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HomeMy WebLinkAboutR-2001-14 . . . . . A RESOLUTION APPROVING AND AUTHORIZING EXECUTION OF A "SUPPLY AGREEMENT" WITH A RETAIL ELECTRIC PROVIDER, APPROVING INITIAL PROPOSAL PRICING, AND APPOINTING AUTHORIZED REPRESENTATIVE(S) WHEREAS, H-GAC Energy Purchasing Corporation (the "Corporation") is a non-profit political subdivision corporation, as defined in Chapter 303 of the Texas Local Government Code (to be codified effective September I, 2001 as Chapter 304); and WHEREAS, the Corporation is authorized to negotiate on behalf of its members for the purchase of electricity, make contracts for the purchase of electricity, purchase electricity, and take any other action necessary to purchase electricity for use in the public facilities of the political subdivisions represented by it; and WHEREAS, c.:r+~ La.- Pmie- (the "Political Subdivision") has dopted a resolution authorIz1Og partICIpatIOn 10 the Corporation; and WHEREAS, the Corporation has negotiated and contracted with various Retail Electric Providers (each a "REP") and has entered into a contract with the REP referenced in the attached Supply Agreement; and WHEREAS, the Member, as a Buyer, has selected the REP referenced in the attached Supply Agreement; and WHEREAS, the Corporation has received and distributed to its members the initial proposal pricing ("Initial Pricing") of the REP and the Political Subdivision has reviewed the Initial Pricing, which is incorporated herein by reference; and WHEREAS, the Political Subdivision acknowledges that the Initial Pricing is not binding on the REP but will be updated during a subsequent time period to be announced by the Corporation, at which time final closing pricing (the "Final Pricing") will be announced; and WHEREAS, the Political Subdivision has reviewed a Supply Agreement with the selected REP (the "Supply Agreement"), a copy of which is presented with this Resolution and is incorporated herein by reference, and wishes to enter into such agreement provided that the Final Pricing does not exceed the Initial Proposal Pricing; NOW, THEREFORE, BE IT RESOLVED: 1. The Supply Agreement with the Initial Proposal Pricing made a part thereof is hereby approved and adopted. I Resolution II of 2 . . . e e 2. The following officers, officials or employees of the Political Subdivision are hereby designated as "Authorized Representatives," with full power and authority to execute the Supply Agreement, so long as the Final Pricing is less than or equal to the Initial Proposal Pricing, exclusive of any regulated rates su~ject to change, which the Political Subdivision has elected, and take all other actions deemed necessary or appropriate to consummate the transaction authorized by this Resolution. Signature: ex ot.J T. fl~ Printed Name: R (') Bff3 -r I-I-€rr e. (C1 Title: C-+i /l1a (l~( Tele: aq I Lff) ".. ~ a... () Fax: a.. <t I - 4 f) /- 1<( ~ li- E-mail: ur i t.h5 e CI. lfi- IOffe N. v<5 Signature: A- tU:J 0- .~ Printed Name: 5USf)f'\ Ke.ll~i Title: BUC.ha .<,;~ Mil oay C Tele: ~ ~I . ~'l/- )D",o Fax: ~~~(- ()~'l f E-mail: .5 e ( _ e. . -f )( . u5 PASSED AND APPROVED thiJJIV'1J day of ()&/O/JEe , 2001. ATTESTS: By: ~~? BY:~ a.)4dM . ~D( m 0. n 1.-. .ma L O()e i fY}ay~( . (1,f.#(a a ~j IIdf I (i~~ ettdJl . ' ,~PtJ11ted Name and TItle Pnnted Name and Title '" , ,'::~~> .. (SEAL) - , "",,,-- ~ ,- ~ '", ~ ~~/ ~ ~ :~ ;:' .... ..~...."' J".. . ;; 1. .. . ..~.~. .\\ . ~ i _ : " . - .. iI'..... 2 Resolution II of 2 . e REQUEST FOR CITY COUNCIL AGENDA ITEM A.genda Date Requested: October 22. 2001 Appropriation Requested By: Rnhert T Herrera Source of Funds: Department: A.dmiAistrlltiog Account Number: Report: Resolution: X Ordinance: Amount Budgeted: Exhibits: Resolution II and Supply Agreement Amount Requested' Exhibits: Budgeted Item: YES NO Exhibits: SUMMARY & RECOMMENDATION puring the May 8, 2001, City Council meeting, Council passed Resolution I for City of La ~orte to participate with H-GAC which would become a Political Subdivision Corporation named H-GAC Energy Purchasing Corporation. This resolution was the first step to joining H-GAC as an aggregate to purchase electricity. H-GAC Energy Purchasing Corporation sent out Requests for Proposals to various Retail Energy Providers (REP) to obtain pricing for the purchase of electricity. The "Initial Proposed Pricing" indicates the "Final Pricing" should fall between $0.05 and $0.059 per kWh. As a reference, current pricing is b.etween $0.08 and $0.09 per kWh, which should be a savings of approximately 25%. If we' compared this price savings to what we paid last year, the City would have paid $213,375 less. This all-inclusive price includes: > Energy > Fuel > Transmission and Distribution > All other regulated rates > H-GAC Aggregation Fee - $0.00045 per kWh Below is the schedule H-GAC has submitted to all Member Buyers (participating entities): November 7 5:00 pm Deadline for Member Buyers to return Resolution II November 8 Noon Release list of committed Member Buyers to Retail Energy Providers (REP) November 12 Noon Deadline for REP to submit revised pricing November 13 1 :00 pm Final Pricing released to committed Member Buyers November 14 5:00 pm Deadline for Member Buyers to select pricing, options and sign Supply Agreements January 1,2002 Begin electricity supply The second and final step to make a firm commitment to H-GAC Energy Purchasing Corporation is to pass Resolution II. This resolution states the City of La Porte may withdraw our commitment to participate if the "Final Pricing" exceeds the "Initial Proposed Pricing". " Staff has reviewed Resolution II and the Supply Agreement. Staff recommends Council pass Resolution II committing the City of La Porte to participate with H-GAC Energy Purchasing Corporation. Action Required bv Council: Pass Resolution II as a firm commitment to participate with H-GAC Energy Purchasing Corporation. Approved for City Council A!!"enda CR~ 'T'- \-\--ltJ~ Robert T. Herrera, City Manager \o.\~.()\ Date . · ATXU ....II' TXU Energy Services 1601 Bryan Street Dallas. TX 75201-3411 February 19, 2002 RECEIVED JdtJEB 2 5 2002 CITY MANAGER'S OFFICE City of La Porte 604 West Fairmont Parkway La Porte, TX 77571 Attention: Robert T. Herrera Subject: Execution of Electricity Supply Contract, Contract Number 1-8CGC7 Dear Mr. Herrera; TXU Energy Retail Company LP (TXU-ER) would like to thank you for the opportunity to establish a long-term business relationship between our companies. TXU-:ER hereby returns a fully executed original Contract (Offer Sheet, Price Sheet, Terms and Conditions, and Exhibit A) for your records. If you should have any further questions regarding the Contract, please contact the undersigned name for immediate attention. For any other questions regarding your account, please contaot your Sales Account Manager, Alex Underwood at 214-812- 7236. Thank you for choosing TXU Energy Retail Co., as your Retail Electric Provider to meet your electric energy needs. Sincerely, ~-t~ Ov S ~'\Jc..\ C:> r'1. \'V\'"'^"'~c- ~~,~.~ r "t~' () '1..., Name: Gary Krystek Title: Contracts Administration Mana; Phone: 214 812 8528 E-mail:gkrystel.@txu.com 1,0 I'} :f-; ) D I Enclosures Cc: (SALES AM) e e TRANSACTION CONFIRMATION FOR THE SUPPLY OF ELECTRICITY Transaction Confirmation #: 1-8CGC7 25% per month for excess usage and 25 % per month for under usage (see section IV, Calculation and Payment of Charges in the Base Contract for Supply of Electricity) XI. TERMS AND CONDITIONS THE TERMS AND CONDITIONS FOR THE SUPPLY OF ELECTRICITY ("TERMS") SEP ARA TEL Y. EXECUTED BY BUYER AND SELLER, ARE PART OF THE AGREEMENT TO WHICH THIS OFFER FOR THE SUPPLY OF ELECTRICITY APP.LIES. BUYER ACKNOWLEDGES THAT IT HAS RECEIVED THE TERMS, AND IN THE EVENT THAT BUYER HAS NOT PREVIOUSLY EXECUTED THE TERMS, BY SIGNING THIS OFFER BUYER AGREES TO BE BOUND BY THE TERMS AS PROVIDED BY SELLER. Seller Si~ ure: BUYER: City of La Porte 604 W Fairmont Pkwy La Porte, TX 77571 Phone: 281-471-5020 Fax: 281-741-1884 I. AGREEMENT TERM II. PAYMENTTERMS III. DEPOSIT AMOUNT IV. BILL PRESENTMENT METHOD V. PAYMENT METHOD VI. STANDARD SERVICES VII. CUSTOM SERVICES VIII. SPECIAL PROVISIONS IX. COST PER KWH X MONTHLYCONTRACT USAGE TOLERANCES Position. ~~ ~ 2.,00 I Date: ' Form NameNersion: OFFER SHEET 110701 SELLER: TXU Energy Services Company 1601 Bryan, 7th Floor Dallas, Texas 75201 Phone: 214-875-1000 Fax: 214-875-1001 ' The Primary Tenn for each Premise, identified in Exhibit A, shall commence upon the date of the first reading of the meter(s) on each respective Premise by the TDSP after 1/112002, or as soon thereafter as practicable, and shall end for each Premise upon the date of the first reading of the respective Premise meter(s) by the TDSP after 12/3112003. Net 30 Days No initial deposit required. CI Paper Check Toll free number (800) 725-7920) for 24 hour emergency outage and customer service, available 7:00 a.m. to 7:00 p.m. on nonnal business days; Assigned customer service representative, billing analyst, and assigned professional account manager. Not Applicable Not Applicable See attached Price Sheet Name d/.:j, I Position: Date: /;-- os " /-cJ/ Page I e e eTXU Price Sheet - Flat Price TXU Energy Services ContractJPlan #: Account Name: Plan Type: 1-8CGC7 City of La Porte Flat This Price Sheet is only valid in association with and shall remain subject to the Tenns and Conditions for Supply of Electricity ("Tenns") and Offer for Supply of Electricity referenced above and is contingent upon Customer's acceptance of the Offer prior to the Offer Expiration Date. This Price Sheet is applicable to the Customer ESI number(s) identified on Exhibit A ofthe Tenns. Monthly Prices shall equal the sum of (i) the Monthly Standing Charge set forth below; plus (ii) the applicable per kWh charges set forth below for the electricity; plus (iii) all costs and expenses of any nature, whatsoever that are charge4 by the Transmission and Distribution Service Provider ("TDSP") for the transmission and/or distribution of the electricity, as well as any other charges of the TDSP that are attributable to the Customer Account numbers, including, without limitation, charges for reactive power; plus (iv) all other tariffs, rates, riders, fees, and charges, charged by the TDSP or another party,.that are mandated, levied, assessed, allowed, or approved by the Texas Public Utility Commission and all other governmental or regulatory authorities, on or with respect to the acquisition, sale, delivery, and purchase ofthe electricity; plus (v) all federal, state, and local taxes, of any nature whatsoever, imposed by all governmental and regulatory authorities, on or with, respect to the acquisition, sale, delivery, and purchase of the electricity, including Seller's Texas Gross Receipts Tax on the sale of electricity to Buyer; plus (vi) the Over Capacity Charge set forth below, if applicable; plus (vii) an aggregation fee of$0.00045 per kWh actually consumed by Buyer collected by Seller on behalf of and paid to HGAC Energy Purchasing Corporation. Charge Amount ' Monthly Standing Charge per $0.00 ' service point All kWh $0.04397 per kWh $0.0233484 per kWh for delivery, excluding reactive TDSP Delivery Charges power, based upon current estimate;* Monthly price will be based upon actual charges. Tariffs, rates, riders, fees, and charges other than those included To be determined, varies by service point in TDSP delivery charges above All applicable taxes To be determined, varies by jurisdiction Over Capacity Charge $0.00 per kW The costs and expenses charged by the TDSP for delivery services may fluctuate during the Agreemeiu Tenn, as will other applicable taxes, tariffs, riders, fees, and charges. * For reference purposes only. This is the current estimate of the average TDSP standard delivery costs, excluding charges for reactive power, special metering, or other miscellaneous TDSP charges. Fonn NameIVersion: PRICE SHEET FLAT PRICE 11070 I Page I ;1 e e ATTACHMENT A eTXU TXU Energy Service. TERMS AND CONDITIONS FOR SUPPLY OF ELECTRICITY These Terms and Conditions for the Supply of Electricity ("Terms"), together with any Offer for Supply of Electricity ("Offer") and any other attachments, exhibits or appendices (including, as appropriate, one or more Price Sheets) as may be hereafter agreed to by Buyer (the term Buyer includes its employees andlor agents as appropriate), and Seller (the term Seller includes its assignees andlor as appropriate its employees, agents andlor subcontractors), shall constitute the "Agreement" for the supply of electricity to the Premise(s) of Buyer set forth in Exhibit "A" attached hereto. Seller and Buyer may hereinafter be referred to individually as a "Party" and collectively as the "Parties". "Premise(s)" herein shall mean the designated (in Exhibit "Aj property or facilities and associated metered account(s) identified by an Electric Service Identifier ("ESI"), which is a unique and permanent identifier assigned to each Premise(s). A "Price Sheet(s)" is a document(s) containing a description of the method for determining charges payable by Buyer to Seller for electricity supplied pursuant to this Agreement, for specified Premises and shall contain the Offer Price. A condition preceaent for the effectiveness of the Agreement shall be the execution of a separate Offer, and agreement by the Parties on the terms contained in Exhibit "A" and the appropriate Price Sheet(s). I. SUBJECT MATTER AND QUANTITY. Seller shall sell and cause delivery, and Buyer shall purchase and receive at the Point of Delivery, for use only at the Premise(s), Buyer's non-residential electricity requirements set forth on Exhibit "A" attached hereto. "TDSP" herein shall mean a transmission andlor distribution provider under the jurisdiction of the Public Utility Commission of Texas ("PUCT") that owns and maintains a transmission or distribution system for the delivery of energy; including a Municipally owned utility or Rural Electric Cooperative. "Point of Delivery" herein shall mean the point where TDSP's conductors are connected to Buyer's conductors at or near Buyer's Premises. II. [This Section has been deleted intentionally.] III. TERM. The "Agreement Term" shall be the time period, as referred to in the Offer, during which the prices contained in the Price Sl'Ieets are and shall remain in force. IV. AGREEMENT RENEWAUPRICE RENEGOTIATION. If Buyer and Seller have not agreed to new pricing and terms prior to thirty calendar days before the expiration of the then current Offer, and Buyer has not arranged for electricity from another supplier prior to the expiration of such Offer, then, effective upon expiration of the Offer and until Buyer arranges for electricity with another supplier or under a new Offer with Seller, Seller agrees to sell and deliver and Buyer agrees to purchase and receive electricity under terms and prices of Seller's then current Standard List Price Offer applicable to businesses of same or similar nature as Buyer. "Standard List Price Offer" herein shall mean the Seller's price charged to customer's purchasing electricity without a valid Offer for the Supply of Electricity. The Standard List Price Offer may change from time to time at the discretion of Seller. V. CALCULATION AND PAYMENT OF CHARGES. 