauthorizedrepresentativesandevidenced.byteletyperequestandcommitmentorconfirmingletterwhichshalldocumentthestartingdate,numberofconsecutivedays,quantity,currentprice,,and,negotiatingrepresentativesofeachparty.TheBuyershallnormallygivetheSellereighthoursadvancenoticeofhisdailycapacityandenergyrequirements.SECTIONB.4-PaentforShortTermFirmElectricService.ThecurrentpriceforthisserviceshallbereadilyavailabletotheotherPartyuponrequest.B.4.1BuyershallpaySellerforShortTermFirmElectricServicemonthlyatthefolio~ringdailycharges.B.4.1.1~Caacit-Annualcost(perMW)ofcapitalrevenuerequirementsfortheproductionfacilitiesusedtoprovidethepower,adjustedtopointofdelivery,dividedby365(daysperyear).,2/22/",7B-1 PLUS8.4.l.2FossilSteamEner-ForenergyproducedfromoilfiredsteamgenerationatapricepernetMWHequaltothesumofthefollowing-fouritems.(a)SupplyingParty'sreplacementcostoffueloilusedtogeneratetheenergy,indollarspermillionBTUs,timesthecurrentmonthsystemaveragenetheatrateinmillionBTUsperMNH.(b)Mostrecent12-monthaveragefossilsteamproductionoperatingandmainte-nanceexpense,excludingfuel.(c)Allowanceforactualincremental'ransmissionlosses,basedonmostrecentloadflowdata.(d)Adjustmentforadministrativeand.generalcostsandexpenses,transmissionoperatingandmaintenanceexpenses,basedonmostrecentfiscalyeardata.B.4.1.3InternalCombustionEnineorFossilCombustioTurbineEner-Forenergyproducedfromfossil~combustionturbinegenerationorinternalcombustionenginegenerationatapricepernetMWHequaltothesumofthefollowingfiveitems:(a)Supplier'sreplacementcostoffueloilusedtogeneratetheenergy,indollarspermillionBTUs,timesthecurrentsystemaveragenetheatrateinmillionBTUsperMWH.(b)Most.recent12-monthaveragefossilcombustionturbineorinternalcombustionengineoperatingexpense,excludingfuelandmaintenance.(c)Historicalaveragelifecyclefossilcombustionturbineorinternalcombustionenginemaintenanceexpense.(d)Allowanceforactualincrementaltransmissionlosses,basedonmostrecentloadflowdata.(e)Adjustmentforadministrativeandgeneralcostsandexpenses,transmissionoperatinandmaintenanceexpenses,based.onthemostrecentfiscalyeardata.42/22/77 Eachyear,within60daysaftertheCONTRACTanniversarydate,thecapacitychargeforproductionfacilitiesshallbereviewedattherequestofeitherparty,whichchargeshallapplyforthesucceedingtwelvemonths.If,inordertosupplytheShortTermFirminterchangeneedsoftheBuyer,theSellerissubjectedtoabnormalcostsforstarting,banking;orshutdown,oranyotherabnormalcost,theBuyershallbeadvisedandmutuallyagreeableadjustmentstothechargesshallbedeterminedbythePartieshereto.SECTIONB.5-BillingAdjustments:Capacitybillinghereundershallmeanthecapacity,expressedinMW,whichtheSelleragreestofurnishandthe,BuyeragreestopayforinaccordancewithSectionB.3.If,atanytime,theBuyerisreceivingpowerundertheprovisionsofSectionB.2above,andtheactualsupplyofpowertotheBuyerexceedsthescheduledcapacitybecauseoflimitationsofthecontrolsystemtoaccuratelycontroltheflowofpowertotheexactamountscheduled,nocapacitychargeforsuchexcesspowerflowshallbemade.IftheSellerisunabletodeliverthecontractedcapacityforanyday,thecapacitybillingforthatdayshallbeadjusteddownwardtoalesserfigurerepresentingthequantitywhichtheSellerisabletodeliver.SuchadjustmentshallbedocumentedviateletypeorletterinaccordancewithSectionB.3.If,a'fteranequipmentmalfunction,theSellerisabletoresumedeliveryofthepreviouslyscheduledamountofcapacityandtheBuyeragreestosuchresumption,thenthereshallbenoadjustmenttothebilling.INWITNESSWHEREOF,thepartiesheretohavecausedthisServiceScheduleBtobeexecutedbytheirdulyauthorizedofficers,andcopiesdeliveredtoeachparty,asofthedayandyearfirstabovestated.ATTEST:CitofKissimmeeCityManageriayorATTEST:OrlandoUtilitiesCommissionsSecretary(President2/22/77 SERVICESCHEDULECECONOMYXNTERCHANGEELECTRICSERVICEXTXSAGREEDthisServiceScheduleCwillbeeffectiveunder,andapartof,theCONTRACTdated~ggp77forinterconnectionandelectricservicesuppliedbetweenthe.CityofKissimmee-andtheOrlandoUtilitiesCommission,.herein-afterreferredtoasthe"CONTRACT".SECTIONC.l-Term:ThetermofthisServiceScheduleCshallbeconcurrentarithandidenticaltothetermstipulatedinSectionl.loftheCONTRACT.SECTIONC.2-EconomInterchaneService:ThepurposeofServiceScheduleCis,.toprovidefornon-firmshort-termenergyinterchangebetweenthepartieshereto,andtoestablishthetermsandconditionsofsuchenergyinterchanges.Thetypesof'energyinterchangeprovidedforwillbe(a)that,commonlyknownaseconomyinterchange,andtheenergysointerchangedshallmeanelectricenergywhichissurplusatthetimetotheneedsofthesellingPartyandwhichiseconomicallyuseableonthesystemofthebuyer.XtistheintentoftheCONTRACTthatbothPartiesengaginginEconomyInterchangeunderthisServiceScheduleCshallshareequallyinthebenefitsderivedfromsuchinterchange.Itisunderstoodand'agreedthataPartyisentitledtoreceiveenergyhereunderonlytotheextent.thatsuchPartyhasalternate.dependablecapacityconcurrentlyavailabletoitthawouldotherwisebeused.SECTIONC.3-InformationonEconomInterchane:EachPartywill,uponrequestoftheotherParty,furnishinformationwithrespecttogeneratingcapacity,energy,andtimespanforwhicheconomyinterchangesupplymight.beavailable.Thisinformationwillincludethecost,-aslaterdefined,ofeconomyenergytheSellercanmakeavailable.TheBuyershallfurnish,thevalue,aslaterdefined,'feconomyenergyitcanutilize.SuchinformationmaybefurnishedbycommunicationbetweenOperatingRepresentativesoftheParties.C.3lCost-Foranyeconomyinterchangetransactionhere-under,thecostofeconomyenergyshallmeantheincrementalexpense,asdeterminedbythesellingParty,whichitwouldincurinsupplyingeconomyenergyhereunder.Thisincrementalexpenseshallreflectboththeincrementalexpenseofgeneratingtheenergyorobtainingtheenergyfromanother2!'"-2t77 source,includingsuchcost,ifany,ofplacingunitsinoperationandoftheincrementalincreaseordecreaseinsystemtransmissionlossesattributabletothetransaction.C.3.2Value-Foranyeconomyinterchangetransactionhere-uncler,thevalueoftheeconomyenergyshallmeantheincrementalexpense,asdeterminedbythebuyingParty<whichitwouldincuriftheeconomyenergywerenot,tobereceived.Thisincrementalexpenseshallxeflectboththeincrementalexpenseofgeneratingorobtainingtheenergyfromanothersource,includingthecost,ifany,ofplacingplantsorunitsinoperation,andoftheincrementalincrease,ordecreaseinsystemtransmissionlossesattributabletothetransaction.C.3.3..AnnualReview-Fromtimetotime,butnotlessthanonceeachyear,theOperatingCommitteeshallreviewthemethodsandbasisusedbyeachPartytodeterminetheabovecostsandvalues.EachPartyshallbethejudgeofthecapacityavailabletosupplyeconomyenergyfromitssystemandofcommitmentstoothersystemswhichmayhavepriorityovertheeconomyenergysupplyhereunder.SECTIONC.4-~Su~~1:Eacheconomyinterchangetransactionshallbeagreeduponbythe.OperatingRepresentativespriortocommence-mentofdeliveryofsucheconomyenergy.TheSellerwillsupplyeconomyenergyuptotheagreedamountofthetransactionfrompowersourcesavailableforsuchsupply,subjecttotheconditions,thatinthejudgmeritofthesellingParty:(a)suchsupplywillnotresultinimpairmentorjeopardyofservicein'tssystem;and(b)adequatetransmissioncapacityisavailableinsysteminterconnections,andinaffectedinternaltransmission,afterallowingforothertransactionssimultaneouslyscheduledoverthesametransmissionsystem.Intheevent.Sellerlosesamajorgeneratingunitsourceofsupply,oratransmissionfacility,anddeterminesitcannolongercontinuethedeliveryofeconomyenergy,theBuyershall,assoonaspossible,supplyitsownenergyrequirements.SellershallgiveBuyerat,leastthirty(30)minutesnoticepriortointerruptingthedeliveryofeconomyenergytotheBuyer.SECTIONCe5'-Confirmation:EachtransactionshallbedocumentedbytheBuyingPartywithintwenty-four(24)hoursviateletypeorloggedtelephoneconfirmationofdate,timespan,quantity,priceandnegotiatingrepresentativesofeachParty.2/22/77C-2 SECTIONC.6-,BasisforSettlement:Thebasisofsettlementfor,economyenergyhereundershallbeat,theratedeterminedtobeone-half(0.5}thesumof(a)thecostasdefinedinSECTIONC.3.1incurredinsupplyingsuchenergyand(b)thevalueasdefinedinSECTIONC.3.2ofsuchenergytothebuyingParty.INWITNESS'WHEREOF,thePartiesheretohavecausedthisServiceScheduleCtobeexecutedbytheirduly.authorizedofficers,andcopiesdeliveredtoeachParty,asofthedayandyearfirstabove.stated.ATTEST:Cit,ofKissimmeeCityManager-MorATTEST:OrlandoUtil'i:tie'sCommissionB4A+/>PkSecretaryPresident,C-32/22/77 SERVICESCHEDULEDFIRMELECTRICSERVICEITISAGREEDthisServiceSchedule.Dwillbeeffectiveunder,andapartof,theCONTRACTdated~mJ197forinterconnectionandelectricservicesuppliedbetweentheCityofKissimmeeandthe.OrlandoUtilitiesCommission,herein-afterreferredtoasthe"CONTRACT".SECTIOND.l-Term:,Thetermof,thisServiceScheduleDshall,beconcurrentwithandidenticaltothetermstipulatedinSECTION1.1oftheCONTRACT;SECTIOND.2.-FirmElectricService:FirmelectricserviceshallmeancapacityandtheaccompanyingenergywherebyoneParty(Seller)shall.delivertotheotherParty(Buyer)aftercommitmentcertainquantities-ofcapacityandtheaccompanyingenergy-TheBuyerwillnormally.supplytotheSeller,duringthecommitmentperiod,anadvancedailyscheduleofcapacityandaccompanyingenergytobedeliveredhereunder.TheSellershallmakeeveryefforttoconformwiththeBuyer'sdailyschedulesuptotheamountofthefirmelectricservicecommitment.SECTIOiVD-3--FirmServiceCommitments:EachPartywilldetermineitsneedsforandavailabilityoffirminterchangeservicefromtime+otimeand.willnegotiatewiththeotherPartyforsuchservice.TotheextentthatsuchserviceisrequestedbyonePartyandisdesiredtobemadeavailablebytheotherParty,acommitment,shall;bemadebetweenthePartiesheretoforsuchservice.'achfirminterchangeservicecommitmentshallnotexceedatermofthirty-si'x(36)months,norbelessthanatermoftwelve(12)months.Any.suchcommitmentshallbeevidencedbyduplicatecopiesofaletterofcommitmentfromtheBuyertotheSellerandsignedbytheBuyer,whichdocumentsshallprovideappropriatespacethereonforacceptancebytheSellerandwhichshallbesignedinduplicatebytheSellerwithin30daysasevidenceofsuchacceptanceandonecopythereofreturnedtoBuyer.SECTIOND-4-PamentforService:ForfirmelectricservicetheSellereachmonthanamountforcapacityandenergycomputedattnefollowingmonthlycharges:D.4.1~Caacit-Thecapacitychargeshallbenegctiateclforeachfirmelectricservicecommitmentand.suchchargesshallbesetforthintheletterafcommitmentreferredtoinSECTIOND.3.D-1?/22/77 D.4.2~Energ-Theener'gychargeshallbenegotiatedforeachfirmelectricservicecommitmentandsuchchargesshallbesetforthintheletter'fcommitmentreferredtoinSECTIOND.3.SECTIOND.5-CaacitBillin:Capacitybillinghereundershallbethe'firmelectricservicecapacitycommitmentin..megawatts(MW)asestablishedinSECTIOND3gunlessadjustedassetforthin*1SECTIOND.6-BillinAd'ustmentsWithinContractPeriod=XntheeventthePartieshavereachedanagreementuponthetermsofacommitmentunderthisServiceScheduleDandtheBuyerrequeststheSellertodeliverpoweruptotheamountofthethenestablishedbillingcommitment,whichpower,afterreasonablenotice(minimumoffourhours)fromtheBuyertotheSeller,Sellerfailstomakeavailable,thecapacitybillingforthatdayshallbeadjusteddownwardtoalesserfigurerepresentingthequantitywhichtheSelleriswillingandabletomakeavailable(forbillingadjustmentsunderthissection,adayshall,consist.of1/30ofamonth).XtistheintentofthePartiesthatmalfunctionsofsystemfacilitiesshallbeconsideredreasonablybeyondthecontrolof,eitherParty.Intheevent,ofsuchmalfunctionstotheSeller'equipmentduringthetermofafirmelectricservicecommitment,iftheSellerisunabletodeliverpoweruptotheamountofthefirmelectricservicecommitment,thenthecapacitybillingforthatdayshallbeadjusteddownwardtoa.lesserfigurerepresentingihequantitywhichtheSelleriswillingandabletomakeavailable.Xfa'fteramalfunction,theSellerisabletoresumedeliveryofthefullamountofthefirmelectricserviceandtheBuyeragreestosuchresumption,thenthereshallbenoadjustmenttothecapacitybilling.I,Thetimeintervalsfordeterminingthebillingadjustmentshallbethe-sixty(60)minuteintegratedpowerdemandbetweentheclockhours.It'isagreedtelemeteredreadingsmaybeused.forthispurpose.XNWITNESSWHEREOF,thePartiesheretohavecausedthisServiceScheduleDtobeexecutedbytheirdulyauthorizedofficers,andcopiesdeliveredtoeachParty,asofthedayandyearfirstabovestated.ATTEST:CitofKissimmeeCityManagerMayorATTEST-OrlandoUtilitiesCommissionSecretaryPresident')/'))lacD-2

~IQjfQ.o~L.~gc~./5-7CONTRACTFORINTERC:"KXCESERVICEBET'A:":"NCITYOFGAIN"SVILLE,FLORIDA,AND'~/7/(;,~/(/lg,~~~~ORLQEOUTILITIESCOPESSIONSECTION0.1ThisCONTRACTmadeandenteredintothis7thdayof>ecru>r9r~~78byandbetweentheCityofGainesville,Florida,amunicipalcorporationorganizedandexistingunderthelawsoftheStateofFlor-da,hereinreferredtoasthe"CITY"andtheOrlandoUtilitiesCommissionos>edbytheCityofOrlando,FloridaandopeatedundercharterfromtheStateofFlorida,hereinreferred,toasthe"CO:EMISSION".WITNESSETH.SECTION0.2WHEREAS,.theparties-heretooperate.electricsystemswhich.areindirectlyelectricallyinterconnectedthroughtheelectrictrans-missionsystemsofoehers,and1SECTION0.3hHEREAS,thepartiesheretodeeŽiedesirablethatthiscone"accbemadefo"theinterchangeofelectriccapacityandenergythroughthesystemsofothers,andSECTION0.4WHEREAS,suchintercnangethroughthesystemsofoenersispe.iccedunderelectrictariffsonfilerichthefederalEnergyRegu'a-toryCommissionandSECTION0.5WHEREAS,"suchinterchangemaybebeneficialtoallparties5.nvol"ed,andSECION0.6WHEREAS,eachpartydes'rsto'establ'shchetermsandcondi-cio..sofsuchinterchangeofelectriccapacityandenergyforitsrespecivsy-cm;SECTION0.7NOWTHROREinconsiderationoftheforegoingandofthemclabeneitstobeobcaineafromchecovenantsherein,theoarciesheretodoherebyagreeasfolio~'s:

ARTICLEITER~'.OFCONTRACTSECTION1.1-Ter:TheeermofthisCONTRACTshallcorn=.enceonthe7thdayof~e><<ax9i~>78andshallcontinueinafreetuntilcanceledbyeicherpartyupononeyear'swrittennoticetotheotherparty;providedhowever.thatthetermofch'scontractshallnotbeforaperiodlessthanthe~termofanyserviceschedulecommitmenthereunder.ARTICLEIIINTERCH<~lGKOFCAPACITYA.H)EN~MGYSECTION2.1-Interchange:Itisrecognizedthatinterchangeofvariousspecificclassesofservicecanbemadebyeachpartytotheotherinfurtheranceofthapurposesofthiscontract.Eitherpartydesiringdeliveryofcapacityorenergymayrequestsamefromtimetotime,and....,=.the,paxty.xeceivin~~such.request,shall-promptlyconsidextherequestzndinformtheotherpartyastotheextenttowhichtherequestwillbegranted,andschedulesofdeliveryshalltherebybemutuallyagreedupon'ARTICLEIXIOPERATIONSECTION3.1-AccssorvFacilities:Thepartieshereeowi"1provideco'mnication,tel~etering,generationcontrolequipmentand/orsuchotherfacilitiesfordispatchingpurposesandforcontrolofpowerflowandflowofreact'rek~lAasisnowormzyhereafterreasonablyberequiredinaccordancewithgood,modernpractice,asdeterminedbyeheCoieteeprovidedforinSction3.3.SECTION3.2-Partiesandfzc'litieszsaythisARTICLEIII.Resoonsible:Eachpareyheretoshzllorovide,aelcsowncostzd2xpesa>suezQrmeequ'n=nebeusedpursuanttotheforegoin~provisonsof.SECTION3.3-OoerzcinzCot,itcae:Eachpartysha'1appoin"arepresen-tativeandan'ternatetotheOperatingCocitcae,zndsonotifyeheothe:party.ThisCo~icteeshallmeetattherequestofeitherparty,atatimeandplaceagreduponbytheneherszndreviewthedutiessetforthherein.Eachrepresentativeandalcernaeeshallbearesponsiolepersonwork'ng"ichtheday-to-dayooeracionsofeachrespectivepowersyst.TnisCowiecaeshallrepresentthepartiesinallatta".sarisingunderthisCONTRACTwhichnaybedelegatedeoicoy".ealagreementoitneparr.'ashaeo.Ezchpartyshallcoooeateinprov'dingtochOoerat'ngCoc~icceeallinformationrequiredincheperfo~zncaofiesduties.Suchd.e.esshallincludebutarenotlimitedeo,thefollowing:

(1)P"eparationofOperationand~~faintenanceSchedules.(2)P"eparationofConCrolandOpertingProcedires.(3)SupervisionofInterchangeAccountingEunctions.(4)NegociationsforElectricServiceCommitmentsunderallServiceSchedulesasauthorizedbytherespectivegoverningco~issions.IftheOperatingCotrmittaeisunabletoagreeonanymatterfallingunderitsjurisdiction,suchmattershallbereferredbythemembersoftheOperatingCo~ttaetotheirPrincipalsfordecision.AllcommitmentsandagreoŽensmadebytheCo~itteeshallbeevidencedinwriting.SECTION3.~-RegulationofTransferofPowerandEner~:Thepartiesheretoagreethatitistheresponsibilityofeachpartytoooerateinamannertop"ovideforitsownsystemloadatalltimes,exceptasother-wisaprov'dednereinorasmutuallyagreed,andtoholddeviationsfrom'--net-scheduled-dekiveries-"ta-a"minimum.Tothisend',eachparty"shallprovideancoperateautomaticgenerationcontr'olequiprentinaccordancewithstand-rdpracticesoasCoavoidmakingobjectionabledemandsuponothersystesdur'ngnormloperation.SECTION3.5-Disturbncs:Eachpartysha'1,insoa:aspracc'cab'e,soproccc,o"rateandmaintainitssystemandfacil'tiesastoavoiddisturbancswhichm'ghtcausaimpairmenttoserv'ceinthesystei..sofotnerparties.SECTIO'.f3.6-TransferofPowerandEnerThroughOtherSvsts:Sincethe,syste=sofcnepartiesheretoarenowdirectlyinterconnectedwithothersysces,itisrecognizedthatbecauseofthephysicaland.electrica~characteristicsofthefacilitiesinvolved,anyinterchangeofpowerwillflowfro,onepartythroughothrsystemstotheotheroarty.Insuchcases)cii-pacesagrcoencavocoma~Asacisf8c0tarrangemeiltswitn'otne"syste;sforsuchdeliveriesandtransfersso'asnottoburdensuch-hirepa"ciasandcomalncaingoodrelat'onshipswi"haffecteccnirdpatiesfort..eoverallcoordinatedbul!c.powersysteminPlorida.E?chparc'hecnarbuyerorse3.1~sha~1al0useicsestaf'rs'maintan=-=a1cimes,sacisfccoryrelaconshipswithochersystemstownicnthe"espectivesystemsareinterconnected,i..clud'ngarrangementsforth'rdpercyprotectionandcompensation.

