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<br />SAN MARCOS ELECTRIC UTILITY <br />ELECTRIC RATE SCHEDULES <br /> <br />SUPPLEMENTAL ELECTRIC SERVICE <br />Rate Schedule - COG <br /> <br />;.. <br />I Effective February 1, 2005 <br /> <br />The City of San Marcos (the "City") shall charge and collect for supplemental electric service on the basis of this Rate <br />Schedule COG The City of San Marcos Electric Utility Rules and Regulations are incorporated by reference as a part of <br />this Rate Schedule COG <br /> <br />AVAILABILITY <br /> <br />This rate schedule is available throughout the entire territory served by the San Marcos Electric Utility System (the "City <br />System") for customers owning Small Power Production and/or Cogeneration Facilities operated in parallel with the City <br />System, when such electric generation facilities are located on the Customer's premises and have a nominal electric <br />power rating of 1,000 kW or more <br /> <br />APPLICABILITY <br /> <br />This rate schedule is applicable to all electric service required by Customer for lighting, power and any other purpose, <br />other than resale service, to supplement the electric power and energy supplied by Customer generation <br /> <br />CHARACTER OF SERVICE <br /> <br />Service under this rate schedule shall be alternating current, 60 Hertz, three phase, at the City's option of the standard <br />imary voltages available from the City System. For the purpose of this rate schedule, primary voltages are defined as <br />) ,500 volts nominal Resale service is not permitted under this rate schedule <br /> <br />POWER SUPPLY SOURCE <br /> <br />At the present time, the City's bulk power supplier is the Lower Colorado River Authority ("LCRAn) and the Monthly Rates <br />set forth herein, other than the Availability Charge and the Energy Factor Charge, are based on the direct pass-through of <br />the cost of electric power and energy from LCRA incurred by the City in service to Customer under this rate schedule If <br />LCRA should change the method by which it determines the monthly purchased power bills to the City or the City's bulk <br />power supplier should change during the period this rate schedule is in effect, it will be necessary to modify the Monthly <br />Rates and other applicable provisions of this rate schedule in order to appropriately provide for the continued direct pass- <br />through of the bulk power supply costs incurred by the City in service to Customer under this rate schedule <br /> <br />BILLING MONTH <br />The Billing Month for service under this rate schedule will coincide with the billing month of LCRA's Wholesale Power Bills <br />to the City which are presently from the 25th of the preceding calendar month to the 25th of the current calendar month <br /> <br />ELEMENTS OF PURCHASED POWER COSTS <br />The present monthly purchased power bill to the City from LCRA includes the following charges applicable to this rate <br />schedule <br /> <br />Generation Charge The actual monthly charge from LCRA for generation <br /> <br />Transmission Charge The actual monthly charges for transmission or transformation <br /> <br />ERCOT Administration Fees and Other Charges The actual monthly charges from LCRA for ERCOT <br />administration fees and other applicable chares for services from LCRA. <br /> <br />Page 15 <br />