5.1 Seller will invoice Buyer for electricity delivered to the Premise(s) during each monthly billing cycle of the Agreement Term, and for any other amounts due from Buyer to Seller hereunder, in accordance with the applicable Price Sheet, provided, however, in the event Buyer is a water district, a municipal utility district, a public utility district, a water control improvement district. all other types of special districts. or has at the lime this Agreement is entered into, twenty five percent (25.0%) or more of its total electric load is attributable to water pumping load, and (a) takes total quantities of electricity (attributable to all Premise(s) hereunder) in any month that are in excess of one hundred twenty-five percent (125.0%) of the aggregated quantities listed in Exhibit "A", then Seller shall have the option to price such excess quantities at 105.0% of the then current retail market value or (b) takes quantities of electricity in a month that are less than seventy five percent (75.0%) of the aggregated quantities listed in Exhibit "Aa (provided such is not the result of a force majeure event) then, in addition to paying for those quantities actually taken in accordance with the applicable Price Sheet, Buyer agrees to pay Seller the positive amount, if any, calculated as follows: (75.0% of the aggregated quantities on Exhibit "A" for the applicable month minus the aggregated quantities actually used by Buyer during the month, the "Shortfall Quantity") multiplied by (the contracted price from the applicable Price Sheet minus 95.0% of the then current retail market price for the Shortfall Quantity). "Retail Market Price" for purposes of this paragraph 5.1 only shall be: the weighted average of the ERCOT market clearing price for energy for each congestion zone in the applicable month; -plus (a) all charges associated with (i) Ancillary Services, (ii) Line Losses, (iii) Unaccounted for Energy, and (iv) ERCOT administration fees; and (b) any new charges established by the Independent System Operator that load serving Qualified'Scheduling Entities are required to pay. e e 5.2 If Buyer has more than one Premise, the monthly billing cycle may vary for different Premises, and may not coincide with a calendar month. In the event that an interval demand recorder ("lORn) must be installed at any Premise, if such lOR has not been installed prior to the commencement of the Agreement Term, Seller reserves the right to calculate prices bas'ed upon the appropriate deemed load profile, as obtained by Seller from the PUCT, until such lOR can be installed. 5.3 Buyer shall pay the invoiced amount on or before the due date specified in the Offer, and/or notify SeHer within ten business days of the invoice date if Buyer disputes any part of the invoice together with Buyer's reasons for disputing the invoice (however, Buyer's payment of an invoice and/or failure to dispute an invoice by the due date, in and of itself, shall not constitute a waiver by S-uyer of Buyer's right to contest later the correctness of such invoice), bunhe undisputed part shall remain due and payable. In the event that Buyer gives notice of such dispute, thaParties shall, for a period of .thirty calendar days following Seller's receipt of that notice, pursue diligent, good faith efforts to resolve the dispute. If the Parties are unable to resolve a disputed invoice during that thirty day period, Seller may require, in the event it is subsequently determined that Buyer should pay Seller all or part of the disputed amount, that Buyer pay interest on such amount, at a r.!lte equal to (i) one percent (1%) per month or (ii) the highest rate allowed by law, whichever is the lesser, from the date such payment was originally due until the same is paid. Following resolution of the dispute, any amount found payable (including interest) shall be paid within thirty calendar days. If Buyer fails to pay any amount due (including any disputed amount withheld which is subsequently found to have been payable), Seller may, at its option, pursue any or all of the following actions or remedies: (a) accrue interest on the unpaid portion at a rate equal to that described earlier in this paragraph, from the date such payment is due until the same is paid, or (b) transfer Buyer to the provider of last resort ("POLRn). POLR shall be defined as a retail electric provider that has been designated by the PUCT to provide a basic, standard retail service package to requesting or defaulting customers. 5.4 If Buyer notifies Seller in, writing of a justifiable concem regarding the accuracy of an invoice hereunder, Seller shall make available to Buyer during normal b~siness hours the records in Seller's possession reasonably necessary for Buyer to verify the accuracy of its bill. Provided, however, neither Party may request any adjustment or correction of any statement or payment -unless written notice of such request for adjustment or correction is fumished Within twenty-four (24) months of the date of the statement or payment for which such adjustment or correction is requested. 5.5 If this Agreement is terminated for any reason (including where Buyer terminates in accordance with Section VII) and Buyer does not arrange for a new electricity supply agreement with Seller or another supplier, Seller, until Buyer arranges for a new electric supply agreement with Seller or another supplier, may (in addition to other remedies) charge Buyer for any electricity used at the Premise(s) after the effective date s>f the termination, and subject to these Terms, at Seller's then current Standard List Price Offer applicable to businesses of same or similar nature as Buyer. This sub-clause shall survive termination of this Agreement. . 5.6 Payments may be made by check, wire transfer, direct debit or electronic data interchange (on terms reasonably acceptable to both Parties), and notwithstanding anything to the contrary contained herein, must be received by the receiving Party on or before the dates specified in Article II of the Offer. The address to which payments are to be made shall be as set forth in the Offer. For Buyer to pay Seller other than by check, Buyer needs to obtain required information I agreements with Seller. If Buyer fails to pay the invoiced amount to Seller by the Due Date, and such amount is not disputed as provided in Section 5.3 the undisputed invoiced amount will accrue interest at the rate of 12% per year, and, in addition, Seller may pursue, but is not required to pursue, available legal remedies for collection of the unpaid invoice and late-payment interest charges, including termination of the Agreement in accordance with the procedures set forth in Article VII. 5.7 In the event Buyer ever takes electricity exceeding the Maximum kW for each Premise(s}, each time it does so Buyer shall pay the Over Capacity Charges as stated in the applicable Price Sheet. "Maximum kWn for each Premise is set forth on Exhibit "An, and shall be r~orded at the TDSP Point of Delivery. ' 5.8 Buyer agrees that it shall abide and be bound by the Agreement through the end of the Agreement Term and shall not, during the Agreement Term, claim any right to pricing based upon the Price to Beat. "Price to Beat" shall mean a price for electricity, as determined pursuant to the Public Utility Regulatory Act, Section 39.202, charged by an affiliated retail electric provider to eligible customers. VI. METERING EQUIPMENT. . 6.1 The supply of electricity to Buyer at the TDSP Delivery Point(s) shall be measured by Metering Equipment. "Metering Equipmentn herein shall mean any and all equipment required for the measurement of demand, energy, reactive demand or reactive energy and the times during which said demand or energy is consumed. Unless the accuracy of the Metering Equipment is disputed by notice given by either Party to the other the Metering Equipment shall be deemed to be accurate. If notice is given (unless otherwise agreed) the Mete,ring Equipment shall be examined within a reasonable period, by the TDSP in accordance with the applicable Substantive Rules of the PUCT. If such test finds that the inaccuracy of the registration of kWh or kW at normal loads exceeds that allowed by ANSI standard C.12, suitable adjustment shall be made in the accounts rendered by Seller, and, within a reasonable period following that determination, the Metering Equipment shall be re-calibrated or replaced by the entity that installs, validates, registers, and maintains the physical meter required on a Premise to measure customer usage. If such test finds the Metering Equipment to be accurate within the said limits, the Metering Equipment shall be deemed to be accurate and the cost of moving, testing, and replacing the Metering Equipment shall be paid by the Party e e who issued the notice. If it is discovered that any reading of the Metering Equipment or translation of the readings into charges have been incorrect then the amount of money due to and from Seller shall be paid forthwith. 6.2 If appropriate meter reading personnel cannot gain access to read the Metering Equipment, or the Metering Equipment fails to register correctly the amount of electricity supplied, or the readings are not communicated to Seller in time for whatever reason, Seller shall reasonably estimate the quantity of the electricity consumed and Buyer shall pay the charges for the estimate_d amounts subject to any adjustments which may be necessary following the reading. Buyer shall notify Seller of any dispute or query regarding the Metering Equipment made by the TDSP. Seller is not responsible for damage to the Metering Equipment unless caused by Seller's negligence. - . VII. TERMINATION OF AGREEMENT. 7.1 A material breach of this Agreement includes: (a) the failure of either Party to make any payment due to the other Party pursuant to the terms hereof, provided, however, that notwithstanding the foregoing or anything else to the contrary in this Agreement, Supplier may not terminate this Agreement for non-payment by Buyer of an undisputed invoiced amount unless the undisputed invoiced amount remains unpaid for thirty (30) days after the due date; (b) the failure of a Party to comply with any other material term of this Agreement; (c) a Party becomes or declares that it is insolvent or bankrupt, or becomes or declares that it is the subject of any proc~edings, or is taking any action whatsoever, relating to its bankruptcy, liquidation or insolvency, or is not generally paying its debts as they become due, (d) a Party fails to comply with any federal, state or local law, regulation, rule or order that causes a material adverse affect upon this Agreement, either Party or either Party's performance of its obligations described in this Agreement; (e) if Buyer enters into another electricity supply agreement for any Premise(s) with another retail energy provider that covers any period during the Agreement Term; or (f) if Buyer, except as provided in paragraphs 7.2 and 14.3 below, sells, leases, closes or otherwise conveys or assigns any Premise(s) in which the electricity sold hereunder is utilized. If either Party commits a material breach of this AgreelT)ent, the non-breaching Party shall give written notice to the breaching Party that describes the breach in reasonable detail ("Original Notice"). The non- breaching Party may, in its sole discretion, and without prejudice to any other right under this Agreement, at law, or in equity, terminate this Agreement (i) by providing an additional notice if the breaching Party does not pay all amounts due and owing set forth in the Original Notice within ten calendar days of the date of the Original Notice, or (ii) effective immediately in the Original Notice in the event the breach pertains to (c), (e), or (f) in this paragraph above, or (iii) by providing ap additional notice if the breaching Party fails to cure any breach other than one related to (a), (c), (e), or (f) in this paragraph above within thirty calendar days of the date of the Original Notice. 7.2 (a) In the event Buyer sells, closes, or leases a particular Premise, without selling, closing, or leasing all of the Premises, Buyer shall have the right to delete that particular Premise and the quantities of electricity attributable to that Premise through the end of the Agreement Term (the "Liquidated Quantities") from this Agreement without terminating the Agreement (a "Premise Buyout Option"). If Buyer desires to exercise a Premise Buyout Option with regard to a Premise, Buyer shall notify Seller in writing at least thirty calendar days prior to the effective date. Upon the exercise of a Premise Buyout Option, in the event a new owner of the applicable Premise (i) is willing to sign a new contract with Seller upon the same terms and conditions as Buyer's contract, (ii) is deemed creditworthy by Seller, and (iii) the new owner and Seller can legally enter into such a contract in accordance with the rules and regulations of the PUCT, then the Premise will be deleted from this Agreement and neither Party will owe any compensation to the other. In the event that the new owner (i) is unwilling to sign a contract with Seller upon the same terms and conditions, (ii) is not reasonably deemed creditworthy by Seller, or (iii) the new owner and Seller cannot legally enter into the contract. then Buyer agrees to pay Seller the positive amount, if any, calculated as follows: the Liquidated Quantities f!lultiplied by (the price that Buyer would have paid for the Liquidated Quantities through the end of the Agreement Term according to the applicable Price Sheet, minus 95.0% of the then current retail marKet price). Buyer shall pay such amount, if any, to Seller within twenty days of the date of liquidation. Exhibit "A" shall be modified to reflect the deletion of such Premise and its Liquidated Quantities, and all other terms and conditions of this Agreement shall remain in full force and effect with respect to the remainillg Premises. (b) In the event Buyer reduces its operations at a Premise, Buyer shall have the right to delete the quantities of electricity attributable to the reduction in operations at such Premise from the effective date of the reduction through the end of the Agreement Term (the "Reduced Operations Liquidated Quantities") from this Agreement without terminating the Agreement. If Buyer desires to exercise such right with regard to a Premise, Buyer shall notify Seller in writing at least thirty calendar days prior to the effective date. Upon the exercise of such right, Buyer agrees to pay Seller the positive amount, if any, calculated as follows: the Reduced Operations Liquidated Quantities multiplied by (the price that Buyer would have paid for the Reduced Operations Liquidated Quantities through the end of the Agreement Term according to the applicable Price Sheet, minus 95.0% of the then current retail marKet price for the liquidated quantities). Buyer shall pay such amount, if any, to Seller within twenty days of the date of liquidation. Exhibit "A" shall be modified to reflect the deletion of the liquidated quantities, and all other terms and conditions of this Agreement shall remain in full force and effect. (c) Both Parties will work in good faith during the Agreement Term to reasonably accommodate and assist Buyer with the management of its electricity needs at the Premises. Since it is not possible to foresee the evolution of the deregulated power industry in Texas, various reasonable options for Buyer to achieve this are evolving and under development by Seller. For example, if Buyer desires to contract for additi9nal electricity, both Parties will work in good faith to mutually agree upon the terms and conditions that are economically viable to both Parties. However, notwithstanding the pre~ious language, e e nothing contained herein shall be construed as to deny or diminish the economic benefit of this Agreement to either Party, and neither Party shall be under any obligation whatsoever to agree to a modification that would have such result. 