-ARTCLIVELECTRICSERVICESECTION4.1-ElectricService:Itisrecognizedthattransactionsunderthevariousspecificclassesofserviceandtheratesapplicabletoeachclassofelectricservicemustnecessarilydependuponthecondi.tionsexistingfromtimetotime.Thesalasandpurchasesunderspecificclassesofelectric'service,andtheters,arrangeeatsandratesapplicabletheretoaxesetforthinvariousServi.ceScnedules,whichSchedules,whenexecutedbythepartiesheretoshallbecomeapaxt.ofthisCOVZRACT.TheseServiceSchedulesarexespectivelyreferredtoas:ServiceScheduleA-EmergencyInterchangeServiceServiceSchedule3-ShortTermPixmInterchangeService"'""'Service-Schedule'C'Economy'nergy'nterchangeService"'"""'Service.ScheduleD-FirmInterchangeServiceAdditionalServiceSchdu'esmaybeaddedfrot'totieas;utuallyagreedtobythepartiestothiscontract.SECTION4.2-ScheduledDeliveries:Itisxecognizedthatboth'theCITYandtheCOi~QIISSIO<<maintainmultipleinterconnectionswithothe-utilities.Porthisreasontheactual'lowofpowerintooroutofasystemwouldbethenetflowmeasuredatseveralmeteringpoints.Therefore"duetothedifficultyofobtain.ngthesemeteredvaluesandmakingthemagreewithscheduledvalises,unlessotherwisaagreedupon,allbillingsshallbeinaccordancewithscheduleddeliveriesratherthanactualmeterednetinterchangeofpower.Thedifferencebetweenscheduleddel've.iesandactualnetdel'variesshalloedete~inedattheendofeachhourofthescheduleddelivery>andthedifference,so'eterned,shallbe,classedas'nadver"antinterchang(Section4.3)andshallbeadjusted,asnearlyaspract'cable,duringthefollowinghou",oratsomaothermutua'lyacceptablet'=e.SECTION4.3-Inadver"entTransferofElectricEnerpInadvertenttransferofenergyisatransferofenergybetweensystemsatvariancewiththescheduleddeliveyasaresultoftheinherentphysicalandelectricalcharacterstiesofthesystems,limitationsinthe-ecuipmentusedtocontroltheflowofpowerbetweenthesystemsorlimitationsintheopera,tionofsuchecuipment,orasaresultoftporryarrangementsfortestingpurposes.*~Sincethpartiesheretoarenotd"ectlyinteconnected,inadvertentenergyisdatelinedasrhediffaencebetweenscheduleddeliveriesandactualnetdeliveriesas-eteredattheirdirectinterconnect'onsw'thotherutilities.Asobigatedundertheirexistingcontracts'ithsuchotheruilities,thepartiesag"eetoarran"efortheretrnocinadvertentenergvwitharfecacthirdparties.InadvertentenerŽyshallbereturnedinkindattimes=.uua'agreedI-'pon-naccordance<<ithestablshedelectricutilityop=rtingpracticeintheStatep==logida.

ARTXCLEVELECTRICGENERATINGCAPACITYSECTION5.1-ElectricGeneratinCaoacittobeProvided:EachpartyagreestocarryitsproportionateshareoitheoperatingreservesasiscurrentlyestablishedandrecognizedasgoodelectricutilityoperatingpracticeinthStateofFlorida.ARTXCLEVXHETER'HtGPROVXSXONSThepartiesheretohaveinstalledthenecessarymeteringequipmenttopermiJ:chedetermnationoitheamountsoflectricpowerzndenergytrznszerredintoooutoftheirsystemstnroughtheirdirectintercon-nectionswihotherutilities.Suchmeteringisoperztedanc.maintainedinaccordancewththeparties'xistinginterconnectioncontracts..~8~-,>>w'-i~~!~.frj',~"~e~Žf!."-".?'"~~?':.ARTXCLEVIXBILLINGA.ii)PAYiLNTSECTION7.1-Prese..cationzndPa-.ant:~Zneninterchaeshaveoccurred.e.chofthpartiesshallsubmittotheother,aspromptlyaspossibleafcerchefirstbusinessdayozeachmonth,zninterchangebillingstatemencfothinterchangetransactionsandtherespectivea=ou,tsduau..derthece~softhisCON~ACTfortheprecedingcalendzrmonth.Allinvoicesshallbedueandpayablewithinten(10)days.Toexpeditebilling,themostrecentcostdecawillbeusedfo"theinitia'illing.Anadjustedbillingstatement,ifrequiredtoreflecttheactualcostofthedeliveredenergy,shallbeissuedwithin,sixcy(60)days.Bydei-nition,economyenergyunderServiceScheduleCisnotsubjecttosuchadjustment.~trSECIION7.2-DisoucedBill:zidedispute,theundisouted.determinationozthacorrectpaldprompclj~Incase,anyportionofanybillisinbonaamountshalloepayablewhendue.Uponamount,therea'..de=,,'fznr,shal.lbeARTICLEVIIIFORCEtQ.JEUREA%)INODLfIFICATIONinozpreventedzromperformingorcarry'ngoucanyoftneagreents,covenants,andooligationsmadeb~~andimposeduponsa'dpartyoythisCONT~<CT,includingallcovenncsandobl'gationsmadeintheattachedxhbit(s)andServiceSchedules,byreasonozorthroughstri.estoppageinlabor,faiureofcontractorsorsupoliersofmate'als,riot,fire,ood,ice,invasion,civilwzr,commotion,insurrect'on,militaryor1 (usurpedpower,orderofanycourtgrantedinanybonafideadverselegaproceedingsoraction,orderofanycivilozm'litaryauthorityeitherdefactoordejureexplosionactofGodozthepublicen~miesozanycausareasonablybeyonditscontrolandnotattributabletoitsneglect;thenandinsuchcasaocases,botnpatiesshallberelivedofperform-anceunderthisagreementandshall'notbeliabletotheothe-paztyfororonaccountofanyloss,damage,injury,orexpenseresultingfromorazisingoutofsuchdelayorprevention;prov.ded,however,tnatthepartysuffering,suchdelayozpreventionshallusedueand,practicablediligencetoremovethacauseorcausesthereof;andprovided.,further,thatneitherpartyshallberequiredbytheforegoingprovisionstosettleastrikeexceptwhen,accordingtoitsownbestjudgment,suchasettlement'seemsadvisable.SECTZO'88.2-Resonsbilitvandindenification:Eachpartyhereto'xpresslyagreestoind'ennifyandsaveharmlessanddefendtheotheragainstallclaims,demands,costs,o"expenseforloss,damage,ozinjurytopersonsorproperty,inanymannerdirectlyorindirectlyconnectedwithorgrowingoutofthegeneration,transmission,oruseof-=";,<',~.-"".eXectzic'capacity'and.energy;mless-sechclaimor'demand'shallarfse""outoforresultfromthenegligenceozwilfulmisconductoftheotherparty,itsagents,servants,oreployees;provided,however,thatneitherparyshallbe=asponsiblefordamageorinjurytoanp'o"eesoftheothezpartywheneversaidotherparty'saployeasazeonfirstoarty'sozemises"ut.er,t.".isCQ'.iTRACTinnowa--eatesacontac-tu>>relationshipo=onepartywitnthecustc.ezofanoth".partyneitherdoesitcreateadutythereto.ARTZCLELC>fiSCELLQiEOUSSECTZOYt9.1-Waivezs:Anywaiveratanytine,byanypartyheretoof'tsrightswithzespecttotheotherpartyorwithresp'ecttoanynatterarisinginconnect'onw~tntnisCO".TRACTshallnotbecons'Iredas~,py.++,~+y~~ii,~~~'IC'~~~-"~~"~ver"~Wthrespect'to'~nysubsequehtde'faultozSECTZON~9.2-SuccessorsandAssizns:This'ONTRACTshallinu"etothebenezitozandoeon~'ngupon'thepaziesheretopzheiaspect:.'e'successosand=ss'nsia..BhaLnobeassignaoeb"eit.."p:tywihoutthewittenconsecoftheotherpartyexceptastoasuccessorintheopeatonofitspropertiesbyreasonofamegez,consolidat'on,saleorforeclosurewhetsubstantia'lyallsuchpropertiesareaccuizedbysucnasuccessor.SECTZOH9.3-'.fotices:Anynotice,deand,orreques-zeqizedorauthorisedbytnisCOlfTRACTshalloedeemedoroperlygivenifzwiled,.ostageprepaid,totheCiaK~I~AGER,Cil"'EGAZ'iESVZLLE,P.O.BOX490pGAZKESVZLpELORZDA,32602'thecaseo.theCi~8andtotheOR~it)0UTZLZTZSCO':fZSSZOÃpP~0~SO!:393,ORLANDO,LORDA,3-SOinthecasaoftheCO'."fiSSZOY,oztosuchotherpersonasnaybedesinatedoytneCi~ioz"theCO'"fZSSZO.'f.Thedesi~na<<'no=thapersontobenotifiedortheaddressofsuchpersonnaybechan<<dbyt'".~Cii!oztheCO.'2fZSSZO~fatanyci.eorfronti.etotime,bysinilrnot'ce.

SECTXO'.f9.~-TaiAd'ustnent:Tothecapacity(whe..applicable)andenergychargesofal3.ServiceSchedlessha3.3.beaddedtheapplicab~eproportiontepartofanytacesandassessments(acceptStateorFederalIncomeTaxes),inposedbyanygovernnentalauthorityinaccessofthoseineffectasoEthedateofthisCON~<~CTwhichareassessedonthebasisofuetersorcustoners,orthepriceoforrevenueEro~electricenergyorservicesold,orthequantityofenergypurchasedorgeneratedEorsaleorsold.intheeventeitherpartypaysagross.receiptstav"totheStateofFloridainrespecttointerchangeshereunder,thepartymakingsuchtaxpaynentshallbefullyreimbursedbythepartypurchasing,theelectricenergy.D4WKWiiSSWHEREOF,thepartiesheretohavecausedthisCONTRACTto'beexecutedbytheirdulyauthorizedofficers,andcopiesdeliveredtoeachparty,asofthedayandyearfirstabovestatedATTEST:ORLA%)0UTiLTTiESCO~2.XSSIO.'ii;.!.'.~BY:.>.A.'%PA>.WrBY:,C.CSecxetar'yPresidentA'TEST:CleroftheCocnissionCiTYCFGAaS'ii".,FLORID~~ihyor-Co~ssiona"44hPe~*gasy(qp~Ap>rovedastofGrnapdcarrytoss')4w1~FHl~o<D~~~'"~i~~ia~rpe;I~iw~~,m...0<iC8S,cgj14gGtjtttkL)MfAC/,;,.<<z>.C';C.'.--."

SERVICESCHEDULEAE'.iiRGKNCYI~tTERCF<tGESERVICEITISAGREEDthsServiceSchedu3.eAwillbaeffectiveunder,andpartof,theCOitidACTdatedFeazuar7,1978forelectricservicebetweenthe.CitofGainasville,Floridaand,theOrlandoUt'itiesCOELELissionhereinaftazreferred.toasthe"CONTRACT".SECTIONA.l-Term:ThetermofthisServiceScheduleAshallbeconcur-rentwithandidanticatothe,termstipulatedinSection1.1oftheCONTRACT.SECTIONA.2-EmerencIncerchanoeService:EmeroencyInterchangeService,forthapurposeofthisSchedule,snailmeanemergencypowersuppliedbyoneparty'(Seller)totheotherparty,(Buyer)foruseunder'"';"'-emer'gency~.conditi'ons,'when."theBuyer,'ixe'tocauses"beyonditscontrol.istemporarilyunabletosupplycapacityandenergyforallitscustomersfromnormallyavailablesources.~M1enan>>emergencyconditionariseson,thasyscanofcheBu'arthaSalleShallSu+plvrag~assadamer'?2,pov'arromitsavailablasourc>>snoc0cherwisacc.=-..ict>>dcocna2::.Cant]~~FCfri111z2ShaS032judy>>an0EchaS2412)tn>>generationan','caiveyofsuchpower<<"11.Ocjopard:2servicetoS>>112.'sc~sec=sorreliabilityofSeller'ssystem.Icisagaedthataconditionofdefi-(ciancyirLpowersupplyofetharofthepart'esheretooccas.on>>dbyshortagesofsystaELfac'1'ties,water,fuelorochersuppl'as,whichhasresultedfrom,failuretofollowrecognizedgoodengineeringo-oparacingpractice,shallnotbeconsideredanemerge..cyconditionforthapurposeofthisServiceSchadu'2A.Itisunderstoodandagreedthatthecapactya..denergyreceivedbyaicherpatyunder2ma=-2Lc)co..dns)whanchapar3.0d0suchzacaipt'""oajac='-Cy"2!.d'"ena'rg~~jL~s~1'es'sthans':ctj(60).'.z~ut'as,slLallb>>classi-fiedasinadvertentcrP.Lszez'felectican2gyandshallbecreatedassetforthinSeccion'.3,Article'IV,oftheCOP~-'.CT,ofwhichthisSa-.icaSchedule'sapa".Providacfhow>>va=chata'an>>gysppl'ycombustioncurb>>nPsunderch'sSarvic>>Schepu'L>>Ashallb>>aseargancyinterchangeservice.Ifthetakingheraund"ooowe-duringanaargencyshallbaforaperiodofsixty(60)-incasormora,allochacapac-tyanda..argy,takenunderthisservicescheduleduringthearnegancyshallbetreatedasemergencyintercna..gaservice,asprovidedforunde.thisServiceSc:ladu12ADIcisalsoundarstoodanda~readchalthdLLation0amargancjincacnangeservic,asprovide"forLn!.erthisSezv'caSchadulA,sha3.1noc2:ccad,seventy-cwo(72)consecutivehoursforanysingleemergencyafterwh'chthacapacic)2!ldaner=:-,ifavailab',wi11bespo].iadunderotherservi"2schedules.

StctissA.3-~<JnealinlItsh-ihatheresponsibilityotnaBuyertom!<aarrangementsfortxansferofcapacityandenergythroughinterveningsystems.Žionacost,ifany,ofsuchtransfershallbepaidbytheBuyer.ISECTIONA;4-PatentforEverencInterchangeService:EmergencyInterchangeServicereceivedbytheBuyershallbeaccountedforbypayentasdefinedbelow.Operatingandaccountingrecordswillprovidethebasisfordeterminationofsuchcnaxges.Pricesforthisservice,basedonthemostrecentcostdata,shallbereadilyavailabletotheothepartyuponrequest.A.d.l~pa'nt-XtisunderstoodandatraedthatthapriceofenergysoldunderthisServiceScheduleAshallbebasedontheadditionalcosttothesellerofgeneratingtheenergy.Receivingpartyshallpaysupplyingpartyforenergyreceivedasemergencyinterchangeserviceasfollows:'"A'."4.'1';1"':'Fossi'team"Ener-'orener~~suppIiedfromanh'ssignedfossilsteamgeneratingunit(s),anamountpermVndeliveredequaltothesumofthefolio"ingitems:Suppyin-partyseplac~:.?entcosoffuelusedBTUS)timesthecuxentmonhsaveragenetheatrateoftherespect'veun't(s)usedtog"..ratetheenergy,inmillionBTUsper=p'"no)Hostrecent12r?onthaveragefossilsteanproductionoperatingandmaintenanceezpense,ezcldingfuel,fortheunit(s)usedtogeneatetheenergy.c)Compensationfortxansm'ssionlossesincurredbythtransacton,based.onmostrace?.tload,,halo-.da,tato,~,s,aao>>asaqaua~raaJ'rwIe~s~<'s'deta".znetransmissionossasaprcen".agofthetransaction(/L).Using(a)and(b)above,A.4.1.2CombustionTurbineEnx-Forenergysuppliedfroanassignedcombustonturbinel'n't(s),anamountper~cldeliveredeualtothesumofthefollowin~item-:

~~a)Supplyingparty'sreplacementcostoffueloilusedtogeneratetheenergy,indollarspermillionBTUs,timesthecurrentmonth'saveragenethetIrateoftheco=bustionturoineunit(s)usedtogeneratetheenergy,in..millionBTUspermph.b)Hostrecent12monthaveragecombustionturbineoperatingexpense,excludingfuelandma:ntenance.c)Averagelifecyclecombust'onturbinemaintenancecostorezpense.A.4.2d)Compensationfortransm'ssionlossesincurredby,thetransaction,basedonmostrecentloadflo"datatodeterminetrans.issionlossasapercentageofthetransaction(%L).Using(a),(b)and,(c)above,(d)(a)+(b)+(c)ql-("L-.,1OO),~'dd'ionalCosts-Whenever,inordertosupplytheemer-gencyneedsoftheBuyer,theSellerissubjectedtonormaladditionalcostssuchasforstrtig,bankingorshutdo~nioranyothernormaladd'tionalcostsincurredbythetransact'on,theBuyershallbeacv'seda..dautallyagreeableadjustmentstothechargesshalloedte~inedbythepartieshereto.A.4.3LimitedCostData-ltistneintentofbothpartiestodevelop'andmaintainnecessarydatathatisrequiredtodeterminepayentforZmer~encElectricServiceEner~ho~ever,vhentheSeller'sexpnsedataislimitedornotavailabe(assoecifiedinthissection),theBuye-'hallbeadvisedpriortosuchtransactionandchar~sshallbdeterminedasmutuallyaoreedbythepart'eshe"eto.

NIT(lESS@RE.hEOF,thepartiesheretohavecausedthisServiceScheduleAtobeexecutedbytheirdulyauthorizedofficers,andcopiesdeliveredtoeachparty,asofthedateandyearfirstaborestated.ATTEST:0lUZrDOUTILITIESCO~QfISSIONBBr./w~<i'eereEaryBY:Pres~~dentATTEST:CITYOFGAI.iESVILLE,FLORIIIApgCler-oftheCommissionMayor-CommissionerP>><<h'l~aid<<'hI(+~gheyh.<<h.'(gr,oahierhh.~<<<<h<<4t'W4>>.hiApprovedastoformartdcorractrr>ssB~OseR.Fata;,CityÃftc;;;eyCi~'J(pfQ=ioes<ille;Florida%fg>>l~~,~H'<<h<<<<6<<:.~'C(W'.1~,~y,\4;.<<<<,hh<<t~)I'<<<<~<<<<hIlee~;~qt<<<<'h<<:y*hhP"~Pri~'%4+ah~flIW~<<<<

t~s~j~4SERVICESC:-:EOULEBSHORTTER~(FIR'tINTERCF~hsGESERVICEITiSAGREEDthisServiceScheduleBwillbeeffectiveunder,andapartof,thaCO"lT~XCTdatedFebruar7,1978forelectricservicebat-aentheCitofGainasvilleFloridaandtheOrlandoUtilitiesCo~issionhereinafterreferredtoas'he"CONTRACT".SECTIONB.l-Term:ThetermofthisServiceScheduleBshallbeconcurrentuithandidenticaltothetermstiouatadinSection1.1oftheCONTRACT.'ECTIO!TBa2-ShorteraPizmInterchaneService:ShortTermfirmInterchangeServicefor.thepurposeofthisScheduleshallmeanthecapacityandenergysuopliedbyoneparty(Seller)tothaotherparty'-'-"'-";:="'"".S(Buyer)pfor;.usadurban~;periods.of.,routine,oz,emergencyoverhaul.andma'ananceoffaciliti'es,orshorttermperiodsof,deficiencyontheBuyer'ssyst~~.Anyreserve'equirementassociated"ith,thisfirmdeliveryshallbetheresponsibilityoftheBuyer.Itisintendedthatt:-.epartieshereto.'il:schedlamaentanancao"gacilitiasinadvance,a..dpinsosaraspossiblepdu-.30r-peaÃpeiocsp2ndcnapaItiesasocablycoor"'na"echirrespectiveai..tan.".cepe"iodstothi.utualconveniencesotna"reliableserviceonbo>>hsys>>aiscanbeassured~,sas~ISECTIO.'iBe3-Shor>>TermFirmIntercha..eServiceCo.itments:EachShor>>TermE'irmElectr'cInterchangeCommitmentshallbemadebetweenOperatingCor~itteauthorizedreoresantativesandevidencedoyteletype,or-..ttanrequestandco~itment,whichshalldocumentthestartingda"e,numberofconsecutivedays,quantity,currentprice,andnegotiating"ar=santativasofeachparty.Tha3uyarshallno=.llygivetheSeller'"""""'~'gz>"(8)"haurradvance<notice"of-thisdainty.capacityand.energy.require.-...,...,....,,,.~aI2~S'O.3Pa~t..antforShortTerm"irmInarcheLeSaYsca'orSfortLa2"'ttaro..angeS-rv'e.aeavaiab>>bvo::epa'""tothaot';.r,paymentshaba=a8easdef'necbalo~:.Opratin'ndaccoun?acor'svillprovidethebasisfordeterminationosuchcharges.Prices"orrhsservice,basedonthemostrecentcostdata,sŽallbereadilyavailaoletothe'therpa-tyuponrequest.3s4s1~Paeeoc-P,arshal-"lpaySellerEorShorTaro-tate-changeSarv'ceasfoops:3.-'..l.lCaoacity-.sru-1cost(pa"r'p)o=cap'"alrsvetueattire".a-sfo"..theprotuctioopacilic'esusaitoorovidethecapac'ty,ad~ustedtotheSeller'spoint(s)ofinterconnection,dividdby365(daysperyear).PLUSs

-B.4.1.2FossilSteaEne-ForenergysuppliedEro=an,assignedfossi3.steamgeneratingunit(s)anamountpermphdeliveredequaltothesumofthefollowingitems:a)Supplyingparty'sreplacementcostoffuelusedtogeneratetheenergy,indollarspermillionBTUs,timesthecurrentmonth'saveragenetheatrateoftherespectiveunit(s)used.,togenerate,theenergy,inmillionBTUsperm4"n.')ifostrecent3.2monthaveragefossilsteamproductionoperatingand,maintenanceexpanse,excludingfuel,fortheunit(s)usedtogeneratetheenergy.c)Administrativeandge..eralexpensesasallocatedto'nterchangeenergybased.onthemostrecent12monthdata.-'"..""8).TransmissXonoperationandmaintenanceexpensesasallocatedtointerchangeenergy,based.onthemostrecent12monthdata.4~'e)CompensationEortzns'ssionlosses"ncuLedbythtransaction,basedonmostrecentloadElo:.-dtatodtermintransm'ssionlossszprcentagaothetransmission(KL).Using(a),(b),(c)and.(d.)above,(e)(a)+(b).(c)+(d)(Ql;(/K.100)B.4.1.3Co.bustionTurbineEner-Fo-energysuppliedfromanassignedcobustionturbineunit(s),anaountparv3indeliveredequaltothesumofthefolio>>'ngitas:JAwlpgaat+gccjQlptlqe+0~Irm~~ilaw'~+yak"MAIZEW~~~~epng.h~~"~'aa)Supplyingparty'sreolacementusedtogeneratetheenergy,indollarspermillionB<Us,tiresthecurrentmonth'savergenetha"trataofchacoibustio..tubineun'(s)usedtogeneratthaenergy,inm'llio..BTUsper-Mn.b)~~fostrecnt12monthaveragecombstionturbinoperat'ngexpenseexcludingfueland.m"intenance.c)Averagelifecyclecombustionturb:namaintenanceexpense.

