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<br />I <br /> <br />I <br /> <br />I <br /> <br />I <br /> <br />I <br /> <br />42. <br /> <br />MEMORANDUM OF UNDERSTANDING <br /> <br />Between <br /> <br />The LCRA Transmission Services Corporation <br /> <br />and <br /> <br />(MobilelTemporarv Equipment User) <br /> <br />The LCRA Transmission Services Corporation (LCRA TSC) owns and operates <br />truck/trailer-mounted mobile electrical substations and temporary equipment in order to <br />fulfill its obligations as an Electric Reliability Council of Texas (ERCOT) Transmission <br />Services Provider (TSP). During times when these mobile substations and temporary <br />equipment are not being utilized by the LCRA TSC, they may be available for loan to <br />other TSPs or to a Distribution Service Provider (DSP). For the purpose of this <br />document, other TSP's and DSP's will be referred to as Users. LCRA TSC's mobile <br />substations and temporary equipment will be made available as a system for use when <br />a permanent substation is out of service, for temporary installation at locations during <br />construction or maintenance work, or for emergency backup. <br /> <br />The purpose of this Memorandum of Understanding (MOU) is to establish the terms and <br />conditions under which LCRA TSC is willing to make its mobile substations and <br />temporary equipment available to Users when the requested equipment is not being <br />used to serve LCRA TSC needs and when a User has a critical need for such <br />equipment. Subject to Exhibits 1-5, attached hereto and incorporated herein by <br />reference, LCRA TSC may make its mobile substations and temporary equipment <br />available to Users which are not signatories to this MOU as well as other TSPs at times <br />and under conditions solely within its discretion. However, Users which are signatories <br />to this MOU will have priority over all other requestors and the charges for use of the <br />mobile substations and temporary equipment will be limited to those described herein. <br /> <br />1. LCRA TSC reserves the use of its mobile substations and temporary equipment <br />first and foremost to serve its own needs as an ERCOT TSP. Mobile substations <br />and temporary equipment will only be loaned to Users when the equipment is <br />idle and an installation is not immediately anticipated during the loan period. If an <br />LCRA TSC system emergency arises while a mobile substation is on loan to a <br />User and the User's system can be restored immediately to eliminate the mobile <br />use, LCRA TSC may remove the mobile substation to respond or relocate to <br />best serve the interest of all parties. The mobile coordinator will have the ultimate <br />authority to determine when idle mobile substations and temporary equipment <br />are available and which User will be awarded this service, if more than one <br />request is received at the same time. <br /> <br />2. <br /> <br />LCRA TSC owns the mobile substations and temporary equipment listed on <br />Exhibit 1. This list may be modified by LCRA upon notice to the User if additional <br />mobile substations or temporary equipment are purchased or existing ones are <br />retired. <br /> <br />Mobile - Memo of Understanding 8/24/2004 <br /> <br />Page 1 of 11 <br />