7.3 (a) In the event that this Agreement is terminated by Seller pursuant to Section 7.1,Jhe Parties agree, that in addition to all amounts Buyer may owe Seller prior to the termination, Seller's damages shall be the positive amount, if any, calculated as follows: (all remaining unpurchased quantities of electricity reflected on Exhibit "A" through the end of the Agreement Term) multiplied by (the price that Buyer would have paid for the unpurchased quantities through the end of the Agreement Term according to the applicable Price Sheet, minus the current retail market price for the unpurchased quantities at the time of termination) plus (all reasonable costs and expenses incurred by Seller). Such amount shall be immediately due and payable within thirty calendar days following such termination. The current retail market price in this instance shall mean the price that Seller would reasonably be able to obtain from a bona-fide third party if entering into a contract with another customer for the unpurchased quantities, and for the remaining term after the Early Termination Date through the end of the Agreement Term. Seller shall have a duty to use commercially reasonable efforts to mitigate its damages. (b) In the event that this Agreement is terminated by Buyer pursuant to Section 7.1,.....the Parties agree, that in addition to all amounts Seller may owe Buyer prior to the termination, Buyer's damages shall be the positive amount, if any, calculated as follows: (all remaining unpurchased quantities of electricity reflected on Exhibit "A" through the end of .the Agreement Term) multiplied by (the current retail market price for the unpurchased quantities at the time of termination, minus the price that Buyer would have paid for the unpurchased quantities through the end of the Agreement Term according to the applicable Price Sheet) plus (all reasonable costs and expenses incurred by Buyer). Such amount shall be immediately due and payable within thirty calendar days following' such termination. The current retail market price in this instance shall mean the price Buyer would have to pay if entering into a contract with another Retail Electric Provider ("REP") for the same quantities, and for the remaining term after the Ear1y Termination Date through the end of the Agreement Term. The price offered by the POLR, or any REP's Standard List Price Offer, shall not be used to calculate Buyer's damages. Buyer shall have a duty to use commercially reasonable efforts to mitigate its damages. 7.4 Buyer may terminate this Agreement, on a prospective basis, in the event of non-appropriation of funding for this Agreement by Buyer's Governing Body. Buyer agrees, to the full extent allowed by Texas law, that if any funds are appropriated for electricity costs, such funds shall be applied first to the cost of electricity provided pursuant to this Agreement. . Buyer agrees to notify the REP in writing of such non-appropriation at the earliest practicable time subsequent to the failure to appropriate, and as of Buyer's termination date, Seller shall have no further duty to supply Electricity to Buyer and shall move service for the Accounts to the POLR as established by the PUCT on the date of termination for non-appropriation. VIII. FORCE MAJEURE. If either Party is unable to perform its obligations in whole or in part due to an event of force majeure as defined herein, then the obligations of the affected Party shall be suspended to the extent made necessary by such event. The term "force majeure" means any cause not within the control of the Party claiming relief, including, but not limited to, Acts of God, including magnetic disturbances but not including extremes of temperature alone; arrests, orders, directives, restraints and requirements of the govemment and governmental agencies, either federal or state (excluding Buyer), civil or military; civil disorder; strikes or labor disputes; fa.ilure, repair or change of or obstruction in electric power lines, equipment or machinery; the failure of the TDSP to receive, transport, or deliver, or otherwise perform, unless due to the failure of the Party claiming force majeure to perform such Party's obligations hereunder; an event of force majeure of Seller's supplier(s) or with Buyer's electrical equipment at Buyer's Premises; or any other cause which by the exercise of reasonable diligence such Party could not have prevented or is unable to overcome. Any such event of force majeure shall, so far as possible, be remedied with all reasonable dispatch. It is understood and agreed that the settlement of strikes or lockouts will be entirely within the discretion of the Party having the difficulty, and that the above requirement of the use of diligence in restoring normal operating conditions will not require the settlement of strikes or lockouts by acceding to the terms of the opposing party when such course is inadvisable in the discretion of the Party having the difficulty. Neither financial distress nor the inability of either Party to make a profit or avoid a financial loss shall be deemed a force majeure event, nor shall (i) changes in the market prices of fuel, energy, or electricity, or (ii) a Party's financial inability to perform its obligations under this Agreement, constitute an event of Force Majeure hereunder. IX. WARRANTIES AND LIMITATIONS OF LIABiliTIES. 9.1 Seller hereby warrants to Buyer that at the time of delivery of electricity hereunder it will have good title and/or the right to sell such electricity, and that such electricity will be free and clear of all liens and adverse claims. Title will pass to Buyer at the TDSP Point of Delivery. EXCEPT AS PROVIDED FOR IN THE FIRST SENTENCE OF THIS PARAGRAPH, SELLER EXPRESSLY DISCLAIMS AND MAKES NO WARRANTIES, WHETHER WRITTEN OR VERBAL, WHETHER EXPRESS, IMPLIED, OR STATUTORY, INCLUDING, WITHOUT LIMITATION, ANY EXPRESS, IMPLIED, OR STATUTORY WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE. 9.2 Unless otherwise expressly provided herein, any liability under this Agreement will be limited to direct actual damages as the sole and exclusive remedy, and all other remedies or damages at law or in equity are waived. Neither Party will be liable for consequential, incidental, punitive, exemplary or indirect damages, including lost profits or other business interruption damages, whether in tort or contract, under any indemnity provisions or otherwise in connection with this Agreement. The ,limitations imposed on remedies and damage measurement will be without regard to cause, including negligence of any Party, e e " whether sole, joint, concurrent, active or passive; provided no such limitation shall apply to damages resulting from the willful misconduct or gross negligence of any Party. X. NOTICES. All notices required or pennitted under this Agreement shall be in writing and shall be deemed to be delivered when deposited in the United States mail (first class, registered or certified), postage prepaid, when deposited with an ovemight delivery service, prepaid to the applicable Buyer's address shown in the attached Exhibit "A", and Seller's address as shown in the Offer, or to such address as either Party may from time to time designate as the address, or in the case of hand delivery, when delivered to a representative of either Party by a representative of the other Party; provided, however, except for payments of amounts due hereunder, either Party may provide such items hereunder by electronic mail or facsimile to the other Party at the applicable telephone number shown on the current Offer, and further provided, the original copy of such item shall be sent to the other Party within three business days thereafter. XI. APPLICABLE LAW AND REGULATIONS. 11.1 This Agreement is subject to all applicable laws, regulations, rules and orders. 11.2 In the event a judicial decision, order, new law or regulation, or a change in any law or regulation, requires a change in the method by which prices are calculated under this Agreement, or materially and directly affects a Party's ability to perfonn its obligations hereunder, then the Party that is negatively affected shall have the right to notify the other Party, within thirty calendar days after becoming aware of such detrimental change. The Parties shall attempt to negotiate a modification to the terms of this Agreement so as to mitigate the impact of the event. If, after twenty calendar days beyond the date of notice, the Parties have been unable to negotiate a mutually satisfactory modification to the tenns of this Agreement, either Party shall have the right to tenninate this Agreement upon ten calendar days prior written notice to the other Party. If such right to terminate is not exercised within forty-five calendar days after the date of the original notice hereunder, then the right to terminate this Agreement shall be waived with respect to the particular event. 11.3 Seller agrees to maintain all necessary certifications and comply with all necessary PUCT and/or ERCOT requirements in order to perform its obligations under this Agreement. ,11.4 Notwithstanding anything contained in this Agreement, Buyer shall not attempt to utilize, under the provisions of this Section XI or Section VIII, or in any other manner, its inherent powers as a political subdivision of the State of Texas in order to circumvent in any way the terms and provisions of this Agreement or the intent of this Agreement. XII. FAILURE OR TEMPORARY DISCONTINUANCE OF SUPPLY. 12.1 The supply of electricity may be disconnected in the event of Force Majeure in respect of this Agreement; or if at TDSP's discretion it is necessary to do so for any of the following reasons: (a) to avoid danger; or because failure to disconnect the supply of electricity would or might involve TDSP being in breach of applicable regulations or laws; or to avoid interference with the supply of electricity to another person which TDSP reasonably believes may be caused or result from Buyer's equipment or device used at the Premise(s); or to enable TDSP or TDSP's representatives to inspect, maintain or repair any part of the equipment or the Distribution System; or in case of accident or other emergency affecting or likely to affect the Distribution System or any other system through which (directly or indirectly) Seller or TDSP receives or supplies electricity; or (b) because Buyer's electric connections or systems are deemed by TOSP to present a hazard. 12.2 In the event that the supply of electricity to Buyer's Premises is interrupted due to the material breach by Seller of its contractual obligations under this Agreement and not due to (i) a force majeure event, (ii) as provided in paragraph 12.1 above, or (iii) the failure of Buyer to comply with its obligations under this Agreement, then, in the event Buyer is required to ' purchase replacement electricity from a third party during such interruption, Seller shall be liable for the positive amount, if any, calculated as follows: the quantities so interrupted by Seller multiplied by [the then current retail market price (or the POLR price if Buyer was unable to purchase' electricity from another retail electricity provider) minus I the contracted price from the applicable Price Sheet], . XIII. RESPONSIBILITY. 13.1 Buver ResDonsibilitv. Buyer assumes full responsibility for electric energy furnished to Buyer at and on Buyer's side of the Point of Delivery, and agrees, to the full extent allowed by law, to hold harmless Seller, its parent company and all of its affiliates, and all of their respective officers, directors, shareholders, associates, employees, servants, and agents (hereinafter collectively referred to as "Seller Group"), from and against all claims, losses, expenses, damages, demands, judgments, causes of action, an~ suits of any kind (hereinafter collectively referred to "Claims"), including Claims for personal. injury, death, or damages to property occurring on Buyer's side of the Point of Delivery and upon the Premise(s), arising out of or related to the electric power and energy and/or Buyer's performance under the Agreement. 13.2 Seller Resoonsibilitv. Buyer acknowledges and understands that (i) Seller never obtains physical possession or control of the electricity, (ii) Seller does not own nor have control of the electric transmission wires and equipment, and that they are owned and/or controlled by the TDSP, (iii) all meter reading, and repair services will be provided by employees or agents of the TDSP, (iv) all responsibilities and liabilities of the TDSP are set forth in the tariff regulations as approved by the PUCT, and (v) the employees and agents of the TDSP are not employees or agents of Seller. Seller shall not have any obligation e e whatsoever to indemnify, defend, nor hold harmless Buyer, its parent company and all of its affiliates, and all of their respective officers, directors, shareholders, associates, employees, servants, and agents (hereinafter collectively referred to as "Buyer Group"), against any Claims, on either side of the Point of Delivery, arising out of or in any way related to the electricity and/or the delivery thereof, including, without limitation, the actions of the TDSP and its employees and agents, except in the event, and only in the event, that such Claims are the direct result of the sole negligence and/or intentionally wror'9ful act of an employee, or agent under the exclusive control, of Seller. XIV. MISCELLANEOUS. _ 14.1 TDSPs. Buyer and Seller agree to all terms and' conditions (adopted pursuant to statutes, regulation~ or other lawful authority) of the TDSPs that provide electricity delivery services to the Premise(s) or other Buyer facilities, which may from time to time be amended, are made part of this Agreement. ' 14.2 Choice of Law: Venue. THIS AGREEMENT SHALL BE CONSTRUED AND ENFORCED IN ACCORDANCE WITH THE LAWS OF THE STATE OF TEXAS WITHOUT GIVING EFFECT TO ANY CONFLICTS OF LAW PRINCIPLES WHICH OTHERWISE MIGHT BE APPLICABLE. 