(d)Adm'nistrativeandcaner1e:<pensesasallocatedtointerchangeenergy,basedonthemostrecent12monthdata.e)Transmissionoperationandmaintenancee:<pensesasallocatedto:interchangeenergy,basedonthemostrecent12mo,.thdata.f)Compensationfortransmissionlossesincurredbythetransaction,basedonmostrecentloadflowdatatodeterminetransmissionlossasapercentageofthetransaction(XL).Using(a),(b),(c),(d)and(e)'bove,(E)(a)+(b)+(c)+(d)+(e)1-(/L.100)B.4.2AdditionalCosts+whenever,inordertosupplytheShort-.;~;;,."~'.,~',;,+,",---'.-:;:,'Term..firmEnter'chan'~eneedsoEtheBuyer',=,theSelleris'ubjectedtonormal"additionalcostssuchasforstarting,banMng,orshutdown,oranyothernor.;.aladditionalcostincurredbythatransaction,theBuyershallbeadv'sada..dm'uallygreab'djstmentstothechargesshallbedate~a.u.3.nadbpthen."tLeshaeoB.4.3Lim'tedCostData-Etistheinten"obothpartiestodevelopandmainta'nnecessarydatathatisrequiredtodeteinpa;ntorShortTermF'~ElectricServiceEnergy;however,whentheSeller'sexpensedataislimitedornotavailable(asspecifiedinthissection),theBuyershallbeadvisedpriortosuchtransaction*ndch=rgesshallbedete~i~<nedasmutrallyagreedbythepartieshereto.QiGZHN~B~."Bi3rlinAd:ustments.-'apemty"billing-hereundershall=<<ntncapac-tp~xpras-3.n.ip'i'ni.cntna5AaQgQhstoTurnanandtheBuyeragreestopayorinaccordancewithSectionB.3.Tz,atnytime,theBuyerisreceivingpo-arundertheprovisionsofSactio;3.2above,ndthaa=tua1supplyoEpow.totheBuyera.<c~dsthescheuedcapacitybcausao-li~itationsoftheco.trolsy-temtoaccuratelycontrolthe~lowofpowertothee:<actaountscheduled,nocapacitychargeEorsuchexcesspowerflowshallbemde.TftheSeller'sunabletodeliverthecontractedcapacityforanyda"thecapacitybillingforthatdayshallbeadjusteddoawardtoalesserfigurerepresentingthequantitywhichtheSellerisabletodeliver.Suchadjustmentshallbedocumentedviateletypeinaccorda..cawithSection3.3.Tf,withint-ohorsafteranequip.entmalfunction,theSeerisabletoresumedeliveryofthepreviouslyscheduledamountofcapacity,tnentheresha'1benoadjustmenttotheblllin~.iiowavera=teralongerperiodofinterruption,iftheSellerisabletorasu.:ethescheduleddeliveryandtheBuye"agreestosuchres'motioathen-hereshal'anoadjust=anttothebling.

~~StCTTOBB.S-t"neelin:Ztshallhatherasponsih'linyoftheBuyertonakearranganantsfo-thata"nsfarofcapacityandeneroythroughintat'-veningsystems.ThcostofsuchtransfershallbepaidbytheBuyer.DNXTBSESSVEEREOF,thepartiesheretohavecausedthisServiceScheduleBtobeevecutedbytheirdulyauthorizedofficers,andcopiesdeliveredtoeachparty,asofthedayand.yearfirstabovestated.ATTESTrBY:..<rye.lSecretaryORIADOUTXLXTIESCOi~kfXSSXONBY:Pr~s'ident~~<<~PrATTEST:CXTYOFCAXNESVXLLE,'FLORXDABT:PgPAAClerkfBg:theCommission<<Y)<<<<r<<<<<<\e<<g<<r<<-~yrHayor-Coissione>>Apro-'=llasto'o"na<oor"'tn~s'"(.rOs;R.Fabian,City~/;mayCit"ofQainasiilf.,F/aridly<<o,~~4<<<<"f<<ea<<r<<nN%+A~le<<tl.es<<,'<<rs<<.r.r.~,Ae<<r<<rA'l<<<<<<u<<hei+Pe4<<s<<<<~s<<ap<<<<<<aa,ft<<ay~,p.~

SWICESC:-:RULECECONO~EINTERCH<ifGEELECTRICSERVICEITISAGREEDth'sServiceScheduleCwillbeeffectiveundr,anda'art,of,theCONTRACTdatedFebruary7,1978foxelectricservicebet-eentheCityofGainesvilleFloridaandtheOrlandoUtilitiesCo~~ssionhereinafterreferredtoas.the'OtiTRACT".SECTIO'8C.l-Term:Theter'mofthisServiceScheduleCshallbeconcurrentwithandidenticaltothetermstipulatedinSection1.1ofthaCONTRACT.SECIOICe2-EconoInterchangeServic.'hepurposeofServiceScheduleCistoprovidefornon-firmshort-termenergyintezchangebetweenthepartieshereto,andtoestablishthetermsandconditionsof,"""=*'"-'~~"suchr+energyinterchanges..ltis'theintentoftheCONTRACTthat"thepartiesengagingineconomyinterchangeunderthisServiceScheduleCsha3.1shareequaU.yinthebenefitsderivedfromtheinterchange.dedfo"'-"llbtyosofe..eg'jinechngaQQviengy<<~il'ilissu-plusc"tthtlandwhichiseconomicallyusableon.yrogss~rils>yso~irotaleSgSt2%Ofeci.=i.co.-OnlyR.lo(~'nSegi1enssns~s>>trarfthessllingpartytnebuyer.Itisunderstoodandagreedtnatapartyisentitledtoreceiveenergyhereunderonlytotheextentthatsuchpartyhasa3.terna.tedependablecapacityavailaoletoitthatwouldotherwisebeusedandtnatcanbebroughtonlinewithinthetimelimitationmutuallyagreeduponwithresnecttoeachtransactionunderthisServiceScheduleC.S:.C::0.'iC.3-ln=c=.na'cnonacono.rInoa=ci.a".."a:eachpy"-C"i'lpon"r'er'na'A'"o"a"..'oNet"'perry',"-Cnrniah-enporeacionoirhreepeccco.genaracing....,...,caoacxty,energy,andca.esoanxor"..C..conc.=y~nt"cnangss-p'gntQeavailable.Thisinformationw'includetheCost,aslatercafinsdofsconomyenergythesellercanw'..eavailable.Thabuyershiil"n'htheValuecasl""0ceinhd)Qfecono./.ie~g~tcanutel-zs.Sucninforat'onmaybefurn'shedbyco"-uni.a.tionQetweenOpe"at'ngRaoresantativesoftheparties.,C.3.1Cost-Foranyeconomyinterchangetransact'onhereu..der,theCostofeconomyensrgyshallneantheincrementalexpense,asdetemiredbythese3ler,whichitwouldincuxinsuoplyingeconomyenergyhereunder.Thisincrementalexpenseshallreflectbotntheincamentale(pelse0"generatingthaener"-iorobtain'notheenergyfromanothersource,includingsuchcostpifany,oftheincze=entalincreseordecreaseinsystemtransaissonlossesattri-butab3.etothetransaction.

C.3.2Value-yo:anyeconoayinterchanget"ansacionhe".curser,theValueoEtheecono-yenergyshallncaatheincre-ertalexpense,asdeteaainadoythebuyer,whichitwouldincuriftheeconomyenergywerenottobereceived.Thisincre-mentalexpenseshallreflectboththeincre-entalexpenseofgeneratingorobtainingtheenegyfro~anothersource,includingsuchcost,ifany,oftheincrementalincreaseordecreaseinsystemtransmissionlossesattributabletothetransaction.C.3.3Vheelin~Costs-Itshallbetheresponsibilityofthebuyertomakethearrangementsandthepayentsforthetransferofenergythrougninterveningsystems.Itisunderstood.,however,thatthebasisforsettlementasdefined,inSECTIOhhtCa7willresult'nthebuyerandsellershaingequallyinwheelingCOStS~C.3.4AdditionalCosts-linen,inordertocarryoutt¹economyinterchange,thebuyer.orsellerissubjectedto.additional.costs.'.""'""-""='~"""""normally.as'sociate8"withstarting,banyy:ingorshutdomofunits,oranyothersuchcosts,whichareincurredbyreasonofthetransaction,thebuyerandsellershallshareequallyinsuchadditionalcostseSECTIONC.4-.".n'Rv'aw'romti=etot=,butnotlasstha..onceeachyea>>,theCperatingCo~itteeshallreviewthemethodsandbasi-usedbyeachpartytodetar~~enetheaboveCostand<'alue.Eachpartyshallbethjudgeofthecapacityavailabletosupolyeconoyenergyfromitssysenandoico~atmentstoothersystemswh'chmayhvepriorityovertheeconomyenergysupplyhereunder.SiCVZOÃC.S-~guo1:richecononyinterchanetransactionsh11be.agreeduponbytneOperatingRepresentativespriortocomencementofdel'veryofsuchecono=yenergy.Thesellerw'llsupplyeconomyenerg>uptotheagreeda=ounto<thetransact'onfro.po~.-er.sourcesavailablef0suchsupply,sub3acttowhecond'~ons,tha"intho"d"-=eatofseller:(a)suchsupplywillnotresultinimpairmantorjeooardyofserviceinitssyste~;and(b)adequatetransmissionczpactyisavailableinsysteminta>>-Qnnect'nss*a.din3tfecBdvner.lalt.anstissuQnaugtealow'ngforothe"transactionss'"utanouslyschduedo;.thasa=etransmissionsysteIntheeventsallelosesamajorgeneratingunit,sou"caofsuooly,transmissionfac.lity,orotheremergencyconditionsarise,andisnolongerabletoprovideeconomyenergy,thesellershallberelievedofhisobligationtocontinuaorovidingeconomyenergyandtheouyeshllbai~".ediatelyresponsibleforthesuoplyofhisownenergyrequire=ants.

rSECTIONC.6'-Confi~ation:Eachtransactionshallbedocuentedbythebuyingpartywithintwenty-four(24)hoursviateletypeorlog".edtelephoneconfirmationofdate,tinespan,quantity,priceandnegotiatingrepresent--ativesofeachparty.SECTIONC.7-BassforSettlement:Thbasisofsettlementforeconomyenergyhereundershallbeattheratedeterminedtobeone-half(0.5)thesumof:(a)thcostasdefinedinSECTIONC.3.1incurredinsupplyingsuchenergy,plus(b)thevalueasdefinedinSECTIONC.3.2ofsuchEnergytothebuyingpartyminus(c)wheelingcostsasdefinedinpara-graphC.3.3.Anyadditionalcossincurredbyreasonofthetransaction,asdefinedinSECTTON.C.3.4,shallbesharedequallybytheBuyerandSeller.IbVITNESS>E'ER"=OP,thePartiesheretohavecausedthisServiceScheduleCtobeexecutedbytheirdulyauthorizedofficers,andcopiesdliveredtoeachParty,asofthedayandyeastatedbelow.AATTEST:ORLKV30UTXLXTXESC0~21ISSEON\~~I/I)",/,//Se"'"-"-"yBv~//.r~'rg~~Pr~s'~"entATTEST:...pZ.Idz-Cler~ottheCo~~issionCiTY0."CAL~tESVXLLEFLORIDA.'afayor-Co~ssioner......-.ApgcvaC.a-ta.fG:maad.carry".'il-/

~~(SERVlCESCc!EDUCEDPI3'fDiTERCKQiGESERVICEITISAGREEDthisSericeScneduleDwillbe,effectiveunder,andaoartoftheCOhiaaACTdatedFebruar7,1978forelectricservicebetweentheCitofGainesvilla,PloridaandtheOrlandoUtilitiesComission,hereinaxta-referredtoasthe"CONTRACT"..SECTIOND.l.-,Term:ThetermafthisServiceScheduleDsha11be.concurrentwithandidentical.tothetermstipulated.inSection1.1oftheContract.SECTIOND.2-PirmInterchangeService:PirmInterchangeServiceshallmeancapacityandtheaccompanyingenergywherebyoneparty(Seller)shalldelivertotheocherparty(Buyer)aftercommitmentcertainh.'..truant~ties,of,,capac.ty,,and-.,theaccompanyingenergy.,The.Buyer.,wi11::.';;normally'supplytothe,Sel'1'er,.duringthecommitmentperiod,anadvancedailyscheduleofcapacityandaccompanyingenergytobedeliveredhereunder.TheSellershallmakeeveryefforttoconformwiththeBuya"'sdailyschdusuptotheamountochfi.electricserv'cacoo'4~SECTIO'.iD.3-PirmSary'ceCorit=ants:Eachpercy'illdeterminei"sneedsforandavailablicyoffirminterchangeservicefromtimecoti"aand-illnegotizcewitntheotherpartyforsuchservice.Totneaccentthatsuchserviceisrequestedbyonepartyandisdesiredtobeadeavailablebythothe"party,acornitmencshallbemadebec:raenthepartiesheretoforsuc..service.Eacnfirminterchangeservicecommitmentshallnocexceedztermofthirty-six(36)months,norbelassthan'atermoftwelve('2)months.~Xsu41co~tm>~snaV@%evadenceLbyduplicatecopies-of"a.latter"-.-'~hichdocumentsshallprovideappropriatespacethereonforacceotancebychSellerandwhichshallbesi~nedindupl'cateo"cheSellerwicninthirty(30}~aysasevicenceofsuchace'o=anceaadonecopytherao:returnedtoc'.".eBuyer.SECTIOND.4-Pavmenc=orService:Porfirminta.changesarricemdeava'labiafromoneoartytotheother,theBuyershallpytotheSellereachmonthanamoun"xorcaoacityandenergycomputedatthefollowingmonthlycharges:-D.4.1Caoaci='Ti.acapaciychartashallbanaalite<Eol'Rc.t-M816ctz-csIvicP-cQEzi-fitDPisL'c:1chargesshallbesacxorthinthelettarofco.=i"-mea,trea"dtoinSectionD.3.

D.4.2~gne-.-Theenrgychargeshallbenego-iategforeacnfirninterchangeservicecocmitnentandsuchchargesshallbesetforthintheletterofcorŽit-nentreferredtoinSectionD.3.S"=CTIOYD.5-CapacityBillino:Capacitybillinohereundershallbetheriminterchangeservicecapacityconnitnentinnegawatts(nTV)asestab-lishedinSectionD.3,unlessadjustedassetforthinSectionD.T.BECTIOED.5-~4heelin:ItshallbatheresponsibiliryogthaBuyertonakearrangenentsfor.transferofcapacity.andenergytnroughinterveningsysa=s.Thecostofsuchtransfershallbepaidby.theBuyer.'SiC'Z'EOND-7-BillinAdustnentsdithinContractPeriod:Entheeventthepartieshavereachedanagreezantupontheternsozacomitnentunderth'ServiceScheduleDandtheBuyerrequeststheSellertodeliverpoweruptotheamountofthethenestablishedbillingcozuit-,nent~whiq~.poyyr~-after..reaqombge..ngtire:..'.Qnininma..of..eight.,hours);.,Zrom::-theBuyeriotheSel3.ar,Sellerfa.lstonakeavailable,thecapacitybillingo-thatdayshallbeadjusteddownwardtoalesserfigurereorasent'ngthequantitywhichtheSelleriswillingandabletonakeavaiaole(forbill'ngadjust.-entsundertnissactnon,ada;-shallconsisocrl/30ora-.Oath)~hee'eraafnlztrtitTtis"heintentofthepa"tiesthatnal=untio..sofsyste.-..=acilit'esshallbecons'redreasonablybeyondthecontrolof'nparty.Xn1'heeventofsuchm~lfunctionstotheSeller'sequipnentdurin~thetez.2ofa.firnelecir.'cservicecouitnent,ifaftertwohourstneSellerisunabletodeliverpoweruptotheanountofthefirnelectricservicelcorien",the..the'apac.'tybillingforthatdayshallbeadjusteddo'.~war'dtoalesserfigurerepresentingthequantityh'chthaSelleriswillingandabletonakeavailable.Tf,afteranalfunctionythe~Sellerisaoletoresumedeliveryofthefu'l~ountofthefirnele'-t@'icgz:-iz,.an@theBuyerareasto-such.resumption;-then-theretshall.':~~oe..0ad"sa..totnecaoacztjosll'g~tThet'-eintervalszordetewiningisagraacrale.=staredreadingsnaythebillingadjus"n~.>shallbe'"-~~r"'r1'-4~vair'.u,niOCis.ouiS~beused-orthisp"pose.th=Zt LVUETiilESSl'HEREOF,thepartiesheretohavecasedthisServiceScheduleDtooeexecutedbytheirdulyauthorizedoff'cers,andcopiesdeliveredtoeachparty,asofthedayandyearfirstabovestated.ATTEST:ORL>XDOUTILITIESCO~~fZSSTONBY:SecretaryBY:Prey~dentJATTEST:CTTYOFGAlVESVTLLE,FLORXDAx~BY:~P~~A~~H~w~~ClerkftheCo~ossianBY:Hayor-Commissioner'P~p'W44'tp>>+.-+WQ40ptA~4A%,gptI'IhlWAPEDtWfl%'VgP,(~'L,'WIHJAWPy4~App!o'~dastoforn~a;,dcor~ric'ness8,,~Q.(-Ci!JofG;-i;.=-s;ill:,Floida

~\~gs~~'(CONTRACTFORIhZEPu~hGESERVICEBEXWEEWiCITYOFST.CLOUDORLAMxOUTILITIESCO~KISSIONSECTXO'.i0.1.ThisCONTRACTmadeandenteredintot'hisZpyn/dayof/ci75',.byandbatseentheCitofStCloud,plorida,amunicipalcorporationorganizedandwastingundertheawsoftheStateofFlorida,hereinxefexxedtoas.the"CITY"andtheOrlandoUtilitiesCo~~issionownedbytheCityofOrlando,Florida.and,operatedundercharterfromtheStateofFlorida,hereinreferredtoasthe"CO:-KISSIOhl"'VtlTlltESSETEtSECTIOHOe2VXIEBZK,thepartiesheretooperateelectricsystemswhichareindirectlyelectricallyintexcontnectedthxoughtheelectrictransmissionsystemsofothers,andSECTIONOe3WiZ~S,thepartiesheretodecemitdesirablethattMscontrac"be,madeforthe"nterchangeofelectriccapacityandenergythroughthesystemsofotners,and,SECTXO'80.4iRi"K(S,suchinterchangemaybebeneicialtoallparties'nvolved,andSECTION.Os5MHP~'hS,eachpartydesirestoestablishtnetexmsand.condi=tionsofsuchinterchangeof.electriccapacityandenergyoritsxespec-tivesystem;SECTO'80.6hOW,TXIEREFORE,inconsiderationoftheforegoingandoftnemutualbenefitstobeobtainedfromthecovenantshrein,thepartiesheretodoherebyagreeasfollows=ARTICLEITEPifOFCO'IXhTP4CT(SECTIONl.l-Ter:ThetermofthisCONTRACT.shallcommenceon.thegsyl~dayof'77,andshallcontinueinaffectuntilcancelledbyeitherparyupononeyear'svrittennoticetotheotherparty,providedho~evertnatthetexmofthiscontractsh11notbeforapexiodoflessthanthetermofanyserviceschedulecotvatmenthereunder.

