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<br />A. C. Gonzalez <br />July 8, 1986 <br />Page 2 <br /> <br />4. <br /> <br />The obligation of the CITY under Section 2.1 of the Wholesale Power <br />Agreement is hereby expressly made subject to and shall be adjusted for: <br /> <br />a. <br /> <br />The City's right tv purchase or use the electric power and energy, <br />without breach of the Wholesale Power Agreement, from one or more <br />small (as defined by the Public Utility Regulatory Policies Act "PUR PAil) <br />power production facilities or cogeneration facilities located within <br />CITY's service territory whether or not such facilities are qualifying <br />facilities under PURPA; and <br /> <br />b. <br /> <br />The CITY's right to purchase or use the electric power and energy, <br />without breach of the Wholesale Power AGreement from any hydro- <br />electric generation facility whether or not such facilities are qualifying <br />facilities under PURPA. <br /> <br />5. <br /> <br />LCRA will not duplicate CITY's facilities or permit any entity served or <br />proposed to be served by LCRA to duplicate CITY's facilities in order <br />to serve any customers of CITY then served, or which could be served <br />by CITY. In the service to any such customers, LCRA will use the lines <br />and facilities of CITY and will pay CITY reasonable wheeling or facilities <br />use charge for the use of CITY facilities. <br /> <br />If the foregoing properly sets forth your understanding of our agreement, <br />please so indicate in the space provided below. <br /> <br />Sincerely, <br /> <br />A§~~ <br /> <br />S. David Freeman <br />General Manager <br />Lower Colorado River Authority <br /> <br />APPROVED AND ACCEPTED BY: <br /> <br /> <br />By: <br />