14.3 Assianment. In the event that Buyer_conveys legal title to all of the Premises to the same entity, Buyer may request from Seller the right to assign its rights and obligations under the Agreement to the new owner of the Premises, and in such event, Seller shall not unreasonably withhold its consent. Any purported assignment without Seller's prior written consent shall be null and void. Buyer shall not have any right whatsoever to assign this Agreement to any party that is not the owner of all of the Premises, and any purported assignment shall be null and void. Seller may assign this Agreement to another party, with the prior written consent of Buyer, which consent shall not be unreasonably withheld. Any purported assignment without Buyer's prior written consent shall be null and void. This Agreem~nt shall inure to and be binding upon the Parties hereto, and their respective successors and assigns. 14.4 -Entiretv of Aareement. It is the intention of the Parties that the Agreement shall contain all terms, conditions, and protections in any way related to, or arising put of, the sale and purchase of the electricity, and supersedes all prior agreements, whether written or oral. It is also the intention of the Parties to agree to terms of service different than those that would otherwise apply under the Substantive Rules of the Public Utility Commission of Texas "Customer Protection Rules for Retail Electric'Service", Sections 25.471 - 25.485, and 25.491 - 25.492. The Parties expressly acknowledge that certain terms, conditions, and protections addressed in such sections 25.472 . 25.485, and 25.491, .25.492 may not be provided for or referred to in this Agreement, and, in such event, it is the intent of the Parties that such terms, conditions, and protections are not applicable to the Parties. Neither Party may assert any claim that any term, condition, and/or protection contained in Sections 25.472 - 25.485 and 25.491 - 25.492 of the Rules is inconsistent with any term, condition, and/or protection contained in the Agreement and, therefore, applies to the Parties. This Agreement may not be modified or amended except in writing, duly executed by the Parties hereto. Buyer warrants that the information supplied by it pursuant to this Agreement is true and shall remain so throughout the term of the Agreement unless varied by agreement. 14.5 Waiver of Riahts. A waiver by either Party of any breach of this Agreement, or the failure of either Party to enforce any of the terms and provisions of this Agreement, will not in any way affect, limit or waive that Party's right to enforce and compel strict compliance with the same or other terms or provisions of this Agreement. 14.6 Third Partv Riahts. Nothing in this Agreement shall create, or be construed as creating, any express or implied rights in any person or entity other than the Parties. 14.7 Survival. No termination or cancellation of this Agreement will relieve either Party of any obligations under this Agreement that by their nature survive such termination or cancellation, including, but not limited to, all warranties and obligations of indemnity. 14.8 Further Assurances. Buyer and Seller agree to provide such information, execute and deliver any instruments and documents and to take such other action~ as may be necessary or reasonably requested by the other Party which are not inconsistent with. the provisions of this Agreement and which do not involve the assumptions of obligations other than those provided for in this Agreement, in order to give full effect to this Agreement and to carry out the intent of this Agreement. 14.9 Distribution SYstem. Distribution System herein shall mean any system for the distribution of electricity through which the electricity to be provided by Seller to Buyer is provided or passed to the Premise(s). Seller's obligations under this Agreement are subject to the maximum capacity and any other design feature of Buyer's Premise or Connection. Buyer shall contact Seller in accordance with all applicable legal requirements, and otherwise reasonably in advance, if Buyer proposes to make any significant change to Buyer's connection, electric lines or electrical equipment, install or operate generating equipment or do anything else that could affect the Distribution System or require alterations to Buyer's Connection. Each of the Parties undertakes to comply with Buyer's TDSP's Tariff for Distribution Service:. 14.10 Delivery of Electricitv. Sell~r does not guarantee against irregularities or interruptions. it being understood that occasional irregularities and interruptions by the TOSP may occur. Buyer is responsible for installing and maintaining protective devices as recommended or required by the then current edition of the National Electric Code and other such e e devices as are necessary to protect equipment or process during irregular or interrupted service including, but not limited to voltage and wave form irregularities. 14.11 -Confidentialitv. Seller acknowledges that Buyer is a governmental body that is subject to public information laws, including Chapter 552 of the Texas Government Code, which requires Buyer to release any information that is defined as or deemed to be public (the "Public Information Statutes"). Subject to any Public Information Statute or related order, rule or regulation requiring disclosure, Seller and Buyer agree to keep all terms and provisions of this Agreement confidential and not _ to disclose the terms of the same to any third parties; provided, however, each Party shall have the right to make such disclosures, if any, to governmental agencies and to its own agents, attorneys, auditors, accountants and shareholders as may be reasonably necessary. If disclosure is sought through process of a court, or a state or feeferal regulatory agency, the Party from whom the disclosure is sought shall resist disclosure through all reasonable means and shall immediately notify the other Party to allow it the opportunity to participate in such proceedings. 14.12 Resale of Seller's Electric Service. Buyer may not use supply of electricity provided by Seller except for the purpose specified in the Price Sheet under which Buyer receives supply of electricity. Buyer may not resell or otherwise dispose of supply of electricity unless as provided by statute or as specifically provided for in the Price Sheet. 14.13 Authorization. At such time as executed Offer and Price Sheet(s) are attached hereto, Buyer authorizes Seller to become Buyer's new retail electric provider in place of Buyer's current retail electric provider for the duration of the Agreement Term set forth in the Offer. Buyer authorizes Seller to act as Buyer's agent to effect the change, and Buyer directs its current retail electric provider to work with Seller to make this change happen. Buyer represents to Seller that Buyer is legally authorized to change the retail electric provider for all of the Premises. 14.14 Severabilitv. If any portion of this Agreement, or application thereof to any person or circumstance, shall be held legally invalid, the remainder snail not be affected and shall be valid and enforced to the fullest extent permitted by law or equity. 14.15 Aaareaator Fees. Seller shall bill and collect from Buyer for HGAC Energy Purchasing Corporation ("HGAC") Aggregation Fees with respect to the purchase of Electricity under these Terms and Conditions ("Aggregation Fees"). Seller_ shall remit all Aggregation, Fee collections received during each calendar month to HGAC on or before the twentieth (20th) Business Day of the following calendar month. Payments received from Buyer shall be deemed to bE:! payments of Seller and TDSP charges then due, then of the Aggregation Fee. 14.16 Aaareaator Review. Buyer understands and acknowledges that any deviations from the standard Terms and Conditions for Supply of Electricity negotiated by HGAC on behalf of Buyer shall be subject to the prior review and consent of the HGAC. 14.17 Buyer is a Member of the HGAC Energy Purchasing Corporation. Seller is basing the indicative price on the attached price sheet upon assumptions as to the aggregated load and associated load factor of all Members of the Corporation. A condition precedent to the effectiveness of this Agreement is satisfaction of certain load and load factor criteria as agreed to between Seller and the HGAC Energy Purchasing CorpOration. In the event that such criteria, as established in Section 1.b of the Agreement between H-GAC Energy Purchasing Corporation and TXU Energy Services, are not satisfied, then Seller shall not sign this Agreement and it shall be null and void ab initio. 14.18 Buyer shall notify seller of any ESls that have any significant load shifting. capabilities so Seller may offer multipart pricing for that Premise. The Parties have signed this Terms{ and Conditions for Supply of Electricity document, acknowledging their agreement to its provisions as of ~ ~ "':>1 ,2001. " Cr/j OF L.A /J()leIE By: aM T. \\~ Name: f( 0 ber4- t: I/.rr-erl'J.. Title: G~ J1a nt2j.et'" Date: I ij ~I () I "Buyer" Title: TXU ENERGY SERVICES COMPANY U~ /?P~/Cfl)ll 7 . Name: ~nh r\ P. Wo,-" .'L 5PA\Or "'b;rpc:tTIY" Date: /2- //-cJ( By: "Seller" 01/01/02 12/31103 24 Contract Start Date: Contract End Date: Primary Term: 1-8CGC7 Flat Plan 10: Plan Type TOU Type City of La Porte 53.1% 19,012,428 1-4QV2 Load Factor: Contract kWh Account Est. Flat 19,012,428 TOU Total kWh Period 4: Period 3: 19,012,428 Period 2: TOU Contract kWh:Period 1 e .Power i'Contract"- ~~~~;!:t-.;~_.';-'~~~ ...':.~,~~~ _. ;..-, '. ..... -:-'City:-:.~\ ..' _.". . ~. .. . ... ::$'tate'-~i.p REL TD Delivery Voltage Secondary Account' ".' - '=' Description' . Address r' ._ _ _ 'TDSP,AccQunt# ,c...:; "'_,._,:..:'~ TDSP 10 "",:.;.. r', ESI 20 ERCOT N N N 9111 HOUSTON 02 - ~ 10428 W MAIN ST La Porte ......:.=......=.. City of La Porte HGAC 016113901732 ;o:.~'.;..;"""''''''''' 10089010016113 90173100 ERCOT N N N 9111 HOUSTON 02 77571 10341 W MAIN ST La Porte TX City of La Porte HGAC 016113904008 10089010016113 90400100 ERCOT N N N 9111 HOUSTON 02 77571 La Porte TX 10340 W MAIN ST City of La Porte HGAC 016114105001 10089010016114 10500100 e ERCOT N N N 9111 HOUSTON 02 77571 La Porte TX 10200 W MAIN ST City of La Porte HGAC 016114306002 10089010016114 30600100 ERCOT N N N 9111 HOUSTON 02 77571 10247 W MAIN ST La Porte TX City of La Porte HGAC 01611 10089010016114 40069100 34 of 11 Page ERCOT N N N 9111 HOUSTON 02 77571 77571 10220 HILLRIDGE La Porte RD on 1/15/2002 TX TX 4400698 City of La Porte HGAC 016117393701 Report Generated for JPARKER 10089010016117 39370100 N N ERCOT 16 N N ERCOT N N ERCOT 64 N N ERCOT N N ERCOT 8e N N ERCOT N N ERCOT 25 N N ERCOT N N ERCOT 35 , N N ERCOT 192 e N N ERCOT 17 N N' ERCOT 120 - - Page 20f 11 N N N N N N N N N N N N HOUSTON 9111 02 HOUSTON 9111 02 HOUSTON 9111 02 HOUSTON 9111 02 HOUSTON 9111 02 HOUSTON 9111 02 HOUSTON 9111 02 HOUSTON 9111 02 HOUSTON 9111 02 HOUSTON 9111 02 HOUSTON 9111 02 HOUSTON 9111 02 10089010016117 City of La Porte HGAC 10216 HILLRIDGE La Porte 39380100 RD 016117393804 TX 77571 10089010016117 City of La Porte HGAC 10215 HILLRIDGE La Porte 89495100 RD 016117894951 TX 77571 10089010016117 City of La Porte HGAC 10211 HILLRIDGE La Porte 89500100 RD 016117895002 TX 77571 10089010036120 City of La Porte HGAC 1050 ROBINSON La Porte 91000100 RD 036120910002 TX 77571 10089010036124 City of La Porte HGAC 10502 N P La Porte 27900100 036124279008 TX 77571 10089010036124 City of La Porte HGAC 10105 N L ST La Porte 32010100 036124320101 TX 77571 10089010036124 City of La Porte HGAC 10110 N L ST La Porte 46140100 036124461402 TX 77571 10089010036124 City of La Porte HGAC 10428 N L ST La Porte 48795100 036124487952 TX 77571 10089010096233 City of La Porte HGAC 10229 FAIRMONT La Porte 32750100 PKY1 096233327501 TX 77571 10089010216322 City of La Porte HGAC 105N La Porte 62930100 BROADWAY ST 216322629308 TX 77571 10089010238001 City of La Porte HGAC 10210 N P La Porte 96680100 238001966801 TX 77571 10089010238009 City of La Porte HGAC 10100 N P La Porte 99510100 238009995101 TX 77571 - - Report Generated for JPARKER on 1/15/2002 N ERCOT N ERCOT N ERCOT 67 N ERCOT N ERCOT -- N ERCOT N ERCOT N ERCOT N ERCOT 288 N ERCOT e N ERCOT 32 N ' ERCOT - - Page 30f 11 N N N N N N N N N N N N N N N N N N N N N N N N HOUSTON 9111 02 HOUSTON 9111 02 HOUSTON 9111 02 HOUSTON 9111 02 HOUSTON 9111 02 HOUSTON 9111 02 HO.USTON 9111 02 HOUSTON 9111 02 HOUSTON 9111 02 HOUSTON 9111 02 HOUSTON 9111 02 HOUSTON 9111 02 10089010238029 City of La Porte HGAC 101 N La Porte 85890100 BLACKWELL ST 238029858901 TX 77571 10089010238032 City of La Porte HGAC 10431 W MAIN ST La Porte 62330100 A 238032623301 TX 77571 10089010238032 City of La Porte HGAC 10300 N P La Porte 95450100 238032954501 TX 77571 10089010238035 City of La Porte HGAC 103281/2 W MAIN LA PORTE 36710100 ST 238035367101 TX 77571 10089010238065 City of La Porte HGAC 10216 HILLRIOGE La Porte 55620100 ROA 238065556201 TX 77571 10089010238084 City of La Porte HGAC 10131 W MAIN ST La Porte 61510100 A 238084615101 TX 77571 10089010238103 City of La Porte HGAC 1001 S 4TH La Porte 89300100 238103893001 TX 77571 10089010016113 City of La Porte HGAC 11903 W MAIN ST La Porte 70009100 016113700092 TX 77571 10089010016113 City of La Porte HGAC 125 S 25TH La Porte 70025100 016113700251 TX 77571 10089010016113 City of La Porte HGAC 11850 N 0 ST La Porte 74350100 016113743501 TX 77571 10089010016113 City of La Porte HGAC 10715 W MAIN ST La Porte 88049100 016113880491 TX 77571 10089010036120 City of La Porte HGAC 11033 HOUSTON La Porte 86334100 DR 036120863348 TX 77571 - - Report Generated for JPARKER on 1/15/2002 N N ERCOT N N ERCOT N N ERCOT N N ERCOT N N ERCOT e N N ERCOT N N ERCOT 12 N N ERCOT N N ERCOT N N ERCOT 17 e N N ERCOT 557 N N ERCOT - - Page 4 of 11 N N N N N N N N N N N N HOUSTON 9111 02 HOUSTON 9111 02 HOUSTON 9111 02 HOUSTON 9111 02 HOUSTON 9111 02 HOUSTON 9111 02 HOUSTON 9111 02 HOUSTON 9111 02 HOUSTON 9111 02 HOUSTON 9111 02 HOUSTON 9111 02 HOUSTON 9111 02 10089010036123 City of La Porte HGAC 11550 N P La Porte 02600100 036123026002 TX 77571 10089010036123 City of La Porte HGAC 10530 N P 1 La Porte 46350100 036123463508 TX 77571 10089010036124 City of La Porte HGAC 10825 N L ST La Porte 74165100 036124741652 TX 77571 10089010036124 City of La Porte HGAC 11850 N L ST La Porte 91300100 036124913002 TX 77571 10089010036124 City of La Porte HGAC 11540 N L ST La Porte 91900100 036124919002 TX 77571 10089010036125 City of La Porte HGAC 11240 N L ST La Porte 06700100 036125067002 TX 77571 10089010036125 City of La Porte HGAC 10822 N L ST La Porte 32050100 036125320501 TX 77571 10089010036125 City of La Porte HGAC 11416 N AVENUE La Porte 62000100 H 036125620002 TX 77571 10089010116304 City of La Porte HGAC 1231 S 8TH La Porte 61740100 116304617408 TX 77571 10089010116304 City of La Porte HGAC 1301 S 4TH A La Porte 62110100 116304621108 