ARTXCLEXIINTERCHANGEOPCAPACITY.ANDEi'lERGYSECTION2.1-Interchange:Itisrecognizedthatinterchangeofvariousspecificclassesofservicecanbemadebyeachpartytothaotherinfurther-'nceofthepurposesofthiscontxaet.Eitherpartydesiringdelivexyofcapa-cityorenergymayrequestsamefromtimetotime,andthepartyxeceivingsuchrequestshallpromptlyconsidertherequestandinformtheotherpartyastotheextenttownichtherequestwillbegranted,andschedulesofdeliveryshalltherebybemutuallyagreedupon.ARTICLEIIXOPERATIONSECTION3.1-Aceesso7-cilities:-Thepartiesheretowillprovidecom-.munication,teleetering,generationcontxolequipmentand/'orsuchotherfacilitiesfox'ispatching,purposesandforcontxolofpowerflowandflowofreactiveKVAasisnowormayhereafterreasonablybarequired,inac-eoxdancawithgood,modernpractice,asdeterminedbytheCommi.ttaapro-vided,forinSection3.3.CSECTION3.2-PartiesResponsible:Eachpartyheretoshallprovide,oper-ate,andmaintainatitsowncostandexpense,'uchofthaequipmantand'facilitiesasmaybeused,pursuanttotheforegoingprovisionsofthisARTICLEIXI.SECTIOH3.3-0gratinCommittee:Eachpartyshallappointarepresentative.andnalternatetothaOperatingCommittee,and.sonotifytheotherpartyThisCommitteeshallmeetattherequestofeitherparty,atatimeandplaceagreeduponbythemembersandreviewthedutiessetforthherein.Eachrep-xesentativeandalternateshallbaaresponsiblepersonworkingwithday-to-dayoperationsofeachrespectivepowersystem.ThisCommitteeshall.representthepartiesinallmattersarisingunderthisCONTRACTwnichmaybedelegated~toitbymutualagreementofthepartieshereto.EachpartyshallcooperateinprovidingtotheOperatingCommitteeallinformationrequiredintheper--..formanceofitsduties.Suchdutiesshallinclude;butaxanotlimited.to,thefollowing:(1)PreparationofOperationandHaintenanceScnedules(2)PreparationofContxolandOperatingProcedures.(3)SupervisionofInterchangeAccountingFunctions.(4)Fegotiations'orElectricServiceCommitmentsundexallServiceSchedules.(5)NegotiationsforAdditions,Changes,or2!odificationstothisCONTRACTandServiceSchedules.

~~p(~XftheOperatingCommitteeisunab3.etoagreeonanymatterfallin"undexitsjurisdiction,suchmattershall,bereferredbythemembersoftheOperatingCommitteetotheirPrincipalsfordecision.FailureofthePrincipalstoagreenymatterreferredtothemshallnotconstituteabasisforcancellationofthisCO:iTRACT.AllcommitmentsandagreementsmadebytheCommitteesh11beevidencedinwriting.SECTION3.4-ReoulationofTransferofPowerandEner:Thepartiesheretoagreethatitistheresponsibilityofeachpartytooperateinamannertoprovideforitsownsystemloadatalltimes,evceptasothexwiseprovidedhereinorasmutuallyagreed,andtoholddeviationsfromnetscheduledde-.liveriestoaminimum.Tothisend,eachpartyshallprovideandoperateaut;o-.maticgenerationcontxolequipmentin.accordancewithstandaxdpracticesoastoavoidmakingobjectionabledemandsuponothersystemsduring,noxma1operationSECTXO'H3.5-Disturbances:Eachpartyshall,insofaraspracticable,soprotect,operateandmaintainitssystemandfacilitiesastoavoiddistur-banceswhichmightcause'impairmenttoserviceinthesystemsofotherpar-ties.,SECTION3.6-TransferofPowerandEnerThrouhOtherSstems:Sincethesystemsofthepxteshereto'renovdirectlyinterconnectedwithothersys-tems,itisrecognizedthatbecauseofthephysicalandelectrica1charactex-isticsofthefacilitiesinvolved,anyinterchangeofpowerwi11flo.~fxomonepartythroughothersystemstotheother'party.Xnsuchcases,thepartiesagreetoendeavortomakesatisfactoryarxangementswithothersystemsforsuchdeliveriesandtxansfexssoasnottoburdensuchthirdpartiesandtomaintaingoodxelationshipswithaffectedthirdpaxtiesfoxtheovexal1coordinatedbu3k.po-ersysteminFlorida.Eachparty,wheth'erbuyeror'eller,shallalsouseitsbesteffortstomain-taintalltimes,satisfactoryxelationshipswithothersystemstowhichtherespectivesystemsareinterconnected,includingarrangementsfoxthirdpartyprotection~dcompensation.(ARTXCLEXV,ELECTRXCSERVICESECTXO'$4.1-ElectricSexvice:Itisxecognizedthattxansactionsunder'thevariousspecificc3.assesofserviceandtheratespplicabletoeachclassofelectricservicemustnecessarilydependupontheconditionsequitingfromtimetotim.Thesalesandpurchasesunderspecificclassesofelectricsemiceandthterms,arrangementsandratesapplicabletheretoaresetforthinvar-iousServiceSchedules,whichSchedules,whenexecutedbythepartiesheretoshallbecome.apartofthisCONTRACT.TneseSexviceScheduleshxerespective3yreferred-toas:SexviceScheduleA-EmergencyXnterchangeServiceServiceScheduleB-ShortTermFirmXnterchangeServiceServiceScheduleC-EconomyEnexgyInterchangeServiceService.ScheduleD-FirmXnterc'hangeService

.SECTIONl>.2-ScheduledDeliveries:XtisrecognizedthatboththeCX1YandtheCQ;>~jXSSXOImaintainmultipleinterconnectionswithotherutilities.Forthisreasontheactualflowofpowerintooxoutofasystemwouldbethenetflo~measuredatseveralmeterinpoints.Therefore,duetothedifficultyof.obtaiingthesemeteredv'aluesandmakingthemagreearithscheduledvalues,unlessotherwiseagreedupon,allbillingsshall,beinaccordancewithscheduleddeliveriesratherthanactualmeterednetinterchangeofpowex.Thedifferencebetweenscheduleddeliveriesandactualnetdeliveresshallbedeterminedattheendofeachhourofthescheduleddelivery,andthedifference,sodeterminedhallbeclassedasinadvertentinterchange(Section4.3)andshallbeadjusted>>asnearlyaspracticable,duringthefollowinghoux,oratsomeothermutuallyacceptabletime.~'ECTION4.3-InadvertentTransferofElectricEnergy:Inadvertenttransferof--energyisatransferofenexgybetweenthesystemsoftneparties'heretoatvar-iancewiththe.scneduleddelivexyasaresultoftheinherentphysicalandelec-tricalcharacteristicsofthesystems,limitationsintheequipmentused,to.con-troltheflowofpowerbetweenthesystemsorlimitationsintheoperationofsuchequipment,oras.aresultoftemporaryarrangementsfoxtestingpuxposesInad-vertentenergyshallbexetuxnedinkindattimesmutuallyagreeduponSincethe.partiesheretoaxenotdirectlyinterconnected,XnadvertentEnergyisdetermined'asthedixfexencebetweenscheduleddeliveriesandactualnetdeliv-eriesasmeteredattheir,directinterconnectionswithotherutilitiesAs.obligatedundertheirexistingcontractswithsuchotherutilitiesthepaxtiesagreetoarrangefoxthexetuxnofInadvertentwithaffectedthirdpaxties~ARTICLEVELECTPXCGENEPATDi'GCMACX1YAteSECTION5.1-ElectricGeneratin~CaoacittobeProvided:Eachpartyagreestorxyitsproportionateshareoftheoperatingreservesasestablishedfromtie:=.totimeandxecogni"dasgoodelectricutilityoperatingpracticeintheStateofPlorida.ARTXCLEVX'IKTERIHGPROVXSXONS'Is.Spttiop6.1-Hetaxin:Thepsxtiesheretohaveinstalledthenecessarynetcrintequipcanttopexnitthedetercinationoftheacountsopelectricposerandenerdptransferredintooroutoftheirsystemsthxoughtheirdirectinterconnectionswithotherutilities.Suchmeteringisoperatedandmaintainedinaccordancewiththeparties'xistinginterconnectioncontracts.ARTXCLEVXX3XLLINGAIx'9PAY~KHTSECTXON7-1-PresentationandPaent:Hheninterchangeshaveoccurred,eachofthpartiesshallsubmittothe.other,aspromptlyaspossbleafterthfixsbusinessdayofeachmonth,aninterchangebillingstatementfortheinterchantransactionsandtherespectiveamountsdueunderthetermsofthisCONTRACTfortheprecedingcalendarmonth.Allinvoicesshallbedueandpayablewithinten (10)days.Toexpeditebilling,themostxccentcostdatawillbeusedfothe-initialbilling.Anadjustedbillingstatement,ifrequiredtoreflecttheac-tualcostofthedeliveredenergy,shallbeissuedwithinsixty(60)daysBydefinition,economyenergyunderServiceScheduleCisnotsubjecttosuchadjustment.SECTX037.2-DisputedBill:Xncaseanyportionofanybillisinbonafidedispute,theundisputedamountshallbepayablewhendue.Upondetexminatioaofthecorxectamourt,theremainder,ifany,shallbepaidpromptlyARTXCLEVXXX';FORCE>LMEURER3DXNDPiQiXFXCATXQH:(SECTXO'.f8.1-ForceHacure:Xncaseapartyheretoshouldbedelayedinorpreventedfxomperformingorcarryingoutmiyoftheagreements,covenants,~andobligationsmadebyandimposeduponsaidpaxtybythisCONTRACT,includingallcovenantsandobligationsmadeintheattachedExhibit(s)andServiceSched-ules,byreasonof.orthroughstrike,stoppageinlabor,failuxeofcontrctorsorsuppliersofmatexials,riot,fire,flood,ice,invasion,civilwar,commotion~insuxxection,militaryorusurpedpower,ordexofanycourtgrantedin,anybona.fideadverselegalpxoceedingsoraction,oxderofanycivilormilitaryauthoxityeitherdefactoordejure,explosion,.actofGodoithepublicenemesoranycausareasonablybeyonditscontxolandnotattributabletoitsnetlect;thenand.insuchcaseorcases;bothpartiesshallberelievedofperformanceunderthisagreementandshallnotbeliabletotheotherparty,fororonaccountofanyloss,damage,injury,orexpense.resultingfromoraxisingoutofsuchdelayoxpre-vention;provided,howevex,thatthepartysuffering,suchdelayorpreventionshallusedu'eandpracticablediligencetoremovethecause'orcausesthexeof-andprovided,further,thatnopaxtyshallberequiredbytheforegoingpxo-visionstosettleastriateexceptwhenaccordingtoitsownbast.judgement,such,asettlementseems.advisable.SECTXO'88.2-ResoonsibilitandXndemnifications:Thebuyingpxtyexpresslyagreestoindemnifyandsaveharmlessanddefendthesellingpaxtyagainstallclaims,demands,costs,orexpensesforloss,damage,orinjuxytopersonsorproperty,inanymannerdirectlyor.indirectlyconnectedwithoxgrowingoutofthegene-ation,transmissionoruseofelectricpowerandenergysoldpursuanttothisAGREElKHT,whichoccurbeyondnyofthesellingparty'spointsofown-exship,unlesssuchclaimor.demandshallaxise'outoforxesultfromtheneg-ligenceorwillfulmisconductofthesellingparty,itsagents,servants,oremployees;provided,however,thatneitherpartyshllberesponsiblefordamageorinjurytoemployeesoftheotherpaxtywheneversaidothexparty'semployeesareonthesaidotherparty'spremises.Further,thisAGREEtWiTinnowaycreatesacontractualrelationshipofonepartywithacustomr,ofanotherparty';neitherdositcreate'adutythereto.rARTXCLEXXHXSCELLNi'EOUSSECTXO'.19.1-LTaivers:Anywaiveratanytimebyanypartyheretoofitsrightwithrespecttotheotherpartyor'ithrespecttoanymatterarisingincon-nectionwiththisCO'BTRACTshallnotbeconsidered.awaiverwithrespecttoanyubsequentdexaultormatter.

rc~)C-,IO~~9.2-SuccessorsandAssi~as:ThisCO.BTE'~CTshaginur~~totv~ben.==~tpdbbnd'ponthparties.hereto,theirrespectirsu=ca-"or"andandshallnoba=.nabLeby'ithap'ithoutth~itLcorpthephrprye.cptasto"uccesso-i..thopa-to.oLisphootjsonpfar.:erg-,consolidation,saleorforeclosure'..aresrbstatllj'propertiesaraaequi=redbysuchasuccssorS7:CT~OQ93-.XLotlees-.anyTlotice)dennd)orxequestre-uiredorau."voizedbytniSCOi[.B"wCLSnaOedeene'rpparly@EvenXfnY>iled)ppstagaprepaid.rtothaCj.tyoZSt.Cloud)1300ninthSt.,St.Clo~d)Florida32769~~zthecasao=".~hCXLxcndtotheOrl"ndoUtilitiesCommission,P.ORo~3393)Qrla<oploid@,32802inthaczseoftheCO:RKSSIQ'i,oxtosuchotherparsoxr.asmaybadesignatedbJthaCiafotnaCO:MISSIOiThadesig~~tion,og,thaoarsoa.Ca..banotifiedo-tnaaddressofsuchpexsonmaybe'.eh~agedoythaCitedox'tha"CO.Y'fTSSIOwjatanyt>~e)orfrort.t$+LŽtotlute)bysigil'ot~caSKCTTQ'B9.4-Ta-..Ad=usL~ent:"Tothe.capacity(~rRlenapp3~cao3.e}an<e'".r~gycar~pfa3.3SmiceShac'.alassh~M~baaddedtheapplic"blproportionatepccoEaytxesandassess~ats(exceptStateoxFederalIncomeT<es)f~oosadbyany---govarneg,c.authorityinexcessofthoseineffactasor"."adateo2taisCQ.B~='iCwhicharaassessedonLhabasisofreterso-custor;xsoxthap-icoorxava.-.-fromelectrican.r."yorservice'old,,orthequaatityoQenrgy'~chsaRo-~e..;~arted.zorsaleoxsold-Xntneeventeithe-party'aysa."grossraceiotsta:~"'heStateoxPj.oridainrespecttointerchanges,nxaudah&paty~l~sue'~~--pay,=ntsha1befullyxehbursedbythapartypur~~~~~gteaelec~iU4XT:<~SSYZ=:-P:0:,thepartiesheretohavecausedthisCO~i~P=',CZto'bc:.bytheirdulyauthorizeofficers,andcop"esdeliver8.toecn.jarty.,aso=.>.dayandyear2irstabove.stated.<TTLST-CX~z,0='T.Ct;QUDCityi&nagr2'oxsY.T.'ST~~$~~~)%'tl~~IO~Tt'2H)0brKTTi=SCO.L.-SSTQ~t'BYS-LaY.c-gPresidentAPPROVEDASTOPORii:APPP.OvzDASTOZO~"=BY:VA'rney,Gurney,6HandlyAttorneysfo-theCo~~issxonI+imptep'"."--'les,~P~LO~<se)"Ks0p~4g SERVICESCflEDULEAB1ERCEY<CYINs'TERCHANGESERVICEXTXSAGREEDthatthisServiceScheduleAwillbaaffectiveunder,andapartof,'theContractforInterchangeServicedated3O,1979.betweentheCITYOFST.CLOUD,FLORIDA,andOPZdZDOUTXLITXESCO~<21ISSIO8,hereinafterreferred-toasthe"CONTRACT".SECTIO'.l-Term:ThetermofthisServiceScheduleAshallcommenceontha~yPmdayof',1979,andshallcontinueineffectforthetern'stipulatedinSECXOM1.1oftheCONTRACT.SECTIONA.2-EmerancXnterchaneService:EmergencyXnterchangaService,forthepurposeof'hisSchedule,'hall.meanemergencypowersuppliedbyoneparty(Seller)totheotherparty(Buyer)forusaunderemergencyconditionswhentheBuyer,duatocausesbeyond,itscontxol,istemporarilyunaoletosupplycapacityandenergyforallitscustomersfromnormallyavailablefirmsources.[Thenanemergencyconditionariseson.thesystemoftheBuyer,theSellershallsupplyrequestedemergencypowerfromitsavailablesourcesnototherwisecommittedtotheextentthat,inthesolejudgmentofthe~Seller,thegeneration-and/orpurchaseandthedeliveryofsuchpowerwillnotjeopardizesexvicetoSeller'scustomersorreliabilityofSeller'system.Xt'isagreedthataconditionofdeficiencyinpowersupplyofeitherof.thepartiesheretooccasionedbyshortageofsystemfacilities,water,fueZ.orothersupplies,whichhasresultedfromfailuxetofollowrecognizedgoodengineeringoroperatingpractice,shallnotbaconsideredanemergencycondition:forthepurpo'seofthisServiceScheduleA.Xtisunderstoodsandagreedthatthecapacityandenergyreceivedbyeitherpartyunder,emergencyconditions,whentheperiod.ofsuchreceiptofcapacity.andenergyislessthansixty(60)minutes;shallbe:classifiedas.inadver-tentinterchangeofenergyandshallbetreatedassetforthinSECTXO'i%4.3,ARTICLEXV,oftheCONTRACT,however,attheSeller'soption,energysupplied,bycombustionturbinesundex'hisSaxviceScheduleAmaybeclassifiedasEmergencyXnterchangeSexvice.Xfthetakinghereunderofpowerduringanemergencyshallbaforaperiodofsixty(60)minutesormoxa,allofthecapacityandenergytakenduringthaemergencyshallbetreatedasEmxgencyInterchangeService,asprovidedforunderthisServiceScheduleA.XtisalsounderstoodandagreedthattheobligationtosupplyEmergencyXnterchanaService,asprovidedforundexthisServiceScheduleA,shallnotexceedthaseventy-two(72)hourperiodimmediatelyfollowingtheoccurrenceoftheemergency,afterwhichcapacityandenergy,ifavailable,willbasuppliedunderotherServiceSchedules.SBCTXO'.lA.3-~pheel.in:Zt'shallbethetesPonsibilitpoTtheBulettomakearrange.antsfoxtransferofcapacityandenergythxoughinterveningsystemsThecost,ifany,ofsuchtransfershallbepaidbytheBuyer.

