1987-11-09 Regular Meeting - Laserfiche WebLink

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e e ~- understand that the allocation factors specified in Section 2.01 hereof are based upon representations made by the City (and the other Partici- pants) as to the requisite Demand Allocation Factor and the Pumping Allocation Factor needed for participation in the Southeast Plant. The City also understands that the Authority is the equitable owner of the Demand Allocation Factor and the Pumping Allocation Factor of the South- east Plant (as specified in Section 2.01) of the Southeast Plant and is a customer of the Southeas't Plant. Neither the Authority, the City, or the other Participants are entitled to an expansion of the Authority's share in the Southeast Plant, or an expansion of the City's share of the Authority's Demand Allocation Factor and the Pumping Allocation Factor in the Southeast Plant. The Authority covenants with the City that if the City desires to obtain an expansion of its share of the Demand Allocation Factor or Pumping Allocation Factor (or both), that upon written request to the Authority by the City of such an expansion, the Authority will proceed to request that Houston expand the Authority's Pumping Allocation Factor or Demand Allocation Factor in the Southeast Plant. The Author- ity makes no warranties or covenants other than that it will use its best efforts to obtain the requested expansion, and does not guarantee an expansion in the City's share of the Demand Allocation Factor or Pumping Allocation Factor if, as, or when needed. The City understands that in the event it requests an increase in its share of the Demand Allocation Factor or Pumping Allocation Factor (or both), that it will be liable to pay for its increased capac i ty in the plant, together wi th any and all necessary improvements in the Transmission System or the Distribution System. -35-