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<br />--------- <br /> <br />----- <br /> <br />March 2, 1988 <br /> <br />18 <br /> <br />I <br />. <br /> <br /> <br /> <br />------------- ------- <br /> <br />Mr. Fred Saffer <br />Saffer utility Consultants, Inc. <br />_3655 Maguire Blvd., Suite 150 <br />Orlando, Florida 32803 <br /> <br />In re: <br /> <br />Dear Mr. Saffer: <br /> <br />Letter Agreement for Consulting Services. <br /> <br />Please consider this letter the agreement of the City of San Marcos <br />to engage Saffer utility Consultants, Inc., to perform services to <br />assist the City of San Marcos and San Marcos Electric Utility with <br />respect to the pending LCRA rate filing and with respect to contract <br />negotiations and litigation regarding the 138kV billing benefit under <br />the terms and conditions set forth herein. <br /> <br />with regard to the pending LCRA rate filing, Saffer utilities <br />Consultants, Inc., agrees to provide the following services which is <br />divided into two phases: <br /> <br />PHASE 1 - REVIEW OF LCRA RATE PROPOSALS AND ATTENDANCE AT RATE <br />DESIGN TASK FORCE MEETINGS. <br /> <br />Upon the direction of the City Manager of the City of San <br />Marcos, A. C. Gonzalez, Saffer utilities Consultants, Inc. will begin <br />work in this phase. The following tasks are to be performed for a <br />maximum fee of Twenty Thousand Dollars ($20,000.00): <br /> <br />1. <br /> <br />Review the functionalization study, cost of service, and <br />other material distributed at earlier meetings of the <br />Rate Design Task Force. <br /> <br />Review LCRA rate design proposals and verify percentage <br />increases for City under each proposal. <br /> <br />2. <br /> <br />3. <br /> <br />4. <br /> <br />Analyze Probability of Dispatch <br />determine it's impact on City. <br /> <br />Analyze effect of collapsing the transmission voltage <br />discounts on the city. <br /> <br />(POD) <br /> <br />method <br /> <br />and <br /> <br />5. <br /> <br />Analyze the effect of implementation of an Interruptible <br />Rate and the potential use of such a rate by the City's <br />retail customers. <br /> <br />city hall' 630 e. hopkins' san marcos, texas' 78666 ' 512/353-4444 <br />