SEC3.'IO<tA.4-PaentforEmexrenc'nterchangeServiceEmxgenyInter-changeServicereceivedbytheBuye'rsha11,attheoptionoftheSeller,beaccountedfor:(1)byxcturnoftheenergyinkindwithinthecurrent.bi13.ingperiodatmutuallyagreeabletimes(i-e.,whenthevalue.ofthecapacityandenergytothepartywhichsuppliedtheemergencyinterchangeserviceissubstantiallyequaltothecostofthcorrespondingcapacityandenergydelivered);or(2)bypaymentattherateorratesbelow.Operatin~andaccountingrecordswi3,1providethebasisfordeterminationofratesbe'ow.Pricesfo"th.sservice,basedonthemostrecentcostdata,'shallbereadilyavilabletotheotherpaxtyupon.request.Thepartywhichreceivedtheemergencyinterc'nangeservicesha13.mmetheairangementfoxandpaythecosts,ifany,ofwheelingfoxxetuxningenergyinMndA.d.l~Paent-BuyershallpaysellerforEaargencyInterchangeServiceasfollows:A.4.1.1FossilSteamEner-Forenexgysuppliedfromanassignedfossilsteamgeneratingunit(s)anamountper3NHdeliveredequaltothesumofthefollowingitems(a)Fuelcost,equaltothereplacementcostoffueZ.usedtogeneratetheenergyindollarspermillionBtu'stimeszvexagenetoperatingheatrateoftheunit(s)assignedtogeneratetheenergy,in.mi11ionBtu'spernet2%TH.Replacementcostoffuelisdefinedastheaverageinvoicecostoffuelfoxfossilsteamunits,excludinggas,thatwas'eceivedattherespectiveplantduringthemonth.in'hichtheenergywasdelivered(hereinafter'eferred.toasthe"deliverymonth"),inc:luding,.averaoetranspoxtationandhand1ingcosts.If~therewerenoshipmentsxeceived.attherespectiveplantduringthedeliverymonth,theSel3.er'scontactpricefoxsuchfue3.plusaveragetrans-portationandhandlinocostshallbeused.~Averae..net'ogratinheatrateisdefinedastheunit's:average-netheatrateforthedeliverymonth,thecalculationofwhichisbasedonnetoutputand.fuelconsumptionduringoperationperiodsonly,withgasconsumption,ifany,beingadjustedtoanoil'quivalentbasis(b)L'atestavailable12-onthveragefossilsteamproductionoperationandmaintenanceexpen'se,excludingfuel,fortheplantoftheunit(s)assignedtogeneratetheenergy.(c)Compensationfoxtxansmissionlosses,basedonthmostrecentcalendaryeardataforavexage-Atransmissionlosspercentage(/L).Using(a)and(b)above,/L".100D()-(.)+(b)Cl-(/L-100)3(d)Administrativeandgeneralexpensesasallocated.tointerchangeenergy,basedonthemostrecentcalendaryeardata,adjustedfortransmisionlosses.(e)'ransmissionoperationand.maintenanceexpensesasallocatedtointerchangeenergy,basedonthemost'recentcalendaryeardata,.adjustedfortxansmis-~sionlosses.A.4.1.2CombustionTurbine'Enerorenergysupplied.'from'anassigned.combustionturbineplant,andamountpexKTEdeliveredequaltothesumofthefollowingitems=(a)(b)Fuelcost,equaltothereplacementcostoffuelusedtogeneratetheenergy,indollarspermillionBtu'stimesaveragenetheatrateofthecombustionturbineplantassignedtogeneratetheenergy~iumillionBtu'spernetKlH.Relacementcostoffuelisdefinedastheaverageinvoicecostoffuelforcombustionturbineunits,excludinggas,thatwasreceivedatthexespectiveplantduringthedelivery~month,includingaveragetransportation.andhandlingcosts.Xfthexewerenoshipmentsreceivedatthexespectiveplantduringthedeliverymonth,theSeller'scontractpriceforsuchfuelplusaveragetxansportationandhandlingcostshallbeusedAveraenetheatrateisdefinedastheplant's.averagenetheatrateforthedeliverymonththe'alculationofwhichisbasedon.totalnetoutoutndtotalfuelconsumption,withgasconsumptionifany'eingadjustedto.an.ojlequiyaleqt.basxsLatestavailable12-monthaveragecombustionturbineoperationandmaintenanceexpense,excludingfuel,forthetypeunitsassignedtogeneratetheenergy.(c)Compensationfortransmissionlosses,basedonthemostrecentcalendaryeardata.foraveragetxans-missionlosspercentage(/L).Using(a)and.(b),above,I/L100)()()+()JQl-(/L100)

~~(d)(e)Administrativeandgeneralezpensesasallocatedtointerchangeenexgy,basedonthemostrecentcalendaryeardata,adjustedfortxansmi.sionlossestQTransmissionoperationandmain,tenance.expensesasallocatedtointerchangeenergy,basedonthe-.mostrecentcalendaryeardata,adjusted.foxtrans-missionlosses.steamunit(s)tosupplyEmergencyInterchangeService,anyadditionalcostsoincurredshallbeincludedinthepayment,scheduleinA.4.1'above.A.4.3PurchasedPowerCost-XftheSellerpuxchasescapacityand/ox,energyfromotherpartiesforthesupplyofEmergency'Inter-.changeService,thechargereflectedinthepaymentscheduleprovidedpuxsuantto'A.h.lshallbethe,sumofthefollowingitems:.A.4.4~(a)Seller'scostofsuchpurchasedcapacityand/oxenex(b)ConensationfortraPnsco.ssionlosses,basedonthemost,.'ecentcalendaryeaxdataforaveragetransmissionBosspercentage(ZL).Using(a)above,)E/L-.100)1-(%L.-:..100)~(c)Administrativeandgeneralexpensesasallocatedtothe'transmissionfunctionforintexchangeenergy,basedon.themostrecentcalendaryeardata,adjustedfoxtxans-'."missionlosses..4h'L(d)Transmissionoperationand,maintenanceexpensesasallocatedtointexchangeenergy,basedonthemos'tx'ecentcalendaryeardata,adjustedfortransmissionlossesAssion=entofunitsandFuels-Assignedunit(s)isdefined,astnehighestfuelcostunit(s)operatingatthetimeoftheinterchangetransactionwithanoutputlevelequaltooxgxeatexthanthetxansactionlevel.AssignedfuelisthatidentifiedbytheSellerasbeingused.asaresultofthetransaction.Assignedunitsmaybepricedat*fuelcosthigherthanthatactuallybeing,usedatthetimeofthetrans-actionaslongasthefollowingprovisionsaremet:1)Theheatratetobeusedinthetransactionbillingshallbethatoftheassigneduni:tadjustedfotheassi.gnedfuelbeingpriced.

(Sufficientass.i.'d'ue1r;us"act~llJb=consuedbySel1rburin~th-iDntA.xnan'a>>outaguai.ooxcreatethanth"tnecess"rytogenerate,theecer~j'avo?.red.~theinterchangetransction'Failureoftnisprovisionvi1l,causa"sip".ea.toQlopercostun'.t(s}Beetingti8abovecritexia,-the'axi."..4.5AnnualRevie:i-Eachyaa-priortoshy3tneratesAox',.h.l.l(c),(d),and.();A.412(c)(d.}an"(e)-,gl;3(b)~(c)~and(d)aboveshaj.lbexevie;-ad.md,update+bytheOparztin~CommitteeSuch'ratesshal3.applyfox'teesucceedingyear(thythrouonApril)XHSic"i"SSKT~:""0=,thepartiesneratoha;racause>QuisSchedule4tobeezecute"bytheirdulyauthorizedofxicars,delivered.toeachparty,asofthdateand.yearfirstbo-zaServicecopxesstteLA'ETEST=CXj.ZO."STVOUDCity'~~a~ex~'4'Javor"l~EST:0~~ORL"'~QUZZc.l7TESCO':"'ZSSTOH'.:.ecxeta7res~~d.en>>~~APPROVEDASTOFORil:APPROW~-KTOZQP~.'=urney,Gurney,EHandleyAttorneysfortheCormissionpneniL.f~~@gxFsgCl.ty~Wcto~~ay

~~SERVXCESCHEDULEBSHORT.TEP~~fFXPu~lXNTERCPVi'GESERVXCEXTXSAGREEDthatthisServiceScheduleBwillbeeffectiveunderandapartof,theCONTRACTforinterchangeServicedated~19/9betweentheCityof'St.Cloud,'PloridaandtneOrlandoUilitiesCommissionhereinafterreferredtoasthe"CONTRACT".SECTXO".B.l-Term:ThetermofthisServiceScheduleBshallcommenceontheayof~~";1979,andshallcontinueineffectforthetermstipuatedinSECTXON1.1'of-"~heCONTACT..'SECTXO'7B.2-Short-TermFirmXnterchanoeService:Short-TermFfrmXnterchangeService,forthepurposeofthisSchedule,shalLmeanthecapacity'ndenergysuppliedbyoneparty(Seller)totheotherparty(Buyer)foruseduringshort-teraperiods.Short-termperiodforthepuxposeofthisScheduleshallmeanaperiodoklessthan'twelve(12)months.Eachpaxtywilldetermineitsneedsfox,Short-TermPixaXnterchangeServicefromtimetotimeand,totheextentthatsuchserviceis,requestedbyonepartyandisdesiredtobemadeavailablebytheotherparty,acommitmentshallbemadebetweenthepartiesheretofox'uchservice.ThecapacityandassociatedenexgymadeavailableforShort-Ter.FirminterchangeService'sintendedtobeavailableatall'timesduringtheperiodcoveredbytheShort-Teria'FirminterchangeServiceco~itnent.However,anyreserverequirementassociatedwiththispowerdelive~shalloetheresponsibilityoftheBuyer.Xtisintendedthatthepartiesheretowillschedulereintenanceoffcilitiesinadvance,andinsofaraspossible,durin~seasonaloff-peakperiods','and.thepartieswillreasonablycoordinatethei-respectivemaintenanceperiodstotheirmutual~benefitsothatreliableserviceonbothsystemscanbeassured4*.SECTXONBa3-Short-TernFirmXnterchaneServiceCo~sitments:EachShort-TeraPixnXnterchangeServicecommitmentshallbemadebetweenoperatingrepresentativesand.evidencedbyletteroxteletypexequestand,commitment,.whicnshalldocumentthestartingdate,numberofconsecutivedays,quantity,expectedxateQ)and'peratingrepresentativesofeacnparty.-TheBuyer'hallnormallyarrl.gewithtneSellerforhisdai3.ycapacityandenergyxequire-nentsby1500hours9p.m.)of.thedayprecedingthetransaction.SECTXONB.4-Pai.entforSnort-TermFirmXntexchaneService:ForShort-Te~~Fix~interchange,Servicemadeavailablebyonepartytotheothr,paymentshallbemadeattherateorratesbelowaOperatingcad"ccountingrecordswil3.pxovidethebasisfoxdeterminationofratesbelo~~.Pricesforthis"service,Qasedonthemostrecent.,costdata,shallbereadilyavailabletothotherpartyuponrequest.~,~','.S..l~paantBuya,.r.sh.-all.papSailorforShort-Tarn'FirnXntaxohanga...Serviceasfollows:

h~Ca~acit-ForeachKioicaoacityco~tittedbytheSeller,adailycapacitychargeequaltothe,3.evelizedannualcapitalcarryingchargerate,forfossilproductionplanttimestheweightedaverage,costper1Hofsumrexnetcontinuouscapabilityoffossilproductionplant,adjustedfortransmissionlossestopoint(s)ofdelivery,dividedby365(daysperyear).Themostrecentcalendaryeardataforthecaptialcarryingchargerate,theaveragecostpexM4ofsuwu~ernetcontinuouscapabilityandtheaveragetxansmissionlosspercentageshallbeused.FossilSteamEner-Porenergysupplied,fxomanas-signedfossilsteam-generatingunit,anamountpernet1D'Hdelivered'equaltothesumofthefollowingitems--(a)Fuelcost,equalto"thexep3.acementcostoffue3usedtogeneratetheenergy,indollarspexmil-lionRtu's,timesaveragenetoperatingheatrateoftheunit(s)assignedtogeneratetheenergy,infuelisdefinedastheaverageinvoicecostoffuelforfossilsteamunits,excludinggas,thatwasxe-'eivedattherespe'ctiveplantduringthemonthinwhichtheenergywasdelivered(hereinaftexreferredtoasthe"deliverymonth"),inc"udingaverage.trans-portationandhandlingcosts.Xftherewarenoship-mentsreceivedattherespectiveplntduringthedeliverymonth,theSeller'scontractpricefoxsuchfuelplusaveragetransportationandhandlingcostdefinedastheunit'saveragenetheatratefoxthedeliverymonth,thecalculationofwhichisbasedonnetoutputandfue3.consumptionduringopexation.periods,only,withgasconsumption,i.any,being,adjustedtoanoilequivalent.basis.,(b)Latestavailable12-monthaveragefossilsteam'roductionop'erationandmintenanceexpense,excludingfuel,'fortheplantoftheunitassignedtogeneratetheenergy.(c)Compensationfoxtransmissionlosses,basedonthemost,recentcalendaryeardatafo.averagetrans-mission,.logs.pe'rcentage.(/L').:Using(a)an4(b)".-abovepr.()(a)P(b)t(/L100)Pl-(/L-.100)

~~(d)'Administrativeandgeneralexpensesasallocatedtointerchangeenergy,basedonthemostrecentcalendaryeardata,adjusted.fortransmissionlosses.(e)-Transmissionoperationandmaintenenceexpensesasallocatedtointerchangeenergy,basedonthemostrecentcalendaryeardata,,adjustedfortrans-missionlosses.CombustionTurbineEnex.o-FoxenexFysupplied'roman.assignedcombustionturbineplant,anamountpernet?f<~Hdeliveredequaltothesumof.thefollowingitems=~~(a)'uelcost,equaltoreplacementcostoffuelusedtogeneratetheenergy,in.dollarspexmillionBtu's,timesaverage'netheatxateofthecombustiontuxbirieplantassignedtogeneratetheenergyinmilliontg'Etuspernet%Are;Replacementcostoffuelisdefined.astheaverageinvoicecost,offuelforcom-bustionturbineunits,excludinggas,thatwasre-ceivedatthexespectiveplantdux"ngthedelivery'onth,includingaveragetransportationandhandlingcost's.Xfthex'ewerenoshipmentsreceivedattherespectiveplntduringthedeliverymonththe5PSellerscontxactpriceforsuchfuelplusaveragetransportationandhandlingcost.shallbeused.~Avezaeeet.heatataisdefinedasthapleat's.'veragenetheatxateforthedeliverymonth,the'-'alculationofwhichisbasedontotalnetoutputandtotalfuelconsumption,withgasconsumption,if.'any,beingadjustedtoanoi1equivalentbasiss(b)Latestavailable12-month.averagecombustionturbineoperationandmaintenanceexpense,excludingfuel,forthetypeunits'ssignedtogeneratetheenergy..'c).Compensationfortransmissionlosses;basedonthe'ostrecentcalendaryea-dataforaveragetransmissionlosspercentage(K).Using'a)and(b)above,r(c)(a)+(b)L(ZL.100)1-(/L.100)(d)Administrativeandgeneralexpensesasallocated,tointerchangeenergy,.base4onthe,mostrecentcalendar.".yeardata;adjus~edefor-transhission"'losses.:-"-'--."(e)'Tr'ahsmission'opexationandnainCenanceeipensesas-'llocatedtointerchangeenergy,basedonthe,mostrecentcalendaryeardta,adjustedfoxtransmission.losses.I (0B.4.2B.4.3fossilsteamunit(s)tosupplyScheduledXnterchangeService,anyadditionalcostsoincurred.shallbeincludedinthepay-mentscheduleinB.4.1above.PurchasedPowerCost-XftheSellerpurchasesenergyfrcraotherpartiesforthesupplyofSnort-TermFirmXnterchangeService,thechxgexeflectedinthepaymentscheduleprovided.pursuanttoB.4.1shallbethesumofthefollowingitems:F(a}Seller'scostofsuchpurchasedenergy(b}.Compensationfortransmission3osses,basedonthemostxecentcalendaryeardatafoxaverage,transmissionloss'percentage(%L).Using(a)above','b)=()p1-.(%L~3.00)(c}Administrativeandgeneralexpensesasallocatedt:othetransmissionfunctionforinterchangeenergy,bsedonthemostrecentcalendaryeardata,adjusted.fortrans-missionlosses.B.4.4(d}TransmissionoperatipnndmaintenanceexpensesasaIIocatedtointerchangeenergy,basedonthemostrecentca1endaryeardata,adjustedfox'ransmissionlosses"'Assimierit'f'nits'nd'Fuels"-'Assigndunit(s)'isdefinedas'-thehighestfuelcostunit(s)operatingtthetimeoftneintex'-changetransactionwithanoutputlevelequaltoorgreaterthan.thetransactionlevel.Assignedfue3.isthatidentifiedbythesellerasbeingusedasaresultofthetransactionAssignedunitsmaybepricedatafuelcosthighexthanthatactuallybein~usedatthetimeofthetransactionas1ongasthefollowingpro-visionsaxemet:TheheatratetobeusedinthetransactionbiIIingshalLthatoftheassignedunitadjusted.fortheassignedfue1being.priced:..~~2}Sufficientassigned,fuelmustactuallybeconsumed.bythesellexduringthemonthinanamountequal.toorg-eaterthanthatnecessarytogeneratetheenexgyinvolvedintheinterchangetransaction.~IPailu'reofthispx'o'visionwi3.1causeassignmentofthenextlover'ostunit(s)meetingthe'ab'ovecriteria.:,B.4.5AnnualReview-Eachyear,prioxto?Eay1,theratesfoxB4.1.1,B.4.l.2(c),(d),and(e);B.4.13(c},(d)~and.(e);B.4.3(b),(c)and(d)aboveshallbereviewedandupdatedbytheOperatingCommittee.AnysuchrevisedcapacitychaxgerateofB.4.11sh13.becomeeffectiveinaccordancewithits,acceptanceforfilingbythFed'eralEnergyRegulatoryCommissionoritssuccessor.Ot~exsuch,ratesshallapplyforthesuccedingyear(HaythroughApril)

~~S~c<QQ<+pQcPLgc<<U<.<tlnLQpncx.typ1lan>l<roun<rspallprawne~:caressed1n<l<:"l-nxcntnaSe3.leeagreestoEu-psh.an<'~~puye-~praystopzyfoL1naccorca:lce$41tnSCTXO,I83IEatznytipe.tgcpgya~g1srace.vngpo'=erunartnprovisionsoSECTXO'IB.aoovendthecuralplyopo--artotha3tyare=.ceadsthaschaduldcpzcitybacasaOCliit-t-o..so-,theco-..trolsystemto"ccurteyconrolt..afLoPof.Doertochac'ud,nocapacitychargeforsuera@cesspo-.~egE3.owseal:2~~10.,.~>'ithaSa<.isunabletodelivertnecoltrted.capcityroaRjOEtnaco..~ttdtineperiod,thcapacitybilliZorthardy(~)on~hie~ioloccuradsnzlloaadjusteddo4l'Ldto2.lesser'i-axe,re@res=-a~~thequa-."itywhich.thaSellerisabletodeliverSu"hzdgus~i~entsca13b~eau-,.antedvizteletypeinaccordance~~ithSJ.CZO.'I3.3i:o~av=,aEteraperiod.OE=inta-~ption',i~thaSellerisblatoresuathascheduledcleliya~and,tca3ryar'-a='stosu'ch'rasu~ptioa.;t'ianthaxas5~11-banozdjustea'ttatheczjz=.bi~in~xorthe<dzy.S-.-CLT'O~l3.6-;;"neeliZ:Itshall=.tharasponsibiliyOCtcaBuyert=ouah,'.xran~~~atsfor*thatrnsErocapcity2ndenergythrou~ainter-am~>CIsystem~.1nacostozsuchtrznsfershallbepaid.bytnaBuyer7.:I';.<i~,=SSREPRO=,tnepartiesheretohavecaused,thisSeL~wceScha8.u2.~3to.Oaazacutadoytna1rdu'yzutnor1zedoxf1cers,an8.copiesdalivara>toea~party,zsof'thaday2ndyazrfirstabovestated.CX1YOPSTCTOUDsLL~>L"'I~+~j,'YC1."=J-"Iznz~ar.~~EY<:Iayox.~'I(pwcaAL'b'L<'<~~~~gSeertzg.ORL:"~~<DOUTILE:I=SCO"D<TSSTO~frasidena.AP22.0~~ASTOPORN:'h~~py,gy'may,Gurney,6HandleyAttorneysfortheCommissionR.Stnen<.~'LaSr.,I~~o~e5 SERVICESCHEDULECECONO~HENERGYINTERCHANGEELECTRIC'SERVICEITISAGREEDthisServiceScheduleCshallbeeffectiveunder,andapartof,thaCONTRACTfor.TnterchanteService,.dated~~o,1979betweentheCITYOFST-CLOUD,FLORIDAandtheORLANDOUTILITIESCO."MISSION,hereinafterreferredtoasthe"CONTRACT".SECTIONC.l-Term:'hetermofthisServiceScceduleCs.halLbeconcur-rentwithandidenticaltothetermstipulatedinSection'1.1.oftheCONTRACT.SECTIONCe2-EconomEner'InterchaneSexvice:ThepurposeofServiceScneduleCistoprovidefornon-firmshort-termenergyinterchangebetweenthepartieshereto,andtoestablishthetexmsandconditionsofsuchenexgyinterchanges.Thetypesofenergyinterchangeprovidedforwillbethatcommonlyknownaseconomyenergyinterchange,andtheenergysointerchangedsha11meanelectricenergywhichissurplusatthetimetotheneedsof'he.sellingpartyandwhichiseconomicallyusableonthesystemofthebuyerItistheintentoftheContractthatbothpartiesengaginginEconomyEnergyIntex-hangeunderthisServiceScheduleCshallshareequallyinthebenefitsivedfromsuchInterchange.Itisunderstoodand'gx'eedthatapa'rtyisdntitl'edtoxeceiv'eenergyhereunderostotheextentthatsuchpartyhasaltexnatedependa'blecapa-'ityavailabletoitthatwouldotherwisebeused.SECTIONC.3-InformationonEconomEnerInterchane:Eachpaxtywil1,uponrequestoftheotherparty,fuxnishinformationwithrespecttogene-ratingcapacity,energy,andtimespanforwhicheconomyenergyinterchangesupplymightbeavailable.Thisinformationmaybefurnishedbycommuni.-cationbetweenOperatingRepresentativesoftheparties.C.3.1Cost-Foranyeconomyenergyinterchangetransactionhereunder,thecostofeconomyenergy@hallmeanthe~inci'ehentalexpense,as'determined'by'the'Sellerwhichitwouldincurinsupplyingeconomyenexgyhere-under.Thisincrementa1expenseshallreflectboththeincrementalexpenseofgeneratingtheenergyorobtiningtheenergyfromanothersource,includingsuchcost,ifany,ofplacingunitsinoperationandoftheincrement~in'c'rease5r-Qecr'easei'n'systemtianshission.3.osses'.atr.'-tributabletothetran'saction'.,

