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<br /> of CUSTOMERS served from the SYSTEM. The initial SCHEDULE OF <br /> RATES will be attached hereto as Exhibit "A". The initial <br /> REGULATIONS will be attached hereto as Exhibit "B." From time <br /> to time thereafter, CITY may adopt, by ordinance of the City <br /> Council of San Marcos, changes in such SCHEDULE OF RATES and <br /> REGULATIONS. <br /> 2.7 LCRA, in a manner directed by CITY, shall secure <br /> readings of all CUSTOMERS' meters monthly, or at such other <br /> periods of time as shall be directed by CITY, and shall render <br /> to the respective CUSTOMERS bills in the name of CITY for elec- <br /> tric power and energy delivered on the basis of the SCHEDULE OF <br /> RATES then in effect. However, unless mutually agreed to by <br /> LCRA and CITY, CITY will use its best efforts to assume full <br /> responsibility for rendering CUSTOMER bills in the name of CITY <br /> not later than December 31, 1986. If CITY is unable to assume <br /> full responsibility for rendering CUSTOMER bills by that date, <br /> CITY will notify LCRA as soon as practicable, but not less than <br /> forty-five (45) calendar days, and LCRA will use its best <br /> efforts to continue to render CUSTOMER bills in the name of <br /> CITY but will not be liable for any consequences associated <br /> with delayed billings, after December 31, 1986, due to the <br /> mechanical failure of LCRA's existing computer equipment. Upon <br /> the effective date of assumption by CITY of this duty, LCRA's <br /> responsibility for the duty assumed by CITY shall cease. <br /> PRIVILEGED AND CONFIDENTIAL <br /> - Operating Agreement - Page 7- <br />