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S'e- CITY OF SAN MARCOS, TEXAS Supplemental Electric Service Agreement Page 4 ARTICLE III RATES & CHARGES 3.1 The rates and charges for Supplemental Electric Service set forth in the "Monthly Rate" provision of Schedule COG attached hereto as Exhibit A shall remain in effect until replaced by revised rates and charges pursuant to Articles 3.2 and 3.3 of this Agreement. 3.2 During the term of this Agreement, the "Monthly Rates", except for the" Availability Charge" set forth in Schedule COG, will only be changed if: a. the City's bulk power supplier changes; b. the method by which LCRA charges the City for wholesale electric power and energy pursuant to Schedule WP-1 changes; or c. the City determines the Loss Factor should be modified to more appropriately reflect the power and energy losses the Loss Factor is intended to recover. 3.3 The "Availability Charge" provision of the Monthly Rate set forth in Schedule COG may be changed from time to time by the appropriate action of the City Council of the City of San Marcos predicated, to the extent possible, on the results of an allocated cost of service study whereby the annual costs of the City System, other than purchased power costs, are allocated to all customers of the City System, including the CustOmer. 3.4 When requested by the Customer, the City will provide the information used by the City in calculating the monthly bill(s) pursuant to Schedule COG. . ARTICLE IV METERING 4.1 The City shall provide and maintain the equipment for the proper measurement of the electric power and energy supplied Customer pursuant to this Agreement and Schedule COG. Should this metering equipment fail or be found to be inaccurate, the electric power and energy delivered will be estimated by City and Customer from the best information available.