TX 77571 10089010116304 City of La Porte HGAC 1301 S 4TH La Porte 62115100 116304621158 TX 77571 10089010206318 City of La Porte HGAC 111 S 4TH RR La Porte 84025100 206318840251 TX 77571 - - Report Generated for JPARKER on 1/15/2002 N N ERCOT 15 N N ERCOT 48 N N ERCOT 25 N N ERCOT 45 N N ERCOT e N N ERCOT 54 N N ERCOT N N ERCOT N N ERCOT 90 N N ERCOT e N N ERCOT N N ERCOT 34 - - Page 5 of 11 N N N N N N N N N N N N HOUSTON 9111 02 HOUSTON 9111 02 HOUSTON 9111 02 HOUSTON 9111 02 HOUSTON 9111 02 HOUSTON 9111 02 HOUSTON 9111 02 HOUSTON 9111 02 HOUSTON 9111 02 HOUSTON 9111 02 HOUSTON 9111 02 HOUSTON 9111 02 10089010206318 City of La Porte HGAC 120 S 2ND La Porte 91850100 206318918502 TX 77571 10089010206318 City of La Porte HGAC 128 S 2ND La Porte 91870100 206318918701 TX 77571 10089010238002 City of La Porte HGAC 12201 N C ST La Porte 08950100 238002089501 TX 77571 10089010238022 City of La Porte HGAC 12203 N C ST La Porte 29510100 238022295101 TX 77571 10089010238029 City of La Porte HGAC 12000 N L ST La Porte 46750100 238029467501 TX 77571 10089010238039 City of La Porte HGAC 10530 N P La Porte 57830100 238039578301 TX 77571 10089010238081 City of La Porte HGAC 1300 N La Porte 39360100 BAYSHORE 238081393601 TX 77571 10089010238097 City of La Porte HGAC 111 S 2ND La Porte 77440100 238097774401 TX 77571 10089010238017 City of La Porte HGAC 1131 S 1ST La Porte 89320100 238017893202 TX 77571 10089010016112 City of La Porte HGAC 1309 N 16TH ST La Porte 63500100 016112635001 TX 77571 10089010016113 City of La Porte HGAC 201 1/2 N 16TH La Porte 50996100 ST 016113509961 TX 77571 10089010016113 City of La Porte HGAC 2963 23RD La Porte 64900100 016113649008 TX 77571 - - Report Generated for JPARKER on 1/15/2002 N N ERCOT 14 N N ERCOT 28 N N ERCOT 30 N N ERCOT N N ERCOT e N N ERCOT 128 N N ERCOT 19 N N ERCOT 25 N N ERCOT 68 N N ERCOT 56 e N N ERCOT N N ERCOT - - Page 6 of 11 N N N N N N N N N N N N HOUSTON 9111 02 HOUSTON 9111 02 HOUSTON 9111 02 HOUSTON 9111 02 HOUSTON 9111 02 HOUSTON 9111 02 HOUSTON 9111 02 HOUSTON 9111 02 HOUSTON 9111 02. HOUSTON 9111 02 HOUSTON 9111 02 HOUSTON 9111 02 10089010036124 City of La Porte HGAC 1523 LOMAX La Porte 28200100 SCHOOL RD 036124282002 TX 77571 10089010036124 City of La Porte HGAC 1525 LOMAX La Porte 28265100 SCHOOL RD 036124282652 TX 77571 10089010036125 City of La Porte HGAC 2004 LOMAX La Porte 33800100 SCHOOL RD 036125338001 TX 77571 10089010036126 City of La Porte HGAC 1724 N HIGHWAY La Porte 24200100 146 036126242008 TX 77571 10089010116303 City of La Porte HGAC 2601 S La Porte 40000100 BROADWAY ST 116303400001 TX 7757.1 10089010116303 City of La Porte HGAC 1900 S R ST C La Porte 75370100 116303753701 TX 77571 10089010116304 City of La Porte HGAC 200WP La Porte 62800100 116304628008 TX 77571 10089010206319 City of La Porte HGAC 209 1/2 E G ST La Porte 02585100 206319025851 TX 77571 10089010238001 City of La Porte HGAC 200SRST La Porte 15750100 238001157501 TX 77571 10089010238002 City of La Porte HGAC 201 S R ST La Porte 35950100 238002359501 TX 77571 10089010238004 City of La Porte HGAC 301 La Porte 01110100 FARRINGTON 238004011101 TX 77571 10089010238018 City of La Porte HGAC 1609 LOMAX La Porte 40470100 SCHOOL RD A 238018404701 TX 77571 - - Report Generated for JPARKER on 1/15/2002 N N ERCOT 297 N N ERCOT N N ERCOT N N ERCOT 29 N N ERCOT e , N N ERCOT N N ERCOT 230 N N ERCOT N N ERCOT 55 N N ERCOT e N N ERCOT 18 N N ERCOT 92 - - Page 70f 11 N N N N N N N N N N N N HOUSTON 9111 02 HOUSTON 9111 02 HOUSTON 9111 02 HOUSTON 9111 02 HOUSTON 9111 02 HOUSTON 9111 02 HOUSTON 9111 02 HOUSTON 9111 02 HOUSTON 9111 02 HOUSTON 9111 02 HOUSTON 9111 02 HOUSTON 9111 02 10089010238019 City of La Porte HGAC 1322 S La Porte 42710100 BROADWAY ST 238019427101 TX 77571 10089010238035 City of La Porte HGAC 16251/2 W MAIN La Porte 14640100 ST 238035146401 TX 77571 10089010238036 City of La Porte HGAC 19251/2W MAIN La Porte 98500100 ST 238036985001 TX 77571 10089010238053 City of La Porte HGAC 1302 S La Porte 40470100 BROADWAYST 238053404702 TX 77571 10089010238056 City of La Porte HGAC 201 WHARTON La Porte 07840100 WEEMS BLVD 238056078401 TX 77571 10089010238055 City of La Porte HGAC 301 N 5TH La Porte 21310100 238055213101 TX 77571 10089010016117 City of La Porte HGAC 3540 La Porte 35850100 FARRINGTON 016117358531 TX 77571 10089010016117 City of La Porte HGAC 3550 La Porte 35860100 FARRINGTON 016117358602 TX 77571 10089010096233 City of La Porte HGAC 3822 La Porte 30793100 COTTONWOOD 096233307931 DR TX 77571 10089010106241 City of La Porte HGAC 3700 SUNRISE La Porte 26300100 DR 106241263005 TX 77571 10089010106301 City of La Porte HGAC 3215 BAYOU DR La Porte 44325100 RR 106301443254 TX 77571 10D89010116303 City of La Porte HGAC 3030 La Porte 06901100 HUMPHREVILLE 116303069019 ST TX 77571 - - Report Generated for JPARKER on 1/15/2002 N N ERCOT N N ERCOT 10 N N ERCOT 38 N N ERCOT 40 N N ERCOT 101 e N N ERCOT N N ERCOT 22 N N ERCOT' N N ERCOT N N ERCOT 128 e N N ERCOT N N ERCOT - - Page 8 of 11 N N N N N N N N N N N N HOUSTON 9111 02 HOUSTON 9111 02 HOUSTON 9111 02 HOUSTON 9111 02 HOUSTON 9111 02 HOUSTON 9111 02 HOUSTON 9111 02 HOUSTON 9111 02 HOUSTON 9111 02 HOUSTON 9111 02 HOUSTON 9111 02 HOUSTON 9111 02 10089010206319 City of La Porte HGAC 326 SAN La Porte 01815100 JACINTO DR 206319018151 TX 77571 10089010206945 City of La Porte HGAC 3326 SOMERTON La Porte 31475100 DR 206945314754 TX 77571 10089010216322 City of La Porte HGAC 332 N 4TH La Porte 86390100 216322863901 TX 77571 10089010238007. City of La Porte HGAC 322 N 4TH La Porte 67500100 238007675002 TX 77571 10089010238029 City of La Porte HGAC 3540 La Porte 80970100 FARRINGTON B 238029809701 TX 77571 10089010238039 City of La Porte HGAC 3324 SOMERTON La Porte 58060100 DR 238039580601 TX 77571 10089010238040 City of La Porte HGAC 3231 La Porte 69310100 UNDERWOOD 238040693101 RDA TX 77571 10089010238044 City of La Porte HGAC 3406 La Porte 25040100 UNDERWOOD 238044250401 RD TX 77571 10089010238044 City of La Porte HGAC 31221/2 La Porte 27550100 UNDERWOOD 238044275501 RD TX 77571 10089010206945 City of La Porte HGAC 3717 LUELLA La Porte 26800100 BLVD 206945268009 TX 77571 10089010026118 City of La Porte HGAC 3209 La Porte 74030100 UNDERWOOD 026118740301 RD TX 77571 10089010238085 City of La Porte HGAC 701 LITTLE La Porte 58390100 CEDAR BAYOU 238085583901 DRA TX 77571 - - Report Generated for JPARKER on 1/15/2002 N N ERCOT N N ERCOT N N ERCOT N N ERCOT N N ERCOT e N N ERCOT N N ERCOT 160 N N ERCOT 192 N N ERCOT 173 N N ERCOT e N N ERCOT 36 N N ERCOT 144 - - Page 9 of 11 N N N N N N N N N N N N HOUSTON 9111 02 HOUSTON 9111 02 HOUSTON 9111 02 HOUSTON 9111 02 HOU$TON 9111 02 HOUSTON 9111 02 HOUSTON 9111 02 HOUSTON 9111 02 HOUSTON 9111 02 HOUSTON 9111 02 HOUSTON 9111 02 HOUSTON 9111 02 10089010026118 City of La Porte HGAC 54051/2 STONE La Porte 77277100 CREEK DR 026118772771 TX 77571 10089010026118 City of La Porte HGAC 9800 N AVENUE La Porte 79580100 H 026118795808 TX 77571 10089010036124 City of La Porte HGAC 9820 N P La Porte 13010100 036124130108 TX 77571 10089010106241 City of La Porte HGAC 3840 OLD La Porte 15900100 HIGHWAY 146 106241159005 TX 77571 10089010116303 City of La Porte HGAC 702 MC CABE RD La Porte 26205100 116303262051 TX 77571 10089010116303 City of La Porte HGAC 775 S R ST La Porte 75950100 116303759501 TX 77571 10089010116303 City of La Porte HGAC 528N La Porte 81650100 BAYSHORE 116303816503 TX 77571 10089010-116304 City of La Porte HGAC 430 W FAIRMONT La Porte 36020100 PKY RR 116304360208 TX 77571 10089010116304 City of La Porte HGAC 604 W FAIRMONT La Porte 48900100 PKY 116304489008 TX 77571 10089010116304 City of La Porte HGAC 604 1/2 W La Porte 48905100 FAIRMONT PKY 116304489058 TX 77571 10089010206319 City of La Porte HGAC 526 SAN La Porte 02285100 JACINTO DR 206319022851 TX 77571 10089010206945 City of La Porte HGAC 8610 SANDRIDGE La Porte 31320100 RD 206945313202 TX 77571 - - Report Generated for JPARKER on 1/1512002 N N ERCOT N N ERCOT N N ERCOT 355 N N ERCOT 13 N N ERCOT e N N ERCOT N N ERCOT N N ERCOT N N ERCOT 52 N N ERCOT e N N ERCOT N N ERCOT - - Page 10 of 11 N N N N N N N N N N N N HOUSTON 9111 02 HOUSTON 9111 02 HOUSTON 9111 02 HOUSTON 9111 02 HOUSTON 9111 02 HOUSTON 9111 02 HOUSTON 9111 02 HOUSTON 9111 02 HOUSTON 9111 02 HOUSTON 9111 02 HOUSTON 9111 02 HOUSTON 9111 02 10089010206945 City of La Porte HGAC 9209 BELFAST La Porte 38598100 RD 206945385982 TX 77571 10089010216322 City of La Porte HGAC 531 N 5TH La Porte 94720100 216322947208 TX 77571 10089010238000 City of La Porte HGAC 600 LITTlE La Porte 97690100 CEDAR BAYOU 238000976901 DR TX 77571 10089010238005 City of La Porte HGAC 617 La Porte 43240100 SHOREACRES 238005432401 BLVD TX 77571 10089010238035 City of La Porte HGAC 9720 1/2 W MAIN La Porte 36750100 ST 238035367502 TX 77571 10089010238038 City of La Porte HGAC 701 1/2 VALLEY La Porte 77050100 BROOK DR 238038770501 TX 77571 10089010238039 City of La Porte HGAC 602 E FAIRMONT La Porte 29540100 PKY 238039295401 TX 77571 10089010238058 City of La Porte HGAC 812 N La Porte 09060100 BAYSHORE A '238058090601 TX 77571 10089010206319 City of La Porte HGAC 618 SAN La Porte 02385100 JACINTO DR 206319023851 TX 77571 10089010238033 City of La Porte HGAC 386 MYRTLE La Porte 84150100 CREEK DR 238033841501 TX 77571 10089010238033 City of La Porte HGAC 607 MYRTLE La Porte 45650100 CREEK DR 238033456501 TX 77571 10089010016118 City of La Porte HGAC 99971/2 W MAIN La Porte 05290100 ST 016118052902 TX 77571 - - Report Generated for'JPARKER on 1/15/2002 N N ERCOT 36 N N ERCOT N N ERCOT N N ERCOT 20 Contract kW: 4,624 e e - Page 11 of 11 N N N N HOUSTON 9111 02 HOUSTON 9111 02 HOUSTON 9111 02 HOUSTON 9111 02 10089010036124 City of La Porte HGAC 9830 N L ST La Porte 40025100 036124400252 TX 77571 - 10089010036124 City of La Porte HGAC 9830 N L ST A La Porte 40030100 036124400301 TX 77571 10089010238032 City of La Porte HGAC 9901 W MAIN ST La Porte 62310100 A 238032623101 TX 77571 10089010238040 City of La Porte HGAC 9831 W MAIN ST La Porte 69280100 A 238040692801 TX 77571 Totals: # of Service Points: 118 Report Generated for JPARKER on 1/15/2002 Contract Start Date 01/01/02 Contract End Date: 12/31/03 Total Usage 823,419 733,187 660,933 e 735,480 783,356 787,652 918,390 887,126 877,996 779,117 730,482 790,595 819,417 e 733,056 659,315 738,196 774,622 794,103 919,932 877,691 888,895 Page 1 of 2 Usage 4 Account :City of La Porte Plan # : 1-8CGC7 Monthly Contracted Usage in kWh Period Usage 1 Usage 2 Usage 3 01/01/02 823,419 02/01/02 733,187 03/01/02 660,933 04/01/02 735,480 05/01/02 783,356 06/01/02 787,652 07101/02 918,390 08/01/02 887,126 09/01/02 877,996 10101/02 779,117 11/01/02 730,482 12/01/02 790,595 01/01/03 819,417 02/01/03 733,056 03/01/03 659,315 04/01/03 738,196 05/01/03 774,622 06/01/03 794,103 07101/03 919,932 08/01/03 877,691 09/01/03 888.895 Report Generated for GPENDlEY on 11/17/2001 Contract Start Date: 01/01/02 Contract End Date: 12/31/03 775,305 722,409 801,753 19,012,428 e e - - Page 2 of 2 1-8CGC7 Plan # Account :City of La Porte 10101/03 775,305 11/01/03 722,409 12/01/03 801,753 # of Periods: 24 Total kWh: 19,012,428 - Report Generated for GPENDLEY on 11/17/2001 e e eTXU TXU Energy Services TERMS AND CONDITIONS FOR SUPPLY OF ELECTRICITY These Terms and Conditions for the Supply of Electricity ("Terms"), together with any Offer for Supply of Electricity ("Offer") and any other attachments, exhibits or appendices (including, as appropriate, one or more Price Sheets) as may be hereafter agreed to by Buyer (the term Buyer includes its employees and/or agents as appropriate). and Seller (the term Seller includes its assignees and/or as appropriate its employees, agents and/or subcontractors), shall constitute the "Agreement" for the supply of electricity to the Premise(s) of Buyer set forth in Exhibit "A" attached hereto: Seller and Buyer may hereinafter be referred to individually as a "Party" and collectively as the "Parties". "Premise(s)" herein shall mean the designated (in Exhibit "A") property or facilities and associated metered account(s) identified by an Electric Service Identifier ("ESI"), which is a unique and permanent identifier assigned to each Premise(s). A "Price Sheet(s)" is a document(s) containing a description of the method for determining charges payable by Buyer to Seller for electricity supplied pursuant to this Agreement, for specified Premises and shall contain the Offer Price. A condition precedent for the effectiveness of the Agreement shall be the execution of a separate Offer, and agreement by the Parties on the terms contained in Exhibit "A" and the appropriate Price Sheet(s). I. SUBJECT MA ITER AND QUANTITY. Seller shall sell and cause delivery, and Buyer shall purchase and receive at the Point of Delivery, for use only at the Premise(s), Buyer's non-residential electricity requirements set forth on Exhibit "A" attached hereto. "TDSP" herein shall mean a transmission and/or distribution provider under the jurisdiction of the Public Utility Commission of Texas ("PUCT") that owns and maintains a transmission or distribution system for the delivery of energy; including a Municipally owned utility or Rural Electric Cooperative. "Point of Delivery" herein shall mean the point where TDSP's conductors are connected to Buyer's conductors at or near Buyer's Premises. II. [This Section has been deleted intentionally.] Ill. TERM. The "Agreement Term" shall be the time period, as referred to in the Offer, during, which the prices contained in the Price Sheets are and shall remain in force. IV. AGREEMENT RENEWALlPRICE RENEGOTIATION. If Buyer and Seller have not agreed to new pricing and terms prior to thirty calendar days before the expiration of the then current Offer, and Buyer has not arranged for elec::tricity from another supplier prior to the expiration of such Offer, then, effective upon expiration of the Offer and until Buyer arranges for electricity with another supplier or under a new Offer with Seller, Seller agrees to sell and deliver and Buyer agrees to purchase and receive electricity under terms and prices of Se"ller's then current Standard List Price Offer applicable to businesses of same or similar nature as Buyer. "Standard List Price Offer" herein shall mean the Seller's price charged to customer's purchasing electricity without a valid Offer for the Supply of Electricity. The St~ndard List Price Offer may change from time to time at ~he discretion of Seller. V. CALCULA TION AND PA YMENT OF CHARGES. ' 5.1 Seller will invoice Buyer for electricity delivered to the Premise(s) during each monthly billing cycle of the Agreement Term, and for any other amounts due from Buyer to Seller hereunder, in accordance with the applicable Price Sheet, provided, however, in the event Buyer takes quantities of electricity in any month that are in excess of one hundred twenty percent (120.0%) of the aggregated quantities listed in Exhibit "A", Seller shall have the option to price such excess quantities at 195.0% of the then current retail market value. If Buyer, (provided such is not the result of a force majeure event), takes quantities of