0.3.2C.3.3Value-Foranyeconomyinterchangetransactionhereunder,thevalueoftheeconomyenergyshallmeanthaincrcmenralexpense,asdeterminedby.theBuyer,whichitwouldincuriftheeconomyenergywer'enottobereceived.Thisincrementalexpenseshallreflectboththeincrementalexpenseofgeneratingorobtainingtheenergy'fromanothersource,includingthecost,ifany,ofplacingplantsorunitsinoperation;andoftheincrementalincreaseordecreaseinsystemtxansmissionlossesattributabletothe.transaction.hpUheelinCosts-Itshallbetheresponsibilityof.theBuyer~tomakearrangementsfortransferofenergythroughinter-veningsystems..Thecostsassociatedwithsuchtransfers:.shall:bepaidbytheBuyerandsubtractedfrom'hevalue':".-:-todeterminethe'Basis'of'Settlementdefined,inSection.C.7SECTIONC.4-AnnualReview:Promtimetotime,butnotlessthanonceeachyeartheOperating'Committeeshall'xeviewthemethodsandbasisusedbyeachpartytodeterminetheabovecostsandvalues.Eachpartyshallbethejudgeofthecapacityavailabletosupplyeconomyenergy.fromitssystemandofcommitmentstoothersystemswhichmayhavepxiarityovertheeconomyenergysupplyhereunder.SECTIONC.5-~Su3~1:EacheconomyinterchangetransactionshallbeagxeecLuponbytheOperatingRepresentativespriortocommencement"ofdelivery~ofsucheconomyenergy.TheSellerwillsupplyeconomyenergyuptotheagreedamountofthetransactionfro'mpowersourcesavailableforwhensuchsup-'ly,subjecttotheconditions,thatinthejudgementoftheselling,party:(a)suchsupplywillnotresultin.impairmentofthesellingofserviceinitssystem;and(b)adequatetransmissioncapacity'isavailableinsysteminterconnections,andinaffectedinternaltransmission,afteral-lowing,forothertxansactionssimultaneouslyscheduledoverthesametrans-missionsystem.XntheeventSellerlosesamajorgeneratingunitsourceof'upply,oratransmissionfacility,anddeterminesitcannolongercontinuethedeliveryo'feconomyenergy,theBuyershall,assaonaspossible,supplyitsownenergyrequirements.SellershallgiveBuyerat'leastthirty(30)minutesnoticeprioxtointerruptingthedeliveryofeconomyenergytotheBuyer.~+~~~~SECTIONCs6-Confirmation:Eachtransactionshallbedocumentedbythebuyingpartywithintwenty-four(2~)hoursviateletypeorloggedtelephoneconfirmationofdate,timespan,quantity,pxiceandnegotiating"represen-tativesofeachparty.;SECTIONC.7,-.Basis.forSettlement:.Thebasis.ofsettlement.for.economy..-energy'.hereundershh11'be'atthe.rat6Zetexpinied'.tobe,one-half"(0;5)thesumof:(a)thecosta'sdefinedinSECTIONC.3.1'ncurredinsupplyingsuchenergy,plus(b)thevalueas'definedinSECTIONC.3.2ofsuchEnergytothebuyingparty,minus(c)wheelingcostasdefinedinSECTIONC.3.3.'C-2 y,.;.!'g1>:=SS!.":i="tKO"",thePartiesh"rectoLaveeau"-ec~thisSŽw<IcBSea=dc>.22CQG0Jtheirc.t1)aLsthoriRed0AiCers,ca~'opies6@1i~sexed.toe-e1Prtee2SO-"-'".=deyaaJ,yo"rSir'~bOV2tat<,-'T=SŽ1-CX~YO'T-ClobDCi-g;'~nparHayoxPOPZ.~XO.mb.ZrX-SCO~~.rSSZO.r~>~SBCX'2tc~ZjjreSideatAPPROVED.AS70ZORIL:JtPPROVZD~5TO'EOB~L=I.'Gey,Gurney,&Hen&icyAttorneysfortheCommissionRtePh-4"~Bs~CitJtZt.toZttRJs'~~~~'+0 SERVXCESCHEDULEDFXP21DalTERC}MAGESERVXCEAGREEDthatthisServiceScheduleDwillbeeffectiveundex,andapart,of,theCONTRACTforInterchangeServicedatedHa",1979,between.theCITYOFST.CLOUD,FLORIDAandtheORLAHDOUTXLXTXESCO'EIXSSXON,hexeinafterreferredtoasth"CO'ATPACT".SECT101-Term:ThetermofthisServiceScheduleOshall'beconcurrentwithandidenticaltothetermstipulatedinSEC110'S1.1oftheCOSTEACTSECTIOND.2-FirmXnteichaneService:Fixminterchangeserviceshallmean..thatquantityof.:capacityand.energy..suppliedbyone.party.(Seller).tothe'therpar'ty.(Buyex)tinaccoxdancf'ithaspecificfnegotXated"commitment.The"BuyerwillprovidetheSeller,duringthecommitmentperiod,anadvancedailyfoxecastofcapacityand.accompanyingenergytobedeliveredTheBuyersha11mateareasonableeffort'toconformtotheforecastandnotifySeller,assoon.aspossibleofanyrevisions.Theforecast~rillbecoordinatedby1500hourspriortothedaycapacityandenergyisneeded.'Onthedeliverydate,Sellerwillhave30minutestoinitiatescheduledamountswithintheforecastpex'iodorlosethedailydemandcharge.~TheSellershall.makeeveryefforttoconformm.ththeBuyersdailyforecastuptotheamountofthefirnelectricservicecommit-.mentfromallnormallyavailablegeneratingresources.XftheBuyerdoesnotpur-cnasetheenergyscheduledforagivenday,anyactualadditionalpostsincurrbytheSellerinhavingthe'scheduled.capacityavailbleshall,attheoptiontheSeller,beincludedinthepaymentschedule.SCTXOND.3-FirmServiceCommitments:EachpartywilldetexmineStsneedsforandavailabilityoffirminterchangeservicefromtimetotimeand.AU.negotiatewiththeotherpartyforsuchservice.Totheextentthatsuchsexviceisxe-questedbyonepartyandisdesiredtobemadeavailablebytheotherparty,acommitmentsha11bemadebetweenthepaxtiesheretoforsuchservic'e.Eachfirminterchangeservicecor~tmentshallnotemceed.atermofthirty-siv(36)months,'orbelessthanatermoftwelve(12)months.'nysuchcommitmentshallbeevidencedbyduplicate,copiesofaletterofcommitmentfromtheBuyextotheSellerandsignedbytheBuyer,whichdocumentsshallprovideappropxiatespacethereonforacceptancebytheSellerandwhichshallbesignedinduplicatebytheSellerwithin30days.asevidenceofsuchacceptanceandonecopythere-.ofreturnedto.Buyer..hSECTXOND.4-PaentfoxService:Forfirminterchangeservicemadeavailablefroronepartytotheother,theBuyershallpaytotheSellereachmonthanamountforcapacityandenergycomputedatthefollowingmonthlycharges:.D.s.l.~Caacit-Thecapacity.chargeshallbenegotiatedfor'achfirminterchangeservice-copnitmentand:such.chargesshall,lbesetfox'thin'theletter'ofcommitmentxeferredtoinSECTIOND.3.D.4.2~goer-Thaenergychargeshallbanegotiatedforsuchfirminterchangeservicecommitmentandsuchchargesshall.besetforthintheletterofcommitmentreferredtoinSECTXO"1De3 SECTIOND.5-CaoacitSillin:Capacitybillinghereundershallbathefirminterchangeservicecapacitycommitmentinmegawatts(tSV}asastabU.shedinSectionD.3,unlessadjustedassetfoxthinSECTIOND.7SERIO.'4D.6-Vheelin~:Itshallbetheresponsibilityoftha3uyertomakearrangementsfortransferofcapacityandenergythroughinterveningsystemsTnecostofsuchtransfershallbapaidbytheBuyer.SC'ZIOND.7-BillinAdustmentswithinContxactPeriod=XntheeventthePartieshavereachedanagreementuponthetexmsofacommitment'underthisServiceScheduleDandtheBuyerrequeststheSellertodeliverpoweruptothaaountofthethenestablishedcapacitybillingcommitment,whichpower,aftexreasonablenoticefromtheBuyertotheSeller,Sellerfailstomakeavailabla~.thecapacitybillingforthatdayshalladjusteddown>>archtoa1essar'igurerepresentingthequantitywhichthy.Seller..is.~gilling-.ance.ab.a,'to.-makaavailab3.e.:(for"bS.lling.edjustmen~s'nder'his:Sect'ion.ad'ay'sha11'onsist"of'l/365'ofa-year).Reasonblenoticeshallbedefinedasthirty(30)minuteswithintheforecastperiodandeight(8)hoursfortimeexternaltotheforecastperiod.Xtistheintentofthepartiesthatmalfunctionsofsystemfacilitiesshallba.consideredreasonablybeyondthecontxolofeitherpaxtyHo~sever,intheeventofsuchmalfunctionstotheSeller'sequipment(oranyoftheeventsdescribedinSEC1X038.1ofthecontractofXnterchangaService)duringthateraofafirminterchangeservicecommitment,ifafterthoro(2)hourstheSeller.i.sunabletodeliverpo>>exuptotheamountofthefixminterchangeservicecom-mitment,thenthecapacitybillingfortQatdayshallbaadjusted,downwardtoalesserfigurexepresenting,thequantitywhichthaSelleris>Mlingandabletomakeavailable.Xf,afteramalfunctionoxevent,theSa11exisabletoresumedeliveryofthefullamountofthefixminterchangeservicecorntmentandtha.Buyeragreestosuchxesumption,thenthereshal1banoadjustmenttothecapacitybillng.XfatanytimethaBuyerisreceivingpowerundertheprovisionsofSECTION92above,andtheactualsupplyofpowertothaEuyerexceedsthathenestablished.capacitybillingcommitmentbecauseofthelimitationsoxtnecontxol,systemtoaccuratelycontrol.theflowofpowextotheexactamountscheduled.~nocapa-citycnaxgefox'uchezcesspowerflowshallbemade.Xf,inanydayduringthetermofafirminterchangeservicecommitment,therearecircumstancestocusmorethanoneadjustmenttothacapacitybilling,tnatcircumstancewhichresultsinthelowestcapacitybillingsha11batheonauponwhichthebilingadjustmentshallbebased..*Thetieintervalsfordeterminingthebillingadjustmentsha11bethesi~ty(0)ninuteintegatedpo>>exdemandbetweentheclockhours.Xtisagreed.tele-meteredreadingsnaybeusedforthispurpose.AdjustmentstothacapactybillinginaccordancewiththisSECTIOND.7shallbeagreed.tobytheopaxatingxepxesentativeofeach.paxtyanddocumentedviateletype.~~4~'I

'IXLcFSSo'aha~OL;qthpert>estc---ACRCPS>gcythe'u4"uthorzCDriese1-/r=tostyottQyCXL*0.=STCE.OJDCit)Hanpger?wyorSy'ecretevJ'reside~~tAPPROUEDASTOFORM:iOUEDZQgpFQD'~.fEY:-...9Cney,Gurney,&HandleyAttorneysfortheCommissiontep=--Eliles,C>tfAt,tow CONTRACTFORXNTERCHANGESERVICESECTION0.1-TheundersignedmunicipalcorporationsherebyagreetothefollowingcontractandtothoseServiceScheduleswhichhavespecificallybeen'pprovedbyeachindividual,municipalityNITNESSETHSECTION0.2-WHEREAS,thepartiesheretooperateelectricsystemswhicharedirectlyinterconnected,orwhichareindirectlyelectri-callyinterc'onnectedthroughtheelectrictransmissionsystemsofothers,andSECTION0.3contractbethroughtheSECTION0.4allparties-WHEREAS,thepartiesheretodeerait:desirablethatthismadeforthe,interchangeofelectriccapacityandenergysystemsofothers,and-WHEREAS,suchint.erchangearegenerallybenefici.altoinvolved,andSECTION0.5-WHEREAS,eachpartydesirestoestablishthetermand.conditionsofsuchinterchangeofelectriccapacityand.energyforitsrespect:ivesystem;SECTION0.6-NOW,THEREFORE,inconsiderationof.theforegoingandofthemutualbenefitstobeobtained,fromthecovenantsherein,thepartiesheretodoherebyagreeasfollows=ARTICLEITEE&1OFCONTRACTSECTION1.1-Term:TheinitialtermofthisCONTRACTsha11'beforsevenyears(7)commencingonthe1stdayofDecember,1977,andshallbeautomaticalXy'extendedforthree(3)yearperiods,there-after.Tnecontractmaybecancelledbyaparty,withrespecttothatparty,at.anytime.aftertheinitialtermuponthreeyears'rittennoticetotheotherparties,whichnoticemaynobegivenuntilaftertheendoftheinitialterm,provided,however,thatt.hetermo.thisContractshallnotbeforaperiodlessthanthetermofanyServiceSchedulecommitmenthereunderARTICLEXXINTERCHANGEOFCAPACITYANDENERGYSECTION2.1-Interchange:XtisrecognizedthatinterchangoofvariousspecificclassesofservicecanbemadebyeachpartytotheotherinfurtheranceofthepurposesofthisContract.Apartydesiringdeliveryofcapacityand/orenergymavrequestsameromI timetotime,andthepartyreceivingsuchrequestshal1.promptlyconsidertherequestand,informtheotherpartyasto.theextenttowhichtherequestwillbegranted,andthepaxtiesshallthereby'greeuponschedulesofdelivery,consistentwith'thegeneral.ter'msandconditionsofanyServiceSchedulehereunderARTICLEIXXOPERATIONgSECTION3.4-RequlationofTransferofPowerandEnery=Thepartiesheretoagreethatitistheresponsibilityofeachpartyoperateitssystemandfacilitiesinamannertoprovideforitssystemloadatalltimes,exceptasothexsriseprovided.hereinormutuallyagreedupon,andtoholddeviationsfromnetcheduled,owcLBSi,'ECTION3.1-,AccessorFacilities:Thepartiesheretowil1providecommun>cation,telemetering,generationcontrolequipmentand/or'uchotherfacilitiesfordispatchingpurposesandforcontxo1ofpowerflowerand,flowofreactiveKVAasisnowormayhereafterreasonably.berequiredinaccordancewithgood,modernpractice,asdeterminedbytheCommitteepxovidedforinSECTION33SECTION3.2-PartiesResonsible:Eachparty'eretoshallprovideoperate,andmaintainatitsourncostandexpense,suchoftheequipmentandfacilitiesasmaybeusedpursuanttotheforegoingpxovisionsofSECTION3.1.SECTION3.3-OeratinCommittee:Eachpartyshall,appoint.arepre-sentativeandanalternatetotheOperatingCommittee,andsonotitheotherparty.ThisCommitteeshallmeetat.therequestofaparty,atatimeandplaceagreeduponbythemembers,andreviewthedutiessetforthherein.Eachrepresentativeandalternate'.shallbearesponsiblepersonwor3cingwiththeday-to-dayoperations~"ofeachrespectivepo~rexsystemThisCommitteeshallrepresentth.paxtiesinallmattersarisingunderthisCONTRACTwhichmaybedele-gatedtoitbymutualagreement.ofthepartiesheretoEachpartyshallcooperateinprovidingtotheOperatingCommitteeallinforma-tionrequiredinthepex'formanceofitsdutiesSuchdutiesshallinclude,but'arenotlimitedto,the.following=1)PreparationofControlandOperatingProcedures2)'Supervision.ofInterchangeAccountingFunctions3)NegotiationsforAdditions,Changes,orI!odificationstothisCONTRACTandServiceSchedule(s).XftheOperatingCommitteeisunabletoagreeonanymatterfallingunderitsjurisdiction,suchmattershallbereferredbythemembersoftheOperatingCommitteetotheirPrincipalsfordecisionFailureofthePrincipalstoagreeonanymatterxefexxed.tothemshallnot.constituteabasisforcancellationofthisCONTRACT2Q1commit-mentsandagreementsm'adebytheCommitteeshallbeevidenced.in~rritin deliveriestoaminimum.Tothisend,eachpartyshallprovideandoperatemanualand/orautomaticgenerationcontxolequipmentinaccordancewithstandardpracticesoastoavoidmakingobjection-abledemandsuponothersystemsduringnormal'peration,SECTION3.5-Disturbances:Eachpartyshall,.insofaraspracticablesoprotect,operateandmaintainitssystemandfacilitiesastoavoiddisturbanceswhichmightcauseimpaixmenttoserviceinthesystemsofotherpartiesSECTXON3.6-Transfer.ofPowerandEneryThrouhOtherSstems:Sincethesystemsof-.thepartiesheretoarenowdirectlyintercon-nectedwithothersystems,itisrecognizedthatbecauseofthephysicalandelectricalchaxacteristicsofthefacilitiesinvolved,,anyinterchangeofpowerwillflowfromonepartythroughothersystemstotheotherparty.Xnsuchcases,thepartiesagxeetoendeavortomakesatisfa'ctoryarrangementswithothersystemsforsuchdeliveriesandtransferssoasnottoburdensuchthirdpartiesandtomaintain.goodrelationshipswithaffectedthircL,partiesfortheoverallcoordinated.bulkpowersysteminFlorida.Eachpartyshallalsouseitsbesteffortstomaintainatalltimessatisfactoryrelationshipswithothersystemstowhichtherespec-tivepartiesareinterconnected,andthebuyershallheresponsibleforandmakearrangementsforthirdpartycompensationARTICLEXVELECTRXCSERVICESECTION4.1-ElectxicService:Itisrecognizedthattxansactions.unc'.exspecific.classesofserviceandtheratesapplicabletoeachclassofelectricservicemust.necessarilydepend.uponthecondi-tionsexistingfromtimetotime.Thesalesandpurcnasesundereachclassofelectricserviceandtheterms,arrangementsand.ratesapplicabletheretoaresetfortn.intheServiceSchedules,whichSchedules,whenexecutedbythepartieshexeto,shallbecomeapartofthisCONTRACTTheServiceSchedulesinitiallymadeaparthereofincludethose.fromthelist-ingreferredtobelowwhichhavebeenexecutedand,appended.hereto=EmergencyXnterchangeElectricServiceShortTermFirmElectricServiceEconomyEnergyXntexchangeElectricServiceFirmElectricServiceSecondaryEnergyElectricServicePowerTransmissionElectricServiceReserveCaServiceScheduleA-ServiceSchedule3-ServiceScheduleC-ServiceServiceServiceServiceScheduleScheduleScheduleScheduleDEFGpacxtyElectricServiceAdditionalServiceSched'ulesmaybeaddedfromtimetotimeas(mutuallyagreedtobythepartiestothisCOi>TRACT.(

ARTICLEVELECTRIC.GENERATINGCAPACITYSECTION4.2-ScheduledDeliveries=XtisrecognizedthatthesigtoriesheretomaintaininterconnectionswithotherutilitiesForthisreasontheactualflowofpowerintooroutofasystemw~ould.bethenetflowmeasured.atseveralmeteringpointsThereforeQuetothedifficultyofobtainingthesemeteredvaluesanQmakingthemagreewitnscheduledvalue,unlessotherwiseagreedupon,allbill-ingsshallbeinaccordancewithscheduleddeliveries.reerthanactualmterednetinterchangeofpower.Thepartiesheretoagreetoholdtneexchangeofcapacityand/orenergyascloseaspossibletoscheduledquantities.ThedifferencebetweenscheduleQ,deliver-iesandactualnetdeliveriesshallbedeterminedattheendofeachhourofhe.-scheduleddelivery,andthedifference,sodeterminedshallbeclassedasinadvertentinterchange(SECTION4'3)SECTION4.3-XnadvertentTransferafElectricEner=Inadvertent:transferofenergyisatransferofenergybetweenthesystemsofthepartiesheretoandthird,partyatvariancewiththescheduleddeliveryasaresultoftheinherentphysicaland,electricalcharac-teristicsofthesystems,limitationsintheequipmentused.Cocontroltheflowofpowerbetweenthesystemsorlimitationsinthe.operationofsuchequipment,orasaresultoftemporaryarrange-.mentsfortestingpurposes.InadvertentenergyshallbexeturnecLinki;ndattimesmutuallyagreedupon.SECTION5.1-ElectricGeneratinCaacittobeProvideQ=EachpartyagreestocarryitsproportionateshareoftheoperatingreservesasiscurrentlyestablishedandrecognizedasgoodelectricutilityoperatingpracticeintheStateofFloridaARTICLEVXBILLINGANDPAYHENTSECTION6.1-Presntationand.Pament:Eachofthepartiesshallsubmittotheother,aspromptlyaspracticableafterthefirstofeachmonth,aninterchangebillingstatementanQbillfortheinter-changetransactionandtherespectiveamountdueunderthetermsofthisCONTRACTfortheprecedingcalendarmonth.Thisprecedingcalendarmonthshallhereinafterbereferredtoasthe"deliverymonth."Allsuchbillsshallbedueandpayablewithin.ten(10)daysfromtheQateofmailing(asQeterminedbypostmark)fromthegeneralofficeofthebillingparty,orsuchotherofficeasmaybedesignatedinwritingbythebillingpartyToexpeditebilling,themostrecentcostdatawillbeusedfortheinitial.billing.adjustedbillingstatement,ifrequiredtoreflecttheactualcosofdelivered,energy,shallbeissuedwithinsixty(60)daysBydefinitioneconomyenergyunderServiceScheduleCanQseconQaryenergyun.erServiceScheduleEisnotsubjecttosuchadjustment

