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<br />SAN MARCOS ELECTRIC UTILITY <br />ELECTRIC RATE SCHEDULES <br /> <br />SUPPLEMENTAL ELECTRIC SERVICE <br />Rate Schedule - COG <br /> <br />Effective: February 11th, 2002 <br /> <br />Page 1 <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 and the Supplemental Electric Service Agreement between the City and Customer. The City of San <br />Marcos Electric Utility Rules and Regulations are incorporated by reference as a part of 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") only under special contract between the Customer and the City for the operation of Customer-owned Small <br />Power Production and/or Cogeneration Facilities (as defined in the Supplemental Electric Service Agreement) operated in <br />parallel with the City System, when such electric generation facilities are located on the Customer's premises and have a <br />nominal electric 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 />- :!rvice 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 ("LCRA") and the Monthly Rates <br />set forth herein, other than the Availability Charge, are based on the direct pass-through of the cost of electric power and <br />energy from LCRA incurred by the City in service to Customer under this rate schedule. If LCRA should change the <br />method by which it determines the monthly purchased power bills to the City or the City's bulk power supplier should <br />change during the period this rate schedule is in effect, it will be necessary to modify the Monthly Rates and other <br />applicable provisions of this rate schedule in order to appropriately provide for the continued direct pass-through of the <br />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 <br />applicable to this rate schedule: <br /> <br />Capacity Demand Charge: The applicable LCRA rate multiplied by the kW demand of the City System during the <br />current Billing Month at the hour of the monthly LCRA system peak demand. <br /> <br />Delivery System Demand Charge: The applicable LCRA rate multiplied by the greater of: (a) the maximum kW <br />demand of the City System during the current Billing Month; or (b) the maximum kW demand of the City System <br />during the preceding eleven Billing Months. <br /> <br />C:\TEMP\Electric Utility tariffs. doc <br />