electricity in a month that are less than eighty percent (80.0%) of the aggregated quantities ,listed in Exhibit "A", in addition to paying for those quantities actually taken in accordance with the applicable Price Sheet, Buyer agrees to pay Seller the positive amount, if any, calculated as follows: (80.0% ofthe aggregated quantities on Exhibit "A': for the applicable month minus the aggregated quantities actually used by Buyer during the month, the "Shortfall Quantity") multiplied by (the contracted price from the applicable Price Sheet minus 95.0% of the then current retail market price for the Shortfall Quantity).5,2 If Buyer has more than one Premise, the monthly billing cycle inay vary for different Prcmises, and may not coincide with a calendar month. In the event that an interval demand recorder ("lOR") must be installed at any Premise, ifsuch lOR has not been installed prior to the commencement of the Agreement Term, Seller reserves the right to calculate prices based upon the appropriate deemed load profile, as obtained by Seller from the PUCT, until such lOR can be installed, ! l i I i": 5.3 Buyer shall pay the invoiced amount on or before the due date specified in the Offer, and/or notifY Seller within ten business days of the invoice date if Buyer disputes any part of the invoice together witJt Buyer's reasons for disputing the invoice (however, Buyer's payment of an invoice and/or failure to dispute an invoice by the due date, in and of itself, shall not constitute a waiver by Buyer of Buyer's right to contest later the correctness of such invoice), but the undisputed part shall remain due and payable. In the event that Buyer gives notice of such dispute, the Parties shall, for a period of thirty calendW' days following Seller's receipt of that notice, pursue diligent, good faith efforts to resolve the dispute. If the Parties are unable to resolve a disputed invoice during that thirty day period, Seller may require, in the event it is subsequently determined that Buyer should pay Seller all or part of the disputed amount, that Buyer pay interest on su'ch amount, at a rate equal ,to (i) one H-GAC Energy Purchasing Corporation Page 1 of 11 e e percent (I %) per month or (ii) the highest rate allowed by law, whichever is the lesser, from the date such payment was originally due until the same is paid. Following resolution of the dispute, any amount found payable (including interest) shall be paid within thirty calendar days. If Buyer fails to pay any amount due (including any disputed amount withheld which is subsequently found to have been payable), Seller may, at its option, pursue any or all of the following actions or remedies: (a) a~crue interest on the unpaid portion at a rate equal to that described earlier in this paragraph, from the date such payment is due until the same is paid, or (b) transfer Buyer to the provider of last resort ("POLR"), POLR shall be defined as a retail electric provider that has been designated by the PUCT to provide a basic, standard retail service package to requesting or defaulting customers. 5.4 If Buyer notifies Seller in writing ofajustifiable concern regarding the accuracy of an invoice hereunder, Seller shall make available to Buyer during normal business hours the records in Seller's possession reasonably necessary for Buyer to verifY the accuracy of its bill. Provided, however, neither Party may request any adjustment or correction of any statement or payment unless written notice of such request for adjustment or correction is furnished within twenty-four (24) months of the date of the statement or payment for which such adjustment or correction is requested. - 5.5 If this Agreement is terminated for any reason (including where Buyer terminates in accordance with Section VII) and Buyer does not arrange for a new electricity supply agreement with Seller or another supplier, Seller, until Buyer arranges for a new electric supply agreement with Seller or another supplier, may (in addition to other remedies) charge Buyer for any electricity used at the Premise(s) after the effective date of the termination, and subject to these Terms, at Seller's then current Standard List Price Offer applicable to businesses of same or similar nature as Buyer. This sub-clause shall survive termination of this Agreement. 5.6 Payments may be made by check, wire transfer, direct debit or electronic data interchange (on terms reasonably acceptable to both Panies), and notwithstanding anything to the contrary contained herein, must be received by the receiving Party on or before the dates specified in Article II of the Offer. The address to which payments are to be made shall be as set forth in the Offer. For Buyer to pay Seller other than by check, Buyer needs to obtain required information / agreements with Seller. If Buyer fails to pay the invpiced amount to Seller by the Due Date, and such amount is not disputed as provided in Section 5.3 the undisputed invoiced amount will accrue interest at the rate of 12% per year, and, in addition, Seller may pursue, but is not required to pursue, available legal remedies for collection of the unpaid invoice and late- payment interest ch'arges, Including termination of the Agreement in accordance with the procedures set forth in Article VII. 5.7 In the event Buyer ever takes electricity exceeding the Maximum kW for each Premise(s), each time it does so Buyer shall pay the Over Capacity Charges as stated in the applicable Price Sheet. "Maximum kW" for each Premise is set forth on Exhibit "A", and shall be recorded at the TDSP Point of Delivery. 5.8 Buyer agrees that it shall abide and be bound by the Agreement through the end of the Agreement Term and shall not, during the Agreement Term, claim any right to pricing based upon the Price to Beat. "Price to Beat" shall mean a price for electricity, as determined pursuant to the Public Utility Regulatory Act, Section 39.202, charged by an affiliated retail electric p'rovider to eligible customers. VI. METERING EQUIPMENT. 6.1 The supply of electricity to Buyer at the TDSP Delivery Point(s) shall be,measured by Metering Equipment. "Metering Equipment" herein shall mean any and all equipment required for the measurement of demand, energy, reactive demand or reactive energy and the times during which said demand or energy is consumed. Unless the accuracy of the Metering Equipment is disputed by notice given by either Party to the other the Metering Equipment'shall be deemed to be accurate. If notice is given (unless otherwise agreed) the Metering Equipment, shall be examined within a reasonable period by the TDSP in accordance with the applicable Substantive Rules of the PUCT, If such test finds that the inaccuracy of the registration of kWh or kW at normal loads exceeds that allowed by ANSI standard C.12, suitable adjustment shall be made in the accounts rendered by Seller, an.d, within a reasonable period following that determination, the Metering Equipment shall be re-calibrated or replaced by the entity that installs, validates, registers, and maintains the physical meter required on a Premise to measure customer usage. If such test finds the Metering Equipment to be accurate within the said limits, the Metering Equipment shall be deemed to be accurate and the cost of moving, testing, and replacing the Metering Equipment shall be paid by the Party who,issued the notice. If it is discovered that any reading of the Metering Equipment or translation of the readings into charges ~ave been incorrect then the amount of money due to and from Seller shall be paid forthwith. 6.2 If appropriate meter reading personnel cannot gain access to read the Metering Equipment, or the Metering Equipment fails to register correctly the amount of electricity supplied, or the readings are not communicated to Seller in time for whatever reason, Seller shall reasonably estimate the quantity of the electricity consumed and Buyer shall pay the charges for the estimated amounts subject to any adjustments which may be nece:!sary following the reading. Buyer shall notify Seller of any dispute or query regarding the Metering Equipment made by the TDSP. Seller is not responsible for damage to the Metering Equipment unless caused by Seller's negligence. VII. TERMINATION OF AGREEMENT: 7.1 A material breach of this Agreement includes: (a) the failure of either Party to make any payment due to the other Party pursuant to the terms hereof, provided, however, that notwithstanding the foregoing or anything else to the contrary in this Agreement, Supplier may not terminate this Agreement for non-payment by Buyer of an undisputed invoiced amount unless the undisputed invoiced amount remains unpaid for thirty (30) days after the due date; (b) the failure of a Party to comply with any other material term of this Agreement; (c) a Party H-GAC Energy Purchasing Corporation Page 2 of 11 e e becomes or declares that it is insolvent or bankrupt, or becomes or declares that it is the subject of any proceedings, or is taking any action whatsoever, relating to its bankruptcy, liquidation or insolvency, or is not generally paying its debts as they become due, (d) a Party fails to comply with any federal, state or local law, regulation, rule or order that causes a material adverse affect upon this Agreement, either Party or either Party's performance of its obligations described in this Agreement; (e) if Buyer enters into another electricity supply agreement for any Premise(s) with another retail energy provider that covers any period during the Agreement Term; or (t) if Buyer, except as provided in paragraphs 7.2 and 14.3 below, sells, leases, closes or otherwise conveys or assigns any Premise(s) in which the electricity sold hereunder is utilized. If either Party commits a material breach of this Agreement, the non-breaching Party shall give written notice to the breaching Party that describes the breach in reasonable detail ("Original Notice"). The non-breaching Party may, in its sole discretion, and without prejudice to any other right under this Agreement, at hiw, or in equity, terminate this Agreement (i) by providing an additional notice if the breaching Party does not pay all amounts due and owing set forth in the Original Notice within ten calendar days of the date of the Original Notice, or (ii) effective immediately in the Original Notice in the event the breach pertains to (c), (e), or (t) in this paragraph above, or (iii) by providing an additional notice if the breaching Party fails to cure any breach other than one related to (a), (c), (e), or (t) in this paragraph above within thirty calendar days of the date of the Original Notice. 7.2 (a) In the event Buyer sells, closes, or leases a particular Premise, without selling, closing, or leasing all of the Premises. Buyer shall have the right to delete that particular Premise and the quantities of electricity attributable to that Premise through the end of the Agreement Term (the "Liquidated Quantities") from this Agreement without terminating the Agreement (a "Premise Buyout Option"), If Buyer desires to exercise a Premise Buyout Option with regard to a Premise, Buyer shall notify Seller in writing at least thirty calendar days prior to the effective date. Upon the exercise of a Premise Buyout Option, in the event a new owner of the applicable Premise (i) is willing to sign a new contract with Seller upon'the same terms and conditions as Buyer's contract, (ii) is deemed creditworthy by Seller, and (iii) the new owner and Seller can legally enter into such a contract in accordance with the rules and regulations of the PUCT, then the Premise will be deleted from this Agreement and neither Party will owe any compensation to the other. In the event that the new owner (i) is unwilling to sign a contract with Seller upon the same terms and conditions, (ii) is not reasonably deemed creditworthy by Seller, or (iii) the new owner and Seller cannot legally enter into the contract, then Buyer agrees to pay Seller the positive amount, if any, calculated as follows: the Liquidated Quantities multiplied by (the price that Buyer would have paid for the Liquidated Quantities through the end of the Agreement Term according to the applicable Price Sheet, minus 95.0% of the then current retail market price). Buyer shall pay such amount, if any, to Seller within twenty days of the date of liquidation. Exhibit "A" shall be modi tied to reflect the deletion of such Premise and its Liquidated Quantities, and all other terms and conditions of this Agreement shall remain in full force and elfect with respect to the remaining Premises. (b) In the event Buyer reduces its operations at a Premise, Buyer shilll have the right to delete the quantities of electricity attributable to the reduction in operations at such Premise from the effective pate of the reduction through the end of the Agreement Term (the "Reduced Operations Liquidated Quantities") from this Agreement without terminating the Agreement. If Buyer desires to exercise such right with regard to a Premise,. Buyer shall notify Seller in writing at least thirty calendar days prior to the effective date. Upon the exercise of such right, Buyer agrees to pay Seller the positive amount, ifany, calculated as follo\:ys:.the Reduced Operations Liquidated Quantities multiplied by (the price that Buyer would have paid for the Reduced Operations Liquidated Quantities through the end of the Agreement Term according to the applicable Price Sheet, minus 95.0% of the then current retail market price for the liquidated quantities), Buyer shall pay such amount, if, any, to Seller within twenty days of the date of liquidation. Exhibit "A" shall be moditied to reflect the deletion of the liquidated quantities, and all other terms and conditions of this Agreement shall remain in full force and effect. (c) Both Parties will work in good faith during the Agreement Term to reasonably accommodate and assist Buyer with the management of its electricity needs at the Premises. Since it is not possible to foresee the evolution of the deregulated power industry'in Texas, various reasonable options for Buyer to achieve this are evolving and under development by Seller. For example, if Buyer desires to contract for additional electricity, both Parties will work in good faith to mutually agree upon the terms and conditions that are economically ~iable to both Parties. However, notwithstanding the previous language, nothing contained herein shall be construed as to deny or diminish the economic benefit of this Agreement to either Party, and neither Party shall be under any obligation whatsoever to agree to a moditication that would have such result. 