,Xn'caseanyportionofanybillisinbonafidedispute,'theundis-putedamountshallbepayablewhendue.Upondetexminationofthecorrectamount,thexemaindex,ifany,shallbepaidpromptly.ARTICLEVXXFORCEMAJEUREANDXHDEt&TKFICATXOMSECTION7.1-ForceHacure:Xncaseapartyheretoshouldbe'"a"~"sagreements,covenantsandobligationsmadebyandimposeduponsaid.partybythisCOiVZRACT,includingallcovenantsandobligationsmadeintheattachedExhibit(s)andServiceSchedules,byreasonofoxthroughstxike,stoppageinlabor,failureofcontractorsorsuppliersofmaterials,riot,fire,flood,ice,invasioncivilwax',commotion,insurrection,militaryorusuxpedpower,oxderofanycourtgrantedinanybonafideadverseleg'alproceedingsoraction,orderofanycivilormilitaryauthorityeitherdefactorordejure,explosion,actofGodoxthepublicenemiesoranycausereasonablybeyonditscontxolandnotattributabletoitsneglect;thenandinsuchcaseorcases,thepaxtiesshallberelievedofpexfoxmanceunderthisAgreementandshallnotbeliabletotheotherpartiesfororonaccountofanyloss,damage,injuxy,orexpenseresultingfxomoraxisingoutofsuchdelayorprevention;pxovided,however,.thatthepaxtysufferingsuchdelayorpreventionshallusedueandpracticablediligencetoxemovethecauseorcausesthereof;andprovided,fuxther,thatnopartyshallberequiredbytheforegoingprovisionstosettleastrikeexceptwhem,accordingtoitso~mbestjudgment,suchasettlementseemsadvisable.SECTION7.2-ResonsibilitandXndemnifications:Thebuyingpaxtyexpresslyagreestoxnemnxyansaveaxmlessanddefendthesellingpartyagainstallclaims,demands,costs,orexpensesfoxloss,damage,oxinjurytopersonsorproperty,inanymannerdixectlyorindixectlyconnectedwithorgrowingoutofthegeneration,transmissionoruseofelectricpowerandenergysoldpursuanttothisAGREE~~IENT,whichoccurbeyondanyofthesellingparty'spointsofownership,unlesssuchclaimoxdemandshallarise.,outoforxesult'fromthenegligenceorwillfulmisconductofthesellingpaxty,itsagents,servants,oxemployees;pro-vided,however,thatneitherpartyshallberesponsiblefordamageorinjurytoemployeesoftheotherpartywheneversaid.otherpartysemployeesareonthesaidotherparty'spremisesFurther,thisAGREEiKVZinnowaycreatesacontractualrelationshipofonepaxtywithacustomerofanotherparty;neitherdoesitcreateadutythereto.ARTXCLEVIXXMXSCELXA'MOUS,SECTION8.1-Maivexs:AnywaivexatanytimebyanypartyheretogE~*phpyIpymatterarisinginconnectionwiththisCONTRACTshallnotbecon-sideredawaiverwithrespecttoanysubsequentdefaultormatter.p,W1

~~I~SECTXON8.2-SuccessorsandAssins:ThisCONTRACTshal3.inuretothebenefitofandbebindinguponthepaxtieshereto,theirres-pectivesuccessorsandassigns,andshallnotbeassignabletoanypartywithoutthei)rittenconsentoftheotherpartiesexceptas-toasuccessorintheoperationofitspropertiesbyreasonofamerger,consolidation,saleorforeclosurewheresubstantiallyal3suchpartiesaxeacquiredbysuchasuccessorSECTXON8.3-Notices.Anynotice,demand,orrequestrequired.oxauthorizedbythisCONTRACTshallbedeemedpropertygivenifmailed,postageprepaid,tothedesignatedofficialatthedesigna.-tedaddresssetfoxthonthesignaturepageforeachsignatoryThedesignationofthepersontobenotifiedortheaddressofsuchpersonmaybechanged'atanytime,orfromtimetotime,bysimilarnotice.SECTXON8.4-TaxAdustment:Tothecapacity(whenapplicable)andenergychargesofallServiceSchedulesshallbeaddedtheapplicablepxoportionatepartofanytaxesand,assessments(exceptStateorFederalXncomeTaxes)imposedbyanygovernmentalauthor-ityinexcessof.thoseineffectasofthedateofthisCONTRACTwhichareassessedonthebasisofmetersorcustomers,orthe=priceofoxrevenuefromelectricenergyorsexvicesold,orthequantityofenergypurchasedorgeneratedforsaleorsoldXntneeventapartypaysa"grossreceiptstax"totheStateofPlorida.inrespecttointerchangeshereunder,thepartymakingsuchtaxpaymentshallbefullyreimbursedbythepartypurchasingtheelectiicenexgy.&-,.tXH41XTHESSHHEREOP,thepartiesheretohavecausedthisCONTRACTtobeexecutedby.theirdulyauthorizedofficers,and"c"opiesdelivered.toeachpaxtyasofthedayandyearstatedbelo::r;.'."-)eI~I)~J.,)AESTWUTXLXT=CATTY:OPVERO:BEACH.ByfP'./'/i~')~ADDRrSSP0POX3.DATE.:.,~/,)'i~ATTESTeUTXLXTY:ORLAHDr/s~/:TXESCOMiXSSXOil48$lf"qf/ecvhvpVicepresMentADDRESS:P-0-BOX3193DATE:Nay15,1978

~~\SERVICESCHEDULECECO'11101~17IHTERCHA'ii1GEELECTRICSERVICEITISAGREEDthisServiceScheduleCwillbeeffectiveunder,and.apartof,theCONTRRCTcommencingDecemberl,1977forelectricservicebetweenthesignatoxiesofsuchcontracthereinafterreferredtoasthe"CONTRACT".SECTTONC.l-Term=ThetermofthisServiceScheduleC.shallbeconcurrentwithandidenticaltotheteimstipulatedinSECTiON11oftheCONTRACT.SECTIONC.2-EconomyInterchaneService:ThepurposeofServiceScheduleCistoprovidefornon-fixmshoxt-termenergyinterchangebetweenthepartieshereto,andtoestablishthetermsand,condi-tionsofsuchenergyinterchanges.ItistheintentoftheCONTRACT'hatthepartiesengagingineconomyinterchangeunderthisServiceScheduleCshallshareequallyinthebenefitsderived.fromtheinterchange.TnetypeoxenergyinterchangeprovidedforwillbeMatcommonlyknownaseconomyinterchange,andtheeneigysointerchangedshall~~~~~meanelectric-energywnichissurplusatthetimetotheneedsofthesellingpartyand~'whichiseconomicallyusableonthesyst:emofthebuyer.Cost,valueandavailabilitywillbedeterminedonan.hour-by-hourbasis.Itisunderstood'andagreedthat.apartyisentitledtoreceiveenergyhereunderonlytotheextentthatsuchpartyhasalternatedependablecapacityavailabletoitthatwould.otherwisebe'sed.and.thatcanbebrought'onlinewithinthetimelimitationsetbytnesellingpartywithrespecttoeachtransactionunderthisServiceSchedule-C.uponrequestofanotherparty,fuxnisha.nfoxmatxonwithrespecttogeneratingcapacity,energy,andtimespanforwhicheconomyinter-changesupplymight,beavailable.ThisinformationwillincludetheCost,aslaterdefined,ofeconomyenergythesellercanmaReavailable.ThebuyershallfurnishtheValue,aslaterdefined,ofeconomyenergyit,canutilize.SuchinformationmaybefurnishedbycommunicationbetweenOperatingRepresentativesofthepartiesC.3.1Cost-Foranyeconomyinterchangetransac-tionhereunder,theCostofeconomyenergyshallmeantheincrementalexpense, detexminedbytheseller,whichitwouldincurinsupplyingeconomyenergyhere-under.Thisincrementalexpenseshallref3.ect,boththeincrementalexpenseof'eneratingtheenergyorobtainingtheenergyfromanothersource,includingsuchcost,ifany,.oftheincrementalincreaseordecreaseinsystemtransmissionlossesattributabletothetransaction.C32Value-Foranyeconomyinterchangetrans-actionhereunder,theValueoftheeconomyenergyshallmeantheincrementalexpense,asdetermineQbythebuyer,whichitwouMincuriftheeconomyenergywerenottobereceived..Thisincrementalexpenseshal3.reflectboththeincrementalexpenseof-generatingorobtainingtheenergyfrom.anothersource,includingsuchcost,ifany,oftheincrementalincreaseordecreaseinsystemtransmissionlossesattributabletothetransaction.C.3.3NheelinCosts-Xthallbe'theresponsi-bilityofthebuyertomaketheaxrangementsand,thepaymentsforthetransferofenergythroughinterveningsystems.Xtisunder-stood,however,thatthebasisforsettlementasQefinedinSECTIONCe7wilI,result..'inthebuyerandse3.lersharingequallyinwheeingcosts..C.34AdditionalCosts-When,'noxQertocarryouttheeconomyinterchange,thebuyerorsellerissubjectedtoadditionalcostsnormallyassociatedwithstarting,bankingorshutdownofunits,oranyothersuch"costs,whichareincurredbyreasonofthe.transaction,thenthereshallbeadjustmenttothechargesbymutuallyagreeableadjust-"mentterms.SECTIO?3C.4-AnnualReview:Promtimetotime,butnot,lessthanonceeachyear,theOperatingCommitteeshallreviewthemethodsand.basisuseQbyeachpartytoQeterminetheaboveCost.and.ValueEachpartyshallbethejudgeofthecapacityavailabletosupplyeconomyenexgyfromitssystemandofcommitmentstoothersystemswhichmayhavepriorityoverthe,economyenergysupplyhereunderSECTXO'.1.C.S-~Sunni:EacheconomyinterchangetransactionshallbeagreeduponbytluteOperatingBepxesen.tativespriortocommence-mentofdeliveryofsucheconomyenergy.These3.lerwillsupplyeconomyenxcyuptotheagreedamountofthetransactionfrom

(;powersourcesavailableforsuchsupply,subjecttotheconditions,thatinthejudgmentoftheseller(a)suchsupplywillnotresultinimpairmentorjeopardyofserviceinitssystem;and.(b)adequatetransmissioncapacityisavailableinsysteminterconnections,andinaffectedinternaltxansmission,afterallowingforothertransactionssimultaneouslyscheduled.overthesametransmissionsystemForeachtransactionunderthisServiceScheduleC,sellerand.buyershallagreeuponaschedule'fdeliveriesandatimelimitationonnotice'ythesellertothebuyerpriortointer-ruptingorterminatingsuchd'eliveries,provided,however,intheeventsellerlosesamajorgeneratingunit,sourceofsupply,oratransmissionfacility,anddeterminesitcannolongexcontinuethedeliveryoreconomyenergy,thebuyershall,assoonaspossible,supplyitsownenergyrequixementsSECTIONC.6-Confirmation.Eachtransactionshallbedocumentedbythebuyingpartywithintwenty-four(24)hoursviateletypeorloggedtelephoneconfirmationofdate,timespan,quantity,price.andnegotiatingrepresentativesofeachpaxty'SECTIONC.7-BasisforSettlement:Thebasisofsettlementforeconomyenergyhereundershallbeatthexatedetermined,tobeone-half(0.5),,thesumof:(a)thecostasdefinedinSECTIONC.3.1incurredinsupplyingsuchenergy,plus(b)thevalueasdefinedin.SECTiONC3.2ofsuchenergytothebuyingpartyminus(c)wheelingcostsasdefinedinparagraphC.3.3.Thebasisofsettlementasdeterminedaboveshallbeadjustedinaccordancewithanyadditionalcostsasdefinedin~SECTIONC.34.'J~'~,ATTEST:~?UTXLXY=CX'g2.0rVERO,BEACHrs~f<CA'iADDRESS-P'0'OX138'ATE:'/'JATTEST-./rr'.~f,DAgls<..">'fScctgtg+gUTILIT~::ORLEDOXTXESCOi~iiMISSXOiTar.~xe"univ~'~-p.-.,:ADDRESS=P.0.BOX3193DATE:Nay15,1978

r+CCE\IC'jrCC\CPCCCC~C

PI"BsmtemQFovroerIjembevaORLMIDOUTILITIESCOMMISSIONLV.T.BlandJ.F.AngeJudgetC.MasseyH.LBeemanAlvinJeffersonNyeH.H.DicksonW.iLO'NealLB.FortMayorLM.AutreyDr.G.H.EdwardsTurnerEvansMayorJamesLGilesJ.MerleMcElroyMayorS.Y.WayGeorgeF.Brass'inorderofappointmentH.LMcDonaldH.C.BabcockMayorV.W.EstesC.P.DickinsonE.W.YandreC.G.MagruderH.N.DicksonLB.McLeodJ.T.BranhamMayorWm.BeardallClarenceJLJohnsonDr.H.M.BeardallDr.J.S.McEwenW.JLHutchinsonE.A.StebbinsE.LBrewtonMayorJ.RolfeDavisJLP.ClarkR.T.OverstreetS.M.HeasleyMayorRobertS.CarrMayorCarlT.LangfordLloydGahrE.G.LangstonWallaceMercerTomDenmarkRichardH.LawrenceSamWilkinsRichardY(.SimpsonHenryT.Meiner39i72',G.omf0jISZI00eI'eDickSimpsonPresidentSamG.WilkinsFirstVicePresidentAaHenryT.MeinerSecondVicePresidentA+$y1hCarlT.LangfordMayorKH.lawrenceCommissionerCurtisH.StantonExecutiveVicePresident KQDW0L4%,KE)QQ~KXBackattheturnofthecenturyanOrlandoJudge,JohnM.Cheney,organizedtheOrlandoWaterandLightCompanyandsuppliedelectricityonapart-timebasiswitha100kilowattgenerator.Twenty-four-hourservicebeganin1903.By1922,thecity'spopulationhadgrowntoabout10,000andtheJudge-realizinganeedforwiderservicesthanhiscompanywasabletosupply-urgedhisfriendstoworkandvotefora$975,000bondIssuetoenablethecitizensofOrlandotopurchaseandmunicipallyoperatehisprivately-ownedutilities.Thebondissuecarriedalmostthreetoone,asdidasubsequentissueof$525,000foradditionalimprovements.Orlandocitizenstookoverthecompany,withits2,795electricitycustomersand5,000watercustomers,foratotaloriginalinvestmentof$1.5million.rh'~'~'ri'E.r,F'Je~;-:,";-.=S.':i:.':.i">>..-.:;FirstfacilityofOrlandoUtilitiesCommission-waterandpowerplantonlakeHighland,purchasedbyCitizensofOrlandoin1922forapproximately$600,000.Thefollowingyear,1923,theOrlandoUtilitiesCommissionwascreatedbyanactoftheStateLegislatureandfullauthoritywasgrantedthisCommissiontooperatetheplantasamunicipalutility.Thebusinesswasapayingventurefromthestart.Infact,by1924thenumberofcustomershadmorethandoubledandtheCommissioncontributed$53,000tothecity.Throughtheyears,outsideinterestsmadeseveralattemptstobuytheOrlandoUtilities.In1932,a$5millionofferwasmade-$2millionmorethantheplantwasthenworth.AnelectionwasheldandthepeopleofOrlandovotedseventooneagainstthesale.Thewisdomoftheseearlycitizenscanbefullyappreciatedwithalookatthereturnonthatoriginalinvestmentof$1.5million.

IIQ~KPOrlandoUtilitiesCommissionownedbythepeopleofOrlandoisnowworth$178million.Overtheyears,OUChascontributedmorethan$76milliontotheCity.Anditcontributed$76millionandbuilta$178millionbusinessallthewhileloweringthecostofelectricitytotheconsumerby60percent.Inoperatingefficiencyandreliability,OUCranksveryfavorablywithotherutilitysystems,someconsiderablylarger.ThemenwhoframedtheOUCchartertookeverypossibleprecautiontosetuptheCommissioninamannerwhichwouldeffectivelyeliminatepoliticalpressureandinfluence.FourcitizensofOrlandoarenamedtoserveasCommissionersalongwiththeMayor,whoisautomaticallyanex-officiomemberoftheOUC.Thesemen,whoservewithoutpay,areappointedforstaggeredfour-yeartermsandmayservesecondtermsifrenominatedbytheCommission.TheCommissionactuallyfunctionsasaBoardofDirectorsofacorporation.TheworkingarrangementwiththeCityofOrlandoisthatbyagreementbetweenthepartiesconcerned,50percentofthenetcashreturnfromafive-yearmovingannualaverageplusasixpercentfranchiseequivalentonallmeteredelectricityandwatersaleswithinthecityistransferredtothegeneralfundofthecity.TheOUC,therefore,iso'peratedsimilarlytoaprivatebusinesswithprofitsreturnedtothecitizensofOrlandotohelpprovidethemanyservicesneededsuchaspoliceandfireprotection,sewerageandsanitaryfacilities,streetpaving,cleaningandlighting,parksandplaygrounds,trafficengineering,airportoperationandhealthdepartmentservices.TheadvaloremcitytaxbillofeveryOrlandohomeowner,thetaxesthatpayfortheservicesjustnoted,iscutbecauseofthecontributionsmadetotheCitybytheOrlandoUtilitiesCommission.The1972totalcontributionwas$6.2million;1971-$5.5million;1970-$5.1million;1969-$5.1million;1968-$5.1million;1967-$4.3million;1966-$4.2million;1965-$4.2million.Thetotalcontributioninthelasteightyearswas$40million.FewcitiesinAmericagivepropertyownersanequityinutilitiesthatpayforhalftheircityservicesandstillfurnishthemhighestqualitywaterandanincreasingsupplyofelectricityatcompetitiverates.QUIotsNi>>**+w"4i'4dr>>-"I~v>>r*'"l>>Ir'>>>>>>t't.'"my'h>>>>t>>>>>>!>>trte~'IrI.I~ate'tssf-~lrl'.,W'!III,-,W"0IiI;"w8II~06~I,'I!V>>e,Ia~tt

<<utoe.e~er-~~)Q'y~rIP~Ps~pupaSoutheastwaterplantatConway-oneofsevensatelliteplants,remotelycontrolledfromthemainplantattakeHighland.rrfrsr4sarWl'*'!'4%vr2thA~,ggy'ht4/'s."~6PWp'HLakeivanhoeplantforelectricityandwater.QOOXQ~PP'0~&CurrentlytheCommissionisinthemidstofagreatexpansionprogram.In1972,customerdemandforgreatercomfortandconvenienceinthehomeandhigherefficiencyinbusinessandindustryledtoanalltimeOUCrecordintheproductionofelectricity.Homeconsumptionrosetoanaverageof12,141kilowatthours,thehighestusageinthestate.Peakdemandin1972was371,000kilowatts.Itispredictedthatthepeakswillgrowto400,000kilowattsin1973,459,000KWin1975-and620,000KWin1980.Tomeetthisneed,OUCisunderwaywitha$100millionexpansionprogramspotlightingthe$45million,325,000kilowattgeneratingunitthatwillbeoperationalbymid-1973.Theprogram'scostwillbefinancedbybondissuesandoperatingrevenuesofthenext10years.Poweruseagainisexpectedtocatchupwithoutputintheearly1980'sandOUCwillneedstillanotherunitinoperationbythen.Thoughinvolvedinthistremendousexpansion-averynecessaryexpansionifOUCistokeeppacewithOrlando'sprojectedgrowth-OUCwillnotcutbackthecontributiontotheCity.Infact,thiswillbuildtoanestimated$8millionannuallyby1978.

I~411~P,E~gr.47,'I4<'SLY,~I~IQLq.411'~~~ASSETSDecember31BAI.ANCESHEETUtilityPlant.........RestrictedFunds....CURRENTASSETS..TOTALASSETS.1972$145,180,56823,001,0439,591.9713177,773,5821971$112,331,10549,043,88811,000,4913172,375,484Increase(Decrease)$32,849,463(26,042,845)'1,408,520)35,398,098I.IABILlTIESAMDCAPITAI.llATIOMDecember31Capitalizatinn:19721971AccumulatedRetainedEarnings..$67,203,347$61,316,638Long-TermDebt...............104,915,405106,890,704CurrentLiabilities.............4,275,8103,300,570OtherLiabilities...............1,379,020,867,572TOTALLIABILITIES........3177.773,5823172,375,484Increase(Decrease)$5,886,709(1,975,299)975,240511,448$5,398,098HIGHI.IGHTSof1872Numberofelectricmeteredservicesincreased3%to67,688.Averageannualhomeuserose3.9%to12,141kilowatthours.RecordpeakloadonAugust4,1972:371,000KW.Overallgenerationincreasedto1,792,756,000kilowatts,up7.7%.Waterconsumptionincreasedto11,357.892,000gallons,up6.4%.Averageannualusepercustomer:205,000gallons.Totalelectricandwaterrevenuegrew11.4%to$37,270,351.In1972,theOrlandoUtilitiesCommissionpaid$4,928,000inDividendsand$1,268,600inFranchiseEquivalent,foratotalof$6,196,600totheCityofOrlando.OnehundredpercentofOrlandoUtilitiesnetearningsispaideitherincashtotheCityeachyearorinvestedinneededplantandequipmenttoprovideyouwithdependableelectricpowerandanabundantsupplyofpurewateratfairandcompetitiverates.

