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<br />SAN MARCOS ELECTRIC UTILITY <br />ELECTRIC RATE SCHEDULES <br /> <br />POWER COST RECOVERY FACTOR CLAUSE <br />Rate Schedule - Choose to Renew™ PCRF <br /> <br />Effective: October 1, 2005 <br /> <br />The City of San Marcos (the "City") shall charge and collect for monthly changes in purchased power costs on the basis of <br />the provisions of this Rate Schedule - PCRF applicable to monthly kWh energy sales. <br /> <br />APPLICABILITY <br /> <br />This rate schedule is applicable to the sales of electric energy by the City and is included by reference in various rate <br />schedules. This Choose to Renew peRF is available to all rate classes base on current program guidelines. <br /> <br />MONTHLY PCRF FACTOR <br /> <br />The monthly bill for electric service computed in accordance with the appropriate electric rate schedule shall be increased <br />or decreased by an amount equal to the product of all kWh used by the customer during the Billing Month and the Monthly <br />Power Cost Recovery Factor "F" calculated as follows: <br /> <br />F = (Fm+Sm) x L <br /> <br />Where: <br /> <br />F = Monthly Power Cost Recovery Factor in dollars per kWh rounded to the nearest $0.00001 with a fixed <br />fuel component plus nonfuel. See program guideline for rates; <br /> <br />n = Total applicable Monthly Power Costs in dollars; <br /> <br />n = Total applicable Monthly Energy Sales in kWh; and <br /> <br />L= <br /> <br />The applicable loss multiplier to account for losses between the customer's meter and the point of <br />delivery of the electric power and energy purchased by City for resale: <br /> <br />L = 1.064067 for deliveries to customers served at secondary voltages or voltages of 600 volts and below. <br /> <br />The applicable loss multiplier "L" shall be renewed and recalculated each year and may be adjusted annually to account <br />for changes in the distribution system. <br /> <br />MONTHLY POWER COSTS <br />The total applicable Monthly Power Costs "Fm" shall be calculated for the current Billing Month as: <br /> <br />The total purchased power costs set forth in the most recent bill for wholesale electric service by LCRA (the <br />"LCRA Bill"); plus <br /> <br />The total purchased power costs set forth in the most recent bill for electric power and energy purchased from any <br />other power supply resource(s) (the "Other Power Bills"); minus <br /> <br />The purchased power costs billed during the most recent bill for customers served under Rate Schedules LGS- <br />SEC, LGS-PRI and TSU. <br /> <br />The total applicable Monthly Power Costs "Fm" shall be determined by the City Manager who shall retain the right to <br />:-clude or exclude any line item found on the LCRA Bill. <br /> <br />Page 26 <br />