7.3 (a) In the event that this Agreement is terminated by Seller pursuant to Section 7.I...the Parties agree, that in addition to all amounts Buyer may owe Seller prior to the termination, Seller's damages shall be the positive amount, if any, calculated as follows: (all remaining un purchased quantities of electricity reflected on Exhibit "A" through the end of the Agreement Term) multiplied by (the price that Buyer would have paid for the unpurchased quantities through t~e end of the Agreement Term according to the applicable Price Sheet, minus the current retail market price for the unpurchased quantities at"the time of termination) plus (all reasonable cosis and expenses incurred by Seller). Such amount shall be immediately due and payable within thirty calendar days following such termination, The current retail market price in this instance shall mean the price that Seller would reasonably be able to obtain from a bona-tide third party if entering into a contract with another customer for the unpurchased quantities, and for the remaining term. after the Early Termination Date through the end of the Agreement Term, Seller shall have a duty to use commercially reasonable e,fforts to mitigate its damages. (b) In the event that this Agreement is terminated by Buyer pursuant to Section 7. I...the Parties agree, that in addition to all amounts Seller may owe Buyer prior to the termination, Buyer's damages shall be the positive amount, if any, calculated as follows: (all remaining unpurchased quantities of electricity reflected on Exhibit "A" through the end of the Agreement Term) multiplied by (the current retail market price for the unpurchased quantities at Ihe time of termination, minus the price that Buyer would have paid for the unpurchased quantities through the end of the Agreement Term according to the applicable Price Sheet) plus (all reasonable costs and expenses incl!rred by Buyer). H-GAC Energy Purchasing Corporation Page 3 of 11 e' e . l Such amount shall be immediately due and payable within thirty calendar days following such termination. The current retail market price in this instance shall mean the price Buyer would have to pay if entering into a contract with another Retail Electric Provider (UREP") for the same quantities, and for the remaining term after the Early Termination Date through the end of the Agreement Term. The price offered by the POLR, or any REP's Standard List Price Offer, shall not be used to calculate Buyer's damages, Buyer shall have a duty to use commercially reasonable efforts to mitigate its damages. 7.4 Buyer may terminate this Agreement, on a prospective basis, in the event of non-appropriation of funding for this Agreement by Buyer's Governing Body. Buyer agrees, to the full extent allowed by Texas law,. that if any funds are appropriated for electricity costs, such funds shall be applied first to the cost of electricity provided pursuant to this Agreement. Buyer agrees to notify the REP in writing of such non- appropriation at the earliest practicable time subsequent to the failure to appropriate, and as of Buyer's termination date, Seller shall have no further duty to supply Electricity to Buyer and shall move service for the Accounts to the POLR as established by the PUCT on the date of termination for non-appropriation. VIII . FORCE MAJEURE. If either Party is unable to perform its obligations in whole or in part due to an event of force majeure as defined herein, then the obligations of the affected Party shall be su~pended to the extent made necessary by such event. The term "force majeure" means any cause not within the control of the Party claiming relief, including, but not limited to, Acts of God, including magnetic disturbances but not including extremes of temperature alone; arrests, orders, directives, restraints and requirements of the government and governmental agencies, either federal or state (excluding Buyer), civil or military; civil disorder; strikes 'or labor disputes; failure, repair or change of or obstruction in electric power lines, equipment or machinery; the failure of the TOSP to receive, transport, or deliver, or otherwise perform, unless due to the failure of the Party claiming force majeure to perform such Party's obligations hereunder; an event of force majeure of Seller's supplier(s) or with Buyer's electrical equipment at Buyer's Premises; or any other cause which by the exercise of reasonable 'diligence such Party could not have prevented or is unable to overcome. Any such event of force majeure shall, so far as possible, be remedied with all reasonable dispatch. It is understood and agreed that the settlement of strikes or lockouts will be entirely within the discretion of the Party having the difficulty, and that the above requirement of the use of diligence in restoring normal operating conditions will not require the settlement of strikes or lockouts by acceding to the terms of the opposing party when such course is inadvisable in the discretion of the Party having the difficulty. Neither financial distress nor the inability of either Party to make a profit or avoid a financial loss shall be deemed a force majeure event, nor shall (i) changes in the market prices of fuel, energy, or electricity, or (ii) a Party's financial inability to perform its obligations under this Agreement, constitute an event of Force Majeure hereunder. IX. WARRANTIES AND LIMITATIONS OF LIABILITIES.' 9.1 Seller hereby warrants to Buyer that at the time of delivery of electricity hereunder it will have good title and/or the right to sell such electricity, and that such electricity will be free and clear of all liens and adverse claims. Title will pass to Buyer at the TOSP Point of Delivery. EXCEPT AS PROVIDED FOR IN THE FIRST SENTENCE OF THIS PARAGRAPH, SELLER EXPRESSLY DISCLAIMS AND MAKES NO WARRANTIES, WHETHER WRJTIEN OR VERBAL, WHETHER EXPRESS, IMPLIED, OR STATUTORY,. 'INCLUDING, WITHOUT LIMITATION, ANY EXPRESS, IMPLIED, OR STATUTORY WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE. 9.2 Unless otherwise expressly provided herein, any liability under this Agreement will be limited to direct actual damages as the sole and exclusive remedy, and all other remedies or damages at law -or in equity are waived. Neither Party will be liable for consequential, incidental, punitive, exemplary or indirect damages, including lost profits or other business' interruption damages, whether in tort or contract, under any indemnity provisions or otherwise in connection with this Agreement. The limitations imposed on remedies and damage measurement will be without regard to cause. including negligence of any Party, whether sole, joint, concurrent, active or passive; provided no such limitation shall apply to damages resulting from the willful misconduct or gross negligence ofany Party. X. NOTICES. All notices required or permitted under this Agreement shall be in writing and shall be deemed to be delivered when deposited in the United States mail (first class, registered or certified), postage prepaid, when deposited with an overnight delivery service, prepaid to the applicable Buyer's address shown in the attached ExhibitUA", and Seller's address as shown in the Offer, or to such address as either Party may from time to time designate as the address, or in the case of hand delivery, when delivered to a representative of either Party by a representative of the other Party; provided, however, except for payments of amounts due hereunder, either Party may provide such items hereunder by electronic mail or facsimile to the other Party at the applicable telephone number shown on the current Offer, and further provided, the original copy of such item shall be,sent to the other Party within three business days thereafter. XI. APPLICABLE LAW AND REGULATIONS. 11.1 This Agreement is subject to all applicable laws, regulations, rules and orders. 11.2 In the event ajudicial decision, order, new law or regulation, or a change in any law or regulation, requires a change in the method by which prices are calculated under this Agreement, or materially and 'directly affects a Party's ability to perform its obligations hereunder, then the Party that is negatively affected shall have the right to notify the other Party, within thirty calendar days after becoming aware of such detrimental change. 'The Parties shall attempt to negotiate a modification to the terms of this Agreement so as to mitigate the impact of the event. If, after twenty calendar days beyond the date of notice, the Parties have been unable to nego'tiate !l mutually satisfactory modification 'to the terms of this Agreement, either Party shall have the right to terminate this Agreement upon ten calendar days prior written notice to the H-GAC Energy Purchasing Corporation. Page 4 of 11 e e other Party. If such right to terminate is not exercised within forty-five calendar days after the date of the original notice hereunder, then the right to terminate this Agreement shall be waived with respect to the particular event. 11.3 Seller agrees to maintain all necessary certifications and comply with all necessary PUCT and/or ERCOT requirements in order to perform its obligations under this Agreement. 11.4 Notwithstanding anything contained 'in this Agreement, Buyer shall not attempt to utilize, under the provisions of this Section XI or Section VIII, or in any other manner, its inherent powers as a political subdivision of the State of Texas in order to circumvent in any way the terms and provisions of this Agreement or the intent of this Agreement. XII. FAILURE OR TEMPORARY DISCONTINUANCE OF SUPPLY. 12.1 The supply of electricity may be disconnected in the event of Force Majeure in respect of this Agreement; or if at TDSP's discretion it is necessary to ,do so for any of the following reasons: (a) to avoid danger; or because failure to disconnect the supply of electricity would or might involve TDSP being in breach of applicable regulations or laws; or to avoid interference with the supply of electricity to another person which TDSP reasonably believes may be caused or result from Buyer's equipment or device used at the Premise(s); or to enable TDSP or TDSP's representatives to inspect, maintain or repair any part of the equipment or the Distribution System; or in case of ac<;ident or other emergency affecting or likely to affect the Distribution System or any other system through which (directly or indirectly) Seller or TDSP receives or supplies electricity; or (b) because Buyer's electric connections or systems are de~med by TDSP to present a hazard. . 12.2 In the event that the supply of electricity to Buyer's Premises is interrupted due to the material breach by Seller Qf its contractual obligations under this Agreement and not due ~o (i) a force majeure event, (ii) as provided in paragraph 12.1 above. or (iii) the failure of Buyer to comply with its obligations under this Agreement, then, in the event Buyer is required to purchase replacement electricity from a third party during such interruption, Seller shall be liable for the positive amount, if any, calculated as follows: the quantities so interrupted by Seller multiplied by [the then current retail market price (or the POLR price if Buyer was unable to purchase electricity from another retail electricity provider) minus the contracted price from the applicable Price Sheet].' XllI. RESPONSIBILITY. 13.1 Buver ResDonsibilitv, Buyer assumes full responsibility for electric energy furnished to Buyer at and on Buyer's side of the Point of Delivery, and agrees, to the full extent allowed by law, to hold harmless Seller, its parent company and all of its affiliates, and all of their respective officers, directors, shareholders, associates, employees, servants, and agents (hereinafter collectively referred to as "Seller Group"). from and against all claims, losses, expenses, damages, demands, judgments, causes of action. and suits of any kind (hereinafter collectively referred to "Claims"), including Claims for personal injury, death, or damages to property occurring on Buyer's side of the Point of Delivery and upon the Premise(s), arising out of or related to the electric power and energy and/Qr Buyer's performance under the Agreement. 13.2 Seller ResDonsibilitv. Buyer acknowledges and understands that (i) Seller never obtains physical possession or control of the electricity, (ii) .seller does not own nor have control of the electric transmission wires and equipment, and that they are owned and/or controlled by the TDSP, (iii) all meter reading, and repair ~ervices will be provided by employees or agents of the TDSP, (iv) all responsibilities and liabilities of the TDSP are set forth in the tariffregulatioils as approved by the PUCT, and (v) the employees and agents of the TDSP are not employees or agents of Seller. Seller shall not have any obligation whatsoever to indemnify, defend, nor hold harmless Buyer, its parent company and all of its affiliates, and all of their respective officers, directors, shareholders. associates, employees, servants. and agents (hereinafter collectively referred to as "Buyer Group"). against any Claims, on either side of the Point of Delivery, arising out of or in any way related to the electricity and/or the deiivery thereof, including, without limitation, the actions of the TDSP and its employees and agents, except in the event, and only in the event, that such Claims are the direct result of the sole negligence and/or intentionally wrongful act of an employee, or agent under the exclusive control, of Seller. XIV. MISCELLANEOUS. 14.1 TDSPs. Buyer and Seller agree to all terms and conditions (adopted pLV"suant to statutes, regulations or other lawful authority) of the TDSPs that provide electricity delivery services to the Premise(s) or other Buyer facilities, which may from time to time be amended, are made part of this Agreement. 14.2 Choice of Law: Venue. THIS AGREEMENT SHALL BE CONSTRUED AND ENFORCED IN ACCORDANCE WITH THE LAWS OF THE STATE OF TEXAS WITHOUT GIVING EFFECT TO ANY CONFLICTS OF LAW PRINCIPLES WHICH OTHERWISE MIGHT BE APPLICABLE. 14.3 Assienment. In the event that Buyer conveys legal title to all of the Premises to the same entity, Buyer may request from Seller the right to assign its rights and obligations under the Agreement to the new owner of the Premises, and in such event, Seller shall not unreasonably withhold its consent Any purported assignment without Seller's prior written consent shall be null and void. Buyer shall not have any right whatsoever to assign this Agreement to any party that is not the owner of all of the Premises"and any purported assignment shall be n~ll and void. Seller may assign this Agreement to another party, with the prior written consent of Buyer, which consent shall not be unreasonably withheld. Any purported assignment without Buyer's prior written consent shall be null and void. This Agreement shall inure to and be binding upon the Parties hereto, and their respective successors and assigns. . . H-GAC Energy Purchasing Corporation Page 5 of 11 e e 14.4 Entirety of Agreement. It is the intention of the Parties that the Agreement shall contain all terms, conditions, and protections in any' way related to, or arising out of, the sale and purchase of the electricity, and supersedes all prior agreements, whether written or oral. It is also the intention of the Parties to agree to terms of service different than those that would otherwise apply under the Substantive Rules of the Public Utility Commission of Texas "Customer Protection Rules for Retail Electric Service", Sections 25.47l - 25.485, and 25.491 - 25.492. The Parties expressly acknowledge that certain terms, conditions, and protections addressed in such sections 25.472 . 