SOURCEOFINCOMECommercialandIndustrialPowerResidentialPower.........WaterSales............~.SalesforResale...........OtherIncome.............StreetLighting............DISPOSITIOMOFIMCOME$17,141,44543.9II14,587,60737.24,249,80010.8720,2171.81,898,6754.8571,2821.5$39,169,026POWERPRODUCTIOMIMKII.OWATTHOURSGeneratedL'ess:PlantLoad....DeliveredtoSystem..Purchased(Net).....TotalAvailabletoSystem.........USEOFPOWER19721,792,756,00076,425,1001,716,330,90048,388,00019711,664,536,00070,682,5001,593,853,50022,502,0001,764,718,9001,616,355,5004,471,05011.42,349,4556.0$39,169,026.COMDEMSEDEPOBTOFOPEBATIOMSOPERATiNGREVENUES:ElectricDepartment......WaterDepartment.......GROSSOPERATINGREVENUESOPERATINGEXPENSES:(IncludingDepreciation)ElectricDepartment......WaterDepartment.......TOTALOPERATINGEXPENSE...........TOTALOPERATING"'NCOME............OtherIncome............TOTALINCOME.......InterestandNon-OperatingCharges..............NetIncome............Less:DividendsPaidtoCity................CurrentYear'EarningsRetained......19721971$33,020,551$29,351,7234,249,8004,089,941$37,270,351$33,441,664$21,242,780$19,118,393,2,826,1562,794,74624,068,93621,913,13913,201,4151,898,67515,100,0904,616,68910,483,40111,528,5251,533,09413,061,6193,087,8909,973,7294,928,0004,379,00095,555,40195,594,729OperatingExpenses-Salaries,Wages,MaterialsandOtherExpenses................$10,467,42526.8'acktoSystem.............6,971,91317.8DividendsandFranchiseEquiv-alenttoCity..............6,196,60015.8Fuel.................8,712,58322.2DebtExpenses-PrincipallyInterestDebtServiceFunds.........ActiveDomesticUsers(Avg.foryr.).......ActiveCommercial8Indust.Users-(Avg.foryear).....TotalActiveServiceTotalMeteredServiceasof12-31-72'verageAnnualKWHUse/DomesticCustomer.........KWHSales-Domestic.........KWHSales-Commerclal8IndustrialKWHSales-MuniclpalUse.....KWHSales-Miscellaneous.....KWHSales-OtherUtilities.....KWHUsedinOperations........KWHTotal........USEOFWATER55,68553,6327,94265,1647,68262,75667,68865,73912,14111,684676,065,662626,627.692837,022,268722,926,37016,043,6773,159,56515,021,4262,739,41388,007,000136,413,000144.420,7281,764,718,900112,627,5991,616,355,500ActiveServices(Avg.foryr.)......'otalMeteredServicesasof12-31-72'...GallonsPumpedtoMains..........GallonsUsedlnOperations.....MeteredtoCustomers........AverageAnnualUseperCustomer.....'IncludesActIveendInectIve55,29458,20453,59656,57913,781,346,00012,457,393,00010,630,653,000199,00011,317,010,000205,0002,464,336,0001,826,740,000 1sssfI5)')vJ'r'C.sv~,,)~5a,1stg)As.t55f5>.'....e.;.'-..55Ig)~w5I)I,iIss)ssIC(5lyIk55Rss)'v,sstv%5,~

ATTACHNEiRTC-ll

ra~..~ps'~*/l~a.-a/;~'!<<IJe'IOalar<<Ctgl<<kI<<~5PtITLe(et~O.~I/aTl-LWCi,i<<ICT<<i.'~ICIXte~I~~I(ate/at<<*ItI/(/ger(t!c!I/~IILrcna~tatiQi)~(<<<<e-IW!(I'\Ivtcaaa(sIi'I'vaa~TvaWstetaaQIli~~IlI?Tt~rat'r~Ilael,~vatl~VtaJOeI.Cg~attVVIT(s,atav!4IIJ~I~<<st/(sacloca(<<ICCeltltrll(IIi~aa/Ccaela~Cleat~ls,"ry~QLL(~!I~t~tI~te!ojl~<art~eT(StOaeeIal~atasseataaNBZFlR!OABULBYCTAHSM~Z!tSYSS-Mll/acr fIee aa'tlID>>a~c2TfS>>TICaa4I~ŽIvvalfII+)1;I~<<afI'I'CIOTTHaanI-Iall~av'II-a'afSalasSanTaa>>IgaaaI~gIIfl-<~SIaa~~a<<Is>>asaIavass~~liP~~TIEISlfaaa-TqqI~~~IIvvaaaa~1-S4vvVCSafaf<<a~'<<O'Tl~I1iIII,TaIaaf.ia<<~ISaala<<slTTI~alaaasVA.'~V~a>>aaaaI!aaaanfI~fgZC"-giIII~E-TPJ'cafas~~aVTafIa'IsascswaTcasnsavsacxocaaff985~R!OABUIATIIANSIIISSIOTASSYS~EI4 I~IaIIN~rrtSe)II14II~IIr~II~I~ll11laI~~Idersvdap'~~L,aCSSStillI'svaIASTIFdtfYTXNIK4ftSIATlSJJK7VSAO5/SVaSi~~~~~I~~iaII~INI~I~I~~IIIIel>>tlt~I~I~~~I~II-~,~.Io~I~4~t~I~I~~~44'dttttSTVdal~IASAWSIll4toll~~'44I4'I'I~\14NIIII'ot4IOtoII~tlIS'AFT/%4k/4ltoI\IlI~oloc>>toe?5bKVLW4:P."'.'~o'~L~SLItl%5L."~~ltASCHNI>>Splod~5S>>ttte>>'IISLVTI>>>>5~llwTweeellSS'Ig>>IIISNaelOISI4ww2SOTVTraaIHIIwLwTAIN1t>>>>e>>wSar>>to~Ita~art~~~~~~I1~~~~I~~HNI~~.1FfdSIVINge~>>~>>~e~'o>>eoiaoiltoottsc~-tsltcttt.oltlS~I~IeeII~>>>>>>II~SttttttCarl~IeII~II~~~HaNIWII<<<<IIIa,+eea>>1<<alSSVSFl~<<II~IIii>>altarel~Icaaaoillo>>oc~00tlNTDVTlllTITSCOCICISSONTIWISIClSSIOIISISTERIaoalN1wota>>cacI~Iaaat~i>>uI'otaalaicto0>>a4lan>>Nu,ta>>aa54~1111Ita>>CTaalaoutfit>>1I11laIC~5CI/I~farttaoaxl>>0>>~~IIto III-110/14/76EJECT.ci.p~IwaMPh+i~~E/cc,$g~JowwgCop~fw47Ilg5~upg~c(peto/DAILYOPERATINGRESERVE1.DailyOperatingReserveisthatamountofgeneratingcapa-bilityand/orequivalentloadreliefinexcessoffore-casteddailypeakloadwhichisavailabletoprovideforloadvariationandforecasterror,frequencyregulation,,areaprotectionandcontingenciessuchaslossofgenera-tingcapability.Itconsistsofthefollowingcomponents:A.SinninReserve-Theterm"SpinningReserve"whenusedhereinmeansthereservegeneratingcapabilityconnectedtothebus,readytopickuploadimmediately,andcapableofbecomingfullyapplicablewithafrequencydeclineto59.5Hz.(ItisrecognizedthatthisdefinitionofSpinningReservediffersfromthatoftheI.E.E.E.)(1)SteamUnitDuetospecialoperatingconditionsinPeninsularFlorida,nomorethan16-2/3%,oftheContinuousCapabilityofasteamunitmsybecountedincomputingtEesystemSpinningReserve.(2)CombustionTurbineUnit(a)Aportion,generally30%,ofthebaseratingofcombustionturbinegenera-tingunitsmaybecountedasSpinningReserve,provided,1)theunitsareoperatingintheirautomaticcontrolmode,2)theunitsareequippedwithsolid-stateunderfrequencyrelaysintheirrampratecontrolcircuitstochangetheirresponseratetoemer-gency,3)testshavebeen,madetodemonstratethatsuchamountcountedwillrespondandbecomefullyapplicablewithafrequencydeclineto59.5Hz,and4)unitresponseisequalto,orfasterthan,thesameamountofsteamunitcapacityasdefinedabove.

III-210/14/76(b)Thecapacitybetweenbaseandpeak'oadofcombustionturbineunitsmaybecountedasSpinningReservepro-vided,1)theunitsareequippedwithsolid-stateunderfrequencyrelayswhichwillautomaticallychangetheoperatingmodefrom"base"to"peak"whenthefrequencydeclinesto59'.9Hz,and2)unitresponseisequaltoorfasterthanthesameamountofsteamcapacityasdefinedabove.Sincecontractuallyinterruptibleload,whenitisinterrupted,releasesgeneratingcapacitythatisinstantlyavailable,aparticipantmayplacesuchloadonunderfreguencyrelaycontrolandcounttheamountofthisloadsoplacedasSpinningReserveupto75%ofhisallocation.Solid-staterelayswillbeemployedforthisapplicationinordertominimizetimedelay.Theywillbesettodisconnecttheinterrupt-ibleloadat59.7Hz.Useofthisprovisionbyaparticipantinnowaychangeshisresponsi-bilitytoprovidehisshareofSpinningReserveinanemergency.InterruptibleloadswhichareutilizedaspartoftheOperatingReservecannotbecountedaspartoftheloadsheddingobliga-tion.B.SuplementalReserve-ThetermSupplementalReservewhenusedhereinmeansanygeneratingcapabilityand/orloadreliefmeasurewhichcanbemadefullyapplicablewithin30minutesorless.Itincludes,butisnotlimitedtodieselunits,combustionturbines,interruptibleloads,loadreliefmeasures,andanyincreaseingen-erationthatmaybeobtainedfromageneratingunit.2.InnormaloperationtheDailyOperatingReserveshouldbemaintainedbythecombinedsystemsatavalueequalto,orgreaterthan,thesumofthePeakCapabilityratingsofthetwolargestgeneratingunitsinservice.SpinningReserveshouldbemaintainedegua'1to,orgreaterthan,thePeakCapabilityratingofthelargestgeneratingunitinservicetoallowthecombinedsystemstorecoverinanorderlymannerfromtheinstantaneouslossofsuchlargestunit.ThebalanceoftheDaily III-310/14/76OperatingReservewillbeSupplementalReserve.Follow-ingthelossofageneratingunit,SupplementalReserveshouldbeconvertedtoSpinningReserve,ifrequiredtorestoretherecommendedlevelofSpinningReserve.TheDailyOperatingReserveandtheSpinningReserverequirements,(theminimumvaluesspecifiedinPara-graph2),shouldbeallocatedamongtheparticipantsinproportiontoeachparticipant'smaximumdemandfortheprecedingyearandthePeakCapabilityofhislargestunit.Fiftypercentshouldbeallocatedonthebasisofdemandand50%onthebasisofthePeakCapabilityofthelargestunit.(SeecurrentcalculationonPage5inthissection.)TheDailyOperatingReserverequirementandanequitableallocationamongtheparticipantswillbeacontinuinginterestoftheFCGOperatingCommittee.Anewalloca-tionwillbecalculatedandusedwhenaparticipant'ssinglelargestunitisoffline.Theeffectonaparticipant'sabilitytomaintainhisSpinningReserveallocationshouldbefullyconsideredbeforeagreeingtosellpowert'oanotherparticipant.Protectionofanewunitduringshakedownwill'etheresponsibilityoftheowner.Eachparticipant'sDailyOperatingReserveallocationshouldbeavailabletotheotherparticipantsandnotberestrictedbytransformer,lineorotherlimitations.Eachparticipan't'sSpinningReserveallocationmustbedistributedonenoughgeneratingunitswithpropergovernorcharacteristics,sothatitwillnottakeafrequencydropinexcessof0.5Hztorealizethefullbenefitsofeachparticipant'sSpinningReserve.Assum-ing5%governors,thismeansthattheSpinningReserveassignedtoanyoneunitshouldbenomorethan16-2/3%oftheContinuousCapabilityofthatunit.Reliableoperationofthecombinedsystemsrequiresthateachparticipant'sdispatcherknowatalltimestheCon-tinuousCapabilityratingofhisgeneratingunits.Par-ticularlyduringperiodswhenforecastsindicatecloseoperatingreserves,theContinuousCapabilityratingofallquestionableunitsshouldbeverifiedbyhavingtheseunitsdemonstratethiscapabilitybeforethetimeoftheexpectedpeakfortheday.

III-410/14/76ItshouldberecognizedthatadeficiencyinSpinningReserveonthe"combinedsystemssubjectsallpartici-pants'ustomerstoariskofinterruptionduetounder-frequencyrelayoperation.'IInabnormalsituationswheretheDailyOperatingReserveand/orSpinningReserveofaparticipantislessthanhisallocation,suchparticipantwillnotifytheothers,~givingfulldetailsofhisoperatingcondition,sothattheymaydeterminewhatassistancetheycanmakeavail-abletobeutilized.Thedeficientparticipantshouldtakesuchmeasuresthatareavailabletohimtosafeguardthereliabilityofthecombinedsystems.Thiswouldinclude:1)purchasefromothersystems,2)interrup-tingsomeofhisownload,or3)installationofunder-frequencyrelayssettotripat59.7Hz,anamountofloadequaltotheparticipant'sshortageinhisSpinningReserveallocation.Measure3),knownasStepZero(Step0),istobeusedonlyinextremeemergencieswherenootheralternativeisavailableandsolid-staterelayswillbeemployedtominimizetimedelay.(IfStep0isused,theloadsoassignedshouldnotresultinareduc-tioninasystem'spropershareoftheautomaticloadsheddingobligationdescribedinSectionXI,Paragraph1.)DeficienciesinSupplementalReserveshouldbecoveredbypurchaseiffeasible.IAdministrationoftheDailyOperatingReserveandSpinningReserveformulaistheresponsibilityoftheFloridaPowerCorporation.Tocarryout-thisresponsibilitycertaininformationisnecessaryfromeachofthepar-ticipatingsystems.Thisinformationis:A.ByJanuary.15ththepreviousyear'speakload,andthePeakCapabilityofthelargestunit.B.Immediatenotificationofachangeinratedcapabilityofasystem'slargestunit.C.Notificationwhenasystem'slargestunitisoutofservice.TheDailyOperatingandSpinningReservewillbecalcul-atedatleastyearlyandre-calculatedasnecessitatedbyinformationreceivedfromaparticipatingsystem.Nhenre-calculationisnecessary,thenewvalueswillbeplacedontheteletypeforthedispatchers'mmediateuseandacopyofthecalculationwillbemailedtoeachofthesystems.(Seefollowingpageforcurrentcalcul-ationwithlargestunitineachsysteminservice.)

III-510/14/76DAILYOPERATINGANDSVINIl')GPcS":HVEALLQCATIOWSBOTHTURKEYPOINTNUCLEARUNITSONLINEEFFEC1IVEASUF>5-3-76PFAKLDADGHQSSCAPABILITYOFLARGESTUWITGHOSSMnPERCENTBASFDONPFAKLOADPEI<CE<<TBAbcD0lLARGESTU~rr.FLORIDAPQI'<EH8,LIGH1CQ'(PANYFLORIDAPOi'<ERCQi<POHAIIONTA>GAPAELECTRICCi3HPALIYJAC<SONYILLF.ELFCTHI(:AUTIIORITYORL4WDOUTILITIESCl'J'~'>ISSIQNCITYJF1ALLAi".ASSF.F.CITYQFLAKELAruDCllYOFGAINESVILLECIEYOFF(JRTPIFRCFITYOFLAKEiiQRfIIITYgFVERQBEACHTOTALI7400.03370.01660.01136.0413.0223.0.218.0155.059.054'56.04744.0722.0527.0350.0275.0327.07w00115.085.038.035.0.33.02582~050.19o22.86%II26o7.70".~o2.HO':I.&I<1.48~o1.05~0.40~o0.37.o0.38~100.00~27M6'o'Q.41o13.56%10.65".o12.6o%03'.~o4~45~o3.2M'.41'.3641.2d'o100.QV~oRESEHVEUt'ERAIIt)GSPINitIWGSUPPLE)ArE<fALALLO(.'AlI(I.'<HL:SERVEHESEHVERESERVEPEHCF.Iu1AGE!.(ivMn)'n.FLORIDAPQIvER6LIGIIiCOMPANYFLQRIDAPOI'JEHCOHPQHATIONI'A.'APAELECTRICCU'(PAL>YJACKSQNVILLF.ELECTRIC<UTHOIrITYU:PLAWDOUTILITIFSCO>ir..ISSIONCIfYQFTALLAHASSEF.CITYiJFLAKF.LAND.CITYUFGAINESVILLE,CII'YOFFi3R1'IFHCECITYOFLAKEnORTHCII'YQFVEROBEACHTOTALI3V.OR21o6312.4IV.IR7.732.212.972.1/0'40.860.8300.00564312179133112324331141212I444282156VO6656162116766722282~Ii69066i6162116766722DATECALCULATED:5-2-76 MAINTENANCESCHEDULESMaintenanceschedulesarecoordinatedbytheFCGOperatingCommitteeatleastannuallybutgenerallytwiceayear.Seefollowingpageforcurrentschedule.

Ai'i198uFCG()PERATII<GC()./iMITTEEIAII>TIiA!:CESCI<EL)ULEM()NTH-APRIL,1980I'AGEIUTLFPCFPCFPCFPCFPLFPLFPLFPL~PLFPLFPLFPLUWITAiiCIAltC2CRICR3CCIFl'2GIPlSLISi~5TPITP"eIIgew7~IWg/ll~if~iMJ:.'.7000000000111111111122222222223W!'II234567890I234567890I2-345678905165113737023673703132067o'"-6669635r,l22J-ALANl..iC2()UCIR2,()UCIR3SUCDLI26220014620832112TECTi=CTECBBGIGA1<5HP265229'29>000000000111111111122222222223123456789012345576901234567890:()TALtII'IOUT4444444444444544455444444444433333744444680999006666665655555555644446u016622222222257666999999888803976635544444447333

AI)R7,ICSDFCG()PERATIhG)C()'.l'ITTEE!(AINTEI'IANCESCHEBULE>'i()NTH-t.<AY,"1980PAC=2UTLUNITFPCANC2FPCBAR3FPCCB3FPCTUB4FPLGr"FPLPEIFPLSLIFP1TPIFPLTP4GVLJK7GLJGTJEAt!SIJEANS2J:-'.5000000000I'IIIIIIIII222222222233Vil'II23.4,567890I234567890I234567890I5112158277231320479537069626roneCVv146iaaf~n'L'V4TF.CT=C1IC4M2BB3lfD2inndV~DC362229'29000000000111I111111222222222233123456789012345678901234567890T()TAL]".'<()UT44433333333322232222221222222233008888880119'8824444449222222255332222222110110888888177777775500222222777222844444479999999

-ATTACHMENTC-15IherebycertifythattheattacheddocumentsareatrueandaccuratestatementoftheelectricalgeneratingcapacityoftheOrlandoUtilitiesCoranission.NameManager,ElectricOperationsTitlePMay30,1980DateStateofCountyof,beingdulysworn,saysthattothebestofhisknowledgeeverystatementorthingcontainedhereinistrue.Subscribedandsworntobeforemet'ai'"""~i~dayof,1980.qgCKCKg<~f,4~gr.ril.MycorrinissionexpiresNoaryblicStateofFloridaat'Large 0'1jl2I,'l UTILITYOrlandoUtilitiesCommissionFCGFormlAPlantLakeHighland(2)UnitNo.(3)LocationOrlando,FLSection24,T22s,R29EOrangeCountyEXISTINGGENERATINGFACILITIES(4)(5)(6)(7)(8)Com'1In-ExptdFuelServiceRetrmnt~Te~PriAtYo/Yrllo/Yr(9)(10)(11)(12)(13)(14)GenMaxNetCaabilit*AltFuelNpitStl~F1i0lKMMMMMPriAltUse142,250117126FHONG9/4912/8228,7503031TKPLNAFHONG9/5412/8237,5003031TKPLNAFHONG6/5612/8237,5003031'TKPLNAGT-AGT-BDieselCTLONG12/5812/8218I75013CTLONG12/5812/8218,75013DLO--197012/821,000116TKPLNA16TKPLNA1TK-NA*ShortTermRatings

UTILITYOrlandoUtilitieCoiFCGForm1APlant(2)UnitNo.(3)LocationEXISTINGGENERATINGFACILITIES(4)(5)(6)(7)(8)(9')(10)(11)(12)(13)(14)Com'1In-ExptdGenMaxNetCaabilit*AltFuelF1SiRttNpitSIl~FiiD:.TYYePriAltYo/Yrllo/YrKWYilillWPriAltUseIndianRiver5milessouthofTitusville,FL,onU.S.Highway1Section12,T23S,R35EBrevardCounty638,800610619FHONG2/6012/9186,7008890gAPLNAFHONG12/6412/94207,600204208gAPLNAFHONG2/7412/2004344P500318321gAPLNA*ShortTermRatings UTILITYOrlandoUtilitiesCommissionFCGForm1APlant(2)UnitNo.(3)locationEXISTINGGENERATINGFACILITIES(4)(5)(6)(7)(8)(9')(10)(11)(12)(13)(14)Com'1In-ExptdGenMaxNetCaabilit'.Alt.FuelF1SiRttNpitifl~F1TOy~Te~PriAtYio/YrIlo/YrKMNWMMPriAltUse**CrystalRiver3Section33,T17S,R16E,CitrusCountyNN-3/77Unknown860,3821313TOTALSYSTEMASOFDECEMBER31,1979740758*:ShortTermRatings**OUChasanundividedownershipinterestof1.6015%(13.2MW)asatenantincommoninFloridaPowerCorporation'sCrystalRiverN3,825MWnuclearunit.

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