25.485, and 25.491 _ 25.492 may not be provided for or referred to in this Agreement, and, in such event, it is the intent of the Parties that such terms, conditions, and protections are not applicable to the Parties. Neither Party may assert any claim that any term, condition, andlor protection contained in Sections 25.472 - 25.485 and 25.491 - 25.492 of the Rules is inconsistent with any term, condition, and/or protection contained in the Agreement and, therefore, applies to the Parties. This Agreement may not be moditil?d or amended except in writing, duly executed by the Parties hereto. Buyer warrants that the information supplied by it pursuant to this Agreement is true and shall remain so throughout the term ofthe Agreement unless varied by agreement. 14.5 Waiver of Rights. A waiver by either Party of any breach of this Agreement, or the failure of either Party to enforce any of the terms and provisions of this Agreement, will not in any way affect, limit or waive that Party's right to enfo'rce and compel strict compliance with the same or other terms or provisions of this Agreement. 14.6 Third Party Riehts. Nothing in this Agreemeilt shall create, or be construed as creating, any express or implied rights in any person or entity other than the Parties. 14.7 Survival. No termination or cancellation of this Agreement will relieve either Party of any obligations under this Agreement that by their nature survive such termination or cancellation, including, but not limited to, all warranties and obligations of indemnity, 14.8 Further Assurances. Buyer and Seller agree to provide such information, execute and deliver any instruments and documents and to take such ot,her actions as may be necessary or reasonably requested by the other Party which are not inconsistent with the provisions of this' Agreement and which do not involve the assumptions of obligations other than those provided for in this Agreement, in order to give full effect to this Agreement and to carry out the intent of this Agreement. 14.9 Distribution System. Distribution System herein shall mean any system for the distribution ofelect.ricity through which the electricity to be provided by Seller to Buyer is provided or passed to the Premise(s). Seller's obligations under this Agreement are subject to the maximum capacity and any other design feature of Buyer's Premise or Connection. Buyer shall contact Seller in accordance wi,th all applicable legal . requirements, and otherwise reasonably in advance, if Buyer proposes to make any significant change to Buyer's connection, electric lines or electrical equipment, install or operate generating equipment or do anything else that could affect the Distribution System or require alterations to Buyer's Connection. I;:ach of the Parties undertakes to comply with Buyer's TDSP's Tariff for.Distribution Service. 14.10 Deliverv of Electric it v, Seller does not guarantee against irregularities or interruptions, it being understood that occasional irregularities and interruptions by the TDSP may occur. Buyer is responsible for installing and maintaining protective devices as recommended or required by the then current edition of the National Electric Code and other such devices as are necessary, to protect equipment or process during irregular or interrupted service including, but not limited to voltage and wave form irregularities. 14.11 Confidentialitv. Seller acknowledges that Buyer is a governmental body that is subject to public information laws, including Chapter 552 of the Texas Government Code, which requires Buyer to release any information that is defined as or deemed to be public (the "Public Information Statutes"). Subject to any Public Information Statute or related order, rule or regulation requiring disclosure, Seller and Buyer agree to keep all terms and provisions of this Agreement contidential and not to disclose the terms of the same to any third parties; provided, however, each Party shall have the right to make such disclosures, ifany, to governmental agencies and to its own agents, attorneys, auditors, 'accountants and shareholders as may be reasonably necessary. If disclosure is sought through process of a court, or a state or federal regulatory agency, the Party from whom the disclosure is sought shall resist disclosure through all reasonable means and shall immediately notify the other Party to allow it the opportunity to participate in such proceedings. 14.12 Resale of Seller's Electric Service. Buyer may not use supply of electricity provided by Seller except for the purpose specified in the Price Sheet under which Buyer receives supply of electricity. Buyer may not resell or otherwise dispose of supply of electricity unless as provided by statute or as specifically provided for in the Price Sheet. 14.13 Authorization. At such time as executed Offer. and Price Sheet(s) are attached hereto, Buyer authorizes Seller to become Buyer's new retail electric provider in place of Buyer's current retail electric provider for the duration of the Agreement Term set forth in the Offer. Buyer authorizes Seller to act as Buyer's agent to effect the change, and Buyer directs its current retail electric provider to work with Seller to make this change happen. Buyer represents to Seller that Buyer is legally authorized to change the retail electric provider for all of the Premises. 14.14 Severability. If any portion of this Agreement, or application thereof to any person or circumstance, shall be held legally invalid, the remainder shall not be affected and shall be valid and enforced to the fullest extent permitted by law or equity. 14.15 Aggregator Fees, Seller shall bill and collect from Buyer for HGAC Energy Purchasing Corporation ("HGAC") Aggregation Fees with H-GAC Energy Purchasing Corporation Page 6 of 11 e . respect to the purchase of Electricity under these Terms and Conditions ("Aggregation Fees"). Seller shall remit all Aggregation Fee collections received during each calendar month to HGAC on or before the twentieth (20Ih) Business Day of the following calendar month. Payments received from Buyer shall be deemed to be payments of Seller and TDSP charges then due, then of the Aggregation Fee. 14.16 Al!l!rel!ator Review. Buyer understands and acknowledges that any deviations from the standard Terms and Conditions for Supply of Electricity negotiated by HGAC on behalf of Buyer shall be subject to the prior review and consent of the HGAC. . 14.17 Buyer is a Member of the HGAC Energy Purchasing Corporation. Seller is basing the indicative price on the attached price sheet upon assumptions as to the aggregated load and associated load factor of all Members of the Corporation. A condition precedent to the effectiveness of this Agreement is satisfaction of certain load and load factor criteria as agreed to between Seller and the HGAC 'Energy Purchasing Corporation. In the event that such criteria, as established in Section I.b of the Agreement between H-GAC Energy Purchasing Corporation and TXU Energy Services, are not satisfied, then Seller shall not sign this Agreement and it shall be null and void ab initio. 14.18 Buyer shall notifY seller of any ESIs that have any significant load shifting capabilities so Seller may offer multipart pricing for that Premise. The Parties have signed this Terms and Conditions for Supply of Electricity document, acknowledging their agreement to its provisions as of , 200_. TXU ENERGY SERVICES COMPANY By: By: Name: Name: Title: Date: Title: Date: "Buyer" "Seller" H-GAC Energy Purchasing Corporation Page 7 of 11 e Exhibit A List of Member Buyers' Accounts H-GAC Energy Purchasing Corporation e Page 8 of 11 e e Exhibit, B Pricing Sheet TXU Energy Services Price Sheet Terms and Conditions for Supply of Electricity # This Price Sheet is only valid in association with and shall remain subject to the Terms and Conditions for Supply of Electricity ("Terms") and Offer for Supply of Electricity referenced above and is contingent upon Customer's acceptance of the Offer prior to the Offer Expiration Date. This Price Sheet is applicable to the Customer ESI number(s) identified on Exhibit A of the Terms. Monthly Prices shall equal the sum'of(i) the Monthly Standing Charge set forth below; plus (ii) the applicable per kWh charges . ,set forth below for the electricity; plus (iii) all costs and expenses of any nature whatsoever that are charged by the Transmission and Distribution Service Provider ("TDSP") for the transmission and/or distribution of the electricity, as well as any other charges of the TDSP that are attributable to the Customer Account numbers, including, without limitation, charges for reactive power; plus (iv) all other tariffs, rates, riders, fees, and charges, charged by the TDSP or another party, that are maQdated, levied, assessed, allowed, or approved by the Texas Public. Utility Co~iss~on and all other governmental or regulatory authorities, on or with respect to the acquisition, sale, delivery, and purchase. of the electricity; plus (v) all federal, state, and local taxes, of any nature whatsoever, imposed by all governmental and regulatory authorities, on or with respect to the acquisition, sale, delivery, and purchase of the electricity, including Seller's Texas Gross Receipts Tax on the sale of electricity to Buyer; phis (vi) the Over Capacity Charge set forth below, if applicable; plus (vii) an aggregation fee of $0.00045 per kWh actually consumed by Buyer collected by Seller on behalf of and paid to HGAC Energy Purchasing Corporation. Charge Amount Monthly Standing Charge $ 2~ per service point All kWh $0. per kWh $0. per kWh for delivery, excluding TDSP Delivery Charges. reactive power, based upon current estimate.; Monthly price will be based upon actual charges. Tariffs, rates, riders, fees, and charges other than To be determined, varies by service point those included in TDSP delivery charges above All applicable taxes To be determined, varies by jurisdiction Over Capacity Charge $ -0- per kW Buyer: shall notify seller of any ESIs that have any significant load shifting capabilities so Seller may offer multipart pricing -for that Premise. ' The costs and expenses charged by the TDSP for delivery services may fluctuate during the Agreement Term, as will other applicable taxes, tariffs, riders, fees, and charges. ' * For referenc~ purposes only. This is the current estimate of the average TDSP standard delivery costs, excluding charges for reactive power, special metering, or other miscellaneous TDSP charges. H-GAC Energy Purchasing Corporation Page 9 of 11 e e Exhibit C OFFER FOR THE SUPPLY OF ELECTRICITY ContractIPlan #: BUYER: SELLER: TXU Energy Services Company 1601 Bryan Street, th Floor Dallas, Texas 75201 Phone: Phone: (214) 875-1000 Fax: Fax: (214) 875-1001 L The Primary Term for each Premise, identified in Exhibit A. shall CONTRACT TERM commence upon the date of the first reading of the meter(s) on each respective Premise by the TDSP after . or as soon thereafter as practicable, and shall end for each Premise upon the date of the first reading of the respective Premise meter(s) by the TDSP after . IL Net 30 days. PAYMENT TERMS IlL No initial deposit required. DEPOSIT AMOUNT - IV, BILL PRESENTMENT METHOD V, PAYMENT METHOD VL Toll free number (800)725-7920 for 24 hour emergency outage and STANDARD SER VICES customer service, available 7 a.m. to 7 p.m. on normal business days; Assigned customer service representative, billing analyst, and assigned orofessional account manae:er. VIL Not Applicable CUSTOM SERVICES VIIL Not Applicable SPECIAL PROVISIONS IX $~perkWh A VERAGE COST PER KWH* X TERMS AND CONDITIONS THIS OFFER FOR THE SUPPLY OF ELECTRICITY INCLUDES THE TERMS AND CONDITIONS FOR THE SUPPLY OF ELECTRICITY, WHICH SHALL BE SEPARAT.ELY EXECUTED BY BUYER AND SELLER AND WILL BE, PART OF THIS CONTRACT. BY SIGNING BELOW, BOTH PARTIES HEREBY ACKNOWLEDGE ACCEPTANCE OF THIS OFFER FOT THE SUPPLY OF ELECTRICITY. Buyer Signature: Seller Signature: Name (Please:: print): Name (Please print): Kevin Bohn Position: Position: Vice President Date: Date: ... Estimated. Actual cost will vary with actual delivery charges from your transmission and distribution provider and actual consumption patterns. This cost does not include applicable taxes. H-GAC Energy Purchasing Corporation Page 10 of 11 e e Exhibit D FORM LETTER - AUTHORIZATION FOR RELEASE OF ELECTRIC UTILITY DATA TO BE SIGNED BY MEMBER BUYER ON ITS LETTER HEAD [Date] TXU Energy Services Company 1601 Bryan Street Dallas, Texas 75201 Re: Account Data for Accounts listed in Attachment [Attach relevant portion of Exhibit A for description of Accounts] This letter is to serve as authorization to release to , or H-GAC Energy Purchasing Corporation all information relative to our account(s) listed in the attachm~nt, including but not limited to service, 1mid history, load profiles, rates, payment history, billing data and billing determinants. This request for release is valid for one (2) years from the date of this letter with re~pect to and five (5) years from the date of this letter with respect to H-GAC. Very truly yours, [Member Buyer Representative Signature] [Title of Member Buyer's Representative] H-GAC Energy Purchasing Corporation Page 11 of 11 e e Herrera, Bob From: ,ent: fo: Subject: Susan Kelley [kelleys@ci.la-porte.tx.us] Tuesday, October 16, 2001 8:15 AM Mr. Herrera (E-mail) FW: H-GAC Energy Purchasing Corporation Resolution II and backup ~ ~ ~ ~. Corp info package Supply Agreement Resolution I.doc Resolution II.doc TXU 10-10-01... TXU executabl... Here is the information you requested. Susan Subject: H-GAC Energy Purchasing Corporation Resolution II and backup H-GAC Energy Purchasing, Corporation October 12" 2001 We are pleased to announce that we have signed a contract with TXU Energy Services as the Retail Electric Provider to the Member Buyers of the H-GAC Energy Purchasing Corporation. Please read the attached information sheet, along with the attached Supply Agreement. Also attached are Resolution I, to become a member of the COrporation, and Resolution II, which commits you to purchase electricity. These Resolutions must be passed by November 7, 2001, in order to participate. here will be a General Participant Meeting at H-GAC offices on Tuesday, October 23, 2001, at 9:00 a.m. in Room A on the Second Floor. Please be prepared to discuss any questions you may have concerning the information included in this packet. Our contractor, TXU Energy Services, will be present to answer questions as well. <<Information Sheet>> <<Supply Agreement .doc>> <<Resolution I.doc>> <<Re~olution II.doc>> If you have questions about these items or the purchasing process, please call Deidre Vick at 713.993.4540 or Bob Wooten at 713.993.4539. 1